Latest / The Jon Sanchez Show / Everything Is Negotiable: How To Get A Better Deal On Your Next Home
Transcript
- Jon G. Sanchez: Good Tuesday afternoon, T.O. Welcome to the John Sanchez show on News Talk seven Dwight Millard: It's Jon G. Sanchez: eighty KOH. Pleasure to be with you, and a pleasure to be with my co-host. Around the horn, we shall go, Mr. Corey Edge of Edge Reality. How you doing, Bixie? Cory: Fantastic sir, how are you? Jon G. Sanchez: Very good. And I owe you an apology. I just want to start the show off by saying that. Only one, only one that I can think of. I'm yeah, I mean, yeah, exactly. As long as we've known each other, I'm sure there's a bunch more, but I can't remember that far back. All right, we'll call it even. But Dwight Millard: That's that. Cory: Just one? Okay. I owe you two, so we'll call it even. Dwight Millard: This feels like deja vu. Jon G. Sanchez: you know, you I don't think you mentioned this on the show, but your your your incredible son is just kicking butt in club league soccer and even higher levels than that. I'm not even describing it correctly. And Yeah told me during the show or I think during the break that he unfortunately was in a tournament and fell and and broke both of his wrists and I didn't get a chance to tell you how sorry I am. So I I hope I hope he's doing well and recovering well and everything. Cory: Yeah, he's doing good. He's, was just talking to somebody who just asked me that not that long ago. So he was up and practicing on his own the day after it happened and has it ever since probably, you Jon G. Sanchez: No kidding. That would have stud. Yeah. Cory: know, you've seen people like that. So that's been good. It just can't have any, can't have any team practices or games for a couple more weeks. Cause if he falls, he has no other way to, to brace himself. Jon G. Sanchez: Right. Yeah. god. I can't imagine. that just makes my stomach weak thinking about falling with two broken wrists. Yeah, exactly. Cory: yeah. Jon G. Sanchez: But but yeah. Speedy recovery. Speedy recovery. So Cory: Yeah, thank you. Jon G. Sanchez: absolutely. Mr. Dwight Millardivon Q Home Loans. Can we tell the audience the day you've had? Can we can't no come on. We haven't had a we haven't had a ch we haven't had a chance to to make fun of you in a long time. Corey, Corey, you probably don't even know we're talking about. I was I was talking to Millard a couple Dwight Millard: No. It's just been a bad day, John. And a laugh. my god. That was just awful day. No, I haven't Cory: Ha ha. Jon G. Sanchez: about a half hour or so Dwight Millard: talked to Corey. Jon G. Sanchez: ago and he's had the day. It's a Tuesday, but it it's like a Monday. Come on, you gotta tell him. You gotta tell the audience. Dwight Millard: Well, I mean, it started off at seven forty-five of a blowout right there at Bellevue in Washoe Valley. And in my dress Jon G. Sanchez: In Washa Valley. In your in your dress clothes. In your dress clothes. Yeah. Cory: I blow out. Dwight Millard: clothes, yeah, I I'm in slacks and a dress shirt and I'm changing attire on a car that Cory: my gosh. Dwight Millard: I don't even own yet. So it's crazy. Yeah, well, Jon G. Sanchez: Yet. Dwight Millard: and you know, it's got the star wrench and you're looking all over for that little star thing. And so I get Jon G. Sanchez: Yeah. Cory: Ha ha ha. Dwight Millard: get done there, run to you know, my knuckles are all beat up and anyhow, so then You finally think you got it made and you come home and your little puppy that you got is got an upset stomach, jumped over the fence and just got all the way through the house, you know. So it's just been Cory: no. Dwight Millard: it's just been one of those days. But now I'm with you guys and it's great. Jon G. Sanchez: But you left out the other but but but you left out the other part, which was you went to the tire store, they said they're not gonna have it till what 'cause you had an appointment back in Reno that you had to get back to in three hours. Dwight Millard: Yeah, to three three hours, three hours and something. So I mean, after the show I hope I can go get it. But yeah, it's it's been one of those days. It always Jon G. Sanchez: I'm sorry, man. Dwight Millard: I never have a flat. That's the strength, you know, I typically I mean, I'm one of those people that pull off real quick. Yeah, it was awful. It was awful. Yeah. Jon G. Sanchez: Yeah, that yeah, you don't see that very often anymore. Yeah. And of all places they have in Washaw Valley too. Hey, you know, I guess the bright side is it wasn't a blizzard like you know, that we get Dwight Millard: No. Jon G. Sanchez: so much in Washa Valley. Luckily the winds weren't blowing a million miles an hour like we get in Washaw Valley. So could have been worse, but I'm sure it was nice and hot, you know. Dwight Millard: I John, I always find the you know, the the the lemonade in it. It it was fine, you know, it's all done now. Calm I'll go get the tire Jon G. Sanchez: Yeah. Dwight Millard: put back on and call it good, you know, so Jon G. Sanchez: So so why is Cory: Well, hey. Jon G. Sanchez: this a c a car you don't own yet? You got me puzzled on that one. You demoing it or something? Sold it? Yeah. Dwight Millard: Well, we haven't well, 'cause we I I'll just say no, no, I I I'll give a plug. Chris Cory: Install it. Dwight Millard: over at Lee Brothers has taken such good care of us. Corey knows him, I think you know him. The guy's Jon G. Sanchez: Yep, yep. Dwight Millard: been amazing letting us have you know, 'cause we we Yeah, yeah. So we he's been let us have a couple of cars to see if we like and we like this one and so now he's been amazing. So if anybody's looking the guy's a fantastic Jon G. Sanchez: Bought my first vehicle over there when I was seventeen years old. Perfect. Yeah. Perfect. Tell me what it tell you want to discount. You know, you want a discount now. Right? yeah. Dwight Millard: Yeah, yeah. I thank God I didn't to buy four tires because you know those all-wheel drives, they say if we can't save this tire, you gotta buy four. I don't even own the car. I said, you know. Well, we're gonna well no, we're gonna own it. It's Jon G. Sanchez: Maybe it's an omen that you shouldn't own this particular one. Dwight Millard: just a matter of a day or two, but we're gonna own it. So yeah. Yeah, yeah. We well, you know, it Jon G. Sanchez: Say change all the tires all the way around it. Yeah. Cory: Why? Dwight Millard: was funny because this morning I said to Melissa, I said, maybe I should drive the car because she's you know, she had to go down to Carson too. And I go, maybe I should drive the car. And I did and I got the flat instead of her. Can you imagine her with the flat? There is the fr yeah. yeah. Yeah, yeah, yeah, yeah. Yeah. Here, let me fix the flat and go back to the house where the dog is. Jon G. Sanchez: So see, there's the bright side. There you go. See? There's the other bright side of this whole thing. Making lemonade, like you said. Yeah. Dwight Millard: I'd have been in trouble. Yep. Yep. So no. Jon G. Sanchez: Sekuri, what were you gonna say? Dwight Millard: All is well. All is well. Cory: I was gonna say at least the rates were down today, so you don't have to worry about that. that was, I was joking. They weren't down. Dwight Millard: True, true. At least I don't have to be worried about that. know. Jon G. Sanchez: Right, right. Dwight Millard: I know. I true, true, true. I know. I know. I know. Jon G. Sanchez: So I'm gonna f I'm gonna find another bright spot for you, Dwight. At least mortgages aren't tied to the thirty year mortgage. Right? Hitting hitting a nineteen year high on those. Yeah. So all right. Well th well thank Cory: Yes. Jon G. Sanchez: you for sharing. I I I don't feel bad for the day that I've had today, so Dwight Millard: Yeah, we we're not robots on this show, right? It's real life. You know? And y yeah. Yeah. Jon G. Sanchez: Yeah, no, no, we are human beings to say the least. Yeah. How about you, Corey? Do you have any any good stuff happen today? I yeah. No. Nor normal day. Yeah, I'm with you. 100%. But like Dwight Cory: Good stuff, no, I mean, it was just a normal day, Groundhog Day. Nothing wrong with that. Yeah. Jon G. Sanchez: said, we're together now. We forget about the world for, you know, the remainder of the show and then we'll get back to reality. All right. Cory: Yeah. Dwight Millard: Yeah, yeah. Jon G. Sanchez: Well, speaking of reality, let's get down to it. a bit of a tough day today on the street. Gonna give all the reasons behind it, of course. And then we're gonna get into a very interesting topic. We've titled today's show, Everything is Negotiable, How to Get a Better Deal on Your Next Home. But folks, we're not talking about using Corey's excellent negotiation skills and he tells you, you know, here's how you do it. We're talking about how the purchase price really is only one part of the negotiation. Because depending upon the property, the seller, the market conditions, there may be an entire list of other things on the table that you and your real estate professional can negotiate. Things like closing costs, repairs, mortgage rate buy downs, appliances, inspection items, closing dates, contingencies. I mean, the list goes on and on and on. So the boys today are going to educate us on what those are. Because again, Corey, would you say, let me stop there? Would you say that we are in a negotiating marketplace at this point for buyers? Cory: Yes, more so than it has been. mean, it's still a seller's market. We'll talk about that a little bit, but more so than it has been over the last couple of years, you should be able to negotiate again, whether it's price, a little bit of concessions, some closing dates. The topic is spot on because everybody has different things that are important to them. Some of them don't involve money. And so it's Jon G. Sanchez: Mm-hmm. Mm-hmm. Right. Cory: really key to figure out what is important. And can I give that to you? and maybe get a little bit off the price in return if you're a buyer. Jon G. Sanchez: Right. Right. Right. Exactly. Do I? Dwight Millard: No, I I agree. It's it's perfect. And you know, and there's su such good nuggets in this thing because everybody does go after price. And we're gonna talk about financing and the concessions. I mean, everybody thinks ten Jon G. Sanchez: Yeah. Dwight Millard: taking ten or twenty thousand off the price is the way to go, and I'll I'll mix that. But yeah, it's Jon G. Sanchez: Yeah. Dwight Millard: it's really it's really because it they do focus on one thing, that's the price. Yeah. Mm-hmm. Jon G. Sanchez: Yes. Yes. Exactly. All right. Beautiful. Gonna be a great topic, boys. Great job putting it together. Let's get down to the stock market side of things today. Well, we go back to this morning. not a lot of activity was going on. We had a tremendous amount of economic data come our way. But there was not much going on on the Dow side and on the S P side. But there was a lot going on on the Nasdaq side. Starting things off this morning, the pre market session, we were down just north of three hundred points, a little over three hundred. First update I did 523 down 303. By the time the market was ready to open, we were down almost 400 an hour later on the Nasdaq futures. So it it was just it was one of those days. Now, what happened? Nothing as far as a major headline. It was again, as I've said many times, we have this situation going on with the semiconductors, and it starts while we are tucked into our bids. It starts in the Asian markets, then it goes over, and I'm talking if there's a good day or a bad day in the semis, starts in the Asian markets. Then it goes over to the European markets and then it hits us in the pre-market and then it hits us at the opening bell at 630. So that's what it was today. A complete reversal across the board on semiconductors, momentum momentum-oriented stocks, so on and so forth. And so, not like one company came out, gave an earnings warning or any specific bad news, but it was it was a situation, like I said, where everything that was semi-related, whether it's a memory or actual semiconductor, it got hit today. you know, Cash, I even know where to start. I mean, I'll I'll just hit some some major names that were down today. You had Fabernet, FN, not not a household name, down 19.39%, 116.06 loss to 482.52, coherent down $45.10, 12.84% loss to 306.12, pterodyne, 8.77% loss. Again, I can go right on down the board. But that sell-off also spilled over into the industrial sector, right? Caterpillar has been so resilient. We didn't get a lot of comments out of the White House today, as I said yesterday on the show. The memorandum of understanding, that 60-day ceasefire that you know, I think lasted about a day, it officially ended at midnight last night. Trump came out today and said, There there's no negotiations going on. Again, when the Trump administration told us two weeks ago that we're gonna have a deal that Monday or that Tuesday. That's what our Treasury Secretary said. And obviously that's gone by the wayside. So so we started to see weakness in caterpillar. that stock seems to be really correlated to what oil prices are doing and so on and so forth. And we didn't get a big bump up in oil today, but Just that global tension. Cat was down $40.82, 4.63% loss after posting some really solid gains yesterday. Stock closed at 840.83. Meta, we got a big trial that just started down in San Francisco, lost $25.30, 4.45% lost to $543.67. Big laggard again, as these opening arguments began in the child social media addiction case. So everyone's watching that one very closely. conversely, Some you know names that aren't the most exciting, but boy, they had a good session today. Jet Dow Component Johnson and Johnson up eight dollars and seventy-five cents. Coke, a dollar eighty-four gain. Am Amgen up five dollars and ninety cents. Home Depot, great earnings numbers, really firm earnings numbers, good guidance saying it's a it's a tough housing market, as you hear every day with the boys. but the stock ended up down just a little bit, down 21 cents to 337.67. I'm just gonna get these out of the way. The the the data today. Actually, you what, Corey, look Let's I'm gonna save it because I'm gonna start off with the housing starts and the building permits. I'm gonna get your perspective on that. What number was good? What number was bad? Tell you about those, hit the interest rates, the commodities, and then we're gonna get right into our topic again. Everything is negotiable. Welcome back to the John Sanchez Show on New Stock 780KOH with Corey Haven's really Dwight Millard of UnQue Home Loans. All right, here's how we finished up before we get to our topic. Everything is negotiable. All right, like I said, bit of a of a tough one on the Nasdaq side, but let me get to the Dow first. We finished down 116 on the Dow, a 0.22% loss to 53,343. NASDAQ lost 355 points, 1.33% to a close of 26,289. And the SP 500 lower by 53 points, 0.69% to a close of 7,691. Oil prices today edged up. You know, we had an over a two-dollar gain yesterday, attack on another 42 cents today, 84.88 a barrel. gold prices down fifty-three dollars and twenty cents. Closing level there on gold was four thousand four hundred and twenty dollars per ounce. And turning things over to the 10-year treasury, down two basis points for the day to a 4.71 percent loss. But again, we got that 30 year that the streets getting very concerned about. Some are saying this could be the beginning of a downturn, but we will see. actually went down a little bit on his yield today, down two basis points to a yield of five twenty nine. But again, we're hovering right around this nineteen year high in that thirty year treasury. Okay, Mr. Millard, over to you. How do we do on the mortgage side of things today? Dwight Millard: Yeah. So when you say that nineteen year high, you can only imagine. So we're up two basis points on the thirty year fixed according to Mortgage News Daily. Six point seven five, John. I mean, we've gone from Jon G. Sanchez: So right there. Dwight Millard: the six five range now to the six seven five. Yeah, it's it's a rough one. Jon G. Sanchez: But you know what's interesting though is we had the tenure go down and the thirty year mortgage went up. You don't see that very often. Usually pretty correlated. Dwight Millard: Yeah, yeah, yeah. No, and and and it w and the the mortgage backed securities were up, but just very slightly. But you know, they're just saying right now, when you look at the headlines, you know, across the board, you know, US government Jon G. Sanchez: Right. Dwight Millard: debt yields are surging at a bad time, bonds or yields are climbing. You know what this means? You know, pending Jon G. Sanchez: Yes. Dwight Millard: home sale like you were gonna talk about retreat. Yeah, I mean that it's just so anti better rate news. You know, it's Jon G. Sanchez: Right. Right. Dwight Millard: I don't know, John. It's just gonna be a it's Jon G. Sanchez: Are are you guys hearing anything? Just quick side note, are you hearing anything out of the Trump administration regarding any type of programs that, you know, Polte's dealing with or anybody, you know, anything lurking out there? 'Cause I've not heard one thing. Dwight Millard: No, no, and John, I think and and I think the the quickest fix they could do right now, the quick is back off those yield spread premiums, those add-ons for Fannie, Freddie, FHA, back off of them. You know, that'd probably drop rates a point. That'd drop rates a full point if you got rid of that. It's a cash cow. Yep, yep, yep. Jon G. Sanchez: Right. Right. But yeah, but like you said but but like you said, it's a it's a it's an ATM machine for the government. Yep, exactly. Okay. Cory: So when you, I'm curious, Dwight, when you say a point, is that 675 to 575? Dwight Millard: Yeah, you probably would get it well, if if they backed off a lot of those, you'd you'd probably at least lose you probably gain at least a half a point, if not five eighths Cory: Yeah. Dwight Millard: to three quarters in actual rate. Depending on Jon G. Sanchez: So low six percent thirty year. Dwight Millard: yeah, depending on your, you know, your profile that added all those. But I mean, you know, let's have a holiday, right? Till the end of the year or something, you know, back off those. I mean, they're just loan level price adjusters. And this came out of the crash, you know, or the meltdown of eight, nine. They we never had those before. And now we've got everywhere you li that was remember when they said the best borrowers in the world are still gonna get remember they were gonna get hit. They all everybody Jon G. Sanchez: Yeah. Yeah, you're right. Dwight Millard: gets hit. Everybody's at least got a quarter in the deal, not in rate, but in cost. it yeah, Jon G. Sanchez: Yep. Exactly. Dwight Millard: yeah. Jon G. Sanchez: So let's go to the the economic data. so Corey, as I said, as you all know, going into the close here, we we finished good on one and and or I should say we we we got one good report and one bad report. The good report, of course, was building permits, four and a half percent gain month over month. And this is July's data. So let's let's focus on the bad the good one first, and then we'll go to the bad news, which was the housing starts. Yes, yes. Yeah, I I actually have some comment on that. I I just looked at looked at my notes. So yeah, the weakness was in the single unit starts, which is a month at future rising interest rates. There we go. Then increased the cost of financing. So sorry. Yeah. Sure. Right. Now the flip the f I'm sorry, go ahead, finish. Yeah, building pro Yeah. we lost Corey there. so what Corey was gonna say the building permits, which again is obvious a I'm sorry. Say it again, Corey. You froze up there. Sorry. What are they pulling back to white? Fill in the blank. Yeah. All right. Well, if for yeah. Yeah, absolutely. Absolutely. Yeah, coming in coming into winter. Yeah. Yeah. So Dwight Millard: Mm-hmm. Their starts. Their starts. Yeah. They gotta clear out they gotta clear out their inventory, John. That's what a smart builder would do. Anybody that's weathered the storm, you gotta get the you gotta get them off your books. Yeah, yeah. Jon G. Sanchez: so the building permits were up four and a half percent month over month. So or excuse me, up five percent, excuse me, month over month. And again, the bright side is that's a forward looking indicator. But as Corey always says, you know, you don't know how far out they go, right? Are they w or n I shouldn't say how far they go, but when are they actually gonna break ground, right? Just 'cause you pull a permit, you know. How long Dwight Millard: Mm-hmm. Yeah. Jon G. Sanchez: t how long do you have, Dwight, and a housing track to start building when you get your permits? I mean, they can postpone it quite a while, can't they? Dwight Millard: Yeah. Yeah. Yeah, you can. Yeah. And and John, I think they do. You know, I don't know what the purpose of pulling the permit unless you go through more regulation, you know, or they have some Jon G. Sanchez: Of course. Dwight Millard: changes, right? And you gotta go back to, you know, so you can you you can let the permit stay there. I don't know what the time frame is, but you can let it sit there for a while. I mean, you don't have to go pull the permit. So it it Jon G. Sanchez: Right, right. Right. Dwight Millard: makes sense to kind of keep those guys on that front end working, you know, to have the permits just sitting in the hopper and maybe you pull maybe you pay the money to pull You just don't go. Jon G. Sanchez: Right. Dwight Millard: And I don't think it's that expensive to pull the permit, but Jon G. Sanchez: It's like a it's it right. And it's like a sh what we call a shelf registration in the stock market, right? Dwight Millard: Mm-hmm. Jon G. Sanchez: A company can, whether it's an IPO or a secondary offering, boogle file with the SEC and be ready to go. And then they'll like the saying says, they'll put it on the shelf and wait for the best market conditions to to do that offering. So very similar. Dwight Millard: Well, and and John, I think too that makes sense because then you said, I don't think they can come back retro. May I maybe I'm wrong to say, hey, you now your permit, we got to come back and change. So your permit stays and it's good. Can you imagine they get, we need to add us another tree, you gotta resubmit it. Can you? I mean, I'd just drive you crazy. Right. But that's what happens, right? So Jon G. Sanchez: Right. Yeah. Yeah. Yeah. That's true. Yep. Dwight Millard: I think that's what makes sense. Get your permits. And maybe, you know, John, the the one thing about the permits, if you get into the be interesting where they came from, because if you get into winter months in those states. Why not get your foundation, get your get you know, Jon G. Sanchez: Sure. Dwight Millard: get your you know, your slab down before it gets cold and you don't have to blanket and all that stuff. So maybe you just get it poured and Jon G. Sanchez: Yes, yes, a lot of extra work. Dwight Millard: you're ready to kind of work throughout the winter. I don't know. Jon G. Sanchez: Absolutely. All right. the rest of the reports today, like I said, there was a lot. We had import prices down four tenths of a percent for the month of July. Export prices also down four tenths of a percent. That was interesting. industrial production up two-tenths of a percent. They were looking for about a four-tenths of a percent gain there. So a little bit of a miss. And then pending home sales came in. also you know, a little little bit, little bit on the on the the weak side down two point three percent. they did revise the prior month at June, of course. revised it to f negative four point eight percent from negative five point four. So a little bit of an improvement there. But again on the but there's a pullback. Yeah, absolutely. No matter how you slice it. Dwight Millard: But but there's a pullback, John. Yeah, there's a pullback on the pending. Yeah. On and now it's not just now it's just not on the new construction that we've been talking about. Now the pen you know, everything it yeah, just yeah. Jon G. Sanchez: Right. Now the penny home sales. And that's why I started this segment by saying, Are you guys hearing anything out there? Because the data's there. The earnings numbers from the from the publicly traded builders were were pretty decent. But you know, let's use Dwight Millard: Yeah. Jon G. Sanchez: Home Depot as an example. They, you know, good earnings numbers, but they said very, very challenging environment. Very challenging environment. So the writing's on Dwight Millard: Mm-hmm, mm-hmm. Yeah. Yeah. Jon G. Sanchez: the wall. I wish someone would do something. again. because Dwight Millard: But John, you can even go, we've talked about this. You can even go into the, you know, the local and county governments. I mean, they could give some sort of a holiday to something, you know. Jon G. Sanchez: Yeah. Dwight Millard: I mean, these hookup fees, I mean, we could talk about this forever, but these hookup fees are high. The affordability, Jon G. Sanchez: Yeah. Yeah. Dwight Millard: and that's what's driving the co builder confidence so low, you know, is there's just Jon G. Sanchez: Sure, sure. Dwight Millard: the affordable you can't, it's so tough right now. And these builders Jon G. Sanchez: Yeah. Dwight Millard: are out there. You know, they're out there exposed, John. I mean, you Jon G. Sanchez: Yes. Dwight Millard: know, maybe not the nationals, but these local guys, these regional guys, man, you gotta hand it to They they keep trying to provide Jon G. Sanchez: yeah. Takes a lot of guts. Dwight Millard: and it yeah, it's not easy. Jon G. Sanchez: Good. No, no, sir. All right. When we come back, we're going to get ready to get into our real estate topic. Everything is negotiable. How to get a better deal on your next home. And again, we're not going to be talking about prices. That's going to be very little of our topic on negotiations. It's all the other things that you're going to learn about with Corey and Dwight. Welcome back to the John Sanchez show on his talk 780 KOH with Dwight Millardov on Q Home Loans, Corey Edge of Edge Reality. Once again, we finished down 116 on the Dow. And the NASDAQ was the the trouble spot today, as I've mentioned a few times. We gave up a pretty good chunk on the NASDAQ side, down 355, 1.33%, SP lower by 53 or 0.69%. All right, but that's it on the stock market side. Now we're gonna move on to the home, right? The real estate side of things. I'm gonna put Corey and Dwight to work. I want to know the following. What really is negotiable in today's real estate transaction? Again, we'll touch, we'll touch on price, Corey's specialty, but there's so much more that, like Dwight said at the beginning of the show, can really, really add up. So, Corey, let's start with you. How much leverage does the buyer have in today's marketplace? Cory: it depends. I mean, it depends on the seller. It depends on how motivated that specific seller is. But I will say in in general terms, you have more leverage than you did again two years ago. the longer a house sits on the market, the more leverage you have. The more the more information you can get on the seller, the more leverage you have. It's all information and timing, right? Like and by leverage, John, nobody nobody's going to give their house away to 30% discount, you know, unless Dwight Millard: Speaker. Cory: there's something crazy wrong with it. So leverage might mean sometimes it's dollars. Sometimes it means, hey, I can get a few bucks off. Sometimes it means I can do an extended escrow because that helps me out. Sometimes it means you're going to throw in the lawnmower, the refrigerator, the washer, dryer, you know, and you're used Chevy that's sitting in the backyard. Like there's Jon G. Sanchez: Mm-hmm. Cory: all different ways to use it. I think a lot of people jump straight to dollars and cents. And as Dwight has always educated us, sometimes a lower price isn't the best option as far as affordability and cash flow. So you gotta kinda look at everything. Jon G. Sanchez: I what would be the Corey Go Dwight Millard: Hey, Corey, would it make s what I'm sorry, John. Jon G. Sanchez: do it. Dwight Millard: I was gonna say, Corey, would it make sense to assume that the seller may already be in contract on another? I mean, that you know, we're struggling to find, you know, bridge loans and things like that. I mean, that that's very motivating to a seller, right? If you could find out if they're relocating, already in a deal, correct? Jon G. Sanchez: Right. Now we're having tech issues with you. We heard about every fifth word that All Cory: I got about half of that. Dwight Millard: my goodness it's not me Cory: Sound like Mickey Mouse. Jon G. Sanchez: right. Do I just you kind of kind of reboot there? Corey, if I said you know, share with us the Corey Edge list of things you look at, because you're so great at I'll call it kind of investigative, analysis, right? Like you said a moment ago. You look into things. You don't assume anything. You you find out what's w really motivating the seller, et cetera. So if I said, Corey, put together this list, what would be on that list you know, as far as things to to to to look into before you go, you know what, I can really arrange some good negotiation with this buyer or with this seller. Cory: so a lot of this is just my O C D, right? Like this is just how I do things. Jon G. Sanchez: Yeah, exactly. Cory: so I want to see the history of the house. Has it been in escrow before? If it's fallen out of escrow, figure out why. And I this again, this is just me personally. I try to do all of this before I call the listing agent because I hopefully I can find out the answers before I ask the question. Because then I don't know if somebody's given me the real story or not. Jon G. Sanchez: Right, right. Cory: so if it's been in escrow before and fallen out, I'd like to know why. if it was an escrow for a long time and fell out, it's usually a loan problem. If it was only an escrow for two weeks, it's usually an inspection issue. if it's in a trust, then I'll try to dig around. This is gonna sound hokey. Try to dig around and see, okay, well, are both people that are in the trust still alive? Did somebody just pass away? Like you're just trying to find out all the information. Jon G. Sanchez: Mm-hmm. Cory: And again, it it it It doesn't mean they're going to take a much better deal because I have all these answers. It just means that I can help my client tailor their offer to what that person needs. Jon G. Sanchez: Right. Cory: And I've told many people over the years, hey, don't worry about paying full price if we think it's worth it, if we can get XYZ on the back end. Because Jon G. Sanchez: Mm-hmm. Mm-hmm. Cory: everybody else is going to give them full price and not get that stuff. So let's try to figure out what's important here. Jon G. Sanchez: Right. All right. Do I have do we have a back, I think? Yes, you're good. Go ahead. Dwight Millard: I am I back? Do I sound No, I what my question was to Corey, is it safe to assume that the seller may already be in contract on another property? And if you could find that out, that gives you some Jon G. Sanchez: Good point. Dwight Millard: some some leverage there perhaps. Cory: Yeah, I don't I don't know that I would assume it, but it's certainly a question that pops up. And if that listing agent is sm so every deal's different, but if the seller is in contract on another property, a smart listing agent is going to make the sale of their current house contingent on that house. Does that make sense? Dwight Millard: Mm-hmm. Cory: Because if I get in contract with you, I don't care if you buy the other house. We have a contract and and we're moving in no matter what. and so yes, it I I wouldn't assume that is always the case, but it's very important to know if it is the case. Jon G. Sanchez: But here we are here we are talking about negotiations. You just mentioned something that happens a lot, Corey, which is yeah, I've got another house. Oops, it's not ready. And I can't coordinate these times of when I'm closing an escrow on the house I'm selling and closing an escrow on the house I'm moving into. So therefore, hey Dwight, Mr. Great, you know, seller, hey, can I rent this place from you for you know three months while my house, you know, gets finished up? You guys have mentioned that many times. That can be fairly lucrative, actually. Dwight Millard: Mm-hmm, mm-hmm. Mm-hmm. Mm-hmm. Mm-hmm. Mm-hmm. Cory: Correct. So I just closed a deal last month in that exact scenario. I had the Jon G. Sanchez: Really? Cory: seller. We were looking for another property. She was older. So I didn't want her to have the stress of closing and having to be out. I didn't want her packing ahead of time because every deal till the deal's done, it's not done. So I didn't want her to go through that if if we could help it. so I said we have to negotiate a minimum one or two month rent back so that we can get through this, keep the stress level down, make sure we can get into the new place. That was very important to her. And so we probably gave up a little bit in the sales price that she accepted in order to Jon G. Sanchez: Okay. Cory: get that. But the deal went until the very end. It went a little wonky at the very end, but we got through it. But it went smooth. Nobody stressed out. You Jon G. Sanchez: Period. Cory: know, she got her house, the her buyer got her old house. Like it all worked out. Jon G. Sanchez: So do you generally Dwight Millard: But John, that's where that's where you use Corey because it Corey is exactly right. Why not negotiate a rent back than trying to do a bridge loan and cost $25,000? Just cost you $25 grand to do a bridge loan. Jon G. Sanchez: Yeah. Yes. Yes. Absolutely. Absolutely. Dwight Millard: That's it, that's actually the smartest way to go to give you that time. And you know, and I think, Jon G. Sanchez: Sure. Dwight Millard: Corey, if I'm not right wrong, well, you have to be careful though, John, because the new buyer technically needs to move with in within 60 days, but you know, of getting the loan. But what I'm saying Jon G. Sanchez: okay. Per per okay. Dwight Millard: is. But you could do an extended escrow. You could do a 60-day escrow and then a 60-day rent back to give you that time. But that to me, yeah, in today's world Jon G. Sanchez: So Dwight Millard: of these bridge loans not really being effective, it's a good way to go. Jon G. Sanchez: So so here's my question, Corey. do you typically like it sounds like with this this deal you just closed, you You you didn't you you negotiated on on the sales price of the house. Your client did not the seller, she did not write a rent check for whatever, twenty five hundred dollars a month to the buyer. You just did it and the you negotiated in the price. Is that right? Cory: so the way that I'd like to handle these things is figure it out all up front with my client, whether it's a buyer or seller. Here's going to Jon G. Sanchez: Okay, okay, okay. Cory: be the best scenario. So now we know what the best scenario is. So then when the buyer for in our in this particular case, when the buyer came in and I could talk to the buyer agent the very first time was the very first thing I said to him. It's very important to us to have this rent back. I offered it at no rent, of course, because it's my client. They came back and said, at least pay my PI, my client's P I T I. principal interest, taxes, insurance. No problem. So my client paid it through her proceeds at closing, never wrote a physical check, but it was all there and done. And so Jon G. Sanchez: Yeah. Nice. Cory: again, I I find that you can solve a lot of problems by just discussing it up front and taking care of it. Jon G. Sanchez: Yeah, I like that approach. Not not waiting to the last minute, right? Day day day before a day of escrow go, by the way, we need to stay in here another sixty days. Yeah, that doesn't work too well. Cory: and I and I you know, I made the comment earlier and I've had it happen at least three times that I can think of, where the seller is in contract on a new house, we've got a closing date, and they'll call two days before and say, the house isn't ready. Like that's not my problem. Like that's Jon G. Sanchez: Right. Right. Cory: your you didn't you weren't smart enough to write a contingency in here, that's not my problem. So Jon G. Sanchez: Right. Yeah, exactly. Okay, Dwight, let's get started. We got about a minute before we have to go to break, Dwight. But this is really one of the most important ones. The mortgage rate buy down. And you guys have talked to your blue in the face about this being a a big negotiation factor right now. Break the ice on this one, then we'll come back and finish it up. Dwight Millard: Yeah, so real real quick, they're called concessions. You know, on FHA, you've got 6%. On conventional, you can range from three to nine. it's just a way to buy the interest rate down. You can do a permanent rate buy down, which means you're throwing all your money to buy it down right now. If rates go down and you're refinance, you kind of wasted it, or you can do a temporary buy down. I'm a huge proponent right now of temporary buy downs, which I would say I never would be until now. but it's just a way it's at John, it makes more sense than to take 10,000 off of your sales price than than to put it towards buying down the rate. You're much you gain much more ground negotiating rate. Not only that, you become your worst Jon G. Sanchez: Mm-hmm. Dwight Millard: comp, right? If you knock $50,000 off the Corey's a great negotiator, he knocks $50,000. You're your next you're you're your own worst comp. So you keep I Jon G. Sanchez: Yeah, it's a good point. Dwight Millard: like to keep the the sales price up. Everybody in the neighborhood likes to keep. And Corey does this. This is Jon G. Sanchez: Mm-hmm. Dwight Millard: what he does. And he negotiates everything else, such as points, rate buy downs, or different things. You can prepay a lot of stuff too. You can prepay your taxes, your insurance. So you can take some relief off the buyer. So I mean that that goes much further than reduction every time, John. There's not been one time I've worked out the numbers where actually putting taking money off the sales prices. Jon G. Sanchez: Okay, perfect. All right. We'll continue our discussion when we come back. Great job, boys. Everything is negotiable. Welcome back to the John Sanchez show on Newstalk seven eighty K WH. Mr Millard, can we get your phone number, sir? Dwight Millard: Absolutely two four zero two zero two two. Jon G. Sanchez: Mr Corriage? Cory: six seven three six seven zero zero. Jon G. Sanchez: Beautiful. Thank you, boys. All right. Dwight, we're tied on time. A lot of things to still talk about. Anything you want to add on the the rate buy down? Very it's it's something you gotta put a lot of a lot of thought to. You need your experience. Dwight Millard: No, no. Absolutely. And and at least get yeah, at least get the due diligence and know what the difference is because that's the way Jon G. Sanchez: Mm-hmm. Dwight Millard: to go. I'm just telling you right now, I've not been able to create a scenario where it's better to just take it off the price. Jon G. Sanchez: Beautiful. Okay, Corey, your next negotiation point, the home inspection. One of those pet peeves of yours. Cory: Yeah, and it's very important. As a buyer, it's the most important thing. As a seller, it's the day you're kind of dreading sometimes. the way our contracts work now, they Jon G. Sanchez: Ha ha ha. Dwight Millard: It's definitely Cory: changed them a few years ago. Theoretically, you will have already negotiated price and everything else ahead of time. Then a couple weeks later, the inspector's gonna roll through. Now you get to go through a whole nother set of negotiations depending on what the inspector finds. Most of the time, right now, John, unless it's a big issue, you're you're negotiating over cash. Right. It's Jon G. Sanchez: Okay. Cory: it's very rare now, at least in my office, to have somebody actually do the repairs. Right. Unless it's something big. But if it if it's Jon G. Sanchez: Interesting. Interesting. Cory: a list of little things, like I just I closed another one last month and I think the repairs they had a handyman bid it. I want I can't remember the numbers, like thirty two hundred bucks or something. So they asked Jon G. Sanchez: Mm-hmm. Cory: for that in a credit. So they would just take care of it. My guy was like, Absolutely. I don't want to deal with it. If you want to deal with it, go for it. but it's still negotiating thing, right? And in a market where the super strong sellers market used to be able to say nope not touching it take it or leave it in the current market yeah and in the current market Jon G. Sanchez: Yep, I remember that. As is, baby, as is. Dwight Millard: Mm-hmm. Cory: I would recommend to most sellers under most circumstances you should take a hard look at it because you may not you your net difference may be much lower than what you think if you have to go back to the market right now. Jon G. Sanchez: When when does it kind of become ridiculous, Corey? I I mean, is there a a dollar amount where you tell your, let's say you're representing the seller, you tell the seller, look at, yeah, whatever. Under 3,000 bucks, just give it to him. From three to seven thousand, let's try to negotiate. Over seven thousand, hey, you know, this is serious, you need to get this stuff done. Any rule of thumb like that? Cory: No, usually what I'll do again, like in the two instances I just gave you, they'll have to still send us the report. Here's the report and here's what we want fixed, or we'll take X amount of dollar amount. I have enough contacts where I'll run it through, if I can't figure it out myself, I'll run it through my GC guys or the any of my guys be like, Yeah, Jon G. Sanchez: General contractors. Mm-hmm. Cory: what what would you charge for this? And if it's in the ballpark of what they're requesting, then it's way easier to give them the money than to have our guys come out and do it. But Jon G. Sanchez: Okay. Okay. Cory: I've been the flip side, like, they want 10 grand and My general contractor's like, I can do that for two grand on, you know, tomorrow. Like, okay. Jon G. Sanchez: Right. Cory: So the seller still has the choice. You don't have Jon G. Sanchez: Okay. Cory: to give them cash. You could say, no, no, send me a list, I'll fix it. Jon G. Sanchez: Mm-hmm. Cory: just remember, sellers aren't allowed to do all their own work. So you can't be a it it's you Jon G. Sanchez: I didn't know that. Really? Is that n is that new? Cory: no, but you need to be careful. I shouldn't say not allowed, but if you have huge electrical problems or any kind of structural problems or anything else, then Jon G. Sanchez: Yeah. Contractor items, right? Things you need a license contract. Okay. Cory: Correct. Yeah, you you you don't just get to start, you know, pulling out the electrical panel box and putting in your new one to save two grand and then expect the buyer to still buy the house from. Jon G. Sanchez: Okay. Okay. Beautiful. Yeah. Okay, guys. We're gonna do something a little different. We're gonna do a a rapid fire round, right? We I'm we only have a couple minutes left. So I'm gonna alternate. I'll tell you which one of you're gonna answer this question, and what we're trying to do Dwight Millard: Okay. Jon G. Sanchez: here is negotiable or not. That's all you gotta say. Negotiable or not. Cory: It's like a game show. Jon G. Sanchez: Like a game show. Here we go. Millard. Or no, Corey, closing date. Cory: Absolutely negotiable. Jon G. Sanchez: sell a rent back, Dwight. Dwight Millard: Negotiable. Jon G. Sanchez: Corey appliances. Cory: Absolutely. Negotiable. Jon G. Sanchez: Corey furniture. Cory: Negotiable, yep, just did one of those. Jon G. Sanchez: Okay. Home warranty. Cory: Negotiable. Jon G. Sanchez: no, that was you. That was you. next one's Dwight. HOA related cost Dwight? Dwight Millard: boy. That's probably not negotiable. That's probably not negotiable Jon G. Sanchez: That's a good one, isn't it? Dwight Millard: to who pays it is, but you can't negotiate away from the fees. Jon G. Sanchez: Any any feedback on that one, Corey? Cory: so who pays it is negotiable, but Dwight's worry, yeah. What you can't know should you can't buy the house and say, I don't want the HOA. I'll take everything else but not the Dwight Millard: Yeah. Cory: HOA. That'd be awesome, but you can't do that. Completely negotiable. Absolutely. Yep. Jon G. Sanchez: Right. But what if there's back back dues to the HO? There we go. Okay. All right, we just covered repairs. We know that's negotiable. Dwight closing costs. Dwight Millard: Negotiable. Jon G. Sanchez: Okay. Corey contingencies. Cory: Absolut yes, negotiable. Jon G. Sanchez: Possession date. Cory: Me negotiable. Dwight Millard: Negotiable. Jon G. Sanchez: Okay. Yeah. Both of you. Yeah. That that one's a good one. Negotiable, negotiable. All right. That's it for the rapid fire. That was that was pretty simple. Took it easy on you guys. Corey, let's wrap it up with this. How do we find out what the seller actually wants? Right. We think there's a big mystery to it, but the Corey Edge world of simplicity, I think you have a different answer for. So share that. Cory: So again, my OCD, I try to look at everything I can on on my own, but the best source of information ultimately is going to be the listing agent. So I try to figure it out on my own and then ask a listing agent. And I will tell you, I've been doing this almost 30 years. 97.5% of the listing agents you call will be upright, honest, tell you exactly which, you know, they're Jon G. Sanchez: That was gonna be my next question. Okay. Cory: very good people and easy to deal with. There are that two and a half to three percent that will lie directly to your face, but you'll know it. Like you can figure it out. Jon G. Sanchez: Do they they they have a legal responsibility to to be honest with that, right? Cory: Y yes. I mean, they'll claim that no, I gotta get what's highest and best for my cellar, but you can't lie to people. I mean, come on, we're human beings, but yeah. Jon G. Sanchez: Yeah, exactly. Exactly. Fascinating. All righty, boys. Great job as always. Do appreciate you. What great knowledge. And reach out to the fellas if you have any questions and need to figure out if it's negotiable or not. Great job, boys. See everybody tomorrow. God bless.