Re/Max West agent Phil Hoover over at Boise Real Estate Blog has noticed something interesting about the Treasure Valley real estate listings. Over half the homes for sale in Ada County and in Nampa are vacant.
It’s particularly bad in Meridian, where 800 out of 1,300 listings are vacant.
Hoover looked at the data at the request of a lender who is investigating loan fraud in the Boise area. He was surprised by the data, and found himself asking a lot of questions:
I wonder how many of those homes were bought by speculators/flippers?
I wonder how many of those buyers told their lender they were going to be owner-occupants?
I wonder what happens when a lender discovers that a speculator/flipper owns several properties, lives somewhere else, and represented that he was going to occupy all of them?
I wonder how easy it will be for investigators to discover that the same Realtor represented that buyer in a series of purchases and had knowledge of the details?
I wonder what will happen to the Realtor who represented that buyer when the loan fraud is uncovered?
I wonder what will happen when it is discovered that the same lender and appraiser were involved in those transactions?
9 Comments
Great questions. Now go answer them and write about it!
Comment By John Foster Wednesday, December 5, 2007 @ 10:30 AM
This is an amazing stat. Does Roger Madsen know this? He could turn all these into little community call centers.
Comment By Hector Wednesday, December 5, 2007 @ 12:49 PM
John:
I like your comment. Lora, go for it. You might just beat the Statesman on this one. It would be nice to see some investigative journalism in your paper?
Comment By sam Wednesday, December 5, 2007 @ 8:21 PM
That's Phil, telling it like it is. That guy is a hard core realtor. If you meet you will know this article is right up his alley.
Trey
BuildingCredibility.com
Comment By Trey Langford Thursday, December 6, 2007 @ 7:19 AM
Many homes are located in sub-divisions that rely on HOA dues to maintain an acceptable level of maintenance and desirability. Many of those sub-divisions, such as the one my home resides in, operate on a razor thin level of funding.
Another question would be what will happen to those sub-division where out-of-state speculators with vacant homes stop paying the HOA dues, and they will. I expect two things: 1) my dues are going up to cover deliquencies for the vacancies. And 2) the general apperance, i.e. desirability, is going to drop; which will result in further drop in home values.
Thank you Treasure Valley realtors. Thank you pro-growth politicians.
Comment By Kent Thursday, December 6, 2007 @ 12:32 PM
Now, now Kent, must we over generalize. Do all Treasure Valley Realtors deserve your over-generalized implication that we have no ethics.
You have the right to protect your property. Stay involved in your neighborhood association and keep your CC&Rs active, up to date, and legal. Then sell when you're ready and move to a neighborhood that attracts occupants vs. investors.
I know a Realtor that would be glad to assist you in finding such a place to call home.
Comment By Tina Thursday, December 6, 2007 @ 8:28 PM
I refuse to believe this is all the fraudulent doings of Idahoans at various stages of the RE game...maybe 10-15%. Yeah, I get pissed at their gullibility & obedience, but they're basically good people and not that jaded & cynical.
The underlying cause here is the massive overhype of the state & Boise in particular by the dominant Idaho GOP. And then a total lack of follow-thru to manage Idaho's economy for good, healthy growth. Instead, they've created a low-education, low-wage, high-tax economy. The smart money is leaving.
Comment By Tom Friday, December 7, 2007 @ 9:12 AM
Tina - my apologies, I must have hit a professional nerve. But you have generalized me as one of those uninvolved homeowners -- not true. We enjoy our home and do everything to support our HOA and retention of home values in the sub-division. After all it is in our own best interest to do so. More than I can say for the speculators and fippers that have left in hordes leaving someone else holding the bill.
Comment By Kent Friday, December 7, 2007 @ 12:41 PM
What difference does any of this make when Otter and Graig are in the business of covering up the fraud!
Comment By Wyatt Earp Sunday, December 9, 2007 @ 12:42 PM
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