Boise Real Estate Blog

You’re probably already aware that we have very few Boise Area home listings

Our listing inventory shortage isn’t unique to the Boise real estate market; it’s nationwide.

According to a recent Bloomberg article, Baby Boomers are to blame for the national shortage of listing inventory.

Why?

Because those stubborn Boomers are refusing to sell their homes as they approach their golden years.

U.S. Homeowners, age 55 and older, own 53% of all owner-occupied homes.

That’s the biggest ownership share in more than 100 years, according to one well-known real estate website.

That number stood at 43% ten years ago.

In stark contrast, homeowners between the ages of 18 to 34 own only 11% of all U.S. owner-occupied homes.

Entrenched Boomers are remaining in their homes for many reasons, including preferential property tax treatment, fewer new homes being built, and rising home prices.

California’s Proposition 13 is a good example of preferential property tax treatment with provisions tying property taxes to the property’s original value.

Some Baby Boomers would sell their present home if they could find something newer, smaller, and with less maintenance.

But, those homes are rare in the Boise real estate market and they sell quickly.

Rising home prices also become a consideration when Baby Boomers discover that the equity in their present home won’t cover the cost of one of those newer, smaller homes with more amenities.

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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 45 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.

 

It’s no secret that Meridian Idaho homes are in short supply vs. strong demand these days.

That listing inventory imbalance is leading to sight-unseen offers in some instances.

I recently ran across an article claiming that one-third of all offers to buy homes are made sight-unseen.

The article was based upon a recent survey from a Seattle-based real estate company that doesn’t serve the Boise real estate market.

Thus, the following may have absolutely nothing to do with the Meridian Idaho real estate market.

But, I still found the article interesting.

The article claims that 33% of the company’s buyers were comfortable making an offer to purchase a home they had never physically seen.

Personally, I find it very hard to believe that one-third of Meridian Idaho home buyers are making offers without having viewed the homes first.

According to the article, Millennials were most likely to make a sight-unseen offer because they tend to use more technology to research properties before making an offer.

According to the article, 41% of Millennials had made at least one offer without having physically viewed the subject property.

In stark contrast, only 30% of Gen-Xers, and only 12% of Baby Boomers, made sight-unseen offers.

There are obvious risks involved for both buyers and sellers with sight-unseen offers.

No matter how much online research a buyer does, a computer can’t detect the fragrant odor of cat pee in the carpets and walls.

And, the computer won’t know about the drag strip that’s planned to be built on the undeveloped property behind the house.

There’s also risk for sellers who accept those sight-unseen offers.

There is no language in our RE-21 Purchase and Sale Agreement that discloses whether, or not, the buyer has physically viewed the property prior to making an offer.

But, there is language in our RE-10 Inspection Contingency Notice that allows a buyer to withdraw from the transaction and get their earnest money back if they don’t like inspection results.

That can allow a buyer to tie up a property with essentially refundable earnest money, look at the property during the inspection period, and walk away from the deal if they don’t like what they see.

My advice?

If you’re a buyer, view the property before making an offer.

If you’re a seller, determine if the buyer has seen the property before accepting an offer.

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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 45 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.