Latest / The Jon Sanchez Show / The 10 Biggest Mistakes Home Buyers Make
Transcript
- Jon G. Sanchez: Good Thursday afternoon to you. Welcome to the John Sanchez Show on News Talk which it's a pleasure to be with you. We're joined by one of the two co-hosts and he's back ladies and gentlemen. No, not Corey. He back. The one has fulfilled the big shoes for like the last three months. Aaron Clark of Edge Reality. How you doing buddy? ⁓ Good. Aaron Clark, Edge Realty: I'm doing good. So am I like filling in for Corey and Dwight or just one? Do we pick one? Okay, cool. All right, cool, Perfect. ⁓ Jon G. Sanchez: You know what you are. Yeah, yeah, two for one. I'm getting my money's worth out of you today. Two for one, two for one. Yeah, Dwight's tied up today in a meeting and not able to make it. So yeah, you and I are gonna handle the show today as the saying goes. Yeah, can't wait, man. Could be a good time. All right, let me tell you what we do have lined up for you, speaking of which. So today what we're gonna do with Aaron is this. We're gonna discuss the 10 Aaron Clark, Edge Realty: Thanks. Jon G. Sanchez: biggest mistakes home buyers make. We'll call them some of the common ones. But more importantly, let's make sure that you understand how to avoid them. And we've directed this to where it doesn't matter if you're a first time home buyer, whether you're moving up in your home, downsizing, ⁓ purchasing investment property, doesn't matter because one bad decision can cost you thousands, if not hundreds of thousands of dollars. So we're to cover things like the financing mistakes, the inspections, the insurance, the negotiations. And again, some of the common pitfalls that are going on in this marketplace, Mr. So I think, ⁓ yeah, you're definitely going to have to fill in for both Dwight and for Corey on this side of it. But I think between the two of us, we can get this handled. So, know, I know like this topic, Aaron, ⁓ and really the that in life, of course, and in business, especially, and when we're dealing with money, if we can avoid lot of the major mistakes, right, we're all going to make mistakes. But if we can avoid the major ones, we're gonna be so far ahead of everybody else, right? And especially in our own pocketbook. And I think that's one of the great things about this topic tonight how do we really these mistakes? Because in your obviously people are with a significant amount of money. Lawsuits happen and mistakes happen by everybody involved. And so again, our tonight is we're gonna lay out what these mistakes are and Aaron's put together about of them and again. There's many more, right? We probably could do a thousand mistakes, right? But every day for the next five years, all the mistakes avoid. But yeah, so it's going to be a good one there. All right, before we get started in the stock market side of things today and what a day that it was today, ⁓ I to just send a ⁓ really heartfelt you for all those that attended my webinar last night. We had an incredible time. Great feedback from all of you. And again, I just to thank each and every one of you. Aaron Clark, Edge Realty: Yeah, we could do a show every day for a month on mistakes. Yeah. Jon G. Sanchez: going to try to make it a goal that we're doing at least two of these estate planning webinars a month. because there's many things I want to teach you about these estate plans, living trusts and everything that's involved with it. But we had a had a great event. If you missed it, please hopefully you join our next one. It'll be obviously on a different topic. ⁓ And then also, you did miss it, most people don't do this, but I'm going to. I don't care if you did miss it and you want to you want to, you know. listen to what we and watch what we covered yesterday evening at six o'clock. Send me an email, JohnJowin at SpecializedTrust.com and I'll be more than happy to send you the zoom recording of that. That way again, you can watch it at your leisure because I know a few people not able to make it and at the last minute. And so I promised them ⁓ them the recording and I'll do the rest, ⁓ that for the rest of you also. Okay, that housekeeping set, let me get down to the stock market side of things today because Mr. Clark, what a day ⁓ it Did you see where this market finished at today? Aaron Clark, Edge Realty: I saw part of it when I was in between appointments and it was like it was a ticker on the bottom of something else I was watching and I was like, ⁓ my gosh, are you kidding me? Yeah, was shocked. Jon G. Sanchez: Yeah. Yeah. Yeah. Is this right? Yeah. were coming so close, believe it or not, to a thousand point gain on the Dow today. As was doing the stock updates this morning, ⁓ they up another hundred from the report 30 minutes ago. Up another hundred from the report 30 minutes ago. It was just one those days where the stars aligned. Yields were down. Oil prices were a little bit today, but market didn't care about it. what it did care about is a lot of the heavyweight stocks inside the Dow Jones Industrial Irish were the the leaders like the Goldman Sachs is of the world Etc American Express and propelled this market up. This one of those days You just kind of dream about so here's how finished then I'll tell you where the strength and some of the weakness was So the strength was the Dow side record close on the Dow 875 point gain on the Dow one point seven three percent ⁓ closing at fifty one five hundred and sixty one Nasdaq struggled throughout the day for most of the morning it was down triple digits and we clawed our way back to almost positive territory finished down 23 and the S &P 500 for the day finished up 31.41 % to a close of 7,584. The economic reports were somewhat light today. I'm not gonna bore you with those, but let's talk about where the strength and the weakness was. excuse me, on the downside of things, big strength was United Health. But again, a Dow component stock gained 5.16 % $19.47 rise to 396 47 a good earnings guidance We had Blackstone up seven and a half percent eight dollar and twenty seven cent gain Humana was up because of United Health up about twenty two dollars and thirty five cents Google finally starting to recover a little bit. It's had a tough week up thirteen dollars and sixty nine cents to three sixty nine thirty seven But where we saw the weakness again, we've got to watch this closely last Couple days now, we're starting to see some of the weakness in some of the chip stocks related to the AI trade. For example, Broadcom, AVGO, symbol, lost $60.32 today at 12.59 % loss to 418.91. Sienna was down $84.74, 13.66 % decline to 535.63 and CrowdStrike lower by $28.52, 3.81 % loss to 719.09. Really no specific news. The earnings have been pretty much coming in in those names and in that sector, pretty much have been coming in in line with expectation, which is never good enough, right? Wall Street is spoiled, they wanna see numbers that blow past earnings expectation. So we're seeing that, plus of course we're seeing profit taking again. Those names were just on a tear over the last month or so. So a little bit of profit taking, nothing again whatsoever to be worried about. Mr. Clark, let's kind of bring everybody up to... the up-to-date on the year-to-date numbers because you know it's been it was a heck of a May and June starting off pretty doggone good also listen to these numbers folks Dows are laggard with a seven point three percent gain that's the lager we to the S &P 500 year-to-date up ten point eight percent the NASDAQ is now higher by fifteen point four percent and the Russell the little guys eighteen point three percent increase so yeah it crazy I mean here we are you know ⁓ Aaron Clark, Edge Realty: That's crazy. It's funny because the cycle of the news and everything and everything's always so negative. So you walk away thinking, ⁓ my gosh, everything's negative. I've lost so much money. And then you look at the actual percentages and the numbers and people don't realize it's like, hey, it's long-term number one. And number two, we're seeing massive movements. It's a huge shift going on right now with all this AI stuff. Jon G. Sanchez: Yes. It absolutely is. It absolutely. I think in all men, I'm in this camp. I don't know about you, Aaron. You're very tech savvy also. But I don't think in my mind I ever thought that AI was going to have the impact that it is having on the stock market. How about you? OK, yeah, a lot of people are that way. Aaron Clark, Edge Realty: I didn't know I did not. I mean, I thought it would have some sort of major move in a certain direction, but I wasn't quite sure. I actually never thought you would see such dramatic increase on the hardware side with the scarcity of like RAM right now and and having to ramp all that up as much as we're doing so with data centers and things like that. I guess we should have, but I guess we just didn't understand it. Jon G. Sanchez: Right. Yes. Yeah. Yeah. Yeah, I know. I know we should have. Yeah. In retrospect, you look back and you go, geez, know, the V8 slapped to your head is like, yeah, I should have I should have thought about that. but trust we're not alone. I mean, there's some ⁓ lot people than myself on Wall Street that are saying the same thing as I know and a clue. I think I the revolution of AI and all of the and cicilla re benefits of it, right? Like you said, Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: hardware, software, chips, I mean, so many different areas. I think we're probably a couple years ahead of what thought we were gonna be as far as the maturation AI, right? The data, I never in a million years thought we could see data centers pop up like ⁓ modular mean, we see here locally, we of course see it nationwide. Aaron Clark, Edge Realty: No. Jon G. Sanchez: know, and obviously the amount of money that it's costing. mean, again, Google a couple days ago announced they have to go raise $80 billion and borrow $10 billion from ⁓ Hathaway for, you know, data center build outs. And these things are just, ⁓ needed everywhere. But it's a fascinating time. I saw a comment, I forget who it was by the other day. And they said this is going to be far greater impact, positive of course, to the economy what we ever saw with the dot com era, ⁓ Aaron Clark, Edge Realty: We're already seeing that, 100%. Yeah. Jon G. Sanchez: And I agree with this. Yeah, we're already seeing it. You're absolutely right. We're already seeing it. It's absolutely fascinating. Quick question before we go to break and while we're on technology. What is your feeling being the tech guru that you are? What is your feeling on this announcement this week with Nvidia creating a new chip for Dell and Microsoft and lot of the hardware makers? that's really designated for operating AI in a laptop and in a computer. You think it's kind of BS or do you think it's, okay, go ahead. Aaron Clark, Edge Realty: I mean, I think we're going to see leaps and bounds. No, think it's arms branch of quantum computing that we're going to see just accelerated explosion taking place in growth of technology like we've never seen before. I mean, far surpassing what anybody's expectations are. Jon G. Sanchez: Yes. Right. Yes, yes, yes. think unless you're Jensen Long, the CEO of Nvidia, don't know if anybody ⁓ the crystal ball. we've I remember when AI started to become prevalent, you know, a few years ago. And you go to Best Buy or wherever Apple store and, ⁓ know, not much Apple store, but mainly Best Buy where they have all these different brands of PCs and, this PC is for AI and everything. I don't think that took off. It's like. Okay, what are you doing special versus a non quote AI, you know specialized laptop now with the with a new chip that Nvidia has come out with they're saying it's just gonna revolutionize the computing power to your point and who knows, you know All the great things that are gonna come out a stronger computing power and then quantum which we don't even haven't had a chance to really talk a lot about on this show that we need to at some point because that's really the next generation that's you know, take a look at IBM the leader in quant quantum computing at this point at least and yes Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: It's a fascinating time to be alive. It really is, especially for tech junkies like you and I. You gotta get the latest and greatest things out there. anyways, fun times, fun times. right, so you're up to date on the market. That means we get an early start when we come back and get down into our topic. Again, ⁓ the most common mistakes that Mr. Clark sees in the world of real estate, whether you're homebuyer, seller, et cetera. We're gonna tell you what those are and most importantly, how to avoid them. ⁓ Aaron Clark, Edge Realty: You Yeah. Jon G. Sanchez: Welcome back to the John Sanchez show on New Stock 780k which quit saying those things during the break Aaron Clark. Aaron Clark eventually our very special guest of course co-hosting with me this afternoon. Alright once again our record setting day for the Dow up 875 1.73 % NASDAQ down 23 and the S &P higher by 31 points. So great great solid day across the board. But it is time now to move into the purpose of each Tuesday and Thursday show and that is to highlight the incredible knowledge that Mr. Clark has. Aaron Clark, Edge Realty: I will. Jon G. Sanchez: and we're gonna do exactly that. I said at beginning of the show, we're gonna discuss 10 of the biggest mistakes that home buyers make. How to avoid them, that is our goal. Let's get right to it here, we got a lot to talk about. We're gonna start with mistake number one. I've heard you say this one a million times. You fall in love with the property before you do the math. Explain yourself. Aaron Clark, Edge Realty: Yeah. Yeah, mean, always good to start with a story in these situations. ⁓ mean, I can't tell you how many times I sit down with somebody and I go, okay, what are we looking for? What's the budget? Whatever. And we sit there, we crunch all the numbers, we try to stay within it. And then it's I don't know, they don't find what they want or they just get a wild hair, you know? And ⁓ they outside of that budget and realm and they see something they really like, of course. And they go, can we go see this? And they go, Jon G. Sanchez: Yes. Of course. Aaron Clark, Edge Realty: not where you said you wanted to be and they're like, well, we still wanna see, we just wanna get an idea, we just wanna see it. And I go, I'm telling you, you don't wanna do that. No, but we just wanna do it. Okay, fine. So, know, sometimes it's better for people to learn from experience rather than the of somebody else, So then you go and see it, they fall in love and then they're going, okay, now how do we make this happen? Which is way above, what do we sell? Who do we call? Which parent do we ask for money? ⁓ Jon G. Sanchez: Yes, yes, yep, yep. this work. Yes. Aaron Clark, Edge Realty: Can we call Dwight and see if we can get more money? I know we said we didn't want to be stretched this way. And it happens all the time. And it's because people get in mindset or position ⁓ not to that budget and trying to reach beyond. ⁓ And budget is there to keep you in the framework. It reminds me of like, you know, when you go bowling for the first time and they put the bumpers in the gutters so you don't, when you're little, like you got to stay in the middle. Like you don't need to go out of that. If you do, ⁓ Jon G. Sanchez: It does. Yep. Yep. Yes, yes. Aaron Clark, Edge Realty: you fall in love with something and then you try to make your budget fit what you want and what you're emotionally attached to instead of the other way. Jon G. Sanchez: Yeah. Yeah. feel like I'm confessing to my father here, Father, Father Aaron, but I but I'll, as I'm an open book. The last three real estate transactions I have done. I'm number one, I shopped emotionally. And I did everything. ⁓ I everything you just said. Everything you said. Yeah, it happens because you Aaron Clark, Edge Realty: Yeah, everybody does. Yeah. ⁓ Jon G. Sanchez: You see something and I think Cory said this many times, you visualize yourself in that property, right? The Christmas tree, the family gatherings, this, the that. And then, you know, me being Mr. Optimistic, it's like, we'll figure out a way to make it work. And knock on wood, it all has worked out. But my, out of the last three properties, the second one was when I bought my home in Lake Tahoe in the Tahoe Keys. Can I ever tell you that story real quick? Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: So know me, I never take a vacation, right? So this was 1999.com going on. Like, you know what? I just broke out of my own. just went independent earlier that year. Like, okay, ⁓ I'm take time. So we're living in Bakersfield. I told the like, I'm gonna take you back to my hometown of Reno, right? I wanna go and I wanna go see my football coach and talk to some friends, this. ⁓ So we rent a in the Tahoe Keys. Aaron Clark, Edge Realty: You Jon G. Sanchez: And all the family from around the country came and we had the most incredible week and I worked and know, had a little leisure time. The we were getting ready to leave, we're driving out of the Tahoe Keys and I look at my, ⁓ actually were going down to go get some coffee and I looked at my wife and I said, doesn't this just feel like home? She goes, yeah, it does. And I said, okay, how we can, instead of know, throwing away all the rent and you know, because we know we want to come back here for a vacation. You know, who am I? Because I never take a vacation. I said, let's just buy some. So we pull into of the local real estate offices in the Keys and we go in and we meet with the agent of the day or the broker of the day and said, yeah, we really like the Keys. What do you have? goes, let me show you. We drive over. We look at one house, one I bought it right on the spot within a half hour. Within a hour of getting ready to drive back, ⁓ really happy. a half hour, I bought the house. I opened escrow, but here's the icing on the cake. So all the family was still there ⁓ in town. Aaron Clark, Edge Realty: And you bought it. That agent was really happy. Jon G. Sanchez: So we go over to Zephyr Cove, right? And it was a beautiful day, was in July, it was a beautiful day. We go over to Zephyr Cove and we're sitting there and the family's on the beach and the music's going and the drinks are flowing and everything is great. Well, my brother decided that he really wanted to serve me a lot of Bloody Marys. And so he serves the Bloody Marys and all of sudden, and this, we didn't have cell phones then, I had pagers. So I get a page from the real estate agent at about, I don't know, six o'clock and, you know, kind of two sheets to the wind at that point, to be honest. And she goes, John, it's so and so. I said, She goes, congratulations, your offer was accepted. And I went, you got to be kidding me. I ⁓ didn't want it accepted, but really it's accepted. And thing I know, and I just bought a 3,500 square foot house like four months before in Bakersfield. And I'm what am I doing? And then 9-11 hits. ⁓ So we Eskimo in July, then September 9-11 ⁓ hits. And that thing was going on, we hadn't closed Eskimo yet. What am I doing? Aaron Clark, Edge Realty: ⁓ my gosh. Jon G. Sanchez: There's a perfect example of an emotional buy. 3,500 square foot house, I was out on a Saturday by myself. like, I'm gonna go take a drive. What do do? Go an open house. you know, I could never afford this house. do it. Big, beautiful, giant 3,500 square foot house, only a year old, bought it right the spot. Didn't even bring my wife over to look at it. Open escrow right on the spot. How stupid am I, right? So yeah, so that's, and kind of the thing with a ranch. I woke up one day and I said, I'm tired of living in the Tahoe Keys. I'm tired of my neighbor being five feet from me. I need to spread my wings a little bit. drive out to Smith Valley and find this property online, drive out to Smith Valley and drive down the driveway. was a dreary, dreary, snowy day in February and open escrow about an hour later on that one. So yeah, talk about impulses, you're preaching to the choir. Luckily everything worked out. Everything has worked out. ⁓ But yeah, feel bad if you have your own stories on that one. ⁓ Oh, all right. Here's the other mistake I made. I didn't get pre approved first. So that's going to be your second point when we come back. Not getting pre approved before you go on one of these, you know, spur of the moment buying sprees, right? Welcome back to the John Sanchez Show on New Stock 780K with Aaron Clark of Edge Realty. Once a stellar day for the Dow. The ⁓ Dow 875 points. Still hard for me to say ⁓ that, points. It really is. 1.73%. Nasdaq down 23 and the S will be higher by just 30. All right, just got warmed up and get into our topic once again. The 10 most mistakes home buyers make. And ⁓ we said the first I embarrassed myself and said all the mistakes that I have made. ⁓ Aaron Clark, Edge Realty: Crazy. I'm Jon G. Sanchez: in love before doing the math, shopping emotionally. All right, let's go to number two. Not getting pre-approved first. Yep, Aaron, I fell into that one also. So let's talk about that one and the importance of it, why it's such a mistake. Aaron Clark, Edge Realty: Yeah, mean, a lot of people think that they can afford something just because they're a mortgage calculator, whatever else they know how much money they have down. They don't understand. Dwight talks about this all the time, that your credit score has so much effect on what the cost to borrow money is. So you might be using ⁓ you've heard out there on interest rates. And unfortunately, some people out there still think rates are three and half percent, right? And so you're crunching numbers on all this information. And then, and I hear it all the time. People will call me and they go out of the blue. My friend told me to call you. We found a house we want to buy. And I'm like, okay, well, where are you at in the process? That's the first time we've, we've talked. ⁓ we, just know we can afford it. Okay. Well, what does that mean? You know, and you got to ask a million questions. Finally, you realize they haven't met with the lender. No one's ran their credit. They don't know what their budget is. They don't know what it costs. They don't understand the cost of insurance. They don't understand that they're in a flood zone. Jon G. Sanchez: Right. Yeah. Yeah. Aaron Clark, Edge Realty: They don't understand anything. So you have to get pre-approved first so that we know the budget. And here's the thing, even the most stellar person who might be using Credit Karma and all these other apps, whatever, that tell you that your credit score is one million points or whatever, none of those, one, they're not accurate, and two, you don't know until Dwight runs your credit you somebody that's scamming you and... Jon G. Sanchez: Yeah. Right. Mm-hmm. Yeah Aaron Clark, Edge Realty: stealing your identity and that's when we pop something up that's gonna take us six months to a year to fix. So that's why I always tell people if you think you might wanna buy a home, the best time to get pre-approved is now. And if you don't think you're gonna buy a home in the next year or so, guess what the best time is to get pre-approved? Now. The answer is always now because it gives you a trajectory to aim for and a budget to work towards. Because also, even if you don't wanna buy a home today, Jon G. Sanchez: Yes. No. That is excellent advice. Aaron Clark, Edge Realty: If you do meet with Dwight, you run all the numbers and you just get something, gives you a roadmap to work on and helps you understand, okay, if I really want to better myself and put myself in a better position to buy, I might be really far away from it, but now I have a goal. And in order to get to that goal, I need to save an extra $500 a month for the next three years, which is when I'm ready to buy a home or whatever it is. So get pre-approved first. Jon G. Sanchez: Mm-hmm. Yes. Yes. Right. Mm-hmm. Right, right, right. Do you come across many people that are that financially disciplined though? Aaron Clark, Edge Realty: No, one is. ⁓ mean, I have clients that make so much money, I just scratch my head and go, how do you do it? And they can't pay cash for anything. Everything's borrowed and they can barely put a down payment on. And I just scratch my head and go, okay. So true. I mean, in a perfect world, we talk about budgets and finances and savings and people struggle. But, you know, I look at it like if we can get a couple percentage points closer to doing better. Jon G. Sanchez: Yeah. Yeah. So was wondering. Right. Right. No kidding. Yeah. Aaron Clark, Edge Realty: then it still progressively helps us to be in a better situation in the future. And just like compounding interest, it compounds our ability to buy. I don't know if you can hear me, John, but I have lost you. I cannot hear you at all. Jon G. Sanchez: There we go. Sorry, button got clicked. There we go. So let's go to ⁓ number three, which you talked a lot about. And boy, is such a common especially for first time buyers. Mistake number is focusing only ⁓ on the payment. Aaron Clark, Edge Realty: I hear you. Yeah, so people will use those mortgage calculators, especially on the fancy websites like Zillow and all that, that try to tell you exactly what your payment's gonna be. It usually will only include your interest your principal payment. It does not include your taxes, your insurance. It's not gonna include, like, you know, a lot of people nowadays too, we have HOAs, yep. It doesn't include maintenance costs. Jon G. Sanchez: It's always. Aaron Clark, Edge Realty: If you think that buying a home just is whatever the payment is gonna be, even if you have all those calculated, it's $2,400 a month, okay, great. So your payment's $2,400 a month. Well, next year, when your insurance renews and they determine that now rates are gonna go up, your taxes are also gonna go up. Well, your mortgage payment just went up $150 a month. Oh, and by the way, the HOA all voted and they decided that they're gonna do a special, I have a client right now, they're doing a special assessment on a building within a complex. in a condominium where the building is sinking. So they're charging an assessment fee to everybody whose building isn't sinking to pay an extra, like, I think it's $5,000 over the next two years. Well, that's gonna increase their payment by several hundred dollars a month. So you gotta make sure that those are calculated as the ability to pay those, and then your maintenance costs. You need to have a plan in case your dishwasher goes out or you're... Jon G. Sanchez: Hey, what is ⁓ Aaron Clark, Edge Realty: These are expensive items and you don't want to be incurring another finance mortgage loan type thing on an appliance. Jon G. Sanchez: Right. Right. Right. I see this especially with young people, like I said, or people that have been out of the housing market for quite some time. They have no idea these these additional costs, especially the property taxes and the homeowners and the HOA. So you nailed that. ⁓ go to mistake number four. Waiting for the perfect interest rate. Right. If Dwight was here, he'd say now is the perfect interest rate. Right. ⁓ always is. So let's talk about that one. Aaron Clark, Edge Realty: Yeah, I mean, we always talk about this. People try to time the market perfectly. I have clients right now, we're in escrow, they're floating their mortgage and ⁓ lender says, okay, well, we're gonna try to lock it at the perfect time. And I always tell them, can you afford it right now? Do you feel good about it? And they go, yeah, I'm gonna go lock it. Because I don't know what gonna say or what's gonna happen in the market or what missile's gonna get sent to what country. It's gonna affect your rate tomorrow. So if you can afford it now, Jon G. Sanchez: There you go. trip. Great advice. Aaron Clark, Edge Realty: Lock it. If you can afford to buy, lock it. Because you can always refinance down the road or change your situation if it doesn't work or sell the house because you can't afford it. But if you get into a position where you're not locking and you're playing that game and rates shoot up and your increase in payment goes up $300, $400, $500, now you're in trouble. Yep, exactly. Jon G. Sanchez: Right. Yeah, and you're disqualified, right? That's the thing, because remember, you're not done until that escrow is done. You're right, Dwight runs that credit for the last time. And yeah, we've seen it all happen. right, let's go to number five, skipping inspections. I know this is a big pet peeve of yours. Aaron Clark, Edge Realty: Yes, we always want to make sure we're getting inspections and the very ⁓ we to get a home inspection which is kind of like when you go to your doctor, your general doctor and you say, hey, I don't feel good and then they kind of check everything out in your whole body and ask you a bunch of questions and then they determine, ⁓ maybe it's your heart. We're going send you to a heart specialist, right? Or a cardiologist. ⁓ Just a plain old home inspection, they'll check everything and then they can tell you. Jon G. Sanchez: Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: hey, know, this furnace is acting funny. It's beyond the scope of my expertise, but something is wrong. We need to get an HVAC company in here. So we want to get roof inspected. We want to get plumbing issues checked. We don't want to buy the home, afford everything that we just talked about on mistakes number one through four. And then all of sudden find out that something is in catastrophic state and it goes out on us. And that's $20,000 that we could have prevented by just getting the right inspection. which cost me a couple hundred dollars the front end and we made the seller pay for it because they would have to fix it anyways. So get those inspections. Jon G. Sanchez: Yeah. I had a friend a couple years ago. Matter fact, I brought Richard Lason on the deal. Pardon me. older home and great They rented it for a number of years. Seller finally said, know, Orlando friendly said, Hey, I want to sell it. Great. We're to jump on it. He happened to be a contractor. They go through everything. They get down to the inspection. The foundation was basically crooked. Right. And, you Luckily the home inspector caught that even the contractor himself he didn't catch it but the home inspector caught it and obviously they they turned away from that deal so remember when my father bought a house over off of Mayberry same it was a brand new house but guess what there was a flooding problem right they didn't when they when they graded the housing track they didn't put the right swells in and everything first time swales the first time it had a bad rain guess what his crawlspace his house flooded ⁓ massive massive of damage luckily the home builder picked it up But those are things that can happen. get into foundation, especially, yep, exactly. Yeah, especially the older homes, get into termites and I mean, we all know that. yeah, do not skip on that inspection. Let's squeeze in number six real quick. It's gonna be a short one, because you've already touched on this, ignoring the insurance costs. People that have been out of the home market or haven't been, or never been in there, they have no idea what's going on with homeowners insurance, fire zones, floods. Aaron Clark, Edge Realty: happens all the time. Yeah, we're having a lot of issues with fire zones and insurance cancellations, non-renewals, things like that. Now we actually in our new templated offer and acceptance forms that we use through the MLS and the Association of Realtors, they added a new contingency in there of insurance, being able to get that approved and being able to check with an insurance company to make sure that it is covered and able to be covered. So we need to make sure that on the front end. Jon G. Sanchez: Interesting. Interesting. Okay. Aaron Clark, Edge Realty: And we can avoid those things a lot by just knowing, having an experienced realtor is going to say, hey, those are in a flood zone or those have this issue or those have that issue. Jon G. Sanchez: Right, right, right. All right, very good. we're gonna come back with number six, which is a very, very important one, draining dollar that you have just for the down payment. We're talking the 10 biggest mistakes that buyers make. Welcome back to the John Sanchez Show on Newstalk 780K Aaron Clark of EdgeVille at your phone number Mr. Clark. Aaron Clark, Edge Realty: 673 6700. Jon G. Sanchez: Beautiful. Thank you. All right, I forgot to mention, obviously in Dwight's absence, the mortgage side of things today. So according to Mortgage News Daily, the 30-year mortgage nationwide down three basis points for the day to a 6.58 % number. All right, we're talking again about the 10 common mistakes that buyers make. And Aaron, this is a very good one that ties in perfectly with your first couple points, which is draining every dollar for the down payment. Let's talk about that one for a second. Aaron Clark, Edge Realty: Yeah, mean, you know, Dwight's going to say, you know, how much money do you have down payment wise? Here's the rate breakdown, et cetera, et cetera. I get people all the time. They go, you know, let's say they're putting $300,000 down on a house and that's everything. It's like they act like if they put $275,000, it's going to have such a drastic impact on their mortgage. And it's like, no, listen, you said you want to come in here. You want to paint, you want to remodel this, you want to buy this, you need to set up that whatever. Jon G. Sanchez: You Aaron Clark, Edge Realty: take the 25K and do it so that you're not borrowing on your credit card for that. That's a way better opportunity for you. So you wanna make sure you have some reserves so that you can pay for things like that. And you when you move into somebody else's house on a resale, there's stuff that is left over from them that you're gonna wanna get rid of. know, carpets, things like that, paint. That stuff costs money, especially nowadays. mean, you used to be able to buy a gallon of paint for like 15, 20 bucks. It's not the... Jon G. Sanchez: Right, right, right. Yes, it is. Yes. Aaron Clark, Edge Realty: It's almost a hundred dollars for a gallon of pain to the good stuff. ⁓ yeah. It's crazy. Yeah. Jon G. Sanchez: Is it really? Oh my gosh. Unreal. Unreal. So yeah, don't drain the every dollar you have for the down payment. Let's go to number eight. Buying too much house. Oh yes. Keeping up with the Joneses as we like to call it. Aaron Clark, Edge Realty: Yeah, exactly. So, you know, I get people that get in a position where they have to have that house because they're keeping up the Jones things, whatever. And then they start calling someone like you and saying, hey, we want to take from our retirement to buy this house. And it's like, listen, that money, that's where I think the number one mistake people make within that realm of the mistake of buying too much house is they start pulling money out of things that are, I mean, that money is growing. their to pay their future selves and get caught up in, but I have to have this home, I gotta have this, I know I can't afford it, but I need to figure out a way to afford it. And so you steal from yourself, your future self, your future retirement, just to have something that you don't really need. So that's why that, going back to number one, the budget is super important and sticking to that budget, don't branch out no matter what. Jon G. Sanchez: Mm-hmm. Great advice. nine, ignoring the resale value. ⁓ that's a good one, because a lot of people that never think about the resale, they're too excited at the purchase. Aaron Clark, Edge Realty: Yeah, like it kind of relates to to number eight because I'll have people that they really want to be in a specific neighborhood. There might be a house that's on a corner where it's a busy street, whatever. And they go, it's no big deal because at least we can get in that neighborhood. And then they call me five, 10 years later to sell that house. And the market isn't quite what it was when they were trying to buy. They're on that busy street or right next to a school or something like that. And then they get into a position where they're trying to resell that house and people don't want it. Jon G. Sanchez: Mm-hmm. Aaron Clark, Edge Realty: and the demand isn't high enough for people to look beyond that. So you gotta think about your resale value in the area that it's in, where it looks, the direction it faces, the layout of the floor plan, et cetera. Absolutely, yeah. Jon G. Sanchez: And future growth, right? Future growth. If you're buying at the edge of a housing track and there's empty fields behind you, what's gonna be coming that way? Who knows? But yeah, it's. Aaron Clark, Edge Realty: Yeah. Or like right now, the big controversy in Red Hawk is them getting rid of half the golf course to build homes. Those people are livid because that's not what they bought when they got there. Now that something you can't really foresee, but you got to think about the fact. What about all those people on Northgate golf course that during the crash, they stopped the city, stopped paying for the golf course. The homeowners couldn't afford to pay for it as an HOA. So it just turned into desert. They just let it die. Jon G. Sanchez: That's right. Aaron Clark, Edge Realty: those are the types of things that you are taking a bit of a risk depending on that and that will affect your resale value. So you want to be cognizant. Jon G. Sanchez: Well, not only that, but here's a newer one and not so much in our area, but let me tell you, you go back East and that is data centers, right? There's a big controversy right now. People, you know, they're in their nice, quiet little, you know, 123 Main Street house. Everything's great. And all of a sudden here comes Amazon Met or somebody building a massive, massive data center right down the block, right? And everyone's complaining about the humming of the ACs, complaining about everything. That's something that again, Aaron Clark, Edge Realty: Yeah, data centers are huge. Mm-hmm. Jon G. Sanchez: very common nowadays. Aaron Clark, Edge Realty: Yeah, and the other thing that we're seeing, not so much, but it's happened to me a few times, there some urban development with halfway houses and things like that that are popping up. And you do have to think about that. I you don't really have much control over it, and it can happen after you've already moved. But that does have an effect on people don't want to live in that situation. Jon G. Sanchez: Right, right. Right. Yep. Absolutely. No doubt about it. And our mistake number 10 not thinking long term, we pretty much covered that. great, great eye opening pieces of advice. That's the bottom line. Just careful. And this is where again, a great professional agent like Aaron and Corey come into play. They will not let these things happen to you. ⁓ Great my friend. We'll do it again tomorrow on the john Sanchez show. God bless. Have a great afternoon. Aaron Clark, Edge Realty: How did I lose you on that? Was it something I did? When you were muted? ⁓ I was like staring at your mouth trying to lip read what the heck you were saying, knew what was next. ⁓ need a cue or something when we're at that last 15 seconds, so I don't accidentally talk. Jon G. Sanchez: Beautiful. What do mean? you lose me? I had a cough and I hit the mute button and I thought I unmuted it and it didn't. So that was ⁓ again, all me. ⁓ But you handle that very professionally. John, we've got some problems. I'm gonna sit there and talk and talk. I can't tell on this end other than the ⁓ or the. I know I was thinking the same thing. Yeah. Rub my nose or something. don't know. Yeah, it's hard for you. can't hear it. All right, buddy. Well, great job as always. Pleasure to be with you. All right, man. Have a good one. Bye. You too. Aaron Clark, Edge Realty: Yeah, I don't know. Alright, we'll talk to you later. Have a good weekend. Bye.