The Accunet Mortgage and Realty Show
The Accunet Mortgage and Realty Show
The Accunet Mortgage & Realty Show 8-18-24
The following program, the ENT , mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8. The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC, and not WTMJ or Good Karma Brands.
Speaker 2:Welcome to the Accu Net Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Accu Net Mortgage and Realty. And now, here's D Wicker and Tim Holdman .
Speaker 3:Good morning and welcome to the Accu Mortgage and Realty Show. I am David Wicker, managing owner, senior loan consultant and Chief client experience officer. My individual NMLS ID is 3 2 8 8 4 7. Joined today by one Tim Holdman, senior loan consultant whose individual N-M-L-S-I-D is
Speaker 4:1 5 9 3 1 4 6.
Speaker 3:Praise be , uh, if you've got a question or a comment, you can reach us on the WTMJ talk text line, which is 8 5 5 6 1 6 1 6 20. And as always, you can grab a podcast of today's show wherever you get your podcasts, Tim.
Speaker 4:Yes, indeed.
Speaker 3:So this past week was one of the two big data reports. The Yes. The other report is the monthly jobs number, which comes out on the first Friday of every month. Uh, but the report that was this week was the CPI, the consumer price index that came out Wednesday morning at 7:30 AM central time. And again, let us open our hymnals to Mortgage 1 0 1 and talk about that. Inflation is the enemy of interest rates. If inflation is high, if if inflation is at 6% and you've lent money at 5%, you are losing
Speaker 4:And losing money.
Speaker 3:And the lending world does not like to lose. And so we have been on this circular, this boomerang journey, <laugh> rates being low at the start of covid , then inflation hit and it drove rates higher. And now we have been trying, the Federal Reserve has been trying to bring inflation down. One of the ways in which we measure that is the CPI report that came in at 2.9% year over year ,
Speaker 4:Which is , and , and when that was where exactly where it was projected, basically to come back at. So it's not so much what the number was, is was the number higher than expected or lower than expected. Right? Right .
Speaker 3:Like, yeah, come on. We're talking about two different baseball games at that point, right? We're talking about what are the numbers and what did we expect the numbers to be as exactly just noted . Yep . So, so that report came out. And you know what, as perhaps I've said before, you know, we're slowly making progress on inflation. Like we're just getting less fat on inflation. But let's not, let's not congratulate ourselves that we are skinny, skinny inflation , and which I believe would technically be called disinflation de inflation, is the increase in cost . Deflation is the decrease in cost. Disinflation is, you're getting fatter slower,
Speaker 4:Right? Yeah. Which is, I mean, that's better than nothing. But it's like, to use the weight loss analogy, it's like if you're a hundred pounds overweight and you lost 10 pounds and congratulations, but you still have 90 pounds to lose and heaven forbid you, you know, drive fast Burger King on your way home and gain back the 10 pounds, which well ,
Speaker 3:So let's come on . Let's keep going down , let's go down that path, right? Because Wednesday, that report, and I wanna give a real life version of this. 'cause I had a client kind of mm , thinking about gambling with that report on Wednesday because, well, here, I'll just describe on , on the previous Friday, I had a client who was floating their interest rate. They had an accepted offer on a home they had not yet chosen to lock their interest rate. And so they were kind of subject to the ups downs and whatever. Hoping Yeah . Hoping to find that strike point where they're like, yeah, gimme that one. David
Speaker 4:<laugh> , I
Speaker 3:Want it. And so last Friday, here's what I said. I was like, let's look ahead next Wednesday. If the report is good news, David thinks rates will do nothing, because rates are hoping that the report comes in at that good news, right ? Mm-Hmm. <affirmative> . And , and so that cake is baked. Absolutely . 'cause markets absolutely like to get out ahead of themselves. So, but then if the report is hot, if it's bad news, if we haven't really tackled inflation markets, bond market will jump.
Speaker 4:We're gonna lose everything that we gained the week prior, basically.
Speaker 3:And so at like 7 38 on Wednesday morning, I was proven correct, not because, so what we're really saying is I should be a billionaire right here on Sunday. 'cause I was able to correctly predict what bond markets were gonna do. <laugh> , except, well , except it was a coin . This is blackjack is what it really is, right? Yeah . So my client locked before the Wednesday report.
Speaker 4:Good.
Speaker 3:And so for them, what was funny, then they locked Wednesday, the inflation report came out. Then Friday , uh, was a report that nobody would pay attention to. It's not even, maybe it's in the top 10 of like monthly data. It's retail sales.
Speaker 4:Yeah. It's a blip. Yeah.
Speaker 3:Retail sales report came in way above expectation. Again, Tim Doy , you said the expectation game, and that, that wasn't the inflation report on Wednesday or any of the other, you know, major reports. It was retail sales that suddenly markets were like, oh man,
Speaker 4:I don't , whoa. People are spending way more than we thought they would or should. And yes , rates are, rates are almost just looking for a reason to stay high, it seems.
Speaker 3:Exactly. So, so let's, I want to turn this into real life. Uh, you know, hey, I'm out there shopping for a house. So let's tackle that after this first break. You are listening to the Anette Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Welcome back to the ACU Net Mortgage and Realty Show. I'm David, that's Tim over there. Hello, Tim. Uh , we're taking the inflation report from Wednesday, trying to translate that into some real life, you know, both current clients with an accepted offer and some perspective clients. I have , I have two data points for you on that. Okay. So inflation report comes out on Wednesday. Markets mostly go shrug, <laugh> retail sales report comes out on Thursday, which any of our listeners, this might be the first time we've ever talked about retail sales in the history of the AED Mortgage and Realty Show.
Speaker 4:<laugh> . All right . First time for everything. I like it. But , but the
Speaker 3:Reason why 70% of the American economy is you and me and everybody listening, spending money, just
Speaker 4:Buying stuff. Yeah .
Speaker 3:And when you spend money that can push inflation, which is what happened, we put $5 trillion into the economy during COVID Mm-Hmm . And that had to all wash through the economy. And when there's an extra 5 trillion chasing the same amount of stuff that's gonna drive up prices. Yep . And so that retail sales report came out on Thursday, and we kind of all, were just like, ah , man, we're all still spending money. Does, does the American consumer actually have the money to be spending, let's not get into that.
Speaker 4:Debatable, yeah. It ,
Speaker 3:It is. The spending is happening and the spending will drive inflation. So that was a cold shower on Thursday. Yeah. And, and there remains, there remains a lot in front of us. What I wrote down was the , uh, the , uh, federal Reserve is set to meet in mid September. There are, I'm gonna at least point to three
Speaker 4:And and rates are gonna go down as soon as they meet. Right. David <laugh>
Speaker 3:<laugh> . Well, markets like to get ahead of themselves. And so I'm gonna point to three things that are gonna happen before then . Yeah . One, we're gonna get the PCE number, the personal consumption expenditure, which is a different tool for measuring inflation. And is
Speaker 4:February diff different than retail sales, by the way? Just totally different.
Speaker 3:Mm-Hmm . <affirmative> . Okay. Hey, how's that gonna look? We're gonna get the, then is the Jackson Hole Symposium in Jackson Hole, Wyoming, which is the Woodstock of central bankers.
Speaker 4:Yeah. The, the Woodstock of , uh, of people in finance <laugh> . Exactly.
Speaker 3:And so Chair Powell's gonna speak , uh, at that. I think that's actually on the 23rd. He's gonna be speaking. Okay. All right . Yeah . A lot of people , people are gonna hang their hat on every turn of phrase from that speech. And then the , uh, jobs report in the early part of September comes out to tell us, Hey, how many jobs did we add ? Mm-Hmm . <affirmative> or not in August,
Speaker 4:Which I , go ahead. Well, I was just , maybe you're gonna say the same thing, but literally all those things you mentioned will probably have a bigger impact on rates than the actual Fed rate cut that is coming Yes . Later on in September. Well,
Speaker 3:And so as I, as I noted in there have been a lot of headlines, Hey, rates this, rates , rates that, and for our listeners, if you are reading it on Yahoo News, it's already three days old.
Speaker 4:Yeah . It's already raw information. If you're
Speaker 3:Reading it, if see , uh, somebody on TikTok , that data is a week old. Mm-Hmm. <affirmative> .
Speaker 4:And , and they're probably telling you to use the 2% equity in your duplex to buy another duplex <laugh> to get rich and retire at Yes . 29.
Speaker 3:Come on, set that aside. But, but this is, again, and we've talked about data is talked about this, and we've talked about this all the time. When the Federal Reserve sits down at whatever table they sit at and they decide what they decide with the one rate that the market has already baked that in. Yep . It's all , we're already there. And so it's kind , it , by the time the Fed is meeting in September, it's a nothing sandwich.
Speaker 4:Right. And I'm sure so much like myself, I'm sure David, you're having conversations with people who maybe we've helped buy a home at some time in the last year or two, and they're like, oh , David, do I refinance now or do I wait until that rate cut in September? Right . So can we maybe , and maybe we'll go into the next segment on this, but can we give our, now it's not a one size fits all answer, and I've already had different answers to different customers. 'cause it depends on your credit score, your equity position. Yeah . Your loan size. Right? Yes . The um, but in general, and , and you can put your own version on this, but what I'm telling my customer is I will literally, any day you contact me, I will price up what you could achieve as of that day. Yep .
Speaker 3:And at what cost
Speaker 4:And , and at what cost For sure. And then it's a matter of are you happy with that or are you not happy with that? Yep . Truly. Because we can always run it back later if, if we get further improvement. But the question I want everyone to answer for themselves is, compared to your current rate and really monthly payment, right. Because that's what a refinance gives you, release a relief on is the monthly payment. Yep . Is that new monthly payment that I just quoted you, are you happy with that compared to the current one? And if, and then it's an easy yes or no question. Are are , are you given slightly different , uh, guidance on your end? David?
Speaker 3:I just am always humored. 'cause it's what you're really describing, Tim, is burden of hand too in the bush. It's like, I can give this to you now, and I just enjoy learning something about my client . Each individual client. Yeah . Do they like the blackjack? They're like, no way, Tim, I want double down. Let's , I wanna see if race go
Speaker 4:Lower. Let's split it. Yeah . Hit me. Let's , by the way, that the burden in the hand too in the bush, I , I'm reminded of , uh, a great , uh, your , your mom. My mother-in-law. Becky is sometimes famous for misquoting sayings. And she said one time
Speaker 3:She customizes,
Speaker 4:Yeah . A burden in the hand is worth a penny earned is what she used to say. So <laugh>.
Speaker 3:All right . I wanna, I want to turn a lot of this. Hey, Tim, David rates down. Rates up. Like, what does that mean for how much house can I buy and my monthly payment? Uh , let's, let's turn this into, I'm out there this weekend looking at houses. Tell me how this impacts me. Uh , after this break, you are listening to the Acuate Mortgage and Realty Show on AM six 20 WTMJ getting
Speaker 2:You into the home of your dreams. Here's more of the Accu Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Thanks for hanging out with us. This is the ACU Mortgage and Realty show. Tim, I was describing, or I wanted to put two , uh, real life, you know , hey, movement of rates. What does that mean? Yeah . And I had a client who was floating, and the, the payoff of floating is not nearly as satisfying as you might hope that
Speaker 4:Almost never. Yeah.
Speaker 3:Well, okay. If you wanna borrow $300,000 Right. And, and you are floating if you are right and rates come down an eighth,
Speaker 4:Oh baby,
Speaker 3:You can pour that glass of champagne for your spouse and say, honey, I was right. And we're gonna save $25 a month on our $300,000 mortgage.
Speaker 4:So after four months of savings, you can pay for that bottle of champagne <laugh> that you just
Speaker 3:Bought . That's a nice , that's a, that must be a dumb area . Four months . How many months ?
Speaker 4:I mean, I don't dunno . It depends on what champagne you're buying.
Speaker 3:Well, but, and think about it the other way too. Right? And, and someone smarter than us has described that losing is three or four times worse than winning because Mm-Hmm . <affirmative> , if you're floating and then, oh my gosh, clinch, my rate went up in eighth on our $300,000 loan, it's gonna cost you 25 more dollars per month.
Speaker 4:Yeah. Or if you really want to preserve that same rate, you're gonna pay more cost . Right. Which, like, that's not a fun feeling either. No. So it's, it's kind , it's a similar parallel to the conversation we talked about in the last segment, or maybe it was two segments ago, which is when do you decide to refi versus when do you decide to wait? It's like, if rates are lower and we show you that, you know, I'd always, almost always recommend just take the , the bird in the hand. Right? Yeah . Because it's like, and then if that goes away, the feeling of it going away is three x worse than the feeling you get of like, oh, I waited and it rates dropped another e <laugh> or another quarter
Speaker 3:I did it . Right . Well , and, and for anyone who's playing games with home prices, A, a , a you're losing. But b like in Southwest Florida, how do you catch a falling knife? What ? Oh, oh. Home values are coming down in whatever municipality in Florida and like Mm-Hmm . <affirmative> , let's not even say coming down, I'm making this up. Home prices are coming down. Okay, well , well, when are you gonna step in? When are you gonna Yeah , exactly . This is like to time the stock market, it's like, oh , market's down 15%. It's like, are you getting in? Are you gonna wait till it's 16? Are you gonna wait till it's 17% down ? Like, when are you stepping in? You don't know.
Speaker 4:Yeah . And this is , people
Speaker 3:Always have confidence. People always have confidence Right. Before they have to reach out and catch the falling knife.
Speaker 4:Yeah. It's, and I know, like, I've talked to customers and I'm sure you have too , where they view this as almost like a , a game to a certain extent. Go, go find a different outlet for the, the , the financial games you wanna play, whether it is stocks or something else. Right. Because like in, in real estate, the re it's more about the real life of like, Hey, do you , when do you wanna get into this neighborhood? When do you want to get into this house with the extra bedroom and bathroom and stuff? But the finances are a big part of it, but it shouldn't be your main determining factor of like, oh, well the, let's use the Florida real estate market. Yeah. Inventory is way up. Prices are dropping. So now at what point now ? Yeah. It's like, now I'm gonna go and buy that vacation homeowner , now I'm gonna go move to Florida. It's like , can I, yeah, go ahead.
Speaker 3:Can I tell you this? Uh , this is in the weeds, but I , our listeners, they're here for it. The smartest thing that I read this week is think of real estate. Stop thinking of real estate as investment. And think of it as consumption that you are buying a home. A home is actually a terrible investment. When you actually categorize like the cost of upkeep and, and all that. And property taxes and like things you don't get back.
Speaker 4:It's, it's better than renting, but it's a low bar.
Speaker 3:So, so, but think of your, think of your home. The reason one of the north stars of the American economy is, hey, you know what, if we put people in houses, then they'll go spend money. And 70% of the American economy is people spending money on a new lawnmower, a new couch, a new HVAC system, which drives the entire economy.
Speaker 4:Think of all the industries that have been started and have maintained themselves because of home ownership. Exactly. It's a lot.
Speaker 3:So that was the smartest thing. And uh , and so here's my other, my little cherry on top. Tim rates go down a quarter. If you want your payment to stay the same, you could borrow six to 8,000 more dollars because rates went down a quarter. Yeah . But I, I have crummy news. So can everybody else
Speaker 4:<laugh>? So it's gonna drive up , it's gonna drive up home prices is what you're saying? Theoretically,
Speaker 3:It's not gonna slow 'em down, let's put it that way. Yeah . And so your rarely do I see clients limiting themselves. Ultimately, if you , if I can give you, if rates come down , uh, half and I , and you can borrow 16,000 more dollars at the same payment, I think a lot of clients are going to then try to reach for that next neighborhood, that next house, that next wherever they want to be . Extra this, extra that in a house for sure. And so is everybody else. And so as always buy a house 'cause you want to live there.
Speaker 4:Yeah. Not because of rates.
Speaker 3:Exactly . Alright, so let's get into some real life stories after this break. Now it's time to turn it over to the WTMJ Breaking News Center.
Speaker 2:Don't break the fact to get into a house. Back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 4:Welcome back to the ACU Mortgage and Realty Show. My name is Tim. I'm a senior loan consultant at ACU Net Mortgage, joined by David Wicker , uh, senior loan consultant, managing owner , uh, son of Brian . All the titles. Yes. Um , David, I got a really good story to share. Uh, we'll get away from the rate talk. 'cause you know, I think after a while , people , that's
Speaker 3:Not why people buy houses.
Speaker 4:People glaze over a little bit because of that. So I want to talk about , um, uh, a married couple that have been renting in the TOSA Village area for a handful of years and they want to grow their family and , uh, they want to find a house in a very specific area. Mm-Hmm . <affirmative> that they, you know, they wanna live in. And of course, it's in an incredibly competitive area.
Speaker 3:These are real people. You're not just like telling the story of you and Grace, right?
Speaker 4:No, no, no, no. These are real folks. Uh , refer their , uh, is a Milwaukee firefighter who I, I love working with , uh, referred from from my brother. And , um, I first connected with them I think last year. And they had a , uh, they knew of a lady who wouldn't , was maybe considering selling the home to them as a for sale by owner. Mm-Hmm . <affirmative> and things kind of fell through. And ever since then, I'd check in with them once every couple months, but nothing was really moving. So he , uh, calls me on Thursday. He's really excited. He said Tim, over the last year, my wife and I have been literally just writing letters to people , uh, to addresses that we walk past on and our neighborhood walks with our dog. And we've been doing this for literally a year. And someone has replied and it's a lady who owns a house literally right in the neighborhood that we want to be in. And , uh, she doesn't live there. The house has been vacant for years, but it holds a lot of sentimental value to her,
Speaker 3:This property . And we are ready to fill that sentiment for her
Speaker 4:Yeah . With this brand . Well, and, and , and she and she said she's like a bunch of flipping companies have come calling over the years. Yeah . And she hasn't sold to any of 'em . 'cause she wants a family to move in there, you know, and make it their own and, you know, make memories there and all that good stuff.
Speaker 3:This is second shout out to mom. This is the Becky Wicker protocol, which ,
Speaker 4:Oh , Becky's gonna love this story. Yeah .
Speaker 3:I wanna sell this house to someone who has David and Grace. Yeah . And they're gonna raise them in this house.
Speaker 4:Yeah. She doesn't want to get Goed on price, but getting top dollar is not this lady's priority. No, it is , it is not her . The the biggest thing. And , uh, so , uh, my , my client said, I , I've been literally, we've talked on the phone for hours and I, I believe him 'cause he's a , he's a chatty guy too. Sure . And , uh, you know, he's like, I , I think she just wants to sell to us. Yeah. And we've, we've seen the house once, you know, need , needs some work. Right. Because it's been sitting for, I think he said 10 years fine since anyone's lived in it. Yeah. And he's like, we saw it in the dark. We're going back on Saturday to see it again. She's gonna meet us at the property and at that point I'm gonna find out what she wants to sell it for. 'cause I don't even know the number yet. Mm-Hmm. <affirmative>. I was like, I was like, awesome. I was like, let's call this guy Bob. His real name isn't Bob, but I need to put a name to this guy. So I said, Bob, this is super exciting. Let's take it one step at a time. Mm-Hmm . <affirmative> . Because, you know, his concern is obviously what's the payment gonna be and balancing that with how much work am I gonna have to put into this property? Yeah , right .
Speaker 3:That's
Speaker 4:Fair. Yeah. And he's, he's a , a handy guy. He said he grew up with his dad working on houses and flipping houses and stuff. And this is pretty common for firefighters to have a <laugh> second or third job. Yeah. Um, so I believe him when he says that he can do a lot of the work himself. Well , I think so that's a plus to him,
Speaker 3:To , to your point, it's like, I can do the work. It's how much , how much work do I want to take on?
Speaker 4:Well, right. And this is a key difference. I mean, this, this matters to people. 'cause like for me and you, I would much rather pay someone to do the work than me spend time doing it. 'cause I might be able to figure out what's gonna take me about four times as long as a , as a professional Right . To do pretty much anything. Yeah, it will . Exactly. So that's a difference. Uh , that's gonna vary across all our , all our customers. But , uh, I said, Bob, when you see the property, number one , uh, let me know what they're thinking for price and I'll cook up some monthly payment estimates. Yeah. On the spot for you Yeah. To kinda give you that confidence. But I said, Hey, this is super cliche, but the one thing you cannot change about your home buying journey is the location of the property. Ding, ding, ding. And I , and I said, Bob, I know exactly where this house is. I've walked past it. I've been in this neighborhood. It's a great neighborhood. You would like living here. Yes. So, I , I want to pause here and after this break, we will get into the rest of the story because , um, and, and I'll probably update more on this next week. Yes . Because we , we'll be co-hosting one more time together before Brian gets back. But , um, there , there's more to this story regarding the decision of whether to buy or not. So I , I want to , uh, go into the next segment with it. Uh, you're listening to the Accident Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Important home buying questions and answers you can count on. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ. Welcome
Speaker 4:Back to the ANet Mortgage and Realty Show. Uh, you are with David and Tim , uh, today as you were last Sunday, and as you will be next Sunday. 'cause Brian is off , uh, on another continent , uh, uh, enjoying himself. So we are , uh, stepping in. Uh, David, I just want to wrap up , uh, my story about my client, Bob as we'll call him. Uh , the first thing that, you know, Bob and his wife are in it to win it. I mean, they are. Right . How many
Speaker 3:Letters did he quantify? How many letters they have written? Was it like I did
Speaker 4:Five ? I didn't ask. I didn't ask, but I will ask him. 'cause I , you know, it's like that's a great idea. Honestly. You know, I , I don't , I think that's an underutilized tool. It's like if you, if you really are serious about moving into a specific neighborhood, there's no harm in doing that. It's literally my asking is for free motto in action. Right. And there's no guarantee it was ever gonna pay off. They, they weren't banking on this, but it , it may, it may pay off. Frankly,
Speaker 3:As Michael Scott quotes, Wayne Gretzky, you miss a hundred percent of the shots
Speaker 4:Don't take anonymous <laugh> Michael Scott and playing Gris . Yeah. So if
Speaker 3:You , if you don't write a letter, this lady would never have known that you were interested.
Speaker 4:Right. And Bob's concern is a common one. He said, Tim, I'm worried I'm gonna pay a lot for this house and then have to do a lot of work to it. And at the end of the day, it's gonna cost me a lot of time and money to fix it up. And then I'll have a mortgage payment that I don't like. And all those things, which those are all legitimate concerns, right? Mm-Hmm. <affirmative> and we, we talked that really the location is phenomenal. And that's the one thing that no, no amount of money is going to improve. And he has the ability to do a lot of the work himself and, you know, frankly, the most likely the time as well. So the monthly, the and ,
Speaker 3:And over a timeframe of his own choosing then as well .
Speaker 4:Exactly. Yeah. Yeah. The , the home is vacant and they're renting anyways , so they Yeah. They don't have to move in. They don't have a property to sell that they have to get out of by a certain date. Yeah. You know, so they definitely have flexibility there.
Speaker 3:Well , and , and I mean, like, they move in, it's like, yeah, would it be nice if the carpet and the walls were all done? Sure. But like, if it takes you seven months, well at least you're in the house.
Speaker 4:Well, and the silver lining, and I, I did tell 'em this on Thursday. I said, listen, if this house was even moderately fixed up or moderately renovated, you would be paying a lot more for it. Yeah.
Speaker 3:Yeah.
Speaker 4:Right. I mean, this is kind of the only way to get into the hottest of the hot neighborhoods. Yes. Unless , unless you're loaded. Right. Which, that's a whole other conversation. But buy
Speaker 3:Ugly.
Speaker 4:Yeah. Yeah. Because you, you'd be amazed what you can do on your own to make it look like those houses you see on HGTV. But the key is to buy it when it doesn't look like that. 'cause then you'll probably get a, a better price, you know? So , um, there , there will be more updates next week because ultimately they , he has to find out what amount this lady is going to ask. But, you know, we've already established that she isn't looking for top dollar. She wants to sell it to them. He literally said she wants to sell it to us and us only. I was like, that's phenomenal. Uh, so I really hope it works out for Bob and his wife. Uh, you know, it , it's something that they've been striving for, for a long time. So I, I hope it works out.
Speaker 3:Uh , if it, if it were me , uh, any nearly any price that she says, if it were David mm-Hmm . <affirmative> , I would say, okay.
Speaker 4:Well, and I told him , text me literally Saturday when you get the in number and I will text you back it within a half hour with what the monthly payment would be like.
Speaker 3:And as we quantify for clients all the time, I have no, I have no idea what you're , but if it's $20,000 more than whatever number was floating in their mind Mm-Hmm.
Speaker 4:<affirmative> . Right. As
Speaker 3:You have said, and as I have said, that's not a $20,000 decision for you. That's a payment decision of $140,000. And so you look
Speaker 4:A hundred a hundred , not 140,000. A hundred $4,000 . There you go. $140 . Yeah.
Speaker 3:140
Speaker 4:Bucks . And that's so much less scary. That's so much less scary. Right. Oh,
Speaker 3:Well, and as you said, what are you willing to, you know, give and take on, on price and location and Mm-Hmm. <affirmative> and, and making it your own too, right? Yeah . Part of the benefit of buying ugly is then you get to pick the hardwood floors and you get to pick the paint color and , and
Speaker 4:The cabinets and the fixtures and Yeah. Everything
Speaker 3:And at your own pace. And so it's just the, what, what I hope your clients carry with them into their conversation is not this like drunken, we will say yes to anything. No , uh, approach. But like, okay, think of it this way, honey. If we can't stomach the number that this lady says, how many more letters are we gonna have to write? And how many more months and months and months are we gonna have to wait if we hope that this strategy works again,
Speaker 4:Again. And what are home value is gonna look like at that point? And yeah, it's right. I i, I think that I , I would be really surprised if on Saturday they don't arrive at at least a verbal agreement. Okay . And the nice thing is it's like, you know, I'll be able to guide them through the rest of the process and make the numbers work out and hopefully help them budget , uh, some money for, for the renovations right away and, you know, all those things as well.
Speaker 3:Alright . That was an awesome story. Uh, I want to
Speaker 4:Updates next week for sure. Updates
Speaker 3:Next week. I want to talk briefly about the new world that arrived on Saturday for our realtor friends. Mm-Hmm . And home buyers and home sellers. Let's get into that a little bit after this last break. You are listening to the NT Mortgage and Realty Show on a six 20 WTMJ.
Speaker 2:Find a place to call home without the headache. This is the Acuate Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Thanks for hanging out with us again. This is the Acuate Mortgage and Realty Show . Tim, you wanted to take a 22nd victory lap on your client who closed on Wednesday?
Speaker 4:Yeah, just , uh, the, because I , I'm horrible at remembering to do follow-ups when I do subsequent radio show , uh, hostings. But the story we talked about last week , uh, where we needed to do an eight day close, we did it, we did an eight day close, woo , uh, eight , eight calendar days, which legally is the shortest amount of time you can close on a Fannie Mae loan anyways, from the application date. Uh, but very happy customers , uh, got 'em in , uh, enclosed on Wednesday. Uh, so just wanted to , uh, follow up and prove that we did what we thought we were gonna do. Boom.
Speaker 3:Kudos to you. Kudos to the ACU net , uh, operations team, Mr. Jason Hansen at, at all , as they say it , solo and ensemble. So the world changed on Saturday, Tim
Speaker 4:Yesterday. Yeah.
Speaker 3:And it changed per the National Association of Realtors settlement per the lawsuit in Missouri. Mm-Hmm . <affirmative> Halloween of last year, generally called Zer . And is, here are the three paths, Tim. Either everything's gonna change, nothing's gonna change, or something's gonna change.
Speaker 4:Something will change. Yeah . And no one knows what the answer is to that question yet, by the way. How ,
Speaker 3:How's it about this? I think it'll be all three because
Speaker 4:Whoa , go on. Explain.
Speaker 3:Well, this is what we do. I pick up the phone and I start calling real estate agents who I like, who I respect, who do a lot of business to understand, okay, well you're in it. What are you literally doing? And advising clients as they go to buy, as they go to sell. And I'm gonna , and those are
Speaker 4:Two very different scenarios by the way. I just wanna point out, if you are, depending on which side of the table you're on , your protocol and advice are going to be, are going to be different for sure.
Speaker 3:And I , I kind of , I'm gonna give a non headline here on Sunday morning . Okay . I don't know , but
Speaker 4:That's an honest headline. But
Speaker 3:The reason why we don't know, and perhaps one of the through lines of the settlement in the first place is to make it a topic of conversation. Sure. And I have had many real estate agent friends point out that in Wisconsin, it is very clear what compensation is on both sides of the table. It's just now we're gonna talk about it even more per the categorical settlement.
Speaker 4:Sure .
Speaker 3:And it's really, as we talk about per like sub micro nano market , it's really gonna depend house by house.
Speaker 4:Yeah.
Speaker 3:And, and ,
Speaker 4:And how much and how much competition there is on that house. And the, the scenario that I think, and I don't know how often yet this is going to come up, but correct me if I'm wrong, David, when a, a buyer decides to hire a buyer's agent Yeah . They have to rent, enter into that written buyer's agency agreement deciding the compensation that that agent will receive ahead of going out and making any offers on a home. Correct.
Speaker 3:That , that is how I understand it. Yes.
Speaker 4:So in that scenario, the risk is I've agreed to, I've hired Bob, my realtor, I've agreed to pay him 2% of the sales price as his commission, and I wanna write an offer on a super hot house.
Speaker 3:Yeah.
Speaker 4:And there's 10 offers. Yeah. And the seller at the vice of their agent has said, I'm only gonna pay a buyer 1% because I feel like that's all I need to in order to sell this house. 'cause I have so much interest. Yes. I'm , I'm beating people off with a stick trying to, you know, buy this house. Yeah. So then it's like, well now you're in the tough spot as the buyer where your agent's only gonna get 1% from the seller, but you've already agreed to pay them 2%. So where's the rest of that money gonna come from? That's the, that's the boogeyman.
Speaker 3:And let me just in defense, if I David were buying a house, I, David would pay my agent directly because I want a, I pay for good advice. Yeah .
Speaker 4:You are a rock star .
Speaker 3:It's worth it . Yeah. Because it's worth it to me. And , and I don't want that to be part of my negotiation if it's me, David. Yeah. And there's gonna be a whole spectrum of buyers who either Mm-Hmm . <affirmative> can, can't, willing, unwilling,
Speaker 4:Or won't Yeah.
Speaker 3:Right. To give the value, to understand the value that they're getting out of their representation as a buyer. And so it's a lot. It's only Sunday. The New World was
Speaker 4:Only yesterday . Yeah . Is just begun. Yeah.
Speaker 3:I'm just curious, as we connect with clients, even like this week, is it, what kind of shift? Is it gonna be something, everything
Speaker 4:Or nothing? Yeah.
Speaker 3:Or all three.
Speaker 4:Yeah. So we will update, you cover that from the front lines. From the front lines
Speaker 3:As we always do.
Speaker 4:Yeah. As we have conversations and learn more about the, the new world that began yesterday.
Speaker 3:That's all the time that we have today. Tim, thanks for hanging out. You of course have been listening to the Accu Net Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 1:The proceeding was a paid program. Advice and opinions expressed during the Accu Net Mortgage and Realty Show are solely that of the host or guests of academic mortgage and Anette Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.