When it comes to buying or selling your home, the choice between working with a real estate team or an independent/single agent is a significant decision. Each option offers its unique strengths, but many clients have discovered the exceptional benefits of choosing an independent agent. In this post, we’ll explore the differences between these two approaches while shining a spotlight on the many positive benefits of Independent Real Estate Agents vs. Teams

Overall Experience

Whichever path you decide to take, remember that the key to a successful real estate transaction lies in finding a qualified and trustworthy professional who understands and prioritizes your goals.

If you are considering buying or selling a home  I offer a free, no-obligation consultation and will help you start the home-buying process in Boise.  In the meantime, make sure to follow me,  Jennifer Louis, Boise Metro Real Estate Expert, and local relocation guide on Instagram, Facebook, or my blog for fun facts about Boise and of course a few things real estate.  (208) 509-9122 or [email protected].

Is It Better to Rent or Buy in 2024?

Boise’s home prices have gone up substantially over the past several years, but the same can be said for the going rental rate in Boise and the surrounding Treasure Valley.  With mortgage interest rates higher than they have been in years many renters have shied away from the idea of purchasing a home, feeling it is out of reach, but is it?  There are advantages to renting and buying depending on each individual/family’s circumstances.  This article is to demonstrate the facts of what renting in Boise looks like in 2024 and the years to come vs what buying in the present market could mean.  Let’s take a realistic look at renting vs buying in Boise in 2024.

Boise’s Rental Market

There are several reasons an individual or a family decides to rent a home or apartment.  Some, are only in Boise temporarily and need housing for only a year or two.  It could be they are still in College and don’t have any credit built up or funds needed to purchase a home and renting is a more realistic option.  It could also be they just moved here from out of State and want to get a better feel for the area before committing to buying a home.  Some believe that buying a home is just not possible after watching home prices go up year after year in and around Boise.  Whatever the reason renters all face the same struggle when looking for a home or apartment to rent in Boise, low inventory.  This means there are fewer places to rent than renters seeking a place to call home.  The supply vs demand has driven up the prices in Boise and the surrounding Treasure Valley over the past few years making renting more challenging than in the past.

According to Zillow the average price of a rental in Boise is $1850/month, about where it was a year ago.  A single-family home in Boise with a yard and 3 bedrooms/2 baths are renting anywhere from $2,000-$4,000/month depending on size and location.  There are over 1/3 of the rentals in Boise are priced at $2100/month or higher.  In Idaho, according to Zillow rents in Idaho have increased by over 40%  in the past three years. That ranks Idaho fourth in the nation for the biggest increase in that span, and this includes the slight decrease in rent we saw at the start of 2023.

If you take the average cost of rent, $1850 X 12, renters can expect to pay over $22,000/annually.  If a renter can afford to rent in Boise the next step is to find a place to rent and that has become even more challenging.  The most sought-after rentals tend to be single-family homes with yards, but they are not only priced at a premium, but they go quickly, so renters may have to fill out multiple rental applications before finally getting a lease.  The other challenge faced by renters in Boise over the past few years is having a single-family home to rent and finding out that the owner is planning to sell the property.  This can mean the lease won’t be renewed by the new owners or if it is it could have new terms or a higher monthly rent when the new owners take over and negotiate the terms of a lease renewal.

U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent cost will remain about where it was in 2023,  according to Realtor.com’s annual housing cast for 2024

Buying a Home in Boise

For those looking to make a Boise home on a more permanent basis, buying is a more popular option, but there are challenges as well.  First, home prices have gone up substantially over the past five years in the Treasure Valley, and with higher interest rates we are now seeing some potential buyers priced out of the market. The median price of a home in Ada County is around $490,000, coupled with interest rates hovering around 7% many have backed away from buying a home and are waiting until rates come back down.  There are also those who would like to buy, but don’t have high enough credit or long enough employment history to qualify for a loan on a home.

With that said, those who can purchase a home, even with the higher rates are almost always better off than renting.  The monthly payment may be slightly higher compared to renting, but home prices are also increasing making the home more valuable.  Instead of spending over $22,000/annually that a renter will never see again, a homeowner may be spending $30,000, but with a return on their investment.  According to a recent article from Realtor.com home prices are growing at an average of 5.4% annually. That’s about $25,000 worth of equity annually.

The median price may be close to $500K, but in Boise, you can still find homes under $400,000 with 3 bedrooms and 2 baths.  If you are willing to take one bathroom and maybe give up the garage you can find even better deals.  Click here for some of the great deals in Boise that make buying a home affordable.  If you go to Canyon County such as Nampa or Caldwell the prices go down lower.  I just recently helped two families get into homes under $350K.  Take a look for yourself at what is available in Canyon County.   Buyers should also remember that your first house doesn’t mean your forever home.  Buying a home, making improvements, and then reselling a few years later is a great way to get the $$$ to buy the home you really want.

It’s also important to mention the tax advantages that come with owning a home in Boise, Idaho.  Homeowners can take advantage of mortgage interest deductions from the Federal Government which can significantly reduce an individual’s income tax liability. This can potentially save a homeowner thousands of dollars annually.

The Bottom-Line

The Bottom-line is, it depends on a person’s short and long-term goals before deciding to rent vs buy a home.  For many, in the short-term renting may make more sense for the reasons mentioned earlier in this article, but in the long-term buying a home in Boise in most cases makes more financial sense.

Some challenges come with buying a home, such as qualifying for a loan, the higher monthly cost in some cases, and the costs associated with maintaining a home but owning real estate is one of the best ways to get out of debt and start saving money.  No one should buy a home that they can’t afford or that would cause great financial strain, but there are so many creative ways to buy a home and make it affordable.

For example, I recently worked with two couples that are related and decided to purchase a home together.  They took what they were each paying in rent per month and combined that amount towards a monthly loan payment on a brand new home and ended up paying slightly less than they were renting combined.  The home they purchased had two levels and they converted the upstairs into a completely separate living space with its own kitchen and living room.  They share the yard, garage, and entry areas, but now both families are comfortably living in a beautiful new home.

Another example is that of a first-time home buyer who had rented for years.  They were able to qualify for an FHA loan and IHFA loans getting their interest down by over a percent.  This allowed them to increase what they could afford monthly and get them into a home.  They had almost no money for their down payment and closing costs and we negotiated with the seller to pay the majority of their closing costs.  Now they own a lovely home, with a yard and garage and are slowly building equity.  They are paying just slightly higher than what they were paying in rent, but now they know what their monthly payments are for the life of their loan.  No drastic rent increases, and they are building equity.

Start The Home Buying Process Now

Even if home buying is not immediately in your future it’s important to start the process sooner than later.  The interest rates will come back down and that means that home prices will go back up.  Boise still remains a very desirable place to live and so it is key for those considering buying a home one day to start the process of getting qualified for a loan now.  Check with a local lender to find out what is needed to qualify for a home you would like to purchase.  In some cases, you can start shopping right away, but for others, it may take several months to repair credit scores, save for a down payment or pay down debt.  Many individuals and families I have represented to buy a home didn’t think it was possible when we first started talking only to find out that buying a home here was within their reach.

Why Choosing the Right Real Estate Agent is Crucial for Buyers: Meet Jennifer Louis

When navigating the decision to buy a home, especially in a competitive market like Boise, the expertise of your real estate agent can make a significant difference. As Jennifer Louis, a seasoned, top-producing agent, I am dedicated to ensuring that each buyer’s journey is both successful and straightforward.

Clients like James & Cathy M. have personally experienced this dedication:

“Jennifer was extremely graceful, knowledgeable, hospitable, and amazing during our first house purchase. She kept us well-informed throughout the process, making it easy and stress-free.”

Here’s why my approach makes a difference:

• Customized Buying Strategy: I tailor the buying experience to fit your personal and financial goals, providing insights and opportunities tailored just for you.
• Local Market Expertise: My deep understanding of Boise’s real estate market ensures that you are well-equipped to make informed decisions.
• Savvy Negotiator:  With 20+ years in the field, I have helped so many buyers negotiate down the home price, get amazing concessions, incredible upgrades with builders, and win the bid in a multiple offer situation.
• Ongoing Support: From the initial search to the final closing, I am here to guide you through every step, ensuring that all your concerns are addressed with professional ease.

Make the right choice with a proven professional. Choose Jennifer Louis to unlock the door to your new home in Boise.

If you are considering buying or selling a home  I offer a free, no-obligation consultation and will help you start the home-buying process in Boise.  In the meantime, make sure to follow me,  Jennifer Louis, Boise Metro Real Estate Expert, and local relocation guide on Instagram, Facebook, or my blog for fun facts about Boise and of course a few things real estate.  (208) 509-9122 or [email protected].

Bolder Buyers in 2023

During the home-buying frenzy during and post-COVID, many homebuyers were opting not to have a traditional home inspection, buying the home in as-is condition to make their offer more appealing in a multiple-offer situation.  Now, as the market has shifted, home buyers have become bolder and are asking for more repairs in 2023.  If you are considering selling your home, be prepared for a list of repair requests or a credit request towards repairs and plan how to respond accordingly.  Here are some things you might see on an inspection contingency response form from the buyer asking for more repairs when selling your home and what you can do to prepare now:

Safety/High-Price Items

These are items that could potentially cause a safety issue to the home such as faulty wiring, gas leak, roof issues, sick/dying trees close to homes or repairs that could potentially cost over $1000 to repair such as HVAC, roof, plumbing, mold remediation, electrical, foundation issues and sewer line pipe cracks, etc.  Most homeowners if aware of these issues would most likely take care of any of the above issues if it was brought to their attention so it is reasonable for buyers to want these items repaired as well.  The only exception would be if a homeowner was aware of a high price item before listing and discloses it to the potential buyer and prices the home accordingly.

Honey-Do List

Home inspectors typically have a 2000+ checklist of items to inspect during a home inspection.  Even if you maintain your home a home inspector WILL find things that need to be repaired.  If the repairable items don’t belong in the safety/high-price item category, then they fall in the smaller repair or “honey do” list. This could range from cosmetic issues such as a window missing a screen, electrical outlets are not grounded (for older homes), paint chips, loose door handles, small leaks in showers, clogged gutters, and the list goes on.

In today’s market, most sellers are willing to negotiate with buyers for the requested repairs rather than risk having to put the home back on the market.  We are starting to see more multiple-offer situations in the Bench area, however, if an issue comes up on one inspection report and the seller and buyer can’t come to an agreement regarding repairs, most likely the same issue will come up with a different buyer.  In many cases, if the repairs are reasonable the seller may opt to either repair or give a credit and move on.

Pre-Inspect Before Selling

If you’re considering selling and think there could be some potential safety or high-price items, you may want to have the home pre-inspected by a home inspector.  This gives you time to get those items repaired before going on the market, However, you should be aware that once you know the issues, they will need to be either repaired or disclosed to potential buyers.

If you opt not to get a pre-inspection it’s still recommended for anyone selling their home to get their HVAC serviced and make sure the licensed HVAC company puts a dated sticker on the unit showing it’s been serviced.  Almost 90% of the time HVAC units older than 5 years will be called out by the inspector, whether they are functioning properly or not to be checked out and serviced by a HVAC specialist.  If you do it before listing the home you can avoid the buyer asking for that repair or service. Additional things you can do yourself for example are: clean your gutters, trim branches near home, remove debris from the crawl space, and fix any minor leaks or loose fixtures, and faucets.

I typically give my clients a checklist of items to look over before listing so that there aren’t too many surprises going forward.  Going through your home with a checklist of items to repair & take care of them before selling will save you time and money during the buyer’s inspection window.

Another important factor to consider is if your buyers are using financing to purchase the home.  Certain loan types have stricter guidelines and require certain items to be repaired before the loan can go forward.  For example, FHA Loans in 2023 require the following items are all functioning properties:

• Sanitary facilities which include functional sewage systems.
• Proper heating and ventilation.
• Temperature-controlled heating system.
• Hot water.
• Properly working electrical and plumbing and safe drinking water.
• No paint chipping on the exterior and interior.

The same goes for VA Loans and appraisers for Conventional loans can at times be picky about certain high-price items like roofs or HVACS.  If you feel you have some issues in those areas repair them ahead of time, or look for cash or conventional loan buyers only.

Factor In a Credit in Your Sales Price

In today’s market, it is almost inevitable that the buyer will ask for a repair, service, or credit during their inspection window.  As mentioned previously taking care of some of the items that may come up beforehand could save you time, money, and the headache of negotiating with a buyer in a short time window, however, expect there to be some unknowns that pop up on the inspection report, or that the buyer may ask you to cough up some dough towards closing costs.  Your agent will tell you during the listing appointment what to expect for your area and the potential costs that an inspection may bring.

If you know there could be some cost up front you may want to factor that into the sales price.  If there is the potential for many repairs then price the home lower to account for those repairs and let potential buyers know this.  Additionally, most savvy agents will know the home is priced competitively and will encourage their buyers to be more reasonable in their requests accordingly.  If you have had the home pre-inspected and took care of needed repairs up front then you can feel more assured that the inspection won’t be an issue and the costs or repairs requested should be minimal.

The key is to keep your cool during the inspection window and lean on your agent to give you good guidance on how to respond to buyer requests for repairs or credits.  Once you are past the inspection window you can take a deep breath and know the main hurdle to a real estate transaction closing is finished.  The next step will be the appraisal and financing contingency if the buyer is using a conventional loan or if it’s cash, you can start packing and counting down the days to closing.

Find An Agent With Negotiating Skills

As mentioned the inspection window is one of the most crucial pieces to getting your home sold.  During the buyer’s inspection window emotions can run high if sellers feel buyers are asking for unreasonable repairs or credit requests.  Buyers may feel scared by the findings on the inspection report and in some cases opt to walk away rather than negotiate repairs with the seller.  It’s IMPERATIVE to hire a real estate agent that knows how to guide you as a seller (and a buyer) through this process and get you to the closing table.

I have helped numerous sellers to get their homes prepared for the market and take care of items before they come up on the inspection.  I also prepare my clients for the items that will come up and help them to see which ones are reasonable, unreasonable, and negotiable.  Additionally, if some repairs are needed I have a network of very reliable, affordable, and qualified contractors to get the repairs done in a timely fashion.  Not all agents have this network so it’s important to find one who does.

Here’s an actual example of what a skilled agent can provide you with if a major repair request comes up.  A couple of years ago I helped a lovely, elderly couple sell their home of 35 years.  We went through the home thoroughly, but they did not have it pre-inspected.  During the inspection, the buyer’s home inspector found that a vent from the bathroom wasn’t vented properly and was sending steam into the attic for some time which led to extensive mold in the attic.  The inspector also called out that the electrical system wasn’t grounded and had two prong outlets (which is still to code for homes built during this period).  The Buyer’s Agent brought in a mold specialist and they quoted over $13,000 for the mold remediation.  The buyer also wanted the electrical system upgraded throughout the 1600sqft house which would have entailed tearing out drywall, patching, painting, and the works, the estimated cost would be $22,000.

I brought in my own mold specialist who is a licensed and certified mold remediation specialist, but doesn’t charge for services not needed.  Additionally, he offers a guarantee and he quoted $7000 for the same remediation job.  I went back to one of my previous offers and signed them as a backup offer.  The current buyer wouldn’t budge on the electrical because his agent didn’t explain that for a mid-century home, it was acceptable to have two-prong outlets.  The buyer backed out, the new buyer immediately went under contract.  My clients remediated the mold, provided the guarantee to the new buyer and we closed even earlier than planned with buyer 1.  I saved my clients $6,000 and the potential issue with the electrical and got their home sold.  They had to remediate the mold either way because that is considered a safety issue, but the electrical wasn’t an actual issue, just a nice upgrade the buyer was after.  The new buyer and his agent understood this and everyone arrived at the closing table happy.

If you are considering buying or selling a home  I offer a free, no-obligation consultation and will help you know the best way to prepare your home for the market.  In the meantime, make sure to follow me,  Jennifer Louis, Boise Metro Real Estate Expert, and local relocation guide on Instagram, Facebook, or my blog for fun facts about Boise and of course a few things real estate.  (208) 509-9122 or [email protected].