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
arizona prescott arizona baby yeah we
are the pickle lady brigade
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 it
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
attention yeah that you don’t have to
pay it’s a stupid tax
so we wanted to talk about right now um
it’s it’s occurring
all over the united states uh everyone
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 and that’s about where we are we
usually pretty crazy
yeah we usually have about 1200 homes
right
that are fascinating to pick from at any
one time and now we have
about 400 about 400 and 400 homes
covering
all price points yeah all price points
so that’s
very very small 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
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
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 price 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 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
think that you know you need to go at
least fifty thousand dollars
uh over this price to get this home and
we’ll tell you
how far above the market you know the
market value that
is uh we’ll tell you yeah that says 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
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
not to go too far um 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 100 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 write 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 house
or buy 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 at 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 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 we’ll 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 move
fast
speed to lead or you know speed speed is
very important
uh to make sure that you get the best
possible deal absolutely
we’re like little commandos little
commander 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 might 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
yeah so 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
they are again skipped 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
arizona prescott arizona baby yeah we
are the pickle lady brigade
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 it
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
attention yeah that you don’t have to
pay it’s a stupid tax
so we wanted to talk about right now um
it’s it’s occurring
all over the united states uh everyone
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 and that’s about where we are we
usually pretty crazy
yeah we usually have about 1200 homes
right
that are fascinating to pick from at any
one time and now we have
about 400 about 400 and 400 homes
covering
all price points yeah all price points
so that’s
very very small 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
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
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 price 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 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
think that you know you need to go at
least fifty thousand dollars
uh over this price to get this home and
we’ll tell you
how far above the market you know the
market value that
is uh we’ll tell you yeah that says 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
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
not to go too far um 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 100 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 write 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 house
or buy 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 at 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 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 we’ll 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 move
fast
speed to lead or you know speed speed is
very important
uh to make sure that you get the best
possible deal absolutely
we’re like little commandos little
commander 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 might 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
yeah so 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
they are again skipped 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
