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.

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

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Buying an Idaho Falls home? Search all homes for sale

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?

Selling your Idaho Falls home? Get a free home value report
Buying an Idaho Falls home? Search all homes for sale

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.

Are You Spending More Money by Renting Instead of Buying?

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.

It's crazy, but true: not many people are familiar with the value of home ownership. 

Interest rates remain incredibly low - just the other day, we had a client who was able to lock in a 15-year fixed-rate mortgage at 2.75% on a VA loan! 

That's almost stealing money...

Typically, rates for an FHA loan are around 3.75%. Today, if you are renting a $150,000 house, your monthly payments are probably between $1,000 and $1,200. If you were to purchase a home for that same price, your monthly payment would be up to $300 less! Over the course of a year, that is a significant amount of money.

Not only are you saving money by owning property, but you have the joy of home ownership. Instead of helping the landlord pay off their mortgage, you will be building equity you can use down the road. 

If you have questions about the benefits of home ownership, please don't hesitate to reach out to us. We would love to help you make the most important and financially rewarding investment of your life!