It's House-buying Weather

Episode Transcript

Speaker 1 (00:00):
All right, welcome to the ball Bar and Soul. Thanks
so much for joining us today. We've got hanging out
in the studio Brad Smith from Cross Country Mortgage.

Speaker 2 (00:09):
What's up, Brad?

Speaker 1 (00:10):
How are you?

Speaker 2 (00:11):
I'm great? How are you? I'm doing good.

Speaker 1 (00:13):
I am doing good. I guess people just don't realize
that we've been doing this show for like, I don't
know what, five years, John, I mean like it's during COVID.

Speaker 3 (00:23):
Yeah, like right when COVID started saying.

Speaker 1 (00:26):
Literally five years. Holy cow. I know Brad joined us
about a year ago.

Speaker 2 (00:33):
I don't know. Oh, I knew I was talking and
not hearing myself, so.

Speaker 1 (00:39):
It was crazy. Five years.

Speaker 2 (00:40):
Wow, I think I've been doing it for eighteen months.
That's kind of.

Speaker 3 (00:45):
Lord a lifetime for radio shows.

Speaker 1 (00:48):
Hey, look out look I mean hey, follow famous look
out lookout. Well Hey, it's uh, it's been another fun
week in real estate. I feel like, no, like last
week we talked about the calm before the storm, right right,
I tell you what, I put one house under contract

(01:10):
for the third time. To get through I've had to
get through an inspection. I've had to get through a
divorce on one. So now I think the third time
is going to be the charm on this one. And uh,
and then put our lot in Mountain Brook under contract. Nice,
so we have I'm still waiting on final initials, but

(01:31):
verbally agreed on that this is one that we've had,
uh for a little over a year and glad to
have you know that one, and I believe all parties
are really happy with that. And and then we got
the Lrato house under contract Flip and Hoover, so boom.

(01:54):
So it's been a busy week at least just me
and I know the team has put a couple of
deals under contract. So you know, we talked about the
calm before the storm and then I feel like, uh, yeah,
we're still kind of in that place. And you know,
I believe that there are people that are out and
about looking. There are people out and about making offers,

(02:16):
and so that is that is some good news.

Speaker 2 (02:20):
Yeah, for sure, that is good news. Phone phone phone's
definitely been as picked up. You know, I probably I
talked the two or three three different bars, three different
bars this past week that that we're all getting their
ducks in a row for closing in spring.

Speaker 1 (02:33):
That's great.

Speaker 2 (02:34):
Exact, we had we had one that's looking to got
to be in something by March thirty first, and then
the other two are looking like maybe maybe somewhere in
March or April. But I mean, yeah, I mean the
fact that we're you know, you talk about the calm
before the storm and people kind of taking those next steps,
and that's I love going ahead and getting those going
because then it's just it's a constant just being able

(02:56):
to keep it. You have a lot better idea of
what's going on, and you're not, you know, already up
against the clock. If there are everybody's got different stuff
going on, right, and so not everything's the same for everybody,
and so if you can go ahead and knock out
any little things that might be nuances early, then I mean,
it just makes the whole process smoother when you're ready
to go officially make that offer. So but yeah, I
mean I can see it coming. And now I think

(03:17):
we've got some good news on rates coming down, so yeah,
we'll get to that later. But yeah, I mean it's
been a good week.

Speaker 1 (03:23):
Sweet, that's awesome, Well, good, good, good, Hey, I think
it's time let's go ahead and get the get the
game going. We've got we've got an open house this afternoon.
We've got a new listing, and we got a coming
soon that we're gonna be talking about. So h Brad,
give them the rules of the game.

Speaker 2 (03:39):
The rules of the game, all right, Gus. He's gonna
go through the properties and give us the descriptions and
some key features on it, and then he's going to
get to the end and give me the list price
of that home. I will give a potential down payment,
at which point Gusty and John Mounce will start to
do their calculating in their head and guess the thirty
month monthly principal interest only payment. The thirty month that's

(04:01):
really short term, thirty month, thirty months. You get thirty
months to pay it back. So let's go. Let's go
with thirty years.

Speaker 1 (04:09):
What if we did that thirty month on you know
some of these six ed I.

Speaker 2 (04:14):
Think I've done a seven. I think the I think
the shortest one. I've done a seven year on a
lot you did one time. I think I did a
seven years. But so it's thirty years, three hundred and
sixty months. Yeah, monthly payment, all right? All right?

Speaker 1 (04:26):
Open this afternoon from two to four. Go see Ashley
Stags at three oh one Normandy Lane and Chelsea. Uh.
This is in the Courtyard Manor subdivision. Uh. It is
three and eighty seven square feet, four bedrooms and four baths.
Is built in twenty twelve, and we're asking five one

(04:47):
looking for fiveety nine. This one recently repainted on the interior.
So that's a nice little little add on.

Speaker 2 (04:56):
Chelsea's a great area. Chelsea's awesome. No a lot of
thing that live out that way, and it's been really
growing up and really pretty out there.

Speaker 1 (05:04):
And according to the seller, you can either go to
the Pelm or Chelsea school system according to the.

Speaker 2 (05:08):
Cellar, that's what that's quite the disclaimer. Yeah, I'm giving
the assie start with twenty percent down, twenty percent down,
starting with gusty early Sunday morning yawns.

Speaker 1 (05:27):
You know, need some coffee. Okay, I'm gonna go with
three thousand and fifty one dollars.

Speaker 3 (05:45):
I feel like it's higher. I want to say thirty
two hundred.

Speaker 2 (05:49):
It's actually twenty nine hundred and fifty five sous one
looked at last week.

Speaker 1 (05:57):
Huh did we did this one last week? Yeah?

Speaker 3 (05:59):
Okay, and I should And I think I lost last
week too when we did it.

Speaker 2 (06:03):
I think you've come down a little bit on the guests.
Let's see what Yeah, we only did five percent down
on that one last week.

Speaker 1 (06:09):
All right, Hey, we've got a new listing in Hoover.
Shay is zoned for Shades Mountain Elementary, Bury Middle and
Spain Park High School, thirteen O eight Chester Street. This
is in the Blue Ridge Estates subdivision, which is off
of Alford Avenue up there. This one's three bedrooms in

(06:29):
two baths. It's eighteen and twenty square feet. And I
will tell you this one. I have walked this one.
It could use some of your touch ups. So you're
getting a really good deal at two eighty nine to nine.
I think if you come in here, put some new
carpet in some or not new carpet, like refinish the
hardwoods or new flooring, and redo the paint. I think

(06:52):
this is a great buy at two eighty nine nine.
This was built in nineteen fifty eight. It's got a
car port and it's just you know, ready for its
new owner.

Speaker 2 (07:01):
When you said that's that's school system that location and
then was under two under three hundred nine, I was
like I kind of perked up a little bit, all right,
that's right to eighty nine to nine, five percent down,
five percent down, Yeah.

Speaker 1 (07:13):
Listing his courtesy of John Riddle.

Speaker 2 (07:14):
By the way, go get it Riddle.

Speaker 3 (07:16):
This is real close to my house actually, oh yeah,
and there were near a there Domino's Pizza real close
to there, so if you need a pizza.

Speaker 2 (07:22):
In the middle of the night, you know, Okay?

Speaker 1 (07:24):
Anyway, are they open twenty four hours?

Speaker 3 (07:26):
No, they're not, but you could go. Wait what did
you say? That's also well, like you don't want to
get out, I mean like in the evening, like it's.

Speaker 2 (07:33):
Yeah, I gotcha, I gotcha anyway?

Speaker 3 (07:36):
Uh, five percent eighty nine, fourteen.

Speaker 2 (07:41):
Fifty, fourteen fifty For John, I'm thinking it's more.

Speaker 1 (07:53):
I'm thinking how much did you say putting down five percent?
Five percent, five percent on to eighty nine? No, I
feel like it's like seventeen hundred bucks.

Speaker 2 (08:11):
You feel pretty good, okay, sixteen ninety six?

Speaker 1 (08:14):
Oh what would you match that? Would you look at that?

Speaker 3 (08:22):
Well, unless there's like five more houses have already lost.

Speaker 1 (08:25):
Well, there's one more, John, I've already lost. You have
already lost.

Speaker 2 (08:28):
But it's worth three points.

Speaker 1 (08:30):
Let's play it again, all right, Uh, we've got this
one's gonna be coming soon. It's in the Savannah Village neighborhood,
which is in This is actually in Jefferson County. It's
just off of just right outside of Hoover off a
Laura Road for ash Wood Cove. And this was built

(08:52):
in two thousand and seven. It's a one level, two bedroom,
two bath home within an extra room which is like
an office, a keeping room, whatever you want to do
with it room. It's got a fenched yard, it's got
this like brick tutor. Look to the town home and
it's thirteen hundred and two square feet, which is pretty
large for a two bedroom. So, two bedroom, two bath,

(09:14):
was built in two thousand and seven. We're asking two
hundred and fifty thousand, so I feel like that's a
really good price. Yeah, two hundred and fifty thousand bucks.

Speaker 2 (09:22):
Can I ask us a random question about it? So,
what did you say? Like in the county? So what school?
What school?

Speaker 1 (09:26):
This is one of Shades Valley School District, Grantswood Elementary,
Irondale Middle, and Shades Valley High School.

Speaker 2 (09:32):
Okay, okay, Shades, Okay.

Speaker 1 (09:33):
So there's some like that are off of Rocky. There's
some that are off of like old Rocky Ridge Road,
and some of that area is considered. There's like three
school systems. It's It's County, which goes to Shades Valley,
then there's Hoover, and then there's Oak Mountain, right.

Speaker 2 (09:48):
So it just is kind of like it. That's why
just wanted unique area. Yeah for sure. Anyways, Okay, sorry,
that was just my own.

Speaker 1 (09:55):
Personal Surprisingly, surprisingly, I guess it hadn't been annexed, right,
you know, like a surprise like the one few place
that Hoover has an annex.

Speaker 2 (10:04):
So interesting, all right, So to so two.

Speaker 1 (10:07):
County must be fighting them off or something. I don't know.

Speaker 2 (10:09):
Yeah, all right, two fifty yeah, two fifty percent down,
ten percent down, Gusty, it's on you for the clean sweep.
A lot of pressure, a lot of notice. Since the
two weeks in a row, he's really come back with
the vengeance. Yes, he has ticked him off. John ticked him?

(10:29):
Is that so poked the bear?

Speaker 3 (10:33):
It's like Alabama kicking on Vanderbilt.

Speaker 2 (10:35):
I'm gonna go with.

Speaker 1 (10:39):
Fourteen eighty seven.

Speaker 3 (10:46):
I'm gonna stick with what I said last time, fourteen
to fifty.

Speaker 1 (10:49):
Woo, this is.

Speaker 2 (10:50):
Gonna be close. I love that John went with his gut.
John didn't worry about prices riding you look, yeah, thirteen
eighty five. John's sund three.

Speaker 1 (11:03):
Gussy got one or two, so man, look out, look out. Alright,
well I went again.

Speaker 2 (11:16):
Not a lot of excitement in the room. We'll get
fired up when John wins.

Speaker 1 (11:19):
That's right. Hey, we got some buyer needs. We've got
somebody that's uh man, we're still looking for the single
story home with a pool in Jefferson or Shelby County.
Up to four hundred and well, they're really up to
like four fifty, but they will go up to five hundred.
We've got somebody looking in the Gardendale or Fultondale area.
Three bedrooms, two baths, all main level. They'd prefer it

(11:41):
updated with a garage. Up to three fifty. We've got
somebody looking for a two bedroom condo or town home
in the downtown area, and they would prefer at least
eighteen hundred square feet or more, and they would prefer
one level if possible. Kind of kind of throws townhomes out. Yeah,
but four fifty to six fifty is what they're looking for.

(12:03):
I've got somebody looking for a four to three with
a pool, up to eight hundred thousand in the Hoover area. Uh,
they do like around the Deer Valley area. And then
we're still looking for folks in the Edgewood School district.

Speaker 2 (12:18):
So yeah, if if you've got something that's.

Speaker 1 (12:24):
Maybe looking to sell in the Edgewood part of Homewood
School District, We've got a few buyers that are been
sitting on the sidelines for a little while, ready to
ready to make a move, and it can be even
a renovation.

Speaker 2 (12:34):
Get a couple more folk deal buyers looking. They could
go in together and buy that big.

Speaker 1 (12:37):
One and they all have their own garage, and one
will get the west wing, one will get the east wing,
one will get upstairs.

Speaker 2 (12:45):
That one could get eighth of it.

Speaker 1 (12:46):
And then right, that's right, that's fine. Sorry, it's all good. Hey,
but if you've got if you've got a home that
you're considering selling, we'd love to have a conversation with you.
Maybe it meets one of our current VP buyer needs.
Go to Gustygoulisgroup dot com, Gustygoulisgroup dot com, or you
can go to our website, or I just told you
our website you can go to you can call our

(13:07):
text at two oh five five four to two, nineteen
ninety six, and so guess what time it is.

Speaker 2 (13:16):
That's right, it's testimonial time.

Speaker 1 (13:21):
There we go, get that music going. All right? Hey,
we got two today, two five star reviews. First one
is Blake. Our agent was so helpful and did not
mind how much I called. The Gustygouglist group was very
helpful and everyone was right there if I had any questions.
So this was one of our home sellers and leads,
and so I want to say thank you and congratulations

(13:43):
on your home sale. And Blake, congratulations.

Speaker 2 (13:47):
On another five star review.

Speaker 1 (13:50):
By the way, that's Blake's first closing and first five
star reviews, So.

Speaker 2 (13:56):
There's Blacke all over it all right in.

Speaker 1 (13:58):
Our next star review is for Kyle. Kyle made our
first home buying experience smooth and stress free. We appreciate
that he was an absolute pleasure to work with from
beginning to end, guiding us through every step with ease
and professionalism. So congratulations on your new home and Kyle,
congratulations on another five star review. All right, I like

(14:24):
a I like a two to five star good viewer week. Yeah,
for sure, we gotta work on gotta work on some
more for next week. Yeah, yeah, all right, Hey, we're
gonna head to break, y'all, stay tuned. We're going to
talk a little bit more about what we're seeing in
the market where mortgage rate's at right here on Bob
Bart and sold.

Speaker 2 (14:51):
All right.

Speaker 1 (14:54):
Typically in this segment we talk about what has been
going on in the real estate, what has been going
on in the mortgage rates world. We've got Brad Smith
with Cross Country Mortgage hanging out with us and Brad,
what have you been seeing lately on mortgage rates?

Speaker 2 (15:10):
My friend, we have been pretty stable and kind of
flat over the past couple of weeks, since the since
the since the last rate reduction. But it is it
does appear that it is getting more and more likely
and confidence is growing. We will get another quarter percent drop,
okay at the end of October. Yeah, And so that

(15:33):
part that has not been starting to get built in
yet because I'm not sure the confidence has been high
enough to start moving it. But I think we're.

Speaker 1 (15:40):
Trending percentage at right now, because don't I mean seventy,
I don't know, I feel like that's pretty good, Like.

Speaker 2 (15:46):
I think it's not enough to move the needle really
not yet because I mean we're talking about this is
just kind of getting that worm is kind of turning, yeah,
this past week, So hopefully this coming like starting tomorrow
maybe middle of next week, we'll start seeing a little
that stuff start kind of building back in for that
quarter percent. You know, they're still getting a lot of
mixed messaging from the different Fed governors and different folks

(16:10):
that sit up there, you know. On the employment they're
still kind of trying to trying to act like employments
stable and fine and then come back and say it's
but it's a but it's a big concern, like one
of those like yeah, okay, we're looking at what was
going on forward if it's not today, but we see
the trends are going there, Like let's let's go ahead
and go there. All the numbers when you start looking

(16:32):
at all the different kind of calculations in room for
air and everything, like inflation is a lot closer to
the two percent number that they want it to be
at than what we're getting reported on do to some
just kind of just weird numbers and a little bit
about about a third of that right now, we're at
like two point nine percent on rising inflation. They're wanting
to get that number down to two as close as possible,

(16:52):
and but.

Speaker 1 (16:52):
They still they still using the apartment rentals.

Speaker 2 (16:55):
Still using that, So that was point three percent of
it inflated. It by a point three percent of that
total number, just on the homeowner's rent of guestimate. So
that's point three of that point nine, so it against
two point nine they want to be at two. That's
point three percent. The other number that's driving some of
that's inflated is the inflation, which they have said is

(17:15):
three to four percent, I mean point three to four
percent in there. So now just from there around from
two point nine to about two point two, and then
the other two or three is made up of some
just some different weird trading numbers that they said are
kind of bogus that are throwing those numbers off. So,
I mean, if you look at it really, right now,
we're at one point nine to two percent on inflation,
which is the number they want, but it's not the

(17:35):
number being reported.

Speaker 1 (17:37):
So how do we trick them into doing what they're
supposed to be doing.

Speaker 2 (17:41):
You know, it's like anything when we talk about you know,
whether it's football or anything else, it's the analytics. You know,
the data you get out is what the data you
put in. So I mean, if you're wanting it to
look a certain way, you can manipulate how you feed
the numbers and get it the way you want it.
So it's you know, I feel like there's still a
little bit of that, some of that's still self serving
to the folks that have the decisions or can change

(18:02):
the waiting at the blsgating. It's very aggravating, but you know,
then I do think some solace in that fact that
they've always been that way, So, you know, I guess
reading on it and listen to these folks kind of
chop it up about where it really is and it
should be this and should be that. Well that's great,
grand and wonderful, but I have a feeling that is,
you know, these numbers have always been skewed this way

(18:24):
and we've had to react to them that way. So
like knowing the deeper numbers, it is frustrating, but it's
also like, well, why would it change now? I mean,
if it's all gonna you know, if they ever get
it exactly right and keep going on a new pattern
that's closer to the exact number. We're just going to
be reacting to that in a similar way. It's just
going to be a one time kind of adjustment. But

(18:44):
rates should keep coming down. I'm confident mortgage rates you're
going to continue to stay where they are or then
start to keep coming down at the end of the
year in the first next year.

Speaker 1 (18:52):
So that's why we need to hear my man.

Speaker 2 (18:54):
Yeah, yeah, I mean, now, if I could, just if
I could flip the switch and make it happen today,
I would do it. I would. But we're the fourth quarter.
We're gonna hang on and figure out what's going to happen.
But people are still buying homes and we're gonna keep
trying to close them.

Speaker 1 (19:06):
Well, and I'll tell you, like I mean, I've seen
in the last week, I've seen a little bit more
in showings mm hmm. And so I think having the
announcement of the Fed funds rate reducing the interest rates
a couple of weeks ago, I think it does make
a difference because it starts getting people in that conversation about, oh,
rates are coming down, what is that going to like
look like. Now, it might not have directly impacted it immediate,

(19:30):
but it's still there, but it's in that that that
it's part of the conversation. And so when it's part
of the conversation, people are more open to saying, all right,
whether it's buying a house, does that mean getting a
new car, does that mean you know, paying down whatever.
So it just taught I think it just gets people
talking about their finances.

Speaker 2 (19:52):
It's it's that inceptions. I mean, it's inception essentially. I mean,
you know you you hear it, and so you go, oh, right,
I've heard rates are dropping some. Then you know, so
now I'm going to start looking to whereas you know,
you hear old rates have kind of come up a
little bit, and then all of a sudden it's like,
well maybe we should wait. You don't actually know, you
don't actually look into it, but it kind of starts
feeding that subconscious and so I think the trend being
that way is definitely going to help get more more

(20:12):
and more people for sure fired up. So you're one
hundred percent right.

Speaker 1 (20:16):
Well, good, good, Well, I'm glad we're seeing progress. It's
definitely been needed. We're seeing progress on the real estate side.
As we mentioned, more people are coming to open houses.
I think at the Laredo House last weekend. I think
we ended up having about sixteen that came through the
open house, well, which is really good. We've and then

(20:37):
you just never know about houses. We had another one
that had one person. So it's just it's so hard
to say.

Speaker 2 (20:42):
Well, and the weather's getting so nice. Also, I know,
you know, not to be the cheap weather talk guy,
but but that definitely has to have impacts on open
houses and how many people are getting out and doing
stuff as far as you know.

Speaker 1 (20:54):
What's funny about that. I find that the best open
houses are days it rains.

Speaker 2 (20:58):
Yeah, just trying to people just trying to find something
to do and just what they want have something to do.

Speaker 1 (21:02):
And then the people that were willing to get out
in the rain are just serious.

Speaker 2 (21:06):
They want to see it.

Speaker 1 (21:08):
So so I find that my best open houses just
have historically been when it's been raining.

Speaker 2 (21:14):
Well, we haven't had much of that, so no, we
sure haven't.

Speaker 1 (21:17):
We sure haven't. But no, I'm very you know, like
I said last week or two weeks ago, the call
before the storm, I definitely think that's where we're looking at.
And I think in the in the spring, like it's
gonna be I think if we're seeing rates at mid fives,
you know, like thirty year fixed mid fives, we're gonna

(21:38):
be busy. Yes, we will be busy. And then what
scares me for for buyers is multiple offer situations and
values are going to be going up. Mmm.

Speaker 2 (21:50):
So you're gonna be you're gonna be loving that rate
on paying on a higher principle.

Speaker 1 (21:55):
So if you're listening to this and you're kind of
sitting on the sidelines, like I mean, I know, like
like you just talked about the manipulating the numbers, like
I mean, I guess, like you can talk to any
relative thing and say, oh, now is a great time
to buy, but like, here's the reasons why it is. Yeah,
less competition right now, you have the more ability to

(22:17):
negotiate and uh and we've seen inventory as up ten
percent in the last year, yep, ten twelve percent. So
now when it changes in March, when selling season's back,
game will be a little bit different.

Speaker 2 (22:32):
Then you throw when where we hope rates are by then,
and it's going to be great, It's going to be great.
But you know, again, where where are you making your
money back? Are you getting it on the value of
the house now or are you going to pay more
and get the lower interest rates.

Speaker 1 (22:44):
It's gonna be interesting to see if, like how many
people are gonna wait to see where the bottom's out at. Yeah,
And it's just like, well, isn't it really about the
house exact?

Speaker 2 (22:53):
That's what That's the thing that's been really about the house.
That's the thing that gets me every time.

Speaker 1 (22:58):
You can you can go and refinance it later on?

Speaker 2 (23:00):
Yeah? Yeah, And I mean and then anyways, yeah, I
make it like how big of a difference that becomes
where I just need a white board and like we
need to you know, you know, us to be able
on YouTube and show peaching diagram. You know it's hard
to get that through.

Speaker 1 (23:11):
But can we do that?

Speaker 2 (23:13):
Yeah? I mean why not?

Speaker 1 (23:14):
We should try it?

Speaker 2 (23:14):
Yeah, crump some numbers and get us the video going.

Speaker 1 (23:17):
Well, thanks so much again for joining us each and
every Sunday. You can go to Bradsmith Loans dot com
if you want to go ahead and get that pre
approval process started. And like you said earlier, he's already
planning folks that are looking at buying in March.

Speaker 2 (23:34):
Yes, it's the calm before the storm for sure.

Speaker 1 (23:36):
So you can I mean you can work with them
on getting their their they're getting plans, you know, getting
their credit score in a better situation.

Speaker 2 (23:42):
Yeah, for sure.

Speaker 1 (23:43):
But also go ahead and start looking at houses. Find
out the value at gustygulisgroup dot com or just shoot
us a message start looking around gustygulisgroup dot com. Thanks
so much for joining us. We will catch you next time.