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.

Speaker 2: 0:20

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: 0:35

Welcome to the Accu Mortgage and Realty Show. I'm Brian Wicker, licensed real estate broker with ANet Realty Advisors and also the majority owner of ANet Mortgage, where my individual NMLS ID number is 2 5 9 6 1 oh here, along with my son David Wicker, one of our top senior loan consultants and also our Chief Client Experience officer at the mortgage company. His individual NMLS ID number is 3 2 8 8 4 7. If you've got a question or a comment, you can call or text us on the WTMJ talking text line , which is 8 5 5 6 1 6 1 6 20 . So David, we , um, dodged a bullet this week. The market was on edge waiting to hear what the inflation number was for the month of , uh, April called the consumer price index. And remember, inflation's the enemy of interest rates. So, and it's been running kind of hot. So , uh, what did we find out? It was Wednesday morning,

Speaker 3: 1:26

It was at 7:30 AM So forecast was 3.4% year over year for headline CPI, which is everything. And it came in at 3.4 woo . And then Core CPI, which strips out food and energy, which I always think to myself, well, I need gas in my car and bread, but go on, I need to eat. <laugh> . Uh, that came in at three point forecast was 3.6 and it came in at 3.6 and markets, I think it was not so much celebration as relief.

Speaker 1: 2:04

Relief, alright , so we ended the week. If you're gonna buy a $320,000 single family home or condo in the Milwaukee area, which is about the median sales price, and you had seven 80 credit and um, all the other right stuff, owner occupied, blah blah, blah, we could deliver a 6.99 30 year fixed rate. And the a PR would be 7.08%. So not bad. And, you know, all this anxiety over the rates and, you know , how much did that influence your , um, home shoppers this week? David?

Speaker 3: 2:36

I feel like my clients were as hungry as they've been, if not ignorant, to an inflation report that came out on Wednesday, right? Correct . That was, that's not in their calculus.

Speaker 1: 2:49

I agree.

Speaker 3: 2:51

And, and ultimately, you know, the yes, if I said this last week, forgive me, but I have said to more than one agent on weekends getting the home is chapter one in the book of this house. You must get the home and the rate, yes, you may have to endure whatever the rate might be, but as we talk to clients, I mean, dad, we've been doing this for 25 years, we helped clients buy a house and pick any year. And then over time, as opportunity presented itself, we helped them make that money cheaper, lower, faster, better, smarter, when uh , we can refinance.

Speaker 1: 3:29

That's right. So , um, so I had a couple people get accepted offers, you know, I don't originate a lot of loans just kind of occasionally by accident, but I had , um, last week, Friday, I think we started talking about, I don't know if we talked about it or not, but , um, had somebody, this is the guess what, daughter of a longtime customer of ours. There you go . And her husband , um, they own a , a home in Wauwatosa and they decided they wanted more yard room and stuff. So they're , they found their home of their dreams in one of the suburban , um, uh, suburbs, one of the counties out outlying counties. And somehow David, they got an accepted offer , uh, using a large national bank's , uh, pre-approval letter. And, and then the reason I got involved was because they wanted a bridge loan and this large national bank doesn't do bridge loans . So that was kind of the impetus , uh, for the call. But I gotta tell you the, I had a look at the pre-approval letter because it was , oh,

Speaker 3: 4:33

You said this to me. Yeah, it was, it was useless. Were there names even on it? I mean, that's kind of almost how useless it was.

Speaker 1: 4:39

The custom the customer names were on it. Okay. And so let me just recount and I have a, we have a new ad starting , um, uh, today that talks about how lousy some of the bank preapproval letters are, and this would be one of 'em . So lemme count the ways that this preapproval letter was lacking and yet somehow the , the listing agent thought it was okay, which is, blows my mind. So count number one in my indictment, there was no interest rate on the preapproval letter. Why is that important, David?

Speaker 3: 5:10

Well, 'cause the interest rate impacts what the monthly payment is. And as you said, many, many times we are approving people for payments that then turn into purchase prices.

Speaker 1: 5:19

And the Wisconsin offer to purchase contract form has a line where the buyer's agent must fill in the interest rate, the loan type and the loan amount. So how do you , you know, so the , the contract was written with an interest rate of 7.125. If I look at that pre-approval letter, well , I don't know, may , maybe they're only approved up to a rate of 6.75. How would I know it is silent on that very important detail. Uh , indictment number two, there is no loan originator's name or phone number on the letter. Literally it says contact us and an 800 number that is horrible.

Speaker 3: 5:54

It's a listing agent's nightmare. Who do I call?

Speaker 1: 5:57

Yeah, who do I call? Call 800, you know, big bank. Alright, when we come back, we'll finish up with my indictment of , uh, this bank preapproval letter, but also give you some other really interesting , uh, facts that evolved after I got involved. You are listening to the Academic Mortgage and Realty Show on AM six 20 WTMJ

Speaker 2: 6:20

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

Speaker 1: 6:29

Welcome back to the Acuate Mortgage and Realty Show. I'm Brian , that's David over there. And , uh, David, just to pick up, I'm , I'm talking about um, how we had the opportunity to swoop in and take over on a home purchase financing situation because the buyer really wanted a bridge loan and their big national bank doesn't do bridge loans. Um, they're too hard probably to do all over the country. And so that's how I got involved on a referral from the Father-in-Law. But I had a gander at the big bank's pre-approval letter, which was, well, how should we say it? Garbage , uh, no interest rate, no loan officer's phone number. It only reflected a 10% down payment, which isn't the strongest down payment. Oh, by the way, they had only verified the credit if you , if you looked at it closely. Uh , it said that , uh, we still need to verify information you stated in your application is accurate <laugh> . So it's like, yeah,

Speaker 3: 7:21

Here's your preapproval. I still need to verify everything, but go on and

Speaker 1: 7:24

We're talking about a loan amount over 600 grand is what they were approved for in this preapproval letter. Um, but yeah, I do even know if you have this income or jobs or the down payment, but you know, you're good to go. Um, the only thing that, oh, oh, it , the letter was silent on whether or not the buyers had to sell their existing home to qualify . Okay . And the only positive I can say is, is that , um, it relative to the offer, well, they did offer 20 grand over asking and the pre-approval letter was for about 50 grand over what they ultimately settled on for a price. So , okay, that's one minor strength. Um , and these buyers did offer a $5,000 appraisal gap , uh, which means that if the appraisal comes in up to five grand lower than the accepted offer, they'll still go through with it without haggling. Yeah. Um, so I , I'm glad that they got their offer accepted. 'cause now I get to kind of swoop in, but what would we have done differently , uh, in this situation? David, had they come to us first? Well ,

Speaker 3: 8:26

Well first of all we would've put an interest rate, a range of rates on the pre-approval letter because that's just what grownups do in the mortgage business. We would have, I mean, my cell phone number would be on the pre-approval letter because I want to talk to listing agents, be like, hi , this is David from Anette Mortgage. It's my name on the pre-approval. Everything on there is true and you can call or text me anytime . You never need to call an 800 number, you know, wondering what's going on. Yeah. But then to some of the strategy that I think you're alluding to, you know, 10%, it's like, do you guys have 15%? Do you know, could you show me that you are capable of putting 20% down, maybe reach for a little more strength in, you know, what the pre-approval reads?

Speaker 1: 9:13

Yeah. Like what about that bridge loan that he really ultimately wanted? Right,

Speaker 3: 9:17

Exactly . We have pre-approved

Speaker 1: 9:18

That

Speaker 3: 9:19

Could've gotten that lined up. Well and then yeah. Uh , you know, and the other thing, I just do this anyway to try to run, Hey, are you gonna go look at 1, 2, 3 main street? Let me just run it through even at 10%, I'm gonna try to run it through to see if we get some kind of appraisal relief maybe. Right . You know, dad, I've got , I've had a lot of clients and agents really enjoy appraisal light . Uh oh , okay . Where we don't need, where the software accepts the value that you put in, then someone just needs to walk through the house to make sure it's not falling apart Yeah. To try to do something like that. 'cause if they're getting frothy, did you end up running this obviously then through the mortgage

Speaker 1: 10:05

Software as Paul Harvey used to say? Where do you hear the rest of this story? So, okay . Exactly. Now we have this accepted offer that's 20 grand over asking, they're nervous about what they agreed to pay. Mm-Hmm. <affirmative> and , and said, you know, we looked at comps, we couldn't find a single comp over the asking price. So we're kind of skeptical well , that it's gonna come in, but get , get this. So I run it through Freddie Max automated underwriting software, and bam, I get the ever love and full appraisal waiver at 20 grand over asking, then I run

Speaker 3: 10:35

You must have run it with the 20% down payment then. Yes,

Speaker 1: 10:39

I did. I did because I

Speaker 3: 10:40

Knew I was Okay . But to your point, hey, you're gonna use the bridge loan, use it to get a bigger down payment on the new house in Shazam, get the appraisal waiver

Speaker 1: 10:48

And they have six figures of cash in the bank. Just

Speaker 3: 10:51

By way . Why were they, oh , were they doing the classic, I'm gonna hold back in case I got a cover . Something. They didn't ,

Speaker 1: 10:57

They didn't have enough cash at this price range. We're talking in the mid 600 range. They didn't have enough for a full 20% in cash. Oh . Oh . So , so that's why. Anyway, but, but so I get this appraisal waiver and then I run it through , uh, Zillow. I just went and got a Zillow estimate that's like , uh, the same as the asking price. And I ran Redfins that's like three grand under the agreed upon price. So Mm-Hmm . <affirmative> , I sent 'em an email and I said, okay, I got this appraisal. I know you , I know you still want to get the appraisal right, because they're hoping that it's gonna appraise 10 grand low. Right. So that they can invoke their five grand appraisal gap. Uh , okay. Okay .

Speaker 3: 11:37

I

Speaker 1: 11:37

Get it . And so, and so the decision was, all right , do you wanna spend $475 to find out if the appraiser who knows the accepted offer price? Okay. Yeah . Who knows the accepted offer price <laugh> . Will that appraiser bring in the value at least five grand below what you're agreeing to pay in the face of the fact that I've got a Freddie Mac appraisal waiver, I've got a estimate that says it's worth what you're paying. And a Redfin that says it's three grand. I'll tell you what they decided to do. Okay. Did they, did they decide to get the appraisal or not? We'll tell you when we come back, you are listening to the ACNA Mortgage and Realty Show on Wisconsin's radio station. AM six 20 WTMJ,

Speaker 2: 12:22

Getting you into the home of your dreams. Here's more of the ACU Mortgage and Realty Show with Brian Weer on W wtmj.

Speaker 1: 12:31

Welcome back and thanks again for tuning into today's show. I'm , uh, Brian , what do you call me, David? The wiser.

Speaker 3: 12:36

I like the wiser. Yes.

Speaker 1: 12:37

It sounds better when you say it. And , uh, that over there is David the younger, taller, and more handsome. That's what I always say. So we're talking about these really nice people who came to us after having gotten a big bank pre-approval, which I do have this ad out there that's like spot on. I couldn't, maybe that's why I wrote the ad. Huh . Subconsciously

Speaker 3: 12:57

<laugh> chicken or

Speaker 1: 12:57

The ad . Although I didn't, I didn't read the , um, I didn't read the pre-approval , uh, until , uh, late Friday.

Speaker 3: 13:04

Well, you, by the way, you wrote the ad because it's true. You just happened to stumble in upon some recent proof

Speaker 1: 13:11

<laugh> . Okay. Recent. Yeah . Recent proof. So, so the interesting thing, and, and believe me it's okay, either decision was okay, but the situation was I had an appraisal waiver for these folks at 20 grand over their asking price, along with two other automated valuation models that kind of supported the same thing. And the question was, did they still go ahead with the appraisal for 475 bucks in order to hopefully see the appraisal come in at least $5,001 less? 'cause remember they offered $5,000 appraisal gap or wiggle room. And the answer, what would you, what would you have done, David?

Speaker 3: 13:48

I'm hoping that they chose the appraisal waiver so that they moved on to other things.

Speaker 1: 13:54

They did not, they decided to go ahead with the appraisal, which is a hundred percent. Okay. Because, you know, in, in their mind, remember before they wrote the offer, they had their buyer's agent try to pull comps to justify the price that they had agreed to pay. And, you know, it's kinda like they

Speaker 3: 14:14

Can't believe it . The , the , the element that they are ignoring is that when you send an appraiser through a home, they're gonna take pictures. And perhaps there are things about this home that don't bother them condition. You know , oh , this, this , um, you know , um, basement thing over here, stair steps railing thing over there. I see. Then when you send an appraiser through, they take pictures and an underwriter is gonna see those pictures and they might start to have opinions about the marketability and condition , the condition of the

Speaker 1: 14:52

Property safety. Yeah. Is there something wrong ? Is there, is there a black mold spot or something that looks like mold in the basement? Yeah. Now I think the fact in this case is that the house is meticulously cared for. Okay . So I think the actual chances of that are low. But you're correct. Anytime you have a physical examination, there's a chance that the doctor might say, you know, I saw a spot on your lung. We gotta investigate that further. But anyway, it , it's the , the appraisal should be done like tomorrow, which is basically within a week. And I I'm sure it's gonna be , man ,

Speaker 3: 15:27

They're gonna spend $500 to learn. Yeah . Guess what it's worth. Exactly what you're paying for it.

Speaker 1: 15:31

Yeah. And , and that's okay. I, I don't criticize them for that decision. They just , 'cause remember they've seen something with their own eyes, which is the lack of comparable sales that justify this price. And so they just wanna be a hundred percent sure. So, and that's perfectly fine. But the , the moral of the story is real estate agents, we , we need to have a clinic on how to evaluate preapproval letters because ,

Speaker 3: 15:59

Well , how's, how's about this? Would Brian Wicker, if he was selling his house, would he accept this preapproval letter? If the answer is no time to upgrade?

Speaker 1: 16:08

Yeah. Time to upgrade. So that , that's the nature. Oh wait, there's one more kicker. So then we're, we're talking and now he's the guy is the husband is clearly, you know, he's going with us 'cause we have the bridge loan and I'm giving him different options. And so we're comparing our 6.99 rate at the time to this big bank's 7% rate. And for Mo could tell he didn't have a written quote, but it looked like their closing costs were $2,500 higher. So my , the nature of this ad is , uh, I, I get it that people normal , a lot of people just go with their bank, you know, they think, you know , it's gonna be easier, I'm gonna get a better deal. After all, I'm already a customer. And , and so this is a red letter, perfect example of how now these people locked out, lucked out, rather, they , they , they lucked out. They got the offer accepted despite this really lousy pre-approval letter from their big

Speaker 3: 17:07

Bank . Well, I was gonna say the seller was willing to ignore some of the warts on their face because Mm-Hmm . <affirmative> , I think of the price they were willing to pay, right?

Speaker 1: 17:15

Yeah, probably. That's probably, anyway, so that's now , uh, let's, let's move on , uh, from that one. Um, after we come back here from the news break , um, the nice folks who sold their home in Wauwatosa , remember we were talking about them last week or maybe even the week before. Uh , they got 10% over asking, and remember

Speaker 3: 17:39

The people moving to Illinois?

Speaker 1: 17:41

Yeah. These are the people moving to Illinois. Um , well early , uh, last week they got an accepted offer on a bit of a fixer upper in a really nice , uh, Chicago suburb. And they made a cash offer Okay. With the help of her dad. Mm-Hmm . <affirmative> . I want to tell you a little bit more about the risks involved in that and how we're gonna have to proceed when we come back. But right now it's time to turn it over to the WTMJ Breaking News Center.

Speaker 2: 18:14

Don't break the bank to get into a house, back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 18:22

Thanks for spending some of your Sunday with us for whatever time you're listening to this podcast. I'm Brian Wicker , uh, managing owner of Anette Realty Advisors, along with my son David. And we are both , uh, owners of Anette Mortgage. So we're talking about David, our , our couple that's moving from Wauwatosa , uh, down to suburban , uh, Chicago area . And , uh,

Speaker 3: 18:45

These people have had a lot going on the last couple weeks, by the way. That's a lot, you know . Oh yeah . Buying and sell , selling, then buying, then moving the kids, all of it.

Speaker 1: 18:54

And , and this is all about a workaround. These folks, unlike the last , uh, couple that we talked about, these folks do need to sell their home Yeah . In order to qualify to buy the new home. Well, the good news is their home is closing on May 28th here in Wisconsin. And so , um, this new contract that they got accepted , uh, early last week, I think it was on Monday or Tuesday , um, we're not closing until the 14th. So this is a case of getting a house under contract , um, by adding the dad and the dad's cash to the deal. Now I've seen this done, and I'm sure you have too , where home buyers write a cash offer and then they point to dad's cash, but dad's not party to the contract.

Speaker 3: 19:44

Oh yeah .

Speaker 1: 19:46

I've had that happen.

Speaker 3: 19:47

I know. Well, but , uh, just for everybody, if that were, if Tim and Grace were buying a house and they pointed at Brian's cash, David would be like, cool, you need to add Brian to the contract. Obligating him, yes. To the cash.

Speaker 1: 20:01

Yep . So this sharp , uh, buyer's agent in Chicago , uh, did just that. So right now the offer is smart husband and wife and the dad on the offer. They did just like in Wisconsin, have to show proof that dad has the cash. Oh yeah . But then interestingly , um, when I got this , the Chicago , uh, offer to purchase form , which I haven't seen one in a while, they actually have broken out, this is a cash offer and I mean real cash. And then they have another segment you can initial, which these folks did that said, yeah, this is a cash offer, but I might get a mortgage. Right? Mm-Hmm . <affirmative> . So that's the one they , they check . So we have the right legally under the contract to go in there and appraise the home and the seller has to cooperate and all that stuff. Uh, but my, you recall from last week, she , I was saying, you know, when you write a cash offer, you gotta be careful about the homeowner's insurance because you can no longer blame the mortgage lender for, oh well I can't get insurance on this. And lo and behold, the Chicago offered a purchase, unlike Wisconsin has a paragraph on homeowner's insurance that says this contract's contingent upon buyer obtaining evidence of insurability of a insurance , uh, organization at standard premium rates. Huh ? They've got it covered. Now you gotta do this within 10 business days. Yeah. You over there with your hand up,

Speaker 3: 21:17

Do they say what market rates are for insurance?

Speaker 1: 21:19

Nope . They do not. Standard premium rates. So that's a , just like a lot of things in contracts, it's not a defined term, but Yeah , you'll know it when you see it.

Speaker 3: 21:27

Which can I just, can we just talk, because we talked about this last week. It's like, oh, we, we offered cash, but we can't get insurance on the house 'cause it's got a bad roof. Like you, you know, worst case you pay cash, you put a new roof on the house and then you go get the mortgage. Yeah . Like that's not preferred, but it's not like it prevents you, it's it it's an inconvenience which a seller kind of doesn't care if I'm inconveniencing your cash. Correct.

Speaker 1: 21:53

Correct. But you know, in , in this case, the dad would rather not part with all the money. Oh, by the way. And I didn't think it was

Speaker 3: 22:01

Just not , wait, but hold on. For anyone who's writing cash, I think it would be prudent to walk down the mental path that I might actually have to cut the cash. That I might have to cut the

Speaker 1: 22:12

Check. Correct. Yeah. You um , you know, unless you put some stuff in there like, I wanna make sure I can get insurance on this thing 'cause I don't really wanna own it. If I can't insurance, what if I can't cure whatever the insurance problem is, right ? Yeah . You never know. So , um, so that was one interesting thing. A second interesting thing was the property tax proration section of the Illinois , uh, contract says, and we're gonna prorate the taxes at blank percent of the most recent tax bill that was not filled in. So I, I email the buyer's agent , I say , you know, that's not filled in. Um, shouldn't it be? And she goes, 'cause remember in Illinois there is a five day attorney review period after the offer accepted where you get to have your attorney. Mm-Hmm <affirmative> . Oh, she said, we're gonna negotiate that during the attorney review. I'm like, okay, but it , you know what? If you want them to bump up the taxes by 5%, well I guess that's on this property, that's only 600 bucks. So it's not a big number, but you're like not done negotiating when you do it that way. Uh , so I thought that was fascinating. Oh yeah . We do that all the time. We just negotiate that during the five day period. And then lastly, there's a separate section relative to the home inspection way at the end. It took me a while to find this that says it's an as is it inspection, which means I the buyer am gonna get an inspection on your house. But my only choices are to say okay, or to cancel the deal. There's no negotiating like there is in Wisconsin. So interesting , uh, situation . Oh by the way, I was gonna say they had to pay uh , 70 grand over asking.

Speaker 3: 23:55

Well ,

Speaker 1: 23:57

Okay . And this is a house that was listed in the high four hundreds, eight offers and they're happy

Speaker 3: 24:02

To do it. They paid what the home was worth.

Speaker 1: 24:06

Absolutely. Absolutely. They did. Let's talk a little bit more about that and then something

Speaker 3: 24:11

I have, I have a story on that exact topic too, but we'll, we'll you , you , you begin, but we will get into all that right after this break. You're listening to the Academic Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 24:25

Important home buying questions and answers you can count on. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 1: 24:34

Welcome back. And uh , we're talking about, you know, when , when people are paying, like we were just telling the story before the break , um, 70 grand over the asking price where, you know, the asking price was in the high four hundreds. You know, what is really the value of that house? Um, and , and , and so in , in my buyer's case, David, they're fine with it. And remember they wrote it as a cash offer. Um, so there is no appraisal contingency involved. Whatever it is, it is. And uh, it's worth it to them. And lemme tell you why in this particular case you may or may not recall, the husband in this case is like a design guy, like a remodeling designer fellow and is also extremely handy. Yeah. Also

Speaker 3: 25:24

Extremely handy . Well, 'cause I remember the pictures on their listing. It was lovely looking .

Speaker 1: 25:27

Oh , gorgeous. Right. So that's why they got 10% over asking. 'cause they did all this remodeling. Well their plan , they call this, he called it a granny house. And I said, well what does that mean? Well, that's a house where there's been no updates. Right? Nothing's really been updated in this house .

Speaker 3: 25:42

It's a remodeler's dream is what it is. It's a blank slate.

Speaker 1: 25:45

Correct. Blank slate. So that's why I think there , he don't really care. There's like this, this is the perfect area. He told me he can his new job and remember we couldn't use his income because his new job is gonna be a 10 99 job for the first six months. And um, so , so we're gonna end up refinancing him in six months anyway , uh, to put him on the loan. 'cause they might wanna pull some more cash out. The other interesting thing you might have , or if you're paying attention , uh, right now the offer includes the father because they used his cash to make this a cash offer. So between now and closing , um, once we get the loan commitment all buttoned up, their attorney is going to ask the seller to please excuse the dad from the contract so that they don't have to be un title . But our worst case scenario is the seller says, no thanks, I'm keeping you hooked onto this contract. Mm-Hmm. <affirmative> , we'll remove the dad in six months after his son-in-Law, you know, becomes a W2 employee and we end up refinancing him anyway at a lower rate. Alright. So that's my, the totality of that story so far. But you were saying, Hey, they paid what it was worth 'cause Yeah, there were eight offers. What do you got on that?

Speaker 3: 27:04

I have a client who got an accepted offer this week. Let me paint the picture for you. She is retirement age. She's never owned a home before. She has been working at the same company for so long. Her first day was three months before I was born. Whoa . That's how long she's been working at this company. You are , uh,

Speaker 1: 27:30

35 for the record, right? Yeah . Three , five and a half , something like that.

Speaker 3: 27:33

May of 1988 is when she started. I was but a swimmer. Yes . Or you know, I was a I was in the floater. Floater. Thank you. And so to say that she has been living and dying with every offer is an understatement.

Speaker 1: 27:52

Okay.

Speaker 3: 27:53

And this accepted offer was the fourth home that she had written an offer on.

Speaker 1: 28:01

And what did she do to make sure the seller would say yes to this one?

Speaker 3: 28:05

Well, but, but dad , uh, before we even get there, what's tough about when you offer a number, it personifies, well, not personifies it like newies. So many other elements that go into the offer. Like you're just like, I'm willing to pay you this number, not just for the house, but also so I can stop getting my heart broken also so that I can actually, you know, move into a house also because I can see myself watching Packer games on like, you know, the back deck in this home. Yeah. That is all represented in one figure, which is the number, but there's so much else that is like loaded into the number. Sure. So my, my client got the accepted offer. This is in the Fox Valley. So home values are moderate. The accepted price is two 30 . So dad, okay , what is this home worth? It's worth, it's worth two 30 worth . Yeah. Right. So I'll tell you what the list price is, but there is a part of me where it's just like, it's not even worth telling you what the list price is because my client was ready, willing , escalator clause waived the inspection contingency. Like she would help the sellers pack up their worldly possessions. Sure . If that's what it took. And , and for her it was two 30, the house was listed for one 90 .

Speaker 1: 29:30

That's big on a percentage basis. Were there other offers or was she just gonna Yes . Okay.

Speaker 3: 29:35

So yes, she paid $40,000 over the list price, but she paid what the house was worth to her.

Speaker 1: 29:43

Yeah. And, and you know what, if you have a long enough horizon or you're putting down a big enough down payment, or you just

Speaker 3: 29:50

Her , by the way, her horizon is , uh, feet first .

Speaker 1: 29:53

Feet first is

Speaker 3: 29:55

Her's .

Speaker 1: 29:55

Horizon feet , first horizon. Yeah. It's like this is the place that I wanna live. And so whatever it takes now, not everybody is having to pay that much over asking. Um, I, I can give you some stats from last month if you like. David, you got another story to share before we wrap it

Speaker 3: 30:11

Up? Yeah . I'm gonna pick between two after we come back. Okay.

Speaker 1: 30:14

You're picking between two. I got a little update on April sales. We'll cover that when we come back. You are listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2: 30:24

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

Speaker 1: 30:32

Welcome back and thanks again for tuning in. Uh , speaking of cash offers, I just ran the number , uh, last month , um, or in the last 30 days. What percentage of offers in the five county Milwaukee area according to the multiple listing service, David, do you think were cash offers?

Speaker 3: 30:49

This is for transactions if they were a dollar up to a billion dollars ? Like everybody? Yeah.

Speaker 1: 30:54

Yeah. Just everybody in the five county . Just single family detached and condos though down to that

Speaker 3: 31:00

And con Okay. Uh , 13% ,

Speaker 1: 31:02

Uh , it's 23 point a half , 23 point a half percent were cash offers. Now we don't know, just like our, you know, buyers in Illinois, we were talking about people, some of these people may have very well gotten

Speaker 3: 31:12

Mortgages . Yeah . When you, is that the directive from the multiple listing service? If it is, if the contract does not read contingent on financing, do you then put that as cash in the close

Speaker 1: 31:23

Sale ? I don't know the answer, but I'll find out. Okay . That's a good question. I've got another quick update. David , uh, upon , you know, further review, we gave a little update on April, really early in May, but now I ran the numbers again. April five, county metro area , uh, single family detached in condos. Home sales were actually up 11% in April. 141. More homes sold for a total of 1,427 with the help of a realtor. Hmm . And , uh, listings. Hey, good news buyers. There were 200 more listings. 1,956 homes came on the market. That's an 11% increase over last year. So a little better than last year, at least in April. Alright, let's kick it back over to you, David. You got one last story to share with us?

Speaker 3: 32:04

Yeah. My , my last one is maybe two mini stories. And my theme is, buyers be nice to your realtors. And by that I mean who you choose as a lender directly impacts the anxiety of your real estate agent. Ooh , I I had maybe two small examples this week. I had a client , uh, get referred to me by their real estate agent. I ended up not actually help being the one that they chose. This is for a VA loan. But I literally got a text in the middle of this week from the agent that said, I wish you were doing this mortgage because the client was moving forward actually with the same national , um, uh, oh , a different national mortgage lender. And it just kind of felt like they were lost in the shuffle. And this agent just felt like they kept bashing their head, you know, against the wall trying to get answers when they were calling an 800 number. Mm . And so, you know, okay, clients like, just know that, or listeners, when you proceed with a national somebody, your agent's anxiety is gonna go up. 'cause they're gonna be wondering, and who am I calling? Uh, my second.

Speaker 1: 33:19

Any chance you can get it back?

Speaker 3: 33:21

No.

Speaker 1: 33:22

Does the buyer No. The , the buyer himself or herself doesn't want. Okay . Nope .

Speaker 3: 33:27

Uh, the , my second story is to be nice to your agents. I got a referral at the end of the week , uh, from an agent who I really enjoy working with. And what is true Dad, in 2024 relationships matter in real estate. I'm gonna say more than any other year that's come before, particularly in a tight environment. And when I can say to a , uh, buyer's agent, you know, I ask them, oh, well , and who is the listing agent on that's helping the seller In this example? You'll be pleased to know. They said, oh, it's , uh, esam . I was like, I know Esam . I've known Esam for 15 years. Yeah. To have that kind of positive momentum regarding your home purchase, a just like really, I think brings you to the top of the pile. You know, when a listing agent can be like, oh, by the way, I know these guys and they know what they're doing. Yeah . That you can be , that who you choose as a lender is gonna help your buyer's agent be less stressed and be able to advocate on behalf of your offer when the listing agent knows who it is that they're looking at. Whose name is on the pre-approval. Well,

Speaker 1: 34:46

You know, one of the other things that I mentioned in our new ad that certainly big banks don't do, is our loan consultants, you included, myself included, we call the listing agent after the offer's been submitted. <laugh>

Speaker 3: 35:01

Oh , separate and, sorry. I had another client , uh, or a re reagent that I talked to, they said, yep , last week I had a client get 16 offers. She said, do you know how many mortgage , uh, professionals called me of those 16? She said, one. And I told, I told this agent, I was like, I need those people to stay in business. What are you talking about? I need them to be no good. Yeah. At , at helping their clients at their craft so that a connect clients can win.

Speaker 1: 35:29

Right. Right. <laugh> . Right. And yeah. Yeah. So, so it's , it's a tough market out there, folks. For buyers great if you're a seller. Uh , but you gotta equip yourself with , uh, the, the folks, the specialists who know their craft. And we would love to help you or your loved one, your friend, neighbor, coworker . Tell 'em to click on the blue button or give us a call. Ask for David. We can ask for me. We'd love to help you. That's all the time we have for today's show. Thanks for tuning in. You've been listening to the Accu 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 Mortgage and Realty Show are solely that of the host or guests of academic mortgage and Accurate Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.