Speaker 1: 0:00

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. 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: 0:39

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 Brian and David Wickers.

Speaker 1: 0:53

Welcome to the Accu Mortgage and Realty Show. I'm Brian Wicker, licensed real estate broker with Academic Realty Advisors and also the majority owner of Academic Mortgage, where my individual NMLS ID number is 2 5 9 6 1 0. Along here today with my son David, who's the president of Academic Mortgage. And his individual NMLS ID number is 3 2 8 8 4 7. And remember, if you want to get a podcast at today's show, you can do that wherever you normally get your podcasts. You can also send us a , a call or text us a question on the WTMJ talker text line, which is 8 5 5 6 1 6 1 6 20. So David, I've got the , um, November home sale numbers. Mm-hmm <affirmative> . In my hip pocket. Uh, but before we get to that, let's , um, do a quick review of the jobs report. The big one of the two big monthly, two or three big monthly economic reports that comes out. And it came out on , uh, Friday , uh, the 6th of December. Uh , and we care about the jobs report in the mortgage industry because if the numbers are weak , uh, there's a possible economic recession on the horizon. Yep . That's what we think. And mortgage rates could go down. That's exactly what happened in August, after a week July , uh, jobs report. And, and conversely, if the jobs report is strong like we had in I think September, well then we think, oh, there ain't gonna be no recession and maybe the economy's gonna keep rolling along. And, you know, more jobs mean more people with more money to spend. And that means more demand for goods and services, which can drive up prices. That's inflation, which is Yep . The arch enemy of interest rates. So what did the Bureau of Labor statistics have to say about the employment situation in November, David?

Speaker 3: 2:35

So the forecast was in November, the American economy forecasted to add about 200,000 jobs. That number came in at 227,000 new jobs added to the economy in November. Uh , just for reference, the October jobs report came in at 12,000 originally. That was revised up to 36,000 markets. Were okay with this, you know, jobs report on for November , uh, on Friday. I think, dad, the disconnect that I saw was in looking then at the upcoming Federal Reserve meeting on in mid-December, December 18. Yeah. There is still, at the time that I was looking at this, an 87% likelihood that the Fed will cut its one Fed funds rate by a quarter at that meeting, which to me seems silly. Like why

Speaker 1: 3:46

You think that they should hold off? You're thinking that , that they would , they could rationalize holding off

Speaker 3: 3:49

If the economy is strong, why do you need to bring relief to a strong economy? But it seems as though markets are expecting this Christmas present and they are unwilling for Santa to take it away right now. Yeah .

Speaker 1: 4:06

Santa Jerome. Yeah . Well, and you know what, just remember folks, if the Fed does cut rates by a quarter percent, it'll do absolutely nothing to mortgage rates. Right. 'cause that's already baked into the cake. So , um, you know, just another little side note, I always like to look at the number of people who are working. Yeah . And that number is 161,141,000. That's according to the household survey. Yeah . Because the other that the household survey gives us the unemployment rate , um, the payroll data that you were just talking about comes from a , uh, collecting data from big payroll companies and actual large employers. But then they do a telephone survey. And that also gives us the employment participation rate, which was 62.5% down just a SCHs nibble in November. So 62.5% of the possible workforce in America is working and then almost 161 million, 141,000 people. So what should have happened based on , uh, on , on the report today? What should have happened to mortgage rates?

Speaker 3: 5:06

Mortgage rates should have gotten worse, right? Because to what you began with, wow. Lots of more people have jobs. They are spending money, they are chasing the same amount of goods that is going to drive the cost of those goods up. That's inflation. Inflation is the enemy of interest rates.

Speaker 1: 5:23

But you thought you'd have predicted rates would go up. I was gonna say that the numbers, the way they came in were pretty much at expectation. So I was gonna go for a yawn flat.

Speaker 3: 5:32

Okay .

Speaker 1: 5:32

And instead , uh, mortgage rates got a little better. Yeah . Uh , if you were looking at a , um, to buy the median sales price home, I'll give the tip on that in November, that was $335,000 in the five county metro area, and you were putting 25% down, looking to borrow about $250,000. We could have snagged you a rate of 6.625%. Uh, again, that's if you have all the right stuff. And that's an a PR of 6.66. Uh, that's one measurement. We could have also gotten you a 6.875% rate , uh, with an a PR of 6.88. And that would've come with a little lender credit of $400. So rates got a touch better. And I think that's because the market was baking in a stronger jobs report. That's my theory. No , there's no way to prove

Speaker 3: 6:20

That. Okay . So it was bracing for bad and then when it was okay, it was like oof .

Speaker 1: 6:24

O Yeah. A little, little sigh of relief. Okay . Alright. So that's, that's , uh, so the good news folks is we paid Dodge another major economic , uh, report that could have sent rates higher. Yeah. We're kind of staying in this decent zone, you know, in the mid to upper 6% for 30 year fixed rate, which is fine and dandy. Let's , uh, turn the page now and when we come back, we'll talk about November home sales and then we'll see what you are seeing. David, on the front lines of mortgage lending, you are listening to the ANet Mortgage and Realty Show on AM six 20 WTMJ

Speaker 2: 6:59

Home buying advice from the guys who know it best. This is the ACU Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 7:08

Welcome back and thanks for joining us today. I'm Brian Wicker, the elder. That's David Wicker, the younger over there. So David, I , uh, ground the numbers for , uh, home sales in the Metropolitan multiple listing service database for the month of November. And this is for single family detachment condos in the five county metro Milwaukee area. Mm-hmm <affirmative> . So let's take a , take a look at the number of home sales first. And, you know, we always like to compare this to something. So let's compare this November of 2024 to 2023. And are you ready? There are two more home sales this November compared to a year ago. Yeah. Up two . And , uh, that means that 1,379 homes changed hands with the help of a member of the National Association of Realtors. Now, if we compare that to November of 22, a different comparison. Well now this last month was 22 fewer, but again, I'm gonna call that close enough. Yep . Uh , but if we go back and compare it to November, 2019, the most recent pre covid November, we are off 13% or 200 and few fewer sales this November compared to , uh, November of 2019. Now, check this out. The median sales price this year , uh, November $335,000, which is 30 grand higher, or 9.8% more than a year earlier. And remember last week, if you wanna pull that podcast folks, we had the more precise , uh, home price appreciation numbers from the Federal Housing Finance Agency, the median sales price numbers , a much more blunt instrument. Uh , last month's median sales price was 50 grand higher than November two years ago. 17.5% more. Now, are we ready for this? You want to guess how we compare November median price this year to 2019, which is five years ago? What do you think? Dollars or percentage? Your pick ?

Speaker 3: 9:00

It's gonna be a big number like Yeah . North of $50,000, right?

Speaker 1: 9:04

110. $110,000 more. That's a 49% increase, which sounds huge. Mm-hmm <affirmative> . Because it is. But another way to look at it is if you just do the compound annual rate of growth, it's 8.2% per year over five years. So that doesn't sound as crazy.

Speaker 3: 9:24

I'm not sure that that's the level of comfort that you, you know, would hope a , a current home buyer to , you know, could view it as

Speaker 1: 9:32

Yeah, I , I agree. It's , it's a big number. And of course rates were lower in 2019 as well. Yeah. Alright . What about listings? Realtors listed 1,288 single family properties, condos, and single family detached in the five county area last month. That is a little less than a year or , uh, earlier in November, 91. Fewer. That's kind of typical for November, by the way. Yeah. And , um, if you compare it to 2019, we're off by 9.7% or 139 properties. But I wanna say this in the big picture with all the interest rate lockup, right? People don't wanna move because they've got locked in low rates. We're only down 9.7% in listings this November compared to November of 2019. Oh, that ain't so bad. No. In my, in my book and, you know, sales are off 13%. Ah , hey, we

Speaker 3: 10:24

Still sold . That's a nice, that's a nice way of saying Brian would've thought that it would be a lot worse on listings. And you know what a single digit difference is not immaterial, but it allows for any,

Speaker 1: 10:38

I I'm gonna put a positive spin on it. Hey David, we sold 90, the realtors sold 90% , uh, uh, of the homes that they sold in 2019. When you compare November to

Speaker 3: 10:48

November, oh , that sounds so much better. So

Speaker 1: 10:50

Much better. Alright . Alright. So what about my favorite measurement? The hotness index? The percentage over asking in November for perspective , uh, David, we had the percentage of closed sales over asking in October in the five county area was 43%. It was also 43% in November, 2023. What do you think it was this last month in November?

Speaker 3: 11:12

Hmm . Uh , 41%.

Speaker 1: 11:14

Good. Guess it was 42%. Okay . And by the way, 18% of sales closed exactly at the listing price. And 40% sold under the asking price. Remember the trend is that as we now go into November and December and January, the percentage of uh , sales under the list price goes up. 'cause there's not as much demand. Well go . You're gonna , you're gonna tell me story.

Speaker 3: 11:41

My counter would be if you have to sell your house in winter per perhaps you don't have the same courage of your list price as you might in spring, you have a more sober November than the drunken pay me what I want in April.

Speaker 1: 11:56

I'll go with that. Yep . It's all about supply and demand. And then the other true thing though is that, remember I'm giving you the numbers for the whole five county area, single family detached and condos blended together all price ranges. If you drill down to a submarket, like single family detached homes in Milwaukee County selling for between 200,003 99 9 , the percentage over asking jumps back up to 51%. Yeah. So again, that's just a more in demand price range. What's the other wild card , David, when we're looking at the sale price versus the listing price?

Speaker 3: 12:29

You mean besides the fact that the list price is a made up number?

Speaker 1: 12:32

That's the one I was looking for you to say. Okay . Yeah. It all depends, you know, how aggressive or realistic was

Speaker 3: 12:40

How anchored or un anchored you feel about the starting price. That's

Speaker 1: 12:45

Right. One other quick tidbit and then we're gonna come back with some of your stories from the front lines of mortgage lending. Yeah . Uh , cash offers only accounted for 21% of closed sales in the five county area , uh, in November. That's down from 27% a year earlier. And 25% from October took 33 days. This surprised me. 33 days on the market was the average before somebody got an offer. That seems long to me, doesn't it? Yeah,

Speaker 3: 13:11

Yeah, yeah.

Speaker 1: 13:12

From what we hear. Alright . When we come back, David's gonna tell you what's really happening on the front lines of home shopping. You are listening to the ACU Mortgage and Realty Show on Wisconsin's radio station. A six 20 WTMJ

Speaker 3: 13:25

Getting

Speaker 2: 13:25

You into the home of your dreams. Here's more of the ACU Net Mortgage and Realty Show with Brian Weer on WTMJ.

Speaker 3: 13:33

Welcome back to the Anette Mortgage and Realty Show. Uh, dad, there is an old adage in the ACU net office that as our clients sit at the Christmas dinner table, they look across at their spouse and they say, you know what we should do next year? We should buy a house. We should have Christmas at our own place. Yeah. Right. And then on January 2nd, the phone just rings off the hook. 'cause everybody decides and then gets to it, Hey, I wanna buy a house next year and next year is now the interesting dynamic. And brother-in-law, Tim and I both kinda looked at each other this last week, I think post-election, everybody UNC Unclenched and decided to get on with their life after getting beyond that event ,

Speaker 1: 14:33

What's gonna happen? Yeah. Right ,

Speaker 3: 14:35

Right . Maybe it's just me, maybe it's just Tim. But the number of clients who I have spoken to in the last week, they're not waiting for January 2nd. The time is now. Maybe they cleared Thanksgiving, it went from election. UNC Unclench , I had stuffing at Thanksgiving. Now they are getting to it.

Speaker 1: 14:56

So are these people that had been looking and were kind of taking a break or are these brand new people predominant ?

Speaker 3: 15:02

Some of each, I'm gonna say two thirds are , uh, clients who have been looking slowly. And another third are people like, okay, I'm ready right now.

Speaker 1: 15:13

Okay .

Speaker 3: 15:13

And and to your point on your previous segment referencing inventory, it's not that there is this new wave of homes being listed for sale. It in fact, it is just buyers deciding the time is now and being met by the same pool of available homes.

Speaker 1: 15:36

Okay . So maybe that's gonna make more , uh, you know, more , more demand. And you're saying we're getting a little more demand earlier than normal, perhaps.

Speaker 3: 15:44

Correct. Well, and so this past week I had a client, they , uh, you know, they got a lease coming up in the spring, but boy, this one house popped up and repeat client of ACU nets . They went, this house had been on the market for over a month. It was still a competitive bidding situation. They lost Oh no. And, and not for lack of strong offer, but it would appear that in the market, in the sub-market, in the price point that they're looking in the municipality where they wanna live, there are more buyers entering and the same number of sellers are Yeah. Putting the sign in their front yard.

Speaker 1: 16:25

Yeah. The inventory isn't like blossoming here in , uh, early December. And , and so it's sat , lemme get this Right. It sat on the market for a month and then Yes . Did they like drop the price all of a sudden? No,

Speaker 3: 16:37

No.

Speaker 1: 16:38

Just like, okay. Just had to have enough exposure to the market. And I just said that the average days on market was 33.

Speaker 3: 16:45

Yeah. This, and I like to say every house is its own market. Yeah . And for this home, it had been remodeled. The remodel was a particular taste. Could have been that I'm , I'm imagining the psyche of a buyer who's looking at this house. Right. It's at a price point where it's almost too nicely redone where you wouldn't wanna spend the money to make it different or what you want. Sure. Yeah. Yeah. Which almost pegs like, oh, am I willing to pay what the seller wants for this redone house? I think it takes a lot. It's easy to want to paint an ugly house. Sure . I think it's harder for a buyer to voluntarily be like, I know this is nice, but I don't want it and change it.

Speaker 1: 17:31

Yeah. It's not my taste. I'm gonna spend some more money to change it. It's exactly . It's nice, but not my taste. Okay. So what else? Any, anything else on, on these particular buyers or other buyers that you're running across

Speaker 3: 17:41

On those particular buyers? You know, the other thing too, about wintertime and then I want to get to , uh, another client after our break here. Um, these buyers were mindful of the timing element for closing here in kind of mid-winter, basically. Okay. You know, okay. Do I wanna , this is all the psychology of writing the offer that the seller wants. Right. Well, does the seller want to spend Christmas in their house, in their soon be old house? Does the seller want time? Do they wanna move out in January? Do they wanna move out in February and giving the seller what they want? I guess I would say with that extra element of it's cold out, it's the holidays. Yeah. Maybe the seller cares more than another time of year. You know, when when they are closing, when they are moving out. Sure.

Speaker 1: 18:35

Sure. So then good real estate agents are cognizant of that.

Speaker 3: 18:39

Of course. So , uh, after this break, I want to , uh, keep going on another conversation I had with a client on what does it take to win. They opened the door for my advice and I enjoyed sharing some of those elements. We'll get to that after this break. Now it's time to turn it over to the Breaking News center.

Speaker 2: 18:59

Don't break the fact to get into a house. Back to the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 19:07

Welcome back and thanks again for tuning into today's show. I'm Brian Wicker, the elder. That's David Wicker over there, the president of ACU Net Mortgage now . And uh , so David, you were talking to some clients last week. Are they looking to buy their first home or is this a uh , move up situation?

Speaker 3: 19:23

A move up situation? Alright ,

Speaker 1: 19:24

So what was on their mind?

Speaker 3: 19:26

So it was, it was a classic conversation. So they, let's say they've been looking for two months officially. I'm , I would imagine they've been looking in real life late at night on their phones for many months. More than that before they connected with me, I, in our phone call, they shared the address of the home that they saw. They're very interested. Here's the price that we think we're gonna offer. Here's the list price of the home. Those are different. And then I'm paraphrasing, but the question was, well David, what would you do to which someone who just like wants clients to win that. It's an amazing opportunity to just, and all of our loan consultants do this. We're not here to dunk on our clients. It's, thank you for inviting me to share what I have seen work for clients to win. So the first thing that we, we went through, they said they're gonna do 20% down. All I said, dad, all I said was why 20%? Uh , we want to avoid PMI. Yeah,

Speaker 1: 20:41

Of course.

Speaker 3: 20:43

Why is PMI bad? I dunno cost a lot. Yeah . Uh , it's expensive. Really? How expensive?

Speaker 1: 20:51

Yeah. I don't know .

Speaker 3: 20:53

Uh , I don't know.

Speaker 1: 20:54

Let's find out

Speaker 3: 20:56

Exactly because I said for the right kind of client. PMI is a tool. Let's look at the tool in your carpenter box, in your carpenter toolkit. Do you want to use it? I don't know , but let's at least talk about it because for them, they're at a price point. Dad, they're, they're probably borrowing like, or uh , buying about $400,000. Okay. So a 10% difference is $40,000. That's

Speaker 1: 21:24

A lot of money,

Speaker 3: 21:25

Boy. Exactly. It's $40,000. The , the cost of the PMI was gonna be $109 a month.

Speaker 1: 21:36

Hmm . Okay. So not nothing, but it's all in relation to their income and their budget. Right. So Exactly. And the 40 grand, it's like, okay, you can plunk down another 40 grand and avoid 109 bucks a month. Or maybe you got something to do with that money. Does this house need a little work or not?

Speaker 3: 21:51

No, not particularly. Okay. But but then you'll enjoy this. I said, and in fact they volunteered. Well, so I think what you're saying is if my brokerage account can, you know, get a rate of return above the mortgage Yeah . Then I'm winning. I said Exactly. That's called being a bank.

Speaker 1: 22:13

Although be careful. I don't know if you saw the , uh, all

Speaker 3: 22:15

I , all I did was acknowledge what their Okay . They referenced

Speaker 1: 22:20

Because the past, the great robust stock returns may not be there in the future. According to many . Of course they won investigators. But , but what , um, but wait, I I , I want jump in here and say I think they should write the offer with 20% down. It's gonna look so

Speaker 3: 22:33

A hundred percent better. Okay.

Speaker 1: 22:34

So we're gonna verify that they have enough to put 20% down and they do , we're gonna write the pre , the rock solid preapproval letter that way. 'cause guess what? Sellers like to see. Yes . At least 20% down. The more the merrier. Stronger is better. Okay. But then in reality, we are perfectly fine coming back and lending 'em less than 20%.

Speaker 3: 22:53

As I like to say, on the day you buy the house, the seller doesn't care what the color the money is or who put what into the suitcase. The seller just wants you to slide it across the table and say thank you very much. That's

Speaker 1: 23:06

Right. That's right. So, so, so down payment, and by the way, PMI, if you put 15% down even gets cheaper even cheap in a lot of cases than that. 'cause there's a price break for that. But what else you got on these people?

Speaker 3: 23:17

Okay. And so the last, the , the Cuda gras of our conversation was they were prepared to write an offer $5,000 over the list price.

Speaker 1: 23:27

Okay.

Speaker 3: 23:28

I said that's great. Why not 6,000?

Speaker 1: 23:31

Yeah. And they said his

Speaker 3: 23:32

Immediate rebuttal was why not seven? I said Exactly. Yeah . I I , this was a joint phone call, husband and wife. I said, Bob, not his real name. Bob, how bad do you guys want this house? Like, do you want want this house so bad you will cancel Santa if like, if if we cancel Santa, we get this house. Sorry kids, but at least we get the house. They're like, not, not that much. Maybe not cancel Santa. But yeah , we, we really want the house. I said, great. When you were preparing to propose to your wife, did you negotiate over the size of the engagement ring or did she declare, here's what I want. And you said, okay, if the answer is I give you this and I get you. Sounds good. He acknowledged they did not negotiate over the size of the engagement ring.

Speaker 1: 24:21

Okay. There you go. That's a good analogy.

Speaker 3: 24:23

And I, and I said you're willing to offer 5,000 over list. If you paid a hundred thousand dollars over the list price, that is probably a near guarantee. The seller will say yes to you. Yeah. The answer for what makes you comfortable, your no regrets offer, as we've talked about before, probably lies somewhere in the middle. Where is that? Hey, you know what, if we don't get it and we offered this, I'm okay.

Speaker 1: 24:48

And did uh , do we know if there's gonna be competition?

Speaker 3: 24:52

Yes, there is gonna be competition.

Speaker 1: 24:54

Okay. Alright. So, alright.

Speaker 3: 24:57

So more on that. I'll have news, you know, win lose or

Speaker 1: 25:01

Stay

Speaker 3: 25:01

Tuned. Yeah . Yeah. Delayed. But that's the, when we get the invitation to consult, it's like, you know what, guess what, if they decide, Nope David, we wanna do 20% down and I'm only willing to pay this over the list price. Great.

Speaker 1: 25:15

Alright . When we come back, I've got a story about uh, uh, move up buyers as well. We'll share that. But right now it's time for a break. You are listening to the Aced Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 25:27

Important home buying questions and answers you can count on. This is the Accu Mortgage and Realty Show with Brian Wickett on WTMJ. Welcome

Speaker 1: 25:37

Back and thanks again for joining us today. So David, in your last story about the people, Hey, what's my no regrets offer, you know, an extra $5,000 , uh, on the purchase price, if you're putting 10% down means that, oh, you gotta come up with an extra five , $500. Yeah . It'll probably change your monthly payment by roughly 30 bucks a month compared to, you know, holding back that five grand. So this's just good. That's what we do all the time. We quantify things for people, you know , what does that mean? If I want to pay another five grand more

Speaker 3: 26:06

And, and in a gentle way in my progression, like, you know, why 20%? Oh, well why is PMI evil? Well it's expensive. Well , how expensive is it? It's like once you just peel back like three or four layers, like let's get, maybe I gotta turn on more than one light to look at the monster in the closet and be like mm-hmm <affirmative> . Oh, well it's not that bad. Look, there it is.

Speaker 1: 26:28

Alright. So, so I was , uh, talking to a client the start of the thinking late , uh, September, and it was the classic, Hey, you know what, we bought our home eight years ago before children, now we've got two elementary school kids and we want to , you know, move to the suburbs and have a bigger house with a bigger yard for our kids. And , um, and , and so, you know, they started out, the initial conversation was like, you know, I would really prefer to write offers contingent on the sale of our home. That's what would make us most comfortable. And so again, I said, well that's great. Yeah . You gotta comment on that.

Speaker 3: 27:02

Can I, is the human translation of that. I only want to move once. Please. I have young kids. One move is all I care for.

Speaker 1: 27:10

Well, yeah. That , that's part of it. But you know, it's also I don't want to have, you know, two mortgages at the same time. Right. That just kind of makes me feel uncomfortable. Sure. And , and so my, my um , initial offer was, well, let's at least run the numbers and see if you can afford to buy the new home without selling your existing home first. And Shazam, we collected their, you know , pay stubs, bank statements, you know , all the information, got their credit report , uh, and ran the numbers and sure enough they have enough equity in their home that we could do a bridge loan to help them extract some, not all of the equity from their existing home, but enough that it would give 'em a 20% down payment on the new house in the price range that they're looking. And uh, and , and they easily qualified to carry the existing first mortgage payment on their old home plus the interest only bridge loan , um, plus the principal interest, taxes and insurance on the new home. Yeah. And, and once we kind of have that discovery, guess what you , you look like you just , uh, swallowed.

Speaker 3: 28:11

No, I'm ready. No, I'm right because you're saying you can Right. You , you diagnosed if you want to, this is possible you can buy the new house while still owning the old one. They then just have to decide or find a house where that is worth it to them.

Speaker 1: 28:30

Correct. And you know, a couple other steps in that puzzle are okay. You know, let's quantify it . What does it cost to get this bridge loan? Well, you know what, if we can get an appraisal waiver or do an automated valuation model, boy you know what your total costs are gonna be for the bridge loan, like $770. Well that's not as much as I feared and I don't ,

Speaker 3: 28:49

I don't wanna walk past this 700 bucks . Again , this is all for the right house. It was like, cool. 700 what fine for the wrong house. Right? Yeah . For the, for the one that does not inspire them to move. Well then yeah. The cost is like ugh . And the idea of two mortgage payments is like Mm , do I really want to, it's all a matter of what am I and what am I getting? Yeah .

Speaker 1: 29:12

Then , then we hopped on a three-way call once we, you know, kinda had this knowledge with their buyer's agent and said, so , uh, Mr. Buyer's agent, you know, tell us about the market in the price range and areas where these nice folks wanna look. Yeah . You know, how how successful are they gonna be if they write contingent offers on the sale of their home? He is like, they're not gonna win. They're gonna lose like every time. Yep . Okay. And then they also got used to the idea of which of course I knew, but I wasn't gonna be the heavy on that. Let the real estate agent tell 'em that. And then , uh, you know, the other thing that they got used to the idea of wow, this could make for a much more relaxing transition. Right? Oh yeah. In terms of we can find the house that we want, we can close on it and then sell our house and move. So they're like warming up to that idea. And it took several weeks for them to find the right house. In fact, I had touched base with 'em in middle of November and they're like, you know what? There doesn't seem to be anything on the market. And so , um, we're probably not gonna be, you know, <inaudible> until next year. <laugh> . And then what do you know, like a week later? Yeah . Uh , somebody who had bought a house and it was an ugly house and they remodeled it. Yeah . Came on the market in late November when there's not a lot of buyers. So along comes our buyers and they're able to write a non-contingent offer. And they had their rock solid guaranteed pre-approval letter. They also had the pre-approval letter for the bridge loan , which by the way did not need appraisal. And so they're a strong offer and I'm happy to say that , um, they didn't have to pay over asking, you know, for it or they didn't have to negotiate that. Now there were a few things that came up on the inspection. Let's cover that when we come back. Hmm . And , uh, and tell you how we help navigate that or are navigating it. You are listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 31:04

Find a place to call home without the headache. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 31:12

Welcome back and thanks again for tuning in today. Uh , I'm Brian the elder. That's David the younger over there. So we're talking about some move up buyers that we're helping mm-hmm <affirmative> . And by the way, they got introduced to us, David, through a past academic client, you know, 'cause they were scratching their head and saying , boy we want to buy a new and, you know,

Speaker 3: 31:27

Buy , that's because the number of elements you detailed in the last segment, like a move up buyer needs or benefits from a quarterback like Brian, like accu net mortgage. 'cause I think you named like five important ingredients in this recipe that without each of the ingredients the recipe doesn't work.

Speaker 1: 31:48

That's right. That's right. So, so they, they, this house comes on the market. It's a , a big remodel. Uh , an ugly house that somebody bought remodel it , it's on the market. Well they do the inspection and there are several things that need to be , uh, fixed. And the wanted to point out is that in the initial draft of the amendment to address the , um, inspection items , uh, the agent happened to reference the inspection report. And if there's one thing a good mortgage lender never wants to have possession of, it's the inspection report. Because you know what, if there's something in that report that we don't want to know about that's not being addressed in the amendment, you know, they're gonna repair this, this, and this. Yeah . But then there's this other ugly thing on there. So the big takeaway was I said, you know, do you think we could redraft that and not reference , um, the um, the home inspection? And sure enough they did that for us, which was very much appreciated. We still got all the items in there. And then , uh, go ahead. You got a

Speaker 3: 32:50

Question? Yeah. There's no citation needed. Like you can just say, please fix the roof without referencing. Without necessarily referencing. Yeah. And here's the roof report that says it's a terrible roof.

Speaker 1: 33:02

It's convenient. Right. 'cause you can say as noted on page this , uh, anyway, so so we, we got that to the point where we wanted it . But now , uh, it turns out that there's a fireplace , uh, potential issue. And so then it's like, well if we can't get it done before closing, can we escrow for that? And the answer is no, because that is a safety issue. Yeah . And so we can't escrow for that to be done after closing. 'cause that's one of the things Fannie Mae and Freddie Mac want, you know , at the time that the mortgage is made is they want to have a safe and marketable home marketable, you know, property. If it's weather related , hey we need to put on a new roof, but there's snow on the roof that we can escrow for. Yeah . But not something that's uh , health or safety related .

Speaker 3: 33:47

Is it really health safety or is it cosmetic for your buyers?

Speaker 1: 33:51

I think it's safety.

Speaker 3: 33:52

Really? Yeah .

Speaker 1: 33:53

I'm not sure. Well, you know what? Yeah. Still close .

Speaker 3: 33:55

Can you just not turn the fireplace on? Is that okay?

Speaker 1: 33:57

Still, still being , uh, diagnosed as we record the show here. I think they're having inspection. You got a question or a comment?

Speaker 3: 34:05

I was gonna piggyback off what you said. The same clients that I was narrating earlier in our show, one thing they were considering was waiving the inspection contingency. Wow . And , and my approach or one perspective to share is money fixes everything. Even all the things you can find on an inspection And, and do you want a seller making the fix and then you have to live with it, their fix going forward. Maybe you actually want to fix it. I don't want you to do some slap dash job that I then have to fix again. 'cause I didn't really like the way you fixed it seller.

Speaker 1: 34:44

Yeah . 'cause the standard is good in workmanlike manner . Yeah . Which is open to interpretation, which

Speaker 3: 34:48

Is a nice way of saying good enough. Not particularly. Yeah.

Speaker 1: 34:52

Maybe not the way I'd want to do it. Right , right . Well and then are they possibly gonna give 'em some uh , inspection wiggle room where they say, Hey, we'll pay for the first $3,000 of any repairs. See that's what they're common . I ,

Speaker 3: 35:01

In a competitive situation, I I would just advise them like, you just wave it all because , 'cause again, I like to say there's an implicit inspection contingency don't in the financing if the roof has a hole in it,

Speaker 1: 35:15

You don't wanna advise them on that. But you wanna suggest they consider

Speaker 3: 35:18

All , I'll give people all the options and all the perspectives.

Speaker 1: 35:21

Yeah. Yeah . So, and, and now , uh, soon in 2025, you brought this up on one of our recent shows. Yeah. We might be able to do , uh, an appraisal waiver. That's the correct . That's the cat's pajamas. Right now in 2024 you have to put 20% down to enjoy an appraisal waiver. Possibly. Uh, but in 2025 coming soon to an automated entering system near you, we are supposed to be able to do that with as little as 10% down. Is that right, David? Yes, correct . On , on a owner occupied property. Correct. Alright. So more to come on some of these stories that are in play. If you or someone you know, may a coworker , a friend, a relative wants help, guidance, a steady hand on the tiller in the navigation towards home ownership. Whether you're a first time home buyer or a move up buyer, we would love to be your copilot on that , uh, journey and bring our skills and knowledge to the table. All you gotta do to get started is click on that blue button@accunet.com. That's all the time we have today. Thanks for tuning in. You've been listening to the Acuate Mortgage and Realty Show on Wisconsin's radio station. AM six 20 WTMJ. 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 Acuate Mortgage and ANet Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC, 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 Accu Net Mortgage and Accu Net Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.