Want to avoid overpaying for real estate in a competitive market? Want buyers to be aggressive in bidding for your home?
As controversial as it is effective for both buyers and sellers, this real estate power tool is the focus of what turned out to be an exceptionally vigorous lecture on just what you need.
hello hello hello hello yahoo i’m very energetic i am i got a lot of energy today feeling good about myself feeling not so good about me well i feel good about i’m just saying feeling i’m randall i’m the skunk pig so uh i’m with my remember the skunk pig yeah they’re the javelinas oh yeah no i’m just here with the preschool feeling good today lots of energy yes this is my handsome husband randall bro best smelling skunk pig you’ll ever see in your life we are here today to talk about something kind of technical yeah uh kind of controversial but if you if you want to invest in real estate uh or get a good price when you’re home uh you need to know about it and that is a escalation escalation clause now uh in the heyday when everything was going crazy we saw a lot more use of this yeah we are still seeing use of it but it might be dying out a little bit but an escalation clause is a really good thing to employ if you’re up for it correct so we’ve been doing escalation clauses for a while and then when the market went crazy with cobit and everything that everyone kind of discovered them it was kind of the thing to do right so just to be clear an escalation clause is a clause it’s a phrase on your offer your the contract that you are submitting to the seller that says let’s just say you know i might i offer 500 000 but i am willing to beat any competitive offer by x dollars and you know that what that x is we you know that’s part of the strategy does that have to be how high do you really want to how high do you want to go so typically you know i offer 500 000 and but i’ll offer 2 000 more than any competitive offer up to and including say 520 yes yeah that would be an escalation clause to 520. and uh kind of weird uh here’s the thing it kind of makes the situation work more like an auction so it allows the buyer to raise their bid if they’re in a competitive situation and obviously from a buyer’s standpoint that’s a good thing you don’t have to pay more than you need to that’s right in order to beat us so maybe you could beat a competitive offer at 512 instead of just flat 520 yeah right so just yeah so as an example let’s say you offered you know the 500 000 escalating to 520 uh let’s say there was a competitive offer at 5 12 well you would get it at 5 14. you would beat the 512 at 5 14. let’s say someone else escalated to 5 15 when you would get it to 5 17. but it’s still you know you’re going to max out at your limit of 520. but instead of paying 520 you might get it like you said 512. yeah which you know yeah would you know you’d like that yeah so uh buyers like the idea of escalation clauses um sellers maybe not so much we do have sellers uh listing agents who will put in mls oh no escalation no escalation just bring best and final yeah best and finally technically speaking if we send in an escalation clause they have to present they still have to present it they might not but they should and uh it is in our opinion it is a mistake for a seller to say no escalation costs and that is the reason why is that buyers will get much more aggressive if they’re allowed to do an escalation clause what they don’t want to do is to go thirty thousand dollars over list price when all they had to do was five thousand right so if you tell them no escalation clause they’re not going to go to 550. they’re going to go to 505 you know because they don’t want to leave money on the table so our opinion in seeing the dynamics of the situation seeing buyers facing very competitive situations our buyers will go much higher as part of an escalation clause than they would ever do just putting a single best and fun and the best thing about it is because people will say yeah but how will i really know there was a competitive offer and i want to say yeah well the other side has to present yeah they got to give the other offers so that you can see for sure yeah they did get an offer for 5 15 but i will win it for 517. yeah you have to have proof of that so it’s not just taking word taking someone’s word um so you do kind of have a little check and balance there so don’t worry about that yeah if you if your listing agent is pushing you back as a seller against escalation clauses um number one not in your best interest that’s our opinion and number two i’ve actually come across a number of listing agents who just kind of have trouble with the arithmetic honestly if you’ve got it i understand because if you’ve got a lot of offers and you’re trying to you know break them out yeah it’s a little extra you know it can be i’ve actually been in a situation where it kind of had to work yeah and it’s a lot of work it’s a lot of good through the calculation but making a mistake buyer or seller escalation clauses are a good thing that’s why they do auctions yep you know and the way it works real estate is set up there it’s not well you can do an auction there are systems where you can actually do an aux auction for real estate they do that for distressed uh real estate um you know repossessions and that sort of thing but typical real estate transactions they don’t an escalation clause is is a way to introduce an auction-like mechanism and it benefits both buyers and sellers that was a lot of words that was a lot that was a lot of words other than that i have let me help you catch you bro my god thank you oh lord i feel very passionate i think anyway it’s a useful tool that we’d like to share with you guys especially our buyers and give you a little education about it yeah don’t be afraid of them um they can be great be your best friend they can be your best friend you’re my best friend i would never put an escalation clause ahead of you yes you would of course you depends on the deal depends on the there you go there you go that’s the truth folks that’s the truth so anyway that’s our little lecture and escalation on escalation clauses yes if you are looking to buy or sell a home do not hesitate to reach out to us yeah the pic prescott pickle lady hotline is 713-302-1964 yes it’s a it’s a houston number we haven’t changed it like most people relocating the press it is a houston number that’s where you find her if you’re looking for free information the place to go people is pickle411.com.com pickle41199 or somewhere in between there is free and vigorous information waiting for you cigarettes yeah i don’t know whether whether you’re looking for real estate information events restaurants well i think the escalation clause lecture you just gave was quite vigorous yeah it was very vigorous yeah but other vigorous things that people 411. you’ll enjoy it yeah you’ll learn something all free it’s cool all free we don’t charge people we should charge [Music]
By now you've heard that real estate market is a crazy seller's market, with low inventory and houses flying off the shelves way above asking price.
Well, guess what... Buyers are back, baby!
Things are changing quickly. In this episode, we bring you the very latest from the front lines of Prescott-area real estate and what you can expect in the weeks and months ahead.
hello hello hello my little fellow pickle peeps people pickle pickle peepers that’s right we’ve had some comments from some people and i you know so they said where’s the hello hello hello did she retire the hello i well i didn’t do it on purpose i didn’t even realize and they were like we kind of missed the hello hello bye popular demand so back by popular demand i’m here to say hello hello hello trademark hope everybody’s doing great out there today we are yeah we’re trying we’re doing our best we’re doing really good we’re excited cheers to you good day today um we kind of want to talk a little bit about our changing market changing market buyers are back my friends buyers are bad baby here you go so for that yeah for the for the longest time uh i guess kobet kind of kicked us off the middle of 2020 started a seller rampage show so a lot of people deciding they wanted to move you know change of change of life change of work time to retire i’m tired of this i’m checking out uh but a lot of sellers weren’t selling i guess they were afraid to put their home on the market for whatever reason we had very high demand but very low supply so now what we’re finding not so much anymore kind of like a stick of margarine starting to soften a little bit there you go when you start to yeah when you when you go to bake you bakers out there no you kind of want to soften them so anyway the market is softening up a little bit numbers indicate that we’re kind of close to a balanced market yeah uh in particular higher end homes uh we’re even seeing uh uh buyers markets even strong buyers markets at some of the higher end price points so buyers are back uh buyers are back baby yeah so instead of homes jumping off the market a little more time to consider uh if you’ve been waiting for the market to kind of soften a little bit before you’re really willing to jump in as a buyer now is a good time so you know what we’re finding it’s it’s actually a little refreshing because uh those of you who’ve been looking we’ve been in a frenzy like get your offer in and i don’t even know if you’re going to get it unless you’re at full ask or over and they’ll you’ll be up against 10 other offers very discouraging yeah uh very high pressure now it’s kind of nice uh prices are not dropping dramatically nothing like that prices are pretty stable pretty stable but yeah some some small adjustments uh the the market was the prices were appreciating so fast that when you first list a home we would uh appreciate we would price into the appreciation so if it’s going to be a month or two before you close you don’t want it to look like you understood the home correct so we were kind of pricing up and all the listing agents were starting to get that uh so when the market started uh kind of uh mellowing out a little bit uh we saw some price decreases but i think they were just basically taking off the the little extra added so folks don’t think we’re going to have to crash like that’s not going to happen first of all we still have a high demand people are looking for homes there’s high inventory back in the olden days when we had that terrible drop there was a glut of homes on the market plus a glut of people walking away from loans that they had no business having in the first place yeah so now you know that was the story of 2008 yeah correct so now the lenders are very strict so not so many people walking away yeah no go out of here no blood of homes new construction is still far out all those homes have been paid for there’s not going to be a huge bunch of homes are gonna be thrown on the market with no buyers right so we just kind of want to let you know instead of having this high pressure like we must get the offer in we’ll be one of 15. now you know give us a couple of days you can write the offer up it might be one of two or three offers so it’s a little bit more breathing room yeah uh which i like um and higher price points even even less so yeah yeah you will probably be the only mark particularly for existing homes have been around a little while uh yeah so we’re kind of excited and the main thing that we’re excited about is um our favorite favorite favorite thing to do is when we have a listing is to try to find one of our buyers that we can connect and uh you know introduce our buyer to our sellers listing it’s our favorite thing to do and um it just happened today so we’re super excited um nothing makes me happier than to see both sides of my clients uh reach a good decision reach a good um yeah you know the deal works so well for both of them yeah and you feel really good so today we had one of those just serendipitous days and everything fell into place yeah and uh so kudos to our listeners and kudos to our buyers uh lovely both sides great great people great people nothing makes our heart happier than to see two people come to uh you know a you know meeting of the minds the media of the body yeah yeah and everybody’s happy and that is my favorite thing we can really bring two parties together yeah we we were doing some of that i mean we always do uh but we were able to do less of it just because we tell our sellers look i mean you can wait for us to find you a buyer but the market is so crazy right now we really can’t recommend that you do that you really should go on mls you know and open up you’re going to have multiple offers and everything now buyers are a little more scarce yeah and uh you know we will always have buyers and so we’re able to make some more connections this is the i think the second we call this our secret agent deal by the way you will see that on our website um this is the second one in like a couple of months two weeks yeah two weeks yeah that’s right that’s right two weeks so yeah it just tickles us when we can connect two parties and make the deal happen and everybody’s thrilled and it’s easy peasy for our sellers and our buyers are just delighted um it’s kind of nice when you have the inside skinny and we’re like honestly i know the perfect house for you yeah and it’s just a beautiful thing yeah time to make those matches yeah time to take your buyer around and let them settle in on what they’re really looking for and uh this this transaction in particular really good pairing yes so you know we did our shopping we took them around and they kept circling back to uh our listing and so anyway it’s just a happy time when that happens and we thoroughly really that it’s a good fit so anyway we advertise a lot and so we bring a lot of buyers in from out of state and uh if i have a listing that i think might work for them we try to connect those two and it’s a beautiful thing beautiful thing a beautiful beautiful thing when it does happen so anyway uh we just wanted to share that i’m going to let you know if you’re feeling high pressure start to take a chill pill people it’s kind of getting things are getting back closer to more yeah more peace out more so yeah yeah so it’s uh it’s been nice yeah uh if you’re interested in market information i’ll put a link down below this video where you can check out our market analysis we do that every month and we update it for what’s going on so if you’re not uh up to speed on what’s going on in the prescott market that is a really good place to start it is so if you are looking uh to list your home or you’re looking to buy a home uh look up the pickle lady look up the pickle randall and diane bro here of prescott arizona we are your local husband and wife team we’d love to connect you with the perfect home for whatever you may need that’s right that’s right so give us a call 713-302-1964 or or you can go to pickle411.com there is our information site whether you are a buyer a seller or somewhere in between you can find what you’re looking for there always free always dynamic and personable and all the good things i can say about that uh but good stuff good stuff like that completely free lots of good information there whether you’re interested in real estate or the social scene or whatever market conditions we got a whole lot going on pick all four one put it out there to all the masses so those of you who said where’s hello hello hello i’m back baby hello hello hello now i’m going to say goodbye goodbye until our next one until our next one have a great day bye
Do you get hives at the thought of dealing with local government agencies in your area? Well, in Prescott you may find things are different... and better. And if you get close enough, you may smell a skunk pig.
what up what up what up what’s going on folks randall and diane brew here located in the heart of prescott lakes the very heart the very heart you are the heart that’s really but i am glad to be here uh this evening to talk to you about the county county kudos yavapai county so yamaha is one of those words that people don’t know how to pronounce true so we should probably start there i agree yeah so the word is pronoun my understanding of the word is the way that it’s pronounced is yavapai as in do you have a pie yes do you have a pie you have a pie you have a pie sure do and the answer is javelina you will see a lot of them here in prescott they are an interesting little critter yeah but uh yeah that’s his favorite joke he loves to tell him it never lands you know well i should say it lands with a phone yeah yeah i enjoy the thud that’s why i keep going there do you know what happened is a skunk fig oh is that well i mean it does yeah what do you does it you say about clothes i’ve never been close enough to smell well i’ve yeah they they are not a pretty critter i’ll say that they’re not yeah i could see where that would that’s an accurate description pungent pigs uh did we introduce ourselves i don’t know doing i don’t know she’s pickling i am diane and this is randall bro i am the pickle lady located here in prescott arizona we’re a real estate agent correct and we talk about real estate and prescott a whole bunch of other stuff lots of stuff lots of stuff foolishness foolishness mostly but today we’re here tonight a lot of fun yamapai county so prescott is in yeah those of you in louisiana that’s what other people call back a parish correct so uh we had a client who did a project and somewhere along the lines somebody lost uh the paper trail with permits yep yep so they finished out their their uh construction project it expanded the square footage with that which they’ve been enjoying for over 10 years and they would sell their home and the county has the very old square footage way back when so yeah we kind of had to kind of had to straighten that before so when that happens it’s easy peasy you call the county and you just say hey we need to revisit this um but what we were super impressed with was they were like the next day hey we’re coming out to re-measure and update the county records and we’re like really already yeah absolutely yes now if you’re from an area of the world like i am where the performance of the local government agencies are less than stellar then you know what i’m thinking so there there could be a permit issue which is a function of prescott valley city city of prescott valley and that affects the square footage square footage comes on under under the domain of yavapai county county city so now you’re dealing with government employees from two different entities uh it could get dicey yeah i’m like oh this could get crazy this could be a six-month event yeah but what we found was no oh my god it was so simple they were amazing i explained it once and they got it right away he came the next day the very next day i called and i said um i explained the situation about square footage and he’s and i i i think it was a lady she says um well you’re in luck uh we are in the process now of going through the valuation the assessment evaluation process and so if you fill out the following two forms yeah she did it better than i could so uh she said the deadline is tomorrow get the forms done and get them into us tomorrow don’t mail them drop them off and she explained where yeah uh we can get somebody out right away because we’re in the middle of that process and i’m thinking sure sure right right the next day the gentleman came uh he called the name before he showed up the next day he was super nice of course i gave him a jar of pickles yeah yeah that always helps it always helps smooth pickles even everybody out it really is a magical event when you stand out jiggles that’s your gift to the world it is amazing how many people really love people but anyway maybe that was the secret and you know the pv people that are prescribing people uh completely understanding too everyone immediately got that there are two entities involved and we’re going to have to kind of do this together no problem i was just astounded at how well and and how competent they were how easily they understood what was a pretty weird situation and uh uh very polite and efficient and i’m like oh my god it’s like a well-oiled machine something we’re not used to from where we came from so we thoroughly appreciated it so i appreciate it to the county hats off to you you have a pie you have a pie we thank you uh for your prompt response your professionalism um your whatever your effectiveness effectiveness how expedient i mean how many other words can we say i don’t know i don’t know i need a thesaurus we need a thesaurus my my thesaurus is terrible and it is also terrible also a very old i think we gave a very old joke yes i think we gave some good words yeah you did better than i did so if you were in a similar situation we have contacts now and uh we’ll make it happen for you and get everything cleared up uh for you to go in the market without any worries or any hassles as you get under contract and rest are sure that you are supported by government agencies that are on the ball true true truth true true true yes so anyway uh if you two are in a similar situation have no fears yeah we can always figure it out we can always figure it out and make it well at a time correct we’ll swallow it so it’s gonna work we’ll make it happen for you okay so uh anyway if you are looking to buy or to list your property have no fears the pickle lady and her sidekick javelina javelina yeah skunk pig right here i’m your skunk i’m your side that’s not big don’t say that yeah i smell better [Music] marginally marginally marginally better but anyway we are here to help you uh on every step of the way so please feel free to call us at 713-302-1964 [Music] or go to our information site pickle411.com lots of free information whether you’re a buy or seller somewhere in between the information you need is probably sitting there waiting for you it’s right there folks smelling much better than us true true so anyway we look forward to hearing from you and we hope this little bit of info helped you absolutely so please take care and have a lovely evening bye you
People worry that what goes up must come down, and nothing has gone up more than real estate in recent years. Are we overdue a crash?
In this episode, we share our thoughts on the crash potential for Prescott-area real estate.
hello hello hello hello peeps good afternoon and this is randall and diane bro here in the lovely town of prescott arizona prescott arizona with vic lady yes here’s my little pickle somebody uh suggested this to us of course i immediately went on and bought it i love it and also yodles i won’t hit that yodel this time yeah yeah i’ll just let you see my pickle yeah um but anyway uh we are here where we uh wanted to chat with you about fretting a crash yeah so we’ve been having a lot of people asking us about the ever increasing home prices not just here and prescript across the country and whether we are due some catastrophic crash as we had back in the late 2000s and the answer to that at least as far as prescott is concerned is we don’t see where that would come from so the the crash in 2008 depending on where you were maybe it was a different time a lot of that was driven by people who had financing that no one should have ever given them that’s right no money down for an eight hundred thousand dollars probably not a good idea yeah so people were buying extra homes on credit and flipping them there’s a lot of stuff that was going on the the short answer on that score is that is not happening it really you know a lot of our clients are retired yep and when you retire this market in particular yeah you know they have a lot of money but not necessarily a lot of income sometimes they struggle to qualify because of things like debt ratios or income ratios right you know the the the ratios and the finances are are not and you know what they don’t weigh that uh they gotta jump those hurdles uh clearly it’s a good loan but they follow the regulations getting financing even when the interest rates are really low you think they’re begging for business guess what if you can’t make the ratio you will not get a loan it ain’t gonna happen it ain’t gonna happen it ain’t gonna happen yeah so yeah we’re not worried about a crash per se and particularly in the press kit market yeah because most of our buyers are cash buyers yes they’re retired um they’re either paying cash or they’re putting substantial amounts down for a down payment and so you know the creeping interest rates it doesn’t bother them so much because they pretty much have a pretty low mortgage yes um so if we’re kind of a unique market here yeah you may have seen there was an article i believe it was in fortune one of those magazines they listed a number of cities around the country we were one of them prescott arizona makes it makes it into this magazine as as one of the towns that is destined uh destined for a price adjustment and the reason they give is that the i’m sorry sorry are you okay um can i help you out yeah give me a hundred real quick real quick let me get that given that uh the reason they give for that is the if you look at the price of homes and divide that by the average income in the town that number is extremely high which would indicate that people are not making enough money to afford the homes there and so that that affects a lot of towns here’s the thing in prescott a lot of people are retired correct they don’t show a lot of income they have a lot of money yes so when you look at that ratio it’s going to be yeah oh you know your your uh uh property value to income is off the chart yeah he’s got four million dollars in the bank right it’s not going anywhere so we say nay to that yeah because just because we are a very unique market yeah they they ran the numbers they picked the top 10 15 cities in the country that popped at the top and they wrote an article about it um obviously they’ve never been to prescott i can’t see why that’s an issue here i don’t know of anyone i can’t think of anyone offhand who’s even close to you know oh it’s going to be difficult for them to maintain the payment on their homes these guys came here to retire and they’re having a great time and they’re going to be here for a while they’re not worried about making their house note yeah because number one either they pay cash yeah or number two they’ve had such a huge down payment their house note is negligible yeah so for us i always keep in mind the prescott market is quite unique yeah um our median age here is 55 and older so these are people who are not moving here for the industry for the jobs to start a new career this is a career test yeah and all of our friends god bless you we hope we can join you one day everybody’s having the time of their lives that’s right uh they’re golfing they’re jeeping they’re you know uh hiking they’re having a fabulous time they’re not really worried about income so when you hear these stories um don’t fret so much about prescott in itself uh this is a huge retirement town i have people who call me and say i’m looking for a 55 plus neighborhood and i’m like can i be honest all of prescott is basically 55 plus yeah it’s it’s it’s essentially a retirement community yeah i mean you don’t need to be in a particular neighborhood um most of our neighbors are retired um we’re kind of one of the few that are not but um don’t fret the crash crash here in prescott yeah i feel like it’s gonna be okay yeah i you know i i struggled to see what would what would do it yeah uh what drives a lot of our home sales here and the home value prices are people coming from other states mostly along the west coast uh that relocate here because it’s more affordable uh it’s a nice place you don’t have to go someplace where it’s a skabillion degrees uh and in 157 humidity or you know mesquite we don’t have any of that right you know it’s a very nice place so people can come here um the cost of living is low we talk in some of our other videos we talk about the arbitrage where you can sell your home where you are now typically some place like california and you can buy a home equivalent and bank a fair amount of money if the prices in california go down they may go down here too as long as we have a a as long as we’re less than california it would still make sense uh to make that move and i i i just i don’t see how um i don’t see how we end up with a bubble i really don’t i i don’t think price prices can’t keep going up the way they have i understand that we all do i think things are going to flatten out i think things are going to moderate i just don’t see a bubble that there’s something artificial that’s been holding this up all along and it’s just gonna crash i think maybe we undervalued real estate after the crash in 2008 for too long and uh and we had a big you know upward correction and and kobe pushed to store that i don’t know i i was surprised to see the prices go up as fast as they did but uh i don’t see them i i don’t see what would is their bubble to pop i don’t know i don’t know at least you know prescott is a very unique market and um we’re kind of a special little bubble here so you can’t really compare us to the other national markets yeah you know that’s my opinion yeah um and we’re small too we’re not a big player it’s not like we need millions of people moving here to get this right i mean do we have a crystal ball no no but i do have a crystal ball but i but i can’t use it to predict the future i’ve tried i just can’t okay so anyway we just thought we’d share this little two-bit uh two cents of information and uh just our personal opinion of course it is an opinion it’s not fact that’s right it’s not scientific but we just thought we’d give our little two cents of info on how we think things are going we are a very special market here so anyway if you’re thinking about buying or selling give us a call or you can go to our information site that’s pickle411.com whether you’re a buyer seller somewhere in between there’s information that’s waiting for you absolutely we’re here toll free it’s all free it’s all free all free people you don’t have to pay anything it’s free no subscription yeah all right just a final note if you are on the verge of retirement and thinking of retirement don’t put off retirement too long don’t do that don’t do that don’t wait don’t wait until you’re too old we have met so many people here who were like wow i should have done this years ago i’m loving my life here and we love it through extension we’re not quite retired but we are having fun anyway so give us a call diane and randall bro with our famous pickle whatever it is [Music] oh [Music] a lot of people anyway
Real estate runs on paperwork, and if you've bought or sold any recently, you may have been struck by just how much there is. Well, the Prescott real estate association (PAAR), keepers of the local MLS, have just come down with new rules that could lead to fines if some of that paperwork isn't completed quickly enough. Find out about these latest gotchas and what we think about them in this episode.
hello top of the morning to you good morning folks this is diana randall bro here prescott lady and sidekick respectively that’s right we are your husband and wife duo here in prescott arizona happy to bring you here show you around hopefully you’ll stay we’ve made so many great friends from clients it’s just been um that’s part of the happy part of our time it’s a great time guys yeah and there’s a reason why people come here it’s a great time so today we wanted to talk about some new things that are coming up in real estate yeah lots of rule changes lots of little changes yeah this is actually this is something that should have been done a while ago so i was glad to see this come down uh so the new rule from the local association is that you cannot go live so you’re selling a home your home cannot go live on mls until you have uh if you need disclosures for an hoa or lead-based pain so lead-based pain is anything before 1978. that’s right home was built before 1978 you’re going to need a lead-based pain disclosure so you’ll know that right away uh if you’re in an hoa you will need an hoa disclosure this is paperwork uh in particular the hoa it could be a pain yeah someone more complicated yes some can be complicated uh it has to be done and posted as part of the mls record before your home goes live in mls let me tell you why that makes sense from a buyer perspective so we have buyers that that come in they like a home we know there’s an hoa and we want to make an offer part of that offer is who pays the hoa the transfer fees basically um if we don’t have a disclosure then we can’t really make the offer yeah yeah so what that does is yeah so essentially that’s the listing agent making the buyer agent call the hoa to find out what’s going on and that’s not the buyer agent’s job that’s the listing agent’s job yeah so uh buyer agents have gotten smart and what they do is they send an offer that anything that’s undisclosed you have to pay and sellers didn’t like that sellers aren’t happy with that they’re like wait a minute i so we’ve been why am i paying that things have been getting sort of better we’ve been seeing more compliance there well now if you go live and you do not have an hoa disclosure or a lead based disclosure if you need that uh the listing agent will be fined like just straight up so uh that’s good because listing it that’s part of the listing agent’s job it’s a little bit of homework it’s a little bit of homework part of the negotiation uh in particular in hoa areas where those fees can be substantial um so it’s something that needs to be done and now now you have to do it yeah it’s fair and you should not expect a buyer or the buyer’s agent to have to figure that out and sometimes the seller you know maybe they’ve lived there 20 years like jeez i don’t even remember do i have to pay a transfer fee yeah i think there is a transfer fee like if you live in prescott lakes there is a transfer stream um all sellers have to pay a disclosure fee regardless period end of sentence yeah we all know that but there’s some transfer fees if you’re in an hoa some don’t have it some do and you should also disclose what your ho your quarterly hoa is is it monthly is it annual is it quarterly and there’s always something to know that yeah that’s an important part of their yeah decision they’re like you know i have so much of a budget for my house note how much is my uh hoa going to be because if it’s too much i might have to reconsider and go to a different area all important stuff if you were out there and you’re the buyer and so anyway we’re kind of excited that our local listing service is putting that into effect yes um because sometimes my buyers are here for a short time they want to write that offer up and the hoa is not open until monday yeah if they’re here in a weekend so we can’t give them the answer yes some of the the transfer fees involved are negotiated how are you going to negotiate if you don’t know what they are exactly so uh it this is the was the right thing to do we supported 100 yes and we’re excited yeah we’re excited in our listings we’ve always done this because it’s the it’s the way to do it right if you’re working with buyers you know that uh and and we work with both so uh we’ve kind of always done that we’re glad to see it one thing i will point out if you are a seller this is yet one more thing that has to be done before your home can go live uh generally it’s it from the time you sell a listing agreement until your home is hitting on all cylinders it’s on mls and agents out there are seeing it one or two weeks uh you know the more that the listing agent has to do the longer that takes yep so uh that’s true understand now that uh this is yet one more thing that has to happen and it’s important so we wanted to explain why it’s important and and why uh the rule makes sense so uh yeah good job we’ll be a little more a little more patient as a seller because there are a bunch of things that have to happen absolutely so that is our little tidbit of the day we hope that this helps explain some of the process yeah right absolutely right thank you for listening and give us a call at 713-302-1964 if you need any kind of help or have questions we’re happy to try to answer and help you out we also have uh information site you can find that at pickle411.com whether you are a buyer seller somewhere in between lots of information about prescott the prescott real estate market local restaurants things to do uh things to do with your dog i mean [Music] we just have a lot of fun sharing our wealth of information every time we come across a nugget we put it on that’s right we actually make a list people let’s lose and uh over a month we might have eight topics and we will sit down and film all eight topics one nugget at a time yeah pop in our little brains like that’s something to talk about let’s do it our website is where you need to pan for gold it’s where all the nuggets are all those maybe most of them are gold maybe you might find some other nuggets there that’s right
You may have heard that weirdness prevails in the real estate market these days, and nowhere is that more true than with lenders. In short, lenders are struggling right now... big time. In this episode, we discuss some of the major lender fumbles we've seen recently and how you can avoid the nightmare scenarios that have become all too commonplace in real estate transactions because of them.
hello friends this is diana randall bro your local friendly husband and wife realtor team located in prescott arizona she’s depressed pickle lady that’s right i am her sidekick in arms that’s right sidekick have arms i’m not sure i’ll get some water i’ll get some more or at least some tools sidekick but yeah you probably do but tough topic too yeah a tough topic it’s something that um i try and try again some people listen and some people how shall i say i think they know better than mama and that is using an out of state lender so we’ve been having a lot of trouble with lenders um and that’s just i mean the lending process the lending process you know we’re going the whole covet thing and logistic problems and i i don’t know what but we’re finding it very hard to match our buyers with lenders who can close in a timely manner well yeah and this is my biggest pet peeve lately particularly if you use an out of state london oh i have a relationship with them i’ve been with wells fargo for 25 years it doesn’t mean a thing okay you are assuming that when you hand off this loan to somebody to start processing it that you’re going to have your particular banker every step of the way sadly my first month that’s not what happens they’ll have a separate team for that they have a separate team for that so the first person who sells you that loan they’re out of the picture they get their commission and they go off and go sell another loan yeah and then your loan is sold you know it’s passed on to another team and it goes into underwriting well every underwriter they pass on to another person to another person so when you run into a glitch and you call your original person they’re like oh that’s not me anymore now it’s joe and kathy and susie so then you may be hunting down these people who they’ve passed it on to somebody else you never get the same person so consequently um when we have a closing date which by the way is a contractual obligation you’re obligated to close on that date and lenders don’t seem to understand that it’s a contractual obligation and so this is what i tell some of these lenders hello it wasn’t a suggested closing date it’s like underground it’s like under contract this is a legal thing yeah if we’re supposed to close march first you’re supposed to have it all done march first so we’ll get a call from the we’ll get a call from the lender oh good news we got the appraisal scheduled for the fifth like okay we gotta close on the first we’re closing on the first that doesn’t help me yeah so a lot of times you know that’s very frustrating so from the get-go i call these out of state lenders and i say order your appraisal today don’t order it two weeks from now because we’re never going to close on time because a lot this is another thing you should you should know out-of-state lenders have to contact an appraisal uh company of their own in-house and then they that in-house appraisal company says let me get you an appraiser i don’t know who i don’t know anybody in that area but i’ll get one from phoenix what a nightmare because the phoenix appraiser comes up here he looks at it he doesn’t know the press get back i don’t know the market they don’t understand i understand the market to do a decent appraisal that’s correct and i’m sure the same is true you can’t get prescott appraisers and go down right really i mean you gotta know you need to have somebody familiar with it yeah you need to have somebody local who really understands the market understands that that side street is really not a major highway which we’ve gotten that’s not a major highway um so you don’t have to you know detract you know at deduct a hundred thousand dollars that’s not a major yeah we’ve had one it was uh oh well the the comp was uh it’s a good comp but the comp has a view of the golf course and the subject property doesn’t okay the subject property overlooks granite mountain it’s a much better view so you know we try to advise of course we can’t tell you i mean that’s absolutely one hundred percent yeah he should pick the land and you’re right that’s your right to do that but when we gently try to guide you try to find a local lender there’s a reason for that we want you to close on time we don’t want you to arrive in prescott and your house has enclosed and your stuff is in transit in a truck and you have no place to move in yeah and it has happened it has it has happened and then suddenly you’re in a hotel for two weeks while you’re waiting for it to get out of underwriting because they didn’t go into underwriting until five days before your closing date yeah nobody’s going to get you out of underwriting in five days and get the appraisal done in five days it’s just not happening you’ve got sellers that are selling in the seller’s market that may or may not be that’s right uh they may not appreciate your situation yeah they want to close because they’re moving on to their next chapter so when we gently suggest please try a local lender preferably a mortgage banker not a bank like wells fargo or you know one of those uh yeah don’t go with a mortgage broker go with a mortgage lender a mortgage banker they will hold your hand all the way to the end because they don’t get their commission until you close so they are invested they are committed because they would like to get their commission and so keep that in mind it’s not to mind your business or tell you what to do and you know i appreciate you know every person i know who thought they had a great relationship finds out maybe not so much yeah and just to be clear most of the clients that we deal with um they are of retirement age yes and uh they’ve region reached a certain level of success most of them do have personal bankers yes so we’re not oh you know i have a personal banker your other clients probably didn’t know they all have a personal thing and it’s not the personal banker’s fault yeah they’re it’s just their process when you’re with the national bank they set you up they do the initial paperwork and then their process is to pass it on to the other parties and it’s not that they’re bad people yeah or you know well they’re dealing with their process it’s a very it’s a very tough situation at this at this particular moment uh some areas like the california banks are really struggling the northeast banks are really struggling uh we had a we had a broker in the midwest so we figured oh that’s okay she sourced it to a bank in california that was a disaster it’s it’s uh it’s a bad situation right now we try to ride shotgun with the lenders for our transactions for our buyers we don’t know all the ins and outs we’re not lenders we’re not right now we don’t do that for a living i mean we try uh the local people we use here they know how to run rough shot they know how to do it they know how to get it done and it’s best to absolutely let them do that you know your bank may or may not respond to a stupid realtor from prescott arizona yeah i can call my local lender and say hey we gotta is there hold up can you tell me what’s going on what can we help to facilitate so we can close on time and i can get that person right away we can communicate clearly effectively and get the job done whereas if it’s an out of state lender they don’t know me from a hole in the ground and they’re like oh i don’t do that anymore it’s passed on to this person and they can’t really we don’t have that kind of relationship so keep that in mind it’s not to mind your business it’s not to tell you what to do it’s just if you have a particular date in mind that you want to close you want to close and uh local lenders are the way to do it they really try hard and they try to make it happen they know the right and they know the ropes and they also know local appraisers that they can get in and get it done so i’d all share this recently we just had one and we were supposed to close on a friday and they called the day before and said can’t close on friday because that is actually lincoln’s birthday not president’s day the 21st lincoln’s real birthday was february 18th so in california we celebrate uh lincoln’s birthday so we can’t send out any wires yes evidently they only figured this out the the day before the day before on the 17th uh i don’t know if that was really the story or not that declared the holidays so it’s weird things like that weird things out of state lenders will have weird rules i don’t know california’s rule about lincoln’s birthday but apparently on february 18th they don’t send out wires in the state of california and they’re allowed to do that so yeah every day i learned something new and another good example is uh ordering out the appraisals it is a matter of course that uh lenders will order out the appraisal kind of when it’s clear that the home’s gonna inspect yep you know that it’s gonna get get past the inspection period that’s when they’ll do it too late you can’t do that now you can you got to order it right away and if you if that means the lender is going to have to eat the appraisal fee yeah that’s just the cost of it but here’s the thing they don’t eat the appraisal fee they passed on to you they said oh we can’t get the appraiser out so i hope you don’t mind instead of paying six or seven hundred dollars for your appraisal you now have to pay the expedited fee yeah twelve hundred dollars fifteen [Music] they can get it done overnight yeah but you’re gonna pay extra for that so try to go local we have everything local in-house we can get it done it’s nice and smooth and you know typically we close on time about 98 of the time uh out of state um it’s been i can’t promise you it’s been rough lately it’s been rough that’s all we can do is just tell you our experiences with this in the end the your lender choice that you that’s your choice 100 it’s your choice whoever you choose we will do our best to make sure that you close on time uh but we just wanted to share some of our experiences with you some other considerations you may want to yeah just be aware you may not necessarily close on time if you’re going out of state we can do as much as we can try may not happen for you we sure will try i love to nag it’s my favorite thing to do i call every day hey it’s the pickle lady again heard anything yeah heard anything heard anything remember the closing date is not a suggested date yeah we want to close on this day we’ve been struggling with this for the last several months so yeah so we want to share and you should know too because you know we don’t always buy houses every other year sometimes it’s been 20 years and you kind of forget so this is our knowledge we want to share with you absolutely take take away from it whatever you wish but we hope you listen to us [Laughter] more information you can check us out at pickle411.com that is our information site whether you are buy or seller somewhere in between information about lenders and all that kind of stuff about real estate i also got best restaurants to go to and press get things done i’ll love it i’ll live all of it’s there all of it we love to talk about a whole bunch of stuff yeah not all of it’s complaining about linda no that’s right very strong very small just a small percentage all right my friends you guys have a great evening and thanks for listening hope we taught you something new take care bye