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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Your Property’s Assessed Value versus Fair Market Value

Your Property’s Assessed Value versus Fair Market Value

Property owners in Ada County have recently received their 2023 Assessed Value notices, and to the delight of many, there’s a surprising dip compared to the 2022 assessment. This unexpected turn of events is fantastic news for homeowners, as a lower assessed value translates to reduced property taxes. However, if you’re contemplating selling your home, you might be wondering: does the drop in assessed value parallel a decline in your home’s market value? Let’s delve into the differences between a property’s assessed value versus fair market value.

What is Assessed Value?

The assessed value is the dollar value assigned to a home or other property for tax purposes. It takes into consideration comparable home sales, location, and other factors. In Ada and Canyon Counties properties are assessed annually on January 1st.  They are sent to homeowners around the middle of the same year and are due for payment during the following year. Assessed values in Idaho over the past ten years tend to be lower than the Fair Market Value.

What is Fair Market Value in Real Estate?

Fair market value (FMV) in real estate is the price that a property will sell for in an open market, in other words, what a buyer is willing to pay for a home and a seller is willing to accept.  Market value reflects what a property could sell for, irrespective of its assessed values. Relying exclusively on assessed or appraised values may lead sellers to misjudge and potentially misprice their property. Determining a home’s market value involves a nuanced analysis, considering various factors:

  • External Characteristics: Elements like curb appeal, roof and garage, lot size, home style, and the availability of public utilities.
  • Internal Characteristics: Sqft, Bed/Baths, updates, appliances, special features such as RV parking, views, shops, etc.
  • Mechanicals: The age and condition of the HVAC, water heater, plumbing, electrical, etc.
  • Comparables (Comps): Understanding recent selling prices of similar homes in the same area is crucial for a realistic market valuation.
  • Supply and Demand: The dynamic between the number of buyers and sellers in your area influences the perceived value of your property.
  • Location: The neighborhood’s desirability, the quality of schools, and the local crime rate all play a role in determining market value.

According to the Ada County Assessors website, assessors estimate what a typical buyer would reasonably pay for a property on January 1st of the year. Assessors do not consider updates inside the home, such as remodels, new electrical work, plumbing, or new flooring. Given that the Assessment Notice is mailed six months after the assessment, it quickly becomes outdated compared to actual market trends and we see bigger gaps or differences between assessed value and fair market value.  We saw this firsthand in 2022.  According to the Property Value Flyer that accompanied the 2023 Assessment the assessor wrote, “Due to the timing of assessments, last year’s value did not capture 2022’s peak market conditions.”  The real estate market peaked in May 2022 and then prices declined, but the assessment had been decided in Jan 2022 when home prices were still increasing.

So, if your assessed value doesn’t align with your expectations, there’s no need to panic. Assessments primarily serve tax purposes. Home buyers and sellers, however, focus more on market value, recognizing that the true value of a home is subjective. It ultimately boils down to the agreement between the buyer and seller. Your neighborhood real estate professional will be able to provide you with accurate market trends and comparable homes to accurately price your home and get it sold.

Boise Real Estate ProfessionalCurious about the market value of your home in today’s market?  I offer free, in-person consultations to get your home’s current market value and what you can expect during the process. Set up a time for a consultation here.  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 jennlouis@welcometoboiseandbeyond.com.

Boise real estate market trends – October 2023

Boise real estate market trends – October 2023

The year 2023 has unfolded as an unusual chapter in the real estate world, catching many off guard. Nevertheless, the market has demonstrated remarkable resilience, outperforming expectations despite the slowdown experienced in 2022.  Here are the Boise real estate market trends for October 2023.

The Facts Year-to-Date

 

Boise market trends
Nampa Market Trends

Ada County’s Surprising Turnaround

Within Ada County, encompassing cities like Boise, Meridian, Eagle, Star, and Kuna, the real estate landscape has witnessed an unexpected resurgence. Home prices have rebounded, now hovering at levels nearly identical to those of a year ago. This unforeseen stability in home values has left numerous individuals, including both buyers and sellers, as well as some real estate experts, pondering the direction of the market.

Shifting Inventory Dynamics

As of September 2023, the inventory of existing homes available for purchase stands at approximately 1,560, a significant decline from nearly 2,400 homes during the same period in the previous year. This sharp reduction in inventory is a key factor in maintaining home prices. The median price for single-family homes in Ada County currently sits at $535,000, marking a .9% decrease from 2022. In Canyon County, the median price is $416,000 down 2.6% from 2022.  However, it’s important to note that the year is not yet over, and market conditions could continue to evolve.

Here  are two interesting market stat sheets created by the Boise Regional Realtors for September 2023.

Here is a chart for Ada County and Canyon County’s market statistics compared to the same time last year:

Market-Report-September-2023-Ada-County

Market-Report-September-2023-Canyon-County

An Active Fall Season

This fall season has witnessed a surge in real estate activity, with an influx of out-of-state individuals considering relocation to Boise before the arrival of the holiday season and winter weather. Notably, despite mortgage rates hovering around 8%, the demand for homes has remained surprisingly robust. This could be attributed to homeowners across the nation having accumulated more equity in their homes than in the past, prompting them to cash out and make the move.

Clearing Up Misconceptions

Contrary to some misconceptions, homes priced correctly—within the value range of recently sold, comparable homes in their respective areas—are selling swiftly. In September in Ada Co., the average days on the market dwindled to 30, a notable reduction of about 13% from over 30 days in the previous year. In certain instances, bidding wars have erupted, resulting in homes selling above their asking prices. This may perplex new buyers who assume that offering below the asking price is the new norm.

Year-End Projections

As we approach the year’s end, the market is anticipated to remain relatively stable, with home prices holding firm. The recent uptick in mortgage interest rates may lead to a decrease in the number of homebuyers. Moreover, as the holiday season approaches, fewer homes are expected to be available on the market, which should help maintain a balanced supply and demand scenario. If more homes do surface for sale, this could present a favorable window of opportunity for buyers, with less competition in the market.

It’s imperative to talk to a real estate professional who understands the market you are buying and selling in to truly understand the best timing to sell and buy.  There are a lot of opinions out there on the Internet, or even trusted friends, colleagues, and family, but unless it’s coming from someone with the pulse on the market you are dealing in, you might be getting the wrong data and that could potentially cost you thousands.  Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley.

Buyer Opportunities

That said, opportunities do still exist for buyers. Homes that have lingered on the market for over 21 days and remain vacant may be more inclined to negotiate on price. Having a seasoned agent like Jennifer Louis, a real estate and relocation expert specializing in Boise and the Treasure Valley, is invaluable for understanding when and how to negotiate effectively in the current market.

With rent prices going up local buyers should seriously consider buying a home versus renting.  There are places in the US where it makes more sense to rent than to buy, but the Treasure Valley, unfortunately, has limited housing and has forced rent prices up.  For first-time home buyers Idaho has some great options to assist with down payment and closing costs don’t forget, even though the market is picking up, you can still negotiate with the seller to have them help with closing costs or even buying down the interest rate to get you a lower monthly payment. Also, it was just recently announced that those who qualify for FHA loans can save thousands over the course of their loan.  I’ve just helped several first-time home buyers get fantastic deals on their homes in the Valley and are paying close to if not less than what they were renting for.

Talk to an Expert

Whether you are buying or selling consult first with a professional that understands Boise real estate market trends and the best way to succeed.  Schedule a 30-minute no-obligation consultation with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.

Boise Home Builders and Your Construction Options

Boise Home Builders and Your Construction Options

Choosing the Right Builder and Community

Finding the perfect builder and community is your first crucial step in the exciting journey of constructing your dream home in the Treasure Valley. With over 100 active builders to choose from, this can seem like a daunting task, but it doesn’t have to be. Jennifer Louis, a highly recommended realtor with expertise in relocation, is here to help.  Here is your guide of Boise Home Builders and your construction options to get started.

Exploring Home Builder Types

When embarking on the journey of building a new home, one of the fundamental decisions you’ll need to make is selecting the right type of home builder to suit your preferences and needs. Here, we delve into the three primary categories of home builders, each offering a distinct approach to the art of home construction:

1. Production Builders

Production builders are renowned for their efficiency and streamlined processes. These companies specialize in constructing a range of homes based on the same set of floorplans. This repetition allows them to create consistent, high-quality homes. However, there’s a trade-off. While production builders often provide a multitude of options and upgrades, these typically come at a premium. In the pursuit of efficiency, the client experience may sometimes be less personalized compared to other builder types.  There are various price ranges and community types with production builders in Boise and the surrounding Treasure Valley.  Depending on the production builder you choose you may have less participation in customizing the home.  CBH Homes is one of the largest production builders in the Valley and they offer minimal options to customize.  They became a spec home builder several years ago during the Boise Boom and removed most options that a homeowner can choose in new construction.  They still offer options for landscape and fencing in some of their communities and you can often upgrade to include their window coverings and appliances or negotiate to have these included in the contract price.

2. Semi-Custom Builders

Semi-custom builders strike a balance between the convenience of pre-designed floorplans and the flexibility to make modifications. Clients can choose from a selection of floorplans but also have the opportunity to personalize finishes and amenities to better suit their tastes and requirements. What sets semi-custom builders apart is their increased level of client interaction. They tend to be more hands-on throughout the construction process, often having superintendents on-site to oversee the project, ensuring that your vision is brought to life.  Brighton Homes is a good example of a semi-custom home that is popular with homeowners in the Treasure Valley.  They have been around for nearly 30 years and have built-in many popular subdivisions and parts of the Treasure Valley.

3. Custom Home Builders

For those seeking a truly unique and personalized home, custom home builders are the answer. They are dedicated to crafting one-of-a-kind homes tailored to the individual preferences and requirements of each client. Unlike other builder types, the price and size of the home do not determine whether a builder is considered custom. Many builders claim to offer custom services, but only a select few can genuinely be classified as custom home builders. In this category, clients typically purchase a lot, collaborate closely in designing their dream home, and then engage a builder to bring their vision to life. While custom home construction offers the highest level of personalization, it’s important to note that it’s often the most expensive route to homeownership.  There are many custom builders to choose from, for example, Shadow Mountain Homes which has been building luxury homes in the Boise, Idaho area for nearly 30 years.

In summary, choosing the right type of home builder is a pivotal decision in your home-building journey. Your selection will significantly influence the design, cost, and personalization of your dream home, so consider your priorities and budget carefully before making a choice.

Why Jennifer Louis is Your Key to Success

Jennifer has an extensive track record of working with numerous builders in the area. Her firsthand experiences and client feedback from those who’ve had homes built or purchased under construction are invaluable. She’ll expertly match you with the right builder and community, ensuring you start on the right path.

If you are coming from out of state you will start with in-depth video consultations to get a feel for the area and where you may want to begin.  Based on your criteria and the initial consultation you will be sent a list of builders and homes under construction to start viewing floorplans and communities online.  She will then start registering you as her client with the builders and getting the communication started for your first tour through the community and homes.  If visiting in person is not an option Jennifer will work on your behalf providing you with detailed information to make the right home selection from afar.  This support covers everything from touring homes that align with your preferred floorplans and model homes to reviewing all contracts and composing addendums. She’s skilled at negotiating terms, attending design appointments, and overseeing inspections, ensuring the builder delivers as per the contract.

Jennifer Louis is your trusted partner in making your dream home in the Treasure Valley a reality.  Contact her today to set up a free consultation to get you matched up with the right builder in the right community or area in the Boise area.

Boise Real Estate ProfessionalIf you are considering relocating to Boise and the surrounding area and buying 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 jennlouis@welcometoboiseandbeyond.com.

Differences Between Real Estate Teams and Independent Agents

Differences Between Real Estate Teams and Independent Agents

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

Independent/Single Agent: Independent agents offer a truly personalized experience. They focus exclusively on your needs and goals, tailoring their approach to match your unique preferences. With an independent agent, you’re not just a client; you’re a valued partner receiving individualized attention that ensures your real estate journey aligns perfectly with your vision.

Real Estate Team: Real estate teams, while diverse in skills, may distribute their attention across multiple clients. This can lead to a more generalized approach, making it challenging to receive the same level of personalization and tailored guidance that an independent agent provides.

In-Depth Knowledge and Dedication

Independent/Single Agent: Independent agents are known for their depth of knowledge and unwavering dedication. Their years of experience have honed their skills, making them true experts in their field. With an independent agent, you can trust that your transaction is guided by an individual who is fully committed to achieving the best results for you.

Real Estate Team: Real estate teams offer a collective expertise, but this can sometimes result in a more divided dedication. Team members may split their focus across various aspects of the transaction, potentially diluting the level of specialized knowledge and commitment an independent agent can provide.

Direct and Open Communication

Independent/Single Agent: Independent agents prioritize direct, transparent, and open communication. They serve as your primary point of contact, ensuring that you receive prompt responses and clear updates at every stage of the process. This straightforward communication style fosters a stronger client-agent relationship.

Real Estate Team: Real estate teams may involve multiple layers of communication, potentially leading to delays and misunderstandings. Navigating a team’s hierarchy to get answers or updates can sometimes complicate the client-agent interaction and result in less direct communication.

Personal Accountability

Independent/Single Agent: Independent agents take personal accountability for your satisfaction and success. They view your objectives as their own, working tirelessly to achieve the best possible outcome. With an independent agent, you can rest assured that your agent is fully responsible for ensuring your interests are protected and advanced.

Real Estate Team: Accountability within real estate teams can be distributed among team members, making it challenging to pinpoint individual responsibility. While team collaboration has its advantages, it can also lead to less clear-cut accountability compared to the personalized commitment of an independent agent.

Streamlined Decision-Making

Independent/Single Agent: Independent agents empower you with swift decision-making. You won’t encounter delays or complications due to multiple layers of team coordination. Your agent is equipped to make decisions promptly, ensuring a smooth and efficient transaction process.

Real Estate Team: Real estate teams may require additional steps for decision-making, involving multiple team members and approvals. This can potentially slow down the process, leading to longer wait times and a less streamlined experience compared to working with an independent agent.

Local Connections and Relationships

Independent/Single Agent:  Don’t be misled by the title “Independent or Single Agent” Most agents with experience are working with a network of individuals and companies that make each one of their client’s transactions seamless.  For example, they often have well-established, long-lasting relationships with local service providers, from lenders to inspectors and contractors. These connections can benefit you, as your agent can connect you with trusted professionals who can expedite the transaction and ensure its success.  Your Independent Agent may also have a licensed or unlicensed real estate Assistant, or a Transaction Coordinator to assist with ensuring the legal documents are executed on time and correctly.  Also, it’s imperative to mention that every Agent works under a Broker (unless they are a Broker themselves) and has direct access to the Designated Broker’s input on important, key processes and issues that may come up in a transaction.

Real Estate Team: Teams also have a large network of resources to provide to their clients and may have more choices for their clients to choose from when it comes to subcontractors, but most real estate teams are loyal to the same lender, title company, and inspector due to the number of transactions they handle and in order to streamline their process.

In summary, independent agents shine in their ability to provide a highly personalized, knowledgeable, and accountable real estate experience. While real estate teams offer a collective approach, working with an independent agent often leads to a more tailored, efficient, and client-centered journey, ensuring that your specific needs and goals are met with precision and dedication.  The above-mentioned are just some of the benefits of working with an Independent Real Estate Agent vs a team. Choosing the right agent ultimately comes down to your priorities and the kind of experience you seek on your real estate journey.

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.

 

Boise Real Estate ProfessionalIf 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 jennlouis@welcometoboiseandbeyond.com.

Reality of Renting vs Buying in Boise in 2023

Reality of Renting vs Buying in Boise in 2023

Is It Better to Rent or Buy in 2023?

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 2023 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 2023.

Boise’s Rental Market

Renting vs Buying BoiseThere are a number of 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.  There are also those that 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 actually 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.  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 located 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 growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends according to Realtor.com’s annual housing forecast for 2023.

Buying a Home in Boise

Buying vs Renting BoiseFor 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 are able to 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

Buy vs Rent in BoiseThe Bottom-line is, it really 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.

There are challenges that 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 that 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.

Let’s start the conversation today and help you find discover if your reality is renting or buying a home in Boise in 2023 or soon after.

 

Boise Real Estate ProfessionalIf 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 jennlouis@welcometoboiseandbeyond.com.