Duncan Duo 8-04-24

Episode Transcript

Speaker 1 (00:00):
Happy Sunday, Tampa Bay. We're with you for another week
here on the Duncan Dubo Show, like we are every
Sunday at ten talking about the Tampa Bay real estate market.
I'm Andrew Duncan, host of the show, having done this
for more than a dozen years, always giving you guys
the updated knowledge with the Duncan Duo team at LPT
Real Tea. What I want to start with today is

(00:23):
something I feel like there needs to be an education
on a couple of different things happening in the real
estate market. The first one is something called a subject
to offer. Now, there are a lot of real estate
agents who don't quite understand what this is, so I
want to explain it. And I also want to talk
about assumable loans because there are two different things that

(00:43):
are getting confused quite a lot. There are a lot
of investors out there that look to buy property subject two,
meaning that they take over the responsibility of the mortgage
from the prior owner. So a subject two offer is
basically you buying it subject to the existing mortgage. The
homeowner can get their equity, but they are still technically

(01:05):
liable and on the hook for the mortgage and they
have to trust that the purchaser that's buying it subject
to will continue to make the mortgage payment. Now, subject
two are really common right now because we've seen the
last few years where interst rates have risen pretty dramatically,
and we have a lot of people that have owned
their homes two, three, four years and they have really

(01:26):
low interest rates. However, those low interest rates on those
homes are not assumable. We'll talk about assumable loans here
in a few minutes and kind of what that entails.
But subject two basically allows the person to say, hey,
I will give you your equity, but I want to
keep making the payment so I can keep your low
mortgage rate. So someone has a three percent mortgage rate

(01:49):
and somebody wants to buy that property and turn it
into a rental, they can make the cash low difference
between the total obligations of payment, taxes, and insurance and
then what is charged for rent, especially in situations where
those rates are lower than what we're seeing in the
marketplace right now. Now, there are a lot of really

(02:09):
savvy investors that do this. There are a lot of
there are a lot of others where every time I
list a house, I get a low bull offer from them.
There are others that are making reasonable offers, but as
a home seller, it's a risk. We're dealing with one
right now that is now a short sale because a
homeowner trusted the person would make the payment subject to

(02:30):
and then when that person realized that the rental market
wasn't as strong as they thought and they weren't going
to make the cash flow that they thought, they defaulted.
And that person ended up getting the loan and property
back and is now fighting foreclosure and doing a short sale.
So if you are a homeowner and you are seeing
subject two offers as a seller and you're on the market,

(02:51):
I want you to be really cautious to make sure
you understand what you're looking at. There are real estate
agents convincing their clients the sign stuff because they want
a commission check, simply not really explaining, and there's going
to be a litany of lawsuits down the line with
subject to people that are defaulting. So a subject to
offer does not absolve you of the mortgage. You still

(03:16):
are the mortgage and noteholder. The bank is not letting
you out of that liability. You're basically passing the obligation
and trusting that the person buying your home subject Too
is going to continue to pay the mortgage. So the
circumstances where this may make sense someone that might end
up in foreclosure anyway and is losing equity or has

(03:38):
to move, or a scenario where there is a strong
bond of trust between the person buying subject too from
the owner and a confirmation that there is a strong
equity position or an asset position from that person. So,
for example, if if I'm a regular person and I
wanted to buy something subject too from someone, and I

(04:00):
was able to show them, hey, look I have plenty
of money, and I'm accepting I'll give you a personal guarantee.
I have plenty of money. This is just a smart
investment for me, and I have money to pay it
off if I have to, but I'd like to take
advantage of this low rate. And there are just a
lot of fly by night companies out there right now
in the subject to space. We literally have homes that

(04:22):
go on the market and we get offers from subject
to investors on every single one of them. It's almost
like they have a formula or an algorithm and they
fire at an offer based on the asking price on
every one of them that has a percent a certain
percentage mortgage and you know there's a certain percentage of price.
Those are the ones that I'm concerned about because there's
really not a personal connection. Like if you had a

(04:43):
family member that wanted to buy your house, or someone
you really knew personally that said, hey, look i'll buy
it from you. But hey, you know what, you know,
I have money, you know I have enough I can
give you a personal guarantee in writing, and you know,
but I'd really like to keep your three percent mortgage
rate because it makes it a better investment for me.
So those are the these scenarios where subject to makes sense,
but it is severely risky for the seller because you

(05:05):
are giving away your you know, your credit. In essence,
you're you're having to trust that person to keep making payments. Now,
in some instances, it makes sense for that person to
keep making payments because it's a viable rental property, and
if they stop making payments in the home goes to foreclosure,
they lose the cash blow that they would get. So
you have to be confident that the numbers make massive

(05:27):
sense for the subject to buyer number one and number two,
you have to have some trust built with the subject
to buyer for it to make sense. So you know,
it's funny because you know, I'm in a lot of
investor groups, and certainly if I wasn't a real estate agent,
I would probably participate more in subject to investing. But
because I'm an agent, I have a fiduciary duty to sellers.

(05:48):
It's not something I typically really like to do because
of how you know, how how uncomfortable it makes me
from from for a variety of reasons. But so I
completely understand it. But again, it's a rare circumstances where
it's going to make sense for a transaction. That's why
very few sales happen that are subject too but there

(06:08):
are somewhere it will make sense. Now, on the opposite
spectrum of this is an assumable mortgage, So I want
to explain the difference subject to you, as the homeowner,
When you sell your home to a subject to buyer,
you do not release yourself from liability. That mortgage still
shows up on your credit report. They're just quote unquote

(06:29):
responsible for paying it contractually. Now, if for example, they
don't pay it, then you have other remedies. But your
credit's going to get hurt and then you're back in
line paying it. Okay, that's what a subject too. Is
A assumable mortgage is not that. An assumable mortgage is
another buyer buying your property and assuming your mortgage, meaning

(06:51):
the liability and the credit and the amount oed transfers
from you to that person. Now not only are they
responsible for paying it, but it is there mortgage in
their No, it's off your credit and it's now on theirs.
So that is the difference. An assumable mortgage will make
a lot of sense when again, someone has a mortgage

(07:11):
that that is assumable at a low enough interest rate
for it to make sense for someone to buy it now.
So where that makes sense is when interest rates on
the property of the original owner are lower than current rates.
So you might even be able to get a premium
on your price if you've got a two or three
percent assumable interest rate, whereas somebody that has a you know,

(07:36):
a seven percent today may look at that and say,
I'd pay a little bit more for that house because
I get that rate. And assumables typically aren't in conventional
loans or jumbo they're going to be FAHA and VA loans.
So those are assumable loans and the banks aren't really
set up to handle them very well. So I want
to caution you an understanding that it's not going to

(07:57):
close as smoothly as a tip. You know, you're getting
a mortgage and you're buying a property with your lender,
it's going to be a little bit more challenging because
the banks weren't ever really set up to handle this properly.
They they're trying, the lenders are trying to get better
at it, but we're seeing some closings take double the
amount of time of a normal closing because of some

(08:18):
of the extra hoops to jump through. But if it
is an FAHA or a VA loan, you know it
is assumable. So I want to also explain that VA loans,
the assumption on VA loans does not require the person
to be VA qualified, meaning they don't have to have

(08:39):
a DD two fourteen. They do not have to be
a veteran to assume a VA loan, Okay, they just
have to qualify from a credit and income perspective, all right,
for that VA loan. Similar to FAHA loan, However, it
does until that loan is paid off if it's assumed
that still stays on the entitlement of the original seller.

(09:02):
At least that was my last update from our lender.
Meaning that if you are a homeowner and you have
let's just give you an example, you have a three
point five percent VA loan and you want to sell
your property and you want to advertise it that it
has an assumable loan. Somebody buys that and assumes your loan,

(09:23):
and let's say you owe five hundred. Well, now that
goes against your entitlement with a VA, which means if
you're going out to buy another property, your entitlement what
you qualify for has to be higher than that number,
or that kind of counts against you. So it doesn't
hurt your credit, you're not obligated to make the payment,
but it does count against your entitlement. Now, VA will
allow you to have more than one VA loan, but

(09:43):
there's a lot of criteria that depends on how much
you can qualify for. So you want to make sure
that if you do sell your home to someone that
assumes your VA loan, that there's enough room in between
what is owed on it and what you now need
to go get a loan for in your entitlement to
be able to use a VA loan on the other side.
So that is essentially kind of a breakdown of the

(10:06):
difference between subject two and assumable. Assumabile has a lot
less risk than a subject to because that borrower, the
new buyer assumes and you are off the hook. It's
no longer your mortgage now. The mortgage now transfers to
the buyer, where a subject too the buyer is obligated

(10:27):
to make payments on the mortgage contractually, but the mortgage
doesn't transfer to them. The mortgage is still in your
name on your credit report, on your debt to income ratio,
meaning that if you do a subject too when you
have to go out and buy another property, you're going
to have to show that you have enough income to
be able to support the mortgage payment should those people

(10:48):
default and not pay your mortgage payment for you and
your new mortgage payment. So hopefully that makes sense. There's
a lot of confusion out there between both homeowners as
well as a lot of real estate agents don't understand
it between subject to and assumable mortgage. We're seeing a
lot of it. We're seeing you know properties regularly number

(11:08):
one where the consumer and the agent on the other
side don't understand either one of those things. But one
other thing that I'm seeing a lot of that agents
are making a mistake about is not advertising the assumable
loan of their owner. So if you are on the
market and you have a VA or FAHA loan and

(11:30):
your interest rate is lower than what is prevailing, substantially
lower than prevailing, and your real estate agent didn't find
that out, you need to forget. You need to get
it with your agent and let them know so they
can update the advertising. And you might have the wrong agent.
So nonetheless, if you have that type of loan, it
should be advertised and it can be compelling, and there

(11:52):
are people who will pay the difference in cash in
those circumstances where the mortgage amount is, you know, lower
than what you're selling for simply to get that little
of a rate, And it does make the property more
attractive to some people, because again we're in a high
interest rate environment and we're going to be in that
high interst rate environment for a while. Some people are

(12:13):
expecting some reprieve post election. Who knows what that will
really entail. And that's what I'm going to talk about next.
The presidential election upcoming is definitely having an impact on
the real estate market, and we talk about that after
a quick break here on The Duncan Duo Show. So
we're back here on the Duncan Duo Show talking about
the Tampa Bay real estate market. In the first segment

(12:34):
of the show today, I talked about subject too and
assumable loans and what the difference between those two are
for both agents as well as home sellers and buyers,
just so people have a good understanding of the pros
and the cons of both of those scenarios and when
it might make sense. But what I want to talk

(12:55):
about next is the presidential election. And no, I'm not
going to delve into politics right now, although I have
a pretty good idea where most of my listeners tend
to steer towards. But the reason I want to talk
about it is because it is causing a lot of
home buyers and sellers to fence sit. In other words,
they want to wait until after the election to do anything,

(13:18):
and I want to explain why that's flawed logic. Well,
first off, having been into business for twenty years, I've
been through numerous presidential elections, and every time we get
a few months out from the presidential election, you feel
a little bit of a slow down in real estate,
and you start to hear that objection over and over
again that I want to wait until after the election,
But I want to explain why the presidential election will

(13:41):
have virtually no impact on the real estate market no
matter who's elected over the next several months, anything that happens.
The real estate market is not like the stock market.
The real estate market is very slow moving, meaning that
any of the policies that whichever president is elected in
up in acting, any of the policies that they enact,

(14:04):
aren't going to first off, it'll take a long time
to get them passed because it's looking like a house
in the Senate may not end up trending the same direction,
and there would at least be some variability or balance
of power between the two parties from that. But even
if it were to pass in that setting, it takes
a year plus before it ends up having an impact,
simply because real estate just doesn't move as quickly as

(14:27):
a stock market. The stock market can rise or fall
five percent in a day. Real estate doesn't move like that.
It's very slow moving. And in my entire career, I
can tell you that right after the election, we've never
seen any kind of huge, massive change in the real
estate market that makes sense for people to wait. In fact,
what I'm seeing and what I think a lot of
people are predicting, is that there's going to be an

(14:49):
improvement in the market with interest rates. But as a
home buyer or a home seller, I want you to
understand that if you wait for that, it's really not
benefiting you. And let me explain why you might think, oh,
if the market gets better, that means it's better for me,
not necessarily if you're selling and also buying a comparable
or higher priced property after you sell, Waiting to get

(15:10):
more for your house is just going to cause you
to pay more on what you're buying. You don't live
in a vacuum. If your home goes up, the home
you're buying is probably going to go up too. And
if we expected interest rates and the marketer are going
to improve post election and everyone's waiting until that happens,
I want you to understand that success happens by not
following the masses. Success happens by doing the exact opposite

(15:32):
of the masses. That's why there's plenty of people in
this country that are not successful. So if everyone is
waiting until after the election, you do as well. You're
going to end up having maybe a better deal on
the sale of your home. But if you're moving up,
it's a loss. Now. Again, if you're moving down, maybe
it makes sense. I could justifiably understand if there was
an expectation of a move down that it could make

(15:54):
sense for you to wait, But if you're moving up,
it doesn't. So you're five hundred thousand dollar house that
you're selling and you're gonna buy a seven hundred, and
you think the prices are gonna pop, So your five
hundred goes to five fifty or seven hundred goes to
seven seventy, you just lost twenty grand. It doesn't make sense.
And if we know interest rates are gonna drop, most
banks or most econdoms are predicting the FED cuts, and

(16:16):
banks are predicting rate cuts for a few months after
the election, including into next year. If rates drop, the
market is gonna be big wars and you're gonna end
up overpaying for real estate. So why not do it sooner?
And get ahead of that. You can always lower your
rate and refinance later. Most lenders are doing a no
fee refinance for a period of time just to keep

(16:37):
you from waiting. But again, it makes sense right now
to transact now versus waiting, because the masses are waiting.
And I promise you, when you follow the masses, you're
you know, you're you know, not gonna win. It's just
the reality of it. You've got to be ahead of
the mass. You've got to do the opposite of what
the masses are doing. So I'm looking right now at
incredible opportunities. I obviously continue buying and investing in real

(16:59):
estate all the time, and I think smart people right
now are saying, hey, look, if that is going to
be the case and prices are going to rise and
I'm going to move up, why don't I do my
transaction now. I can always lower my rate later. But
when rates drop, if prices rise, I lose because you
don't live in a vacuum. And far too many home
sellers don't understand this. They we will hear them over
and over again. Well, I need four fifty. My house

(17:21):
is worth four hundred. I need to get it to
four fifty so I can buy my six hundred thousand
dollars house. Well, by the time your four hundred thousand
dollars house gets to four to fifty, your six hundred
thousand dollars house goes to six seventy, you'll lost money.
You didn't win anything. If your home is going up
and you're moving up, the home that you're gonna buy
is also going to go up. It's just people just

(17:42):
naturally only look that they're not They compartmentalized and they're
not able to look at a big picture when they're
making real estate decisions, and we just see too many
people make that mistake instead of transacting when a lot
of other people are fence sitting, because it's a better
opportunity to get a better deal on price. You can
always change your rate, you can't price. It's a better
deal right now. There's a lot of better opportunities for buyers,

(18:04):
and frankly, if a seller is selling to buy, it's
a better opportunity to take advantage of it now. But
they get stuck in the zone of saying, Oh, I
need X out of my house so I can buy this.
So I'm going to wait until I can get X
out of my house. But they're making the assumption that
they're six hundred thousand oars houses just going to sit there.
It's going to sit there in like a vacuum, and
it's not going to go up and nothing's going to

(18:25):
change with it, and it just doesn't work that way.
Hopefully that makes sense for you about how to handle
the current real estate market. Why you shouldn't be waiting
until after the election, because you are waiting like the masses,
and when you follow the masses, you follow the remove
the m And I won't say that word on air
to avoid getting an FTC violation, but we're going to

(18:46):
be back after a quick break here on the Duncan
Duo Show. So back here on the Duncan Duo Show
talking about the Tampa Bay real estate market. And I
want to talk next to my investors. I come across
an opportunity and I'm going to be partnering with a
nationally known X. We're in acquiring vacant land. And if
you have a four oh one k or an ira,

(19:06):
I am talking to you because you can self direct
your four oh one k or ira and buy investment
real estate and historically real estate outpaces a lot of
the markets depending on what you buy, and vacant land
is a hedge against some of the things going on
out there right now. So if you are someone who
wants to use your four oh one care IRA to

(19:28):
invest in real estate, we can help you. Just go
to the Duncan Duo dot com, call our text eight
one three three five nine eight nine nine zero, or
follow us on all of our socials because you can
take your IRA and four o one K and self
direct it and one are the nice parts about buying
the right kind of vacant land because look, not all
land is created equal. Okay, there are there are land

(19:50):
markets that do incredibly well. There are resort communities that
do well that are constantly growing and building in markets
where you can still buy vacant land very reasonably. So
vacant land is an incredible hedge against inflation. It's a
tangible asset you're able to, you know, not have the

(20:10):
headed headaches and obstacles that you have with a rental property.
And if you don't have vacant land in your portfolio,
I'm definitely talking to you and I'd love to hear
from you. So if you are interested in learning more
about that. I'm going to be hosting some webinars talking
about some strategies that some of my investment friends use
in acquiring vacant land and lots in resort communities, and

(20:33):
how you can use your four oh one k and
ira as a way to you know, continue to grow
and build, you know, an investment strategy that can outpace
the stock market and provide incredible returns. So if you
have all of your money in the market, I know
it can be super volatile at times. Buying investment real estate,

(20:55):
especially when it comes to land, isn't volatile. You're not
seeing your portfolio go way up and go way down.
You don't have to deal with the chaos of that
and the fear. When you buy vacant land, you have
a tangible asset that you can use, you can improve,
and it's virtually indestructible. Companies go out of business, hedge funds,
closed funds go out of business. Companies get invested. Your

(21:15):
land is not getting destroyed. So just like the country song,
you know Jordan Davis, you know Luke Brian, buy dirt.
I'm a big believer in buying dirt right now. So
if you want to know more about that again, reach out,
follow us on social send us a DM, text us
or call us at eight one three three five nine
eighty nine to ninety and we'll have some emails going

(21:36):
out about our vacant land program and how to help
you again use your self directed IRA or four to
oh one K to buy land. So again you're listening
to the Duncan du A Real Estate Show when we
aren't on air, make sure to fall us on all
of our socials. We are at the Duncan Duo, Twitter, Instagram, YouTube, Facebook, TikTok,

(21:57):
you name it. We are there on all of the socials,
always on all the socials, talking to you about what
is going on in the Tampa Bay real estate market
at the Duncan Duo. And if you're a home seller
and you simply do not want to deal with the
traditional process of selling a home, we have a cash

(22:19):
offer for you and that's at duncanduo dot com. Now,
there are plenty of consumers out there that have property
that they want a cash offer on. But I want
to explain that if you want a cash offer on
your house, gone are the days of old where hedge
funds will overpay for your house or pay retail value.
That's gone. Fantasy land is over sunshine and rainbows and

(22:41):
unicorns jumping over rainbows while pooping skittles. That's what I
called it. That's what except I used a different word,
but that's what I called fantasy land a couple of
years ago. That's gone. So if you're someone that owns
real estate today and you want to just accept a
cash offer and just get out and not deal with
the traditional process, you have to expect an an investor
that's going to buy it, including the investors and the

(23:03):
funds that we represent, they're going to need to see
a path to a reasonable profit. If they can simply
park their money in a savings account and make a
five percent return, there has to be enough meat on
the bone for them to profit more than that, meaning
that they're going to pay holding costs, they're going to
pay renovation costs, they're going to pay real estate agents
on multiple sides of the transaction. There has to be

(23:23):
some margin there. So if you have a five hundred
thousand dollars house and you want a five hundred thousand
dollars cash offer, you're probably not going to get it,
unless again, it's going to be somebody that moves in
and occupies a home, if an investor is going to
buy it, they need to see a path to profit.
But if you are that person, Let's say you've inherited
a home. Let's say you've got a home that needs
a ton of work and you know it can't be
sold traditionally because it won't pass inspections. Let's say you

(23:46):
own a lot of real estate and you just want
to exit it in bulk. You want to sell a
package of properties, and you're willing to, you know, for
a book deal, except a lower price. Those are the
types of scenarios again that we would love to talk
to you about. If you are interested in a cash
offer and you understand again that the investor the cash
offer that you're going to get has to find a

(24:07):
path to profitability. Again, you can do that at duncinduo
dot com. Again, that is duncanduo dot com. And if
you have land, obviously you heard me talk about our
vacant land program to help people invest in vacant land,
but we do represent some builders locally that are looking
for some lots. If you own lots in South Tampa,

(24:30):
if you have teardown properties anywhere, in South Tampa, you
own vacant land South Tampa, anywhere around the Heights area
or the Riverfront, carrol Wood area, any of those opportunities
you have for vacant land. We have buyers that are
looking for that. We can put you in touch with them,
and obviously you could potentially avoid going on the market
and save some fees. And again you can reach out
to us on our socials or our website at the

(24:51):
Duncan Duo dot com. So anyway, pending sales are are rising.
We're starting to see a little bit of an uptick
in the market. But I want to tell people that
when you see some of these pending sales increase and
news on the national news it's talking about the real
estate market as a whole, Well, you don't really have

(25:11):
a national real estate market except when it comes to
like policies and legislation, and even some of that gets
dictated at the state level. So when you hear those statistics,
that can be misleading because in Tampa Bay, unfortunately, we're
not seeing that. July was the fewest number of home
sales in a month that we've seen in a long time.

(25:32):
And I think a lot of buyers and sellers are
sitting on the fence mistakenly and it's going to end
up costing them by doing business later on. There are
neighborhoods where we're seeing, you know, short sales and foreclosures
that are depressing values, and we're seeing a lot of competition,
so much so that our pricing strategy has transitioned to

(25:53):
paying more attention to the active comparables. And this is
especially in condos than what is pending and sold. And
the reason why I say especially in condos is because
we have two different real estate markets going on right now.
But either way, there are a lot of neighborhoods with
single family homes that are saturated, where the homes are
now selling less than the comps from thirty sixty ninety

(26:16):
days ago, and you have to look at it when
you price your home and say, okay, am I going
to be one of the best deals on the market
in this neighborhood because when you look at the comps,
you're kind of looking backwards and if the market changes,
the comps aren't as relevant anymore. So I want you
guys understand that we are in a market where you're
having to price aggressively and price ahead of the market

(26:39):
in a lot of areas, and specifically in condos. So
here's what I mean by specifically in condos. We've seen
a doubling of the condo inventory in Tampa Bay. There
are way more condos on the market than we have
buyers for it. Literally, the inventory has doubled. It has
turned into a buyer's market for condos. We are seeing
condo communities get hurt by the Milestone survey inspections that

(27:03):
are causing high assessments, higher insurance which is causing high assessments,
and then of course increases in the condo fees because
of said assessments and improvements the building has to make
because of those things. And so what's happening is a
lot of owners are saying, well, hey, I don't want
to pay that anymore, I can't afford this, or I

(27:24):
think this is going to have a negative impact on values,
and I need to get out now. So we're seeing
some communities get an influx where we have way more
units on the market. So we had somebody recently come
to us and say, Hey, I want to sell my
condo the same exact condo sold six months ago. That's
what I want well, when we look at the active comps,

(27:44):
it's probably fifty to one hundred thousand dollars less on
that particular unit, depending on condition, because the comps from
six months ago aren't relevant anymore. For the condo market.
You have to look at what's active on the market,
and that particular building, I think there were a dozen
actives and one that was under contract. You know, literally
everyone is kind of fighting against each other. So you

(28:05):
have this, you know, kind of thing where you're where
you're in a price war and a beauty contest at
the same time. You're attempting to beat the actives with
a better price, and you're competing with some people who
may have a better equity position than you. We had
a client to say, well, hey, I owe more on
it than that. The market doesn't care what you owe.

(28:26):
The market cares what it's worth. You can't get more
than it's worth no matter what you owe or what
you want out of it. If other people in the
building are selling your unit for three hundred and you
want to get four hundred, for years, you're not getting it.
And that's unfortunately something we're dealing with right now in
the condo market. Something you have to be prepared for.
If you're a condo owner, you're going to have to
price aggressively, and similarly, if you're an owner of a

(28:49):
non condo, you have to look at the data. If
there's a saturation of inventory in your neighborhood, you've got
to be not just the best, but you've got to
either be the best price or the best condition, and
your price has to make your condition to the actives.
So if there's ten active homes, one pending and you're
the ninth highest priced, unless your condition is just phenomenally better,

(29:11):
you're not going to sell. Realistically, You've got to be
close to the best priced, best condition. You've got to
be in that top quadrant or that bottom quadrant on
price and the top quadrant on condition to have a
chance of selling in a market where it is saturated
in a particular neighborhood. So we're seeing that transition right
now where we're having clients who are used to seeing
things back what I call you know fantasy land, you

(29:35):
know Unicorn fantasy land from a few years ago, where
you could ask four fifty for your four hundred thousand
dollars house and get four to fifty. It's just not
out there right now, that is not happening anymore. We're
seeing a softening, especially in condos and some newer communities
where prices have had to be reduced in order to
move inventory because you're competing against other people in better

(29:57):
equity positions, or who have more fear than you, or
who you know simply can't tolerate making the monthlies anymore,
so they want to get out before it causes more
problems for them. So that is definitely something we are
seeing on the regular right now. Anyway, you're listening to
the Duncan Douo Real Estate Show when we aren't on air,
make sure to follow us on all of our socials

(30:18):
at the Duncan Duo, Twitter, Instagram, YouTube, TikTok, Facebook. We're
out there at the Duncan Duo always giving relevant real
estate tips and information so that you can stay up
to date on what is going on in Tampa Bay.
After the break, I'm going to talk to people about
short sales. Talked about it before. It's been a minute

(30:41):
since I've talked about it, but I want to reiterate
to the audience what that looks like and how we
can help them if they're in a situation pre foreclosure,
imminent foreclosure, behind on their mortgage in four barants, and
needing to sell after a quick break here on the
Duncan Duo Show. So we're back here on the Duncan
Duo Show talking about the Tampa real estate market. So

(31:03):
a short sale basically means you sell your home short
of what is owed to the mortgage lender, and the
mortgage lender forgives the difference to allow the sale to happen,
or allows the sale to happen, and you know, maybe
doesn't forgive the difference, but that's what's happening. Most of
the time. The bank has to approve less than what
is owed in order for the sale to happen in

(31:24):
a new buyer to acquire it. Now, this is a
common scenario in situations where someone may be bought in
the last year or two, have a high rate, get
forced to sell for some reason, either they move, divorce, death.
Those are reasons why some people right now are dealing
with short sales. Or they're in a new construction community
and the builder is offering these crazy incentives that make

(31:46):
it to the point where you can't compete with it
unless your price is so much lower, and your lower
price basically eats up the equity that you've gained in
the last year or two. So it's a small segment
of the marketplace that we're talking to, but it can
decimate a neighborhood. If you're in a neighborhood that has
the potential for short sales and foreclosures because of what
is because of this phenomenon from the last year or

(32:07):
two of higher rates and not that much appreciation, it
could really hurt your values in your neighborhood. So it's
something to be cautious of when you're pricing your home,
have your real to or look at the list. Pendons
know what's going on, know if there's any coming so
that you can prepare for them. But if you're a
homeowner and you're in this situation, we have help for you.
We have a couple of different tools and resources. We've

(32:28):
done hundreds of short sales. I've been a short tail expert.
Like I said, I've done hundreds of them in my career,
and that experience will come in handy for anyone that
is in that tough position. So if you know someone
that's struggling to make their mortgage payment, they're on the
version foreclosure, or they know that they owe less or
the home is worth less than what they owe, please
have them reach out to us again. You can go

(32:50):
to Duncan Duo dot com. You can call our text
us at eight one three three five nine eight nine
nine zero. Just let us know you need help with
the short sale. We'll make sure to connect you to
the people to help negotiate that on our team, as
well as potentially legal assistance because sometimes that is needed
depending on what is going on with the particular property.
But it is something that we're seeing a little bit

(33:13):
more common right now. So if you're someone as struggling,
there is help out there for you. And again it
is way better than going to foreclosure reports, better on
your credit, you recover better, you have a little bit
more control of the situation, and banks will work with you.
The bank does not want to foreclose. They know by
the time they foreclose that properties in worse condition and

(33:34):
the property will end up selling for less by then,
and then that drags the neighborhood down and hurts their
ability to load. They do not want to do a foreclosure,
They would much rather short sales. So so again if
you're in that situation, please reach out and let us know,
and we would love the opportunity to help you. Couple
of luxury properties that we've got coming on the market.

(33:55):
We got a new construction, modern build, probably going to
be in the two point five million range. We've got
another new construction in the heart of South Tampa near
near the district south on Dell maybry back in there,
probably going to be in the two and a half
million range. So if you're a new construction luxury buyer,

(34:17):
we've got a couple of opportunities coming on the market
with builders that are willing to either do a custom
or some sort of quasi custom and allow some selections
to be to be selected. So if you, if you
are someone or know someone that's looking in that space,
please again feel free to reach out and we would
love to connect you and see if that is the
right opportunity for you. The luxury market still continues to

(34:41):
hum along. It isn't experiencing some of the ho hum
that the regular price homes are experiencing right now, simply
because interest rates aren't as relevant for you know, for
wealthy people there. They're not simply because even if interest
rates are high on the mortgage, that means they're getting
high That means they're getting h returns on the money
they have in the market or in cash. So there's

(35:04):
always a delta between a mortgage and you know, what
you can earn on your cash. So so even when
the mortgage payments are low, that means the payout on
their cash is low. It kind of translates and evens out.
So the the that kind of stuff isn't impacting the
luxury market as much. We're still seeing a lot of
people move from other parts of the country. Buying and
selling in the luxury space still seems to be doing well,

(35:27):
you know, still seeing over one hundred homes a month
above a million dollars sell in that market. So ultimately,
if you are someone buying or selling in the luxury space,
when you hear me talk about some of the things happening,
it's not as if they don't apply. It's just they
don't apply as as often. It just operates on a
different scale because that that crowd typically doesn't have the

(35:49):
financial the you know, the financial challenges that someone buying
their first home or really worried about the industrate or
trying to qualify because a lot of the transactions are cash,
and when they are mortgaged, it's simply the person typically
has the cash, but they're mortgaging for either tax reasons
or to leverage or to to you know, to deploy

(36:10):
other cash to other assets. So hopefully that's been helpful
for you guys understand what's going on in short sales,
foreclosures as well as the luxury market. Again, when we
aren't on air, hit up Dunkin Duo dot com for
your free cash offer or a home value estimate. I
think the best home value estimate in Tampa Bay is
at Dunkin Duo dot com. And we'll be back next
week continuing our conversation like we do every Sunday at

(36:30):
ten on the Dunkin Duo Real Estate Show. Have an
awesome rest of your weekend, Tampa Bay