Incentive programs. Appraisals. Insurance. Market predictions. Interest rates

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):
Good Saturday morning. Welcome to another edition of Florida Talk
Real Estate. Two hours of infotainment is what we have
carved out for you there and thank you for tuning
in ninety one one seven I say, out there, speaking
of scenior. Out there. We live stream on a Saturday
and we invite you. You can join us Facebook and YouTube.

(00:56):
You'll find us Florida Talk real Estate on Facebook, Florida
Talk real Estate a LLC on YouTube, live streaming on
both and of course we are worldwide with your free
download of your Heart radio app world wide. Come on,
get you some of that all over your face on
a Saturday morning. You can also be a part of
the program if you have questions, comments, concerns in the

(01:16):
world of real estate. Jimothy's got it all over his
face already. Man, that's a lot. It's like straight from
the fire hoose, my goodness eight seven seven nineteen seven
six nine six nine. That's toll free questions, comments, concerns
in the world of real estate. The first voice you'll hear,
the one cleaning himself up over there. It's my boy,

(01:37):
Jimothy Pritustric stordinair. How are you, my dude?

Speaker 3 (01:39):
Doing mighty fine? Good morning, Johnny? How are you today?

Speaker 2 (01:41):
I'm awesome, man, good, good, lovely? So are Can I
turn the Christmas lights on in here too, like you
have on in ears and there.

Speaker 4 (01:48):
I un plug them to get our cords and cameras
and stuff together.

Speaker 2 (01:52):
Answer right now. Yeah, that's the only reason why they're
not on. It looks really festive in there with you.
I like the way it looks. I want to I
want to look that way too in here.

Speaker 3 (02:00):
Yeah we can find him, ye think, sure we do that.

Speaker 2 (02:03):
Thank you. A little behind the scenes stuff. You'll only
be able to see it if you're live streaming with us.
But that's that's the facts.

Speaker 4 (02:09):
That tree behind you was up where Ross usually said.
I moved it so that Ross could sit there. But
that didn't work out.

Speaker 3 (02:15):
So now Ross is over to our part my left.

Speaker 2 (02:18):
You're right, that's confusing, yes, speaking speaking of Ross, uh,
he is one of our very valuable people. I'm your boy,
Johnny c here air traffic Control rosky man. That's is
with bright Way Insurance, Juke no beach, my friend. It's
good to see you on a very chilly Saturday morning.
It is weird to look to my right to see
you though. Extremely I've been your left hand man for

(02:40):
a while. You have been graduated. Yeah, yeah, you're my
right temporary. There you are, now I can hear you too.
Has Ross been silent the whole time, through the whole thing?

Speaker 5 (02:49):
Um?

Speaker 2 (02:49):
No, okay, good Sorry, Well, it's good to see you,
my dude, you too, my right hand man and now
my left hand guy over there. Always nice to say.
Good morning dude. You mortgage you guy from the mortgage friend.
There's Mike Row Good morning, Hi, Hi nice?

Speaker 5 (03:03):
Yeah.

Speaker 6 (03:03):
Who does the who's in charge of the decorations in here?

Speaker 2 (03:06):
I'm gonna guess Greek? Really yeah, usually if anything kind
of gets done around here, it's Greek. Yeah.

Speaker 6 (03:12):
Yeah, So he's doing trees and lights and everything. Yeah,
I'm impressed.

Speaker 2 (03:16):
I'm just guessing. Now he may not have done it,
but he made somebody do it, well, paid somebody to
do it. It is probably better said Oh okay, yeah,
that's less impressive.

Speaker 4 (03:27):
Actually think that the past couple of years, Dom's been
doing the decorating in the in the building.

Speaker 3 (03:32):
But this is kind of new that we've had.

Speaker 2 (03:34):
In the studio. So Dom is if you if you
listen to the Penthouse, Doms producing the Penhouse. Yeah, so yeah, I.

Speaker 6 (03:39):
Think I heard that. Yeah, cool, good good morning, Yeah,
nice chili morning.

Speaker 2 (03:44):
Yeah, you're not You're not bundled up at all, and
neither is our leader over here.

Speaker 6 (03:48):
Really not feeling cold in here? Interesting if you're a
cold weather guy, I don't think it's that No, no,
because I mean I've been cold these past you know,
just a few times right now, just not right now,
fair enough. I got jeans on me too, That's all
the warmth I need. Thanks for wearing your past attempt. Yeah,
appreciate you finally, finally, nice to see you on a Saturday. Yeah,
and it's always a pleasure to say good morning to

(04:09):
our fearless leader. Twelve plus years now, almost thirteen years.

Speaker 2 (04:12):
I've told you he runs a top producing Calowaiams team
caller Williams Innovations. You find the Florida Home Pros team
and my guy Jim Topolo, Jimmy d How you be.

Speaker 5 (04:20):
Good, Johnny Good and happy South Florida everybody. I didn't
realize this until this morning, but we're at twelve years
and eleven months exactly right now on the years, eleven
months on the nose, December seventh. We started January seventh,
twenty twelve. Nice, so almost on thirteen years.

Speaker 6 (04:40):
We're just turning the complete thirteen years. Yeah, lucky thirteen right,
entering the fourteenth year?

Speaker 5 (04:46):
Ye, no, going into the thirteenth, right, isn't it going
into the thirteenth No, it would be complete full thirteen. Yeah,
that's right.

Speaker 6 (04:53):
We've done full thirteen year one. You've completed the year, right.

Speaker 5 (04:57):
Yeah, that's the whole thing. I used to try and
be crazy, and I was a reporter. When you have
the when you have like a tournament or something, and
they call it the first annual, it isn't the first
annual is actually the second tournament. The first tournament is
called the inaugural.

Speaker 2 (05:15):
Inaugural.

Speaker 5 (05:15):
Yeah, but when you were a journalist, if you put
down and it was the first year you put down
it was the first annual your coffee errors are catching it. No, no, no,
you have to do it the other way.

Speaker 6 (05:24):
They were looking for that.

Speaker 2 (05:26):
We got them.

Speaker 5 (05:26):
Hey, guys, can you can you guys on Facebook and
YouTube please tell me if we're echoing or not. It's
really bothered me right now and I can't relax until
I know the audio is okay on the other ones.
I know it might not be SYNCD, but I just
need to know for echoing or not. So please, somebody
on Facebook or YouTube or a couple of people.

Speaker 2 (05:45):
Let me know.

Speaker 6 (05:45):
Does it If you just assume that we're echoing.

Speaker 5 (05:49):
I'm gonna know it would be the opposite. Yeah, just
give up, like give up, just give up. It's like whatever.
So sorry, guys, if we are echoing, I don't know
what's going on.

Speaker 3 (05:58):
But fingers crossed, we should sorry, we should know it.

Speaker 4 (06:01):
If we were so, we would hear it ourselves too.
But yeah, fingers crossed it. It's the same way on Facebook.

Speaker 5 (06:06):
Why isn't anybody responded to us. We've got people on
Facebook and YouTube right now. Come on, just type it
in just the echoing or no equaling, and don't screw
with me.

Speaker 3 (06:18):
I just invited something.

Speaker 5 (06:22):
Yeah, exactly, exactly exactly we got. Thanks guys for making
me laugh when I have these technical problems after they
break out into flop sweats, like trying to get it fixed.

Speaker 6 (06:35):
So we have two reports of no echoing.

Speaker 5 (06:37):
Oh, thank god? Okay, good, good, good. Thank you for
telling us that. Is it the same person? Yeah? But
is it the same person saying no echoing?

Speaker 6 (06:46):
Different people?

Speaker 5 (06:47):
No, no echoing?

Speaker 6 (06:49):
No, I'm assuming you can never you never know. People
might have aliases, like they got multiple profiles, you know,
So yeah, it appears to be two different people.

Speaker 5 (06:58):
Thank you everybody for letting me know. Thank you for
all the responses. That really means a lot to us.
Happy holidays, everybody. I hope everybody had a good Thanksgiving.
I know that's what a week and a half ago.
Or was it last week? Oh it was last Saturday.
We talked about it last night. But anyway, we didn't
have the whole crew here. Ross couldn't show up, and
then at the last minute Mike canceled. I hope you

(07:20):
feeling better. Mic, Everything going good?

Speaker 6 (07:21):
Yeah, I got a little, uh, I guess a little
over zealous with the leftovers on Friday.

Speaker 5 (07:26):
Is that your story that I had over zealous, I
was betting alcohol left over?

Speaker 6 (07:34):
No, I ate something something some some Thanksgiving leftover. Didn't
sit right here? That that Friday night was not fun.

Speaker 2 (07:42):
Yeah.

Speaker 5 (07:42):
My brother in law went into the hospital to day
after Thanksgiving. We ate all the same stuff, but he
had to actually stay overnight, and now he saw all
these antibotics and everything. He had some big intestinal Guess
it wasn't some of the food, then I would assume not. Yeah,
because so we ate the same stuff. So we were lucky.
But you got really a lot of stuff to talk
about today. Let me just go over a couple of

(08:05):
the subjects. We're going to be talking about a couple
of like real life situations that happened in like in
the deals I'm working right now, that are related to
Mike and Ross's profession. So it's good to tie it
all together. One of the things we're going to talk
about is what happens when your home doesn't appraise. This
is going to become more common as we go through

(08:27):
next year because I don't expect to see like tremendous
home pricing spikes, and so we're going to talk about
what happens when your house doesn't appraise and what you
do with it from the buyers side and the seller side,
because there's a lot of myths about that. A lot
of times like sometimes the buyer, sometimes the seller would think, oh,

(08:48):
the house didn't appraise because the buyer didn't want it
to appraise, right, and thinking that they're playing games with them.
But it doesn't work that way in real life. So
we're going to talk a little bit about that with Ross.
We're going to talk from bright waying Insurance, Juno Beach,
the only insurance company, the only insurance company branch that
counts as bright Way Insurance, Juno Beach and anybody he

(09:09):
can ensure, anybody in the state of Florida. We're gonna
be talking about two things Ross wanted to talk about,
maybe a different way to look at insurance and paying
for insurance and the value of it, and we're going
to talk about that just a little bit. And we're
also going to talk about what happens if you have
an insurance claim and then you have to put your

(09:30):
house on the market almost immediately after the claim is
taken care of. I have a real life situation like that,
and when I was sitting down at the table. I
was thinking, you know what, Ross has talked about this
on the show before, where sometimes if you have a
past claim on your house, it could stop the new
buyer from getting insurance and really muck up the whole deal. Oh,

(09:52):
I said, muck up, Jimmy, muck it up with them.
So we're going to talk a little bit of about
that and what it's like in the real life and
what you do about that. And we got a couple
of other things to talk about, of course, what's going
to be happening, uh, you know for the next month.
Probably every week for the next month, we'll spend a
little bit of time of who's predicting what's going to

(10:13):
happen next year? Is in the next year's real estate market?
Pain so so exactly. So we're going to talk a
little bit today. I thought it would be fun to
have a little quiz. I think there's three or four
different types of groups of analysts, like national analysts about
what's going to happen with the interest rates and you know,
in the United States over the next year, right, And

(10:33):
I thought it would be fun just to do a
little round robin quiz and to see what each group thinks,
what's gonna happen with you?

Speaker 2 (10:38):
And I think you read a lot?

Speaker 1 (10:39):
Is it?

Speaker 2 (10:40):
It's it because I don't. I'm obviously I read a lot,
but not a lot of the industry news like you do.
Is there? So like in a lot of news there's
like a right leaning news perspective and a left leaning
news perspective. What's this fascinating? Because the news is the news,
But do they kind of segment the industry you're in?
In histry news as like rose, they're a rosy opinion

(11:04):
and they're are dooming loom opinion.

Speaker 5 (11:06):
Actually, like last year, Johnny, I thought that.

Speaker 2 (11:09):
Were consistently always yeah, Like I felt.

Speaker 5 (11:12):
Like the National Association of Realtors were super optimistic last year, right,
that they were super optimistic. And then you have like
the Jamie Diamonds of the world. Right, who's the law
you controller of the largest bank in the in the universe.
You know, he's always he's always so negative. We've been
crashing for ten years with Jamie diamond Right, that guy,
he's like the broken clock that's right twice, you know,

(11:34):
twice a day, but it's like twice every decade or
something with that So he's still claiming that we're going
to go through this crash one day, he's gonna be okay,
He'll be right. I also, I also wonder sometimes if
he says those kind of things just to change the
market a little bit, because his words do matter people, yeah, like,

(11:55):
and that maybe he's trying to sway it one way
or the other, so he'll say something that maybe he
doesn't really think is going to happen, just to influence
a yeah, like the influence a segment of the market
or something. I don't know if that's true or not,
since you're not allowed to assume me because I'm not
saying it that it is. I'm just saying it might
be that way, because I don't understand how you come
up with some of your opinions. But you know, the

(12:17):
guy's brilliant on a lot of different levels. But when
it comes to predicting what's happening with the mortgagey in
the real estate market, he's always been a doom and gloomer.
And then you have the National Association Realters that are
always trying to put a good spin on everything, even
when things aren't great. They never just want to fess
up to you and just say, hey, things times are

(12:38):
tough right now, you know you got.

Speaker 2 (12:39):
To move on. That's interesting. Yeah.

Speaker 5 (12:43):
And the other thing I wanted to do is I
read an article just this morning, so we're going to
go over this sometime in the show, and I got
a really emotional email from a big fan of the show.
Never talk to this person before. She says she's been
listening over ten years. Awesome, and she a very long email.
I haven't responded to her yet. It popped into my

(13:03):
head when I read the article today and I was like, oh,
I got to get back to her. She wrote a
very long email to me saying that she really loves
our show, but she's really really disappointed that when we
talk about what's happening with prices and everything, like last week, Johnny.
This was from last week. In our conversation, Johnny, we

(13:24):
were talking about where property prices were in Palm Beach County.
It was six hundred and fifteen thousand dollars for the
average home and that was down seven percent or six
percent from the peak of the year and things like that.
And her comment was, you know, I really appreciated all
the information you give us, but I wish somebody would

(13:45):
talk about people like me who just can't afford to
buy a home in today's market. It's just too out
of my reach. Everything is to inspect expensive. And you
could just read in the in the email how frustrated
and upset she was that she couldn't become a homeowner

(14:05):
in today's market because she just feels it's just so
out of reach. And there's a lot of people like that. Yeah,
there's a lot of people out there like that, and
some of it might be true. Some of it might
be either just not ready yet or you know that
things have to change.

Speaker 2 (14:20):
I hope she's basing it on actual, factual reality and
not her opinion. That's that's where my separation is. Like,
that's I love that your heartfelt. Thanks for listening that long,
but I hope you're not pigeonholing yourself as I can't
do this basing it on your opinion. Just I listened
to the show, right, I mean, that's great. You should
reach out to these professionals and see if that's a reality,

(14:42):
because the reality might be is she could possibly afford
a home and be positioned to get become a homeowner
in this market. It's it's it's possible, very possible.

Speaker 5 (14:53):
Her story. When she wrote the email to me, her
story reminded me a lot of the people that right
after the short sell low modification crisis that we went through,
where everybody was upside down with the dirty mortgages, and
then as we were crawling out of the hole for that,
and the banks were creating these programs in the federal

(15:14):
government were creating these programs and systems to fix everything
that they broke, right, And they went through all that,
and there was a lot of pain and suffering, and
because of that, a lot of people had a completely
different opinion about owning real estate compared to what we've
had for since World War Two.

Speaker 2 (15:31):
I remember that, and.

Speaker 5 (15:33):
We're going to talk a little bit about that, and
through your eyes in a way, because I wonder what
would have happened. And we'll talk about this in a
little bit, but I wonder what would have happened, Johnny,
if you had bought that house in twenty twelve when
we met you versus twenty fourteen, right, and there would
have been a big significant difference in the amount of

(15:55):
equity you have even today, even after your REFI had
to put this stuff in because there was such a
big jump from twenty twelve to twenty fourteen in housing prices.
But twenty fourteen is still super low compared to today. Sure,
but if so, what I guess what what we're going
to talk about is the perception of real estate market
versus the reality. And don't let perception be your reality

(16:19):
if it isn't really reality. Sometimes perception is the reality. Sure,
but sometimes you your perception becomes reality when it isn't
really reality. I sound like Donald Rumsfeld right now. There
are no knowns and unknown knowns, and no unknowns perceived reality.

Speaker 6 (16:36):
It's the unknown unknowns. That's what really gets you, is
the known unknowns, and then the unknown gets you.

Speaker 5 (16:44):
Hey, I just wanted to say everybody, Francis, Dottie, Kasha, George, Nate,
thanks for coming out and checking out the show. Francis, Betty, everybody,
thanks for coming out and check out the show today.
I hope you really enjoy it. Please don't forget to
like it. Share it to other friends or people that
might have an interest in real estate. Say, hey, these
guys are fun and interesting. You never know that we

(17:06):
could talk about stuff, So I would love you to
do that okay, so let's do the first thing first.

Speaker 2 (17:12):
While you do that, I'll let everybody know if you're
interested in being a part of the program, you're welcome
to join in the conversation, questions, comments concerned in the
world of real estate eight seven seven nine two seven
six nine six nine. We are live on this. Was
it the seventh Yeah, seventh Harbor Day? Yeah? Oh it is? Yeah, Wow,
it's infamous.

Speaker 5 (17:31):
Oh that's right.

Speaker 6 (17:32):
I forget December seventh, seven so crazy, you know, say
happy on It just kind of hit me. Yeah, when
you said it, it's like, oh, yeah, you know what.
I was just still stings.

Speaker 2 (17:41):
You ever been to Harbor?

Speaker 6 (17:42):
No, I've never been to.

Speaker 2 (17:43):
Hawai at all. It's a I haven't been. Is A
is A? I was gonna say, it's an interesting, very
moving day. Yeah, very moving.

Speaker 5 (17:51):
Can you imagine all those planes just going over there
and nobody expecting them, and all those planes fun over
there and just taking down.

Speaker 6 (17:58):
And just think of thinking of what happened to us
snowballed from that or did they? Yeah, it's a Is
there a mystery? I mean I think there's been an
or not?

Speaker 5 (18:10):
Yeah, no, no, no, But it's funny you guys are
bringing all that up because just I don't know why.
But on my YouTube feed, I started watching old press
conferences from Harry Truman telling the Japanese, if you don't
surrender right now, we are going to blow the hell
it's not gonna And I was watching these news conferences.

(18:31):
There were like three to five minutes long with with him,
you know, the real news conferences where he was telling
Japan or whoever. And he was like, Japan, he was
such a bad you know what, because he was like,
we just he goes, if you think what we did
to Germany. He didn't say Germany, he says, but to
the opposition or whatever he called it, were evil access
or whatever he called it. Right, he goes, if you

(18:53):
think what we did to them, he goes, we you
will not have any infrastructure left when we're done with you.
And he was just saying it. And the funny part
is some of it was unedited, and you can I
always thought that. I always heard that Harry Truman never
had like never always had a good night's sleep, Like
after he he released the bombs, he went to bed

(19:15):
like a baby. He's up like a baby. What on
the press conference he was laughing and joking like before,
like right before he had a like right before he
went live, if you will, he had the paper in
front of him, everything to read, and right before, like
three seconds before he went live, you can see him

(19:37):
jacket joking and laughing. He was smiling and laughing. No,
this is while he was saying, we were gonna blow
you up, like you they hadn't done it yet, right,
And then he did one, and then the press comference.
Then you saw the press conference where he did the
first one Eroshiama I think was the first one, and

(19:57):
then he was like, we're coming after you again for
another one if you don't do something, and then he
had Nagasaki. So anyway, it was really interesting to watch
all those old clips from back then nineteen Yeah.

Speaker 2 (20:09):
Uh, when we get into that conversation because Pearl Harbor
Day Live on this Saturday, and of course gave you
that total free number if you'd like to be a
part of the program. If you're not comfortable on the radio,
always remember Florida Talk real Estate is a dot com.
That's right, Florida Talk real Estate dot com. Access to
the entire team pros bros. You get them all at
Florida Talkrealestate dot Com.

Speaker 5 (20:28):
We have a lot of insurance stuff to talk about today, Ross,
but there is a really interesting article that came out.

Speaker 2 (20:35):
I just wanted to see what everybody yet turn your
head do you?

Speaker 5 (20:38):
Oh you can really not hear okay, sorry, but that
it's just you're okay, sorry, in and out like it's
because Ross is in a different spot today.

Speaker 6 (20:45):
So I turned into look at bring the mic with you.

Speaker 5 (20:48):
Yeah, I need to do that. So I was reading
an article, it was actually on WPTV how homeowners could
get a twenty year freeze on property tax right, And
this is a suggestion by somebody on the Banking and
Finance Committee for the state legislator of the Senate of

(21:09):
Finance and Banking Committee trying to come up with ideas
to reduce costs for homeowners because everything's so unaffordable, like
we were talking about just at the beginning of the show.
So what they're proposing, Ross is that if you have
a house that's mid nineteen nineties or older, and you

(21:31):
upgrade the house or hurricane protection. Now didn't go into
great detail of what that entailed, but if you hurricane
proof your home, you would be eligible to have a
freeze on your property taxes for fifteen to twenty years.

(21:53):
Right now, A freeze, I'm assuming means that it won't
go up over that fifteen or twenty years. I'm assuming
that that's what.

Speaker 6 (22:00):
It means, and not now because if your values go down.

Speaker 5 (22:04):
That was one of the questions I have, Ross. I
have the same question is because like in the way
it works now with homesteading, when your homestead your property
in Florida, your your property taxes can never go up
more than three percent a year if you're homesteaded. But
if property values go down, you can see your tax
value go down with that drop as low as it goes.

(22:28):
There's no floor, right, there's only a ceiling of three percent.
So I was wondering the same thing, Ross, like what
happens if property values go down and you're locked in
at that one rate and then the rates go down
to you get that credit? So and I also wondered,
how can you do that for fifteen to twenty years?

(22:49):
Do we have enough money? Does Florida have enough money
in its coffers that they don't need to have property
taxes increase for fifteen to twenty years and still service everybody.
That doesn't even make any sense to me.

Speaker 6 (23:02):
I mean, from what I know, they do a every
county you know in the state does a budget every
single year. Yes, and property taxes are adjusted, you know,
the milit rates are adjusted based on the money they
need to get from property taxes. That includes you know,
education system and you know just if you look at
your term notice you'll see all those different categories of

(23:23):
what's being taxed. You know where that money is going.
So I don't know how they would do that. I also,
it's only for homes that have been upgraded. What about
homes that were built after the mid nineties that are
that have all the hurricane protection? Seems seems like a
hair brained.

Speaker 5 (23:38):
I do feel like people are grasping for straws. But
you know, I'm not saying it's a negative thing, because
at least they're trying to do something. Spitballing. I think
I'd rather have the spitball than twiddling your fingers saying
there's nothing we could do.

Speaker 6 (23:54):
I mean probably the the real uh when am I
trying to say the the thing they need to approach
is the budgeting, right, like, so can they do can
the government run with less right, because if you don't
need to collect as much tax to find out, then
you can have less less lances in general. Right, it's
property to me.

Speaker 5 (24:15):
To me, it's very interesting about that because what I
always you know, we've gone through a very strong run
of appreciation. And you can see on the property appraisers
some of the not all of them, but some of
the county property appraiser sites, it'll show you the difference
in the year for the taxes that are being paid
on that house. But it also shows you a percentage

(24:38):
figure of whether that is an increase in value or
a decent increase in value compared to the year before.
Does pomp Beach County have it, I don't remember. I
don't see.

Speaker 6 (24:47):
It's not as a percentage, but you can bring it
up and you could see, yeah, it's been an appreciation
since at least since twenty twelve.

Speaker 5 (24:55):
No, well, I can't tell you. I don't remember if
it's Pompbach count or not. But whatever one that does,
whatever ones that do the percentages. I was surprised that
last year I saw a bunch of negatives in the neighborhoods,
Like some of the houses they had negative valuation, meaning
depreciation according to the county, which is a little different

(25:18):
than what your house is worth. Usually the county's value
is about forty percent less than what your house is
really worth. But and I don't even know why that
came about. You know why that came about. But getting
back to do we have enough money to pay for
everything if the tax base was decreased, right, We've had
such strong appreciation for the last ten years. But I

(25:40):
haven't seen them cutting back our tax bill that much.
They've been just getting the extra money, right because the
appreciation went up. It's interesting, but I don't really see
them like saying, hey, I don't see that. What I
saw was is that they were increasing government programs for
whatever reason, like for different things. But I didn't see

(26:01):
them going, hey, we have extra money. It's time to
give back to the residents and not increase their tax
base as much this year. Right, wait, like we don't
need as much millage right now.

Speaker 2 (26:11):
I don't think we're having this conversation at all. If
if the insurance industry isn't kind of in the situation
it's in in Florida in the last handful of years.
Oh yeah, I don't think we're having this conversation.

Speaker 5 (26:20):
I agree with it.

Speaker 2 (26:21):
It's only about, well, we're not getting any movement in
the insurance industries, so what can we do? How about
this thing that we shouldn't touch?

Speaker 5 (26:28):
Yeah, I kind of agree with what is there is?

Speaker 7 (26:30):
There is the is the county tax because we paid
county taxes? Is part of that any state or is
it all county? I know nothing about the taxes. There's
no that we got to pay them. Well, it is
part county and then part a little bit of the
state because the state could freeze their part of it
while the county still does.

Speaker 5 (26:50):
There I can't believe. I don't know the answer.

Speaker 6 (26:52):
I want to say it's all county base, but I
want to say thereunty.

Speaker 5 (26:55):
Base makes sense. And the state does sales tax. I
think the state does sales tax business stacks.

Speaker 2 (27:00):
So I look at my sheet every year. It's it
kind of makes sense to me, sort to I mean,
I don't it's all local services. I feel like it's
all local.

Speaker 3 (27:10):
Yeah, schools.

Speaker 4 (27:11):
Yeah, I also think that part of that that To
get back to the article you're talking about where they were,
you know, if you do improvements to your house from
you know, in the older houses, when I read that article.
The idea behind it, I think that was to incentivize
homeowners with older homes that were more susceptible to hurricane damage.
So if we can reduce that, if we give them

(27:32):
an incentive to improve their house, there wouldn't be as
much destruction during storms.

Speaker 5 (27:37):
That's true.

Speaker 2 (27:38):
Part that was part of it.

Speaker 5 (27:39):
That's true, Jimmy, that was a very big point of
why they came up with the idea. But my big
question is if you put on a roof today and
you're getting a twenty year freeze, some insurance companies won't
even give you the twenty years for the new group,
you know what I mean, right?

Speaker 7 (27:55):
But I mean also, why don't they just instead of
doing that, you know if it because that's a state
person that said that, right, yes, yeah, okay, but it
affects the counties because it's the counties that levy the taxes.
Why don't they just overfund the my Safe Florida Home program?

Speaker 2 (28:12):
Wow? That was Yeah, that's what hit me too. I
was like, it was already programs that are incentivizing people
to do this to their homes. That doesn't feel like
gets utilized much.

Speaker 5 (28:23):
It's really that's A, I can't. I forgot to mention
this one of our customers. Uh, Marianna and Lou they
live out in West Delray and they're in the process
of use in my safel is it my Safe Florida.

Speaker 6 (28:37):
Homes or my Florida Homes, my say Florida Home.

Speaker 5 (28:40):
Florida Homes, and they're using that program to put on
a new roof for their house. So they have a
barrel toile roof. We weren't sure if the roof was
going to be good or not. Marianna felt like it
was a you know, the roof was pretty good. But
because it was barreltown and it was twenty three years old, right,
and she's like, oh, it's a forty year roof, you

(29:01):
got plenty of life. I'm like, we should go get
a useful life reports.

Speaker 7 (29:06):
So again right under the because it was twenty one
years old, what it was twenty three years old? Yeah,
so it was put on in two thousand and one,
so it doesn't qualify for the two thousand and two
FBC discount. So that's why especially eligible for a new roof.
What's FBC the Florida Building Code two thousand and one
Florida Building code that went into effect in March of
two thousand and two.

Speaker 5 (29:26):
This she might have, she might be two thousand and three.
Then Ross because she got the program.

Speaker 7 (29:31):
Well that's what I'm saying. Oh okay, yeah, yeah. So
because it was put on after two days, it was put.

Speaker 5 (29:35):
On before, oh, before two thousand, so.

Speaker 7 (29:38):
It didn't qualify for that discount. So because it was
an older rifficquals buys for the discounts. She gets a
new tow roof.

Speaker 5 (29:44):
Yeah, so she's going to get ten thousand. We had
Ross And I never remember the company that we bring
out that you recommended that we really love. What's the
name of the companies? The third nail is the third
nail the pump Beaches. Yeah, third nail the Palm Beaches.
So that company's awesome. They go out, they're so essional
to get everything done really fast if they give you
what a useful life report is on the roof? Right,

(30:06):
So a useful life report? You need that when you're
buying a home.

Speaker 6 (30:09):
Oh you mean Florida Lifestyle Inspection one.

Speaker 5 (30:12):
Oh, that the Useful Life report.

Speaker 2 (30:16):
Okay, what's it called Florida Lifestyle?

Speaker 5 (30:18):
Florida Lifestyle Okay, And anybody needs a useful life report.
Give us a call. We'll get you over to those
people because they're great, but they always show up on time.
They give us a report. Now, the reason why you're
doing that is a seller, because really it's a buyer's
responsibility for that report is we're trying to offset any
kind of problems or headaches that might pop up in

(30:38):
the future. She was pretty confident that we weren't going
to have a problem with the roof. I said, well,
let's spend I think it was like one hundred and
fifty bucks for this report. Let's spend the report and
find out what's going on. Well, her useful life came
in at five years, right, so it was right on
the edge. So she's like, we're just going to put
the roof on because my say, Florida Holmes already approved us,
and I'm going to get a discount. So it's like, hey, yeah,

(31:00):
well that makes sense. The roof was roughly forty she's
getting ten back from the state, so she's getting twenty
five percent off her roof. Right, beautiful, and then if
she ever goes to sell the house, you'll have like
a new roof right on the house, which you'll be great. So,
but that might say Florida Holmes. What I found out
about that program is is that you got to put

(31:22):
up all the money up front and the state pays
you back when you're done. And I didn't know that.

Speaker 7 (31:28):
I thought it for my dad. I just went through
the process for my dad. That took her a while
and you know, got it.

Speaker 5 (31:34):
How long did it take you to get the payment back? Was?
I heard like three to nine months?

Speaker 6 (31:39):
A couple after I submitted everything. A couple of weeks.

Speaker 5 (31:41):
A couple of weeks, Okay, Yeah, the ross is a
pro Yeah.

Speaker 2 (31:44):
Right, well find out now that was I didn't.

Speaker 6 (31:46):
I mean, that was a completely new process to me.

Speaker 2 (31:49):
And how to go through it.

Speaker 6 (31:49):
I mean, luckily I have no but you have skills. Yeah,
luckily I have some sort of background in all of it,
a special special set you've acquired over a very long career. Yeah,
common sense and so a lot of it made sense
to me.

Speaker 2 (32:03):
And you know, I didn't have questions. I could figure
it out.

Speaker 6 (32:05):
But somebody who's not used to doing it, you know,
you could have delays by not getting the correct paperwork
and all that.

Speaker 5 (32:13):
I kind of agree with Jimothy that maybe we should
just expand my say Florida Homes program to get people
incentiveies to upgrade their houses that way, or this is.

Speaker 4 (32:22):
An additional incentive. I mean, you know, the incentive with
my Florida is you're going to get some of that
money back.

Speaker 2 (32:27):
But here's it.

Speaker 4 (32:28):
Here's an even more incentive to go ahead and go
through the process. I mean, I'm looking at it not
just a roof rights and all other things. I'm not
saying I necessarily agree with it. I just that's the
way I read the article. I'm looking at the details
of the property tax. I would say it's all county.
There's a couple that might spread across multiple counties. There's

(32:50):
everglades construction. There's one category.

Speaker 6 (32:53):
There's the Indian Trails Improvement District, which is I guess
that's Paul Beach County. But maybe it goes into does
it come up it has a little bit.

Speaker 5 (33:02):
Yeah, it's just some like little special government. But it's
not really just considered a city.

Speaker 6 (33:06):
Yeah, it's fire rescue, it's library services, children's services, school healthcare. Yeah.
So so mostly county. And they should they show a
ten year or this on Palm Beach County. So over
ten years, there's not been. It's it's an increased in
the appraise value every single year since twenty fifteen.

Speaker 7 (33:27):
Yeah, and thanks Mike talking about the freeze. So your
taxes get freezed. Right, it's your home, it's your homesteads.
So in twenty twenty two, I are between twenty twenty
two and twenty twenty three, I paid fifty dollars more, right,
and then between this year it's actually seventy dollars less.

Speaker 2 (33:49):
Right.

Speaker 7 (33:50):
So I would rather have a bunch of more my
safe Florida home money than say, fifty bucks a year
for twenty years.

Speaker 5 (33:57):
I agree, Sure, take the ten grand. This is the
other thing I want to just leave off of this
and then we'll take the break. But I wanted to
leave off about homeowners insurance because Russ and I were
talking about this yesterday. Mark Cuban from Shark Tank and
the billionaire owns the Mavericks and all that, he just
came out with an opinion saying that this will be

(34:18):
the number one affordability issue in the United States. And
he said, of course Florida is going to have the
most huge problems of this. But what do you think
he's thinking is the most affordability issue for housing insurance.
And what he's saying is that this is going to
become a problem across the country, and I already know
it's a problem, like in Denver. I have a buddy
out in Denver, so I read a lot of stuff

(34:39):
about what's going on in the Denver real estate market.
We just did a thing with Johnny last week at
the expensive most expensive insurance markets in the country, and
of course Florida's number one, but Denver specifically, or the
Colorado area that was number two in the country for
most expensive homeowners insurance right now because of all the

(35:01):
disasters and everything. And that's what me and Johnny were
talking about last week, is that the Florida stuff isn't
related to disasters. It isn't because we had a bunch
of wildfires or flooding or tornadoes. It's because of the
fraud that we went through. And that's why we're seeing
that our rates right now Alcinonwood are starting to flatten
out a little bit and they're not increasing as much

(35:23):
because we've been two years into this trying to fix
the problem. But the rest of the country they got
to deal with it now. So we're a little ahead
of the curve. I'm getting we're ahead of the curve
on the problem and a head of a curve on
fixing it.

Speaker 7 (35:36):
Yeah, where I would say we're on the downside where
there's a lot of people still going going up.

Speaker 5 (35:41):
Yeah, just waking up to the problem. Oh my god,
my insurance is going up. We already went through I.

Speaker 2 (35:45):
Just we already went through all that.

Speaker 6 (35:47):
We had a Reefi client, they're insurance renews in January
and it was same carrier, no change in coverage, and
it was seventy dollars less. And you know, it's whatever,
it's a four thousand dollars policy, but it was, say
dollars less on the renewal.

Speaker 5 (36:01):
It's better than a thirty percent increase exactly. Any money
coming back to you is just like at the booker table.
Any money coming back to you, that's a good thing, right,
you don't care.

Speaker 3 (36:11):
That's all headline too with the citizens is under a
million customers?

Speaker 5 (36:14):
Now?

Speaker 2 (36:15):
Is that? Oh?

Speaker 5 (36:15):
I didn't read that.

Speaker 4 (36:17):
I mean it was just a it was a chiron
on a news yeah thing, So I didn't look into it.
I don't have a lot of numbers on that. Maybe
Ross would know better and if that's a positive.

Speaker 6 (36:25):
For us, if the off the rolls there. We had
to two storms come through the West coast right just
not just recently, and and everyone was very worried about
the increases related to the storm activity.

Speaker 2 (36:40):
They're just denying claims. There's gonna be, there's gonna be.

Speaker 6 (36:43):
No, don't say deny.

Speaker 5 (36:46):
And yeah, yeah, yeah. We learned the dirty secret from
that execution, for that assassination. We learned the dirty secret,
the three d's.

Speaker 2 (36:56):
Oh you don't know what, no I do? Yeah, yeah, yeah.

Speaker 5 (36:59):
So anyway, I just think it's kind of interesting that
now you know, insurance is becoming a national issue. Just
reminds me how Florida's ground zero for so many things
when it comes to real estate. Sure, when the market crash,
we were the ground zero for that crash. It was
a toss up between our area on the east coast
and Lee High Acres and Lee High Acres on the

(37:21):
west coast. That Lee High Acres man that was so
frothy own it got crushed. And I had a friend
who invested a lot of money in land out there,
and what a waste.

Speaker 2 (37:34):
It was a waste of that.

Speaker 5 (37:37):
But so I just thought it was interesting about insurance.
It's getting better for us in Florida, but it's still
a big issue in nationwide, and the politicians are still
trying to figure out how to make it better for us,
and they're coming up with ideas, but I don't think
any of them are going to stick yet. So the
best best best thing to do maybe is just offer

(37:57):
more incentives for people to get their house is stiffened
up and upgraded to handle the storms. I think that's
what we're gonna do.

Speaker 6 (38:07):
Yeah, then what can you do against tornadoes?

Speaker 5 (38:09):
Oh? Yeah, I know this tornado. I learned so much
in that that one storm. I learned so much about
tornadoes because I did not know much about them at all. Okay,
so what we're gonna do on the flip side, We're
gonna end up talking. We're gonna talk about what happens
when your house doesn't appraise. This is gonna become a
more common situation as we go through next year, I believe,

(38:33):
because I don't expect that property prices are gonna increase
at the speed and rate that we've seen over the
last couple of years. I think it's gonna be more
of a flat year. Yeah, just like an okay year,
as far as property values increasing, it might be a
good time for buyers though. So we're gonna talk about
what happens if you in today's market, if you have

(38:58):
a financed offer in the house doesn't praise, What are
the options for the seller and the buyer, and how
do buyers and sellers usually handle that when it doesn't
a praise because.

Speaker 6 (39:07):
And how to agents handle it?

Speaker 5 (39:09):
That's true too, Yeah, okay, so that's what we're gonna
talk about on the flip side.

Speaker 2 (39:13):
Excellent four minutes from now, we'll get into that. Of course.
Always remember, Florida Talk real Estate is a dot com.
Your access to the entire team. These are pros, pros
experts in their field, and man do they work cohesively
together to get whatever you're trying to get done done right.
Buying a home, selling a home, stuck with a home,
you don't know what to do anything that touches the
world of real estate. We got a professional for you,
Florida Talkrealestate dot com. Know what, use it, love it share.

(39:36):
We're back in four minutes. Thanks for being with us
every Saturday, Florida Talk real Estate right here on Real Radio.

Speaker 1 (39:56):
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 (40:06):
That's it eight seven seven nine two seven six nine
six ' nine. Toll free into the studio. You want
to jump into the conversation at hand. You have a
question comment concerned in the world of real estate. Don't
be shot. You dial it up on this h Pearl
Harbor Day, Snumber seventh. We're live. The first voice you'll
hear melodious tones of our producer at Shorten Air. Jimothy,

(40:28):
my brother from another mother. How you know him?

Speaker 3 (40:30):
I know one pretty good. Good morning, Johnny, Good morning, gentlemen.

Speaker 2 (40:33):
Always a pleasure my friend. Yes, that's me, Johnny c
your old buddy. You're old pal. Ross Cameron, that's is
with us on this Saturday. He's also with Bright Winn
Shureer's June no beach, Ross, how are you you know?

Speaker 6 (40:44):
That's right, It's good.

Speaker 2 (40:45):
Good to see as always. Mike Rows with us too,
he's the mortgage guy from the mortgage firm. How are you.

Speaker 6 (40:51):
I'm doing great this morning, love to hear. Yeah, always
nice to see you as well. Oh, yeah, I agree
with that. Yeah, when I look in the mirror, that's
what I say.

Speaker 2 (40:58):
You're nice to say it, right. Good night, buddy man,
are you getting better?

Speaker 3 (41:07):
Welcome to those grades?

Speaker 6 (41:08):
Are really coming in night right?

Speaker 1 (41:09):
Yeah?

Speaker 6 (41:10):
Starting to fill out. I mean, I'm gonna get to
your territory here soon. You're gonna embrace it when it happens.
I mean, yeah, when am I gonna just for men?
So I get people all the time. It makes you
look old.

Speaker 2 (41:19):
I'm like, I'm old. What do you want from me?

Speaker 6 (41:22):
Yeah, I've accepted that reality.

Speaker 2 (41:23):
And then I take my hat off and I have
the mohawk and they're like, oh, look at you. You're young.

Speaker 6 (41:27):
You say, I'm young on the inside.

Speaker 2 (41:29):
That's right.

Speaker 6 (41:29):
How many concerts did you go to? Right last year?

Speaker 2 (41:32):
By the way, if anybody's looking forget anything for me
for the holidays, I am be size front row on
my concert tickets.

Speaker 6 (41:40):
Nice the floor, Thank you very much.

Speaker 2 (41:42):
Pearl Jams coming.

Speaker 6 (41:43):
By the way, would you go to a concert if
somebody got you tickets but you were up in like
the seats, Yeah, of course you'd go.

Speaker 2 (41:50):
I've actually so I've sat Pearl Jams coming to the
hard Rock Lab by the way. If you cut that,
you need to sign out for your pre sale by
the tenth. If you're going to go though, you have
a chance. Just have to laugh. That venue is beautiful.
Not my favorite venue in the world because it's only
a seven thousand seater so it's really limited. It's hard

(42:11):
to get in there. Yeah. I saw a really spectacular
Metallica show, like the coolest Metallica show ever. It was.
It was the tribute show for the Azulu Family, a
little throwback for Metallica, so it was for Metallica for
things to say. I wanted to play old stuff. It
was that show.

Speaker 6 (42:27):
Nice.

Speaker 2 (42:27):
It was all old stuff. And we sat. My back
was against the wall at the very top of that venue,
and it was still amazing.

Speaker 6 (42:35):
Yeah, I say, I think I saw I saw the
Killers there and I was up but on the like
the front row of that top section. Yeah, it still
sounds great. I mean it sounded we're down there a
little wait, yeah, a little far away. Yeah, you can't
really dance like you'd want to. No, it's yeah, it's
a little awkward. But yeah, but you saw free tickets.
It's free tickets, okay, all right, And when we spend

(42:56):
on them. I'll take free, but I just I know
I'm not going.

Speaker 2 (42:59):
To be where I want to be.

Speaker 6 (43:00):
Yeah, if you're doing the choosing, we're we're pretty prime.
Yeah yeah, and we're paying for them. Yeah yeah, that's
just the way it works. But yeah, good to see
you too.

Speaker 2 (43:10):
Oh, thank you very much. Pearl Jam's coming, by the way.
I don't know if I told you. Yeah where hard
rock Life. Oh yeah, you get them two nights by
the way, a Thursday and a Saturday. If you want
to get tickets, you need to sign up for the
pre cell code. When is that by December tenth? I
think you should buy the tech.

Speaker 6 (43:27):
Yeah, it's not too late, but it's going to be.

Speaker 2 (43:30):
Yeah, give they give you ample time. Winter show.

Speaker 6 (43:34):
I mean, I love Pearl Jam.

Speaker 2 (43:35):
I just twenty four and twenty six.

Speaker 6 (43:37):
Wow, I have I've never seen them in concerts.

Speaker 2 (43:40):
It's good time.

Speaker 6 (43:41):
Yeah, think about that.

Speaker 2 (43:42):
If you're going to do it, try to get the
pre cell code. But now, Jimmy D's with us, y all.
He's our fearless leader. I've told you twelve plus years now.
He runs a top producer Keller Williams team, the Florida
Home Pros Team, a Keller, Williams Innovations, Jimmy d how
you be.

Speaker 5 (43:55):
Hey, I'm doing good. Everybody. Thanks, Happy South Florida. I
just want to give a couple of more shout outs
to our Facebook and YouTube crowd. Mcgally, thanks for stopping
by again. That's awesome, had a funny Linda. Haven't seen
Linda here in a while. Thank you so much for
stopping by. I hope you and Joe we're going to
have a great holiday season. Linda mcgally, Uh did I

(44:17):
say mcgaughey already?

Speaker 2 (44:18):
You did?

Speaker 5 (44:19):
Oh mcguy, I'm sorry. And then Nick Nick had a funny,
funny comment when we were talking about the roof on
the last second. He goes, forty thousand dollars for a roof.

Speaker 6 (44:29):
Yikes for a tile roof. Yea, what it costs.

Speaker 5 (44:34):
Yeah it was. It's a bigger house, but not a
gigantic house. It was a little disappointed here forty grand Jim.

Speaker 6 (44:39):
There was there was a roofing company in my mom's
neighborhood who was doing like the the main buildings, like
the Association million and they were going around quoting everybody,
you know, And my mom's talking to me and she's
like they're telling me this and it's gonna, you know,
coming up on X amount of years and I'm going
to have insurance problems. So they're kind of like pitching
them the quotes for those roofs. And it's not like

(45:01):
she's you know, I don't know how many square feed
er houses, but it's not like humongous or anything. It
was fifty sixty something like that were the quotes for this.

Speaker 5 (45:10):
That house actually a little smaller than the one until
right that I just got the quote from. Yeah, yeah,
you gotta be really careful.

Speaker 6 (45:17):
They kind of, you know, they those roofers kind of
had a captive audience, right. They were there, we were
in the neighborhood. They weren't like canvassing like the insurance thing,
but they were like, hey, we're here and we're we're
doing group discount type of thing, right, so get it.

Speaker 2 (45:30):
Get it.

Speaker 6 (45:30):
Well, the getting's good, But the quotes were crazy. Experience
with the quote group discount, yeah exactly, exactly.

Speaker 5 (45:36):
Yeah, it was crazy.

Speaker 6 (45:39):
So she didn't do it.

Speaker 5 (45:40):
Yeah, yeah, how old is the roof anyway? Not old
enough where she's worry about it. We're worried about it
right now. Yeah, So I had an interesting thing happened
this week that hasn't happened to me in a long time,
which is one of my houses didn't a praise when
when we went into contract. Oh, so, let me just

(46:01):
go over that a little bit and then talk about
what happens in real life when your house doesn't appraise,
because it's really can be very traumatic for the buyer
and the seller, even though that both sides might have
a differing view of what the other side's thinking. So
I wanted to get in that a little bit. But
I'm not going to go into the house that I
have the appraisal problem with right now because we're in

(46:24):
the process of disputing that appraisal, so I don't want
to go into the numbers on that house or anything.
So I'm just going to make up completely numbers with
a completely different house and things like that. But so
let's say that let's say that we had a house
on the market for five hundred thousand dollars, okay, and
then let's say that the person that's buying the house

(46:46):
wants to get what's called a seller concession. And we've
all talked about that on the show multiple times, and
they're more and more common today seller concessions. When you
say that's true, Mike, that the sellers are more likely
to give a concession than three years, will go yes,
for sure.

Speaker 6 (47:01):
And that's because you know, it's somewhat more of a
buyer's market now than it was then. So I would say,
any any it's a good indicator you're you're in a
buyer market because buyers are able to get things out
of the sellers that.

Speaker 5 (47:12):
The price, which otherwise seller concession and other things.

Speaker 2 (47:16):
Right.

Speaker 5 (47:16):
Yeah, So what happened here was is the buyers needed
to get some type of seller concession. Okay, so let's
just say it's twenty five thousand dollars on making it up.

Speaker 6 (47:27):
They needed cash.

Speaker 5 (47:28):
They needed cash.

Speaker 6 (47:29):
They need just help what they're closing costs.

Speaker 5 (47:31):
Right. So I always ask this question when people ask
for a seller concession. My question is to the realtor
end or loan office or I said, do they do
they need the money or do they want the money?

Speaker 2 (47:44):
Right?

Speaker 5 (47:44):
Chause there's the difference between the two. This was need
the money and that's it.

Speaker 6 (47:49):
That's sometime that's a delicate conversation, like your loan originator,
because essentially you don't want to give away their negotiating position.
But you also don't want to be adversarial with the
listing agent. Ultimately, you want the contract to go, so
you have to balance that. But it's easy when they
need it, because then you just come out and say it, yeah,
like yeah, one hundred percent. They need this money. Otherwise

(48:09):
they don't have enough to close any and if you
can't give it to them, they're gonna have to buy somebody.

Speaker 5 (48:12):
They've got to buy something else. And that's what happened
in this case, right. So in this case, they actually
even confided to me that they put two other offers
in on houses they liked better than ours, but that
the sellers would not give them the seller concession that
they needed to close. So what we did in this

(48:33):
case is because the seller concession was large enough that
the guy wasn't netting what he was hoping to net
as his beautiful price, beautiful world price, right like in
a beautiful world, I get this from my house. So
what he decided to do was is to raise the
price of the house to offset some of the seller concessions,

(48:56):
not all of it. Not he didn't raise it by
twenty five grand, you know, in this case because in
this case, they needed twenty five thousand dollars, but he
did raise it more than what the original list price
was and then gave some money back to the seller,
I mean the buyer. Now what I had to explain
to the seller and sellers need to know this is
that means that your house has to praise at the
higher price. Right, it's got to praise at the higher price.

Speaker 2 (49:19):
Now.

Speaker 5 (49:20):
So if we had it at five hundred is a
list price, but now we're raising it to five twenty,
so we can give twenty five back to the people. Right,
your house now has to praise a five twenty. Well,
in this case, the house didn't a praise for the
price that we set. And now can I just real quick?

Speaker 2 (49:37):
So I always thought a praise was all about the
amount you were going to be borrowing. So that's a
that's a new equation in my mind.

Speaker 5 (49:46):
When you're do you do you want to answer that? Mic? Yeah?

Speaker 6 (49:50):
Sure, it's so you're borrowing a percentage of the value
of the home. Right, so loan to value. You've heard
that LTV. Right, So let's say you doing a five
percent down payment, right, conventional loan five percent down Your
loan amount is ninety five percent of the value. Right,
so LTV loan to value. So the value is initially

(50:12):
what you agreed to buy the home for, right, But
then the appraisal, and this is the whole purpose of
the appraisal, is an independent opinion on the value of
the home. Right. So the appraiser's task is to make
sure that the home is worth what you're paying for it, essentially,
because you're borrowing a percentage of that amount. And so

(50:32):
you know, if you have a five hundred and twenty
thousand dollars purchase price, you're borrowing ninety five percent of
that five twenty You want it to appraise for five
twenty or more, so that your loan can still be
that you know the amount that you want it. When
it apprais is low, the value is lower, right, because
the value is either the purchase price or the appraised value,

(50:54):
whichever is lower, and then your ninety five percent, of
course gets smaller if the value you.

Speaker 2 (51:00):
Get smaller makes perfect sense.

Speaker 6 (51:01):
Yeah, well, and that's why it's a complication and people financing.

Speaker 5 (51:05):
A lot of people don't understand that the appraisal is
really not for the buyer. It's for the lender to
make sure that the lender is not overpaying or that
the house is in horrible condition that an appraiser goes,
wait a second, you know, you got, you got, you
got exposed wires all over the place and polybutling pipe.

Speaker 6 (51:23):
Part of it is is like safety related conditions of
the home. But the primary purpose is to determine, you know,
an independent, third party opinion, professional opinion of the value
of the home, and then you compare that with what
you've agreed to pay for it.

Speaker 5 (51:37):
So when a house doesn't appraise, okay, now you and
and the seller and the buyer can't work with the
number that the appraisal came out, then it becomes how
do you correct the appraisal if you even can. So
there's a thing called a reconsideration of appraisal. Is that
what's a value of value? Reconsideration of value, which is

(52:00):
basically saying, hey, appraiser, you screwed up the number. But
it's a very delicate situation because the person that's going
to make a decision as to whether a mistake was
made was the appraisal that wrote the report correct? Yes,
So the person that you're disputing the value from is

(52:20):
the person that's going to decide whether or not you're right. Okay,
so you have to be very delicate when you do this,
and to be fair the appraiser in this one case,
his numbers really weren't off off because the appraisals numbers
he did, all of them were relatively recent and they're

(52:41):
relatively same features in the same size house. But they
were all three to five were many of them. There
were five properties, and I think three of the five
were three to five miles away from the neighborhood. Well,
in Port Saint Lucy, you don't really have to do that.
You can go a much tighter closer in the neighborhood
and get same recent sales. And in those recent sales

(53:06):
that were closer by, they were let's say we were
at five point twenty, right, and let's say the appraisal
came in at four ninety five or something. Okay, Well,
we had closer houses, closer in date, similar features and upgrades,
same size that we're selling instead of four ninety five,

(53:28):
like the appraisal came in, we got five, ten, five
point fifteen, five point thirty, but none of those were selected.
He took like the lowest price homes and our house
had a lot of upgrades, had a brand new ac,
brand new garage door, brand new water heater, freshly painted
inside and out. That doesn't really help with the appraisal
that much, but it makes it easier to sell brand

(53:50):
new appliance package. All the fans and the LFE fixtures
were replaced, right, Everything was in very very good, brand
new carpeting in the bedrooms. So a ball to wall, yeah,
wall the wall carpet it right, So yeah, yeah, exactly,
So what floating floating carpet. Yeah, I have a new

(54:10):
product called the floating carpet. It's called a rug.

Speaker 6 (54:12):
It's called a rug.

Speaker 5 (54:14):
So uh So, anyway, it's a very delicate situation. So
you've got to figure out how are you going to
try to get this number up? Because people need the
money and my sellar what wasn't going to take.

Speaker 6 (54:25):
And it's a really good point you made that the
appraiser is the one who's deciding, oh, yeah, you know what,
I did miss these details, or hey I did use
the wrong comps and here I've I've reconsidered, I've taken
what you've given us and I've changed my mind. Right,
the praiser has to have the personality to be able
to kind.

Speaker 5 (54:43):
Of large enough. Yeah, be large enough in order to
do that, and some of it becomes ego, right, just
becomes egos sometimes not all the time.

Speaker 6 (54:50):
Sure, yeah, it's it's also I think there's you say,
you know, you have to be careful. It's delicate because
you're you have to assume and this is a mistake
that I see a lot of agents making. You have
to assume that the appraiser knows what they're doing right,
that they're professional, that they have experience, that they're able
to do their job properly, and so you have to

(55:10):
approach them as if that's the case, and then just say, hey,
but we saw this and this is what we're thinking,
please reconsider right. So many times agents their first reaction
is well that that appraiser doesn't know what the hell
they're doing right, and how could they get it so wrong?
Like they could look at the neighbor home here it's
sold for this And a lot of times, yeah, agents

(55:33):
are thinking about price as the biggest like comparison point.
But it's not price, it's everything else, right, It's square footage,
it's location, it's time from the sale, Like how you
know how how recent was it? So all those things
that you mentioned, but a lot of agents and even
you know, sellers, just the people selling their home. They're

(55:56):
looking at what's this house down the street sold for,
what's this one across the streets sold for? And they're
using that as their barometer when that may not be
the best the best comparable property.

Speaker 5 (56:06):
And square footage really makes a difference. Here's an interesting
fact people don't get. Most of the homes in that
neighborhood are sewn basically two hundred dollars a square foot.
It could be one seventy five to two twenty five,
but two hundred dollars a square foot, right. But because

(56:26):
one of the houses he selected was a little larger
than ours, they had adjust for the square footage. Right.
But he only gave and this was the thing, a
benefit to the seller in this case seventy five. It
gave fifty dollars a square foot for the extra square footage,
not a two hundred, right.

Speaker 6 (56:44):
And that's where you get a little bit of like
appraiser discretion because I'll see, you know, I've seen that, like,
so the price per square foot is this, but you've
only had made an adjustment for square footage, you know,
based on fifty dollars seventy five dollars, I've seen you
one hundred and seventy five, and so they pray basically
that's where they can kind of put their stamp on things.

Speaker 5 (57:03):
So how I handled how I handled the reconsideration, I had,
you know, the mortgage company for the buyers. They called
up up and she was like Beatrice, and she was like, Hey,
the house didn't a praise. We got to do something
about this. Get me four comps that you think that
will be a better reflection of what this house is worth.

(57:24):
Now here's here's another little myth. A lot of times
sellers think when the house doesn't appraise, somehow the buyer
was involved in having the house not a praised because
in a way, it could be in the buyer's best
interest from the seller's point of view, to get the
lower appraisal, because then you can go back to the
sell and go house didn't appraise. If you want to
sell the house to me, you got to drop the price.

(57:46):
But it most of the time, I don't really see
that in real life. What I see is when the
house doesn't appraise, the buyers is bummed out. As the seller.
Do you see that, mic or do you see that?
A lot of times the buyers are kicking up their
and go, wow, I don't have to pay as much
I can.

Speaker 6 (58:02):
Maybe there's an initial reaction like that, but then reality
sets in, which is, hey, this is a complication to
getting to the goal of closing on this home. Like
so I'll have people like, oh, gee, I hope it
appraises low. I'm like, no, you don't. You really don't
want that, right because that and then I explain like, okay,
here's the outcomes. Here's the potential outcomes when you have
a low appraisal. Kind we want to go through those. Yeah,

(58:23):
so this is a conversation I will have with agents
and with buyers. Praise is low, that means your max
loan amount is going to go down. So you know,
outcome number one best case for you, mister or missus buyer,
the seller lowers the price to the appraised value. That's
that's ideal, that's what you want. That's kind of like
you're opening salvo. And this is assuming you're negotiating. You
haven't gone through because or maybe you've gone through your reconsideration.

(58:45):
But anyway, this is the value you have to work with. Right,
So option one, best case for the buyer, price reduces
to the appraised value. Option two, best case for the seller,
the price stays the same and the buyer just has
to make up that gap with cash. They got to
bring in the additional cash. Option number three and this
is oftentimes where you land. There's some middle ground right

(59:06):
between the original purchase price and the praise value. You
meet somewhere in the middle, sellers giving some buyers are
having to come up with some cash. And then option
number four, and this is the real one. The deal
dies instead. Deal dies You guys can't come to terms you.
They won't come down, you won't go up, you don't
have the cash, Like it just can't happen. Deal dies.
And when that's when you've already invested all you know

(59:29):
you may have been This could have been like your
sixth contract that you finally got in an offer on right,
somebody finally had the seller concession. You were able to
negotiate that like so, and you've paid for the appraisal,
you've paid for home inspections, like you're invested in this
thing financially, emotionally. And when you don't get to the
finish line, like that's that's it's a gut.

Speaker 5 (59:52):
It costs your time and money, and it emotionally in
your head, you're thinking, once you go into contract, you
get through the inspection. In your head you're pretty much like,
this is.

Speaker 6 (01:00:00):
My house, but any of those four scenarios are on
the table, right, So that sometimes buyers will think and maybe,
like with FHA or VA, there's a little bit of
this where you don't have to pay over the appraise value,
but then the deal can die, right, you can also
negotiate any of this, And now this is really forced,
So the buyers sometimes think, Okay, if the praises love

(01:00:21):
Boom price comes down, no sellers will think of it
praising loads. I don't care. We already have an agreed
upon purchase price, right.

Speaker 5 (01:00:28):
And what the buyers don't understand sometimes is the seller
is agreeing. When they give a seller concession, they're automatically
agreeing before the appraisal comes in. It's like, I know
my house will be worth X, but I'm going to
give you some of that money back so that you
can close. So you're actually taking less than the full
value of the home. So you're really doing something for

(01:00:50):
the buyer, because you could just say no, I want
the full of praise value. Why would I give you
money back? Right? And there are people out there that
do that, right, It just depends on the needs to
the seller.

Speaker 6 (01:01:01):
Yeah, And it's something you have to be aware of
as a listing agent when you're you know, both the
agents are kind of the professionals on the value of
the home before the appraiser, right, So you have to
have some idea and this is part of your listing presentation, like, hey,
I think you can sell it for this homes and
here's the comps, here's what homes are selling for. So
you're doing some level of what the appraiser does when

(01:01:22):
you list it and also when you're negotiating the prices, right,
And in this case, you guys determined to go up
on the value so that you can get the get
the concession, so kind of like get something for the buyer,
get something the sellers, you know, given some ground too.
But is it going to appraise? And that's a question
you have to like think about it and also prepare

(01:01:45):
the parties for it, Like, hey, guys, if it doesn't appraise,
we're going to have to like find some middle ground.
We're gonna have to do something.

Speaker 5 (01:01:50):
Yes, and and and then. So now let's say before
you get to that point where you're negotiating finally with
the buyer, let's say that you get the bat appraisal,
and now you're trying to correct the number to make
it go higher, to make it more palatable for everybody,
workable for everybody. That's the situation that we were in
this week. So I had to go through and do

(01:02:11):
the report, and I got some really great tips on
how to present this without trying to get the appraiser,
like getting the appraiser all bent out of shape. So
I used and it was all real. I'm not doing
smoke and mirrors. But you had to do it the
right way. You can't say, oh, you picked the lowest

(01:02:32):
prices in the neighborhood, younored everything else, and you went
so far out of your way to do it. You
went five miles away, you know, to find houses that
met this lower number. You can't go that way because
it is an art, not a science. So they have
the right to do that, and they have to meet
federal standards. So in their mind they were like, I
feel like this is the fair market for the house.

(01:02:53):
So now you have to explain to them why they
should reconsider. So how I started off with was in
this neighborhood, there is a wide rain of value of
the homes even though that they're similarly sized and in
the same age, because most of the houses were like
two thousand and two to twenty ten in this neighborhood,
almost all of them, right, so the age of the

(01:03:15):
homes were about the same, the sizes were the same,
but there was a really big variance, like fifteen percent
variance on low price to high price in the neighborhood.
So what I explained in the report was the reason
why there's such a huge variance depends on the upgrades

(01:03:36):
of the house that have happened since the house was built.
Some of the houses are original everything, and some of
them don't even have full hurricane protection, you know, which
is going to cause insurance you know, costs and things
like that. So what we explained was one more time
in the report, all the upgrades that were just done
in the last sixty sixty days to the house, and

(01:04:00):
that's why our house sold in eleven days, while many
of the other houses used in comps for fifty days
ninety days on the market because they didn't have the
upgrades that we had, and that made our house more desirable.
And then I brought in four houses that were eight
thousand two Wow, I can't believe this. Eight to fifty

(01:04:20):
eight thousand dollars more that were the same square footage
that closed in the exact same time, closer to my
house than the ones that he selected. So now we
got our fingers crossed. The mortgage broker was really happy
with the report. She says she has a really good
track record of getting these corrected in some way. But

(01:04:42):
I really don't know because I always hear reconsideration. I
heard like a five percent five percent of the time
they'll actually do something. Ninety five percent of the time
they're like, no, I'm sticking with my report, right.

Speaker 6 (01:04:55):
Yeah, I mean the the I think the process is
very similar lender lender, and I would think the results
are similar too, because the appraisers, again, you have to
assume that they know what they're doing to start with, right,
that they're just not not rookie, you know. Now, there
could be some out there. Yeah, it takes I mean,
AJ would be a good person to talk to about this,

(01:05:16):
but it takes time and experience and effort to become
even a license to praise it right. And there's there's
also like a praiser trainee like status, and.

Speaker 5 (01:05:25):
You can get in trouble in there. If you can
get in trouble if you don't, if you start getting
a bad reputation where you're appraising high or appraising low,
you can get in trouble. It could affect your license.

Speaker 6 (01:05:37):
You're certainly you know, lenders have some sort of selection
process for appraisers that they have on their panel of
potential appraisers, like you know, just imagine like a round
robin type thing where you have a whole series of
appraisers that you have vetted through whatever process you have,
and these are the praisers that are picking up orders
as you put them through. So you're not picking a

(01:05:57):
specific appraiser, but you do have a panel of a
raisers who've been vetted and on your on your team,
so not your team, but you know, on your panel
of selections. So if you get like loan originators, and
if all of a sudden you see, hey, this thing
is assigned to this appraiser or this appraisal company, and
you like rolling your eyes, like, oga, here we go,
another low ball, another low appraisal, and there's like if that,

(01:06:20):
if you get that reputation, you could be removed from
the appraisal panel. Right. And it's not not like, oh,
this is the only reason, but if you have somebody
who's constantly wrong and like demonstrably wrong, meaning you got
you have to do reconsideration every time and they're always
you know, or you have to go to their boss, right,

(01:06:41):
or you have to show that that appraisal is so
bad where we got to get a different appraisal, right
because this is just so wrong, which is one of
potential recourse.

Speaker 2 (01:06:49):
Right.

Speaker 5 (01:06:49):
I remember one time, Mike, you and I were doing
a deal and uh, the appraiser I'll never forget was
since Saint Lucy, and the appraiser came in with the
squire foage way lower than what was reflected on the
county records. Yes remember that measurements. And the guy was
from out of the area. He's like from Orlando or something.

(01:07:09):
And I met with them and we went through everything,
and then the report came back and he's like, your
house is four hundred square feet smaller than what what's
records saying Yeah. So based on the reduction in the
square footage that he measured, the house didn't appraise by
tens of thousands of dollars. It was a tremendous amount
of money way off. And I was like, this is

(01:07:31):
crazy town. This guy's from a different area. I was
so mad. I remember this, and I was so mad.
And he came back out, Remember Mike, he came back out.
I don't know if you remember.

Speaker 6 (01:07:40):
Yes, remeasured, and we remeasured, and I was.

Speaker 5 (01:07:43):
There holding one end of the tape. Well, he was
measured everything because I wanted to make sure it was right,
you know what. The guy was right and there was
nothing we really did do on that.

Speaker 6 (01:07:52):
The so like it got into like, well, gee, the
property taxes are higher than they should be because they're
given this value based on this square footage. Somebody's got
to go get the square footage corrected at the property appraiser.

Speaker 5 (01:08:03):
Yeah, and they paid taxes on that extra four hundred
square feet for god knows how long could she own
the house.

Speaker 2 (01:08:08):
For a long time? Yeah.

Speaker 6 (01:08:10):
I had one one time, Jim, where it was new
construction and the appraiser missed the bedroom, so he gave it.
You know, it was like a three to two instead
of a four two and it came in low. And
then the builder's like, yeah, this is a four bedroom house.

Speaker 2 (01:08:24):
Guys.

Speaker 6 (01:08:26):
Uh, let's get a reconsideration right here. And then and
then we go back to the appraiser. He's like, I
don't think I missed that. He went back out to
the hogh He's like, oh, yeah, it was behind this door.
Somehow I missed that. And then yeah, but the values
stay the same because it's the same square footage. That's
what I wanted to bedrooms versus square footage. You like,
either give adjustment one, one, one or both, right, And

(01:08:47):
so he said no, that I got the square footage right.
Therefore the value is correct in this case. Imagine me
having to explain that to everybody, the agents, the builder, like, hey, listen,
you're right about the bedroom, but our values stay in
the same.

Speaker 5 (01:09:01):
And that's what I learned from AJ. Right. So with AJ,
he was you know, he gives me advice on the side,
just his perspective on how to handle things and everything.
He's not giving me full professional advice. I'm not relying
on him, but I am listening to him and taking
advices I feel needed and what happened with AJA industry. Yeah,

(01:09:22):
so my comps before, remember I said, I went to
the appraiser and said, would you like me to submit
the comps I have? My comps were way higher than
the comps he had. I had one of the five
properties that he had in his comps were in my
comps only one and the other four is like, where
the hell did these come from? Right? But mine were
so much higher. But when we went over them, AJ

(01:09:42):
kept saying four bedroom, four bedroom for some of the
ones I had selected, And I go, AJ, you taught
us on the show a million times. Square footage is
what matters, not whether it's three bedroom or two bedroom,
And he goes, Yeah, for me, he goes, But my partner,
he goes, my partner, if there was a four bedroom
and a three bedroom in the neighborhood and they were

(01:10:03):
the same square footage, he gave more value to the
four bedroom home even though they were the same square footage.
And so it is an art not a science. And
that's where you get really screwed up.

Speaker 6 (01:10:13):
I would say, for sure. So the whole point of
the appraisal is to take your home, stack it up
against similar homes that have sold recently right in the neighborhood.
The closer to your home the better, but also the
most comparable in features, which includes bedrooms, bathrooms, square footage,

(01:10:37):
pool garage.

Speaker 1 (01:10:38):
You know.

Speaker 6 (01:10:38):
Think you want to basically homes that are as much
like your home as possible, And so I would say
looking for three two's makes more sense, even if you
haven't had have to widen your circle, than looking at
four bedroom homes. Right, you got a three bedroom home,
you want three bedroom comparables?

Speaker 2 (01:10:55):
Yeah, it makes most sense to me.

Speaker 5 (01:10:56):
To me, and that's what I did. I went back
and I changed every think to a three bedroom. I
still I felt like I still had the comps I needed.
Now it's just gonna be it's really the art not
the science now because my stats were equal to the
stats he had. Yeah, now we're just gonna see, like
which way he's I think the Yeah, the best approached Jim.

Speaker 6 (01:11:16):
If I were like, give someone advice an agent, well,
number one, you have to get on the same page, like, hey, everybody,
are we definitely going to do the reconsideration because some
buyers would be like, no, why would I do that?
Let's work with this, And then you're like, but the
deal's going to die, and then you start to see
the value in asking for the reconsideration. It's not a dispute,
it's a reconsideration request. So the first thing I would

(01:11:36):
do is to review the appraisal and make sure that
he didn't make any mistakes either on the the details
of your home things like bedrooms, bathroom, square footage features,
and that he didn't make mistakes on the comparable homes,
meaning he's making an adjustment for square footage but that
was wrong, or he didn't give you an adjustment for

(01:12:00):
features on your home compared to these other ones. So
you want to make sure there's no mistakes, like obvious
errors in the comps and your and your home. That's
that's number one. The second thing is you look for
comparable properties that are more appropriate than the ones that
the appraiser selected. Right, they're usually picking somewhere between three

(01:12:20):
to six comparable homes, and if you have properties that
you think are more comparable, right, more appropriate, so they're
they're closer in time, closer in features, you know, just
like all of that stuff, and you say, well, why
weren't these considered? So we would like to submit these
and here's why we think they're more comparable, and it

(01:12:42):
should be based on square footage, bedrooms, bathrooms, location and
also proximity in time. Right, So, and then the third
thing is you never want to approach the appraiser as
if they don't know what they're doing. So you have
to like he's kind of like treat them with kid gloves.
But I would just give him a professional courtesy of saying, hey, listen,

(01:13:05):
we understand you're a professional. Here, we're we're also you know,
trying to be as much as we can. Here's what
we think where you either made some errors or didn't
select the best comparable properties.

Speaker 5 (01:13:20):
Yeah, maybe you haven't thought about this or that. Yeah,
and get through now.

Speaker 6 (01:13:24):
If you find and if you can convince the lender
that this appraiser really is incompetent, then you go back
and say, listen, it's just so wrong. Why would we
go back to them for another one? Can you guys
do a second appraisal?

Speaker 5 (01:13:35):
I do have one other question then I want to
get into some insurance stuff with Ross. But my question
is this, Mike, because Aha, wasn't even sure. We kind
of didn't remember that appraisal actually had the fha V
A number attached to it. Yeah, so when you're doing
an FHA v A loan and you have an appraisal,

(01:13:57):
the appraisal sticks with the property for certain period of time,
even if you don't close. But no, no, no, But
that's what we're trying to figure out. I thought it
was sixty or ninety days, and JA thought it might
be as much as six months. I don't think six
months is correct either. You know what I want?

Speaker 6 (01:14:14):
Four months is a number that's popping into my head.

Speaker 5 (01:14:17):
We're all over the place of this one, and I
would say.

Speaker 6 (01:14:20):
It's no less than three no less than three months,
and probably no more than six months.

Speaker 5 (01:14:25):
So what I had to explain to the seller there is.

Speaker 6 (01:14:28):
One caveat there.

Speaker 2 (01:14:29):
Okay.

Speaker 6 (01:14:29):
The caveat is it's up to the lender. In the
case of FAHA, the lender basically does what they call
the FAHA appraisal logging, and if they don't do that,
then it won't it's never ryah.

Speaker 5 (01:14:41):
It has to be logged, right.

Speaker 2 (01:14:43):
Yeah.

Speaker 6 (01:14:43):
VA is different because the VA appraisal appraiser does all
of that in the VA's system, but the FAHA system,
it's up to the lender to take that.

Speaker 5 (01:14:53):
If you have a number on top of the appraisal.
Do you think that's logged?

Speaker 6 (01:14:58):
No, not necessarily is required when it's an FAHA because
it's required on the appraisal.

Speaker 5 (01:15:05):
I had to explain to the seller, look, if this house,
if this steal dies, yeah, and we put it back
on the market and we get another FHA or via
buy er. Because I saw the goad up there, you
have to use that it might be stuck with the
house for a period of time. It's like really, And
I'm like, yeah, so you might be stuck with that
appraisal for a little bit. And now if you do
a conventional loan, right, then it doesn't matter because you're

(01:15:27):
going to get a completely new appraisal.

Speaker 6 (01:15:29):
And that's the default is to assume that it is
going to stick with the home. Right, So this is
this thing where I'm saying with the lender has to
log it, like you just have to assume the lender
is going to log it. But yeah, I mean that's
something you have to think about, and you essentially would
be eliminating future FAHA offers. Right, So if this one

(01:15:50):
doesn't happen because you guys just can't come to terms
when you're when you're considering your new offers. You got
to eliminate FHA borrowers, right because you already have an
appraisal where you know, it's just not going to work
for yeah at that price point. If they don't have
a yeah, you can't get this deal done. And then
we can't do it with the next one.

Speaker 5 (01:16:07):
Yeah, what are you gonna do on the next one,
because we're gonna have the same appraisal. Well, the next
one you might not have to offer a twenty five
thousand dollars in concessions that we were talking about, So
that would be the difference, Like, Hey, we're not going
to offer anything this time. You're gonna have to give
us this price. I wanted to tell you, got that
in the in the works. You don't have a I
just turned everything up lessoray. It took me like three

(01:16:28):
and a half hours to do all the research. I
really took my time with it, and I really write
a good you know, I'm ragging on myself, but I
really write a report that is factual, not like just
my opinion, like you know, oh you're you know you
didn't pick this property because blah blah blah, and shame
on you. I'm like, hey, here are four of the
properties that i'd like you to consider. This is why

(01:16:50):
I want you to consider them. So I put in
it's one point three miles away from this house. It
closed in this time period. These are the upgrades on
this house, which are very similar to the upgrades we
had on our house.

Speaker 6 (01:17:01):
Yeah, right, And then I.

Speaker 5 (01:17:02):
Would say, and it closed with FAHA financing, or closed
with conventional financing, or closed with VA financing. And I
had all three as examples, all three different types of
financing with my houses. So it showed that they appraised right,
they got the appraisal right because they closed. Yeah, So
I'm saying, why can't you consider these as opposed to those?

(01:17:22):
So we'll just see, but you know, we're hoping next
week we'll get a response.

Speaker 6 (01:17:26):
Yeah, And if you don't, then it's like, well what
do we do there? And if you're still trying to
get I mean, the only recourse there is to talk
to the lender and say, hey, this appraiser, this appraisal
is not fair, it's not representative. You guys got to
do something, yeah, right, And you know that buyer potentially
if they're if they're not getting what they want from
the lender and they just they still want to pursue
the home. You know, they could switch lenders.

Speaker 5 (01:17:48):
Yeah, they could move over differently.

Speaker 6 (01:17:50):
Of course if it's an faha appraisal, we got that.

Speaker 5 (01:17:52):
Yeah, you still got the appraisal stuck with. Yeah, So Ross,
I want to talk about two things today. But the
first thing I want to talk about was when the
conversation you had with somebody just recently. It was last week.
And a lot of people are deciding not to ensure
their homes if they don't have a mortgage self insuring,

(01:18:12):
and I have people I know personally that are doing that.

Speaker 1 (01:18:16):
Now.

Speaker 5 (01:18:17):
One of the people I know that are doing that.
If the whole house blew down and they had to
rebuild it, if they felt like doing it, they could
just do it cash, right, And it's a seven figure house, right,
so yeah, and less and he could just go ahead
and take care of it and it wouldn't really be
that big of a you know, big of a financial difficulty.

Speaker 2 (01:18:40):
I'm sorry, you could just say his name.

Speaker 8 (01:18:44):
Business.

Speaker 5 (01:18:46):
So I'm trying to keep a private ross.

Speaker 6 (01:18:48):
Here, including the land, including the after the decimal to
the sense.

Speaker 5 (01:18:57):
Yeah, not including the pennies. It would be nine figures,
including the pennies of the nine figures. But I know
more and more people are doing that. We heard a
lot of people on the West Coast after twenty twenty
two they decided not to ensure. Then they got hit
with the two storms this year, and you know they're
they're in a lot of pain and ross. You just
had a conversation with the person that was talking about

(01:19:20):
maybe it isn't worth ensuring my house because of the cost,
and you were doing some financial calculations of what he
owed on the property on the loan and what he
would have to do in order not to have insurance,
which would be paying off the loan. So how do
you like.

Speaker 7 (01:19:40):
Well, I mean, it was just kind of a conversation
that we were having and it just got me thinking.
But basically, you know, he was like, man, I can't
believe in all these the real numbers. I can't believe
my insurance is thirteen thousand dollars a year. Yeah that
is a lot of money. Yeah, absolutely, And you know
he's like, man, I wish I could just pay this off.
Maybe I could, maybe I could pay off my mortgage

(01:20:01):
in two years. I owe four hundred and fifty thousand,
and I'm like, man, that's a you know, my head
just kind of like, that's a lot of money to
shell out, you know, to save thirteen thousand dollars a year.
And I kind of thought about it, and don't call.
Don't call the thirteen thousand dollars requirement and insurance policy

(01:20:24):
called an interest only loan that will build your house
in the future when it burns down. Right, So that
thirteen thousand dollars on four hundred and fifty thousand is
what he owes. It's like two point eight percent, So
he's basically paying two point eight percent interest only loan
to have four hundred and fifty thousand dollars in his pocket.

Speaker 2 (01:20:46):
Right, does that make sense? You excited it? Well? Yeah? Right?

Speaker 7 (01:20:51):
So is it worth it to spend spend four hundred
and fifty thousand dollars when you're just borrowing, you know,
to get rid of that quote unquote four hundred and
fifty thousand dollars debt to give up a two point
eight percent interest only loan.

Speaker 5 (01:21:09):
I'm doing a calculation. Yeah, it would take thirty right,
it would take what it would take thirty four years
to make it to make that up. Yeah, it would
be thirty four years to make.

Speaker 2 (01:21:24):
Up the money.

Speaker 7 (01:21:24):
Yeah, so basically you're just you know, getting it. You're
just paying an extra two point eight percent.

Speaker 5 (01:21:29):
Well right there there, you know, there's you know, when
you're an investor, not talking about insurance. When you're an investor,
you do those calculations all the time. When you reason
why a lot of investors don't buy houses cash is
because they'd rather use other people's money and pay the interest,
Because why would you want to pull Let's say you're

(01:21:51):
buying a house for three hundred, you're going to put
one hundred into it, and then you're going to sell
it for five hundred. Right, Well, let's say you have
the four hundred thousand, the hundred for the construction, the
three hundred for the sale, for the purchase right, and
let's just say the closing cost don't exists, so you
have four hundred thousand dollars cash. My first advice to

(01:22:12):
an investor that's going to buy fix and sell it,
don't take your three hundred thousand dollars and go buy
the house. Go get a hard money loan, pay eight
to twelve percent interest only, and then you have all
that money in your back pocket in case something bad
goes wrong, and then you have the money for the construction.

(01:22:32):
And then when you sell, you are paying the you know,
eight to twelve percent, it's costing you eight to twelve percent,
but you have all your money, right, you have most
of your money in your pocket. Is supposed to pull
it all out there and risking it, right. So that's
a calculation that investors do all the time.

Speaker 2 (01:22:50):
But at some point it would make sense. Although in
that equation, and I might be confusing myself. He's not
paying thirteen K year on a four hundred and fifty
thousand dollar our house, is he? That's his loan amount.

Speaker 6 (01:23:03):
That's how much he owes on his love.

Speaker 2 (01:23:05):
So the rebuild would be a million dollar house, right right? Right?

Speaker 7 (01:23:09):
So that but then you're now we're talking about insurance
and dwelling coverage and all that. And I was just
trying to take the don't call it insurance, get it,
get insurance out of it, sure and and more.

Speaker 2 (01:23:20):
Look at it as a loan.

Speaker 5 (01:23:22):
Yeah, yeah, like some guy, Hey, if I give you thirteen.

Speaker 8 (01:23:27):
But on the on a rebuild though, like say he
needed to cash in, well, no, so I mean his
dwelling coverage might be a million dollars, right, So if
his house burns down, he's they're going to rebuild a
million dollars.

Speaker 6 (01:23:40):
But take the don't call it insurance. We're looking at
it as an expense.

Speaker 7 (01:23:44):
Yeah, and so as an expense. Don't call it insurance.
Just called an interest only loan that you're required to
have to pay off the dwelling for four or fifty thousand, gotcha.

Speaker 6 (01:23:53):
Yeah, So I was just trying to remove the insurance
part of it and look at it as a different
a different requirement, right, different kind of bill. Yeah, it's
a different bill.

Speaker 7 (01:24:03):
Don't call it insurance because basically, it's an expense that
you have in order to in order to be able
to borrow four hundred and fifty thousand dollars, you have
to pay thirteen thousand dollars a year, basically, right, right,
because that's how much.

Speaker 2 (01:24:18):
That's the insurance requirement.

Speaker 7 (01:24:20):
So you can call it an interest only loan, you know,
whatever where he's at, you know, but at some at
some point, if that's one hundred thousand, you know, he
only owes a hundred thousand, and he's paying thirteen thousand
dollars a year, and it then it does. Then it's
eight years, and is it you still have you know,

(01:24:40):
if you're if if he had the ability to pay
two hundred and twenty five thousand dollars a year, you know,
and now it's only one hundred. You know, now he
still has a lot, you know, for that particular person,
because he still has extra cash.

Speaker 6 (01:24:52):
I think if I wear in his shoes just because
he's considering not having insurance at all, I would just go, like, Ross,
just give me the bear, you know, got it bones?
He's still thirteen grand?

Speaker 2 (01:25:02):
Wow? Yeah? Wow?

Speaker 4 (01:25:05):
Is there something to take into consideration if he was
to pay off that four hundred or four hundred and
fifty thousand, that he would save money on interest from
the loan? Does that add into the equation or am
I just not thinking of it?

Speaker 5 (01:25:18):
Yeah?

Speaker 6 (01:25:18):
I think, I mean it's yeah, I get what Ross
is saying. He's basically saying, why would you ever pay
off your loan just to not have insurance? Like, first
of all, insurance is protecting your assets. So you have
this asset that is worth a lot of money, you
should have some level of protection. So like, yeah, it
costs you thirteen thousand, but as a percentage of the

(01:25:39):
value of your home. That's it's probably peanuts, right, You're
protecting your asset for small change. But why would you
ever pay off your loan just to not have to
protect your assets.

Speaker 5 (01:25:49):
Kind of weird, but yeah, it's spending a lot of
money to avoid a thirteen.

Speaker 6 (01:25:53):
Yeah, and then you lose your interest deduction off your taxes.
And if you're even using that, I mean, the standard
aductions are so high these days that most people, I
mean a lot of people are not even itemizing that,
you know, the mortgage interest.

Speaker 5 (01:26:06):
That yeah, right, I wanted. It's kind of funny. I
don't know. Jackie is on Facebook and listener to our
stuff about appraisals, and I'm assuming she's a realter, but
I'm not sure because I can't look it up right now,
But she has a lot of funny comments on the
Facebook thing about she definitely doesn't like appraisers, and I
think that she had a bad appraisal happen in her lifetime.

(01:26:27):
There she's a realter or owner or something.

Speaker 6 (01:26:30):
I think there's a lot of that, Like, Hey, these
guys are on the buyer side, the lenders on the
buyer side, the appraisers on the lender side, like it
it makes sense for us to be in cahoots to
protect the buyer. Right, let's get that low appraisal. But
believe me, Jackie, if you're thinking that it is not
it is not that way. In reality, the appraisal is
one of those like we we want to know that

(01:26:51):
we're getting to the finish line, Jim, Like, we take
that very seriously. Like we're only in contracts that can close, right,
we do there, we're not closing. What are we doing?

Speaker 2 (01:26:59):
Right?

Speaker 6 (01:26:59):
Like, just everyone's spinning their wheels, and the appraisal is
one of those mystery points where you just you kind
of know, but you don't know until you have the report.

Speaker 2 (01:27:09):
And so.

Speaker 6 (01:27:12):
Certainly the professionals are hoping for new complications, right, we
don't want complications. We don't want to have to renegotiate
sales price. We don't want you're counting on the seller concession.
We don't want to have to make adjustments for that, right, Like,
it's already like if we can make this thing work,
everyone's happy with the price, everyone's happy with the deal
we put together. Let's just cross our fingers the hope

(01:27:33):
that appraisal comes in. And so it's not something that
we're looking forward to to have it to deal with, right,
I mean it's a major speed bump potential with robot.

Speaker 5 (01:27:44):
I know. It wrecked my day. I spent three and
a half four hours just they just stop and everything.
Oh yeah, everything I was supposed to do. And I
had to get this corrected for.

Speaker 6 (01:27:52):
My Oh my god. I had one come in. We
had a purchase price was five something. They apprais will
come in at four something. Oh, and my heart dropped.
I said, oh my god. And I know I know
this the appraisal group. And I was like, how could
the agents have been so wrong on this? I'm looking
at the appraisal I'm like looking back up what's going on?
And then I see it's a different address, it's not
our subject property. The appraiser uploaded a different the wrong

(01:28:13):
report to the file. And I was like, oh my god,
heart attack avoided.

Speaker 5 (01:28:17):
That's a good one.

Speaker 6 (01:28:18):
I called the I like you trying to kill me?
You try what's going on?

Speaker 2 (01:28:21):
Like?

Speaker 6 (01:28:21):
What this is the wrong home? Runner thousand Levet. Yeah, Jim,
did you check the address?

Speaker 2 (01:28:28):
Yeah?

Speaker 5 (01:28:29):
Yeah, exactly, Yeah, I think I checked the address, Ross,
I think I did that. I wanted to go over
something with Ross because I was sitting at a dining
room table last Friday, a week ago Friday, and shout
out to Roberto and Yanelli. We helped them buy a
house with Mike back in twenty eighteen. Yeah, really nice

(01:28:50):
home right off of Port Saint Lucis Boulevard the Turnpike,
nice season commute. It's south, three bedroom, two bathpool home.
And now Roberto's leave for a new job assignment and
he's moving to a different part of Florida, so we
got to sell his house. While we were going through
the seller disclosure to take the listing, he mentioned to

(01:29:11):
me that he had a claim for hail and it
damaged his roof. And he's already been approved to put
the roof on Ross and so the claim has been done.
He's just waiting for the roof to be put on.
So we're going to be able to advertise that the
house has a new roof, you know, as we're selling it.

(01:29:32):
But then it occurred to me that we've talked on
the show a few times where if you had a
previous claim on your home, sometimes the new homeowner is
rejected for insurance. And I was wondering if you could
go over that again too, so I can understand that
concept again. And do we have to worry? Do you

(01:29:52):
think with this particular deal about that.

Speaker 7 (01:29:55):
I don't think you have to worry because it's going
to be considered like a wind hail claim, which is
more of an act of God, as opposed to a
water damage claim, which could be, you know, faulty pipes
or or something like that there's something wrong with the house.
So a lot of the times, there's some carriers that

(01:30:16):
you know, always look for prior claims if it's the
current owners or it's you know, the buyer's claims.

Speaker 2 (01:30:25):
There's some carriers that will disregard previous claims.

Speaker 7 (01:30:27):
They're good as long as the you know, the new pert,
the new insured doesn't have any claims. And then there
are some companies that will flat out say, hey, we
won't ensure a home at all if it's had a
claim in the last five years.

Speaker 5 (01:30:39):
So and and that could even happen with those with
those companies. Could it even be where the person that
owns the house never filed a claim, but they've only
lived there three years and the year before they bought it,
the old owner did a claim.

Speaker 2 (01:30:57):
I mean, I've never seen that happen.

Speaker 5 (01:30:58):
Okay, you haven't seen that.

Speaker 7 (01:30:59):
I'm just and I mean even even if it was,
it's still the house right when because we're talking about
we're not talking about current owners. We're talking about that
house itself. So whoever owned it, whatever, if that house
had a claim, it's going to show up.

Speaker 5 (01:31:17):
Does Citizens have a regulation on that? Citizens insurance? So
if you had, if if force came to worse, you
could always go to citizens as a as a second
resort right if you couldn't get the regular.

Speaker 7 (01:31:30):
Citizens might be the best of you know that your
most competitive by one thousand dollars.

Speaker 6 (01:31:35):
Anyway, mm hmmm hmm.

Speaker 5 (01:31:37):
So have you seen that happen.

Speaker 2 (01:31:41):
Yeah.

Speaker 7 (01:31:41):
There's one particular carrier that when you get you go,
you know, go through all go through all the application,
upload all the documents, and at the very end it
says confirm coverage. So you've been quoting these people and
then at the very end, after you get through it,
you confirm the coverage and sometimes it says.

Speaker 5 (01:32:01):
That's interesting. And that's one of the reasons why our
team always uses the four page cellar disclosure. So in
the cellar disclosure that we use. There's really two approved
cellar disclosure forms. One is a one page form. It's
very brief, it doesn't go into all the different features
of the house, and it gives you the most basic disclosure.

(01:32:22):
And then there's a four page disclosure where it goes
over every single type of system in the house, the
electrical system, the hvact, whether there were termites or rodents
or pesticide, whether you ran a meth lab in the house,
if it ever had any of that or haunted. Yeah. No,
they don't have asked that question.

Speaker 6 (01:32:41):
That's that's the five page.

Speaker 5 (01:32:46):
I'm sorry, like it asks about a mesage. Oh yeah,
they'll ask if you have metha fatamine because metha fatamine
is very toxic and you could die.

Speaker 7 (01:32:56):
I doubt the person that actually has a meth labs. Yeah, yeah,
meth lab. Is that an upgrade?

Speaker 5 (01:33:04):
Yeah? I wonder what Walter Wright did when he was
selling his house.

Speaker 2 (01:33:09):
I guess I have to.

Speaker 5 (01:33:12):
Be honest, convicted, convicted, So there's.

Speaker 6 (01:33:16):
Some sort of I guess you have to assume there's
there's a list. I don't know if it's a blacklist
like a book where both the house has a claim history,
and then also the the insured have a claim history.

Speaker 7 (01:33:28):
There's what it's called the Central Loss Underwriting Exchange c
l U E CLUE nice for both auto and homeowners.
And so when you pull the CLUE report for auto insurance,
it'll show me the prior claim.

Speaker 5 (01:33:45):
Oh. It's like it's like n C I C for crime, right,
Like it tells you all the cries that you can
be all across the country.

Speaker 2 (01:33:51):
Is like the fingerprints I had.

Speaker 6 (01:33:53):
There was a client one time he got denied for
homeowners because he had a Uh, I guess it was
a homeowners It was more like personal injury. He was
out in front of his house and get hit by
a like a pack of no, a pack of like
cyclists or something, and it turned in I guess it
was a homeowner's claim. But he was not able to
get homeowner insurance because of that claim. Yeah, maybe he

(01:34:16):
was on the cycle and get hit by a car.
So I don't know. There was there was something funky,
and he was not able to get homewners insurance with
the carrier that he, you know, wanted. So there's some
sort of list. It's a carrier does something different.

Speaker 7 (01:34:29):
You know, they're all private companies that underwrite and look
at things differently, and you just got to know which
way to go.

Speaker 6 (01:34:35):
I mean, I guess if you're gonna get denied, it's
better you get denied in the beginning than when you
actually make a claim, right, Yeah, if you're.

Speaker 5 (01:34:43):
Going to pick a time, Yeah, it's crazy. The good
news on insurance though, is like Ross just mentioned again
that they've heard this from other people, people are actually
seeing their premiums go down a little bit. It might
be fifty bucks seventy bucks a year, but it's much
better than go. My insurance just went from thirty eight
hundred to fifty two hundred dollars, and we were hearing

(01:35:04):
that for many years. Yeah, so at least we're not
seeing that as much.

Speaker 6 (01:35:07):
And we're also seeing more like I see I see
more quotes from Ross that are non citizens quotes. Right,
So there's there's more carrier options, which you know should
be more competition and better rates.

Speaker 2 (01:35:17):
Well, one thing we used to say all the time is, hey,
you know there's a shopy rate. Great way to save
some money, shopy rate, and it kind of gets lost
in the shuffles sometimes. Was the last time you looked
into what your rate could be Florida Talk real Estate
dot Com. We can be connected with the best of
the best. Bright Way Insurance in Juno beach Ross and
his team are phenomenal. They'll send you off some quotes,

(01:35:38):
get an understanding. And again it's about apples to apples.

Speaker 7 (01:35:42):
Also, if I told two people this week that I
didn't want their business, even their I need. I want
you to buy this, I want you to find this pot.
I want you to this is what I want. Do
this to your policy.

Speaker 5 (01:35:53):
Oh no, it worked.

Speaker 2 (01:35:54):
Just just change your policy to this and you're there.

Speaker 7 (01:35:56):
Yeah or yeah, I could save you, you know, like
a thousand bucks this year, but you still have increased
call you got to pay for your inspections.

Speaker 2 (01:36:04):
Uh.

Speaker 7 (01:36:05):
The coverage, I think kind of like if you you
would have to get a supplemental policy if you wanted
to correct liability, and then it didn't offer screen enclosure
coverage for hurricanes, and then I'm like that, I'm not
gonna it's We're not.

Speaker 2 (01:36:18):
Going to give it this to you.

Speaker 5 (01:36:20):
I'm not going to give you this product. You have
a superior product. And and it's so easy, Johnny for
people to say, hey, I want to find out if
I can save money. It's it's so easy. All you
got to do is go to Florida Talk real Estate
dot com give me your address, right, just say hey, Jim,
I need an insurance broke from Ross. You give us
your address. We send the address to Ross usually same day,

(01:36:42):
no later than the next day, but same day. He
gives you usually two quotes, once the premiere quote, once
the discount quote.

Speaker 2 (01:36:49):
Yeah, the budget quote.

Speaker 6 (01:36:50):
If you send it over on Friday at like seven pm,
I don't get on Saturday. That's gonna be Monday morning, Monday.

Speaker 5 (01:36:57):
So so don't do it on Friday, do it on Thursday.

Speaker 2 (01:37:01):
Why wait till ye wait till Friday.

Speaker 5 (01:37:04):
But but it's that simple, guys. All you got to
do is say, hey, Jim, I want an insurance quote,
give me your address. If Ross has any questions, Ross
will reach out to you. Usually he doesn't because how
do you how do you know so much about the
house because you're do you go on the MLS and.

Speaker 2 (01:37:20):
We on the m L.

Speaker 7 (01:37:22):
Yeah, we go on the MLS, but realtor dot Com
is pretty much the same as m LS.

Speaker 2 (01:37:26):
You know.

Speaker 7 (01:37:26):
We we're kind of Internet sleuthy, you know, so we're
able to find out most of the information that we
need that will allow.

Speaker 5 (01:37:34):
Us to do you kind of like look at the
roof on Google and stuff like that. Do you kind
of do that or you don't have to do that?

Speaker 7 (01:37:40):
I mean sometimes, I mean some of the property appraisers
will will show the we'll have a year of roof update,
so it'll show on the property appraiser site. Sometimes sometimes
in the listings, you know it'll show.

Speaker 6 (01:37:53):
But if not, we just.

Speaker 7 (01:37:56):
Kind of in order to get you know, if somebody
just me an address, in order to get you know,
all the companies to come back, we just always quote
less than five years.

Speaker 5 (01:38:07):
I want to switch over because we got a little
bit of time left. I want to switch over about
what's going to happen next year for in the real
estate market Florida and nationally. And so as I read
some articles throughout the next three weeks, I'm going to
start bringing them up on the show to see what
everybody's thinking. I'm also I think this weekend I'm going

(01:38:28):
to go back to last year to see what I predicted.
Mike predicted everything is what interest rates would be. My
memory was the national economists were thinking that we were
going to be like five to five point twenty five
they were thinking, and I was thinking, I'm going to
have one hundred percent on this, so I'm going to
double check it. But I was thinking five point five

(01:38:50):
to five seven five. But Mike, you think that that
was a little different. What was your memory on it?

Speaker 6 (01:38:56):
No, I think I only remember. I think I was
out of all of us, I was the most conservative,
the least optimistic, and so I think it played out.
And not that I'm like a great prognosticator, but I
think I actually probably was the closest to where we
are right now.

Speaker 5 (01:39:13):
Yeah, so where we where we are right now is
six six ' nine for Freddie mac Okay, that came
out this week. Now, we had a when I say significant, So, yeah,
we had a drop.

Speaker 6 (01:39:24):
What do you I just thought of two jokes. Okay,
I have to have a child, a child, No, but
there did. There's a sixty eight and then there's also
the seventy two. So those those are what came to
came to mind.

Speaker 5 (01:39:39):
So so go move on from that for right now.
But we had a point one two drop from last
week to this week. We've been pretty much flat now
for we've been pretty flat since we had slight declines
in October. October, we've been a little flat. I mean,

(01:40:00):
nothing of great import happening.

Speaker 6 (01:40:03):
And I would call this relatively flat for the whole year.
Relatively right I'm looking back.

Speaker 5 (01:40:10):
Yeah, well, actually we're ending up right where we left
off at the beginning of the year. Because January January fourth,
we at six six to two. We're at six six
eight right now. So we went through all that crazy
up and down. What did what did I say, We're
going to be bouncing up and down, up and down
all over.

Speaker 2 (01:40:28):
Yeah.

Speaker 6 (01:40:28):
It was as high as a and then as low as.

Speaker 5 (01:40:34):
Six point eight eight yep, six point eight in September,
right right right the week the Fed cut the rate
was our lowest interest rate for the year, and then
we just went up, up, up, the back up right now.
The thing is is that what so the economists were
thinking we are going to be five and five and
a quarter. I was like, no way, that's not going

(01:40:57):
to happen. And I think maybe five and a half
will be the low. Five seven five is where I
think we're gonna land. I'm a point, I'm over a
point off of where we were. So I was way
off and I point it's a lot.

Speaker 6 (01:41:09):
My prediction was like, I think we're gonna be pretty
much where we are now. I think that's what I say.

Speaker 5 (01:41:13):
Maybe And if you did, then then you were right
on target where we were. So there was a report
that came out yesterday from MarketWatch guessing what's going to
happen next year with the mortgage rates, and they did
it broken down by certain groups, like certain professions that
were given the advice. So here's what market roch is saying.

(01:41:38):
The thirty year mortgage rate is back at seven percent.
And the reason why they're saying that they're not using
the Freddie Mack Report. They're using like Mortgage Daily Business
News Report or something like that of the daily interest
rates being reported, and they go, but when one of
the rates fall, and by how much? If we're at
seven percent right now, And so they talk to a

(01:42:00):
bunch of experts and what the biggest concerns about interest
rate among these groups right now are future economic policies
that might be coming in to the market. So they're
very concerned about tariffs. They feel that the teriffs might
spike inflation, and if inflation fight spikes, the FED is

(01:42:21):
going to have to start raising the rates, which eventually
will raise interest rates and keep them higher. And especially
if the terriffs or consumer prices go up, If the
consumer prices go up, what they're going to want to
do is raise the rates to slow down spending, to
force the manufacturers of the stuff to reduce their prices

(01:42:45):
to a more affordable price. So that's the first thing
they're worried about. And the second thing they're worried about
right now is also.

Speaker 6 (01:42:53):
Unemployment.

Speaker 5 (01:42:55):
The debt now, no, actually debt. They're very worried about
our national debt and they think that that that's going
to increase.

Speaker 2 (01:43:03):
To be worrying number one A and one B in
every equation when they're trying to predict on what's happening,
start talking about the national debts.

Speaker 5 (01:43:15):
Nobody talks about the national debt, you know, and it's
I mean, people talk about but nobody does.

Speaker 2 (01:43:21):
Why we have such the inflationary issues we're dealing.

Speaker 5 (01:43:25):
With and don't and and I don't want to hear
any of the reds or blues point fingers that the
other side because they're both bad on it, both bad
or horrible horrible ones. They're both horrible.

Speaker 2 (01:43:34):
Conservative politicians don't exist anymore. When it comes to finance,
it doesn't exist. Why I bailed from one conservative party
many years ago because they actually bounced from the conservative
side that I cared about. Socialist stay out of my bedroom.
Let's be conservative with our money.

Speaker 5 (01:43:52):
There's there's no nobody has the right to stand on
the house. Nobody has the right to and on their
soapboxes say that they're better than the other side when
it comes to this issue, they're both really really bad.
They just spend, spend, spend. It's just where they're spending
the money. It isn't about cutting back money. It's just

(01:44:12):
like what group are they going to give it to?

Speaker 6 (01:44:15):
Well, at least really at least the new pseudo department
coming in.

Speaker 5 (01:44:20):
Yeah, we'll see. I'm keeping an open mind on it because,
you know, if they can shave, if they can shave
things which needs to be done in a way that
is you mean end well, yeah, well they're going to recommend,
but I'm assuming that, uh you know that, and maybe
they'll come up with some good ideas because let me
tell you, the way it's been running for the last

(01:44:40):
four administrations or five administrations, that's not the answer.

Speaker 6 (01:44:45):
It reminds me did you remember that movie with.

Speaker 5 (01:44:48):
Was it called Dave where the oh yeah, the president guy.

Speaker 6 (01:44:52):
Yeah, let's Kevin Klin. Let's go through the budget. He's
just like going through, why does the you know what,
why do we have this much money for this project?
And he's like doing at the presidential level what you
know accounting departments do, or what they do at the
at the governmental accounting office. You know, that type of
red lining of budget items. But I don't think it

(01:45:13):
really rarely works that way. You can't just go through it.
It does strike out, strikeout.

Speaker 4 (01:45:18):
It's like a TV yellow Yellowstone had a very similar
episode where John Dunton became the governor of the state
and you know, of course he's not really a politician,
and he goes in and he's got all these people,
like the department heads of every part of the state government,
and just to cut through the story real quick, he
ends up firing yea. He turns around, he says, I
think we just saved like so many millions of dollars

(01:45:41):
like that.

Speaker 5 (01:45:42):
I wish it was that simple though. That's nice for TV,
but it doesn't work like that.

Speaker 2 (01:45:47):
I know.

Speaker 5 (01:45:47):
It's just so funny. It makes you feel good, it
makes you feel good watching that, but in real life
it wouldn't work out that way unfortunately. So let's let's
go through the different groups to see what they're predicting
for rates. So the question is that marker watches asking
and this would be something that buyers and sellers should
be really listening close to. The question is will mortgage

(01:46:12):
rates fall below six percent in twenty twenty five? Okay,
that's a point. Any point in twenty twenty five? Are
mortgage rate's going to fall below six percent?

Speaker 6 (01:46:23):
And we're just talking about Freddy's weekly report, right, because if.

Speaker 5 (01:46:29):
You just say not necessarily because the headline the first
sentence is the thirty year mortgage rate is back at
seven percent, and it was two days ago. The article
was two days ago. Okay, so seven percent isn't the
Freddie max? Maybe for more like the real life what's
happening in real life?

Speaker 6 (01:46:46):
Why don't we say, for our purposes of the prediction
that we have to have a benchmark when we use
our benchmark the Freddie Report? So is Freddy any point
in twenty twenty five?

Speaker 5 (01:46:55):
But that isn't the survey that these groups got, So
they're basing it on what they think is going to
happen to interest rates in twenty twenty five, not what
Freddy Mack is doing, but with the real interest rate
do you know.

Speaker 2 (01:47:06):
What I mean?

Speaker 5 (01:47:07):
So okay, so realter dot com. What do you think
the people in realter dot com think the interest rates
will be for twenty twenty five? Like the average, I
shall say average?

Speaker 6 (01:47:18):
What do we think they think?

Speaker 5 (01:47:20):
Who is this the real realter dot com?

Speaker 6 (01:47:22):
I think they're gonna predict yeah below below six yeah,
high high fives six and a quarter pullo yeah.

Speaker 2 (01:47:29):
I think that they all think that it'll be lower.

Speaker 5 (01:47:32):
Lower than what six lower than six six point three percent.
Relter dot com they think will get a low of
six point two percent, but the average will be six
point three percent. So this year our low with six
point oh eight right now unless something happens in the
next three weeks. So they're thinking that we'll be at

(01:47:52):
six point two for the low for the whole year,
which is actually a little higher than our low from
this year. So that's what that's their concerns is how
Trump's policies will impact the US economy and could affect
the direction of mortgage rates. If the markets expect the
administration's policy to push up inflation. They expect the Federal

(01:48:13):
Reserve to hold interest rates higher to address consumer prices,
which in the terms, affects the ten year Treasury notes.
So they're betting that. They're betting that it's going to
be six point three.

Speaker 6 (01:48:28):
And just so you know, the.

Speaker 5 (01:48:33):
The new administration, Trump's administration is predicting that interest rates
are going to drop by two or three percent. They're
going to drop two or three percent. So if we're
at six point sixty eight, they think we're going to
be in the force, right, So that's what they're that's
what they're projecting. Now, if that happened, right, that's just

(01:48:54):
going to make houses even more affordable. I got to
tell you that we're in a really rough situation wation
with housing because either you have affordability issues for the
buyer or the sellers are going to have to take
a bit of a haircut from super high appreciation that
happen over time, and either side is happy with the
other side with the other side wants.

Speaker 6 (01:49:15):
But existing home market. Anyone who's bought in the past,
you know two years, if rates really get down into
the fest will be taking hard looks at refinances. Oh yeah, exactly,
so you know there's that potential. I don't know if
that's good or bad.

Speaker 5 (01:49:28):
Like so real Real dot Com is six point three.
So now they picked out one of the mls IS.
It's one of the larger MLS groups in the country.
A lot of people don't know. MLS isn't a uniform
company that does multiple listing service for every every area
in the country. They're all independently operated like franchises almost.

(01:49:52):
So there's there's a couple of dozen mls is just
in Florida. Right, yeah, So this larger MLS group, what
do you think they're predicting for twenty twenty five?

Speaker 6 (01:50:04):
Six point three? Yeah, right, six point one, let's say
below six again, I'm gonna stay with my six and
a quarter.

Speaker 5 (01:50:15):
You're kind of right. Ross they're predicting six point four
percent average and that the low will be six point
twenty five. Okay, okay, so that's the MLS now Fanny May,
So they may six I'm sorry, yep, So we have
a six point three to six point four Fanny May.
What do you think Fanny May is thinking for next year?

(01:50:36):
Six point three, six six point four with a low
of six point three, So you're kind of right to
Mike for Fanny May and then and then after twenty
twenty five, the National Association of Realtors is saying that
they expected to be at six percent or higher in

(01:50:57):
twenty twenty six. Okay, so why am I bringing this up.
It's just more prognostication that we're going to get more
of these reports as we get closer to the year.
But what I'm also trying to show is that anybody
waiting for a five in front of the you know,
an interest rate of five or four, well for you.

(01:51:21):
Lawrence Young, the economist for National Associated Railtors this quote
is saying, are we going back to four percent for
my forecast? Unfortunately, we will not.

Speaker 2 (01:51:31):
He goes, make this real estate market great again.

Speaker 5 (01:51:34):
He says, it's more likely we'll get back to maybe
six percent, like six point zero, and he goes, the
new normal will be bouncing around. He thinks for the
next couple of years, the new normal will be five
and a half to six and a half, which is
still lower than our thirty year average.

Speaker 2 (01:51:50):
Guy, Wait, I mean they say new normal, like the
new normal became three percent in everybody's head, and like
a year that became the new norm. Seven to me
is the norm? Right?

Speaker 5 (01:52:03):
Nor? Right about that?

Speaker 2 (01:52:04):
That's I'm fifty, that's the norm.

Speaker 5 (01:52:08):
What do we mean new normal?

Speaker 6 (01:52:10):
Yeah?

Speaker 5 (01:52:11):
Well, hell's wrong with well, well let me just let
me just play Devil's advocate. When we first started the show,
the thirty forty year average for interest rates was seven
to nine percent, right, a range of seven and nine
for that forty year. But then when we got those
really low interest rates during COVID, which only lasted like
eighteen months, and.

Speaker 2 (01:52:29):
It's right, nothing that anybody should have ever got used to.

Speaker 5 (01:52:31):
This is a right, and that's not a normal. That
was an outlier, but totally If you add that into
the average and you reduce it to thirty years instead
of forty years, instead of seven and nine, we're uh,
seven to eight, So we're at six point sixty nine
right now.

Speaker 2 (01:52:47):
Go norm?

Speaker 5 (01:52:47):
Right, this is normal norm. So what a lot of
people are predicting is that next year more normal. The
buyers are going to go, Okay, this is it. I've
been waiting to wait and waiting because there's a lot
of pent up demand out there. Do you know that
there's a lot of demand and people are just gonna go, Okay,
it's this is as good as it gets. I gotta
go buy my house.

Speaker 2 (01:53:06):
And spend thirty five hundred bucks a month on rent
until they get there good.

Speaker 5 (01:53:11):
And then and then the sellers, the sellers are going
to realize, hey, I've been sitting in this house. I
really don't want anymore. I'd really like to do something else,
but I've been waiting because my interest rates are so
low I don't want to give it up. And then
they're gonna realize the interest rates aren't going to get
any better for them, and they're finally gonna have to say, Okay,
it's time for me to move. I'm not waiting for

(01:53:33):
the interest rates. So they think this year, twenty twenty
five is going to be that year, and they're actually
expecting to see sales to be more robust than this year,
but not prices. They're not expecting prices to go up
dramatically or come down to the rent or come down.
They're not actually expecting them to come down either. And

(01:53:54):
the buyers have to listen to that too.

Speaker 4 (01:53:55):
But now I'm not though, I'm sorry if that demand
goes up as much as they think, that's going to
probably or it could possibly raise the prices.

Speaker 5 (01:54:04):
Because yes it could and the other things that are
factor as inventory. Inventory is growing a lot. When we
started talking about inventory, I know we only got like
thirty seconds, but when we started talking about inventory on
our show, the average inventory for the realtors for the
MLS was about forty four thousand properties on the market
for residential. Now we're up to fifty five thousand properties

(01:54:25):
on the market for residential. So we've seen it increase
by twenty percent just from us doing that weekly report
as to what's going on. So if the inventory keeps increasing,
the prices will not go up as much as that'll
help people will think.

Speaker 6 (01:54:38):
That will out of the will continue to make predictions
here through the end of December.

Speaker 5 (01:54:43):
Yeah, for the next three weeks we're going to figure
out and then at the end we're going to make
our We're going to stamp our approval on some ideas
and then we'll see what happens.

Speaker 6 (01:54:51):
Beautiful time capsule bury it in the parking lot.

Speaker 5 (01:54:53):
Ye absolutely, yep.

Speaker 2 (01:54:56):
It is officially time for us to tie on a Saturday.
Thanks for being with us Florida Talk real Estate every
Saturday for two hours of info tame. But always remember
you got lots to consume on the YouTube page, including
these streams and Facebook as well. But Florida Talk real
Estate is a dot com. Your access to the entire team,
the one stop real estate shop that is Florida Talkreestate

(01:55:17):
dot com. Know what, use it, love it, share it.
You can change lives, including your own at Florida Talkreestate
dot Com.

Speaker 6 (01:55:23):
Bike grou have a great weekend, you too, enjoy the weather.
Everybuddy Ross Conmerinets please do the same. I'm gonna try
my best, Jimmy d Jim Depola, have a phenomenal rest
of your weekend, my friend.

Speaker 5 (01:55:33):
Thank you so much. I guys hope you guys have
a great weekend.

Speaker 2 (01:55:36):
Jimmthy, you're the best locker rooms there