Real Estate in Boise, Meridian, Nampa
& All of the Treasure Valley

Jennifer Louis
Residential Real Estate Expert
Welcome To Boise and Beyond Real Estate

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Home Touring Etiquette in Boise’s Hot Market

Home Touring Etiquette in Boise’s Hot Market

by | Apr 21, 2022 | Boise Home Tips

One thing home buyers may overlook when buying a home in a hot market like Boise is home touring etiquette.  When multiple buyers are looking at, and offering for the same home, sellers can be picky about whom they choose.  Making sure to have good behavior while touring homes is one way to impress upon the seller that you are a serious buyer.   Here are a few dos and donts of home touring etiquette to keep in mind during your home tour.

Using the Bathroom

The general consensus among real estate professionals is to “hold it” if possible and not use the bathroom when touring a home.  If the home is owner-occupied or tenant-occupied they may be uncomfortable with strangers using their bathroom.  If the home is vacant and clean, the seller will want it to stay that way until it’s sold.

In all cases ask your agent that brought you, or if it’s an open house check with the agent on site to know if using the bathroom is ok or not.  Nothing worse than using the bathroom, going to flush, and finding out the water isn’t turned on, or even more common, no toilet paper. That could make for a very uncomfortable experience, and could taint the seller’s opinion of you as a buyer, should you decide to make an offer.

Of course, if you gotta go, you gotta go.  If it’s an emergency, let the agent know and make sure to leave the bathroom as you found it. The best way to avoid those unexpected urges when home touring is to plan ahead. Schedule into the home tour bathroom breaks in between home showings, or before going to an open house.

Opening Cupboards and Closets

It’s fine to open closets, cabinets, and cupboards during a home tour, but make sure to do so in plain view of your agent.  Your real estate agent or the open house/listing agent is responsible to the seller that the home will be in safe hands during home showings and open houses.  However, with that said, seeing how the drawers open, what shelving and space are like in closets, etc. is important to know when looking at a home to know if it will work for you.  Just remember you are shopping for a closet and storage space, not a new wardrobe or dishes.

Testing the Furniture

Remember, you are looking at the house to potentially buy, not the furniture.  The general rule of thumb is to stay off the furniture.  Additionally, many homes are staged, and often that may be a cardboard box or air mattress hidden under that designer comforter or pillows.   If you are home touring with kids, make sure they understand the rules of home visits and not jump on beds, or play with other kids’ toys.

If it’s been a long day, and you really need to sit ask your agent if there is a place you can kick your feet up for a few minutes to rest.  Often open house agents will have brought a couple of chairs and are always happy to accommodate buyers in a need of a break.

Smile, You’re on Camera

It’s common these days for homes to have security cameras set up outside the home, and often inside the home.  You may be tempted to give your two cents on how the house is decorated, the choice of paint color, or maybe even the list price, but you never know who is listening or may listen to a recorded video later.  Keep any thoughts, or opinions to yourself that could affect how you negotiate during the offer period or could affect getting your offer considered.

Once outside, back at the cars is usually a safe distance to talk with your real estate agent to let them know your thoughts on the home.

 

Boise Real Estate Professional Ready to schedule your home buyer tour in the Boise Metro Area?  Give me a call, I’d love to show you around! Jennifer Louis, Real Estate Professional for the Boise Metro Area. (208) 509-9122 or [email protected]

The Pros & Cons of Online Real Estate

by | Mar 29, 2022 | Market Trends

Only a few decades ago, many would have struggled to imagine a world where real estate and the internet are so intertwined. Back in the pre-internet age, buyers and sellers alike were limited to adverts in local newspapers or advertorial posters in real estate offices.  Today, the internet has created a much more efficient process to not only find a property but to sell one as well. However, as the online presence has grown so have the various options to buy and sell real estate.  Here is a look at the pros and cons of using online real estate services available in Boise compared to traditional services.

iBuyers

This is a real estate company that uses technology to buy and resell the property.  iBuyers have gained popularity as they can eliminate some of the hassles of selling a home on the market, and offer a guaranteed sale since no mortgage is involved.  However, what a seller may make up for in convenience often comes with a higher price tag.  An example of iBuyers would be Zillow, Opendoor, and Offerpad, however not all iBuyers are present in Idaho.  In 2021 Opendoor arrived in the Boise market.  The fees are similar to that of a real estate agent, and often higher, however, the process is handled completely online, without a physical agent.  iBuyers claim to buy at “market value” but since the homes are not listed on the MLS they don’t bring multiple offers, and typically sell substantially lower than homes sold on the MLS.

It makes sense to use this service if the timing is more important than the sale price.  For example, a homeowner may have bought another home in another area and needs to quickly sell their present home to use those funds for the new purchase.  A quick sale, with no chance of the sale falling through, is essential and outweighs selling on the market to try and get the best price.  An iBuyer can offer this to most homeowners, as they inspect the home upfront and offer the price, paid in cash, with no contingencies giving the seller peace of mind.  In Idaho’s hot real estate market, the majority of Real Estate Agents can also offer this service, especially if they already work with investors or cash buyers.

Flat Fee Real Estate Services

These companies charge sellers a set fee, and will typically offer some real estate services. For sellers that want to handle the sale themselves, this allows them to sell on their own and list their homes on the MLS.  However, a newer model that arrived in Idaho in 2021, Homie, claims to offer “full service” real estate services for a flat fee.  They charge $2500 fee, plus 2-3% of the sales price.  The services include a listing on MLS but with no in-person support.  Homie agents typically have less than one year of experience & work in a call center-type environment handling 10+ listings at a time.  It’s not the “full service” that most traditional real estate agents provide.

Homie posts billboards around town such as, “Save thousands”, however, is that truly the case?  In 2021, according to the IMLS in Ada County, 61% of the homes listed by Homie sold under the list price & took an avg 19 days to sell, 8 days longer than homes sold w/a traditional real estate agents.  Homie’s listings sold an avg of 6% less than comparable homes.  So, the “thousands saved” in real estate fees instead went to the buyers, not the sellers.  Take an example:  Homie listed a Boise home in June for $650K. With their model, the savings to the seller in fees were around $20K, however, the home ended up selling for $600K or $50K less than the list price while other comparable homes in the subdivision sold for substantially more. Any savings in fees was lost in the sales price & the seller in this case lost $30K+ compared to their neighbors’ homes sold utilizing traditional real estate services.  Incorrectly pricing the home, or not knowing the home’s true value is costing sellers “thousands”.

The most common Homie complaint is that the company overpromises and underdelivers. Homie advertises that sellers receive the same service as a traditional real estate agent, but Homie agents handle so many listings at once that they don’t have the time needed to dedicate to each transaction like a traditional agent would.

Reviews are quite mixed when it comes to Homie’s Services.  One of the common complaints is that Homie offers poor communication and the Seller ends up doing the work on their own, while still paying Homie’s flat fee.

“Working with Homie was a nightmare! We had to do everything…we had to keep up on our own deadlines and ask her to do things an agent would be doing anyways.” – Nicole R., Google Review

“We used Homie to sell our Condo.  The Agent/Team didn’t like phone calls.  Email was the only way to get things done…he never followed through on anything he was asked to do or even checking in with us…We would’ve been better off FSBO, since essentielly that’s how it worked out for us…” – B. Peterson, Google Review

The bottom line is that homeowners using these types of services need/want to sell their homes, but are looking to save on real estate fees.  Using Homie or flat fee services is really not much different from a For Sale By Owner approach, but in most cases doesn’t save the homeowner as much as they anticipated.  A homeowner is better off finding an experienced real estate professional in their area and pricing the home competitively to maximize the home’s value.  Additionally, most real estate agents will negotiate their fee if they are assisting the homeowner purchase a home as well.

Cash Buyer Flyers – As Is

Most likely you have received one of these flyers in the mail.  These buyers look online for homes that typically sell quickly.  They send out a mass mailing to all neighbors offering to buy the home for cash, as-is & close quickly.  The buyer typically buys sight unseen, and already has a price in mind, below market value to account for repairs & updating before reselling the home.  Most of these types of buyers offer anywhere from 10-20% under market value, but they do not charge a commission.  It is important to beware of scammers and make and be sure to know the true market value of your home before engaging with this type of buyer on your own.

In a Seller’s Market, like the one we currently have in the Treasure Valley, these offers are not as advantageous to the seller as it would be to list the home on the MLS or real estate market.  In slower markets or buyer’s markets, these offers may make more sense and should be kept for consideration when ready to sell.

Boise Real Estate Professional If you have questions about your home’s value and how much you could net with the sale of your home please contact me for a free home value evaluation. Jennifer Louis, Real Estate Professional for the Boise Metro Area. (208) 509-9122 or [email protected]

Boise Realtor, Jennifer Louis talks to CBSN about Affordability

Boise Realtor, Jennifer Louis talks to CBSN about Affordability

by | Dec 15, 2021 | Market Trends

For several years Boise has made headlines when it came to its laid-back lifestyle, affordability, and housing market, however, recently the headlines have a different tone. Several market studies and news sources, including CBS News, named Boise The least affordable housing market. Boise Realtor, Jennifer Louis, and her clients were interviewed about affordability and Boise’s housing market for this story in December 2021.  Watch the full CBSN Report here or click below.

Does it make sense to buy or sell in 2022?

If Boise is considered unaffordable, what does this mean if you are buying or selling? Since September 2021 we’ve started to see the impact of fast-rising home prices on the overall market.  As Fall approached many Buyers have hesitated to enter the market, in hopes home prices will go down in the Spring.  Potential sellers have also put the brakes on selling, after watching homes for sale sit longer than expected on the market, and often accepting offers lower than the asking price.  In Fall and Winter real estate traditionally slows down in Boise, but not for the past few years.  Home prices continued to increase even though the coldest months.  So, is the recent holding pattern seasonal or something else?

A little of both.  We have definitely seen the market slow down compared to last year, most likely due to the drastic increase in home prices we saw in 2021.  Ada County saw a 30% increase and Canyon had a 31% increase.  This has led to an affordability wall.  Meaning, for many first-time homebuyers or buyers unable to afford or qualify for loans at the median price, the chance to own a home has become challenging, if not impossible.

Yet, compared to many neighboring markets homes in the Boise area are still considered “affordable”.  The entire Treasure Valley continues to face record low inventory when it comes to homes for sale, and there is no end in sight.  Even if there are fewer buyers in the buying pool, prices here are expected to continue to increase.  Click here to access your own portal to the MLS and find out in real time what homes are selling for in the Boise area. 

Estimates are showing a 7-12% increase in home prices in 2022 in Ada County.

For buyers, this is a great time to get in while interest rates are still low.  With lower rates, and an increase in home prices, buyers can get in now and start building instant equity on their home.  Find out if you qualify to purchase a home is the first place to start. For Sellers, this is also a fantastic time.  Sellers can either cash out on their equity in this hot market and move up into a larger home, or one that better suits their family, keeping their monthly payment about the same.

A realist approach is key.

The key for both buyers and sellers is to be realistic about the market before buying a home or selling the one they are in.  For buyers, there are some fantastic home loan options out there for first-time home buyers and coupled with a low rate, buyers may be able to afford more home than they thought.  Buyers also may want to broaden their search criteria, consider other cities in the Treasure Valley that may be more affordable, and have all their ducks in a row before starting the home buying process.  This means being pre-approved by a reputable local lender, and truly understanding how much house you can afford.  Having a downpayment set aside, and mentally preparing to react quickly when the right home comes about.

Sellers also need to take this time for a reality check.  Although it is a Sellers Market, the signs are there that 2022 won’t be as dramatic as previous years.  With a median price of $534,000 in Ada County buyers are wary of throwing in an offer, so homes may sit longer than before.  We may start seeing fewer bidding wars, and fewer cash offers.  The first step is finding out how much your home is worth.  Set up a free consultation to find out.

Regardless, Boise is still a great city and place to live so real estate will continue to be bought and sold here, but perhaps at a slower pace than the past several years.

It’s key to hire the right real estate professional that knows, and understands the market you’re buying or selling in.  Contact Treasure Valley Real Estate Expert, Jennifer Louis for a free consultation.

 

 

 

More homes sell below list price, what’s next? – November 2021 Boise Market Trends

More homes sell below list price, what’s next? – November 2021 Boise Market Trends

by | Nov 23, 2021 | Market Trends

October was another exciting month in Treasure Valley real estate, instead of the majority of homes selling over asking price, more Boise homes were selling below list price, leaving many to wonder if this trend is seasonal or an indication that the local real estate market has peaked.

Let’s Look At The Data

To some extent the decrease in inventory and pricing should not come as a surprise as this is a common trend during Fall and Winter in the area, however, in 2019 and 2020 we saw home prices continue to go up even during the seasonal slowdown.  Observing the past couple years of unusual trends, many home sellers anticipated the same would happen in 2021 and priced their homes accordingly.  Yet, this year as the Fall approached home prices suddenly started to become less affordable to many of the buyers, hence the affordability wall that is facing many buyers today.

In Ada County in October, 980 single-family homes were sold, and just over half sold for under asking price, The homes that sold under asking price averaged an original list price of $608,000 or 14% over the current median home price.  These homes ended up dropping their prices, or accepting offers around an average of 7% lower than their asking price.

The homes that sold over the asking price averaged a list price of $593,000 and sold 4% over the original list price.

When analyzing the two categories,  homes with an asking price of over $600,000 in many cases sat much longer on the market and either reduced their price or accepted a lower than asking price on their home. On the other hand, the homes selling at the median price of $533,950 or lower, especially turnkey and in desirable neighborhoods many received multiple offers and a sales prices over the asking price.  Here are the charts comparing sales price in October compared to two months earlier.

Ada County 2021 market stats

What to Expect Moving Forward

Does this mean this downward price trend will continue?  Most likely not.  Yes, home prices aren’t rising exponentially as we’ve seen earlier this year and over the past several years, but we are still in a major home inventory supply shortage.  Even with the increase in home prices, there are still substantially more buyers looking to purchase a home, than there are homes to buy.

We can expect with the current demand for housing still being high and inventory still low that home prices will slowly continue to rise in 2022.  However, there are more homeowners now that are frightened we’ve reached the peak of the market and will most likely be listing their homes in Spring and Summer 2022 which will increase the inventory and keep prices from shooting up like the past few years.

Home prices will increase in 2022, but nowhere near like we’ve seen in past years.

How much inventory does Boise Metro Have?

Another factor impacting Boise homes selling below list price is the increase in inventory.  In October 2021 we had 1,145 homes for sale compared to 448 the year before.  At present we have about a 1.4 month supply of inventory, which is substantially better than past years, but still lags behind where we need to be for a balanced market.  A better way to explain this is that for a balanced market, one that favors the buyers and sellers equally we would need roughly 4,600 homes on the market.  With our current inventory, it is clear we are not there yet, however, the increase in inventory recently has played a role in impacting how much pricing has flattened lately.

Boise Metro Area had 1,145 homes for sale in October.  It needs roughly 4,600 homes on the market to be considered a balanced market.

Here’s a chart from the Boise Regional Realtors demonstrating the market statistics compared to 2020.

Is it a good time to buy a home in Boise?

2022 should be a very interesting year for Buyers as we can expect more homes to enter the market in Spring and Summer.  If the mortgage interest rates stay low as they have been and with more inventory, buyers will have an increased opportunity of finding a home in the Boise area.  However, don’t expect home prices to come down, but to gradually push upwards.  This is great news if buying, meaning that Buyers can still start building equity from the moment they purchase a home here in the Treasure Valley.  But Buyers should be aware that searching for homes at the median sales price or lower there will most likely be competition.  Buyers will need to carefully assess how to make their offers stand out against other offers.  Hiring a real estate agent that understands the market and the areas of interest is imperative to getting their offer accepted.

When should I sell my home?

We are still in a seller’s market making it an excellent time to cash out that equity while the market is still hot and buyers are still looking for their next home.  Sellers should expect that their home may sit longer on the market than in previous years and that buyers paying top dollar are less likely to buy a home “as is”, meaning they will want the home in top shape before purchasing.  Pricing the home correctly is imperative to attract multiple buyers and get the best offer.  Hire a real estate agent that knows your market, not a call center budget real estate firm to help you get your home ready to stand out against the competition and get you the best price and terms for your most important asset.

Here’s the snapshot of Median Home prices as of October 2021

Median Sold Price

Nampa: 329 home sales $425,000

Middleton: 40 home sales $462,000

Caldwell: 156 home sales $388,000

Median Sold Price

Boise: 492 home sales – $488,880

Meridian: 270 home sales  $511,000

Kuna: 109 home sales –  $448,000

Eagle: 95 home sales –   $851,500

Star: 63 home sales –       $563,000

 

If you are considering buying or selling a home in the Boise Metro Area please contact  Real Estate Expert, Jennifer Louis at (208) 509-9122 or [email protected]

Boise’s Home Improvement Struggle

Boise’s Home Improvement Struggle

by | Oct 14, 2021 | Boise Home Tips

*DUE TO A LINK ERROR ON THE NOVEMBER 2021 NEWSLETTER CLICK HERE FOR THE ARTICLE ON PRONUNCIATION IN IDAHO

Recent growth coupled with the pandemic has spurred the home improvement craze in the Boise Area.  There’s just one problem, Boise has a current home improvement struggle to locate materials and the pros to get the job done. Here’s what is behind the lag in home improvement service providers and some ways to get around it.

New Construction

The past several years the Boise Metro Area has seen tremendous growth.  It’s no secret that Boise housing is struggling with a major supply/demand issue. The counties within the Treasure Valley have put great priority on encouraging builders to build to work towards meeting the growing needs and this has created a huge demand for construction labor and materials.  Unfortunately, Boise, like many other areas in the US has a shortage of laborers due to the last economic crisis when many left the industry and the majority didn’t return.  A recent article by KTVB7 talks in detail about the challenge builders are facing to find construction laborers.   Additionally, the pandemic created a material supply issue all across the construction trades from steel, lumber to paint and cement, creating even more delays in getting homes built.

So what does new construction have to do with a Boise homeowner’s home improvement struggle?  It’s simple.  Builders can provide subcontractors with volume work,  giving them multiple homes to work on.  This saves them time in having to go out and constantly quote out new jobs or order materials for individual projects.  With so many of the trades dedicated to the builders, individual homeowners are finding already scarce construction trade pros harder to secure.

Materials in Short Supply

As the previous subheading touched on, construction materials have become hard to secure especially in 2021.  A lot of this is due to demand, but then you add in a pandemic that caused supply chain issues, closed factories, loss of laborers to make the materials and the materials dwindled even more.  Take the freeze that happened in Texas earlier this year.  The unexpected weather caused huge factory shutdowns and affected the principal ingredients needed by most major paint manufacturers in the US. If you’ve gone to Sherwin Williams or Benjamin Moore lately you probably noticed they were out of a lot of paint and as of the first week in October most of the major paint companies in the Treasure Valley said they had no exterior paint to sell that week leaving paint contractors scrambling to find paint from competitors or other locations.

One local company, Lucas Painting said the following in regards to the recent paint shortages they’ve encountered:

“We’ve seen paint and material shortages across most brands which has caused delays in work being completed. On many occasions, we’ve had to go to several stores before finding the product we need or stores are only offering paint in larger 5gal buckets instead of 1gal which forces businesses to buy more quantity of 1 color than they actually need.”

Ways around the shortage of construction trades.

With the recent growth, one way to get help getting those repairs or updates done is to find the materials yourself.  Once you locate and secure the materials ask your neighbors, or check local social media websites to see if you can find an experienced tradesman.   Nextdoor.com is a great resource to find a handyman, or newly relocated tradesman looking for work while they get their own business established.

If you haven’t already noticed Idaho prides itself on word of mouth and local recommendations.  With that said, a great resource is to ask your trusted real estate professional for a recommendation and maybe even ask if they would put in a call for you to get it scheduled.  Real estate professionals refer out a lot of business to various construction trades and these companies are loyal to them.  If your realtor calls on your behalf or recommends a business you have a good shot of getting on the schedule.  Once you have a subcontractor scheduled and the work is done, and paid for asking them who they recommend for your next project, and ask if they will put in a good word for you.

If you don’t know a real estate agent feel free to reach out to me, an experienced and trusted real estate professional throughout the Treasure Valley and I’ll do my best to get you in contact with the trades you need for your home repairs/improvements.

Boise Real Estate ProfessionalJennifer Louis, Real Estate Professional for the Boise Metro Area for a free home value analysis. (208) 509-9122 or [email protected]