Boise Real Estate Blog

I’ve often said that I earn my commission when a transaction goes into escrow.

Here are 36 common buyer challenges that I often must overcome to get a transaction closed.

Believe it or not, I’ve dealt with almost all of these items over my 44-year real estate career!

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1. Buyer misrepresents/omits information on the loan application.
2. Buyer’s credit report lists late payments and/or liens.
3. Buyer “forgets” to disclose all debts on the loan application.
4. One or both buyers lose their job during escrow.
5. The buyer’s income gets verified lower than stated on the loan application.
6. The buyer’s closing costs are to be covered with a gift from parents, but the parents fail to provide a gift letter.
7. Buyer is a salesperson with 100% commission/bonus income.
8. The lender refuses to consider the buyer’s overtime/bonus income.
9. The buyer buys and finances a new $60,000 Dodge Ram pickup (needed for moving!) before closing.
10. The buyer files for divorce before closing.
11. The buyer’s new job offer gets withdrawn or declined.
12. The buyers decide that moving is a big hassle and change their mind.
13. Aunt Tilly changes her mind about gifting the down payment to the buyers.
14. Buyer Fred knows he divorced Carol, but can’t find the divorce decree.
15. Buyers Ken and Barbi “think” they finished their Chapter 7, but lost the discharge paperwork.
16. Buyers Suzi and Max “think” they’ve filed tax returns for the past two years, but can’t find copies of them.
17. Buyer “forgot” to file tax returns for the past five years.
18. Buyer filed extensions for last year’s taxes and hasn’t paid taxes due.
19. Bank statements? What bank statements? We ain’t got no checking account!
20. Buyer’s landlord doesn’t “do e-mail” and is unable to verify buyer’s timely rent payments.
21. The Fed raises interest rates and the already-marginal buyer can’t afford another $20/month on their payment.
22. Buyer’s lender suddenly switches the buyer to another loan program with higher rates, points, and garbage fees, causing the buyer to no longer qualify for financing.
23. Buyer forgets to mention to the lender that he pays child support for his three children from a previous marriage.
24. Buyer thinks filing for Chapter 7 last month isn’t a problem.
25. Buyer has three part-time jobs with income that’s mostly commission and/or bonuses.
26. Buyer “forgets” to mention to lender and/or his agent that he lost his job 3 days before closing.
27. Buyers deliver handwritten pay stubs to lender with handwriting that’s curiously similar to their own handwriting.
28. Buyer changes jobs one week before closing and the new job has a 90-day probationary period.
29. Buyer dies in a car accident on the 42^nd day of a 45-day escrow.
30. The IRS files a tax lien against the buyer the day before closing.
31. The buyers think they can buy a 3,500 sq. ft. custom home on 5 acres in Eagle, Idaho for $250,000.
32. Buyer withdraws from the purchase because the listing agent stated four bedrooms and there are only three bedrooms and an office with no closet.
33. The buyer says they are a veteran, but lender is unable to obtain a copy of the DD214.
34. Buyer “invests” the down payment during a vacation to Las Vegas and lacks the funds to close escrow.
35. Buyer can’t document why extra money keeps showing up in checking accounts during escrow.
36. Buyer thinks it’s okay to write a personal check at closing.

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Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

Boise Idaho Over-55 homes are attractive for many homeowners when the kids are gone and other activities beckon.

Over-55 developments usually offer smaller homes on smaller lots and often provide full landscaping care.

We have very few true Over-55 communities in our real estate market, but the ones we have are very desirable.

Perhaps more importantly, the Boise Idaho real estate market also offers homes in several developments that do not require occupants to be age 55 or older.

I can help you find high-amenity homes on smaller lots with full landscaping maintenance included in the HOA dues.

For more information on these listings, please give me a call at (208)938-5533 or e-mail me.

 _______________________________________________________

Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

If you’re trying to buy a Meridian Idaho home, you already know we have a hot market with low listing inventory.

Sharp, properly priced homes sell immediately; sometimes within hours, with multiple offers.

If you live in another state, it can be difficult and expensive to visit the Meridian area and view homes before they sell.

In most instances, that sharp new listing you’ve spotted online will sell before you can get here to look at it.

It’s also easy to spend $1,000 (or more) on airfare, hotel, and a rental car for a house-hunting trip.

Here are a few thoughts on how to deal with this situation.

Pre-approved financing is a must!

If you’ll be financing your purchase, it’s vitally important to get your financing approved upfront!

A seller will not take your offer seriously if you don’t provide proof of approved financing with your offer.

Pre-approval will also provide you with full information about the costs of your financing.

Research Meridian Idaho home listings online

Define your housing criteria in detail, including a list of “must haves” and a “wish list” of desired optional features.

Then, use the MLS Search function (above) on this blog to search for listings that match your criteria.

I don’t require registration to view listings on this blog, and I will NOT pursue you!

If you want details on a specific listing, just e-mail me or call me at (208)938-5533 for more information.

Hire a buyer’s agent

Commit to one agent, then let them find suitable properties to consider.

Sign a Buyer Representation Agreement (upfront) to ensure that your agent will devote serious attention to you.

Your buyer’s agent will be able to search MLS and see information that isn’t visible to the public.

Work, in partnership, with your buyer’s agent to identify and research properties of interest.

Earnest Money

Sellers are skeptical of offers without earnest money, so bring your checkbook when you come to look at homes.

If you don’t use checks, be prepared to get a cashier’s check, wire your earnest money, or overnight it.

Promising to provide earnest money two days after your offer is accepted will not impress a seller!

Offering substantial earnest money may help to get your offer accepted; especially in a multiple-offer situation.

While earnest money is somewhat symbolic, sellers are often impressed by substantial earnest money.

Your earnest money will be applied to your “cash to close” funds, so why not impress the seller with more earnest money?

Make an offer contingent upon your inspection/approval

Some (few?) sellers will accept an offer contingent upon your personal inspection.

In those situations, you should make your contingency period as short as possible to increase your chances of acceptance.

Have friends or relatives look at the property

If you aren’t here when the right property pops up, have a local friend or relative look at the property for you.

Then, make an offer based upon their input.

Trust your agent and buy it sight-unseen

Another option is to make an offer based upon your agent’s advice and recommendations.

This requires tremendous trust and confidence in your agent and is often uncomfortable for both buyer and agent.

I’ve helped a number of out-of-area buyers purchase homes sight-unseen, but I’m never comfortable with that scenario.

I do NOT recommend this option!

Buy a “to-be-built” or “under-construction’ new home

Buying a new home that is yet to be built, or under construction, is often a good option in a hot market.

Most of our builders are quoting a six-month delivery time for a new home that has yet to be started.

Homes that are under construction can provide faster delivery times.

One advantage of buying a new home is that you may be able to make selections and get exactly what you want.

And, buying a home that is under construction may give you time to sell your present home, if needed.

You may also avoid multiple-offer bidding wars by buying a home that is “to-be-built” or “under construction”.

Final thoughts . . .

A desirable property will attract strong, immediate interest from other buyers.

Savvy buyers have learned, from experience, that they must act quickly to achieve an accepted offer.

Be prepared to offer more than the asking price if you want to be competitive.

Hot markets are challenging, but they’re a fact of life in the Meridian real estate market these days.

If you have questions, please give me a call at (208)938-5533 or e-mail me!

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Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

Meridian Idaho ~ Just Listed!

Click On The Photo To View Virtual Tour

If you’re considering buying a Meridian Idaho home, here are a few questions to ask before hiring your buyer’s agent.

How long have you been in real estate?

The local real estate schools are churning out new agents at a record rate.

We’re adding 75-100 new agents to our MLS each month.

We have around 5,500 agents in our market now (vs. 1,456 homes for sale as of this morning).

That means we have roughly four times as many agents as we have homes for sale in all of Ada County!

Look for an agent with at least 5 years of full-time real estate experience and a proven track record of results.

Are you a real estate agent or broker?

A real estate salesperson’s license is the most basic level of real estate licensure in Idaho.

Real estate salespersons are licensed after basic real estate education and passing the Idaho real estate salespersons’ exam.

In contrast, the Idaho broker’s license requires extensive, additional experience and education.

A broker’s license is required in order to hire real estate agents who hold a salesperson’s license.

You should look for an experienced real estate broker.

Are you full-time or part-time?

More than half of the real estate agents in the Meridian Idaho real estate market are part-timers.

A part-timer will not be able to take your call while they’re “at work” (on their real job), and they will not be able to respond quickly because real estate isn’t their primary occupation.

Most part-timers close a couple of transactions a year.

You want a dedicated, full-time professional to handle one of the largest financial transactions of your life.

Real estate is not a profession that can be done well on a part-time basis.

How many homes have you sold?

Experience matters ~ big time!

I’ve often thought that it takes around 100 transactions for a new agent to become competent.

Do you really want to work with an agent who’s undergoing on-the-job-training at your expense?

Ask your buyer’s agent how many homes they’ve sold since getting licensed.

How many Meridian Idaho homes have you sold in the past 12 months?

When it comes to experience, seek a buyer’s agent who has “recent experience”.

Look for an agent who’s active, engaged, and knowledgeable about current market conditions and property values.

What is your average sales price?

Look for a buyer’s agent who’s knowledgeable and comfortable working in a price range that’s similar to the value of the home you want to buy.

If you’re looking for a home in the $400,000 price range, it’s probably a mistake to work with an agent who has never sold a home for more than $150,000.

What is your ratio of representing buyers vs. sellers?

Some agents specialize in working with buyers; others specialize in working with sellers.

It’s probably not a good idea to work with an agent who specializes in working with sellers.

You should hire a buyer’s agent who has worked with buyers in the past.

Will you provide a weekly update when we’re in escrow?

You should expect to hear from your buyer’s agent at least every week during your escrow period.

Will you provide references that I can contact?

An experienced listing agent should willingly provide you with a list of references you can contact.

Call those references and ask each of them the same questions so you can correlate their answers.

Do you have a team? (If so, please describe)

Teams are, in many instances, unnecessary and can even obstruct clear, direct communication with all parties to your transaction.

Agents form teams for a variety of reasons, including a need to become better organized, seeking to “brand” themselves (which is generally ineffective), and a desire to profit from junior agents’ commissions.

Many agents with teams do not close enough sales to justify having a team.

Do you have an assistant?

Agents hire assistants for many of the same reasons they form a team, including the desire to establish their own “brand”,  embellishing their importance/largesse, avoiding answering their phone, and attempting to become better organized.

An assistant adds another layer of communication between the parties to the transaction and can unnecessarily complicate clear communication.

Most agents don’t need an assistant.; they simply need to get better organized!

Will you personally work with me, or hand me off to a team member?

Agents with teams often hand off new clients to junior team members because those team members typically give up 50% of their commission to their team leader in return for being given new “leads” (clients like you).

The result?

You get to work with an inexperienced junior agent!

Do you answer your own phone?

Some agents (most?) simply do not answer their own phone.

It’s common practice for many agents to let their calls go to voicemail, then return calls “when they feel like it”.

Some agents have an “assistant” answer their phone and screen their calls.

If that assistant is unlicensed, they cannot legally answer most real estate questions.

That can be frustrating, or even obstruct a transaction, when direct communication is needed.

Very few agents are too busy to answer their phone when it rings.

If your agent doesn’t answer their own phone, look for one who does.

How long will it take for you to respond to my calls, texts, and e-mails?

If you manage to find a buyer’s agent who answers their own phone within a few rings, consider yourself lucky.

You’ll probably find that you must leave a message with most agents when you call them.

Ask your agent how long it takes them to respond to a call, text, or e-mail.

It’s reasonable for an agent to not take calls while working with another client, but all calls should be returned the same day in most instances.

You can easily test this by calling potential buyer agents and leaving a voicemail.

Then, you can see how long it takes them to respond.

If it’s more than an hour or two, look for an agent who understands the importance of responsive service.

Are you available to show me homes on weekends?

Most buyers like to look at homes on weekends.

If you’re one of those buyers, ask your buyer’s agent if they are available to work with you on weekends.

Some agents choose to not work on Sundays.

You need to know if your agent will be available when you want to view homes and/or present an offer.

Are you available to show me homes during evenings?

Similar to weekends, some buyers like to view homes during evening hours.

That often occurs with buyers who have work schedules that conflict with daytime and/or weekend availability.

Again, you need to know if your agent will be able to show you homes on your schedule.

Will you preview homes that I find on the internet?

You’re probably in the 95% of buyers who look for a home on the internet.

The internet is a wonderful thing, but many homes (say it isn’t so!) look amazingly better on your computer than they do in person.

Previewing will help your agent identify the homes that best match your criteria and avoid wasting your valuable time.

Most agents don’t preview listings because they view it as a waste of their time.

I disagree.

I preview homes because I don’t want to look like an idiot showing homes I haven’t even seen!

Look for an agent who’s willing to preview listings!

Are we related?

While this isn’t a question you would ask directly, think carefully about working with a friend or relative.

Friends and relatives will often tell you what you want to hear; not what you need to know.

I know you’d like to help Susie (cousin Bob’s third niece) get started in real estate, but you really should find an experienced, skilled agent who can successfully answer the questions above.

In conclusion . . .

It’s vitally important that you hire a buyer’s agent to represent you.

If you don’t, you won’t have representation.

Lacking representation, you could buy a home from a listing agent who represents the seller, which is obviously not a great idea.

You have an absolute right to good service from your buyer’s agent.

Plan on entering into a Buyer Representation Agreement with your buyer’s agent and hold them accountable for the service you need and deserve.

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Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.