House buying. Down payment assistance. Portability.

Episode Transcript

Speaker 1 (00:15):
Navigating today's real estate market can be tricky. Want to
buy or sell a house, finance or insure a house,
or stuck with a house and don't know what to do.
Florida Talk real Estate has been your local one stop
real estate shop since twenty twelve. Get the advice you
need from your local real estate pros. Here are your hosts,
Jim Depola and Johnny c Live on real Radio.

Speaker 2 (00:36):
It's Saturday morning. Welcome to another edition. It's Florida Talk
real Estate for two hours of infotainment on a Saturday.
Great to have you with us. Whether you're all in
the old terrestrial radio ninety two one one on one seven,
thanks for being there. Maybe you have your free download
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listening on that, that's pretty cool. And we live stream

(00:58):
as well on a Saturday. Join us maybe on Facebook.
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on YouTube, home of a ton of informational chunk videos
plus your live stream every Saturday. If you're with us already,
thanks for being there. If not, remember you can always
join us there. Speaking of joining us, you can always
join us live on the radio toll free at eight

(01:20):
seven seven nine two seven six nine six nine. Questions, comments,
concerns in the world of real estate dial up. Want
to join in the conversation at hand, don't be shy.
First voice, you'll hear the melodious tones of our producer extraordinary.

Speaker 3 (01:33):
There's Jimothy, my brother from another mother. What's up, dude?

Speaker 4 (01:35):
Hello, Hello, and good good morning. Johnny. How are you
doing today, buddy?

Speaker 2 (01:38):
I'm doing all right, man, awesome. Yeah, always nice to
see you.

Speaker 4 (01:41):
Always good to see you as well.

Speaker 2 (01:42):
Rast sunshine as I walk in the door. Yes, yes,
no matter what the weather's like, Johnny C. That's me,
your old buddy, your pal. Let's get your starting lineup
on a Saturday morning. The very important people include Mike Row,
the mortgage guy from the mortgage firm.

Speaker 5 (01:56):
Hey, good morning, VIP, Yeah nice always, good morning.

Speaker 2 (02:00):
Hi.

Speaker 5 (02:01):
Hi, how are you? That was amazing? You were you
were doing your intro? You were did the glasses swap
right off with the sunglasses on with the indoor glasses?

Speaker 2 (02:11):
I guess so, yeah, so sunglasses too.

Speaker 5 (02:14):
You did it without missing a beat.

Speaker 4 (02:15):
Yeah, mister Rogers sneakers and shoes.

Speaker 5 (02:18):
That's right, that's right. It was Johnny coming in.

Speaker 2 (02:23):
Yeah, and I was having issues too for some reason,
our like headphone thing, like they are super low volume.

Speaker 3 (02:28):
I couldn't find one. As the intro is playing.

Speaker 5 (02:30):
I saw that, and when you made the first switch,
I was I was hearing the music and I was
watching you, and I was like, is he gonna pull
it off? And of course he did.

Speaker 2 (02:37):
Yeah, Yeah, we'll pull it off.

Speaker 3 (02:39):
It's just not going as well as i'd like you to.

Speaker 2 (02:41):
Yeah, you know, hey made me need a hand, That's
what she said. Volume knobs there there are, Yeah, and
they even even maxed out. It's like, really eleven, yeah,
even put it to eleven. That one goes to eleven.
None of those ones. That's why I'm in that one.
Nice rock star. Yeah, let's get our fearless leader going

(03:03):
into this program on a Saturday. Thirteen plus years now.
I've told you he runs a top producer in Calowiams
Teem the Florida Home Pros Team, Callowiams Innovations. Jimmy, Hey,
I'm feeling good.

Speaker 6 (03:14):
Everybody happy, South Florida. I'm really happy to be driving
down here today seeing the nice weather. Full moon's coming
up on Monday, so this weekend should be nice stargazing
a little bit, hopefully, you know.

Speaker 3 (03:28):
Oh weather cooperates.

Speaker 6 (03:29):
Yeah, I don't know how cloud is gonna be. Yeah.

Speaker 5 (03:32):
Well you think when there's a full moon out it's
better for stargazing or.

Speaker 6 (03:35):
Yeah, I think so it's brighter, you have more light.

Speaker 2 (03:38):
I know.

Speaker 6 (03:39):
That means you're gonna tell me that's harder to see
the stars, but you got the moon, and I'd rather
see a moon than a bunch of twinklins.

Speaker 5 (03:45):
Well, but the moon is in the star.

Speaker 2 (03:46):
Yeah, I know.

Speaker 5 (03:47):
But well mooning if you're moon gazing, Yeah.

Speaker 6 (03:50):
Well what happens to moon caazing? Does that mean you
can't look at any stars? You only could look at
the moon. Stargazing you ignore the moon.

Speaker 2 (03:58):
But the bright the moon, the brither reflection off the moon.

Speaker 6 (04:02):
I know. I just said that.

Speaker 5 (04:03):
Have you noticed how when when the sun like during
the day, you can't see any stars because of the
bright object.

Speaker 6 (04:09):
I see the moon.

Speaker 2 (04:11):
That was one of my date of the parking lot
and just stare and people be like, what are you
doing with the stars are amazing?

Speaker 3 (04:18):
And they look look.

Speaker 2 (04:20):
Back at you. Look Yeah, they're there.

Speaker 5 (04:23):
Oh special lea, you know special context. Sorry, that's okay, No,
what were you saying that it's going to beautiful evening,
It's be.

Speaker 6 (04:32):
A nice weekend. And also it's Mother's Day's weekend, so
happy Mother's Day everybody, all the moms, all the mother's out.

Speaker 2 (04:38):
There, even your mother follows out there.

Speaker 6 (04:39):
Today's mom, Happy birthday. Choice not birthday. I just said birthday,
mother day. That's like yesterday. When last week when I
sang that's stupid dinny thing and I didn't do it
right Jack and Diane thing. I should have said, Greg
and dian I said, are you still hung Yeah? Still
bother bother you?

Speaker 5 (04:57):
Yeah, he said kitty, And I was wondering, are you
really singing you know, puffy songs right now? Like wait
a second. Yeah, it's kind of to somewhat topical.

Speaker 6 (05:11):
So yes, this show is going to be a special
show today, guys, this is going to be the summer
twenty twenty five Buyer's Guide, and it's going to be
all about buying homes this summer, because that's what this
summer is really going to be about. It's going to
be the summer of the buyer and what and I
know a lot of people might be going, yeah, right, whatever,

(05:32):
But as we go through all this today, you're going
to see that there are a lot of opportunities out
there for people. And what we're gonna do is we're
going to walk you through the whole process and include
how government programs can get involved in the process. Some
people will use government programs for down payment assistance programs,

(05:53):
some people will not. But we're gonna weave the down
payment assistance programs into the timeline of this uh summer
of buying. And I really think that's what's going to
happen this year. The buyers are going to get really
really good deals this summer. And you know, Johnny, before
we get into everything in a little bit and some

(06:14):
shout outs, you know what. I was driving out in
the acreage area and I saw one of those little
bandit signs and it said two bedroom, two bath, one
car garage mother in law, ooh uh one nine. And
I was thinking, did you see that sign? It sound
by your area mine?

Speaker 5 (06:35):
I haven't seen that one.

Speaker 6 (06:36):
Yeah, so that one's on four forty one as you
go to per Simmons. Okay, okay, yeah, But I was like,
I was like, only one ninety nine for a mother.
That's if you have a property in the acreage you
want to put a second building on there, they're charging
you two hundred thousand for the new building, and that's
a two two. So I was thinking, I wonder what
it would be for one one huh, and maybe you

(06:57):
can buy I'm just throwing eyed idea if you found
out that the brand new mother in law was let's
say I'm making it up one fifty, right, maybe you
buy a property where you could put the new thing
on and still have the financing where it all works out,
the numbers work out.

Speaker 2 (07:13):
Yeah, yeah, opposed to look, it's always been part of
the equation right in the in the mindfulness. But I
always assume about.

Speaker 6 (07:19):
Two you were thinking that anyway, Yeah.

Speaker 2 (07:21):
But I I've never found anything for one night.

Speaker 6 (07:26):
Yeah, so and all was was a bandit side. All
it says is two to two one mother in law.
That's all I said.

Speaker 2 (07:33):
Nice.

Speaker 6 (07:33):
So, but anyway, it's just another opportunity you're looking at
it instead of finding the home with the mother in
law suite built in that you kind of added on
later or not not later, but as part of the deal.

Speaker 5 (07:46):
One one one fifty. I think I'd go for the
two two.

Speaker 6 (07:48):
At two hundred, you probably would yet for value, yeah,
just just because well more affordability potential. Right, Let's say
the fifty grand puts you out of your more. Yeah,
So that's what I was going to ask on this subject.
I know we're getting a little off trap. It's kind
of interesting because you never talked about something like this.
Could you buy a home and use a new construction

(08:09):
loan not to add onto the home or change the
home you're buying, but adding on a completely different structure
onto the property and included as one big mortgage.

Speaker 2 (08:19):
So we talked a little bit about this in our
early stages, well me and me and Mike on the
early stages, like when we were first setting up the app,
because I was like, well, we could do this, we
might be able to do this, and this might be
an option in this And I think you broke it
down to it all like it all hinged on the
the ultimate value right of what was said and done

(08:41):
and over improving. I know it was a word that
you kept kind.

Speaker 5 (08:44):
Of that's I mean that would apply in general when
you're doing like any of these.

Speaker 3 (08:51):
Because I was inquiring about construction loans of the.

Speaker 5 (08:54):
Renovation of the three c's of what it is, two
of three probably you're pretty clear, say for everyone three
C f A maybe one of those.

Speaker 6 (09:04):
Now profit for profit more.

Speaker 2 (09:08):
Not for profit donation. Speaking of which my fund page
right now, the five one, Johnny, that's what I'm confusing
it with.

Speaker 5 (09:20):
So that that's definitely something that I would talk about. Uh,
and comes to the top of mind when when we're
doing the renovation loans, just you know, you have to
kind of what's the budget to acquire the property, what's
the budget to renovate? And I think Jim's question, I
don't know that we've talked about it. I don't remember,
but building a mother in law suite, so you're not
necessarily renovating the home that you're buying, your renovating and

(09:41):
building a mother I don't know the answer to that, Jim.
And I even told you this morning you're talking about
this theme. I was like, Jim, you're not going to
stop me. Did you prepare? I'm like, you're not going
to stop me?

Speaker 6 (09:52):
And here you go, guy, the buyer Guide will not
be a stump. This is just popped into my side.
Sorry if I got him ah.

Speaker 5 (10:01):
But if people already own their home there and they're thinking,
how do I finance a mother in law suite, that's
something you can use home equity for. Yes, I mean
you could do a refinance too, but you could also
home equity or perhaps even the people who are advertising
the building, they might have some sort of financing mechanism,
you know, arrangement, you know, our relationship lined up.

Speaker 6 (10:24):
Yeah, kind of interesting anyway, just thought about that when
I was driving around. I want to just do a
couple of shout outs. I want to do a shout
out to Kathy. Kathy hired us to sell her home
in West Palm. It was just put on the market.
I think like thirty six hours ago. It's a two bedroom.

(10:44):
This is a great up. Here's a great opportunity for
first time home buyer. Right, everybody says everything so expensive everything.
Here's a three bedroom, two and a half bath town
home in a really good part of West Palm that's
close to every thing, great community, nice and safe. H
Away is only three hundred and five dollars a month,

(11:06):
and Kathy is asking three hundred and ten thousand dollars
for this town home. If you use like the Hometown
Heroes Virus program, which we were talking about. We're going
to be talking about it more detail later today. This house.
You probably could get this house for like ten to
twelve thousand dollars out of pocket if you use the

(11:26):
down payment assistance program. Great, and that's not even including
if you get any help from the seller. That's just
using the down payment assistance program. So a lot of
people are paying like twenty five hundred to three thousand
dollars a month right now for rent. So first last
security is going to be almost the same as moving
into a place like this. Almost roof is newer in

(11:51):
this community. But you don't even have to worry about roofs,
which is a big insurance worry for everybody, because the
roof's taken care of by the community. There's no assessment
coming up. They already put all the roofs on like
four years ago, right, So this community is like really
solid for the future, right and the HA is only
three h five for it. So you know, here are opportunities.

(12:13):
And let me tell you these homes are great starter homes.
These I call them the Bergen Devasta homes.

Speaker 5 (12:19):
How many bedrooms is that?

Speaker 6 (12:20):
This is a oh? I'm sorry. Sometimes there are three bedroom,
but this is a two bedroom, and thank you, Mike,
thank you for doing that. There's two upstairs, there's sometimes
there's a one bedroom downstairs. This one doesn't have that,
but it's two and a half path and it's been
nicely updated over time. Really great value, only three hundred
and ten thousand. So if you're a buyer you're looking
for an opportunity, give me a call on that. And

(12:42):
if you're a realtor has a person on a budget,
this is a really great opportunity for them to look
at it. They're not going to be disappointed with the inside.
It's not going to feel like it's overpriced for the condition.
It's going to feel like there's value there and buyers
will see that there's opportunity, So please check that out.

(13:03):
Thank you Kathy for trusting us. On top of that,
we hired we helped Kathy hire an agent in Myrtle Beach,
South Carolina, and Kathy is planning on when she sells
here to move up there. That is another great seller
buyer story that we're working on that's in the process
of being finished. We had Greg and Diane last week.

(13:26):
Our most recent seller Buyer Buyers, and they were on
the show actually in studio last week, and we had
a really great time with them and learned a lot
about their process and their journey. Kathy's is kind of
interesting because she came to us about six months ago
and she said she wanted to move up to South Carolina,
and I followed her for quite a while. She had

(13:48):
to go to a family ringing in another state, and
then when she was done with everything, like three or
four months later, be goes, now, I don't want to
do it. I'm going to stay here and that's okay,
there's nothing wrong with that. She had to go through
that part to find out does she want to stay
here or move up north?

Speaker 2 (14:02):
Sure, a plan that can't change is a bad plan.

Speaker 6 (14:04):
Yeah, exactly right. So we went through everything and then
next thing I know, I get a call from the
agent that I had placed her with up there, right,
And the agent goes, I think you're going to be
getting a call from Kathy and I'm like okay, and
she goes, yeah, I think that she found the exact
community she wants to move into and that she's going

(14:25):
to want to put her house on the market pretty quick.
A week later houses on the market in Thursday.

Speaker 5 (14:30):
That actually brings up something maybe is important to buyers
because maybe part of what we got, you know, whatever
was going on personally, but maybe she didn't find the
house she was looking for and that kind of put
her off. Well, making the big movie and that was
the thing.

Speaker 6 (14:45):
So she wanted to move to this area of South Carolina.
But her idea was when she first started the idea
right and meeting with me and find out what she
can net, to find out what she could buy up there.
I think I talked to Kathy, Yeah you did, right.
I think she's and on doing cash, but we have
there go to you just in case she needed a mortgage, right,
So you're her backup, you know, safety net if it's needed.

(15:07):
So what would happen is is she originally wanted to
be in a non ha and a single family home
a little bit outside of the main town of Myrtle Beach.
What she's buying is a condo inside a tennis skating
tennis community where there's all this activity and every you know,
she has all these social network that she could build

(15:30):
when she's up there. So she flopped one hundred and
eighty degrees as to what she wanted. That's what's great
about our system. We put no pressure on you. We
give you your numbers so you know what you can
or can't do, and then you take your time and
figure out. You know, is the move right, is the
move not right? You can change your mind, not change
your mind to whatever you want. It's awesome. So I'm

(15:51):
really excited for her right now.

Speaker 2 (15:53):
Exciting.

Speaker 6 (15:53):
So next step is sell that house, sell that town home.
So that's all working on, So anybody interested, please give
us a call.

Speaker 3 (16:01):
Sounds like that's probably going to get some action.

Speaker 6 (16:03):
Yeah, I hope, so it should get some action. And
we're priced very competitively in the community. So I think
only two other units in there, so I know one's
more expensive than us. I think one's slightly less expensive,
but I feel like ours is better conditioned.

Speaker 2 (16:18):
Floridatokreal estate dot com. If this peaks an interest for you,
great first time buyer opportunity for sure, get get things
lined up, Get with Mike Mike Row, the mortgage guy
from the mortgage from gett an understanding of exactly where
you are and if this might be something that's right
for you. Floridatokreal Estate dot Com. That's floridatokreal estate dot com.

Speaker 6 (16:38):
And Mike, what states do you in again? Georgia, Florida.

Speaker 5 (16:43):
That's when I can think of off the top of
my head. Yeah, Florida, Georgia, South Carolina, Virginia, Colorado, and Tennessee.
Is that right? Tennessee? Yeah?

Speaker 6 (16:56):
I think Tennessee. Yeah, Tennessee. I have a guy that's
going to be trying to move to West Virginia. I
wish you had. Yeah, you're just one state, one stayed
away from where he's going to be.

Speaker 5 (17:05):
I mean, I could look into it. That's usually what
I end up getting licensed in a state, just because
I have some of an opportunity. And then so you
have to go through you know, there's some education required
and then obviously you got to pay the licensing it stuff.
But usually it's worth, you know, doing it if there's
a deal there.

Speaker 6 (17:22):
Yeah, for sure, for sure a deal.

Speaker 5 (17:25):
Yeah.

Speaker 6 (17:26):
Just two more quick shout outs. I wanted to give
a quick shout out to Charlotte Carrie and Tammy. Charlotte
is the mom. We helped her buy a new place
about I don't know, about four months ago, I guess,
and now we're selling her unit. We got under contract.
We've gone through the inspection, appraisal. The negotiations on that

(17:50):
one were really, really tough, but we got it done
and it's now we're just waiting for the closing. I'm
not too worried about the appraisal.

Speaker 5 (17:59):
You got to have the jim. You can't have everything
here like super easy, right, Like you got to keep
your this last two weeks with edges, your edges. Yeah honed, Yeah, yeah,
I was on the wet stone a lot this last
couple of weeks. So UH also shout out to Janet
and Sean.

Speaker 6 (18:16):
They're big time listeners to Real Radio. They hired us
to sell their house and they're buying a new home
up in Tennessee. They found a new place up there.
We placed it with an agent that helped them find
the place up in Tennessee. Cool, and we got into
contract last week and we've already done the inspection. Inspection

(18:38):
is done. It's a cash deal, so we don't have
to worry about the appraisal. We're waiting for the h
way and the title to clear. They've already picked a
data when they're going to close up there, so we're
going to be doing a simultaneous close closed down here
in the morning. Then the title company will take the
proceeds of the sale from Janet and Shaun's house, send
it up to the Tennessee Title Company, which will then

(19:00):
close on their cash deal. Nice there, So looking forward
to get that one done for them. I'm really happy
for them and to get them to the next chapter
of their life. That's excitedly, really exciting.

Speaker 3 (19:11):
Yeah, very much.

Speaker 6 (19:13):
So thank you guys for all of that. And and
we're looking for new customers. We have a couple of
people coming up, but we're always looking for new business.
So if you're thinking about selling or buying, or selling
and buying, or you're just not sure if you should
sell or buy, we're the one that can get you
the answers that you need. And we're not going to

(19:34):
give you the answers that we want you to have.
We're going to give you all the answers so that
you can make a decisions best for you.

Speaker 2 (19:41):
Yeah, that's that's the reality. Experience it for yourself and
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that touches the world or real estate. You need professional
to handle what you got going on and give you

(20:03):
the guidance the options that you have. Get the understanding
at Florida talkreestate dot com Florida talkreestate dot com.

Speaker 6 (20:11):
Before after we take the break, we're really going to
get into the Summer twenty twenty five buyer Guide. I'm
really excited about this because what we're going to do
is go over downpayment assistance programs, but not just focusing
on that. That's just one facet of a home buying process.
Some people don't use those programs at all, right, right,

(20:31):
they're not first time home buyers, so what about them?
So we're going to talk about the whole buying process
of how to start qualifying for a mortgage if you
need it, trying if you're selling a house, how that
comes into play with the purchase of your new home.

Speaker 3 (20:45):
All of that.

Speaker 6 (20:46):
We're going to get into that on the flip side
of this. But before the break, I would like to
talk a little bit about what's happening here in Florida.
You know, they keep talking about trying to eliminate property
taxes in Florida every time it comes to yeah, and
I'm very I'm confused about it too, So the last time,
I don't real Can.

Speaker 2 (21:06):
I tell you what gets me? And maybe maybe it
might be the like contrarian nature in me. I'm really
skeptical about everything. You know, I'm a question authority kind
of guy, and I admit that may be the whole
root of what I'm dealing with, But I just don't
understand the motivation. Like what's the real endgame? Is it

(21:28):
about hooking up the homeowners? Because I think if it was,
wouldn't they have just already extended the homesteading, Like, just
if it's about keeping dollars in our pockets as primary residents,
as homesteaded residents in the state of Florida, just extend
our homestead extension, just just get it done, make it happen,

(21:51):
extended as far as you want it to. Then you've
taken care of all your homesteaded residents, which is all
that they seem to care about, because that's that's what
they're telling us. And it's done the fact that it
just keeps coming up and nothing's really happening. It tells
me that there's some ulterior motive. And maybe I'm just
that dummy that's like, ah, it must be some nonsense.

Speaker 3 (22:15):
Maybe I am. It's possible.

Speaker 2 (22:16):
I'm willing to admit it. But if it was really
as simple as make it happen for the home seated residence,
just do it.

Speaker 5 (22:22):
Yeah, you wouldn't have the whole trying to invent the
evils of property tax con it's so bad.

Speaker 2 (22:32):
There's a mechanism in place that saves home steaded residents
on their property tax, make it more valuable to them,
and all of a sudden, Tada's done. When it's not
happening that way, You're like, what's the real thing going
on here?

Speaker 6 (22:46):
Well, I agree, here's what I think. I don't trust
government either, and I used to cover government, you know,
part of the time, is a journalist. So I actually
watched how the you know, the the wheels are grease
stuff has made. The sauces is made here locally and statewide,
not so much nationally, but a little bit nationally. So

(23:08):
I've watched it all right on a local level, you know,
county level, state level, and regional level when they have
the regional things like the River Trail District and all
that stuff. But we're talking about a lot of money,
and I can't remember the number, and I want to say,
and I'm way off on this because you're going to laugh.
It's either fifty two billion or eight billion dollars, and

(23:29):
I think it's closer to the fifty two billion. Is
the money that's being raised from these property taxes, you know,
And we got to come up with that money because
that's our police and our fire and our schools and
our roads, you know, and all the other stuff that
we pay for. Right So that's got to be paid somehow.
And if you a lot of that does come on
the shoulders of property owners in the state, there's no

(23:51):
doubt about that. So they shoulder more of the burdens
of operating the state than a renter. Right. But at
the same time, so we have to figure that out now.
At the same time, there's a lot of local taxes
that are tied to your property tax bill, and like

(24:12):
one of the things that they have to do is
they have to go to every government agency that has
tax collected through the property taxes and get them to
change their rules in order to even make this happen. Now,
how complicated is that? There's sixty seven counties, Okay, and
I think Palm Beach County has something like forty something cities. Okay,

(24:36):
forty something cities in Palm Beach County. It seems to
be forty three, but it increased its west Lake and yeah,
that's it's in the forties for sure. Right now, Palm
Beach County is one of the biggest counties in the country.
People don't know this, but pom Beach County is the
biggest county east of the Mississippi, right, the biggest county
anywhere on the Mississippi. And we are the same square

(25:00):
models miles to the tenth of a mile as the state.

Speaker 5 (25:03):
The biggest like area wise, yeah, area.

Speaker 6 (25:05):
Wise, right, we're the biggest land mass population Okay, just
land masks.

Speaker 5 (25:10):
I didn't know that.

Speaker 6 (25:11):
Yeah. So, and we're the same size as Stellarware to
the same square miles. So I always joke that I
cover a whole state. You know, I cover a whole
state board right, and and plus because I do everything
from India River down to date. But but the thing
is is that this is a very complicated thing. But
you know, part so part of me is like, if
you don't have if if you don't have property taxes,

(25:34):
the only way I see that you're going to be
able to make up that money is to have huge
sales tax. Yes, right, that's the only I mean, I'm
I'm stupid about this. I'm not expert on taxes.

Speaker 5 (25:44):
Which is one of the people will say, yeah, you
make it a consumption tax instead of just like, hey,
I live here and I own here, I'm responsible. No
switch it over. People who voluntarily buy stuff right whenever
they're whatever they're purchasing, and it increases. But there's a
counter to that one.

Speaker 6 (25:58):
Well, economics. You know, if you take economic courses, which
I did, you know at University of FloriDada.

Speaker 2 (26:05):
Format.

Speaker 6 (26:06):
But when you take economics one O one, you know,
pretty basic. You know, when you do that, it usually
affects lower income people way more, way more than the
wealthier people. So there's there's a sliding scale of the burden.

Speaker 5 (26:19):
Right right now that a certain percentage of revenue for
the county and I guess you know, whatever state comes
from homeowners and you're the basically the idea is Okay,
we'll shift that to non homeowners, right, like the people
non homeowners aren't contributing, right, So yeah, to everyone, but
it's a big burden for people who you know, they're

(26:39):
they're renters, right for whatever reason.

Speaker 6 (26:41):
So so, and then the other the flip side of it,
and this is the part that's hard to defend in
a way, or not hard to defend, but it's an
interesting concept. The people that really want to wipe out
the property taxes and they really feel strongly about it.
Their argument is, Hey, if I own a property for
fifty years and I paid off the mortgage, you know,

(27:04):
twenty years earlier, and I still have to pay taxes
on the property for the rest, you know, as long
as I live and everybody else.

Speaker 5 (27:13):
Lives, and if I don't pay them, and if.

Speaker 6 (27:14):
I don't pay it, my property gets taken away from me.
So in that part, that part, I can kind of
understand people. You know, so I don't. I don't know
the answer. I don't know the answer to it, but
they are really I thought this was just like clickbait
from the state legislators. You know, they throw stuff, you know,
and I'm not talking of red or blue. I'm just

(27:36):
talking about politicians. Right, they throw stuff out there, little
red meat, let your chew on it for a little while,
and then you forget about it. Right, this is this
is still hanging around. This is still hanging around, and
on top of it, Montana just did it, right, Mentana
now completely different state. Montana. I don't even think it
has half of the Pompit population. The whole state I

(27:57):
think has half the population of Pompeya County. Case. So
we're talking about way different kind of situation.

Speaker 3 (28:03):
If you're on Ole, be patient, we'll get to your
call in just a second.

Speaker 5 (28:05):
They say Montana probably has large It's almost like the
TV show Yellowstone. You know, the property tax was gonna
bankrupt them because they owned all this land and the
property taxes are going to go up, and they basically
we're gonna run out of money because of this. So
I wonder if Montana has something similar where there's large landowners,
you know, big money guys who are interested in not

(28:29):
having their property taxes increase just because the value of
you know whatever. I can see economies increasing.

Speaker 2 (28:35):
Sure, the motivation to pay as little taxes exist I
think in all of them. Well yeah, yeah, I don't.

Speaker 6 (28:40):
Think you're gonna find is founded on it exactly.

Speaker 2 (28:43):
Well, you know what's funny is I mean we we
kind of are kind of country tariff on tea, which
is amazing, but look at where we're at in twenty
twenty five. But yeah, I mean ultimately yeah, no no
property tax, no income tax, like, yeah, that'd be great.

Speaker 3 (28:58):
It's just not the system we're build on.

Speaker 6 (29:00):
It's you know, it isn't because then you know and so.
But this is how Montana handled it. I don't want
to get into the wonky stuff because they do want
to take the caller. So just hold on one second, police.
It says how the how Montana did it. They cut
the taxes for homeowners, but second home, some big businesses,
their their rates went up.

Speaker 5 (29:21):
I think the.

Speaker 2 (29:21):
Businesses, they're the ones that get. The corporations get the
biggest break. They need to fut a lot more of
the bill. We all know that is never happening.

Speaker 6 (29:32):
Well they did it in Montana. Well that's a pretty
red state.

Speaker 2 (29:37):
In Florida, but how much how much the way the
burden gets pushed on tourism.

Speaker 6 (29:42):
Oh yeah, without you have that ability, we have that ability.
But but yeah, maybe we'll be like Vegas to start
doing resort fees, fees just to come into Florida. You
want to come into Florida, We're going to charge you.

Speaker 2 (29:56):
The good news is we we have, you know, a
whole new amusement area that just opened and that's going
to draw people from around the world. There's a big
buzz around those new worlds that have opened. I'm gonna
wait like a year. I mean, they're so busy. We're
already planning on waiting a year just to avoid the
the rush, the rush, the excitement. So there's there's a

(30:17):
big potential to land a lot of tourism dollars if
they if they angle it right, you want to take
quick call.

Speaker 6 (30:21):
Yeah, we'll take the call, and then we'll take the break.

Speaker 7 (30:24):
Jimothy, we have John on Holdy wants to talk about
property values though from policy changes in his area.

Speaker 4 (30:30):
John, Welcome to Florida, talk real estate.

Speaker 3 (30:32):
Hey John, how are you all right?

Speaker 8 (30:34):
Thank you guys? Pretty good? Yeah. Here in my town,
what they did was decided to try to make it
more harmonious. But if you know Geno Beach, it's more eclectic.
You know, we have the castle, we have different types
of houses within the little houses. But now with this

(30:55):
new code change, I don't have the same rights I
did when I bought my house, and I'm wondering how.
I don't know what to do. How can they do
that to us one? And it's devalued my property because
basically my property, I could build two floors plus a

(31:17):
little what they call a tower to see the ocean
and all. Well, now I can't do that. I check
with planning and zoning, and I have to fit within
the harmony of the other houses. And the majority of
the houses around me are like mine is now about
twenty four hundred square feet. So now they're saying I

(31:37):
can't build a two story with the little tower because
I can only add on another five hundred square feet
because of the houses around me. So they've created this
harmony clause that's like not allowing me to do what
I originally, you know, bought the house four years ago.

Speaker 6 (31:56):
Well, John, let me ask you a question. Are you
like on the east out of US one, you know,
just north of PGA Boulevard. Is that kind of where
your house is?

Speaker 8 (32:05):
Yeah, I'm I'm I'm just off of A one A Okay.

Speaker 6 (32:09):
Yeah, So I used to live right around where you
are right now. I lived in one of the condos
over there. Okay, but so I know that area pretty
well because I drove about all the time. Right, So,
but I do see you. You saw that they just
put up like those three brand new construction homes that
are multi stories so they get little glimpses of the

(32:32):
water on the other side.

Speaker 5 (32:34):
Right.

Speaker 6 (32:34):
That's why I don't understand they're saying you you can't now.

Speaker 8 (32:39):
Because of the new harmony code. You have to be
you have to be in harmony with the house within
three hundred.

Speaker 6 (32:47):
Yeah. They usually called conformity. It's a performing thing, right,
So you don't want to have a church next to
a porno shop next to a school, right you know.

Speaker 5 (32:59):
You know that's the extremes there.

Speaker 6 (33:01):
Yeah, I'm using extremes. But that's why they have, you know,
zoning regulations and cities map all that out. It sounds like,
and I'm not familiar with the new conformity thing you're
talking about, but it sounds like it was recently passed.
Is that true.

Speaker 8 (33:15):
It was actually passed I think two years ago. That's
pretty recent, and then we're trying to repeal it.

Speaker 2 (33:22):
Now.

Speaker 8 (33:23):
People are starting to realize what it's done. You couldn't
build the castle today. You couldn't build a lot of
the houses on us one that already exists. They wouldn't
allow you to build them now. And that's what I'm saying.
My street. They're basically ten thousand square foot lots. They're
all the same, and they were all supposed to be.
You could actually put in a garage underneath the basement,

(33:46):
a first floor, second floor, and a little cupolo, and
every house on the street was like that, and it
was plotted like that. Now they're holding us down and
they're not allowing us to go up what we originally
bought our properties for. And now people are realizing this
and this is this is becoming a problem here, and

(34:07):
you guys, being local, should be looking into this, and
well we're not.

Speaker 6 (34:13):
I'm not a journalist anymore, John, So you know I've
got a radio show once a week, two hours, just
trying to tell people what's going on in the community.
And I used to be a journalist and that would
be something that I would cover. You need to go
to the local newspapers, like the Palm Beach Posts and
complain to them. You know, the Post has a good
coverage up there, and there's a couple of smaller papers

(34:34):
like the there's a couple of very small like not
Coastal Reserver, that's more down south. But there's a couple
of smaller papers. And I would go to the TV
stations they might cover it more. But it sounds like
to me, this is what I bet. I bet that
you're gonna end up winning in the long run people
in your in your camp if you will, because they're
gonna want the tax space and when you build the

(34:57):
houses bigger and everything, they're gonna have more base because
of it, and they're going to have more taxes. So
I understand, but that's probably they're probably going to win
in the long run because you can't fight progress kind
of thing. Is the attitude now. I'm just saying this
from watching eighteen years of being a journalist in Palm
Beach County from nineteen eighty seven to two thousand and five,

(35:19):
and watch all the changes made in all these different
communities in Palm Beach County over the years. So you're
probably going to end up winning in the long run.
But you do, and this is a good point. If
you buy something and you're planning on making major major
changes to the property or tearing it down and building
something completely new. You better check with the building department

(35:40):
in the zoning department of your agency is before you
do it.

Speaker 5 (35:44):
If they have anything in the works.

Speaker 6 (35:45):
Yeah, Like if you're in Northwood where they have historically
designated homes right now, you have to tell people that.
But if you didn't know and you said, oh, I'm
going to take this nineteen thirty four home and I
want to rip it all apart and turn it into
a mega mansion, and then the city goes, no, You're
not allowed to do that. It's kind of the something
in John's case, they changed the rules on them after he.

Speaker 5 (36:07):
Bought Like out in the Acreage and Locks of Hattoo,
there's been some of that going on over the past,
you know, recent years, where it's like, yes, Acreage Locks
kind of always like do what you want as far
as you know, having things on your your land and
building stuff and putting shipping containers.

Speaker 2 (36:22):
You're driving out there, it looks like twenty Montana lives
right there, and it's like the Hillbillies live, like yeah, yeah,
like what And it's kind of and people love that
about that area, but they're started to be you know,
like wait, wait a second, we moved in here.

Speaker 5 (36:34):
We don't like looking at the semi truck here right.

Speaker 6 (36:36):
This semi truck in your drive, right, Those people bought
out there, John, You might you might only been down
here for a while. But in the acreage from the
seventies all the way, a lot of semi truck drivers
would buy out there because they had an acre and
they could park their trucks there. Well, now they're complaining
that the roads aren't strong enough to handle the weight

(36:57):
of these trucks.

Speaker 8 (36:59):
Yeah, and there.

Speaker 6 (37:00):
Telling everybody, hey, you got you got to get rid
of your rigs and put them somewhere else. And they're like,
we bought here for this purpose that we've been here
for twenty years. Like that imagine them.

Speaker 5 (37:10):
And you'll get I think you get a lot of
sentiment out there, you know. I guess it's about marketing essentially,
your your point of view. But people who aren't affected
by it to be like, yeah, that sounds okay, Like
why would you want to have a bunch of garbage
in your yard? Right, Like we don't have a problem
with that because their neighbors don't do that or whatever.
But there's definitely a lot of people who are I

(37:30):
don't have garbage, but I want my stuff in my yard.

Speaker 6 (37:32):
I want my stuff, and I don't want to be
told what to do. But John, I really think in the.

Speaker 5 (37:36):
Long run, got to participate.

Speaker 6 (37:38):
If you got enough people around, you're gonna win. You're
probably gonna win that. I'm not saying that's good or bad.
I'm not taking sides, but history shows you're probably gonna
win that argument in the long run because they're gonna,
like I said, they're gonna want the tax space. And
in that general area. I don't know the exact neighborhood
you're in, but there's houses all around within a half
mile to three coreters a mile. You got that coopola

(38:00):
on the top. So eventually it's gonna try in your favor,
I would think. Yeah. But John, thank you so much
for calling. How long you've been listening to the show.

Speaker 8 (38:10):
Oh many, many years, many years. I've been here almost
forty years now, so nice. And that's why, you know,
a lot of us are upset about these changes. You know,
my house is a regular little three bedroom, but my
dream was to go up and be able to see
the ocean if I stand on my roof, I could

(38:30):
barely see the ocean. Well, if I had come to
the money and I could do that, I want to
have that ability.

Speaker 6 (38:36):
Sure, yeah, yeah, this.

Speaker 8 (38:38):
Is what's happening. You guys are local realtors. I figure
you need to know this because you have clients maybe
buying in the area too. So a little affirmative. That's
about it, And I thank you for all your advice.

Speaker 6 (38:53):
Yeah, and thanks for listening to the show. Let other
people know about us, and if you have any questions,
software give us a call. I'm not trying to hard,
so if you have more questions to give me a
call off air, no problem.

Speaker 2 (39:03):
Okay, great to have you out there. Thank you very
much for being there, and you're welcome to join any time.
Have a great rest of your weekend.

Speaker 8 (39:09):
Okay, thank you so much.

Speaker 2 (39:11):
And remember to take care of any of the moms
that are in your life. You know, yeah, what do
you mean, make sure they feel a little special on
mothers Okay, flowers, chocolates, I mean, whatever special is.

Speaker 3 (39:23):
Yeah, maybe it's just a tension time.

Speaker 5 (39:26):
I've been getting a lot of ads for like a
cookwar set, and I'm wondering, moms, do you really want
like kitchen. As a mother.

Speaker 2 (39:37):
Said, you guys been talking about cookwar sets a lot lately,
because you know what you get ads because it's listening.

Speaker 5 (39:42):
I don't think we have because I'm not in the
market for his new stuff. But I think for me,
what happens is, you know, you pause for an extra
second or two on the video and that starts to like,
oh that there was some interest there. It wasn't like
a flick through.

Speaker 2 (39:55):
It is amazing. So yeah, I've been shopping to Covi's
for a couple of years. Oh and every time I
talked to Covis, my phone, my wife's phone, my mom's
phone just inundated with the cook I for sure. We
start talking about Welcome to Rockville, boom, all of a sudden, damn,
everybody's just rock it is. Those damn things listen to

(40:16):
you all the time. It is scary.

Speaker 6 (40:18):
Me and my friend were talking on the phone and uh,
joking around with inappropriate content. Let's just put it that way.
Locker room talk. Yeah, locker room talk. That we're going
back and forth, and the next thing, my phone blew
up with all kinds of crazy stuff. I'm like, really.

Speaker 5 (40:37):
Really, oh look, we got an answer to my question.
So mcgally says it depends on what kind of cook wear.
So apparently there's.

Speaker 6 (40:44):
There's something like worth it.

Speaker 5 (40:46):
Yeah, yeah, don't come home with the tupperware set. But
if you got the new you know, all clad, you know,
twelve piece, that could be nice.

Speaker 6 (40:54):
Okay, and uh what I know we're going to take
the break. But let me just do this, Johnny, if
you don't mind, I just wanted to give all shout
out some Hey Susan, hey mcgolly, Hey Betty, Hey, Peggy
and Joe. I'm having a hard time reading Hey mom,
Hey missus's mom, he mcgy hey, key, hey key. Just

(41:17):
say hello to everybody and wishing you all a really
great weekend. And happy Happy Mother's Day to everybody's mother
and everybody that is a mother but as a parent,
Happy parents Day. Right, So at those count two.

Speaker 2 (41:29):
It's Mother's Day though, yep, it's mother still.

Speaker 6 (41:31):
Yep, yep. I took I took my mom to a
theater thing last week for Mother's Day and the play.
And here's a piece of advice very about there. If
you're not into the theater and stuff and you pick
a play for your mom, try to find out what
the play is about before you God, did you see

(41:54):
so depressing? This show is so depressed.

Speaker 5 (41:56):
You remember the One Man Show and The Big Lebowski,
remember the dancing Oh yeah, oh yeah.

Speaker 9 (42:03):
Yeah yeah, Well this was so depressing. This Uh the
acting was excellent, but the I had to actually look
it up in Wikipedia after. It's a famous.

Speaker 2 (42:15):
Uh.

Speaker 6 (42:16):
Any older people will probably laugh about this. The movie,
the movie it will used to be a movie too
in the fifties. I think, Who's Afraid of Virginia Wolf? Yeah,
and uh, I didn't know what that movie was about.
It new is famous, so I said, oh, play about that,
that would be good. Look it up and then yeah,
it actually talks about in Wikipedia how painful it is

(42:38):
to sit through. That's a rough watch. Yeah, but I
mean it's it's also considered critically acclaimed, but it's a
very rough watch. Like when we were done, my mom
turned me and she goes, did that really happen? Like
whatever the plot was is like did that person really exists?
I'm like, I don't know, ma, like.

Speaker 2 (42:54):
How like like I don't know if you can describe
the uncomfortable feeling like like watching.

Speaker 6 (42:59):
It, it was a bunch of drunk kids. It was a
bunch of drunk, dysfunctional people that you just wanted to
punch them in the face, like fifty times by the
end of the which means it was very good. Acting
was excellent. Acting like a.

Speaker 4 (43:13):
Party a Johnny's house.

Speaker 2 (43:17):
If it makes you feel like if it makes you
feel then they're doing it right.

Speaker 5 (43:21):
They were only the sober people who feel that way.

Speaker 2 (43:23):
They were.

Speaker 6 (43:24):
They weren't that trunk though, because no corn hole came out.
There was no more more holing, so there wasn't that much.

Speaker 2 (43:33):
That's closer to trunk.

Speaker 6 (43:36):
Anyway. On the flip side, Johnny, we're going to get
into the Summer twenty twenty five Buyer's Guide. If you're
thinking about buying, or you'd like to, you really feel
it's just out of reach, or you just don't feel
like you read the headlines. Sounds like a horrible time, right,
but it isn't, And we're going to get into that.
We're going to show you all the opportunities out there.
There are a lot cool.

Speaker 2 (43:56):
We got a lot to get into. Thanks for being
with us. Today is the Yeah, today's the tenth right, Yes,
it is Danny Carey's birthday. By the way for all
my tool fans out there. Wow, you should celebrate today.
He's only the goat. Just figure out to throw that
out there. I do have the platform. We got a
four minute break and we get back to it. A

(44:17):
ton of valuable information and it will be entertaining. I
assure you plenty of time remaining. You're always welcome to
join us if you'd like to get involved with the conversation.
If you have a question that's kind of pertinent, dial
in eight seven seven nine two seven six nine six nine.
Of course, if you're not comfortable in the radio, believe me,
I totally understand. Florida talkreal Estate dot Com is for you.

(44:37):
That's access to the entire team pros pros. You get
them all at Floridatalkrealestate dot com. Find the team on
Facebook and YouTube as well. But that dot com. You
should know it, you should use it, you should share it.
You can change lives, including your very own, with the
prospros at Florida talkre Estate dot Com. We're back in
for minutes. Thanks for being with u. Every Saturday, Florida
Talk real Estate right here throughout radio.

Speaker 1 (45:12):
This is Florida Talk real Estate with Jim Depola and
Johnny C got a question for the show, Call us
Live at one eight seven seven nine two seven sixty
nine sixty nine.

Speaker 2 (45:22):
Yeah, do it. If you'd like, You're more than welcome
eight seven seven nine two seven six nine six nine.
That is a toll free number.

Speaker 3 (45:28):
You're more than welcome to join us.

Speaker 2 (45:30):
Get involved with the conversation. Ahay. And if you have
a question that's pertinent, don't be shy. I do that, Jim,
if you'll line you up. What's up, my dude?

Speaker 4 (45:36):
Hello, Hello, in, good morning.

Speaker 2 (45:38):
Good morning. I'm Johnny C, your old buddy, your pal.
Let's get your of course, starting lineup, there's Mike Row,
the mortgage guy from the mortgage from Hello, sir.

Speaker 3 (45:46):
Hello sir, nice to see you.

Speaker 5 (45:47):
Good uh uh you too.

Speaker 3 (45:49):
Yeah.

Speaker 5 (45:49):
Sorry, I was thinking about something else, saying an email
I got from some of my corporate office email me like, hey, Mike,
we had this lead come in said they came from
the radio show or this from a podcast, And she goes,
are you part of a podcast? And I'm like like really, yeah,
I've replied. I was like, yeah, I'm I'm one of

(46:10):
the you know, one of the recurring hosts. I've been
doing it for about ten years now, thanks a little bit.

Speaker 2 (46:20):
Yeah, that's me.

Speaker 5 (46:21):
I think I am, because I was thinking, like, when
did I forget the exact year that I start? But
I asked Tiffany. I think it was twenty fifteen at
some point, maybe twenty sixteen.

Speaker 6 (46:29):
It was right at the beginning sixteen, or right at
the end of fifteenth. It might have been November December fifth.

Speaker 5 (46:37):
In my ninth year or no, in my in my
am I in my tenth year?

Speaker 2 (46:41):
Crazy? Huh?

Speaker 5 (46:43):
How's the math on that work?

Speaker 2 (46:44):
You're in your tenth year.

Speaker 5 (46:45):
Am I? I'm in. I've completed nine years. I'm in
my tenth year. I will complete ten years at some
point this year. That's right, got it? Pretty amazing? Nice time.

Speaker 3 (46:54):
Zoom is right by thirteen plus years now.

Speaker 2 (46:58):
I've told you that he runs their top producing Keller Williams,
and this is our fearless leader. The Florida homepros is
where you'll find him. A Keller Williams Innovations. There's Jimmy
d jim Topola.

Speaker 3 (47:07):
How you be.

Speaker 6 (47:07):
I'm doing great, guys, Happy South Florida. We're going to
be talking about this summer twenty twenty five Buyer Guy. Today,
we're going to take you step by step everything you
need to know in forty minutes.

Speaker 5 (47:20):
I think we need to catch your name though the
I mean, I'm off it's not wrong about.

Speaker 6 (47:26):
The Big and Beautiful Buyer's Guy Summer twenty twenty five
Buyers Guy, Big and Beautiful.

Speaker 5 (47:32):
Buyer Guy.

Speaker 6 (47:33):
I didn't seem like that went over too well, Guy, Okay,
I'll think about.

Speaker 2 (47:38):
Something so flashy.

Speaker 5 (47:40):
Yeah.

Speaker 6 (47:41):
Yeah. So one of the things that we'd like to
do is talk about a little bit about statistics and like,
because the first thing everybody does when they start talking
to people that don't own, or people that own but
want to do something else, the first thing they do
is say, you know, is it a good time to
do it? Or not right? And that's normal for people

(48:03):
to say that, but a lot of times they're over analyzing,
really what's happening? And it did the April report come
out already? I feel like, did the April stats come
out already?

Speaker 5 (48:17):
For housing?

Speaker 6 (48:18):
Oh? No, it's only the fifth No they didn't, so
it is March. I'm sorry, I forgot March. I was
gonna say, why am I not seeing this? Okay? So
I want to go over some statistics just to put
some things to bed. Okay, So the first thing is
is that the number of homes that are being bought
right now are kind of low. We usually you know,

(48:42):
before before COVID, we were doing about fifteen hundred homes
a month in Palm Beach County and that's single family homes.
I'm not countingtown homes. There's a whole other category for that.
But the ratios are going to be about the same.
And we were selling about twelve and last month we
sold about twelve hundred homes, so you know, we're short

(49:05):
about twenty percent sales. We're down like twenty percent from
a normal market and we've been that way for quite
a while now. Why because the interest rates got really
high and the prices haven't dropped, and we had higher insurance.
So all those three I called the triple whammy. Prices
not dropping, insurance going up, and interest rates not going down.

(49:29):
That's the triple whammy. We've been experiencing this for a
very long time. But everybody that all the buyers, what
they do is is what they're focusing on. Is so
when before COVID, what everybody was complaining of, let's just
start through the cycle. So before COVID, we were actually
going through a little bit of a tough time. Twenty

(49:50):
eighteen and twenty nineteen was not great. Real estate appreciation
was okay, like five six percent, sales were kind of flat.
His interest rates got a little high that year, we
got all the way up to almost six percent. We
got up to like five nine four five six percent.
Appreciations very good.

Speaker 2 (50:12):
You're like, it's okay.

Speaker 6 (50:13):
I was like, ah, he is, but compared to what
people expect, right, and they don't have it based on
any clue, right, And then so everybody was complaining, then, oh,
the interest rates are too high. I'm going to wait
for the interest rates to drop so I can go
buy a house. Right. That's what everybody said in eighteen
nineteen that didn't buy. Right. Then you got to twenty twenty,

(50:35):
and then we had the COVID crisis, and then the
interest rates got down to three and below three. And
then everybody came just like they said they were going
to come. And then what happened. Prices skyrocketed twenty percent
appreciation one year, twenty two percent one year appreciation, crazy town.
That's like five years appreciation in one year right, and

(50:56):
on top of it, because of the low interest rates,
buyers were going crazy. So if I had a house
to buy and you wanted to buy a Johnny and
you wanted to buy a Mike, one of you guys
are gonna say, I don't need any inspection, I don't
need any appraisal, I don't need a financing contingency. Just
give me the house.

Speaker 5 (51:12):
And I was like, sold right, you're the one yep, yeah,
even if you were getting financed.

Speaker 6 (51:17):
Right, And this is what the and then buyers were complaining.
Then the buyers that some buyers took advantage of because
they wanted the low interest rates, they lost out. Really
compared to twenty eighteen and twenty nineteen. They did lose
out because if they bought in twenty eighteen or nineteen,
they wouldn't have the competition, they would have paid a
little higher in the interest rate. They would have got
the house at a lower price than what they paid

(51:39):
when the interest rates dropped, and then they could have refiled.
Right then they just REFI and went to everybody else. No, no, no, no, now,
look what you have to do. I bought early.

Speaker 5 (51:48):
But that's hindsight, Jim.

Speaker 6 (51:50):
But it happens every cycle. This is happens. I know
you're seving up minch, but it happens every yep, thank you, Mike, so,
but it happens. It's such an e predictable cycle, and
people fall into this trap all the time where they
get stuck in the numbers and not the end result
that they want.

Speaker 2 (52:07):
So I think.

Speaker 5 (52:08):
What's hard to predict about the cycle gym is exactly
when it's gonna happen.

Speaker 6 (52:11):
Well and be if you listen to our show, well
we're pretty on top of it.

Speaker 5 (52:17):
But if I knew the cycle and I knew it
was gonna happen, I could get on the leading edge
of either big movement, right, you know what I mean?
I can, I can be out in front of whatever
that next move is. But you don't really know when
that moment is.

Speaker 6 (52:30):
You do, because like, let's continue with these stats, all right, Okay,
So inventory right now, as of March, Palm Beach County
has five point eight months of inventory. You know who
also has that much inventory? Port Saint Lucy, Saint Lucy County.
When was the last time Saint Lucy County had close

(52:50):
to six months inventory? I can't even remember, you know,
I know it happened during our show at times. That
happened when we got to that number, but it got
fund to zero point eight months of inventory at one point.

Speaker 3 (53:04):
We're probably going back to like eight oh nine.

Speaker 5 (53:07):
Mm.

Speaker 6 (53:07):
I'm thinking more like twenty ten. I'm thinking more like eighteen.

Speaker 3 (53:12):
Oh.

Speaker 6 (53:12):
Really, yeah, I'm thinking like it's not going to be
a crash, but it's not going to be numbers.

Speaker 2 (53:16):
No, I'm just talking. I'm talking inventory wise. I'm not
talking inventory wise.

Speaker 5 (53:21):
You can't say eight Johnny, And people don't they think
about the crash.

Speaker 6 (53:25):
Yeah, that's why I was thinking inventory.

Speaker 2 (53:26):
I don't you know you brought it.

Speaker 6 (53:27):
To be honest with you, I don't know what the
inventory was back then. It's a great thing. I just don't.
I wasn't involved in this aspect of real estate in
a way.

Speaker 2 (53:36):
I just imagine the inventory would have popped pretty good
because of the crash.

Speaker 5 (53:40):
Twenty twelve was the lowest year as far as like prices,
so that to me, that would go hand in hand
with biggest inventory. It is the bottom of the market.

Speaker 6 (53:51):
Oh, Saint Lucy County had some some neighborhood said six
years inventory, six years, right, It was so scary. When
I was selling those houses in those names roads, I'm like,
cala hell, I going sell this out right, six year inventory.
I always got them sold, right, I always always sold it. Yep,
I got them done.

Speaker 5 (54:08):
But were you telling yourself at the time, Jim, sell that,
sell that.

Speaker 6 (54:11):
House, Tell sell that else. But so the thing is
is that inventory? Right? So you were saying it's hard
Mike to tell you know what's going on, Well, there
are numbers that you can know exactly where you are
at least in this moment, and how historically it matches
up with other cycles. So now we're in a more
of a stable market for buyers. We have five point

(54:33):
eight months of inventory, So that gives an edge to
the buyers because that means there's more homes than there
are buyers. And what I mean by that is a
month of inventory is if you put no other homes
on the market based on current sales numbers, how long
would it take to gobble everything up and get down
to zero. So in Palm Beage County and Martin County

(54:56):
it's five point eight months. Six months is a new
t a market. That means it's not either an advantage
to a buyer or a seller. It's kind of even Stephen,
and it's kind of you know, just haggle it out.
When you have one month of inventory, it's a total
sellers market because there's way more buyers than there is inventory.

(55:17):
And if you have six years of inventory, there's way
more houses for sale than there are buyers at that moment.
Right So, right now we're in a moment that we
haven't seen in many, many years where the buyers are
actually closer to being in control of the market than
the sellers. Now, Mike is the buyer. That's one reason

(55:38):
why there's some are the buyers. It's just one of
the many reasons some are a b Yeah. Right, So
Mike has said several shows, for several shows for months,
even though we haven't hit the six months inventory, it
feels like a buyer's market, and it does it. He
isn't just saying that. It totally feels like a buyer's
market right now. If I didn't know about the five

(56:01):
point eight months of inventory, I would believe that we're
past the six months, okay, because of the opportunities that
the buyer'sap So.

Speaker 2 (56:09):
If you're seeing it too, the concessions from the seller side,
like example after example, you're seeing it because you're in
it every day.

Speaker 5 (56:15):
You're seeing the tell tales are that buyers are getting
more of what they want. Kind of going into the negotiations, right,
I need some help with cash, ask for seller concession.

Speaker 6 (56:28):
I don't help on interest rates.

Speaker 5 (56:30):
Yeah, we're a little bit worried about a praise value.
So we kind of have to you know that it's.

Speaker 6 (56:36):
I need some repairs. You've got to that new roof.
You've got to give me that new roof because I'm
going to pay a huge insurance premium.

Speaker 5 (56:43):
Or price it as if I got to pay for
the new room.

Speaker 6 (56:45):
So there's all these things. So you could do, Hey,
I need to sell my house, give me time to
sell my house to buy your house, right or vice versa.
Hey I'll let you buy my house, but you got
to give me time.

Speaker 5 (56:57):
Or hey, hey Jim, what do you think Let's make
our initial offered like said all because I, let's just
I think they're overpriced. Let's come in, you know, twenty
thousand below their ask right, Yes, and that's not like
tossed out the window, right, Like that's a legitimate starting
you know, I'm not saying twenty exactly.

Speaker 6 (57:12):
But you know what, people, some sellers aren't going to
give you the fingers, say there's the door. Some of
them are going to say.

Speaker 5 (57:19):
Talk like, okay, well we haven't had a lot of
foot traffic, we haven't had any offers. You're the first
one coming in. It's low, But okay, let's talk.

Speaker 6 (57:27):
So you have better negotiation attempts, the best negotiation. This
is the best negotiating for buyers that we've had in years.
And I'm not joking about that, guys, right. And the
reason why I'm being so forceful about this is because you,
guys are inundated, and I feel bad for you because
people are inundated with article after article, a news clip

(57:48):
after newsclip about how bad it is for the buyers,
and it really isn't. If you're out there, actually in
the field doing it, it isn't that bad at all.
There's a lot of opportunities out there. Now here's another
statistic that people always rely on. So the first thing
is home prices right or in months of then there's
not enough houses for sale. I can't get a good deal. Well,

(58:08):
there are houses for sales, so that gets wiped out. Oh,
interest rates are too high, right, well high compared to
what are you comparing it to? The two point sixty
five from January seventh, twenty twenty one, which is the
lowest interest rate ever recorded in the history of the
United States, for the history of the world, history of
the world, right the universe, Right the universe. So two

(58:32):
point sixty five was the lowest interest rate ever recorded
by Freddie Mcker was January seventh, twenty twenty one. Why
don't I remember that date because that's the anniversary date
of our show, January seventh, So easy for me to
remember that, Okay, but I hope that doesn't ever break.
That's like a cool statistic to have, right to have memorized.

Speaker 5 (58:50):
Did you see the one week change this week?

Speaker 6 (58:52):
Yes, it went flat right zero, flat zero change. So
when before we went to the whole tariff thing and
Buddy lost their religion, we were at like six point
sixty five roughly, and then we jumped up pretty high.
Now Freddy Mack didn't really record the high jump because
it only happened for a couple of days, but we

(59:12):
went from like six six five to like in the sevens.
Then we dropped down. Freddy Mack showed a six point
eight six or something or six point eight eight, and
we've been going down a little bit ever since then,
and we've down at six point seven six. Mic, is
that where we're at?

Speaker 5 (59:28):
Six point seven six?

Speaker 6 (59:30):
Six point seven six? We only started at six point
sixty five, So that's an extra dollar fifty a month
on your mortgage. I'm joking. So the interest rates have
kind of been even stable, except for that couple of
day blip, it's been pretty stable. And six and a
half mit six and a half to seven is pretty

(59:50):
much where we've been for like eighteen months now, yep, right,
pretty much yep. So the interest rates aren't high, they stabilized.
That's what happened. We were extremely low at one point
and it took a long time to get up to
more of a stable And let me tell you, I
just did the twenty year history of interest rates. Six
and a half is like right in the middle. It's

(01:00:12):
not high, it's not low, it's what people pay.

Speaker 2 (01:00:14):
It is amazing how a couple of years completely destroyed
a thought process completely.

Speaker 6 (01:00:20):
It's like a crack cocaine or meth. You do it
one time and you never you're never the same again.

Speaker 2 (01:00:26):
Yeah, there's a number of examples you can throw out,
but this is a really good one.

Speaker 6 (01:00:29):
Yeah, it really is a view of an interest rate.

Speaker 5 (01:00:33):
I think it's I mean, it's uh, there's so much
talk about it, right, it's it's so easy to get information,
especially like tidbits of information like that, where you know
the decision making of whether or not you're going to
buy a home is based on the interest rate. That's like,
that's the fact that that's it.

Speaker 6 (01:00:50):
That's ridiculous.

Speaker 2 (01:00:51):
It's ridiculous.

Speaker 5 (01:00:52):
It's not I mean, no, no, I hate to say
it's ridiculous. I think it's something you think about, but
it's not the piece of information that's important to whether
you should buy a home.

Speaker 6 (01:01:01):
Factor it is if it was weighted. If it was
a weighted factor, it wouldn't be fifty percent of your decision.
That's it shouldn't be right.

Speaker 5 (01:01:11):
Not even close?

Speaker 2 (01:01:12):
Right? What all goes into my monthly nut?

Speaker 3 (01:01:14):
Like what all numbers matter?

Speaker 5 (01:01:17):
That's a weird question. Hold on me, that's I think
that to me, it's even to simplify it, it's I
always anytime I say this, I feel like I'm like
a used car salesman, Like, hey, what payment can what
payment's going to get you into the door. But ultimately,
when you're making a decision about your housing payment, whether
it's renting or buying, whatever it is, it's like, what

(01:01:39):
do I pay per month to live here?

Speaker 3 (01:01:41):
That's right?

Speaker 5 (01:01:42):
Right, So your mortgage payment is the critical factor in
my view, right along with features of the home, features
of the area, like you know your checkbox, where do
you want to live? You know, does the house check
the boxes? Does the areas work? Also, what's my monthly payment?

Speaker 2 (01:01:59):
Right?

Speaker 5 (01:02:00):
And of course how much cash do I need? But right,
what's my monthly payment? So the interest rate obviously is
part of that part, But so is the sales price yep.
So is your property taxes yep? So is your homeowners
Yes it is.

Speaker 6 (01:02:11):
Yeah. So with what I did, Mike, is I took
your app Because the first thing a buyer should know
before they start. I mean, you can go on Zelo
and truly you on realtor and mess around, but if
you're using one of those mortgage calculators on those websites
so you search like you know those scud missile companies

(01:02:31):
and you're using their things, it isn't It isn't the
same as using an app that is created for you
based on your financial numbers, created by the mortgage company
that you're going to be using to do your deal.
And that's one of the benefits of working with Mikey.
So I used somebody else's app and I plugged in
the numbers for three seven one eight Victoria Drive, Kathy

(01:02:56):
Bruce's house, the town home that we just put on
the market, just to show what a good deal could
be for a first time home buyer, because this could
be a great first time home buyer property.

Speaker 5 (01:03:07):
So or it's kind of like, okay, you get a
home that's in the the low three hundred's or call
it three hundred you know, town home in an hoa community, Like,
what's that going to look like? What somebody with a
low down payment?

Speaker 6 (01:03:19):
Exactly? So what we did was is.

Speaker 5 (01:03:22):
In the app right now.

Speaker 6 (01:03:23):
Yes, I'm in your app right now, so hold on here, okay,
So it won't let me. Unfortunately, this person isn't using
FHA financing, so I can't use FHA only five percent down.
But let's just say that somebody paid the full asking
price of three hundred and ten thousand for the town
home and they were putting five percent down. Which is

(01:03:46):
fifteen thousand, five hundred dollars down on the three hundred
and ten thousand. Then you have a mortgage amount MIC
of two hundred and ninety four five hundred. Can you
do that?

Speaker 3 (01:03:56):
Time?

Speaker 6 (01:03:56):
Zer point zh five to ninety four five to do that?
Mm hm, So I can find out how much money
we're going to get this state from the State of
Florida the five percent on the loan, okay, so ninety
four to five, gotcha hold on? Okay. So what Mike
is doing right now, people is the Hometown Heroes program
is a down payment assistance program that's going to open

(01:04:17):
up very soon, and Mike's going to give us a
timeline where you can get five percent of the loan value,
not the purchase price, and get that back to help
pay for your down payment and closing costs. So in
this case, if we're paying three ten and we're putting
five percent down, we have a two ninety four five
hundred ballance, which is how much we get back from

(01:04:37):
the state for that.

Speaker 5 (01:04:38):
Uh So the down payment assistance would be fourteen thousand,
seven hundred and twenty five.

Speaker 6 (01:04:42):
Okay, So fourteen thousand and seven to twenty five and
your down payment is only fifteen to five, right, So
that means that you only need to bring to the
table I think one thousand, two hundred and fifty dollars
for the down payment and then the state's giving you
the rest. Now you still have closing cost us. So
the closing costs in this house besides the down payment,

(01:05:04):
they're estimating fifty eight hundred and forty seven, fifty eight
hundred and forty seven dollars for the prepaid escrow money,
and then your closing costs are seventy six thirty six.
So you would only have to bring thirteen fourteen, fifteen
thousand dollars to buy this home. Okay, but you don't

(01:05:25):
necessarily have to bring fifteen thousand to buy the home,
right Mike.

Speaker 5 (01:05:29):
So I mean fifteen thousand is required. So where's it
coming from?

Speaker 2 (01:05:33):
Right?

Speaker 5 (01:05:33):
Where are you going to get it?

Speaker 6 (01:05:34):
Seller time?

Speaker 5 (01:05:34):
Yeah? Seller time right?

Speaker 6 (01:05:36):
So now it's going to come seller time, right. So
now we're going to try to can My first question
is if you're getting down payment assistance under the hometown Euros,
can the seller give you money too?

Speaker 5 (01:05:47):
Sure? Yes?

Speaker 6 (01:05:48):
And how much can they give you? I know it
depends on the loan, but rough. I don't want to
get too wonky here, Mike with the different loans, Yeah,
what are the ranges that you can get.

Speaker 5 (01:05:58):
Let's say three to six percent of the sales price
as a credit from the seller sales.

Speaker 6 (01:06:04):
On top of one top of getting from the state.

Speaker 5 (01:06:08):
That sounds really good, you know if you're like six percent,
So six percent on three hundred.

Speaker 6 (01:06:14):
Eighteen money when I closed, I get money closing.

Speaker 5 (01:06:18):
Yes, but there's gonna be there's gonna be one limit there,
which is technically you can't get a credit more than
the total of your closing.

Speaker 6 (01:06:25):
Costs, so I can't get to check it closing.

Speaker 5 (01:06:27):
Now, you could increase your closing costs one way or
the other, although if you're using down payment gets it's
a little bit a little bit crazy. But yeah, so
you can if you can negotiate it like that, Jim.
I think the point is, like one big question is
how much money is required to buy a home? Right?
And once you know kind of ballpark what that is,

(01:06:48):
then you say, Okay, where's all that money going to
come from? Right, I've got this much saved up. Maybe
I've got some family who's willing to help out a
little bit. Here I'm using down payment assistance, but I'm
a little bit short. Where's that extra going to come from?
And that's when you and you should do almost do this,
and especially in this type of market, you should. You
could be asking for concessions no matter what on every

(01:07:09):
deal that you're making an offer on, so I get
as much as you can.

Speaker 6 (01:07:13):
Let's say that you only had five thousand dollars in
your pocket, but you could still qualify for the loan. Okay,
and you're short ten thousand dollars in this case because
you need fifteen to bring to the table. Right, Well,
you can go to the cellar and say, hey, I'll
give you three ten, but I want you to give
me ten thousand dollars back at closing, so that I'm

(01:07:34):
going to put that towards my closing costs and down payment.
And then I'm going to bring to the table five
thousand dollars and I got my new home. He's he's
in hand for five thousand dollars. And that can happen.
And we used to do it all the time back
in the day, and now we have the ability to
do it again, and we weren't able to do this
for a long time. Because the sellers would say, why

(01:07:55):
am I going to give you that deal when I
have five other people that want to buy my house? Right,
you don't have to ask, Yeah, you write the dear
marry letters or whatever you know, which isn't that isn't
as good as when the sellers are in a weaker market.
So this is a great opportunity where you can get

(01:08:16):
money from the state and the sellers in order to
help buy your property if you're a first time home buyer. Now,
let's just talk about down payment assistants really quick, Mike.
Down payment assistance is where the State of Florida, well, well,
the state is giving you money to help pay for
your down payment and closing costs. Now, there's two main

(01:08:37):
programs that we're talking about here, I called the Florida
Bomb Program in the Hometown Heroes program. The Florida Bomb
Program is all year long, and that program, even if
you miss out on the Hometown Heroes the Florida Bomb Program,
you can get ten thousand flat from the state ten
thousand help pay for your down payment and closing costs.
With the Hometown Heroes which starts July first. That program,

(01:09:00):
you're allowed to get up to five percent of the
loan value. So in this case, if somebody were to
use the Florida Bond program, they'd only get ten thousand
from for three seven one eight Victoria Drive. But if
you use the Hometown Heroes they can get fifteen thousand,
basically an extra five thousand dollars, same type of program.

(01:09:21):
Both programs, you do have to pay back the money,
but you don't pay it until you pay off the loan,
you move out of the house, or you refile it. Okay.
The second thing is is that you don't accrue interest
on the money that they give you. So if you
get ten thousand and you keep the house for ten
years and you sell it, all you have to do
is give the state back ten thousand dollars. You're not

(01:09:43):
given ten thousand plus interest. Right, So it's a really
good way. It's free money until you pay the house office.

Speaker 2 (01:09:49):
That's it, right.

Speaker 5 (01:09:50):
Yeah, It's like I'm gonna give you this money, Jim,
take this ten cass to hold it for me. Yeah right,
It's like it's like the Godfather, like hold these guns
for me, right memory.

Speaker 6 (01:10:00):
So yeah. So so the thing is is that those programs
are really really helpful to first time home buyers. Here's
another misconception. What is the first time home buyer? So
Mike tell me all the regulations for because it isn't
just first time home buyers.

Speaker 5 (01:10:15):
Yeah. So, technically, the first time home right designation applies
if you have not owned a primary residence within the
last three years. Primary primary you could have been a
laydlord this whole time. I can have several investment properties,
and if I've been renting right for the past three years,
I'm technically a first time home buyer as far as
these programs got any of those definitions. Three window, three

(01:10:38):
year window.

Speaker 3 (01:10:39):
So so Jim your first time.

Speaker 6 (01:10:41):
Bob, I am, I'm going and I'm gonna be using
this program. I'm going to use one of these two
programs because I qualify for it, yep, and I'm going
to take advantage of it and everything I'm telling everybody
Right now, I'm using Mike's app, I'm looking at properties.
I'm trying to figure out what sellers are going to
give me discounts. I looked at three homes this weekend.

(01:11:02):
Some of them wouldn't allow me to wait for the
down payment assistance program to start, so they wouldn't go
into contract with me because I wanted a longer close.
So I said, Okay, I'm not gonna I'm not you know,
I'm just going to pass. I'll wait. Well, I looked
at four homes. One of them went under contract, three didn't.
I'll never give full asking price to those three last week.

(01:11:24):
I might have right if I end up going back
to them, right, I'm never going to give them the
full asking if.

Speaker 5 (01:11:30):
They're still on the market. When they're still on.

Speaker 6 (01:11:32):
The market, I mean, this is that to say turn
me down the first time.

Speaker 5 (01:11:35):
It's a really good real world example of kind of
getting things lined up and then being able to select,
be very selective in like you're timing because you don't
have to do anything right the second you do want
to target hometown heroes when because you're at a price

(01:11:56):
point where it makes sense to you getting more than
ten thousands, so it makes sense to do that, and
you're thinking about, Okay, well, when do I need to
get into contract in order to make sure I secure
the hometown heroes. Listen, guys, the hometown heroes. That comes
out to one hundred million dollars. It's going to be
fund to July. You know, whatever the first week of
July is it's going to go quickly, right, We're probably

(01:12:17):
a month and a half where funds are going to
be available.

Speaker 6 (01:12:20):
Let's slow down on that.

Speaker 5 (01:12:21):
Yeah, bit, I want to talk about that. But the
point is, like you have done everything so that you're
now you're now at the position, so you got preapproved,
you know, kind of like what your strategy is with
the cash. You know, you've kind of zeroed in on
one or more areas where you want to be. You're
looking at the homes that are in those areas and

(01:12:42):
you're watching and you're saying, hey, there's an opportunity. Let
me talk to them and see if they can meet
my timeline. And if not, he's okay to just sit back.
But the whole point is he's like he's ready, he's
analyzing numbers, he's ready to make an offer if the
right one presents itself in the right situation. Or you
can sit back and wait and you can spy those
ones like hey this, if this one's selling the market

(01:13:02):
in three weeks, I'm gonna I'm gonna pounce on.

Speaker 6 (01:13:05):
And with the app there were a few homes that
I was over budget for and they were saying no,
your mortgage payment's too high.

Speaker 2 (01:13:14):
Okay.

Speaker 6 (01:13:14):
Now I probably could have qualified for the higher mortgage
because we're being conservative, but I don't want to. I
don't want to go that high. So those houses, what
I started doing is like, Okay, if I'm not gonna
if I don't give them full what do I have
to give them that's going to get me to the
mortgage payment I want? Yeah, what do I call that?
I call that my MAUI wowie, right, my maximum allowable offer.

(01:13:37):
I'm not going to go a penny over because I
don't want my mortgage payment to be higher than that. Right,
So if they don't want to take my offer at
that price, it isn't the right house for me. Right,
And you have to know the numbers that well, guys,
and you know once you're taught how to do it,
between me and Mike from the realtor perspective and the
mortgage perspective, these these apps are so valuable and I

(01:13:58):
don't learn.

Speaker 5 (01:13:58):
It and you're looking at it and way that allows
you to make decisions, like you're getting the information you
need so that you can make decisions. So and it's like,
so it's super critical in the house hunting process that
you have the information that you need to make decisions
on any particular home, and it's it's not painful to
get set up that way. And if you are the

(01:14:19):
person that we talked about earlier, who's just you know,
you're waiting for something I will my my argument, right,
my position is you're waiting for the stars to align
the right home at the right monthly number. Right. Even
if you want to say I'd need it at the
right price, that's fine too. You don't need it at
the right interest rate, Like, that's not You need the

(01:14:39):
right payment, which is a combination of price and down
payment and interest rate and all of that, but ultimately
you need the right payment. So but if you're not
where Jim is at, Like if you're you're a buyer, Jim,
you know that you're going to be doing some of
your buyer not because it's a great time to buy
or you got investment opportunity or something like that. It's basically,
this is the time for you to buy. You've been
renting for whatever, and rents are where they are and

(01:15:02):
buying is where it's at. Right, Like you've analyzed that choice,
and so now it's just like get lined up so
you get pre approved. Right, you talk to Mike. You
make sure that your your credit is where it needs
to be. You got your income dialed in. You you
got your that's dialed in. You know how much money
is going to take, and you're ready.

Speaker 6 (01:15:16):
And I'm self employed. So I had to talk to Mike.
Then I had to talk to Jared's Perry's CPA group.
Then then Jared told me to call Mike, and then
I had to call Mike and ask Mike questions. Then
Mike gave me answers. Then I called Jared again, right,
and go back and forth a little bit. Now where
we're at, Mike wants to review all my tax returns
before we submit them to make sure everything's going to

(01:15:38):
be okay.

Speaker 5 (01:15:39):
I may want to make sure you don't mess it
up right.

Speaker 6 (01:15:41):
That's how you have but that's how you have to
do it right. It's like you don't just do it.
They go, oh, I took care of my tax returns.
Then you go to the mortgage company. If you haven't
done your tax returns yet and you haven't finished them,
it's a great time to talk to the mortgage company
first and then let them give you insider help or
coaching of what they would like to see if it's doable.

Speaker 5 (01:16:01):
It could be like, hey, are you able to go
on extension?

Speaker 2 (01:16:04):
Right?

Speaker 5 (01:16:05):
You should do that right? Right.

Speaker 6 (01:16:06):
Sometimes they might say, hey, we're going to use last
year's taxes and extend this.

Speaker 5 (01:16:10):
Year if you're like most recently filed, retire about that, right.

Speaker 6 (01:16:14):
So there's all these things, so you can't just make
these decisions. You should talk to the professionals.

Speaker 5 (01:16:20):
That's right.

Speaker 2 (01:16:20):
I mean, you gotta have pros in your corner. Always
remember floridatalkreal Estate dot com when you need a prospro
in a situation where you're buying a home, selling a home,
you're stuck with a home, you don't know what to do,
preparation for buying a home, anything that touches the world
of real estate, you got a professional at Florida Talkrealestate
dot com. Florida Talkrealestate dot com. Remember also, as we're live,

(01:16:42):
you're welcome to join us toll free at eight seven
seven nine two seven six nine six nine. You want
to get involved with the conversation, and you're more than welcome.
Of course, Florida talkre Estate dot com For those that.

Speaker 6 (01:16:53):
Are not thank you, Johnny. Now, Mike, one of the
things I learned a couple of weeks ago from you,
and I'm learning I'm here on the show all the time,
but I still learned what I was surprised about. I
knew that the Hometown Heroes program starts July first. We're
probably going to get one hundred million dollars put in there,
because that's what happened the last couple of years. I

(01:17:14):
think this is the third or fourth year that the
program's been around, and the programs changed a little bit
because at first, the reason why they call the Hometown Heroes,
it was like police, firefighters, first line defense people. Then
it began teachers and medical people.

Speaker 5 (01:17:30):
Then that was expanded. That was the second expansion.

Speaker 6 (01:17:33):
Oh what was the first one?

Speaker 2 (01:17:34):
Then?

Speaker 5 (01:17:35):
Yeah, like like frontline just the police, fire.

Speaker 6 (01:17:38):
Police, fire raw and military I think teachers, yeah, teachers,
and then it expanded to medical. Yeah, but then it
was medical like hospitals and that kind of thing. But
then it expanded to like chiropractice and chiropractice.

Speaker 5 (01:17:52):
They opened it up, yeah, they at one point it
was like, hey, we're doing Hometown Heroes and it's now
eligible for over you know, fifty professions or over seventy
five professions in those fields, So medical education, you didn't
have to be a teacher, you could be part of
the county whatever.

Speaker 6 (01:18:06):
So the reason why they've created this program is to
make housing affordable. That's what the whole thing was about.
Is that they knew there was a lot of people
out there that were working in all these professions for
government or help in the community, but they couldn't really
afford a home. And so a lot of people can
afford a mortgage payment, but they can't afford the down
payment and closing costs. So that's why this program was

(01:18:29):
created to help them get over that. Hey, I can
afford an X amount of mortgage payment, but I'm never
going to raise twenty five thousand dollars to put on
a down payment.

Speaker 5 (01:18:38):
I mean, if you think about, you know, how much
is a family able to save? Right so your renters situation,
what are you able to save? And so even to
save twelve thousand dollars over a year, you need to
put a thousand dollars a month into a savings account.

Speaker 6 (01:18:56):
And it's pretty tough.

Speaker 5 (01:18:57):
I mean, just even that even that amount is and
so that's always been one of the big barriers is
like how much cash is required to buy a home.
And of course, you know, way back in the day
was the twenty percent down payment. Well, they had created
mortgage insurance, so now you can have a little bit
more exposure for the lender and you do these low
down payment options, so FHA at three and a half

(01:19:17):
percent VA loan and zero percent conventional you know, five
percent is the traditional low down payment. So it's always
been something that has been thought about and tried to
have solutions. So now down payment assistance has come in
to try and help people get over that particular.

Speaker 6 (01:19:33):
Hump, and we've used it for year, you know, ever
since it's.

Speaker 5 (01:19:37):
Been I mean, Johnny had down payment assistance on his
home he bought in twenty fourteen fourteen.

Speaker 6 (01:19:42):
That's why I want to say we've been using down
payment assistance programs on the show basically, you know, if
they were available, we used them, if they helped our people.
And I don't know of anybody I'm knocking on would here,
But I don't know of anybody that we got loans
for or bought houses for with these down payment assistants
programs that went belly up right.

Speaker 2 (01:20:02):
I don't.

Speaker 6 (01:20:02):
I didn't hear a lot of people, Hey, I can't
make my mortgage pay. I'm going to lose my house.
You don't hear that, because that's what a lot of
people that don't like the down payment assistance program. Oh,
they can't afford the house, right, they can't save money,
can't save the money, they can't afford the house. Well,
my experience is it's just they can't save the money
for the down payment, but they make their mortgage payment
on time, sure, and they're being qualified to make sure

(01:20:24):
that they can make the mortgage pay before you get
the loan. But the thing that was really surprising about Mike,
and I want people to hear this today. If you're
thinking about using these programs, I was thinking, I'm going
to go to Mike, like, you know, I'll start really
looking hardly. First, get into contract in thirty days, right, and.

Speaker 5 (01:20:43):
You're kind of working backwards from your lease terminate right,
your lease is up here. Ideally, you know, Jim doesn't
want to have to a rent payment and a mortgage payment.
He doesn't want him to overlap. So and that's like relevant, Yeah,
starting everybody like that, I'm going to move here when
my when my lease is up, especially if your renters,

(01:21:03):
and it gets back to what's a Jim, we can't
wait that long.

Speaker 6 (01:21:06):
Yeah, So Mike said, hey, your timeline's off, so can
you explain what you would recommend if somebody's thinking of
buying this summer and they want to use that program
and they want to beat out the other people? Oh
the other thing I forgot to set up. Mike is
saying that that one hundred million over the last couple
of years. Mike has a portal to get into the
funds and find out like other mortgage comans, not just Mike,

(01:21:29):
but to know how much really access right, But he
has he has a way to see exactly how much
his money has been allocated, how much money has been
earmarked for certain closings, and what's left over. And uh,
Mike is I used to think you had ten to
twelve weeks, but Mike is saying it, No, I think

(01:21:49):
it's six weeks, right, You've got like a six week
period again.

Speaker 5 (01:21:52):
Yeah, money, I kind of looked at it for last year, Jim,
And so they they you know, Florida Housing is the state,
you know, quasi state organization that kind of administers this
and they started sending out, hey, funds are almost exhausted.
Those emails that first like funds are almost exhausted was

(01:22:13):
a month, right likely one month August, like beginning of August,
and by mid August it was like, okay, fun, funds
are fully reserved. Now funds are fully reserved. It means
one hundred million dollars allocated. Fund has been reserved for
closings that were either closed or happening. You know they're
going to be closing, and so there was some fallout
from the reserve. Stuff that I reserved came back in.

(01:22:34):
But essentially, yeah, it was six weeks when the funds
were fully committed.

Speaker 6 (01:22:38):
So you can't wait till July first, especially if it's
going to be harder to find your home. You can't
wait till July first and think you're going to start
money to start the process. You're going to be way behind.
I started once Mike told me that I had to
change everything I was going to do. I because I
thought June was going to be I was going to
do this thing. I had a personal thing, and then

(01:22:59):
I was going to come back and deal with all this.
But now I'm like, I can't. I gotta deal with
it calling off the wedding. Yeah, exactly. So I had
to really change around my timing for everything. And then
here's one of the things in real life that you'll
have to experience because you're trying to get into contract.
Like last week, I tried to possibly get in contract

(01:23:20):
with one of those properties. I didn't really want to
do it, but I was like, if they agree to
close it on a certain date, which gave us like
a sixty day close, right, like a sixty day close.
I really wanted like a seventy five day close. I
was like, if I can get this one unit, I
might do sixty days as just see it because I

(01:23:40):
liked the unit. The sellers were like, no way, we're
not giving you sixty days to close. It's still on
the market. It's been seven days. They already ate up
ten percent of the sixty days that I was asking for.
They should have just taken it right now.

Speaker 5 (01:23:55):
And if it's on the market in another week and
you'll go back, Tom.

Speaker 6 (01:23:58):
I'm actually waiting two weeks and if it comes back
two weeks, I'm dropping the price. I already have it
in my mind. It's like, okay, if they're gonna play
this way. I'll be happy to buy it at this
and if they don't, I'll wait till another one comes up. Right.
But so it's very important that you get the timing
for the hundred million dollar Hometown Heroes program right. If
you're a buyer, you've got to start working on it now.

(01:24:20):
If you want to buy July August. If you're thinking
about by July and August, you're here.

Speaker 5 (01:24:26):
You've got the I would say you want so that
Hometown hero is fun. You can't reserve your funds unless
you're in contract, right, So when would you say, bring
me bring me a con I would say, bring me
a contract in July. If you're not bringing me a
contract in July, there's a chance you're missing out. Like
you could, you know, get into contract first week, August

(01:24:48):
we're probably okay. Second week we'll probably okay. Guaranteed not guaranteed, right,
And even if it stretches longer, there's still gonna be
little opportunities. But if you want to like slam Dunky guarantee,
getting have be in contract in July. What's it take
before you're in contract? Jim House hunting, right, how long
does that take depends on your situation, depends on your
price point, depends on the inventory, and your price point

(01:25:10):
depends on what you're looking for. I don't want to
say picky, but you know, you know you got to
have certain features. And before you start house hunting, you
got to get pre approved because you need a loan.
I'm assuming you need a loan. You got to know
where you stand as far as the financing goes. How
long does it take to get pre approved? Hey, it
could be one day, could be a little bit longer

(01:25:32):
than that. Depends on your situation, right, like.

Speaker 3 (01:25:35):
How quickly there?

Speaker 5 (01:25:38):
But what if you have some little credit thing that
you need to figure out, right, or what if you
have some maybe you have your self employed, you got
to file taxes, just little things that you don't know
until you talk to somebody. So I could have you
pre approved tomorrow. I could say, hey, listen, we got
to do this. It's maybe it's going to be a
few weeks, or maybe it's going to be a month, right,

(01:26:00):
or maybe hey, hometown hero isn't for you, but we're
going to take advantage of this stuff when you're ready.
So all of those are like potential outcomes. But if
you want hometown Heroes fundings this year, Like you and
I need to be speaking now, Like we got to
get on the if you haven't talked to anybody about lending,
you haven't had like the pre approval is looking at credit,

(01:26:21):
looking at income debts and your cash and kind of
like loan program.

Speaker 2 (01:26:25):
So you got to do that now Florida Talkrealestate dot Com.
You can get connected to the pros. Pros like Microwd,
the mortgage guy from the mortgage firm Florida Talkrealestate dot Com.

Speaker 6 (01:26:35):
So I want to switch away from down payment assess
I just get.

Speaker 5 (01:26:39):
Oh, I'm sorry, I just want to say one thing.
So I'm talking it's kind of like urgent. I'm not
trying to create a sense of urgency unless what we're
talking about applies for you, like you want you could
You're at a price point where getting more than ten
thousand down payment assistance is important, right Like you give
fifteen twenty twenty five thous all we have to thirty
five thousand. Kind of hard to get there with the

(01:26:59):
income limits, but you can get that money. So if
that's you and you're a buyer this summer, right or
maybe the second half of twenty twenty five. Yeah, if
you want that, it's urgent. The time is now, okay.

Speaker 2 (01:27:13):
Even if you just want to spend other people's money, yeah, right.

Speaker 5 (01:27:16):
Right, right, exactly, even if that's not you now, but
maybe next year, I want to talk to you too, Right,
it's not urgent, but I want to talk to you too,
because we can get lined up for the same timing
next year. So I just don't.

Speaker 6 (01:27:30):
I just don't want to have happen what happened the
last couple of years that buyers come right after the
program ended. I'm like, oh, man, you know, you just
lost eight thousand dollars. If you came to me four
weeks earlier, you would have made an extra eight thousand
dollars out. And I just I always bumps me out
when I see people like that, And most of the
time it's okay because it isn't. They were kind of

(01:27:51):
clueless about it anyway, so they didn't know they were
losing out on the money. Only I knew, right, But anyway,
don't don't do that to yourself now. Now. One thing
I want to talk about more is about knowing your
numbers a little bit more. So. One of the things
I'm doing is so, Mike, when you get a loan
and I have a house, and the house is shown

(01:28:13):
that it's thirty five hundred dollars a year for taxes, Okay, yeah,
And let's say that thirty five hundred dollar years for
property taxes is homesteaded. Okay, it's a homesteaded property. Now
when I buy the property, you're going to use that
thirty five hundred dollars in order for me to get
qualified for the loan. Right, that's right, But in real life,

(01:28:34):
that is not the tax bill I'm really going to pay.

Speaker 5 (01:28:38):
That's correct.

Speaker 6 (01:28:39):
And so what I do is in order to protect myself, Right,
what I do is is I go to the like
in Palm Beach County, I go to the prom Beach
County property praiser. Dorothy Jack's Website's pretty good, right compared
to the other property praisers. I like Chris and Dorothy Jacks.
She has a tax tax calculator. Now that's different than

(01:29:02):
anything you're going to get online. This is specifically for
Palm Beach County in this case, right, only in Palm
Beach County. Properties that you type into the calculator and
then you put in the address that you want to buy,
and I always put in the full list price because
I'm probably not going to pay that, but that would
be the worst case scenario as I'm paying full and
I put in the full list price, and then I say,

(01:29:23):
am I homestead in the property or not? Because they
give you that clickable button and then it'll tell you
what they think your your real tax bill is going
to be, not the other people's, but your new reset tax.

Speaker 2 (01:29:35):
Bill with the portability involved.

Speaker 6 (01:29:37):
I don't have portability, so I'm not using it, but
I'm going to get to that next. Okay, so this
is just to calculate new tax bill on a new purchase.
So then what I do is I take that number
mic the bigger number, and I put that into my app.
That way, I really know what my mortgage payment's going
to be when I'm done.

Speaker 5 (01:29:55):
Yeah, I think for that a bad idea to No,
I think it's a really good idea if you're thinking
about budget, like and what's my real housing price or
housing obligation going to be, not based on the current
homeowners low taxes, but based on what taxes are going
to be for me. So it just gives you a
longer term picture.

Speaker 6 (01:30:13):
Did you just explain why the taxes change.

Speaker 5 (01:30:16):
So the current taxes are based on the current ownership, right,
so this year is the latest tax bill. Generator is
based on the current owner of the home. And if
somebody has been in their home for a number of
years and they've had a homestead exemption in place for
a number of years, their taxes are lower than if
they didn't have a homestead exemption right that whole time,

(01:30:38):
what it would be, And so they're just it's part
of the property tax savings we kind of started the
show talking about, is like these homeowners have lower taxes
than their neighbor who doesn't have a homestead exemption, right,
or a new buyer who's not going to have the
homestead exemption right away. So and we qualify you, you're
qualifying payment. Your initial payment is based on the existing

(01:30:59):
property attack spill, and so you could take advantage of that, Jim,
that could allow you to kind of increase your purchasing
power from a qualifying perspective.

Speaker 6 (01:31:07):
Right, get you into the house. Yeah, then you have
that's nothing wrong with this, but you have to know
you're going to get a sticker shock moment.

Speaker 5 (01:31:14):
You should have conversations about that the loan originator should
be talking to you about to say, hey guys, some November,
this November or next November, whatever it is, you're going
to see a jump in your property taxes. We can
get in right now. You qualify for it. I know
we're pushing your budget already. I just want you to
know that's going to go up and if we want
to predict what it's going to be, the tax estimators

(01:31:35):
are part can be part of that picture. But yeah,
from a budgeting perspective, I want to know where I'm
going to be a year from now.

Speaker 6 (01:31:40):
My payment, Yes, so I use that now. The other
thing that's on the Palm Beach County Property Praiser is
the portability calculator, which is Johnny's talking about now. Greg
and Diane who were on the show last week, they
didn't realize. I think they didn't realize. If I'm wrong
about this guy's I apologize. But there was a group,
there was a couple that didn't realize it that they

(01:32:02):
could take portability and it's a huge savings. Jimmy's done portability.
You saved a lot of money on your portability. The
concept of portability is you've you've had the benefit of
having your house homesteaded. The house that you own now
homesteaded for many many years, and you had a lot
of savings on your taxes because of that. But now
when you buy your new home with that portability, it

(01:32:25):
resets the new home at the new price you paid,
and now you're paying this super high tax bill compared
to what you were paying on your other own. So
what they do is they kind of they have a
calculator on that site where you type in the address
and you type in certain information and it'll tell you
how much savings you can get on the new home

(01:32:46):
based on the homestead exemption you had on the home
you're selling, right, and based on that you can get
some of the savings. Jimmy, how much money did you
save on that?

Speaker 4 (01:32:58):
It ended up being about three thousand dollars worth of
taxes each year.

Speaker 6 (01:33:03):
Each year three thousand dollars savings, So that's like two
hundred and fifty dollars a month roughly, right, So he
saved two hundred and fifty dollars a month on what
he would have paid if he didn't own a home
before and transferred over those savings. If he had just
bought the home directly, didn't own a home before, he'd
be paying two hundred and fifty dollars a month more.

Speaker 4 (01:33:22):
Or if you don't even know about it, I mean,
they're not going to apply it for you.

Speaker 6 (01:33:25):
You have is going to give it to you. You
got to ask.

Speaker 4 (01:33:28):
They're not going to tell you.

Speaker 7 (01:33:29):
It's one of those programs that it's out there, it exists,
but if you.

Speaker 4 (01:33:33):
Don't follow through with it, it won't happen.

Speaker 7 (01:33:36):
And I always kind of looked at it this way too,
or it made it easier for me to understand homestead.
Your normal homestead is what I think it's fifty thousand, right,
is what you take. So the property, the value of
your home, you deduct fifty thousand and boom, that's what
the tax base is on that value. Now, what you
do the portability is you're taking the value of your

(01:33:57):
old home, the difference between the new and the old,
and you get.

Speaker 4 (01:34:01):
That much more in the deduction.

Speaker 3 (01:34:04):
So that's what you're doing.

Speaker 7 (01:34:05):
So but basically, right, I'm just trying to make it basic, right, right, Mike,
I mean, I know Mike's don't one it taught about
Mike and.

Speaker 5 (01:34:13):
I I was wondering if Timothy could explain it to
the better, to the to the every day every man.
I'm not sure if you got it, but yeah, it's basically.

Speaker 7 (01:34:21):
But basically, what you're doing is the fifty thousand is
what you're taking off the value and what that's what's
tax you're adding to that.

Speaker 6 (01:34:29):
You're adding to that. Well, what's happening is is that
you save money every single year you own that house
when it was homesteaded, and that savings based on the
value of the home that you have. Now they try
to transfer mathematically the same ratio over to the new house.
And then you you said it, so your new house

(01:34:51):
could be more expensive than your old house, but they
have a mathematical ratio calculation.

Speaker 5 (01:34:58):
Is golden ratio.

Speaker 6 (01:35:00):
I don't know. I never heard the golden ratio.

Speaker 5 (01:35:02):
Doesn't da Vinci like the ratio of arms?

Speaker 6 (01:35:05):
Legs?

Speaker 2 (01:35:06):
There?

Speaker 5 (01:35:07):
Did you get it, Johnny? Yet you got it a little?

Speaker 2 (01:35:10):
I think so.

Speaker 5 (01:35:11):
I don't know how deep because I have I have
my way of explaining it, all right, but it's get
let's get like, here's the mic way you ready, all right,
So when it comes to your property taxes, there are
three kind of numbers in play. The first is the
market value of your home. Right, that's what goes up
and down with the market. That's basically what they say.
Now does that match the real estate market? Not necessarily

(01:35:33):
usually lower, but market value, that's the starting point. You
then have the assessed value of your home. Then you
have the taxable value of your home. Right, So if
you didn't have a homestead exemption in place, all three
of those numbers would be the same. Right, market value
four hundred thousand, assessed value four hundred thousand, taxable value
four hundred thousand, and you pay a percentage your milit

(01:35:55):
rate on the taxable value. The first year you have
your homestead exemption in place, the market value four hundred thousand,
assessed value four hundred thousand, taxable value three fifty. Right,
so you're paying taxes on fifty thousand less than your
assessed value. But then every year moving forward after that,
the market value will go up or down, but up

(01:36:15):
ideally with the market. I appreciate the assess value can
only can only go up three percent, so it's capped
on how much it can go up. So assess value
can only increase three percent year over year.

Speaker 3 (01:36:24):
Because of your home city.

Speaker 5 (01:36:26):
Right, the taxable value is always fifty thousand less than
the assess value.

Speaker 2 (01:36:30):
Right.

Speaker 5 (01:36:30):
So you as the more years you have your homestead
in place, the market values going up and up and
up through the years, hopefully the assessed values only going
up incrementally, right, three percent max max it every year. Yeah.
As a matter of fact, I saw one where the
home value went down but the assess value went up.

Speaker 6 (01:36:48):
I was just gonna say, I didn't think that because
I always told when it goes up, your capped at
three percent, so it can go down as low as.

Speaker 5 (01:36:57):
The And I was like, how did the assess value
go up? Well, my market value went down ten percent,
my assessed value went up three it has I'm sure
the likely explanation is, well, you have such a gap. Right.
So the gap that develops between market value and assess
value is what's portable to the new home.

Speaker 2 (01:37:16):
Right.

Speaker 5 (01:37:16):
So let's say over the year I've had my home
set exemption in place for you know, twelve years, my
market value six hundred thousand. My assess value is four fifteen,
right or four to twenty five or something, right, So
let's make the matheas. Yet's say it's four four hundred
let's say it's four to fifty, Right, I have one
hundred and fifty thousand dollars of kind of proper tax

(01:37:38):
savings saving that is portable to the new home. So
now when I go buy my new five hundred thousand
dollars home, instead of the first year the market value
and assessed value being both five hundred, it's five hundred
and three fifty because that one fifty came in and
reduced it kept my assessed value, you know, one hundred
fifty thousand dollars lower than market value.

Speaker 10 (01:38:00):
That's what was So for somebody that bought at a
low low cost, low value, right, yes, and stayed in
their home ten years, saw a ton of appreciation home
set of the whole time, versus somebody.

Speaker 2 (01:38:11):
That bought at you know, we'll say low value. But
the market didn't change for that ten years. It stayed
the same. The value for that home setting is much
more for the person that rode that appreciation and locked
in than it comes for that.

Speaker 5 (01:38:23):
Yeah, compared to the neighbors and the neighborhood without a homestead. Right,
And that portability is super critical. Now, if I let's
say I've built up a huge portability five hundred thousand dollars. Yeah,
when I go to my new home, I might be
buying a new home less than five hundred, right, So
that's where the ratio comes in. So if you're if
your portability, let's call it, you know, it was thirty

(01:38:45):
three percent of the market value, you're going to transfer
that thirty three percent. So sometimes it's a fixed number.
So sometimes it's a race.

Speaker 6 (01:38:52):
Five hundred thousand dollars home, but you're buying a two
hundred and fifty thousand dollars home. You're downsize, and you
still get a percentage ratio of the savings.

Speaker 5 (01:39:00):
Yeah. I think the good thing like you don't have
to know all of this nuance And Jimothy we really
explored it at the time because he was very He's like, well,
where are we going to be in November of twenty
twenty five or twenty twenty six, And so we were
able to work that out. We went even in fact,
like we didn't use the tax estimator. We go and
we look at real numbers. Same thing you and I
just did the other day, which is like, okay, here's

(01:39:21):
what based on current market value, what's the market value
going to be next year? And we did some math
and we got a very close prediction. But you don't
have to know all that. All you have to know
is if you want your property tax be low as possible,
so you file your home set exemption. If you were
a previous homeowner in Florida and you sold within the
last three years, that portability that you had on your

(01:39:44):
previous home set is it's transferred.

Speaker 6 (01:39:45):
And that's another thing. So you could sell the house
in twenty twenty five and you have untild basically same
day twenty twenty eight. Yeah, in order to use that portability.
So if you sell your house and you rent for
a year, and then you buy a house a year
still portable, you still get portability. You don't lose it
as soon as you go.

Speaker 5 (01:40:04):
That's cool.

Speaker 6 (01:40:06):
Now I don't get portability because I.

Speaker 3 (01:40:08):
Went, but it's the same timeline.

Speaker 2 (01:40:09):
It's three years, you said, Yeah, so right when you
lose your portability, then you can get into.

Speaker 6 (01:40:14):
A first time. Yeah, you can get it first time.
That's kind of That's kind of what happened to me
in a way because I went through a divorce. So
my ex ended up using the portability because she ended
up buying a home right away, and then I lost
out on that because you both can't get the portability
when you get a divorce, right, you get a percentage
of it's fifty to fifty.

Speaker 5 (01:40:35):
Yeah, but you can have the other spouse sign.

Speaker 6 (01:40:38):
Over it what I did because I wasn't buying it times,
so I was being nice and I did that. But
the bottom line is is, uh, you did the right thing, Jim, Yeah,
I try so. So the bottom line is is you
really got to know those numbers?

Speaker 5 (01:40:55):
Okay, So now hold on which explanation did it for you? Johnny?
Was it Jim? Athy's all of them?

Speaker 2 (01:41:02):
I like Mike's best.

Speaker 6 (01:41:03):
No, I like mine best. Go to the calculator, type
it in on the site and don't ask any questions
and we'll spit out at numb. You don't have to
worry about any of why. Right, you got the answer.
That's all you care about. Oh I got that savings great,
Thank you very much.

Speaker 2 (01:41:15):
Because that's my Mike's explanation. Actually put it in my
head to where there there is like some comparative value
in like similar circumstances where one can be more valuable
than the other. It's all dictated by the market. True
and how it's performed, why you've lived there under your homesteading.

Speaker 6 (01:41:31):
So so now let's go into a couple other things. Okay,
because we went through down payment. Now, the other thing
I want to talk about is.

Speaker 2 (01:41:40):
Florida Talk real Estate dot Com. By the way, if
you need pros, pros or remember floridatalkreal Estate.

Speaker 6 (01:41:44):
Dot com is understanding. I'm sorry, before we get into negotiations,
I wanted to talk about something else. I can't remember.

Speaker 5 (01:41:57):
Was it the related to pre.

Speaker 6 (01:41:59):
Approval rice reduction versus a credit?

Speaker 2 (01:42:02):
Oh?

Speaker 6 (01:42:03):
Okay, I want to talk about that, right, because this
is really good stuff and people think right away. People.
I used to do it until Mike taught me this, right.
I used to ride away, just go Hey, let's knock
five thousand off the price. Let's say ten thousand off
the price. Let's knock off twenty five thousand off the price.
And that isn't always the best savings suppuier can get.

(01:42:24):
Sometimes it's better not to reduce the price and use
and negotiate a different way. So Mike, could you talk
a little bit about those Yeah, I guess that's a
price drop versus a credit.

Speaker 5 (01:42:36):
So I think it depends on what your goal is.
But if the goal is to retain money in your pocket,
then a credits, a seller credit towards your costs is
much more effective than a price reduction.

Speaker 6 (01:42:51):
How come?

Speaker 5 (01:42:51):
So if you do, let's say, take ten thousand dollars, right, So,
if I if I'm doing financing and I'm doing five
percent down, Okay, a ten thousand dollars price reduction reduces
my financial obligation how much money I have to put in.

Speaker 6 (01:43:11):
Buy seventy dollars?

Speaker 5 (01:43:12):
Well, it's five percent of the ten gay?

Speaker 6 (01:43:16):
No, wait, what did you just say? So if I
do a ten thousand Jumping over that answer, I.

Speaker 5 (01:43:21):
Was now you were going on to like, what's the
impact on the payment? Okay? No, but let's just talk
about cash positions. Right, So, if I get a ten
thousand dollars price reduction, but I'm borrowing ninety five percent
of the purchase price, right, I'm putting down five percent
I'm borrowing my loan is ninety five percent of the
purchase price. So a ten thousand dollars price reduction reduces
my down payment requirement by five percent of ten grand.

Speaker 6 (01:43:43):
Oh so that's only five hundred dollars.

Speaker 5 (01:43:45):
Right, Right? So that ten thousand dollars price reduction. Yes,
I'm buying the home ten thousand less, but my cash
requirement only got reduced by five hundred bucks.

Speaker 3 (01:43:54):
Versus going to borrow ten thousand less.

Speaker 5 (01:43:56):
You're gonna borrow ten thousand less. So of course, over
the long term, you know, financially prudent, you know what's
the better. Of course, take the borrow the least amount
you can't, right, right, Okay, But in practical terms, the
seller credit I can use towards my closing costs. I'm
buying the home ten thousand more, but I'm taking ten
thousand dollars and directing it towards my closing cost which

(01:44:20):
means my cash requirements is reduced by ten thousand dollars,
not five hundred. Right, So which one would you do
if you're super financially prudent and you didn't have a
cash crunch for any reason. Yeah, buy the borrow as
little as possible, right, Well, take your prices, you.

Speaker 2 (01:44:38):
Break even number, though, I mean it's long time to
earn that back, and your interest saving on that ten
it is.

Speaker 5 (01:44:44):
That's another one to consider. Another one to consider for sure,
because your payment you're going to borrow more and your
payment's going to be upright, how much higher is your paying?
We could do that, We could do that. So it's
about thirty dollars per FicT that thirty two dollars.

Speaker 6 (01:45:01):
It's like thirty two dollars a month, right at the
current interest depends so much You're interest rate is every
five thousand dollars you borrow, you should have in your
head either do thirty or thirty five because it's easy
your math.

Speaker 2 (01:45:11):
So it take you it's thirty five, it'll take you
twenty eight years to break even.

Speaker 5 (01:45:16):
Okay, So ten thousand dollars, your payment's going to be
up six call it seventy dollars a month, okay, Right,
So ten thousand divided by seven fourteen years, ten thousand
divided by seventy is how many months, Johnny.

Speaker 2 (01:45:31):
Ten thousand divided by seventy is how many months?

Speaker 5 (01:45:35):
It's one hundred and forty two months.

Speaker 6 (01:45:37):
So I went for twelve years, you're right.

Speaker 5 (01:45:39):
It's eleven point nine years.

Speaker 6 (01:45:40):
Eleven point nine you slacker, yeah, not twelve.

Speaker 5 (01:45:43):
Right, And if you look at it like that, you're like, okay, well, jeez,
what's going.

Speaker 6 (01:45:47):
To happen in this thing? Is when you needed it,
that when you needed the most.

Speaker 5 (01:45:51):
Most of the time. It's not a super financial analysis.
It's more like, okay, ten grand, where's that?

Speaker 6 (01:45:57):
But let's talk about another way to use that ten Okay.
So let's say that you have a choice of either
getting a ten thousand dollars reduction on the price, which
is going to save you seventy dollars a month, or
pay that. Hey, I want one percent of the or
two percent of the purchase price reduction, and I want

(01:46:20):
to get that as a credit. So I could buy
down my interest rate and then I let's say I
dropped my interest rate by a point.

Speaker 2 (01:46:26):
Yeah, you can use a credit to buy it down
the interest rate, right.

Speaker 5 (01:46:29):
So you can use that towards any of your closing costs. Right,
the ten thousand dollars you can use towards closing costs,
So yeah, you can. Basically one of your closing costs
could be related to your interest rate, so origination points.
And so if you had ten k and let's just
say you were like, oh, that's extra money, where should
I put it? You could buy down your interest rate.

Speaker 2 (01:46:49):
What would that do?

Speaker 5 (01:46:50):
That's a well, it's another one where you would look
at the impact, right, So the ten thousand buys down
the interest rate x amount of percent half a percent?
What quarter percent? It's not linear like that. I wish,
I wish I could tell you, yeah, I yeah.

Speaker 6 (01:47:04):
Two percent got you basically two percent of the purchase
price got your one percent rate drop.

Speaker 5 (01:47:10):
No, so that would also be like one percent buys
you half a point on your rate, right Like, so
so one percent a loan amount would buy down your
rate by half a percent. It's not quite that linear.
It changes every single mark. I would say it's somewhere
between a quarter and a half. So one percent to
buy down your interest rate by a quarter, maybe three eighths,

(01:47:30):
maybe a half on a good day. So I don't
know the answer to what does that do to your payment?
But I do know the answer to should you do
it or not? And it's simple. You do a break
even calculation. Right you say, okay, Johnny, give me ten
thousand today and I'm going to lower your payment by
fifty dollars a month. So how long is it going

(01:47:51):
to take you to recoup your.

Speaker 6 (01:47:52):
Ten thousand two hundred months?

Speaker 2 (01:47:54):
Right?

Speaker 5 (01:47:54):
So whatever that break even period is, you're kind of
in the red on that choy up until the break
even point, and then then you hit the brake even.
Then you're in the black. And the longer you go
with that loan without refinancing, selling, right, the more the
better the decision was. So, if your break even is
twenty four months and that loan is alive for five years,

(01:48:16):
sixty months, you made a great choice, pretty good.

Speaker 3 (01:48:18):
Right.

Speaker 5 (01:48:19):
If your break even is four years and you refinance
your loan within three years, you never recouped your ten
k fully, right, So it was the wrong decision, right,
So you use that break even just kind of as
a so you want a shorter break even when you're
looking at that decision, or you just say, listen this,
I've like those three percent loans. I bought it down

(01:48:41):
to two and a half. I'm gonna have that loan
for thirty years. I'm never going to refinance that loan.
So then, yeah, of course it made sense to buy
it down because your break even is always shorter than
your you're you're you're in the black period.

Speaker 2 (01:48:52):
It is a numbers game, and you gotta know your
number is. Florida Talk real Estate dot called Florida Talk
real Estate dot Com most.

Speaker 6 (01:48:58):
Likely said that before we're we're going to wrap up
with some negotiation tips. But before that, I want to
do did you see Mike the the know we got
from KTG. I'm saying, I wish you'd always screw up this,
because every year I screw this up. May tenth is
the food drive for the Postal Service US Postal Service

(01:49:20):
right today, it's today, and I feel bad I would
have mentioned I would have mentioned it last week. So please,
if you can put non perishable food items, you know,
buy your mailbox. That's today today, May. Yeah, I know,
it's weird, and it's the largest food collection drive for
the USPS, uh you know, of the year. So please,

(01:49:42):
if you if your mailman hasn't if your mail carrier
hasn't come yet, try to put some food out there.
There's a lot of people in need right now.

Speaker 5 (01:49:51):
All you got to do is take your non perishables,
put them next to your mailbox and your letter carrier,
your mail person will pick them up.

Speaker 6 (01:49:58):
Pick them up and take them to a little I
really appreciate it. So thank you.

Speaker 2 (01:50:01):
If people bust their home every day, and thank you
for all the hard work you do. But man, oh man,
they they bend over backwards to do this. They work
extra hard to do this, and they insist on it
like they have it no other way. It's a huge
food drive. It is, and thank you for everybody putting
in the sweat equity out there to make it happen
and for everybody getting involved to I didn't get a

(01:50:21):
flyer in the mailbox this year. That kind of sucks.

Speaker 3 (01:50:23):
I usually get a flyer in a bag.

Speaker 5 (01:50:25):
Maybe you got it, you just it was with the
rest of your junk. Man, I guess I should say circular. Well,
you do accept that. You're also your daughter's probably at
an age where she gets the mail like she's out
there and gets.

Speaker 8 (01:50:39):
It.

Speaker 7 (01:50:40):
Seems to be hit or miss because I didn't get one,
but my mom did, so you know, it maybe depends
on where you are in location and who's bringing your mail.

Speaker 4 (01:50:48):
But it's great.

Speaker 7 (01:50:49):
And you know what's another cool thing about this is
you're actually helping your own community because the food stays there, stays.

Speaker 6 (01:50:54):
It somewhere else.

Speaker 5 (01:50:57):
This is it's not a county. Is this a county thing?
It's state wide.

Speaker 6 (01:51:00):
I think it's nationwide. It's the USPS nationwide. Yeah, okay,
So KTG, thank you so much. For letting us know
about that, and anytime people have those kind of legitimate charities,
let us know. Well now, so you know, we have
no problem, and it would be better if you let
me know a week early, right, because we could work
on that better. Last thing I wanted to talk about.

(01:51:21):
We've been talking about all the benefits of being a
buyer in today's market. We've talked about higher inventory, more
motivated sellers. We've talked about down payment assistance programs. Right,
We've talked about being informed to know your numbers with
Mike's app on the mortgage for our map. But also
a big part of today's market is negotiations. For many,

(01:51:45):
many years, for several years since COVID, a lot of
the negotiations there wasn't really negotiations. Buyer just took whatever
the sellers said they were going to do, and you
were going to take it or not take it or
not get the house. But now it's completely different market.
You can negotiate. You don't have to expect to pay
necessarily full asking price on the house. You can ask

(01:52:06):
the seller to help pay for things to help you
out in the you know, in the process, you can
ask them, can you hold off, to let me close
on my house, to buy your house. There were just
so many things that you can do that weren't really
available in the tool in your toolbox to negotiate that
you can get now. And some of the deals I've seen,

(01:52:28):
I mean even one of my listenings, I was really
bummed out about this. We had a house that appraised.
This is how good the deals you can get. We
had a house that are praised at six seventy five
and it'll closing at five ninety five. Yeah, and it
appraised the six seventy five because the first buyer fell
apart and the sellers got so bummed out that the
deal fell apart, and it took a while to get

(01:52:50):
that buyer that they when they got a new buyer,
they just in. Yeah, they just went in a shell shock.
And they came in and they got a low ball
offer and they didn't want to lose it. And then
we had problems. We didn't take five ninety five, but
we took higher, but then we had inspection problems, and
then it dropped five ninety five. I couldn't believe it.

(01:53:12):
The family was really happy because they were done put
a fork in it, and they were very happy. But
there's deals out there that that family got eighty thousand
dollars of equity on a six hundred some one thousand.

Speaker 5 (01:53:22):
Dollars Promona praise value right.

Speaker 6 (01:53:25):
From the praise values. I so there are values out there.

Speaker 5 (01:53:28):
Another one that buyers are seeing more now, Jim, is
like multiple houses that work. Yeah, and when you have,
when you have, you can go out on a on
a Saturday or whatever it is, and you can find
you know, you're looking at ten homes, but maybe the
two or three that actually would work, and you can
kind of have a think about this one, or think
about this, I can't get the deal we want in
this one. Or there's homes out where you went one

(01:53:49):
weekend and then you're like, we're not not quite ready
to pull trigger. It's still there. The next week it
might still be there too.

Speaker 6 (01:53:56):
I looked at four leuation. I had four choices, legitimate
choices last week. You have to look so all of
these things. So hopefully we got some people saying, hey,
that isn't what I read in the paper. I want
to hear more about this. Let these guys prove it
to me that this is really a good time for
me to buy right. Maybe it isn't. Maybe the answers no,

(01:54:17):
but the answer might be yes. And if that's what
you're thinking, I really want to do that. Give us
a call, give us a shot. Let us see what
we could do for you. If it doesn't work, no
high pressure. But if it does work, we might be
changing your life.

Speaker 2 (01:54:29):
That's the truth. Yeah, you don't know what you don't know,
So find out what.

Speaker 3 (01:54:32):
You don't know.

Speaker 2 (01:54:33):
Get those known unknowns all in your laborate there. Yeah,
floridatokreal estate dot com. Deal with prospros. When you're buying
a home, selling a home, you're stuck with a home,
you don't know what to do. You may know people
in the field, and the reality is is they just
may not be great at what they do. Just because
you know them doesn't mean they're amazing at their jobs.
Go to people that I can promise you are phenomenal

(01:54:53):
at what they do. Floridatokreal estate dot com a team
of prospros. You get them all floridatokrealestate dot com, on
Faceboo and YouTube, Consume away and remember to share and
like you can again, like Jim said, change lives, including
your very own with the professionals of Florida talkreestate dot com.
If you're lucky like me and have an amazing mom,
my daughter's pretty lucky too. She's got an amazing mom.

(01:55:15):
Take care of them on this Sunday, show the love
and appreciation. And if your mom's a little less than amazing,
I trust she did her best. Give her some love
on Sunday. That's the facts. Mike Rowl, mortgage guy from
the mortgage from have a great.

Speaker 5 (01:55:26):
Weekend, yes, sir, Happy Mother's Day to all the moms
out there.

Speaker 3 (01:55:29):
Listen, there's Jimmy d with the Florida Home Bros.

Speaker 2 (01:55:31):
Team.

Speaker 3 (01:55:31):
Have a great weekend.

Speaker 6 (01:55:32):
Happy Mother's Day everybody.

Speaker 3 (01:55:34):
Jimithy my brother from another mother, have an awesome weekend.

Speaker 4 (01:55:36):
You guys as well, and happy Mother's Day.

Speaker 2 (01:55:39):
Thank you very much for being with us. Were getting
in some panther talk.

Speaker 4 (01:55:41):
Yes we are a panther talking some locker.

Speaker 2 (01:55:43):
Big big win for the cats, big win for the
cats alive.

Speaker 5 (01:55:47):
Come on, let's go.

Speaker 2 (01:55:49):
Thank you for being with us. Happy Mother's Day to
all the moms out there, and you mother fathers. Enjoy
your Sunday as well. We'll be back at next Saturday.
Florida Talk real estate right here, it's right Radio