Episode Transcript
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Speaker 1 (00:03):
Eight thirty seven thirteen ten WIB and ask the experts.
Hanging out with Matt Heiman of Rockrealty online Rock Wisconsin
dot com. That's Rock Rock Wisconsin dot com and of
course Matt comes with from Rockrealty. You mentioned the website,
haven't mentioned a telephone number? That's important? Six eight six
seven three fifty four hundred. That's six eight six seven
three fifty four hundred. Head on over the website today.
(00:26):
It's the cold one and it's a good day. Anytime
you're you're stuck inside saying what can I do to
just see what's out there and get some ideas and
have some fun. Head on over to Rock Wisconsin and
check out some of those really cool listings and we'll
get to their featured listing in just a moment. In
the meantime, if you haven't been to the website, do that. Also,
get the app MLS dot rocks slash app if you
(00:47):
got an iPhone or an Android, they have an app
available to you there.
Speaker 2 (00:50):
Matt, How you doing this morning?
Speaker 3 (00:52):
Doing pretty good? Yeah?
Speaker 4 (00:53):
January actually is one of the busier.
Speaker 5 (00:55):
Months for shopping people. Yeah, just start especially January first.
They start looking at houses and doing some closet shopping.
Speaker 1 (01:02):
Yeah, the spring, and it's I've mentioned I love, I
love looking just to see what's out there. We're not
personally looking to move, but you never know what you're
gonna find, and it's always good to get some ideas
and get inspired. And speaking of you never know what
you're gonna find little gems. And I love when you
bring in these featured listings, and I don't know what
(01:25):
goes into selecting them, but I'm always amazed by what
you're bringing in. Great houses, great neighborhoods, great prices, and
this house this week is no exception. Right on Hamilton
Avenue in Janesville. Let's talk about this nice little little
house you got listed there.
Speaker 5 (01:40):
Yeah, it's kind of hard these days to find a
house under two hundred and fifty dollars, especially one of
them three bedrooms. This one is fourteen zero nine Hamilton
Avenue in Janesville, and it's a little ranch home that's
three bedrooms, one bath, built in nineteen sixty eight. And
I just really like this listening, to be honest with you,
(02:02):
it just seems like the perfect either starter home or
rental for someone that wants to get into single family rentals.
It's got all the bedrooms on the main floor, got
hardwood floors, and then yeah, one of the big things
I really like is the space in the basement. Maybe
to finish off, it's a big, wide open basement as well.
Speaker 2 (02:22):
You mentioned rentals there to do.
Speaker 1 (02:23):
We see a lot of folks kind of getting into that,
those who are kind of in that position. It seems
to be a really nice spot to be in if
that's something that you might be interested in doing. Is
there are places just like this which are just ideal
you think about your potential tenants, families, those type of folks.
Do you get a lot of people that are saying,
you know, we're looking to pick up some property just
(02:45):
to use as whether it's commercial or residential, and use
it as as an opportunity to rent.
Speaker 5 (02:52):
Yeah, I think that single family homes, I think it's
a pretty good opportunity for rent. I think most people
think of two units or four units rentals, but I
think there's a good market for single family home rentals.
Speaker 4 (03:03):
A lot of especially even professionals.
Speaker 5 (03:06):
Are thinking, hey, I don't know how long I'll be
in this job in this location, I'd rather just rent
in the meantime.
Speaker 3 (03:13):
Keep things free and fluid, and.
Speaker 5 (03:16):
Yeah, this would be a good one for that, that's
for sure. I mean, I don't know if you saw
the updates on.
Speaker 1 (03:20):
There, new windows and doors, I think, yeah, yeah, new
furnace you see.
Speaker 4 (03:26):
Yeah, that sounds sounds like a lot of it's been
done already for you.
Speaker 1 (03:29):
So I think for a lot a lot of folks
who have owned a home, they start seeing those things
and right away they queue and they go, that's what
I'm looking for.
Speaker 2 (03:36):
Yeah, those things.
Speaker 4 (03:37):
It takes a unique buyer to to want to do updates. Yeah,
so this is this is a good one for everybody.
Who's our listing agent on this, this one.
Speaker 3 (03:45):
Is Britney Doyle.
Speaker 2 (03:47):
Britney Doyle Doyle.
Speaker 5 (03:49):
Yeah, so I think we'll get you her number here, yeah,
and give her.
Speaker 4 (03:52):
A call about the about going out and seeing a
showing or something.
Speaker 1 (03:56):
Yeah, and you can check that out too if as
we're talking this morning again, that's set fourteen oh nine
Hamilton Avenue in Janesville. You can learn more about it
online at rock Wisconsin dot com. That's rock Wisconsin dot com,
or you can give Britney a call six oh eight
four nine eight seventy seven ninety seven. That's four nine
eight seven seven nine seven for Britney. And again it's
(04:17):
a great property. Again, a lot of great potential and
a move in ready. As I sometimes feel like if
I say great potential, people are like, oh, what does
it needn't know?
Speaker 2 (04:24):
This thing's gotten.
Speaker 3 (04:25):
It's good to be solid.
Speaker 2 (04:26):
It is solid.
Speaker 1 (04:27):
This week, Matt, we're gonna be kind of putting on
a bit of a clinic when it comes to understanding
real estate and a bit of a buyer's guide. And
I know this is something you make available to folks
you work with, and there's a lot of in with
every industry, industry jargon, different things that go on that
people don't always know until they get into it. And
having a nice little sheet like this a couple of
(04:48):
pages to kind of get potential buyers and sellers all
on the same page for understanding is really important. And
let's talk about some of the stuff contained in here,
and and kind of the behind the scenes stuff with
real estate agents, and let's kind of break down some
of their main roles. And I think starting off, of course,
the ability to communicate, listens and and really can can
(05:09):
put your wants and needs into action and potential showings.
Speaker 5 (05:13):
Right, yeah, this is this is a guide that we
use during kind of buyer consultations. I think it's a
it's a step that's missed a lot for the home
buying process.
Speaker 3 (05:24):
I think most people they.
Speaker 5 (05:26):
Want to shop online, they want to click showing, and
they want to get.
Speaker 3 (05:28):
Through the door. Right.
Speaker 5 (05:30):
But you know, it's best if you can sit down
with an agent and go over some things first. It's
best to be educated before you walk through that door.
Speaker 3 (05:39):
And not only you.
Speaker 5 (05:40):
Know how the buying process works, but you know offers
and what the what the different rules are. One of
the things that we like to go over is different
clauses that we might think of on an offer once
it is time, right, but to have those in your
head as you're going through a house helps versus trying
to do it fast to the fact, especially if you're
(06:01):
competing with other offers.
Speaker 1 (06:02):
Let's talk with some of the vocabulary and the one
that we hear a lot and it is the word
itself does have a meaning, but it's very particular depending
on who's doing it and for what. Which is an
appraisal and when it comes to in the in the
real estate world, an appraisal who are we talking about
there and how is that that used as far as
part of the process.
Speaker 5 (06:22):
Yeah, I think one of the biggest confusions is the
difference between appraisal and assessment.
Speaker 3 (06:27):
So assessment is just.
Speaker 5 (06:30):
A company that could sent out by your municipality, your city,
your town, village, and they come through and give an
idea of what they think the value of the property
is for tax purposes, right, that is not an appraisal.
An appraisal it requires a certified appraiser who comes out,
actually goes physically through the property, does measurements, takes pictures,
(06:54):
pars it to other recently sold properties.
Speaker 3 (06:56):
It's a much more accurate estimate for your house.
Speaker 5 (07:00):
And it's something that you know ninety percent of the
time is ordered by a lender, but it is something
that a home buyer could potentially order themselves if they
were going to like purchasing cash and not use financing.
Speaker 1 (07:13):
And there's and when with an appraisal, it's it's a
detailed report as well. You mentioned they look for comparables.
And not only are they looking at other houses in
the neighborhood that are similar, that have that have recently sold,
they're really and I think for most most lenders they're
looking for these appraisers. They're very detailed, like what type
of what's and I think for homeowners as well or
potential buyers, getting that appraisal is a nice little almost
(07:36):
like a like a quick start guide for home ownership
that gives you a good rundown of what it is
that that you're about to buy.
Speaker 5 (07:43):
Yeah, just yesterday I was actually looking at an old
appraisal from one of our own, our properties I own,
just because I wanted to see, you know, what kind
of you know, information was in their square footage comparables.
Speaker 3 (07:53):
And yeah, it's very useful.
Speaker 5 (07:55):
They're not only going to kind of compare apples to apples.
They can sometimes compare apples to oranges. They can take
two three bedroom homes and say, okay, this one has
a garageous one doesn't What does that do to affect
the value.
Speaker 3 (08:05):
So very very helpful.
Speaker 1 (08:07):
Very talented folks there for sure, talking this smart. Speaking
of talented folks, the team at Rock Realty love to
talk with you all. Get to pick up fe this morning,
give me a call. Six So wait, six seven three
fifty four hundred. That's six seven three fifty four hundred.
Even easier head on over to the website Rockwisconsin dot com.
That's r O c K Wisconsin dot com. A term
you hear a lot is closing costs, and that is
(08:27):
one where you go, oh, my.
Speaker 2 (08:28):
Goodness, what does this mean?
Speaker 1 (08:29):
And of course, if you're working with a good agent
and good lender, you'll know exactly what that means well
before closing. But let's talk about what those closing costs are.
Speaker 5 (08:37):
Sure, Yeah, closing costs tend to mostly be related to
the title company and the lender. Right, So you'll have
closing costs for the underwriting process from a lender, of
closing costs for like an origination fee from the lender
you can, and then as far as the title company goes,
(08:57):
you're gonna have your your title insurance, you're going to
have different fees they've they've used for procuring some of
the old title and deeds from the county. So there's
a there's there's a number of small little costs that
that kind of add up to your closing costs.
Speaker 3 (09:14):
Bucket, what is.
Speaker 2 (09:15):
That we hear that term closing? What exactly is closing.
Speaker 5 (09:18):
Mat Yeah, so in our state, you know, title companies
typically will manage the closing process, they're going to make
sure that the deed is free and clear for the
new owner, and they're going to make sure.
Speaker 3 (09:32):
That all parties that need to.
Speaker 5 (09:34):
Get paid get paid, including maybe past taxes that weren't paid,
current probation on taxes, commissions as well, the lenders, old
leans that were on the property that were forgotten until
they pulled a title report. So all those things just
to make sure that a buyer when they buy it
(09:54):
can be free and clear and free of worries, and
the title insurance will cover them if they're is anything
found in the future that wasn't somehow caught by the
title company, but that's an extreme rarity, but the insurance
is there for that.
Speaker 2 (10:07):
It's fantastic.
Speaker 1 (10:08):
By the way, closing too is a correct me if
I'm wrong, that's one where you'll walk out with keys
and garage door openers in hand.
Speaker 2 (10:13):
Am I right on?
Speaker 3 (10:13):
That should? Yeah?
Speaker 4 (10:14):
I mean it's a big purchase. Hopefully a botches some keys.
Speaker 2 (10:19):
Oh that'd be great, get everything.
Speaker 4 (10:21):
But the key is you get to look at your
your pretty new thing that you bought.
Speaker 1 (10:25):
You can't go in exactly as we're kind of working
our way through these these some of these terms contingent
that is that can get a little complicated, and we
talk about some of the great benefits of working with
it with a good agent. Understanding contingents and contingencies is
an important part of it.
Speaker 2 (10:40):
What is a contingent?
Speaker 5 (10:41):
Yeah, contingencies in an offer is a protection of some kind,
whether it be for the seller or the buyer. The
majority of offer contingencies are related to the buyer, whether
or not it's an inspection contingency so that.
Speaker 3 (10:55):
They could get out of the.
Speaker 5 (10:56):
Offer or negotiate if something's found, or if it's a
finance and get tency, meaning you know, they're covered in
case they can't get financing.
Speaker 3 (11:04):
For the problem for the property.
Speaker 5 (11:06):
But the financing contingency itself also has kind of a
seller aspect in which the seller says, hey, you've got
thirty days the financing and I can get out of
the offer. So that's that's one of those contingencies that's
actually for both the buyer and the seller, which is
sometimes missed.
Speaker 2 (11:22):
Matt, what about earnest but that earnest money.
Speaker 1 (11:24):
That's a term that I think a lot of us
here often but don't fully and be honest. I don't
even know I've heard the term a lot. What is
earnest money?
Speaker 5 (11:32):
Yeah, it's you know, a small amount or sometimes larger
that you can as a buyer, put towards the transaction to.
Speaker 3 (11:39):
Show you are serious.
Speaker 5 (11:41):
Okay, it's set aside in a trust fund. Sometimes the
listing firm holds that money. Sometimes the title company holds it.
The trust fund is regulated by the state by certain rules,
and they're not allowed to distribute that money without both
parties agreement. So it's a safe space to put money
(12:01):
to make it so that if I'm a buyer and
all of a sudden, this much more pretty house comes
on the market, I can't just jump ship well and
get that back.
Speaker 3 (12:09):
That would have to be negotiated after the fact.
Speaker 1 (12:12):
Would that earnest money then be applied to when you
make the purchases, maybe like a down payment or part
of your payment to purchase at home.
Speaker 5 (12:18):
Then yeah, if you move to closing, that artists money
gets to be placed towards your down payment indoor closing costs.
Speaker 1 (12:24):
Fantastic talk this morning with Matt Heyman of Rockrealty Online
Rockwisconsin dot com that's orock Wisconsin dot com.
Speaker 2 (12:31):
Head on over there. Right now.
Speaker 1 (12:32):
Check it out online. Speaking of checking things out online,
featured listing this week fourteen oh nine Hamilton Avenue in Janesville.
You can see that at Rockwisconsin dot com or give
Britney a call six oh eight four nine eight seventy
seven ninety seven. That's four nine eight seventy seven ninety seven.
We'll continue a conversation with Matt talk a little bit
more about some of the terms that are used in
the industry and why they are important. We will do
(12:54):
that next as Ask the Experts with Rockrealty continues right
here on thirteen ten wib I eight fifty one thirteen
ten wiv and Ask the Experts. Hanging out this morning
with Matt Heytman. Of course Matt comes. So it's from
Rock Realty Online, Rock Wisconsin dot com. That's r O
(13:15):
c K Wisconsin dot com. TELF number six so eight
six seven three fifty four hundred. That's six seven three
fifty four hundred. Talking through some of the vocabulary and
some of the terms you'll hear when it comes to
real estate, and every obviously industry has a very their
unique terms and things that are very specific have very
important meanings and understanding that as a potential buyer potential
(13:36):
seller is very very important in all this information of
course available to anyone that works with Rock Realty. And
next point that comes up is a home inspection, and
I think for a lot of us we go but
didn't I already have that with an appraisal. These are
two different things, aren't they.
Speaker 3 (13:50):
Yeah? They are.
Speaker 5 (13:52):
The home inspection is going through and looking at condition
of the property, not necessarily value in any way. The appraisal,
obviously is to determined value. It's going to need to
be a certified home inspector. They go through the property,
they find out what's working, what's not, what's working. They
can identify what they think is a defect, what they
(14:12):
think is a concern, maybe something that needs additional follow
up by another professional.
Speaker 1 (14:18):
These are guys and gals that have flashlights and look
like a contractor, and they'll end up in your attic,
They'll end up in parts of your basement crawl spaces
if you got them.
Speaker 2 (14:27):
They go everywhere.
Speaker 4 (14:28):
They sometimes wear overalls even yeah, so you know that's
the real deal.
Speaker 5 (14:32):
But no, Now they have Fleer cameras for sensing heat series. Yeah, yeah,
so we'll get reports back that show you know, different
maybe potential voids and walls where insulation might be light
or missing, where there might be potential roof leaks because
it's colder, showing colder on that ceiling.
Speaker 1 (14:52):
So wow, with the home inspection as well as that report,
is that used by the buyer, the seller, the the
financing I mean, who all has access to that home inspection?
And I've got to guess if you're a potential buyer
and something comes out in inspection, you've got a negotiation.
Speaker 2 (15:09):
There is am I reading that right?
Speaker 5 (15:11):
So if you have a home inspection contingency and an offer,
the buyer is requesting the home inspection, they more often
than not are paying for the home inspection, and then
that home inspection would get provided to the seller so
that they could see it.
Speaker 1 (15:24):
Okay, So does that ever come up then as far
as negotiations or we pass that point.
Speaker 5 (15:29):
Or oh no, that's definitely part of it, right, you know,
as the offer sort of states, you know, it just
gives people the option of getting out of the offer.
But the kind of the true rubber where the rover
meets the road is it allows for negotiation, m you know,
with the seller. So the buyer can say, hey, instead
of me getting out of the offer, let's let's uh,
(15:50):
let's give me a little bit of a you know,
closing cost credit sure.
Speaker 3 (15:55):
Or let's lower the price or something like that.
Speaker 1 (15:57):
They're like potential like let's say like a fireplace that
may need some repair that wasn't would that be like
could there be like money saying like an allowance or
something to say to cover these costs? To say, you know,
as a potential buyer, love everything about this house, but
obviously the fireplace or something Chimney's gonna need some repair
is Can there be a discussion about seller pays for
(16:18):
that or puts into an account money to repair that.
Speaker 4 (16:21):
Yeah, So there's a lot of different ways you can
go with that, and it all depends on kind of.
Speaker 3 (16:24):
Seller situation and buyer situation. So let's say we.
Speaker 5 (16:26):
Have a seller that just doesn't have a lot of
cash on hand at least that's what we're hearing, right,
we can maybe just lower.
Speaker 3 (16:33):
The purchase price.
Speaker 5 (16:34):
Let's say that we have maybe a lender that says, hey,
that has to be fixed prior to closing, then you'll
want to negotiate that it actually gets repaired prior to closing,
but if you know, there is also the option like
you're kind of referring to, is you can put money
aside in escrow so that it gets fixed after closing
(16:55):
as well.
Speaker 3 (16:55):
So there's a lot.
Speaker 5 (16:56):
Of different ways you can go and it all depends
on the situation. So that's when having a real.
Speaker 2 (16:59):
Estate Yeah, it's important. Yeah stuff.
Speaker 1 (17:02):
By the way, as we talk about these items, and
that's one of the great things about having Matt here
to pick his brain each each and every one of
these items, there's a lot of inner workings and a
lot of a lot of things that can happen because
of the results of this stuff. And as we kind
of break some of these situations down, it's one of
the great benefits of working with a really good, solid agent,
(17:24):
one that knows you, knows the market, that understands how
to handle these type of situations when they come up,
it's a great time give them a call it Rock
Realty six to eight sixty seven three fifty four hundred.
That's sixty seven three fifty four hundred online Rock Wisconsin
dot com. That's Rock rck Wisconsin dot com. Preapprovals are
they absolutely necessary in the world we're in these days.
(17:44):
And what is a pre approval for folks that may
not know.
Speaker 5 (17:47):
Yeah, I would say that, you know, for a number
of years, it's been an expectation by sellers if you're
going to put a financing contingency in your offer, they
want to know that you actually have a good likelihod
of getting finances.
Speaker 4 (18:01):
Yeah, right, So a pre approval, there's there's kind of
two different.
Speaker 5 (18:05):
Versions, right, And the lingo behind the whether it's a
pre approval or a pre authorization changes depending on the lender.
But lenders can run your credit score and just take
your word for how.
Speaker 3 (18:19):
Much you make, okay, And that's the kind of weaker
of the of the two.
Speaker 4 (18:22):
And then or they can actually verify.
Speaker 5 (18:24):
Income and go through a lot more details and kind
of start to underwriting process beforehand, and that's a much
more stronger pre approval.
Speaker 1 (18:32):
Fantastic information this week, as always from Matt Heytmen of
Rock Realty. It's got about a minute left real quick.
Fourteen oh nine Hamilton Avenue in Janesville. That is our
featured listing this morning. Three bedroom, one bath under two
hundred and fifty thousand dollars, great area, great house. Check
that out online. Rock Wisconsin dot com. Give Britney a
call for a showing. Six soh eight four nine eight
seventy seven ninety seven. It's four nine, eight seventy seven
(18:54):
to ninety seven. Matt, time flies by more hanging out Luba.
Speaker 2 (18:57):
It's good to see U.
Speaker 1 (18:58):
Get to the website. Rock with Gunson dot com. That's
r O c K Wisconsin dot com. Vicky mckennaugh. She
comes your way next year at thirteen ten Wi b
A
Eight thirty seven thirteen ten WIB and ask the experts.
Hanging out with Matt Heiman of Rockrealty online Rock Wisconsin
dot com. That's Rock Rock Wisconsin dot com and of
course Matt comes with from Rockrealty. You mentioned the website,
haven't mentioned a telephone number? That's important? Six eight six
seven three fifty four hundred. That's six eight six seven
three fifty four hundred. Head on over the website today.
(00:26):
It's the cold one and it's a good day. Anytime
you're you're stuck inside saying what can I do to
just see what's out there and get some ideas and
have some fun. Head on over to Rock Wisconsin and
check out some of those really cool listings and we'll
get to their featured listing in just a moment. In
the meantime, if you haven't been to the website, do that. Also,
get the app MLS dot rocks slash app if you
(00:47):
got an iPhone or an Android, they have an app
available to you there.
Speaker 2 (00:50):
Matt, How you doing this morning?
Speaker 3 (00:52):
Doing pretty good? Yeah?
Speaker 4 (00:53):
January actually is one of the busier.
Speaker 5 (00:55):
Months for shopping people. Yeah, just start especially January first.
They start looking at houses and doing some closet shopping.
Speaker 1 (01:02):
Yeah, the spring, and it's I've mentioned I love, I
love looking just to see what's out there. We're not
personally looking to move, but you never know what you're
gonna find, and it's always good to get some ideas
and get inspired. And speaking of you never know what
you're gonna find little gems. And I love when you
bring in these featured listings, and I don't know what
(01:25):
goes into selecting them, but I'm always amazed by what
you're bringing in. Great houses, great neighborhoods, great prices, and
this house this week is no exception. Right on Hamilton
Avenue in Janesville. Let's talk about this nice little little
house you got listed there.
Speaker 5 (01:40):
Yeah, it's kind of hard these days to find a
house under two hundred and fifty dollars, especially one of
them three bedrooms. This one is fourteen zero nine Hamilton
Avenue in Janesville, and it's a little ranch home that's
three bedrooms, one bath, built in nineteen sixty eight. And
I just really like this listening, to be honest with you,
(02:02):
it just seems like the perfect either starter home or
rental for someone that wants to get into single family rentals.
It's got all the bedrooms on the main floor, got
hardwood floors, and then yeah, one of the big things
I really like is the space in the basement. Maybe
to finish off, it's a big, wide open basement as well.
Speaker 2 (02:22):
You mentioned rentals there to do.
Speaker 1 (02:23):
We see a lot of folks kind of getting into that,
those who are kind of in that position. It seems
to be a really nice spot to be in if
that's something that you might be interested in doing. Is
there are places just like this which are just ideal
you think about your potential tenants, families, those type of folks.
Do you get a lot of people that are saying,
you know, we're looking to pick up some property just
(02:45):
to use as whether it's commercial or residential, and use
it as as an opportunity to rent.
Speaker 5 (02:52):
Yeah, I think that single family homes, I think it's
a pretty good opportunity for rent. I think most people
think of two units or four units rentals, but I
think there's a good market for single family home rentals.
Speaker 4 (03:03):
A lot of especially even professionals.
Speaker 5 (03:06):
Are thinking, hey, I don't know how long I'll be
in this job in this location, I'd rather just rent
in the meantime.
Speaker 3 (03:13):
Keep things free and fluid, and.
Speaker 5 (03:16):
Yeah, this would be a good one for that, that's
for sure. I mean, I don't know if you saw
the updates on.
Speaker 1 (03:20):
There, new windows and doors, I think, yeah, yeah, new
furnace you see.
Speaker 4 (03:26):
Yeah, that sounds sounds like a lot of it's been
done already for you.
Speaker 1 (03:29):
So I think for a lot a lot of folks
who have owned a home, they start seeing those things
and right away they queue and they go, that's what
I'm looking for.
Speaker 2 (03:36):
Yeah, those things.
Speaker 4 (03:37):
It takes a unique buyer to to want to do updates. Yeah,
so this is this is a good one for everybody.
Who's our listing agent on this, this one.
Speaker 3 (03:45):
Is Britney Doyle.
Speaker 2 (03:47):
Britney Doyle Doyle.
Speaker 5 (03:49):
Yeah, so I think we'll get you her number here, yeah,
and give her.
Speaker 4 (03:52):
A call about the about going out and seeing a
showing or something.
Speaker 1 (03:56):
Yeah, and you can check that out too if as
we're talking this morning again, that's set fourteen oh nine
Hamilton Avenue in Janesville. You can learn more about it
online at rock Wisconsin dot com. That's rock Wisconsin dot com,
or you can give Britney a call six oh eight
four nine eight seventy seven ninety seven. That's four nine
eight seven seven nine seven for Britney. And again it's
(04:17):
a great property. Again, a lot of great potential and
a move in ready. As I sometimes feel like if
I say great potential, people are like, oh, what does
it needn't know?
Speaker 2 (04:24):
This thing's gotten.
Speaker 3 (04:25):
It's good to be solid.
Speaker 2 (04:26):
It is solid.
Speaker 1 (04:27):
This week, Matt, we're gonna be kind of putting on
a bit of a clinic when it comes to understanding
real estate and a bit of a buyer's guide. And
I know this is something you make available to folks
you work with, and there's a lot of in with
every industry, industry jargon, different things that go on that
people don't always know until they get into it. And
having a nice little sheet like this a couple of
(04:48):
pages to kind of get potential buyers and sellers all
on the same page for understanding is really important. And
let's talk about some of the stuff contained in here,
and and kind of the behind the scenes stuff with
real estate agents, and let's kind of break down some
of their main roles. And I think starting off, of course,
the ability to communicate, listens and and really can can
(05:09):
put your wants and needs into action and potential showings.
Speaker 5 (05:13):
Right, yeah, this is this is a guide that we
use during kind of buyer consultations. I think it's a
it's a step that's missed a lot for the home
buying process.
Speaker 3 (05:24):
I think most people they.
Speaker 5 (05:26):
Want to shop online, they want to click showing, and
they want to get.
Speaker 3 (05:28):
Through the door. Right.
Speaker 5 (05:30):
But you know, it's best if you can sit down
with an agent and go over some things first. It's
best to be educated before you walk through that door.
Speaker 3 (05:39):
And not only you.
Speaker 5 (05:40):
Know how the buying process works, but you know offers
and what the what the different rules are. One of
the things that we like to go over is different
clauses that we might think of on an offer once
it is time, right, but to have those in your
head as you're going through a house helps versus trying
to do it fast to the fact, especially if you're
(06:01):
competing with other offers.
Speaker 1 (06:02):
Let's talk with some of the vocabulary and the one
that we hear a lot and it is the word
itself does have a meaning, but it's very particular depending
on who's doing it and for what. Which is an
appraisal and when it comes to in the in the
real estate world, an appraisal who are we talking about
there and how is that that used as far as
part of the process.
Speaker 5 (06:22):
Yeah, I think one of the biggest confusions is the
difference between appraisal and assessment.
Speaker 3 (06:27):
So assessment is just.
Speaker 5 (06:30):
A company that could sent out by your municipality, your city,
your town, village, and they come through and give an
idea of what they think the value of the property
is for tax purposes, right, that is not an appraisal.
An appraisal it requires a certified appraiser who comes out,
actually goes physically through the property, does measurements, takes pictures,
(06:54):
pars it to other recently sold properties.
Speaker 3 (06:56):
It's a much more accurate estimate for your house.
Speaker 5 (07:00):
And it's something that you know ninety percent of the
time is ordered by a lender, but it is something
that a home buyer could potentially order themselves if they
were going to like purchasing cash and not use financing.
Speaker 1 (07:13):
And there's and when with an appraisal, it's it's a
detailed report as well. You mentioned they look for comparables.
And not only are they looking at other houses in
the neighborhood that are similar, that have that have recently sold,
they're really and I think for most most lenders they're
looking for these appraisers. They're very detailed, like what type
of what's and I think for homeowners as well or
potential buyers, getting that appraisal is a nice little almost
(07:36):
like a like a quick start guide for home ownership
that gives you a good rundown of what it is
that that you're about to buy.
Speaker 5 (07:43):
Yeah, just yesterday I was actually looking at an old
appraisal from one of our own, our properties I own,
just because I wanted to see, you know, what kind
of you know, information was in their square footage comparables.
Speaker 3 (07:53):
And yeah, it's very useful.
Speaker 5 (07:55):
They're not only going to kind of compare apples to apples.
They can sometimes compare apples to oranges. They can take
two three bedroom homes and say, okay, this one has
a garageous one doesn't What does that do to affect
the value.
Speaker 3 (08:05):
So very very helpful.
Speaker 1 (08:07):
Very talented folks there for sure, talking this smart. Speaking
of talented folks, the team at Rock Realty love to
talk with you all. Get to pick up fe this morning,
give me a call. Six So wait, six seven three
fifty four hundred. That's six seven three fifty four hundred.
Even easier head on over to the website Rockwisconsin dot com.
That's r O c K Wisconsin dot com. A term
you hear a lot is closing costs, and that is
(08:27):
one where you go, oh, my.
Speaker 2 (08:28):
Goodness, what does this mean?
Speaker 1 (08:29):
And of course, if you're working with a good agent
and good lender, you'll know exactly what that means well
before closing. But let's talk about what those closing costs are.
Speaker 5 (08:37):
Sure, Yeah, closing costs tend to mostly be related to
the title company and the lender. Right, So you'll have
closing costs for the underwriting process from a lender, of
closing costs for like an origination fee from the lender
you can, and then as far as the title company goes,
(08:57):
you're gonna have your your title insurance, you're going to
have different fees they've they've used for procuring some of
the old title and deeds from the county. So there's
a there's there's a number of small little costs that
that kind of add up to your closing costs.
Speaker 3 (09:14):
Bucket, what is.
Speaker 2 (09:15):
That we hear that term closing? What exactly is closing.
Speaker 5 (09:18):
Mat Yeah, so in our state, you know, title companies
typically will manage the closing process, they're going to make
sure that the deed is free and clear for the
new owner, and they're going to make sure.
Speaker 3 (09:32):
That all parties that need to.
Speaker 5 (09:34):
Get paid get paid, including maybe past taxes that weren't paid,
current probation on taxes, commissions as well, the lenders, old
leans that were on the property that were forgotten until
they pulled a title report. So all those things just
to make sure that a buyer when they buy it
(09:54):
can be free and clear and free of worries, and
the title insurance will cover them if they're is anything
found in the future that wasn't somehow caught by the
title company, but that's an extreme rarity, but the insurance
is there for that.
Speaker 2 (10:07):
It's fantastic.
Speaker 1 (10:08):
By the way, closing too is a correct me if
I'm wrong, that's one where you'll walk out with keys
and garage door openers in hand.
Speaker 2 (10:13):
Am I right on?
Speaker 3 (10:13):
That should? Yeah?
Speaker 4 (10:14):
I mean it's a big purchase. Hopefully a botches some keys.
Speaker 2 (10:19):
Oh that'd be great, get everything.
Speaker 4 (10:21):
But the key is you get to look at your
your pretty new thing that you bought.
Speaker 1 (10:25):
You can't go in exactly as we're kind of working
our way through these these some of these terms contingent
that is that can get a little complicated, and we
talk about some of the great benefits of working with
it with a good agent. Understanding contingents and contingencies is
an important part of it.
Speaker 2 (10:40):
What is a contingent?
Speaker 5 (10:41):
Yeah, contingencies in an offer is a protection of some kind,
whether it be for the seller or the buyer. The
majority of offer contingencies are related to the buyer, whether
or not it's an inspection contingency so that.
Speaker 3 (10:55):
They could get out of the.
Speaker 5 (10:56):
Offer or negotiate if something's found, or if it's a
finance and get tency, meaning you know, they're covered in
case they can't get financing.
Speaker 3 (11:04):
For the problem for the property.
Speaker 5 (11:06):
But the financing contingency itself also has kind of a
seller aspect in which the seller says, hey, you've got
thirty days the financing and I can get out of
the offer. So that's that's one of those contingencies that's
actually for both the buyer and the seller, which is
sometimes missed.
Speaker 2 (11:22):
Matt, what about earnest but that earnest money.
Speaker 1 (11:24):
That's a term that I think a lot of us
here often but don't fully and be honest. I don't
even know I've heard the term a lot. What is
earnest money?
Speaker 5 (11:32):
Yeah, it's you know, a small amount or sometimes larger
that you can as a buyer, put towards the transaction to.
Speaker 3 (11:39):
Show you are serious.
Speaker 5 (11:41):
Okay, it's set aside in a trust fund. Sometimes the
listing firm holds that money. Sometimes the title company holds it.
The trust fund is regulated by the state by certain rules,
and they're not allowed to distribute that money without both
parties agreement. So it's a safe space to put money
(12:01):
to make it so that if I'm a buyer and
all of a sudden, this much more pretty house comes
on the market, I can't just jump ship well and
get that back.
Speaker 3 (12:09):
That would have to be negotiated after the fact.
Speaker 1 (12:12):
Would that earnest money then be applied to when you
make the purchases, maybe like a down payment or part
of your payment to purchase at home.
Speaker 5 (12:18):
Then yeah, if you move to closing, that artists money
gets to be placed towards your down payment indoor closing costs.
Speaker 1 (12:24):
Fantastic talk this morning with Matt Heyman of Rockrealty Online
Rockwisconsin dot com that's orock Wisconsin dot com.
Speaker 2 (12:31):
Head on over there. Right now.
Speaker 1 (12:32):
Check it out online. Speaking of checking things out online,
featured listing this week fourteen oh nine Hamilton Avenue in Janesville.
You can see that at Rockwisconsin dot com or give
Britney a call six oh eight four nine eight seventy
seven ninety seven. That's four nine eight seventy seven ninety seven.
We'll continue a conversation with Matt talk a little bit
more about some of the terms that are used in
the industry and why they are important. We will do
(12:54):
that next as Ask the Experts with Rockrealty continues right
here on thirteen ten wib I eight fifty one thirteen
ten wiv and Ask the Experts. Hanging out this morning
with Matt Heytman. Of course Matt comes. So it's from
Rock Realty Online, Rock Wisconsin dot com. That's r O
(13:15):
c K Wisconsin dot com. TELF number six so eight
six seven three fifty four hundred. That's six seven three
fifty four hundred. Talking through some of the vocabulary and
some of the terms you'll hear when it comes to
real estate, and every obviously industry has a very their
unique terms and things that are very specific have very
important meanings and understanding that as a potential buyer potential
(13:36):
seller is very very important in all this information of
course available to anyone that works with Rock Realty. And
next point that comes up is a home inspection, and
I think for a lot of us we go but
didn't I already have that with an appraisal. These are
two different things, aren't they.
Speaker 3 (13:50):
Yeah? They are.
Speaker 5 (13:52):
The home inspection is going through and looking at condition
of the property, not necessarily value in any way. The appraisal,
obviously is to determined value. It's going to need to
be a certified home inspector. They go through the property,
they find out what's working, what's not, what's working. They
can identify what they think is a defect, what they
(14:12):
think is a concern, maybe something that needs additional follow
up by another professional.
Speaker 1 (14:18):
These are guys and gals that have flashlights and look
like a contractor, and they'll end up in your attic,
They'll end up in parts of your basement crawl spaces
if you got them.
Speaker 2 (14:27):
They go everywhere.
Speaker 4 (14:28):
They sometimes wear overalls even yeah, so you know that's
the real deal.
Speaker 5 (14:32):
But no, Now they have Fleer cameras for sensing heat series. Yeah, yeah,
so we'll get reports back that show you know, different
maybe potential voids and walls where insulation might be light
or missing, where there might be potential roof leaks because
it's colder, showing colder on that ceiling.
Speaker 1 (14:52):
So wow, with the home inspection as well as that report,
is that used by the buyer, the seller, the the
financing I mean, who all has access to that home inspection?
And I've got to guess if you're a potential buyer
and something comes out in inspection, you've got a negotiation.
Speaker 2 (15:09):
There is am I reading that right?
Speaker 5 (15:11):
So if you have a home inspection contingency and an offer,
the buyer is requesting the home inspection, they more often
than not are paying for the home inspection, and then
that home inspection would get provided to the seller so
that they could see it.
Speaker 1 (15:24):
Okay, So does that ever come up then as far
as negotiations or we pass that point.
Speaker 5 (15:29):
Or oh no, that's definitely part of it, right, you know,
as the offer sort of states, you know, it just
gives people the option of getting out of the offer.
But the kind of the true rubber where the rover
meets the road is it allows for negotiation, m you know,
with the seller. So the buyer can say, hey, instead
of me getting out of the offer, let's let's uh,
(15:50):
let's give me a little bit of a you know,
closing cost credit sure.
Speaker 3 (15:55):
Or let's lower the price or something like that.
Speaker 1 (15:57):
They're like potential like let's say like a fireplace that
may need some repair that wasn't would that be like
could there be like money saying like an allowance or
something to say to cover these costs? To say, you know,
as a potential buyer, love everything about this house, but
obviously the fireplace or something Chimney's gonna need some repair
is Can there be a discussion about seller pays for
(16:18):
that or puts into an account money to repair that.
Speaker 4 (16:21):
Yeah, So there's a lot of different ways you can
go with that, and it all depends on kind of.
Speaker 3 (16:24):
Seller situation and buyer situation. So let's say we.
Speaker 5 (16:26):
Have a seller that just doesn't have a lot of
cash on hand at least that's what we're hearing, right,
we can maybe just lower.
Speaker 3 (16:33):
The purchase price.
Speaker 5 (16:34):
Let's say that we have maybe a lender that says, hey,
that has to be fixed prior to closing, then you'll
want to negotiate that it actually gets repaired prior to closing,
but if you know, there is also the option like
you're kind of referring to, is you can put money
aside in escrow so that it gets fixed after closing
(16:55):
as well.
Speaker 3 (16:55):
So there's a lot.
Speaker 5 (16:56):
Of different ways you can go and it all depends
on the situation. So that's when having a real.
Speaker 2 (16:59):
Estate Yeah, it's important. Yeah stuff.
Speaker 1 (17:02):
By the way, as we talk about these items, and
that's one of the great things about having Matt here
to pick his brain each each and every one of
these items, there's a lot of inner workings and a
lot of a lot of things that can happen because
of the results of this stuff. And as we kind
of break some of these situations down, it's one of
the great benefits of working with a really good, solid agent,
(17:24):
one that knows you, knows the market, that understands how
to handle these type of situations when they come up,
it's a great time give them a call it Rock
Realty six to eight sixty seven three fifty four hundred.
That's sixty seven three fifty four hundred online Rock Wisconsin
dot com. That's Rock rck Wisconsin dot com. Preapprovals are
they absolutely necessary in the world we're in these days.
(17:44):
And what is a pre approval for folks that may
not know.
Speaker 5 (17:47):
Yeah, I would say that, you know, for a number
of years, it's been an expectation by sellers if you're
going to put a financing contingency in your offer, they
want to know that you actually have a good likelihod
of getting finances.
Speaker 4 (18:01):
Yeah, right, So a pre approval, there's there's kind of
two different.
Speaker 5 (18:05):
Versions, right, And the lingo behind the whether it's a
pre approval or a pre authorization changes depending on the lender.
But lenders can run your credit score and just take
your word for how.
Speaker 3 (18:19):
Much you make, okay, And that's the kind of weaker
of the of the two.
Speaker 4 (18:22):
And then or they can actually verify.
Speaker 5 (18:24):
Income and go through a lot more details and kind
of start to underwriting process beforehand, and that's a much
more stronger pre approval.
Speaker 1 (18:32):
Fantastic information this week, as always from Matt Heytmen of
Rock Realty. It's got about a minute left real quick.
Fourteen oh nine Hamilton Avenue in Janesville. That is our
featured listing this morning. Three bedroom, one bath under two
hundred and fifty thousand dollars, great area, great house. Check
that out online. Rock Wisconsin dot com. Give Britney a
call for a showing. Six soh eight four nine eight
seventy seven ninety seven. It's four nine, eight seventy seven
(18:54):
to ninety seven. Matt, time flies by more hanging out Luba.
Speaker 2 (18:57):
It's good to see U.
Speaker 1 (18:58):
Get to the website. Rock with Gunson dot com. That's
r O c K Wisconsin dot com. Vicky mckennaugh. She
comes your way next year at thirteen ten Wi b
A
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