Shout outs. Interest rates. Student loans. Credit scores. Down payment assistance programs

Episode Transcript

Speaker 1 (00:15):
Navigating today's real estate market can be tricky. Want to
buy our sell a house, finance our, 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. You live on real Radio.

Speaker 2 (00:36):
That's right, that's right. It's Jimmy d taking the place
at Johnny C. Today. He's not feeling a little under
the weather, so we got to hope he's going to
be feeling better a little later this week for next week.
But we still got a great show. Today. We have
Mike Rout from the mortgage firm. Hey Mike, good morning.

Speaker 3 (00:53):
Good morning Jim. We're back. We're live, Yes, sir, it's
been a little bit, Yes it has.

Speaker 2 (00:58):
It's been a couple of weeks. So we are we
are really live. This is nine oh one am on Saturday,
July twelfth. We got Jimithy the producer extraord and ericad Morning.

Speaker 4 (01:08):
Jimmith Day, Hello, gentlemen, good to be here with you.

Speaker 2 (01:10):
I know it's been a while, right I am feels
so weird the whole last like six seven weeks. It's
like people haven't been showing up or not showing up,
or they're sick and everything this summer and I went
on vacation and uh, it was not a vacation at all.
I was sick as a dog the whole time I
was gone. And of course my phone blew up, which
we're going to do in the shout outs, but we have.

(01:32):
I'm really happy that even though that Johnny couldn't make
it and Ross had a cancel day because he has
a special friend coming into town. We have a special guest,
Paul Krasker from Krasker Low the Law Office. PAULI Krasker,
Hey Pa, how are you doing today.

Speaker 5 (01:45):
I'm doing great, Thank you, good, good good.

Speaker 2 (01:47):
I want to talk to you about a little bit
of what's going on in the real estate market from
your perspective, But we're also going to talk just a
little bit about this whole student loan thing. Again. We
talked about that the last time you on the show
about three weeks ago. But I guess there's some changes
to that Save s a Ve program where now they're
going to start garnishing salaries in order to take the

(02:11):
student loan money that's been owed for so long. So
I just want to see if there's any relief out
there for anybody, and if there is, you know, we
want to help them because a lot of stuff is
going on right now. We know that for a lot
of people, economies tight, and we want to help you
wind through this. We have a lot to talk about
on the show today. I have a creepy critter story,

(02:34):
which we'll talk about a little later. We're going to
talk a little bit about a trend that I'm seeing
that's happening. And we started doing this on the show.
Remember about I think it was like October of last year, Mike.
We started going into the MLS and saying, this is
how many properties are for sale on the MLS, and
then we were looking to how many short sales and

(02:55):
what piece of that with short sales and foreclosures. Yeah,
well we've been doing that since October, not every single week,
but a lot of weeks. And we noticed a couple
of trends that were confirmed, you know, through the Realtors Association.
But now I see a trend that isn't really being
talked about too much that can really affect this market
this summer. Okay, so we're going to talk about that

(03:17):
a little bit. It'll be kind of interesting. But first,
if you guys bear with me, I want to do
a bunch of shout outs because isn't it always true
that when you go on vacation everybody wants you at
that point?

Speaker 3 (03:28):
So it feels that way. It definitely feels that way.
I'm sure you've experienced that, Paul. You're you know, I've.

Speaker 5 (03:34):
Been gone for the last two weeks and I'm heading
to my office after this.

Speaker 2 (03:37):
Yeah, Well, with me, what always happens is the week
before I leave, I start calling everybody, Hey, I'm going
to be gone for a week. If you need me,
now is the best time to catch me. I even
send out like these mass emails, Hey I'm going out
of town, but I'm not out of sight, right, just
letting people know. And it was really funny when I
was leaving, two of my customers complain to people that

(03:59):
I found out later I didn't. I didn't bring it
up to the customers that were worried that because I
was out of town, I couldn't negotiate their transactions while
I was out of town. And they were both very
very concerned that I was leaving. I'm like, I haven't
had a vacation in two and a half years. Give
me a break. I mean I work hard.

Speaker 3 (04:19):
From a Remember you do many many transactions, but for
your clients it's like the one big transacts. They just
they want the best of you, Jim.

Speaker 2 (04:28):
I know, I know, but it is funny.

Speaker 6 (04:30):
And then one and if only they had a device
they could connect people, you know, like like through the air,
you know, like a cellular type of.

Speaker 2 (04:40):
Like we want to come up with we want to
come up with it, Yeah we should.

Speaker 3 (04:43):
That could be something that again maybe because they're only
doing it once or twice. Maybe ever, they don't realize
that we conduct most of our business over the phone.

Speaker 2 (04:54):
Well, Like it's so true.

Speaker 3 (04:55):
You probably don't know if you have people coming in.
You probably do in your line, Paul, but them, like
ninety percent of what you're doing is probably not in person,
right unless.

Speaker 2 (05:07):
They're a buyer. Unless they're a buyer, then you see
them a lot more. You're shown up property. But that's
one thing I want to talk about with you, Mike,
is that a lot of people they ask where your
office is, right, Like when I'm talking to him about Hey,
you just got to get to Mike. That's the first step,
you know, We've got to know your numbers first. I
can help you out on the back end. And what

(05:28):
I explained to people is that you do all of
Florida plus many other states. By the way, I'm going
to be doing something in No, not South Carol. I'm
going to be doing something in Tucson, Arizona in case.
I don't know if you have a license here, but
if you want to get one, you might have a
small there. You might have.

Speaker 3 (05:51):
I I'm not currently licensed in Arizona. I have to
see if the mortgage firm is. We probably are, yeah,
and I have to see what they're licensing restrictions are,
so they might have some restrictions.

Speaker 2 (06:01):
Where you need to oh yeah, there's some.

Speaker 3 (06:03):
Some states or have a local branch. I guess like
a physical presence. Yeah, but it depends on the type
oflone you're doing too.

Speaker 2 (06:11):
But getting back to like working with you, almost everything
you can do with you Mike directly is over the phone.
You don't really need to meet person to person unless
they feel the need that I want to just see
the guy I'm working with some people really important to
do that.

Speaker 3 (06:27):
You know, we're exchanging a lot of personal not exchanging,
I'm extracting a lot of personal information from people. And
so sometimes they want to know that, you know that
they can trust you, right, and so you could develop
that over the phone. Obviously do it all the time,
but some people want to face to face not that often.
Probably the biggest one is when people have trouble transmitting

(06:50):
documents electronically or uploading or you know whatever. We yes,
sometimes I'm like, okay, let's let's just meet and I'll
take your you know, especially you know, people who are
self employed with complicated tax returns. Sometimes you know, you're
talking about faxing or faxing, emailing or transmitting you know,
one hundred pages or something like that. So but I

(07:12):
would say ninety five percent of my stuff is.

Speaker 2 (07:14):
Kim Be doing over the phone. And that's just the
way things are right now. There's a lot of agents
that do stuff all over the country in the state
and never meet the people and do everything by the phone.
It's just the way that technology is now. So you
don't have to get is freaked out about it. Both
those people they both went under contract while I was

(07:34):
gone and everything went fun.

Speaker 3 (07:37):
They went under contract. So you negotiated deals.

Speaker 2 (07:40):
While I was out of town. Yeah, and what they wanted. Yeah, Yeah,
everybody was real happy so far. I'm knocking out what
and we've gone through the inspections and the appraisals already
for a lot of the things I put under contract
when I was out of town.

Speaker 3 (07:51):
Yeah.

Speaker 2 (07:52):
So I just want to do a couple of shout
outs if everybody can be okay with that. I had
a lot of really okay with interesting.

Speaker 5 (07:59):
I think I'm good, but I need to know the
exact number.

Speaker 2 (08:01):
Yeah, I need the exact number, and it might be
it might be seven or eight. To be honest with you,
it was ocre at anytime. Yeah, it's like too much gym. Enough, Okay,
I'm a little but I wanted to give a shout
out to Roberto Dedra. They had a really tough case
where they had to bring in a judge to get

(08:24):
the household because the two parties were in agreement. I
was the quarter pointed realtor. We got the house under
contract last week. I was really happy it took us.
It didn't compared to some of the other ones. I'm
going to tell you about this one didn't take that long.
This one was thirty eight days on market and the
biggest problem was trying to get people to come into

(08:45):
the house. But we got that under contract a really
good price. It just did the inspection on Friday yesterday,
so everything's cooking along good for that. So Roberta and
Didra thank you for let me get this thing done
for you. I know it's not easy for either of you,
but we're getting it done and trying to get you
the highest price possible for both parties.

Speaker 3 (09:06):
You go.

Speaker 2 (09:06):
I wanted to give a shout out to Yugo and Carla.
You has been a long time customer of ours. He
had a house that his ex wife needed to sell
in Port Saint Lucy because now she lives in Denver,
and he caught me up and he's like, Jim, this
house was on the market for a year with the
other agent. I need to sell it now. You got
to give me a sell it now price. But I

(09:27):
don't want to go crazy low. I don't want to
give it away, but I need to know what it's
going to cost in that neighborhood, on this size, with
this condition.

Speaker 3 (09:36):
What is it?

Speaker 2 (09:36):
This sell it now price? I spent like four hours
calling agents in that neighborhood. I call it an X
ray of the neighborhood, where I call pending, closed and
active agents that are in some type of transaction over there.
I politely grilled them to ask them all these different
questions about the condition of their property compared to ours

(09:57):
and everything else. And I came up with a price,
and we got it under contract in five days after
it was on the market for a year. We got
nineties either. Let's see, we were eight thousand short fifteen,
so that was like one point eight percent off of
list price. So an average list price right now to

(10:21):
sold price is five percent below list and we were
at ninety eight right, ninety eight point two or something.
So we did good on that one, and I feel
very comfortable. And we almost lost that deal because the commissions.
The seller in this case tried to negotiate the commissions
as part of the deal, and one of the realtors

(10:43):
would not budget on the commission, and it almost turned
into a deal breaker for the deal. And I explained
to the seller, look, you've been on the market for
a year now, right you asked me to give you
a sell it out price. This relter came in with
a very strong offer. You should just give that realtor
what they asked for.

Speaker 3 (11:04):
If he had gotten one hundred percent of what he wanted,
there wouldn't have been a question about the commission, right, So.

Speaker 2 (11:09):
He still would have had this guy, he still would
have and nothing wrong with it. He's a business guy
and he wants the best deal possible. But he would
have argued about the commission. So the commission ended up
becoming non negotiable in a way. If he wanted to
take the deal, that's you had to take it with
the relter's commission fee. I always explained, Paul that commissions

(11:29):
are negotiable. Now I make it crystal clear. Commissions are
negotiable through the whole way of the contract, really, right,
So that yeah, so if there's any kind of countering
back or forth, the commissions can be in play, correct.

Speaker 5 (11:42):
Paul, That's correct.

Speaker 2 (11:45):
And it always was like that, really it always is.

Speaker 5 (11:48):
But you have the buyer's agents who know they're going
to make a three or a two and a half
percent commission on a property, and they don't care about
moving their buyers, right.

Speaker 2 (12:00):
So, right, you've got to be a little.

Speaker 5 (12:02):
Sensitive to if you wanted it comes with this as
a package.

Speaker 2 (12:06):
Yes, And part of the reason of that is because
we are in a buyer's market. If we were not
in a buyer's market, and we were in that COVID market,
sellers would be doing that, buyers would buyers agents. I
predict if we ever get to a market like that again,
and we will at some point, the buyer's agents are
going to get creamed. At that point, it's going to

(12:27):
be a bloodbath for the buyer's agents. Yeah, right now.
But right now, those buyer's agents are very valuable to
the sellers, very valuable. Uh, there's so many properties out
there compared to the buyers and you need buyers agents
to bring you buyers to your property.

Speaker 3 (12:42):
Are you getting that often?

Speaker 2 (12:44):
Jim?

Speaker 1 (12:44):
Like?

Speaker 3 (12:44):
So since the nar settlement, you know, that was the
big thing that you know, sellers don't have to pay
all the commissions they never had to. But whatever, right,
that was the narrative. Are you seeing it a lot
or you haven't really because since since that came out,
it has been this more buyers.

Speaker 2 (13:00):
Right, Mark Right? So the Wall Street Journal just came
out with a front page article like two months ago,
and I never got around to talking about it on
the show and they said that until now, Oh what
do you mean?

Speaker 3 (13:14):
Yeah?

Speaker 2 (13:14):
Oh yeah, yeah, yeah yeah. So what they came out
with they did a national study of the nine months
we've been in since the changes on August sixteenth, twenty
twenty four, about how commissions have to be handled. And
they said that all the parties involved in the article, sellers, buyers,
the lawyers for the DOJ, everybody was complaining that the

(13:39):
commissions didn't drop. They dropped like a zero point four percent.
It went from like an average of almost six percent
to like five point three percent something like that.

Speaker 3 (13:49):
For the sellers, you mean, no, just.

Speaker 2 (13:51):
Overall gross commissions, right, it only dropped about a little
bit less than a half percent. And they were stunned
and they're like, why did this happen? And I'm like,
cause you don't understand economics. If you understood economics, you
know there's a buyer's market in a seller's market, and
you're completely ignoring that when you made all these rules
and regulations, and who.

Speaker 3 (14:11):
Would have predicted you notice, predicted commissions to like overall
commissions paid to agents to go down.

Speaker 2 (14:17):
Oh yeah, they were expecting a to be an average
of four percent growth. You know, right now the average
is between five and six percent gross. They were thinking
it's going to be four percent or less. They also
thought that a lot of buyers were going to have
to pay their own agent and the seller wasn't going
to have to pay that agent.

Speaker 3 (14:36):
That was the big fear.

Speaker 2 (14:37):
Yeah, yeah, and that's not happening because we're in a
buyer's market. Now. If we are in a seller's market,
the sellers have a lot more negotiation in order to
deal with that. Perfect example, remember that house might that
we sold in Jupiter because you helped them buy a
house in Jupiter Farms, and we helped this guy sell

(14:57):
his house in Jupiter, and he told I was calling
everybody in saying at the time, what's your secret number
for your house? It's just like twenty twenty twenty, early
twenty twenty one, that was your listing, this is COVID, No,
this is my phone calls we had Actually Johnny c
was actually calling all our people in the database and

(15:18):
his script was, Hey, Paul, are you thinking about selling
your house? And you would say no, and then he
would say, so if you were to sell your house,
what would be the secret number that would want you
to sell the house, that would make you want and
there's no wrong answer. And of course a lot of
people said, I love my house, I don't want to
sell it. That's a good answer. And some of them
would say, like a million dollars, but their house was

(15:40):
worth five hundred, so you know they wanted to stay. Well,
this particular person, like a couple other people, they gave
us a number where I stopped for a second and
I was like when I heard the number, I was like, hey,
his secret number is too low, right, I can get
more than that. So I met with the guy and
he didn't really believe me that I could really get
the p said he wanted. Now, this is the height

(16:01):
of the COVID frenzied real estate market.

Speaker 3 (16:04):
So he had no idea what the market was in
his neighborhood.

Speaker 2 (16:09):
Right, So we he wanted at the time four fifty. Right.
It was a small three bedroom, two bath and a
very nice area Jupiter no Hr Way, surrounded by properties
that had bridge access with boats. But he wasn't on
a canal, and it was a good neighborhood. And I

(16:32):
told him that we were going to put it on
the market for five hundred, and he thought I was
crazy that I wouldn't even get four fifty, and we
went round a round. I said, why don't you just
give me twenty one days and I'm going to put
it up at five and if we get four fifty
high or will you sell it? And he was like, yeah,
if you could get that right.

Speaker 3 (16:50):
And the shout outs actually might be getting out of
hand because we're shouting out a transaction from me.

Speaker 2 (16:56):
But this is I'm just talking about commissions, about commissions.
So what happened in this is that we put on
the market at five hundred. We had thirteen offers in
seventy two hours, and two of them were cash, and
we took a realtor from Michigan that was a broker
who was buying it cash, and the price went up

(17:16):
to five either five pot twenty five or five point fifty.
It was crazy, right, so I think it was pretty
I'm pretty sure it was five point fifty right. So
we took a five point fifty offer on a five
hundred list price. The guy only wanted four fifty at
the time. Okay, Then the lady was buying a cash
She hired another realtor who was a broker down here

(17:36):
to find her the property. She never saw it. So
then they called up deep into the deal and said, hey,
we're going to bring an appraiser over. And I said, hey,
you guys are cash and she said that's okay, we
understand we're cash. We're not taking away or cash, you know, contingency,
no contingency for cash. But we still want to do
the loan. We're just going to get a loan because

(17:56):
she wants to buy another house.

Speaker 3 (17:57):
I got one happening right now just that.

Speaker 2 (18:00):
Well, guess what the house appraised at four twenty five?
And I almost fell out of my chair because I
didn't think it would be for twenty five at all.
So I called up aj the appraiser that's on our
show right Ajexperiencedppraisers dot Com. And I said, hey, j
what did I do wrong in this property? Goes, oh, Jim,
I know that neighborhood aause. Ajay's lived down here for
forty forty something years. He knows every neighborhood. And he goes, oh,

(18:23):
are you on the water or not on the water?
I go, no, I'm not on the water. And I
didn't take any water comps. Why would I do that right,
I would never take water comps for a nonwater property.
And he goes, yeah, but the water property, the properties
on the water over there, even with fixed bridges, really
changed the prices a lot over there, and he goes,
that's where you made your mistake. So this is what

(18:46):
happened in this case.

Speaker 3 (18:47):
I had.

Speaker 2 (18:48):
You know, the buyer was livid that they were paying
one hundred and twenty five thousand above the appraise value
of the house, but it was a cash tracked and
they had content and they were fifty hard. They had
a fifty thousand dollars deposit. So did they buy the
house or not buy the house?

Speaker 3 (19:05):
Yes?

Speaker 2 (19:06):
What do you think bou bought the house or not
a bought the house? Yes, they did buy the house.
And why they bought the house even though it was
one hundred and twenty five large They didn't want to
lose the fifty. But more importantly, they were Airbnb buyers
and the five point fifty worked for them on the
numbers anyway, you know, they at five point fifty. They
thought the Airbnb numbers worked for them, So she bit

(19:28):
the bullet and bought the house. So the guy made
way more money than he should have made on that house.
Then we helped him find another home in Jupiter. Forms
that you helped him get the loan Onka and that house.
I think they got five thousand, I mean five percent
under a praise value. So he bought that one five
percent under a praise value, and then he got one

(19:50):
hundred and twenty five thousand above a praise value on
a four to twenty five house.

Speaker 3 (19:53):
Yeah, I think the challenge like, even if you're a
cash offer.

Speaker 5 (19:56):
Wait a second, how did that impact commissions we got
on this well, in.

Speaker 2 (20:01):
This case, if if that guy, if it was in
today's market and we had thirteen offers on the table,
somebody out of that group would have said, I don't know,
said I'm not paying your commission. Right, I'm not paying
your commission, and either they would either dump their relter,
which I don't know how they would do if they
have a contract. They'd either dump the realtor not buy

(20:22):
the property, or they would pay the the realtor out
of their pocket. And that's what's going to happen eventually
with these changes. But it only happened when that market
is that market. When we slide into this kind of market,
the buyer's age has become very valuable to the sellers.
And that's the part that the whole DOJ lawsuit, in

(20:44):
my mind, Paul didn't make any sense. They weren't taking
any of those things into consideration.

Speaker 3 (20:50):
I think mist is like where's so, where does the
money exist to pay those commissions? And it's usually on
the on the seller side, right, because it's the equity position,
and the property is where you're that's where most of
the money is generally, and buyers especially certain you know,
the majority of buyers I'm dealing with are low down.

(21:11):
You know, they don't have the twenty percent down, fifty
percent down. They're the low down payment. So like almost
every dollar that they're able to put together is going
towards their down payment and closing costs. That challenge will
still exist. I remember something Paul said one time talking
about like how do you deal with people who are
challenging your rates right or your fees? And Paul said,

(21:33):
you know, I tell them I'm a professional. I provide
a professional service. This is where I charge for my service, right,
Like That's that's it. And I think agents might have
to make that stand at some point, and the people
who want to go low on commissions one way or
the other, either they're forced to or they want to.

(21:53):
They're going to be paying for a certain level of professionalism, right,
and so those agents that are doing it for half
a percent or one percent and it you know, when
the buyers, you know, are in that part market where
they have to pay commissions, well, that's the level of
service they're going to receive.

Speaker 2 (22:09):
Well, right, one of my friends in Colorado, one of
my best friends, he's moving out of the country because
his daughter is going to school in Europe, so he
wants to His family's going to travel out there for
the college years and hang out there. It's going to
be pretty cool for him.

Speaker 5 (22:23):
Glad she gets a little independence during our time.

Speaker 2 (22:25):
No, right, yeah, yeah, exactly. But it is going to
be a great adventure for the family. And what ended
up happening was is they I have a service where
I can place you with top agents anywhere in the
country and also in forty four countries, you know, forty
four other countries besides the United States. And that part

(22:47):
of my business has been growing a lot. In fact,
I've got people closing in six different states right now
doing deals right now. One just closed yesterday in Orlando,
where you made the connection, where I made the connection.
But I do a lot more more than most realters
do in order to do that. You normally see on Facebook.
How many times have you guys seen this on Facebook?
Because you're in the relter world where you see a

(23:08):
relter put out there? Who do I know in Orlando
that you know? Who do I know in Orlando that's
a real estate agent? Or who do I know in
Tucson that's a real estate agent. I'm like, really, that's
how you're going to take referrals and give them to
your customer and say hire this guy because somebody on
Facebook was the first person to make a Pope post. Yeah,

(23:29):
what I do is Keller Williams has a system. We
have about one hundred and sixty thousand agents in the system,
and you can go into it. It's called kW Connect
and I can type in the city on a map
and it pops up the agent activity for Keller Williams
in that whole area, and you can go in and
zero in just like on the MLS, and click on

(23:50):
each property. But more importantly, I can go in there
and say I only want somebody that specializes in buyers
not selling condos or town homes. Their production, do they
have a team and not a team? How much education
have they done? And I actually vet them and call
five to six agents in the air if they're available,

(24:11):
and then start interviewing them as if I were the customer,
and then I usually hope to get two or three
good ones, and then I placed them over to you
and I go, Mike, here are three great people. I've
done complete background checks on them. I've talked to them.
They responded to me in a timely manner. Their play professional,
their stats are good. If you were one of my relatives,

(24:31):
I'd say all three of these people, I feel comfortable
with you hiring you? Yeah, yeah, because I don't like it.
And then I would say, but you got to pick
the one you like the best now, because they're all good.
So now you got to like the person. And that
has worked out so well. And I just closed one
in Orlando for Michael and Colleen yesterday, July eleventh was

(24:56):
July eleventh, yesterday, I didn't get to call them, so
I feel bad, but they closed their property yesterday. There
were YouTube fans from Scotia, New York, and they wanted
to move to Florida.

Speaker 3 (25:05):
We talked to them. They bought new construction, that's.

Speaker 2 (25:07):
Right, and they were thinking they didn't know if they
had to get a loan or not, and they were
trying to figure all that out. So they bought their house.
We just had Janet and Sean closed in East Tennessee.
Like pitching Forward Tennessee. Through one of our agents. We
have Kathy Is selling her house in West Palm. That's
a shout out. We negotiated her town home. It was

(25:28):
on the market like sixty days. We got the exact
price that she wanted to get and it was no inspection,
no appraisal, cash. Yeah, so that was an easy decision
to make.

Speaker 3 (25:40):
You know, I'm I'm working on the Carlo's purchase in Colorado.

Speaker 2 (25:44):
So oh, you're you're helping me with that. I didn't
know that. That's awesome.

Speaker 3 (25:47):
But it's funny getting back to the commissions because.

Speaker 2 (25:51):
One of the deals died because of it.

Speaker 3 (25:53):
Well, but when you're a seller and then you're got
to turn around and be a buyer, and you want
to be shrewd on the commission negotiation on one end,
and you know if you're going to run into that
same scenario. On the other side, you could be you know, yeah, yeah.

Speaker 2 (26:05):
Exactly, it's so opposite. And with that one, I picked
up Brant ellwood is the guy that I picked, and
he's a top top agent out there right, really great agent.
Really liked him, knew he was the one didn't even
do the three thing. I'm like, Brant's the guy you
got to hire. He did great for Carla. But then
when the deal wasn't coming together, in one of their offers,

(26:29):
Carla's X who was involved in the deal, started to
started trying to negotiate the commissions to bridge the gap,
and Brant Wooden budge. He was like, no, this is
my commission. You signed a contract with me. You understood
the contract you signed and I'm not reducing my commission.
And that deal died, and now they're in the process.
I did they go into contract this week? Mike? They

(26:51):
made another offer, so yeah, but I don't know if
they want in a contract yet. But they're out there,
you know, swinging for the fences right now. And I
have people in Tucson right now. I haven't other person
in Scottsdale right now, Scottsdale, Arizona. So we have people
all over the country right now working with us in
our team. And let me tell you, I don't and
this drives sometimes the referring agent I refer to a

(27:13):
little crazy, but I don't just refer to them and
then forget about it. A lot of agents and this
is what you gotta know. What they do is they
go on Facebook, Hey, who do I know in Titusville,
Florida to do a thing, and then they get a
bunch of things. They call that agent, they get a
referral fee agreement with that agent, and then the agent

(27:33):
that referred you out to the new agent. They usually
never follow up or do anything. They really even don't
even talk to the other agent or you again. They're
just waiting for that other agent to do what they're
going to do. I don't do that. I follow up
every ten days or so. How are things going? I
call up the agent, how's the customer? Are you guys
getting along? Or you see? Nine to I and I

(27:54):
don't get involved in the negotiations. Obviously I don't have
a license to do that in their state. But I
can talk about customer service and making sure that everybody's
communicating well, yeah, and I think it's worth doing that
you know to me, I'm more than happy to do that.
It builds a really great relationship. Tom, who's moving to Tucson, Arizona.

(28:15):
I helped. He's the one that had the cat that
wouldn't die. And he kept saying, I'm not going to
sell my house and Steward till the cat dies. And
the cat took two and a half years to die,
so the property value increased by like thirty four percent
while he was waiting house to die.

Speaker 5 (28:30):
You weren't You weren't seen in the neighborhood at any time.

Speaker 2 (28:34):
Yeah, that's funny. Tom would like that so much. That
would be so funny.

Speaker 3 (28:38):
It's a lot of pressure to put on a cat,
wrote I know.

Speaker 2 (28:41):
I wrote a I did a little YouTube video saying
the guy made how a cat made Tom one hundred
thousand dollars more than he would have made because the
cat forever. So he caught me up. He goes, hey,
I'm moving to Tucson. Do you know can you help
me in Tucson? I go absolutely, And he said, but
do yourself a favor by a really old cat. First,

(29:03):
by a really old cat, and see if it passes
before you die. You might make one hundred thousand dollars
more So shout out to Tom. We're gonna be helping
him next week. Go find the perfect agent for him.
And that's the other thing. Tom isn't sure if he's
gonna move to Tucson. He's never lived in Arizona, so
it might be Tucson, it might be this other area
called Green Valley, which is to the south. He's not sure,

(29:23):
but he definitely doesn't want to be in Phoenix, so
we might have to place him with two agents. We
did that with the Murphy's up in Tennessee. They weren't
sure if they're going to be East or West Tennessee,
so we placed him with two agents so they could
check out the west and the east. Then they found
out what area they wanted to be. We had to
politely let the one agent go and then they stayed

(29:44):
with the other agent. So another shout out Kathy who
won under contract for our house in Somerset and West Palm.
She is under contract now to buy a home up
in Myrtle Beach, South Carolina, with our agent that we
placed her with, Carol Nice, So congratulations to them. We
put Cheshire three to zero three Cheshire or a three bedroom,

(30:05):
two bathpool home in Port Saint Lucie under contract. And
now Carla is buying a home in Denver with our agent,
Brandt Yep and then Mike is going to be doing
the loan on that in Denver. So thank you for
trusting us on all of that. We finally put one
of our problem properties under contract. I'm so excited. This
is a former law enforcement firefighter guy, So those are

(30:26):
some of my favorite people to work with. I wanted
to do a shout out to Brian. Brian's house was
on the market one year and nine months and he
was the lowest Madison Green Royal Palm Beach property for
like fourteen of the nineteen months, and we could not
sell that property.

Speaker 3 (30:43):
That was your listing the whole time.

Speaker 2 (30:44):
No. I had it for nine months though, so that
I have a lot of gray hair from that one.
And Brian needed a certain amount of money. The problem
he had was is that the third bedroom was at
some point converted into a den. There was no closet,
the walls are on an angle. It was very hard
for people to really, you know, conceive this as a

(31:05):
third bedroom. The house was in good condition, but we
got the perfect buyer for him. We got a single
guy coming in who doesn't care about that third bedroom
too much, and uh, we got them under contract. We've
already done the inspection, there's no appraisal. Now we're just
waiting to close. So thank you Brian for trusting us.
He's gonna be buying in Central Florida with us. So

(31:27):
when he's done with this, I'm gonna be driving up
to a Cala for two days and we're gonna go
find him a new home up there.

Speaker 3 (31:33):
At some point I thought that was Jimithy who dropped
in the uh yeah, because it was like he's a
single guy, and then the piano comes.

Speaker 2 (31:41):
Out, and then I wanted to give a shout out
to Troy and Caroline and Jerry. They had a house
on Singer Island. We just put it under contract to
actually last night, we just put it on contract last night.
It was a two to two condo, fully renovated with
a doc twenty five foot dot coms with the condo.

Speaker 3 (32:03):
Had for a while.

Speaker 2 (32:03):
Yeah, we've had that, yeah, for too long. So you
got that one under contract. I got all my I
got almost all my problem properties under contract. I still
got six more listenings.

Speaker 3 (32:13):
I got way more often.

Speaker 2 (32:14):
I got another five listenings coming because five people called
up when I was out of town, all former customers
saying I want to hire you, Jim to do stuff
for us. So really looking forward to that. Thank you
for everybody for trusting us. And if you want to
do anything anywhere in the country, we can be your resource.
It's free, okay, And you don't have an obligation. If

(32:35):
you give you the agents and you're not satisfied with
the agents, don't hire them. We're not asking, you're not
mandatory you haven't hired them. It's just say, hey, I'd
like to have your resources, Jim and find out what
I can do. You know what what can I do
out there? So we'd love to work with you on that.

Speaker 3 (32:50):
Eight eight eight nine seven to three seven eight two.

Speaker 2 (32:53):
Eight, Okay, it's perfect time to take the break. We're
gonna go ahead and take the break. On the flip side,
I want to talk a little bit about this statistics
that's changing. I think it could really affect the real
estate market over this summer. We're going to talk about
that because I haven't seen anything in the headlines about it.

Speaker 6 (33:09):
All right, that sounds pretty good. By the way, you
can also follow us on Facebook, uh Florida Talk real Estate.
It's a great well resource of information era and you
can get more information on on there as well, so
if you want also, we got Paul in the studio
here and Mike, two great experts as far as outside
of real estate, but they can help you with that.

Speaker 3 (33:30):
Eighty and what's our phone number here?

Speaker 2 (33:33):
Seven It's been a long time since.

Speaker 3 (33:37):
I've been giving that phone number having to call in
if you want to call in live.

Speaker 2 (33:42):
Eight seven seven ninety two seven six nine six nine.
I wish every time I say that, I think of
doctor Rich.

Speaker 5 (33:48):
Sure.

Speaker 2 (33:49):
I loved the way that he gave out the numbers
other than doctor Rich said six saritone below t voice. Yeah, yeah, exactly, Yeah,
I mean had doctor Rich.

Speaker 6 (34:00):
He had a great way of pacing his six nine six.
All right, we'll be right back after this short break.

Speaker 1 (34:21):
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 3 (34:31):
Hey, there's the number.

Speaker 2 (34:34):
Yeah, Hey, eight seven seven nine two seven six ninety
sixth nine. We are actually live. We're back. We've missed
two weeks. I apologize, you know, I don't like missing shows,
but stuff happens in which July twelfth, Saturday at nine
thirty nine, So give us a call if you have
any questions about anything legal or title. We got Paul
Krasker from the law office of PAULI Krasker here, give

(34:56):
us a call. We'd love to talk to you. And
we got Mike raw from the mortgage We're going to
be talking about mortgages in a little bit and the
down payment and the changes to the down payment assistance program,
so that we're out there, good talk a little bit
about that and just a little bit. Just want to
do a couple of shout outs to some people. Elizabeth,
thanks for coming in. You come in every Saturday, she says,

(35:16):
good morning, Mike, and have a great and every one
great topic. So thank you so much. Francis, thank you
for checking in like you do every Saturday. I hope
you weren't disappointed the last two weeks. And Linda, Linda
and Joe, I promise I'm going to be going down
to look at your house early later today, right after
the show, and call you one I'm coming back on
the drive back and Carl from Ireland. We help Carl

(35:40):
sell his house in the Lake Worth, Atlantana area. About
a year and a half ago he moved to Ireland.
He's an Italian guy living in Ireland. What was that movie?
What was that TV show with the Bruce Springstein guitarists,
the Bruce Springsteen guitarist who was also on.

Speaker 3 (36:00):
Yeah, give me.

Speaker 2 (36:04):
Stevie Van sand Little Stevie And then he had that
show where he was a mobster and he moved.

Speaker 3 (36:10):
To another country, Finland or something.

Speaker 2 (36:12):
I still think that's what Carl's doing. I still think Carl,
that's wow. I think that's why we moved out there.

Speaker 3 (36:20):
Organized crime, Yeah, protection and you're just he's got that
real Italian accent.

Speaker 2 (36:27):
He's out in Ireland now like you're in the wrong country, dude, No,
but he loves it out there. He bought a little
town home. I know he's been fixing it up for
a while, into this little hamlet. He took some pictures
of his shows, the street and everything. Hey send some
more photos, Car when you get a chance. You'd love
to see the photos. So we love to we'd love
to see the renovations as they're going through. That would

(36:49):
be really cool. Hey, uh, I wanted to talk to you.
There's so much stuff that's happened since we left two
weeks ago. There's been changes in the real estate market.
There's changes down payment assistance program. There's changes on how
you check your credit for creditworthiness for loans. Did you
hear about that about headlines there?

Speaker 3 (37:10):
Yeah, so the vantage score.

Speaker 2 (37:12):
So we go away for two weeks and all this
breaking news happens. So let's unbreak it. Okay. So the
first thing I wanted to talk to you about is
I guess since October. I don't know. I even did
this on the fly. It wasn't something I started to do.
You know, we heard so many people talking about, Oh,
the economy is going to crash, the real estate market
is going to crash. So what I started doing is

(37:33):
I would go live on the MLS and find out
how many residential properties were for sale, and then I
would see how many short sales and foreclosures there were
for sale out of that group.

Speaker 3 (37:45):
So you're you're looking at default rates as on mortgages
essentially as a factor.

Speaker 2 (37:52):
Like a percentage of all the homes, right, percentage of
all the homes that are out there for sale. That's
how I first started it. So when we started in October,
we were in the forties, right, there was like forty
three thousand to forty five thousand homes for sale, right,
and out of that a little under four hundred were
short sales and foreclosures. Right. It was like zero point

(38:14):
six percent of the market, and a normal foreclosure market
is one to three percent. So even if we had
doubled that the foreclosures and short sales that were a normal,
we were still like at the normal, just right, the
lower end of normal. And then if that doubled, then
we'd be in the middle of the normal. Right. But
what we noticed as we started doing that, I wasn't

(38:36):
expecting this is we saw the inventory going up. So
it started in the forties, and it got into the fifties,
and it got into the mid sixties, like sixty three
to sixty five thousand. Right before we went away, it
was in the sixties, right, sixty almost sixty five thousand,
three weeks ago. When I went and looked. When I
came back, my mouth dropped in eight hundred and seventy

(39:01):
eight homes for sale. That's about that's home. That's more
than a five percent drop. It's like a seven percent
drop of available inventory out there. So we've been seeing
the inventory grow and grow and grow, and now it's shrinking,
and it's shrinking fast. And you know how it's shrinking
not because people are buying these homes. It's expired with

(39:22):
drawn and canceled.

Speaker 3 (39:23):
Oh so all of these.

Speaker 2 (39:25):
People, like a whole bunch of people, have decided, like
in the last several weeks.

Speaker 3 (39:29):
I'm done, I'm not getting what i want.

Speaker 2 (39:31):
I'm not getting what i want.

Speaker 3 (39:33):
I'll sell another time, right.

Speaker 2 (39:34):
And I saw that happen in a market that I'm
looking at for one of my customers. It's a town
home market with the pool in Palm Beach Garden. It's
very unusual where you have town homes with the pool,
and those homes are normally selling if they're fixed up
between four twenty five and four seventy. And then all
of a sudden, six homes came on. Four homes came

(39:56):
on the market for under three ninety nine and under
they were and they were fixed up, right yeah, And
I was like, whoa, these are like really good deals.
They all got snapped up and then three homes that
are on the market for four thirty to four fifty
they pulled off. They just said we're out. So they
didn't like that. All the other homeowners came in too

(40:18):
low and their houses were very competitive. Yeah, so they
just pulled out.

Speaker 3 (40:23):
I mean, so if you have a small retraction in inventory,
like that's a month over month, but.

Speaker 2 (40:29):
Five percent five percent of two weeks, Mike, that's a
lot five percent if you take five thousand homes off
the market in two weeks.

Speaker 3 (40:37):
But you had kind of like inventory growing like more
than you normal as well. Right, you said it went
from forty thousand to fifty thousand to sixty thousand, So
you're still above fifty, you're still above forty.

Speaker 2 (40:50):
Yeah, we're not back to where we were. We're not
back to where we were.

Speaker 3 (40:54):
What was it?

Speaker 2 (40:55):
Uh?

Speaker 3 (40:55):
That's one where I would look at like a year
over year versus a month over month, just out of
like how what's inventory look like now compared to this
time last year.

Speaker 2 (41:03):
Well, like Palm Beach County, Palm Beach County, we're sitting
right about six six months inventory, which is a neutral market.
It's not a seller's market, not a buyerus market. But
as you mentioned several months ago, it feels like a
buyer's market, which it does, and it is.

Speaker 3 (41:19):
Because buyers are able to negotiate things now that you're
not able to do when inventory is I.

Speaker 2 (41:25):
Do not understand why people aren't bringing my phone off
the hook saying I want to buy a property right now.
This is a great time to buy real estate right now,
Right now I'm talking about. I don't care that the
interest rates, you know, in the high sixes. We've been
in the high sixes now for eighteen months, right We've
been in high sixes pretty much, so the interest rates

(41:46):
have remained stable. What has changed is seller motivation and
also invatory so all of those things are in your
favor right now. I remember we had a customer recently
that bought a new construction home. They had it listed
at three sixty five. They got it for three twenty five.
They got a five percent around five percent interest rate, right,

(42:10):
they got to reduce interest rate compared to the market,
and fifteen thousand l pay they're closing costs, so they
got more than a ten percent drop on the list price,
got the lower interest rate and money to help close
for the down payment, and closing costs. You couldn't do
that eighteen months ago. Right, the developers would laugh you
out of the office and they have fun with that. Right,

(42:31):
go find somebody to do it, and regular people. There
are sellers out there that are very motivated, and if
they're motivated, they're going to sell their price. They're going
to sell their house at a good price and give
you good terms so that they can move their property
over the other people's property. So I don't understand why
the phone just isn't ringing off the hook because sellers

(42:51):
are helping buyers get the money needed for the down
payment and closing costs even if you can't get the
down payment assistance.

Speaker 3 (42:59):
Yeah, I get the message. There is one that we
talk about a lot, which isn't like, hey, if you're
a real estate investor, now's a great time. We're not
talking about that type of buyer. This is people like
You're you're a buyer for reasons outside of whether it's
a good time to buy or not. You're you know
it makes sense for your family, your economic situation is
relatively stable, you know your income, you know your debts,
you know your budget. If that's you and you're kind

(43:21):
of waiting for something, whether that you know, you know,
maybe your key factors, I got to wait for interest
rates to come down or something like that. We would
encourage you, if you are a buyer, get your ducks
in a row, because it could be now that you're
getting more of what you need to get you into
the you know, the monthly payment or the cash position

(43:42):
that you need to land in, you may have more
opportunity now to do that even if interest rates drop,
you know, in the next year, or you know, prices
come down. You're essentially looking for the stars to align.
But you got to know what all those factors are.
And the only way to do that properly is to
talk to talk does now, see what's out there, know
what you qualify for, know what your budget is, and

(44:03):
then just see if it's there. And then if you
need to sit back for five months or six months
or a year, whatever it is, that's fine.

Speaker 2 (44:09):
Yeah, as long as you have the planet, you know
your numbers, you're ready to pull the trigger when it's ready. Paul,
you know you're so heavily involved in real estate and
to all different commercial all different kinds of stuff. Are
you seeing anything that's changed over the last six months
or so, have you seen big changes in your stuff
or not really right now.

Speaker 5 (44:31):
Well, volume's clearly down. I think there are people who
are looking for trophy properties at the high end. You know,
you just read about that deal in the Wall Street.

Speaker 2 (44:42):
Journal, the Manala Pan deal, no quillion one Palm Beach.
Oh I missed that one, I think, Yeah, I'm sorry.

Speaker 5 (44:50):
Vacant land.

Speaker 2 (44:51):
Oh yeah.

Speaker 5 (44:52):
On the ocean. People trying to buy up adjoining properties
as well. So there are people out there looking for assemblages,
looking for a big property, a meaningful asset. So I
think buyers may be feeling like you're getting close to

(45:15):
a trough, and those who have the ability are willing
to pull the trigger. You know, you listen to all
the great investors in the world and and they'll all
be the ones to tell you when nobody else is buying,
that's when you buy. Yeah, exactly, nobody's selling, that's when
you sell.

Speaker 3 (45:33):
I think that's I mean, that's a data point that
goes towards the narrative, which is like sellers are now
giving more one way or the other. So whether it's
the price, like these people looking at these properties, these
opportunities might be like the sellers might be now willing
to let it go for the lowest number they have
in recent memory, right that they would consider, you know.

Speaker 5 (45:55):
And the ones who have to sell have to sell to.

Speaker 3 (46:00):
Me.

Speaker 5 (46:01):
I still think we're in that middle area where buyers
are confident that it's a buyer's market and treating it
as such, and sellers still think they have maybe not
platinum but gold, and they're hesitant to sell. And I
think that's why you see a lot of people this
summer who said, you know what, I'm taking it off

(46:22):
the market. I'll come back for next season and hopefully
the people who had to sell have all sold and
the prices will go back up. I don't think that's
where we are in the market right now. I think
sellers need to be a little bit more realistic on
what they're trying to do. But your point about looking

(46:46):
year to date, month to month, I don't think that's
relevant here in South Florida in the summertime. I think
it's year to year is the better evaluation to determine
what's going on. I know a lot of clients who
just take their properties off in the summertime. Yeah, yep,
they want a new list price come October and November,

(47:09):
and they'll figure it out when October and November comes
based on the comps that happened over the last year.

Speaker 2 (47:16):
And you know, a lot of that is because the sellers,
a lot of those sellers they don't have to sell right,
so they have the option of waiting. And that's okay,
there's nothing wrong with that. But this, I don't really
see that. I don't see right now. I don't see
how we're going to get these low. I was just

(47:39):
talking to somebody who was trying to buy a property.
He's a developer from Connecticut, and we were looking at
a property in board Saint Lucy recently, and he just
really thinks that we're going to get under five percent
interest rates, like in the next six months. And he
just believes that that's going to happen. And I'm like,
under five. Under five thinks we're going to be in

(48:00):
the force. And I said, you know, until we had
the fours because of COVID, right and below four obviously,
I go when Eisenhower made the year the thirty year
loan for the GI bill, when everybody came back from
World War Two, the interest rates were in the force,
in the nineteen fifties, right, And why do you think

(48:24):
that that's a normal interest rate to be in today,
you know, in modern history, And there really isn't any
to me, there isn't really any historical basis for assuming
that four percent interest rate on mortgages is what people
should expect to have. Maybe I'm crazy, but actually don't
get it.

Speaker 3 (48:44):
We had a lot of people out there in the
threes and perhaps even in the twos right now too,
so they're like looking at for like you're crazy.

Speaker 5 (48:52):
Yeah, crazy, I'm not wasting money.

Speaker 2 (48:54):
Right, but just regular buyers, but regular buyers to think
we're going to get into the fours and it's going
to happen in the next six months or so, like
by the end of the year, we'll be in the force.
Even no national economists is saying that. And I don't
see how that's going to happen unless we have another
pandemic or something bad like that.

Speaker 1 (49:13):
Yeah.

Speaker 5 (49:14):
Look, you also have a political climate where we're doing
things we've never done before. We've never had a lack
of independence in our Department of Justice. We've never had
a Treasury secretary who says he's starting to interview for

(49:37):
new FED chairs. You know, that's always supposed to be
an independent position, and you know the current president wants
those interest rates down and thinks that that's an important
piece of his economic policy, and he.

Speaker 3 (49:56):
Will be appointing or nominating.

Speaker 5 (49:58):
I guess fifteen months is it's in May?

Speaker 3 (50:01):
Is it it May?

Speaker 5 (50:03):
I don't know.

Speaker 2 (50:04):
I thought, oh no, it's May of next year.

Speaker 5 (50:06):
Yeah, I mean I thought it was fifteen months.

Speaker 2 (50:08):
Oh yeah, next year. It's past May. I forgot where
past May.

Speaker 3 (50:11):
So some people might be banking on that, right, because
once you get a new FED chair who's maybe more aligned,
right puppet, Yeah, you'll see something. Maybe you'll see something.
Now I've heard a counter argument to that, which is
it's more than just the chair, right, Like there's a

(50:33):
whole apparatus.

Speaker 2 (50:35):
Thirteen members or fifteen. Yeah, forgot right.

Speaker 5 (50:38):
But if the FED starts lacking independence, sure and basically
bows to the current administration, you're these people want to
stay on there, and as their times come up, they

(51:00):
know they're going to get bounced. And if you're if
everybody's acting in their own self interest, that's sometimes what
comes of it.

Speaker 3 (51:09):
And even if you kind of like just you know,
war gained at or whatever. Uh, if rates comes down,
and let's say that there isn't other turmoil or economic uncertainty,
rates come down, what's going to happen to inventory? Right?
So rates come down, Buyers who have been waiting for
that to happen come out. Buyers come out and force

(51:32):
inventory tightens up. What happens to housing prices?

Speaker 5 (51:35):
Right?

Speaker 3 (51:36):
They like, if you just take that like everything is rosy,
mortgage rates come down, what happens to housing haves? And
so that's why I'm saying, like, you can't. You can't
sit back and just wait for that moment. You need
to have your ducks in a row. And ultimately I would.
I don't know if this applies for some people just

(51:57):
looking for a good deal, right. Some people are looking
I have I'm only going to pay this amount of
interest over the life of my loan. Most people are
looking to get into a situation that is financially viable
and affordable for them, right, So they have a budget,
they want they have features that they need in the home,
you know, boxes to check on that side, bedrooms, bathrooms,

(52:17):
pool garage, neighborhood, school zone, all of those features. They
also have boxes to check on the financial side, which
is mostly how much cash am I going to have
to part with? And what's my payment going to be?
Is it going to be affordable? And so you need
to be in a position where you can analyze that
information and then wait for the target to present itself. Right,

(52:41):
So you kind of you know, you're looking, you got
your eyes down range, and you're just waiting for the
target to come across. And that could be as simple
as I know I want to buy in this neighborhood.
I know I want this these many bedrooms, and in
order for me to get the number, I need any
prices to be here, or interest rates to be here,
the combination of price and interest rates to be here, right,
And if you could set yourself up to analyze that

(53:02):
on the fly, then you're not waiting for some big moment.
You're simply waiting for the house to present itself and
to the stars to line financially. And so that's what
I encourage people to do.

Speaker 2 (53:13):
And the other thing is is that I mean, this
just comes sense, but people don't get it. By the
time that the interest rates drop, Now you're competing with
everybody and you're elbowing everybody out. I just wanted to
looked at two properties for Chuck and Kathy just recently.
They're going to be selling a home and buying a home.
When we just scanned two properties really quickly, yep, two

(53:34):
days ago, just to take a little bit and see
what's out there for inventory. When they sell. I have
one agent that's just blowing up my phone begging us
to turn in an offer. Right, you're not going to
get that. And when the interest rates start dropping, what
you're going to be getting is their phone, right, And

(53:56):
not only that, you're gonna be like, just just give
them what they want. Just give the seller what they
want if they want the house, and I could afford it,
because that's what it's going to take to get the deal.
Now you can negotiate. I'd much rather negotiate the best
deal possible right now. Pay the six point eight percent
interest rate, right, and then if the interest rates do
do to go down to five and a half percent

(54:17):
or under five and a half percent, and then everybody's
out there buying properties, my value is going to increase
the home I own because all the other properties values
are going to go up. And then I just go
and I pay a few thousand dollars to refine right,
and now I got the super low interest rate, but
I also paid a lower price and all those other
chumps out there. And I'm saying chumps in a good way.

(54:40):
I'm not trying to be mean to people, but like
the people I know, but it sounds like I guess
I am paying. But you know, the bottom line is
those people, they're out smarter themselves. And I think it's
much better to buy now and then if the interest
rates do change, take the benefit by refine right. Do
you think that's a bad way to look at it

(55:02):
at that point, No.

Speaker 5 (55:03):
I think that's a great way. I think you have
to be comfortable if the interest rates never go down
exactly that you're okay at six point eight percent. And
I think that's where some people are getting stuck right now.
And you forget, Florida's a different market too, because this
is the year that we've been promised that insurance rates
are coming down.

Speaker 2 (55:24):
Ross is saying they actually are, which is nice. Now
it isn't dramatic yet, but Ross has actually seen that
we've kind of plateaued and were slowly I mean it's
a very mild drop, but like he just did one
where what they saved like three hundred dollars on the
policy for the year.

Speaker 3 (55:43):
It's a dollar a day, I think. But still people
are seeing some you know, it's not huge changes, but
some savings. And insurance both house and auto. I think
auto rates are also.

Speaker 2 (55:53):
Are also dropping slightly.

Speaker 5 (55:55):
But this was about the.

Speaker 4 (55:56):
Projection, right, It's been a little over two years, and
we expected. I figured it would take about three years
to get all those fraud cases through the court system,
and you know, it would start the level out and
more insurance companies would come back into the state and
into the market and bring the prices.

Speaker 2 (56:13):
And there was an article I was going to ask
Ross about this today if he had come in the
reinsurance Florida got like two billion dollars back on reinsurance
because we're not getting as many claims as we were
getting in everything. So I think that's a good sign too,
But I didn't know, and I wanted to ask Ross,

(56:35):
does that mean that's a good thing that they didn't
use the reinsurance money. I'm assuming that's a good thing.
So we are seeing it slow down. The one thing
that always bothers me about it is part of the
reason why it slowed down is we took rights away
from homeowners against the insurance companies, right, And I was
one of the people that I think was victimized by

(56:55):
insurance companies that wouldn't stand up to real problems out
of house, else it wouldn't do the repairs I wanted.
I had an eighteen month fight and how to go
to court and mediation three times.

Speaker 3 (57:07):
I mean you could, I think the whole assignment the benefits,
But for people who really do need help in that front,
you can definitely still hire an attorney, you know, and
an insurance attorney who can really analyze the policies, determine
what type of you know, action the insurance company should

(57:29):
be taking and if they're not, then you got a case.
So now those attorneys are compensated changed, you know as
far as like who has to pay and things like that,
But you could still do that. I mean, those avenues
still exist for people.

Speaker 2 (57:41):
So if you're thinking of buying your seller right now,
if you're a buyer, this really is an excellent time
to buy. And if you're a first time home buyer,
there are down payment assistance programs which we're going to
talk about. They're not as good as they were last year. Yeah,
but there's still some really great programs out there for you.
And if you're selling, you don't think that it's impossible

(58:05):
to sell your house in today's market.

Speaker 5 (58:06):
It is not.

Speaker 2 (58:07):
You can sell the house right. You can sell your house,
and you can sell it in a timely manner.

Speaker 3 (58:11):
You can also stand out from the competition in your
in your neighborhood. Like there's there's little things that you
can do to make a big difference.

Speaker 2 (58:18):
And yes, like offering incentives or special financing if you
have it, but just pricing it right, that's the main thing.
As long as you price it right and the buyer
see value in the home compared to the other things
that they're looking at, your house will get sold. Right.
Kathy is a great example. We had her house at
a little higher price than I wanted to put it at. Right.

(58:41):
It was a townhome in West pomp.

Speaker 3 (58:43):
And in a competitive price point. I know that because
we happened to be I.

Speaker 2 (58:47):
Could say now we were at three ten, right, but
I really wanted to be a two ninety five for
the list price. But we put it at three ten.
We were getting showings at three ten. In fact, Mike
you had somebody come over to take a look at
the house.

Speaker 3 (59:00):
One of our young family members.

Speaker 2 (59:01):
Yeah, by the first, which is so awesome.

Speaker 5 (59:03):
Yeah.

Speaker 2 (59:04):
So we weren't getting we weren't getting offers though. We
were getting looks, but not offers. So I said, look,
we really need to drop the price. Kathy was worried
because she's a senior. This is she's using this money
to buy her last home. That's the plan, right, yep,
So every dime matter. So we figured out what her

(59:25):
line in the sand was and I said, that's the
number you got to put the house on the market
for him. Most sellers are saying, I don't want to
do that because if we put it at the price
I got to have, everybody's going to come in lower.
And I go, yeah, in today's market, they're going to
come in lower, but we're going to pull them up.
And the way you pull them up is to be
very direct with them. If you give me permission, this

(59:46):
is what I would say. This is what I'm talking
to the sellers. Hey, Mike, I really appreciate that you
gave me a two seventy five on a two ninety
two ninety offer on two ninety list price. I know
it's not a low ball price or anything. It's reasonable
based on the list price. I'm going to present it
to the seller, but I got to tell you right now,
if you notice, we just reduced the price to the

(01:00:06):
number we're at now, and that's because that's her gotta
have a price. So I'm gonna go ahead and turn
in the offer. But if we come back at full
I don't want you to think that the seller's mad
at you or being huffy or upset. It's they need
what they need or they can't sell the house to
do what they need on the back end, right, and
that works.

Speaker 3 (01:00:27):
What's another response that a listing agent might give there,
something like, uh, that's a joke. I'm not even gonna
present it.

Speaker 2 (01:00:35):
Well. My favorite line is when the laffer comes in
really really low. I say, hey, Paul, thank you so
much for that offer. Can I just ask you one question?
And I'm saying this with a smile on my face.
I say that it's part of the script, and then
Paul goes, yeah, go ahead, and I go, what exactly
part of the house are you're trying to buy for
that number? That's what they say, and then I laugh.

(01:00:55):
Right then I laugh, so they know I'm joking. And
then a lot of times that script works out great
because a lot of times the agent will like pound
their hand on the desk out I told the buyer
this offer would never be accepted. Then now I know
the agent's on my side.

Speaker 3 (01:01:09):
So but you always would give a counter, even if
it's a full price counter.

Speaker 2 (01:01:14):
What do you mean by that?

Speaker 3 (01:01:15):
Like you get your your low ball offer or something
that's just too low doesn't work, then I wouldn't encounter
and say, hey.

Speaker 2 (01:01:21):
I'm going to call back, right, I'm going to present it.
Then I'm going to call back and go It's what
I expected. We crunch the numbers in order for her
to do what she needs to do in the back end.
She got to get to ninety, right, So if you
can give us two ninety, we'd love to close with you.
Your terms are right, we'd love to close, but it
has to be at that number or higher. If you
want to offer more than two ninety, that's great too.

Speaker 3 (01:01:42):
So why do you have it listening? You're at your
minimum number?

Speaker 2 (01:01:46):
But it works because you know what happens is the
ones that really want the home, they buy it. And
that's exactly what happened with Kathy. We dropped it from
three ten to two ninety. All of a sudden, we
got way more buyers than Weaver and getting before that.
And then one of them they really really wanted the house,
and they ended up giving us the even though they

(01:02:06):
came in ten or fifteen thousand below. We pulled them
up to the full list and no inspection, no appraisal cash,
so it was a done deal right there. All they
had to do is get the HA approval and they
were done right and title cleared and we got the
deal and it's done and now they're ready to close.

(01:02:27):
The buyers are ready to close. We just had to
get Kathy her house, which we did this week.

Speaker 3 (01:02:32):
Awesome.

Speaker 2 (01:02:32):
So we already have. We already changed the sale date
because we're scaling the cell date back closer, shorter time
period because she doesn't need all that time to close.
But that technique works a lot. Just to put the
price out there what you wanted. You're lying in the sand.
But you can't be huffy about it. You can't be well,
that's the price I wanted, too bad. You just explained

(01:02:53):
to people, Hey, look this is what we need to
do on the back end. If we can't do that,
we can't sell the house.

Speaker 3 (01:02:59):
And as a matter of on the buy side, you
can use a similar strategy, which is like, hey, here's
our offer and we need we need some help on prist.
So this is our offer. We needed, you know, a
one percent or two percent credit or five thousand or
whatever it is. If you can't do that, we got
to move on because that's what we got to have.
And when you're in negotiating position and you basically know
where your line is and you're perfectly capable of walking

(01:03:20):
away if you don't get what you want, that's, you know,
that's a great position to be in because you basically,
this is what I gotta have to take anything lest.

Speaker 2 (01:03:27):
So in this market, price point, for the seller's perspective,
price point is almost the most important thing to be competitive,
even if your house is an imperfect condition. A lot
of people they start going, oh, I got to put
in the new kitchen, in the new form, I gotta
paint the house, I gotta do this, I gotta do that. Yeah,
not necessarily. You just have to price it based on

(01:03:49):
those things. And there are other people, believe me, there
are other people whose houses are in poorer condition than
your house and it's on the market at the same
price as you. So we just understand where we are
in the market and price right. You'll get your.

Speaker 3 (01:04:03):
House outshine the competitors one way or the other.

Speaker 2 (01:04:06):
But if you don't, you're in a lot of pain. Yeah,
and that's why I had houses that were on the
market for nine months, you know, and I don't like that.
And it's not good for the sealery or it's very
it's very emotionally distressing for them.

Speaker 3 (01:04:22):
Yeah, there's nobody who wants if you're on the market.
You don't want it to sit like, there's no benefit
for anybody if it's just sitting on the market for
a long time, So you have to price it aggressively.
I want to go back to one thing Paul said
about the refinance, which is like the if the thing
is like just get into it now. And there's the
old realist.

Speaker 2 (01:04:40):
Or the mortgage.

Speaker 3 (01:04:42):
Marry the home date, the rate which is you know,
it's a cliche, but it's kind of it sums it
up right, which is you will have the ability to
take advantage potentially. Sorry, sorry about that date, the rate date,
the rate Jimmy right, Jim Jim and Paul music cues
that work. But you know, I think the pressure on people,

(01:05:07):
and maybe this is the pressure in any market, is
getting into that payment that's affordable. And one thing is
like what do you qualify for? That's my world, Like
what's the max monthly payment that you qualify for a
lot of people don't know that, but when you're qualifying
for a mortgage, you qualify for a payment. So I'll
have my limit based on the loan program, the factors, whatever.
You should have your own limit, which is your budget.

(01:05:28):
And I think that's where buyers are still feeling the pressure,
which is how do they get a home that they
want to live in at a payment that is comfortable.
And it's almost always having to give some ground somewhere, right,
So either give ground on the type of home you want,
or give ground on the payment and kind of like
tighten up elsewhere in your budget and get this. And

(01:05:49):
you should be prepared to pay that that you're not
going to be able potentially to refinance in the future, right,
because if we let's say rates go down because of
the thing we're talking everything's rosy and economy rates go down,
that's going to be perfect. Right, rates are going to
go down, how's the price they're going to go up?
You're going to get equity position that maybe makes you
make it so you can get into a loan that

(01:06:10):
doesn't have mortgage insurance, you know, things like that. It's
also possible that rates are going down because of economic instability,
and so we have some problems and housing prices don't
go up in value, don't even hold. Maybe they come down.
And even though rates come down, it might be difficult
for you to refinance because your equity position has decreased,
right compared to when you bought it, and so you

(01:06:32):
do need to get into a payment that is affordable
for you now, affordable for you when the property taxes
adjust next year, right, And it just continue to be
comfortable in that situation. And if the refinance market happens
and if you can take advantage of it, absolutely.

Speaker 2 (01:06:51):
You really have to. You really have to know your numbers.
So I was looking for a customer yesterday, Mike, and
the current tax bill for that person is about fifteen
hundred a year. So I went into pom Beach County
Tax Calculator on the pomp Beach County appraiser's website, Dorothy Jackson,
and you type in the address to the property you

(01:07:11):
want to buy, and then you put in the price
that you're going to pay, and then you say if
you're going to homestead it or not, and whether you're not,
you have portability, and in this case it was yes,
homestead no portability. It went from fifteen seventy four fifty
five hundred and thirty four dollars a year to six thousand,
nine hundred and four a year, so that came out

(01:07:34):
to like something like two hundred and seventy five dollars
a month on your mortgage payment.

Speaker 3 (01:07:38):
That it's going to go up just because of that.

Speaker 2 (01:07:39):
Just because of that, and you won't know it until
like eight or nine months into the loan. Right that's
when the bank kind of wakes up and goes, hey,
wait a second, you're short.

Speaker 3 (01:07:48):
Well, once the bill comes out in November, and whether
or not that's going to you're going to continue to
have one more low bill. So it's either going to
be the November of this year, depending on there's some
factors you should look at, or it's going to be
November of next year. But your escros just think about it,
forget it. Forget whether you're doing escrows or not. Let's
just say you planned for a fifteen hundred dollars bill

(01:08:09):
and then you get a six thousand dollars bill. You
know you're going to have to figure out how to
pay that right, stretch it out over time, or make
the lump sum. And you need to save for next
year's sixty five hundred dollars bill, right, So you kind
of have two adjustments you need to think about. So
that's what happens with the escrows. And yeah, so once
the bills come out and you have the bill that
has adjusted to your situation, your mortgage payment if you're escrowing,

(01:08:34):
is going to adjust for those two factors. You had
a shortfall and you need to be saving more for
next year's bill.

Speaker 2 (01:08:39):
Mike one of our customers, Mike D one of our
customers that you're working with right now. He's buying a
home at a very low price point, so the taxes
are extremely low because it was homesteaded before. And I
had to explain to him that you're going to be
approved on that current tax bill, but your tax bill

(01:09:01):
is going to go up because he's on a very
tight budget and I explained everything to him and explain
what's going to happen in the future, what his real tax,
what is real more tame it will be after the adjustment.
And Paul, do you do you ever get calls from
buyers who feel like they were or homeowners that feel
like they were sold. Yeah, like misled or not told

(01:09:25):
that the tax bill can change and they want to
like sue somebody over it or complain about it to somebody.
And do they have a legal right to do that,
because I feel like they should be told the stuff
that Mike and I tell people all the time.

Speaker 5 (01:09:39):
Yeah, I don't know what mortgage company is trying to
get people to pay taxes based on the existing tax amount.
You really need to go to the what if calculator
on the county website determine what your amount is. I mean,
I think the mortgage company wants to do that because

(01:10:00):
they want to know that you have the ability to.

Speaker 2 (01:10:02):
How does it work, Mike, though, I don't think it
works that way.

Speaker 3 (01:10:05):
Yeah, we don't do that, right, We don't do that.
So you're qualified, right, so when you qualify for more aage,
you qualify for a monthly payment. We call it the
housing obligation. It's PI TI plus HOA, so principal interest,
property taxes, homeowners insurance, and any HA or condoduce right
that combined is the payment that you have to qualify for.
We have debt to income, you know whatever. We use

(01:10:28):
the current property tax bill in most circumstances, even if
we know, like I can, I can see it in
a second like that bill is a little bit nor.
It's lower than in normal and it's because it's been
homesteaded for a number of years and whatever. But unless
there's something obviously super low, something like a veteran with

(01:10:48):
one hundred percent exemption right where they're only paying non
advalorum taxes, or you know what, some other reason why
it's not you know, obviously new construction would be a
good one, right where the tacks that are based on
a vacant lot versus something with a homeown. So yeah,
we do qualify them with the current tax bill, which

(01:11:11):
is a little bit crazy because we're assessing their ability
to pay, and we're using a number in the payment
that's potentially four times lower than it should be.

Speaker 5 (01:11:23):
It can be tremendously fiscally irresponsible to do it that way.

Speaker 2 (01:11:29):
I agree and Jim and I all the time.

Speaker 3 (01:11:32):
I have a document that I've written up that explains
what to expected what can happen with portability. I also
would take it a step beyond the tax estimator, because
the tax estimator is usually on the conservative side because
they start with a purchase price is kind of like

(01:11:54):
the their baseline number. What I would do is I
would look at the homes current tax not taxable, the
current market value on the home, and apply some sort
of reasonable appreciation number, maybe based on last year to
this year. So it could be holding flat, it could

(01:12:15):
be five percent, could be ten percent, whatever number you think,
And then do my calculations based on that current milite
rates and what I think the market value could look
like when it reassesses next year. Yeah, and the reason
assuming exemptions go away and all of that.

Speaker 2 (01:12:28):
Stuff, and the reason why I asked Paul that question.
I get calls like that once in a while, Right, Hey,
my mortgage payment just went up nine hundred dollars a
month and I don't know what's going on.

Speaker 3 (01:12:38):
I get calls every December and January about Mike, what
happened with my payment? And I have the conversation a lot,
and I explained why it went up, and I also
remind them, hey, we talked about this, like especially you.
I remember we talked about this because I saw your
bill was only fifteen hundred. That was great. It helped
you get your foot in the door, helped you qualify
for payment. As a matter of fact, you were able

(01:12:59):
to take advantage of that low tax bill because you
bought early in the year. It was homestead of on
January first. You're you're still going to have one more
low bill, but you need to be planning from a
budget perspective. Your payment's going to go up quite substantially,
maybe you know, five grand a year just on the taxes.

Speaker 2 (01:13:15):
Let let's switch gears here a little bit of talk
about some government programs, because you know, we always try
to use programs to help people. So my first question
is about student loan pall. There's a lot of changes
going on in the student loan stuff, the student loan world,
and one of the things I'm seeing in the news
is they're going to start what do you call that

(01:13:36):
encumbering the what do you take? What do you call it?

Speaker 5 (01:13:38):
When you garnish garnish the salaries?

Speaker 2 (01:13:41):
Thank you? I was having a hard time guardness people's
salaries where they don't even have a choice about paying
back to the student loan. It's just coming out of
their paycheck through their employer automatically.

Speaker 3 (01:13:51):
Only for people who are in default on them, right, Like,
so they're not paying, they're supposed to pay, and they're
not paying.

Speaker 2 (01:13:58):
Well, but that it's true. But that's a lot of
people right because they were given the ability not to
pay for a while.

Speaker 5 (01:14:05):
Well, the forbearance time period is over, right, so everybody's
supposed to be paying now and those who haven't started paying.
The government wants to send a clear message we told
you to pay, you didn't pay. There are going to
be repercussions, and that's going to include us contacting your
employer and letting them know that they need to send

(01:14:28):
five percent or ten percent every month of the paycheck.

Speaker 2 (01:14:34):
And so my question is is can you still use
the programs we've always sent over to you to help
people still or are those programs that's the part I
don't get now.

Speaker 5 (01:14:47):
Yeah, so we can still ask for an immediate forbearance,
get you ninety days, and within ninety days, get you
into a program. If you're into a program, and you
stop paying, then until you get current, they're going to
keep keep garnishing your wages.

Speaker 2 (01:15:05):
But what happens if somebody was in a program where
the ability to pay the one that we use is
based on your ability to pay based on your income
and everything, and there's a formula income based repay thank
you income base. So let's say they're in a different
type of program, but that program still out there and

(01:15:26):
that program can help them. Can they switch programs? Yes,
so they can. So it would be really smart that
if anybody had any kind of student loan issues to
give you a call to find out what kind of
program they're in and if there's any way that you
can make the make it better for them. Or is
that not really a good call to make right now?

Speaker 5 (01:15:45):
Well, first of all, the consultation is free, so there's
no reason not to make a call. If we can
provide savings for you, then we'll talk to you about
the expense of doing it and the client will have
a choice to move forward or not. But the call
is free. There's no reason not to have a call.

Speaker 2 (01:16:05):
You got to give us a call. I don't know
how little we've had on student loan calls. Even though
we talk about it all the kind it just seemed
like it just went away. Like around COVID time, it
just went away and nobody was crying on student loan
and I think it was the COVID forbearance where you
were able not to pay, but you've got to pick
up the phone and give us a call if you're

(01:16:26):
if you've got student loan debt, why not try to
find out what program, what the best program is out
there for you? And of course Paul has mentioned this
many many times. A lot of times the lender you're
working with will give you the same number as some
of these government programs, but they won't give you the
forgiveness that these programs offer.

Speaker 3 (01:16:49):
Over on all those programs basically the same as they were.
You're still on the twenty year forgiveness plan or maybe
the ten year if you're a service. Yeah.

Speaker 5 (01:17:01):
Yeah, the programs are still out there. What's shocking to
me is that so many people miss the boat during
COVID where there was an automatic forbearance.

Speaker 3 (01:17:14):
But you still got the time.

Speaker 5 (01:17:16):
But if you had come to us at the beginning
of COVID and got a zero payment plan for two years,
all that went into your forgiveness bucket, and there was
no forgiveness bucket for the last two years. So basically
people are starting out again with interest having accrued on

(01:17:39):
those loans. And twenty years starts now, not two years ago,
so you would have been two years closer to being
done with your student loans if you had just gotten
into the right programs at the start of it. And
it's still available today. And I you know, I've got
a lot of friends whose kids are graduating college and

(01:18:02):
there are a lot of fields that there are just
no job opportunities right now, and so you have a
bunch of these kids who are living on their parents.

Speaker 3 (01:18:12):
Their outcomes are still low low enough too, and they
would qualify for some of these income based opportunities, right
because the worst thing you could do, and this has
always been the case, but now that there's no kind
of like inherent built in forbearance options where you can
just like, oh, it's not going to hurt me. Now
it will hurt you if you don't pay attention to
it and you're supposed to be making payments. That's if

(01:18:36):
you're trying to buy a house, like that's one of
the worst things you can do is to have late
payments on your credit report because late payments, especially recent lates,
I don't care if it's a student loan or credit
card or whatever, that's going to tank your score, and
tanking your score is going to decrease your opportunities to
get a loan at all, and perhaps you know it's
going to affect your interest rate, your mortgage insurance and
so all. Basically, I think I'm hearing all the student

(01:18:58):
loans are repayment unless you're an active student, right right.
Maybe there's some other exemptions, and so if you do nothing,
that payment is going to be, you know, an amortized
payment with something or whatever the interest rates are, and
you could be paying less than that, meeting all of

(01:19:20):
the obligations with paying less than that standard payment, and
ideally getting yourself into a program that does have forgiveness
at the end. And it's like, well, why wouldn't you know,
if you're going to be monitoring it, which I'd encourage
you to do, why wouldn't you at least have a
conversation about it and say, hey, wait, is there something
that's helpful for me? And if you're a home buyer

(01:19:44):
having that lower payment, actually reporting to the credit bureaus
and actually have documentation like here, here's my actually payment
is going to benefit you because whether you're you have
you know, the big payment or zero still reporting or
no payment. We got to do some calculations on our end,
and sometimes it's hurtful. Sometimes it'll be one percent, one
percent of your loan bounce. Yeah, you know, if you've

(01:20:05):
got one hundred thousand dollars student loans a month, only
a thousand, one thousand dollars a month on the.

Speaker 5 (01:20:12):
Payments takes you right out of the mortgage qualification.

Speaker 3 (01:20:16):
Absolutely. Yeah, it's basically a thousand less right of purchasing
power direct towards your home, your qualifying payment. You have
to take out that thousand. So it could be happened
really too. It could be five hundred bucks. But I
guess the bottom line is don't We're back to I
don't care if you're buying, doing a home, if you're
doing real estate. If you know somebody with student loans,
you got to get them to talk to somebody about

(01:20:37):
it and see if there's just at least some benefit,
some something, some way to help.

Speaker 2 (01:20:41):
And it's your free resource that we've had for over
ten years. Here on the show. So it isn't like
we just started this or anything. We've been doing it
a long time and and there's no there's no pressure.
You call up Paul's group. Paul's group goes through all
the machinations to figure out calculate what would happen if
you wanted to go forward, and then it's up to

(01:21:01):
you to go forward or not. Right, it's no big deal.
They're not going to sit there and harangue you over
the phone over and over again. Hey, do you want
to sign up? Do you want to sign up? It's
really an easy way to find out what your options
are and to get the results that you need. And
even if the answer is no, at least you know
you explored all your options. Yeah, And it's rarely no.

Speaker 3 (01:21:23):
And I think one other thing that hasn't changed much
with student loans. It's not harder to get student loans,
is it. They haven't made that process anymore difficult, right,
so you're still able to Like, you get people with
college age kids and all of a sudden they're looking
at this and it's like these, college is expensive, which
it is. How do you pay for it?

Speaker 2 (01:21:44):
Yeah?

Speaker 3 (01:21:44):
How do you pay for Well, you can get loans.
You can still get them.

Speaker 2 (01:21:48):
So give us a call. And if you have anybody
that has student loan debt, if you want to do
something a big favor and make a big impact to
somebody's life, tell them that you heard this and that
you should call the radio show guys to out the
Florida Talk Real Estate crew to find out if they
can help you. We've had a lot of those calls
in the past where somebody heard the show and then

(01:22:08):
told a relative or a friend, and the friends saved
hundreds of dollars a month and it impacts them their
lives so greatly. I want to go ahead and take
the break in a couple of minutes, but I want
to talk about one thing really quick, Mike, and then
we're going to talk about down payment assistance after the break.
So I read that they're changing some guidelines that now

(01:22:31):
you can count your rent payments and your utility payments
as part of your credit score to help qualify for
a mortgage, and they're thinking that that will be a
big benefit to a lot of people that to help
them get into home ownership. I also read that even
though that the government announced they were doing this, there's

(01:22:54):
nothing in writing saying how it's going to work, and
they're using some kind of special vantage four point oh
four point oh credit score. And I knew there was
TransUnion experience and equifacts, yes, and I've heard advantage before,
the vantage score, But this is vantage four point oh,

(01:23:14):
which is different than the three point oh, which calculates
it differently. So tell me, in layman's terms, what all
this means and will it really affect I think the
people in a positive way.

Speaker 3 (01:23:25):
The best way to explain it is Traditionally, you have
your credit scores from the three bureaus. We use the
middle of those three scores as your qualifying score. Your
qualifying score is important because it impacts number one, do
you meet the minimum threshold for the loan type you're doing.
It may impact your interest rate, may impact your mortgage insurance,

(01:23:46):
and so it's kind of like minimum to even consider
being qualified. And then it can influence your payment at
the end of the day. So the Vanter score is
just a different score, right, It's still going to be
provided from the three credit bureaus. That's just instead of
your fight Go score or whatever it is, it's a
vantage score. And the vantage score takes into account different

(01:24:09):
factors for you know, getting to the result. Right, So
when you do a formula, you have you know, variables
in the formula and you get different waiting factors on
the importance of you know, say you're revolving credit payment
history or your mortgage payment history, or your collections and
judgments that all these factors go into like you know,

(01:24:30):
are you a good student or not? Right, It's kind
of like that like are you an a student? Are
you a C student or you an F student? Right,
So it's just a different way of coming to that answer.
And then you can now use the vantage scoring model
and the resulting score to see do you meet the
minimum standard? How does an impact your rate and everything?

(01:24:50):
So it's just you know, they're now set up so
that you can get approved with the vantage score versus
the traditional fight go score.

Speaker 2 (01:25:00):
The question though, is is that do landlords report that
people are paying on time? Like do they? Does that
actually happen?

Speaker 5 (01:25:10):
No?

Speaker 3 (01:25:10):
Traditionally no, Right, That's not One other thing that kind
of the secrets and the credit reporting world is it
costs money to send data to the credit bureaus. Right,
So if I'm a credit card issuer, right, visa or whatever.
Every time I send a bill, I'm sending you your bill.
I also send that data to the credit bureau. But

(01:25:32):
it costs me money to do that. Well, why do
they do that? Because of credit bureaus provide a valuable
service that allows me to assess whether someone's going to
pay me back when I send them money. Right, So
it's worth it for me to kind of contribute to
that data set of knowledge, but it costs money. And
so traditionally no landlords, community, you know, property management companies,

(01:25:52):
They're not paying money to send that data to the
credit bureau. So you know there's going to be a
new dynamic there if you want to collect rent data.
I think the Vandage score takes into account and weighs
more importantly trended payment history over time. So the FYCO
models don't look at like, on your revolving credit, do

(01:26:14):
you pay it off every month or do you make
the minimum payments? And do you do that? How's that?
What's your history look like over twelve months? Right, Whereas
the vantage model will look at that trended payment history
and kind of assess what kind of credit user you are.
So even though your balance is high, when the bill
is generated. Right, Let's say, Paul, you know, you probably
have a credit card where you get points or something,

(01:26:35):
right miles, and you use that card. You just pay
for everything on the card, and you got a ten
thousand dollars limit, and you're you're spending eight thousand dollars
a month on the card, right, So you got eighty
percent utilization on the fight Go model. That's not an
A right as it like that individual trate. It's not
an A plus, right, It's something less than that. An
A plus would be if your balance was ten percent

(01:26:57):
of the limit. So I had one thousand dollars or less.
So but Paul's like, yeah, but I pay it off
every month, right, I run up eight grant and I
stroke a check. I said, yeah, but what's it look
like when the bill is generated. When the bill is generated,
that's the data that's sent over to the credit bureaus.
So you got eighty percent utilization. Well, the vantage score
will look at that, and it's smarter about it, says,
wait a second. No, this guy pays it off in

(01:27:18):
full every month. I don't care it was eighty percent
when the bill was sent. He pays it off. He
makes a big payment every single month, So the trended
data is more heavily weighted and looked at. And that
so rental history, whether it's reporting or not, can it be.
They're already kind of looking at rental history as it
influences like the credit underwriting decision. But so the Vanter

(01:27:40):
score is just a different model, looks at different factors,
and it now is officially able to be considered as
a score to use versus the fight.

Speaker 2 (01:27:49):
On if you have no reporting on that fantaged score
because nobody reported anything, can you start pulling out your
receipts to show that you paid your rent on time
for two years or something.

Speaker 3 (01:28:02):
People need to worry about that part because it's the
Vantera score is going to have all of the factors
that the other that the FICO scores are using. They
just have a different result. I mean, I don't know how.
It's like the act versus the SAT right, It's like
just two different things. They generate two completely different scores.

(01:28:23):
They tell you how good you are.

Speaker 5 (01:28:25):
You know a knowledge right, right, But it does frustrate me.
Just what you were saying happens all the time to me,
is I pay my credit card bill? The second day,
the day after I receive it in full. If somebody
is trying to decide whether I'm a great credit risk,

(01:28:46):
the fact that I choose to put more money on
my credit card as opposed to pay cash is simply
because it's convenient for me. I can write one check
a month instead of one hundred, and I get some points, right,
So how do they come up with me being a it's.

Speaker 3 (01:29:04):
Not B rate, Yeah, it's not. I don't even think
like so I'm using that as a specific example. So
let's say you know you do that with everything, right,
always pay on time, your cars, your credit cards, everything,
regardless of how you use a revolving credit. If you
are that person, you're gonna have eight hundred FICO score, right.
So the fact that you have eighty percent utilization, maybe
that's the difference between seven ninety five and eight to fifteen,

(01:29:26):
right or something like that. So just it's irrelevant at
that level. If you're a good payer and you have
always been a good payer, you're going not gonna have
problem with that. It's the people who need to optimize
their score for some reason that you need to be
strategic about making every single trade line and a plus, right,

(01:29:47):
that's and so I need to like get to six'
eighty for some, reason And i'm at six. Forty WELL
i have rapid. RESCORE i CAN i can, say, hey,
listen pay this card down to this and that's going
to give us this utilization and and that's going to
get us the. Rescore OR i can, say, Hey, jim
you know what you're going to do alone six months from.
NOW i know how you use your credit. Cards guess,

(01:30:08):
what your credit's not exactly where we want it to.
Be it could be. Better the higher the, better, right
like just in, General so just for, now for the
next two, months whatever it, IS i want you to
pay your credit card. Bill do use exactly the, same
do everything exact, Same BUT i want you to pay
it before they generate your. Bill so don't wait for
the bill to be, generated don't wait for the due.

(01:30:29):
Date pay get the balance down before they generate the.
Bill and, yes you have to look like when are
they generating your bills at the, fifteenth twentieth, whatever to
make your payment before or just stop using your card
how you normally use. It so make this last payment
and then just you, know use YOUR debitcrad for the
time being BECAUSE i want your your individual tradelines optimized

(01:30:50):
for credit. SCORE i want a plus's across the, board
so you can do. That but in, general it's not a,
Problem like it really only matters when you're trying to
get a more it's maybe a, car, Right.

Speaker 5 (01:31:01):
And the funny thing is that your numbers are almost exactly.
Accurate and WHAT i figured out is ANYTIME i need
to have my credit score utilized for the three months before,
THAT i make two payments on my credit. Card if
the bill is an average of fifteen, DOLLARS i do
seventy five hundred on the first and seventy five hundred

(01:31:23):
on the, Fifteenth and so they're not showing whenever they deliver.

Speaker 3 (01:31:27):
It it's when the bills. Generated that's, it like once a.
Month and it's we live in a world where you
would think that data could be exchanged, instantly Right like
you go you look at credit, card what they done
with your balance is like right, now like they can
see that. Stuff BUT i think that just goes back
to it costs money to send data to the credit.

(01:31:48):
Bureaus that's. It so why would you do that more
than you have?

Speaker 2 (01:31:51):
To?

Speaker 3 (01:31:52):
Right so it's just like a. FEE i don't know
what if the fee, is but it's you, know it's
just like when you use a credit, card the merchant
has to pay right because they're. Right it's similar to.

Speaker 5 (01:32:01):
That although every MERCHANT i know now has that sign
in their door saying we charged two point nine percent
on credit.

Speaker 3 (01:32:08):
Cards they weren't allowed to do that for many, years
and then they were allowed. To and it's, like, oh
speaking of, that CAN i talk about, That? JIM i
know you want to take?

Speaker 2 (01:32:13):
It, no go, Ahead, no, no we're not going to
take the. Break we're going to keep.

Speaker 3 (01:32:16):
GOING i SAW i was at a gas. Station this
is my public service. ANNOUNCEMENT i was at a gas.
Station everyone knows they advertise the cash cash price, right
and then your credit price is again something like. That
SO i go. In i'm looking at the. Difference i'm
a regular, guy eighty. Seven the difference between on eighty

(01:32:37):
seven at this gas station it was two ninety nine
cash price three ninety.

Speaker 2 (01:32:41):
Nine, yeah credit. CARS i saw, that AND i saw
that at A jupiter, yep.

Speaker 3 (01:32:45):
A dollar per gallon Different, jupiter AND i was, like
what is? Going and then you looked at their eighty
nine and their whatever those were the ten. Cents It's i'm, like, oh,
okay they've they're doing. Something so NOW i am watching
for THOSE i know which gas stations do, it and
those ONES i pay, cash the other ones with the Normal, yeah.

Speaker 2 (01:33:02):
There's one on a federal highway In Indian Town road
that does.

Speaker 5 (01:33:06):
That so dollars more, yep every time you have to
go inside and give the.

Speaker 3 (01:33:12):
Cash, yeah, wow every time you fill.

Speaker 2 (01:33:15):
Up it's.

Speaker 3 (01:33:15):
Crazy when it was a, dollar it's, Like, okay who.
Cares now it's ten dollars or thirteen dollars or whatever it.
IS i fill up When i'm, empty you.

Speaker 2 (01:33:24):
Know, yeah that's. Crazy let's switch. Over let's switch over
to the other program. Changes, now we did talk about
this right before we took our, break our hiatus for the,
summer which was the down payment assistance program called The
Hometown heroes program is scaling back instead of we thought

(01:33:48):
it would stay the, same but it's scaling. Back so
that program originally was only. Used the reason why they
called It Hometown heroes was to help local.

Speaker 3 (01:33:58):
First, responder, police, fire.

Speaker 2 (01:34:01):
Government, workers some hospital workers and things like that to
allow them to have affordability in. Homes and they were
giving up to five percent of the loan value back
to help pay for down payment closing. Costs and it's
a great. Program, Yes and over the years they actually
expanded it to more. Professions and by the third or fourth,
YEAR i think it was like basically anybody, year it

(01:34:24):
was the third, year.

Speaker 3 (01:34:25):
Third year of the. Program so they're, like this is
a really great. Program look at this down payment Assistant it's,
popular like where they're using all of the funding throughout the.
Year and the idea, was how can we make this expand.
It let's expand it some more homeowners can take. It,
opportunity and so they wrote it into to. Law, well
actually the third year they increased the professions from just

(01:34:45):
like your first responders to more in those. Fields it
was still like, medical.

Speaker 2 (01:34:50):
But include like chiropractors and chiropractice assistants to start to
spending that dental. Things, yeah it just.

Speaker 3 (01:34:57):
Expanded so it was, Like, okay that's, Great we're going
to expand the. Number then they put into law they
wrote actually wrote The Hometown Heroes Down Payment assistants program
to law and they opened up to all first time home.

Speaker 2 (01:35:08):
Buyers you're working for A florida employer.

Speaker 3 (01:35:12):
In florida for A florida based, company and there was
some nuance they've kind of, like you, know filled in
what that means, exactly and they, said it's going To,
evergreen it's going to. Fund you, know it's going to
refund every. Year so it's not like a decision to be.
Made it's going to get funding. Now they didn't set
the exact, amount which is what we ran into this,

(01:35:33):
year but they opened it up and so even though
they funded one hundred, million the funds once you opened
it up to everybody were used very, quickly, Right so
it was more. Money did it help more, FAMILIES i don't,
know because the money ran out, quicker, Right so it
helped a lot of, Families but you had a window
of opportunity about a month and a half two months

(01:35:54):
before kind of those funds were. Exhausted and so we
knew that and we've been talking about it because we're
like we anticipated it's going to, fund it's going to be.
Available you want to be, there like you need to
be getting into contract. Now and so there was a
lot of stuff in the in the in the legislature
trying to figure out how much to fund and what
to do and so they at the end of the
day they funded it fifty million instead of one hundred.

Speaker 2 (01:36:15):
Minutes, OH i didn't know. THAT i didn't even here that, yet.

Speaker 3 (01:36:18):
SAY i think to say to sign that he's yet
to sign sign off on this latest. Development so they
funded a fifty. Million because of, that they made the
decision to scale back the pool of eligible, borrowers so
it's no longer just first time home. Buyers it is
back to some pool of. Professions so it's a profession based.
Thing seems like they're tightening it up so it might

(01:36:40):
be more like the first list of professions than the
second list of, professions.

Speaker 2 (01:36:46):
Police, firefighter government.

Speaker 3 (01:36:48):
Workers, yes they've yet to come out with all of the, categories,
right that's still.

Speaker 2 (01:36:54):
The programs they're not even out. Yet, yeah they're normally
stort your live.

Speaker 3 (01:36:59):
First, yeah they're hoping to have it here done by
the end of this, month just waiting for the. List
so there's kind of, like if you're in the list of,
professions that's great news for. You because even though they
cut the funding from one hundred to fifty, million that fifty,
million even because the pool of eligible.

Speaker 2 (01:37:17):
Bar is going to last.

Speaker 3 (01:37:19):
Longer it lasts a lot, longer so we basically might
have even a full, year maybe six, months but something
like that of eligibility of funding.

Speaker 2 (01:37:27):
Eligicy so just to share a personal, Thing i'm going
to be buying something this summer AND i could have
qualified for that, program The Hometown heroes program at that
time was the first time home, buyer SO i haven't
owned a home in three. Years but NOW i can't
use that program Because i'm not a government worker AND
i don't fit in the employment classifications.

Speaker 3 (01:37:46):
And real estate, agents you guys aren't going to be
on the.

Speaker 2 (01:37:50):
List, no we'll never be On, yeah we won't be
on the. List so what will happen is Is i'm
probably going to use The Florida bomb pro IF i
use one at, All i'll use The Florida bond, program which.

Speaker 3 (01:38:00):
Would be ten thousand instead of five percent of a loan.
Amount up to you were never getting thirty five. Thousand
but it's up to thirty five, thousand, right but you
were probably in like the twenty something thousand, Rates so you,
know you basically have cut YOUR dpa funds in.

Speaker 2 (01:38:13):
Half, yeah THAT'S i was going to. Say the down
payment assistance is going to be about half of WHAT
i could have got if The Hometown heroes stayed where it.
Was so people need to understand this when they're trying
to use the, programs and they also need to know
just because The Hometown heroes might not be for them,
anymore there are other programs out there they can still

(01:38:33):
use with different.

Speaker 3 (01:38:35):
Professions, yes there, Are and even with this one there's
talk it's not it hasn't been set in, stone but
one of THE dpa programs Through Florida housing has always
been a repayable. Second so instead of THE dpa grant
that kind of just sits there attached to the home
and it's repayable if you sell the home or, refinance
this one is actually has a payment, plan so you're

(01:38:57):
almost like A sob equity loan or something like, that
where you're borrowing. It it's helping you to cover, costs
but you're paying it immediately over. Time, Right so it's
seventy dollars a month or three hundred dollars a, month
whatever it. Is you couldn't ever stack those, together, Right
you couldn't do the ten thousand and the repayable, second,
Right so there's some talk of being able to combine

(01:39:19):
the ten thousand and the repayable second to maybe make
up for what you could have gotten With Hometown. Heroes
and if cash is the biggest, problem and not so
much debt to income but, cash that could make the
major the difference for people because you can you can
handle the additional payment, obligation you just didn't have a
way of putting together necessary. Fund so that's something we'll

(01:39:40):
be looking at if it comes to. FRUITION i don't
know HOW i feel about, It LIKE i haven't thought, about, like,
hey does that really make? Sense or get the money somewhere? Else?

Speaker 2 (01:39:48):
Right, Yeah And mike has always said that sometimes there
were certain down payment of. Programs he's, like, look if
you need it and you gotta have, it do, it do.
It but if you could avoid doing, it you'd be
better off not having. Anything it's always been very upfront
and direct about. That and if you need, it you need.

Speaker 3 (01:40:06):
Example i've got one gym right. NOW i got people
who are just in the contract and they could have
used the down payment. Assistance we were planning on Doing Hometown,
heroes but that went, away and so then we're back
down to just ten, thousand and So the question for
them is do you do THE dpa ten thousand with
like the rate right now in AN fha that program

(01:40:27):
is seven, percent or they happened to be buying a
home in a specific you, know in an area where
it's eligible not only for the mortgage Firms Smart start,
initiative Our Community lending, initiative it's eligible for another. One
that other one allows you to do a low down

(01:40:48):
payment conventional, loan say five percent down with no mortgage. Churts,
Right so if you can get community lending initiative that
has a lower interest rate that allows you to do
five percent down conventional with no AM i and Our
Smart start, incentive we're talking about three hundred dollars a
month difference on the. Payment and so it's, like do

(01:41:09):
you do THE dpa and have the ten grand or
you do this other program and do a month for
thirty years and you got a pretty good break even,
there and as long as you don't if you can
come up with the ten k some other, way either
from the, seller from, family or your own, funds, whatever
it is, like that's something that's nice to be.

Speaker 2 (01:41:28):
Years you're making more money than the ten. Thousand, yeah
and three and the third.

Speaker 3 (01:41:32):
Years and what's really critical is that you have somebody
in my, position the professional who's looking at these angles
for you and kind of spotting those. Opportunities so at least, like,
hey we could do it this, way or we could
do it this. Way you, guys let's make you know
the choice that makes the most.

Speaker 2 (01:41:45):
Sense and if you were using let's say the ten
Thousand Florida BOND dpa wards ten thousand flat flat, amount
can you get seller concessions from the seller to like
make up the difference that you would get from The
Hometown hero's program in a, Way so, like could you
get ten thousand from The Florida bond and have the
seller give you another ten thousand dollars to help pay

(01:42:08):
for down payment and closing? Costs, yes you're allowed to do.

Speaker 3 (01:42:10):
That you could definitely use seller. Concessions now there's gonna
be some. Limits there's number, one there's limits on how
much you can get from a. Seller number two is
you have to meet what's called a minimum required. Investment
so if your down payment is three and a half
percent WITH, vj you have to be coming in with
that three and a half. Percent you can't get that
from the. Seller so you can get it from down

(01:42:31):
payment assistance or your own, funds but you can't get
it from other interested. Parties so there's some nuance. There
but in, GENERAL i would just, say get as much
from the seller as you can and we'll figure out how.

Speaker 2 (01:42:42):
To and we did that with one of our customers.
Recently and the thing is is that what people have
to understand is that you need people Like mike that
understand how this all works try to get the best. Benefit,
yeah and right now is a good time to you,
know when you you, know if we were talking eighteen

(01:43:02):
months ago about trying to get sellers to give you
back a certain amount of, money you couldn't really really
count on that at. All, Right it's, like, well who's
going to do that for? You but now there's a
lot of sellers that would end up doing that for.

Speaker 3 (01:43:17):
You, sure you.

Speaker 2 (01:43:18):
Know it's it's really. INTERESTING i just noticed that that
town home COMMUNITY i was checking into for one of
my customers was they would have ended up getting like
twenty two thousand dollars from that Hometown, heroes but now
it'll only looked like. Ten but you probably could get
the seller to come back with the other ten twelve. Thousand,

(01:43:42):
ye probably in that, one probably you can get the
seller to give you the twelve thousand dollars credit or
at least some of. It, yeah and it can make it.
Happen it's a big. Deal so these downpayment programs assessments are,
changing but it's still a great. Time you. Know we
started That Summer Buyer's guide back In, june where we've
been talking about all these. Programs so if you want

(01:44:03):
to check out past, shows all you got to do
is go to The iHeartMedia app and go To Florida
talk Real. Estate you'll see the headline Saying Summer Buyer's.
Guide we had two shows in a ROW i think
In june that had, that and we talked about all
about the down payment assistance programs and techniques for buyers
to get the best. DEAL a lot of that hasn't,
changed but there have been a little tweaks because we

(01:44:24):
didn't expect the hometown heroes not to be funded fully
the way it.

Speaker 3 (01:44:27):
Was and if you are just to reata if you
are in one of those traditional like hero, categories it's
been good news for you and your, community your co.
Workers so it's something you guys should still be discussing
at the water cool or. Whatever is, like, hey this
we don't have to move quite so. Quick we're going
to have this fun the.

Speaker 2 (01:44:44):
Fund the'll be some breathable time where you don't have to.
Rush because the way we were doing, It, paul we were,
saying like in Mid june or maybe even Early, june
you got to get pre approved right now and get
me into. Contract get get somebody into contract as soon
as we, can and then close like the second week In.
July that way you're guaranteed to get we.

Speaker 3 (01:45:06):
Kind of, landed like bring me a contract by the
end Of july if you want to be guaranteed to
get your.

Speaker 2 (01:45:12):
Linser but now now like a, month, right a month of,
resolution so you really had to be. Prepared now you
have a little bit of a. Break but that doesn't
mean you should be. Lazy you should just do what
we say to. Do know your, numbers get, ready and
then when the right house is, there then you pull the.
Trigger but you have to have your gun loaded ready
to pull that trigger before you, know before that house

(01:45:35):
pops up and you fall in love with.

Speaker 3 (01:45:36):
IT i, mean knowing your numbers is so critical at
least in my, view, right Maybe i'm different than, Everyone
but knowing your numbers as you're making the decision on
like DO i want to buy this house or, not
it's really. Important and some of these community lending stuff
that we're looking, at like you don't know until you
it's the. House, Right you're not like out there only
searching certain census tracks or. Whatever you're just kind of

(01:45:58):
looking for the homes that work for. You but when
you're making an offer and you're kind of thinking about
what's my max offer THAT i can do on this
thing based on the payment and the, Cash, like you
got to be able to know that, stuff and you
gotta be working with someone who can spot and, say, hey,
wait actually this one might be. Eligible let me, check
let me check it. Out let's, Yeah so on this,
one you're gonna have a lower, rate you might not
have more, insurance whatever it is that's going to influence

(01:46:21):
your max allowable. Offer you're what do you call, It
jim The.

Speaker 2 (01:46:25):
Maui wowie To Maui. Wowie so what's The Loe noi
The lowe? Noie never the other? One we never we
NEVER i came out with that, One Mali WOWE i
stole that from their marrow from flip this. House but
it's maximum allowable. Offer SO i added The maui wowie.
Part uh called It Maui. Wowie and THEN i came
up with the lowe knowe for, sellers which is the
lowest amount of the lowest number that you'll. Take that's

(01:46:48):
your lowe. Knowing so everybody went crazy WHEN i came
up with that.

Speaker 3 (01:46:51):
One it's just say That's Malui wowie's, okay, yeah lowe.
KNOWING i like the.

Speaker 2 (01:46:58):
Lowe, knowing SO i you, know one of the things that's,
happening this is an unusual trend That i've never. Seen
maybe during the short sell, crisis BUT i don't think.
So we're having more people back out of contracts now
Than i've ever seen. Before they just the buyers, quit
the sellers. Quit they're in, contract, right they're in contract

(01:47:19):
to sell the house with the other, party and the
deals are fall apart left or, right and it's happening
all over the. Country i've never seen this many feels
all apart.

Speaker 3 (01:47:28):
When people feel like they're not getting what they wanted
from the. Start so maybe like as a, seller you
had you, know you went on, list it's sitting on
the market. Longer you've done a price, reduction like every
one of those things as a, haircut and then you
got an, offer but they wanted a seller, credit and
that's another, haircut and so you're kind of like from the,
beginning getting less than what you expected or, anticipated and

(01:47:51):
then that makes all the negotiations more, stressful more, tense
and you can get to a breaking point because you've
already gone through to get to where you're. AT i
think and buyers are feeling the same, Way like they've
been out looking at, homes maybe they made multiple, offers
they had inspection. Issues so it's if you have that
kind of, experience you can get to a breaking.

Speaker 2 (01:48:10):
Point oh. Yeah and Even, kathy the person that's moving
To South, carolina we only had our house on the
market like thirty, days, right which is not a long
time in today's. Market, yeah and she was already ready
to give. UP i don't have, to you, know she
was saying things, LIKE i don't have to sell my,
ELSE i could stay here IF i, want you, know
she didn't really want, to but she had that in

(01:48:32):
her mindset that IF i don't get WHAT i, Need i'm,
LIKE i totally Get AND i was, Like, Kathy i'm
not putting any pressure on you at all to, self
you don't get what you, need you're not. Selling and
she actually sounded relieved and she's, like thank, You, jim
that you're listening to, me, Right and then like a
week later we got it under. Contract but people are
that edgy right, now you, know thirty days and they're

(01:48:52):
freaking out that they're not getting. It are you seeing
people like, That? Paul and when you're doing real estate
transactions right? Now are you on both? Sides? Sides?

Speaker 5 (01:49:01):
Right you get the sellers who Say i'll take that,
price but don't come back to me for a nickel
in the inspection. Period and they know the roof is,
old they know that they've got a window that was,
leaking they know they've got two older, AC's.

Speaker 3 (01:49:18):
They've already priced it, in, right that's why you're getting
the price you're, getting.

Speaker 5 (01:49:22):
Which is, Great but say that upfront to the other,
side not just to, me and know that that's what
it's going to be in ten. Days you're going to
say yes or. No you're not going to come back
to me and SAY i need, EIGHT i need TWELVE
i need, fifteen and you, know the realtors are not

(01:49:45):
negotiating down like they. Would so if you, know if
somebody says that to the listing, agent the listing agent
just goes back and, says, yeah no credits, period that's.

Speaker 2 (01:49:57):
It we're.

Speaker 5 (01:49:58):
Done in years past with the listing agent have turned
back to the buyer's agent and, say, LOOK i know
we found four thousand dollars that needs to be addressed
because you can't get a mortgage without. It let's both
go in for two. EACH i don't see that as common.

Speaker 3 (01:50:19):
AT i mean deals for, AGENTS i mean they're the
total volume per agent is probably down than it has,
been so every deal is important as far as getting,
paid right does that?

Speaker 5 (01:50:29):
Income that's so illogical because the more deals are, Canceled, yeah, yeah,
yeah the fewer deals you're going to.

Speaker 1 (01:50:35):
Do.

Speaker 2 (01:50:36):
Yeah there was an article On Yahoo life talking about
the eight reasons, why eight most common reasons why sellers
back out of the, deal AND i was, like, oh
that's kind of interesting BECAUSE i couldn't come up with eight.
Myself they, said when the sale is contingent upon a
construction new construction home and the construction home doesn't build in.
Time that's one of the top reasons why the deal falls.

(01:50:59):
APART i was a little surprised about that BECAUSE i
didn't think it was that. COMMON i, mean, yeah maybe
it's other parts of the country, something BUT i. DIDN'T
i don't really see.

Speaker 3 (01:51:07):
That that too. Much it seems like just poor. Logistics another.

Speaker 4 (01:51:11):
Reason when when they were building my, house they gave
themselves a two year window to finish it, in so
that seems kind of.

Speaker 2 (01:51:18):
Odd this is one of the things that's my perfect
seller buyer. Example the seller's deal falls through on the
home they're, buying so they're going to become homeless if
they sell their house and they try to back out
of the. Contract you better fill out your paperwork right
in order to make that, happen or you could be
sued for specifics similar to the.

Speaker 3 (01:51:38):
Buyer to the first.

Speaker 2 (01:51:39):
One it is similar inspection, repairs which is What paul
was just talking. About the sellers have this idea If
i'm going to take that, Price i'm not giving you a,
dime and maybe that isn't communicated, correctly and then the
deal falls apart misunderstanding the true cost of. Selling this
just happened recently to one of my, CUSTOMER i just had.

(01:52:00):
One oh is that? Yours maybe you're the one that
told me that you're you told me that with The. Pacelin,
yes so tell me about. That because they didn't know
what they're when they they had the home.

Speaker 3 (01:52:10):
Listed they got a full price offer and it kind
of had a verbal, agreement and then and only then
did they work up a seller net sheet with the title.
Company and the title company is, like, okay here you got,
this and you got this and, this and then the
twenty five thousand dollars paceline that they did right the
wy green windows and, doors which were actually a really
nice feature of the. House that kind of made the

(01:52:32):
difference between making the offer out there like whoa brand
new hurricane and pass.

Speaker 2 (01:52:36):
Everywhere.

Speaker 3 (01:52:36):
Great so the, Sellers i'm not. Surprised i've seen that
before where they don't realize that The pacelin has to
be satisfied if they're going to sell to a financed.
Buyer and so it, changed you, know they were they're
going to owe money at that price versus walking down.

Speaker 2 (01:52:53):
Supposed to be in net net. Positive, Yeah i'm, like
whose fault is that is?

Speaker 5 (01:52:57):
That the?

Speaker 3 (01:52:58):
Agent is that?

Speaker 2 (01:52:59):
Them my opinion is definitely the agent's. Fault the sellers
should know. TOO i can't believe how many people that
have Wy green that don't know they have to pay
that lean off when they. Close and the problem that
they have is AND i found this out from working
with a bunch of customers last year that had, this

(01:53:20):
the salesmen that are selling them the products are, saying
don't worry about. It they can assume. It it'll stay
with the. Home they'll just assume. It the buyers will assume.
It and it's like the right buyer may assume, it
but most buyers are not going to.

Speaker 3 (01:53:34):
Assume that was the origin of that type of. Loan
it's like the whole reason for that was that could
stay with the home home.

Speaker 5 (01:53:40):
And then the listing agent never puts it on there
that that they're offering it as an assumable. Loan. Right.

Speaker 3 (01:53:49):
Yeah the worst is they don't even know about. It
they haven't even that's even. Worse that's. Worse they were
shocked that they were going to doesn't that show on
their tax? Records it, does but somebody's got to look got?

Speaker 5 (01:54:00):
It?

Speaker 1 (01:54:00):
Oh?

Speaker 3 (01:54:01):
Okay like AND i don't, Know, jim how many people
are doing like a, netsheet A sellar net sheet that
has some sort of level of lean, search, Right LIKE
i don't, know, like are you doing that early in
the process orre you only doing that?

Speaker 2 (01:54:14):
After, well we do, it thanks to try the title
because they got a great. App we we do The
sellar net sheet while we're sitting there taking the. Listing
but does that account for a, Pastlein well you asked
you have any Kind we actually have a form to
ask them all those.

Speaker 5 (01:54:29):
Questions i've had to die on that solar. Panel, yeah
solar panels are the. Worst and the criminal, salespeople yeah they.

Speaker 2 (01:54:37):
Are it's like aluminum siding. People it reminds me of. That,
HEY i know we only got one minute. Left i'm
not SHOWNY. C so, everybody we're. Back we're going to
be back next. Week we're not taking any time off anytime. Soon,
paul thank you so much for. Coming you're welcome all the. Time,
mike you're you, know keep part of the. Show so
you got to come. Back you have to come, back all, Right,

(01:54:59):
okay you can come back when you want to come.
Back And, jimmy thank you so much for holding them forward.
Today thank you so, much.

Speaker 6 (01:55:06):
Dude thank you, guys have a great day and stay.
Tuned we got the Locker room coming up next On Real.

Speaker 5 (01:55:12):
Radio