Today we talk about what options you have to win out over cash offers when bidding on your dream home.
To learn more:
https://barefootbungalowrealty.com/
Barefoot Bungalow Homes
9200 Bonita Beach Rd SE, Suite 100
Bonita Springs, FL 34135
(239) 350-5535
Today we talk about what options you have to win out over cash offers when bidding on your dream home.
To learn more:
https://barefootbungalowrealty.com/
Barefoot Bungalow Homes
9200 Bonita Beach Rd SE, Suite 100
Bonita Springs, FL 34135
(239) 350-5535
Welcome to the live your best life barefoot podcast with your host Mary Morrison and the team at barefoot bungalow Realty.
Speaker 2:Good morning, and welcome to the next episode of live your best life barefoot. I'm Ruth, and I'm here with Mary today. Good morning, Ruth. Good morning. How are you?
Speaker 3:I'm doing really well. How are you? Good.
Speaker 2:We're gonna shake things up a little bit and do things a little bit different. We're getting a lot of questions about the market and what's gonna happen. And what should we do? So today we're gonna talk about, um, what the IPO, the most important consideration in the market is today. And then two tools that we have in our tool chest to help you out with those.
Speaker 3:Yes. So we have some really interesting, um, days going on in the market. Very, uh, it's an interesting time to be in real estate. And, um, I feel like we're living a reality TV show every day,
Speaker 2:Every day.
Speaker 3:<laugh> well, wake up to new interest rates and new market shifts. So it's a, it's a fun time actually. It's change. It's making it exciting. Exciting, right? Yep. But there are three elephants in the room.<laugh> not, you
Speaker 2:Take it offensively a little. Okay.<laugh>
Speaker 3:There are three other considerations. Is that better? Better. Okay. So we get on a regular basis that, um, people have their home needs. We, we need to place to live. That's a fact, that's a fact, we all need a place to live. Um, but the three elephants are number one interest rate. That is the big one. That's the big one. And it truly is the number one thing that we get the most question<affirmative> and the good news is last week. And you know, this is ever changing again. The interest rate actually went down a ti
Speaker 2:A little.
Speaker 3:Yep. Yep. Just, but it
Speaker 2:Went down,
Speaker 3:But it went down. So there's that, we're just gonna throw that at that bit of good news, but if you're listening to the news, it does stress you out.
Speaker 2:It stresses me out a lot. Yeah. I can't even watch it anymore.
Speaker 3:Right. So if you're, if you're listening to the news, it's, it's goo goom and gloom and the interest rates are gonna be outta control and the world's gonna end, right. The aliens are gonna invade and why buy a house. So what we would like to talk about is some ideas that you can do in order to figure out how to calmly and collectively move forward with whatever your home needs are. That's
Speaker 2:Awesome. I can't wait<laugh> even though I know what they are, but it's a good, they're great options.
Speaker 3:So first of all, we're gonna clarify, this is not financial advice. No, if you wanna take what we say and explore it, make sure we will handle all the real estate questions and we will help you, uh, navigate all of the real estate end of things. Make sure any financial considerations you take to your financial advisors. Yes, yes. And what we have some great people for that too. We do too. We have some great financial advisors we can. Yeah. So if you, if you need some people, um, to help with that, we can help you out. Yes. The number one thing I want you to do, if you're considering buying a house or selling your house is I need you to just get equipped with a mortgage calculator on your phone. Um, take there. There's some really good ones, take everything out, put the interest rate and the cost of the house. And if you put those two things in at the current level, so look at the house you're, you're wanting to buy the, a, the average house in, um, Lee and Callier county is five 50 right now. Yeah. About that. Yeah. There's a lot of condos. So let's, let's say you're doing a bread and butter, which is what we call the, the basic house that everybody's gonna need. Um, at five 50 with, I think it's like a 5.8 interest. Right. Right now, right now, for an average interest rate, put those numbers in and see what your monthly calculation will be. Get rid of everything else. You are gonna have other considerations. You're gonna have to pay taxes and all of that. But that's a given that's a given. Yeah. No matter what the market is. So just get rid of everything else and just come up with what your monthly payment would be at the current rate. And then add in if our interest rate does go up, what they're talking about, you know, if it does go up to six or 6.5, like put those numbers in and watch what your monthly payment does, see how it changes. Yeah. Yeah. It's hard to do on a podcast, but I trust me, the numbers are staggering. And then we're going to dive into the next part of what everybody is. The other elephant, elephant. Number two is a recession. Everybody's worried it's gonna crash. It's gonna crash that we're gonna crash. So number two, let's just pretend like it is gonna crash. So do those same scenarios and put in the interest rate. And then this time I want you to also drop the price of the house. Okay. So what would it take in order for the house, um, price to drop, to get? So you,
Speaker 2:So let's say we start at five 50 and we think that market's gonna crash. I'm gonna put in, like, I think it's gonna drop to 400, my house only gonna be worth 400,000. Right. So see what that's gonna come out to. Right.
Speaker 3:See, see what happens to your, and make sure you write down that first,
Speaker 2:The first estimate,
Speaker 3:The first Testament, but you're gonna be tempted because in our minds, when we hear the market's gonna crash, you're gonna be tempted to drop it to something like 400,000,
Speaker 2:Which is ridiculous. It's not gonna drop that much. Right? Well,
Speaker 3:It could, we have a really great report out of how many, how for the last six, three sessions, we'll, we'll post a link to this. How, how, how much it has dropped in the last six, three sessions. And in the last six sessions, only two of them have actually dropped mm-hmm<affirmative> and the 2008 was an anomaly. Cuz the only other, it was, it went down 19%,
Speaker 2:Which the other one only went down one point, 1.9%.
Speaker 3:Yeah.
Speaker 2:So see there's your little
Speaker 3:So in every other recession with actually continued to increase, increase. Yeah. Um, which brings us to elephant. Number three, we have a supply problem. Big time. Yes. And I actually have another report out it's from our Florida realtors that went through and what it's going to take it's they're saying that our supply, especially for those, um, you know, average homeowner middle class homeowner is gonna take 10 years. It's gonna take a decade for us to catch up. Wow. So we're gonna continue to have a supply challenge for 10 years, at least. Um, so the opportunity for a decrease in house prices is more challenging. That less likely if you don't have enough supply, because for every one person, there's five people looking 10, depending on the area, looking to buy that,
Speaker 2:Especially here in Florida, especially here in Florida, we have a lot of people moving here we have. And a lot of supply issue we
Speaker 3:Have, yes. We still have a lot of supply issues, which brings us to the good news.
Speaker 2:Here we are. No, finally. So good news
Speaker 3:We have in our tool, chest two great options. Because back to that conversation about how many people are moving here, anyone who's tried to purchase anything is realizing that you're still going up against cash offers. Yeah. Last month it was 70% of the, off of the homes that closed 50% of, of 70% of the people that put at least 50% cash down. Wow. So we have a huge challenge if you're coming in as a typical home buyer. Yeah.
Speaker 2:Right. And you're just financing everything. You're getting bitted out. Right. Because of the
Speaker 3:Cash. Right. Because a homeowner wants to sell to somebody that they know like has the cash. Yeah. There's no, no hiccups. Right. So in our tool chest, we have home light.
Speaker 2:Yes. That's a great opportunity for us.
Speaker 3:Yes. And we have been partnering with them to be able to go in and bid on homes as if we were cash buyers.
Speaker 2:Yes. And it's made quite a difference for people because home life takes over and they actually give an offer then to the house that you want. And it's a cash offer. Mm-hmm<affirmative> so you're not competing. You're they're saying, here you go. We have this much cash. Can we get your house? And that's, I mean, it's so much better.
Speaker 3:Yes. And they're guaranteeing that they'll buy the house, even, even if something happens to your situation, um, that you can't
Speaker 2:End up not getting the house.
Speaker 3:Right. Um, so you can walk in as if you were Joe, from Jersey with a lot of cash in his hand and
Speaker 2:Joe, from Jersey.<laugh> sorry.
Speaker 3:Cause because that's where they're,
Speaker 2:They're they're most of'em are coming from Jersey, New York. They're all coming from up there. Yes. So I get the, I get it.
Speaker 3:So Joe from Jersey comes in with a wa of cash. You can compete with Joe. Yeah. And, and you can have,
Speaker 2:You can have that house that you really want. Right. Instead of them saying, sorry, we got a cash offer. We're not gonna sell you the house that you really, really, really, really want.
Speaker 3:Right. I know. I know you've lived in Florida. Most of your life. I know you have a, a regular family, but Joe from Jersey has cash. So I'm taking him. Yep. And that is not a problem anymore. No, and it's pretty quick. It's, it's actually, they're smart because they've come up with the way that they are doing the underwriting on you before they even tell you how much, how much you're qualified
Speaker 2:For. So then you just go out and you look for the house for what you're qualified for. And it's done. It's done within weeks. It's got it's quick. Really
Speaker 3:Quick. Yes. Yes. So that's um, advantage number one that we have and it, and the good news that we have and advantage number two is we also have the opportunity, you know how, when you go sell your car, you get a trade in your old one. You don't have to worry about selling it. Yeah. We can do that with houses now.
Speaker 2:That's amazing.
Speaker 3:Yeah. So we have the opportunity for you to get qualified on your house. It only takes a week and a half, two weeks. That's pretty quick. Um, I'm actually going through the process right now to, to see how it works and possibly, um, selling and buying myself. And it's pretty streamlined.
Speaker 2:Like, so hand tin, her house might be up for sale and it's really good house. So call us<laugh>
Speaker 3:But it's been, it's been really simple and painless and um, I have the, all, all I have to do is take pictures. Um, your realtor will get involved and help, uh, do compare to market analysis. And then you have an amount that you,
Speaker 2:That you to go search
Speaker 3:For a house they're gonna pay for your house. And then you can go out on home search. And, um, two days before you close on your new home, they give you the cash for your home.
Speaker 2:Wow. So you can use that cash and do like a cash offer on your new house. Mm-hmm<affirmative>, that's amazing. Mm-hmm<affirmative> that works out really well. So then let's say that the person they have, they say, they're gonna give'em a million dollars for their house, but the house they want is 1.3 million. You put the one, 1 million down and then finance the rest. And that's not an issue. Do you finance it through home light? Yes. Oh see. So it's all in one step. Yeah. All in one toolbox. Yes. That's great. That's a great advantage.
Speaker 3:And I'm, I'm going through the process myself and I'm choosing home life cuz sometimes I think people get nervous when, when we, um, talk so much about one company. Right. But, um, I'm really impressed with what they're doing and they're really, I love that they're being forward thinking mm-hmm<affirmative> and not, um, not stuck in the same mental process about how mortgages have to go. Right. And they're seeing what, the challenges that we're having. Right. And they're addressing those. And um, you can do this on your home. Like if you are thinking I wanna sell my home. This is how amazing they are. You, you can go through the whole process, find out how much it works, go out shopping. And if it's not right for you, they eat the cost of everything. They've just done.
Speaker 2:Cause they pay for the inspection, they do everything, right? The
Speaker 3:Appraisal, the inspection, all of that. They do that
Speaker 2:Up front and they eat all
Speaker 3:That and they eat all that. If something doesn't work out on your end,
Speaker 2:That's a good, that's a great guarantee. Right.
Speaker 3:And, and they, um, they give you a written offer. That's good for a certain amount of time, depending on your market.
Speaker 2:That's amazing. Yeah. So as a seller, wouldn't you be more enticed to take that because you're already preapproved, you already have cash, you know, it's a guaranteed sell. It's not gonna fall out in the middle of escrow.
Speaker 3:Right. Right. And then you don't have to worry cuz that is one of the biggest things about people wanting to sell is they know that they need to sell. Right. Um, they know that they need a little bit bigger property. Right. And, but they're worried what if I sell my house
Speaker 2:And I have nowhere to go and
Speaker 3:I have nowhere to go. Yep. So with this program, those challenges are being addressed and um, you can go out with much more confidence and if you do need to borrow on the other end and on, you can do the same as cash with their lenders.
Speaker 2:See, that's awesome. Yeah. That's really good. Yeah. They're so great. It's great
Speaker 3:Program. Yeah. They've, they've really thought about everything. Um,
Speaker 2:Especially in this changing market they've adapted to all of that. Mm-hmm<affirmative> yes. To help you. I would feel more
Speaker 3:Comfortable. Yes. It's huge. It's huge.
Speaker 2:Well, and maybe that'll help the supply issue a little too. If people are more, um, you know, they're willing to try this, then they can put their house in the market and get something different and more houses will become available as well. That
Speaker 3:Is such a great point because from where we're sitting, that's one of the biggest challenges I think has happened. You know, obviously we do have a supply issue. And part of that is because of these, um, hiccups that people are worried about having to go through these pain points that people are having to worry about going through. So it turns into a catch 22.
Speaker 2:Yeah. Yeah.
Speaker 3:I agree that our, our supply is a issue because people are worried about, I do need to move, you know, I'm,
Speaker 2:I've grown outta my
Speaker 3:House. Yeah. I have seven kids in a three bedroom house.
Speaker 2:<laugh>
Speaker 3:Yes, we do have people. They
Speaker 2:Do have, we do have friends that have that<laugh>
Speaker 3:And they, but they're so worried about what do we do. Yeah. So, um, we love having these resources and being able to help our, uh, clients be able to move forward with whatever their financial
Speaker 2:That's a great,
Speaker 3:Um, needs are in regard to real estate.
Speaker 2:Yeah. That's really good. I'm I love home life. I'm glad we've partnered with
Speaker 3:Them. Yes, they're fabulous. So I think we've covered a lot. I think so. Anything else? Did we miss something?
Speaker 2:We covered IRS. We covered our
Speaker 3:IRS interest rates, recession and supply and supply are the elephants in the room.
Speaker 2:So I think we're good. Yeah. I hope you guys all learn something today.
Speaker 3:Yes. And please reach out to us. You know, we are happy. That was the one thing I've realized. I need to make sure people understand. Um, when we were talking about the, the trade up program and how, um, flexible home light is, we're, we're really happy to explore your options. And if it's not right, right now, it's not an issue. Right. We love just helping people talk through whatever their thoughts, concerns needs in the real estate world are. Um, well, and hopefully we can put'em at ease and you know, right. Make it a little easier on you. Right. So we have a lot of trusted resources too, that, um, sometimes you don't even know about, um, that we would be happy to put you in connection with and we would love to help you moving forward with whatever your, uh, real estate needs are. Yep. That's great. Yeah. Let's do this. Yes. Call us. Yeah. So this has been a fun podcast. It's been fun. Yeah. I learned a lot actually. Right.<laugh> so there was some stuff I didn't know that you mentioned, so really? Yeah. A little bit. Yeah. So I'm ready to trade up. There we go. Let's do it. Let's do it. All right, everyone. Thank you so much for listening. And as always, we would love to hear what your what's going on in your world. And if you would like to have somebody talk about something, or if you have questions for us, please reach out. Um, we are available at 2 3 9 3 5 0 5 5 3 5. You can reach out to us@infoatbarefootbungalowhomes.com. That is a mouthful, but that's what it is. Barefoot Buno homes.com info@barefootbungalowhomes.com or we're on Facebook. We're on Instagram. We're on YouTube. We're on YouTube now. Yeah. Make sure you go check out our YouTube. We're coming to tick talk soon. TikTok soon.<laugh> we've been practicing<laugh> and we, we love to hear from you. So make sure you reach out to us and let us know any questions you have or concerns. And as always, we want to remind you too, live your best life barefoot.
Speaker 1:Thank you for listening to the live, your best life barefoot podcast, sponsored by barefoot bungalow Realty to learn more about barefoot bungalow Realty, go to www.barefootbungalowrealty.com or call 2 3 9 3 5 0 5 5 3 5.