Are you thinking of buying or selling a house or just want to know what might be going on with one of your biggest investments? Then Why not become a house geek? Hi, I’m Kirk Duckwal here with Chad Vandelot and we are the house geeks and we’d like to welcome you to the House Geeks Real Estate show where you can spend the next few minutes learning the smarter way to buy and sell homes or just know what’s going on with the market. We are brought to you by Brick’s Real Estate, Network Title, Eric Bloomstrand and Chad Previ with Bell Mortgage and James Towson with Country Financial. If you have any questions for us, give us a call at (612) 207-5388 again, (612) 207-5388. make sure you check us out online at housegeeks.com for the latest and greatest searching and researching tools. Also check out our YouTube page for over a hundred videos, diving into real estate and what’s going on here in the twin cities market and just, you know, all sorts of different tidbits that you can grab from as you’re preparing to buy or sell a house.
Speaker 1: So we’ve talked about on this show, the book that we put together a while back and we have now just released The Smart Home Buyer Guide guide through your biggest financial transaction 2.0 so we’ve added a 10 additional pages here and really think filled in some, some areas that the first version didn’t cover. And we’re going to kind of go through some of those highlighted points from the book and how we think it can be beneficial to anybody looking at buying a home. And if you’re thinking about selling house, this information is good to know because this is the way that you know, you may be being approached by buyers and just good information. You know? If you don’t fully understand exactly how closing costs work, if you think sellers always pay the closing costs, here’s a perfect reason why you should get a copy of this book.
Speaker 1: And like I said, this book is at no cost. If you email us at a firstname.lastname@example.org we will send out a copy to you at at no cost. You know, the, the radio show, the videos, now the book, this is all something that we do to just try to help people out. And so if you’d like a copy of this book and, and like a little guidance in this process and how to just really approach buying a home the smartest possible way. And it goes beyond that. If you go through these steps and you follow this, you could save tens if not hundreds of thousands of dollars over the course of your home ownership and your purchase as well. So yeah, kind of diving in. So, so one of the first things that we added was the two ways buy a home. So we introed let me just mute my computer here.
Speaker 1: There we go. Think that’ll do it. Always remember to mute the cell phones and now I forget to mute the computer. So yeah, the two ways to approach buying a home. This is something that we discuss in our class and that’s the shotgun approach versus the surgical approach. And sadly enough, I would say probably 80% maybe 90% of people approach buying home the shotgun way. And the sad thing is that usually ends poorly. Now people will learn over time. You do this enough times, you’ll start to kind of correct that a little bit, but that can be many transactions and tens of thousands of lost potential dollars.
Speaker 2: I think what’s perpetuating this is the digital technology that’s out there now. You don’t have to engage with a professional until pretty far down the road because you can view homes online, you can view rates online, they have rate calculators, some of which may be accurate, some of which may not, but it’s not until you find one that you really, really like that kind of propels a person to go out and seek advice.
Speaker 1: Yeah. I mean it’s almost like throwing somebody into a courtroom without any preparing for what’s about to happen. It’s like up, here’s your lawyer. Okay, go at it. This is your case, you know? Yeah. It is. It is the technology because before you had to engage typically a professional relatively early on and start those conversations. And so yeah, the shotgun approach, it’s really just going to end in in three different ways. All typically not the greatest. Versus the surgical approach, which you know will end well. You’re going to be confident that you got the right place, you know it’s going to be the right place because you took the time to learn everything about what you’re about to do and about the house and about the locations and all of that and what works for you doing that priority checklist.
Speaker 1: Another section that we added was set yourself up for success, don’t be in a rush.
Speaker 2: That’s a big one.
Speaker 1: Yeah. Top Five home buyer mistakes happen because people rush. If you rush us, you’re going to mess it up. I mean that’s typically … We see it all the time. People that either are attending the class or coming and reaching out to us, you know, have approached maybe approached this in the past and they rushed into this process and rushing basically walks you right back into that shotgun approach. You know, this gets very costly and at the same is true for if you are a seller out there as well. If you try to rush getting your home to market and, and skip some of the most important steps, it’s going to cost a lot of money.
Speaker 1: Just as if you rush into buying a home, it’s going to cost you a lot of money typically, or a lot of heartache or stress, whatever.
Speaker 2: And this applies to mortgages as well. You know, you have these online preapproval now where you can get pre approved very quickly, but it does help to talk to a couple of different people and learn about a couple different products.
Speaker 1: Yeah, I mean it’s, it’s pretty frustrating to a buyer to get out there and get a, you know, fast preapproval where you know, no income or assets were ever verified and they’re sitting there making the you know, assumption that you know, they can move forward and then low and behold they go to make an offer and asked to have the numbers ran and it doesn’t work. You know? Or even worse, you get to the point of making an offer. You’ve locked in the property, maybe even paid for an inspection, paid for an appraisal and it doesn’t work. And this is where it becomes very costly. So taking the time, it’s important. So don’t rush yourself into this, this process.
Speaker 1: You know, we always talk about who you should see first, whether you should see a loan officer first or see a real estate agent first. And the honest answer is see both at the same time. Or if you know, you have that conversation going with a real estate agent, jump right into the, the property type and condition and stuff like that as to what you’re thinking about looking at. Because that will effect the loan. When you do an online preapproval, I bet you the box doesn’t say, are you looking for a fixer upper or looking for a home that’s move in ready. However-
Speaker 2: Are you looking for a condo?
Speaker 1: Are you looking for a condo versus townhouse? What areas are you looking in? What income level based on the area to see what programs you qualify for. I mean, what they’re doing is they’re feeding this 80%, this 80% of people that want and feel the need to go about it the shotgun way. That’s what these online approvals are there fore. They’re, you know, what is it if there’s a sucker born is a sucker born every minute and two to take advantage of them. It’s something like that, I think it’s the phrase. You know, that’s what they’re doing. They see that people, oh, let’s fill out the online app. Let’s, let’s do this. They’re never asking the important questions. So we have a breakdown in the book of all the questions, the things that you’re gonna want to talk to as you are kind of beginning this process.
Speaker 2: The loan is a big place where a person can save money. And if there was the best loan out there, there would be only one loan.
Speaker 1: Well, and for that shotgun approach, they just want to throw the two easiest, you know, you know, your FHA 30 year, your 30 year. You know, you know, this person doesn’t qualify conventional this much. Let’s just say they’re 20% down even if they can’t. And that’s one of the things I’ve seen happen. Have you ever gotten a preapproval where, Oh yep, I have my preapproval. Okay, well this says you’re doing 20% down. I don’t have 20% down.
Speaker 2: Yes.
Speaker 1: Right, right. So they approved you for a loan you can’t even do. So you know it’s, yeah.
Speaker 2: And maybe if it was, maybe the reason that was is there wasn’t a discussion about closing costs, which is our next topic here.
Speaker 1: Well, we have one minute to go. I suppose we can talk about closing costs now.
Speaker 2: All right.
Speaker 1: Closing costs, I mean in the breakdown that we given the book there’s a clear description and, and sadly enough that, you know, once again, you know, 90% of agents for loan officers do a terrible job of explaining closing costs and how they truly work and how they truly impact you as a buyer and how sellers see that. Because that is very important to know because if you want to know how to get your offer accepted, you need to understand this. So there’s a lot of people out there that, you know, just throw their shotgun offers out there and they lose out because they don’t have a good grasp on that.
Speaker 1: So we’re going to take a quick commercial break, when we come back, we’re going to get into kind of the more in depth part of the process. So yeah, we’ll be right back.
Speaker 3: My closing is falling apart, my stuff’s in a van. I have to rent storage space and that will cost money I don’t plan on spending, and the sellers are threatening to sue. My loan officer never called much. So I thought things were fine. Now I have to start over.
Speaker 4: Avoid costly last minute disasters by choosing an experienced local loan officer. Call Iloan at (877) 373-4467 or visit iloanhomemortgage.com loan home mortgages and equal opportunity lender NMLS number, 4474.
Speaker 5: Network Title knows it’s the little things that make big things happen like protecting home buyers from title defects. As an independently owned and operated full service title company. We specialize in all the important details. We come to where you want to close. Even nights or weekends, we’ll even bring fresh baked cookies. Network Title, Stress Free Closings since 1993. Work with the company that puts you first. For details, go to network-title.com or give us a call at (651) 482-9514.
Speaker 6: Sometimes when you have more questions than answers about insurance and financial services, it might seem easier to do nothing at all. At Country Financial. We know that every situation is unique and believe that even the biggest goals start with simple steps. So when it comes to protecting the things you love and planning for the future, don’t get overwhelmed. Get started with Country Financial contact James Towson today at (651) 365-3408.
Speaker 7: Are you looking for the smarter way to buy and sell homes? Checkout housegeeks.com the house geeks with Bricks real estate have the experience, tools and technology to get you the best value. At housegeeks.com you will be able to download their free home search app, easily set up appointments or request your free home and neighborhood market assessment. Remember the House Geeks the smarter way to buy and sell homes.
Speaker 1: You’re listening to house geeks in real estate show on AM 950. Today We’re talking about our new book, the Smart Home Buyer, Guide to Your Biggest Financial Transaction or Financial Decision 2.0. kind of covering some of the things that we’ve added to this and, and highlighting some of the most important pieces in that. And we’re happy to send anybody who is interested a free copy of this, just email us at email@example.com again, that’s firstname.lastname@example.org. If you are thinking of buying or selling a house and would like some help or have some questions, please feel free to give us a call anytime at (612) 207-5388 again (612) 207-5388. and it doesn’t need to be anything immediate. We have some listeners out there that reach out to us a year to two years in advance and we’re always happy to help answer questions, help them out. Because of this getting ready for this process, I mean heck, if I was about to deal with a few hundred thousand dollars I would take my time too. As we talked about one of the biggest mistakes both buyer and seller can make is to rush this process. Taking your time as a good thing.
Speaker 1: So who represents you? This is a great little section. We added some pieces to this. You know, your representative that that’s the key to understand that your representative is your advocate when you’re out there. You know, an experienced home buyer or seller out there has sold three or four homes. Okay. An experienced agent probably did that last month. So utilize that. Okay? They are doing it all the time and this process is changing. If it’s been five years, 10 years, 20 years, there’s so much that has changed. I mean I’ve been doing this for over a decade. Hundreds and hundreds of homes sold and I’ve seen this process change on a monthly basis.
Speaker 2: Yeah, and where we’re located in the upper Midwest here, seasonal changes are bound to happen as well.
Speaker 1: Yeah. Knowing the market, I mean, and timing the market, we were actually just talking about two of the slowest months you can sell a house here in the Twin Cities.
Speaker 1: And so yeah, having a good understanding and, and that can be a good time to capture potentially good buys out there. So you know, when you’re looking for a representative, make sure you’re looking for somebody that has that experience. You know? I understand maybe you have a relative that just got their license. That’s great. I would hope they are working with somebody side by side as they’re about to sell your multi 100,000 or help you purchasing multi hundred thousand dollar property. So you know it’s good to to help out your family members but also make sure that they have the experience behind them because you know things can go wrong, you know? And you want to make sure, you know you have a good advocate there for you.
Speaker 1: You know we talked a little bit about you know, what loan works best and you know that you said that there would be just one loan. You know, another piece to this pie is, shopping for it and everything that we’ve been taught shopping wise, and this goes to what we were saying in the last section, the shotgun. A lot of these advertising companies are looking for that shotgun buyer, right? Who thinks that rate is absolutely the most important thing. And it’s not, because if you do not understand how the order of how a lender analyzes your rate, then you are trying to go to the end. You’re putting the cart before the horse. Now the banks want you to believe that. Or are a lot of them do, I should say. Good lenders know, they’ll walk you through this process and they’ll show you.
Speaker 1: But you know, we break down in the book the order that you should be shopping for a mortgage in. Because each one of those things that’s listed there will help determine what your rate is. And so if you’re just going right to rate and you don’t know these questions, then you are cart before the horse.
Speaker 2: Yeah, you can have a … You can have a lower interest rate than your neighbor, but your neighbor who has the same price on their house can have a lower mortgage payment depending on how their mortgage is structured.
Speaker 1: Right. Yeah. And, and so is it rate that’s most important to you? Is it payment that’s most important to you? Is it interest paid that is most important to you? Now that one, that one’s truly important to me, right? Because that’s the charge above and beyond, right? The cost of the home. And that is where you can really, really save the most money in your purchase, is looking at how to adjust the overall interest being paid.
Speaker 2: And there’s a couple of ways of doing that.
Speaker 1: Right. So the, once again, if you’re interested in a copy of this book, if you’re watching us on Facebook, you can just type in below. If you are hearing this over the air, you know, just send us an email email@example.com, happy to send it to you. It’s a free book. We’ll just shoot that out and hopefully helps you with the process a little bit. How about home buyer priority checklist? This is probably, once you step outside of getting your mortgage, hands down the most important thing a buyer can do. And even more important for your second and third time home buyers because now you have a much better idea of what you really want. Otherwise why would you move? You know, usually your second and third time buyer, they’re going to be the one that takes far longer than a first time home buyer.
Speaker 1: You know, this process can last a year, two, three years. What’s fun is if you do it right and it’s like a lot of people go, oh, that’s daunting. That’s a long time to be looking for a house. If you do it right, maybe you only go look at 10 houses. It’s just you have narrowed down what you want. So is it about doing it quickly or is it about getting what you want? Right? And when you have a house already, you tend to have a little more time on your hands.
Speaker 2: I think I’ve shown a client of yours that falls into that category where they said they’d been working with you for about two years and you know, she walked into the house and she knew pretty quickly that it wasn’t the one for her.
Speaker 1: Right. Yeah. That’s great.
Speaker 1: That kind of discipline in the home searching process, that’s what you want. That’s how you find the deal. That’s how you find the one you truly want. It goes back to that, don’t be in a rush. Right? So take taking the time. You know, it doesn’t have to be something that’s just done right away. So yeah, the home buyer priority checklist, we call this the fight starter. Okay? Because if you are buying with a significant other, this is a tough conversation. We know that because we’ve been doing this for a while.
Speaker 2: We’ve done it ourselves too.
Speaker 1: And it’s, it is a, it’s a conversation that a lot of couples don’t want to have and they know they are different in spots. But what’s gonna happen is, is that difference in the search is going to result in not finding a home. That is going to result in fight after fight after fight.
Speaker 1: Or you can just do the checklist right away, hash it out right away and put yourself in a much better position by doing that priority checklist. And what’s great is you can go from the, we looked at 50 homes and couldn’t find anything to, we looked at five to 10 and found our dream house.
Speaker 2: But maybe you looked at 50 online or maybe you looked at more than 50 online.
Speaker 1: Right, right, exactly, and that’s fine. That’s if you’re doing this the right way, that’s what you’re doing. You know you’re utilizing these tools that we talked about that could be a hindrance in the beginning as to how to use them to your advantage and that’s-
Speaker 2: But what you don’t want to do is picture click.
Speaker 1: Yes.
Speaker 2: That’s the wrong way to look at them online. Pictures can tell a thousand lies and can make a good house look bad in a bad house look good. And it doesn’t give you, if you just click through quickly, it doesn’t give you a good reference of layout as well, which tends to, which is in the home priority checklist and tends to be pretty significant when selecting a home.
Speaker 1: Yeah, I mean the two go hand in hand and really getting a good understanding of layout. That’s one of the first things when we meet up with a buyer is to do a layout tour. Basically go hit a bunch of different layouts and take the ones off of their list. I have heard probably 95% of the time, oh, we’re open to anything, which is a complete lie, right? Because you go out and you start looking at these different homes and they’re like, nope, don’t like this one. Nope, don’t like this one. Why? Well, I don’t like, I don’t like the steep staircase and the bedroom upstairs. Okay, so you don’t like story and halves? Well, no, I’m not saying that. No, actually you are, but that’s okay. It’s okay to understand that it’s okay to take them off your list. It just like a pickup truck from one company to another is going to be similar. If you don’t want a vehicle with a box on the back, maybe pickup trucks aren’t right for you.
Speaker 1: So putting those two together that can, that can help your process lie. Wow. This show went quick. We have a lot more that we could cover that’s in this book, but we’d like to get it out to everybody. You can see there’s no cost to it. Shoot us an email. Send us a message. We’ll, we’ll shoot you out a copy. It’s just at a firstname.lastname@example.org If you do have any questions for us after the show, you can give us a call at (612) 207-5388 again, (612) 207-5388. Follow us at housegeeks.com for the latest and greatest searching and researching tools and updated videos.
Speaker 1: Another good show Chad. Let’s come back next week.
Speaker 5: Network Title knows it’s the little things that make big things happen. Like protecting home buyers from title defects. As an independently owned and operated full service title company, we specialize in all the important details .we come to where you want to close even nights or weekends. We’ll even bring fresh baked cookies, Network Title, stress-free closings since 1993. Work with company that puts you first. For details, go to network-title.com or give us a call at (651) 482-9514.
Speaker 6: The one constant in life is change. Throughout our lives, we will go down roads that we never imagined and we need to be prepared for whatever comes our way. Want to own your future contact Country Financial representative James Towson. James can help put a solid plan in place with insurance solutions to help make sure you’re protected for what lies ahead. Get started today. Contact James Towson in Minneapolis at six (513) 653-4084 for Country Financial.
Speaker 3: My closing is falling apart. My stuff’s in a van. I have to rent storage space and that will cost money I don’t plan on spending. And the sellers are threatening to sue. My loan officer. Never call much so I thought things were fine. Now I have to start over.
Speaker 4: Avoid costly last minute disasters by choosing an experienced local loan officer. Call Iloan at (877) 373-4467 or visit iloanhomemortgage.com. Iloan home mortgage is an equal opportunity lender. NMLS number 4474.
Speaker 8: With you at 50 weather, this is Eric Nelson. Today will be mostly sunny with a high near 73 and tonight clear with a low around 49. Sunday will be sunny with a high near 70 and a low around 51. Monday sunny with a high near 77 and a low around 60. and Tuesday will be raining. The temperatures in the seventies.
Speaker 9: Spring is here and it’s time for standard heating and air conditioning spring fever sale where you can save $1,700 or more on a new furnace and AC combo throughout May. Learn email@example.com standard heating and AC comfort you deserve.
Speaker 10: Welcome to Minnesota Matters. I’m Scott Peterson and I’m joined by M&N’s Bill Warner, Tasha Raydell and Mike Graham. We’re going to delve into what’s going on in the north star state if it matters in Minnesota, we’ve got it covered.
Speaker 10: This week an update from Minnesota Secretary of state, Steve Simon on election security, big cats in sandstone. And U of M AD Mark Coil on the remarkable season in gopher softball. But first:
Speaker 11: The legislative session just ended as being touted by top lawmakers is one that brought the state budget across the finish line with only a short wrap up special session. Despite Minnesota being the only state in the nation with divided government, I. E. Control of the House and Senate split between Democrats and Republicans. But claims of bipartisan cooperation aside, there could be storm clouds on the horizon. Bill Warner has more.
Speaker 12: Yes, it is May and we’re here to sign a budget in the law so I know small wonders. Small wonders.
Speaker 11: Governor Tim Walls as this week he signed the 20 plus billion dollar public school funding bill surrounded by preschoolers at an elementary school in Saint Paul.
Speaker 13: This year is really something special. We proved to the rest of the country that we could come together as one of the nations few divided governments, and we could come together first and foremost and put Minnesota values first.
Speaker 11: Carlton Colleges. Steven Sheer affirms that the temperament of the top three negotiators, the governor Senate, Republican majority leader, Paul Gazelka and Democratic House Speaker, Melissa Hortman was to try to get an agreement instead of vilifying the opposition. But Sheer argues the next legislative session in 2020, not a budget session. Could be a different matter all together.
Speaker 14: When you look at the non budget items, there are big differences between the House and Senate, private schools, scholarships, conversion therapy, an equal rights bill for the state. A whole bunch of of issue areas where Democrats in the House and Republicans in the Senate fundamentally disagree. And I think a lot of these social issues are going to be very hard to reconcile between the two chambers. So I actually expect the next session to be a pretty conflictual one.
Speaker 15: Oh, that’s a very interesting observation because more and more we hear generally the, the even numbered years have been called bonding sessions around here, right? For decades and decades. And now we’re hearing the term more because the question of when the bonding bill has done is somewhat blurring now, right?
Speaker 14: Yes.
Speaker 15: And we’re hearing more and more. Well, the second year of the biennium, that session is the policy session.
Speaker 14: Yes.
Speaker 15: And I think that’s telling isn’t it? And about how people are thinking about this, even though policy has always come into it obviously in the off years as it were, in other words, the even numbered years. But do you see it more aligning that way in the trencher?
Speaker 14: Yeah, well I think it’s lining that way because when you look beyond the strict tax and spending items in the agreements, there are a whole bunch of democratic legislative initiatives of a policy sort from the House that did not get passed into law and a bunch of Republican policy initiatives from the Senate that did not get passed into law. So you’ve got all these things sort of waiting for the next session, which will be a policy session. But I’ve already just described how it’s going to be a session of big partisan conflict over policy.
Speaker 15: And we’re not up against the same kind of a deadline in the sense that if they don’t agree by the end of the fiscal year, that state government partially shuts down or fully shuts down. Right? So therefore, presumably there might be a bit more holding out for positions or a bit more deadlock? Is that fair to say?
Speaker 14: Yeah. Well, I think you can expect deadlock on a variety of matters. Equal rights, probably conversion therapy, abortion restrictions, private schools, scholarships. Those are just a few where I think deadlock is almost certain to occur. You know, the other thing, Bill, is how do you both get a bonding bill, which will require Republican votes in both my house and the Senate along with all these policy disputes. How does all that get worked out in the blender?
Speaker 15: Yeah. In Britain, particularly if transportation comes into it as, as it could well.
Speaker 14: Yeah. Yeah. Well, as you know, Kelleher’s said it’s a four year process.
Speaker 11: Professor Shear is talking about comments made by Min DoT, Commissioner Margaret Anderson Kelleher in the context of the push by her boss, governor Walls for a gas tax increase. Hamline University political analyst, David Schultes also sees problems the next time lawmakers come back to Saint Paul because he says much of the budget negotiations this past session occurred in the dark with very little transparency and very few people involved in the negotiations.
Speaker 14: That lack of transparency, that lack of openness really I think was damaging to the process. What I have found interesting is both Kurt Gout, the minority leader in the house and Tom Bach, the minority leader in the the Senate equally are complaining about the process and what we saw happen. What is that? If you were not in the majority chamber or not majority party in the chamber, you are pretty much excluded from the from dialogue and if you weren’t part of the small leadership, you were excluded. This was not a good way to do things from an open government, from sort of a one process matters type of approach.
Speaker 15: Does this become a situation of where chickens might come home to roost on this later on, you know, next session or the session after that professor?
Speaker 14: I think so. It doesn’t set a good, it doesn’t set a good precedent. And think about on one level here is that in order to pass a bonding bill in the state of Minnesota, you need to get a 60% vote in each of the houses here, which requires that you’re going to have to what? Reach across the aisles to be able to do something like that. And the process that we saw this legislative session where the minority party was essentially excluded from any kind of discussion doesn’t bode well in terms of building the coalitions you need to get to that 60% in either the house or the Senate.
Speaker 15: and I suppose it then if you have another flipping of control and either one or the other chamber, then you have disgruntled people on the other side and you have other people trying to perhaps settle old scores and you have all sorts of problems.
Speaker 14: No, I think you’re absolutely correct. It leaves lots of people feeling like they were marginalized during this legislative session as opposed to it being an inclusive session. And therefore I think, I think it’s doesn’t set us up well for next year.