A stupid tax is a tax you don’t have to pay if you’re smart enough to avoid it. Right now in real estate, across the country, people buying homes are pulling out their wallets to pay up – bidding up the price of homes well beyond what anyone thinks they’re really worth.
In this episode, we cover what we’re doing in the trenches to help our clients avoid paying the stupid tax.
Video Transcript hello to all of our pickle peeps out
there
diane and randall bro here we are with
real 21 group mountain desert
arizona prescott arizona baby yeah we
are the pickle lady brigade
along with our partner janet pacelle
erickson who is our primary listener
yes and uh today’s topic that we’d like
to talk about is called what randall
stupid tax that he calls it the stupid
tax well stupid tax
is any tax that if you’re smart you
don’t have to pay
so lottery tickets you know that’s a
stupid tax
yeah yeah but spend a lot of money on
lottery tickets that’s you’re
essentially paying the tax
yeah that you don’t have to pay it’s a
stupid tax so we wanted to talk about
right now
it’s it’s occurring all over the united
states uh
everyone uh there’s hardly any inventory
homes are flying off the shelf
that’s true across the nation most areas
they are running on average it’s about
one-third
the level of inventory uh the
usual inventory is about what’s
available now
right it’s that’s about where we are we
usually pretty crazy
yeah we usually have about hundred homes
right
that are finished to pick from at any
one time and now we have
uh about four hundred about four hundred
and four hundred homes
covering all price points yeah all price
points so
that’s very very very yeah very few so
it’s making it hard and so people have
perhaps sold their homes they’re
desperate to get in
uh to a home and they’re willing to win
a bid
at any cost so what we’re seeing a lot
of is people are waving appraisal
contingencies
uh people are going in way over ask
which
we never had before yeah areas like
california right and that’s new to us
uh crazy over list price
uh probably started happening
uh you know maybe a couple of months ago
it just sort of started we started
seeing yeah about four months ago yeah
people started coming in
uh at ask and then it increased to five
thousand over ten thousand over twenty
thousand
now we are seeing things going in over
fifty thousand
yeah recently we lost a bid uh someone
came in
over a hundred thousand over ask
it’s kind of scary people yeah
especially if you’re waving
appraisal contingencies um
a lot of our clients if we get into that
point it’s like you know what it’s time
to stop
we don’t need to keep throwing money
just to win
yeah you have to be careful what you
might win right you might get in a
position where you
have grossly overpaid just to win
yeah and you don’t always want to be a
winner in that kind of situation
well the first thing you need to
understand when
when you’re getting into one of these
bidding wars is what is the property
really worth
the list price is not always the fair
market value
uh some agents intentionally price high
others intentionally priced low some
really
don’t have any idea what the home’s
worth and they just kind of price it
maybe where the seller wants to price it
so
the first thing you need to understand
is where where is the list price in
comparison to what the home’s really
kind of worth
and uh if you understand that
then you know we’ll tell you what that
number is we’ll show you why we think
that
is and it’ll be up to you i mean if
if we check that you know you need to go
at least fifty thousand dollars uh over
list price to get this home
and we’ll tell you how far above the
market
you know the market value that is we’ll
tell you yeah
that’s what you can safely go there yeah
and still
yeah retail value you know here’s the
list price here’s where we think the
market is
you might be able to get it to appraise
a little higher than that
you know but i mean if you’re competing
with someone who’s willing to pay a
stupid tax if you don’t pay the stupid
tax
which is money that the home’s basically
not worth that
if it’s your dream home and you
absolutely have to have it you
absolutely have to have it now
that’s the price and it’ll be up to you
whether you want to pay it or not
but we will give you sound advice yeah
we’ll we’ll tell you okay
where you should go probably flushing
about 50 grand
you know and if it’s worth it to you to
get that house now
then you can go ahead and pay that but
just know that it’ll be
at least a year before the uh home
appreciates enough that catches up
catches up with what you pay so we here
at the pickle lady brigade
try to keep it real try to keep it
honest um we really will guide you
uh not to go too far if that is where
you want to go
and you’re willing to take that risk and
yeah that’s up to you if that’s up to
you of course
uh but i wouldn’t call that a stupid tax
i mean if you know what you got what’s
stupid
is when somebody comes in the home’s
already overpriced
and they just oh a hundred you know they
have no idea what they’re doing and then
usually what happens is they go under
contract with this crazy offer
and then during the inspection period it
falls off because either they come to
their senses
or they run some numbers or they just
get cold feet
so right so just something to keep in
mind
we don’t want to bid something up just
for you to win that you
may regret later like wow i could have
used that cash maybe to travel the world
yeah but now i’m kind of strapped in
this
a car or you know if that’s your deal
and you don’t care
we’re happy to do that too but we will
give you sound advice
and tell you where you should go and
where we think you should
land and uh if and if we don’t win and
we get outbid we’re going to keep keep
trying for you and uh we’ll make it
happen
yeah a lot of uh people are saying oh
you you can’t find me home
here’s the thing this woman is
particularly good at finding great homes
that are available
and tight markets like this it just
takes her longer
uh we might have to make more offers
before we get one for you right
but you know usually we could get
someone in a beautiful home at a good
price
within a week now it might take three or
four weeks
right but that’s okay that’s just
randall janet and i
we keep searching we keep our ears open
we all work together uh sometimes we’re
uh find a house we want to get the offer
in right away
uh one of our randall or janet will be
back home hey start writing it up so we
can meet some of the other people
we try hard yeah we try hard we need to
get it in fast
[Music]
speed is very important uh to make sure
that you get the best possible deal
absolutely we’re like little commandos
little commanders jumping on them
always ready to attack yeah yeah in a
nice way
yeah and win yeah we’re here to win the
war that’s right
we don’t want to lose the battle we will
win the war ultimately
it may take us a while but we’ll get
there
especially in this market so keep that
in mind uh
how much victory yes we avoid the pirate
i avoid the pirate victory yes cheers to
that
all right have a wonderful day nice to
see you well i don’t see you but nice
for you to see us
yeah well yeah maybe we hope it’s maybe
i don’t know we hope it’s nice
it may be the bane of their existence we
don’t know they might be like oh god
thank you they are again skip get them
off
x out of that one yep i get it i
understand
no hard feelings no hard feelings no
hard feelings we’re just here to share
share our wealth of information
that’s up to you if you want to hear it
there
diane and randall bro here we are with
real 21 group mountain desert
arizona prescott arizona baby yeah we
are the pickle lady brigade
along with our partner janet pacelle
erickson who is our primary listener
yes and uh today’s topic that we’d like
to talk about is called what randall
stupid tax that he calls it the stupid
tax well stupid tax
is any tax that if you’re smart you
don’t have to pay
so lottery tickets you know that’s a
stupid tax
yeah yeah but spend a lot of money on
lottery tickets that’s you’re
essentially paying the tax
yeah that you don’t have to pay it’s a
stupid tax so we wanted to talk about
right now
it’s it’s occurring all over the united
states uh
everyone uh there’s hardly any inventory
homes are flying off the shelf
that’s true across the nation most areas
they are running on average it’s about
one-third
the level of inventory uh the
usual inventory is about what’s
available now
right it’s that’s about where we are we
usually pretty crazy
yeah we usually have about hundred homes
right
that are finished to pick from at any
one time and now we have
uh about four hundred about four hundred
and four hundred homes
covering all price points yeah all price
points so
that’s very very very yeah very few so
it’s making it hard and so people have
perhaps sold their homes they’re
desperate to get in
uh to a home and they’re willing to win
a bid
at any cost so what we’re seeing a lot
of is people are waving appraisal
contingencies
uh people are going in way over ask
which
we never had before yeah areas like
california right and that’s new to us
uh crazy over list price
uh probably started happening
uh you know maybe a couple of months ago
it just sort of started we started
seeing yeah about four months ago yeah
people started coming in
uh at ask and then it increased to five
thousand over ten thousand over twenty
thousand
now we are seeing things going in over
fifty thousand
yeah recently we lost a bid uh someone
came in
over a hundred thousand over ask
it’s kind of scary people yeah
especially if you’re waving
appraisal contingencies um
a lot of our clients if we get into that
point it’s like you know what it’s time
to stop
we don’t need to keep throwing money
just to win
yeah you have to be careful what you
might win right you might get in a
position where you
have grossly overpaid just to win
yeah and you don’t always want to be a
winner in that kind of situation
well the first thing you need to
understand when
when you’re getting into one of these
bidding wars is what is the property
really worth
the list price is not always the fair
market value
uh some agents intentionally price high
others intentionally priced low some
really
don’t have any idea what the home’s
worth and they just kind of price it
maybe where the seller wants to price it
so
the first thing you need to understand
is where where is the list price in
comparison to what the home’s really
kind of worth
and uh if you understand that
then you know we’ll tell you what that
number is we’ll show you why we think
that
is and it’ll be up to you i mean if
if we check that you know you need to go
at least fifty thousand dollars uh over
list price to get this home
and we’ll tell you how far above the
market
you know the market value that is we’ll
tell you yeah
that’s what you can safely go there yeah
and still
yeah retail value you know here’s the
list price here’s where we think the
market is
you might be able to get it to appraise
a little higher than that
you know but i mean if you’re competing
with someone who’s willing to pay a
stupid tax if you don’t pay the stupid
tax
which is money that the home’s basically
not worth that
if it’s your dream home and you
absolutely have to have it you
absolutely have to have it now
that’s the price and it’ll be up to you
whether you want to pay it or not
but we will give you sound advice yeah
we’ll we’ll tell you okay
where you should go probably flushing
about 50 grand
you know and if it’s worth it to you to
get that house now
then you can go ahead and pay that but
just know that it’ll be
at least a year before the uh home
appreciates enough that catches up
catches up with what you pay so we here
at the pickle lady brigade
try to keep it real try to keep it
honest um we really will guide you
uh not to go too far if that is where
you want to go
and you’re willing to take that risk and
yeah that’s up to you if that’s up to
you of course
uh but i wouldn’t call that a stupid tax
i mean if you know what you got what’s
stupid
is when somebody comes in the home’s
already overpriced
and they just oh a hundred you know they
have no idea what they’re doing and then
usually what happens is they go under
contract with this crazy offer
and then during the inspection period it
falls off because either they come to
their senses
or they run some numbers or they just
get cold feet
so right so just something to keep in
mind
we don’t want to bid something up just
for you to win that you
may regret later like wow i could have
used that cash maybe to travel the world
yeah but now i’m kind of strapped in
this
a car or you know if that’s your deal
and you don’t care
we’re happy to do that too but we will
give you sound advice
and tell you where you should go and
where we think you should
land and uh if and if we don’t win and
we get outbid we’re going to keep keep
trying for you and uh we’ll make it
happen
yeah a lot of uh people are saying oh
you you can’t find me home
here’s the thing this woman is
particularly good at finding great homes
that are available
and tight markets like this it just
takes her longer
uh we might have to make more offers
before we get one for you right
but you know usually we could get
someone in a beautiful home at a good
price
within a week now it might take three or
four weeks
right but that’s okay that’s just
randall janet and i
we keep searching we keep our ears open
we all work together uh sometimes we’re
uh find a house we want to get the offer
in right away
uh one of our randall or janet will be
back home hey start writing it up so we
can meet some of the other people
we try hard yeah we try hard we need to
get it in fast
[Music]
speed is very important uh to make sure
that you get the best possible deal
absolutely we’re like little commandos
little commanders jumping on them
always ready to attack yeah yeah in a
nice way
yeah and win yeah we’re here to win the
war that’s right
we don’t want to lose the battle we will
win the war ultimately
it may take us a while but we’ll get
there
especially in this market so keep that
in mind uh
how much victory yes we avoid the pirate
i avoid the pirate victory yes cheers to
that
all right have a wonderful day nice to
see you well i don’t see you but nice
for you to see us
yeah well yeah maybe we hope it’s maybe
i don’t know we hope it’s nice
it may be the bane of their existence we
don’t know they might be like oh god
thank you they are again skip get them
off
x out of that one yep i get it i
understand
no hard feelings no hard feelings no
hard feelings we’re just here to share
share our wealth of information
that’s up to you if you want to hear it
