Help a Great Cause at the Idaho Falls ReStore

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Today, I'm out at the Habitat for Humanity ReStore to speak with Kim, the manager. The store helps fund Habitat for Humanity in the Idaho Falls area. I actually didn't know about this place until I needed a door for a garage, and someone recommended the ReStore. I was shocked to see that the store is full of all kinds of things.

Habitat for Humanity is a great organization that provides housing for people who can't get a house through conventional loans. These people volunteer, and put in a lot of sweat equity working on their homes and get a no-interest loan. The store itself carries lightly-used light fixtures, furniture, and flooring, among other things. The store recently received a donation of $11,000 worth of carpet, which they will then sell at a discounted price. This not only provides value for the buyer, but raises funds for the organization. 

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Habitat is a great organization that provides housing for people who can't get a house through conventional loans.

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As you look around, you'll see couches, beds, books, and doors, and supplies for contractors and remodelers. Contractors and remodelers also bring in things like hardwood flooring and paint. Local shops have donated a lot of brand new paint lately. Kim pointed out what a generous community we have! The stuff inside the store is really neat and clean; it's not junk. If you're doing work on your home, you should stop by. You can help yourself and help a good cause at the same time.

The store is located at 1954 N. Yellowstone, and you can reach them by phone at 208-552-0491.

If you have any questions, give us a call or send us an email. We would be happy to help you!

How Hot Is the Idaho Falls Housing Market?

The Idaho Falls real estate market is diverse with both buyers and sellers alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a free home value report right here, or if you're looking to purchase in the Idaho Falls click here for full MLS access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 208.227.5320.

Today I’ll be giving you a quick recap of the Idaho Falls real estate market throughout the first three months of the year. Let’s get right into it!

• The number of sold properties is up by 2% year-over-year (326 up to 333)
• The number of pending sales has risen by 21%, but sales have only risen by 2%
• There are currently 313 homes on the market, which is very close to last year’s number
• Inventory continues to decline, and we are 44% lower this year than last year, and a whopping 56% lower than we were two years ago
• At the end of March 2016 we had only 313 properties on the market
• For buyers, it may feel like there is not much to choose from
• In the $350-$400k there are only 13 homes on the market

I’m sure everyone is dying to hear about home values, and we’re seeing some fluctuations right now. At the end of March 2015, our average sale price was $153,900, and in March 2016 it jumped to $171,948. This is a big increase (+12%), but in October of last year our average sale price was $176,300. So, our average selling price has fallen from last year, yet it is still much larger than it was only two years ago. It’s tough to compare home values just by looking month-to-month, so we will be tracking this phenomenon as we move forward. Expect to hear more from us about this!

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Inventory is incredibly low right now.

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I have a lot more information that I can share with you -  this is just a preliminary report on how our market is doing. The main story is that inventory is very low, so we need more homes to come onto the market. 

If you have any questions - you know who to ask!

Why Is Buying Such a Smart Move in Idaho Falls?

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Today we are going to go over the numbers to determine if it’s better to rent or to buy here in Idaho Falls. If you are currently renting, or know someone who is, you should pay special attention to this. For the sake of consistency in the numbers, let’s say that we are talking about a home that costs $210,000.

With a 5% down payment, you will still need a loan of $200,000. The standard interest rate on this type of mortgage is around 4%. In addition to these costs, your property taxes would cost you $1,950 per year, with an extra $600 per year to cover insurance. This makes your principal payment $1,167 per month. 

In 12 months, you would be able to take your principle balance down to $196,377 which gives you an equity buy down of $3,396 and an extra $7,350 of equity assuming a 3.5% appreciation rate. Those numbers may not mean hard cash in your pocket, but they are real.

In addition to those savings, you get tax breaks as well. You can deduct both your property taxes ($1,950) and mortgage insurance ($7,920) on your taxes, giving you $9,870 back on your taxes.

I called a few property managers to get an idea of what this home would cost per month if you were renting it, and they came to a consensus that it would be around $1,450 per month. If you were renting this home, you would be paying an extra $283 per month which adds up to $3,396 per year. 

As you can see, when you buy a home as opposed to renting it, you can save up to a total of $16,582 on a $210,000 home in just your first year of homeownership! 

If you don’t own a home, or know somebody else who doesn’t, these are the numbers and numbers never lie. If you have any questions for us, give us a call or send us an email. We can’t wait to hear from you!

Click here to learn more about the advantages of being a homeowner.

Review of the 2015 Idaho Falls Real Estate Market

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In mid-December, the Fed increased interest rates by a quarter of a percent. The market anticipated this, so mortgage rates have increased by the same amount. For instance, a thirty-year fixed-rate mortgage rests at about 4%. The Fed announced rates will increase by another 1% this year.

In Bonneville County, there were 366 properties on the market on January 1st. This number includes townhomes, residential acreages, in and out-of-town properties, etc. Compared to last year, that’s a decrease of 33% -- also, down an even further 25% from 2014.

We have also experienced a significant reduction in inventory, due to a 24% increase in the number of homes sold since last year. However, in the past quarter, this low inventory caught up to us. In December, we didn’t exceed ourselves compared to 2014 and were down 15%. That number, though, is more a reflection of the inventory, not necessarily the market holistically.

The average median price increased 5.7% over the past twelve months. That’s huge! This is the biggest increase we’ve ever seen, compared to our hottest time (during 2007-2008) at 6%. In the $150,000 range, our previous price average, the number of homes increased by 12.5%. Homes over $150,000 increased by 39%. The median has increased here.

Additionally, 33% of listed homes weren’t sold. If your home isn’t priced correctly or in the right condition, it simply won’t sell.

Now is a great time to buy before interest rates increase. This, likewise, is an excellent opportunity for sellers to take advantage of new buyers. We’d be happy to serve your real estate needs in 2016. Give us a call or email today!

Professionals You Can Count On in Idaho Falls

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Homeowners: who do you call when something goes wrong? When you own a home, stuff happens. Things break. They stop working. You want to make changes and repair. Sometimes, you might wonder about who you should call in to help.

Over the years, we’ve worked with different kinds of local contractors that provide exceptional services at competitive prices. We’ve compiled a comprehensive list with this information. We include sheet-rockers, roofers, electricians, plumbers, handymen, landscapers, carpet businesses, painters, and more. We know professionals that handle all different trades.
 

If you need a professional to help with home repairs or changes, give us a call. We’re happy to set you up with this list and connect you with a credible professional in the area.

Also, if you have an excellent experience with a vocational professional, let us know. We’re always looking to add to and improve our list. We love making recommendations to our clients in Idaho Falls.

What Changes Have We Seen in Idaho Falls over the Past Year?

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There's a lot of information, or misinformation, out there -- especially when it comes to market statistics. So, to help you avoid accepting faulty information, I want to share some of the latest Idaho Falls market numbers that we have gathered ourselves. Here are the year-over-year numbers for Bonneville County:

• Number of homes on market: Fell from 673 to 482, a drop of 28%
• Months of inventory: Decreased from 4.5 months to 2.5 months
• Average sale price: Increased from $156,145 to $167,825, a 7.5% increase
• Homes sold YTD: Last year we were at 1,228, this year we're at 1,557, up 27%
• Sold in last three months: 458 homes were sold at this point in 2014, as compared to 483 in 2015.

Right now, we're in a very strong seller's market. We are low on inventory, so the sooner you put your home on the market, the better. Luckily for buyers, the market is starting to move toward more balanced conditions. When taking into account all-time low interest rates, the next six months are looking good for buyers and sellers alike.

If you have any questions about our market, or if you would like real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!

Happy Halloween from Keller Williams in Idaho Falls

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Thanks for joining us today with Batman! You’re invited to our holiday celebration at the end of the week. On Friday, between 4 and 6 o’clock, visit the Keller Williams building in your costume for some fun and candy. We look forward to seeing you on Friday. Happy Halloween!

The Process of Removing Radon

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In our last blog we discussed the problem with radon in homes, specifically in our local area. Today we'll be going over the process of radon remediation. To do this, we're filming in the basement of a home that went beyond typical radon readings. I'm back with Gary from Radon Be Gone  and he's going to show us the process.

The process starts by drilling a large hole into the concrete in the basement. This forms a suction pit so that all of the radon gas and other soil gases can be drawn out of the basement. A large pipe is then run through the home into the rooftop where it is blown out of the home via a fan at the end of the pipe in the attic. The fan itself is lightweight, energy-efficient, and relatively noise-free. They last anywhere from 10-15 years. It will cost roughly $75 per year to power.

We want to remind you that we're doing this video because roughly 20% of the homes in Idaho Falls have higher percentages of radon gas than the EPA allows. The levels of radon get worse as you head north, so be sure to contact us if you feel the need to test your home.

As always, please don't hesitate to contact me if you need any assistance with real estate in Idaho Falls. I look forward to hearing from you!

Should You Get a Radon Test for Your Idaho Falls Home?

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Today I have Gary from Radon Be Gone to help us talk about radon inspections. A lot of people don't know too much about radon, so I thought I'd take the time to educate you on it.

Radon is a radioactive gas formed by a naturally occurring breakdown of radium, and it is hazardous to your health. It comes from decomposing radium, and it's everywhere, but we have to test to make sure that the levels aren't high enough to harm people.

In Idaho Falls it's estimated that 20% of homes have radon that is above the acceptable exposure level. Radon exposure can cause lung cancer, and it kills roughly 20,000 people every year in America.

When we have inspections done on properties for radon, we usually check in the basement. An instrument is placed to trace the levels of radon, and it takes 48 hours to complete the test. Readings can vary throughout the year, especially if there is high wind.

In my experience, the areas north and south of the Sunny Side Corridor, as well as the foothills, are where radon readings tend to increase. Another area where we've seen higher numbers is along the Jefferson County Line Road near Madison County.

Our next video will document the process of radon remediation. We'll be following Gary through a home that he is remodeling in order to let you know how he removes radon from a home.

As always, if you have any questions about real estate in Idaho Falls, please don't hesitate to contact me!

What Is Earnest Money?

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The topic of earnest money is one that’s shrouded in confusion. Today we are going to talk about the facts of earnest money, and what you need to know about it.

What is earnest money? It’s a buyer showing the seller they are earnest and sincere about buying the property. What it really functions as is a security blanket. When you place an offer on a home, you are asking the buyer to take it off the market. They want to know that a buyer is invested before they do this, and that’s where earnest money comes in.

I recommend depositing about 1% of the sale price in earnest money. That seems to be the magic number for us. It’s enough to hold the owner’s attention and may save you in the event of a default.

When you pay it, the earnest money is deposited into a trust account for the benefit of both parties. It will not leave that trust account without the agreement of both parties, which leads us to one of the most common myths I hear about earnest money.

I’ve had many people come to me and tell me they believe their earnest money will be forfeited if they end up defaulting. That’s simply not true. If a buyer defaults, that just starts a second negotiation, a negotiation to get out of the contract. Sometimes, the earnest money is enough for the buyers to avoid legal action, which the seller would have the right to pursue if you defaulted.

Assuming no difficulties, the earnest money is applied to the down payment and closing costs at closing. It’s not a donation, it actually counts as part of the cash for your down payment.

If you have any questions for us about earnest money, feel free to give us a call or send us an email.

Where Are Interest Rates Heading?

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Last week, I attended the annual Megacamp for Keller Williams. Gary Keller discussed his and the experts' forecast for our real estate market, and they all agree that a shift is approaching our market due to changes in interest rates.

The Fed wants to see interest rates between 5% and 6% because the rates we have now are not healthy for the economy. What does this mean for you?

Let me give you an example. The other day, I had some folks lock in a 30-year conventional loan at 3.625% percent. If they borrow $200,000, they would have a principle and interest payment of $915. If rates go up one by one percent, they can only borrow $178,000 in order to have a payment of $917. If rates go up to that target range of 5.625%, to keep the same payment of $917, you would only be able to borrow $159,000 to buy their home.

That is a 22% loss of buying power due to a two percent change in interest rates. There will still be people moving, and first-time buyers will still come onto the market. However, all the people who bought homes with these low rates may want to upgrade someday. When they recognize their loss of buying power, these people won't move. They'll stay where they are.

The consequence is that fewer homes will come on the market, and there will be fewer buyers. At this point in time, the experts don't believe that interest rates will affect home value. So if you're interested in buying, lock in these low interest rates now.

If you have any questions, give me a call or send me an email. I look forward to hearing from you!

What’s Going on in Idaho Falls?

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We are here today to give you an update on how the Idaho Falls real estate market has performed so far in 2015. Today we are going to provide you with the latest statistics, while comparing them to last year’s numbers to demonstrate where we have seen growth in the market.
 

I’ve mentioned in the past that inventory has been low in Bonneville County, and that fact still holds true. In fact, inventory is down 30% from last year and some price ranges are seeing half of the inventory they were seeing at this point in 2014.

Homes are selling extremely quickly if properly priced. Right now, we are up 33% in closed sales as compared to last year.

The average days on market is down as well, from 103 this time last year to just about 90 days right now. This is a measure of time from when the home is listed until an offer is accepted.

Everyone wants to know about home values, and if they are going up or not. We are happy to report steady home appreciation over last year. Home values have risen an impressive and healthy 4% from last year. 
 
We have plenty more statistics where these come from. If you would like to take a look at them, just send us a quick email and we can send you a report immediately. We would love to hear from you! 

Home Staging Is a Key to Selling in Idaho Falls

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Last month, we talked about the importance of getting the outside of your home ready for sale and making sure your “curb appeal” is all squared away. You don’t want to over promise or under-deliver. So if the outside of your home looks great, you’ve got to have the inside to match. Here are some tips to help get your home staged and ready for home buyers to see:

The first thing to do is declutter. Make sure your furnishings are accenting the house, not dominating it. Take down personal photos as well, because while you want the home to look lived in, you don't want the buyer to feel like they are in someone else's home.

You want to make sure your carpets are all squared away. Clean them, stretch them, even replace them if you have to. Paint is another important aspect of your home, and one of the highest returns on investment when it comes to remodeling. If your home needs a fresh coat, go for it. You will get your money back from that investment.

There is a lot to learn about getting your home ready. If you are considering selling, give us a call or send us an email and we would be happy to help provide you with even more useful advice. We look forward to hearing from you!
 

Achieving Is Believing

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Today I'm here to talk about my father, and how he was determined to live, and live very fully. My father's name is Jean, and he'll be 80 years old this year.

Why am I talking about my father? Well, he's taught me a lot about determination and hope.

Between the age of 47 and 51 he had four heart attacks. This left him with one functional chamber in his heart, and a doctor told him that he had about 3-5 years left if he took things easy.

My father made the decision that he didn't want to die sitting down in a chair. He kept on living like he always did, and the rest is history. Now, 29 years later, he's still going strong.

He's still working out on a treadmill, a stair-stepper, he does sit ups, push ups, as well as taking a long walk every day.

Without saying anything, he sets a sterling example of what you can do with heart, determination and drive.

You can do so much more than you believe, you just have to trust yourself to do it!

What Role Does Curb Appeal Play When Selling in Idaho Falls?

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So, you're thinking about selling your home, and wondering what you're going to do. Most people start with the inside of the house, which is important, but they don't realize how crucial it is to make the exterior of the home look perfect.

The key is to get potential buyers in the door, and that will never happen if the outside of your home is in disrepair. Many people will see the front of your home first, and if it doesn't look nice, they won't even bother to investigate further. Here's our advice:

Start at the curb: Look at your house and be objective. Are your hedges well-trimmed? Is your landscaping neat and tidy? Have you power sprayed the front of your house? Is the door well-painted? Remember, from the outside in you need to have every detail taken care of because people are making judgments from the outside about how your home is taken care of on the inside.

Zillow, Is it good or Is it bad?

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Around 2006 or so, Zillow started to make an impact on the real estate world. Nowadays, there are many websites that provide a wealth of information about the real estate market. While Zillow is a great tool and resource, you should be wary of the information you find there.

It's great that information is more accessible than ever before, but you need to be aware that not everything you see online is accurate. Zillow's "Zestimate" is notoriously inaccurate and it should not be used to determine the sale price of your home.

We are a non-disclosure state in Idaho, so we do not have to disclose what we bought our properties for, and most people don't. This means that Zillow in Idaho is even more inaccurate than elsewhere.

If you need accurate information about your home's value, please contact me or go to the website below.

Idaho Falls Home Evaluation

As always, if you ever need assistance with real estate in Idaho Falls, please don't hesitate to contact me!

Looking for Home has Never Been Easier!

Download the KW app now to simplify your home search!

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The new Keller Williams mobile app will allow you to look at available homes as you drive down the street looking at them. This will vastly simplify your home search, as it allows you to look at homes in real time, and you can see the price and other important details.

This app will showcase homes that are nearest to you because it tracks your location with GPS, but you can also search specific neighborhoods for specific property types. If you find a home you like, you can then swipe through the pictures and see the home.
If you'd like to use this app, please click on this link and follow the directions: http://app.kw.com/KW2MO3641/

This app is also compatible with your iPad, and if you're travelling, this app will work in whatever neighborhood you find yourself in. There really isn't any reason why you shouldn't be using this app. You can use it on the go, or you can utilize it from the comfort of your own home.

As always, if you need any assistance buying or selling in Idaho Falls, please don't hesitate to contact me!

How Can You Start Every Day the Right Way?

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After 26 years in real estate, I decided to hire a coach to help me take my services to the next level. It has been incredibly helpful!

One of the things my coach introduced me to was a book called The Miracle Morning by Hal Elrod. It focuses on how you can spend the first 30-60 minutes of your day adopting a productive mindset. The book explains how starting the morning right can frame your day and help you accomplish your goals!

We utilize a program here that Keller Williams teaches called BOLD. One of the first laws is that your cells eavesdrop on your thoughts. When someone is having a positive day, can't you tell? Usually, when a person's thoughts are in the right place, you can tell just by their body language that they're having a good day. The same goes for when people have negative thoughts - their body language shows it!

Another BOLD law is what you focus on expands. If you focus on something bad, it's only going to make you feel worse and make the problem bigger. Likewise, when you focus on something positive, you can bet that it will influence your entire mindset and lead to a more productive, upbeat day!

I just wanted to share these thoughts today because some of these points really made a positive impact on my life and business, and I hope they can do the same for you!

As always, give us a call or shoot us an email if you need real estate assistance of any kind. We would love to hear from you!

How we helped Doug with his real estate transactions by always going above and beyond

 

"We’ve worked with Mike Hicks for the last four houses that we’ve purchased in the course of twenty years. The reason we go to Mike over and over again is we always get results. His staff is top-notch. They always go above and beyond. There’s always been fast results for every house that we have sold. I think going above and beyond is their standard operating procedure. "

How to Identify a Great Rental Property in Idaho Falls

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Today, Jared Duncan, a property manager with BMG Rental joins us to discuss rental properties here in town. In the past, we discussed rental properties and investment properties, so today we thought we would talk about HUD-owned homes and identifying great investment properties.

Whenever you're looking for a solid investment property, the first thing to look at is the curb appeal. Large, mature trees, and vinyl siding are examples of things that make a home more appealing to potential buyers.

We took a look at a HUD-owned property here in Idaho Falls recently that was listed for $78,000. After some new carpet and flooring, Jared estimates that he could have the property ready for about $5,000-$7,000. In total, if you were to purchase this home, you would be in for about $85,000 and could rent out the property for $850 per month. The return on your investment would be 1% per month, which is a pretty nice return!

Now is a great time to try to scoop up a great, low-priced investment property. If you would like professional assistance, or if you have any real estate questions at all, give me a call or shoot me a quick email. I would love to hear from you!