February 17, 2025 • 41 mins
In this episode of Coffee With Your Retirement Coach, Aaron and Randy Yeomans dive into the critical debate of whether a home is an investment or an expense. Joined by Greater Atlanta realtor, Kad Mendoza, the discussion offers deep insights into the current housing market, the importance of prepping your home for sale, and the key mistakes to avoid both when selling and buying property. From understanding the 'real estate parade' to critical lending advice, this episode is packed with practical tips and long-term strategies for making smart real estate decisions. Whether you're considering a major move or looking to optimize your current living situation, tune in for expert advice that can help you make informed and financially sound choices.
00:00 Introduction to Investment vs Expense
00:29 Meet the Guests: Randy and Kad
01:03 Current Real Estate Market Insights
03:04 Preparing Your Home for Sale
04:58 Common Mistakes in Home Selling
07:49 Evaluating Home Improvements
16:30 Buying a Home: Key Considerations
17:39 Financial Planning for Home Buying
20:43 Common Mistakes When Buying a Home
20:49 Importance of a Knowledgeable Real Estate Agent
22:18 Seeing Potential in a Property
24:10 Considering Future Needs in Home Buying
26:40 Downsizing and Financial Planning
31:55 Preparing Your Home for Sale
34:09 Choosing the Right Offer and Lender
35:36 Moving to a New Community
37:13 Final Thoughts and Advice
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Your Retirement Coach is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Aaron (00:05):
All right.
Investment versus expense.
When it comes to the goods that wepurchased, the services that we acquire,
we want to know money that's going out.
What column does that fall in?
And today's focus is home.
All right.
Grab your favorite mug.
It's time for coffee withyour retirement coach.
Welcome back to coffeewith your retirement coach.
Today's episode, investment versusexpense, home edition behind
(00:27):
the clipboard, Randy Yeomans.
Randy, how are you doing, Aaron?
I'm just excited to be back.
Was it here at one ofthe previous episodes?
Randy (00:35):
You're a missed man.
Well, I'm glad
Aaron (00:37):
you said that.
Cause we got some decent feedback.
I was like, Whoa, it's not a dish.
Randy (00:41):
It's really sucks.
If, if the things, the ratingsand all that don't go down
when you're not on the show,
Aaron (00:46):
you want to be like, Hey, we missed you.
Anyway, but speaking of fantasticaddition, sitting with us today, greater
Atlanta, realtor, cab Mendoza cat.
Thanks for being here.
Uh, your professional vantagepoint on this topic, I think
it's gonna be extremely helpful.
Kad (00:58):
Yeah.
Appreciate you guysinviting me to do this.
This is pretty exciting.
Oh
Randy (01:01):
man, it's going to be good.
It's going to be good.
Okay.
You know, uh, one of the things thatcomes up a lot of times when we're
working with clients who are going throughdifferent kinds of, uh, transitions,
moving, deciding where they shouldmove, right sizing, downsizing, and we
start talking about a home purchase.
And the question is like, is a homean investment or is it an expense?
Right.
And in my opinion, a home is always anexpense, but it can be an investment.
(01:26):
So tell us a little bitabout the market today, Kad.
Kad (01:28):
Yeah, um, so right now for, uh, folks that are out there, um, looking
to sell a home, it's a little differentnow than it was a few years back, right?
Sure.
Like now, yeah, through COVID, you justput, you could, you could put your,
your, uh, little shack out on the marketand it would sell like within an hour.
Right.
You know, so that's not happening anymore.
So things are taking a little longer.
Aaron (01:49):
And recency is difficult because some people have only to compare what
they've seen happening and they forget.
A time period where four tosix weeks was very normal.
Yeah.
No reason to worry.
Kad (01:59):
Yeah.
Yeah.
Now, yeah.
Now folks are like.
Stressing out after 40 days on the market.
Right, right.
Yeah.
It's just the norm now.
Randy (02:07):
Yeah.
I would say, and it'sbeen the norm before.
I think one of the things that wetalk about, whether it's a stock
market, real estate market orother things is there's a season.
You know, one of the things we oftentalk about is, you know, our life is
more like farming than it is a microwave.
You know, you got to realizewhat season you're in.
So some of that I think isreally important to understand
where are we in this market?
(02:28):
And, um, a part of thatis it's always changing.
Like it doesn't stay the same.
And I, one of the challenges is thepsychology of buying and selling,
especially a home because a homecan be a real emotional attachment.
So we want to talk today about, you know,like making smart decisions about buying
real estate and selling real estate.
So let's, let's kind of godown that path a little bit.
(02:52):
And so CAD, what are some of the thingsthat you see that people do that are, you
know, when they're going to sell a home?
There are some of themistakes you see them do.
Kad (03:03):
Yeah.
Great question.
Um, I'll tell you that the numberone mistake that I see is folks
are not ready for the parade.
Randy (03:09):
Wow.
Kad (03:10):
Do you know what the parade is?
I think I do.
Is that the real estateparade, the realtor parade?
Well, if you think about theparade, like an actual parade,
you have all these folks, all thattime that goes into getting ready.
Are there going to be floats?
There's going to be floats, but notthe real estate parade, but you're
getting ready for this big event.
And then all of a sudden you haveall these people gathered together
(03:33):
and you have, you know, uh, thesebig floats and clowns and you have
all these kinds of folks there.
Um, and then for, Forthe real estate parade.
What I mean is those, that first weekis so crucial that if you're not ready
for that, you know, that's, that'swhen you have your most showings.
So typically when you go, uh, listyour home that first week, you probably
(03:55):
have somewhere between 10 to 20showings typically in this market now.
Yeah.
Okay.
Okay.
After that.
You might see two or three duringevery week from there forward.
So it's so important to make surethat you're ready for that big parade.
Okay.
Randy (04:09):
So, um, what you're saying is, uh, when you launch
and, you know, in fairness.
I've done five different real estate dealswith CAD buying and selling real estate.
Um, and, uh, so you've been really, uh,a big help to me and I'm super cynical.
I question everything.
I've made CAD reallyearn his keep, right CAD?
(04:30):
Yeah.
Aaron (04:33):
But it is tough.
I should have got paid double.
Yeah, yeah.
But you had to help us shift from,hey, we think this is a great place,
but it's the perception of the buyer.
Like I got to take all thepictures of me down cat.
I mean, I could be avalue add to this place.
So do you want to talk about kindof what that mental preparedness
from every aspect looks like?
As far as selling goes, let's start
Randy (04:53):
about the, yeah.
Listing a home, like getting ready.
Yeah.
You know, what do people need to do?
Kad (04:58):
Yeah.
Number one thing is, uh, declutterand just remember folks like you,
this is not your house anymore.
You're getting ready to put it onthe market and you need to move.
The number one thing I see.
Um, one of the biggest mistakesI see is that folks are leaving,
um, pictures up on the wall.
Um, their, their closets are clutteredwith things, their basements are
(05:19):
cluttered, their garages are cluttered.
And then when I show a buyera home like that, they.
I already know that thisseller is not serious.
Like they're not seriousto negotiate a deal.
So right off the bat, I knowthis is not going to be a good.
So they're,
Randy (05:34):
they're setting themselves up for failure.
And especially in that first week, aswhat you're saying, when everything
hits the market and then their home.
Doesn't stand out.
It's cluttered, you know,all of that kind of stuff.
And so some people justdon't listen to you, right?
Kad (05:48):
Yeah, that's just, you know, you try to advise folks and sometimes
they listen, sometimes they don't.
And, um, a big mistake thatthey make is for, and I'll give
you a good example of this.
I had a client who, um, was sellinga condo and I'll just call him Bob.
Aaron (06:04):
Okay, Bob, Bobby, David,
Kad (06:05):
Bobby, David, Bobby, David, Bobby, David.
Um, didn't, uh, do the things I suggesteddoing before we sell in the house.
Okay.
For example, um, painting the interior,which is not that expensive in a condo.
Randy (06:19):
Okay.
Kad (06:20):
Um, replacing that very old oven, a very old refrigerator.
Okay.
He listed the home and we had about15 showings, the very, the first
two weeks, this is not too long ago.
So in this market, having 15shows, it's actually really good.
And it's just sitting there now, um,after a month or so, he realizing,
(06:42):
okay, maybe I should listen to CAD.
Here's the issue now.
Remember that parade I was talking toyou about that parade is here and gone.
So now you're waiting foryou buyers to hit the market.
Or if you reduce the price down, nowyou have, you know, some new eyes.
Or what's wrong with the
Randy (07:01):
property.
Kad (07:02):
Exactly.
Now everybody's, okay, now the househas been on the market for a month now.
What's wrong with the property?
Aaron (07:08):
Well, that's a good point.
So it's a reduced price and thenthey're going to see the new oven
and the fresh paint, and it'snot going to make sense to them.
It's not going to make sense.
But I love that you said that, Kev,because you know, my, and again, this
is, this is why you do what you do andwe come to you, but my thought would
have been, okay, we need to clear thespace up so I can see myself in it.
Never would have thoughtabout the perception of the
motivation of the seller.
But what a huge aspect when you'reworking through all these things.
Kad (07:30):
Yeah.
Yeah.
No, it's, it's, it's a big deal.
And you know, my goal always is to makesure that we're getting the most money
out of that listing for you, the seller.
And in order to do that, youhave to present the house.
In the in the right manner.
So let me go into that a little
Randy (07:49):
bit.
So what I've noticed over theyears, first of all, your residence
becomes kind of like your baby.
So you've Potentially see yourhome worth more than it's worth.
And sometimes when we talked about thisseason, somebody can remember six months
ago when properties growing really quick.
So they think the price, they shouldbe able to go up on the price versus
(08:09):
their neighbor in their, their houseis better because it's 200 square feet
more and their backyard's prettierand they have a. pink fence or
something, you know, something makesit in their mind better than the other
house that sold for this and such.
So there's a psychology element of that.
So let's get down to what really works.
So I've had over many years working withclients, them wanting to do things like
(08:31):
they're going to tear out their kitchen.
They're going to replace cabinets.
They're going to take the carpet out.
They're going to paint the house.
They're going to redo the master.
All in preparation for selling the home.
And it's kind of interestingtoo, because when I think about
this, a home should be a nest.
So if you're going to make that kindof investment in your home, and you're
thinking about making that investment,first of all, why not enjoy it?
(08:54):
If you're going to do that, let'swork with a financial plan in order
to go ahead and get the home the wayyou would want it in the first place.
I would say I had a dozen people tell me.
You know, they almost don't want tosell it because they've done these
things and now they really likeit, you know, that kind of thing.
So on the one hand, if some of thatstuff needs to be done and you're doing
it for personal enjoyment, do that inadvance of wanting to sell the home.
(09:16):
What I'm concerned about, and I don'tfully understand because I'm not a
realtor, is what is An investmentin the home versus an expense.
So if I go and do certain things,I'm putting money in the home.
Would that raise the value of thehome for me to get my money back?
So what are the things thatthat might be good to do?
And what are things that people are doing,thinking they're adding value to the home?
(09:38):
And really, they might noteven get a return of the extra
capital they put in the home.
Kad (09:42):
Does that make sense?
No, it makes sense.
And I think a lot of mistakesfolks make is that they're okay.
I'm going to put a whole newrenovate the whole kitchen.
And spend 30 grand on there,you're not going to get 30 grand
back from that right renovation.
So the way I approach it is, especiallywhen we're getting ready to list a home,
is the first thing I do is pull the comps.
(10:03):
So if you're looking at all thecomps and like saying, Hey, like this
house is very comparable to yours.
It has completely updated kitchen.
And you know, it's listed at 450.
We'll say 450.
You're.
Right now, if you put 30, 000 intothat kitchen, is that gonna, will you
(10:24):
be able to list it for 450, 000 or?
You know, 480 or 480?
Yeah.
Yeah.
Sure.
So, you
Randy (10:30):
know, I'm, I'm just going to give, uh, CAD some kudos.
So I actually interviewed somebody,he sold a home for, uh, not long ago.
And I said, give me somefeedback on working with CAD.
And by the way, we have a lotof clients that are realtors
and, uh, they're great people.
And, uh, we are not steeringsomebody to any individual realtor.
(10:50):
This is the value of a realtor.
But personally, I'vedone five deals with CAD.
Aaron (10:55):
Yeah.
Randy (10:56):
So I asked this person, I said, what did you value?
And some of the things that were saidwas the, this element where he did an
amazing amount of research and whetherother realtors do that or not, I assume
some of them do, and some of themdon't, he brought like a small book.
And went over the difference in thecomps, the different, the thing.
(11:18):
So you really kind of had an idea ofwhat the value of the property was, um,
from somebody who is just taking a lookat it from a statistical standpoint,
you know, what's the probability ofgetting this prices versus the other.
And some properties, I'm sure it's.
It's easier to do that as some, it'snot so easy and you did a little
Google search, uh, ICAD and, uh, whatwere some of the comments you got?
(11:41):
So we like
Aaron (11:41):
you, we're big fans, but also we're trying to make sure that we're
being prudent and doing our due diligence.
So I, I kind of did a deep divethrough your recommendations online.
Oh, okay.
Kad (11:49):
Just go over the good ones.
Aaron (11:50):
Well, listen, as I'm going through, I'm hearing the same things over and over.
You had a client in SMUR that saidI've used a cat on both sides of the
table as a buyer and a seller and, andthrilled with, you know, sometimes in
your industry, somebody will lean moreone, one side, they're very obvious
that that's either their passion orthey're excited about it, but they want
to have that ambidextrousness again.
(12:12):
But as I was going through all these,it's talking about how patient you were.
How important it was, uh, we talk allthe time about the fifth habit, you know,
Randy (12:19):
could you hurry up?
Aaron (12:22):
But, but again, through this and again, not to, not to belabor
anything, but as people were talkingabout, you know, you taking the time to
find out what they wanted or what wasimportant to get out of their homes.
I'm like, man, I typically would havecome into a conversation thinking that
a realtor is an expense and that'sokay because it's a necessary expense.
But it's also an investment.
(12:43):
And, and, and there's even aprofessional, uh, people that have
done Google reviews and things on you.
I'm like, man, if, if, if people inthe mortgage industry are talking
about CAD and took the time to gowrite a review, yeah, good grief.
Randy (12:56):
You know, I think that's a good point because I think if
you are looking for a realtor, Uh,one of the things you should do
is do a little bit of a deep dive.
And my experience in talking withclients who've worked with different
realtors, some of them have realtors,like we feel about CAD and they're
just, I mean, they're not going to listor, or they're not going to buy with
anybody other than that one person.
(13:17):
And that's a great thing.
Uh, to see, um, but I feel like, youknow, kind of like financial planning
done effectively can really increase the,the, um, the outcome of your investments,
help you protect and grow and, uh,leave your assets in a successful way.
Um, I hope, you know, the, thesame experience that people
(13:38):
would have with a realtor.
And so part of it is listeningto the advice that's being given.
And so the, what I'm hearingyou say, CAD is that.
If, if you want to sell yourhome, you got to declutter it,
declutter,
and then you got to price it.
Right.
And, and if you're working witha realtor, they ought to be able
to bring the numbers to you.
(13:59):
So you make a logical decision.
Yeah.
Kad (14:02):
And not to interrupt, but some folks that when they want to sell their
home, like buy owner, for example,that's the biggest mistake they make is.
And I, I do this to my house.
I think my house is worth morethan, than what the market is.
You know, I think everybodyfeels the same way.
So if anybody goes down that roadwhere they want to list their house,
um, you know, on their own, I highlysuggest get a second, get somebody
(14:25):
else that's not related to you.
That's, you know, outside of the house,get their opinion to say, Hey, these
are the comps you know, my house.
What do you think it's worth?
Yeah.
Aaron (14:34):
Right.
Yeah.
No, that's so good.
Randy, you said deep dive and it mademe think we talked about a kitchen,
but could you talk about some of theother things like swimming pools,
roofs, driveways, that kind of stuff.
We had a client not too long ago.
They were like, we're going tosell the house we're working on it.
It's funny.
They were downsizing, but itwas a much more expensive home,
which I'm sure you see a lot of.
But one of the things we'relike, there, we're going to
(14:55):
go ahead and fill in the pool.
Yeah.
I've
Randy (14:57):
actually had that happen too.
Yeah.
Aaron (14:58):
Yeah.
Yeah.
What are your recommendations whenit comes to, well, we have a pool
and we're going to get a pool.
Should we fill the pool in?
And then conversations aboutthe driveway's cracked, the
roof maybe not so great.
Yeah, how do you know,
Randy (15:08):
right, how do you know what is worth putting the money in and what isn't?
Kad (15:13):
Um, the easiest way to answer that is going to be just pulling what other
houses have sold in the neighborhood.
Once you have that information, then youcan figure out, okay, this one has a pool.
That one doesn't have a pool.
This one has an updated kitchen.
That one has an updated, youknow, backyard kind of thing.
All this landscaping.
Then you've got to
Randy (15:32):
kind of do a cost analysis.
Like, right.
If I did these things,would it actually add value?
Yeah, you might get more for your home,but not more money in your pocket.
Right.
Because all you're doing is getting areturn back and extra capital you put in.
Right.
What are the times in which doing, whatare the things that people can do if
they did invest the money in the homethat would actually potentially make
the home more sellable or more valuable?
Kad (15:53):
Yeah, um, this is funny.
Like I, every year I get at least threeor four clients that call, call me
up and say, Hey, CAD, I'm looking to.
Renovate my kitchen or redo my flooring.
What do you think about this?
Oh, wow.
So a forward thinking attitude,thinking attitude, we're going to
Aaron (16:10):
enjoy it, but as yeah, but in the
Kad (16:12):
future, if I'm going to sell it, I'm going to call a cat and
make sure I'm doing this right.
Kind of thing.
Cause he knows the market and II've had had those conversations,
but yeah, no, the color you'repicking, that's not going to work.
You know, pink and yellowisn't always great or purple.
Yeah,
Randy (16:27):
man,
Kad (16:28):
that's wild.
All
Randy (16:29):
right.
So let's go to the other end.
What if I'm, um, buying a home,what are some of the challenges and
mistakes people make in buying a home?
Kad (16:37):
Yeah.
Uh, buying a home, I would say,and I've, uh, I was a buyer's
agent for a very, very long time.
The number one mistakethey make is they do not.
Pick their lender ahead of time.
Randy (16:48):
Ooh,
Kad (16:49):
that's interesting.
That's huge because what happensis it's it makes the whole process
so stressful And it's funny becausewe're having this conversation.
I have this conversation all mynew clients there are buyers and
some of them most of them listen,but some of them don't and then
when you go Hey cad the house.
We have this great house.
We want to go look at it todayThey fall in love with the all of
(17:09):
a sudden now Now they're rushingto try to get some, they just move
so fast once you're under contract.
So now you're dealing with acontract, but also now you're
dealing with, Oh, I just shoot.
I still need to find a lender,which lender am I going to pick?
So I always tell folks, please,please, please always try to.
figure out what lender you want to usefirst, call, you know, go, go apply
(17:32):
with whoever you want to apply with.
That's fine.
And then from there, once you makethat decision, let's go hunting.
You know, it's interesting that you
Randy (17:38):
say that.
Um, I think one of the things that, uh,teaming up, uh, the real estate side of
things with the financial planner whois forward thinking as well is really
understanding the options you have.
So I often will recommend peoplewho are in that situation to go
ahead and get a home equity line ofcredit on their personal residence.
And say, well, we don'tneed to borrow any money.
(17:59):
No, it's not for you to borrow money,but I'll often have them get the
largest home equity line that they can.
And one of the reasons for that is so thatthey will have the down payment or they'll
have the assets to put down in a home.
Should something come up thatis like a really great deal.
This is not to, you know, bebuying stuff that you don't need.
This is having access tothe equity inside your home.
(18:20):
The other thing that we've done for anumber of clients is asset based lending.
So this is where somebody can already haveit set up with their investment company,
like what we do, and they can actuallyborrow on their investments so that if
they needed to do a deal and they're notwaiting on a mortgage, if something came
up like really quickly and they weren'tproperly prepared, between the home equity
(18:42):
line of credit on the residence and a,and a line of credit on their investments.
Um, they've got ready cash thatthey're already approved on and they
can make a purchase on the home.
And in some cases, when people aregoing through certain transitions, um,
they might need a little time to sellthe home or they might have a, uh, a
deal that like the opportunity is sogreat and not emotionally, but really
(19:03):
logically, it's such a great deal.
So having smart financial planningas a part of your, um, real
estate, um, uh, view is good.
So.
Again, sometimes having a line of credit,uh, I'll even, and have had times if
interest rates were appropriate, I've hadpeople pay off their mortgage with a line
(19:23):
of credit because as they're paying thatdown, they can repopulate the line of
credit or the home equity line of credit.
And the same with, um, asset basedlending, they could use that, pay it off
and it's constantly available to them.
So that's another way.
I'm not as conventional.
but in certain circumstancesthat might work.
But the number one thing isget, if you're going to make, if
(19:45):
you're going to be buying, havethat financial element handled.
Best thing, you know, get the rightlender if you're going to need a mortgage.
If you're not going to need amortgage and you're going to use the
cash from the proceeds of the home,maybe have some asset based lending
or big line of credit on your home.
Does that make sense to you?
Oh yeah,
Kad (20:02):
no, it makes sense.
Yeah, and be prepared that way is,is crucial because I find folks,
especially when you're having toBuy and sell at the same time.
Yeah, that's that can get prettydifficult and not many folks are doing
that contingency contracts nowadaysBecause if it's taking 30 or 40 days
to get a house under contract thatcontingency is not going to work And
Randy (20:23):
I've actually had a client recently within the last few weeks Call me and
ask me would they do that and then Oneof them, um, they had, they're going to
pay, it was almost a cash deal, but theremaining amount they wanted the, um,
seller to hold a mortgage on it and, um,you know, do like a balloon note on it.
So those are kind ofinteresting conversations.
What's another one in buying a homethat is a mistake that people make?
Kad (20:47):
Um, I'm trying to think of another one.
Um, that obviously not having the rightreal estate agent is, um, a big one.
And what I mean by that is not havingsomebody that knows the contracts.
So let me give you a good example of that.
Okay.
So, um, I recently had a, a clientwho, um, they have closing, decided,
(21:08):
Hey, CAD, and I know I'm not goingto go into all the details of it,
but we don't want the home anymore.
So legally they, so they backed out.
So if you don't know the contracts,you don't know the buyer's rights to do
to back, you know, back out of a deal.
Yeah, what does that do now?
Is that gonna leave me upto a lawsuit as a buyer?
(21:29):
Sure.
I mean, but anybody can sueanybody for any reason, right?
Right.
But here's the thing.
So I know the contracts pretty well.
I've done this for a long time.
Back in 2018 the GARC, they'recalled the GARC contracts, the
Georgia real estate contracts.
They made a change On there to where nowa buyer, uh, a seller cannot sue a buyer
(21:53):
for specific performance before that.
You could do it all day long, but soif you don't know the contracts, you
wouldn't know that it's a big deal.
I thought you were about to say they wentout and bought a car the week before,
Randy (22:05):
but that's, well, yeah, that probably would not be a
great idea either doing some majortransaction or something like that.
So there is some misconceptions of whatpeople should and shouldn't do there.
In that period of time,is there anything else?
Like, I think one of the things we'vetalked about over the years, because
CAD and I've got to know each otherpretty well is where, um, people
(22:26):
can't pull the trigger, like theydon't find that perfect property.
And I think sometimes people can't seethrough the paint color or the fact
that they could take a wall down or, youknow, they could redo the landscaping.
So, um, how does that work?
Like what, what, what'syour experience with that?
Kad (22:42):
Yeah.
Yeah.
I mean, just when, whenI'm showing a house.
You have to walk through,Hey, did you notice this?
This could be changed to that.
And a lot of times what I'm seeing isa lot of times that folks don't pull a
trigger and it's because the walls areall dark and you can't really see in
the house, you know, they don't havenatural daylight going in or whatever.
(23:02):
I'm like, listen, guys.
Let's open up the blinds and picturethis with a brighter color, right?
And this is gonna look so much different,
Randy (23:10):
you know, there's there's some software out there Do people ever
do that now where they take the homeand then they do the change of color?
I'm just curious Yeah,
Kad (23:18):
no, they do.
But here's the issue though.
I think a lot of times especiallywhen I'm showing a house It's
hard to change folks minds.
What is that first impression?
Yeah, that first impression.
They're pretty much like,okay, this is not it.
I'm in their mind.
They moved on.
Okay.
So it's hard to like, Hey, letme get this app out real quick.
So I think
Randy (23:37):
one of the things, um, I remember when we were looking for a
property up in North Georgia and wewere using cat and he'd drug us all
over the, all these mountains in that.
And of course this was, um,shortly after COVID at the end of.
That's the kind of the normwhere everything was shut down.
And a lot of people were looking atbuying property and I don't know,
that was kind of a weird time.
(23:58):
But, uh, man, I, I mean, therewere shacks that were people
were asking ridiculous prices.
And if you didn't buy the shack,the shack was gone the next day.
Right?
You know, this is those seasons of time.
So I think really, some of the things asa financial planner who primarily works
in the retirement community and that isconversations I'm having with clients,
(24:20):
And that is, uh, the idea of, are youin a home that if you had an illness or
your spouse had an illness and a mobilitystruggle, are you in the right home?
Because people do fallin love with their home.
But if you've, all your bedroomsare upstairs or you've got a very
difficult navigation of stairs and,And or landscaping or where the
garage is and all this kind of stuff.
(24:41):
You may love it and never want tomove and moving is a pain in the butt.
Let's just admit it.
Nobody wants to do it.
It's not fun.
But, um, what I've found is.
figuring out what's the right thing to do.
So sometimes, and, um, Kat and Ihave even worked on a couple of these
situations where it makes sense to sellthe home and maybe you're going to go
into, um, living in an adult apartmentliving, or you're going to live in
(25:05):
a, an adult community where you are.
You know, going to be able to gettransportation to different things, and
they've got massive amounts of activities.
And I'm not, we'll do this another timemaybe, but we won't name names, but there
are some unbelievable facilities whoare all going after these baby boomer
market, where they are wanting to getout of that real estate responsibility.
(25:27):
And now we've got the, the proceeds from ahome that can help support that lifestyle.
So you don't actually have tosell a home and buy a home.
You might want to sell a homeand you might want to go into
some form of adult living.
And, and the reason I'm spending sometime on that is, as a financial planner
and trying to make smart decisions aboutour money, smart decisions in buying a
(25:50):
home, smart decisions in selling a home.
One of the things we have to lookat is what are the next 10 or 20
years of my life looking like.
And what, if you don't makesome of these decisions and.
Thoughtfully consider whatyour real circumstance are.
Real, um, diagnostic dive into whereare you and what you would really want.
(26:10):
And you end up in a circumstance whereyou're in a residence that doesn't
fit you, if you have an illness, thensomebody else is going to be making
that decision or whatever's available.
So it's much better to be thinking about,um, your home as a nest and getting the
value out of that and being in the righthome for the stage of life you are.
You know, people upgrade toa home in their late forties.
(26:33):
They typically buy their biggest homein their forties in that period of time.
And then when people start downsizing,they really need some guidance.
And one of the struggles Ithink a lot of us have had.
Is we're selling this, um,home and it might even be a
McMansion and we're downsizing.
We're spending the same money becausethat's, that's the market demand, right?
(26:53):
What do people want?
Low maintenance, you know, uh, freedomto do the stuff that they want to do.
And, you know, actuallyCAD helped me do that.
And, um.
In 2016, I think it was, and Idownsized from a much bigger home
and with a lot of property andlandscaping issues and all that.
And I tell you honestly, Kad, I hadbuyer's remorse for about three months.
(27:16):
I met my neighbors, fantasticneighbors, you know, and also the
things that the community had to offer.
We're so much better than where Iwas before, but it took me a little
bit of time to get to do that.
So let's go back and doa little quick recap.
Um, mistakes that people make.
Um, and how, so?
First of all, a home, uh, canbe an investment, but part
(27:38):
of it is always an expense.
Even if your home's paid for,and that's another episode.
Maybe do I pay my home off or not?
But the property taxes, the insurance.
The upkeep and the maintenance thathas to be taken into consideration.
Home's always an expense,
Aaron (27:52):
but I wanted to ask, I wanted to tap into that.
And I love all of this becauseI feel like it's the truth about
any professional you work with.
A lot of times we don'tknow what we don't know.
Yeah,
Randy, I was thinking back.
We had a client not too long ago.
That they were making that move, theywere empty nesters and it wasn't, it
was a little bit of a downsizing, butmore they were kind of moving areas and
stuff and uh, uh, Randy just offhandedlysaid, I was for sure over Marietta,
(28:15):
y'all would go move off the golf courseand they're like, Oh no, we, you know,
we were worried about mobility later inlife, you know, the knees and everything.
Cause they had had a replacement kneesurgery and uh, Randy goes, Oh, okay.
I, I, I was for sure that the, theelevator would have got you guys.
And they were like, Elevators?
So yeah, yeah, yeah.
Those houses over there, they'vegot, they've got elevators.
But if you don't want that, they'relike, we didn't know they had elevators.
(28:37):
And then they went over there and Ithink they ended up doing like a short
term lease to find out if elevatorliving on the golf course was for them.
But if you don't know what you don'tknow and you don't have somebody
to bounce off and sound with.
So that's the question I'm leading into.
You mentioned people will call youand say, and, and, and, and I know
this is true because I did it.
(28:57):
The wife's renovating the kitchen.
I want her to be happy.
Our kids are, are, are growing up.
We're doing these things, you know,um, you and I have the relationship
professionally where I can do that.
Yeah.
What is the appropriate way to enter into a conversation with
a professional respecting of theirtime, respecting of their knowledge?
Should you, how do youbroach that conversation?
(29:18):
How do you appropriately thank someone?
Because, um, you know, the old plumbersjoke, you fixed it by banging on the pipe.
Yeah.
Yeah, I've got a bill and it'sthis much to bang on the pipe.
It's like, no, no, no, no.
The bill is for how much it took me in theway of knowledge and years and expertise
to know where to bang on the pipe.
Yeah.
How was an interaction likethat appropriate if they're not
buying or selling in that moment?
Kad (29:38):
Yeah.
Um, well I guess it just depends onthe agent you're talking to, right.
Um, for me, um, I always lookfor, and I love the opportunity to
talk to anybody about real estate.
That's just the way I am.
Um.
Buying now buying 10,20 years down the road.
Doesn't matter to me.
I just love the conversation.
So if somebody just calls me up andsay, Hey, cad, I'm looking to do
(30:01):
this and I don't even know them.
How'd you hear about me?
Oh, humans.
I'm like, okay, well let's talk.
Yeah, let's, and I'll, I'll givehim some input on, on what to do.
So it's
Aaron (30:08):
connection.
It's networking.
That's not a bother.
You don't mind.
No, no, just be respectful.
Kad (30:13):
Yeah, a hundred percent.
No, I enjoy those conversations.
Bring it on.
Randy (30:17):
Sorry, Randy.
I just, I mean, it's a, it's a good thing.
It's kind of like, uh, some ofwhat we do sharing in the public.
I feel like there are people who, uh,take advice from financial planners.
They go do it themselves.
I have no problem with that.
Um, we're talking with CAD, but there'sa lot of great realtors out there.
There, you know, maybe not as good lookingas CAD, but there's a lot of great ones.
What we want to get from CAD, we'rekind of doing what you're asking.
(30:39):
We're actually borrowing from CADand we're saying, what are the
things that people need to do?
And this would be true probably ofany realtor and CAD will probably
think of five more things in anyarea after we're done with that.
And so would another realtor.
But the point would be, whatdo we need to do in preparing?
You know, first of all, I'm, I'msuggesting, um, think about your.
(31:00):
The real estate thatyou're in, is it ideal?
Another one, which, uh, I won'tgo down this rabbit hole too far,
but some people, um, they don'trealize what their home's worth.
They don't realize that they have a homethat's worth a lot of money, but it's 30
years old and it's going to have all thesethings that are going to come up with.
It's probably not as energy efficient.
(31:22):
It's probably got a lot of things,but they're familiar with it.
So whenever we go to make achange, whether it's real estate
or something like that, there's.
What I call FUD, right?
Fear, uncertainty, and distress.
So it doesn't feel good to do it.
But the point I'm makingis be in the right nest.
If it's going to be an expense, bespending the money and the right property.
(31:43):
And if you think before you sellyour home, somewhere down the
road, you're going to updatethe kitchen and update that.
Work with your financial plannerand Enjoy it now, don't wait,
you know, and fix your home up.
And then when you go to sell you, man,now I really like it, you know, go
ahead and really like it now make thatinvestment and then figure out what's
(32:04):
the right access to capital that'sefficient and effective, like home equity
line of credit, having that availableto do things, having a line of credit
on your assets or asset based lending,we could talk more about that one day,
but now let's go into a summary realquick of, all right, I'm going to.
Um, sell a home, declutterthat home, right?
(32:25):
Get rid of all the stuff that youlike that nobody else wants to see.
Yeah.
Right.
Kad (32:30):
What else?
If anybody remembers anything about thispodcast and what I'm suggesting, it's
going to be get ready for the parade.
Get ready for the parade.
I like that a lot.
It's such a big deal.
So really that firstweek or two is the deal.
It's crucial.
That is the deal.
It is very crucial because if afterthat, um, two, one of two things happen.
If you're not getting showings after that.
(32:51):
One of two things.
Either one pricing or condition.
One of those two things.
The problem with conditionis it takes a while to fix.
Yeah.
So it's not quick.
So then, okay.
Now you have to reduce price.
Randy (33:04):
You know, um, somebody I referred you to, um, I remember when you went.
Through that, uh, I keep thinking we'regoing to put a sign out for this person.
And man, you had them do a lot ofstuff before you had them do that.
Like, because I didn't know thatyou called it the parade, but you
explained, I remember listening inand you said that first week or two.
(33:25):
Is the deal that that's whypricing is important and why
decluttering is important.
And this particular person,man, they got rid of everything.
I mean, they, now they ended up with threestorage units, but they did what he said.
I mean, they got rid of everythingand the house was pristine when it
went on the market and they got topdollar for it as a result of it.
So the other thing is, I think, um,no matter who the realtor is, listen
(33:49):
to them, you're paying for advice.
Take their advice.
Don't, don't think youknow more than they do.
You know, and realize that realestate is an emotional, uh,
thing if it's your residence.
Okay.
Selling a home.
The number one thing I heard you sayis get the lending or the financing
handled in advance buying the home.
Yes.
For buying the home.
Right.
What'd I say?
(34:09):
Selling, selling, buyingand choosing between
Aaron (34:12):
offers has financing ever been the final What you
choose to go on a contract with
Kad (34:18):
yes.
Um, so as a, as a seller,you're talking about the seller
side and picking an offer.
Yes.
If you have two identical offers,identical offers, there's so much to
look into to making sure that the set myseller is protected and that financing
contingency has it all right there.
I thought it was lender.
You're picking the lineswhen you said that.
Yeah.
Well, what lender you'repicking is a big deal.
(34:39):
Yeah.
Okay.
So if I have, if somebody comesto me and says, Hey, here's, uh,
we have, uh, here's an offer.
I have another offer here for yourhouse and I'm looking at big bank.
Versus a local lender.
I'm going to go with that locallender 100 percent of the time.
Wow.
That's because I promise I could tellyou all kinds of stories about big, big
(35:01):
banks and how we don't want to go to jail.
No, we don't want to go to jail, but
Aaron (35:05):
it's, if it's the local, it's probably already somebody that's
familiar with the area and stuff too.
Exactly.
Kad (35:10):
I'm familiar with the area.
Knows the local appraisers very welland can get things done pretty quickly.
Awesome.
Aaron (35:16):
I don't want to rabbit trail off too much, but in light of that, we've
got a mutual client, a financial planningclient of ours that you've helped.
They were headed, well, theywent to central Florida.
I want to be carefulbecause it's a small world.
They went to central Floridabecause that was the area they
wanted to be close to the beach.
They had a lot of reasons for goingand it lasted less than two years.
And then they're back here.
Yeah.
So when somebody is thinking about if it's, if it's, Hey, it's not just
(35:41):
the home we're thinking about movingto a new community or to a destination,
what kind of wisdom do you try to impartor help somebody to mentally prepare
for that kind of a, of a transition?
Kad (35:50):
So when they're moving like out of state,
Aaron (35:52):
out of state, or even like, I mean, we have a lot of people that,
man, we grew up in this area and westayed cause our, our kids friends were
here and the ball team was here and nowwe want to go to Alpharetta or now we
want to move up to a flowery branch or.
Kad (36:06):
Yeah.
So it's funny because I, I get, um, atleast one or two phone calls every year
from a client saying, Hey, uh, I have afriend of mine that's moving out of state
or a friend of mine moving in state.
And, uh, who do, who do we, who do wecall if I'm not the local agent here, you
know, whatever, they're moving up to likeSouth Georgia or something like that.
(36:27):
It'd be
down to South Georgia.
So
you're both wrong.
It would be south to southGeorgia, not up or down.
Oh my goodness.
All right.
Hit me with it.
Um, But I have those conversations folks where I I'm
networked around the country.
Sure, so I can make those phone callssaying hey, I have and I did this
(36:49):
recently over in North Carolina.
I had a client moving to NorthCarolina and I because of my
networking I was able to Get a listof really good agents Um, interview
them and they're at down for them.
And then from there, here you go.
Here's the top three that I could findyou and you get, and the feedback I get.
(37:11):
Every time is excellent.
Awesome.
Randy (37:13):
Well, you know, wrapping up and we really are running out of time now.
I just want to say, Kat, I appreciate you.
Uh, again, we've got a lot of realestate clients who are great folks
in that you took the time to do this.
And one of the reasons I wantedto bring you in is the number
of deals I've done with Kat.
And I know what that is.
Uh, and I think that, um, one ofthe struggles I've had in dealing
(37:34):
with Kat is taking his advicebecause I think I know everything.
And Kat has been able to prove to me.
You know, that I don't know everything,he's not the only one that's proved that,
but he was one of the ones, but I mean,I, I'm really, um, I appreciate the value
add that you do, and I think the otherthing, uh, you made a comment, and I
think this is important, and this shouldbe the case with anybody you deal with.
(37:57):
CAD takes a very long term approach anda realtor who's worth their salt should.
So you might be giving themadvice now, and the deal might be
five or 10 years down the road.
We're trying to do the same thing withour financial planning practice, which
is, uh, Helping people understandthat their home they're in right now
might be perfect and ideal forever.
But if you notice that there's somestruggles that people are going to
(38:17):
have due to mobility or cognitiveissues in that, really, uh, we have
a stewardship responsibility tohelp a client think that through.
And we couldn't do it without, you know,the right kind of, um, uh, supporting.
Other professionals, the CPA, the realtor,and attorney and that, and bringing the
family in a lot of times to do this.
(38:37):
So, uh, get good, uh, advice,uh, listen to the advice.
If you're uncomfortable with it, outof the mouth of two or more witnesses,
let this stuff be established.
And Aaron, why don't youwrap us up and, uh No,
Aaron (38:50):
absolutely.
I, this has been fantastic.
And often the borrowed phrasethat we say on the podcast
cat is, is seek wise counsel.
And I think that's whatthis comes back around to.
As always, we'd love to hearfrom you guys, your thoughts on
this episode, this topic, uh, atconnect at your retirement coach.
com CAD, where can peopleget in touch with you?
Kad (39:07):
The best way is going to be just throw, shoot me an email.
Okay.
Yeah.
K a D CAD.
Aaron (39:15):
Fantastic.
Fantastic.
So in a quick recap, listen, yourhome is going to be an expense.
The investment side is up to you.
We want you to seek wise counsel.
We want you to make sure that instead ofafterwards, Hey, I remodeled the kitchen.
What is this going to do?
Seek those professionals that canhelp you walk through those big
expenditures, like the pool, like thekitchen, like the bathroom, everybody
that retires pretty much two things.
(39:35):
Yeah.
Yeah.
Randy (39:36):
Get a new kitchen and, and a new master bath.
I don't know why they do it, but I feellike if we ever really wanted to meet
the people that we need, I'm retiring,I'm going to need a new master bath
and I'm going to upgrade the kitchen.
Aaron (39:48):
Roll over master baths and kitchen.
Anybody else?
Oh, you guys had come over.
So, uh, seriously want you to takethose things into account beforehand.
Um, but to all of you that havebeen a part of our audience, you're
coachable and we appreciate thatand we want you to stay coachable.
We hope you enjoyed today's show.
But you may have questions for ourcoaches and they can be emailed at
connect at your retirement coach.
(40:09):
com.
If you know someone thatneeds to hear this episode,
we encourage you to share it.
As a reminder, the content of thispodcast is for educational and
entertainment purposes only andshould not be construed as advice.
On behalf of our coaches, we wanna thankyou for listening and for being coachable.
Devin (40:24):
Yeoman's Consulting Group, a registered investment advisor YouTube
channel based in Marietta, Georgia.
We strive to provide comprehensivewealth management services for
every stage of the journey.
This platform is solely for informationalpurposes, and it's not offering advisory
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Investing involves risk andpossible loss of principal Capital.
Comments by viewers or recognitions areno guarantee of future investment outcomes
(40:45):
and do not ensure that a viewer will.
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Public comments posted on this siteare not selected, amended, deleted,
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The opinions expressed herein are asof the date of publication and are
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and may not necessarily come to pass.
All right.
Investment versus expense.
When it comes to the goods that wepurchased, the services that we acquire,
we want to know money that's going out.
What column does that fall in?
And today's focus is home.
All right.
Grab your favorite mug.
It's time for coffee withyour retirement coach.
Welcome back to coffeewith your retirement coach.
Today's episode, investment versusexpense, home edition behind
(00:27):
the clipboard, Randy Yeomans.
Randy, how are you doing, Aaron?
I'm just excited to be back.
Was it here at one ofthe previous episodes?
Randy (00:35):
You're a missed man.
Well, I'm glad
Aaron (00:37):
you said that.
Cause we got some decent feedback.
I was like, Whoa, it's not a dish.
Randy (00:41):
It's really sucks.
If, if the things, the ratingsand all that don't go down
when you're not on the show,
Aaron (00:46):
you want to be like, Hey, we missed you.
Anyway, but speaking of fantasticaddition, sitting with us today, greater
Atlanta, realtor, cab Mendoza cat.
Thanks for being here.
Uh, your professional vantagepoint on this topic, I think
it's gonna be extremely helpful.
Kad (00:58):
Yeah.
Appreciate you guysinviting me to do this.
This is pretty exciting.
Oh
Randy (01:01):
man, it's going to be good.
It's going to be good.
Okay.
You know, uh, one of the things thatcomes up a lot of times when we're
working with clients who are going throughdifferent kinds of, uh, transitions,
moving, deciding where they shouldmove, right sizing, downsizing, and we
start talking about a home purchase.
And the question is like, is a homean investment or is it an expense?
Right.
And in my opinion, a home is always anexpense, but it can be an investment.
(01:26):
So tell us a little bitabout the market today, Kad.
Kad (01:28):
Yeah, um, so right now for, uh, folks that are out there, um, looking
to sell a home, it's a little differentnow than it was a few years back, right?
Sure.
Like now, yeah, through COVID, you justput, you could, you could put your,
your, uh, little shack out on the marketand it would sell like within an hour.
Right.
You know, so that's not happening anymore.
So things are taking a little longer.
Aaron (01:49):
And recency is difficult because some people have only to compare what
they've seen happening and they forget.
A time period where four tosix weeks was very normal.
Yeah.
No reason to worry.
Kad (01:59):
Yeah.
Yeah.
Now, yeah.
Now folks are like.
Stressing out after 40 days on the market.
Right, right.
Yeah.
It's just the norm now.
Randy (02:07):
Yeah.
I would say, and it'sbeen the norm before.
I think one of the things that wetalk about, whether it's a stock
market, real estate market orother things is there's a season.
You know, one of the things we oftentalk about is, you know, our life is
more like farming than it is a microwave.
You know, you got to realizewhat season you're in.
So some of that I think isreally important to understand
where are we in this market?
(02:28):
And, um, a part of thatis it's always changing.
Like it doesn't stay the same.
And I, one of the challenges is thepsychology of buying and selling,
especially a home because a homecan be a real emotional attachment.
So we want to talk today about, you know,like making smart decisions about buying
real estate and selling real estate.
So let's, let's kind of godown that path a little bit.
(02:52):
And so CAD, what are some of the thingsthat you see that people do that are, you
know, when they're going to sell a home?
There are some of themistakes you see them do.
Kad (03:03):
Yeah.
Great question.
Um, I'll tell you that the numberone mistake that I see is folks
are not ready for the parade.
Randy (03:09):
Wow.
Kad (03:10):
Do you know what the parade is?
I think I do.
Is that the real estateparade, the realtor parade?
Well, if you think about theparade, like an actual parade,
you have all these folks, all thattime that goes into getting ready.
Are there going to be floats?
There's going to be floats, but notthe real estate parade, but you're
getting ready for this big event.
And then all of a sudden you haveall these people gathered together
(03:33):
and you have, you know, uh, thesebig floats and clowns and you have
all these kinds of folks there.
Um, and then for, Forthe real estate parade.
What I mean is those, that first weekis so crucial that if you're not ready
for that, you know, that's, that'swhen you have your most showings.
So typically when you go, uh, listyour home that first week, you probably
(03:55):
have somewhere between 10 to 20showings typically in this market now.
Yeah.
Okay.
Okay.
After that.
You might see two or three duringevery week from there forward.
So it's so important to make surethat you're ready for that big parade.
Okay.
Randy (04:09):
So, um, what you're saying is, uh, when you launch
and, you know, in fairness.
I've done five different real estate dealswith CAD buying and selling real estate.
Um, and, uh, so you've been really, uh,a big help to me and I'm super cynical.
I question everything.
I've made CAD reallyearn his keep, right CAD?
(04:30):
Yeah.
Aaron (04:33):
But it is tough.
I should have got paid double.
Yeah, yeah.
But you had to help us shift from,hey, we think this is a great place,
but it's the perception of the buyer.
Like I got to take all thepictures of me down cat.
I mean, I could be avalue add to this place.
So do you want to talk about kindof what that mental preparedness
from every aspect looks like?
As far as selling goes, let's start
Randy (04:53):
about the, yeah.
Listing a home, like getting ready.
Yeah.
You know, what do people need to do?
Kad (04:58):
Yeah.
Number one thing is, uh, declutterand just remember folks like you,
this is not your house anymore.
You're getting ready to put it onthe market and you need to move.
The number one thing I see.
Um, one of the biggest mistakesI see is that folks are leaving,
um, pictures up on the wall.
Um, their, their closets are clutteredwith things, their basements are
(05:19):
cluttered, their garages are cluttered.
And then when I show a buyera home like that, they.
I already know that thisseller is not serious.
Like they're not seriousto negotiate a deal.
So right off the bat, I knowthis is not going to be a good.
So they're,
Randy (05:34):
they're setting themselves up for failure.
And especially in that first week, aswhat you're saying, when everything
hits the market and then their home.
Doesn't stand out.
It's cluttered, you know,all of that kind of stuff.
And so some people justdon't listen to you, right?
Kad (05:48):
Yeah, that's just, you know, you try to advise folks and sometimes
they listen, sometimes they don't.
And, um, a big mistake thatthey make is for, and I'll give
you a good example of this.
I had a client who, um, was sellinga condo and I'll just call him Bob.
Aaron (06:04):
Okay, Bob, Bobby, David,
Kad (06:05):
Bobby, David, Bobby, David, Bobby, David.
Um, didn't, uh, do the things I suggesteddoing before we sell in the house.
Okay.
For example, um, painting the interior,which is not that expensive in a condo.
Randy (06:19):
Okay.
Kad (06:20):
Um, replacing that very old oven, a very old refrigerator.
Okay.
He listed the home and we had about15 showings, the very, the first
two weeks, this is not too long ago.
So in this market, having 15shows, it's actually really good.
And it's just sitting there now, um,after a month or so, he realizing,
(06:42):
okay, maybe I should listen to CAD.
Here's the issue now.
Remember that parade I was talking toyou about that parade is here and gone.
So now you're waiting foryou buyers to hit the market.
Or if you reduce the price down, nowyou have, you know, some new eyes.
Or what's wrong with the
Randy (07:01):
property.
Kad (07:02):
Exactly.
Now everybody's, okay, now the househas been on the market for a month now.
What's wrong with the property?
Aaron (07:08):
Well, that's a good point.
So it's a reduced price and thenthey're going to see the new oven
and the fresh paint, and it'snot going to make sense to them.
It's not going to make sense.
But I love that you said that, Kev,because you know, my, and again, this
is, this is why you do what you do andwe come to you, but my thought would
have been, okay, we need to clear thespace up so I can see myself in it.
Never would have thoughtabout the perception of the
motivation of the seller.
But what a huge aspect when you'reworking through all these things.
Kad (07:30):
Yeah.
Yeah.
No, it's, it's, it's a big deal.
And you know, my goal always is to makesure that we're getting the most money
out of that listing for you, the seller.
And in order to do that, youhave to present the house.
In the in the right manner.
So let me go into that a little
Randy (07:49):
bit.
So what I've noticed over theyears, first of all, your residence
becomes kind of like your baby.
So you've Potentially see yourhome worth more than it's worth.
And sometimes when we talked about thisseason, somebody can remember six months
ago when properties growing really quick.
So they think the price, they shouldbe able to go up on the price versus
(08:09):
their neighbor in their, their houseis better because it's 200 square feet
more and their backyard's prettierand they have a. pink fence or
something, you know, something makesit in their mind better than the other
house that sold for this and such.
So there's a psychology element of that.
So let's get down to what really works.
So I've had over many years working withclients, them wanting to do things like
(08:31):
they're going to tear out their kitchen.
They're going to replace cabinets.
They're going to take the carpet out.
They're going to paint the house.
They're going to redo the master.
All in preparation for selling the home.
And it's kind of interestingtoo, because when I think about
this, a home should be a nest.
So if you're going to make that kindof investment in your home, and you're
thinking about making that investment,first of all, why not enjoy it?
(08:54):
If you're going to do that, let'swork with a financial plan in order
to go ahead and get the home the wayyou would want it in the first place.
I would say I had a dozen people tell me.
You know, they almost don't want tosell it because they've done these
things and now they really likeit, you know, that kind of thing.
So on the one hand, if some of thatstuff needs to be done and you're doing
it for personal enjoyment, do that inadvance of wanting to sell the home.
(09:16):
What I'm concerned about, and I don'tfully understand because I'm not a
realtor, is what is An investmentin the home versus an expense.
So if I go and do certain things,I'm putting money in the home.
Would that raise the value of thehome for me to get my money back?
So what are the things thatthat might be good to do?
And what are things that people are doing,thinking they're adding value to the home?
(09:38):
And really, they might noteven get a return of the extra
capital they put in the home.
Kad (09:42):
Does that make sense?
No, it makes sense.
And I think a lot of mistakesfolks make is that they're okay.
I'm going to put a whole newrenovate the whole kitchen.
And spend 30 grand on there,you're not going to get 30 grand
back from that right renovation.
So the way I approach it is, especiallywhen we're getting ready to list a home,
is the first thing I do is pull the comps.
(10:03):
So if you're looking at all thecomps and like saying, Hey, like this
house is very comparable to yours.
It has completely updated kitchen.
And you know, it's listed at 450.
We'll say 450.
You're.
Right now, if you put 30, 000 intothat kitchen, is that gonna, will you
(10:24):
be able to list it for 450, 000 or?
You know, 480 or 480?
Yeah.
Yeah.
Sure.
So, you
Randy (10:30):
know, I'm, I'm just going to give, uh, CAD some kudos.
So I actually interviewed somebody,he sold a home for, uh, not long ago.
And I said, give me somefeedback on working with CAD.
And by the way, we have a lotof clients that are realtors
and, uh, they're great people.
And, uh, we are not steeringsomebody to any individual realtor.
(10:50):
This is the value of a realtor.
But personally, I'vedone five deals with CAD.
Aaron (10:55):
Yeah.
Randy (10:56):
So I asked this person, I said, what did you value?
And some of the things that were saidwas the, this element where he did an
amazing amount of research and whetherother realtors do that or not, I assume
some of them do, and some of themdon't, he brought like a small book.
And went over the difference in thecomps, the different, the thing.
(11:18):
So you really kind of had an idea ofwhat the value of the property was, um,
from somebody who is just taking a lookat it from a statistical standpoint,
you know, what's the probability ofgetting this prices versus the other.
And some properties, I'm sure it's.
It's easier to do that as some, it'snot so easy and you did a little
Google search, uh, ICAD and, uh, whatwere some of the comments you got?
(11:41):
So we like
Aaron (11:41):
you, we're big fans, but also we're trying to make sure that we're
being prudent and doing our due diligence.
So I, I kind of did a deep divethrough your recommendations online.
Oh, okay.
Kad (11:49):
Just go over the good ones.
Aaron (11:50):
Well, listen, as I'm going through, I'm hearing the same things over and over.
You had a client in SMUR that saidI've used a cat on both sides of the
table as a buyer and a seller and, andthrilled with, you know, sometimes in
your industry, somebody will lean moreone, one side, they're very obvious
that that's either their passion orthey're excited about it, but they want
to have that ambidextrousness again.
(12:12):
But as I was going through all these,it's talking about how patient you were.
How important it was, uh, we talk allthe time about the fifth habit, you know,
Randy (12:19):
could you hurry up?
Aaron (12:22):
But, but again, through this and again, not to, not to belabor
anything, but as people were talkingabout, you know, you taking the time to
find out what they wanted or what wasimportant to get out of their homes.
I'm like, man, I typically would havecome into a conversation thinking that
a realtor is an expense and that'sokay because it's a necessary expense.
But it's also an investment.
(12:43):
And, and, and there's even aprofessional, uh, people that have
done Google reviews and things on you.
I'm like, man, if, if, if people inthe mortgage industry are talking
about CAD and took the time to gowrite a review, yeah, good grief.
Randy (12:56):
You know, I think that's a good point because I think if
you are looking for a realtor, Uh,one of the things you should do
is do a little bit of a deep dive.
And my experience in talking withclients who've worked with different
realtors, some of them have realtors,like we feel about CAD and they're
just, I mean, they're not going to listor, or they're not going to buy with
anybody other than that one person.
(13:17):
And that's a great thing.
Uh, to see, um, but I feel like, youknow, kind of like financial planning
done effectively can really increase the,the, um, the outcome of your investments,
help you protect and grow and, uh,leave your assets in a successful way.
Um, I hope, you know, the, thesame experience that people
(13:38):
would have with a realtor.
And so part of it is listeningto the advice that's being given.
And so the, what I'm hearingyou say, CAD is that.
If, if you want to sell yourhome, you got to declutter it,
declutter,
and then you got to price it.
Right.
And, and if you're working witha realtor, they ought to be able
to bring the numbers to you.
(13:59):
So you make a logical decision.
Yeah.
Kad (14:02):
And not to interrupt, but some folks that when they want to sell their
home, like buy owner, for example,that's the biggest mistake they make is.
And I, I do this to my house.
I think my house is worth morethan, than what the market is.
You know, I think everybodyfeels the same way.
So if anybody goes down that roadwhere they want to list their house,
um, you know, on their own, I highlysuggest get a second, get somebody
(14:25):
else that's not related to you.
That's, you know, outside of the house,get their opinion to say, Hey, these
are the comps you know, my house.
What do you think it's worth?
Yeah.
Aaron (14:34):
Right.
Yeah.
No, that's so good.
Randy, you said deep dive and it mademe think we talked about a kitchen,
but could you talk about some of theother things like swimming pools,
roofs, driveways, that kind of stuff.
We had a client not too long ago.
They were like, we're going tosell the house we're working on it.
It's funny.
They were downsizing, but itwas a much more expensive home,
which I'm sure you see a lot of.
But one of the things we'relike, there, we're going to
(14:55):
go ahead and fill in the pool.
Yeah.
I've
Randy (14:57):
actually had that happen too.
Yeah.
Aaron (14:58):
Yeah.
Yeah.
What are your recommendations whenit comes to, well, we have a pool
and we're going to get a pool.
Should we fill the pool in?
And then conversations aboutthe driveway's cracked, the
roof maybe not so great.
Yeah, how do you know,
Randy (15:08):
right, how do you know what is worth putting the money in and what isn't?
Kad (15:13):
Um, the easiest way to answer that is going to be just pulling what other
houses have sold in the neighborhood.
Once you have that information, then youcan figure out, okay, this one has a pool.
That one doesn't have a pool.
This one has an updated kitchen.
That one has an updated, youknow, backyard kind of thing.
All this landscaping.
Then you've got to
Randy (15:32):
kind of do a cost analysis.
Like, right.
If I did these things,would it actually add value?
Yeah, you might get more for your home,but not more money in your pocket.
Right.
Because all you're doing is getting areturn back and extra capital you put in.
Right.
What are the times in which doing, whatare the things that people can do if
they did invest the money in the homethat would actually potentially make
the home more sellable or more valuable?
Kad (15:53):
Yeah, um, this is funny.
Like I, every year I get at least threeor four clients that call, call me
up and say, Hey, CAD, I'm looking to.
Renovate my kitchen or redo my flooring.
What do you think about this?
Oh, wow.
So a forward thinking attitude,thinking attitude, we're going to
Aaron (16:10):
enjoy it, but as yeah, but in the
Kad (16:12):
future, if I'm going to sell it, I'm going to call a cat and
make sure I'm doing this right.
Kind of thing.
Cause he knows the market and II've had had those conversations,
but yeah, no, the color you'repicking, that's not going to work.
You know, pink and yellowisn't always great or purple.
Yeah,
Randy (16:27):
man,
Kad (16:28):
that's wild.
All
Randy (16:29):
right.
So let's go to the other end.
What if I'm, um, buying a home,what are some of the challenges and
mistakes people make in buying a home?
Kad (16:37):
Yeah.
Uh, buying a home, I would say,and I've, uh, I was a buyer's
agent for a very, very long time.
The number one mistakethey make is they do not.
Pick their lender ahead of time.
Randy (16:48):
Ooh,
Kad (16:49):
that's interesting.
That's huge because what happensis it's it makes the whole process
so stressful And it's funny becausewe're having this conversation.
I have this conversation all mynew clients there are buyers and
some of them most of them listen,but some of them don't and then
when you go Hey cad the house.
We have this great house.
We want to go look at it todayThey fall in love with the all of
(17:09):
a sudden now Now they're rushingto try to get some, they just move
so fast once you're under contract.
So now you're dealing with acontract, but also now you're
dealing with, Oh, I just shoot.
I still need to find a lender,which lender am I going to pick?
So I always tell folks, please,please, please always try to.
figure out what lender you want to usefirst, call, you know, go, go apply
(17:32):
with whoever you want to apply with.
That's fine.
And then from there, once you makethat decision, let's go hunting.
You know, it's interesting that you
Randy (17:38):
say that.
Um, I think one of the things that, uh,teaming up, uh, the real estate side of
things with the financial planner whois forward thinking as well is really
understanding the options you have.
So I often will recommend peoplewho are in that situation to go
ahead and get a home equity line ofcredit on their personal residence.
And say, well, we don'tneed to borrow any money.
(17:59):
No, it's not for you to borrow money,but I'll often have them get the
largest home equity line that they can.
And one of the reasons for that is so thatthey will have the down payment or they'll
have the assets to put down in a home.
Should something come up thatis like a really great deal.
This is not to, you know, bebuying stuff that you don't need.
This is having access tothe equity inside your home.
(18:20):
The other thing that we've done for anumber of clients is asset based lending.
So this is where somebody can already haveit set up with their investment company,
like what we do, and they can actuallyborrow on their investments so that if
they needed to do a deal and they're notwaiting on a mortgage, if something came
up like really quickly and they weren'tproperly prepared, between the home equity
(18:42):
line of credit on the residence and a,and a line of credit on their investments.
Um, they've got ready cash thatthey're already approved on and they
can make a purchase on the home.
And in some cases, when people aregoing through certain transitions, um,
they might need a little time to sellthe home or they might have a, uh, a
deal that like the opportunity is sogreat and not emotionally, but really
(19:03):
logically, it's such a great deal.
So having smart financial planningas a part of your, um, real
estate, um, uh, view is good.
So.
Again, sometimes having a line of credit,uh, I'll even, and have had times if
interest rates were appropriate, I've hadpeople pay off their mortgage with a line
(19:23):
of credit because as they're paying thatdown, they can repopulate the line of
credit or the home equity line of credit.
And the same with, um, asset basedlending, they could use that, pay it off
and it's constantly available to them.
So that's another way.
I'm not as conventional.
but in certain circumstancesthat might work.
But the number one thing isget, if you're going to make, if
(19:45):
you're going to be buying, havethat financial element handled.
Best thing, you know, get the rightlender if you're going to need a mortgage.
If you're not going to need amortgage and you're going to use the
cash from the proceeds of the home,maybe have some asset based lending
or big line of credit on your home.
Does that make sense to you?
Oh yeah,
Kad (20:02):
no, it makes sense.
Yeah, and be prepared that way is,is crucial because I find folks,
especially when you're having toBuy and sell at the same time.
Yeah, that's that can get prettydifficult and not many folks are doing
that contingency contracts nowadaysBecause if it's taking 30 or 40 days
to get a house under contract thatcontingency is not going to work And
Randy (20:23):
I've actually had a client recently within the last few weeks Call me and
ask me would they do that and then Oneof them, um, they had, they're going to
pay, it was almost a cash deal, but theremaining amount they wanted the, um,
seller to hold a mortgage on it and, um,you know, do like a balloon note on it.
So those are kind ofinteresting conversations.
What's another one in buying a homethat is a mistake that people make?
Kad (20:47):
Um, I'm trying to think of another one.
Um, that obviously not having the rightreal estate agent is, um, a big one.
And what I mean by that is not havingsomebody that knows the contracts.
So let me give you a good example of that.
Okay.
So, um, I recently had a, a clientwho, um, they have closing, decided,
(21:08):
Hey, CAD, and I know I'm not goingto go into all the details of it,
but we don't want the home anymore.
So legally they, so they backed out.
So if you don't know the contracts,you don't know the buyer's rights to do
to back, you know, back out of a deal.
Yeah, what does that do now?
Is that gonna leave me upto a lawsuit as a buyer?
(21:29):
Sure.
I mean, but anybody can sueanybody for any reason, right?
Right.
But here's the thing.
So I know the contracts pretty well.
I've done this for a long time.
Back in 2018 the GARC, they'recalled the GARC contracts, the
Georgia real estate contracts.
They made a change On there to where nowa buyer, uh, a seller cannot sue a buyer
(21:53):
for specific performance before that.
You could do it all day long, but soif you don't know the contracts, you
wouldn't know that it's a big deal.
I thought you were about to say they wentout and bought a car the week before,
Randy (22:05):
but that's, well, yeah, that probably would not be a
great idea either doing some majortransaction or something like that.
So there is some misconceptions of whatpeople should and shouldn't do there.
In that period of time,is there anything else?
Like, I think one of the things we'vetalked about over the years, because
CAD and I've got to know each otherpretty well is where, um, people
(22:26):
can't pull the trigger, like theydon't find that perfect property.
And I think sometimes people can't seethrough the paint color or the fact
that they could take a wall down or, youknow, they could redo the landscaping.
So, um, how does that work?
Like what, what, what'syour experience with that?
Kad (22:42):
Yeah.
Yeah.
I mean, just when, whenI'm showing a house.
You have to walk through,Hey, did you notice this?
This could be changed to that.
And a lot of times what I'm seeing isa lot of times that folks don't pull a
trigger and it's because the walls areall dark and you can't really see in
the house, you know, they don't havenatural daylight going in or whatever.
(23:02):
I'm like, listen, guys.
Let's open up the blinds and picturethis with a brighter color, right?
And this is gonna look so much different,
Randy (23:10):
you know, there's there's some software out there Do people ever
do that now where they take the homeand then they do the change of color?
I'm just curious Yeah,
Kad (23:18):
no, they do.
But here's the issue though.
I think a lot of times especiallywhen I'm showing a house It's
hard to change folks minds.
What is that first impression?
Yeah, that first impression.
They're pretty much like,okay, this is not it.
I'm in their mind.
They moved on.
Okay.
So it's hard to like, Hey, letme get this app out real quick.
So I think
Randy (23:37):
one of the things, um, I remember when we were looking for a
property up in North Georgia and wewere using cat and he'd drug us all
over the, all these mountains in that.
And of course this was, um,shortly after COVID at the end of.
That's the kind of the normwhere everything was shut down.
And a lot of people were looking atbuying property and I don't know,
that was kind of a weird time.
(23:58):
But, uh, man, I, I mean, therewere shacks that were people
were asking ridiculous prices.
And if you didn't buy the shack,the shack was gone the next day.
Right?
You know, this is those seasons of time.
So I think really, some of the things asa financial planner who primarily works
in the retirement community and that isconversations I'm having with clients,
(24:20):
And that is, uh, the idea of, are youin a home that if you had an illness or
your spouse had an illness and a mobilitystruggle, are you in the right home?
Because people do fallin love with their home.
But if you've, all your bedroomsare upstairs or you've got a very
difficult navigation of stairs and,And or landscaping or where the
garage is and all this kind of stuff.
(24:41):
You may love it and never want tomove and moving is a pain in the butt.
Let's just admit it.
Nobody wants to do it.
It's not fun.
But, um, what I've found is.
figuring out what's the right thing to do.
So sometimes, and, um, Kat and Ihave even worked on a couple of these
situations where it makes sense to sellthe home and maybe you're going to go
into, um, living in an adult apartmentliving, or you're going to live in
(25:05):
a, an adult community where you are.
You know, going to be able to gettransportation to different things, and
they've got massive amounts of activities.
And I'm not, we'll do this another timemaybe, but we won't name names, but there
are some unbelievable facilities whoare all going after these baby boomer
market, where they are wanting to getout of that real estate responsibility.
(25:27):
And now we've got the, the proceeds from ahome that can help support that lifestyle.
So you don't actually have tosell a home and buy a home.
You might want to sell a homeand you might want to go into
some form of adult living.
And, and the reason I'm spending sometime on that is, as a financial planner
and trying to make smart decisions aboutour money, smart decisions in buying a
(25:50):
home, smart decisions in selling a home.
One of the things we have to lookat is what are the next 10 or 20
years of my life looking like.
And what, if you don't makesome of these decisions and.
Thoughtfully consider whatyour real circumstance are.
Real, um, diagnostic dive into whereare you and what you would really want.
(26:10):
And you end up in a circumstance whereyou're in a residence that doesn't
fit you, if you have an illness, thensomebody else is going to be making
that decision or whatever's available.
So it's much better to be thinking about,um, your home as a nest and getting the
value out of that and being in the righthome for the stage of life you are.
You know, people upgrade toa home in their late forties.
(26:33):
They typically buy their biggest homein their forties in that period of time.
And then when people start downsizing,they really need some guidance.
And one of the struggles Ithink a lot of us have had.
Is we're selling this, um,home and it might even be a
McMansion and we're downsizing.
We're spending the same money becausethat's, that's the market demand, right?
(26:53):
What do people want?
Low maintenance, you know, uh, freedomto do the stuff that they want to do.
And, you know, actuallyCAD helped me do that.
And, um.
In 2016, I think it was, and Idownsized from a much bigger home
and with a lot of property andlandscaping issues and all that.
And I tell you honestly, Kad, I hadbuyer's remorse for about three months.
(27:16):
I met my neighbors, fantasticneighbors, you know, and also the
things that the community had to offer.
We're so much better than where Iwas before, but it took me a little
bit of time to get to do that.
So let's go back and doa little quick recap.
Um, mistakes that people make.
Um, and how, so?
First of all, a home, uh, canbe an investment, but part
(27:38):
of it is always an expense.
Even if your home's paid for,and that's another episode.
Maybe do I pay my home off or not?
But the property taxes, the insurance.
The upkeep and the maintenance thathas to be taken into consideration.
Home's always an expense,
Aaron (27:52):
but I wanted to ask, I wanted to tap into that.
And I love all of this becauseI feel like it's the truth about
any professional you work with.
A lot of times we don'tknow what we don't know.
Yeah,
Randy, I was thinking back.
We had a client not too long ago.
That they were making that move, theywere empty nesters and it wasn't, it
was a little bit of a downsizing, butmore they were kind of moving areas and
stuff and uh, uh, Randy just offhandedlysaid, I was for sure over Marietta,
(28:15):
y'all would go move off the golf courseand they're like, Oh no, we, you know,
we were worried about mobility later inlife, you know, the knees and everything.
Cause they had had a replacement kneesurgery and uh, Randy goes, Oh, okay.
I, I, I was for sure that the, theelevator would have got you guys.
And they were like, Elevators?
So yeah, yeah, yeah.
Those houses over there, they'vegot, they've got elevators.
But if you don't want that, they'relike, we didn't know they had elevators.
(28:37):
And then they went over there and Ithink they ended up doing like a short
term lease to find out if elevatorliving on the golf course was for them.
But if you don't know what you don'tknow and you don't have somebody
to bounce off and sound with.
So that's the question I'm leading into.
You mentioned people will call youand say, and, and, and, and I know
this is true because I did it.
(28:57):
The wife's renovating the kitchen.
I want her to be happy.
Our kids are, are, are growing up.
We're doing these things, you know,um, you and I have the relationship
professionally where I can do that.
Yeah.
What is the appropriate way to enter into a conversation with
a professional respecting of theirtime, respecting of their knowledge?
Should you, how do youbroach that conversation?
(29:18):
How do you appropriately thank someone?
Because, um, you know, the old plumbersjoke, you fixed it by banging on the pipe.
Yeah.
Yeah, I've got a bill and it'sthis much to bang on the pipe.
It's like, no, no, no, no.
The bill is for how much it took me in theway of knowledge and years and expertise
to know where to bang on the pipe.
Yeah.
How was an interaction likethat appropriate if they're not
buying or selling in that moment?
Kad (29:38):
Yeah.
Um, well I guess it just depends onthe agent you're talking to, right.
Um, for me, um, I always lookfor, and I love the opportunity to
talk to anybody about real estate.
That's just the way I am.
Um.
Buying now buying 10,20 years down the road.
Doesn't matter to me.
I just love the conversation.
So if somebody just calls me up andsay, Hey, cad, I'm looking to do
(30:01):
this and I don't even know them.
How'd you hear about me?
Oh, humans.
I'm like, okay, well let's talk.
Yeah, let's, and I'll, I'll givehim some input on, on what to do.
So it's
Aaron (30:08):
connection.
It's networking.
That's not a bother.
You don't mind.
No, no, just be respectful.
Kad (30:13):
Yeah, a hundred percent.
No, I enjoy those conversations.
Bring it on.
Randy (30:17):
Sorry, Randy.
I just, I mean, it's a, it's a good thing.
It's kind of like, uh, some ofwhat we do sharing in the public.
I feel like there are people who, uh,take advice from financial planners.
They go do it themselves.
I have no problem with that.
Um, we're talking with CAD, but there'sa lot of great realtors out there.
There, you know, maybe not as good lookingas CAD, but there's a lot of great ones.
What we want to get from CAD, we'rekind of doing what you're asking.
(30:39):
We're actually borrowing from CADand we're saying, what are the
things that people need to do?
And this would be true probably ofany realtor and CAD will probably
think of five more things in anyarea after we're done with that.
And so would another realtor.
But the point would be, whatdo we need to do in preparing?
You know, first of all, I'm, I'msuggesting, um, think about your.
(31:00):
The real estate thatyou're in, is it ideal?
Another one, which, uh, I won'tgo down this rabbit hole too far,
but some people, um, they don'trealize what their home's worth.
They don't realize that they have a homethat's worth a lot of money, but it's 30
years old and it's going to have all thesethings that are going to come up with.
It's probably not as energy efficient.
(31:22):
It's probably got a lot of things,but they're familiar with it.
So whenever we go to make achange, whether it's real estate
or something like that, there's.
What I call FUD, right?
Fear, uncertainty, and distress.
So it doesn't feel good to do it.
But the point I'm makingis be in the right nest.
If it's going to be an expense, bespending the money and the right property.
(31:43):
And if you think before you sellyour home, somewhere down the
road, you're going to updatethe kitchen and update that.
Work with your financial plannerand Enjoy it now, don't wait,
you know, and fix your home up.
And then when you go to sell you, man,now I really like it, you know, go
ahead and really like it now make thatinvestment and then figure out what's
(32:04):
the right access to capital that'sefficient and effective, like home equity
line of credit, having that availableto do things, having a line of credit
on your assets or asset based lending,we could talk more about that one day,
but now let's go into a summary realquick of, all right, I'm going to.
Um, sell a home, declutterthat home, right?
(32:25):
Get rid of all the stuff that youlike that nobody else wants to see.
Yeah.
Right.
Kad (32:30):
What else?
If anybody remembers anything about thispodcast and what I'm suggesting, it's
going to be get ready for the parade.
Get ready for the parade.
I like that a lot.
It's such a big deal.
So really that firstweek or two is the deal.
It's crucial.
That is the deal.
It is very crucial because if afterthat, um, two, one of two things happen.
If you're not getting showings after that.
(32:51):
One of two things.
Either one pricing or condition.
One of those two things.
The problem with conditionis it takes a while to fix.
Yeah.
So it's not quick.
So then, okay.
Now you have to reduce price.
Randy (33:04):
You know, um, somebody I referred you to, um, I remember when you went.
Through that, uh, I keep thinking we'regoing to put a sign out for this person.
And man, you had them do a lot ofstuff before you had them do that.
Like, because I didn't know thatyou called it the parade, but you
explained, I remember listening inand you said that first week or two.
(33:25):
Is the deal that that's whypricing is important and why
decluttering is important.
And this particular person,man, they got rid of everything.
I mean, they, now they ended up with threestorage units, but they did what he said.
I mean, they got rid of everythingand the house was pristine when it
went on the market and they got topdollar for it as a result of it.
So the other thing is, I think, um,no matter who the realtor is, listen
(33:49):
to them, you're paying for advice.
Take their advice.
Don't, don't think youknow more than they do.
You know, and realize that realestate is an emotional, uh,
thing if it's your residence.
Okay.
Selling a home.
The number one thing I heard you sayis get the lending or the financing
handled in advance buying the home.
Yes.
For buying the home.
Right.
What'd I say?
(34:09):
Selling, selling, buyingand choosing between
Aaron (34:12):
offers has financing ever been the final What you
choose to go on a contract with
Kad (34:18):
yes.
Um, so as a, as a seller,you're talking about the seller
side and picking an offer.
Yes.
If you have two identical offers,identical offers, there's so much to
look into to making sure that the set myseller is protected and that financing
contingency has it all right there.
I thought it was lender.
You're picking the lineswhen you said that.
Yeah.
Well, what lender you'repicking is a big deal.
(34:39):
Yeah.
Okay.
So if I have, if somebody comesto me and says, Hey, here's, uh,
we have, uh, here's an offer.
I have another offer here for yourhouse and I'm looking at big bank.
Versus a local lender.
I'm going to go with that locallender 100 percent of the time.
Wow.
That's because I promise I could tellyou all kinds of stories about big, big
(35:01):
banks and how we don't want to go to jail.
No, we don't want to go to jail, but
Aaron (35:05):
it's, if it's the local, it's probably already somebody that's
familiar with the area and stuff too.
Exactly.
Kad (35:10):
I'm familiar with the area.
Knows the local appraisers very welland can get things done pretty quickly.
Awesome.
Aaron (35:16):
I don't want to rabbit trail off too much, but in light of that, we've
got a mutual client, a financial planningclient of ours that you've helped.
They were headed, well, theywent to central Florida.
I want to be carefulbecause it's a small world.
They went to central Floridabecause that was the area they
wanted to be close to the beach.
They had a lot of reasons for goingand it lasted less than two years.
And then they're back here.
Yeah.
So when somebody is thinking about if it's, if it's, Hey, it's not just
(35:41):
the home we're thinking about movingto a new community or to a destination,
what kind of wisdom do you try to impartor help somebody to mentally prepare
for that kind of a, of a transition?
Kad (35:50):
So when they're moving like out of state,
Aaron (35:52):
out of state, or even like, I mean, we have a lot of people that,
man, we grew up in this area and westayed cause our, our kids friends were
here and the ball team was here and nowwe want to go to Alpharetta or now we
want to move up to a flowery branch or.
Kad (36:06):
Yeah.
So it's funny because I, I get, um, atleast one or two phone calls every year
from a client saying, Hey, uh, I have afriend of mine that's moving out of state
or a friend of mine moving in state.
And, uh, who do, who do we, who do wecall if I'm not the local agent here, you
know, whatever, they're moving up to likeSouth Georgia or something like that.
(36:27):
It'd be
down to South Georgia.
So
you're both wrong.
It would be south to southGeorgia, not up or down.
Oh my goodness.
All right.
Hit me with it.
Um, But I have those conversations folks where I I'm
networked around the country.
Sure, so I can make those phone callssaying hey, I have and I did this
(36:49):
recently over in North Carolina.
I had a client moving to NorthCarolina and I because of my
networking I was able to Get a listof really good agents Um, interview
them and they're at down for them.
And then from there, here you go.
Here's the top three that I could findyou and you get, and the feedback I get.
(37:11):
Every time is excellent.
Awesome.
Randy (37:13):
Well, you know, wrapping up and we really are running out of time now.
I just want to say, Kat, I appreciate you.
Uh, again, we've got a lot of realestate clients who are great folks
in that you took the time to do this.
And one of the reasons I wantedto bring you in is the number
of deals I've done with Kat.
And I know what that is.
Uh, and I think that, um, one ofthe struggles I've had in dealing
(37:34):
with Kat is taking his advicebecause I think I know everything.
And Kat has been able to prove to me.
You know, that I don't know everything,he's not the only one that's proved that,
but he was one of the ones, but I mean,I, I'm really, um, I appreciate the value
add that you do, and I think the otherthing, uh, you made a comment, and I
think this is important, and this shouldbe the case with anybody you deal with.
(37:57):
CAD takes a very long term approach anda realtor who's worth their salt should.
So you might be giving themadvice now, and the deal might be
five or 10 years down the road.
We're trying to do the same thing withour financial planning practice, which
is, uh, Helping people understandthat their home they're in right now
might be perfect and ideal forever.
But if you notice that there's somestruggles that people are going to
(38:17):
have due to mobility or cognitiveissues in that, really, uh, we have
a stewardship responsibility tohelp a client think that through.
And we couldn't do it without, you know,the right kind of, um, uh, supporting.
Other professionals, the CPA, the realtor,and attorney and that, and bringing the
family in a lot of times to do this.
(38:37):
So, uh, get good, uh, advice,uh, listen to the advice.
If you're uncomfortable with it, outof the mouth of two or more witnesses,
let this stuff be established.
And Aaron, why don't youwrap us up and, uh No,
Aaron (38:50):
absolutely.
I, this has been fantastic.
And often the borrowed phrasethat we say on the podcast
cat is, is seek wise counsel.
And I think that's whatthis comes back around to.
As always, we'd love to hearfrom you guys, your thoughts on
this episode, this topic, uh, atconnect at your retirement coach.
com CAD, where can peopleget in touch with you?
Kad (39:07):
The best way is going to be just throw, shoot me an email.
Okay.
Yeah.
K a D CAD.
Aaron (39:15):
Fantastic.
Fantastic.
So in a quick recap, listen, yourhome is going to be an expense.
The investment side is up to you.
We want you to seek wise counsel.
We want you to make sure that instead ofafterwards, Hey, I remodeled the kitchen.
What is this going to do?
Seek those professionals that canhelp you walk through those big
expenditures, like the pool, like thekitchen, like the bathroom, everybody
that retires pretty much two things.
(39:35):
Yeah.
Yeah.
Randy (39:36):
Get a new kitchen and, and a new master bath.
I don't know why they do it, but I feellike if we ever really wanted to meet
the people that we need, I'm retiring,I'm going to need a new master bath
and I'm going to upgrade the kitchen.
Aaron (39:48):
Roll over master baths and kitchen.
Anybody else?
Oh, you guys had come over.
So, uh, seriously want you to takethose things into account beforehand.
Um, but to all of you that havebeen a part of our audience, you're
coachable and we appreciate thatand we want you to stay coachable.
We hope you enjoyed today's show.
But you may have questions for ourcoaches and they can be emailed at
connect at your retirement coach.
(40:09):
com.
If you know someone thatneeds to hear this episode,
we encourage you to share it.
As a reminder, the content of thispodcast is for educational and
entertainment purposes only andshould not be construed as advice.
On behalf of our coaches, we wanna thankyou for listening and for being coachable.
Devin (40:24):
Yeoman's Consulting Group, a registered investment advisor YouTube
channel based in Marietta, Georgia.
We strive to provide comprehensivewealth management services for
every stage of the journey.
This platform is solely for informationalpurposes, and it's not offering advisory
services or sales of securities.
Investing involves risk andpossible loss of principal Capital.
Comments by viewers or recognitions areno guarantee of future investment outcomes
(40:45):
and do not ensure that a viewer will.
Experience a higher levelof performance or results.
Public comments posted on this siteare not selected, amended, deleted,
or sorted in any way, if applicable.
Certain editing of personalidentifiable information and
misinformation may be deleted.
The opinions expressed herein are asof the date of publication and are
subject to revision due to changesin the market or economic conditions,
and may not necessarily come to pass.
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