The Accunet Mortgage & Realty Show 5-4-25

Episode Transcript

Speaker 1 (00:00):
The following program. The ENT , mortgage and
Realty Show is paid for in fullby ENT mortgage, LLC and equal
housing lender consumeraccess.org number 2 5 5 3 6 8.
The advice and opinionsexpressed during the Academic
Mortgage and Realty Show aresolely that at the hosts and
guests of ENT mortgage, LLC,and not WTMJ or Good Karma
Brands.

Speaker 2 (00:21):
Welcome to the ACU Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Anette Mortgage and
Realty. And now, here's BrianWicker and Tim Holdman.

Speaker 1 (00:36):
Welcome to the Anette Mortgage and Realty
Show. I'm Brian Wicker,licensed real estate broker
with a Cadet Realty Advisorsand also the majority owner of
a cadet mortgage. Where am myindividual NMLS ID number is 2
5 9 6 1 0. And I'm here todayalong with my son-in-law, Tim
Holdman, one of our awesomesenior loan consultants at a
cadet mortgage. And hisindividual NMLS ID is 1 5 9 3 1

(00:58):
4 6. I remember. You can grab apodcast of today's show
anywhere you normally get yourpodcast. So Tim, thanks for ,
uh, filling in on the showtoday. I appreciate that.

Speaker 3 (01:07):
Happy to be here, Brian , as always.

Speaker 1 (01:09):
So we had a , a a week chalk full of economic
news. Uh, one of the nothingburgers that might have , uh,
influenced mortgage rates wasthe gross domestic product
number that came out on , uh,Wednesday that showed the
economy in the US shrank by0.3% in the first three months.
Mm-hmm . But thatwas all because , uh, consumers

(01:30):
and businesses wereaccelerating their purchases of
foreign goods right ahead ofthe tariffs. And so

Speaker 3 (01:36):
The market that's to jump in there Yeah.

Speaker 1 (01:38):
Yeah. To get in before the price increases. And
it turns out that that tradeimbalance , uh, actually
subtracts from GDP , I didn'trealize that before. Right .
And so the market figured thatout and went, eh, no big deal
on that.

Speaker 3 (01:48):
Nothing. Yep . And

Speaker 1 (01:50):
Not nothing burger.
We also got the Fed's preferredinflation measurement , uh, for
the month of , um, April. And ,uh, that's the personal
consumptions expenditure index,PCE. And that also came in
pretty much as expected. So, eh, nothing happened there. Yeah
. And then on Friday though, wegot the jobs report. And the
big question with the monthlyjobs report for April was

(02:13):
whether or not the tariff andall the unrest along with the
federal job reductions, hey,was that gonna show a material
weakening in , uh, the jobmarket? And what did the job
market tell us, Tim?

Speaker 3 (02:24):
Uh, it turns out the economy gained about 47,000
more jobs , uh, last month thanwhat was expected. Uh , so it
seems that all that , uh, worrywas unfounded, at least in
terms of last month's job , uh,jobs added. So there were some
revisions from previous monthswhere we subtracted 58,000 jobs

(02:46):
from prior month results. Butgenerally there isn't as much
of a reaction to the mortgagerate market from those
revisions compared to the mostrecent data that comes out, you
know, from the jobs report . Sooverall, that was relatively
strong and on economic news,which cause mortgage rates
unfortunately to , uh, worsenslightly on Friday as a result.
Yeah.

Speaker 1 (03:06):
And let's emphasize the word slightly. Uh , yeah,

Speaker 3 (03:08):
Exactly.

Speaker 1 (03:09):
Um , you could still fetch a 6.875% rate , uh, after
all that. Uh, with an a PR of6.9, that's on a 30 year fixed
rate , uh, in the loan amountof $250,000 with 25% down
payment and all the otherRight. Stuff, you just would've
had to pay , uh, $355 inpoints. So about $1,900 in loan

(03:31):
costs to get that 6.875 rate,that's up maybe about $800 from
last week. And the otheralternative is you could have
gone with the 6.99 rate mm-hmm . And then only
had , uh, loan costs. Uh, andthis is including if we needed
an appraisal of 6 74 a PR , andthat is 7.00. Yeah. And you
know what the monthly paymentdifference is , uh, between
those two at 250,000 bucks, $19and 25 cents,

Speaker 3 (03:55):
$19 a month. Yep .
And that's , uh, really worth ,uh, I think highlighting Brian
. 'cause it's like we do spenda lot of time talking about
rates, which makes sense 'causewe're mortgage bankers. Right.
But I think , um, the thing tothe home shopper or potential
home shopper out there is like,what does this do to my monthly
payment? Right? It's like weall care about rates, but the
reality is, it's like thething, the reason the rate

(04:16):
matters is because thatinfluences your monthly payment
and ongoing expense of owningthe home and rates getting a
little bit better or a littlebit worse for that matter if
the real life change is $19 amonth in your budget. Yeah.
That isn't enough to move theneedle in either direction, I
think for 99% of the people outthere. Right. It's like you're
gonna wanna buy a houseregardless of whether you're

(04:36):
gonna pay more or less $19 amonth. It's like, okay, skip a
couple cups of coffee and , andyou're there, you know? Well ,
even

Speaker 1 (04:44):
When rates, you know, earlier this month ticked
up to almost 7.5%, you know,when the everything was up in
the air. Right. You know,that's, that's still not that ,
uh, you know, humongous a adifference in monthly payment.
Yeah . Lemme see if I cancalculate that real quick here.
Uh , so this is for a half apercent , uh, difference in the

(05:05):
rate. So comparing 6, 8, 7, 5to 7 3 7 5 , that's 84 bucks a
month. No . You know, that'sstill not nice. Not bad, right
? You'd rather not to have it,but it's not that big a deal.
So , um, the other thing thatwe have coming up this coming
week , uh, we've got the fedmeeting and I had a client ask
me, Tim, if I thought that,'cause he read, saw some

(05:25):
article online saying the Fedmight cut rates by a half a
percent. Oh .

Speaker 3 (05:30):
Oh my

Speaker 1 (05:30):
Goodness. I have not seen that. So I jumped on the ,
uh, fed Funds futures marketand rest assured there is a 95%
probability that the Fed isgonna do absolutely nothing
when they mm-hmm . Meet this week and only a 5%
, uh, probability of even aquarter point rate cut.

Speaker 3 (05:47):
Yeah. Much less a half percent. Yeah.

Speaker 1 (05:48):
Yeah. Yeah. So that's probably not , uh,
anything to be concerned about.
And , and you know, when, whenthe Fed does eventually I've
read that there are somepredictions, Hey, maybe two
rate cuts in the Fed , uh, bythe Fed before the end of the
year. Remember that's on thesuper short end overnight , uh,
interest rates. Yeah.

Speaker 3 (06:05):
The friendly reminder to the listeners, the
Fed doesn't control long-termmortgage rates and mortgage
rates react more to what theexpectation is that the Fed is
going to do. They react more tothat than what the Fed actually
does. Right. So the expectationof a future rate cut , uh, from
the Fed will actually causemortgage rates to, to go down
more than the actual change. So

Speaker 1 (06:25):
Yeah. Alright. There you have it. When we come back
, um, I've got someinteresting, well , I've got
Fannie Mae's prediction onwhere rates are going the rest
of the year. And in 2026 we'vegot some stories of , uh, home
buyers and sellers, and thenalso , uh, a look at the
demographics of buyers andsellers. We'll get to that
right after this. You arelistening to the Academic
Mortgage and Realty Show on AMsix 20 WTMJ

Speaker 2 (06:51):
Home buying advice from the guys who know it best.
This is the ACU Net Mortgageand Realty Show with Brian
Wicker on WTMJ.

Speaker 1 (07:00):
Welcome back and thanks again for tuning in
today. I'm Brian Wicker, theelder. That's , uh, Tim Holden
, senior Loan Consultant overthere. And , uh, Tim, why don't
we just touch on the , uh,national Association of
Realtors came out with theirdemographics for home buyers in
2024. And so my , uh, questionfor you is, which of the

(07:21):
following demographics , uh,made up the most the , which
was the biggest group of homebuyers in 2024? Would it be
millennials who were defined asfolks between the ages of 26
and 44? Would it be Gen Xerswho are aged between 45 and 59,
or boomers who are aged 60 to78? Which one was the biggest

(07:42):
cohort of home buyers in 24?

Speaker 3 (07:44):
Hmm . You know , uh, I'm gonna take a , a little bit
of a gamble 'cause themillennial in me wants to say
that first time home buyerswould be the biggest segment of
people buying houses. AKAmillennials most likely. But
I'm gonna probably say boomers.

Speaker 1 (08:01):
That is correct. Uh, boomers made up a whopping 42%
of buyers. According to theNational Association of
Realtors, millennials were thenext largest , uh, segment at
29% of buyers. And then GenXers, again, age 45 to 59,
comprised 24% of buyers. GenZers who are 18 to 25. Uh, they

(08:25):
made up just 3% of buyers.
There you go. Wow. And a silentgeneration. So

Speaker 3 (08:29):
Leading by a wide margin,

Speaker 1 (08:31):
By leading by a wide margin. Yeah . Uh , also, NAR
uh, reported that 24% of allbuyers were first timers in
2024, down significantly from23 when it was almost a third
at 32%. However, the mostrecent numbers from NAR for the
month of March showed thatfirst time buyers once again
made up 32% of buyers. Here'sanother fun fact. Uh , uh,

(08:55):
marital status. Um, whatpercent do you think , uh, of
buyers were married? Do youthink it's over or under 50%?

Speaker 3 (09:04):
I'll go slightly over 50%.

Speaker 1 (09:07):
That's alright .
You're, you're on a , you're ona roll. 62%. Okay . Of all
buyers, were married couples,what do you think is the next
largest demographic regardingmarital status and think gender
in combination? So, you know,they're not married, so it's
single something. Oh . Um, orunmarried. It could be
unmarried couples. That's

Speaker 3 (09:24):
The other unmarried , uh, female. Second.

Speaker 1 (09:26):
Okay. That's right.
Single females made up 20% ofbuyers. 8% were single males.
And this surprised me 'cause Ithink we see this a fair
amount. Only 6% were unmarriedcouples. It seems like we get a
lot of unmarried couples. But

Speaker 3 (09:39):
Yeah . Personal experience , I get a lot of,
you know, either , uh, seriousrelationships or maybe engaged,
you know, a lot of that. Yeah .
So that's , uh, wow , that'ssurprising. It's only 6%. Hmm .

Speaker 1 (09:49):
Interesting. Last , uh, a little bit of nugget ,
uh, here on , uh, what aboutmortgages since that's the
business we're in? Well, 90,not surprisingly, 94% of
millennials finance their homepurchase with a , a mortgage
compared to , uh, 61% for whatthey're calling younger
boomers. So those age, 60 to69, 60 1% of those younger

(10:11):
boomers did get mortgages. 49%of the older boomers, those
aged 70 to 78 got mortgages. Sothat's good for us. Even the
boomers need mortgages.
Absolutely. And in terms ofdown payment, the median down
payment for millennials was12%. Gen Xers, 17%. And , uh,
for boomers, 33%. 'causeapparently the older you are,
the more money you've got toput down theoretically.

Speaker 3 (10:32):
Right.

Speaker 1 (10:34):
And this won't go ahead.

Speaker 3 (10:35):
Well, I think the reason this matters to our
listeners, right, is , I mean,I I talk to a lot of more first
time home buyers generally inthe millennial age range,
right? It's like, hey, you gota lot of competition out there.
'cause not only do you havecompetition from other people
in your own, you know, agerange and, and maybe
socioeconomic bracket, but youhave this whole other pool of
people called boomers who aremaybe looking to downsize,

(10:57):
right? Or maybe looking to movecloser to the grandkids and all
that stuff. So you're, you'recompeting against a lot of
people. And unfortunately theboomers, just as your down
payment statistics just flushedout, they probably have more
money to put down and canpresent themselves as stronger
buyers to the sellers. Right?
So I was just on a call earlierFriday morning with a , uh,

(11:19):
to your point. It was a, a a not married couple, but
looking to buy together. And,you know, I said, Hey, pre-pro
you kind of, the easiest partof my job, to be quite honest
with you, where I provide, Ithink my most value and
expertise is how do we make youthe most attractive offer
against all the other people,millennial competing on , and

(11:43):
everyone else that is alsotrying to buy the house that
you wanna buy. That's kind ofthe name of the game in this
market. Pre-approving, supereasy, super simple. You can get
a pre-approval anywhere.
Anywhere, right? It's like,that's not why you go with me
or why you go with Acue . Atthe end of the day, it's, you
want the house pre-approving agreat step in the process
doesn't really mean that muchat the end of the

Speaker 1 (12:03):
Day. What can we do to polish that pre-approval and
help you, you know, tweak youroffer to get you to the winner
circle? Oh , many , so manythings.

Speaker 3 (12:12):
Yep . So many things . I mean, we can talk about it
next segment too. 'cause I canthink of at least six or seven
things off the top of my head.
But

Speaker 1 (12:19):
alright , well let's come back to that.
Uh , I've got a couple ofstories of first time buyers
looking in that, what I'll callthe heavily trafficked area in
southeast Wisconsin. Two 50 tothree 50 price range. And we
will dovetail that with what wecan do to help 'em . You are
listening to the Accu Mortgageand Realty Show on Wisconsin's
radio station. AM six 20 WTMJ,

Speaker 2 (12:40):
Getting you into the home of your dreams. Here's
more of the Accu Net Mortgageand Realty Show with Brian . We
on WTMJ.

Speaker 1 (12:48):
Thanks again for hanging out with us and uh,
remember you can get a copy oftoday's show anywhere you
normally get your podcast. So ,uh, Tim, I , I've had a couple
of , uh, buyers last weeklooking in that heart of the
market, you know, like two 50to maybe as high as three 50 in
one of their cases. And , uh,one of the buyers is looking in

(13:10):
the ultra hot , uh, Wawa TOAmarket Mm sure . In that price
range. Lots of competition. Yep. And , uh, they had written a
couple of weeks ago on aproperty listed at, I think it
was , um, two 40. And they did, we kind of cajoled them up to
2 55, you know, but that's allthe higher they wanted to go.

(13:30):
Sure . And , uh, did not get itright. Mm-hmm . Uh , so now
they, there was a house listedfor right around 300 and , uh,
it did not sell on the firstweekend.

Speaker 3 (13:43):
Whoa. Okay.

Speaker 1 (13:44):
So that's, so it's like , oh , okay. That is. And

Speaker 3 (13:47):
So yeah . That's surprising in and of itself,
.

Speaker 1 (13:49):
Right? Right. So, so they ended up writing an offer
then early last week , um,under the asking price. Right.
Okay . Because , you know, hey,that's a sign you didn't sell
on the first weekend. Yeah.
And, and then I, I ended uptalking to the buyer's agent at
the end of the week and guesswhat? They did not get the
offer. 'cause somebody elsecame in above that. Well ,

Speaker 3 (14:10):
Swooped in. Yeah.

Speaker 1 (14:11):
Yep . Somebody else swooped in, but there was also
this issue of sagging in thefloor, like towards the middle
of the house.

Speaker 3 (14:19):
Okay.

Speaker 1 (14:19):
And it's like, ah , okay. You know, maybe you have
a cute remodeled kitchen orwhatever, but if you've got a
sagging floor

Speaker 3 (14:27):
That is structural.
Yeah.

Speaker 1 (14:29):
Right. And then, you know, the , you gotta pay for
the inspections. That's theweird thing about real estate
is you as the buyer, end uppaying for the inspections to
find out, well , what's reallygoing on with that?

Speaker 3 (14:38):
You know? Yeah. Is is this actually a problem,
?

Speaker 1 (14:40):
Yeah. Is it gonna keep sagging? Is it gonna fall
in or whatever? And and sothey, I think wisely decided
not to, you know, up their anteSure . On that particular
house, but they're back at itand now they're

Speaker 3 (14:54):
Yeah . It's a learning experience. They're ,
they're learning what it'sgonna take. And , uh, you know,
to your point with the firstproperty, it's like, I think
they will reassess each time anew home comes along of like,
okay, well for this particularhome, maybe without a sagging
floor Right. What are wewilling to do and what do we
know needs to be done to, to bein contention. Right. Right .

(15:16):
So they're , you know , it'slearning each time on , alright
, you know, what , what do we,what are we willing to do?
What's it gonna take to, to getinto the winner circle? Yeah.

Speaker 1 (15:24):
It iterative process. And the hard part for
them is they do have a littlebit more than 5% down, but they
can't really get to 10% down.
Sure . And , uh, you know, sothey don't have a lot of
flexibility. Yeah . You know,when it comes to offering , uh,
some appraisal a gap. Right.
Yeah . Because that's speakingof things that, that , uh, home

(15:45):
buyers can do. And I've got aninteresting statistic to share
later in the show on this. Youknow, we know that in
southeastern Wisconsin, a lotof people are paying over the
asking price. Yeah. You know ,it's about 50% this time of
year , uh, seasonally. And ,uh, and so then the question
is, well, hey, if I'm payingover the asking price, you
know, can I then give thatseller some assurance that I'll

(16:09):
still pay you what I'moffering?

Speaker 3 (16:10):
Yeah. Even if the appraisal comes in less than
the offer

Speaker 1 (16:14):
Price. Right. And so you can name your, how much
wiggle room or gap am I willingto absorb as the buyer? Yeah.
Well, so in the case of a firsttime home buyer, the minimum
down payment is 3%. Right. Soif you're sitting there at, you
know, 5% down, well you canoffer that extra 2% of wiggle
room, you know,

Speaker 3 (16:34):
Well, the key is you can offer that 2% of wiggle
room without actually having tobring any of your own extra
funds to closing. Right ?

Speaker 1 (16:40):
Correct.

Speaker 3 (16:41):
Because we can absorb that gap on the
financing side. They , theytechnically could offer more
than 2% wiggle room. Right .
But then we'd have to go ineyes wide open. Right. That, in
that worst case scenario, ifthat appraisal comes in low,
but within the gap that youoffered, there's more risk that
you would have to bring extramoney out of pocket to cover
the difference as opposed towhat we all prefer, which is,

(17:03):
Hey, let's cover the gap on themortgage side of things. 'cause
slightly higher monthly paymentis way more , uh, you know,
doable for most of thetolerable bringing Yeah.
Tolerable. Thank you for, thancompared to bringing several
thousand dollars more of yourown money. Yeah .

Speaker 1 (17:17):
Five or $10,000 more. And so that's a , that's
a misconception that we dispelall the time. Yeah . I was
talking with , uh, Jaime Surro, one of our other , um, senior
loan consultants, and he wastelling me about a buyer he's
working with that has 10% downto put mm-hmm .
And so there's an example of,wow, okay, if you're looking
for a a $300,000 property, youcould easily give them $15,000

(17:41):
Yeah . Of appraisal gap, youknow, to say, Hey, I'll still
buy it even if it comes in$15,000 less than what we agree
upon. Right. Um, so that's,that's one of the things that
we often do. What's anotherthing that we do to help
strengthen people's offers,Tim, right off the top of your
head.

Speaker 3 (17:57):
Well, the , the , the easiest one to accomplish
is to get them a fully verifiedrock solid pre-approval. Right.
Because if they send us alltheir income and asset
documents, we put a $2,000lender guarantee behind our
pre-approval that says if aseller accepts the offer based
on these terms, and if weactually made a mistake in our
review and can't get that loanapproved in the game plan that

(18:19):
we lay out in the pre-approval,then we would pay out a $2,000
guarantee. Uh , they can eitherstructure it, a thousand goes
to each party by and seller, orwe can say, Hey, we'll send all
$2,000 to the seller , uh, asan apology for our mistake. Now
the idea is not to pay out onthat guarantee No . Or make a
mistake. The idea is that weare saying, Hey, this loan is
gonna happen. Absolutely. Withour full vote of confidence

(18:41):
behind it. Shout out to Jaime,by the way, a happy work
anniversary on this pastFriday. I think he had , uh, 23
years now at Akin

Speaker 1 (18:49):
Mortgage. Three years. Yes sir .

Speaker 3 (18:50):
So happy anniversary to Jaime.

Speaker 1 (18:52):
Alright , when we come back, let's talk about
more ways that we help buyers ,uh, structure their, their ,
uh, offers to win. And thenalso got some really
interesting statistics, Ithink, on what happens when
people do offer over the askingprice. Do the appraisals come
in low? Much of the time. We'llget to that after tuned tuned,

Speaker 3 (19:10):
You'll find out.

Speaker 1 (19:11):
Yeah , that's right.
Right. Now it's time to turn itover to the WTMG Breaking News
Center.

Speaker 2 (19:17):
Don't break the bank to get into a house. Back to
the ACU End Mortgage and RealtyShow with Brian Wicker on WTMJ.

Speaker 1 (19:24):
Welcome back. I'm Brian Wicker, the majority
owner of ACU Mortgage and thelicensed real estate broker.
That's Tim Holdman over there.
Senior loan consultant with ACUMortgage. And we're talking
about, hey, what are some ofthe ways we help , uh, buyers
write compelling offers?
Another thing we should mentionis we will always run a
property address. Uh, if the ,if the buyer and the buyer's

(19:45):
agent give us the opportunity ,uh, Hey, I'm gonna write this
offer on 1, 2, 3, 4 MainStreet. Hey, let's put that
through Fannie Mae and FreddieMac's automated underwriting
system to see if we get anappraisal waiver. Yeah .
Because that is awesome. Thenwe, we highlight that on the
pre-approval letter and we sayfor this property, no appraisal
is needed. Yeah.

Speaker 3 (20:03):
At , at this offer price and this down payment
amount we can go in before theoffer's even accepted and give
the confidence that noappraisal will be needed for
loan approval. And then buyerscan feel comfortable not
writing an appraisalcontingency at all. And the
offer Right . Which is great,removes all uncertainty in
terms of the purchase price,which I think sellers love. Uh
, especially. Right.

Speaker 1 (20:24):
Another thing we'll try to do is, you know, let's
say that there are assets the ,uh, buyers don't really intend
to use, but that we candocument. Yeah. You know, let's
say they have a retirementaccount that you don't really
don't wanna touch that, but wecan point to it and say, Hey
look, there's an extra $25,000mm-hmm . We can
write the pre-approval letterand they can write their offer
based on that larger downpayment, which looks better to

(20:45):
the seller. Oh yeah. And

Speaker 3 (20:47):
Uh , again, this is the name of the game. It's like
how do we make this mostattractive to the sellers?
Right. I think a real lifething that sellers , uh, care
about , um, in addition toobviously the sale price is how
fast are they gonna get thatmoney? AKA how fast can we
close? Right. I was texting apersonal friend that him and
his wife, they have a , a2-year-old baby girl, they've

(21:08):
been kind of thinking aboutbuying for a while now. And
every once in a while he'lltext me a listing and say, Hey
Tim, can you run some quickhypothetical monthly payment
numbers for this property? Sowe were texting back and forth
on Thursday and I said, Hey,I'm looking at the listing. I
noticed that in the listingremarks it says seller wants to
close ASAP all caps, threeexclamation points. Right. I'm

(21:30):
like, Hey, just know, like wecan do a 20 day close. Like
we've already gotten him rocksolid , pre-approved, super
strong, you know, their firsttime home buyers , no other
property to sell. I said, inaddition to a , a healthy offer
price, if you guys are reallyserious about beating other off
other offers, write a veryaggressive close date. Right?
Yeah. Consult with your trustedloan advisor, Tim, to make sure

(21:53):
that it's doable. But if you'regiven the green light to do
that, that's an easy no costway to make your offer more
appealing. 'cause if the sellergets that offer and says, oh my
goodness, we can close on May20th or whatever, it's like if
the , uh, everything else beingequal, if that's compared to a
June 15th close from someoneelse. Right. It's , they're

(22:14):
gonna like it . I'm gonna , I'mgonna get my money three weeks
early,

Speaker 1 (22:17):
Can give you a leg up. Yep . So speaking , you
know , so a lot of times we'resaying people have to offer
over asking , so I actually ranthe numbers for all the home
buyers that we helped in 2024and 2025. And , uh, 45% of our
buyers over that period of timepaid over asking , uh, 28% paid
less than the asking price and27% paid exactly at the asking

(22:39):
price. Which of

Speaker 3 (22:40):
Bill , I'll just say as a , as a caveat too , a part
of that 27% that paid exactlyat the asking price probably
has a lot of for sale by ownerslooped into that could , unless
you could

Speaker 1 (22:49):
Excluded that

Speaker 3 (22:49):
From the data.
Right. Because in a for sale byowner, it's like both parties
generally agree on the purchaseprice almost ahead of writing
the contract. So Sure.

Speaker 1 (22:59):
So of those 45% of our buyers who paid over the
asking price, Tim, my questionfor you is, what percentage of
those folks do you think thenhad their appraisals come in at
less than the agreed upon salesprice? Do you think it was 10%
came in low, 20% or 30%,

Speaker 3 (23:16):
10% or less?

Speaker 1 (23:18):
It's , the answer is 10%. Oh ,

Speaker 3 (23:20):
Okay. Alright .
.

Speaker 1 (23:21):
So only one. So even when you're paying over the
asking price, only one outta 10times did the appraisal come in
under that? Those

Speaker 3 (23:29):
Are, those are good odds . Yeah.

Speaker 1 (23:31):
And in fact , uh, 48% of those who paid over the
asking saw the appraised valuescome back higher

Speaker 3 (23:40):
Yeah .

Speaker 1 (23:40):
Still than the agreed upon price. And so one
of the ,

Speaker 3 (23:44):
Which isn't even necessary, but it's, you know,
it's nice. Yeah . .

Speaker 1 (23:47):
So what do you think , um, you know, what , what is
the, why is it that so fewappraisals come in low?

Speaker 3 (23:55):
Well, I don't know , uh, if an appraiser would ever
admit this publicly, but weknow that when an appraiser
goes out to conduct anappraisal on a purchase
transaction, they have a copyof the purchase contract in
hand. So they know what buyerand seller have already agreed
on as a value

Speaker 1 (24:12):
AKA first price , which is the best indicator of
value.

Speaker 3 (24:14):
Yeah, exactly. What is someone willing to pay for
this place? Right. And thenit's the appraiser's job to
find the data in the market tosupport that value Right.
Through, through comparablesales. So I think because they
already have the target up onthe wall, you know, they're
trying to hit that target.
Right. And I would beinterested, it's like, okay, if

(24:35):
, and I've had, to your 0.1 outof 10, I've had just a few ,
uh, customers in the last twoyears where they've written
offers above list and theappraisal came in low, I think
in almost all those cases. Theappraisal still, it came in low
to the purchase price, but itstill came in above the
original list price.

Speaker 1 (24:50):
Oh, okay. Okay.
Right . Yeah . So it's like , Ididn't look at that, but yes.

Speaker 3 (24:53):
Yeah, it's like if it came in low, it probably
still came in higher than whatthe original ask was for the
property. And it's, it's oneout of 10. And so aside from
what it does to your monthlypayment for all potential home
buyers out there, and we can dothat math for you , don't be
afraid to offer above list'cause it's not as scary as
maybe you think it is going in.

(25:14):
That's

Speaker 1 (25:14):
Right. Alright , when we come back, let's , uh,
keep talking about some , uh,buyers that we've helped
recently. You are listening tothe Accu Mortgage and Realty
Show on AM six 20 WTMJ.

Speaker 2 (25:26):
Important home buying questions and answers
you can count on. This is theAccu Mortgage and Realty Show
with Brian Wicker on WTMJ.

Speaker 1 (25:35):
Thanks again for tuning in today. Uh, Tim, we
were talking , uh, right beforethe last break about, you know,
a friend of yours who , uh, wasgonna write an offer on a
property where they wanted toclose as a P but that's not
always what sellers want. Whatdo you , you got a different
story on the other end of thespectrum.

Speaker 3 (25:54):
Complete other end of the spectrum. Sometimes
sellers want to be able to stayin their home for a lot longer,
but still kind of get it , uh,you know, locked in that
they're gonna sell it tosomebody. Right? Sure. So I
have a customer , uh, him andhis wife have been looking in a
specific area Menominee Fallsfor, for quite a while now. And
they happened upon somehomeowners that they knew

(26:16):
through personal connectionsthat were thinking about
selling. So they said, Hey, youknow what, before you put it on
the market, let's just worksomething out here. You know,
you save some , uh, saleproceeds on , uh, realtor
commissions and we can get thehouse that we want and we can
customize the deal to whateverMr. And Mrs. Seller prefer in
terms of the timing. So theseller said, sounds great. Love

(26:37):
to sell you my home. I wannastay there until September 7th,
2025. Whoa . Like, okay, noproblem. Right. My , uh, buyers
currently own a home that theydo plan to sell, but to make
their offer more attractive.
'cause even though it's a forsale by owner, I think there
were actually a couple otherparties that were still

(26:59):
interested in this place,ironically enough. So he said,
Tim, we we really wanna makeour offer , uh, not contingent
on the sale of our currenthome, at least in terms of the
loan commitment. Right? Sure.
'cause they, they , theysmartly wrote a 30 day loan
commitment or financingcontingency deadline into the
contract, which all that meansis that me as the lender, I'm
gonna give them a loancommitment letter, which they

(27:20):
will give to the seller on orbefore that 30 day deadline
that says, I'm committed to buyyour place. That deadline is at
the end of May and then there'sgonna be this three month gap
where everyone's just waitingaround for the actual closing
to take place. Sure . So Isaid, Hey, we can do this, but
here's the smartest way to doit. I actually shared my screen

(27:42):
with him . We looked at twoscenarios and I said, scenario
one is the way we're gonna lineup your initial loan
disclosures for the purpose ofgetting a clean loan commitment
without a home salecontingency. We lined it up to
5% down, which is the minimumrequired down payment for a non
repeat home buyer . Yeah.
Repeat home buyer , uh, singlefamily primary residence

(28:02):
obviously. And I said, Hey,this is what we're gonna show
on paper for the loandisclosures and this is what
we're gonna line up for theapproval and for a loan
commitment. And then after wedeliver that loan commitment, I
know Mr. And Mrs. Customer ofmine , I know you're gonna go
out and list your home. They'regonna list it probably early
June, and it's a hot market.
Their sale price is in like themeat of the most competitive

(28:23):
price range. So a lot of peopleare probably gonna wanna buy
their house. And I said, if youcan get someone to buy your
home on or before September7th, we can easily pivot to the
second scenario I showed him,which is, Hey, after we deliver
loan commitment, you, you cannot do 5% down If you've got
your previous home sold on orbefore September 7th, you can

(28:43):
do a much higher down payment ,uh, obviously lower monthly
payment as a result. You know,a couple different factors. I
showed him and he said, yeah,that sounds great. I'm
delivering the contract as Iwrote it, which the sellers
will appreciate. And then wehave plenty of time to pivot to
a whole new game plan,essentially. Yeah. If we have
someone to buy our home, andthey're probably gonna get

(29:06):
someone to even close on theirhome maybe sometime in August,
and then get post-closingoccupancy Oh good. So they can,
they can have their home salecompletely wrapped up, money's
in the bank, but then they havea place to live still until
they turn around and , and buythe new home on September 7th.
So this is a really key, Ithink part of our guidance,
Brian , that we offer is notonly like, how do we help you

(29:27):
craft the most competitivedeal, but then we show you what
the future is gonna look likeand we give you those options
on day one. Right. Where it'slike we're really kind of game
planning for two differentscenarios simultaneously. Well,

Speaker 1 (29:39):
And what I like about, you know, the way you're
thinking along with thiscustomer is it would be great
not to line it up so thatthey're selling their home on
the day that they're buying thenew one. So I really like the
idea of some post-closingoccupancy for them to make it
smooth. Um, yeah. So you gotta,you know, the key is customize
. You gotta , you gotta knowwhat the seller wants.

(30:01):
Sometimes they wanna closeslow, sometimes they wanna
close fast. And hey, can youfigure out a way to make that ,
uh, happen? Right. Um, uh, whenwe come back , uh, I do have ,
uh, Fannie Mae's , uh, latestprognostications on where they
think interest rates aregrowing. And so by the way,
you're , it's too long of afuse to lock in the rate for

(30:23):
these clients that you're justtalking

Speaker 3 (30:24):
About. We did , we did talk about that too. I said
these, and we showed rates withno points. 'cause I said, Hey,
you know, Mr. Customer, the ,the conversation about choosing
to pay points or not in , inrelative to the rate you get,
we'll have that conversation inJuly. 'cause frankly, it
doesn't make sense to even lookat locking in rates now until
we get into at least 60 days orless Within closing, then we'll

(30:47):
actually probably have anothermeeting where I'll show
him all the different optionsand based on what rates are at
at that time, he can choose ifhe wants to, you know , pay
points or not. And

Speaker 1 (30:56):
Maybe they'll have their accepted offer by then .
Exactly. All right . Well,let's take a look at , uh,
where the big folks at FannieMae, Freddie Mac think , uh,
interest rates and home salesare going. Uh , maybe time for
one more story after this. Youare listening to the Academic
Mortgage and Realty Show on AMsix 20 WTMJ.

Speaker 2 (31:11):
Find a place to call home without the headache. This
is the ACU Net Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (31:20):
Welcome back and thanks again for hanging out
with us today. Hey, Tim, one ofthe , uh, news things that I
saw late last week was fromCNBC , uh, reporting out on the
Mortgage bankers association'slatest , uh, weekly application
numbers, which did show thatapplications to buy a home were
down 4%, you know, for the week.

Speaker 3 (31:39):
Na , nationally by the way.

Speaker 1 (31:40):
Nationally.
Nationally, that's right. Yeah.

Speaker 3 (31:42):
But number means nothing for , uh, for
our listeners. But anyways ,that Yeah , it's , it's fun .
It's fun. Yeah.

Speaker 1 (31:49):
The spin on it was, you know, ho home buyers are
getting nervous or, you know,sure . About , about the
economy,

Speaker 3 (31:55):
Tariffs and economy.
Yeah.

Speaker 1 (31:57):
Whatever. But , um, in , in the meantime, you know,
of course everybody thinks it'sa lot about interest rates,
which you know, are a factorbut not as big. Uh , yeah .
Certainly factor when it comesto the real world, probably
mm-hmm . Well,Fannie Mae, the biggest thing
there is in mortgage lendingcame out with their April , um,
uh, housing forecast. And sothe good news is that , uh, and

(32:19):
by the way, we said at the topof the show that a 30 year
fixed rate , uh, with 25%equity in all the right stuff
is at around 6.875 with an a PRof 6.9 right now . And so
Fannie's latest forecast isthey think that the 30 year
fixed rate will be down to 6.2by the end of , uh, this year .

(32:39):
Right . 2025 . Yeah. And theyhad previously predicted 6.3
, and I should alsomention, you can get a 6.625
mortgage rate right now with25% down and all the other
Right. Stuff. And that wouldhave an a PR 6.74 'cause you'd
be paying about one point , uh,1% of loan balance to get that.

Speaker 3 (32:56):
What's funny about these housing forecasts from
Fannie Mae Bryan is that theyhave the, the boldness to
archive all of their pastforecasts, which is kind of a
fun exercise. We've had some ,uh, newer academic employees do
this recently where we said,Hey, go find the August of 2024
archived forecast and then golook at that and tell us what

(33:18):
they were predicting the 30year fixed rate to be as of Q2
of 2025 AKA right

Speaker 1 (33:24):
Now. Okay . Yeah ,

Speaker 3 (33:24):
Yeah , yeah . So do you , do you wanna take a
guess? 'cause I got the, I gotthe data.

Speaker 1 (33:27):
Oh, you have it. I'm back in August

Speaker 3 (33:30):
Last year . Yeah .
What ?

Speaker 1 (33:31):
I'm under six.

Speaker 3 (33:33):
Okay . You're very close. They were predicting a
6.1% rate by right now. And youknow, obviously as of the
current forecast that they justreleased for April, and in Q1 ,
uh, of 2025, the average 30year fixed rate was 6.8%. So
literally, you know, threequarters of a percent higher
than what they were forecastinglast year. So this is proof to

(33:54):
all the listeners that nobody,I don't care if you're Warren
Buffett or Jimmy Buffett, youdo not know where rates are
going. Nobody does. Not evenFannie Mae because their
forecasts are hilariously wrong

Speaker 1 (34:06):
Routinely. Uh , yeah. Off. Yeah . And , uh, and
it's been that way for a littlewhile. Um, by the way, with all
their fallibility , uh, bakedin there, they're thinking that
rates will be down to 6% by theend of 2026. Um, they have home
sales , uh, going up by 2% ,um, this year compared to 2024
and then up another 6.6% mm-hmm . In , uh, 2026.

(34:31):
Hey, so that's all greattheoretical , uh, information.
I mean,

Speaker 3 (34:34):
Low sixes would be lovely. I would not , uh, I
would not turn that down. Yeah. If, if they were right on
their forecasts

Speaker 1 (34:39):
, we hope that they are. Right. Yeah .
Yes . So , uh, you know, it allcomes down to you, you or your
loved one, and coming up withthat game plan that's gonna
help you , uh, get into thewinner circle. And that's
something that we love to do.
Um mm-hmm . Helppeople strategize for how to
make their offer the bestpossible offer that it can be.

(35:00):
Uh , you know, can we, can weget an appraisal waiver? Can we
help you understand, you know,that the, the, the in dollars
and cents, what does it mean topay $15,000 over asking exactly
, or $25,000 over asking whatdoes that mean to your monthly
payment or your, and or yourmoney out of pocket ? Mm-hmm
. Because that'swhat it all comes down to.
Yeah.

Speaker 3 (35:21):
We can't make the decision for you on if you want
to buy a house or not. Thatdecision is entirely up to you.
But if you are thinking aboutmaking that decision and would
like more information to maybehelp guide the decision, that's
where we can step in. And thenthrough showing you those
numbers of what, what themonthly payment would look
like. Maybe it's not as scaryas you thought, and then maybe
that's the thing to get you offthe fence and decide this is

(35:44):
the year we're gonna do it, andthen we can really help you the
rest of the way from there. Ifyou make the decision of it is
the time we want to go buy ahouse, we'll help you the rest
of the way.

Speaker 1 (35:53):
There you go. Well, that's all the time we have for
today's show. Thanks forjoining us. You've been
listening to the AC Mortgageand Realty Show on the biggest
stick in the state AM six 20WTMJ. The proceeding was a paid
program. Advice and opinionsexpressed during the Accu
Mortgage and Realty Show aresolely that of the host or
guests of academic mortgage andATE realty advisors and not

(36:13):
WTMJ Radio or Good KarmaBrands. Milwaukee, LLC.