The Accunet Mortgage & Realty Show 5-11-25

Episode Transcript

SPEAKER_00 (00:00):
The following program, the Accident Mortgage
and Realty Show, is paid for infull by Accident Mortgage LLC,
an equal housing lender,consumeraccess.org, number
255368.
The advice and opinionsexpressed during the Accident
Mortgage and Realty Show aresolely that of the hosts and
guests of Accident Mortgage LLCand not WTMJ or Good Karma
Brands.

SPEAKER_01 (00:21):
Welcome to the Acunet Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Acunet Mortgage and
Realty.
And now, here's Brian and DavidWickert.

SPEAKER_00 (00:35):
Welcome to the Acunet Mortgage and Realty Show.
I'm Brian Wickert, licensed realestate broker with Acunet Realty
Advisors and also the majorityowner of Acunet Mortgage, where
my individual NMLS ID number is259610.
And I'm here again today alongwith my son, David, who's
president of Acunet Mortgage andAnd his individual NMLS ID
number is 328847.
All right, so David, the bighappening last week was the

(01:00):
Federal Reserve meeting.
And everybody is watching andwaiting to see what are they
going to do?
What happened?

SPEAKER_02 (01:07):
Absolutely nothing.
I mean, they met on Tuesday andthey kept meeting on Wednesday.
And when Chair Powell, well,they released their...
results of their meeting at, isit one o'clock central?
Yeah, on Wednesday.
And they said, hey, that Fedfunds rate, we're not going to

(01:28):
touch it.
We're going to leave it be.
And then Chair Powell walked outand did his 1.30 press
conference, which is likewatching a guy dodge questions
with words for an hour becausetheir theme is we think we're in
a good place and we don't haveenough data as the Fed to be

(01:50):
moving one way or another,either raising rates or cutting
rates.
the rate, the Fed funds rate.
And so they're just going tohang tight.

SPEAKER_00 (02:01):
Well, and I can say, because I had a customer, David,
who read something on theinternet that said, hey, they
might cut a half a percent.
And so he was waiting to...
Really?
Yeah, he was waiting to refifrom a 30-year to a 15-year.
And actually, I didn't even haveto call him.
I was going to call him.
In fact, I was working up hisscenario after the Fed meeting

(02:25):
to give him a call to see wherethings were.
Yeah, but he...
emailed me first and obviouslythey did nothing.
They left the fed funds ratealone.
And so, yeah, but for reasonsthat are really hard to explain,
we did have an improvement inmortgage rates on a Wednesday
afternoon.
And so luckily, uh, we were ableto grab him a five, nine, nine,

(02:48):
no cost 15 year, uh, onWednesday afternoon.
But then we think, yeah, on arefi, but then things, um,
Things kind of deteriorated therest of the week.
Any explanation?
In other words, rates kind ofthen on Thursday went up a
little bit and Friday kind ofstayed the same.
What's the explanation for that?

SPEAKER_02 (03:07):
I think the market, you know, when there isn't data
to fill the void, bondtraders...
have to fill the void withsomething and so if you just
want to take some chips you knowoff the table that's what
happened on thursday and thenfriday was flat but but dad the

(03:29):
if you woke up on cinco de mayoon you know monday or went to
sleep on cinco de mayo and thenwoke up on friday interest rates
were flat and you just missedany of the up and the down in
the middle of the week lucky foryour client you know, he was
able to grab.
Funny enough, I have a storyperhaps later about that like

(03:50):
psychological 599, so mucheasier than six and an eighth,
because I'll bet dollars todonuts, your client would have
been like, if you had offeredhim six and an eighth, he would
have said, I'll wait.
Yeah, absolutely.
But he got lucky on Wednesdayand got that, locked that in.
Because as we like to joke, Thenumber of phone calls that I got

(04:16):
because of whatever gyrationsrates we're making at the start,
in the middle, or at the end ofthe week from homebuyers who are
either getting in or getting outof the home shopping experience
was zero.

SPEAKER_00 (04:27):
That's right.
Yeah.
Home shoppers are a little bitmore impervious.
It's either more refi peoplethat are a little bit more
interest rate sensitive.
And, you know, so we're kind ofright around that 6.99% on a
30-year fixed rate,$250,000 with25% equity and all the other
right stuff with an APR of 7.02.
Yep.

(04:49):
You know, and so that's not bad,but it's a little bit up from
where it had been maybe earlierin March.
All right, so David, you want totee us up for, do you have a
story to share with us, or doyou think we should go over the
MLS April home sale numbers whenwe come back?
Well, let's,

SPEAKER_02 (05:08):
I want to talk about those April home numbers, home
sale figures, because it willinform a lot of the competitive
tools that homebuyers use needto and are reaching for if they
actually want to win in May,June, and July.

(05:31):
In headline world, as we alwayslike to reiterate, please ignore
what otherwise might be anational diagnosis about
available homes for sale.
And as I am personallyexperiencing with my clients,
the market's the micro markets,the nano markets in which they

(05:54):
are looking remains competitive.
If someone's looking at a housein Bayside for 900,000, that is
a market vastly different than aTosa bungalow for 350, right?
And so I'll be curious to learnas you diagnose or share those
April MLS numbers, hey, what didit take to win Because it's

(06:17):
going to tell a lot of ourbuyers, our listeners, what is
it going to take to win in June,July, and August here.

SPEAKER_00 (06:23):
One of these things you can think about while we're
on the break, which of thefollowing municipalities do you
think was the fastest selling inApril?
Was it Wauwatosa, West Allis, orSouth Milwaukee?
We'll have that answer and theother nuggets on April right
after this.
You're listening to the AccidentMortgage and Realty Show on
AM620 WTMJ.

SPEAKER_01 (06:44):
Home buying advice from the guys who know it best.
This is the Acunet Mortgage andRealty Show with Brian Wickert
on

SPEAKER_00 (06:52):
WTMJ.
Welcome back and thanks forhanging out with us today.
I'm Brian the Elder.
That's David the Younger thereof the Wickert Men.
And so, David, I've got theApril home sale numbers
according to the MultipleListing Service for the
five-county metropolitanMilwaukee area.
And I get that through AcunetRealty Advisors because we're a
member of the MLS.

(07:12):
And so this is for single-familydetached and condos let's go
with the number of closed salesyour guess David you think we're
up or down compared to April of2024 you know what

SPEAKER_02 (07:25):
I'll say they're up just to be the optimist in the
room

SPEAKER_00 (07:27):
okay nice nice try we're down a whopping 1% there
were 13 fewer sales last April,or this April compared to a year
ago.
That makes it 1,431 homes andcondos changing hands with the
help of a member of the NationalAssociation of Realtors.
The median sales price came inat$350 for April.

(07:51):
Do you think compared to a yearago, was that up 3% or up 6%?
Six.
You're correct.
If you

SPEAKER_02 (07:57):
had given me a double-digit number, I would
have bet.

SPEAKER_00 (08:00):
You would have believed that?
Yeah, it's up 6.1% or$20,000 aHow do you think that compares
with a year ago?
Flat.
You are exactly correct.
It was exactly flat compared toa year ago and also March.
So far, you're doing prettygood.

(08:22):
Average continuous days onmarket for the entire metro area
was 34 days, which struck me aslong.
Because it kind of seems likeall the people we're dealing
with, like, okay, the house goeson the market on Thursday and
then they got offers by Sunday.
But that's the average.
And that's supposed to be thenumber of days between the house

(08:42):
gets listed and the listingagent changes it to a pending
status in the MLS.
Now, for the top 10fastest-selling municipalities,
I asked you and our listeners,do you think in April was it
Wauwatosa, West Allis, or SouthMilwaukee?
Which one of those was thefastest?

(09:03):
South Milwaukee.
You are correct, sir.
Here are the top 10 indescending order.
My hometown of Muskego, averagecontinuous date, and these are
for municipalities that had atleast 10 sales.
Not going to go with the onesiesor the twosies.
Muskego, average continuous dayson market, 19.
Racine, 18.

(09:23):
West Bend, 17, as wasBrookfield.
Wauwatosa, I was shocked at thisbased on stories we hear from
our buyers.
15 days, continuous days onmarket.
Glendale, 14.
West Allis, 13.
Greendale, 10.
New Berlin, 8.
And South Milwaukee, 11.
Only four days averagecontinuous days on market.

(09:48):
That's fast.

SPEAKER_02 (09:48):
I'm actually more amazed that there were at least
10 homes that changed hands inall of South Milwaukee.

SPEAKER_00 (09:54):
Yeah, there were 13.
Okay.
Last month.
Over on the listing side ofthings, there were 1,977 homes
new homes and condos listed inthe five county metro area in
april and that does represent anincrease of 265 compared to
march but it was 57 fewer or 2.8percent less than a year ago in

(10:16):
april uh by the way though it isalso 546 more listings than the
number of homes that sold yeahSo inventory is increasing, as
you would expect, as we get intothe spring months.
There are currently 3,213 activelistings, according to the MLS.

(10:37):
And so if you divide that by the1,431 closed sales, you get a
supply of two and a quartermonths, 2.25 months, which makes
it a...

SPEAKER_02 (10:45):
Seller's market.
That's right.
If the threshold for that is athree-month supply is when you
tilt maybe...
toward a balanced market, maybe.

SPEAKER_00 (10:55):
Yeah, three to six is supposed to be balanced and
six and over.
And there are certainly parts ofthe country, folks, and maybe
even micro markets withinWisconsin and southeastern
Wisconsin where the supply isover six.
I know that in southwestFlorida, that's definitely the
case.
But in southeastern Wisconsin, a2.24 a month supply.
Median listing price, by theway, was$3.749, which is$35,000

(11:19):
higher than the year earlier ora 10% increase.
Now, my favorite number.
What percentage of buyers paidover asking in April?
For context, David, it was 47%of buyers paid over asking in
March.
In April of last year, it was59%.
Where do you think we came inApril of this year?

SPEAKER_02 (11:37):
51%.
And

SPEAKER_00 (11:40):
why do you

SPEAKER_02 (11:40):
say that, just out of curiosity?
If I recall, there is aseasonality to the percentage of
buyers paying over the listprice, and we're approaching the
start of the top of thatmountain in June, July, and
August.

SPEAKER_00 (11:57):
So last year, 59% of buyers paid over list price or
asking price in April.
This April, it was only 52%.
So a little cooler.
Now, what we don't know, though,the other variable on that is,
did sellers ask more?
Were they more aggressive intheir asking price?

(12:18):
Probably.
And then, by the way, the otherthing I look at is the
percentage of buyers who paid$10,000 or more over asking.
And a year ago in April, thatwas 40%.
And again, a little cooler thisyear.
Only 34% of buyers in April paid$10,000.
Are you in the headline

SPEAKER_02 (12:35):
business?
Come on.
Yeah.
It remains nearly as it was.

SPEAKER_00 (12:41):
There's your look at April home sales.
David, where do you want to turn

SPEAKER_02 (12:44):
now

SPEAKER_00 (12:45):
with the story?

SPEAKER_02 (12:46):
I have two stories.
We'll flip a coin.
You can tell me.
You want a grandma story or afinancial advisor story, and
I'll flip the proverbial coinwith you after this break.
You are listening to the AcunetMortgage and Realty Show on
AM620 WTMJ.

SPEAKER_01 (13:02):
Getting you into the home of your dreams.
Here's more of the AcunetMortgage and Realty Show with
Brian Weckert.
Welcome

SPEAKER_02 (13:11):
back to the Accident Mortgage and Realty Show.
I'm David.
That's Brian over there.
Dad, we'll flip the proverbialcoin.
Would you like me to share agrandma story or a financial
advisor story?
I'm going to go with thefinancial advisor story.
Okay.
So

SPEAKER_00 (13:27):
a

SPEAKER_02 (13:27):
client, tale as old as time, wants to go from the
old house to the new house.
Right.
They have equity in their oldhouse, but that equity is locked
up.
because it's stuck, because theyhaven't sold their old home yet.
Yeah, of course.
Fantastic.
Can the Acunet team, can Davidhelp grab some of that equity

(13:49):
out of the old house with abridge loan and use it as part
of the down payment on the newhouse?
Absolutely, yes we can, noproblem.
The interesting element, and I'mnot trying to get you going by
any means, if you're a financialadvisor for a profession, Do you
think you have confidence inyour ability to render a rate of

(14:12):
return greater than the cost ofthe borrowed money on your
mortgage?

SPEAKER_00 (14:16):
Well, not without risk, right?
But

SPEAKER_02 (14:20):
you would hope you would.
If you had such confidence,let's just pretend, what do you
think down payment you wouldmake on the new house if you
were like, well, David, I amWarren Buffett.
I'm actually his grandson, BobbyBuffett.
And I think I can get a rate ofreturn that is so much more.

(14:40):
What then would be the...
You would put a smaller downpayment.
Giddy up.
Hold on.
I know the president of amortgage company who did exactly
that thing.
I'm looking at him right now.
Because if you believe not justperhaps in your ability to make
a rate of return and or if youjust like having the cash in
your account rather than stuckin the house account...

(15:03):
the illiquid house account, youwould make the minimum down
payment.
And yet, what do you think wasthe real-life element that this
client, a finance professional,that they were prioritizing
greater than their professionalability to make a rate of

(15:24):
return?
Yeah, they wanted a lowermonthly payment.
Ding, ding, ding, ding, ding!And...
God, I don't want that ugly PMI.
Yeah, I don't want to pay PMI.
That's for first-timehomebuyers.
PMI is for first-timehomebuyers.
I am a move-up buyer.
I am better than that.
Yeah, okay.
And so the story goes, yeah,we're going to help them take

(15:49):
the equity out of their oldhome.
We can't quite get...
We're trying to be a little bitconservative about the value of
their previous home because...
Maybe we can get like 17% of thedown payment out of the bridge
loan, and then they'll need tocome up with the cash for the

(16:10):
other 3%, in my example, to getto their preferred 20% down
payment.
The other interesting element,though, in all of this, Dad, my
client, finance professional,has a brokerage account.
a month ago, I should say beforeLiberation Day, they had

(16:32):
considered, well, maybe we'lluse some of our gains from our
brokerage account to make thedown payment because that's the
account in late March thatseemed the most prudent of
places to pull money.
Well, then April happened whilethey were on the house hunt.

(16:53):
The value of that brokerageaccount is not what it once was.
But it's come back.
Well, of course.
Well, eventually over time.
But I think an excellentmortgage lender, real, and this
client is strong.
So we have different ways thatwe can build the new mortgage
for the new house.

(17:13):
It is helpful though, that wecan make that pivot, that the
client, you know, I issued thepre-approval letter at the end
of March and hey, here was, youknow, the preferred game plan at
that time.
Using the brokerage accountmoney.
Probably, or most.
You know, maybe I would say ifwe were going to use both the

(17:34):
brokerage account and a bridgeloan, most was going to be
coming from the brokerageaccount.
Oh, okay.
Then, as time goes by and reallife keeps going on, their
personal calculus changes,right?
Yeah, they don't want to lock inthe

SPEAKER_00 (17:48):
loss by taking the money out of the

SPEAKER_02 (17:50):
brokerage account.
Exactly, and so we pivot thegame plan the mortgage game plan
to be like, yes, let's increasethe amount of bridge loan and
decrease the amount out of thebrokerage account so that to
your point, they don't sell at atime not necessarily of their
choosing for those brokeragefunds.
Right, right.

(18:10):
I was just immensely humored.
about, you know, there arespreadsheet answers and then
there are real life answers.

SPEAKER_00 (18:17):
Well, and you know, maybe they're just not as
sanguine about the future of thestock market, you know, and,
and, you know, even over time,maybe, you know, a 6.99 return,
uh, seems lofty, you know, maybethey're just more conservative,
but you know, that people, it isabout the payment in a lot of
cases.
And when we come back, I've gota story about a person looking

(18:40):
to buy and for them, the paymentis really, really important.
We can talk about that and alsoother things.
So, you know, let's not stepover the fact that the main
point of your story there waswe're helping them buy their
next house without having towrite a contingent on the sale
of their existing home, which isvery unattractive.
So that's the point of that.

(19:01):
Yeah, we're going to find a wayto make that happen.
But then let's also talk aboutwhat people are doing on
inspections.
What are they doing aboutappraisal gap?
We'll cover that right after weturn it over to the WTMJ
Breaking News Center.

SPEAKER_01 (19:13):
Don't break the fact to get into a house.
Back to the Acunet Mortgage andRealty Show with Brian Wickert
on WTMJ.

SPEAKER_00 (19:23):
Welcome back and thanks again for joining us
today.
That's David over there, theyounger, taller, more handsome
of the Wickert men.
I'm Brian, the elder.
The

SPEAKER_02 (19:32):
wiser.
The wiser, there you go.
The most wise.

SPEAKER_00 (19:34):
That's right.
So, you know, the home shoppingand buying is a journey, right?
And...
And so after a couple ofattempts at writing some offers,
and I've got this buyer that I'mworking with who is evolving.
And unfortunately, in the pricerange where she's looking, you

(19:57):
know, in the$250 to...
300 range, there's a lot ofcompetition in Milwaukee County.
A lot

SPEAKER_02 (20:05):
of competition.
You want to buy a$2 millionhouse?
You might have your pick of thelitter.
But 300,000?
That's tough.

SPEAKER_00 (20:09):
Yeah, that's a lot of competition.
And so, you know, she's hadsituations over the past week
where, oh, this one looks good.
Oh, it's already got an offer.
Oh, this one looks good.
And she goes to see it and boom,you know.
It gets an offer, or she wrotean offer on one property, she
didn't get it.
And so unfortunately, in talkingwith her buyer's agent, a lot of

(20:31):
buyers these days are once againwaiving the inspection
contingency, which is...
you know, can be a little bitscary.
But do you have any comments onthat?
Are you seeing buyers, yourbuyers, are they waiving?
Or are they offering to pick upthe first$5,000 of any
inspection-related problems?
What are you seeing, David?

SPEAKER_02 (20:51):
I would say if you are asking for an appraisal
contingency, you are adding thatgamble factor to your offer.
And I have clients who getaccepted offers with an
inspection contingency, but thatis added benefits risk in a
seller saying yes, right?
Because if one other buyer isreasonably near what you are

(21:15):
offering without the inspectioncontingency, a seller's probably
going to say, I'll take thatguy.
And I have to remind my clients,you are not negotiating with the
seller.
You are negotiating against howaggressive are the other buyers
in the room.
That's who you're negotiatingagainst.

SPEAKER_00 (21:36):
Good point.
And so, you know, it is a risk,but I think, you know, maybe
it's more on a property byproperty basis.
right?
Hey, how does this propertylook?
You know, and for example, theone that she's about to write an
offer on already has thebasement already braced up.
They just did all the, you know,vertical girders in the
basement.
So, you know, hey, at least sheknows it doesn't have a basement

(21:56):
problem anymore.
But then the other thing that weintroduced this last time was,
well, what about, you know,appraisal gap?
And so, you know, she'scontemplating writing an offer
at, let's say this house islisted for$300,000.
She's comfortable now after somediscussion of writing the offer
at$325,000, but saying, hey,I'll still buy your house even

(22:19):
if it appraises as low as$305,000.
She's willing to give$20,000 ofappraisal gap.
Her buyer's agent thinks, eh,probably I'll appraise out at
around$315,000.
But, you know, again, once theappraiser has the accepted offer
in hand, remember 90% of thetime in our experience when
buyers pay over asking, 90% ofthe time the appraisal comes in

(22:42):
at or above the agreed uponhigher accepted offer price.
So she's willing to take thatgamble primarily because I was
able to show her the differencein monthly payment would be$17.
She doesn't have to come up withany more.
Even if the appraisal comes in20 grand light, right?
She doesn't have to come up withany more dollars at closing.

(23:02):
She just switches from being a10% down payment to a 6% down
payment or something

SPEAKER_02 (23:08):
like that.
But I think that, right, thatit's about let's turn the lights
on and point at the boogeyman.
It's not a$20,000 decision.
It's a$17 decision.
Are you willing to get to theclosing table and risk$17 a
month?

SPEAKER_00 (23:25):
Yeah.
Most buyers would say

SPEAKER_02 (23:26):
yes.

SPEAKER_00 (23:28):
But like your financial advisor from the last
story where they were reallyconcerned about payment, she has
reason to be concerned about herpayment right because she is now
a single earning household andum you know one of the comments

SPEAKER_02 (23:43):
but not not 17 worth of

SPEAKER_00 (23:46):
risk no no no that's like

SPEAKER_02 (23:47):
guacamole twice a month

SPEAKER_00 (23:48):
well that that's right but it's like all the
little things add up you knowit's like hey if i offer 320
versus 325 you know okay there'sanother 40 bucks or something
like that or 38 you know moreper month you know it all adds
up and she's right at the cuspof her comfort level for monthly
payments.

(24:09):
So she is leaning towards usingmore of the assets that she has
along with a gift from herparents in order to target a
more comfortable monthly paymentas opposed to keeping that
powder dry we might have onceshe gets an accepted offer we
might have another conversationabout you know you could keep
that extra five thousand dollarsover here and just take out 50

(24:32):
bucks a month yes to supplementyour monthly payment as opposed
to...

SPEAKER_02 (24:37):
The sock drawer, I think, is the Brian

SPEAKER_00 (24:39):
Wickard favorite.
Yeah, that's right.
Put it in the sock drawer andtake the money out.
All right, do you have a storythat you want to pivot to next?

SPEAKER_02 (24:45):
Yes, that exact, because I have a grandma who got
an accepted, not my grandma, agrandma out in the world who got
an accepted offer this weekgetting a gift from her daughter
and son to make that monthlypayment more comfortable.
And I want to talk through theexact conversation that we had
about that balance point of cashversus payment.

(25:08):
After this break, you arelistening to the Acunet Mortgage
and Realty Show on AM620 WTMJ.

SPEAKER_01 (25:15):
Important home buying questions and answers you
can count on.
This is the Acunet Mortgage andRealty Show with Brian Wickert
on WTMJ.

SPEAKER_02 (25:25):
Welcome back to the Acunet Mortgage and Realty Show.
Dad, you were describing one ofyour clients getting out there.
Hey, what does it take to win?
I had a client who actually wonthis week, a grandma.
We love helping grandmas.
They are what make the world goround.
And this woman, is getting helpfrom her daughter.

(25:45):
And top of mind for both of themis monthly payment.
Of course, grandma is onprimarily a fixed income, and so
they don't want her to bestretched, right?
You still want to be able toafford groceries, maybe a glass
of white wine at dinner, etcetera.
So the primary contact for me isthe daughter.

(26:08):
because she's kind oforchestrating the whole thing.
Grandma's got$50,000 that shecan bring to closing.
Awesome.
Daughter is willing to give hermom$20,000 toward down payment
to make it more comfortable forher to afford life on a monthly

(26:28):
basis.
And I just pointed out to myclient, I said, or the daughter,
the payment difference for that$20,000 is only going to make
life easier for your mom by$140a month.

(26:51):
So I said, one way, rather thanjust giving mom$20,000, here it
is, instead, grandma couldborrow that 20 from Acunet via
the mortgage.
And then you could Venmo grandma$140 a month from now until the

(27:15):
day she goes out feet first outof that house and supplement her
monthly payment without theactual cash outlay of here is
the$20,000 plunk.
Yeah, that is, by the way, 11.9years.
And right.
It's like, is grandma going tobe in this house for 11 years?

(27:38):
It's like, well, maybe, butmaybe not.

SPEAKER_00 (27:41):
And so how'd that go over?

SPEAKER_02 (27:42):
Um, it, the math is correct is my answer because in
real life, I'm just thinkinglike of my mother.
Hey mom, instead of you feelingcomfortable, I'm just going to
send you money.
It would be tough to, to geteverybody comfortable with the

(28:04):
analytical answer versus the,no, I want to make sure that I
am okay in my new house.
And so I don't know yet forsure, but if I was a betting
man, that they're just going togive her the gift funds to
borrow less money, even thoughon paper, I was like, well,

(28:26):
you...
Keep your cash.
But again, it's not about whatthe spreadsheet answer is.
It's about what makes our clientmost comfortable.
And when the client calls theplay, that is the play that we
run.
There's no Aaron Rodgers at theline of scrimmage, you know,
calling a different

SPEAKER_00 (28:42):
play.
Yeah, we're not doing an audiblehere at the, what do they call
it?
Under center.
Yeah, under center.
But what did Elway always callit?
He said, like, Omaha, Omaha.
No, not Elway.
It was Peyton Manning.
Oh, Peyton Manning.
That's Peyton Manning, yeah.
Elway, yeah.
Come on.
Oh, come on.
That's going back a couple ofgenerations.

SPEAKER_02 (29:03):
But that's the real life stuff.
And ultimately, I think our jobas mortgage pastors is to just
be like, here are the options.
Like, a lot of times withclients, just to torture the
metaphor, it's like, ifmortgages were like ribeyes, Can
I tell you what the chef'srecommendation is?

(29:25):
But then if you want to orderit, you know, still mooing, like
I'll yell back to the kitchen

SPEAKER_00 (29:31):
and that's how they'll cook it up.
Here's another thing about mybuyer who's contemplating
putting on this offer, puttingin this offer on the house.
It went on the market onThursday.
And so they were fixing to putin an offer, a nice offer with
the appraisal gap and overasking and no inspection
contingency.
I mean, it had a lot ofattractive things about it, but
then they found out that theseller was, wasn't going to

(29:52):
decide until tuesday so it'slike well okay so then the
strategy becomes well let's waitto put in our offer we don't
want to you know give the sellerand the listing agent like well
okay i got an offer in nowbecause then what the listing
agent would do is say hey got anoffer in you know get your
offers in ring the dinner belland so the strategy uh is going

(30:16):
to be that the buyer's agent isgoing to wait, you know, until a
little over the weekend orwhenever the seller, you know,
or the listing agent comes backand communicates, okay, we've
got an offer or we've got acouple of offers before they put
in theirs.
You're disagreeing with that?

SPEAKER_02 (30:34):
You know, because I've seen, you know, you can put
a short timeframe, you know,this, so your client, that was
Friday, they could have said,answer me by, the end of Friday
or this deal's off the table.
Yeah, but...
You're trying to press their...
Because, again, a seller saying,I'm going to review on Tuesday
is make-believe.

(30:54):
Like, they can review wheneverthey want.
They don't have to wait.
It's not like they are bound towait till Tuesday.
They could just decide onSaturday or Sunday at 1 p.m.
I want that offer.
They don't have to wait.

SPEAKER_00 (31:08):
They couldn't.
They could.
All right.
When we come back from this lastbreak, we'll got at least one
more story to share.
You're listening.
to the Acunet Mortgage andRealty Show on Wisconsin's radio
station, AM620 WTMJ.

SPEAKER_01 (31:22):
Find a place to call home without the headache.
This is the Acunet Mortgage andRealty Show with Brian Wickard
on WTMJ.

SPEAKER_02 (31:31):
Welcome back to the Acunet Mortgage and Realty Show.
I'm David.
That's Brian over there.
Dad, one of my long-term themesin mortgage lending, probably
over the next five to 10 years,is that I think insurance is
going to be the tail that wagsthe dog.
How's that?
Because, well, the condition ofa home is going to matter more

(31:52):
because if you can't getinsurance on the house, I sure
can't get you the mortgage onthe house.
So I had a client out in theMadison area.
Apparently, there was some hailstorm.
Yes, a hail storm came through.
Yeah, yeah, I saw pictures froma friend of mine's daughter.
It was brutal.
So my client got the acceptedoffer.

(32:15):
Hail storm came through.
And our closing date is...
was AFT is while they were undercontract.
So the seller has this damagedroof and siding.
And we had to go through acouple gentle rounds of, yeah,

(32:35):
in order for underwriting toapprove the new mortgage, you
got to put the new roof and thenew siding on.
Because we can't, the adjusterwent out there and said, you
need new stuff.
Okay, that is material.
And you can't do an escrowholdback for cosmetic things,
even if they're material.

SPEAKER_00 (32:55):
It's cosmetic.
This is more than cosmetic onthe roof, right?
I mean, I guess it's holding therain out, but go on.
The

SPEAKER_02 (33:02):
other element to this, though, I called, because
we have friends throughout thefinance and insurance world, I
called the two smartestinsurance people that I know.
And I said, hey, the old...
The sellers, their old policy iswith state farm.
Yeah.
Do we think that the buyer couldeven get a policy as the new

(33:27):
owner from a new differentinsurance carrier while there is
this outstanding work to bedone, claim yet to be resolved
on the damage that was?
That's a weird situation.
What was the answer?
The answer generally was no.
Because why would a newinsurance company want to take

(33:49):
on covering a home that has notbeen made whole from previous
work or previous damage?

SPEAKER_00 (33:57):
Yeah, you would think that that old insurance
company would want to still havethe same policy holder be the
owner.

SPEAKER_02 (34:04):
The one interesting caveat was, well, if the buyer
chose the same carrier that thecurrent owner seller has, there
may be a path where, right, it'slike if Allstate was the
seller's carrier and now thebuyer is also getting an
Allstate, generally becausethey're just carrying over the

(34:25):
liability from the old claim tothe new one.
But even that is not...

SPEAKER_00 (34:30):
But still, doesn't the mortgage world want to
insist on, hey, we want to havethe home in good repair.
We don't want to have thebeat-up

SPEAKER_02 (34:36):
siding.
Yes, ultimately, that was thebogey.
Please put the new roof on.
Okay,

SPEAKER_00 (34:41):
so is that what they're going to ultimately do?

SPEAKER_02 (34:44):
Yeah, they will.
They're going to put the newroof and siding on.
But the insurance element, it'snot just about the work.
It is also about the coverage.
And to me, as I look out, as Ipick up my magic eight ball,
that insurance element is goingto factor in more and more.

(35:05):
I think I had said, even on aprevious show, If I could advise
clients to do three things whenthey see a house that they love,
one, call your agents so you canget into the house.
Two, call your Acunet MortgageLoan Consultant to scope out,
hey, how can I be the mostattractive buyer that I can be?
And three, call your insuranceagent.

(35:27):
Like, hey, I'm thinking about123 Main Street.
What can you run down in yourdatabase or otherwise about this
home in general?
Because it's going to matter.
And you may as well know that inadvance about the insurance and
the coverage before you're, youknow, standing on third base
hoping to get to the closingtable.

SPEAKER_00 (35:46):
Right.
So insurance is going to becomea more and more expensive
proposition depending on whereyou live.
You know, certainly people inFlorida and, you know, who have
hurricane risk and in otherwestern states where they have
more of wildfire, you know,they're seeing their premiums go
up.
But I think, you know, even inWisconsin with all the hail
damage that we've experienced,you know, premium are going up.

(36:08):
We've had some carriers get outof the business altogether in
Wisconsin.
So yeah, all the details matter.
Property taxes, insurance, thewhole schmear.
All right.
Well, that's all the time wehave for today's show.
Thanks for joining us.
We'll be here again next week.
You've been listening to theAccident Mortgage and Realty
Show on AM620.

(36:28):
WTMJ.
The preceding was a paidprogram.
Advice and opinions expressedduring the Acunet Mortgage and
Realty Show are solely that ofthe hosts or guests of Acunet
Mortgage and Acunet RealtyAdvisors and not WTMJ Radio or
Good Karma Brands Milwaukee LLC.