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Speaker 1: Welcome to How the Money. I'm Joel and I and

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Speaker 1: Matt and today we're asking the question, is it dumb

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Speaker 1: to buy a house when the market's hot? Yeah? Man,

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Speaker 1: So in our lives oftentimes we make some really dumb mistakes.

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Speaker 1: But we want to make sure that today, after listeners

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Speaker 1: listen to this episode, that they're not going to make

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Speaker 1: a dumb decision when it comes to purchasing a home.

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Speaker 1: We're gonna answer the question today if it makes sense,

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Speaker 1: if it's dumb to purchase a home today given how

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Speaker 1: hot the market is. I think we've got a lot

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Speaker 1: of listeners today who might be asking that very questions,

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Speaker 1: So I'm excited to get to that one today. Yeah man,

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Speaker 1: there's a there's a lot of questions to pop up

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Speaker 1: into people's minds. One, whether they should even be considering

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Speaker 1: buying a home will cover that, and then too, like

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Speaker 1: if you're like, no, I'm really interested despite the high prices.

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Speaker 1: There are some different ways you need to go about

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Speaker 1: the purchase of a home, Like buying a home has

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Speaker 1: changed a lot in the past ten years, and so

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Speaker 1: you need to react accordingly. If you do want to

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Speaker 1: buy a home in this market. Will kind of give

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Speaker 1: our thoughts on the whole kitten caboodle today on the

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Speaker 1: show That's Right, Dude. But first I wanted to talk

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Speaker 1: about my no penalty c D. So about a year ago,

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Speaker 1: we answered a listener question who was asking about certificates

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Speaker 1: of deposit and whether or not it made sense to

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Speaker 1: to jump on those, and given the dropping interest rate

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Speaker 1: that banks were paying out, we said that yes, it

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Speaker 1: was a good idea, and that's actually some advice that

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Speaker 1: I took myself. I realized that, man, I had this

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Speaker 1: chunk of money sitting there in my savings account, and

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Speaker 1: instead I could put it into a no penalty c

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Speaker 1: D H in order to earn a little bit more money. Jill,

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Speaker 1: it turns out you and I were right. Rates did

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Speaker 1: continue to drop and I was able to earn one

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Speaker 1: point three percent over the last year on that chunk

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Speaker 1: of money, so a whole lot better than what everyone

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Speaker 1: else was learning pitally saving US accounts. But the downside

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Speaker 1: now is that that CD has matured. But one of

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Speaker 1: the options that Ali had presented to me was that

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Speaker 1: it was it could automatically roll over into a new

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Speaker 1: penalty free c D at point five percent, which is

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Speaker 1: nearly as good I mean that's it's kind of a

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Speaker 1: bummer when you were earning one point three and now

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Speaker 1: they're like, oh, well we'll give you, you know, point five.

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Speaker 1: That's not something I'm interested in. Uh. So it got

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Speaker 1: me looking around online a little bit. Uh And I

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Speaker 1: found an account, dude, where I could easily slide over

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Speaker 1: fifteen thousand dollars, so a chuck of my emergency fund.

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Speaker 1: Uh And if you leave that money there within that

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Speaker 1: account for sixty days, they're paying three hundred bucks. And

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Speaker 1: so I did the math, and that's actually two percent

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Speaker 1: on that money over those sixty days. That's pretty good.

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Speaker 1: That's yeah, two percent over two months. I mean it's

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Speaker 1: way better than point five percent over twelve months. Right. Yeah,

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Speaker 1: And I'm guessing you found that on the website Doctor

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Speaker 1: of Credit dot com, which does an amazing job detailing

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Speaker 1: all of the best say muse accounts sign of bonuses

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Speaker 1: out there. Yeah, that's right, man. They've got like sixty

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Speaker 1: different options out there that are state specific, so they're

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Speaker 1: incredibly thorough. Will link to them in our show notes.

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Speaker 1: But yeah, for folks out there who have emergency fund

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Speaker 1: and you don't expect that you're gonna need it, anytime soon.

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Speaker 1: A no penalty CD might be a way to go,

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Speaker 1: but also it might make sense for you to consider

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Speaker 1: another bank. A lot of the different online institutions are

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Speaker 1: offering these sign up bonuses, UH and ngel, like you

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Speaker 1: found you actually signed up for one of these accounts.

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Speaker 1: I guess Las Year a couple of years ago, and

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Speaker 1: you liked it so much that you kept the account,

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Speaker 1: and so that's actually an account that you use, and

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Speaker 1: so I don't know, it makes me feel better about

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Speaker 1: taking advantage of certain bonuses because there's you know, we're human,

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Speaker 1: there's a chance that we might be swayed by that

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Speaker 1: offer and stick around when you over through great service

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Speaker 1: and just like a wonderful website and looking like that,

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Speaker 1: and that's exactly what they want, right, Like they know

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Speaker 1: there's gonna be some folks who are who are there

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Speaker 1: for the easy money. That may or may not be me,

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Speaker 1: we'll see, but yeah, if you like the company, you

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Speaker 1: might stick around. And that's what they're going for. They're

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Speaker 1: looking for new customers, that's right. So all right, well,

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Speaker 1: congratulations on being able to make more. I know that

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Speaker 1: was probably a bummer, like ends and you're like, no, yes,

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Speaker 1: you don't want that to end because you can't get

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Speaker 1: anywhere near that certainty of an interest rate, right. Yeah,

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Speaker 1: And it was an eleven month CD and so I've

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Speaker 1: never before had eleven months go by. It's so quickly,

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Speaker 1: and I was like, no, I want to continue to

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Speaker 1: earn that, but my time is up. Well, I'm glad

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Speaker 1: you found something else that is is gonna, you know,

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Speaker 1: at least for the next couple of months, pay you

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Speaker 1: decently well on that money. But all right, Matt, let's

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Speaker 1: get to the beer that we're having on this show.

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Speaker 1: This one's called Rhyming Numbers, and the nice folks over

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Speaker 1: at the Eighth State Brewing Company donated this beer to

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Speaker 1: the show. It's a really fascinating beer. It's got a

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Speaker 1: ton of different ingredients in it. We'll kind of let

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Speaker 1: you know all that's in the beer and give our

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Speaker 1: thoughts on it at the end of the episode, but

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Speaker 1: for now, let's get to the topic at hand. We're

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Speaker 1: asking the question is it dumb to buy a house

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Speaker 1: when the market's hot? And Matt like, the housing market

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Speaker 1: is obviously drawing a lot of attention right now. It's

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Speaker 1: the subject of a lot of headlines asking prices are

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Speaker 1: at all time highs, Bidding wars have become regular, even normalized.

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Speaker 1: I mean, I think more than half homes that went

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Speaker 1: on the market there's essentially multiple offers on it, and

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Speaker 1: then the sellers in just an awesome place to start

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Speaker 1: asking those buyers to compete against one another. And you know,

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Speaker 1: some people have been saying that we're in a housing

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Speaker 1: bubble that's likely to burst, while other people are basically

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Speaker 1: saying that this may the year surrounding housing is probably

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Speaker 1: gonna last for even a few more years. So, you know,

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Speaker 1: what do you do if you're one of the folks

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Speaker 1: who are interested in settling down in buying a home

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Speaker 1: in the near future. It's a tough position to be in.

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Speaker 1: But you and I were going to do our best

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Speaker 1: to offer some advice so that folks don't make a

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Speaker 1: reactionary move based on like this feeding frenzy. Essentially that

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Speaker 1: could you know, hurt you financially for years to come

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Speaker 1: if you make a bad decision. Yeah, folks are starting

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Speaker 1: to wonder if buying a home in today's market is

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Speaker 1: a good idea, dude, especially if you're a first time HomeBuyer.

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Speaker 1: If that you might be wondering if it's different right

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Speaker 1: now than when the market isn't so hot, And yeah,

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Speaker 1: certainly a lot more stressful today than it was ten

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Speaker 1: years ago. But this doesn't mean that you shouldn't consider

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Speaker 1: buying a home right now. But when the competition is

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Speaker 1: incredibly stiff, you're gonna need to modify your approach some.

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Speaker 1: And so all the tips, all the things that we're

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Speaker 1: gonna mention later on in the episode, I think that

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Speaker 1: you can implement regardless of what the market looks like.

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Speaker 1: But it's definitely something you're gonna need to implement today.

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Speaker 1: It's something that you're gonna need to do now. It's

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Speaker 1: certainly less optional. Yeah all right, man, I'm gonna throw

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Speaker 1: in a little sport reference here. Um. Yeah, I still

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Speaker 1: like baseball, even though I don't watch it nearly as

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Speaker 1: much as I used to. But it makes me think

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Speaker 1: of like a batter coming coming to the plate and

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Speaker 1: guess who's pitching today, a knuckleball pitcher. But nobody throws

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Speaker 1: the knuckleball anymore. I don't even know if there's anybody

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Speaker 1: in the major leagues that throws a knuckleball. But basically,

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Speaker 1: it's like this really weird pitch where you punch the

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Speaker 1: ball at the batter basically, k Yeah. Yeah, It's it's

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Speaker 1: like a super awkward way of throwing the ball, but

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Speaker 1: when it's headed towards the plate, it's it's going way slower,

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Speaker 1: so you think it'd be easier to hit, but because

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Speaker 1: of the way it's thrown, it has this weird spin

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Speaker 1: that you almost can't predict. Um and so it might

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Speaker 1: migrate like to the left or up or down, like

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Speaker 1: you don't really know where it's going. It's kind of

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Speaker 1: like a mystery flavor exactly. So it's one of those

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Speaker 1: things where you know the fundamentals that you learned as

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Speaker 1: a hitter, you still have to implement those things, but

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Speaker 1: you gotta change your strategy in order to actually get

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Speaker 1: hits off that knuckleball. You're probably not gonna be swinging

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Speaker 1: for the fences. You're probably gonna try to poke through

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Speaker 1: a single And I think you know, there's a similar

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Speaker 1: reaction that buyers are going to have to have in

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Speaker 1: this environment, Like buying a home still has a lot

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Speaker 1: of things that hold true, but your strategy is going

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Speaker 1: to have to change. Um And Yeah, each market is

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Speaker 1: different to right, Like the median home price has gone

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Speaker 1: up seventeen percent year over year. So it's been just

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Speaker 1: a huge spike in prices all across the nation, while

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Speaker 1: the hottest markets have actually seen price increases outpace even

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Speaker 1: that amount, And so it's been been really difficult if

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Speaker 1: you're in one of the markets that a lot of

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Speaker 1: people are interested in right now. But will the market

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Speaker 1: cool off anytime soon? That remains to be seen. It's

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Speaker 1: always hard to predict things like this. I mean, it

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Speaker 1: would have been almost impossible to even predict that housing

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Speaker 1: prices would have shot up at this pace a year

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Speaker 1: ago too. I don't remember anybody predicting that the housing

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Speaker 1: market was going to be the Sponker's part of that

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Speaker 1: is due to COVID and household priorities changing super quickly,

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Speaker 1: and it makes intuitive sense. I guess that individuals and

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Speaker 1: families are prioritizing single family homes more than they did

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Speaker 1: eighteen months ago. When you've been locked in your home

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Speaker 1: to a large extent over over the last you know,

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Speaker 1: more than twelve months. Now, people are prioritizing their living

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Speaker 1: spaces in a different way. So yeah, how long this

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Speaker 1: housing boom is going to last is really anyone's guess,

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Speaker 1: But to me, it doesn't make sense that that it

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Speaker 1: might continue to last for a while to come. Yeah,

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Speaker 1: So let's dig into why it's so difficult right now

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Speaker 1: to buy a home, uh, and kind of what got

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Speaker 1: us here, Let's talk about why the market is so hot.

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Speaker 1: You know, in any market where you have sellers and

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Speaker 1: buyers with transactions occurring, you have supply and demand, and

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Speaker 1: that is determining the cost, right And we have seen

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Speaker 1: demand go up for a number of reasons, but one

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Speaker 1: of those is definitely due to the pandemic. Like you

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Speaker 1: mentioned in lockdowns, we've been in our homes more since

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Speaker 1: last year, and because so many folks are now working

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Speaker 1: out of their house, more space has become a priority.

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Speaker 1: And so that's definitely true for buyers, but we're also

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Speaker 1: seeing that too for you know, with renters as well.

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Speaker 1: That's right, yeah, man, Even just as a small time landlord,

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Speaker 1: I've met a lot of folks Matt moving out of

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Speaker 1: midtown or downtown Atlanta who have been in a small

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Speaker 1: studio or one bedroom apartment or condo and they're looking

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Speaker 1: for more space. Like my sister was kind of in

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Speaker 1: that exact position. She was in a studio with her husband,

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Speaker 1: and it turns out that, uh, those conditions aren't conducive

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Speaker 1: to two people working at the same time and also

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Speaker 1: living in that place. And so yeah, they've moved over

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Speaker 1: into our neck of the woods there in a two

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Speaker 1: two right around the corner now, so they can live

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Speaker 1: together in peace and harmony without you know, killing each

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Speaker 1: other as I think some people are starting to do

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Speaker 1: in small spaces, like you know, back to back, essentially

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Speaker 1: working at desks in a small space. They just um,

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Speaker 1: you know, a lot of people have different needs now

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Speaker 1: in a home than they did before, right, yeah, absolutely, dude.

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Speaker 1: Also too, because of you know, lockdowns and turbulence in

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Speaker 1: the job market, you know, a lot of folks have

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Speaker 1: been spending less money overall. We've seen a lot of

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Speaker 1: households getting out of credit card debts over the past year,

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Speaker 1: and dude, this has allowed a lot of folks to

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Speaker 1: build up solid down payments. You know, folks have more

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Speaker 1: cash on hand than they ever had before. And then

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Speaker 1: on top of that, steamless checks for many have only

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Speaker 1: increased their ability to put down more money towards the home.

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Speaker 1: And so you know, if you didn't get laid off

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Speaker 1: and your income stayed the same all the while, you're

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Speaker 1: spending less money, you might have had an extra ten

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Speaker 1: tho dollars fall into your lap thanks to the cares acts, uh,

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Speaker 1: the other acts. I can keep up with them all

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Speaker 1: honestly at this point. But if you've got a teen

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Speaker 1: kids got way more than that, you've got a ton

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Speaker 1: of money. You're also going to need a bigger house.

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Speaker 1: That's true, exactly. Yeah, hopefully you don't have eighteen kids.

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Speaker 1: I don't know how you'd even take care of that many.

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Speaker 1: I've got three, and that's that's a lot to take

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Speaker 1: care of. I was talking to my daughter, and she's

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Speaker 1: in like music class. They're learning about like different composers,

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Speaker 1: I guess, and she was. She told me that Bach

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Speaker 1: had like twenty kids. Oh my gosh, she told me

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Speaker 1: that the other day. I don't know if that's true.

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Speaker 1: But he had like seven kids first, and then he

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Speaker 1: had like thirteen more with like another wife. All Right,

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Speaker 1: I'm gonna, uh, you know, look into this. I'm gonna

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Speaker 1: look up Wikipedia. That sounds interesting. It's a lot of kids.

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Speaker 1: It's something I want to definitely want to know more about.

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Speaker 1: Back would have got a lot of money that you

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Speaker 1: were left today. That's true also to Matt I mean,

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Speaker 1: I feel like, you know, when we're talking about the

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Speaker 1: housing market, demographics are a big part of why so

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Speaker 1: many folks want to buy a home too. And you know,

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Speaker 1: of Americans between the ages of thirty four say they

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Speaker 1: planned to buy a home, and among that same age

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Speaker 1: group say they planned to do it in the next

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Speaker 1: twelve months. And I was according to a study by

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Speaker 1: Fortune magazine, that's an entire generation of people that are

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Speaker 1: approaching the stage in life were perching. A home essentially

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Speaker 1: becomes more and more attractive, and so for a lot

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Speaker 1: of those people. You know, I think there were headlines

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Speaker 1: years and years ago that predicted the millennials wouldn't be

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Speaker 1: a homeowning generation. But I think even they want to

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Speaker 1: own a home, that part of the American dream still

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Speaker 1: remains alive and and I understand that, And so I

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Speaker 1: think because of the demographics, that's another reason the housing

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Speaker 1: market might continue to remain hot for you know, the

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Speaker 1: foreseeable future. Yeah, I feel like also to the same

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Speaker 1: headlines years ago said things like millennials don't want to

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Speaker 1: buy a home, they just want to travel. Well, guess

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Speaker 1: what this is another pandemic induced reason for millennials. They

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Speaker 1: kind of yeah, change their tune a little bit. It's like, Okay,

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Speaker 1: no longer can you do the things that you truly valued.

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Speaker 1: Maybe you prize that nomadic lifestyle the ability to you know,

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Speaker 1: live in a small apartment, uh and then spend all

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Speaker 1: your money elsewhere on experiences, on travel. But when you

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Speaker 1: can no longer do that, Yeah, it causes some introspection.

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Speaker 1: Then you maybe start to change your values a little bit.

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Speaker 1: Also to some of the folks that live that hardcore

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Speaker 1: nomadic lifestyle, maybe they got tired of it, at least

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Speaker 1: some of them. Yeah, that is true, man, Yeah, how

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Speaker 1: long do you want to live in a van? For

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Speaker 1: ten years? Sure? But like beyond that, I don't. I mean,

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Speaker 1: I couldn't do it much longer than that. Even that

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Speaker 1: sounds long to me, But like I understand the appeal

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Speaker 1: of it. But then it probably does where within after

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Speaker 1: a while, that's true. Uh So. Yeah, so we're talking

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Speaker 1: about demand right due institutional investors, they are also now

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Speaker 1: your competition if you're looking to buy a house. Right So,

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Speaker 1: Wall Street they got into single family homes after the

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Speaker 1: housing crash of two thousand eight. They bought up a

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Speaker 1: bunch of cheap homes as the market was recovering, and

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Speaker 1: those institutional investors are still buying, meaning that you aren't

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Speaker 1: just competing against other uh you know, quote unquote normal homebuyers.

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Speaker 1: You're competing in a family down the street, right, Yeah, yeah, No,

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Speaker 1: you're competing with firms that have millions or billions of

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Speaker 1: dollars that they're looking to expand their their holdings in

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Speaker 1: their portfolios with. You know, as The Wall Street Journal

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Speaker 1: reported last month, there are potentially even other foreign governments

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Speaker 1: who are looking to purchase up real estate in the US. So, yeah,

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Speaker 1: you with your limited, finite amount of resources, your bank

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Speaker 1: account with a certain amount of cash in it, you're

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Speaker 1: abdy just a bannage when you're competing against the likes

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Speaker 1: of a giant investment conglomoration like that, right or prints

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Speaker 1: from Saudi Ragia, right exactly, he's gonna come out on top. Right.

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Speaker 1: So I'm sorry you were outbid, oh no by a

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Speaker 1: prince from another country. Okay, it doesn't make you feel

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Speaker 1: maybe a little bit better about it, I get it.

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Speaker 1: Why don't want this three bedroom, two bath though it

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Speaker 1: doesn't make sense an investment exactly, But yeah, I think

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Speaker 1: to Matt that that's the demand side, But supply has

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Speaker 1: also gone down to right, like, fewer people are putting

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Speaker 1: their homes up on the market for sale. And if

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Speaker 1: you took an econ class in high school, you know

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Speaker 1: the basic fundamental principle of supply and demand. That's like

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Speaker 1: economics one on one right there. And when there's less

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Speaker 1: supply out there, we are of course going to see

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Speaker 1: prices on the rise. That's definitely been the case. And again,

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Speaker 1: part of the reason is that COVID nineteen was a

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Speaker 1: scary thing for a lot of folks, and especially people

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Speaker 1: with health conditions. Many weren't interested in having strangers walked

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Speaker 1: through their house, of course, right and if even if

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Speaker 1: they were kind of interested in selling. And as more

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Speaker 1: of the country gets vaccinated, I do think we're gonna

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Speaker 1: begin to see more supply and that will at least

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Speaker 1: help a lead ate some of the like red hot

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Speaker 1: market insanity. That's right, man, everyone is excited to get

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Speaker 1: back to their normal lives. We're talking about supply, dude.

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Speaker 1: New construction is still down as compared to the pre

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Speaker 1: Great Recession levels. We are currently still short millions of

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Speaker 1: homes on the supply side, and although builders have been

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Speaker 1: been doing well in recent years, we still don't have

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Speaker 1: enough builders to to keep up with the demand that's

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Speaker 1: currently out there. And just like you said, when the

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Speaker 1: supply is level, that's only going to drive prices up. Yeah.

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Speaker 1: And another thing that hasn't helped builders out is is

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Speaker 1: that lumber prices have skyrocketed during right make so you know,

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Speaker 1: the the astronomical lumber prices have added close to dollars

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Speaker 1: to the cost of a building a typical single family

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Speaker 1: home and then like ten dollars per apartment unit that's

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Speaker 1: going online. Uh, and that was according to the National

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Speaker 1: Association of Home Builders. That just makes it harder for

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Speaker 1: builders to get the raw materials it takes to get

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Speaker 1: those homes built. Supply shortages sometimes means that you've got

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Speaker 1: workers who aren't able to work while you're waiting for

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Speaker 1: that lumber to come in. Yeah. I expect some of

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Speaker 1: those supply issues to be worked out in the coming years,

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Speaker 1: but some of them are gonna take even longer. And yeah,

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Speaker 1: when you look at the fact that, like you said,

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Speaker 1: new construction is still way down than what we were

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Speaker 1: seeing in like two thousand six, um, that just impacts

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Speaker 1: everybody's ability to buy an affordable house. Today, that's right,

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Speaker 1: And so yeah, we just addressed all the different reasons

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Speaker 1: why it is the housing market is so red hot currently.

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Speaker 1: But right after the break, we're gonna touch on a

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Speaker 1: number of different things that you can do to ensure

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Speaker 1: that you get the house that you want to get

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Speaker 1: and to make sure too that you're thinking about it properly.

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Speaker 1: And so we'll get to all of that right after this. Alright,

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Speaker 1: we're back from the break, and if you're interested in

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Speaker 1: buying a house right now, you've probably been put off

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Speaker 1: by the high home prices. You might have even put

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Speaker 1: placed a couple of offers and it turns out that

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Speaker 1: somebody bids over what you um offered, even though maybe

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Speaker 1: you even offered above asking price. Like that's how crazy

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Speaker 1: things are right now. And hopefully you know what we

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Speaker 1: just talked about helps you see you know why things

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Speaker 1: are as nutty as they are, And hopefully too, you know,

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Speaker 1: some of those things will start to shift in the

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Speaker 1: coming months so that things do get back into like

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Speaker 1: a little bit more of a normal state. But let's

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Speaker 1: talk about, Matt, what people need to do if they're

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Speaker 1: attempting to make an offer, if they're attempting to buy

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Speaker 1: a home in this market and and maybe even whether

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Speaker 1: or not they should be right, Like, I think the

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Speaker 1: first thing that people need to know if they're planning

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Speaker 1: to buy a home in this crazy market is to

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Speaker 1: be prepared to stay in that home that they're buying

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Speaker 1: for a minimum of seven years. That's kind of something

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Speaker 1: that we've always said as a rule of thumbler buying

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Speaker 1: a home. And you know that's because the transaction costs

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Speaker 1: of buying and selling homes are just kind of ridiculous.

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Speaker 1: Like it's really expensive to buy and sell a home.

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Speaker 1: You know, we're talking about closing costs, agent fees, um,

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Speaker 1: you know, all that kind of stuff. So it's even

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Speaker 1: more important, I would say, when prices are at all

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Speaker 1: time highs to make sure that the home that you're

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Speaker 1: buying is one that you're gonna hold onto for for

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Speaker 1: quite a while. Yeah, before it's like a minimum of

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Speaker 1: seven years. Now it's kind of like, I don't know,

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Speaker 1: maybe seven us here's that you would want to hang

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Speaker 1: onto that house for. But yeah, let's go ahead and

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Speaker 1: talk more about how to go about buying a home

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Speaker 1: while the market is making it harder to do so

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Speaker 1: right now, And the first thing that we want to mention, UH,

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Speaker 1: is for you to get an experienced agent through to

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Speaker 1: solid agent with a lot of experience under the belt

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Speaker 1: can help sort of act as a sherpa, as a

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Speaker 1: guide for you as you kind of navigate through the

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Speaker 1: ups and downs of trying to buy a home in

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Speaker 1: a frothy market like we're currently seeing. They can help

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Speaker 1: you to avoid some of the pitfalls that others might

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Speaker 1: be making, uh in their angst to own a home.

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Speaker 1: And so you're gonna want to find a great agent

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Speaker 1: who has solid negotiation skills, someone who is easy to

404
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Speaker 1: communicate with, but a good experienced agent will also be

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Speaker 1: honest with you and will help you to kind of

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Speaker 1: navigate those emotional waters. Because there's no other asset that

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Speaker 1: we own that we're more tied to than our homes, right, Like,

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Speaker 1: it's something that we move into. We see ourselves there,

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Speaker 1: we see ourselves raising our family, our kids there. It

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Speaker 1: kind of becomes a part of who we are as people,

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Speaker 1: and that can cause us to make some decisions that

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Speaker 1: may not financially make the most sense for us. Oh yeah,

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Speaker 1: for sure. I think that's that's definitely true, and and

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Speaker 1: I think we're seeing that now is maybe some people

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Speaker 1: getting in over their head buying more than they actually

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Speaker 1: should be. It's probably a reactionary thing, right, and I

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Speaker 1: think a good agent can help you to avoid emotional

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Speaker 1: decision making. It's easy to lose out on three or

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Speaker 1: four homes and and then inwardly you resolve I'm gonna

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Speaker 1: get the next one, but that might not be the

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Speaker 1: best thing for you, right, Like fool me once or

422
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Speaker 1: twice or four times, never again. Yeah, yeah, but then

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Speaker 1: you overpay and you regret it, and you don't you're

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Speaker 1: like happy that you're in this home, but you're like,

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Speaker 1: I don't even know if I can actually afford this

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Speaker 1: home now because I made an offer that I can't

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Speaker 1: actually back up. And like, so we would say that

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Speaker 1: you need to set some parameters that you've outlined with

429
00:18:45,240 --> 00:18:48,359
Speaker 1: your agent early on, and then refer back to those consistently.

430
00:18:48,640 --> 00:18:50,919
Speaker 1: It can be easy to see your standards slowly and

431
00:18:50,960 --> 00:18:53,320
Speaker 1: incrementally changes. You're looking for a place, too, so you

432
00:18:53,400 --> 00:18:55,159
Speaker 1: have to make sure that your line is drawn. It

433
00:18:55,160 --> 00:18:57,359
Speaker 1: can easy. It can be easy to start looking at

434
00:18:57,359 --> 00:19:01,080
Speaker 1: homes and you know you're content with two bedroom to bath,

435
00:19:01,320 --> 00:19:03,120
Speaker 1: and then things start to creep up and you're like well,

436
00:19:03,240 --> 00:19:06,000
Speaker 1: we might want that third bedroom, and maybe we want

437
00:19:06,200 --> 00:19:08,440
Speaker 1: you know this or that, and you start adding features

438
00:19:08,480 --> 00:19:11,399
Speaker 1: onto the home you're looking for that increases the price,

439
00:19:11,480 --> 00:19:13,199
Speaker 1: and so yeah, it's it's kind of like coming up

440
00:19:13,280 --> 00:19:15,560
Speaker 1: with an investing plan and sticking to it. You probably

441
00:19:15,560 --> 00:19:17,520
Speaker 1: need to come up with a plan of the kind

442
00:19:17,560 --> 00:19:19,760
Speaker 1: of home and the location that you're looking for and

443
00:19:19,960 --> 00:19:21,880
Speaker 1: be willing to stick to that too, That's right. Yeah,

444
00:19:21,920 --> 00:19:25,600
Speaker 1: So having an experienced agent is really important in today's market. Also,

445
00:19:25,720 --> 00:19:28,120
Speaker 1: do getting pre approved. Making sure you have your finances

446
00:19:28,119 --> 00:19:30,639
Speaker 1: lined up is a really important step, we think before

447
00:19:30,680 --> 00:19:33,040
Speaker 1: you even start to go look at homes. But we

448
00:19:33,080 --> 00:19:35,320
Speaker 1: also think it's really important to know what you are

449
00:19:35,359 --> 00:19:38,639
Speaker 1: willing to spend, not just what the bank is willing

450
00:19:38,680 --> 00:19:41,440
Speaker 1: to approve you for. Yeah, it should likely be less

451
00:19:41,840 --> 00:19:44,080
Speaker 1: than the full amount that a bank or credit union

452
00:19:44,240 --> 00:19:46,440
Speaker 1: says that you can afford. You don't want to become

453
00:19:46,520 --> 00:19:49,640
Speaker 1: house poor with that mortgage payment straining your budget every

454
00:19:49,640 --> 00:19:52,760
Speaker 1: single month. Um. But having that pre approval letter lined up,

455
00:19:52,800 --> 00:19:55,560
Speaker 1: along with proof of funds that you're gonna need to

456
00:19:55,600 --> 00:19:57,520
Speaker 1: have for that down payment, are going to be really

457
00:19:57,560 --> 00:19:59,840
Speaker 1: helpful in today's market. And true it's part of making

458
00:20:00,040 --> 00:20:02,800
Speaker 1: a stronger offer is having pre approval and having proof

459
00:20:02,800 --> 00:20:05,720
Speaker 1: of funds that you actually have money in order to

460
00:20:05,800 --> 00:20:08,080
Speaker 1: back up that offer. And Matt two, yeah, I would

461
00:20:08,080 --> 00:20:10,320
Speaker 1: say right now, another thing people need to pay special

462
00:20:10,359 --> 00:20:13,919
Speaker 1: attention to is their credit score if they want to

463
00:20:13,960 --> 00:20:15,560
Speaker 1: make an offer on a home and they actually want

464
00:20:15,560 --> 00:20:17,960
Speaker 1: to get it accepted. Because at the same time prices

465
00:20:17,960 --> 00:20:21,120
Speaker 1: are skyrocketing, it's becoming tougher to get a loan, like

466
00:20:21,320 --> 00:20:24,639
Speaker 1: the lending standards have gone gotten even tighter in recent months.

467
00:20:24,880 --> 00:20:27,159
Speaker 1: So your credit score matters a whole lot right now

468
00:20:27,200 --> 00:20:29,720
Speaker 1: when you're getting a mortgage. It always has, but but

469
00:20:29,880 --> 00:20:32,520
Speaker 1: it means even more of these days. So keep track

470
00:20:32,720 --> 00:20:35,159
Speaker 1: of your credit score on sites like credit Karma or

471
00:20:35,160 --> 00:20:37,280
Speaker 1: credit score card dot com. Those are two great places

472
00:20:37,320 --> 00:20:40,280
Speaker 1: to look, or just your credit card probably when they

473
00:20:40,280 --> 00:20:42,680
Speaker 1: send you your bill. You have the ability to check

474
00:20:42,720 --> 00:20:44,879
Speaker 1: out your credit score for free to wherever you get it.

475
00:20:44,920 --> 00:20:46,359
Speaker 1: Just make sure you're kind of keeping an eye on it.

476
00:20:46,600 --> 00:20:49,280
Speaker 1: Also to in particular, if you're in the market to

477
00:20:49,280 --> 00:20:51,960
Speaker 1: buy a home right now, pay your bills on time, religiously,

478
00:20:52,200 --> 00:20:54,720
Speaker 1: and then don't take out any unnecessary lines of credit

479
00:20:54,800 --> 00:20:56,960
Speaker 1: in the months before you intend to start making offers.

480
00:20:57,320 --> 00:20:59,520
Speaker 1: If you do that, you're going to potentially hurt your

481
00:20:59,520 --> 00:21:01,720
Speaker 1: credit score at the time you needed the most, at

482
00:21:01,720 --> 00:21:04,280
Speaker 1: the time that you need it to secure the best

483
00:21:04,320 --> 00:21:06,560
Speaker 1: possible financing rate, and then not having a good enough

484
00:21:06,560 --> 00:21:09,639
Speaker 1: credit score one it could mean that you pay a

485
00:21:09,720 --> 00:21:11,760
Speaker 1: higher interest rate and that could be thousands of dollars

486
00:21:11,800 --> 00:21:13,680
Speaker 1: over the life of the loan, or it could mean

487
00:21:13,760 --> 00:21:17,000
Speaker 1: not getting that house altogether. So credit score crucial right now. Yeah,

488
00:21:17,000 --> 00:21:19,320
Speaker 1: the credit score is important, but even taking out another

489
00:21:19,440 --> 00:21:22,120
Speaker 1: loan or an additional line of credit like your credit card,

490
00:21:22,240 --> 00:21:25,320
Speaker 1: could throw off your debt to income ratio enough to

491
00:21:25,400 --> 00:21:28,680
Speaker 1: where yeah, the bank or that lender would then say, sorry, uh,

492
00:21:28,720 --> 00:21:31,320
Speaker 1: you no longer qualify um. At the very least, you're

493
00:21:31,320 --> 00:21:33,840
Speaker 1: gonna have to go through a lot of paperwork writing

494
00:21:33,840 --> 00:21:36,159
Speaker 1: out those letters of explanation as to what it is

495
00:21:36,200 --> 00:21:37,840
Speaker 1: these cards are, and they might even ask you to

496
00:21:37,960 --> 00:21:41,600
Speaker 1: close some lines of credit or credit cards. Something else

497
00:21:41,600 --> 00:21:43,359
Speaker 1: that we'd recommend for folks to do when it comes

498
00:21:43,400 --> 00:21:47,720
Speaker 1: to looking at houses today is to consider lowing your expectations.

499
00:21:48,560 --> 00:21:50,360
Speaker 1: You know that, like the perfect house, it's always gonna

500
00:21:50,520 --> 00:21:52,920
Speaker 1: be tough to find, but getting the exact hone that

501
00:21:52,960 --> 00:21:55,840
Speaker 1: you've dreamed of is even more difficult. Right now, there's

502
00:21:55,960 --> 00:21:57,840
Speaker 1: you know, like eighty two other people out there who

503
00:21:57,960 --> 00:22:00,280
Speaker 1: also think that the home that you really want is

504
00:22:00,280 --> 00:22:02,639
Speaker 1: gonna work for them, So you might need to be

505
00:22:02,680 --> 00:22:05,399
Speaker 1: willing to buy a home that doesn't check all of

506
00:22:05,400 --> 00:22:07,919
Speaker 1: the boxes. It makes me think of Actually, on Monday,

507
00:22:07,920 --> 00:22:10,440
Speaker 1: we talked with Troy and Rashad uh and they kind

508
00:22:10,440 --> 00:22:12,439
Speaker 1: of mentioned that was my big deck away from that episode,

509
00:22:12,480 --> 00:22:14,840
Speaker 1: the four three two one approach. I feel like this

510
00:22:14,880 --> 00:22:16,960
Speaker 1: is sort of a variation on that. You know, don't

511
00:22:17,040 --> 00:22:19,639
Speaker 1: think about purchasing your perfect little house that you know

512
00:22:19,720 --> 00:22:21,400
Speaker 1: that that's gonna work for you for the next five

513
00:22:21,440 --> 00:22:23,760
Speaker 1: to ten years or whatever. Now think of it as

514
00:22:23,800 --> 00:22:26,680
Speaker 1: something that you're going to hang onto. And definitely it

515
00:22:26,720 --> 00:22:28,199
Speaker 1: can be a house that you purchase that you know

516
00:22:28,280 --> 00:22:30,320
Speaker 1: isn't perfect, But if you're able to see it more

517
00:22:30,359 --> 00:22:33,239
Speaker 1: as an investment that can allow you to hopefully get

518
00:22:33,280 --> 00:22:35,480
Speaker 1: on board with a house that's not perfect, but it's

519
00:22:35,480 --> 00:22:36,920
Speaker 1: gonna be a good home. It's gonna be a home

520
00:22:36,960 --> 00:22:38,760
Speaker 1: that can serve as an investment in the cash flow

521
00:22:38,760 --> 00:22:41,919
Speaker 1: that you're gonna receive from that property can help fund

522
00:22:42,119 --> 00:22:44,600
Speaker 1: the actual dream home that you're gonna maybe purchased, yeah

523
00:22:44,680 --> 00:22:46,480
Speaker 1: years down the line. So maybe stop looking for that

524
00:22:46,520 --> 00:22:49,040
Speaker 1: single family home, start looking for the duplex, triplex or

525
00:22:49,240 --> 00:22:51,080
Speaker 1: even quadplex, you know, and that and that can be

526
00:22:51,080 --> 00:22:54,040
Speaker 1: better for your monthly budget, and that can be better

527
00:22:54,040 --> 00:22:55,919
Speaker 1: for your financial future too. I agree. I love the

528
00:22:55,920 --> 00:22:57,440
Speaker 1: four three two one. I thought it was like such

529
00:22:57,480 --> 00:23:00,160
Speaker 1: a such an awesome, such an awesome way to think about,

530
00:23:00,200 --> 00:23:02,639
Speaker 1: you know, buying a house and investing in property for

531
00:23:02,680 --> 00:23:05,760
Speaker 1: the future. Also to Matt, like, lowering your expectations is

532
00:23:05,800 --> 00:23:08,359
Speaker 1: important because it's harder to get everything you want in

533
00:23:08,400 --> 00:23:11,000
Speaker 1: today's you know environment. But also you've gotta be on

534
00:23:11,040 --> 00:23:13,480
Speaker 1: the ball. With more than half of homes that are

535
00:23:13,480 --> 00:23:16,440
Speaker 1: listed going under contract in a week or less, you'll

536
00:23:16,440 --> 00:23:19,240
Speaker 1: need to be checking the area that you're interested in.

537
00:23:19,680 --> 00:23:22,439
Speaker 1: I would say every day, sometimes more frequently than once

538
00:23:22,480 --> 00:23:24,240
Speaker 1: a day. And that's also to where a good agent

539
00:23:24,280 --> 00:23:26,720
Speaker 1: can come in is if they are on the ball

540
00:23:26,760 --> 00:23:28,919
Speaker 1: and they're feeding that stuff to you. It helps you

541
00:23:28,920 --> 00:23:31,280
Speaker 1: to be on the ball, you know, when things come

542
00:23:31,280 --> 00:23:33,600
Speaker 1: active so that you can make an offer quickly. Sometimes

543
00:23:33,640 --> 00:23:36,520
Speaker 1: things will come online on a Thursday, and people make

544
00:23:36,520 --> 00:23:39,480
Speaker 1: offers on Thursday and Friday and then it's done, like

545
00:23:39,760 --> 00:23:41,520
Speaker 1: they have accepted an offer by Friday night and it

546
00:23:41,560 --> 00:23:43,600
Speaker 1: doesn't even last a weekend. And so if you're one

547
00:23:43,600 --> 00:23:45,680
Speaker 1: of those people who needs a few days to really

548
00:23:45,680 --> 00:23:48,320
Speaker 1: think about it, that's gonna work against you in today's market,

549
00:23:48,359 --> 00:23:50,879
Speaker 1: You've gotta be on the ball and looking frequently is

550
00:23:50,880 --> 00:23:52,880
Speaker 1: going to allow you to tune in with the market too,

551
00:23:52,920 --> 00:23:54,840
Speaker 1: so you can spot a deal and be ready to

552
00:23:54,880 --> 00:23:56,800
Speaker 1: pounce when it comes along. You're gonna know when something's

553
00:23:56,840 --> 00:23:59,800
Speaker 1: undervalued if you're looking in a specific area for months

554
00:23:59,800 --> 00:24:02,840
Speaker 1: on end and you're tuning in basically every day. Yeah,

555
00:24:02,920 --> 00:24:05,080
Speaker 1: it's important to know that this is what the market

556
00:24:05,119 --> 00:24:06,760
Speaker 1: looks like today though, right because I think for some

557
00:24:06,800 --> 00:24:10,200
Speaker 1: folks they may not want that, And so it's important

558
00:24:10,200 --> 00:24:11,520
Speaker 1: to keep in mind. You're gonna have to kind of

559
00:24:11,800 --> 00:24:15,240
Speaker 1: weigh the benefits and the downsides to purchasing a house

560
00:24:15,240 --> 00:24:17,840
Speaker 1: in today's market. Are you willing to keep up with

561
00:24:17,880 --> 00:24:20,399
Speaker 1: it that well, if not, you might find yourself maybe

562
00:24:20,400 --> 00:24:23,600
Speaker 1: overpaying because you're not able to pounce on that deal. So, yeah,

563
00:24:23,680 --> 00:24:26,359
Speaker 1: these are things to keep in mind before you found

564
00:24:26,359 --> 00:24:28,320
Speaker 1: a house, right well, as you're searching for a home,

565
00:24:28,440 --> 00:24:29,720
Speaker 1: But what you've found a home and you want to

566
00:24:29,720 --> 00:24:31,320
Speaker 1: put an offer on it, you want to make sure

567
00:24:31,400 --> 00:24:34,480
Speaker 1: that you make your offer look strong, and so finding

568
00:24:34,520 --> 00:24:37,040
Speaker 1: out what the seller wants can help you to make

569
00:24:37,080 --> 00:24:39,359
Speaker 1: that strong offer. If the seller, say, wants to to

570
00:24:39,400 --> 00:24:41,240
Speaker 1: stay in the home for a week maybe two weeks

571
00:24:41,320 --> 00:24:43,960
Speaker 1: after the closing, if you can write that into the offer,

572
00:24:43,960 --> 00:24:47,959
Speaker 1: that can massively increase your chances of having an offer accepted. Uh,

573
00:24:48,000 --> 00:24:50,440
Speaker 1: If a more immediate closing is the most important factor

574
00:24:50,480 --> 00:24:53,280
Speaker 1: for them, submit an offer with a shorter due diligence

575
00:24:53,320 --> 00:24:55,960
Speaker 1: period and a closing date that is sooner than you

576
00:24:56,000 --> 00:24:59,439
Speaker 1: might normally offer. And another thing too, increasing the amount

577
00:24:59,440 --> 00:25:01,800
Speaker 1: of earnest money that you are willing to put down

578
00:25:01,960 --> 00:25:04,520
Speaker 1: as another way to show the buyer that you are serious.

579
00:25:05,200 --> 00:25:07,640
Speaker 1: If others are submitting offers with, you know, like say

580
00:25:07,760 --> 00:25:11,119
Speaker 1: five thousand dollars of earnesce money, then submit years with

581
00:25:11,320 --> 00:25:14,080
Speaker 1: ten thousand dollars. That alone can be a big check

582
00:25:14,119 --> 00:25:16,240
Speaker 1: mark in your favor. And keep in mind, you know,

583
00:25:16,280 --> 00:25:18,600
Speaker 1: you get that earnest money back if you terminate the

584
00:25:18,640 --> 00:25:21,600
Speaker 1: contract while in that due diligence period, so it's it's

585
00:25:21,640 --> 00:25:24,000
Speaker 1: not really something that is actually costing you more you

586
00:25:24,040 --> 00:25:25,920
Speaker 1: just have to have that money available. I feel like

587
00:25:25,920 --> 00:25:27,600
Speaker 1: that's how you're gonna be able to beat out the princess,

588
00:25:27,680 --> 00:25:29,399
Speaker 1: like the foreign princess of this world, right is just

589
00:25:29,400 --> 00:25:31,840
Speaker 1: buy bigger, earnest money, right, It's like I've got five

590
00:25:31,840 --> 00:25:35,120
Speaker 1: thousand more dollars, buddy, Well, I think to like one

591
00:25:35,160 --> 00:25:37,879
Speaker 1: other thing, Matt, that's obviously really really important. How a

592
00:25:37,920 --> 00:25:40,560
Speaker 1: lot of people are getting offers accepted right now is

593
00:25:40,640 --> 00:25:45,160
Speaker 1: people making cash offers, and so that's just not possible

594
00:25:45,200 --> 00:25:47,920
Speaker 1: for so many people. But there are a lot of investors,

595
00:25:47,960 --> 00:25:50,280
Speaker 1: a lot of you know, foreign entities that are willing

596
00:25:50,359 --> 00:25:53,160
Speaker 1: to offer all cash on on a home right now.

597
00:25:53,520 --> 00:25:56,000
Speaker 1: And so I would suggest, like, if you do have

598
00:25:56,440 --> 00:25:59,760
Speaker 1: the money in savings, even in an investment account, right

599
00:25:59,800 --> 00:26:02,639
Speaker 1: you can make a quote unquote cash offer, but you

600
00:26:02,640 --> 00:26:06,040
Speaker 1: can reserve a financing contingency. Right. Sellers know that a

601
00:26:06,080 --> 00:26:08,639
Speaker 1: buyer with cash is far more likely to close on

602
00:26:08,680 --> 00:26:11,400
Speaker 1: the home because of financing. Mishap won't get in the way.

603
00:26:11,520 --> 00:26:14,000
Speaker 1: And if you have cash, even if you intend to

604
00:26:14,000 --> 00:26:16,800
Speaker 1: get financing, making that cash offer with the ability to

605
00:26:16,880 --> 00:26:19,640
Speaker 1: secure financing you know during the process could really help

606
00:26:19,640 --> 00:26:22,159
Speaker 1: you out. Basically, it's making that strong offer from the

607
00:26:22,160 --> 00:26:24,960
Speaker 1: get go. It helps you to avoid counter offers and escalation.

608
00:26:25,000 --> 00:26:27,480
Speaker 1: That's what you want to stay away from, where a

609
00:26:27,520 --> 00:26:29,720
Speaker 1: seller says, I like your offer, but there's three others

610
00:26:29,720 --> 00:26:32,640
Speaker 1: that are similar, highest and best by Sunday night Boo. Yeah,

611
00:26:32,720 --> 00:26:35,480
Speaker 1: you don't want to be in that position. That's when

612
00:26:35,600 --> 00:26:38,480
Speaker 1: the emotions start to take hold and you offer more

613
00:26:38,480 --> 00:26:40,520
Speaker 1: than you then you actually wanted to. We're not gonna

614
00:26:40,560 --> 00:26:43,359
Speaker 1: let this one get away, So yeah, we would not

615
00:26:43,359 --> 00:26:46,880
Speaker 1: recommend that, right, But submitting a video or a letter

616
00:26:47,160 --> 00:26:50,040
Speaker 1: can make the difference for multiple reasons. First, it's an

617
00:26:50,080 --> 00:26:53,120
Speaker 1: emotional appeal, but you know, the seller often sees that

618
00:26:53,320 --> 00:26:55,760
Speaker 1: as a sign that you really want the home, you know,

619
00:26:55,840 --> 00:26:57,600
Speaker 1: so that means a greater chance of the deal actually

620
00:26:57,640 --> 00:26:59,760
Speaker 1: going through. And since time is money in a real

621
00:26:59,840 --> 00:27:02,359
Speaker 1: estate transactions, yeah, this helps the seller know that they

622
00:27:02,359 --> 00:27:04,159
Speaker 1: can kind of move on with their life if they

623
00:27:04,160 --> 00:27:06,480
Speaker 1: accept your offer. They're not you know, they don't have

624
00:27:06,480 --> 00:27:08,399
Speaker 1: a new part time job of trying to sell their house,

625
00:27:08,720 --> 00:27:11,239
Speaker 1: which is often the case. That's the worst thing as

626
00:27:11,240 --> 00:27:13,920
Speaker 1: a seller is the contract falling through, having to put

627
00:27:13,920 --> 00:27:16,080
Speaker 1: it back on the market, and it feels a little

628
00:27:16,119 --> 00:27:17,879
Speaker 1: snake bitten. Other people are like, oh, was it a

629
00:27:17,920 --> 00:27:21,200
Speaker 1: bad inspection? What's going on? And and so sometimes yeah,

630
00:27:21,240 --> 00:27:23,479
Speaker 1: that can cost a seller a lot of money. And

631
00:27:23,520 --> 00:27:26,520
Speaker 1: so if you really love the house and you're you know,

632
00:27:26,560 --> 00:27:30,120
Speaker 1: you communicate that effectively to the seller, I think that's

633
00:27:30,200 --> 00:27:33,399
Speaker 1: really helpful way of getting your offer, you know, up

634
00:27:33,400 --> 00:27:36,360
Speaker 1: to the top of the consideration list. Also to Matt,

635
00:27:36,359 --> 00:27:39,400
Speaker 1: there are some people that are suggesting to forego having

636
00:27:39,440 --> 00:27:42,119
Speaker 1: an inspection or for go putting that in the contract

637
00:27:42,200 --> 00:27:45,040
Speaker 1: that you have the right to an inspection, And I

638
00:27:45,040 --> 00:27:47,639
Speaker 1: don't think that's a good way though, to move forward

639
00:27:47,920 --> 00:27:51,280
Speaker 1: with your home purchase. You a waiving that contingency might

640
00:27:51,320 --> 00:27:53,679
Speaker 1: help you get under contract, but it might mean that

641
00:27:53,720 --> 00:27:56,120
Speaker 1: you're buying a house that could potentially be a money pit. Right.

642
00:27:56,320 --> 00:27:59,000
Speaker 1: Inspections can reveal problems that you can't see with your

643
00:27:59,000 --> 00:28:01,480
Speaker 1: own two eyes, you know, unless you are a general

644
00:28:01,520 --> 00:28:05,520
Speaker 1: contractor or you have a ton of experience with houses. Um,

645
00:28:05,560 --> 00:28:07,960
Speaker 1: you know, even personally as someone who's bought half a

646
00:28:07,960 --> 00:28:11,320
Speaker 1: dozen homes and you know, as a landlord has rental properties,

647
00:28:11,440 --> 00:28:14,080
Speaker 1: I still get each one inspected. And so if if

648
00:28:14,080 --> 00:28:16,120
Speaker 1: it came down to that, I would say no way.

649
00:28:16,200 --> 00:28:19,560
Speaker 1: Jose Man I'm gonna I'm going to always put that

650
00:28:19,640 --> 00:28:21,919
Speaker 1: inspection contingency in there, and I'm always going to have

651
00:28:21,920 --> 00:28:24,920
Speaker 1: an inspection done. And if anybody says that you should

652
00:28:24,920 --> 00:28:27,160
Speaker 1: forego that in order to get this home, I think

653
00:28:27,160 --> 00:28:29,000
Speaker 1: that's a step too far. It's something that I would

654
00:28:29,040 --> 00:28:31,159
Speaker 1: not be willing to do. That's rights and also too

655
00:28:31,480 --> 00:28:33,199
Speaker 1: you don't ask for a bunch of repairs to be

656
00:28:33,240 --> 00:28:37,360
Speaker 1: done within uh the negotiating and within the offer. Sellers

657
00:28:37,359 --> 00:28:39,960
Speaker 1: are way less likely to make repairs or press concessions

658
00:28:40,040 --> 00:28:43,400
Speaker 1: when the market is dramatically in their favor. But do

659
00:28:43,640 --> 00:28:46,480
Speaker 1: keep these things in mind. Right, factor those necessary repairs

660
00:28:46,480 --> 00:28:49,640
Speaker 1: into what you're willing to spend on the home. You

661
00:28:49,680 --> 00:28:50,920
Speaker 1: want to get your foot in the door. You want

662
00:28:50,920 --> 00:28:52,680
Speaker 1: to make sure that you're able to lock down this house.

663
00:28:52,680 --> 00:28:54,280
Speaker 1: But at the same time, you don't want to end

664
00:28:54,320 --> 00:28:56,880
Speaker 1: up out of pocket a ton of money that you

665
00:28:56,920 --> 00:28:59,840
Speaker 1: weren't necessarily expecting to spend. Yeah, And I don't think

666
00:28:59,840 --> 00:29:01,840
Speaker 1: we're saying don't negotiate at all. I'm just I think

667
00:29:01,840 --> 00:29:04,200
Speaker 1: we're saying that it makes me think of negotiations with

668
00:29:04,240 --> 00:29:08,520
Speaker 1: my children this way in that right, like like they

669
00:29:08,520 --> 00:29:10,200
Speaker 1: don't have much of a chance to get certain things

670
00:29:10,200 --> 00:29:12,160
Speaker 1: by me, Like Dad, can we have like two more desserts?

671
00:29:12,240 --> 00:29:14,479
Speaker 1: It's like no, And there's like zero chance that that's

672
00:29:14,520 --> 00:29:16,760
Speaker 1: gonna happen tonight. Is you getting more? You getting more dessert?

673
00:29:16,960 --> 00:29:19,000
Speaker 1: And so I think, Yeah, what you're gonna do maybe

674
00:29:19,000 --> 00:29:20,760
Speaker 1: in that process is annoy the seller. And so you

675
00:29:20,800 --> 00:29:22,760
Speaker 1: have to get to be kind of like ginger with

676
00:29:22,880 --> 00:29:24,640
Speaker 1: what you're asking for while you're you're you're in the

677
00:29:24,680 --> 00:29:27,680
Speaker 1: negotiation process. You don't want to overstep your balance because

678
00:29:27,680 --> 00:29:29,120
Speaker 1: that's not the kind of market we're in. Yeah, this

679
00:29:29,200 --> 00:29:30,960
Speaker 1: is another reason why having a great agent is gonna

680
00:29:30,960 --> 00:29:32,960
Speaker 1: allow you to come out ahead. So, like we said,

681
00:29:33,080 --> 00:29:34,960
Speaker 1: if you're purchasing at home, it's gonna take a lot

682
00:29:35,000 --> 00:29:38,160
Speaker 1: of mental bandwidth, a lot of emotional energy. But here's

683
00:29:38,160 --> 00:29:40,600
Speaker 1: the thing, this isn't the only option that's available to you.

684
00:29:40,680 --> 00:29:42,200
Speaker 1: And so if you're not willing to jump through all

685
00:29:42,200 --> 00:29:44,080
Speaker 1: those hoops. Right after the break, we're gonna get to

686
00:29:44,080 --> 00:29:55,440
Speaker 1: a few other options for you to consider. Right we're

687
00:29:55,440 --> 00:29:58,440
Speaker 1: back from break, we're talking about buying a home in

688
00:29:58,960 --> 00:30:01,760
Speaker 1: a red hot market, and I feel like it is

689
00:30:01,920 --> 00:30:03,800
Speaker 1: more difficult. Mat We we did cover a lot of

690
00:30:03,840 --> 00:30:06,440
Speaker 1: ground about what potential home buyers need to think about

691
00:30:06,800 --> 00:30:09,240
Speaker 1: and how the game's kind of changed essentially, you know,

692
00:30:09,320 --> 00:30:11,680
Speaker 1: over the past ten years, and especially in the past

693
00:30:11,760 --> 00:30:14,040
Speaker 1: year year and a half as things have really heated

694
00:30:14,080 --> 00:30:16,360
Speaker 1: up with a short supply. People have to be on

695
00:30:16,400 --> 00:30:17,960
Speaker 1: the ball and they have to be able to make

696
00:30:18,240 --> 00:30:20,880
Speaker 1: um able and willing to make a strong offer from

697
00:30:21,080 --> 00:30:22,720
Speaker 1: from the get go. But they also have to have

698
00:30:22,720 --> 00:30:25,840
Speaker 1: their personal finances in order to get the ball rolling

699
00:30:26,080 --> 00:30:28,440
Speaker 1: with buying a home too. But I think for people

700
00:30:28,440 --> 00:30:30,720
Speaker 1: who maybe aren't willing to, as you said before the break,

701
00:30:30,800 --> 00:30:34,440
Speaker 1: jump through all those hoops, there are some alternatives to

702
00:30:34,480 --> 00:30:36,720
Speaker 1: buying a home throwing a hot market. You can actually

703
00:30:36,760 --> 00:30:38,560
Speaker 1: sit this one out, don't you think? Yeah, man, that's

704
00:30:38,560 --> 00:30:41,120
Speaker 1: certainly an option you could consider waiting for more favorable

705
00:30:41,200 --> 00:30:43,680
Speaker 1: market conditions. You know, this would allow you to save

706
00:30:43,760 --> 00:30:46,520
Speaker 1: up more dough for a bigger home budget while you

707
00:30:46,560 --> 00:30:48,880
Speaker 1: wait for for prices to the chill acts a little bit.

708
00:30:49,080 --> 00:30:51,240
Speaker 1: But the problem, though, right, is that with his plan,

709
00:30:51,560 --> 00:30:55,120
Speaker 1: there's no guarantee that the home prices will actually chill

710
00:30:55,120 --> 00:30:58,240
Speaker 1: out and take it easy, allowing you to execute that plan.

711
00:30:58,320 --> 00:31:00,560
Speaker 1: And there's there's certainly pros and that might allow you

712
00:31:00,600 --> 00:31:04,120
Speaker 1: to personally get in a more stable financial position. But

713
00:31:04,240 --> 00:31:05,960
Speaker 1: that doesn't necessarily mean that the market is going to

714
00:31:06,080 --> 00:31:10,040
Speaker 1: back down, allowing for lower prices in the future. True,

715
00:31:10,080 --> 00:31:12,840
Speaker 1: although I'd be surprised if you know, the market continued

716
00:31:12,960 --> 00:31:15,160
Speaker 1: at the same rate that it's been doing over the

717
00:31:15,160 --> 00:31:17,320
Speaker 1: past year for the next year or two. I mean,

718
00:31:17,600 --> 00:31:20,240
Speaker 1: you know, home prices industry going up year over a year,

719
00:31:20,280 --> 00:31:22,880
Speaker 1: Like that's that'd be um. It would be unlikely that

720
00:31:22,880 --> 00:31:25,240
Speaker 1: that would continue to happen over the next couple of years.

721
00:31:25,320 --> 00:31:26,760
Speaker 1: Each year at your home will be worth like one

722
00:31:26,760 --> 00:31:28,920
Speaker 1: point five million, but in like two years, you're like

723
00:31:29,120 --> 00:31:31,080
Speaker 1: your two bedroom, one bath is now just worth a

724
00:31:31,160 --> 00:31:33,640
Speaker 1: ridiculous amount of money. But yeah, so I think another

725
00:31:33,680 --> 00:31:36,600
Speaker 1: alternative to buying a home during a hot market, you know,

726
00:31:36,640 --> 00:31:39,080
Speaker 1: instead of taking part in the game you said, you know,

727
00:31:39,120 --> 00:31:41,840
Speaker 1: waiting for more favorable market conditions, another reaction is to

728
00:31:41,880 --> 00:31:45,720
Speaker 1: maybe move somewhere else. Right, Like Austin is a specific

729
00:31:45,720 --> 00:31:47,600
Speaker 1: city that maybe if you live there, but you don't

730
00:31:47,640 --> 00:31:50,360
Speaker 1: have to live there, maybe it's a perfect opportunity to

731
00:31:50,800 --> 00:31:53,480
Speaker 1: find a new location to to exist in. Right, It's

732
00:31:53,480 --> 00:31:55,680
Speaker 1: easier said than done, Right, Like, I'd prefer some of

733
00:31:55,720 --> 00:31:58,400
Speaker 1: the other options, you know, than to to this option

734
00:31:58,720 --> 00:32:00,880
Speaker 1: because I love where we if and it's it's not

735
00:32:00,920 --> 00:32:04,400
Speaker 1: my intention to leave anytime soon. Family, community, friendships, like

736
00:32:04,440 --> 00:32:06,760
Speaker 1: all those things are really important when you're thinking about

737
00:32:06,760 --> 00:32:08,920
Speaker 1: where you want to live. But if owning a home

738
00:32:09,000 --> 00:32:10,520
Speaker 1: is a priority for a lot of folks out there,

739
00:32:10,720 --> 00:32:13,480
Speaker 1: and you are flexible about where that house is located,

740
00:32:13,680 --> 00:32:15,800
Speaker 1: I mean, moving even just a few miles away from

741
00:32:15,880 --> 00:32:19,200
Speaker 1: your ideal location could really change the pricing equation. And

742
00:32:19,200 --> 00:32:21,000
Speaker 1: if you wanted to take it to an extreme, I mean,

743
00:32:21,080 --> 00:32:23,760
Speaker 1: be willing to move to another state or city altogether.

744
00:32:24,120 --> 00:32:28,080
Speaker 1: If you're facing extreme market conditions and extreme headwinds in

745
00:32:28,120 --> 00:32:30,600
Speaker 1: buying a home where you currently live, like it might

746
00:32:30,640 --> 00:32:33,240
Speaker 1: make sense to go elsewhere you might find more buying

747
00:32:33,280 --> 00:32:35,720
Speaker 1: opportunities just around the corner. Yeah, and I definitely see

748
00:32:35,720 --> 00:32:37,200
Speaker 1: this as an option for folks who are a little

749
00:32:37,200 --> 00:32:40,000
Speaker 1: bit younger. Right, if you haven't been, you know, in

750
00:32:40,000 --> 00:32:42,240
Speaker 1: your career for very long, like maybe you've only recently

751
00:32:42,240 --> 00:32:45,000
Speaker 1: gotten out of school, but maybe you haven't put down roots,

752
00:32:45,080 --> 00:32:47,360
Speaker 1: and it is easier for you to potentially, you know,

753
00:32:47,560 --> 00:32:50,320
Speaker 1: kind of uproot your very shallow roots and move somewhere

754
00:32:50,320 --> 00:32:52,440
Speaker 1: that's maybe a little more affordable. That might also be

755
00:32:52,440 --> 00:32:54,480
Speaker 1: true for people who are actually quite a bit older.

756
00:32:54,640 --> 00:32:56,400
Speaker 1: I think sometimes for folks who are in the middle

757
00:32:56,520 --> 00:32:58,480
Speaker 1: of their lives, like that's when you have the most

758
00:32:58,560 --> 00:33:01,440
Speaker 1: roots or the most difficult movie, like that's why the school. Yeah,

759
00:33:02,120 --> 00:33:03,960
Speaker 1: really it's kids in the roots that you put down

760
00:33:03,960 --> 00:33:05,680
Speaker 1: once you kind of get involved and you get you

761
00:33:05,680 --> 00:33:08,120
Speaker 1: get used to a certain neighborhood and and those friendships

762
00:33:08,120 --> 00:33:12,680
Speaker 1: in particular, I think are more difficult to replicate elsewhere, right. Yeah,

763
00:33:12,720 --> 00:33:15,280
Speaker 1: And and if your kids are grown, you know, and

764
00:33:15,280 --> 00:33:17,720
Speaker 1: they're off doing their own thing, now, maybe it's the

765
00:33:17,760 --> 00:33:20,400
Speaker 1: perfect time, actually, if you're older, to move somewhere else

766
00:33:20,440 --> 00:33:22,480
Speaker 1: to make maybe even move closer to kids and grandkids.

767
00:33:22,520 --> 00:33:24,680
Speaker 1: And especially I mean, given just the ability for folks

768
00:33:24,680 --> 00:33:26,840
Speaker 1: who work from home, right, I mean, never before have

769
00:33:27,120 --> 00:33:30,000
Speaker 1: we been able to live wherever we wanted to while

770
00:33:30,000 --> 00:33:32,480
Speaker 1: still maintaining our jobs. And so certainly one of the

771
00:33:32,520 --> 00:33:34,800
Speaker 1: effects of the pandemic a huge amount of people who

772
00:33:34,800 --> 00:33:37,960
Speaker 1: can do that for sure. Yeah, and one other option

773
00:33:38,000 --> 00:33:39,960
Speaker 1: I guess we wanted to if they're out there for folks, uh,

774
00:33:40,000 --> 00:33:42,320
Speaker 1: And it's not going to be one that you're excited

775
00:33:42,360 --> 00:33:46,320
Speaker 1: to hear if you've been looking at houses recently, become

776
00:33:46,320 --> 00:33:49,440
Speaker 1: a prince. Yeah, oh no, yeah no, but yeah, if

777
00:33:49,480 --> 00:33:52,040
Speaker 1: if zilla, if you're constantly on zillo and buying a

778
00:33:52,120 --> 00:33:54,640
Speaker 1: home is top of mind for you, you're not gonna

779
00:33:54,640 --> 00:33:56,640
Speaker 1: want to hear a say, but maybe you shouldn't buy

780
00:33:56,640 --> 00:34:00,200
Speaker 1: a home at all. Right, Renting is still to be

781
00:34:00,200 --> 00:34:02,760
Speaker 1: a better decision for a lot of folks. Rents have

782
00:34:02,880 --> 00:34:06,240
Speaker 1: actually gone down in much of the country as single

783
00:34:06,240 --> 00:34:08,719
Speaker 1: family house prices have risen. And so if that's you

784
00:34:08,800 --> 00:34:11,440
Speaker 1: keep renting and save and invest your money for a

785
00:34:11,480 --> 00:34:14,560
Speaker 1: time when supply and demand are a little back and sink.

786
00:34:14,960 --> 00:34:17,320
Speaker 1: And we're hardly even touching on the fact that owning

787
00:34:17,320 --> 00:34:19,640
Speaker 1: your own place, owning your own house or your apartment

788
00:34:19,760 --> 00:34:22,360
Speaker 1: may not necessarily be in the cards given the lifestyle

789
00:34:22,400 --> 00:34:23,880
Speaker 1: that you want to continue living, right, I mean, we

790
00:34:23,960 --> 00:34:26,040
Speaker 1: talked about how the pandemic has caused maybe a lot

791
00:34:26,040 --> 00:34:29,160
Speaker 1: of millennials to kind of really look at what it

792
00:34:29,200 --> 00:34:30,880
Speaker 1: is that they want to spend their money on. But

793
00:34:31,239 --> 00:34:33,439
Speaker 1: I mean, folks are getting back to traveling right now.

794
00:34:33,520 --> 00:34:36,080
Speaker 1: Countries are opening up, travelers becoming more a part of

795
00:34:36,080 --> 00:34:38,439
Speaker 1: our lives again, And so don't let this temporary although

796
00:34:38,480 --> 00:34:41,839
Speaker 1: significant occurrence you know that we've had over the past

797
00:34:41,920 --> 00:34:45,719
Speaker 1: year lead to a permanent or not permanent. You can

798
00:34:45,719 --> 00:34:49,120
Speaker 1: always sell your house, but lead to something that you

799
00:34:49,120 --> 00:34:51,120
Speaker 1: you might regret in a couple of years. Yeah, and

800
00:34:51,160 --> 00:34:53,320
Speaker 1: that regret too, can come with a high cost, especially

801
00:34:53,360 --> 00:34:55,000
Speaker 1: if you're trying to sell a home a year or

802
00:34:55,040 --> 00:34:57,359
Speaker 1: two after you bought it. Now, we know too many

803
00:34:57,520 --> 00:35:00,400
Speaker 1: friends and family members who have done that, and you know,

804
00:35:00,440 --> 00:35:02,440
Speaker 1: they end up hurting them if they didn't known the

805
00:35:02,520 --> 00:35:05,319
Speaker 1: home long enough. It just doesn't give you enough time

806
00:35:05,400 --> 00:35:08,279
Speaker 1: to recoup those costs. And so let's offer a little

807
00:35:08,280 --> 00:35:10,239
Speaker 1: hope to Matt. I think because you know, for those

808
00:35:10,239 --> 00:35:12,680
Speaker 1: who feel like the home price insanity is going to

809
00:35:12,760 --> 00:35:15,680
Speaker 1: continue in perpetuity, that's just not true either. Like we

810
00:35:15,719 --> 00:35:18,719
Speaker 1: always find ourselves in cycles. Market cycles are a part

811
00:35:18,719 --> 00:35:21,400
Speaker 1: of life. Supply and demand will get back in sync

812
00:35:21,480 --> 00:35:24,480
Speaker 1: as builders ramp up to glean the profits, or other

813
00:35:24,520 --> 00:35:26,359
Speaker 1: people put their homes on the market as they see

814
00:35:26,400 --> 00:35:29,000
Speaker 1: prices rising and they're like going for the cash grab.

815
00:35:29,280 --> 00:35:32,160
Speaker 1: And I truly think that even current homeowners are are

816
00:35:32,200 --> 00:35:34,279
Speaker 1: going to see the beauty in selling and renting. For

817
00:35:34,320 --> 00:35:36,919
Speaker 1: a while, some people will see this, They'll say, why

818
00:35:37,000 --> 00:35:38,520
Speaker 1: in the world when I not sell my home for

819
00:35:38,520 --> 00:35:40,719
Speaker 1: six thousand dollars when I can rent in the same

820
00:35:40,719 --> 00:35:43,480
Speaker 1: neighborhood for two thou dollars a month. And that's actually

821
00:35:43,520 --> 00:35:46,960
Speaker 1: the disparity, the true disparity in some locations, Um, you

822
00:35:47,000 --> 00:35:49,160
Speaker 1: can you can rent a six hundred thousand dollar house

823
00:35:49,160 --> 00:35:51,279
Speaker 1: for two thousand dollars a month. If that's the case,

824
00:35:51,440 --> 00:35:52,960
Speaker 1: it's gonna make more sense to a lot of people

825
00:35:53,280 --> 00:35:56,240
Speaker 1: to to start selling their homes. There will be more supply,

826
00:35:56,480 --> 00:35:58,399
Speaker 1: but it's gonna take time, and we've pretty much spent

827
00:35:58,440 --> 00:36:00,920
Speaker 1: this entire episode talking about the inside of the equation,

828
00:36:01,200 --> 00:36:04,919
Speaker 1: But the supply side will inevitably respond accordingly until there's

829
00:36:04,920 --> 00:36:07,200
Speaker 1: a balance. I mean, there is more incentive for home

830
00:36:07,239 --> 00:36:09,840
Speaker 1: builders to ramp things back up as much as possible,

831
00:36:10,200 --> 00:36:12,640
Speaker 1: and there is going to be more incentive for you know,

832
00:36:12,960 --> 00:36:15,319
Speaker 1: sellers to put their house on the market. So while

833
00:36:15,360 --> 00:36:16,960
Speaker 1: this glitch is painful right now, if you want to

834
00:36:16,960 --> 00:36:19,200
Speaker 1: buy a house like you know, in the next year,

835
00:36:19,400 --> 00:36:21,839
Speaker 1: it's not gonna last forever. Yeah, and don't forget too

836
00:36:21,840 --> 00:36:23,840
Speaker 1: that rising interest rates could cool things off. You know,

837
00:36:23,840 --> 00:36:26,200
Speaker 1: we're not predicting an interest rate spike per se, but

838
00:36:26,560 --> 00:36:29,680
Speaker 1: we are still near all time lows and so and

839
00:36:29,800 --> 00:36:33,080
Speaker 1: this has helped housing affordability. If interest rates take up,

840
00:36:33,440 --> 00:36:35,759
Speaker 1: that will likely cool off the rising prices, because you

841
00:36:35,760 --> 00:36:38,279
Speaker 1: know it's gonna hurt overall affordability and so. On one hand,

842
00:36:38,320 --> 00:36:40,080
Speaker 1: I guess, you know, rates going up, it's a bad

843
00:36:40,120 --> 00:36:41,560
Speaker 1: thing because that means you're gonna be paying more to

844
00:36:41,600 --> 00:36:43,319
Speaker 1: the bank. But it's also it kind of bounces out

845
00:36:43,360 --> 00:36:45,359
Speaker 1: maybe a little bit, because we might see prices come

846
00:36:45,360 --> 00:36:47,760
Speaker 1: down a little bit in the future. Yeah, Obviously, housing

847
00:36:47,800 --> 00:36:50,000
Speaker 1: prices in the last couple of years have been insane,

848
00:36:50,560 --> 00:36:52,360
Speaker 1: and it stinks if you're in the market or if

849
00:36:52,400 --> 00:36:53,520
Speaker 1: you want to be in the market to buy a

850
00:36:53,520 --> 00:36:55,920
Speaker 1: house and you're like, I'm forced to sell on the sidelines.

851
00:36:55,960 --> 00:36:58,600
Speaker 1: This is not even a choice. I cannot participate, and

852
00:36:58,640 --> 00:37:00,560
Speaker 1: it can be discouraging. I think if owning your home

853
00:37:00,600 --> 00:37:02,160
Speaker 1: has been a big goal for you and your family,

854
00:37:02,160 --> 00:37:04,560
Speaker 1: you've been saving for it for maybe even years now.

855
00:37:04,840 --> 00:37:06,839
Speaker 1: But also at the same time, Matt, the mortgage rates

856
00:37:06,880 --> 00:37:09,760
Speaker 1: you just mentioned, they do mean that affordability hasn't gotten

857
00:37:09,880 --> 00:37:11,400
Speaker 1: as out of whack as I think a lot of

858
00:37:11,400 --> 00:37:13,920
Speaker 1: people might think. They see the sky high prices, but

859
00:37:14,680 --> 00:37:17,000
Speaker 1: you know, super low interest rates, you know, thirty year

860
00:37:17,040 --> 00:37:19,400
Speaker 1: mortgage in the twos, you know, is what we were

861
00:37:19,400 --> 00:37:21,279
Speaker 1: seeing at the end of last year that made it

862
00:37:21,320 --> 00:37:23,400
Speaker 1: so that people could afford to buy more home. And

863
00:37:23,440 --> 00:37:24,960
Speaker 1: I think we need to reiterate if you're planning to

864
00:37:25,040 --> 00:37:26,680
Speaker 1: stay in the home that you're buying for seven years

865
00:37:26,760 --> 00:37:29,640
Speaker 1: or longer, buying a home even in the middle of

866
00:37:29,680 --> 00:37:32,239
Speaker 1: this current madness, it's it's not a terrible idea, but

867
00:37:32,280 --> 00:37:33,640
Speaker 1: you just got to make sure you follow some of

868
00:37:33,680 --> 00:37:35,879
Speaker 1: the steps that we've discussed so that you don't don't

869
00:37:35,960 --> 00:37:39,160
Speaker 1: end up with six figures of buyer remorse or pull

870
00:37:39,280 --> 00:37:41,840
Speaker 1: the trigger based on kind of an emotional reaction to

871
00:37:41,880 --> 00:37:45,400
Speaker 1: what's happening now, wanting to get in before prices outstrip

872
00:37:45,480 --> 00:37:47,880
Speaker 1: your ability to afford a home. That would be a

873
00:37:47,880 --> 00:37:49,960
Speaker 1: bad reason to buy. And Matt and I we continue

874
00:37:50,000 --> 00:37:51,440
Speaker 1: to believe, and we will continue to say on the

875
00:37:51,440 --> 00:37:53,840
Speaker 1: show that renting is not throwing away money, and it

876
00:37:53,840 --> 00:37:56,279
Speaker 1: makes more sense for more and more people every single

877
00:37:56,360 --> 00:37:58,480
Speaker 1: day as prices continue to just kind of shoot through

878
00:37:58,520 --> 00:38:01,600
Speaker 1: the roof. Yeah, man, that's right. And hopefully with this episode,

879
00:38:01,719 --> 00:38:04,280
Speaker 1: listeners are able to see that purchasing home in today's

880
00:38:04,880 --> 00:38:07,400
Speaker 1: hot environment, it's not as simple as a yes or no.

881
00:38:07,520 --> 00:38:09,440
Speaker 1: There are a lot of different things that we need

882
00:38:09,480 --> 00:38:11,640
Speaker 1: to take into account. But if you do want to

883
00:38:11,640 --> 00:38:13,440
Speaker 1: purchase at home, there are a number of things that

884
00:38:13,440 --> 00:38:14,640
Speaker 1: you need to keep in mind to make sure that

885
00:38:14,680 --> 00:38:18,120
Speaker 1: you're successful at snagging that home. But Joel, now it's

886
00:38:18,120 --> 00:38:19,680
Speaker 1: time for us to shift gears. Let's get back to

887
00:38:19,680 --> 00:38:22,320
Speaker 1: the beer that you and I shared on this episode.

888
00:38:22,520 --> 00:38:25,680
Speaker 1: That's one was called Rhyming Numbers by the Eighth State

889
00:38:25,719 --> 00:38:29,600
Speaker 1: Brewing Company, and this was an Imperial sour with lots

890
00:38:29,680 --> 00:38:32,279
Speaker 1: of different things included. Uh in this beer? What your

891
00:38:32,280 --> 00:38:34,040
Speaker 1: thoughts on it? All? Right? So, yeah, there was a

892
00:38:34,080 --> 00:38:35,920
Speaker 1: ton of things in this beer. I would say when

893
00:38:36,000 --> 00:38:37,560
Speaker 1: when we poured the beer, it looked like I was

894
00:38:37,640 --> 00:38:41,120
Speaker 1: drinking Perade Beat. And I will say, I'm glad it

895
00:38:41,160 --> 00:38:43,040
Speaker 1: wasn't purade Beat, because I don't think I want to

896
00:38:43,120 --> 00:38:47,080
Speaker 1: dug that beats are good. Uh yeah, I'm kind personally,

897
00:38:47,160 --> 00:38:49,239
Speaker 1: I'm glad you like them. I love beats. Would you

898
00:38:49,320 --> 00:38:54,200
Speaker 1: drink parade Beat? Um? Yes? Well, okay, but it didn't

899
00:38:54,200 --> 00:38:57,040
Speaker 1: taste like that. It tasted like had pineapples and cherries.

900
00:38:57,160 --> 00:38:59,200
Speaker 1: Kind of kind of vibe going on also to some

901
00:38:59,200 --> 00:39:02,160
Speaker 1: sweetness because they was marshmallows in this beer. And then

902
00:39:02,360 --> 00:39:04,279
Speaker 1: like the beer said, there were pistachios in it. I

903
00:39:04,320 --> 00:39:07,400
Speaker 1: was barely getting any nuttiness in it, but maybe just

904
00:39:07,440 --> 00:39:09,640
Speaker 1: a hint. But this beer really was like a kitchen

905
00:39:09,640 --> 00:39:12,200
Speaker 1: sink beer. They tossed a bunch of stuff in. But

906
00:39:12,520 --> 00:39:15,000
Speaker 1: this brewery, they ate stayed out of South Carolina. They

907
00:39:15,040 --> 00:39:17,359
Speaker 1: know what they're doing to such an extent that this

908
00:39:17,440 --> 00:39:21,360
Speaker 1: was delicious, like SPoD imminently drinkable sour beer with a

909
00:39:21,400 --> 00:39:23,520
Speaker 1: bunch of different flavors coming at you that just blended

910
00:39:23,560 --> 00:39:26,120
Speaker 1: perfectly together. Yeah, you mentioned pistachio. That's one of the

911
00:39:26,239 --> 00:39:27,799
Speaker 1: ingredients they had listened to. Here we can all agree

912
00:39:27,800 --> 00:39:30,480
Speaker 1: that pistachio are like the best nut out there. Yeah, like,

913
00:39:30,680 --> 00:39:34,520
Speaker 1: yeahstachio came down. There's no better nut than the pistachio.

914
00:39:34,760 --> 00:39:37,600
Speaker 1: But yeah, it's interesting you mentioned are close second. Almonds

915
00:39:37,600 --> 00:39:39,520
Speaker 1: are very good, Yeah, but they still don't. Dude, if

916
00:39:39,520 --> 00:39:42,880
Speaker 1: pistachios were as easy to eat as almonds, then I

917
00:39:42,880 --> 00:39:44,920
Speaker 1: think pistachios would definitely win. You need to you need

918
00:39:44,960 --> 00:39:47,440
Speaker 1: to go my route and buy the pre shell in

919
00:39:47,480 --> 00:39:50,759
Speaker 1: the bag at the costco. Man, it's it's a wonderful feeling. Uh.

920
00:39:51,040 --> 00:39:53,440
Speaker 1: You mentioned cherry, and it's interesting because there's actually not

921
00:39:53,520 --> 00:39:55,640
Speaker 1: cherry listed out on here, but it totally has cherry

922
00:39:55,719 --> 00:39:57,920
Speaker 1: vibes going on. I feel like it almost has like

923
00:39:57,960 --> 00:40:01,160
Speaker 1: this mold red wine kind of of flavor profile gone on,

924
00:40:01,200 --> 00:40:02,920
Speaker 1: Like in my in my mind, there's like almost like

925
00:40:02,960 --> 00:40:06,759
Speaker 1: warming spices where it feels like a you know, just

926
00:40:06,800 --> 00:40:08,839
Speaker 1: like a kind of blanket of a beer on your

927
00:40:09,200 --> 00:40:10,880
Speaker 1: on your tongue as you drink it. And so this

928
00:40:10,920 --> 00:40:13,160
Speaker 1: hour almost kind of has like stout like qualities, Like

929
00:40:13,320 --> 00:40:15,680
Speaker 1: you know, you're kind of drawn to that heaviness, you're

930
00:40:15,719 --> 00:40:18,080
Speaker 1: kind of drawn to that texture. Maybe a little more

931
00:40:18,120 --> 00:40:19,680
Speaker 1: in the in the winter or maybe even in the

932
00:40:20,080 --> 00:40:23,040
Speaker 1: autumn months, but you're typically looking for that with the stouts,

933
00:40:23,080 --> 00:40:24,920
Speaker 1: and so to have that in a sour is actually

934
00:40:25,040 --> 00:40:27,440
Speaker 1: was to me really unexpected but at the same time

935
00:40:27,440 --> 00:40:29,680
Speaker 1: extremely delicious. I'm glad that you and I got to

936
00:40:29,680 --> 00:40:32,000
Speaker 1: share this one, and big things to the folks out

937
00:40:32,000 --> 00:40:34,680
Speaker 1: there at eight State Brewing for donating this one to

938
00:40:34,719 --> 00:40:36,680
Speaker 1: the show. No doubt, all right, that's gonna do it

939
00:40:36,719 --> 00:40:38,320
Speaker 1: for this episode. If you want to check out the

940
00:40:38,320 --> 00:40:40,160
Speaker 1: show notes and links to anything that we mentioned on

941
00:40:40,320 --> 00:40:42,359
Speaker 1: the this episode. Just go to our website at how

942
00:40:42,400 --> 00:40:44,560
Speaker 1: to money dot com. That's right, man. So that's gonna

943
00:40:44,600 --> 00:40:47,120
Speaker 1: do it for this episode. Until next time, Best Friends Out,

944
00:40:47,160 --> 00:41:00,120
Speaker 1: Best Friends Out, m