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Stay or Move? The Smart Way to Remodel Your Home · The Jon Sanchez Show

• Jon G. Sanchez, CEO: Good Tuesday afternoon to you. Welcome to the Jon Sanchez Show on Newstalk 780. Can't wait to pleasure be with you. And we have the whole crew here, the entire crew. Mr. Dwight Millard of OnCue Home Loans. Great to have you back, buddy. Dwight Millard: It's great to be back, Jon. How are you today? Jon G. Sanchez, CEO: Very good. Thank you. Very good. Aaron Clark of Andrew Liddy. Always good to have you, buddy. Aaron Clark, Edge Realty: Heck yeah, man, I'm ready to build some snowmen. You wanna build a snowman? I know. Jon G. Sanchez, CEO: Yeah, just about feels that way, doesn't it? I know. I know. How that be? Just we all predicted another. ⁓ I I know. I to turn mine so it's not too loud. I did the exact had it on all day long. Yeah, at least we shouldn't. is when I wish I had a wood burning stove in my office. I tell you, I was talking to my accountant and he does a couple hours ago. Yeah, I the wood burning stove. I must be nice. It wasn't it though? Aaron Clark, Edge Realty: I know, I had to turn my heater on before we started the show so my teeth wouldn't be chattering. Mm-hmm. ⁓ that would be so nice. I'd fall asleep. I'd never get any work done. Dwight Millard: Yeah, little in there. ⁓ Jon G. Sanchez, CEO: I know exactly. Yeah. Yeah. I got the couch. I just don't have the wood burning stove. ⁓ All right. let's tell you what we have lined up for you. I'm going to bear with me here we just had some breaking news literally as the music was playing. The president has extended the with Iran and I'm trying to matter of fact, if one of you Aaron, if you don't mind, if you could just quickly look and see on CNBC.com the breaking story. Aaron Clark, Edge Realty: You Jon G. Sanchez, CEO: See if you can come up with a date because I'm not able to find one and I need to keep the show flowing. So if you could do that for me, nothing like live radio here, right? You get to hear everything, folks. Let me tell what we have lined up. After I go through the stock market recap, bit of a weakness today because of the ceasefire coming to an end. Or at least it was, like I said, until a few moments ago. We had a bit of a weak session today. So I want to, of course, give you all the details as to what happened. Then we're going to get into our topic. This is going to be a really, really fun topic and something we haven't discussed in quite some time. Aaron Clark, Edge Realty: on it. Jon G. Sanchez, CEO: You know, we would all agree that home prices are high, inventory is tight, and of course, many of you have made the big decision. You said, you know what, I'm not gonna go out, I'm not gonna pay these exorbitant prices, I'm not gonna go through all the headaches of moving. Instead, we're gonna stay put. We're gonna stay right where we are. But if you're gonna stay, should you remodel? Right, that seems to be the consolation that a lot of people are making these days. I have more people, the reason I came up with this topic, I've had more people I've talked to over the last, we'll call it the last month. saying exactly this, they're going through home remodels, they decided to stay and I thought, you know what, if they're doing it, probably many of you in the audience are. But you know, if you do decide to stay and you do decide to remodel, here's the million dollar question, how are you gonna pay for it, right? I was just talking with a friend yesterday, Dwight, actually the day before yesterday and on Sunday and he was like flabbergasted for lack of better term of just the painting bids that he got. He's like. Yeah, this one painting company, pretty good size contractor in Reno, $150 an hour coming in and then all kinds of additional costs and stuff. a little tiny job was like $12,000, $13,000. And he says, I can't afford to do that. So what am I going to do? So again, this is going on. So you got to figure out a way you're to pay for it. then Aaron, so Dwight's going to handle that side of it, obviously. and educate us on what programs are out there that we can pay for these home remodels. me. And Aaron's going to jump in and really us on something extremely important, which is what is the on the home improvement? In other words, the return on investment, right? ⁓ Last thing you to do is spend all the time and the frustration and obviously the money renovating. Sure, there's always to be something that ⁓ you want just for that you can't put a price tag on, right? It may make no financial sense whatsoever. ⁓ Aaron Clark, Edge Realty: you Jon G. Sanchez, CEO: but you're never gonna get a return if you decide to sell that house a year from now. But again, it gives you personal satisfaction, that's worth a lot. we're not gonna go down that path. What Aaron is gonna do is with us what's gonna be the best ROI. Is it gonna be a bathroom remodel, a kitchen? If so, what are the different things we need to do in there? Because this is always a moving target, right, Aaron? I mean, remember years ago, obviously, granite was the hot thing. Everybody wanted to do granite in the bathroom and living room, or in the kitchen. ⁓ Aaron Clark, Edge Realty: Always. Jon G. Sanchez, CEO: And I think it may have been Corey or Richard Lay saying, that's really not the hot thing anymore. remember, you know, I don't know, that was months ago. So I don't know if that's changed back to it or not, but you know, that's where your expertise comes in. Cause you you walk through a house and you go, yep, this is worth the odd or this is not worth it, you know, so on and so forth. So that's what we're going to be doing. We're going to figure out how to pay for it and then give you the best ROI on that home improvement. Aaron, were you able to find anything on the ceasefire? Aaron Clark, Edge Realty: Yeah, I did. And what it's saying on here now is that it's not a specific timeframe. He just said, ⁓ until such a time as Iran's leaders and representatives submit a unified proposal to end the war with the US and Israel. Jon G. Sanchez, CEO: Okay. Hmm, that's kind of interesting. That's kind of interesting. So we have an indefinite ceasefire. going to take it. I was going to say I'm going to venture and say the futures are up and boy are they ever Dow futures just started trading at three o'clock. Now up 171 points. Nasdaq's up 103 and the S &Ps are rising 25. So there you go. An indefinite ceasefire. So obviously a very positive for for the markets. So that's interesting. The oil is ticking up just a little bit right now up 31 cents at 89.98 a barrel. Aaron Clark, Edge Realty: Thank Jon G. Sanchez, CEO: All right, you're now up to date. I said, that's breaking story. is it lately, guys? It seems like we keep getting breaking stories ⁓ when the intro music to the show is we get. Yeah, it's like makes great radio. But man, what is it about 3 o'clock in the afternoon or 6 p.m. Eastern where all these news stories come from that seems to ring the bell there? I don't know. It's crazy. Do I anything you want to add in before I get started on the stock market recap? Aaron Clark, Edge Realty: It's always on the show, yep. Yeah. Dwight Millard: Yeah. Now, think the timing, always, Jon, is fantastic on this because there is a lot of frustration. told you off-air, I know if Aaron was listening, I I got in the renovation space now, which talk about because ⁓ it's an amazing for people look at as at least one, yeah, at least as one of their options. So, yeah. Jon G. Sanchez, CEO: Congratulations. Good timing. Is it really? Yeah, yeah, exactly. Well, congratulations on getting certified in that. And add it to the, add it to the, at RH it always does, Dwight, I know. It's like, yeah, yeah, exactly. Let me read it for the fifth time today, please. Yeah, well good, good stuff. Like I said, I no idea that that happened. So again, great timing. All right, let's break down, guys, what happened in the stock market today. So we had a decent session going. Matter of fact, we were up a couple hundred points going into the opening bell and. Dwight Millard: Yeah, took me a little while. What did I just read? Jon G. Sanchez, CEO: Everything looked fine. again, kind of using the analogy that I gave on the show yesterday, just kind of a wait and see type of attitude. Again, a lot of this was waiting and seeing on the ceasefire side of things today. Trump was on CNBC this morning, didn't have anything negative whatsoever to say, kind of all the typical threats and so on and so forth. Market really didn't react to that. But we just kind of drifted. then, Dwight, I'm sure, I don't know about you, Aaron, but Dwight, I'm sure you probably were watching on again, off again, Senate confirmation hearing of Kevin Warsh, potential new Fed chairman, if and when he gets confirmed. this is gonna so interesting, that's all I can say. It's gonna be so interesting when he gets into the office because as all three of know, and I'm sure all of you know, ⁓ Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: know, he was handpicked, of course, by President Trump, right? We know that the president absolutely hates Jerome Powell. He's got this lawsuit going against him for the budget on the rehab of the, speaking of rehabs, of the Treasury building. And Trump on CNBC. I could have done that renovation for 25 million. And instead it's like 2 billion and climbing. matter of fact, they're not even going to have insulation in the walls. I'm like, what in the world are you talking about? But he just ran it ⁓ on and on and about that. ⁓ Dwight Millard: Mm-mm. Jon G. Sanchez, CEO: So get to the confirmation hearing today with Kevin Warsh, and was brought up a lot, of course. But more importantly, he was asked by the members of the banking committee, where are gonna be on interest rates and Fed independence and type of thing? And he of course the answer, which I don't know if he meant it in his heart or not, but he gave the right answer. I cherish the Fed member. He was a Fed governor for, gosh, long time. six, seven years, think, something like that. think 2011, he stopped being a Fed governor. So he knows what goes on behind the closed doors. But he just went on to say, you have Fed independence is important and so on and so forth. then going back to Trump this morning, which was before the Senate hearing commissions, Trump made the comment, he goes back to this renovation, goes, yeah, this thing is going so slow and so far over budget. He goes, Kevin may have an office right next to mine. Joe Kern and the host on CBC says, Well, I don't know if that's a good idea or a bad idea. you kind of sit there and go, yeah, can you imagine Trump poking his head through the window? Or, ⁓ know, I remember one of my offices, my operations manager, I had ⁓ window in between my office and her office so I could just sit there and, ⁓ know, ⁓ at her, you know, when I needed to and just close the window, you know, like a fast food drive there. ⁓ exactly. How many councils did you open today? So, know, can you imagine Trump doing something like that? I think that'd be pretty hilarious. But it's going be interesting. Aaron Clark, Edge Realty: Yeah. Dwight Millard: Mmm. Thank you. Aaron Clark, Edge Realty: We dropping rates yet? We dropping rates yet? Dwight Millard: Yeah, yeah, yeah, yeah, yeah, yeah. Jon G. Sanchez, CEO: everybody knows that he is going to be under severe pressure, Dwight, to lower interest rates. And the data that we've been receiving these last week or so absolutely does not dictate that the Fed would be in any hurry to raise interest rates. I think it was when I did my recap on Friday, I think we're up to, I don't know, 35 % probability of one cut in December. mean, it's like next to nothing at this point. So we will see, but my point of all this long drawn out story is when Worse was going through this confirmation hearing today, the streets takeaway was again, he's in no hurry to cut interest rates. So that's when we started to see the pressure happen on the market. That and then oil prices were, mean, she's were up over four bucks at our Worse level finished up $2.40 to 91.80 a barrel. So a little uptick there, the ceasefire, like I said. So, you know, there's just a kind of a culmination of things today. none of which really was all that positive. So when it was all said and done, we finished, like I said, a little bit on the downside, down 293 on the Dow, 0.59 % loss. NASDAQ gave up 144 points, 0.59%, and the S &P lower by 45 points, a 0.63 % decline. But hey, that was the closing bill. And like I said, in the pre-market session, we're looking strong, 171 gain right now on the Dow futures. All righty, I'll come back, hit the commodity side of things, interest rates. always my favorite part going with Dwight and talking about where we are in the 30-year mortgage and then we're to get into our topic, or move, the smart way to remodel your home with Aaron and Dwight. Let's turn it over to Kristen Snow. She's in the Right Now Traffic Center. Hello, Kristen. Welcome back to the Jon Sanchez Show on Newstalk 780K, which we're there on Clark, a video related to white Millard of OnCue Home Loans. Once again, we finished with a loss of 293 on the Dow, NASDAQ gave up 144, S &P lower by 45. But once again, the breaking news that occurred right when the show was beginning. I want to bring you up to date. We got a little bit more information. Again, the president posting on True Social that he has announced he is extending a ceasefire with Iran indefinitely. Remember that ceasefire was supposed to end tomorrow. even as plans for a fresh round of talks between the two countries fell apart. Remember, JD Vance was supposed to be on a plane right now, heading over there, ⁓ Iran said, no, we're not coming to the table. So want to give you just a few more details. Trump said that the U.S. would maintain a blockade over ships coming to and from Iran and the Strait of Hormuz ⁓ until submits a new proposal and discussions are concluded. The extension the ceasefire was requested by Pakistan, which had mediated between the two sides and asked the U.S. to hold off on fresh strikes. Now here's what's interesting again, take it with a grain of salt if you want, because it's coming out of Iran. Don't know what we can or cannot believe. Iran agency just came just a few moments ago. Let me try to find it in this big story. News agency came out and said they did not ⁓ ask for the ceasefire. and they said that Strait Hormuz will remain closed until negotiations ⁓ occur. So let's see. Yeah. And then Bloomberg article that I'm reading from now commented again what I'd said earlier about Trump being on CNBC this morning. ⁓ And is what the president said this morning. He said, I expect to be bombing if Iran didn't meet his conditions my conditions. And said the is quote, raring to go. In a telephone interview later he said it was quote, highly unlikely that I extend the cessation of hostilities if no deal is reached. So I guess highly unlikely means it's probable because he did extend the ceasefire. And again, this is bizarre guys, extended indefinitely. Do you know what investors are gonna look at this, how they're gonna perceive this? Like, okay, this thing is done. We're just gonna continue on forever until decides not to. But wouldn't be surprised. mean, now the next move will probably be again, he'll come back and. Dwight Millard: Right. Jon G. Sanchez, CEO: You know, one day, probably very soon, and say, OK, ceasefire is over, right? You've got 24 hours to come to the table. If not, then we're going to start it again. I I got to admit, this is very bizarre to extend a ceasefire indefinitely. Even as plans for a fresh round of talks between the two countries fell apart. So we will see. But like I said, pre-market liking it. Up 189 on the down features. NASDAQ's up 117. S &P is gaining 28. All righty, boys. Let's get down just a couple of movers. Let's go to oil as I mentioned up $2.40 is how it closed at $8.91 a barrel. Gold down $111, $4,007.19 an ounce. Mr. Millard, little bump up in 10 year, four basis points, 429. How'd we do on the 30 year? Dwight Millard: Yeah, Jon, I expected it be worse, but we got out of it pretty good. It was only a three basis point uptick in the 30 year fix to 6.33, according to mortgage news daily. So, you know, it's stubborn, stubbornly high. know, I mean, you know, we were experiencing such great traction activity five, six weeks ago. You know, we were talking about when we were flirting, going inside, yeah, going, going inside of the 6%. So it's been. Jon G. Sanchez, CEO: Sure. Pre-war, I mean, let's just admit it was pre-war. Dwight Millard: It's been challenging for a lot of people, but you know, they get used to it and then they see a little bit of know, improvement and then they like ready to run and then it goes back. So it's kind of a, it's a really, ⁓ a very emotional time for some of these people. Yeah. Same old story. Jon G. Sanchez, CEO: Absolutely. Yeah, same old story. Same old story. Yeah. ⁓ man. All It's pretty good movements going on today on a few names I just want to mention real quickly. Microsoft up $6.09. That was a good mover. 424.16. Apple, they don't seem to be liking this news that came out yesterday where Tim Cook's going to step down on September the 1st. Apple lost $6.88, United Health was a star today, really strong earnings numbers. The Dow component up $22.53, 346.01. GE Aerospace down about $16.87, 5.56%. So it's just kind of mixed. Like I said, was just a day where everyone was kind of waiting to see what happened on the ceasefire situation. So I wish Trump would announce this when the market was open. That would have been really nice if that happened. All right, guys, let's get into our topic. Stay or move? Once again, what we're going to do for you. Aaron Clark, Edge Realty: Yeah, exactly. Jon G. Sanchez, CEO: Many of you again are saying, don't want to move for high prices, high mortgage rates, whatever the situation may be. You decide to stay where you are, but yet you're like, okay, I can't live in this house anymore. We need to expand it. We need to fix it up. Whatever it is you want to do, it is going to take a lot of money. Just be prepared. It is not cheap to hire contractors any longer. So what Dwight is going to do is he's going to start us off and start educating us on how do we get our hands on some money to pay for these remodels? And then we're going to go way beyond your typical home equity line of credit, et cetera. So Dwight, let's start with you. Then when we come back later in the program, Aaron's going to be chiming in and saying, OK, guys, in today's world, here we are, 2026, these are the best improvements you can make in your home for the best ROI or return on investment. So Dwight, get us warmed up here on this because we've got about two minutes before break, and then we'll come back and continue on with you. Dwight Millard: Yeah, yeah, so I mean the obvious one, Jon, that we've talked so often on this show is the standard home equity line of credit. challenge with that, obviously, is it's gonna be another payment, you know, on of what you currently have. I like it for the benefit if you have a lot of equity, but you have a limited amount of or additions or you're gonna do. and it's in scope, maybe it's a great one, because you just get it, get the money, get it paid for. You keep your current interest rate, I'm going to make the assumption that most people have sub four, you know, so it's a wonderful way to do it. The other one you have is you have just a straight cash out refinance. The problem with that one, generally speaking, is ⁓ going to trade off your interest rate right now for a loan. problem with that too is they only go to 80%. Jon G. Sanchez, CEO: Back to the root. Dwight Millard: So cash out refinance only goes to 80%. So the other thing about that when you don't have as much flexibility as you do on the HELOC, because the HELOC, you only pay for what you draw off of. Remember in the HELOC, it's interest only for the first 10 years of the draw period, depending on the lender. So it's a very flexible, especially if you just need, you if you're gonna do a minor kitchen repair or things like that, think Aaron would say, yeah, go ahead and grab a quick HELOC, pay it off and you know, no harm, no foul. The one that I think I'm gonna be, Jon G. Sanchez, CEO: Good point. Dwight Millard: more supportive Jon is the renovation. And the reason why is I got to learn a lot about this product over the last week, and a half. It's an amazing, a lot of flexibility on it in terms of what you can do. there are limited scope renovations and full where you gotta get, it looks like a construction. The beautiful part about the renovation is it goes all the way up to the maximum loan to values for that product. So on FHA, it'll go all the way up to a 97 % loan to value. And what it does is it takes the current value of your home, then it does plus the renovations. So if the renovations are, let's say the house is 300 and the renovation is 100, you're going to say that's going to be a $400,000 price tag to that. though you're gonna get an appraisal independent and it's gonna be subject to the completion of that. I'm doing one right now, Jon, and the appraisal came in, we were thinking maybe 480, it came in at 565 with the improvements. So the guy is thrilled. Doesn't need that much money, but it just made a lot things better. Based upon. Jon G. Sanchez, CEO: Mmm. So the appraisal, you're saying the appraisals like what I Aaron, you and I were talking about last week on the commercial real estate side where, you again, real estate's valued not on comps because usually there are none, but more on here's the value of the property, here's the income that it's producing. And then again, if you are going to ⁓ add certain things that building, will give that to you in the appraisal, even though it has not been built. So you're saying the same thing, Dwight. Dwight Millard: Yeah, and you just, need the cost, the bids, you gotta know what it is that appraiser gets all of that. It's a mini construction loan basically type of thing, you know what I mean? You've gotta get all that stuff. But it is a fantastic way, Jon, goes all the way up to 95 % on conventional. I mean, you're not gonna get any money any easier than that doing a single loan, 95 % incorporating all your costs in it. Jon G. Sanchez, CEO: Yeah. Yeah. Okay, okay. Right. So what would be the maximum dollar amount? Dwight Millard: Well, I mean, it's the conforming loan limits, which goes up to 830. But I mean, you can go up to 95 % basically, yeah, based on the future value subject to the improvements being done. Jon G. Sanchez, CEO: Okay. the 830 if you're in that area. So Aaron's is gonna be really valuable, right? Because again, ⁓ would imagine the appraiser is gonna go certain value for this improvement or renovation, but not full value for another one. Am I right on that? Yeah, okay, perfect. What's that product called, Dwight? Aaron Clark, Edge Realty: Yep, absolutely. Dwight Millard: It's just a renovation. There's conventional renovation and FHA and VA. All your majors have it. So fantastic product to at least explore. Jon G. Sanchez, CEO: There's gotta be some negatives to it. This way too easy. No? Okay. I was gonna save it when we come back from break, but... Okay. Dwight Millard: I think so. mean, mean, no, I mean, it's it's it's current rates, it's current rates, you know, so if you've got a lower rate than you, but hey, how else you gonna pay for it? Jon G. Sanchez, CEO: Okay, I got some questions, but I'm out of time. come back to you. ⁓ like, this too easy. All right, come back to that. We're talking about renovating, how to pay for it, and what's a good ROI. Let's turn it over to Jack Saban. He's getting his traffic and weather check. Dwight Millard: I know you do. Jon G. Sanchez, CEO: Welcome back to the Jon Sanchez Show on News Talk which with Aaron Clark of Idril Lidi to Dwight Millard of OnCue Home Loans. All once again, the big breaking news that happened right at the beginning of the show, the president announced that he is indefinitely extending the ceasefire with Iran. talks never occurred. They were supposed to occur tomorrow, ahead of the tomorrow evening. And the president came out, like I said, right around 3 o'clock and said, nope, I'm extending it indefinitely. But the Strait of Hormuz is still closed. Iran saying, we didn't ask for this and we will determine when the Strait of Hormuz is gonna open, but it's closed in our mind. So again, futures are up 180 on the Dow side, Nasdaq's up 116, the S &P is gaining 28. All right, let's get to our topic again. We're talking about stay or move, right? The smart way to remodel your home. Dwight's continuing his discussion and then Aaron's gonna jump in talking about what's the best ROI that we can get, return on investment on the home improvements. But Dwight, I've got a couple questions on this. How do want me to refer to this new loan? Just a renovation loan? Okay, all right. Dwight Millard: Mm-hmm. Renovation, renovation on. Yeah, they've been around forever, as Aaron, we talked off air, they've been very difficult, not user friendly, know, companies come in and out with them, but these here to stay. they've been around. Jon G. Sanchez, CEO: OK, very good. So let's use an example. You got a $400,000 house. Let's say you've been in there five years. You don't really have a lot of equity to do a cash out refinance or even a whole equity line of credit. So that's when you'd look to this renovation type of loan. Now, you're going to come in and you're going to take out my existing loan, right? again, let's say the house is worth $400. I owe $350 on it because I haven't been there that long. but boy, I want to go add a fourth bedroom for $100,000. So you're going to give me a current appraisal plus what that fourth bedroom is going to enhance my value. And then you're going to give me 90 % of that new figure. Dwight Millard: No, I'm going to give you a 95. I can go up to 95 on the future value with the completion of the improvements. So let's just say you're 400 and 100. Let's just say it comes in at 500. I can give you a 95 % off of that. So I can give you a 475, which is basically $75,000, right, the construction cost. Jon G. Sanchez, CEO: 95. Okay, 95. Okay. Right. And so that's gonna be, again, just a traditional 30 year. Okay. Dwight Millard: Yep, traditional 3015. You have conventional FHANVA. VA goes all the way up to 100%. So I mean, it's, yeah, these are just, they've been around forever, Jon. They're becoming more and more of a niche, but they're becoming more and more popular because of... Jon G. Sanchez, CEO: Okay. Okay. Wow. Amazing. Dwight Millard: you know, yeah, rising, yeah, exactly. So, you know, I've decided to kind of get in this space and, know, and be able to offer it to, ⁓ think the segment's gonna grow more and more these kind of products. ⁓ Jon G. Sanchez, CEO: What we're talking about, yeah, people just don't want to move. Yeah, I agree. Aaron, come in with your realtor hat on. Give me the pros and cons from your perspective. Pretend Dwight's not here right now. Is this a major boom for people? Aaron Clark, Edge Realty: ⁓ I'm just kidding. Dwight Millard: Yeah Aaron Clark, Edge Realty: ⁓ That's a tough one because now what we're seeing is, you alluded to earlier, the cost to do anything right now is ⁓ the highest we've seen in a very long time. So to me, the only controversial the part that we would really struggle with making sure that it aligned would be if a contractor comes in and says, okay, I'm gonna redo your kitchen for whatever cost it is. Jon G. Sanchez, CEO: the roof. Aaron Clark, Edge Realty: The appraiser is gonna have to utilize that information to justify that future value. But you look at a bid and maybe 40%, 30 % is material, the rest is labor. You're not getting realized value out of that. So making sure that that would align would be something you'd have to be very strategic about. You'd really have to look at comparable sales in the neighborhood, what the comparables between upgraded versus not upgraded, et cetera. Jon G. Sanchez, CEO: Labor and overhead and profit. That's my point. Okay, Dwight, I'm gonna snap my fingers. back with us now. So do ⁓ you that? Because I think that's a valid point that Aaron brings from a realtor's perspective. Dwight Millard: Well, that's why you've got to your due diligence upfront and kind of understand because a or a remodel, things like that, they're all going to have a difference value. It's just what you noted earlier going, hey, this becomes even more important all the way around for whatever you do. If you stay, whether you get a HELOC, whether you do a cash out refinance or whether you look into the renovation loan, they all serve a good purpose. Jon G. Sanchez, CEO: Sure. Sure. Dwight Millard: And you've got to do your due diligence up front. At least get some bids, multiple bids, whatever you've got to do to at least tighten that down, because all can agree it's going to probably overrun. That we can all probably agree to. Jon G. Sanchez, CEO: So the appraiser is obviously extremely, probably even more so than normal, extremely important in this whole equation there. would you recommend, what Aaron just said stuck in my mind. Again, you're looking 40%, 50 % at the tops material cost on a bid, rest of its labor cost. Is he going to give you the value for that full $100,000 bid, or is he going to go, No, it's only 40,000 materials, so I'm only going to give you 40,000. Dwight Millard: Well, you know, it's a good one to bring in Richard Lay someday and see what how he would look at that bid process and things like that. And again, it would be helpful, Jon, any scenario to have some equity position. You know, if you're already at your max, if you're at it, if you just bought the house, you know, last week at a 95, 5 % down, it's going to be tough to do 100 and get 100 out of it. So if you've but this is going right to your point, these are people who have been in their house. Jon G. Sanchez, CEO: Yeah, yeah. Yeah. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: Okay. Dwight Millard: who've now, a while now, considering, I move? I'm just gonna stay now. They have some equity that can help offset whatever may be lacking in a full appraisal. ⁓ Jon G. Sanchez, CEO: I know you can't give us a specific, but give us to say, yeah, they're real close. What's the difference in APR right now for say a renovation loan, because we were essentially getting a brand new mortgage versus just a traditional plain jade? They're the same. Okay. Okay. Dwight Millard: the same. That was that's what blew me away. you might see an eighth different in the rate. Maybe, maybe. So it's really an affordable to what Aaron was saying, you know, earlier on these were just tougher in the days. Aaron Clark, Edge Realty: I was just gonna say too, important too when looking at these that, because I've had clients over the years consider this aspect of something like an equity line or this or that or the other to do improvements. You want to look at what you could buy, what the cost of that loan's gonna be, what the payment's gonna be to fulfill the need of what you need versus the of doing the refi, taking the six months that it's gonna take to get the plans, the contractor, living halfway in your house because You might be doing all this work. And then what the end result's gonna be. And then having all of that data, then you know you have options. You can do a re, a reno loan. You can do an equity line. You can do, or you might just look at all of it, scrap the whole thing and go, the numbers are pretty similar, but the drama, the emotional distress is so much less if I was just to move because what I need is too extreme for me to wanna process and deal with. So you really gotta sit down, have. Jon G. Sanchez, CEO: Mm-hmm. Aaron Clark, Edge Realty: everything planned out and then decide what's best for you and your family. Absolutely. Dwight Millard: Yeah. ⁓ Jon G. Sanchez, CEO: And that's again, where Dwight's expertise, your expertise come into play. Yep. to the team. Back to the team. Okay, let's transition. So Dwight, great information. Congratulations on again, getting certified in this area now. Aaron, so let's your realtor hat on, obviously. Let's go through some things you'd like to see as a realtor. You're walking into a house and you're like, I like that, I like that. That's good for ROI. That one's a waste time. let's say you're walking, let's a hypothetical. Dwight Millard: Yeah, Jon G. Sanchez, CEO: Let's say you're walking into a newly renovated home and the people spent whatever, $100,000. And pick your issue, bathrooms, kitchen, whatever the case may be. What do you like? What do you dislike in today's marketplace? Aaron Clark, Edge Realty: So first thing, kitchen. Kitchen's always the first thing to be seen. It's the first thing that when everybody comes over to your house, they see. So it's the one thing that if you're gonna dump money into, that's where you're gonna do it to get the most bang for your buck. And when I say that, I don't mean a full gut job, new cabinets, new everything. Now we're at $100,000. saying we find the valuable things that we can do. know, are the cabinets great? Like the cabinets, for example, let's say they're great boxes. We can get them refaced. We can get them painted. We can get them... Dwight Millard: you Jon G. Sanchez, CEO: such as Aaron Clark, Edge Realty: up real good, put some hardware on them, and then just replace the countertops and the floors and boom, you have almost like a new appliances and you have almost a brand new kitchen that no one would know the difference on and the cost for you is gonna be 20 % of doing a gut job. So wanna figure out exactly where you're get the most bang for the buck and it's gonna be kitchen and it's gonna be doing those things that are least expensive, not replacing ⁓ every ⁓ nook cranny. Jon G. Sanchez, CEO: Mm-hmm. Mm-hmm. Great. All right, when we come back, I want to hit one of the biggest expenses in a kitchen remodel, which of course is the countertops, right? It's a big one. So let me tell you, I want you to tell us, let me tell you, you tell us, what do you like to see, what's holding the value right now, the best ROI. right, we'll continue our discussion. Again, stay or move, the smart way to remodel your home. Let's wrap it up with Kristen Snow. She's in the Randall Traffic Center. Hello, Kristen. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: Welcome back to the Jon Sanchez Show on New Stock which Mr. Mallard can we get your phone number saw? Dwight Millard: Yes, sir, 240-2022. Jon G. Sanchez, CEO: friend Mr. Clark. Aaron Clark, Edge Realty: 673 6700. Jon G. Sanchez, CEO: Beautiful. All right, we've talking about stay or move, the smart way to renovate your homes. Okay, so Dwight, enlighten us on a great new renovation, quasi I guess, a great ⁓ renovation that's available. One more time, Dwight, the highlights of that. Dwight Millard: Yeah, it just goes up to 95 max loan to values on the FHA conventional and VA. So it gives you much more borrowing power. Jon G. Sanchez, CEO: And who's your target market on this? One more time. Dwight Millard: I think it's people looking to do a remodel, a renovation, things like that. think that at least consider it as part of an option. Jon G. Sanchez, CEO: Okay. the pros and cons versus a home, a HELOC with a. Dwight Millard: Well, the HELOC is going to have more flexibility to pay what you borrow. going to be another payment to it. They're limited in scope. mean, in terms of, ⁓ yeah, interest is only for the draw period, and then they convert into it. I mean, not a wrong one either. There's no right or wrong. I think it really just depends on the scope of work ⁓ to be ⁓ exactly. Exactly. Jon G. Sanchez, CEO: And they're usually interest only too. Aaron Clark, Edge Realty: Case by case, yeah. Jon G. Sanchez, CEO: Yeah, and dollar value, right? And dollar value, the renovation. OK, Aaron, so you said definitely your best ROI on this remodel is going to be in the kitchen. The question I pose to you now, where we at? Are we back to granite? we for mica? Where are we? Where's our best ROI right now? Quartz, OK, interesting. Aaron Clark, Edge Realty: I think number one is quartz, in today's world. One of the losses or effects is that it can be damaged by heat. But other than that, you pretty much don't have to do anything with it. And then there's another sort of material emerging engineered, which is called quartzite. And it's like an engineered version of it. So it looks like marble, but it still needs to be sealed like granite. granted is slowly dwindling just because technologies are changing. And I have granted in my kitchen, it's like, you know, like I thought that was really cool, but not anymore. Yeah, exactly. Yeah. Jon G. Sanchez, CEO: Okay. Yes, yes. Yeah, I know. Yeah, I do too. Yeah, I know. The pain in the butt. It's the ceiling and yeah, absolutely. so you were saying just resurface the cabinets, new appliances, that type of thing, nothing major. Dwight Millard: Hey, yeah, yeah. Aaron Clark, Edge Realty: Yeah, so it's value orientation, not necessarily gutting anything. Where's the most bang for the buck? Jon G. Sanchez, CEO: Right, right, exactly. And once again, if you just join us, let's preface this by saying there are certain things that you're going to want to do since you decide to stay in the house, that again, forget about the ROI. It's just going to give you absolute pleasure. And there's nothing wrong with that. what's our next spot real quick, Aaron? Where do we go in the house? OK. What do you want to see in there? Aaron Clark, Edge Realty: Absolutely. It's going to be bathrooms. Bathrooms are huge. That's it. Pretty much. You always want to start where people are going to be visiting and seeing overall appearance of the house and you want to do clean modern bathrooms with, you know, updated, you right now clean, crisp ⁓ simplicity master, large That's huge. If you go to any builder and walk through the models, the showers are the size of football fields now. So those are becoming popular. Jon G. Sanchez, CEO: Okay. ⁓ Aaron Clark, Edge Realty: You know, it's so, so long are the small showers at the small tub and the combos. You know, if you can't play catch when you're in the shower, it's too small, right? Yeah, yeah. It's tile. Yeah. You not the big plastic inserts. see in the double sinks in a master or a hundred percent. Yep. You want to make sure that you have double sinks and lots of counter space. Sometimes even now they're splitting them up. Jon G. Sanchez, CEO: Yes, yes, yes. Yeah, exactly. And you want to see the tile in there? I imagine a good value there. Right, Double sync's important to you as a re-liter? Aaron Clark, Edge Realty: So you have one sink on one side of the room, one sink on another, just so you get that separation. So then you don't throw stuff at each other when you're getting ready to go to bed. And then curb appeal is gonna be huge. You want somebody to drive up and see the house and go, wow, that looks nice, well taken care of. So spend a little money on landscape. Again, little money can go a long way if you do things right and you're making sure that you're investing in stuff. No, absolutely not, grass. Jon G. Sanchez, CEO: There you go, there you go. All right, what's our next spot? Do you have to have grass these days? Aaron Clark, Edge Realty: More and more as Californians come in where they don't really get to have grass, more and more you're seeing grass disappearing. Low maintenance, easy, zero scape, yeah. No water bill, that kind of stuff. Yeah. Jon G. Sanchez, CEO: Or the zero scape? Okay, okay, all right. Yeah, exactly. then real quickly, 10 seconds here. What about the master bedroom? Aaron Clark, Edge Realty: Master bedroom, not so much because of the bathroom, but, can you do? mean, carpet, paint, you know, a chandelier, sure, yeah. Jon G. Sanchez, CEO: Okay. Yeah. Right. Right. Yeah. Okay. right. Not a lot has changed. Yeah. Same type of stuff. Just a kitchen, bathroom. That's about it. Simple enough. Dwight, we can spend that 100 grand pretty easy though on that side of it. Listen to that. Alrighty, fellas. job as always. We will do it again tomorrow on the Jon Sanchez Show. God bless. Have a great afternoon. Dwight Millard: Mm-hmm. Easy, easy. Aaron Clark, Edge Realty: ⁓ yeah.