Boise Home Inspections

Most Boise home sales include a home inspection.

In the Boise real estate market, the buyers typically pay for a home inspection that’s done by an inspector of their choosing.

The cost for a home inspection is often $300, or more, depending upon the size of the home and the scope of the inspection.

After the inspection, the inspector will prepare a report with his findings and deliver it to the buyers and their agent.

If there are no significant defects, the transaction will proceed normally.

If the inspection reveals items needing repair, the buyers will have the option of asking the sellers (in writing) to repair those items.

The sellers can agree to complete the requested repairs, in which case the transaction will proceed normally.

If the buyers and sellers can’t agree on repair issues, the buyers can cancel the transaction and receive a refund of their earnest money.

Some sellers opt to have their home “pre-inspected” by a home inspector of their own choosing prior to listing their home.

A pre-inspection report, combined with paid repair receipts, can be used as an effective marketing tool.

When sellers have their home pre-inspected, the buyers still have the option of having the home inspected by their own home inspector.

It’s important to understand that home inspectors aren’t licensed in Idaho.

That means that each home inspector can approach inspections differently.

Note: This is a simple explanation of a complex issue.  For additional insights on home inspection issues, please call me at (208)938-5533 or e-mail me.

 

Boise Homes: Home Security

I have an upcoming listing that reminds me of the importance of securing a home by changing the garage keypad code.

There are a lot of Boise homes that have had the same garage keypad code since they were brand-new!

This particular home is owned by out-of-state sellers and has been rented twice since they moved out of area.

The last tenant moved out last week and the property manager doesn’t know the garage keypad code.

That means the last tenant, and perhaps the previous tenant, could still access the house.

There’s also the possibility that various friends/neighbors of the tenants could have the garage code too.

I wouldn’t be surprised if the code is still the same one my seller used years ago!

That probably wouldn’t be a problem in this situation, but imagine a scenario where a tenant leaves on bad terms with the owner (unpaid rent, cost of repairs taken out of the tenant’s deposit, etc.)

So, I will be going to the house today to re-program the garage code keypad.

Re-programming a garage keypad code is relatively simple with most garage door openers.

Most of them have a “learn” button on the back of the garage door opener.

You simply press that button until the light on the unit blinks, then you have 30 seconds to type in a new code on the keypad and press “enter”.

Be sure to test the new code after you’ve changed it to make sure it works.

Tip of the Day:

When you type in the new code, try to be more original than using “0000” or “1234”.

Those codes exist for most of the garage keypads in the Boise real estate market. 

 

Why Boise Real Estate Agents Are Like Pizza

Here are 11 reasons why Boise real estate agents are like pizza:

1.   You can get one just about anywhere

2.   Some have lots of dough

3.   Some have little dough

4.   Some have thin crusts

5.   Some have thick crusts

6.   Some are spicy

7.   Some are bland

8.   Some are square

9.   Some are round

10. Some are difficult to digest

11. Some give you gas

 

The Truth About Million Dollar Producers

Ever noticed those Realtors® driving around with “Million Dollar Producer” license frames on their cars?

Well, here’s the truth about those million dollar producers.

Selling $1 million of real estate isn’t all it’s cracked up to be.

Here’s why:

First, you multiply that $1 million of sales volume by the commission rate for the agent.

Assuming two agents in a transaction (one representing the seller; the other representing the buyer) who equally share a 6% commission, each agent receives a 3% commission.

3% X $1 million sales volume= $30,000 gross commission.

Then, the agent usually “splits” that gross commission with their broker, so we need to multiply that $30,000 by the percentage of commission the agent keeps.

Let’s assume that the agent is on a 65% “split”, which leaves $19,500 for the agent after giving up $10,500 (35%) for their broker.

This is actually a high commission split because many new agents start out with a 50/50 split with their brokers.

Then, the agent gets to pay their own expenses, including MLS dues, Realtor® dues, E&O insurance, health insurance, car payments, car insurance, gas, car maintenance, advertising, signs, telephone, website hosting, etc.

It’s pretty common for business expenses to run around 40% of commission income, which leaves an estimated net income of less than $12,000.

That’s equal to the 2014 poverty level for a one-person household, according to HHS guidelines.

As you can see, being a million-dollar producer is more of an embarrassment than something to brag about.

If an agent is only a million dollar producer, it might be a good idea to keep it a secret.