Latest / The Jon Sanchez Show / 10 Home Problems: Would You Buy It, Negotiate It Or Walk Away From It?
Transcript
- Jon G. Sanchez: Good Thursday afternoon to you. Welcome to the John Sanchez show on Newstock 780KOH. It's a pleasure to be with you and a pleasure to be with my co-hosts. Let's go around the horn. Let's welcome him back. Once a week we get him. Dwight, once a week we get him, and we love having it. That's it. Aaron Clerkovich, really. I can I can you know, I I like this balance. I really do. I love it, love you and Corey. Any e either one of you is always great. We're just happy to have one of you. One Exactly. Exactly. There you go. That's the way to do it. Dwight Millard: Once a week. Aaron Clark, Edge Realty: At least you can count on me now, once a week. Dwight Millard: Yeah. Aaron Clark, Edge Realty: Ha ha. Soon as you get sick of one, the next one's on, you know? It's perfect. Dwight Millard: That's right. Jon G. Sanchez: so true. Eric of Adriality. How you doing, buddy? Good, man. Good. Good to have you, man. Good. I I can't bel That's it. That's exactly it. That's exactly it. ⁓ Much Yes. I am feeling it. ⁓ I absolutely do you guys get that way too this time of the year? It's like been a long it's just Dwight, yeah, yeah, exactly. But Dwight, you know, I you know, especially as is what a tough year you've had as far as rates are concerned and things. Aaron Clark, Edge Realty: I'm doing great. Good to be back. Especially before a three day weekend, man. Much needed. I get that way every day. Dwight Millard: Wait. Yeah. Jon G. Sanchez: It it's it doesn't it feel like it's been a long year and it's just then you get to this final stretch of the you know, the fourth quarter and you're just like Dwight Millard: What you know, John, it's funny because we talk about it. Yeah, it's been a tough, tough year in the mortgage market, but life still happens around you too. So you add all that on. And now it feels like it's fall, you know. I don't know. Water skiing may be over. So now I don't know. You know, yeah, I'm a little bit depressed today. You know, I was hoping to maybe get some water skiing in over the weekend, but I I I don't know. But but but yeah, I think I think you start getting around. Jon G. Sanchez: ⁓ of course. Life's been great, yeah. Yep. I know. No kidding. Goodness. ⁓ yeah, I don't know. I don't know. No telling with our weather what'll happen, but Dwight Millard: Halloween, John, you know, we're getting we're getting close to it. People just are exhausted. It's you know, and again, you've ⁓ in years past you've you've explained the ups and downs of the market and then the gain that you know what we went through to get to that, right? It was like a lot of stuff. You know, we went through a lot of stuff, a lot of ups and downs, wars, this, that, to get to that, you know. But what else do you do? You got 12 months out of the year, 360, you gotta do it. Jon G. Sanchez: Yep. Yes. Yeah, I think that's it. Right, right, right. Yes. Yes. Yeah, I know. I know. I was told my wife it's like watch to say we're gonna blink and it's gonna be Thanksgiving. There's gonna be Halloween and then of course it's always you know downhill from there. But ⁓ yeah, it's been been a long, long year. So but know what? We get this one hour each and every day like we always joke, that we can forget about everything going on around us and we get to just have three Dwight Millard: ⁓ yeah. ⁓ yeah. Yeah. Jon G. Sanchez: Three boys sitting around ⁓ chatting and having a good time, talking about our passions of life, the stock market, real estate, that good stuff. So I'm I'm blessed for that side of it. I love it. I love it. Well, let me speaking of which, let me tell you what we have ⁓ up. You know, I I'll honest with you, I was joking with the boys before the show started. And I I have to apologize for ⁓ kind of kind of a goofy topic today. I said, But I you know, again, just to be honest with you, I I was a loss today of what to come up with. I really was. I I was almost to the point where I'm like, Yeah, we're just gonna sit around just We're just gonna do rapid fire with the guys on on real estate. It's like, hey, Aaron, what's going on with you? Do I what's going on with you? You know, so on and so forth. But we came up, or I came up with a kind of a unique topic. 10 home problems. Would you buy it? Would you negotiate it, or would you walk away from it? Aaron's like, Yeah, I was gonna tell you it was kind of a stupid topic, but you said it first. Yeah, that's what you meant. ⁓ I saw expression on your face. It's like, you idiot, what you coming up with this topic for? Aaron Clark, Edge Realty: I didn't say stupid. I said interesting. Jon G. Sanchez: But but if you think about it, it's kind of it's kind of an interesting topic, right? Because it it's very relevant. Right. It's not you know, we don't see, well, you'll you'll tell me this, but my perception, you don't see a lot of, you know, bargain honey like the obviously the flipping going on as we have in other periods of our time, this really would have been a relevant topic. But you know, what we're gonna be talking about is really simple. You found perfect house, right? It's it's everything that you want. But then you discover the roof is, you know, 25 years old. Aaron Clark, Edge Realty: It's very relevant, for sure. Yeah. Jon G. Sanchez: Or there's a crack in the foundation, there's mold, ⁓ as Divide always brings up, that unpermitted addition that was done. Or maybe, you know, it's a beautiful house, but look door and it looks like a junkyard over there. So today going to play, I buy it, I negotiate it, or I walk away. And so that's what we're going to be doing. We're going go through basically some of the some of the the typical problems that the that Aaron specifically sees being out in the field. And ⁓ Really get his idea and and again, we're gonna play this game. Aaron, are you gonna buy it? Negotiate it, walk away. Same with Dwight. the rules are gonna be, you Aaron's gonna give his answer, Dwight's gonna give his answer, then I'm gonna let each of you defend your answer, right? And you guys don't have to agree. Matter of fact, I hope you don't agree, but our first one that we will start off with. I hope you get into a nice heated debate. But Dwight's not in one of his moods today, so I can I can tell that he's he's not in an argumentative mood. He is focused on tomorrow at you know, about three o'clock when the day's over. Am I right on that one? Dwight Millard: Yeah. Yes, yes I am. Yeah. ⁓ that and the ⁓ employment numbers, right, John? I gotta deal with that first. Jon G. Sanchez: That and the employment numbers. Yeah. Yeah, exactly. Exactly. so the first one that will house number one that we're going to talking about is the twenty five year old roof. ⁓ Aaron, this is this is in all seriousness, before we get to the stock market, this is a common one, right? And we know how expensive roofs are and stuff. Okay. All right. Tell me about it. Tell me why it's so common and what what you know, what you look at there. Aaron Clark, Edge Realty: Very common. I mean, part of the problem is in the last plus years since the market's all just been on a complete uphill climb, right? Just appreciation after appreciation. So people have purchased homes in that time period where they were just desperate to get in. So even if the roof was bad or it was at the end of life or whatever, they didn't care because it was a blessing and a benefit just to get into contract and close on that house and kick that can down the road. Well then ⁓ Jon G. Sanchez: Good point. Yep. Aaron Clark, Edge Realty: Know lo and behold, time goes by, you get busy, it's a big expense, and you never really address it, and now you're ready to sell. And so you still can't address it. So you stick it on the market, and and you would hope that the same buyer that comes in next would do the same thing you did, but that's not the market we're in right now. So now they're gonna buy it and negotiate that the roof needs to be replaced. And then insurance companies are getting way more strict on these, whereas before. Jon G. Sanchez: Ha ha ha. Ooooo good point. Aaron Clark, Edge Realty: It was really up to the buyer and the seller and the insurance companies didn't even pay attention half the time. But now the first thing they'll do before even issuing the policy is they'll actually pull the year built. They'll estimate that let's say if it's if the home's twenty five years old, twenty six years old, whatever, that it has a 30 year roof, which means they automatically assume it's not in good condition and they'll automatically require some sort of evidence, either by an inspection from a roofing company saying that it has more than five years in writing. Jon G. Sanchez: Right. Okay. Aaron Clark, Edge Realty: Or they will say it has to be replaced in order for them to issue a policy. And if they don't do it on the front end, they'll do it on the back end. A month later after you close, an insurance adjuster says, Replace the roof or we cancel. Jon G. Sanchez: Yeah. Yeah. Yeah. F D close. Dwight Millard: Yeah. Jon G. Sanchez: Yeah, but y I I gotta be honest with you, you you caught me on that one, Aaron. I did not even think about the insurance side coming into play. But as you both harp every week the the problems with the insurance, right, Dwight? Wow. ⁓ Now, real quickly, be from a lending perspective, let's use excellent point. From a lending perspective, could you do the same or do you do the same thing where you're like, we're not gonna lend on this thing until we know this roof situation? Does that get into you do you get into that side of it? Dwight Millard: ⁓ absolutely. ⁓ yeah. Yeah, well well so typically ⁓ if it comes up on an inspection report that is necessary for us to have or an appraiser makes a comment on the roof, then we will go into a deeper dive on what we need to do about that roof. But what's interesting, John, real quick and and Aaron understands this strategy is that you The reason why when you have like a roof, for example, the seller doesn't want to pay for it because it hasn't closed. They don't have the money. The buyer doesn't want to pay for it because they don't own the house, nor would they. So we've had some flexibility, John, which allows us to pay a licensed contractor in escrow at closing in advance. So both are happy and we can move forward. Yeah. You you gotta be careful on that because you still gotta have performance, but Jon G. Sanchez: Really interesting. Yeah. Right. Dwight Millard: ⁓ there's a little bit of flexibility. And obviously if you get into multi-inspections and lots of dollars, you probably don't want to go that direction. But this was a ⁓ an HVAC that needed to be repaired and it it both just dug their, know, dug their heels in the s and this, yeah, they weren't gonna move. ⁓ I f you know, we kind of finally came up and said the underwriter and I and we go, hey, why don't we just get who the contractor is gonna be, put the bill in escrow. Jon G. Sanchez: Yep. Dug in. Yep. Dwight Millard: and have them paid outside of escrow. So I'm not doing an escrow withhold. I'm not doing so those are some of little little things that we can do to kind of help facilitate the buyer and seller mm unwillingness to yeah, trying to do it. But but Aaron understands that one too. But you get into sixty, seventy thousand dollar work, that that probably doesn't really fly. But yeah. Jon G. Sanchez: Yeah, it's very interesting. Yeah. That's why you're so good at what you do, brother. That's why you're so good at what you do. Well, yeah. Yeah. Yeah. Okay. All right. Wow. See, guys already brought see, it's not that stupid of a topic, Aaron. It look at the look at the value. I even learned off of that one. I even learned off of that one, you know. So look at look at look at the value you guys are bringing already. And we're, you know, sixteen minutes into the show. Not a beautiful sixteen. You guys are amazing. You guys are amazing. All right. You're a tough act to follow, but let me let me do my best. I gotta tell you about the stock market side of things. Hey, at least we're in the green today in my world, okay? Aaron Clark, Edge Realty: Yeah. Dwight Millard: Yeah, yeah. Aaron Clark, Edge Realty: Ha ha ha Jon G. Sanchez: All right. I don't have all the great news like you guys have. Yeah. Well, geez, here we go. Fine. It's gonna be one of those shows today. I'm not gonna be able to do anything right. I can see it. I can feel it. I can look it. I can see it in your guys' eyes. finally, Aaron, because Dwight's doggone bond market finally behaved itself today, right? See? Yeah. See, all we need, Millard, is your bond traders just to behave and keep their keep their mouths quiet and you know, ⁓ let too many missiles fly. And, you know, we we we do pretty good. We do pretty good. Aaron Clark, Edge Realty: Finally. Dwight Millard: Yeah, yeah. Aaron Clark, Edge Realty: Mm-hmm. Dwight Millard: Yep, just that those crazy bomb traders. Jon G. Sanchez: Matter of fact, let me just get the good news out of the way here. We finished up 624 on the Dow, ⁓ 1.18% gain. Our close is 53,686. NASDAQ rose 366, 1.4%, closing at 26,584. SP up 81 or 1.06%, closing at 7747. the ⁓ Russell 2000 up about a half a percent. So ⁓ it was it was a good day to it. And it, you know, really it started that way ⁓ the Dow side of things. We just kind of ⁓ you know started up. it triple digits we spent most of the pre-market session. NASDAQ was actually almost down about a hundred points on my first update this morning at 523. So to ⁓ to see the Nasdaq finish the day with a 300, I mean, we're talking almost, you know, basically almost a 400 point you know, swing from ⁓ from the lows to the highs today. ⁓ So ⁓ it real good. And and again, the the side was was very quiet. We had just a 39 cent gain in oil closed at 9135 a barrel. Gold skyrocketed We saw the the Japanese yen, which is a whole complicated subject that we watch, move up ⁓ $123.80 to $4,54040. And as Dwight will touch on in more detail when we come back from the break, ⁓ ⁓ three ⁓ basis point decline on the tenure at yield of four seventy six. But before we go to the break, guys, ⁓ know, everyone's getting okay, what was the catalyst today? And don't know if you guys ⁓ saw that it was really early this morning. I think it was in the five o'clock hour still. ⁓ You Fed Governor Chris Waller, who's a voting member of the FOMC. And ⁓ Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: You know, as I was saying on my updates this morning when this news broke, very well respected. He's he's don't think formally in charge, but or second in charge after Kevin Wars, but he's pretty close to that. Anyways, came out and ⁓ he he said in a in a in an interview that that you know basically that reduced he has some reduced concerns surrounding the possibility of of another rate hike at the September FOMC meeting. ⁓ Dwight Millard: Okay. Jon G. Sanchez: He acknowledged that inflation remains meaningfully above the Fed's two percent target and left open the possibility of another increase if progress stalls. And then investors again turned around and focused more heavily on his observation that the recent data has shown encouraging signs of disinflation. so ⁓ things just immediately turned around, bond yields came down, stock market went up. So, you know, you get Waller saying that, and Dwight, you'd be ⁓ know happy with this one. We came into today with about I think it was about sixty one, sixty-two percent probability that of a quarter percent cut. That number dropped all the in September that number dropped to ⁓ forty nine point six. and so ⁓ you know, still still a little bit high, but but ⁓ definitely moving in the right direction. So this was a ⁓ a waller rally that we call it today. A waller rally. Dwight Millard: Yeah, I was gonna say, John, the the power of one voting member, right? The the amount of money that is made or lost in a day based on one voting member, it's amazing. Jon G. Sanchez: One. That's it. One. Yep. Yep. Well and and imagine being a trader and being on the wrong side of that trade because you that's the risk of the this market if you're day trading or whether you're bond trader, whatever. there's it takes is like you said, one comment, whether it's from Trump or Waller or somebody else. And this thing can reverse course, you know, in a in a blink of an eye. Blink of an eye. All right, come back and ⁓ go through ⁓ see what we did on the mortgage side of things today with that bond deal pullback and then get ready for our topic. Ten home problems, would you buy it, negotiate it, or would you walk? Dwight Millard: Yeah. Jon G. Sanchez: with Aaron and Dwight. Let's turn it over to ⁓ Jim post in the right now traffic center. Dwight, you are like blasting. Aaron, do you hear him blast? Yeah, I don't know. Do you ⁓ you're blasting. Aaron Clark, Edge Realty: Yeah, it's so loud. And it sounds like you're talking in a microphone in the bathroom. Dwight Millard: Am I blast it? What do you mean? Jon G. Sanchez: See, I'm not hearing bad quality, I'm just hearing just really loud. Aaron Clark, Edge Realty: Yeah, it's really for me, I'm hearing very echoey Dwight Millard: I how do I I don't know how how do I turn it down? Is it okay, now I'm right next to it. Does that sound bad? Aaron Clark, Edge Realty: That actually sounds better. Jon G. Sanchez: That sounds better. That sounds better. That sounds better. Yeah. Dwight Millard: ⁓ it sounds better. I had it over here. Bring it closer then, probably. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: Yeah. And you can have it in the camera, it doesn't. Dwight Millard: No, I don't no, I mean I'd usually just have it but let me just see here. It I don't know how to turn the volume down on it though. Aaron Clark, Edge Realty: It might be auto adjusting, so like when it's far away it's increasing the gain and that's what we're hearing. Jon G. Sanchez: That mic that mic does 'cause you have a ring around that mic, don't you? Do you see a ring when you talk? There's no ring? ⁓ okay. Couldn't remember what model. Yeah, that's you sound great now. Yeah, you sound great. Dwight Millard: No. No, ⁓ No. Is that ⁓ is that better? Is that better? Okay. Alright, I just okay. Jon G. Sanchez: And you bailed my ass out, Aaron. Thank you. That was great. Dwight Millard: Yeah I wonder if skiing water skiing's over. Think water skiing's over? Sure feels like it. Well I'm not gonna ski in the wind either. Jon G. Sanchez: I know. It's like cool all weekend. Yeah. Aaron Clark, Edge Realty: Bailed you out? Jon G. Sanchez: Yeah, you made it made the topic sound really good. Those great comments. Dwight Millard: Yeah. Aaron Clark, Edge Realty: I didn't know where you were going or not. ⁓ I could I could give you war stories for each one of these. I mean Jon G. Sanchez: Yeah, I know. ⁓ man. That's what we want. That's what the audience loves. They love your stories. Dwight Millard: Yeah, yeah. Jon G. Sanchez: Yeah, we got a big spike in YouTube, Spotify, and iTunes ⁓ your show last Thursday. That chart just went ⁓ Yeah. I had a feeling that was gonna happen. People ⁓ people the personal story. They love the personal story. Well, I was teasing with Corey on Tuesday and and ⁓ Aaron Clark, Edge Realty: ⁓ really? Dwight Millard: There you go. Jon G. Sanchez: I said, Hey, just want to tell you how, you know, what a great time I had with Aaron last Thursday. I said, He literally, and this is the truth, you had me on like the edge of my seat. And I'm I'm just visualizing I'm it's like I'm watching this movie in my mind because you you you do such an incredible job telling stories. And I know that's why you're so good in sales, because sales is all about telling stories. And yeah, you you had me, you know, on the edge of my seat the whole time. So obviously the rest of the audience felt the same way or the numbers wouldn't have been so good. So great job. I know. Aaron Clark, Edge Realty: Ha ha ha That's funny. Yeah. Jon G. Sanchez: Yeah, who'd have ever thought, right? Aaron Clark, Edge Realty: Yeah, it's so funny. You're like give all this practical good information about all these different topics and then then you talk about how your dog almost died and then like raiding skyrocket. It's like people make no sense. But I mean it does kind of give you an inside perspective of like what people value. Maybe it's maybe people just have too many statistics thrown at ⁓ Jon G. Sanchez: Yeah, yeah. Money making ideas and stuff. Right. Yeah, exactly. Yes, yes. Aaron Clark, Edge Realty: throughout life and nowadays they're looking for authenticity. Jon G. Sanchez: Well, you know, but ⁓ Dwight, I'll I'll commend him on this he's always said. What makes the show unique? It's local. We we talk out of our heart, it's not fancy, you know, and we have great information. And ⁓ I think I think so much of that is missed nowadays because again, y you look at the heavy stuff that we talk about or you know, CNBC or somebody like that. And I think people love the the human element side of it and Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: personal stories and and things like that. I th I think that's just Dwight Millard: Well yeah, I mean, John, you go to work, it's heavy, you come home, it's heavy. It's just so if this is a talk show that's not heavy, doesn't you know, I mean, just it's informative, hey, I'm just giving you information, you make the you know, I I think that's what people want. They just want, like you said, authenticity. Jon G. Sanchez: Right. Right. Yeah. Yeah, yeah. Yeah. Yep, that's right. That's right. Aaron Clark, Edge Realty: So when you have a three day weekend, do you still do your show on Monday? Or do you do like a best of ⁓ nice? Jon G. Sanchez: No, I'll have them do a best of best of yeah. Yeah. I usually do actually a best of of Thursday. Yeah. And I may be doing a best of tomorrow. Yeah, of Thursday. Yeah. they can hear your your your great stories twice. There we go. Aaron Clark, Edge Realty: Yeah. Of Thursday? Yeah. Jon G. Sanchez: Welcome back to the John Sanchez show on New Stock 780KOH with Dwight Millard of On Q Home Loans, Aaron Clark of Edge Realty. All right. Once again, nice day in the market. Finished up 624 on the Dow, 366 increase on the NASDAQ and the higher by 81 on the SP 500. All those were a 1% gain. All right. we said, culprit, you had ⁓ Fed ⁓ Governor Waller indicating that, you know, he's really not concerned about inflation. And and there were many more comments he made, but you get the gist of it. He's not concerned about it at this point as long as And I didn't get a chance to share this, but he said this earlier. As long as the August data, obviously we're in September, so we're gonna start getting August data, as long as the August data shows that inflation is at least holding steady, he's gonna basically vote for no interest rate increase. And that's that's all it took today. but Dwight, let's get over to you. So we had a three basis point decline on the 10-year, you'll close 476. So let's talk about the mortgage side. Dwight Millard: Yeah. ⁓ Well, I I mean, John, it started out real, real strong, kind of pulled back a little bit, but it you you gained three ⁓ I lost three basis points in the thirty year fix. You went from six point nine one, believe it or not, to six point eight eight today. I mean yeah, b basis points away from the seven. Yeah. So I mean, you know, need more more talk like Wallen did about ⁓ maybe not ⁓ well, you and John, you look at the employment numbers, you know, and stuff like that, you'd think they Jon G. Sanchez: Hello seven percent. Yeah. Yeah, right. Who else can do it? Dwight Millard: You know, they've just maybe reconsidered it, 'cause I mean that's just gonna I don't know. I you know, I have my own thing, but but I'm just surprised we're even sitting here four and a half years later thinking about maybe another interest rate increase. But two, two, two, yeah. And and I and I think and I I just think that yeah, I I just don't even know, John, what it is out there. Like you said, I think it's a combination of the Iran conflict, you know, the midterms, things like this, but you would think Trump would just be all over. Jon G. Sanchez: Yeah. Right. Two. Two. The street has two. Yeah. Yeah. September and Decem December. Dwight Millard: Warsh on on this midterm thing. You'd yeah, yeah. You'd yeah. Jon G. Sanchez: That's that's my concern as a Republican, Dwight. That's my concern. He he's gotta start doing something to know, to address this because, you know, his his poll numbers are extremely low right now, his approval rating extremely low. He's gotta pull something out of his hat between now and midterms. He really does. because you again, the the oil feeds into the inflation, which feeds into the interest rate and which feeds into hey, does the consumer have money in their pocket or not? Dwight Millard: Yeah. Jon G. Sanchez: It's a pretty simple formula. So think that's why there gotta be some there has to be, I hope and pray. There's something going on behind the scenes with the Trump administration, with Iran to reach some type of an agreement. because if not, if this and and I saw really read a really interesting article this morning, many are feeling many, many war strategists, not economic, but many war strategists, guys, ⁓ are feeling that Iran playing the long game. They're not gonna do anything. They're gonna continue this kind of Tit for tat, you know, a few missiles there, here, a few missiles there. They're gonna continue this through the midterm elections. Then they said after the midterm elections, based upon the results, then that's when they're gonna s you know, sit down at the at the negotiating table. But they said, you know, obviously they want they want Trump to suffer with this from an ⁓ standpoint, and that's I mean. You're saying he they're they're not gonna do anything from a negotiation standpoint between now and and November. Dwight Millard: Well, you know, y you're not even seeing the headlines anymore, John. I mean, you know, it was every day it was talking about this and that. Now you're not it's it's it it's almost old news, but it's affecting the markets you know, especially the bond market. So it's ⁓ it's top of mind for all of us because that's what we live and breathe every day. But yeah, this is a you know, we it's gotta figure something out real quick. Jon G. Sanchez: Right. Yeah. Yeah. Yeah, yeah, yeah, yeah, absolutely. Indeed. Indeed. Yep. Yep. You got it. Time time is running out. Time is running out. right, boys. Well, let's get ahead start on our real estate topic today. This is gonna be a fun one. Ten home problems. And the I'll be asking the boys is would you buy, would you negotiate, or would you walk away? So once the way this is gonna work is we're gonna start with number one, house number one, as we're gonna call it, the 25-year-old roof, right? You pull up, it's a beautiful house, great neighborhood. Hey. Dwight Millard: Mm-hmm. Jon G. Sanchez: Seven hundred thousand, okay. So, you know, a little above the median price, but in your mind you're thinking it's worth it. But the inspection comes back and says, well, the roof's about twenty five years old. There's no active leaks, but it's clearly, as Aaron said, near the end of its useful life. So Aaron, I'm gonna start with you. if I'm your client and the scenario plays out, where do we start? What do we do? Aaron Clark, Edge Realty: Negotiate. Jon G. Sanchez: Okay, you're gonna negotiate this one, okay? Talk to me. Aaron Clark, Edge Realty: Yep. I mean, we kind of hit on the why, but the main reason is because that ideology and mentality and understanding of how the process works now, from any realtor that has any experience whatsoever in the last few years, understands how difficult that process is for a buyer, which is gonna hurt their seller. So if they're smart, they're already talking to the seller saying, Hey, if this comes up, we're gonna have to deal with it. I'm I just had one. Jon G. Sanchez: ⁓ proppinum. Okay. Aaron Clark, Edge Realty: My client was selling a house. I knew the roof was bad or heading towards the end of life. Not that it was bad. It was functioning fine, but it was at the tail end. I had that conversation when we sold it. We gave money to get the roof replaced because they didn't have money out of pocket. And then when we went and bought a house, thing. I said, Hey, we're gonna have to negotiate this. And when we bought it, I got ended up getting them a new roof ⁓ for that house. So Jon G. Sanchez: Mm-hmm. Interesting. Actual hard cash, not not a reduction in the price. Dwight Millard: Okay. Aaron Clark, Edge Realty: Well, I mean it's all all the the net h is hard cash 'cause instead of them coming in with let's say thirty thousand dollars or coming in with ten and keeping twenty. S but it's yes, yes, hard cash, yeah. Jon G. Sanchez: Okay, okay, okay. Got it from that way. Okay. Right. Right. Dwight, from an escrow standpoint, can it it can be hard cash, right? Dwight Millard: yeah, yeah. It can it can be I that's generally what it is if you're gonna escrow it. I I'm Aaron. I think I would negotiate this one because it's ⁓ it's a roof, you know, it's multiple things. And it you know, Aaron said, a good a good agent's gonna already know, gonna already have a bid, know exactly what they're probably gonna be negotiation, that window they're gonna have. But I mean, you generally think a seven hundred thousand dollar house is probably a nice house. It just, you know, just has an outdated roof. Yeah. Jon G. Sanchez: Yeah. Yeah. Real quick before we go to break, Aaron, I'm gonna come back to you. Could you run into a a a ⁓ risk no one can see? And here's what I mean. It looks good on the surface. It's summertime. Obviously, there's no you're not gonna see anything, you know, really probably any water damage. But what happens if they go to strip off that roof ⁓ here we are, we've got we got damage. Now you're replacing the plywood, obviously, you know, many other factors of it. Any way to protect against that or you just kinda roll the dice and hope that it's not as bad underneath as you think? Aaron Clark, Edge Realty: I mean, with the inspector who's crawling in the attic, sees the underside of all of the plywood, they see if there's any leaks coming in, you have a pr I mean yeah, I'd say you're like ninety-five percent certainty that the numbers that are given are jiving with everything. In the unlikely situation, typically a scenario like that, it might be like another thousand bucks or fifteen hundred, but at that point in time, that's nothing in the scheme of the whole process of buying a seven hundred thousand dollars home. Jon G. Sanchez: Okay. Okay. Okay. Okay. Right, right, exactly. Right. Okay, beautiful. Aaron Clark, Edge Realty: 'Cause it can go the other way too. It can be fifteen hundred dollars less. Yeah. Jon G. Sanchez: True. That's a good point. That's a good point. All right. Okay. When we come back, we're going to go into house number two, the foundation, right? Beautiful house, inspector notices. Yeah. sorry, what'd you say? ⁓ I want to I wanna hear it. Yeah, beautiful same thing. Beautiful house, inspector notices significant foundation crack. Seller says, ⁓ you know, that's been there forever. It was there when I bought the house. Well, again, is this gonna be a buy, negotiate, or walk? What are the things we need to look for with Aaron and Dwight? Let's it over to Jack Saban. He's got news traffic and weather. Aaron Clark, Edge Realty: War stories on those. I said I got war stories about that stuff. had I ⁓ give you like a premise of it and then you can decide how much you want to pick it apart. But I had a client who was buying their rental property and it was a slab foundation with a daylight basement and could a not a golf ball, which is hard, but a ball on this ground and there was such a huge crack in differential in the flooring, it had to be about like that. Jon G. Sanchez: Yeah. No kidding. Aaron Clark, Edge Realty: And it would roll all the way across and it'd pick up speed, man. It was like being in a putt-putt course. And they were like, Well, they said that it was just a like an influx of when they poured the concrete in here. I'm like, heck no. We are getting an engineer to come in here. We're gonna get a full inspection on all this. Long story short, we had the seller pay to allow or pay somebody to pull up the carpet. We looked at the crack. Jon G. Sanchez: ⁓ no kidding. Aaron Clark, Edge Realty: Which cracks in concrete slab foundations, hairline cracks are pretty normal. But when there's this much unulation in it is not. they found out that the wire mesh that they're supposed to put in there wasn't in there. They and they didn't believe us, so then they got another their own engineer that came in and then completely disagreed with us. So it was like, ⁓ somebody's here. You both can't be right and you both can't be wrong. And then that person ⁓ Jon G. Sanchez: Sure. Normal. Yeah. Right, right. ⁓ you're kidding? Yeah, yeah. Yeah. Aaron Clark, Edge Realty: filed a complaint with the licensing board against both engineers because they were both wrong or they were both different in their opinion. So then the contracting board called both of them and said, you better get your butts over there right now and figure out who needs to change their report because you both can't have the right answer on this. And so we ended up meeting it was me, the property manager who was also the listing agent, my client Jon G. Sanchez: What Yeah. Aaron Clark, Edge Realty: The inspector and the two engineers are all at the house arguing and debating and yelling at each other over who's right and who will relinquish what, to where it just turned into a nightmare. So had negotiating wise, we like, sure, because if they want to pay $150,000 to jackhammer that sub that daylight basement floor to replace it and report it correctly, why not? But they're not going to do that. And they didn't. So we walk. Jon G. Sanchez: Right. my gosh. Yeah. Right. Yeah. Dwight Millard: ⁓ to be missed. Aaron Clark, Edge Realty: And my buyer was like, you sure it was our dream home? And I'm like, You guys are crazy to take that whole thing on. Well, they said they'd give us money. ⁓ It's until you start cracking the concrete and ripping it out, you can't really say one or the other. So ⁓ Jon G. Sanchez: You did like it, Yeah, you don't want that kind of problems. So who ended up being right? Who w what which which which engineer? Dwight Millard: It is. Jon G. Sanchez: Yeah, yeah. So why would the one say that it didn't they didn't have enough screen in there? Aaron Clark, Edge Realty: H so the one and these guys are local, so they probably listened to the show, but the one is well respected in town, although I do not respect him, his argument was that it wasn't required to put the wire mesh in there and that it was more something cosmetic that could have been ground down. It wasn't structural. The other engineer said it's a hundred percent structural. Jon G. Sanchez: Okay. ⁓ Aaron Clark, Edge Realty: Even if it's not structure, it's still structural because it's going to cause deflection and affect the flooring for the rest of the life of the home. So maybe you can ground it down, fill it with concrete, call it good. But who knows? Whatever caused it to do that from day one is still present. So if it's water, if it's clay, if it's expansive soil, it's still structural. And so that's where it left. And then they sold it to someone else and did not show what I heard. I can't say this over there, but they did. Jon G. Sanchez: Right, right. Yeah, yeah. Aaron Clark, Edge Realty: they chose not to disclose it to the next person because the seller has two two reports that are sides with them and one doesn't. They get to choose who they want to believe. So yeah, it was a nightmare man. Jon G. Sanchez: ⁓ Dwight Millard: You know, it and John, it was easier in the day when you had the footings and you had the stem walls, right? Now they're all slab, you know, and slab's so hard to to manipulate that, you know, it's crazy because on a stem wall you can go underneath and jack up, you know, s know, you put a pier and you could jack up the floor and just that's that's how you do it. But now it's gotten so com you know, complex. Jon G. Sanchez: Right. Right. Right. Aaron Clark, Edge Realty: Yeah, there's definitely war stories for every one of these. Jon G. Sanchez: ⁓ I can only imagine. Aaron Clark, Edge Realty: Leased solar panels, that's a freaking huge one. What a pain in the ass those are. Jon G. Sanchez: Yeah. Is it really? Aaron Clark, Edge Realty: The smoker house. I haven't looked at all these. I had one of those too. Didn't sell for a year and a half because the husband and wife both smoked about a pack of cigarettes a day in the house. was the most disgusting house I've ever sold. I had to do three rounds of remediation just to get the smell. I the thermostat was ⁓ yellow. I thought it was tainted from the sun, discoloring it. Jon G. Sanchez: Bruh. Dwight Millard: I I have looked at it Jon G. Sanchez: Yeah. Y ⁓ Yeah. ⁓ Aaron Clark, Edge Realty: I took a paper towel, I wiped the tar off. You could have put you could have created a candle with the wax tar that came off the therm and it was bright white underneath. It was disgusting, dude. Dwight Millard: Is this Jon G. Sanchez: ⁓ good. Dwight Millard: That goes with cats though, houses that have a lot of cats. Cause you can't get you can't get cats the urine out. You gotta rip up the carpet. You gotta take a you know, it's just awful. Yeah. Jon G. Sanchez: ⁓ yeah, that's a good point too. Aaron Clark, Edge Realty: The neighbor from hell. That's another good one. You could do two shows three shows on this easily. Jon G. Sanchez: You really you really could. Yeah, 'cause I know we're not gonna get through all these. Aaron Clark, Edge Realty: No. We're gonna get through like two more. Jon G. Sanchez: that's about right. Aaron Clark, Edge Realty: I got stories on that too. The neighbor who the neighbor who is suspected of murder. Jon G. Sanchez: Ha ha. Aaron Clark, Edge Realty: Had one of those. Jon G. Sanchez: You know what we should throw in in in that one, the neighbor from hell? The the the registered sex offender. We had we had that problem. Yep. Had a neighbor. And boy, once those neighbors find out that this guy was there, holy shit, they they s came unglued. Dwight Millard: ⁓ yeah. Yeah. Mm-hmm, mm-hmm. Jon G. Sanchez: I think we had one neighbor move 'cause they had young kids. Like, nope, we're not staying here. Aaron Clark, Edge Realty: I mean the only way you're really safe is to live next to a school. Jon G. Sanchez: Do you Dwight Millard: When the problem is Jon G. Sanchez: Right, right. you I'm sorry, do I? Dwight Millard: Yeah. The I was just gonna say the problem, John, is they're there, you can at least do the registry. It's the ones that get out after you buy the house that have the ability Yeah, yeah, yeah. Jon G. Sanchez: Right, and that's what happened with this one. So let me tha that's what I was gonna ask you guys. Do you guys does does anybody have to do a we're starting? Does anybody have to do a check? a sex offender check part of the buying process? No? All right, there go. Yeah. Aaron Clark, Edge Realty: Nope. They should. Jon G. Sanchez: Welcome back to the John Sancho Show on Newstock 780K. 10 home problems. Would you buy it? Would you negotiate it, or would you walk away? That's what we're covering. We just got the roof side of it done. Once again, if you just join us, here's the day on the market. We finished up 624 on the Dow, 1.18%. Now's that gain 366, 1.4% the SP 500 higher by 81 points or 1.06%. Okay, boys, let's get to ⁓ a real expensive one: the foundation crack, right? Beautiful house, inspector notices. little foundation crack. Seller says, ⁓ that's been there forever, right? It was there when I bought the house. Well, what is it that you want to do? Aaron, let's start with you. Aaron Clark, Edge Realty: I mean, I'm never gonna say walk because you never know what a seller's willing to do, especially if they know going into it. I mean, they could sit there and spend three hundred thousand dollars fixing the foundation if that's what it requires. And I've had people do that. So I'm gonna say negotiate on this, but only if you get every basis covered. I mean, the legal ease in writing, you get protection, done on the up and up, you get engineering reports, you get contractor reports, you get soil reports, you get everything that goes along with it. Jon G. Sanchez: Okay. Aaron Clark, Edge Realty: for that seller to know that they have to get it done right to sell the home. 'Cause I've had those where people just got a fifty thousand dollar credit and all they saw was dollar signs and then they kicked that can down the road and they were in the same position. Jon G. Sanchez: yeah, that is not cheap work. Not cheap work. Okay, so your your takeaway is could be a negotiation factor, not necessarily a walk away factor, but highly unlikely. Okay. Dwight? Aaron Clark, Edge Realty: No, it's not. But highly unlikely. Yeah. Yeah. Most likely it's gonna be a walk. Dwight Millard: Mm-hmm. I I yeah I I I I like Aaron's I I'm gonna agree with Aaron. The problem is it's it's not an easy fix, and two, it has the ability to continue to be a problem. That's you know, like a roof, you fix a roof, yeah. A roof, know, you replace the roof, you should be good. But there's just lots underlying ⁓ Jon G. Sanchez: Get worse, yes. Aaron Clark, Edge Realty: Yeah, you have to identify what caused it. Jon G. Sanchez: Yeah. Dwight Millard: Issues with foundation repairs. I I yeah. I I just d you know, we talked off air real real quickly and there's a difference between now what they do is a slab what we used to do as ⁓ stem walls. You know, we could get under and fix them a little easier, but this is tougher th than that. Yeah. Jon G. Sanchez: Right. Okay. Yeah, yep. Yeah, indeed. Indeed. right, great job. Let's go to house number three. It's the perfect house, but it's a terrible location. House is immaculate. Completely remodeled. Everything that you want. Great price also, by the way. But it's on a busy road or backs to a freeway. Right. We saw this happen a lot in both Reno or Pleasant Valley. Remember when the ⁓ the five eighty went in? We've seen it happen in Carson City, so on so forth. So Aaron, let's start with you on this one. great house, but boy, bad location. Dwight Millard: Mm-hmm. Aaron Clark, Edge Realty: mean, I gotta I gotta have a qualifier on this because if it's in an area that the only way you can get in is to buy this house because of the price point. And so that's what you have to do to get in, then I'm gonna say negotiate. But if it's not, absolutely Find something else because it's gonna be the same problem when you go to sell it someday. No matter what, you're gonna deal with the same problem. Yeah. And that's what people have to understand. The only caveat is. Jon G. Sanchez: Okay. Okay. That's my point. I was just gonna bring that up. Yep. Never going away. Dwight Millard: Yeah. Aaron Clark, Edge Realty: Some people I've had where they're like, Hey, I'm gonna buy that. I don't care because I will be turning it into a rental property. And renters typically aren't gonna care too much unless of course it's, you know, a busy freeway where it sounds like a freight train every five seconds. Dwight Millard: Yeah. Yeah. Jon G. Sanchez: Right. Right. Right. Okay. Do I Dwight Millard: I'd like to disagree with Aaron, but I can't. He's absolutely correct. I mean, I I I think it checks nine out of ten boxes, just know that that's be a problem when you sell it. But if you go into it and you're thinking this is a long term, maybe a rental, then I think you just yeah, you negotiate, you buy it, whatever. But yeah, that's a tough one 'cause you can't we had that problem in Carson. You know, I was down there my ⁓ you know, my mom saw a lot of houses on the and ⁓ and it took ⁓ twenty years after that. But there was a lot of people that walked just because of the potential. So Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: Yeah, that's what yeah, that's why I brought it up. Yep. Yep. Absolutely. All right. Let's go to house number four. Dwight, I'm going to start with you because this has always been a pet peeve of yours. The unpermitted addition, right? House says, ⁓ yeah, twenty eight hundred square feet, but hundred square feet of the twenty eight hundred was added by the previous owner, right? He and his buddies got a couple six pack of beer on a few weekends and they added that that that second game room, which turned into a nice man cave or game room, right? No permit no nothing. Aaron Clark, Edge Realty: Mm-hmm. Jon G. Sanchez: what do we do here, ⁓ Aaron? ⁓ I mean I'm Dwight, we're gonna start with you because this is your pet peeve. ⁓ Dwight Millard: Yeah, I w well the the the first thing, I I I mean it it's too late after it gets to me, but 'cause we're gonna require tradesman type quality, you know, John. We're not g i but we are gonna need it eventually permitted because i i if gonna give it the full value. Now there's little ways around it where you call it a sunroom or whatever, but that's a problem. That I mean and if ⁓ it's a dozen guys on a weekend with a, you know, case of beer, I d I I I don't know if I'd Jon G. Sanchez: Yeah. So what do you do? I'll I'll throw this to both of you. What do you do in that situation where let's say the quality of work was good? Maybe the guy's a you know, he works in construction, he doesn't have a contractor's license, but he works in construction. So he knew what he was doing, right? And and again, they put it up, it's good quality and everything. But again, there's been no permits, no blueprints, no nothing. How's how do you overcome that? Dwight Millard: Wanna take that one down? Mm. Yeah, yeah. Well, I I I think John, if you want the value for it and the seller wants the value for it, you do have to get the permit, which is gonna cost somebody. And then, you know, but you just bought more of a house, right? You got six hundred more square feet. So Jon G. Sanchez: So but how are they going this is what people wanna know, guys. How is the let's say it's it's you know, Washoe County or city of Reno, how's the in how's the the the department that issues the building permit, how they gonna do that, you know? Dwight Millard: They're gonna come back. They're gonna come back. They're gonna do the quality and they're gonna you're gonna get hit with, you know, penalties and different things like that. Yeah. Mm-hmm. So they'll they'll give you a permit, but they're gonna go through some yeah, they're gonna go through the quality. Yeah. Jon G. Sanchez: You are. Okay. Okay. Okay. Yes. Can't can't see in the wall. Interesting. Okay. Aaron, any experience on that side of it? Really? Aaron Clark, Edge Realty: ⁓ yeah, I'ma say bye. Because we get we get a home inspection a lot of times ⁓ there is additional square footage added, the value will meet the standard of what we need to achieve on the appraisal, regardless of that additional square footage for the lender. So we won't have an appraisal issue. And as long as our inspections are good, then who cares? I mean Dwight Millard: Ha ha ha. Aaron Clark, Edge Realty: somebody gets something extra that they want. Maybe it's a maybe they converted their garage into a yoga studio or something or a hair salon or whatever. You know, big whoop. I mean, I have I have deals where they did a detached garage and the county wanted them to add vents in their giant garage doors to close the permit out because of water flooding possibilities in a hundred year floodplain. And they're like, I'm not cutting holes in the bottom of my garage. It looks horrible. Jon G. Sanchez: Right. Right. Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: So they didn't finish the very last step in getting it permitted, but everyone else sees the value. The garage is immaculate. It's beautiful. I just closed on one that had that and no one cared and it's still appraised just fine and it was fine. But you still need to make sure that the work was done correct and quality, because there's pergolas added where they're attached to the house improperly and they cause water issues. That I would say no, we're gonna negotiate it and get it done, get it fixed or get it done right. Jon G. Sanchez: Interesting. Okay. Okay. Okay. Okay. What what about from a safety standpoint and a code code violation standpoint? I mean you you got a look if let's say it's a a garage conversion into a know into an a a a living quarter, you got electrical, you got maybe you know, plumbing, just the risk you take. Aaron Clark, Edge Realty: Yeah. That's what the inspection's for. I mean, I I've had inspectors where they come and they're like, this is perfect. There's nothing wrong with it. There's no issue. It just doesn't have a permit. And so on something like that, buy. But if they're looking at it and they're like, ⁓ my gosh, they used fishing line to hold the wire up and they use duct tape and to wrap the wire. So this is a live wire. It doesn't even have a cap on it. Then absolutely we're not buying. But but it but you should take a swing at it because there is a lot of potential value. And if you just have to pay Jon G. Sanchez: Mm. Right, right. Aaron Clark, Edge Realty: a thousand dollar fine and fees to get the county to come and permit something that was otherwise unpermitted. Now you get that bonus when you go to sell that property. So you gotta look at it from all aspects, not just one dimension. Jon G. Sanchez: Mm. okay. Real quickly before we go to break, and I I've ran across those personally. How do you know you're getting in this example a twenty eight hundred square foot house? 'Cause I've seen it where they've been advertised and we came in, we did the appraisals and and did everything. And it was yeah, okay. So what do you do there? Negotiate, right? Aaron Clark, Edge Realty: Sure. Happens all the time. Yeah. So if you again, that's going to be the appraiser. When they come in and they take their photos, they're also taking the measurements to ensure that the square footage is accurate. If you're buying cash and you're worried about that, you can look if you're buying in like a track community where there's multiple of the same exact model. You can see a run where there's like 15 homes and they're all 2807 square feet. Jon G. Sanchez: Yes. Aaron Clark, Edge Realty: And know that it's accurate. But if they're all twenty eight hundred and seven square feet and this one's twenty eight ninety, there there's something off there you should probably pay to get an appraisal done to have the square footage verified. Jon G. Sanchez: Okay. Can a person come back and sue you as the realtor, the appraiser, everybody if if the square footage was advertised at, let's say, at twenty eight hundred, but in reality it was twenty seven hundred? Aaron Clark, Edge Realty: I mean people can sue for anything, but realistically, will they win? I mean, I think it boils down to did the seller know or did they intend to commit fraud? Did they intend to hide that? could it could have happened to them and then they just never checked themselves, so they had no clue. Which they would still have liability, but then my understanding, I'm not a lawyer, they would have to countersue the seller that sold it to them. Jon G. Sanchez: Okay. Hmm. Sure. Yeah. And and my little word of caution, if you're buying a property with land, this is a big issue. I ran into this one. ⁓ you think you have X amount of acres and you don't. ⁓ yeah, that's ⁓ that's a real coming. That's exactly what happened. That that's right. That's right. Get it get a surveyor out there before you close. That's the best advice I give you on that one. ⁓ All let's turn it over to Jim Poston to wrap us up in the right now traffic center. Aaron Clark, Edge Realty: Absolutely. Dwight Millard: Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: Yep. Or your fence is on the neighbor's lot y yard. That happens all the time. Dwight Millard: Yeah. Aaron Clark, Edge Realty: Corey and I actually did a deal where I had the listing. passed. It was a probe, it was a trust sale. And had buyer. unrelated, wasn't wasn't trying to have buyer. He just had a buyer and the guy was interested, bought the house, ⁓ did the survey, realized our house, my listing, ⁓ the fence about three in the corner. Jon G. Sanchez: Is it? Aaron Clark, Edge Realty: on the neighbor's land. So instead of the fence doing like a typical ninety like this, it did this weird like kind of diagonal thing. And so yeah, we had to deal with that in the process. So it was fun. It happen it actually happens more than people realize. Yeah. Jon G. Sanchez: Really? Yeah. ⁓ yeah. I know. I had a had a disagreement with a neighbor and he's like at the far, far end of our of our land and got in a piss of match. I can't remember what it was about. I was grading I was grading the property. That's what it was. I was I was grading it, getting ready for hay, and asshole bought It's just a modular. ⁓ Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: And we got into piss and match and I ended up having to hire a a ⁓ surveyor 'cause he said, you're grading, that's my property. I'm like, Fuck you, the fence is on you know, I'm on ⁓ side of my fence and ⁓ ended up winning. But yeah, I had to, you know, spend five, six hundred dollars to prove that I was right. You know, it's like, ⁓ Aaron Clark, Edge Realty: Yeah. Yeah. It happens, especially on those older properties that are in like the call in area, the that area or like old sparks. Those zero lot lines homes right in Vict off Victorian, a lot of those are like that or they're double lots or they split a lot when they weren't supposed to. I mean, there's all yeah. Sun Valley. There's a lot of that in Sun Valley. All the trailers, yeah. Jon G. Sanchez: Yeah. Yeah. Yeah. Right. Right. Right. Is there yeah, 'cause you got some land. Yep. Yep. Aaron Clark, Edge Realty: So on the rest of these, you wanna just go quick and dirty or you wanna take our time until we run out? Okay. Jon G. Sanchez: Yeah, let's go quick and dirty. Yeah, let's just go quick and dirty. Yep. We'll start with a solar. I'd never heard about this one before, at least solar panels. Aaron Clark, Edge Realty: ⁓ that's what everybody's doing right now. It's the biggest growing industry right now. Salespeople are making so much money they don't even know what to do with it. And they're teenagers. ⁓ No. They go to your door and they go, We'll finance it. It's a twenty year loan. The payment is X dollars a month, which you're is fifty dollars less than what you're paying for your energy bill. So for you it's like they sell it to you as a no brainer. They overcharge the shit out of you for the panels, so you're paying Jon G. Sanchez: No kidding. I never heard about l lease. I I just thought you had to buy ⁓ Right. Aaron Clark, Edge Realty: you know, fifty thousand dollars for these solar panels stretched out over twenty years, but it's fifty dollars less a month than your more than your NV energy bill, so go for it. And then they get in these bills and then or get in these lease deals and then they go to sell their house. And so this the buyer has to either agree to inherit the lease where it left off and transfer it to them, you negotiate the seller to pay it off at close of escrow. Jon G. Sanchez: Right, exactly. Right, right. Dwight Millard: Yeah. Mm-hmm. Mm-hmm. Jon G. Sanchez: Yeah. Dwight Millard: Yeah. Aaron Clark, Edge Realty: But now the seller's going, that's another fifteen thousand dollars out of my pocket I wasn't prepared for because they think they can just transfer the lease. And then the lender needs clarity on where it's going for them to be able to handle it. And then the worst part is at the end of the twenty years, when it's all paid off, assuming nothing bad happens, your panels all need to be replaced and the whole system doesn't work. Because they have a twenty year life expectancy. Dwight Millard: So right. Jon G. Sanchez: Polycuss. Dwight Millard: Yeah. Yep. Jon G. Sanchez: Thirty seconds. Right. Dwight Millard: And and John, I've never had a good outcome with solar panel sa in the sale. Never. Aaron Clark, Edge Realty: Never. In Nevada, there's absolutely no reason to have solar panels in any way, shape, or form because our power here is so cheap compared to other places. There will be in California, totally understand because you're paying $700 a month and now you're paying $200. I get it. Here Jon G. Sanchez: ⁓ no kidding. That's yeah. Got it. All right, bring that point up. Yeah. Yeah. Right. Right. Here we go. Okay. Perfect. Here we go. Welcome back to the John Sanchez show on Newstock seven eighty KOH with Aaron and Dwight. Aaron, let's go with your phone number, please. Aaron Clark, Edge Realty: six seven three sixty seven hundred. Jon G. Sanchez: Thank you, sir. Mr. Mallard. Dwight Millard: two four zero two zero two two. Jon G. Sanchez: Thank you, sir. right, ten home problems. Would you buy it, negotiate it, or walk away? We're on number five. Leased panels. Never knew this one, Aaron. Talk to me. Aaron Clark, Edge Realty: ⁓ negotiate with extreme prejudice and due diligence because these leases can have all kinds of scary things in and Jon G. Sanchez: ⁓ how does the program work real quickly? Aaron Clark, Edge Realty: So what they'll do is they'll come to your door and they'll say to you, Hey, our solar panels. ⁓ a 20-year loan and the payment is usually a little bit less than what your power payment is. And then they'll give you a story about how it's going to go up and up and up and up and up. But this locks you into this price for 20 years. And so you're paying twenty, thirty, forty, fifty thousand dollars for solar panels over twenty years, which you think is less than your power bill. And then when you go to sell that home, no buyer's gonna inherit that lease. They don't want it. They think they don't see the value or understand it. So you end up usually 90% of the time the seller's going to end up paying it off at close of escrow. So now they're going to come out. Dwight Millard: John, it's usually a it's usually a second on the house when it gets to that size. ⁓ yeah. It's usually a second. Yep. Mm-hmm. Mm-hmm. they don't even know it. The sellers the sellers don't even know they just took a second out. They're just slick. They're smooth. Those solar peoples are smooth. Jon G. Sanchez: ⁓ huh. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: Is it really Dwight? That's how they secure it. Aaron Clark, Edge Realty: Mm-hmm. So it has to be taken care of. Jon G. Sanchez: Wow. And do I you you that has to be paid off before you'll give a new loan. Yeah. Aaron Clark, Edge Realty: Mm-hmm. Dwight Millard: Absolutely. Absolutely and and we we were talking off air. I've never had a solar panel transaction go through. I maybe it's gone through, but it wasn't easy. It just gets into a fight. They don't, you know, who like Aaron said, I don't want it. That was your that was your preference. I don't want it. And and the seller doesn't have maybe the even the equity to pay it off. So it's yeah, it's a tough one. Jon G. Sanchez: Nope. Really? Yeah. Yeah, yeah. Interesting. All right, let's go to number six, Aaron. The HOA from hell. Not buy, not negotiate, run. Yeah. Aaron Clark, Edge Realty: ⁓ ⁓ I I mean I always tell my buyers, drive the neighborhood, figure what you think you would do, see if other people are doing it. If they're doing it, it's probably pretty safe. If they're not, just walk away. Find another neighborhood. An R V what is usually the biggest one. Yeah. Dwight Millard: Which one which one's not? Which one's not? Jon G. Sanchez: And we're talking, you know, we have so many, yeah, so many trailers and boats in this area. Yep. Yep. yeah. So as we did a show a while back, talking about HOAs, this is a this can make or break you. And and many times it's not the money, it's the inconvenience, right? Wait a minute, I wanna I wanna I wanna leave on a Friday, you know, to go camping to, you know, to Frenchman's. Dwight Millard: Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: And I wanna get my trailer there out of my storage. I want to bring it home on Wednesday so my wife can clean it and pack it. And then I get home from work on Friday at five o'clock. Boom, we jump in and go. But your HOA says, Nope, you can't have a trailer in front of your house for more than twenty four hours, or here comes the fine. Right. And then we talked about how easy it is for them to put the ⁓ the lien on the house if you don't pay the bill and I mean the list make Dwight Millard: Amen. Aaron Clark, Edge Realty: Yeah. Mm. They can make you paint your house, they can make you pull weeds, they can you do anything they want. So yeah. Jon G. Sanchez: Yep, exactly. All right. Rapid fire, twenty seconds. House number seven, signs of water damage. Buy negotiate walk. Run. Aaron Clark, Edge Realty: Run. Most likely it's gonna be a run, yeah. Jon G. Sanchez: Number eight, the smoker's house. Aaron Clark, Edge Realty: Just have nightmares with it. You never get the smell out. You never get it out. You'll smell it for ten years. Jon G. Sanchez: on, little painting de ⁓ I you didn't I know. Dwight Millard: Brent. Jon G. Sanchez: Yeah. Number n and number nine the neighbor yeah, and then number nine the the the neighborhood from or the neighbor from you nowhere. job, boys. We're out of time. We'll see you tomorrow, everybody. God bless. Aaron Clark, Edge Realty: Sorry, all smokers.