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What the NAR Settlement Means For Idaho

What the NAR Settlement Means For Idaho

by | Mar 19, 2024 | Idaho Real Estate

The National Association of Realtors, NAR is making headlines with their unprecedented settlement that if approved by the courts could transform how broker commissions are managed. This move directly impacts over a million NAR members, including agents, brokerages, and MLS services, setting a new precedent for transparency and negotiation in commission structures.  This article will detail what the NAR Settlement means for Idaho and those buying and selling homes in the state.

Key Changes and Their Impact

Transparency in Commissions

The settlement mandates a shift in how broker commissions are disclosed. Specifically, the practice of advertising cooperative compensation on MLS is changing. Sellers traditionally agreed to a broker fee, shared with the buyer’s agent through MLS listings. Now, such compensation must be negotiated outside of MLS, requiring buyers to understand their agent’s fees upfront through a Buyer Representation Agreement.

Negotiation of Fees:

Sellers retain the flexibility to negotiate commission fees and may opt to offer a cooperative fee to the buyer’s agent. This isn’t a novel concept; however, clarity around fee negotiation has been lacking in certain states, leading to misconceptions about commission rates. The settlement aims to rectify this by ensuring all parties are informed and agreeable to the terms from the outset.  The NAR does not set commissions or require a set fee. Fees are negotiated via a seller representation agreement and buyer representation agreement before a transaction begins for the majority of real estate transactions in Idaho.

The Idaho Example

Idaho has been ahead of the curve, with clear stipulations regarding brokerage and cooperative fees. This practice ensures buyers and sellers are well-informed from the beginning, reducing surprises and fostering a fair, transparent real estate environment.

Market Misconceptions

Despite rumors that the settlement could lower home prices or eliminate buyer agent fees, it’s essential to understand that the value provided by real estate professionals remains unchanged. Agents play a crucial role in guiding clients through the complexities of buying or selling a home, and their services come at a cost. This settlement doesn’t abolish fees but emphasizes transparency and choice, ensuring clients know what they’re paying for and why.

Real Estate Professionals as Small Businesses

It’s vital to remember that agents, operating under brokerages, run their businesses. This means they have the autonomy to set their service fees, which are negotiable and subject to the client’s choice. This autonomy respects the professional judgment of real estate experts and the consumer’s right to choose.

In Conclusion and My Personal Opinion

In writing this article, I’ve delved into the legal documents and discussions with my team at Silvercreek Realty Group to clarify misunderstandings and share insights. The real estate sector is undoubtedly at a crossroads, needing evolution. While I have reservations about removing cooperative fee advertisements from MLS, my commitment to transparency has never wavered. That’s precisely why I chose to work with Silvercreek Realty Group and take pride in operating openly in Idaho’s real estate scene.

The structure of real estate organizations like NAR, local associations, and MLS does seem a bit dated. Their focus on increasing membership for revenue, making entry into the profession too easy, raises questions about maintaining high standards. With over 8,000 agents in the Treasure Valley alone as of 2023, the bar for entry is low, involving just a course, exams, and a background check, with no rigorous vetting process. This ease of entry might contribute to the lack of transparency that led to legal challenges against NAR.

Despite intense competition, which theoretically should lower fees, many agents are selected by sellers or buyers based on personal connections rather than expertise, creating disparities. Given that the average real estate agent in Idaho makes around $40,000 a year, not accounting for expenses, the competition paradoxically keeps fees high for agents to remain viable. Elevating the requirements to become a real estate agent, such as implementing a college degree prerequisite or mandating years of experience in relevant fields, could enhance professionalism and ensure that those entering the industry are truly qualified.

With an industry filled with qualified professionals, we would see a more positive light shining on real estate agents and what they do in a real estate transaction.  In the meantime, I encourage those looking to buy or sell a house in Idaho to take your time when choosing your real estate professional.  I wrote an article to help guide buyers and sellers in making this decision because it is important.  A good agent should have experience, qualifications, and a proven track record with real client reviews and sales,  not just be someone you know or are related to.

If you have more questions about what the NAR Settlement means for Idaho or how it could affect you if you are considering selling or buying a home please reach out.  I am passionate about this field and would love to chat.

Boise Real Estate ProfessionalFor expert guidance on moving to Boise, or selling a home in the area contact Jennifer Louis, a Boise real estate and relocation expert. 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 [email protected].

Boise Real Estate Market Facts and Trends – March 2024

Boise Real Estate Market Facts and Trends – March 2024

by | Mar 15, 2024 | Market Trends

The median price for Ada County in February was hovering just over $520,000 an increase from last year In Canyon County, the median price increased by nearly 5% with a median price of $410K. Why the sudden increase this early in the season?  Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – March 2023

Take a Look at the Boise Area Real Estate Market Facts and Trends for March 2024

 

Ada & Canyon Counties Home Prices Trend Upwards

Ada and Canyon counties, two pivotal areas in Southern Idaho, have experienced a notable uptick in home values from January to February 2024, primarily due to a scarce housing inventory. As of March 1st, Ada County reported 512 single-family homes on the market, marking a decrease of 95 homes compared to the previous year. This scarcity, coupled with a dip in mortgage interest rates at the year’s start, has intensified buyer competition, following the classic supply and demand principle.

Shifting Inventory Dynamics

The interest rates are playing a role in the inventory we are seeing entering the market and will have an effect on overall home prices, but there have been so many buyers on the sidelines in anticipation of lower rates and are now starting to emerge back into the market.  Other states that typically provide buyers to the Treasure Valley market are starting to soften and once these buyers can sell their homes in their current place of residence we can expect the buyer pool to surge again in the Boise area.  More buyers on the market, even with an uptick of homes coming for sale will most likely tip the market back into a seller’s market as demand surpasses supply.  We can expect it will be less dramatic than in the pre-COVID and COVID years, but buyers should prepare to start seeing homes go pending much sooner and multiple offers may become the norm again.

A Few Key Facts

The beginning of the year traditionally sees a slowdown in home sales, attributed to post-holiday work resumption and inclement weather, affecting buyer mobility. Despite this seasonal trend, home prices have risen. However, sales volume has dipped. The average days on market for homes in Ada and Canyon counties were 27 and 30 days, respectively, in early 2024. Notably, homes under $500,000 in Ada County are selling swiftly, often at full asking price, with bidding wars in some cases. Conversely, homes priced over $600K are taking longer to sell, with those at the $1M mark requiring 3-6 months to find buyers.

Mortgage interest rates continue to significantly influence the housing market, making homes more accessible and thereby increasing buyer activity. A softening market in other states is anticipated to further boost the buyer pool in Boise as sellers elsewhere can move more freely.

Current buyer trends highlight a demand for homes conducive to remote work, sustainability, smart technology, wellness amenities, and co-living spaces. These preferences are important for sellers to consider when updating or staging their homes.

2024 is gearing up to be another year of a shifting market.  Rates have come down from last year, bringing more buyers and are expected to continue decline, but not to the low rates we saw a few years ago. They will slowly trickle down, and this will bring on more and more buyers as homes come within their affordability range.  With more buyers we can expect home prices to go up in both Ada and Canyon County, not dramatically, but a steady incline.  The fact is, Idaho still remains a very desirable place to live for many relocating from other states.

Buyer Opportunities

I feel like a broken record, but there are still great opportunities for buyers out there right now.  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.

Despite the competitive market, there are still advantageous opportunities for buyers, particularly in securing deals on homes that can potentially lower their monthly expenses compared to renting. Idaho offers various programs to assist first-time buyers with down payments and closing costs.

For personalized advice on navigating the Boise real estate market, reaching out to a seasoned agent like Jennifer Louis can provide invaluable insights and negotiation strategies.

Talk to an Expert

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 with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or [email protected].

Your Property’s Assessed Value versus Fair Market Value

Your Property’s Assessed Value versus Fair Market Value

by | Dec 12, 2023 | Market Trends

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 [email protected].

Boise Home Builders and Your Construction Options

Boise Home Builders and Your Construction Options

by | Oct 11, 2023 | Idaho Real Estate

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 [email protected].

Differences Between Real Estate Teams and Independent Agents

Differences Between Real Estate Teams and Independent Agents

by | Sep 6, 2023 | Market Trends

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 [email protected].