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Designing and Building the Midwest the Realtor Segment with 1st Choice Realty Pros: Rising Interest Rates · Designing and Building the Midwest One Community at a Time

• 0:00
  SPEAKER_04: Hey, welcome to designing and building the Midwest one community at a time.
• 0:03
  SPEAKER_04: I'm Chris Hardtock with Big Dog Construction, your local Window Depot.
• 0:07
  SPEAKER_07: And I'm Caitlin.
• 0:08
  SPEAKER_07: This is the show where we bring you real insights, expert input, and a lot of entertainment along the way.
• 0:13
  SPEAKER_07: It's the podcast you didn't know you needed.
• 0:15
  SPEAKER_04: Hey, every week, our main focus is bringing you the best advice on home improvements, remodeling, and how to take care of your biggest investment.
• 0:22
  SPEAKER_04: But we don't stop at the property line.
• 0:24
  SPEAKER_07: Exactly! We also dive into our realtor segment to cover the ins and outs of buying and selling locally.
• 0:29
  SPEAKER_07: And our community segment where we talk about giving back charity and what's really happening across the Midwest.
• 0:35
  SPEAKER_04: Plus, we regularly sit down with some fantastic guests from all walks of life to hear their unique stories and perspectives.
• 0:42
  SPEAKER_07: Whether we're talking blueprints or community roots, we've got you covered.
• 0:45
  SPEAKER_07: Let's get into today's episode.
• 0:47
  SPEAKER_07: Big Dog!
• 0:48
  SPEAKER_08: Hey there, I'm Lisa Miller, managing broker and owner of First Choice Realty Pros.
• 0:53
  SPEAKER_08: We don't just help you find a house, we help you discover home.
• 0:58
  SPEAKER_08: My team and I are passionate about taking care of your needs, making the process smooth, and ensuring you get the personalized attention you deserve.
• 1:08
  SPEAKER_08: Ready for the next step?
• 1:09
  SPEAKER_08: Call us at 217-825-3999.
• 1:14
  SPEAKER_08: With First Choice Realty Pros, you've got a team that's got your back.
• 1:18
  SPEAKER_04: Hey, welcome back to another First Choice Realty Pros Realtor segment here on the Design and Building the Midwest One Community at a time podcast.
• 1:27
  SPEAKER_04: Hey, today we're talking about something that affects just about everyone who's thinking about buying or selling a home right now.
• 1:32
  SPEAKER_04: That's interest rates.
• 1:34
  SPEAKER_04: But before I say that, I'm Chris Hartshook.
• 1:36
  SPEAKER_04: I am your host with my lovely co-host, Caitlin Bogini.
• 1:39
  SPEAKER_07: Hello.
• 1:40
  SPEAKER_04: And as usual, we have our wonderful 10x partner, Lisa Miller here.
• 1:44
  SPEAKER_07: Hello.
• 1:44
  SPEAKER_04: We are missing the Lydio.
• 1:45
  SPEAKER_04: I mean Lydia today.
• 1:48
  SPEAKER_07: Because she's in Texas.
• 1:49
  SPEAKER_07: I can tell you.
• 1:50
  SPEAKER_07: Yeah, there you go.
• 1:51
  SPEAKER_07: I've just been dying on her way.
• 1:53
  SPEAKER_07: Yeah.
• 1:53
  SPEAKER_07: On her way to Texas.
• 1:54
  SPEAKER_04: Well, hey, we're talking about, we've seen rates move around quite a bit, and that naturally creates a lot of questions.
• 2:00
  SPEAKER_04: What does it mean for buyers?
• 2:02
  SPEAKER_04: What does it mean for sellers?
• 2:03
  SPEAKER_04: Are home prices going to fall?
• 2:05
  SPEAKER_04: And maybe the biggest question of all is is it better to buy now or wait?
• 2:10
  SPEAKER_04: Lisa, let's jump into it.
• 2:11
  SPEAKER_04: Okay.
• 2:12
  SPEAKER_04: So what are they doing to today's real estate market?
• 2:16
  SPEAKER_04: When I say what they, what are interest rates doing to today's real estate market?
• 2:20
  SPEAKER_08: Well, interest rates, it affects the buying power.
• 2:23
  SPEAKER_08: So, you know, people, a lot of times buyers will say, Well, the house is 250,000.
• 2:28
  SPEAKER_08: So what?
• 2:29
  SPEAKER_08: So what what what do I need to know more than 250,000 for the price?
• 2:33
  SPEAKER_08: There's a ton you need to know.
• 2:35
  SPEAKER_08: Right?
• 2:36
  SPEAKER_03: Right.
• 2:36
  SPEAKER_08: And that's why we want to sit them down and tell them everything that goes into what you're just about to sign in 30 years.
• 2:45
  SPEAKER_08: Yes.
• 2:46
  SPEAKER_08: Okay.
• 2:46
  SPEAKER_04: Or 15 or 20 or whatever their term they go.
• 2:49
  SPEAKER_08: Right, right.
• 2:50
  SPEAKER_08: Because that monthly payment, monthly payment is a monthly payment.
• 2:55
  SPEAKER_08: That's right.
• 2:56
  SPEAKER_06: That's right.
• 2:57
  SPEAKER_08: Forever.
• 2:58
  SPEAKER_08: Yes.
• 2:58
  SPEAKER_08: So I I I did a little chart here.
• 3:01
  SPEAKER_08: I love it.
• 3:02
  SPEAKER_08: Just to kind of give give you an example of a 7% interest rate.
• 3:09
  SPEAKER_08: This is just the principal and interest.
• 3:10
  SPEAKER_08: This is not even adding in the escrow escrow.
• 3:13
  SPEAKER_08: Oh, yes, yes.
• 3:14
  SPEAKER_08: This escrow.
• 3:15
  SPEAKER_08: That's right.
• 3:16
  SPEAKER_08: Caitlin got that point right.
• 3:17
  SPEAKER_08: Yes.
• 3:17
  SPEAKER_08: So on a$250,000 house, 7% interest, the monthly payment would be$1,663.
• 3:26
  SPEAKER_08: Total paid over 30 years for that$250,000 house.
• 3:31
  SPEAKER_04: Sit down, folks.
• 3:32
  SPEAKER_08: $598,000.
• 3:35
  SPEAKER_04: That's it.
• 3:35
  SPEAKER_08: $772.
• 3:37
  SPEAKER_08: That's it.
• 3:38
  SPEAKER_08: See, I think that's jarring to me.
• 3:40
  SPEAKER_08: Horrible.
• 3:41
  SPEAKER_08: That's$348,772 in interest.
• 3:47
  SPEAKER_08: Now that makes me cry.
• 3:49
  SPEAKER_08: Yeah.
• 3:49
  SPEAKER_08: Yeah.
• 3:50
  SPEAKER_08: So$6.5% on a$250,$1,500,$1,580 for a monthly payment.
• 3:56
  SPEAKER_08: Okay.
• 3:56
  SPEAKER_08: Okay.
• 3:57
  SPEAKER_08: $568,000.
• 3:59
  SPEAKER_08: Okay.
• 4:00
  SPEAKER_08: Total interest.
• 4:01
  SPEAKER_08: $318,000 in interest that you would pay over that 30 years.
• 4:06
  SPEAKER_08: But that's the price of another house.
• 4:08
  SPEAKER_08: Why is it so important to pay more when you can on the house?
• 4:15
  SPEAKER_08: Or watch those rates.
• 4:16
  SPEAKER_04: Pay it down, you mean?
• 4:17
  SPEAKER_04: Pay it down.
• 4:18
  SPEAKER_08: Pay it down.
• 4:19
  SPEAKER_08: So like pay it down at first.
• 4:20
  SPEAKER_04: More down payment.
• 4:21
  SPEAKER_08: More down payment.
• 4:23
  SPEAKER_08: At the beginning.
• 4:23
  SPEAKER_08: Okay.
• 4:24
  SPEAKER_08: Or at the beginning, if you can put more down payment down, which makes those numbers all different.
• 4:29
  SPEAKER_08: Okay.
• 4:29
  SPEAKER_08: But you're you're financing the whole 250.
• 4:32
  SPEAKER_08: All right.
• 4:33
  SPEAKER_08: Back in 2020, 2021, 22, 23, 24.
• 4:38
  SPEAKER_08: 2%.
• 4:39
  SPEAKER_08: We got that 2%, which everybody, whoo, they heard the angelic angels.
• 4:43
  SPEAKER_08: Yeah, yeah, yeah.
• 4:44
  SPEAKER_08: Okay.
• 4:44
  SPEAKER_08: For that same house for 30 years.
• 4:47
  SPEAKER_08: This is now you're gonna know why people are holding on to their houses.
• 4:51
  SPEAKER_08: They only had to pay$82,000 in interest over those 30 years.
• 4:55
  SPEAKER_08: And their payments were$924.
• 4:59
  SPEAKER_04: Almost half of what the interest is.
• 5:02
  SPEAKER_04: Yeah.
• 5:02
  SPEAKER_08: So it was so different.
• 5:03
  SPEAKER_08: So they could buy the higher dollar house because the interest was so low.
• 5:09
  SPEAKER_03: Right.
• 5:09
  SPEAKER_07: Is the interesting go by the the like is the interest higher on a on a higher value home?
• 5:18
  SPEAKER_07: Is that like the interest is the same for everybody?
• 5:21
  SPEAKER_08: It's it's whatever.
• 5:22
  SPEAKER_08: Yeah, MMA, Freddie Mac, all of those.
• 5:24
  SPEAKER_08: Yeah.
• 5:25
  SPEAKER_04: Correct me if I'm wrong, Lisa.
• 5:26
  SPEAKER_04: Lower the interest rate, the larger the dollar amount you could go on a home if your credit supported that.
• 5:34
  SPEAKER_07: Yes.
• 5:34
  SPEAKER_07: Got it.
• 5:34
  SPEAKER_07: Yes.
• 5:35
  SPEAKER_07: Okay.
• 5:35
  SPEAKER_07: I'm picking up what you're doing.
• 5:36
  SPEAKER_04: Your buying power was stronger because your monthly payment would be less.
• 5:41
  SPEAKER_04: Because like this, 900 out of 2%,$932 a month versus$1,663, almost half on that same$250,000 house.
• 5:51
  SPEAKER_04: That means if they were, if the bank was looking at the debt to income ratio and looking at the monthly payment versus your income, then they're like, oh, well, you've got room.
• 6:00
  SPEAKER_04: Your mortgage payment could be this, which means you could buy a bigger house or not bigger, more expensive house because you have more room on your monthly expenditure.
• 6:09
  SPEAKER_07: Okay, okay.
• 6:10
  SPEAKER_07: That actually makes a lot of sense.
• 6:12
  SPEAKER_08: So you want to do your budget.
• 6:13
  SPEAKER_08: You want to know what your budget is at all times because this is why people are right now, because the interest rate is higher, instead of looking at that$300,000 house, they may be looking at a$250,000 house or a$200,000 house.
• 6:30
  SPEAKER_08: Okay.
• 6:31
  SPEAKER_08: I mean I'm getting it because then I I get it all, get it all.
• 6:34
  SPEAKER_08: They're they're also looking at, okay, I want to buy the house that has nothing for me to do.
• 6:40
  SPEAKER_08: I want to walk in, right, put my shoes, you know, at the door and go sit on the couch.
• 6:45
  SPEAKER_08: Correct.
• 6:45
  SPEAKER_08: Okay.
• 6:45
  SPEAKER_08: Now they're going, I'll do some work.
• 6:48
  SPEAKER_08: I'll I'll be willing to do some work because I can get this at a lower dollar.
• 6:53
  SPEAKER_08: Okay.
• 6:54
  SPEAKER_08: So we're, you know, instead of buying the house that they thought that they wanted, now they're deciding to do something different, which is okay.
• 7:02
  SPEAKER_07: It is okay.
• 7:04
  SPEAKER_07: You know what?
• 7:04
  SPEAKER_07: You have to adapt.
• 7:05
  SPEAKER_07: You you really do, and that's what they're doing in in real estate.
• 7:08
  SPEAKER_07: But I have a question, and this is probably so stupid.
• 7:11
  SPEAKER_07: But like, why did the interest rates go up so much?
• 7:14
  SPEAKER_07: Why'd they jump so much in such a short amount of time?
• 7:16
  SPEAKER_07: Is that is that a dumb question?
• 7:17
  SPEAKER_07: No.
• 7:18
  SPEAKER_04: They're set by Well, by Ida, right, which is a federal institution.
• 7:24
  SPEAKER_08: Yes.
• 7:24
  SPEAKER_07: But how do they just say, hey, we're just gonna we just feel like marking it up this year?
• 7:28
  SPEAKER_07: No, because you're national.
• 7:29
  SPEAKER_03: That's why huge formula.
• 7:31
  SPEAKER_03: Yes, that they used to be.
• 7:35
  SPEAKER_03: But my pay grade too.
• 7:36
  SPEAKER_08: Oh, yeah.
• 7:37
  SPEAKER_08: When when we have Brooke in here in the next couple of weeks, we'll talk to her about that and how that all works because she's in that banking field, right?
• 7:45
  SPEAKER_08: And she understands why they go up.
• 7:48
  SPEAKER_08: When she's in mortgage line, I'll sit here all day long and go, This is the dumbest thing.
• 7:52
  SPEAKER_08: It was just at two, I liked two.
• 7:54
  SPEAKER_08: Yeah.
• 7:55
  SPEAKER_08: I really like two.
• 7:56
  SPEAKER_08: But the other thing is at two percent, you think about these numbers that we just looked at on here.
• 8:01
  SPEAKER_08: Now, you know, the banks are making$348,000 in interest.
• 8:05
  SPEAKER_08: Yep.
• 8:05
  SPEAKER_08: Okay.
• 8:06
  SPEAKER_08: Now you can they can pay more interest on your money that you are saving.
• 8:10
  SPEAKER_08: Right.
• 8:10
  SPEAKER_08: They can't there's okay.
• 8:12
  SPEAKER_08: There's a good part to it.
• 8:14
  SPEAKER_04: There is there is if you have money to save.
• 8:16
  SPEAKER_04: Yeah, you have money to save.
• 8:19
  SPEAKER_04: But yeah, which I don't.
• 8:20
  SPEAKER_04: But I think that's when your CD rates go up, your interest rates on your savings accounts go up, your you know, sometimes stock market interest rates will go up, your rates will go up because of the economy is coming up.
• 8:31
  SPEAKER_08: So in one area, yes, the interest rates for buying homes went down, but also the interest rates on even buying cars was zero percent.
• 8:41
  SPEAKER_08: Okay, how are the banks making money if there's not any interest being made?
• 8:47
  SPEAKER_08: Right.
• 8:48
  SPEAKER_08: Right.
• 8:48
  SPEAKER_08: And I get that.
• 8:49
  SPEAKER_08: I get that.
• 8:49
  SPEAKER_08: So how can they pay us interest on these CDs and all of that?
• 8:53
  SPEAKER_08: So those are questions we will hold back for.
• 8:56
  SPEAKER_07: But what do you think the most perfect percentage of interest is for real estate?
• 9:00
  SPEAKER_09: Sorry.
• 9:01
  SPEAKER_09: Sorry.
• 9:01
  SPEAKER_07: Yeah, that'll never happen.
• 9:03
  SPEAKER_08: But like and you're you I mean, here you are at the four to five percent.
• 9:08
  SPEAKER_08: Yeah, is that more comfortable?
• 9:10
  SPEAKER_08: It is.
• 9:10
  SPEAKER_08: You know, what does everyone you know, probably people have my picture up and they're stabbing it because they're like, I want two, you know.
• 9:16
  SPEAKER_08: I I want two percent.
• 9:17
  SPEAKER_08: We don't want to hear that.
• 9:18
  SPEAKER_08: Throw a darts.
• 9:19
  SPEAKER_08: She said four.
• 9:20
  SPEAKER_08: I want two.
• 9:22
  SPEAKER_08: So, you know, this is my personal opinion.
• 9:24
  SPEAKER_08: Do I think we'll ever see two again?
• 9:27
  SPEAKER_08: I don't.
• 9:27
  SPEAKER_07: Do you think three?
• 9:28
  SPEAKER_08: I don't.
• 9:29
  SPEAKER_08: I not with everything that's going on.
• 9:31
  SPEAKER_04: So here's the thing, too.
• 9:32
  SPEAKER_04: You can watch gas prices, yeah.
• 9:34
  SPEAKER_04: As well as interest rates.
• 9:35
  SPEAKER_07: Are they kind of doing that?
• 9:36
  SPEAKER_04: Right now they're kind of high, right?
• 9:38
  SPEAKER_08: Do they do they use every no, it's what goes in to make them happen.
• 9:42
  SPEAKER_08: It's what's going on in the world.
• 9:44
  SPEAKER_08: Yeah.
• 9:44
  SPEAKER_08: And they, they, they.
• 9:46
  SPEAKER_08: I know.
• 9:47
  SPEAKER_08: Who are they?
• 9:48
  SPEAKER_08: Who are they?
• 9:48
  SPEAKER_08: Yeah.
• 9:49
  SPEAKER_08: They are way above our pay grade.
• 9:52
  SPEAKER_08: Yeah.
• 9:52
  SPEAKER_08: I love you.
• 9:53
  SPEAKER_08: But they make it.
• 9:53
  SPEAKER_08: But we're smarter than they are.
• 9:55
  SPEAKER_08: But I would love for them to call me and talk to me a little bit about it.
• 9:58
  SPEAKER_04: Yeah.
• 9:59
  SPEAKER_04: It's it's like right now, everything that's going on in Iran, right?
• 10:02
  SPEAKER_07: 217-825-3999.
• 10:04
  SPEAKER_07: Call Lisa to talk to her about it.
• 10:06
  SPEAKER_04: That's right.
• 10:06
  SPEAKER_04: Everything that's going on in the war right now is the conflict, excuse me, is causing fuel issues, right?
• 10:12
  SPEAKER_04: Also cause trade issues and stuff like that.
• 10:14
  SPEAKER_04: When trade slows down, then the feds look at the economy, right?
• 10:18
  SPEAKER_04: Has the economy slowed?
• 10:19
  SPEAKER_04: Do we need to raise interest rates?
• 10:21
  SPEAKER_04: Is the economy good and healthy?
• 10:23
  SPEAKER_04: We need if it's bad shape, they'll lower those interest rates so that people like COVID.
• 10:28
  SPEAKER_04: So people start moving money again.
• 10:30
  SPEAKER_04: Yeah.
• 10:31
  SPEAKER_04: And that's a problem.
• 10:31
  SPEAKER_04: When interest rates go up, people hold on to their money.
• 10:34
  SPEAKER_04: Right?
• 10:35
  SPEAKER_04: Am I right, yeah?
• 10:36
  SPEAKER_04: And when interest rates go down, people are like, ooh, I can borrow money cheap now.
• 10:40
  SPEAKER_08: Yes.
• 10:40
  SPEAKER_08: That's now I can get what I wanted or what I dreamed for, and I don't have to pay so much for it.
• 10:46
  SPEAKER_08: But when you look at these numbers and you're paying for two homes instead of just one, where do you get money to remodel?
• 10:53
  SPEAKER_04: Where do you get Vacation money?
• 10:56
  SPEAKER_04: I I I'll give you an example, right?
• 10:58
  SPEAKER_04: I I took out my mortgage in 2009 on my my property.
• 11:02
  SPEAKER_06: Right.
• 11:02
  SPEAKER_04: I think it was$240,000, maybe, right?
• 11:06
  SPEAKER_04: 4.875% interest.
• 11:08
  SPEAKER_04: Right.
• 11:09
  SPEAKER_04: But with escrow, my taxes and home insurance in there, which is kind of we'll skew this number, but over the past 15 years, I've paid over$324,000.
• 11:20
  SPEAKER_08: Yeah.
• 11:21
  SPEAKER_08: Well, and and and let's go back to this number here.
• 11:24
  SPEAKER_04: But I pay down more on my own.
• 11:26
  SPEAKER_07: I was just gonna say I was gonna bring that up earlier when you were talking.
• 11:29
  SPEAKER_04: My loan's not gonna be 30.
• 11:30
  SPEAKER_04: It'll be cut down closer to 20.
• 11:32
  SPEAKER_07: Because you're gonna pay.
• 11:34
  SPEAKER_07: Yes.
• 11:35
  SPEAKER_04: Yeah, one one year.
• 11:36
  SPEAKER_07: One month a year.
• 11:37
  SPEAKER_04: If you if you uh pay equivalent of one extra full mortgage payment a year on your principal, you can cut your mortgage down by five to ten years depending on your loan.
• 11:45
  SPEAKER_07: That's what I thought.
• 11:46
  SPEAKER_07: I thought it was seven.
• 11:47
  SPEAKER_08: So uh so when we go back to these numbers, so wild to me.
• 11:50
  SPEAKER_08: So sixteen hundred and sixty-three, that's just your mortgage payment and interest.
• 11:56
  SPEAKER_08: Then, then now we gotta look at this number and we go, okay, the taxes are four grand.
• 12:02
  SPEAKER_08: Yep.
• 12:02
  SPEAKER_08: That's three hundred and thirty-three dollars a month extra.
• 12:07
  SPEAKER_08: Yep.
• 12:07
  SPEAKER_08: So now we're at almost two grand.
• 12:10
  SPEAKER_08: And then we what about the homeowners insurance?
• 12:13
  SPEAKER_04: Which is doing owners insurance.
• 12:14
  SPEAKER_04: Which is going up.
• 12:16
  SPEAKER_08: 2250.
• 12:18
  SPEAKER_07: So now you're at 225 for your see, people don't think about that.
• 12:23
  SPEAKER_07: That's why I'm glad you're doing this because I mean, I never was really we never were taught finances in school or anything like this.
• 12:29
  SPEAKER_07: Were you guys?
• 12:30
  SPEAKER_07: They probably were.
• 12:31
  SPEAKER_07: That's what I'm saying.
• 12:32
  SPEAKER_07: Why did this that day?
• 12:33
  SPEAKER_07: No, I'm kidding.
• 12:33
  SPEAKER_07: No, I'm really serious.
• 12:34
  SPEAKER_04: They took it out.
• 12:35
  SPEAKER_04: There was a section where they started taking out vocational trade training, and and it was all just but do you see how it's affected?
• 12:42
  SPEAKER_07: And even think of the kids now.
• 12:44
  SPEAKER_04: Why do you why is this podcast so important then?
• 12:46
  SPEAKER_08: Yeah, it is important because people, because what I said at the very beginning, they want to know what's my bottom dollar.
• 12:53
  SPEAKER_03: Right.
• 12:54
  SPEAKER_08: Can I can I do this right now?
• 12:56
  SPEAKER_08: And I want to know, are you stable in your job?
• 12:59
  SPEAKER_08: Can you afford this payment in case your wife or husband cannot work anymore?
• 13:05
  SPEAKER_03: Right.
• 13:06
  SPEAKER_08: You know, any of those things, can you can't run this?
• 13:09
  SPEAKER_08: I can't go get ice cream for the kids this week because I have a mortgage payment.
• 13:12
  SPEAKER_08: That's a killer.
• 13:13
  SPEAKER_08: You don't want to live that life.
• 13:15
  SPEAKER_04: Or I can't put food on the table this week, not just ice cream.
• 13:18
  SPEAKER_08: I can't get gas in my car to go to work.
• 13:20
  SPEAKER_08: Well, yeah, because that's because gas is so high.
• 13:22
  SPEAKER_08: Yeah, fill up your tank for 75 bucks or 100 bucks.
• 13:25
  SPEAKER_04: One of our trucks is$250 to fill it up.
• 13:27
  SPEAKER_08: There you go.
• 13:28
  SPEAKER_08: She just spit all over the microphone.
• 13:30
  SPEAKER_04: It's an F350, it's got a 42-gallon tank.
• 13:33
  SPEAKER_08: So you guys drive all over.
• 13:34
  SPEAKER_08: Oh, yeah.
• 13:35
  SPEAKER_08: And you drive all over.
• 13:36
  SPEAKER_08: So all of these numbers mean something.
• 13:39
  SPEAKER_08: Oh, yeah.
• 13:39
  SPEAKER_08: And when the buyer starts to say, Whoa, or the seller says, Whoa, I'm not gonna sell right now because of the interest rates, because I don't think I can make what I want to make.
• 13:49
  SPEAKER_08: The buyer says, Whoa, I'm not gonna buy right now because I'm gonna wait to see if these interest rates come down.
• 13:56
  SPEAKER_08: And that is what affects the real estate market.
• 13:59
  SPEAKER_08: That's when things start just a screeching halt.
• 14:03
  SPEAKER_08: Yeah.
• 14:04
  SPEAKER_08: Yeah.
• 14:04
  SPEAKER_08: It slows down.
• 14:06
  SPEAKER_04: So what's our current rate right now?
• 14:08
  SPEAKER_08: 7.2.
• 14:10
  SPEAKER_04: Yep.
• 14:10
  SPEAKER_04: As of October 1.
• 14:11
  SPEAKER_04: Yes.
• 14:12
  SPEAKER_04: Right.
• 14:12
  SPEAKER_08: And but, and Brooke just sent me, if you're getting any kind of assistance, the down payment assistance, and there's three different categories there to get into that, it's eight point seven holy point two.
• 14:28
  SPEAKER_04: And here's why.
• 14:29
  SPEAKER_08: Because you're they gotta get paid back.
• 14:32
  SPEAKER_04: And they're a higher risk.
• 14:33
  SPEAKER_08: Well, and they're giving you 10 grand for your down payment.
• 14:36
  SPEAKER_08: Yeah.
• 14:36
  SPEAKER_08: And they're saying there's forgivable.
• 14:38
  SPEAKER_04: Yes.
• 14:39
  SPEAKER_08: Well, is it forgivable if you've charged me this much for my interest?
• 14:42
  SPEAKER_04: Because now you've got to get tenfold back on the back end.
• 14:44
  SPEAKER_04: All right.
• 14:44
  SPEAKER_04: Actually on the front end.
• 14:45
  SPEAKER_08: Yeah.
• 14:46
  SPEAKER_08: Yeah, because all that is paid front end.
• 14:49
  SPEAKER_08: Compounded daily.
• 14:50
  SPEAKER_08: So when you pay that extra payment each month or pay an extra$50, whatever it is, that so much goes to the principal, so much goes to interest.
• 15:00
  SPEAKER_08: They look at that principal and it's compounded daily on that number.
• 15:04
  SPEAKER_08: We want that principal number going down every month because then they're looking at that.
• 15:10
  SPEAKER_04: And and not to set sidebar too much, but to kind of break it down for Caitlin and all the other listeners, your first mortgage payment you pay, you got your 30-year mortgage, right?
• 15:19
  SPEAKER_04: All set up, your$1,600.
• 15:21
  SPEAKER_04: Oh man, yeah, look, I'm paying$1,600 every month on that$250K.
• 15:26
  SPEAKER_04: No, in the first, it's an it's an amortized schedule, amortization, right?
• 15:32
  SPEAKER_04: And so your first one, you out of$1,600, you may, may have$100 go to principal.
• 15:37
  unknown: Yeah.
• 15:38
  SPEAKER_08: $1,500 interest.
• 15:39
  SPEAKER_08: Yeah.
• 15:40
  SPEAKER_04: Because it's interest for the bank wants their money.
• 15:43
  SPEAKER_04: So the bank is getting the bigger.
• 15:44
  SPEAKER_07: The bigger number goes.
• 15:46
  SPEAKER_07: Yes, they just loaned you out a ton of money.
• 15:48
  SPEAKER_07: So they want to get it.
• 15:49
  SPEAKER_04: So theoretically, on a full 30-year, if you're just paying the bare minimum payment every month at 15 years, boom, you start paying more principal and less interest as you get on the back end of that loan.
• 16:01
  SPEAKER_07: Yes, I understand that.
• 16:02
  SPEAKER_04: The bank gets their money up front because now they're protected and they've got their money they made off of it.
• 16:06
  SPEAKER_07: And you know what?
• 16:06
  SPEAKER_07: I guarantee that they list that when they say that's correct, right?
• 16:10
  SPEAKER_07: Yep.
• 16:10
  SPEAKER_07: But I never check that.
• 16:11
  SPEAKER_07: You know what I mean?
• 16:12
  SPEAKER_07: That's so crazy.
• 16:13
  SPEAKER_08: When you bought your house and you sat down with your lender, they gave you that schedule.
• 16:17
  SPEAKER_08: And I vaguely remember that.
• 16:19
  SPEAKER_08: Vaguely.
• 16:20
  SPEAKER_08: Well, they don't really want you to look at it, look at it, and you get real sick.
• 16:23
  SPEAKER_04: You just want to throw up in your mouth.
• 16:25
  SPEAKER_08: Yeah, these young kids today, I'm like, you know, when you get your house made off, I'm gonna be dead.
• 16:29
  SPEAKER_08: Please.
• 16:30
  SPEAKER_04: Yeah.
• 16:31
  SPEAKER_04: Yeah, it's true.
• 16:32
  SPEAKER_08: So that's why it is.
• 16:33
  SPEAKER_08: That's why it's important.
• 16:35
  SPEAKER_04: That's why it's important to pay extra if you can.
• 16:38
  SPEAKER_08: I know.
• 16:38
  SPEAKER_08: Pay extra.
• 16:39
  SPEAKER_04: Because again, it knocks that it because the interest compounded daily, it's based on the what the balance of the principal is daily.
• 16:47
  SPEAKER_04: So you knock that principal down, the interest being is the interest being taken from your payment.
• 16:54
  SPEAKER_04: The interest that is being charged is multiplied against a smaller amount of tax.
• 16:58
  SPEAKER_04: Yes.
• 17:00
  SPEAKER_07: So then you're you're really paying more of your house back instead of paying the bank.
• 17:04
  SPEAKER_07: Yes.
• 17:04
  SPEAKER_07: Yes.
• 17:05
  SPEAKER_04: They don't like it, but they can't stop it.
• 17:06
  SPEAKER_07: No, they can't.
• 17:07
  SPEAKER_04: As long as you make sure you put him paying more on principal.
• 17:10
  SPEAKER_04: You collect principal.
• 17:12
  SPEAKER_08: You're actually paying the the amount they've asked for.
• 17:14
  SPEAKER_08: You're doing that.
• 17:15
  SPEAKER_08: Yeah.
• 17:16
  SPEAKER_08: You want to get that principal numbered down because that is in your favor and not the bank's favor.
• 17:22
  SPEAKER_08: Not that I'm against banks because we all need them.
• 17:24
  SPEAKER_08: But we're just trying to help people.
• 17:26
  SPEAKER_08: We're trying to help people.
• 17:28
  SPEAKER_08: Moms and dads, teach your kids how to budget money, how to save for that car, how to save for that house that they will one day, unless you're gonna let them live in your basement.
• 17:41
  SPEAKER_08: Right.
• 17:41
  SPEAKER_08: But they're going to know how to budget monthly.
• 17:44
  SPEAKER_08: How to budget monthly.
• 17:44
  SPEAKER_08: Yearly, five yearly.
• 17:46
  SPEAKER_08: Yes.
• 17:47
  SPEAKER_08: You don't want to be trying to catch yourself all the time.
• 17:50
  SPEAKER_08: It's not fun.
• 17:51
  SPEAKER_04: Even if it's an extra 10 bucks a month, just pay it.
• 17:54
  SPEAKER_08: 20.
• 17:54
  SPEAKER_08: Right.
• 17:55
  SPEAKER_08: Or 20.
• 17:56
  SPEAKER_04: Literally, just something to it, and you get in that habit.
• 17:59
  SPEAKER_04: There's a trickle down.
• 18:00
  SPEAKER_04: And and we want to talk about interest rates, but we're also here to help buyers, right?
• 18:03
  SPEAKER_04: And budgeting and all that.
• 18:05
  SPEAKER_04: So there's there's a a trickle down process that you can do.
• 18:09
  SPEAKER_04: If you take all your bills, right, and you look at what the monthly payments are in each of those.
• 18:13
  SPEAKER_04: Okay.
• 18:14
  SPEAKER_04: And then you can say, okay, this payment is$50 a month, but its balance is only$1,200.
• 18:20
  SPEAKER_04: So if and if you have an extra$50 a month in your budget, apply it to that, pay that down fast, quicker.
• 18:27
  SPEAKER_04: Then take that hundred and apply it to the next bill.
• 18:30
  SPEAKER_04: Yes extra.
• 18:31
  SPEAKER_05: Yes.
• 18:31
  SPEAKER_04: Pay it down.
• 18:32
  SPEAKER_04: Now you're going to be able to do it.
• 18:32
  SPEAKER_04: Pay your smaller ones off first.
• 18:34
  SPEAKER_04: And apply it to your next payment.
• 18:36
  SPEAKER_04: Yes.
• 18:36
  SPEAKER_04: And what happens is your monthly payment that you're paying on each one increases by what you're normally paying out because you've already got it budgeted.
• 18:44
  SPEAKER_04: And it's a way to get yourself out of debt.
• 18:46
  SPEAKER_08: The wrong mindset is to say, oh, I got that paid off.
• 18:49
  SPEAKER_08: I have an extra 50 bucks.
• 18:50
  SPEAKER_08: And go see that.
• 18:51
  SPEAKER_08: No, you don't.
• 18:52
  SPEAKER_08: No.
• 18:52
  SPEAKER_08: Put that on the next bill.
• 18:54
  SPEAKER_07: See, and that's so so and I take that, Dave Ramsey.
• 18:57
  SPEAKER_04: Oh, sorry.
• 18:57
  SPEAKER_07: Yeah, no, I I don't like Dave Ramsey.
• 18:59
  SPEAKER_07: I'm sorry.
• 19:00
  SPEAKER_07: I think he's made it.
• 19:01
  SPEAKER_04: It's Caitlin Borgini, Carlos, Illinois.
• 19:03
  SPEAKER_07: Okay, so let me ask you this.
• 19:04
  SPEAKER_07: I have always thought, oh, I'll pay the biggest one off first.
• 19:07
  SPEAKER_07: So then I don't and then I get it screwed over.
• 19:10
  SPEAKER_07: It's the trickle down.
• 19:11
  SPEAKER_08: So you want to start small and go to your biggest.
• 19:13
  SPEAKER_07: So hold on a second.
• 19:14
  SPEAKER_07: Let me just ask you guys a question because I know I am not the only one sitting here like this.
• 19:21
  SPEAKER_08: And you gotta believe that Dave Ramsey or any of these financial people that are out there, it's always gonna sound mean what they are saying to do because I guess you're right.
• 19:30
  SPEAKER_07: When you I have secrets, you have secret credit secrets.
• 19:34
  SPEAKER_07: But I have learned a lot, like I never knew.
• 19:36
  SPEAKER_07: Okay, so if I have these payments,$57,$62,$73,$143, I'm gonna pay the$57.
• 19:43
  SPEAKER_04: If you do you have okay, so here's the whole principle of it.
• 19:46
  SPEAKER_04: If you have, you know your payment numbers and you go, okay, I make this much money and here's how much my expenses are.
• 19:52
  SPEAKER_04: I have an extra$100.
• 19:54
  SPEAKER_04: Foods, take them out.
• 19:57
  SPEAKER_04: Extra hundred dollars and you put it on that$57 payment.
• 19:59
  SPEAKER_04: So now you have a hundred and fifty-seven dollar payment.
• 20:02
  SPEAKER_04: Now you're paying that small loan off or debt off first.
• 20:06
  SPEAKER_04: Now you're taking that$157 and putting it on the next payment of 70 something.
• 20:10
  SPEAKER_04: Now you're paying$225 a month on that next bill.
• 20:14
  SPEAKER_07: Oh, she just hey, but then that makes me feel better because that simplifies it.
• 20:20
  SPEAKER_07: So then I feel like I'm not spending the money.
• 20:22
  SPEAKER_07: That really simplified it for me.
• 20:24
  SPEAKER_08: Well, and you're thinking, I got that one done.
• 20:27
  SPEAKER_08: Now I can start on this one.
• 20:28
  SPEAKER_08: And it's a goal.
• 20:29
  SPEAKER_08: It's a goal when you get excited about because see.
• 20:33
  SPEAKER_04: What happens, Caitlin?
• 20:34
  SPEAKER_07: I can do this one when I leave there.
• 20:36
  SPEAKER_07: I just checked.
• 20:36
  SPEAKER_07: It's my in my firm account.
• 20:38
  SPEAKER_04: Caitlin, they get paid off faster.
• 20:40
  SPEAKER_04: Yes because you're putting extra money down.
• 20:42
  SPEAKER_04: Quadruple.
• 20:43
  SPEAKER_04: And then when you get to the big one, you've got a bigger amount to put with what you're normally paying on that.
• 20:47
  SPEAKER_04: And guess what else is helping?
• 20:49
  SPEAKER_08: Bam, bam.
• 20:49
  SPEAKER_08: You're quite paying as much interest on that little payment.
• 20:53
  SPEAKER_07: I know.
• 20:53
  SPEAKER_07: Because you're getting it done.
• 20:54
  SPEAKER_04: Because you're knocking the principal down.
• 20:57
  SPEAKER_07: Dude, this is I'm really excited to get this.
• 20:59
  SPEAKER_07: This is the segment by here to listen to.
• 21:03
  SPEAKER_07: Drop it straight.
• 21:04
  SPEAKER_07: So back to interest rates.
• 21:06
  SPEAKER_08: They need to know.
• 21:07
  SPEAKER_08: Go ahead.
• 21:07
  SPEAKER_08: Yeah.
• 21:08
  SPEAKER_08: Well, buyers aren't gone in this real estate market.
• 21:11
  SPEAKER_08: They're not gone.
• 21:12
  SPEAKER_08: They're not hiding.
• 21:14
  SPEAKER_08: They're watching.
• 21:15
  SPEAKER_08: Okay.
• 21:16
  SPEAKER_08: They're watching.
• 21:17
  SPEAKER_08: Yeah, they're watching because we're always going to have buyers.
• 21:20
  SPEAKER_04: So buyers shouldn't stop looking.
• 21:21
  SPEAKER_08: No.
• 21:22
  SPEAKER_08: Well, they're not going to because everybody's not everybody's getting married, but there's a lot of people getting married.
• 21:27
  SPEAKER_08: There's a lot of people getting a divorce.
• 21:28
  SPEAKER_08: Right.
• 21:28
  SPEAKER_08: There's a lot of people having babies, more kids.
• 21:31
  SPEAKER_08: Their family's growing.
• 21:32
  SPEAKER_08: They need a smaller house.
• 21:33
  SPEAKER_08: They need a bigger house.
• 21:35
  SPEAKER_08: They retire.
• 21:36
  SPEAKER_08: They inherit a home.
• 21:37
  SPEAKER_08: They don't know what to do with it.
• 21:38
  SPEAKER_08: They want to get away.
• 21:38
  SPEAKER_08: The inheriting, yeah.
• 21:39
  SPEAKER_08: So that's sellers and buyers.
• 21:41
  SPEAKER_08: They're not going away.
• 21:43
  SPEAKER_08: Whatever the national headlines say that makes everybody freak out.
• 21:48
  SPEAKER_08: Freak out.
• 21:49
  SPEAKER_08: Just for no reason.
• 21:50
  SPEAKER_08: Know what's happening in your local market.
• 21:54
  SPEAKER_08: Because it's all different.
• 21:56
  SPEAKER_08: It's all different.
• 21:57
  SPEAKER_08: So we need to make sure that.
• 22:00
  SPEAKER_08: Buyers, when they go out and look at homes, and we've said it over and over, sellers need to make sure their price, their condition, and their preparation for these buyers to look at their homes is pristine.
• 22:14
  SPEAKER_08: They need to know.
• 22:15
  SPEAKER_07: Right.
• 22:16
  SPEAKER_07: So and that does put it into perspective.
• 22:18
  SPEAKER_07: You know, the sellers can't just be like, oh, whatever.
• 22:20
  SPEAKER_07: Like these people are spending a lot of money, and obviously the sellers are probably buying a home too, right?
• 22:26
  SPEAKER_07: It could be another one.
• 22:27
  SPEAKER_07: Yeah.
• 22:28
  SPEAKER_07: But I mean, I think it should be pristine.
• 22:29
  SPEAKER_07: It or else you have yeah.
• 22:31
  SPEAKER_08: But with all the stuff they have to with the interest rates on top of the the Well, back when interest rates were lower and people were buying houses like crazy, it seemed like the urgency was there.
• 22:41
  SPEAKER_08: Right, right, right.
• 22:42
  SPEAKER_08: I gotta get this house, I gotta get this house, I gotta go go go.
• 22:46
  SPEAKER_08: Oh my gosh.
• 22:46
  SPEAKER_08: Now the urgency is not there.
• 22:48
  SPEAKER_08: They can take their time, which I like.
• 22:50
  SPEAKER_04: Yes.
• 22:51
  SPEAKER_08: I don't I do because I don't like I don't like to walk in a house and and tell somebody, hey, I just want you to know there's already five offers on this house.
• 22:59
  SPEAKER_08: Well then their heart starts pounding because the wife really loves this kitchen and she loves this.
• 23:04
  SPEAKER_08: I'm so glad you don't tell them that Lisa that's not.
• 23:06
  SPEAKER_08: Well, no, I have to tell them if it is there.
• 23:09
  SPEAKER_08: Yeah, but right at the beginning.
• 23:11
  SPEAKER_08: So but I don't want to tell them when we're in a market like this, because I don't have to, because we don't have that going on right now.
• 23:19
  SPEAKER_04: Right.
• 23:19
  SPEAKER_08: Yeah.
• 23:20
  SPEAKER_04: So speaking of going on right now, let's talk about inventory.
• 23:23
  SPEAKER_04: Okay.
• 23:24
  SPEAKER_04: So as far as inventory, what's what's going on nationally and what's going on locally with inventory.
• 23:29
  SPEAKER_04: And when we're talking about inventory, definition inventory is Caitlin.
• 23:33
  SPEAKER_08: Uh what houses Lisa has listed.
• 23:35
  SPEAKER_08: How many houses are just out there to sell?
• 23:37
  SPEAKER_03: Correct.
• 23:38
  SPEAKER_03: Oh, so nationally houses available for sale.
• 23:40
  SPEAKER_08: The national market says that is all up 4.9%.
• 23:45
  SPEAKER_08: Okay.
• 23:45
  SPEAKER_08: Locally, I cannot say that there is that much of a percentage out there.
• 23:51
  SPEAKER_08: Because it's it's we're in smaller towns.
• 23:53
  SPEAKER_08: Are you feeling it?
• 23:53
  SPEAKER_08: Yeah, I'm feeling it kind of decreased decrease a little bit.
• 23:57
  SPEAKER_08: And there's a reason.
• 23:58
  SPEAKER_08: We just talked about that.
• 23:59
  SPEAKER_08: All of the the interest rates that that are out there.
• 24:02
  SPEAKER_08: So sellers need to pay attention to those three things again: the price, the condition, and the preparation.
• 24:10
  SPEAKER_08: I'm gonna keep saying that throughout this segment because buyers cannot just go out and put a sign in their yard, whether it's a for sale by owner or or a realtor sign, and think I've lived here for 20 years, it's good enough for me, it'll be good enough for them, but they want the highest dollar.
• 24:26
  SPEAKER_08: Okay, that's not gonna happen.
• 24:27
  SPEAKER_08: That's unrealistic.
• 24:29
  SPEAKER_08: Because what are these buyers coming in with?
• 24:32
  SPEAKER_08: Higher expectations.
• 24:33
  SPEAKER_07: Yep.
• 24:34
  SPEAKER_07: Because of the money.
• 24:35
  SPEAKER_08: Because of the money.
• 24:36
  SPEAKER_08: They're looking at that because they're not just looking at the house, they're looking at the house in a way as is this worthy of the dollar.
• 24:44
  SPEAKER_08: Is this worth it?
• 24:45
  SPEAKER_08: Yep.
• 24:46
  SPEAKER_07: Well, is this worthy?
• 24:47
  SPEAKER_04: And something to something to think about and to bring to light here is the younger buyers, right?
• 24:52
  SPEAKER_04: They are just worried about that payment.
• 24:53
  SPEAKER_04: Can they afford the payment?
• 24:54
  SPEAKER_04: They're not worried about the 30-year payback, right?
• 24:57
  SPEAKER_09: Yeah.
• 24:57
  SPEAKER_04: And so, which correct me if I'm wrong, Lisa, at some point they could be right if that 30-year home that they just mortgage they just got is not their forever home.
• 25:08
  SPEAKER_04: If it's their five to ten year, they're gonna be paying a lot of interest, but yet real estate usually tends to tick up.
• 25:16
  SPEAKER_04: So the value automatically in their home should should be going up if they maintain it.
• 25:21
  SPEAKER_04: So meaning that they're just worried about that payment, that monthly payment.
• 25:24
  SPEAKER_04: I can make that monthly payment, I'm worried about the 300, some odd thousand, I'm gonna pay extra in interest for this$250,000 home.
• 25:31
  SPEAKER_04: So there's a lot of things in that have to go into that.
• 25:34
  SPEAKER_04: But the not media, but there are some bank medias.
• 25:37
  SPEAKER_04: It's like, hey, get this$300,000 home for$1,500 a month.
• 25:41
  SPEAKER_08: Oh yeah.
• 25:42
  SPEAKER_08: They're throwing that out there.
• 25:43
  SPEAKER_04: 8% interest, you know, or whatever that is.
• 25:47
  SPEAKER_04: And so that's that's why I'm saying that it's an education, and I know you as the face on houses, you educate your clients about that.
• 25:56
  SPEAKER_07: You really do, Lisa, because I did not know any of how this was, I guess, specifically separated and how it was specifically together.
• 26:04
  SPEAKER_07: You know what I mean?
• 26:05
  SPEAKER_07: So I really like that.
• 26:08
  SPEAKER_07: Yeah, I was.
• 26:09
  SPEAKER_07: I was.
• 26:10
  SPEAKER_07: I'm just like, hey man, I don't care.
• 26:11
  SPEAKER_04: When I first bought mine, I didn't I didn't care.
• 26:13
  SPEAKER_08: Well, everybody, yeah, everybody, when they first start out, and I remember doing this too.
• 26:18
  SPEAKER_08: What's my bottom dollar?
• 26:19
  SPEAKER_08: I just need to know do I make enough money to do what I want and pay this?
• 26:23
  SPEAKER_08: Yeah, okay, that's all I care about.
• 26:25
  SPEAKER_08: Now there's more to it.
• 26:27
  SPEAKER_04: And the banks are happy about that.
• 26:28
  SPEAKER_08: And yeah, as long as you make your payments, they're very happy.
• 26:30
  SPEAKER_08: They're happy.
• 26:31
  SPEAKER_08: They're not happy when you can't make that payment.
• 26:33
  SPEAKER_08: No, they're not.
• 26:34
  SPEAKER_04: So on the flip, on the flip side of this, just from a real estate standpoint and from an inventory standpoint, we still have people that are liquid.
• 26:44
  unknown: Yeah.
• 26:44
  unknown: Yeah.
• 26:45
  SPEAKER_04: Which means they don't need a loan.
• 26:47
  SPEAKER_04: And so interest rates won't affect them by borrowing money.
• 26:50
  SPEAKER_04: Nope.
• 26:51
  SPEAKER_04: But it may affect the market of what's available because some sellers, again, maybe sitting on them, or buyers may be a little more hesitant.
• 26:58
  SPEAKER_04: Well, is that true?
• 26:59
  SPEAKER_08: Yes, because here you go, you got this guy that comes in and he's got cash and he wants to buy this house, but then he says, I don't know how long I'm going to be here, and I got to make sure whatever I give to on this house is going to get back to me five years down the road or three years down the road.
• 27:14
  SPEAKER_08: So they're not just throwing money and going, I have this money over here, and so I don't have to deal with a bank or with appraisals.
• 27:21
  SPEAKER_08: Well, they may want an appraisal.
• 27:23
  SPEAKER_08: They may want an appraisal on that house to make sure that they're giving worthy of that house.
• 27:28
  SPEAKER_08: I would.
• 27:28
  SPEAKER_08: And I would say even if you're giving cash, I'm going to say, let's make sure inspections, appraisals, the whole thing.
• 27:37
  SPEAKER_04: Right.
• 27:38
  SPEAKER_04: Yep.
• 27:38
  SPEAKER_04: Yes.
• 27:39
  SPEAKER_04: No, I I agree with that.
• 27:40
  SPEAKER_04: I agree with that.
• 27:41
  SPEAKER_08: Yes.
• 27:42
  SPEAKER_04: So, and and we know that our market in Carlinville isn't like a market in Chicago.
• 27:46
  SPEAKER_08: No, Carlinville isn't Chicago and and McCupin County isn't St.
• 27:50
  SPEAKER_08: Louis, and the prices can change and it can, you gotta stay local.
• 27:56
  SPEAKER_08: You know, if if you're going to buy in Carlinville, then you're going to look in this area.
• 28:02
  SPEAKER_04: Unless you're having to relocate because of job or school or whatever.
• 28:05
  SPEAKER_08: But then you better have a real estate agent that's looking in that area to make sure you're not overpaying.
• 28:10
  SPEAKER_04: I bet the pros at First Choice Really Pros can even make connections for people in other states or other areas and say, hey, I've got a great local client that is needing a home in the area.
• 28:20
  SPEAKER_08: I will vet those real estate agents for you so that you know that you're getting someone because and because I've done it and I've said she's very important to me, and I want to make sure that I'm giving her over to someone that is going to love on these people.
• 28:35
  SPEAKER_08: And they were like, gotcha, Lisa, and stayed in contact with me throughout the whole thing so that I'll so you can just have your peace of mind and everything else.
• 28:42
  SPEAKER_04: And that's why you need to call Lisa at 217-825-3999 to make sure she can help you on that.
• 28:49
  SPEAKER_08: Yes.
• 28:50
  SPEAKER_04: So so I know are homes crashing?
• 28:53
  SPEAKER_04: Are they?
• 28:54
  SPEAKER_04: Are prices crashing?
• 28:55
  SPEAKER_04: No.
• 28:55
  SPEAKER_04: Okay.
• 28:56
  SPEAKER_08: No.
• 28:56
  SPEAKER_04: I mean us staying steady.
• 28:58
  SPEAKER_08: Yes.
• 28:59
  SPEAKER_08: The headlines are just like, you know, oh my goodness, this is what's happening.
• 29:03
  SPEAKER_08: And it's there's so much scare tactic out there.
• 29:06
  SPEAKER_08: They want everything.
• 29:06
  SPEAKER_08: In every aspect of life.
• 29:08
  SPEAKER_08: And and it's not automatically that the prices are crashing.
• 29:12
  SPEAKER_08: In August, the national media and existing existing home prices were$429,000.
• 29:17
  SPEAKER_08: Now that is that's national.
• 29:20
  SPEAKER_08: For here, it's$144 to$160, that median price.
• 29:24
  SPEAKER_08: Because it went up because when we were first starting this podcast a few months ago, it was uh, I think we were at$135, something like that.
• 29:31
  SPEAKER_07: I thought it was$112 when we very first started.
• 29:33
  SPEAKER_07: I thought we're$115.
• 29:35
  SPEAKER_07: In different areas.
• 29:36
  SPEAKER_07: Do you think the$459 national median?
• 29:39
  SPEAKER_07: The$429 or$420.
• 29:40
  SPEAKER_07: Do you feel like that's well because it's good or not in different states?
• 29:44
  SPEAKER_08: That's what I mean.
• 29:44
  SPEAKER_07: I would have thought it was a lot more than that.
• 29:46
  SPEAKER_08: So I don't think that's and that's just the median because you can go higher and yeah, that was got that money.
• 29:53
  SPEAKER_08: Yeah.
• 29:53
  SPEAKER_08: But so prices nationally will still be increasing year over year.
• 29:59
  SPEAKER_08: They will.
• 29:59
  SPEAKER_08: I mean, it it's just going to happen as that's just how life is.
• 30:03
  SPEAKER_08: That's just how it goes.
• 30:04
  SPEAKER_08: Well, yeah.
• 30:04
  SPEAKER_04: I just looked it up.
• 30:05
  SPEAKER_04: So it's hot off the press.
• 30:06
  SPEAKER_08: Okay, hot off the press.
• 30:12
  SPEAKER_04: Okay, one for a little bit broader area to approximately$152,000 to be exact.
• 30:17
  SPEAKER_08: I think that's and that makes me proud.
• 30:20
  SPEAKER_08: So so what I see happening here, and we've said it before, things are normalizing.
• 30:25
  SPEAKER_08: Right.
• 30:26
  SPEAKER_08: What is the normal?
• 30:28
  SPEAKER_08: It's not the 15 offers on a house.
• 30:31
  SPEAKER_08: That's that's crazy, you know.
• 30:33
  SPEAKER_07: That's like an exception.
• 30:34
  SPEAKER_07: It is.
• 30:35
  SPEAKER_08: It is.
• 30:36
  SPEAKER_08: So, example, you might have uh 10 showings on a house, and all these buyers come in and they look at the house, but they don't put an offer in.
• 30:44
  SPEAKER_08: There's nothing wrong with the house, they just don't see that it's worth one.
• 30:48
  SPEAKER_08: It's just not for them.
• 30:50
  SPEAKER_08: It's not for them.
• 30:51
  SPEAKER_08: Yeah.
• 30:51
  SPEAKER_08: Is it, you know, one seller says my neighbor sold his house two years ago for 250,000.
• 30:58
  SPEAKER_08: So two years has passed.
• 31:00
  SPEAKER_08: So mine has to be worth more, 275.
• 31:03
  SPEAKER_03: Right.
• 31:03
  SPEAKER_08: Well, is it apples to apples?
• 31:04
  SPEAKER_08: And we've talked about that before too.
• 31:07
  SPEAKER_08: Is it granite?
• 31:08
  SPEAKER_08: Is it versus laminate?
• 31:09
  SPEAKER_08: Is it luxury vinyl versus creepy carpet?
• 31:12
  SPEAKER_08: You know, linoleum, linoleum.
• 31:15
  SPEAKER_08: Yeah.
• 31:15
  SPEAKER_08: All those things come into play.
• 31:18
  SPEAKER_04: So and this is this is gonna segue back to a couple of other uh podcasts before.
• 31:22
  SPEAKER_04: Linoleum is a brand name.
• 31:24
  SPEAKER_04: It's sheet vinyl.
• 31:25
  SPEAKER_07: Uh-oh.
• 31:25
  SPEAKER_04: Just thought it like the jacuzzi.
• 31:27
  SPEAKER_04: You thought that was a brand new thing.
• 31:28
  SPEAKER_04: Okay, okay.
• 31:29
  SPEAKER_07: Oh, okay.
• 31:30
  SPEAKER_07: So what's it?
• 31:30
  SPEAKER_07: It's called sheet vinyl.
• 31:32
  SPEAKER_04: Sheet vinyl.
• 31:32
  SPEAKER_04: Yeah.
• 31:32
  SPEAKER_04: Sheet vinyl.
• 31:33
  SPEAKER_07: Chris, that is so funny.
• 31:35
  SPEAKER_04: You know.
• 31:35
  SPEAKER_07: I am glad it's called vinyl flooring.
• 31:38
  SPEAKER_07: Look, there's Kleenex, there's there's jacuzzi, there's a brand name.
• 31:44
  SPEAKER_07: I know we'll think of others.
• 31:45
  SPEAKER_04: It's actually it's Kung Kong will it's C-O-L-I-N-G-U-I boom.
• 31:50
  SPEAKER_04: But it's it's a right.
• 31:51
  SPEAKER_04: Yeah.
• 31:51
  SPEAKER_04: It doesn't start with an L.
• 31:52
  SPEAKER_08: I know.
• 31:53
  SPEAKER_08: I've seen that word before.
• 31:54
  SPEAKER_08: Where did that even come from?
• 31:56
  SPEAKER_08: And I know we're out of time for today.
• 31:58
  SPEAKER_04: Yep.
• 31:59
  SPEAKER_04: Because we do so much.
• 32:01
  SPEAKER_08: And we're this was working again.
• 32:02
  SPEAKER_04: Can we bring this back on next podcast?
• 32:04
  SPEAKER_04: Yes, I love that.
• 32:05
  SPEAKER_04: I love that.
• 32:06
  SPEAKER_07: Two coming at you.
• 32:07
  SPEAKER_04: Part deuce.
• 32:08
  SPEAKER_04: Caitlin's gonna drop a deuce.
• 32:10
  SPEAKER_04: So so the big dog bite, right?
• 32:12
  SPEAKER_04: So, Lisa, I think the biggest takeaway from what we've talked about so far isn't a one size fit all answer when it comes to today's real estate market, right?
• 32:21
  SPEAKER_04: Interest rate matters, inventory matters, price matters, but ultimately your individual situation matters.
• 32:26
  SPEAKER_08: Everybody's budget matters.
• 32:28
  SPEAKER_04: Yeah, it does matter.
• 32:29
  SPEAKER_04: And that's the next big dog bite.
• 32:31
  SPEAKER_04: But don't make one of the biggest financial decisions of your life based on a headline.
• 32:35
  SPEAKER_04: Get information, understand your numbers, and make the decision that's right for you.
• 32:39
  SPEAKER_04: Yes.
• 32:40
  SPEAKER_04: And the headline is key on there because you talked about that.
• 32:42
  SPEAKER_04: Yes in the media, yeah.
• 32:43
  SPEAKER_04: I haven't I haven't watched news in probably over six months because there's no reason for me to watch it.
• 32:49
  SPEAKER_08: I don't watch it either.
• 32:50
  SPEAKER_08: My dad watches it, and when I go over, he'll say, Lise.
• 32:54
  SPEAKER_08: Oh, they love the dads love to tell.
• 32:55
  SPEAKER_08: Oh, yeah.
• 32:56
  SPEAKER_08: It says those home, this home market thing, this is what this is him.
• 33:01
  SPEAKER_08: This market thing is crashing.
• 33:02
  SPEAKER_08: My dad is the same way.
• 33:06
  SPEAKER_08: So I think I'm gonna be okay.
• 33:08
  SPEAKER_08: Well, I'm telling you, hon, it's crashing.
• 33:10
  SPEAKER_04: Yeah, yeah.
• 33:11
  SPEAKER_04: So cute.
• 33:12
  SPEAKER_04: Well, hey, today's realtor segment is brought to you by our wonderful partners, 10x partners, First Choice Reality Pros.
• 33:18
  SPEAKER_04: We have Lisa Miller, and not with us today is Lydia Emmons on the road to Texas.
• 33:24
  SPEAKER_04: And we'd love that you can get a hold of them at 217-825-3999.
• 33:29
  SPEAKER_04: Or find them on that beautiful interweb at firstchoicerealitypros.com.
• 33:32
  SPEAKER_04: That's the number one, stchoicerealitypros.com.
• 33:36
  SPEAKER_04: So if you're thinking about buying, selling, or you're simply trying to understand what today's real estate market means for you, reach out to Lisa and the team at First Choice Realty Pros.
• 33:45
  SPEAKER_04: They'll help you understand your options and make an informed decision.
• 33:49
  SPEAKER_04: So we'll give you graphs.
• 33:50
  SPEAKER_04: I love the graphs.
• 33:52
  SPEAKER_04: I love it.
• 33:52
  SPEAKER_04: 1010.
• 33:53
  SPEAKER_04: I love it.
• 33:54
  SPEAKER_04: I love it.
• 33:54
  SPEAKER_04: That's perfect.
• 33:55
  SPEAKER_04: So, hey, that's another First Choice Realty Pros Realtor segment here on Design and Building the Midwest, one community at a time.
• 34:02
  SPEAKER_04: A huge thank you to Lisa, as usual, for breaking down what's happening with interest rates and more importantly, what it actually means for real people buying and selling homes right now in our communities.
• 34:13
  SPEAKER_04: Remember, real estate is local and your situation is unique.
• 34:17
  SPEAKER_04: Don't try to time the market based on a headline.
• 34:19
  SPEAKER_04: Please don't do that, right?
• 34:21
  SPEAKER_04: Get good information, understand your numbers, and work with people you trust like Lisa and her team at First Trust Realty Pros, 217-825-3999.
• 34:30
  SPEAKER_04: I just love saying that.
• 34:30
  SPEAKER_04: I didn't say it out.
• 34:32
  SPEAKER_04: It's literally the best phone number I've ever heard.
• 34:34
  SPEAKER_04: It is.
• 34:34
  SPEAKER_08: And let them know to be continued.
• 34:36
  SPEAKER_04: This is can be continued.
• 34:37
  SPEAKER_04: This is the end of part, and Caitlin will drop a deuce next week.
• 34:41
  SPEAKER_04: Until then, we'll see you next time.
• 34:43
  SPEAKER_09: Bye!
• 34:44
  unknown: Bye.
• 34:45
  SPEAKER_00: In the military, there's no such thing as good enough.
• 34:48
  SPEAKER_00: You either do the job the right way or you don't do it at all.
• 34:51
  SPEAKER_00: I'm Blake Middleton of Elite Roofing Professionals and Exteriors.
• 34:55
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• 35:19
  SPEAKER_00: Give us a call today.
• 35:20
  SPEAKER_04: Hey, listeners and followers, we have something big coming out that'll be launching January 1st, 2027.
• 35:26
  SPEAKER_04: Yes, I said 2027, it is upon us already.
• 35:30
  SPEAKER_04: We're almost done with the third quarter rolling into the fourth.
• 35:33
  SPEAKER_04: But we are rolling out the Big Dog Home Guardian program.
• 35:38
  SPEAKER_04: It's a residential service and maintenance agreement.
• 35:40
  SPEAKER_04: You ever have those the annoying beeping smoke alarm that's like, oh crap, I forgot to replace the battery in that.
• 35:46
  SPEAKER_04: Or it's too high, I don't have a ladder, I can't get up there safely.
• 35:50
  SPEAKER_04: Or that furnace filter that you're like, oh, I forgot to change the furnace filter.
• 35:54
  SPEAKER_04: Gutters need cleaning, it's just a mess, whatever that is.
• 35:57
  SPEAKER_04: We are gonna have that in our home dog.
• 36:00
  SPEAKER_04: Big dog.
• 36:01
  SPEAKER_04: Home dog.
• 36:02
  SPEAKER_04: What up, home dog?
• 36:03
  SPEAKER_04: The big dog home guardian program where we can take care of those things.
• 36:07
  SPEAKER_04: Or the little handyman stuff that you need taking care of, right?
• 36:10
  SPEAKER_04: The squeaking storm door, the squeaking bedroom door, squeaky loose floorboard, whatever that is, we can take care of you.
• 36:17
  SPEAKER_04: We're gonna have three tiers of service low, middle, and high.
• 36:21
  SPEAKER_04: Each one of those will have their own things that we offer.
• 36:24
  SPEAKER_04: Obviously, the higher the tier, the quicker response time you'll get put on the schedule.
• 36:28
  SPEAKER_04: Okay?
• 36:29
  SPEAKER_04: So stay tuned and be looking for more information on the Big Dog Home Guardian program.
• 36:34
  SPEAKER_04: Until then, we'll catch you next time.
• 36:37
  SPEAKER_02: Hey, it's Ryan Cleman.
• 36:38
  SPEAKER_01: And Lindy.
• 36:39
  SPEAKER_02: We are the community partners for the Big Dog Podcast.
• 36:41
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• 36:46
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• 36:49
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• 37:00
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• 37:28
  SPEAKER_07: Your local Window Depot USA.
• 37:32
  SPEAKER_07: And that wraps up another episode of Designing and Building the Midwest, one community at a time.
• 37:38
  SPEAKER_07: Thank you so much for tuning in and listening with us today.
• 37:41
  SPEAKER_04: We hope you walked away with some valuable insights to use in your home or neighborhood.
• 37:45
  SPEAKER_04: If you enjoyed what you heard, make sure you hit that subscribe button so you never miss a weekly episode.
• 37:51
  SPEAKER_07: And be sure to follow us on Facebook and across all your favorite platforms to keep up with everything we're building.
• 37:56
  SPEAKER_04: Until next time, I'm Chris.
• 37:58
  SPEAKER_07: And I'm Caitlin.
• 37:59
  SPEAKER_07: Thanks for hanging out with us, and we'll see you next time.
• 38:02
  unknown: Big Dog.
• 38:03
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• 38:15
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