Latest / Connor with Honor: AI, Real Estate and Real Life / Real Estate Advantage programs for Credit Union Home Buyers can carry a heavy burden for buyers agents and lenders

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Real Estate Advantage programs for Credit Union Home Buyers can carry a heavy burden for buyers agents and lenders · Connor with Honor: AI, Real Estate and Real Life

0:00
SPEAKER_00: First, let me start with why.
0:02
SPEAKER_00: We're going to go back and we're going to talk about the home buyer advantage.
0:05
SPEAKER_00: There are a lot of different programs out there.
0:07
SPEAKER_00: If you're a real estate buyer, let me just explain to you a little bit about these particular programs and then who I am.
0:13
SPEAKER_00: I don't represent buyers.
0:14
SPEAKER_00: I represent sellers.
0:16
SPEAKER_00: I'm a seller's only agent.
0:18
SPEAKER_00: Sellersonlyagent.com.
0:20
SPEAKER_00: But I represented buyers for over 21 years in real estate.
0:23
SPEAKER_00: And nothing changes because who's writing offers on my properties through their buyers' representatives?
0:29
SPEAKER_00: Well, of course, other agents.
0:30
SPEAKER_00: And buyers are.
0:31
SPEAKER_00: Buyers are using other agents writing offers.
0:33
SPEAKER_00: So I'm still seeing what's happening to buyers, and I see good representation models, bad representation models, buyers that are paying for services that they're never going to glean.
0:43
SPEAKER_00: And in actuality, the agents probably don't deserve that kind of fodder.
0:47
SPEAKER_00: But I will tell you, this is what you need to look for.
0:49
SPEAKER_00: Now, of course, beginning this whole process, I've been selling real estate since 1998.
0:54
SPEAKER_00: And the reason why I wanted to do this video is a lot of credit unions are using organizations that are trying to get the credit unions more business and good for them.
1:03
SPEAKER_00: The credit unions, typically, most of them at least, and the ones affiliated with fire department, police department, not throwing anybody under the carpet here in front of the bus, on the bus.
1:12
SPEAKER_00: Anyway, I'm not trying to be detrimental to any business, but I am just telling you from my past experience things that I've encountered over time.
1:20
SPEAKER_00: We're going to do a complete buyer webinar, so you're going to know everything to understand about this process.
1:24
SPEAKER_00: But basically, the credit unions are looking to get more business in their credit union.
1:29
SPEAKER_00: So what they do is they have these companies, very clever.
1:32
SPEAKER_00: They've come up with ideas and strategies to help credit unions to do just that.
1:37
SPEAKER_00: So basically, they bring in real estate agents, wives of husbands of kids of daughters of some kind of relation, relational association with a police officer, sergeant, detective, lieutenant, captain, chief, deputy chief, blah, blah, blah, all the way up the chain.
1:53
SPEAKER_00: And they bring these people in to their little group, and sometimes the people that are actually running the credit union, the boards of directors, have some relations there as well.
2:02
SPEAKER_00: So what they're doing is they're bringing on real estate agents to have them represent this program.
2:06
SPEAKER_00: And a couple different things.
2:07
SPEAKER_00: There's some money given back if you select one of these agents.
2:11
SPEAKER_00: Uh that could that's going to go to the buyer credit, the buyer using them.
2:14
SPEAKER_00: And then, of course, they are kind of aligned with the credit union as far as the financing goes, makes sense, correct?
2:21
SPEAKER_00: So they're referring you to said agent.
2:24
SPEAKER_00: Agent has said relationship with other people in the program, and then of course the credit union is going to be the one doing the loan.
2:30
SPEAKER_00: In some cases, maybe the credit union isn't the best one to do the loan.
2:35
SPEAKER_00: Maybe they're more expensive than getting the loan elsewhere.
2:38
SPEAKER_00: Now, is that agent obligated to inform you as the buyer because they're affiliated with the credit union?
2:44
SPEAKER_00: Are they now obligated to say, hey, you know, the credit union is wonderful and lovely and fantastic, but they're charging you X amount extra.
2:54
SPEAKER_00: I know another lender that would do it for a lot less money, get the home loan for you, and it wouldn't cost you as much.
3:01
SPEAKER_00: Is that now ethical for that agent to do that?
3:04
SPEAKER_00: Because basically they're biting the hand that's feeding them with the credit union.
3:09
SPEAKER_00: Well, anyway, it happens.
3:10
SPEAKER_00: So that's something to maybe throw out there in a question mark type format because I had been a member of one of these type of advantage programs with a credit union and my membership uh, well, anyway, it went away because I couldn't ethically, in particular circumstances, say this is your best deal.
3:29
SPEAKER_00: This is your absolute best deal, because they would ask the question, Connor, am I getting a good deal by going with this particular lending entity?
3:36
SPEAKER_00: And I don't care if it's a credit union or somebody else.
3:39
SPEAKER_00: If anybody's getting railroaded and I find out about it, it's up to me by obligation to mention it.
3:45
SPEAKER_00: No, lending is not my wheelhouse.
3:47
SPEAKER_00: I am not a certified lender, I'm not a lender of anything.
3:50
SPEAKER_00: But ultimately, I've been doing real estate since 1998, and I think I have a right to comment.
3:54
SPEAKER_00: I was a cop a long time.
3:56
SPEAKER_00: No, I don't know everything about cars, but if somebody's getting ripped off and I find out about it, I think it's up to me to mention that.
4:02
SPEAKER_00: Sorry, that's just the way that it works.
4:04
SPEAKER_00: So in this particular case, when I see a webinar being put on or some kind of a group association put on with members, with police officers, firefighters, veterans, whoever they may happen to be, with whatever kind of credit union type affiliation, I think it's important to clear the air and understand the players of the game.
4:24
SPEAKER_00: Now you're going to go to this event, and more than likely they're going to be a few different representatives.
4:29
SPEAKER_00: The question to ask is what's the interest of these representatives?
4:32
SPEAKER_00: Are they being fed by the credit union to come up there?
4:35
SPEAKER_00: Or are they like a neutral third party like me that would get nothing in return because I'm a buyer's only agent talking to people how to best buy homes?
4:43
SPEAKER_00: And I would never even refer anybody to the credit union because, well, I don't represent buyers.
4:48
SPEAKER_00: I represent sellers.
4:49
SPEAKER_00: The closest I'm going to come is if an agent's representing the buyer that wants to write an offer on my seller's listing and that approval comes through a credit union, then I need to reach out to the credit union.
4:59
SPEAKER_00: Now, in my mind, as a seller's only agent, I need to know that that lender is available.
5:04
SPEAKER_00: Are they available on weekends, after hours, on holidays?
5:08
SPEAKER_00: A lot of times the credit unions aren't super nimble.
5:11
SPEAKER_00: If you're looking at an actual person that's representing a mainline bank, maybe they're a little bit more nimble.
5:19
SPEAKER_00: It depends.
5:20
SPEAKER_00: Maybe the credit unions have fixed this because as of a couple years ago, it's not really the case.
5:26
SPEAKER_00: You want to talk to somebody in the lending world at a credit union, you're going to have to wait until Monday through Friday, whatever their normal operating business hours are, to try to get somebody to answer a question on a weekend, on a holiday, or after hours, good luck.
5:39
SPEAKER_00: And if you're a listing agent like I am, that's all I do is list and sell real estate here in Southern California.
5:45
SPEAKER_00: Somebody writes multiple offers.
5:47
SPEAKER_00: We have multiple offers on one of my sellers' listings.
5:50
SPEAKER_00: One of those buyers happens to be getting funding by a credit union, and it's a Saturday night, and I have 10 offers to go over, and the credit union looks pretty good, but ultimately there's better offers at hand.
6:04
SPEAKER_00: Now I'm going to reach out to all those lending parties, and if it's cash, then I need to try to verify that those funds are actually real.
6:11
SPEAKER_00: So that could be another hiccup.
6:13
SPEAKER_00: But let's just talk about if everybody's financed.
6:15
SPEAKER_00: I'm going to call all those lenders immediately on my seller's behalf.
6:19
SPEAKER_00: Say, hey, I'm Conor McIver, sellersonlyagent.com here in Santa Clarita.
6:23
SPEAKER_00: I have a listing.
6:24
SPEAKER_00: You do you know this person, this you know, Jose Ramirez.
6:28
SPEAKER_00: Him and his wife Sasha wrote an offer on a listing.
6:31
SPEAKER_00: I have it, 1, 2, 3, 4, via Princesa, and I just want to see if you know anything about them.
6:36
SPEAKER_00: I'm looking for that response.
6:38
SPEAKER_00: What is that going to look like?
6:39
SPEAKER_00: If they say, Well, let me uh let me think about it, that doesn't look good.
6:44
SPEAKER_00: Now I understand they deal with a lot of people, but a lot of times when you go through this pre-approval process, at least for a couple weeks, you're gonna probably have some kind of memory retention of your client.
6:54
SPEAKER_00: And when they say, Oh, absolutely, I know him well, he's a cop, she's a nurse, or whatever the waitress or whatever it happens to be, then of course I feel better, then I can take whatever information I'm asking them because I'm gonna want more nuanced information more than likely than a document that they give me for the approval.
7:10
SPEAKER_00: I'm gonna go back to my seller and I'm gonna say, hey, listen, I talked to this lender, credit union at 5 p.m.
7:15
SPEAKER_00: on a Saturday when they're actually closed, but they call me back and we have this, this, and this.
7:19
SPEAKER_00: So to do those responses, it's kind of good to find out how available those people are that you're gonna be working with.
7:25
SPEAKER_00: Now, of course, the home buyer seminars are good for everyone.
7:29
SPEAKER_00: A lot of them, when you read through the lines, depending on what they're there, if they're there to sell you something, probably not great.
7:35
SPEAKER_00: But if they're there to walk you through that purchasing process to keep you safe, to do it with a completely uh transparent nature, I think that's very, very valuable.
7:45
SPEAKER_00: So let me just give you some straight talk about this process.
7:47
SPEAKER_00: Now, as I talked about before, credit unions partner with vendors.
7:50
SPEAKER_00: There's home advantage, see you realty services, that's one of them, and they'll connect the credit union to approved agents in that wheelhouse.
7:57
SPEAKER_00: Members who use those agents typically get a cash rebate by closing no secret.
8:02
SPEAKER_00: And it says it right there, there is no secret.
8:04
SPEAKER_00: The credit union benefits by capturing the mortgage origination.
8:07
SPEAKER_00: Now, I mentioned refines earlier.
8:09
SPEAKER_00: Credit unions are pretty good at refined.
8:11
SPEAKER_00: It's hard to beat them in a lot of circumstances, but that's why it's important that you check and find out what those fees are going to be.
8:19
SPEAKER_00: But like the Los Angeles Police Federal Credit Union, Fireman's Credit Union, it's it's tough to beat it.
8:23
SPEAKER_00: And some of the credit unions keep all their paper.
8:25
SPEAKER_00: They never resell the loan on the secondary market, which is in some in some people's minds a true good advantage because you're always dealing with it keeps them solvent, it keeps them solid.
8:36
SPEAKER_00: And of course, if they're going to loan you money on a million-dollar house or whatever it happens to be, and it's coming through the credit union, you're kind of showing support by being a part of that process.
8:45
SPEAKER_00: And they're showing support by not selling that loan to anybody else.
8:48
SPEAKER_00: So, in some ways, shapes, or forms, that's not a bad deal.
8:51
SPEAKER_00: And of course, if they can get the origination business, people out there buying residences, they're going to have to loosen up.
8:57
SPEAKER_00: And I mentioned this when I was a part of that home buyers advantage or home advantage program, I mentioned that these agents need to be more available.
9:04
SPEAKER_00: The lending agents need to be more available, but they're stuck.
9:07
SPEAKER_00: You know, they're that nine to five Monday through Friday.
9:10
SPEAKER_00: It's difficult to get them on the phone on a weekend in a competitive market.
9:14
SPEAKER_00: I mean, of course nobody's going to die on a Saturday night.
9:17
SPEAKER_00: Nobody's going to need to call the cops on a Saturday night in reference to purchasing a house.
9:21
SPEAKER_00: But if the listing agent's busy and there's a lot of offers, that offer might not go risk that might go responded, might not be responded to just because they can't get anybody on the horn to talk from the lending angle.
9:33
SPEAKER_00: Is everybody going to wait till Monday?
9:34
SPEAKER_00: No.
9:35
SPEAKER_00: I have many sellers that want to get it done right now because they've been overwhelmed by the amount of showings.
9:40
SPEAKER_00: They just want to get it finished.
9:41
SPEAKER_00: And even though this is maybe potentially another buyer, it's not the buyer's fault.
9:46
SPEAKER_00: It's the lending authorities' fault.
9:48
SPEAKER_00: They should be there to be able to speak with them, and they should be there giving them whatever information is necessary.
9:55
SPEAKER_00: So, this is what we need to get into.
9:57
SPEAKER_00: Credit union is going to, of course, benefit because they're capturing that origination.
10:01
SPEAKER_00: Agent benefits by getting a worm-lean pipeline through the credit union.
10:05
SPEAKER_00: It's like free money.
10:06
SPEAKER_00: They're reaching out to people because they're a member of the program.
10:08
SPEAKER_00: And of course, cops, firemen, military, nurses, actors, all this stuff.
10:12
SPEAKER_00: A lot of times they're going to walk into the bank, they see all the pretty pictures, they say, hey, you know what?
10:17
SPEAKER_00: I want to use somebody from here.
10:18
SPEAKER_00: Do you happen to know a real estate agent?
10:20
SPEAKER_00: Logics, of course, say, Yeah, yeah, yeah, I know who that is.
10:23
SPEAKER_00: Anyway, they give you, they refer somebody, and there's, you know, some uh some handshaking, hugging, and backpatting going on there.
10:31
SPEAKER_00: Now it's not a bad thing.
10:32
SPEAKER_00: You just need to understand that as an incentive structure.
10:35
SPEAKER_00: So the credit union, they capture that loan origination, they build long-term member deposits, they do cross-sell insurance and other products, and the agent network, you're gonna, if you're a member of this, those agents are gonna receive a warm buyer lead.
10:49
SPEAKER_00: They're gonna pick uh some kind of a referral fee or commissions, commission split incentivized to steer buyers, of course, back to the credit union, right?
10:57
SPEAKER_00: And none of it's illegal, just to let you know, the small print here, none of it's illegal, but it's just it's worth knowing before you choose your team.
11:04
SPEAKER_00: And again, sellers only agents.
11:06
SPEAKER_00: So I'm not doing this because you're gonna come work with me.
11:08
SPEAKER_00: I I'm not gonna even refer you.
11:10
SPEAKER_00: Just again, just good information for you to know.
11:13
SPEAKER_00: Now, is the credit union the best lender?
11:15
SPEAKER_00: Maybe, maybe not.
11:15
SPEAKER_00: Credit unions are excellent for refinances.
11:18
SPEAKER_00: As I mentioned, they can be very competitive on rates and fees.
11:21
SPEAKER_00: But purchase loans, that landscape changes a little bit.
11:23
SPEAKER_00: Some credit unions have a slower processing time that might be able to cost you a deal.
11:27
SPEAKER_00: Not all credit unions offer a full range of loan products.
11:30
SPEAKER_00: FHA, VA, USDA.
11:32
SPEAKER_00: Now, you go, you say, hey, I'm gonna VA, and lots of cops are veterans.
11:38
SPEAKER_00: But a lot of them get farmed out to another company, another third-party company.
11:42
SPEAKER_00: Now you're not dealing with a credit union anymore because some of them might not be able to write a VA loan.
11:47
SPEAKER_00: But you want to use your VA paper.
11:49
SPEAKER_00: You want to use all that hard work, DD 214, and all that fancy stuff to approve for a VA loan.
11:54
SPEAKER_00: That's what you want to use because a lot of these are low and zero-down type loans.
11:58
SPEAKER_00: It's good for you.
11:59
SPEAKER_00: Interest rates are very competitive, but they farm you out.
12:02
SPEAKER_00: So in actuality, you going to them, they're gonna get some kind of a fee, I would assume, when they refer you out to somebody, but you're not dealing with the source at that point.
12:10
SPEAKER_00: You're dealing with somebody else.
12:11
SPEAKER_00: Just something to know.
12:12
SPEAKER_00: Is that good or bad?
12:13
SPEAKER_00: You got to explore that topic for yourself.
12:15
SPEAKER_00: I can't tell you.
12:16
SPEAKER_00: Some cases I haven't seen a hitch, some cases it's been a nightmare.
12:20
SPEAKER_00: But some people want to work with me and have a great experience, some people work with me and have a horrible experience.
12:25
SPEAKER_00: So there you go.
12:26
SPEAKER_00: Your agent should help compare at least two to three lenders.
12:29
SPEAKER_00: And I throw it back on the agent because it it seems like nobody asks anybody's opinion anymore.
12:37
SPEAKER_00: Everybody's scared to talk because they're worried about who's gonna sue them.
12:41
SPEAKER_00: I I think it's okay.
12:42
SPEAKER_00: I think it's okay to ask what people recommend.
12:44
SPEAKER_00: And let's say your beginnings with the credit union.
12:47
SPEAKER_00: Maybe you like the lender so much you ask them, what do you think?
12:50
SPEAKER_00: Is this agent they're referring me to?
12:51
SPEAKER_00: Are they okay?
12:52
SPEAKER_00: Do you like somebody better?
12:54
SPEAKER_00: And then you'll see the true alignment.
12:56
SPEAKER_00: Maybe the agent they're referring to is a you as a soup sandwich.
12:59
SPEAKER_00: They're horrible.
13:00
SPEAKER_00: They're not gonna be any help to you because they've experienced it before.
13:03
SPEAKER_00: Maybe they're lazy, they don't work hard, they're not gonna show you any more than a few properties instead of all the properties.
13:08
SPEAKER_00: They're playing all these different games.
13:10
SPEAKER_00: Maybe they have experience, maybe they know that they don't get their offers accepted because of some reason.
13:16
SPEAKER_00: I think that should be well known.
13:18
SPEAKER_00: I think they should mention that, and those agents should probably not be part of that program.
13:22
SPEAKER_00: All right, so we'll move on.
13:24
SPEAKER_00: The commission rule changes and what what that means for you.
13:27
SPEAKER_00: So right now, the NAR settlement did change how real estate commissions work.
13:31
SPEAKER_00: It's it's always kind of been very transparent, but in some markets apparently not.
13:36
SPEAKER_00: In fact, the lawsuit was showing that it wasn't transparent at all, so they had to put some language.
13:41
SPEAKER_00: So if you're gonna be looking at properties, you're gonna be signing something called a buyer-broker agreement.
13:46
SPEAKER_00: It's going to be that agreement between you and said agent.
13:49
SPEAKER_00: Now, if the credit union refers to said agent, then you're gonna be dealing with that agent.
13:54
SPEAKER_00: They're gonna have you sign a document.
13:55
SPEAKER_00: On that document is gonna be what you're gonna be paying to secure the house and where that payment is coming from.
14:01
SPEAKER_00: Are you gonna pay the agent directly to represent you, or are you gonna try to get the seller to pay your agent's fee?
14:08
SPEAKER_00: And then are you gonna split that accordingly?
14:10
SPEAKER_00: How is that gonna work?
14:11
SPEAKER_00: It could be all in on either side, it could be some kind of a percentage, it just depends.
14:17
SPEAKER_00: Buyers may now need to negotiate and pay their own agent's commission.
14:21
SPEAKER_00: Could be in some of the cases when I'm representing a seller, they're not gonna pay a buyer's agent.
14:26
SPEAKER_00: They just don't want to.
14:26
SPEAKER_00: It's part of it's part of them not wanting to.
14:29
SPEAKER_00: Now, of course, you extrapolate that out to present terms and what's happening in the market.
14:34
SPEAKER_00: A majority of real estate sellers seem to be contributing.
14:38
SPEAKER_00: But it's what's that number look like to them?
14:40
SPEAKER_00: When I have a flat fee for my seller representation, again, that carries with it a different weight.
14:46
SPEAKER_00: So then when they see that buyer's agent coming in wanting a 3% or 4% or even higher in some cases, it does uh some damage to the seller's mindset, and a lot of times it turns them off and they're not gonna move forward.
14:59
SPEAKER_00: It's the seller's choice.
15:00
SPEAKER_00: Just like when you get ready to sell your house and you call me, we'll have that whole conversation about what I charge, my fixed fee real estate, and then what we could offer to the other side if you want to, and then talk about the dynamics of the market.
15:12
SPEAKER_00: Maybe everybody else offering it, maybe that's gonna be your best position.
15:16
SPEAKER_00: Then it's gonna come down to having a conversation of what that amount look like.
15:20
SPEAKER_00: Now, buyers' agents may need now to negotiate and pay their own agent.
15:23
SPEAKER_00: Like I said, it means hiring the right buyers' agents more important than ever.
15:27
SPEAKER_00: I don't attach myself to a listing on a seller's side.
15:30
SPEAKER_00: If you come to me, I don't represent buyers first and foremost, but if you're coming to me on one of my listings, the way that I function is if you don't have an agent, I'll walk you through it, I'll show you everything, open up the cabinet, show you the back door, show you the toilet under the sink, the roof.
15:45
SPEAKER_00: We'll have a full-blown conversation about the house.
15:48
SPEAKER_00: I'll invest that time for my seller's benefit, but I will not represent you as the buyer.
15:52
SPEAKER_00: So then you say, you know what, Connor, I don't know anybody.
15:55
SPEAKER_00: Would you refer me?
15:57
SPEAKER_00: No, I'm not gonna refer you.
15:59
SPEAKER_00: You're gonna have to go find your own agent.
16:00
SPEAKER_00: Can you recommend an agent?
16:02
SPEAKER_00: No.
16:02
SPEAKER_00: I don't even want any kind of a I I want to keep my distance.
16:05
SPEAKER_00: I represent the seller.
16:07
SPEAKER_00: You go get your own agent because that's the way it should be in my mind, and you go, you go after me with your own agent.
16:13
SPEAKER_00: I think that's the most proper way to do this.
16:15
SPEAKER_00: Now, a lot of agents do both.
16:17
SPEAKER_00: It's not against the law to do both.
16:18
SPEAKER_00: It's called dual agency.
16:20
SPEAKER_00: It's cool.
16:20
SPEAKER_00: I could represent somebody on one of my listings, and years ago I have.
16:24
SPEAKER_00: It's just not comfortable.
16:25
SPEAKER_00: I want to be on my seller's side.
16:27
SPEAKER_00: You should have an agent that's on your side 100%.
16:30
SPEAKER_00: Again, that's something you need to think about.
16:33
SPEAKER_00: You need to understand what you're paying for before you sign one of these buyer broker agreements.
16:37
SPEAKER_00: Now, seller's only agent, we went into that ad nausea.
16:41
SPEAKER_00: How to hire a buyer's agent?
16:42
SPEAKER_00: This is where the the rubber meets the road here in our particular webinar.
16:46
SPEAKER_00: Now, you don't you wouldn't hire a contractor without checking references.
16:50
SPEAKER_00: Well, you're not going to hire an agent without asking some hard questions.
16:53
SPEAKER_00: So, first and foremost, how many buyers have you closed in the last 12 months?
16:57
SPEAKER_00: It doesn't mean if they say a hundred that that's good.
17:00
SPEAKER_00: Maybe it's different, it would be very difficult for one buyer's agent to close 100 transactions all by themselves.
17:07
SPEAKER_00: Even with a complete support staff, it's probably the case that there are going to be other people showing you properties.
17:14
SPEAKER_00: Maybe this agent is the lead agent.
17:17
SPEAKER_00: Maybe they're some super wazoo listing agent.
17:19
SPEAKER_00: They have a whole bunch of little buyers' agents, as they like to say, which is atrocious, but maybe they have these buyers' agents working for them, they're going to send you out with them.
17:27
SPEAKER_00: And that's fine.
17:28
SPEAKER_00: But you just need to know how it works.
17:31
SPEAKER_00: In addition to that, so the number they give you, you want direct personal involvement because that's really where the rubber meets the road.
17:38
SPEAKER_00: You're not hiring somebody on their team, you're hiring them.
17:41
SPEAKER_00: Just like a seller coming to me wanting me to list their house and they never see me again until closing when I get my check.
17:48
SPEAKER_00: That's a problem.
17:49
SPEAKER_00: I need to be there every step of the way.
17:51
SPEAKER_00: Yes, I have a support system, escrow, title, transaction coordinator, all that fancy AI crap.
17:56
SPEAKER_00: But at the end of the day, I'm the one whose head's on the chopping block.
18:00
SPEAKER_00: I'm the name on the business card, I'm the name on the listing.
18:02
SPEAKER_00: They should be able to contact me and get results from me, listing updates from me.
18:07
SPEAKER_00: And I shouldn't be hiding in the Ralph's supermarket when I see them.
18:10
SPEAKER_00: I should be walking up.
18:11
SPEAKER_00: Hey, how are you doing?
18:12
SPEAKER_00: I'm sorry, glad we talked this morning.
18:13
SPEAKER_00: I know I didn't have any further news about where we are in our current transaction, but it's good to see it, Ralph's.
18:19
SPEAKER_00: How are you doing?
18:19
SPEAKER_00: You're here shopping for some baloney?
18:21
SPEAKER_00: I don't know what whatever I would say.
18:22
SPEAKER_00: All right.
18:23
SPEAKER_00: So then on the other side of it, you want to ask, what's the average list of sale price ratio for your buyers?
18:29
SPEAKER_00: How does it look?
18:29
SPEAKER_00: Are they are they writing offers at 100% getting most of them accepted?
18:35
SPEAKER_00: How are they formulating their offers?
18:37
SPEAKER_00: That and that question goes to show how their abilities are as an offer writing agent.
18:43
SPEAKER_00: If they've been in the business any amount of time, they're going to know that number.
18:46
SPEAKER_00: Do you take also take listings?
18:48
SPEAKER_00: If so, how do you handle any kind of conflict that comes up?
18:50
SPEAKER_00: If they're representing the seller and they're representing the buyer on that same transaction, and the seller told them, Listen, don't you even come with me with a list of repairs from the buyer?
19:00
SPEAKER_00: At that time, they should have stood up to the seller because they represent buyers and said, Listen, Jack, I can't hide these from you.
19:07
SPEAKER_00: If I represent the buyer on your residence and the buyer wants me to submit to your request for repairs, I can't say, no, I'm not going to unless now I have that conversation with the buyer.
19:17
SPEAKER_00: If you use me, understand that I have an agreement with my seller, who I had this agreement first, and if you use me and you want to request repairs, I'm going to tell you right now there's no way that's going to be submitted to the seller because that's the seller's choice, and we've already agreed it, and it's written in contract.
19:33
SPEAKER_00: I don't know if they would be used, but that's how that's supposed to happen.
19:37
SPEAKER_00: So you should ask them how do you handle those conflicts?
19:40
SPEAKER_00: How have you handled those types of conflicts?
19:43
SPEAKER_00: Will you personally attend inspections and walkthroughs?
19:46
SPEAKER_00: There's the time element.
19:48
SPEAKER_00: Inspections can go three, four, five hours.
19:50
SPEAKER_00: Walkthroughs, eh, not too long, a couple hours.
19:53
SPEAKER_00: But still, are you going to be there personally?
19:55
SPEAKER_00: Are you going to send your secretary, you know, whomever that may be?
19:59
SPEAKER_00: What happens if I want to cancel the agreement?
20:02
SPEAKER_00: Beautiful question.
20:03
SPEAKER_00: And I would get some clear language on that.
20:05
SPEAKER_00: What does that look like?
20:06
SPEAKER_00: What does it take?
20:07
SPEAKER_00: Now, here's some red flags on a buyer's agent.
20:10
SPEAKER_00: They refuse to let you interview other agents.
20:13
SPEAKER_00: They're too all in all of a sudden.
20:15
SPEAKER_00: They want to take you to dinner and go to drinks before even having brunch with you.
20:19
SPEAKER_00: They push you to sign an agreement before showing you anything.
20:22
SPEAKER_00: Actually, that part has to happen.
20:25
SPEAKER_00: If they do it the other way in reverse and they want to show you some stuff before you sign an agreement, it doesn't happen.
20:31
SPEAKER_00: You have to sign a buyer-broker agreement.
20:34
SPEAKER_00: Now, if they're going to meet you at open houses, maybe to kind of break the water and break the water, kind of ease in, see how that relationship works, you know, have them show you an open house.
20:45
SPEAKER_00: Have them walk you through it and show you everything.
20:47
SPEAKER_00: Maybe that's that's another way, but ultimately everything needs to have an agreement before you go out with any of these buyers' agents.
20:53
SPEAKER_00: That's the change in the law as of January 1st, 2025, based on the decision, the lawsuit being settled November, August, excuse me, August 17th, 2024.
21:04
SPEAKER_00: Look it up.
21:05
SPEAKER_00: So they only recommend one lender, especially if they have only one they have a financial relationship with.
21:12
SPEAKER_00: Yeah, you know, we know people in the business that do a good job.
21:15
SPEAKER_00: Whether it's a credit union that we're talking about, or whether it's a mainline bank, one of their representatives, maybe it's a mortgage broker.
21:22
SPEAKER_00: We know people that do great jobs in the particular lending world.
21:26
SPEAKER_00: So that being the case, you know, maybe your agent referring somebody's good.
21:30
SPEAKER_00: There just can't be any kind of uh under table agreements where money's being kicked back.
21:36
SPEAKER_00: That's completely illegal.
21:37
SPEAKER_00: I don't think that's happening much anymore.
21:40
SPEAKER_00: But Wild Wild West, when I first started in real estate, there was a lot of stuff that was uh very questionable in the practices in the world.
21:47
SPEAKER_00: All right.
21:48
SPEAKER_00: So they rush you through inspections or discourage you from having a home inspection.
21:52
SPEAKER_00: Yeah.
21:53
SPEAKER_00: Beautiful red flag there.
21:54
SPEAKER_00: You gotta do it.
21:55
SPEAKER_00: Even if it's a new house, you gotta do it.
21:57
SPEAKER_00: And I'll tell you why the new house.
21:59
SPEAKER_00: The new House, a lot of times these contractors go in, stuff hasn't really been run all the way.
22:06
SPEAKER_00: So even if you have the warranty and the home inspection and the builder's inspection when they do the walkthrough, that's great.
22:14
SPEAKER_00: I've had five times, literally five times, when a home inspector doing an inspection on a brand new house for a client has discovered things that when the client moved in would have been completely detrimental, pipes that hadn't been connected inside walls, bottoms of bathtubs, traps, these sorts of things.
22:34
SPEAKER_00: They weren't actually connected by the people that did the construction.
22:38
SPEAKER_00: They were, of course, signed off on by the city, but apparently maybe somebody was out to lunch that day.
22:44
SPEAKER_00: So it would have created a massive flood mass.
22:47
SPEAKER_00: Would all of that stuff have been taken care of?
22:49
SPEAKER_00: Yes.
22:49
SPEAKER_00: But who the hell has time to go and take care of stuff that might have been able to be avoided?
22:55
SPEAKER_00: It's not like you're going to get a brand new house.
22:57
SPEAKER_00: You're going to get the same house.
22:58
SPEAKER_00: They're just going to clean up some crap and have to go in and inconvenience you from living your best life and exploring your own happiness.
23:06
SPEAKER_00: All right.
23:06
SPEAKER_00: They can't explain the new commission rules clearly.
23:09
SPEAKER_00: They stutter.
23:11
SPEAKER_00: They can't explain their own worth.
23:12
SPEAKER_00: Why should you use me?
23:14
SPEAKER_00: Why am I valuable?
23:15
SPEAKER_00: I think that's an issue.
23:17
SPEAKER_00: They tell you what you want to hear instead of what you need to hear.
23:21
SPEAKER_00: Now, here's some green flags on a buyer's agent.
23:23
SPEAKER_00: They encourage you to shop lenders and compare.
23:25
SPEAKER_00: They explain the buyer representation agreement line by line.
23:28
SPEAKER_00: They have a track record of closed transactions in your target area.
23:33
SPEAKER_00: If they have a business card that has a Palo Alto address on it and you use them to buy real estate Granada Hills, explain it to me, please.
23:44
SPEAKER_00: Explain to me why you have a Palo Alto Alto address.
23:48
SPEAKER_00: And is that maybe where all your business is coming from?
23:50
SPEAKER_00: And you pick me up as a credit union referral, and now you're really you're representing me on a residence that I'm not familiar with the area?
23:59
SPEAKER_00: Because there's some nuances from city to city that the agent should understand before they start representing you.
24:06
SPEAKER_00: Now they attend inspections personally and advocate for repairs.
24:12
SPEAKER_00: They tell you not to buy a property when it's not right for you.
24:15
SPEAKER_00: That's a good one.
24:16
SPEAKER_00: When's the last deal you killed?
24:17
SPEAKER_00: That's lovely.
24:19
SPEAKER_00: They're transparent about how to get paid and what it actually costs you.
24:23
SPEAKER_00: Love that stuff.
24:24
SPEAKER_00: Love it.
24:24
SPEAKER_00: So understand that buyer representation agreement.
24:26
SPEAKER_00: Now it's required before an agent can show you homes.
24:30
SPEAKER_00: Very, very true.
24:30
SPEAKER_00: It spells out the agent's commission and who pays it.
24:33
SPEAKER_00: Duration matters.
24:34
SPEAKER_00: Avoid these long-term agreements.
24:36
SPEAKER_00: But 90 days is the maximum if you like your agent.
24:39
SPEAKER_00: Why not?
24:40
SPEAKER_00: But if you start to not like your agent, then you need to tell them, hey, I don't like you and I want to get out of the contract.
24:46
SPEAKER_00: So duration matters, avoid those long-term agreements, like I said, until you know the agent and they seem like they're fighting for you.
24:52
SPEAKER_00: Hey, go all in.
24:54
SPEAKER_00: Negotiate the terms.
24:55
SPEAKER_00: Everything in real estate is negotiable.
24:57
SPEAKER_00: If your agent will not explain every section, well, that's your answer on whether you should be hiring them or not.
25:03
SPEAKER_00: Shop your lender like your life depends on.
25:06
SPEAKER_00: It's 30 years, folks.
25:07
SPEAKER_00: Most mortgages, 30 years.
25:09
SPEAKER_00: 30 years, 30 years isn't a walk in the park.
25:12
SPEAKER_00: There's very few residences, and you can ask other agents in the industry.
25:16
SPEAKER_00: There's very few that actually get paid off.
25:18
SPEAKER_00: Stuff happens.
25:19
SPEAKER_00: People refinance, they pull out money, they sell before the 30 years is up.
25:24
SPEAKER_00: Lots of different things happen.
25:25
SPEAKER_00: But that's a longtime agreement.
25:27
SPEAKER_00: A 0.25% interest, a difference, excuse me, in your interest rate on a$600,000 loan is roughly$90 a month.
25:35
SPEAKER_00: Over 30 years, that's$32,400.
25:38
SPEAKER_00: That's a big deal.
25:39
SPEAKER_00: So if one lender says we can do it for this, get it in writing.
25:43
SPEAKER_00: Have them put it in writing.
25:44
SPEAKER_00: If they say we can get you a loan for this, even saying that's somewhat questionable because the rate hasn't been locked and rates fluctuate every day.
25:52
SPEAKER_00: The rate's not based on this big Fed funds rate everybody talks about.
25:56
SPEAKER_00: Where the Fed share is going to be replaced and Powell, very timely.
26:01
SPEAKER_00: Powell's going to be replaced, somebody else put in there that loves the government and all this other stuff.
26:06
SPEAKER_00: That's great.
26:07
SPEAKER_00: But the interest rates for mortgages are based mostly on the 10-year bond.
26:11
SPEAKER_00: So when the world is a happier place and people love and trust the United States, that interest rate typically goes lower because they're buying the 10-year bonds.
26:20
SPEAKER_00: When they're selling off 10-year bonds, is when inflation starts to get high, the economy gets a little rocky, and just like now with the Iran war and the hormous and holding back the oil and helium and all this other stuff, interest rates are going up.
26:33
SPEAKER_00: So that's something to be aware of.
26:35
SPEAKER_00: Again, get quotes from three lenders, uh, your credit union, direct lender, and a mortgage broker.
26:40
SPEAKER_00: It's okay.
26:41
SPEAKER_00: Everybody runs your credit, it's okay.
26:43
SPEAKER_00: It'll be fine.
26:44
SPEAKER_00: Just make sure you explain to everybody, I'm only testing the waters.
26:48
SPEAKER_00: A lot of the folks, they say, well, if I'm gonna run your credit, it costs me, I don't know what it costs, 30, 40, 50, 60 bucks.
26:54
SPEAKER_00: Again, not my wheelhouse.
26:56
SPEAKER_00: But I don't know if that's a reason.
26:58
SPEAKER_00: I don't know if a good quality lender would charge.
27:00
SPEAKER_00: Like if somebody calls me and says, listen, I want to see what my house is worth, I'm not gonna charge your money to do a CMA.
27:06
SPEAKER_00: Does it cost me any money?
27:08
SPEAKER_00: It costs me time, and time is money.
27:10
SPEAKER_00: On the lending end of it to pull somebody's credit report, it might cost them.
27:14
SPEAKER_00: Maybe that's part of the charge.
27:15
SPEAKER_00: Maybe they'll say, hey, listen, at some point I'll be including this$35 credit pull or whatever it is.
27:20
SPEAKER_00: But you do your investigations because there's some people say, well, if you have multiple people pull your credit, you're gonna have a problem.
27:28
SPEAKER_00: My understanding of the process, if multiple people pull your credit on a on you trying to purchase a residence or get a mortgage, then more than likely that's understood and acceptable to some point.
27:39
SPEAKER_00: But do your research before you start having every Tom, Dick, and Harry, give your social security number, have you pull your credit, have them pull your credit.
27:46
SPEAKER_00: Just make sure you're not putting yourself in harm's way.
27:49
SPEAKER_00: Where would you find out about that?
27:51
SPEAKER_00: Ask your consummate real estate professional and then say, listen, Jack, I'm hiring you, and you told me that it's not going to be a problem for me to have three different lenders pull my numbers.
28:02
SPEAKER_00: I just want to verify that's going to be okay.
28:04
SPEAKER_00: There's a process called a rapid rescore.
28:06
SPEAKER_00: Ask your lender about that.
28:07
SPEAKER_00: If you have multiple inquiries from mortgage lenders, you know, you're probably going to be fine.
28:12
SPEAKER_00: But again, find out the truth to that.
28:14
SPEAKER_00: It's a whole different animal if you go to the Ford dealership and want to buy one of those fancy Ford Raptors fully outfitted for$130,000 when you're an escrow.
28:24
SPEAKER_00: Don't do it.
28:24
SPEAKER_00: Don't change anything.
28:26
SPEAKER_00: I don't even care if you have a$400 credit line on your JC Penny card and you want to wipe it out and pay it off because your uncle into some money.
28:33
SPEAKER_00: Don't do it.
28:34
SPEAKER_00: Make sure you talk to your lender before you pay anything off, before you change anything, before you go to pottery barn and want to get that cool enamel crockery, because now you have a decent kitchen to cook in.
28:45
SPEAKER_00: Don't do it.
28:46
SPEAKER_00: Make sure you bounce any kind of credit change, even paying something off, because of course that makes sense.
28:54
SPEAKER_00: It could only make you better.
28:55
SPEAKER_00: No, I'll throw bullshit on that.
28:57
SPEAKER_00: Don't pay anything off until you get all the way through the process and close the deal.
29:01
SPEAKER_00: Don't change anything unless your lender blesses it.
29:04
SPEAKER_00: And if they're going to bless it, make sure they put it in writing.
29:07
SPEAKER_00: You know, hey, uh, hey Jack, it's Connor.
29:09
SPEAKER_00: Listen, I just want to make sure I'm going to pay off this JC Penny card of all that underwear I bought.
29:14
SPEAKER_00: I just want to make sure it's going to be okay.
29:15
SPEAKER_00: And you said today it was okay over the phone.
29:18
SPEAKER_00: I just want to follow up in an email to make sure it's going to be okay.
29:20
SPEAKER_00: It's not going to hurt my chances by mass.
29:22
SPEAKER_00: Yeah, Connor, it's fine.
29:23
SPEAKER_00: Love the underwear.
29:24
SPEAKER_00: It's going to be cool.
29:25
SPEAKER_00: You pay off that credit card and feel free, brother.
29:28
SPEAKER_00: And then I got it right.
29:29
SPEAKER_00: So if I pay it off and something bad happens, I go back to Jack and say, Jack, you said the lingerie was okay.
29:35
SPEAKER_00: And anyway, Jack's put on the put on notice.
29:38
SPEAKER_00: All right, we got that complete loan estimate documents side by side.
29:42
SPEAKER_00: You're going to get these uh these lending documents that are going to so charge us.
29:46
SPEAKER_00: There's going to be a lot of junk on there.
29:49
SPEAKER_00: Maybe, and I'm not saying to do this, but you know, we have AI, we have large language models, we have all these different ones out there.
29:56
SPEAKER_00: Be wary putting stuff into there because there's sensitive information on it.
30:00
SPEAKER_00: But I've heard rumor of people using these systems to compare multiple documents and find out which one's the best.
30:07
SPEAKER_00: Now, if you're good with your eyeballs and your brain, you do it yourself.
30:11
SPEAKER_00: There's ways to do it though.
30:13
SPEAKER_00: Maybe.
30:13
SPEAKER_00: Maybe another way is to say, listen, um, I have these two other lenders that gave me this information.
30:19
SPEAKER_00: You know, what do you think?
30:20
SPEAKER_00: And the same thing with the buyer's agent.
30:22
SPEAKER_00: I don't know if that's that's legal, ethical, or moral or whatever you think about it, but hey, this buyer's agent's charging me this, this one's this.
30:28
SPEAKER_00: You know, can you do something better than they do?
30:30
SPEAKER_00: What would you charge me to represent me as a buyer?
30:33
SPEAKER_00: I know there's going to be a lot of hate over all of this.
30:35
SPEAKER_00: Same thing on the seller's end of it.
30:37
SPEAKER_00: There are people, people like my structure as far as being the fee that I charge.
30:41
SPEAKER_00: And it's the same on everything.
30:43
SPEAKER_00: And I'm sorry for the people that have a$30,000 mobile home.
30:46
SPEAKER_00: It's the same fee for that as a$70 million house in Beverly Hills.
30:49
SPEAKER_00: Same thing.
30:50
SPEAKER_00: It's all across the board.
30:51
SPEAKER_00: That's the way that I do it because to me, there's no extra work involved from the mobile home all the way to the$40 million estate, besides maybe some pictures being a little bit more dramatic and more costly because you have a$25,000 square foot estate versus a you know$1,000 square foot mobile home.
31:09
SPEAKER_00: Maybe I should rethink that.
31:11
SPEAKER_00: Alright, so let's move on.
31:13
SPEAKER_00: So you're comparing the documents, asking about lenders' fees, origination charges, discount points, and the and the like.
31:21
SPEAKER_00: You definitely, definitely want to do that research.
31:24
SPEAKER_00: Um, credit union may be the best option.
31:27
SPEAKER_00: Okay, so don't get don't this isn't a credit union hate video.
31:30
SPEAKER_00: This is an educational video.
31:32
SPEAKER_00: Five mistakes first-time buyers make before escrow.
31:36
SPEAKER_00: Here we go.
31:37
SPEAKER_00: We talked about this.
31:38
SPEAKER_00: Making large purchases or opening new credit lines before closing.
31:42
SPEAKER_00: Yeah, big mistake.
31:43
SPEAKER_00: Things that need to be avoided.
31:46
SPEAKER_00: Now, number two, skipping home inspection to save money.
31:49
SPEAKER_00: Uh, that's that$500 fee or whatever it's gonna be to a home inspector, worth its weight in gold.
31:55
SPEAKER_00: Because from that, you're getting a documented repair request uh estimate and a repair request uh the verbiage that you need to put in there.
32:06
SPEAKER_00: And a good agent is gonna be able to take that home inspection report and then put together a list of proposed repairs.
32:12
SPEAKER_00: Okay, you walk through a property, you see that the carpet's crappy and the paint's crappy, and this is crappy, and that's crappy.
32:18
SPEAKER_00: You know what?
32:18
SPEAKER_00: That's it is what it is.
32:19
SPEAKER_00: You write your offer accordingly, understanding that's how this property is.
32:23
SPEAKER_00: All properties are sold as is.
32:25
SPEAKER_00: Anything else is negotiation.
32:27
SPEAKER_00: So you go, you have your home inspector, termite, and everybody go in there and do all their little inspections.
32:31
SPEAKER_00: They come back with some positive hits on various things you weren't aware of during your first walkthrough.
32:36
SPEAKER_00: So then you're gonna say, hey, listen, Mr.
32:38
SPEAKER_00: and Mrs.
32:38
SPEAKER_00: Agent, we're gonna go and put together a query request.
32:40
SPEAKER_00: I think your agent would probably uh seek you out and tell you this is the time to do that, and then you make a determination as to what's gonna be listed on there.
32:48
SPEAKER_00: Health and safety always first.
32:50
SPEAKER_00: Cosmetic stuff that you've seen or should have seen?
32:52
SPEAKER_00: Yeah, probably not.
32:54
SPEAKER_00: Probably not.
32:54
SPEAKER_00: But again, you be you be you.
32:57
SPEAKER_00: At the end of the day, the seller can only say, no, I'm not gonna do it.
33:00
SPEAKER_00: That's all that's the only power they have.
33:02
SPEAKER_00: Now, then you can cancel, right?
33:04
SPEAKER_00: And then the seller, the seller can't cancel, the seller's tied in a little bit more.
33:08
SPEAKER_00: Just for you asking, the seller could be put on notice, could get pissed off, or whatever it may be.
33:14
SPEAKER_00: But in real estate, and I'll tell this to you right now, do not let this be an emotional battle for you.
33:21
SPEAKER_00: This is a business purchase.
33:22
SPEAKER_00: This is a decision, needs to be business oriented.
33:25
SPEAKER_00: It is what it is.
33:26
SPEAKER_00: The seller, if they get emotional, I tell my sellers all the time, don't get involved in this emotional banter.
33:33
SPEAKER_00: You are there to sell your house.
33:34
SPEAKER_00: I'm there to represent you in that in that fact.
33:38
SPEAKER_00: Now, if the buyer comes in and wants to ask for everything to be repaired, plus a$50,000 credit, you have a choice.
33:45
SPEAKER_00: You have a complete choice.
33:47
SPEAKER_00: You can say no.
33:48
SPEAKER_00: And the agent on the other side should be informing their buyer that the seller could say no.
33:53
SPEAKER_00: And then the buyer can say, we're going to cancel.
33:55
SPEAKER_00: All this stuff has to be balanced and weighed out, but to tie into it emotionally on either side, it just creates an issue.
34:03
SPEAKER_00: It really does.
34:04
SPEAKER_00: So whenever you're looking to purchase real estate, you want to make sure that you are paying attention.
34:10
SPEAKER_00: Now, skipping the home inspection to save money, that's a problem.
34:14
SPEAKER_00: Hiring that first agent, recommended without interviewing others.
34:18
SPEAKER_00: Yeah, you might want to talk to a couple just to get an idea.
34:21
SPEAKER_00: Is falling in love with a house before you analyze the numbers?
34:25
SPEAKER_00: All right.
34:25
SPEAKER_00: Emotional, yeah, sure, I get that.
34:27
SPEAKER_00: You know, you see something, maybe you've looked at 50 houses and you're going nuts over there by the lake, and then you see one, and it's like, God, this is it.
34:35
SPEAKER_00: And then I gotta buy it.
34:37
SPEAKER_00: And maybe you've missed out on a couple already because of whatever offering strategy your agent had, and maybe you didn't offer enough.
34:44
SPEAKER_00: Maybe the property happened to be a hot property just released, multiple offers, and you didn't win the cut.
34:49
SPEAKER_00: Okay, it happens.
34:51
SPEAKER_00: But don't try not to, easier said than done, try not to let this drive you into a tizzy and have you actually sacrifice yourself.
35:00
SPEAKER_00: You definitely want to make sure you don't make an offer knee-jerked on your falling in love with something, hanging those mental curtains.
35:10
SPEAKER_00: You don't want to do that.
35:11
SPEAKER_00: And finally, not getting approved before starting the home search.
35:15
SPEAKER_00: You definitely want to get approved.
35:16
SPEAKER_00: You got to see where that number is, folks.
35:18
SPEAKER_00: It's hugely important.
35:19
SPEAKER_00: All right.
35:20
SPEAKER_00: So, what not to tell, what your agent might not tell you.
35:23
SPEAKER_00: Here's some insider stuff.
35:24
SPEAKER_00: The listing agent works for the seller.
35:26
SPEAKER_00: Sometimes that happens, and their job is to get the highest price.
35:31
SPEAKER_00: I'm the listing agent.
35:32
SPEAKER_00: I work for sellers, but sellers only.
35:34
SPEAKER_00: So that's it.
35:35
SPEAKER_00: My job is to get the highest price.
35:37
SPEAKER_00: I have nothing to do with you.
35:38
SPEAKER_00: It's your agent coming in that's going to be dealing with me.
35:41
SPEAKER_00: An open house is a lead generation tool for the listing agent, not a service for the seller.
35:46
SPEAKER_00: Yeah, that's true.
35:46
SPEAKER_00: Um, also, the people that are hosting the open houses might not actually be the listing agent.
35:51
SPEAKER_00: So if you're a listing agent hunter, which people like that exist, make sure you know that the agent in the house might not even be from the same company as the seller's agent.
36:02
SPEAKER_00: Dual agency, that's when one agent is representing both the seller and the buyer, both sides, legal in California, but rarely in your best interest as a buyer.
36:11
SPEAKER_00: It's hard to play bipolar with myself.
36:13
SPEAKER_00: I've had a few transactions where I represent the buyer.
36:17
SPEAKER_00: Thank God it was all smooth, but there's a lot of extra talk that has to take place to be able to make that work.
36:22
SPEAKER_00: And ultimately, it's not always smooth, even when all that extra talk takes place.
36:26
SPEAKER_00: Most agents won't even get into it.
36:28
SPEAKER_00: They'll just do it.
36:29
SPEAKER_00: And then when everything falls apart, then there you are.
36:33
SPEAKER_00: But ultimately, it's your choice.
36:35
SPEAKER_00: All right.
36:36
SPEAKER_00: So, dual agency, I think seven or eight states outlaw that particular practice as well.
36:41
SPEAKER_00: The comparable sales, the agent shows you maybe cherry picked to support the price, not to challenge it.
36:47
SPEAKER_00: You gotta watch out for that.
36:48
SPEAKER_00: You can take the data they give you with regard to the listings that they pull to compare with that property.
36:54
SPEAKER_00: You need to make sure that they align with that property.
36:57
SPEAKER_00: Don't take comps that are from several miles away.
37:00
SPEAKER_00: Don't take comps from properties that are nothing like that particular property.
37:05
SPEAKER_00: And what I mean is maybe they're trying to dial you up to get you to offer higher so they get that offer accepted.
37:11
SPEAKER_00: You'll be able to see BS, you'll be able to take sold data, put it into your LLM, your favorite ChatGPT or Claude or whatever system you happen to be using, and it'll tell you.
37:20
SPEAKER_00: It'll be able to pull the numbers.
37:22
SPEAKER_00: Now, whether you do that or not, that's your decision because sometimes you put that crap in there, and it's of course part of the public record, even if you put that thing on secret mode.
37:32
SPEAKER_00: So be careful.
37:33
SPEAKER_00: Your agent's broker may receive referral fees from vendors if they recommend you.
37:40
SPEAKER_00: Yeah, you got to be careful.
37:41
SPEAKER_00: That's not allowed.
37:43
SPEAKER_00: So that shouldn't be happening.
37:45
SPEAKER_00: But again, sometimes.
37:47
SPEAKER_00: So we're now we're gonna look at that home buyer protection checklist, something to watch out for for you and yourself.
37:54
SPEAKER_00: And remember, you might have the best agent of the world, but you really are the only one that's gonna really be watching out for you.
38:00
SPEAKER_00: Before you make any decision, if it sounds funny, if it sounds like something that doesn't make much sense, yeah, pull back just a little bit.
38:08
SPEAKER_00: Ask for clarification in an email.
38:11
SPEAKER_00: Text is okay, but just emails lovely.
38:14
SPEAKER_00: So if you're gonna ask for clarification about any part of that process, you definitely want to send an email.
38:19
SPEAKER_00: Before you search, get pre-approved, not pre-qualified.
38:22
SPEAKER_00: There's a difference.
38:23
SPEAKER_00: A pre-approval might be, you know, do you have a heartbeat?
38:26
SPEAKER_00: Do you have a job?
38:27
SPEAKER_00: And what are your bills?
38:28
SPEAKER_00: That might be good enough for that.
38:29
SPEAKER_00: That pre-approved is gonna take a little bit more of a forensic look.
38:34
SPEAKER_00: They're gonna dig a little deeper into the colon, just taxes and stuff, but they're gonna want to do that.
38:40
SPEAKER_00: So that's gonna be helpful, especially if you're competing with other people making an offer.
38:45
SPEAKER_00: Everybody's been pre-approved, but you've actually been pre-approved with a underwriter approval or something of that nature.
38:53
SPEAKER_00: Just a very strong form of a pre-approval.
38:56
SPEAKER_00: Uh shop at least three lenders again, totally up to you, not bad.
39:00
SPEAKER_00: Interview at least two buyers' agents again, totally up to you, but not bad, not bad advice.
39:05
SPEAKER_00: Understand that buyer representation agreement, that's gonna be that contract you're gonna sign.
39:10
SPEAKER_00: It's gonna feel awful early, but before you look at property one with said agent, yeah, you're gonna have to have to sign it.
39:16
SPEAKER_00: Now, if you're not signing it, I think that question should be, huh?
39:21
SPEAKER_00: So he's breaking the rules and he's violating the law, he or she, because they're not having me sign it.
39:28
SPEAKER_00: When everybody else said you gotta sign it, and they're saying you don't have to sign it.
39:33
SPEAKER_00: I I would I would really be weary of that because if they're willing to put their license on the line just to show you a house, they're probably willing to put it on the line to really take advantage, my thought, being a cop.
39:46
SPEAKER_00: During the transaction, never skip that home inspection.
39:50
SPEAKER_00: You always want a separate termite inspection.
39:52
SPEAKER_00: Uh, read every disclosure, all of them, yeah.
39:55
SPEAKER_00: You're gonna have to.
39:56
SPEAKER_00: It's a lot, it's like War and Peace, but on steroids.
39:59
SPEAKER_00: Present company excluded.
40:01
SPEAKER_00: Do not make large purchases before closing.
40:03
SPEAKER_00: Yeah, watch out for that.
40:05
SPEAKER_00: Now let's talk about the inspection process.
40:07
SPEAKER_00: The inspector, your agent should have, uh, should be wonderful.
40:11
SPEAKER_00: You you want to, and if not, you'll know it, but it should be somebody you should be able to call and interview.
40:17
SPEAKER_00: Um, Connor referred me to you.
40:19
SPEAKER_00: I don't represent buyers, but I know home inspectors.
40:21
SPEAKER_00: Connor referred me to you.
40:22
SPEAKER_00: And I just want to ask you some questions.
40:24
SPEAKER_00: You know how long have you been doing it?
40:25
SPEAKER_00: What certifications do you carry?
40:27
SPEAKER_00: When am I going to get my get my report?
40:29
SPEAKER_00: How's my report put together?
40:31
SPEAKER_00: What does it look like?
40:33
SPEAKER_00: And are you going to have information on there that shows health and safety stuff, things that have to be done, things that might be done soon, and then things that can wait longer.
40:42
SPEAKER_00: It's nice to have those different variations in a report as a buyer, and then recommendations of what we should have the seller take care of.
40:50
SPEAKER_00: In some properties, you walk in there and they're just gorgeous.
40:53
SPEAKER_00: You think there can't be a problem, but the seller had had basically prepped these properties just to get it sold, and the home inspector uncovers all the nonsense, and then they bring it to you in the report.
41:05
SPEAKER_00: And that report can be used as proof of things not being as they need to be.
41:10
SPEAKER_00: Because if you're gonna move into a house and the roof's got its third layer on there, and there's some leaks on the underside of the attic area, that's what your home inspector is really there for.
41:19
SPEAKER_00: Because at that time you can say, huh, yeah, we got a problem here, Jack.
41:23
SPEAKER_00: We're gonna need to get that roof taken care of.
41:25
SPEAKER_00: All right, so read all the disclosures, don't make those large purchases before closing.
41:29
SPEAKER_00: Now, credit unions aren't the enemy.
41:31
SPEAKER_00: Credit unions exist to serve their members.
41:33
SPEAKER_00: That's a good thing.
41:34
SPEAKER_00: Many offer excellent rates, low fees, and genuine member advocacy.
41:38
SPEAKER_00: The issue isn't the credit union, the issue is going in blind.
41:41
SPEAKER_00: So when a seminar is structured around capturing your mortgage origination, you deserve to know that up front.
41:47
SPEAKER_00: Use your credit union, love your credit union, but always compare.
41:51
SPEAKER_00: That's not disloyalty, that's due diligence.
41:54
SPEAKER_00: All right, I'm I'm Connor McIver.
41:55
SPEAKER_00: I'd rather lose a deal being honest than win one being quiet.
41:59
SPEAKER_00: Every homeowner deserves someone at the table who has nothing to sell them and everything to teach them.
42:05
SPEAKER_00: This seminar has been free.
42:06
SPEAKER_00: I hope you've enjoyed it.
42:08
SPEAKER_00: There is no pitch, there's no funnel, 28 years of experience, and again, I only represent real estate sellers.
42:16
SPEAKER_00: So if you want a buyer's agent, I'm sure you'll find plenty online.
42:20
SPEAKER_00: I can refer you, but as long as it doesn't happen to be about a listing that I happen to be representing the seller with, I stay completely away from that.
42:29
SPEAKER_00: You can see the websites here, sellersonlyagent.com, Connorwithhonor.com, S.
42:33
SPEAKER_00: Yeah.
42:34
SPEAKER_00: Just punch it in, you'll probably find me.
42:36
SPEAKER_00: You got to protect yourself, ask hard questions, and buy smart.
42:39
SPEAKER_00: I'm Connor with Honor.
42:40
SPEAKER_00: Thank you for watching, and I'll see you in the next one.
42:43
SPEAKER_00: Take care.