The accurate mortgage and Realty show is sponsored by academic mortgage and equal housing lender and[inaudible] and academic Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.
Speaker 2:Welcome to the accurate mortgage and Realty show. Getting you inside information on buying, selling, and financing your home with expert advice, but accurate that mortgage and Realty. And now here's Brian and David[inaudible] mortgage and Realty show. I'm Brian, the
Speaker 1:Majority owner of Econet mortgage and accident Realty advisors, along with my son, David, who's not only acting it's chief client experience officer, but also a new dad. How's it going, David? Uh, first few weeks into your new role.
Speaker 3:It's good. I've never seen 3:00 AM so much in my whole life. Not any time in my twenties, but more of that now, also my eternal thanks to Dr. Paige Gansky and the team at freightered for smoothness on all things two weeks ago. So all is well are right.
Speaker 1:We are rich. Indeed. Your first son,
Speaker 3:Our first grant, our third grandchild.
Speaker 1:So life is good. All right, well, let's start out by talking about market conditions in particular in Southeastern Wisconsin. I just looked up seconds ago before the introduction. How much do you think? And this is according to the federal housing finance agency, paired sales analysis. If you bought a home in the greater Milwaukee area in the first quarter of 2019, and you then said, you know what? I wonder what percentage my home value is up. Now, two years later in the first quarter of 2021 hazard, a guess, young David, 26%
Speaker 3:Increase you cheat. No, I swear to God I didn't cheat. Is that the number? No 21%. Oh, okay. So, so think about that. You know, you buy a house
Speaker 1:For 200 grand in 2019, the first three months. Now it's worth two 40.
Speaker 3:Wow. Over two years. That's nice.
Speaker 1:Uh, and it was something like 10. I think the number I remember is 10% just over the last
Speaker 3:Year. So what you're saying is you should have put 3% down two years ago and then you'd have so much more equity in your home and you could refi and get rid of that PMI.
Speaker 1:That sounds like your story, David. And that's the, it wasn't two years ago. That's just one
Speaker 3:Year ago or 18 months ago, right? You guys bought and a spring of 20, 20
Speaker 1:Spring of 2020, put 3% down because you believe in the product that you, that you know, generates your income. I think called a mortgage. I'm like a big one. You could've put more down, but you chose not to. And now 18 months later, you're refinancing. Have you closed yet? No soon, but now, you know, and you didn't even have to get an appraisal. This was just the computer system. You, you know, we fed in a number and the number now you have 25% equity, not three, correct? Correct. And the appraiser says, I believe that without even saying a Sienna, uh, an actual appraisal, well, you know, so, so this has been a great run for housing values. If you own a, you know, that's not such great news if you're buying right, because the price of things, you know, keeps going away from you. And, uh, but the anecdote that I heard this week, I talked to three different real estate agents, um, all high volume agents. And what they're continuing to say is a, it's not like may and early June where we were getting, um, 12 or 15 offers on every, you know, nice house. And you remember the drill earlier in the summer and the spring was, Hey, you put the house on the market on a Wednesday as the agent, but you don't allow showings until the weekend. Okay, come on cattle call, come through this house Fridays, Saturday, Sunday until noon, and then make all your offers. And we'll let you know who the lucky winner is by, you know, three o'clock or six o'clock on Sunday. Those days are apparently taken a break because in my opinion, well, first of all, a lot of people did buy homes, but then some buyers just get fed up and said, no, I'm, I'm out. You know, I'll wait till spring. Um, so now they're telling me, anecdotally, uh, Hey, we're getting two or three offers on homes and it's that all happening, you know, right away. What are you saying? Did you get a reaction
Speaker 3:To that? Okay, so, so what's interesting because, you know, bird, I watch fails in my own neighborhood and I think the difference, um, if I was a buyer, not all three bed, two bath, 2,400 square feet homes or Cubs are created equal. And so I think that's the, uh, disconnect perhaps is, is a, a seller has sold a nicer looking home with the same criteria. And if their neighbor Aber, who has the same criteria also wants to sell it, that's that same number buyers look at that house and don't have the same name, um, excitement,
Speaker 1:Emotional reaction. You're breaking up a little bit there on your connection. I think David, or at least that's the way it sounds to me. I'm not sure if that's happening. Okay. So, um, the fact of the matter is the other report is when you get into that 600,000 and up range, it seems like that part of the market is even more soft is the anecdotal report, but it I'm told again, anecdotal, you don't have any numbers to back this up, but, uh, in that 250 and under range, buyers are still competing, perhaps not just with other people who want to occupy that home, but also with investors, uh, who might be looking to buy and flip the house or buy and rent. So it depends where you are, and it depends what price range you're in. So speaking of you know, home values, I want to share next a story on a refinance that we're working on of a construction loan and the particular conundrums that, that raises you're listening to the accurate mortgage and Realty show on am six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the accurate ed mortgage and wieldy show with Brian Wichert on WTMJ.
Speaker 1:Before we go get to my construction loan story. David, you were talking to me over the break here about how you're tracking values in your neighborhood and how property condition, all of a sudden matters a lot more, whereas before it was any property, any condition, any price point yeah. Bought the bill offers what's what's your anecdote?
Speaker 3:So, so, uh, some homes similar to Christie and I, our house, um, one that was listed. So like a five bed, three and a half bath listed for six 40 sold for 700, like, wow. That was, uh, it was pretty nice outside. And when, well, when did that close
Speaker 1:This summer? What was it like July? So it was like a mini sale July, but what was the condition of that house?
Speaker 3:It was, it was nice. It had been a redone. Let me say this. It did not smell like the nineties at all in that house.
Speaker 1:And by smell you mean look okay. Yeah. But,
Speaker 3:But, um, I think when, and in comparison to there's another home, like literally same style, same number of bedrooms, nearly the same number of square feet. That's started their listing in the like low, mid seven hundreds. And they have dropped that price to the mid six hundreds now, because obviously they just haven't gotten any bites because when you look at the pictures, uh, oh, awesome, honey, we just paid full price for this house and we need to, you know, do some improvements or make it look the way that we want. Um, again, same criteria, you know, same similar square footage, bathrooms, bedrooms, right. But you're not all dolled
Speaker 1:Up. You're not the, you're not the really choice listening. So the, you know, the other thing you point out, we just said in the first segment home prices in the last two years are up 21%. So just in case you didn't connect the bats, you know, that means that you probably have equity in your home. And we are doing a lot of cash out refinances while mortgage rates are low, um, to help people extract some of that equity to do things like remodel, you know, because maybe when you bought four years ago. Yeah. You know, we really do need to update the kitchen. Will you probably have the equity to do that now? And finance it with a really nice, low fixed rate. That's better than a, you know, a lot of people use a home equity line of credit, but they forget that that has a variable interest rate tied to prime. The prime rate is currently three and a quarter. And you know, the thing we got to remember, we're going to talk about this later in the show is, um, Hey, what's the fed up too, because you know, the economy is doing a lot better. A lot more people are getting jobs. We've got, you know, unfilled jobs. And boy we've been giving a lot of support to the academy with super low interest rates. Uh, what are they going to start raising the short term rate, which will immediately impact home equity lines. And people forget that before the pandemic, the prime rate was at 5.25, not
Speaker 3:Three. And I forgot that, wow, okay. Five
Speaker 1:And a quarter. All right. So let's just tee up this a refinance of a construction loan. So our borrower had gotten a construction loan a year ago, and now they're done with the construction and they want to pay it down from a jumbo loan amount down to the maximum conforming loan amount because they have subsequently sold their existing home. So they're sitting on a pile of cash. Okay. And so that means, Hey, we're trying to let them$548,000, 540,000 to 50 50 be exact. And so, um, and our rate at that loan level, when we locked them in, we were able to offer 1.9, nine and a 15 year fixed. There's just in construction lender. That was a no cost by the way. Oh my gosh, I, and then their existing construction lenders, like, you know what, we could give you 2.37, five. So of course you'd rather have the lower rate. Now what happened was we got the appraisal back and, and, um, it was, are you ready?$200,000 lower than the appraisal at the time of the construction loan,
Speaker 3:Did they forget to build a certain part of the house during the construction period? No, no devastating.
Speaker 1:It was insulting actually to the homeowner and I can understand why it's like, yeah. Um, how could you tell me that my house went down in value when Brian Wicker just said on the radio, you know, home prices are up 10% in the last year. Well, when we come back, I'm going to give you the answer to that. And also how we're going to probably, um, make lemonade out of this lemon. You're listening to the acronym, mortgage and real T show on Wisconsin's radio station am six 20 w T M J
Speaker 2:Getting you into the home of your dreams. Here's more of an accurate ed mortgage and Realty show with Brian record on WTMJ.
Speaker 1:Hey, by the way, we have a lot of important people are listening to our radio show, not just our wives and my mother, but I was at the WTMJ golf outing this last weekend, beautiful Locklear LaBelle golf course. And I'm sitting there in the cart. And next to me was Mr. Kerrick of Cara calms and also John Whalen. Who's I think the owner of cornerstone development, like, oh yeah, we listen to your show every week. Like I will make sure I do a good job. So we have a lot of, a lot of people in the industry. Listen. All right. So this is a, a story that's points out an interesting fact about the way appraisals have to get done. So we're talking about refinancing a loan for a homeowner who built their home and a little, I didn't check the exact date on the appraisal, but a little less than a year ago. Um, they got an appraisal. I'm just going to say the number seven,
Speaker 3:You ready to build to this was the appraisal. They, Hey, based upon your plans, this house is going to be worth X that's when it's done. So it's yeah, the cost
Speaker 1:Of the lot, plus the cost to build the house is actually 800. So the appraiser at that time came in and said, you know what? It's not really worth what you're going to pay for it. Um, and that was without the driveway and landscaping. And so, you know, I think you're already, you know, behind 50, oh, that's not a big number right at your 15 grand Lori, I know construction costs or whatever, blah, blah, blah. But now we come in a year later and our independent appraiser who we're not supposed to influence or try to tell them what this value is. They just look at the house, they go out and look through the subject property. And then they go look at the MLS and say, where am I comparable sales? They say 5 85. Well, that is a cold slap in the face question, David, what's the difference between what did the appraiser, who did the construction appraisal have that the refinance appraiser did not
Speaker 3:A year ago when the appraiser went out there and said, oh, what are you paying to build this house? Ah, this is the cost of all of those goods, labor and land. They had that number, that anchor and when the refi appraiser went out, you know, last week, refi appraisal on a refinance is not anchored to anything. You can't whisper three words to an appraiser on, Hey, I really want this to come in at 8 25. Can you make that happen for me? If you say that the appraiser's going to throw their flag on the floor and walk out
Speaker 1:Well, if we do that, for sure, but you know, the opportunity I think we missed because we just didn't think it could possibly be this far off is we should, uh, coached our homeowner. Uh, just like when the person does a major remodel, the investor or the appraiser typically asked him, oh, really? What did you spend to do this kitchen? Really? Not that there's ever a dollar for dollar, um, relationship between remodeling costs and value, but we could have coached our homeowner to say, you don't have to be sure to tell, uh, the appraiser what it costs you to build this place. And I think just because we'd been thinking it could possibly be this far off, we didn't even collect an appraisal deposit. We were, you know, so confident that, well, yeah, you just built it for this. Of course, it's going to come out for that. And so we ended up providing, cause you can't do this ahead of time, but afterwards we said, well, what about this address? And that address comparables from the original, uh, um, construction appraisal that we're not yet a year old. Oh. And the appraiser came back, said they're too far away because they were like 13 and 15 miles away. So the construction appraiser, because they were as you, so aptly put it anchored to the cost of 800, went out, seeking to support that value consciously or unconsciously. And they came up with comparable, you know, th they only had one comp from the same municipality, uh, that was still five miles away from the subject property. All the other cops were from different same county. Right. Because sometimes new construction is hard to compound, especially when you're toward the upper end. Right. There's just thinner. Yeah. And so, but here's the other kicker, the, um, all the appraisals nowadays folks get ranked by an artificial intelligence system, uh, from Fannie Mae and this one, the artificial intelligence look at the comparables that this appraiser used for the refinance and said on a scale of one to five with one being the most reliable appraisal, this is a one the cops you picked were excellent, said the artificial intelligence machine. So, all right. So, so here we are now. And, uh, you know, I'm, I'm getting involved because I, you know, I'm the chief problem-solving officer and this homeowner is righteously, you know, upset and not being a jerk about
Speaker 3:It, but righteous. Yeah, yeah,
Speaker 1:Yeah. And so I'm saying, okay, well, you know what, we, we could do another appraisal. We could, we could deny this loan. This is the advantage of working with an independent, like academic mortgage. I can deny this long. We can cancel your rate lock with the particular Fannie Mae servicer that we had in mind to deliver your loan. And we could start a new application and get a new appraisal, but I'm worried about the raw materials call comparable. So this buyer comes up with the idea says, well, I'd be willing to pay PMI for a short period of time. What that almost never happens. We'll continue with this story right after we turn it over to the 24 hour news center, don't break
Speaker 2:The bank to get into a house back to the accurate mortgage and Realty show with Brian Wichert on Delavan TMJ.
Speaker 1:So we're talking about this, a woefully short construction appraisal, and we're at this juncture, oh, wait, one other important detail. I'm looking at the appraisal on Thursday and I see a half completed in ground pool. And what do you know? Well, so for one thing, I then look at the comparable grid. None of the camps have pools. So the appraiser gave a$25,000 value, judgment, positive for a partially completed pool. All right. What's the problem with having a partially completed pool when it comes to a Fannie Mae loan David?
Speaker 3:Uh, well, uh, are we going to have to send the appraiser back out there when the pool's done? Is that well, yeah, it's a safety issue because you have a whole home round with no water with no water right now. And, and
Speaker 1:In this case, no fence. So I mentioned this to our very reasonable homeowner. He goes, well, guess what, it's going to be done next week. I'm like, awesome. And they're going to have a safety cover on it. So you can have an automatic, automatic cover that covers the pool. And then it's so taught.
Speaker 3:Second American family field is just, it just covers
Speaker 1:It covers, covers the water. And so I'm like, okay, that's awesome. Because that was going to be actually the deal killer is until that pool is done, I can't do anything. And then I think to myself, because right now, as it stands with the low, unfortunately low, but in a way justifiable appraised value, I only insofar as Fannie Mae's computer believes that, um, the only a 5% equity, if I get another 25 grand for the completed pool, now they got 10% equity in the eyes as low appraisal, which makes the mortgage insurance unbelievably cheap. Yeah. Because this person has excellent credit. It's a 15 year fixed. Um, and so the add on the add on, if you only have 5% equity is the equivalent of, are you ready? Point one, 5% of interest per year. So remember we're at 1.99. So that makes the effective rate. Um, 2.14, it's still better than what the construction lenders offering at 2.375 and get this though, the Morgan insurance automatically falls off after like 25 payments. That's if we only have 5% equity, if, if we get the boost on the value, which we're exploring right now, Hey, miss appraiser, uh, if the appraisals completed and we send you back out there, how much more value are we going to get? We're hoping for 25 grand, we didn't say how much we're hoping for, but that's what my guess is. Um, then the cost of the mortgage insurance is only like adding 0.09 and it only lasts for 17 months before it automatically drops off by statute. So luckily this homeowner also doesn't mind escrowing for taxes cause that's, you know, if we go down this road, so I think we're going to be able to take this lemon of an appraisal.
Speaker 3:My metaphor was going to be, I didn't know, you picked up, you know, leather making while I was out for two weeks. Cause you were making a purse out of a sow's ear when it comes to keeping this game plan together.
Speaker 1:But this is with, with the congenial help of the homeowner, because I was ready to throw in the towel, frankly, because of the pool. And they say, well, wait, that's going to be done. And you know what? He volunteered. I don't mind paying the PMI because can I get rid of it really quick? And I'm like, let me do the math on that. And then you want to know why is your firm?
Speaker 3:People will do a lot, if you can get them to I'm sorry, what was the interest rate that this bird was
Speaker 1:Getting? I would also do.
Speaker 3:I would also be congenial if I could grab that Swiss rate at 2 1 9, 9. That's pretty good with how much
Speaker 1:Income[inaudible]. Yeah. So it's, I think it's gonna work out. Although then when we, uh, Brad and I had the conversation to kind of go over this miracle plan of this is awesome. It's like, ah, but you know, I just hate the idea of paying that PMI. I just don't think I should have to like, okay. Um, you know, it's the, the math is the total. If we get the higher value and get the cheaper version of the mortgage insurance, it is going to cost you 1,072 of extra payments, but it's still lower than if you went with your construction lender by like an unbelievable amount of money over the life of the loan. So he's just letting his emotions kinda cloud the view right now. So I think we'll get to a acceptable solution. It's a, it's a fun business. It's like, it's like a job I use every day. The guy who invented Duco died by the way. So I feel like I'm solving a number of problems, Sudoku. Yeah. Yeah. That's what I'm going for. I, when we come back, let's talk about, uh, the news. We got the minutes from the federal reserve meeting at the end of July. And they're talking about how they're yep. You know what we're going to remove or unusual support for extra low mortgage rates. Sometime this year, we're going to start the removal of that. Let's talk about that and where interest rates are headed. When we come back, you're listening to the academic mortgage and Realty show on the biggest stick in the state am six 20. WTMJ
Speaker 2:Find a place to call home without the headache. This is the accurate mortgage and Realty show with Brian Wichert on WTMJ. All right.
Speaker 1:I almost started singing along there. That song put me through challenge, David. Yeah. Listen to the music has a banjo in it, by the way. Okay. So I'm the retired. How about the article in the wall street journal by our kind of friend of the show, Nick[inaudible] from the wall street journal who covers the fed now. And they were talking about, uh, how, uh, in their July meeting, they said to the Simpsons, you know, we're gonna start to pair back our purchasing of$40 billion a month of mortgage back centuries and$80 billion a month of long-term us treasuries, which they have been doing since March of 2020 reason they've been doing it is to help longer-term interest rates go down and stay down. And so now that the economy is getting better, better, particularly the jobs market, they're like, we don't need to do that anymore. So we're going to start to wean ourselves off that drug. Um, Fannie Mae also just came out by the way, with their latest economic forecast on Thursday, calling for the 30 year fixed rate to hang around 2.8 during the third quarter of this year in show up to 2.9 and the fourth quarter that's by the way, assuming that you're paying typically three quarters to a point in addition to the regular hard costs of refinancing and then inching up to 3.2, by the end of 22, pretty much still calling for the 30 year fixed rate to be a 3.7 by the end of 2022, but they haven't updated their forecast since the end of June with that context, master Wichert, Mr. David Wichert, dad Wichert, um, where did acronym mortgage end up the week?
Speaker 3:I'm going to go from memory here. Cause my computer of course decided to go on the Fritz just as you asked me that, but on a cashout refinance, I remember on a 15 year fixed a 2.5% and the APR is the same with wait for it. And it's the APR is the same because it's zero loan costs on a$300,000 loan. And Hey, I mean, you said at the top of the show home values continue to rise. Uh, and so with that comes the borrowing power of all that equity that's been built up in your home on a 30 year fixed. If you prefer 2.9, 9%, the APR is 3.1 bets because that comes with regular costs of$995. Um, and it wasn't, should we be doing an appraisal correction, which you go to prison? Exactly. And I think that's the, um, w I think our loan consultants get that question a lot, you know, Hey, will I need an appraisal? Do you know, does the appraiser have to walk through my house? And the answer is, we don't know until we gather up all of your information at a minimum, you know, the property address, your name, date of birth, social, you can tell us what your income is. And we will assume that the value you told us is, you know, uh, within earshot of reality, but own, we would look at answer. Yeah. But look online. I would say the more equity, the better when it comes to, uh, getting that appraisal waiver and especially more, if you're not taking cash out, then if you are taking cash out,
Speaker 1:So they just costs. Okay. So, so just a reminder to everybody, the Fannie Mae and Freddie Mac, the, you know, makers of the, uh, the rule makers, they, they say that cash out refinances are riskier. So the numbers, the rates David just quoted are, if you're pulling cash out, we can lend you up to 80% of the value of the home. And we can use either Fannie Mae's automated underwriting system. We do need to get your credit report to trigger the Fannie Mae automated underwriting system or the Freddie Mac. And so we have two kicks at the can for getting an automated value that works. Uh, but sometimes you get a better value if you send the appraiser out, you know, than we do on the automated. So we can lend you up to 80% of the value of your home. What if it's a regular refi, which is now, thank God the same as if you're buying a home. Oh, you're is your computer still dead?
Speaker 3:[inaudible] come on. I'm problem solving. So we could do, um, 2.8, seven, 5% on a 30 year fixed. That would be with just$995 in cost. The APR is 2.9 or, you know, this is what our loan consultants do day in and day out. It's like, okay, I can give you the, I can give you any flavor of interest rate that you like. Would you like the no-cost option though? Cause you know, to your earlier example of that construction, uh, refinance getting that no-cost option, um, uh, is I think it's the best option if only because, uh, getting down an eighth or another quarter, you don't get much for the investment of your closing costs, especially near right. Oh, uh, I think I, I looked it up on a 15 year. We could do 2.375 on a 15 year fixed with zero cost. That's on a$300,000 loan with 25% equity and all the other rights stuff. But that's amazing. That's amazingly
Speaker 1:Well, that is dirt cheap money. Well, and that, that in fact came up in a conversation. Well, two things, what can you do by pulling cash out? Uh, you know, obviously you can remodel. Secondly, we just ran into a customer of yours. I've shook their hand on Friday. They're taking cash out on their primary residence in Wisconsin. Why to use it, to buy a second home in Minnesota. So you can use your cash out to buy a second home. And that's going to lead us to our last story. A second home purchase in Florida, where in one of the storylines here is the buyers were thinking, well, should we put 200 grand down and get a 15 year fixed? Or, you know, we're not sure between that. And a 30 will clue you in on their thought process. When we come back, you were listening to the acronym, mortgage and Realty show on am six 20 WTMJ
Speaker 2:Expert advice on buying a home here is more of a accurate mortgage and Realty show with Brian Wicker on WTMJ.
Speaker 1:Oh, right. So I want to talk about a text that I got Thursday afternoon, 1999,
Speaker 3:Right. Iraqi had started. That's very appropriate. Anyway, thank
Speaker 1:You, Rachel, 1999 and another song that put me through college right there when I was playing that song and the band of magic, and this was one of our better songs. Yeah. I think that keyboard part. Okay. All right. So I got a text Thursday afternoon from someone I know who lives in Wisconsin, but has been looking without me knowing it for a second home and then greater Naples, Florida area for a while. And as often happens, all of a sudden, boom, this three bedroom, two bath condo comes on the market that we think we want to write an offer this weekend. Can you get us a preapproval? I'm like, oh sure.
Speaker 3:I fallen in love immediately. Is the chapel available?
Speaker 1:Yeah, yeah. Yeah. Well, we kind of started on this sooner, but anyway, um, I've got some personal experience buying a second home in Florida. So the first thing we had a discussion on was, you know, you don't know, there's no way anybody would know this, but there are four different offer to purchase contracts that you could use in Florida. Unlike the one and only Wisconsin offer to purchase. And the two of them you can use anywhere in the state. But then if you happen to be looking in Naples, the favorite that Naples realtors like to use is the Naples area board of realtors offered a purchase and they have two flavors. One I'll call the standard. Although they're standard contractors, by the way, does not include an appraisal contingency. And the other thing that's interesting is it does include a language for a home inspection, but it's a different legal dance. Oh, if I find problems on the home inspection, what happens after that is different than it is in Wisconsin. Okay. So just don't assume the things are the same in another state. That's true. Florida county. Yeah. Well, wait another county. My favorite version of the contract in Florida is one that's called the as-is contract that says I'm offering you this. And it doesn't, I don't care what it appraises for. I don't care about the home inspection, but I can cancel my offer anytime within 14 days and you and Mr. Seller are not obligated to make any fixes. It does allow you to get a home inspection done on this as his offer. But there's no predetermined dance lecture is in the I'm going to call it the regular nipple areas, board of realtors contract, which is designed to hold the deal together.
Speaker 3:Go ahead. Well, it's the, you know what, I'm not going to ask you for anything, but I can walk away if in, within 14 days, for any reason that I want, that is true. That's the given
Speaker 1:That's the give and take. But I, there were, we're not going to agree in advance to the dance of how to fix, uh, any inspections. So it's a hotter market still in the second home Naples area than it appears to be in Wisconsin. Okay. Because here's the kind of shockingly bad thing. Uh, they had to put in their offer. I think they put it in yesterday on, and then the word was, oh, Hey, don't the seller says, don't go giving me any of them as his contracts. We won't even look at them. Hmm. Okay. We want the regular one where we're going to bind ourselves at the wrist. And we're going to agree to this predetermined, subsequent dance of, you know, there's problems on the inspections. What are we going to do, designed to hold the deal together, by the way. Um, so
Speaker 3:That's an interesting place to start. Just like, Hey, we want to make sure that it doesn't fall apart. We're afraid if we take the as is, you're going to break up with us. It's like, I would, I would think I'm thinking to myself, like, what's wrong with your house. That was the first thing I thought.
Speaker 1:And then you got to go back on the market. Right? So the point is, the seller has hand, the seller has hand. And so it's like, oh, darn, we got to use the, not as his contract. Um, but then the other thing is like, we're going to look at all the offers. And then on Sunday we want each of you to come back and give us your best and final offer. It's like, what? Yeah. That is like,
Speaker 3:The final was my first one. Well,
Speaker 1:Right. And, and so in talking this over, these folks do have the ability to pay cash. And so it's like, okay, do we want to write with a financing contingency or not? This condo is like 22 years old, same age as accurate. And so I'm mentioning to him, you know what, I think your greatest risk. If I could get one contingency, I wouldn't go for appraisal. I wouldn't go for financing. I would want a home inspection so that you can find out the two things in Florida, wood destroying organisms, I E termites and mold. Those are the two things you want to be sure this 22 year old condo isn't afflicted with. And so that is the way they're going to write this offer. I still gave him a rock-solid guarantee. Pre-approval for their own peace of mind, but it's not part of the offer. We will have to give you an update on that story next week, because that's all the time we have for this week. Thanks for tuning in to the acronym mortgage in Realty show here on am. Six 20 WTMJ.