1 00:00:00,080 --> 00:00:02,880 Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt, 2 00:00:02,960 --> 00:00:25,479 Speaker 1: and today we're discussing actually buying a home. That's right, Joel. 3 00:00:25,560 --> 00:00:27,800 Speaker 1: Last week we talked about everything you need to do 4 00:00:28,120 --> 00:00:31,160 Speaker 1: before buying a house, and now this week we're talking 5 00:00:31,200 --> 00:00:35,440 Speaker 1: about the actual house buying process, everything from submitting an 6 00:00:35,440 --> 00:00:38,040 Speaker 1: offer all the way through to your closing date. Yeah, 7 00:00:38,080 --> 00:00:40,159 Speaker 1: there's so many little things involved, Matt, and all of 8 00:00:40,200 --> 00:00:43,720 Speaker 1: them are important in making sure that you buy a house. Well, 9 00:00:43,880 --> 00:00:46,200 Speaker 1: so yeah, I'm looking forward to talking about that. Before 10 00:00:46,240 --> 00:00:47,360 Speaker 1: we get to it, I wanted to let you know 11 00:00:47,479 --> 00:00:49,720 Speaker 1: that one of our neighbors gave some hand me down 12 00:00:49,720 --> 00:00:52,400 Speaker 1: bikes to my girls. His girl's had outgrown them. They 13 00:00:52,400 --> 00:00:54,480 Speaker 1: got some new bikes, and so my girls have been 14 00:00:54,640 --> 00:00:56,800 Speaker 1: super excited to ride bikes. And the weather has been 15 00:00:56,840 --> 00:00:59,400 Speaker 1: a little bit warmer lately, so it's been really really 16 00:00:59,480 --> 00:01:01,760 Speaker 1: fun getting out there and just kind of riding bikes 17 00:01:01,800 --> 00:01:03,880 Speaker 1: with the girls because normally I put them on my 18 00:01:03,960 --> 00:01:05,760 Speaker 1: bike and and that's a lot of fun, but it's 19 00:01:05,800 --> 00:01:08,000 Speaker 1: so much fun just to watch them get into it 20 00:01:08,080 --> 00:01:10,200 Speaker 1: on their own too. So yeah, we're really enjoying bike 21 00:01:10,280 --> 00:01:12,280 Speaker 1: riding right now. It wasn't I on that text thread 22 00:01:12,280 --> 00:01:14,840 Speaker 1: as well, where it was offered to you and me, Hey, 23 00:01:14,959 --> 00:01:18,040 Speaker 1: you never and then and then he took both of 24 00:01:18,120 --> 00:01:21,440 Speaker 1: them jerk, Hey, I offered after the fact, I did say, 25 00:01:21,480 --> 00:01:23,920 Speaker 1: you're welcome to one. But you're pretty stocked on bikes 26 00:01:23,959 --> 00:01:26,160 Speaker 1: over here. Yeah, actually, yeah, we've got some freebees as well. 27 00:01:26,480 --> 00:01:28,680 Speaker 1: I keep kind of stashing them down to my basement 28 00:01:28,720 --> 00:01:30,560 Speaker 1: down the cross space when the time comes and I'm 29 00:01:30,600 --> 00:01:32,720 Speaker 1: gonna pull them out and hose them off. Get him 30 00:01:32,760 --> 00:01:34,680 Speaker 1: nice and shining for the girls. Yeah, I think I 31 00:01:34,760 --> 00:01:36,560 Speaker 1: saw you post a picture from from when you guys 32 00:01:36,560 --> 00:01:38,640 Speaker 1: were riding. Was that during the week as well? We 33 00:01:38,640 --> 00:01:40,640 Speaker 1: were kind of taken some time off from work. Yeah, 34 00:01:40,720 --> 00:01:43,160 Speaker 1: I knocked off a little bit early. We we went 35 00:01:43,200 --> 00:01:45,520 Speaker 1: to a biking path essentially, and and the girls had 36 00:01:45,520 --> 00:01:47,240 Speaker 1: a blast. And there are a couple of playgrounds along 37 00:01:47,280 --> 00:01:49,840 Speaker 1: the way that's the best. So yeah, we're like biking 38 00:01:49,840 --> 00:01:51,880 Speaker 1: for a little while, stopping off at the playground, biking 39 00:01:51,920 --> 00:01:54,720 Speaker 1: some more, stopping off. Yeah, the playground destination makes it 40 00:01:54,760 --> 00:01:57,200 Speaker 1: worthwhile for the kiddos. I was asking though, because I 41 00:01:57,200 --> 00:01:59,520 Speaker 1: think the same day I had family in town and 42 00:01:59,560 --> 00:02:00,920 Speaker 1: I was a little bit nervous because I've got a 43 00:02:00,960 --> 00:02:03,960 Speaker 1: lot of work on my plate these days, and to 44 00:02:04,080 --> 00:02:05,920 Speaker 1: kind of be able to take that much time off 45 00:02:06,000 --> 00:02:08,280 Speaker 1: during the day when I know that I'm typically working, 46 00:02:08,919 --> 00:02:11,120 Speaker 1: and it was it was hard. I kind of had 47 00:02:11,160 --> 00:02:13,240 Speaker 1: like a little panic attack when I realized that, oh, no, 48 00:02:13,320 --> 00:02:14,840 Speaker 1: I'm not going to be able to get the things 49 00:02:14,960 --> 00:02:17,160 Speaker 1: done that I need to get done today. But you 50 00:02:17,240 --> 00:02:19,679 Speaker 1: know what I realized, I kind of reminded myself, back 51 00:02:19,720 --> 00:02:22,320 Speaker 1: to the Mission Statement episode that we did with Scott, 52 00:02:22,720 --> 00:02:25,760 Speaker 1: that having this kind of flexibility is important to me 53 00:02:25,840 --> 00:02:28,600 Speaker 1: and to be able to pry myself away from my work, 54 00:02:28,639 --> 00:02:30,760 Speaker 1: which is essentially what I have to do, uh is 55 00:02:30,800 --> 00:02:32,840 Speaker 1: pride myself away, but to remind myself that, no, I 56 00:02:32,840 --> 00:02:34,079 Speaker 1: need to spend time with my family. I need to 57 00:02:34,120 --> 00:02:36,320 Speaker 1: spend time like you with your kids, just on a 58 00:02:36,400 --> 00:02:38,680 Speaker 1: random day when when it's beautiful outside, and to give 59 00:02:38,680 --> 00:02:42,480 Speaker 1: yourself that flexibility. And it's sort of like lifestyle shaping, 60 00:02:43,040 --> 00:02:45,160 Speaker 1: like we know in our heads what we want our 61 00:02:45,200 --> 00:02:48,079 Speaker 1: life to sort of look like. And it's weird to 62 00:02:48,120 --> 00:02:49,800 Speaker 1: say this, but for me, man, it's it takes a 63 00:02:49,800 --> 00:02:52,440 Speaker 1: lot of work to actually see it out and do 64 00:02:52,480 --> 00:02:54,560 Speaker 1: the things that I know that I want to do 65 00:02:54,720 --> 00:02:56,760 Speaker 1: on paper or in my head, but when it comes 66 00:02:56,840 --> 00:03:00,280 Speaker 1: to my actual actions, it's really hard. So it's really 67 00:03:00,280 --> 00:03:02,440 Speaker 1: difficult for me. And I don't know if that means 68 00:03:02,480 --> 00:03:05,440 Speaker 1: I'm a workaholic or or what, but seeing you kind 69 00:03:05,440 --> 00:03:07,920 Speaker 1: of do that was inspiring for for me, So so 70 00:03:07,960 --> 00:03:10,320 Speaker 1: I appreciate that. Man. Yeah, no, I don't think you're 71 00:03:10,320 --> 00:03:12,040 Speaker 1: alone in that at all. I think it's really hard 72 00:03:12,080 --> 00:03:14,480 Speaker 1: for us to match up kind of our beliefs and 73 00:03:14,520 --> 00:03:17,560 Speaker 1: what we hold dear to our actions. Sometimes that's a 74 00:03:17,639 --> 00:03:20,560 Speaker 1: human tendency, right to to say that we value one thing, 75 00:03:21,000 --> 00:03:23,040 Speaker 1: but in fact all these other things get in the 76 00:03:23,080 --> 00:03:25,680 Speaker 1: way of us prioritizing the thing that we say we 77 00:03:25,720 --> 00:03:27,679 Speaker 1: care about the most. And I think probably all of 78 00:03:27,720 --> 00:03:30,320 Speaker 1: our listeners can resonate with that to a certain degree, 79 00:03:30,400 --> 00:03:33,200 Speaker 1: that the things that we want to hold up as 80 00:03:33,200 --> 00:03:35,320 Speaker 1: the most important things in our lives, we find ourselves 81 00:03:35,320 --> 00:03:37,760 Speaker 1: answering emails when we should be spending time with our kids, 82 00:03:37,880 --> 00:03:40,640 Speaker 1: or we find ourselves on our smartphones in bed when 83 00:03:40,680 --> 00:03:43,440 Speaker 1: we should be having a nice moment with our spouse, right, 84 00:03:43,800 --> 00:03:45,800 Speaker 1: or even just hopping back on the computer. Like for me, 85 00:03:45,840 --> 00:03:47,560 Speaker 1: it's just after I take a shower at night, because 86 00:03:47,560 --> 00:03:49,640 Speaker 1: that's how I roll take that night shower helps me 87 00:03:49,680 --> 00:03:51,680 Speaker 1: feel all warm and cozy and clean, and then I 88 00:03:51,760 --> 00:03:53,320 Speaker 1: then I go to bed. I gotta imagine you're in 89 00:03:53,320 --> 00:03:55,840 Speaker 1: a low percentage of people that take showers at night. No, man, 90 00:03:56,120 --> 00:03:57,640 Speaker 1: there's gotta be someone else out there. Just like the 91 00:03:57,640 --> 00:03:59,240 Speaker 1: hot water thing. I think there's folks out there who 92 00:03:59,280 --> 00:04:01,760 Speaker 1: also shower and it, but sometimes they're probably the same 93 00:04:01,840 --> 00:04:04,560 Speaker 1: four people. But I know that if I get back 94 00:04:04,560 --> 00:04:06,280 Speaker 1: on the computer for a little bit more and hammer 95 00:04:06,280 --> 00:04:08,120 Speaker 1: out a few more emails or do some outlines or 96 00:04:08,120 --> 00:04:09,720 Speaker 1: just some other work that I know it needs to happen. 97 00:04:09,720 --> 00:04:11,520 Speaker 1: It's not just for ten minutes. It ends up being 98 00:04:11,520 --> 00:04:13,400 Speaker 1: for thirty minutes or an hour, and then I stay 99 00:04:13,440 --> 00:04:15,560 Speaker 1: up late, and it's it's not a priority of mine. 100 00:04:15,560 --> 00:04:17,480 Speaker 1: I know, I want to try to go to bed sooner. Yeah, 101 00:04:17,520 --> 00:04:20,560 Speaker 1: And I think that's why the mission statement is helpful, 102 00:04:20,640 --> 00:04:23,839 Speaker 1: because it's that kind of kicking the pants, the reinforcement 103 00:04:24,000 --> 00:04:26,800 Speaker 1: when you are doing something that essentially violates your mission statement. 104 00:04:27,000 --> 00:04:30,000 Speaker 1: It's a reminder, right that general push to to actually 105 00:04:30,000 --> 00:04:32,280 Speaker 1: live life according to the terms that you want, and 106 00:04:32,320 --> 00:04:34,920 Speaker 1: not to just be pushed into a way of living 107 00:04:35,240 --> 00:04:37,040 Speaker 1: by force. So I think it's good to be at 108 00:04:37,080 --> 00:04:39,240 Speaker 1: least aware of it. You know, anytime there's a nice 109 00:04:39,320 --> 00:04:41,200 Speaker 1: day like that, I think to myself, Man, this is 110 00:04:41,200 --> 00:04:43,120 Speaker 1: a time where I could have the flexibility if I 111 00:04:43,160 --> 00:04:46,680 Speaker 1: was more maybe diligent about getting my work done more 112 00:04:46,680 --> 00:04:49,880 Speaker 1: efficiently and to take advantage of the flexibility I have. 113 00:04:50,160 --> 00:04:52,240 Speaker 1: It's it's tricky, It's tough, all Joel. You want to 114 00:04:52,240 --> 00:04:55,680 Speaker 1: introduce the beer for this episode, Yeah, Matt. Today on 115 00:04:55,680 --> 00:04:59,039 Speaker 1: the show, we're drinking Boulevard Space Camper Cosmic I p A. 116 00:04:59,560 --> 00:05:02,880 Speaker 1: So this is a brand new release from Boulevard Brewing Company, 117 00:05:02,920 --> 00:05:04,760 Speaker 1: and our friend Hillary over there send us some of 118 00:05:04,760 --> 00:05:05,920 Speaker 1: the spears, so we're excited to have it on the 119 00:05:05,920 --> 00:05:08,799 Speaker 1: show today. Hillary, she's a listener and friend of the show. 120 00:05:09,279 --> 00:05:10,480 Speaker 1: So we'll let you know what we think about the 121 00:05:10,480 --> 00:05:12,560 Speaker 1: spear towards the end. And I'm excited to share this 122 00:05:12,600 --> 00:05:14,799 Speaker 1: one with you today. Man, while we talk about buying 123 00:05:14,839 --> 00:05:16,919 Speaker 1: a house, all right, Matt, The reason we need to 124 00:05:16,960 --> 00:05:19,920 Speaker 1: talk about actually buying a home is because the difference 125 00:05:19,960 --> 00:05:21,839 Speaker 1: between getting a house that you want and not getting 126 00:05:21,839 --> 00:05:24,520 Speaker 1: it can be incredibly small. There are a lot of 127 00:05:24,600 --> 00:05:26,960 Speaker 1: little things that can help your offers stand out and 128 00:05:27,000 --> 00:05:29,920 Speaker 1: they can make the buying process go more smoothly. And 129 00:05:30,000 --> 00:05:32,000 Speaker 1: most of us only buy a house once or twice 130 00:05:32,000 --> 00:05:35,279 Speaker 1: in our lifetime, a few times maybe, and so we 131 00:05:35,320 --> 00:05:37,040 Speaker 1: don't really know what to do. And even if we 132 00:05:37,120 --> 00:05:40,280 Speaker 1: bought a house five years ago, we've completely forgotten. Things 133 00:05:40,279 --> 00:05:42,320 Speaker 1: have changed and we need a helping hand. We need 134 00:05:42,360 --> 00:05:44,840 Speaker 1: to kind of know what the process is like so 135 00:05:44,880 --> 00:05:46,840 Speaker 1: that we can stand out when we're making an offer, 136 00:05:46,920 --> 00:05:48,719 Speaker 1: and so we can actually close on the house that 137 00:05:48,760 --> 00:05:51,680 Speaker 1: we want while getting the best rate in the best terms. Yeah, 138 00:05:51,839 --> 00:05:54,080 Speaker 1: on our last episode, one of the things we discussed 139 00:05:54,160 --> 00:05:57,760 Speaker 1: was getting a great realtor. However, different realtors have strengths 140 00:05:57,800 --> 00:06:00,200 Speaker 1: and yours. You know, they may be a great alter 141 00:06:00,320 --> 00:06:02,640 Speaker 1: but they may not be good at teaching you through 142 00:06:02,680 --> 00:06:05,320 Speaker 1: the process of the actual purchasing process. You know, they 143 00:06:05,360 --> 00:06:07,159 Speaker 1: might be great at negotiating, or they might know a 144 00:06:07,160 --> 00:06:10,000 Speaker 1: neighborhood really well. But if you're the kind of person 145 00:06:10,040 --> 00:06:12,200 Speaker 1: who likes to know every step of the way, like 146 00:06:12,240 --> 00:06:14,479 Speaker 1: what's happening now, what's happening now, Like, certainly we would 147 00:06:14,520 --> 00:06:17,080 Speaker 1: encourage you to ask, but yeah, this episode is for you. 148 00:06:17,120 --> 00:06:19,520 Speaker 1: We're gonna talk through all the different little steps of 149 00:06:19,520 --> 00:06:21,560 Speaker 1: submitting an offer and just all the small details that 150 00:06:21,600 --> 00:06:23,679 Speaker 1: go into that. And even if you have a great agent, 151 00:06:23,880 --> 00:06:26,000 Speaker 1: which is awesome, well, this is gonna help you be 152 00:06:26,040 --> 00:06:28,800 Speaker 1: able to ask the right questions because an agent is 153 00:06:28,880 --> 00:06:32,200 Speaker 1: often busy negotiating your deal right and getting the paperwork 154 00:06:32,279 --> 00:06:35,000 Speaker 1: together and making sure that you're shown the houses that 155 00:06:35,040 --> 00:06:37,360 Speaker 1: you're interested in even before that stuff happens, and so 156 00:06:37,560 --> 00:06:39,279 Speaker 1: they've got a lot on their plate and it's not 157 00:06:39,320 --> 00:06:41,720 Speaker 1: always based on negligence that they don't explain things well, 158 00:06:41,760 --> 00:06:43,480 Speaker 1: it's because they've got a lot going on. And so 159 00:06:43,560 --> 00:06:45,960 Speaker 1: this episode hopefully will give you the ability to ask 160 00:06:46,000 --> 00:06:48,960 Speaker 1: the right questions so that you can stay informed during 161 00:06:48,960 --> 00:06:51,240 Speaker 1: the process and make sure that you are watching your 162 00:06:51,240 --> 00:06:54,080 Speaker 1: own back because obviously your agent is trying to do that, 163 00:06:54,360 --> 00:06:57,280 Speaker 1: but more than anybody else's it's your responsibility to make 164 00:06:57,320 --> 00:07:00,440 Speaker 1: sure that that you're going about this process correctly. So 165 00:07:00,480 --> 00:07:02,400 Speaker 1: where we are now is that you've looked at tons 166 00:07:02,440 --> 00:07:04,920 Speaker 1: of houses, hopefully you've maybe even looked for a month 167 00:07:04,960 --> 00:07:07,479 Speaker 1: two months trying to find that right house, that that 168 00:07:07,520 --> 00:07:09,560 Speaker 1: house that you know will will work for you. And 169 00:07:09,600 --> 00:07:11,560 Speaker 1: so after the break, we're gonna get to the first 170 00:07:11,680 --> 00:07:14,080 Speaker 1: step that is required if you want to purchase a home, 171 00:07:14,120 --> 00:07:16,480 Speaker 1: and that's submitting an offer, you got to do that, 172 00:07:25,160 --> 00:07:27,280 Speaker 1: all right, Matt. Let's talk about submitting an offer. And 173 00:07:27,320 --> 00:07:30,000 Speaker 1: typically most people just don't think through this step enough. 174 00:07:30,200 --> 00:07:32,360 Speaker 1: They don't think that submitting an offer is actually all 175 00:07:32,400 --> 00:07:34,680 Speaker 1: that important. They're just trying to decide whether they're gonna 176 00:07:34,800 --> 00:07:37,120 Speaker 1: submit an offer with the asking price or not. But 177 00:07:37,160 --> 00:07:39,200 Speaker 1: there are all sorts of other things that you can 178 00:07:39,240 --> 00:07:42,640 Speaker 1: do to make your offer more competitive and increase the 179 00:07:42,720 --> 00:07:45,320 Speaker 1: likelihood of you actually going under contract on that home. 180 00:07:45,520 --> 00:07:46,880 Speaker 1: And so that's what we want to do. As we 181 00:07:46,920 --> 00:07:49,160 Speaker 1: talked through submitting an offer, and the first thing that 182 00:07:49,200 --> 00:07:51,360 Speaker 1: you should do when you're submitting an offer is have 183 00:07:51,480 --> 00:07:55,080 Speaker 1: your agent call the listing agent to kind of get 184 00:07:55,120 --> 00:07:57,280 Speaker 1: a feel for what's going on. This is when having 185 00:07:57,280 --> 00:07:58,920 Speaker 1: a great agent, like we talked about at the end 186 00:07:58,920 --> 00:08:01,320 Speaker 1: of last week's episode can pay off majorly for you. 187 00:08:01,640 --> 00:08:04,160 Speaker 1: So a personable agent can talk to the agent and 188 00:08:04,200 --> 00:08:06,960 Speaker 1: kind of get a feel for whether the seller needs 189 00:08:07,000 --> 00:08:10,120 Speaker 1: to move out quickly, is trying to sell a sap 190 00:08:10,160 --> 00:08:11,840 Speaker 1: and you might be able to infer from that that 191 00:08:11,840 --> 00:08:13,920 Speaker 1: they're actually willing to take a little bit less money 192 00:08:14,040 --> 00:08:16,040 Speaker 1: if you're willing to close in two weeks as opposed 193 00:08:16,080 --> 00:08:18,200 Speaker 1: to a month and a half. And maybe that's the 194 00:08:18,240 --> 00:08:20,880 Speaker 1: most important thing about your offer. For sellers, it's not 195 00:08:20,920 --> 00:08:23,600 Speaker 1: always about accepting the highest dollar amount. There's so many 196 00:08:23,600 --> 00:08:26,320 Speaker 1: other things that go into creating a winning offer, and 197 00:08:26,400 --> 00:08:27,880 Speaker 1: so we want to kind of tackle those. But that's 198 00:08:27,880 --> 00:08:29,720 Speaker 1: the first thing. Have your agent called the other agent 199 00:08:29,760 --> 00:08:32,080 Speaker 1: and get a feel for what's going on, Joel. A 200 00:08:32,120 --> 00:08:35,000 Speaker 1: great agent will will help you to obviously communicate with 201 00:08:35,040 --> 00:08:39,800 Speaker 1: the seller, and they will help convince the selling agent 202 00:08:39,960 --> 00:08:41,720 Speaker 1: to want to sell the house to you. You know, 203 00:08:41,720 --> 00:08:43,520 Speaker 1: they're they're there to talk you up and make you 204 00:08:43,559 --> 00:08:45,559 Speaker 1: look great. Yeah, and I swear I've got an agent 205 00:08:45,600 --> 00:08:47,920 Speaker 1: like that where she literally has that sort of power 206 00:08:47,960 --> 00:08:50,600 Speaker 1: over people to make them want to sell me the house. 207 00:08:50,679 --> 00:08:53,520 Speaker 1: And it is amazing. And a key thing that your 208 00:08:53,520 --> 00:08:55,520 Speaker 1: agent will help you to do is to figure out 209 00:08:55,520 --> 00:08:58,719 Speaker 1: how much to offer. Your agent can pull comps in 210 00:08:58,760 --> 00:09:01,480 Speaker 1: the area, actual stays that have gone through, and we'll 211 00:09:01,559 --> 00:09:04,200 Speaker 1: help you determine how much to offer. And these comparables 212 00:09:04,200 --> 00:09:08,080 Speaker 1: are based on other houses, the amenities that the houses have, 213 00:09:08,160 --> 00:09:10,720 Speaker 1: square footage, because what you really want to avoid doing 214 00:09:10,800 --> 00:09:13,160 Speaker 1: man is coming in with a crazy low offer where 215 00:09:13,160 --> 00:09:15,800 Speaker 1: you end up offending the seller and you've completely lost 216 00:09:15,840 --> 00:09:18,480 Speaker 1: your chance at purchasing that home. But when you're talking 217 00:09:18,559 --> 00:09:21,000 Speaker 1: with your agent about how much you should offer, just 218 00:09:21,080 --> 00:09:22,960 Speaker 1: make sure to stick to your budget. Like we talked 219 00:09:22,960 --> 00:09:25,920 Speaker 1: about before, it's really easy to get excited and emotionally 220 00:09:25,920 --> 00:09:28,040 Speaker 1: tied to a home that you've been looking at and 221 00:09:28,120 --> 00:09:31,079 Speaker 1: kind of pursuing, But it's really important to stick to 222 00:09:31,080 --> 00:09:33,120 Speaker 1: your budget at the same time, because you can find 223 00:09:33,120 --> 00:09:35,880 Speaker 1: yourself biting off more than you wanted to chew and 224 00:09:35,960 --> 00:09:38,360 Speaker 1: that's just not a position you want to be in. Okay, 225 00:09:38,440 --> 00:09:40,800 Speaker 1: so your offer, you've made it. But the fact is 226 00:09:40,920 --> 00:09:44,520 Speaker 1: the seller isn't likely to accept your offer straight up, 227 00:09:44,559 --> 00:09:47,320 Speaker 1: like as is. There's a good chance that there's gonna 228 00:09:47,360 --> 00:09:50,160 Speaker 1: be some negotiating going on. They are likely going to 229 00:09:50,240 --> 00:09:53,040 Speaker 1: submit a counter offer. It's not often that, you know, 230 00:09:53,080 --> 00:09:54,960 Speaker 1: whatever price that you throw out there to the to 231 00:09:55,000 --> 00:09:57,800 Speaker 1: the seller that they say, okay, all this looks awesome, 232 00:09:58,440 --> 00:10:00,760 Speaker 1: they're probably gonna counter in my go back and forth 233 00:10:00,800 --> 00:10:02,760 Speaker 1: a few rounds. And like, the reason I bring this 234 00:10:02,840 --> 00:10:04,719 Speaker 1: up is because this is when it starts getting kind 235 00:10:04,720 --> 00:10:07,199 Speaker 1: of real, you know, Joel, start biting your fingernails. Yeah, 236 00:10:07,280 --> 00:10:09,120 Speaker 1: like because you think crap, Like is this what I 237 00:10:09,120 --> 00:10:12,120 Speaker 1: am going to agree to pay for? And what's important? 238 00:10:12,160 --> 00:10:13,600 Speaker 1: And we're gonna get to this as well. But there's 239 00:10:13,640 --> 00:10:16,680 Speaker 1: a whole period of time where you can negotiate further 240 00:10:16,720 --> 00:10:19,720 Speaker 1: and make amendments to your offer, specifically depending on the 241 00:10:19,760 --> 00:10:22,439 Speaker 1: results of your inspection. So just know that there's more 242 00:10:22,440 --> 00:10:25,120 Speaker 1: wiggle room down the road and that chances are there's 243 00:10:25,120 --> 00:10:27,680 Speaker 1: going to be more negotiating and other counter offers that 244 00:10:27,760 --> 00:10:29,959 Speaker 1: can be made. So real quick, let's let's say a 245 00:10:29,960 --> 00:10:32,199 Speaker 1: few things that are gonna make you stand out as 246 00:10:32,240 --> 00:10:35,199 Speaker 1: having a better offer than other people. And for instance, 247 00:10:35,240 --> 00:10:37,800 Speaker 1: Matt and I we've talked before about putting down on 248 00:10:37,840 --> 00:10:40,480 Speaker 1: a home. If you have a higher down payment and 249 00:10:40,600 --> 00:10:42,800 Speaker 1: you write that into your offer and the seller then 250 00:10:42,880 --> 00:10:45,439 Speaker 1: knows that you've got cash in the bank, they're much 251 00:10:45,480 --> 00:10:48,560 Speaker 1: more likely to accept your offer than someone going with 252 00:10:48,600 --> 00:10:51,400 Speaker 1: a three and a half percent down FH loan. Your 253 00:10:51,559 --> 00:10:55,920 Speaker 1: likelihood of getting through the financing process is much greater 254 00:10:56,080 --> 00:10:57,880 Speaker 1: if you've got a lot of cash, you know, sitting 255 00:10:57,920 --> 00:10:59,400 Speaker 1: in the bank and you're ready to put it down 256 00:10:59,400 --> 00:11:01,640 Speaker 1: towards that home. Yeah, I mean, another aspect is the 257 00:11:01,679 --> 00:11:03,439 Speaker 1: earnest money, Like, this is money that you've got to 258 00:11:03,480 --> 00:11:06,040 Speaker 1: put down to put towards the closing and then obviously 259 00:11:06,040 --> 00:11:07,679 Speaker 1: it goes towards the total amount and do at the 260 00:11:07,679 --> 00:11:10,680 Speaker 1: closing table. But you know, you could technically put down 261 00:11:10,800 --> 00:11:13,480 Speaker 1: five dollars for earnest money, but the seller is probably 262 00:11:13,520 --> 00:11:15,880 Speaker 1: gonna look at you and think, nah, you're crazy, Like, 263 00:11:15,920 --> 00:11:17,920 Speaker 1: who are you putting down five dollars? Earn this money 264 00:11:17,920 --> 00:11:20,800 Speaker 1: can typically vary between one to five percent of the 265 00:11:20,800 --> 00:11:23,200 Speaker 1: purchase price. Most deals that I've done, it's just sort 266 00:11:23,200 --> 00:11:24,520 Speaker 1: of just a set amount. It's like, all right, you 267 00:11:24,559 --> 00:11:26,000 Speaker 1: want to put two or three grand down, or you 268 00:11:26,040 --> 00:11:28,079 Speaker 1: wanna put five or seven just to make it look 269 00:11:28,120 --> 00:11:30,880 Speaker 1: really strong. But generally speaking, the more earnest money that 270 00:11:30,920 --> 00:11:33,400 Speaker 1: you can put down when you submit your offer, it 271 00:11:33,440 --> 00:11:35,800 Speaker 1: looks more attractive to the seller because they see that 272 00:11:35,840 --> 00:11:37,640 Speaker 1: you're being serious and then you're not messing around and 273 00:11:37,679 --> 00:11:39,920 Speaker 1: wasting your time. Yeah, kind of an outside of the 274 00:11:39,960 --> 00:11:42,760 Speaker 1: box way to make your offer look a little bit 275 00:11:42,760 --> 00:11:46,040 Speaker 1: stronger too, is to write a personal letter to the 276 00:11:46,120 --> 00:11:49,280 Speaker 1: seller and they want to always read it. It's not 277 00:11:49,320 --> 00:11:51,840 Speaker 1: always a winner, but that's one thing that can help 278 00:11:51,840 --> 00:11:55,480 Speaker 1: you stand out if two offers are incredibly similar, and 279 00:11:55,760 --> 00:11:58,520 Speaker 1: I got a personal letter from someone that really fell 280 00:11:58,520 --> 00:12:01,079 Speaker 1: in love with the house, wanted to talk about what 281 00:12:01,120 --> 00:12:03,800 Speaker 1: their future looked like in the house, and explained that 282 00:12:03,840 --> 00:12:05,960 Speaker 1: they wanted to put a garden out back, or how 283 00:12:06,040 --> 00:12:08,520 Speaker 1: they wanted to eventually raise a family there someday, something 284 00:12:08,559 --> 00:12:10,120 Speaker 1: like that like that would kind of tug at my 285 00:12:10,120 --> 00:12:12,080 Speaker 1: heart strings. And if it was a thousand or two 286 00:12:12,080 --> 00:12:14,680 Speaker 1: thousand dollars difference, or it was a difference of earnest 287 00:12:14,679 --> 00:12:16,839 Speaker 1: money or something like that, like I would be much 288 00:12:16,880 --> 00:12:19,520 Speaker 1: more likely to consider the person with the slightly weaker 289 00:12:19,559 --> 00:12:22,199 Speaker 1: offer that submitted a handwritten note telling me how much 290 00:12:22,200 --> 00:12:23,640 Speaker 1: they love the house and and you want the house 291 00:12:23,640 --> 00:12:26,320 Speaker 1: you're selling to go into good hands, and so that 292 00:12:26,679 --> 00:12:29,040 Speaker 1: one kind of outside of the box way to approach 293 00:12:29,080 --> 00:12:32,600 Speaker 1: submitting an offer can make the difference between potentially in 294 00:12:32,600 --> 00:12:35,000 Speaker 1: a tight market in a bidding war, can make the 295 00:12:35,000 --> 00:12:37,319 Speaker 1: difference between you getting a house or not. Yeah, Joel, 296 00:12:37,320 --> 00:12:39,600 Speaker 1: that's a great example. And that's something that Kate and 297 00:12:39,600 --> 00:12:42,360 Speaker 1: I did in this house and the house ever recording, 298 00:12:42,360 --> 00:12:45,120 Speaker 1: and we had reached out a few months before the 299 00:12:45,160 --> 00:12:47,200 Speaker 1: house was ever even on the market, before it was 300 00:12:47,240 --> 00:12:49,640 Speaker 1: even an option for them to sell. And we you know, 301 00:12:49,679 --> 00:12:51,520 Speaker 1: we just touched base and kind of explained to them 302 00:12:51,520 --> 00:12:53,760 Speaker 1: our situation, and you know, they kindly got back and 303 00:12:53,760 --> 00:12:55,680 Speaker 1: said that they weren't in a position to sell. But 304 00:12:55,720 --> 00:12:57,920 Speaker 1: guess what in the coming months when they were in 305 00:12:57,960 --> 00:12:59,320 Speaker 1: a position to sell, and they knew that they were 306 00:12:59,320 --> 00:13:00,640 Speaker 1: ready to get rid of the house because I mean 307 00:13:00,679 --> 00:13:03,559 Speaker 1: they were living overseas. Guess who were the first folks 308 00:13:03,559 --> 00:13:06,440 Speaker 1: that they contacted. It was me and my and my 309 00:13:06,520 --> 00:13:08,800 Speaker 1: wife and so we in in this instance, we were 310 00:13:08,840 --> 00:13:10,760 Speaker 1: able to get the home without it even going on 311 00:13:10,800 --> 00:13:13,640 Speaker 1: the market, which is really key because at that point 312 00:13:13,679 --> 00:13:16,560 Speaker 1: you're avoiding the competition and other folks that are also 313 00:13:16,880 --> 00:13:19,440 Speaker 1: interested in the house, and that can also drive up 314 00:13:19,440 --> 00:13:21,480 Speaker 1: the price. Yeah, that's pretty sweet, mat You've got a 315 00:13:21,480 --> 00:13:23,280 Speaker 1: good deal on that. And also you want to consider 316 00:13:23,320 --> 00:13:25,520 Speaker 1: things like the schedule of when you're closing. Like I 317 00:13:25,520 --> 00:13:28,160 Speaker 1: mentioned earlier, when you're talking to your agent, if it 318 00:13:28,200 --> 00:13:29,679 Speaker 1: sounds like the seller needs to be out of their 319 00:13:29,679 --> 00:13:33,040 Speaker 1: home quickly, submitting an offer with a closing date that 320 00:13:33,120 --> 00:13:35,760 Speaker 1: happened sooner is a better way to go, right And 321 00:13:35,760 --> 00:13:38,120 Speaker 1: if you can make that happen, your offer just became 322 00:13:38,200 --> 00:13:40,400 Speaker 1: a whole lot stronger, and the closing date can just 323 00:13:40,440 --> 00:13:43,920 Speaker 1: be a crucial factor of whether your offer is going 324 00:13:43,960 --> 00:13:46,679 Speaker 1: to be even considered or not. So, yeah, you want 325 00:13:46,679 --> 00:13:48,400 Speaker 1: to make sure you kind of understand what the seller 326 00:13:48,440 --> 00:13:51,520 Speaker 1: wants and submit a closing date in your offer that 327 00:13:51,679 --> 00:13:54,000 Speaker 1: kind of functions in accordance with that. Yeah, and just 328 00:13:54,000 --> 00:13:56,400 Speaker 1: being flexible because in your instance, you're talking about it 329 00:13:56,400 --> 00:13:58,400 Speaker 1: bumping up, but it could be the exact opposite. It 330 00:13:58,400 --> 00:14:01,120 Speaker 1: just depends on the seller that's oler might realize that well, 331 00:14:01,160 --> 00:14:02,800 Speaker 1: they wanted to go ahead and get it listed. The 332 00:14:02,960 --> 00:14:04,439 Speaker 1: fact is that they don't want to move until the 333 00:14:04,520 --> 00:14:06,240 Speaker 1: end of the summer. And so if you have the 334 00:14:06,280 --> 00:14:08,760 Speaker 1: flexibility to say, well, all right, that that works for us. 335 00:14:08,760 --> 00:14:10,280 Speaker 1: You know, we don't need to move in until August 336 00:14:10,280 --> 00:14:13,160 Speaker 1: as well, your offer just became so much more valuable 337 00:14:13,160 --> 00:14:15,000 Speaker 1: in their eyes, and they're gonna want to lock that 338 00:14:15,040 --> 00:14:17,320 Speaker 1: down they can move on with their life and focus 339 00:14:17,320 --> 00:14:19,720 Speaker 1: on where they're gonna move next. And so these are 340 00:14:19,720 --> 00:14:22,520 Speaker 1: all the key points that make your offer look good 341 00:14:22,760 --> 00:14:25,840 Speaker 1: and attractive to a seller. Also baked into your offer 342 00:14:25,880 --> 00:14:30,360 Speaker 1: though our contingencies, and essentially these are like escape clauses. 343 00:14:30,560 --> 00:14:32,040 Speaker 1: This allows you to kind of pull that rip chord 344 00:14:32,240 --> 00:14:34,760 Speaker 1: just in case things kind of get dicey, because often, 345 00:14:34,880 --> 00:14:37,440 Speaker 1: especially with the first time homebuyers, you think, well, at 346 00:14:37,480 --> 00:14:39,640 Speaker 1: what point can I turn back? Like is it too late? 347 00:14:39,680 --> 00:14:41,880 Speaker 1: Like are we agreed to purchase this home? If we 348 00:14:41,960 --> 00:14:44,000 Speaker 1: back down now, would we lose our earnest money that 349 00:14:44,040 --> 00:14:46,040 Speaker 1: we've put down? Because obviously you want your offer to 350 00:14:46,080 --> 00:14:48,200 Speaker 1: look really good, so you've put down a healthy amount 351 00:14:48,240 --> 00:14:50,520 Speaker 1: of earnest money. And so with the help of your realtor, 352 00:14:50,760 --> 00:14:53,520 Speaker 1: what you'll want to have done is put these contingencies 353 00:14:53,560 --> 00:14:56,479 Speaker 1: within your offer. And these are things like your financing, 354 00:14:56,800 --> 00:15:00,480 Speaker 1: inspection and appraisal contingency, Like these are all things allow 355 00:15:00,560 --> 00:15:03,520 Speaker 1: you to back out of the deal if these things 356 00:15:03,560 --> 00:15:05,520 Speaker 1: aren't met. And so, Joe, you wanna kick it off 357 00:15:05,600 --> 00:15:08,120 Speaker 1: with the financing continguency. Yeah, it gives you some peace 358 00:15:08,120 --> 00:15:10,920 Speaker 1: of mind, right, And so yeah, the financing contingency is 359 00:15:10,920 --> 00:15:12,360 Speaker 1: is one that you're gonna want to have in there. 360 00:15:12,520 --> 00:15:14,480 Speaker 1: You're gonna want to make sure that during that due 361 00:15:14,480 --> 00:15:18,520 Speaker 1: diligence period that with the financing contingency in place, you 362 00:15:18,560 --> 00:15:22,040 Speaker 1: can back out with no financial penalty to you if 363 00:15:22,240 --> 00:15:25,160 Speaker 1: you aren't able to secure financing from a lender. And 364 00:15:25,200 --> 00:15:27,800 Speaker 1: by the way, this due diligence period that we're talking about, 365 00:15:27,840 --> 00:15:30,440 Speaker 1: I would say that an average due diligence period lasts 366 00:15:30,440 --> 00:15:33,960 Speaker 1: about seven days. But make sure to ask your realtor 367 00:15:34,000 --> 00:15:36,960 Speaker 1: whether there is a state law that influences the length 368 00:15:37,000 --> 00:15:40,000 Speaker 1: of the due diligence period. It's a really important time 369 00:15:40,040 --> 00:15:41,320 Speaker 1: for you to kind of get your ducks in a 370 00:15:41,400 --> 00:15:43,200 Speaker 1: row to make sure that this is the house you 371 00:15:43,240 --> 00:15:45,520 Speaker 1: still want to buy. And so as you're lining up 372 00:15:45,520 --> 00:15:48,240 Speaker 1: your your financing, you'll want to get sort of your 373 00:15:48,240 --> 00:15:51,040 Speaker 1: final approval for that specific house that you're making an 374 00:15:51,040 --> 00:15:54,400 Speaker 1: offer on. And another thing that's important to keep in 375 00:15:54,440 --> 00:15:55,640 Speaker 1: mind too, is that you want to make sure that 376 00:15:55,680 --> 00:15:58,160 Speaker 1: you haven't you know, gotten new credit. Like so from 377 00:15:58,160 --> 00:16:00,560 Speaker 1: the time you were preapproved. You know, talked about that 378 00:16:00,600 --> 00:16:02,840 Speaker 1: in the previous two episodes ago, the things that you 379 00:16:02,840 --> 00:16:05,360 Speaker 1: want to do before you purchase a home, but you 380 00:16:05,400 --> 00:16:07,840 Speaker 1: want to make sure that you're not getting new credit. 381 00:16:07,880 --> 00:16:09,120 Speaker 1: You want to make sure you haven't applied for a 382 00:16:09,160 --> 00:16:11,800 Speaker 1: new loan. Even getting a new credit card could drop 383 00:16:11,800 --> 00:16:15,160 Speaker 1: your credit score enough to where you might not qualify 384 00:16:15,280 --> 00:16:17,680 Speaker 1: for that loan that you did qualify for. Even a 385 00:16:17,680 --> 00:16:20,160 Speaker 1: few weeks before. Yeah, it could mean the difference between 386 00:16:20,200 --> 00:16:22,520 Speaker 1: getting the house or not. And even if it doesn't 387 00:16:22,520 --> 00:16:24,280 Speaker 1: mean that, it could just mean a higher interest rate 388 00:16:24,320 --> 00:16:26,920 Speaker 1: for you because you pulled out some new credit and 389 00:16:26,960 --> 00:16:29,720 Speaker 1: it dropped your credit score and therefore you don't qualify 390 00:16:29,880 --> 00:16:32,280 Speaker 1: for quite as good of a rate. And so another 391 00:16:32,400 --> 00:16:35,520 Speaker 1: huge contingency that you'll have worked into your offer is 392 00:16:35,560 --> 00:16:38,920 Speaker 1: the inspection contingency. And it even allows you to back 393 00:16:38,920 --> 00:16:41,240 Speaker 1: out of the house even completely if there are so 394 00:16:41,280 --> 00:16:42,920 Speaker 1: many repairs that are going to have to be done 395 00:16:43,360 --> 00:16:45,640 Speaker 1: and it's just more than you're willing to take on. Yeah, 396 00:16:45,680 --> 00:16:49,200 Speaker 1: it's really important not to skimp on an inspection because, yeah, 397 00:16:49,200 --> 00:16:52,640 Speaker 1: they're typically in the realm of three five hundred dollars, 398 00:16:52,840 --> 00:16:54,680 Speaker 1: could be even more depending on the size of the 399 00:16:54,720 --> 00:16:57,880 Speaker 1: home or whether it's a multifamily property. But just like 400 00:16:57,920 --> 00:16:59,880 Speaker 1: a good realtor is worth their weight in gold, so 401 00:17:00,200 --> 00:17:02,640 Speaker 1: is a good home inspector. You want to do your research, 402 00:17:02,920 --> 00:17:05,680 Speaker 1: find a good one, and it's preferable to be there 403 00:17:05,720 --> 00:17:08,000 Speaker 1: while the home inspector is looking through the home. You're 404 00:17:08,000 --> 00:17:10,119 Speaker 1: gonna learn a lot about the house while you're doing it, 405 00:17:10,400 --> 00:17:12,080 Speaker 1: a lot more than you can learn just from reading 406 00:17:12,080 --> 00:17:14,600 Speaker 1: the report afterwards. Being there with the home inspector I 407 00:17:14,640 --> 00:17:17,080 Speaker 1: have found throughout the years has been really really helpful 408 00:17:17,119 --> 00:17:20,320 Speaker 1: to me. There was one time where I skipped altogether 409 00:17:20,480 --> 00:17:23,040 Speaker 1: getting a home inspector out of property I was buying, 410 00:17:23,280 --> 00:17:25,720 Speaker 1: and I realized that in the end it cost me 411 00:17:25,760 --> 00:17:27,959 Speaker 1: a lot more than that fo I saved because when 412 00:17:28,000 --> 00:17:31,160 Speaker 1: it came to the negotiations during the due diligence period, well, 413 00:17:31,200 --> 00:17:34,080 Speaker 1: I didn't have a home inspection report and the claims 414 00:17:34,119 --> 00:17:35,879 Speaker 1: I was making. I'd had a contractor come in and 415 00:17:35,880 --> 00:17:37,440 Speaker 1: look at the home and he kind of gave me 416 00:17:37,480 --> 00:17:39,560 Speaker 1: some ideas of the things that were wrong, but there 417 00:17:39,600 --> 00:17:41,760 Speaker 1: was no report to go on, and so so my 418 00:17:41,840 --> 00:17:45,119 Speaker 1: leverage when it came to negotiating was completely stripped away. 419 00:17:45,240 --> 00:17:48,840 Speaker 1: That would be an example of being cheap over frugal, exactly, exactly, 420 00:17:49,000 --> 00:17:51,119 Speaker 1: no doubt it was. It was, and I learned my lesson, 421 00:17:51,160 --> 00:17:54,120 Speaker 1: like I'm always having a home inspector and so many 422 00:17:54,160 --> 00:17:56,080 Speaker 1: of the other times when I bought a house, having 423 00:17:56,080 --> 00:17:58,639 Speaker 1: a home inspection just helped me so much at the 424 00:17:58,680 --> 00:18:01,920 Speaker 1: negotiation table, to the tune of thousands and thousands of dollars. 425 00:18:02,200 --> 00:18:04,160 Speaker 1: And Johan, you mentioned kind of meeting with the inspector 426 00:18:04,240 --> 00:18:06,439 Speaker 1: after the fact, and I think that's that's incredibly important 427 00:18:06,440 --> 00:18:08,760 Speaker 1: as well, because in person, there's a lot more Like 428 00:18:08,760 --> 00:18:11,280 Speaker 1: you said, that the inspector can communicate to you face 429 00:18:11,320 --> 00:18:13,160 Speaker 1: to face, like you look at the report and there's 430 00:18:13,160 --> 00:18:15,200 Speaker 1: gonna be things that are wrong with your house. That's 431 00:18:15,240 --> 00:18:18,119 Speaker 1: just facts, like, it's just how it is. And especially 432 00:18:18,160 --> 00:18:20,200 Speaker 1: to the first time HomeBuyer, you're gonna get that inspection 433 00:18:20,240 --> 00:18:22,320 Speaker 1: report and you're gonna think this house is about to 434 00:18:22,320 --> 00:18:25,480 Speaker 1: fall over because of all the write ups. Especially, Yeah, 435 00:18:25,480 --> 00:18:28,520 Speaker 1: it's it's alarming. Yeah, especially in older homes like we 436 00:18:28,600 --> 00:18:31,520 Speaker 1: tend to own in this area. But you know, meeting 437 00:18:31,640 --> 00:18:33,800 Speaker 1: them face to face will help you to kind of 438 00:18:33,880 --> 00:18:37,439 Speaker 1: rank and prioritize these fixes that that need to take place, 439 00:18:37,760 --> 00:18:39,840 Speaker 1: versus you feeling like, oh, this house needs to be 440 00:18:39,840 --> 00:18:43,000 Speaker 1: bulldozed because everything seems to be broken. Yeah. Completely. I 441 00:18:43,000 --> 00:18:45,520 Speaker 1: feel like a first time home buyer sees the report 442 00:18:45,760 --> 00:18:48,920 Speaker 1: oftentimes and and they're just totally shocked. It freaks them out. 443 00:18:49,040 --> 00:18:51,200 Speaker 1: And being able to look your inspector in the eye 444 00:18:51,200 --> 00:18:54,280 Speaker 1: and say, okay, translate this into plain English for me 445 00:18:54,480 --> 00:18:55,919 Speaker 1: and let me know what you actually think of the 446 00:18:55,920 --> 00:18:58,800 Speaker 1: home that's just so helpful for you as the buyer, 447 00:18:59,160 --> 00:19:01,800 Speaker 1: and the report let that be the shocking thing that 448 00:19:01,920 --> 00:19:05,199 Speaker 1: then allows you to make negotiations. But knowing what you 449 00:19:05,200 --> 00:19:07,080 Speaker 1: know kind of what the home inspector thinks overall about 450 00:19:07,080 --> 00:19:09,719 Speaker 1: the home is like really helpful for you as you 451 00:19:09,760 --> 00:19:12,080 Speaker 1: decide whether or not to move forward. Yeah, and Joel, 452 00:19:12,080 --> 00:19:14,520 Speaker 1: you mentioned negotiating, and so that's the next step. So 453 00:19:14,560 --> 00:19:17,480 Speaker 1: after you have that report, essentially you can earn back 454 00:19:17,640 --> 00:19:20,159 Speaker 1: all that money that you spent on the inspection and 455 00:19:20,200 --> 00:19:23,040 Speaker 1: even more if there are some things that are aging 456 00:19:23,160 --> 00:19:25,520 Speaker 1: or things that are completely done maybe incorrectly on the home, 457 00:19:25,800 --> 00:19:27,440 Speaker 1: you know, like if you have a furnace getting ready 458 00:19:27,440 --> 00:19:28,960 Speaker 1: to go out or a roof. So each one of 459 00:19:29,000 --> 00:19:31,440 Speaker 1: those is five thousand dollars and so that's ten thousand 460 00:19:31,480 --> 00:19:33,880 Speaker 1: dollars that you may have missed out on the opportunity 461 00:19:33,920 --> 00:19:37,560 Speaker 1: to negotiate down And we're big fans of getting the 462 00:19:37,600 --> 00:19:40,720 Speaker 1: dollar amount reduced, you know, adjusted off of the selling 463 00:19:40,720 --> 00:19:44,600 Speaker 1: price versus having the seller actually do that work because 464 00:19:44,640 --> 00:19:47,280 Speaker 1: you can work with contractors that you maybe are more 465 00:19:47,320 --> 00:19:49,359 Speaker 1: familiar with. The other thing is too, is that you 466 00:19:49,359 --> 00:19:52,120 Speaker 1: can have that work done on your own timeline. It's 467 00:19:52,119 --> 00:19:54,400 Speaker 1: not like, well, it's like the roof is getting kind 468 00:19:54,400 --> 00:19:56,840 Speaker 1: of old, but you know they could last another three years, 469 00:19:56,840 --> 00:19:58,919 Speaker 1: So why not waiting another three years before we need 470 00:19:58,920 --> 00:20:01,280 Speaker 1: to replace the roof or anything. With the furnace, it's like, Okay, 471 00:20:01,280 --> 00:20:03,680 Speaker 1: that's an eighteen year old furnace. Chances are it's gonna 472 00:20:03,680 --> 00:20:05,840 Speaker 1: be out soon, but it's working right now, and so 473 00:20:05,920 --> 00:20:08,480 Speaker 1: I'm gonna be inclined to let that furnace stay for 474 00:20:08,480 --> 00:20:12,199 Speaker 1: another three to five, who knows, maybe ten years. But 475 00:20:12,240 --> 00:20:13,600 Speaker 1: the fact is, you want to make sure you do 476 00:20:13,680 --> 00:20:16,080 Speaker 1: have that money set aside for that system when it 477 00:20:16,119 --> 00:20:19,720 Speaker 1: does eventually crash. Yeah, And most sellers they don't want 478 00:20:19,760 --> 00:20:22,920 Speaker 1: to be scheduling contractors and workers to come in and 479 00:20:22,960 --> 00:20:25,520 Speaker 1: make prepares on their house. And so if you can 480 00:20:25,560 --> 00:20:28,040 Speaker 1: find a sweet spot of a dollar amount off of 481 00:20:28,080 --> 00:20:30,000 Speaker 1: the final purchase price of the home, I mean, that's 482 00:20:30,040 --> 00:20:31,879 Speaker 1: gonna be the best way to do it, not just 483 00:20:31,920 --> 00:20:34,879 Speaker 1: for you, put for the seller in most cases. So 484 00:20:35,000 --> 00:20:37,320 Speaker 1: keep that in mind. Instead of having a laundry list 485 00:20:37,400 --> 00:20:40,240 Speaker 1: of issues that you want the seller to address, just 486 00:20:40,280 --> 00:20:42,159 Speaker 1: ask for money off the price of the house. And 487 00:20:42,160 --> 00:20:43,800 Speaker 1: I also wanted to mention to like try not to 488 00:20:43,880 --> 00:20:45,800 Speaker 1: let your emotions get the best of you, because there's 489 00:20:45,800 --> 00:20:47,200 Speaker 1: gonna be a lot of negotiating. There's gonna be a 490 00:20:47,200 --> 00:20:49,800 Speaker 1: lot offers going back and forth, and they're gonna say no, 491 00:20:49,960 --> 00:20:52,359 Speaker 1: like are you crazy, you know, whatever they decide to 492 00:20:52,400 --> 00:20:54,639 Speaker 1: tell you, and it might start to feel personal, but 493 00:20:54,760 --> 00:20:57,080 Speaker 1: the fact is is it's a game. They are trying 494 00:20:57,080 --> 00:20:59,520 Speaker 1: to get the best dollar for their property, and you're 495 00:20:59,520 --> 00:21:01,760 Speaker 1: trying to spend as little as possible as well. So 496 00:21:02,160 --> 00:21:05,080 Speaker 1: this is another reason that having a great agent will 497 00:21:05,119 --> 00:21:07,520 Speaker 1: insulate you from that a little bit, because they're used 498 00:21:07,560 --> 00:21:09,960 Speaker 1: to taking the responses from the sellers and sort of 499 00:21:09,960 --> 00:21:12,760 Speaker 1: translating that into language that maybe your agent knows that 500 00:21:12,840 --> 00:21:15,520 Speaker 1: you can handle. But yeah, just don't let it get personal. 501 00:21:15,560 --> 00:21:17,320 Speaker 1: It's just about each party trying to get the best 502 00:21:17,320 --> 00:21:19,800 Speaker 1: bang for their buck. You're gonna want to be aware too, 503 00:21:19,960 --> 00:21:22,399 Speaker 1: that your lender is going to order an appraisal to 504 00:21:22,440 --> 00:21:24,320 Speaker 1: assess the value of the house to make sure that 505 00:21:24,320 --> 00:21:27,760 Speaker 1: what you're paying is the same or potentially less than 506 00:21:27,880 --> 00:21:30,639 Speaker 1: what the house is worth according to an appraiser. And 507 00:21:30,680 --> 00:21:33,520 Speaker 1: if for some reason that appraisal comes in lower than 508 00:21:33,560 --> 00:21:36,280 Speaker 1: the agreed to purchase price, well then you have an 509 00:21:36,280 --> 00:21:38,840 Speaker 1: option to either back out or to renegotiate the price. 510 00:21:39,160 --> 00:21:41,240 Speaker 1: But just be aware that an appraisal is a standard 511 00:21:41,280 --> 00:21:44,280 Speaker 1: thing that happens in pretty much every home buying situation. 512 00:21:44,640 --> 00:21:47,920 Speaker 1: So that's a list of things that happened during due diligence, 513 00:21:47,920 --> 00:21:50,040 Speaker 1: And keep in mind there's other contingencies as well, so 514 00:21:50,080 --> 00:21:51,800 Speaker 1: make sure you check with your your realtor on that. 515 00:21:52,160 --> 00:21:54,359 Speaker 1: And so after the break, we're gonna talk about things 516 00:21:54,359 --> 00:21:58,280 Speaker 1: that happen after due diligence leading up to actually closing 517 00:21:58,359 --> 00:22:09,360 Speaker 1: on the house, all right, Matt, So once due diligence 518 00:22:09,560 --> 00:22:11,960 Speaker 1: is completely done with, you're gonna want to continue to 519 00:22:12,000 --> 00:22:14,240 Speaker 1: work with your lender and make sure they have all 520 00:22:14,320 --> 00:22:17,080 Speaker 1: the financial documents that they need to make sure that 521 00:22:17,119 --> 00:22:19,040 Speaker 1: you can close on time, because, to be honest, that's 522 00:22:19,080 --> 00:22:21,320 Speaker 1: a huge pain in the entire process, right is getting 523 00:22:21,359 --> 00:22:24,199 Speaker 1: your tax returns, your W two's, everything over to your 524 00:22:24,280 --> 00:22:27,000 Speaker 1: lender to make sure that they have all the information 525 00:22:27,119 --> 00:22:29,200 Speaker 1: they need so that you can actually buy the house. Also, 526 00:22:29,240 --> 00:22:31,560 Speaker 1: you're gonna want to talk to your insurance agent or 527 00:22:31,600 --> 00:22:34,399 Speaker 1: your insurance company to make sure that they know that 528 00:22:34,440 --> 00:22:36,480 Speaker 1: you're buying this house. They can get you a quote 529 00:22:36,480 --> 00:22:39,159 Speaker 1: on homeowners insurance and just make sure that you have 530 00:22:39,320 --> 00:22:41,959 Speaker 1: a policy because you're gonna need that at the closing 531 00:22:42,000 --> 00:22:44,480 Speaker 1: table for this new home purchase and the next This 532 00:22:44,520 --> 00:22:46,080 Speaker 1: is gonna seem kind of basic, but you want to 533 00:22:46,080 --> 00:22:48,879 Speaker 1: make sure you've got your utilities and even your mail 534 00:22:49,600 --> 00:22:52,240 Speaker 1: scheduled to start when you are going to close on 535 00:22:52,280 --> 00:22:54,960 Speaker 1: that house. At this point in the process, the date 536 00:22:55,000 --> 00:22:57,560 Speaker 1: has already been set for the actual closing, and so 537 00:22:57,600 --> 00:22:59,440 Speaker 1: you want to make sure that you've got those utilities 538 00:22:59,440 --> 00:23:01,399 Speaker 1: ready to go so you can maybe pick up that 539 00:23:01,520 --> 00:23:04,320 Speaker 1: pizza and go sit on the dining room floor and 540 00:23:04,400 --> 00:23:07,560 Speaker 1: kind of celebrate after you close. One other really important 541 00:23:07,560 --> 00:23:09,040 Speaker 1: thing that you also want to make sure you have 542 00:23:09,200 --> 00:23:11,360 Speaker 1: ready to go before the closing date is you want 543 00:23:11,400 --> 00:23:14,400 Speaker 1: to make sure that you have received your wiring instructions 544 00:23:14,800 --> 00:23:16,600 Speaker 1: so that way you can have the funds where they 545 00:23:16,640 --> 00:23:19,320 Speaker 1: need to be by the specific date. And Joel I 546 00:23:19,359 --> 00:23:22,600 Speaker 1: mentioned this out of personal experience because the first investment 547 00:23:22,600 --> 00:23:26,399 Speaker 1: property that Kate and I purchased, we totally slacked. And 548 00:23:26,440 --> 00:23:28,600 Speaker 1: I don't know if it's that we slacked, or if 549 00:23:28,800 --> 00:23:31,040 Speaker 1: the lender slacked or what, but we did not receive 550 00:23:31,240 --> 00:23:33,960 Speaker 1: the wiring instructions or if we did. We skipped over 551 00:23:33,960 --> 00:23:36,040 Speaker 1: that email and we showed up at the closing table, 552 00:23:36,160 --> 00:23:38,880 Speaker 1: signed all the documents and they were asking, all right, 553 00:23:38,920 --> 00:23:42,080 Speaker 1: like we're the funds, like they should be here by now, right, dude, 554 00:23:42,080 --> 00:23:44,159 Speaker 1: We did not have the funds wired over and it 555 00:23:44,440 --> 00:23:46,000 Speaker 1: was at the end of the day, and we thought 556 00:23:46,000 --> 00:23:48,040 Speaker 1: we were gonna lose the deal because of this small detail, 557 00:23:48,200 --> 00:23:50,400 Speaker 1: even though it was tons and tons of money, because 558 00:23:50,400 --> 00:23:52,520 Speaker 1: it was a huge John payment, but you want to 559 00:23:52,520 --> 00:23:54,080 Speaker 1: make sure you've got that set up. You want to 560 00:23:54,080 --> 00:23:56,960 Speaker 1: make sure there's no last minute snaphoos. In our case, 561 00:23:57,119 --> 00:23:59,520 Speaker 1: the closing attorney they just made some adjustments to the 562 00:23:59,560 --> 00:24:02,480 Speaker 1: all the clothes documents and everybody was super cool. We 563 00:24:02,480 --> 00:24:04,320 Speaker 1: were so nervous though, we thought for sure that we 564 00:24:04,359 --> 00:24:07,280 Speaker 1: had lost the deal. And one thing on wiring funds, 565 00:24:07,280 --> 00:24:09,320 Speaker 1: I just wanted to quickly mention that there are actually 566 00:24:09,320 --> 00:24:12,040 Speaker 1: a lot of scams out there. There are some sophisticated 567 00:24:12,040 --> 00:24:15,439 Speaker 1: scammers that have figured out when individuals are closing on 568 00:24:15,480 --> 00:24:18,320 Speaker 1: a home and they are sending an email asking for 569 00:24:18,480 --> 00:24:22,120 Speaker 1: funds to be wired and they're siphoning forty fifty sixty 570 00:24:22,359 --> 00:24:25,520 Speaker 1: a hundred thousand dollar down payments from people, and there's 571 00:24:25,560 --> 00:24:28,280 Speaker 1: just no recourse once you get scammed and wire your 572 00:24:28,280 --> 00:24:30,879 Speaker 1: funds to a scam artist. And so just be aware 573 00:24:31,119 --> 00:24:33,360 Speaker 1: when you do get an email, it's best to call 574 00:24:33,400 --> 00:24:36,280 Speaker 1: your agent and call the closing attorney just to make 575 00:24:36,280 --> 00:24:38,600 Speaker 1: sure that you have the right instructions in hand. So 576 00:24:38,640 --> 00:24:40,280 Speaker 1: it's just something to kind of be aware of. Yeah, 577 00:24:40,320 --> 00:24:42,520 Speaker 1: that's crazy, man, I've never heard of that. So now 578 00:24:42,520 --> 00:24:43,800 Speaker 1: that we got that out of the way, let's talk 579 00:24:43,800 --> 00:24:45,840 Speaker 1: about the actual closing date and what someone buying a 580 00:24:45,880 --> 00:24:48,280 Speaker 1: home can expect. Yeah, Joe, this is like the actual 581 00:24:48,400 --> 00:24:50,320 Speaker 1: date that you go into sign all the documents to 582 00:24:50,400 --> 00:24:52,840 Speaker 1: purchase the house. And so typically this is at an 583 00:24:52,880 --> 00:24:55,479 Speaker 1: attorney's office and they're the ones who've put together all 584 00:24:55,480 --> 00:24:58,280 Speaker 1: the documents, all the all the legal papers, and most 585 00:24:58,320 --> 00:25:02,080 Speaker 1: of those are required specificically by the lender, assuming that 586 00:25:02,119 --> 00:25:05,199 Speaker 1: you're financing the house. But just be ready to spend 587 00:25:05,400 --> 00:25:09,000 Speaker 1: at least an hour signing form after form. There are 588 00:25:09,119 --> 00:25:11,000 Speaker 1: so many of them. And keep in mind to as 589 00:25:11,000 --> 00:25:12,800 Speaker 1: you're signing all these documents, if there's something that you 590 00:25:12,840 --> 00:25:15,560 Speaker 1: don't understand or something that sounds kind of weird to you, 591 00:25:16,000 --> 00:25:18,199 Speaker 1: just ask the closing attorney and man and all the 592 00:25:18,200 --> 00:25:20,800 Speaker 1: deals that we've ever done. The closing attorneys have been 593 00:25:20,920 --> 00:25:23,680 Speaker 1: so incredibly patient and kind, and I guess they're just 594 00:25:23,760 --> 00:25:25,200 Speaker 1: used to it. They're used to focus being in there, 595 00:25:25,320 --> 00:25:27,480 Speaker 1: not knowing what they're doing. They're signing their names on 596 00:25:27,480 --> 00:25:29,840 Speaker 1: all these papers, and I found that they're really experienced 597 00:25:29,880 --> 00:25:31,720 Speaker 1: when it comes to quickly explaining what it is that 598 00:25:31,760 --> 00:25:34,200 Speaker 1: you're signing. All right. So a big question that most 599 00:25:34,240 --> 00:25:37,120 Speaker 1: buyers have when they're at the closing table or even 600 00:25:37,160 --> 00:25:40,600 Speaker 1: before is who pays for what? And usually the closing 601 00:25:40,680 --> 00:25:43,280 Speaker 1: costs are paid by the buyer, So if you're the 602 00:25:43,280 --> 00:25:45,679 Speaker 1: one buying the home right, you're usually paying the closing 603 00:25:45,720 --> 00:25:49,000 Speaker 1: costs unless you have written that into the offer. And 604 00:25:49,160 --> 00:25:52,000 Speaker 1: in an intense market, you're typically not asking for closing 605 00:25:52,000 --> 00:25:53,879 Speaker 1: costs to be paid by the seller. But in a 606 00:25:53,880 --> 00:25:56,040 Speaker 1: more lax in a more buyers market, you might be 607 00:25:56,080 --> 00:25:58,560 Speaker 1: asking for closing costs from the seller, but just know 608 00:25:58,640 --> 00:26:01,240 Speaker 1: that that's typically paid the buyer unless you've put that 609 00:26:01,280 --> 00:26:03,040 Speaker 1: in the offer and it's been agreed to by the seller. 610 00:26:03,320 --> 00:26:07,000 Speaker 1: Real turpees are typically paid by the seller, again, unless 611 00:26:07,000 --> 00:26:09,359 Speaker 1: something different has been made clear in the offer that 612 00:26:09,440 --> 00:26:12,560 Speaker 1: you made earlier. Edul And additionally, those numbers should be 613 00:26:12,600 --> 00:26:15,320 Speaker 1: spelled out in your closing documents that you receive ahead 614 00:26:15,359 --> 00:26:17,280 Speaker 1: of time. That way, it's not the sort of last 615 00:26:17,320 --> 00:26:19,520 Speaker 1: minute a bit of information that you get surprised with 616 00:26:19,560 --> 00:26:21,760 Speaker 1: at the closing table. Yeah, your lender is going to 617 00:26:21,840 --> 00:26:24,879 Speaker 1: send you essentially a closing disclosure that will fill you 618 00:26:24,920 --> 00:26:27,920 Speaker 1: in on all the numbers, including the exact amount that 619 00:26:27,960 --> 00:26:30,080 Speaker 1: you are going to need to bring to the closing table, 620 00:26:30,320 --> 00:26:32,199 Speaker 1: so you know exactly how much you need to be 621 00:26:32,320 --> 00:26:35,840 Speaker 1: wiring uh to the closing attorney. Right Also too, we're 622 00:26:35,880 --> 00:26:38,480 Speaker 1: talking about the closing table. The seller may or may 623 00:26:38,480 --> 00:26:40,480 Speaker 1: not be sitting directly across from you at the table. 624 00:26:40,480 --> 00:26:42,840 Speaker 1: It just depends. I've had friends when they purchased homes 625 00:26:42,880 --> 00:26:44,679 Speaker 1: they never got to meet the seller, like they're in 626 00:26:44,680 --> 00:26:48,000 Speaker 1: a completely different room. And most instances where we've purchased, 627 00:26:48,040 --> 00:26:50,880 Speaker 1: we were literally sitting across the table, and that can 628 00:26:50,880 --> 00:26:52,600 Speaker 1: actually be a kind of cool time to talk to 629 00:26:52,640 --> 00:26:55,040 Speaker 1: them and get to know little quirks and weird things 630 00:26:55,080 --> 00:26:57,719 Speaker 1: about the house. We've gotten, like our alarm codes at 631 00:26:57,720 --> 00:26:59,600 Speaker 1: that point before, and we've kind of gotten the scoop 632 00:26:59,600 --> 00:27:01,840 Speaker 1: on neighbors that live on either side of the house 633 00:27:01,880 --> 00:27:04,800 Speaker 1: and just kind of getting that insider information, like directly 634 00:27:04,840 --> 00:27:06,960 Speaker 1: from the previous owner to be really helpful and sort 635 00:27:06,960 --> 00:27:09,520 Speaker 1: of like this cool passing of the torch. Yeah, for sure, 636 00:27:09,560 --> 00:27:10,840 Speaker 1: I found I found it to be kind of the 637 00:27:10,880 --> 00:27:13,920 Speaker 1: same whether it's an investment property or a personal property. 638 00:27:14,160 --> 00:27:16,159 Speaker 1: Just kind of talking to the previous owner is super helpful. 639 00:27:16,160 --> 00:27:17,720 Speaker 1: And I always like, hope they're there, right because I 640 00:27:18,320 --> 00:27:21,120 Speaker 1: learned a little bit more so once you're done, whether 641 00:27:21,280 --> 00:27:23,000 Speaker 1: right hand or left hand, in either hand is just 642 00:27:23,000 --> 00:27:25,119 Speaker 1: going to be completely destroyed at the end of closing, 643 00:27:25,200 --> 00:27:27,640 Speaker 1: right because you will have signed so many documents, and 644 00:27:27,640 --> 00:27:30,320 Speaker 1: I think some closing attorneys are moving towards, you know, 645 00:27:30,359 --> 00:27:33,679 Speaker 1: more electronic signatures at the closing. That's gonna happen more 646 00:27:33,680 --> 00:27:36,680 Speaker 1: and more. But for right now, in most instances, your 647 00:27:36,680 --> 00:27:38,760 Speaker 1: hand is gonna be incredibly worn out, so put some 648 00:27:38,800 --> 00:27:41,359 Speaker 1: ice on that. But at that point, with a fatigued hand, 649 00:27:41,600 --> 00:27:43,679 Speaker 1: you now are the proud owner of a house and 650 00:27:43,720 --> 00:27:46,120 Speaker 1: that is exciting stuff. Yeah, man, that's when you get 651 00:27:46,119 --> 00:27:48,240 Speaker 1: the keys, Like, that's the moment you've been working towards. 652 00:27:48,359 --> 00:27:50,280 Speaker 1: Right now. I mentioned this the second ago, but Pizza 653 00:27:50,480 --> 00:27:52,879 Speaker 1: Kate and I had this tradition of after closing, we 654 00:27:52,880 --> 00:27:54,680 Speaker 1: would go and get a pizza, go to the new 655 00:27:54,680 --> 00:27:56,879 Speaker 1: place and enjoy the pizza, kind of sit on the 656 00:27:56,960 --> 00:27:58,560 Speaker 1: counters in the kitchen or maybe sit on the floor 657 00:27:58,560 --> 00:28:00,960 Speaker 1: in the dining room and sell alebrate the fact that 658 00:28:01,280 --> 00:28:04,760 Speaker 1: you've achieved this point, Like you've been working hard towards this. Obviously, 659 00:28:04,760 --> 00:28:06,480 Speaker 1: you've been saving up a lot of money for a 660 00:28:06,480 --> 00:28:08,720 Speaker 1: down payment, you've been looking for a house, you've gone 661 00:28:08,720 --> 00:28:11,119 Speaker 1: through the entire closing process, and now you get to 662 00:28:11,200 --> 00:28:13,480 Speaker 1: you get to finally take it all in and enjoy it. Yeah, 663 00:28:13,520 --> 00:28:16,400 Speaker 1: homebuying can feel almost like a war of attrition, and 664 00:28:16,440 --> 00:28:20,359 Speaker 1: so celebrating after a victory is huge because not only 665 00:28:20,480 --> 00:28:23,119 Speaker 1: did you just deal with the closing table and just 666 00:28:23,200 --> 00:28:25,640 Speaker 1: kind of the intensity that that can be, but really, yeah, 667 00:28:25,680 --> 00:28:27,960 Speaker 1: it is having saved up for that down payment, found 668 00:28:28,000 --> 00:28:32,160 Speaker 1: the house, gotten financing, made a solid negotiation, gotten an inspection, 669 00:28:32,200 --> 00:28:35,080 Speaker 1: done all those things. You've gone through the entire process, 670 00:28:35,080 --> 00:28:37,280 Speaker 1: and it is a beast of a process. And so yeah, 671 00:28:37,320 --> 00:28:41,120 Speaker 1: you celebrate whether it's pizza or whatever. But typically, yeah, 672 00:28:41,200 --> 00:28:43,200 Speaker 1: all you're waiting to move all your furniture in and 673 00:28:43,200 --> 00:28:45,080 Speaker 1: all that stuff, and so pizza is just the easiest 674 00:28:45,080 --> 00:28:46,840 Speaker 1: way to go it's handheld foods. That's the way to 675 00:28:46,840 --> 00:28:49,640 Speaker 1: go after after closing, Okay, and then next you're moved 676 00:28:49,640 --> 00:28:51,800 Speaker 1: into the house, you're getting all settled in, you don't 677 00:28:51,840 --> 00:28:54,800 Speaker 1: want to forget to file for homestead exemption, and that's 678 00:28:54,840 --> 00:28:56,520 Speaker 1: the status that you can file with your state that 679 00:28:56,560 --> 00:28:59,280 Speaker 1: basically lets them know that this is our primary residents, 680 00:28:59,320 --> 00:29:02,680 Speaker 1: we're living here are it's our homestead, and that gives 681 00:29:02,680 --> 00:29:04,760 Speaker 1: you a huge discount on your taxes every year this 682 00:29:04,840 --> 00:29:06,680 Speaker 1: and save you hundreds and hundreds of dollars. So don't 683 00:29:06,720 --> 00:29:08,640 Speaker 1: forget to do that once you've moved into your house. 684 00:29:09,320 --> 00:29:12,200 Speaker 1: Buying a house is an intense experience, but owning a 685 00:29:12,240 --> 00:29:14,960 Speaker 1: home is such a really cool feeling. We've talked before 686 00:29:14,960 --> 00:29:17,840 Speaker 1: about how owning a home isn't always the best investment, right, 687 00:29:17,880 --> 00:29:20,040 Speaker 1: and that's because we're putting a lot of our financial 688 00:29:20,080 --> 00:29:22,320 Speaker 1: eggs in one basket, and a home is not something 689 00:29:22,360 --> 00:29:25,240 Speaker 1: that appreciates at the same rate as the stock market, 690 00:29:25,480 --> 00:29:27,560 Speaker 1: so we can't really consider an investment. But it can 691 00:29:27,600 --> 00:29:30,080 Speaker 1: be such a good move for us as humans right 692 00:29:30,120 --> 00:29:32,920 Speaker 1: to be able to be settled in one place, in 693 00:29:33,000 --> 00:29:34,680 Speaker 1: a place that we want to call home for a 694 00:29:34,720 --> 00:29:37,440 Speaker 1: long period of time. But it is important as we 695 00:29:37,480 --> 00:29:39,440 Speaker 1: think about the fact that it's not a great investment, 696 00:29:39,680 --> 00:29:41,800 Speaker 1: to make sure that we aren't becoming house poor in 697 00:29:41,840 --> 00:29:44,000 Speaker 1: this process of buying a home, so that we're not 698 00:29:44,280 --> 00:29:46,640 Speaker 1: spending too much, because it can be a budget killer, 699 00:29:46,880 --> 00:29:48,960 Speaker 1: and if too much of a percentage of your income 700 00:29:49,360 --> 00:29:52,240 Speaker 1: is dedicated to this home purchase, it's gonna make living 701 00:29:52,360 --> 00:29:55,120 Speaker 1: and making your budget work every month just that much harder, 702 00:29:55,280 --> 00:29:57,960 Speaker 1: not to mention preventing you from reaching other financial goals 703 00:29:57,960 --> 00:30:00,400 Speaker 1: that you have. Yeah, Joe, I couldn't agree more a right, 704 00:30:00,400 --> 00:30:03,280 Speaker 1: like housing like that is still the number one expense 705 00:30:03,320 --> 00:30:05,600 Speaker 1: that we have built in our budgets every single month, 706 00:30:05,640 --> 00:30:07,480 Speaker 1: So keeping tabs on that and making sure you're keeping 707 00:30:07,480 --> 00:30:10,240 Speaker 1: that under control is so incredibly important. All right, Matt, 708 00:30:10,240 --> 00:30:12,520 Speaker 1: I feel like that's nuts to bolts, that's beginning to end. 709 00:30:12,520 --> 00:30:14,280 Speaker 1: That's how you buy a house, right, and you do 710 00:30:14,320 --> 00:30:17,200 Speaker 1: it in a way that's effective, that's smart, that takes 711 00:30:17,240 --> 00:30:20,080 Speaker 1: into account the big things and the little things to 712 00:30:20,400 --> 00:30:23,080 Speaker 1: put you in the best position to get a good deal. Yeah, 713 00:30:23,080 --> 00:30:24,720 Speaker 1: that's right, man. So now you can just go out 714 00:30:24,720 --> 00:30:27,680 Speaker 1: and buy a house. Do it. Just do it. It's 715 00:30:27,760 --> 00:30:30,000 Speaker 1: that easy, all right, man. I'm gonna kick it back 716 00:30:30,000 --> 00:30:33,400 Speaker 1: to the beer today. We are drinking Boulevard Brewing companies 717 00:30:33,880 --> 00:30:36,600 Speaker 1: Space Camper, and I'll go ahead and say, the first 718 00:30:36,600 --> 00:30:39,440 Speaker 1: thing I noticed about this can is it's got this 719 00:30:39,560 --> 00:30:42,000 Speaker 1: redheaded lady on the front of it, and she looks 720 00:30:42,040 --> 00:30:46,040 Speaker 1: like the girl from Wendy's Fast Food Wendy's, except she's 721 00:30:46,040 --> 00:30:48,200 Speaker 1: in some sort of cosmic space house. She's in the 722 00:30:48,240 --> 00:30:50,160 Speaker 1: space suit. But if she'll serve me a burger and 723 00:30:50,160 --> 00:30:52,840 Speaker 1: fries with this beer, perfect combo. What do you think 724 00:30:52,840 --> 00:30:55,440 Speaker 1: about this beer? Yeah? I felt like this was Boulevards 725 00:30:55,480 --> 00:30:57,320 Speaker 1: take on kind of the new style of I p 726 00:30:57,440 --> 00:31:01,440 Speaker 1: A that's juicier, less bitter, less ALTI and it really 727 00:31:01,440 --> 00:31:04,480 Speaker 1: did kind of straddle that line really nicely, this kind 728 00:31:04,480 --> 00:31:06,080 Speaker 1: of beer that someone could go to as like an 729 00:31:06,080 --> 00:31:08,240 Speaker 1: everyday drinker. I just want an I p A that's 730 00:31:08,240 --> 00:31:10,640 Speaker 1: super good and super easy to drink. This beer kind 731 00:31:10,640 --> 00:31:13,080 Speaker 1: of encompasses that in my opinion. Yeah, it's only at 732 00:31:13,160 --> 00:31:15,880 Speaker 1: five point nine alcohol, which, yeah, it's a it's a 733 00:31:15,880 --> 00:31:18,040 Speaker 1: fairly lighter beer and it drinks lighter to it. It's 734 00:31:18,040 --> 00:31:19,960 Speaker 1: pretty refreshing in a sense. So like you said, it's 735 00:31:19,960 --> 00:31:22,240 Speaker 1: something that you can drink every day, and I'm totally 736 00:31:22,240 --> 00:31:24,240 Speaker 1: with you. It doesn't have that West Coast bitterness, so 737 00:31:24,240 --> 00:31:27,280 Speaker 1: it makes it really easy to drink super solid juicy. 738 00:31:27,480 --> 00:31:29,360 Speaker 1: I totally dig it. Thanks to all of our friends 739 00:31:29,400 --> 00:31:32,640 Speaker 1: out there at Boulevard Brewing Company and especially to Hillary 740 00:31:32,680 --> 00:31:34,920 Speaker 1: for sending these along. All right, Matt, let's get to 741 00:31:35,040 --> 00:31:38,600 Speaker 1: our final thoughts for this episode of actually buying a home. 742 00:31:39,000 --> 00:31:40,760 Speaker 1: And one of the most important things you need to 743 00:31:40,800 --> 00:31:44,120 Speaker 1: consider is making a strong offer, and so I think 744 00:31:44,120 --> 00:31:47,160 Speaker 1: we outlined pretty well what that means. There are a 745 00:31:47,160 --> 00:31:49,640 Speaker 1: lot of little things you need to consider when placing 746 00:31:49,680 --> 00:31:52,240 Speaker 1: your offer. Those small little things can be the difference 747 00:31:52,280 --> 00:31:54,720 Speaker 1: between getting the house or not. And it's not always 748 00:31:54,840 --> 00:31:58,040 Speaker 1: even about offering the most money and really quickly. One 749 00:31:58,040 --> 00:31:59,840 Speaker 1: of the most important things you want to make sure 750 00:31:59,880 --> 00:32:02,280 Speaker 1: that you don't skip on during your due diligence period 751 00:32:02,440 --> 00:32:05,840 Speaker 1: is the inspection. Having an inspection it basically gives you 752 00:32:05,880 --> 00:32:09,120 Speaker 1: the footing to further negotiate down the offer price. There's 753 00:32:09,120 --> 00:32:10,800 Speaker 1: gonna be things that you find that are gonna be 754 00:32:10,800 --> 00:32:12,960 Speaker 1: wrong with a home, and to have that report that 755 00:32:13,000 --> 00:32:15,480 Speaker 1: you can refer to point to and say, hey, like 756 00:32:15,560 --> 00:32:17,719 Speaker 1: this is something that costs five thou dollars this, This 757 00:32:17,760 --> 00:32:20,120 Speaker 1: is gonna cost another two grade right here. Those are 758 00:32:20,120 --> 00:32:22,000 Speaker 1: real dollars that you're going to be able to subtract 759 00:32:22,000 --> 00:32:24,360 Speaker 1: from your purchase price. So make sure you pay for 760 00:32:24,400 --> 00:32:28,080 Speaker 1: a solid inspection. Yeah, and a solid inspection might also 761 00:32:28,120 --> 00:32:30,040 Speaker 1: reveal that the house has too many issues that you're 762 00:32:30,080 --> 00:32:32,160 Speaker 1: just not willing to deal with, and it's a signal 763 00:32:32,200 --> 00:32:34,680 Speaker 1: to you to walk away. But ultimately, you don't want 764 00:32:34,680 --> 00:32:36,960 Speaker 1: to be house poor, right, Spending too much on a 765 00:32:37,000 --> 00:32:39,680 Speaker 1: home can be a budget killer, and having too much 766 00:32:39,720 --> 00:32:43,480 Speaker 1: of a monthly obligation towards a home, even though owning 767 00:32:43,480 --> 00:32:46,640 Speaker 1: your own home can provide such a sense of satisfaction 768 00:32:47,040 --> 00:32:51,240 Speaker 1: and the potential to have longevity in one single place, 769 00:32:51,400 --> 00:32:53,040 Speaker 1: I mean, there's a lot of beauty in owning a home. 770 00:32:53,240 --> 00:32:56,600 Speaker 1: You also don't want to mortgage your financial future by 771 00:32:56,640 --> 00:32:59,800 Speaker 1: overpaying in order to get that sense of place. And 772 00:33:00,040 --> 00:33:02,280 Speaker 1: keep in mind that the largest percentage of our monthly 773 00:33:02,320 --> 00:33:05,360 Speaker 1: budget goes towards housing, so you want to make sure 774 00:33:05,400 --> 00:33:07,440 Speaker 1: that you're reining in what you're willing to spend on 775 00:33:07,480 --> 00:33:09,640 Speaker 1: your monthly mortgage because you want to make sure you 776 00:33:09,760 --> 00:33:12,520 Speaker 1: have money that allows you to do other things. Like 777 00:33:12,560 --> 00:33:15,240 Speaker 1: saving and investing, as well as just doing fun stuff 778 00:33:15,240 --> 00:33:18,440 Speaker 1: like traveling and reaching your other financial goals. And so, 779 00:33:18,560 --> 00:33:19,960 Speaker 1: like most things in life, you want to make sure 780 00:33:19,960 --> 00:33:22,880 Speaker 1: you find that balance. So Joel, that's gonna be it. 781 00:33:22,960 --> 00:33:25,360 Speaker 1: For this episode, we will have our shown us up 782 00:33:25,400 --> 00:33:27,840 Speaker 1: at how to money dot com. Be sure to check 783 00:33:27,880 --> 00:33:30,320 Speaker 1: them out. And if you've enjoyed the show, we would 784 00:33:30,360 --> 00:33:32,080 Speaker 1: love to hear from you. We'd love it if you 785 00:33:32,080 --> 00:33:34,840 Speaker 1: would consider leaving a review on Apple Podcasts. And if 786 00:33:34,840 --> 00:33:37,440 Speaker 1: you think that Matt and I have some room for improvement, 787 00:33:37,720 --> 00:33:40,360 Speaker 1: go to how the Money dot com slash do better. 788 00:33:40,720 --> 00:33:42,840 Speaker 1: We love to read your feedback there as well, and 789 00:33:42,920 --> 00:33:46,280 Speaker 1: here your constructive criticism. It just makes us better podcasters. 790 00:33:46,600 --> 00:33:49,560 Speaker 1: That's right, man. So until next time, best Friends Out, 791 00:33:49,720 --> 00:34:01,920 Speaker 1: Best Friends Out, bo