Venture With Joe and Cody
Venture with Joe and Cody is a captivating journey into the lives and stories of business leaders, entrepreneurs, and pivotal community figures, revealing the essence of success through candid conversations. Tune in to discover the setbacks, triumphs, and invaluable lessons learned on the path to making a mark in the business world and beyond.
Venture With Joe and Cody
Navigating Real Estate Disasters: Stories from the Trenches
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Joe and Cody discuss the current real estate market conditions and share cautionary tales from their experiences in the industry.
• Oregon and Washington markets remain stable despite media narratives about housing crashes
• The current market requires more patience from sellers as buyers take longer to make decisions
• Joe shares a close call where incorrect paperwork almost cost him an entire commission
• Cody recounts a story of buyers with employment gaps who ultimately walked away from the deal
• Commission clawbacks affect mortgage professionals when loans are paid off within six months
• Cody offers a 1% credit (up to $10,000) for buyers using his services on Joe's listings
• Finding the right balance in client communication helps demonstrate value without overwhelming them
Remember, quality representation matters – choosing experienced professionals over discount services can make the difference between a successful transaction and a costly failure.
Hey guys, we're back with another episode of Venture with Joe and Cody. My name is Joe Skipper, owner of Skipper Realty Group, out of Oregon, with Cody Wilhelm out of Washington, residential mortgage. How are you, my man? That's right, washington. One of the podcasts I listen to it's Adam Carolla and Dr Drew, and it's not like what was it, Loveline?
Speaker 2It's not Loveline.
Speaker 1Yeah, but it's not like night, what was it love line? It's not love, yeah, but uh, but it's their old version of this and they just blimp, banter or whatever. But I always think of their intro because uh, adam carolla will just intro, like how he intros, uh, the board certified physician dr drew, like he just kind of rambles off or says something, or you don't understand it and I was like maybe I just need to do that with cody, just like but yeah, maybe not, but anyways, I like it.
Speaker 1It's worth the show the intro is like the intro is difficult because you're, it's just, we hear it all the time, like we say it all the time. Yeah, probably to most people they don't even think about it, but because I say I feel super insecure about it, you know well, and then you wonder like should I say the same thing every time? Do I change it up I? Know, it's weird anyways, my man. Well, how are you doing? How's how's the week going? What's going on in your life?
Speaker 2good. Yeah, we just finished up the the month of april, so kind of getting through the busy chaos you know the spring, spring season of home buying and selling.
Speaker 1So yeah, close that out, so it's nice to yeah, they are, yeah, it's.
Speaker 2It's kind of hit or miss, but it feels like we kind of went through a nice little wave where it seemed a little bit busier, and then it always seems that way, where it's like you have, you have a month or two and they're busy, and then it starts to slow down and you start to question everything and then the phone rings again applying for McDonald's jobs, and yeah, exactly you need to get back to it. Who's hiring out there? What can I do?
Speaker 1like can I? I gotta stay in shape because I might have to be a cop again.
Speaker 2Like right, yeah, at least you got that yeah, I don't think they take me.
Speaker 1I'm too old now, man. I'm washed, that's true, yeah can you pass the physical I like in my head I think that I'm that, I'm uh capable.
Speaker 2But I think I could be. I think I could do it. Well, that's how I feel when I step on a skateboard and I realized that I'm not capable anymore.
Current Real Estate Market Conditions
Speaker 1Oh man, Well, yeah, that's good. Uh, good Things are. Things are trucking along, everything you know, the real estate world. For us, thankfully, in a in a real estate world, that is pretty hard, I think nationally for a lot of agents like we're thankful that we have we still have business trucking in. So we're for a lot of agents, we're thankful that we still have business trucking in, so we're ramping up it's getting busier and busier.
Speaker 2Good, you're doing something right I think so.
Speaker 1I think so. I think it's the podcast. That's probably where your business is coming from. That's it. That's the only thing. No, I think for all of us it's hard to talk to sellers and buyers and everyone just about the new market, and I know we've talked about it forever, week to week, but it's just, you know it's hard, it's slower slower sales, slower offer pace, slower you know, and it's just like kind of getting used to that it's not that you know your price is off or you need to drop the price 10%, 15%, it's like you just have to wait.
Speaker 1You know Like it's. Even buyers interested are like yeah, let's give it a week, let's sit on it you know if it sells. They're just more apt to say that stuff. So it's just an interesting market. Again, we're thankful we have a lot of clients. But you know it's it is harder for them, you know, to kind of navigate this selling world.
Speaker 2So but yeah, it's well. It's a weird time too Like this is the. This seems to be the normal kind of where things would pick up, but I feel like there's just a lot of uncertainty and, like you said, people are just more on the fence about it. And I think waiting is kind of like what people just naturally go to until they are, until they just realize. I think probably what we have been seeing over the last few years that just waiting, you know, I think that there's a lot of people that still think that waiting is going to produce this epic crash or decrease in prices or something. And who's to say that it won't? But I just I don't know. I feel like what we went through in 08, 09 was just an anomaly. It's kind of like having interest rates at 2.5%. That just is not going to probably happen again.
Speaker 1Yeah, I think you're right, the bubble's not going to probably happen again. So, yeah, I think you're right, it's. It's the bubble's not there that I see popping. Yeah, yes, and that's that's. What's hard is because the media can take a big conglomerate of all of America and say there's a bubble. You know, yeah, and it could be the case in certain areas I know Florida, I've heard anecdotally, and Texas, anecdotally, is has a lot of supply and not as much demand.
Speaker 1So there are some places that have it, but I do think there's people that hear the media talk about that nationally and think in Oregon or Washington, I'm just going to wait till prices drop $100,000.
Speaker 2And it's just not, we're not seeing it.
Speaker 1And we're seeing still buyer activity at good prices. So, you know? Yeah, we could be wrong, but it's just not in in the cards. I don't know. But you can't I don't think so either.
Speaker 1Maybe it's just not for them, it's not to buy right now, that's fine. But yeah, to try and convince people that it it's not going to do that as hard. And then, yeah, you know, they wait 10, 15 years down the road and they're like and it does happen, they're like I told you yeah right, I told you it was gonna happen.
Speaker 2I longer than I thought it's 17 years, but you guys are liars yeah it's like oh, I guess we are yeah, no kidding, you don't know anything about the market yeah, if you bought a house after 2009, 10 up until now, so the last 15 years I don't know that there's a point, maybe be people's individual situation, but as far as just the market, I don't know that there's a point. Maybe it'd be people's individual situation, but as far as just the market, I don't know that there's a whole lot of regret in buying at that time. I don't know.
Speaker 1I guess, like you said, you can afford it, yeah, rather than invest in stocks. And I'm not saying don't do that, but a lot of people we've seen have. Actually, you think that people with stock portfolios are kind of hesitant to buy in cash. Having said that, there are some people with stock portfolios that are like I'd rather throw this money into a home, because I know, that, yeah, it's not going to be as volatile.
Speaker 1It won't be as volatile, which is good. It won't gain you maybe as much year to year, depending on where you go, but it could. It will just be a good solid base to kind of keep in. You know, keep appreciating. So we do see people starting to do that, to say, yeah, I can afford this. I'm just I'm rather than day trading stocks and seeing my, my portfolio, just like Ooh making making the rounds. I just want to put it in homes, you know. So there's multiple ways to think about it.
Speaker 2You got to live somewhere, so you might as well own the place you're living, if you can afford it and make it happen. I agree, I agree.
Speaker 1Well, speaking of this, I wanted to go over some crazy stories with you. Oh yeah, I have one recent one, but I have one that's like not so recent that I wanted to talk about.
Speaker 2I love it.
Speaker 1I'm going to get fired up about the second one or the more recent one, but I'll start with the old one, If you have, if you have the time to listen.
Speaker 2I have. Let's see Yep.
Speaker 1I do Okay, good, okay. So we got it. We have a deal while I'm working working with clients. I might've told you this, but I'm going to say it again. I think you already know it but act like you're interested and act like you don't know anything.
Speaker 2That's going to happen, I will be at the edge of your seat that is like friends, you know it's not a.
Speaker 1It's not a cold lead, it's not anything. It's someone that is solid, wants to use me as their agent. You know no issues with that. So it's all all the paperwork for buyers, agents, agreements, all the stuff. There is all a mere formality, because they're they agree, you know. So there's no excuse for what happened, but I'm just giving you a preface that it's not like a new client. So, anyways, they've made a couple offers. They're cash buyers, they're a couple. They made a couple offers on different homes throughout the area. They ended up not going with them or not winning the offer, or vice versa, whatever the case might be.
Speaker 1So at every time that we made that offer, every time we made the offer, the husband was the one to sign. He just is like it's easier to just have it under my name. I don't want my wife's name under it. The stock stuff, you know their portfolio, has his name on it. He can just make the offer. So no big deal. So when we signed the buyer's agent agreement, it was with him. Though the wife has all the power, you know as much as him. They make the decisions, but anyways. So we're going along, going along. It's like Tommy boy driving along, driving along, but anyways we finally find the house that they both agree to.
Speaker 1Again they're like let's make an offer. I write up the offer, I'm writing up the offer and he says let's just put for this particular house, let's put my wife on it, I don't want to be put on it because we can use her account, you know, to pay for it. And I said, okay, cool, let's just write it under her name. So write it under her name, make the offer gets accepted. Cruising along, everything happens, it closes. I think everything's fine. No, when I had him sign that buyer agent agreement, he signed it. She did not. So we are in a point where I get a letter from my brokerage saying, hey, can you get the buyer's agent agreement signed prior to the contract for this purchase? And I was like I have it, yeah.
Speaker 1I have it right, I think I have it and I look and I only have his name on there. So they're basically like you can't get paid, like you've been paid, but now you need to give it back.
Speaker 2Really.
Speaker 1And so I'm, at this panic point, like cause, you know, it's not the end of the world, but it's like it's, it's a big deal you haven't told me this story, by the way.
Speaker 1So I, so I'm going to. I, basically I call my wife. I was like, look, we may lose this money, just so you know. And she's freaking out. I'm like I know, I know that you delineate different parts of your budget from the commission to pay for things that you need to pay for. So we had already planned all this and I was like I just want you to know I'm stressing about it we might have to return this money, Wow. And so, anyways, talk to my principal broker this money. And so, anyways, talked to my principal broker.
Speaker 1Find out that my personal brokerage has been doing the buyer's broker agreement in advance of the new laws that took effect and all the stuff that actually happened legally. My brokerage was kind of on the forefront, said let's just start doing it, let's just do it before it's required. It's down the pipeline, so we've got to just do it. Talked to my broker and I'm like is there any way? I was like he signed it. Yes, she didn't sign it, but this was one off deal. This is like they're both in agreeance. She'll sign it now, she'll sign a new one, she'll sign, like you know, post it.
Speaker 1He's like I don't think you can backdate it Like. He's like this is you know you've already closed, so he's like let me call you back. I'll start talking to our heads of heads to see, like, well, if, if anything, we can do, so at this point I'm like, I'm honestly like and it's it's maybe sad, but maybe opportunistic I was like okay, well, the positive is like I can make a video on this and teach people and teach agents. Like the mistake I made, that cost me thousands upon thousands of dollars.
Speaker 1I was like I will do a video, like you know, and just teach people Like this is a mistake you can make and it's a simple mistake. It wasn't you know anything malicious. And so, like three hours later, he calls me and is like okay, we managed to get it to let you keep it. However, this because the law had not officially changed in Oregon. This because the law had not officially changed in oregon. They, it was exp's decision. You know, they're okay, company policy, yeah, and he's like we can make an exception here, but he's like, once this law comes into place, if you don't have that in there, we are done no way it was really absolutely insane.
Speaker 2Wow, it's like the the amount of like stress that went through me in the last few hours of that was so that all happened like within one day, where you found out, and then, or did it stretch out over like a couple of days?
Speaker 1You know what's funny is I got an email from eXp and I thought it was just their standard email, like, oh, there's some issue with whatever. You know you get those emails that are just kind of more. It appeared more standard, so I just ignored it. And so my transaction coordinator actually emailed me and she's like hey, how are we going to address this? And that's where I was like what do you mean address it? I was like what do you like? Because at first I thought, well, even if there's a mistake, like it's her husband, like he's already signed one.
Speaker 1They're good, you know like handshake, aren't we good like they're friends. So I just thought, oh yeah, it's no big deal. And caitlin, like my caitlin, my transaction coordinator, was like no, it's, it's like not a good deal it is, you will be paying back all that money and I was like, oh no, so it was probably, probably a couple days. But the first part of it I was so naive I was like that's fine, I'll see sure exp and say we're cool like no big deal yeah you know blah blah and, and then it was like no.
Speaker 1So the day there was like a day of like, four hours of like and four hours doesn't seem like a long time until you're like, yeah, how am I?
Speaker 1and and my wife's like I gotta move money around back because you know it had been, it had already been close, it had been closed for probably a week or so, so it wasn't like it was like a closed the day of, and they're like hey, get that back. It's like their time, christina's like spending, like you know, and so so even as I'm talking about it, it stresses me out.
Speaker 1But anyways, if you're an agent out there listening, make sure that who makes the offer is signed the buyer's agent agreement before you write the offer, even if they're your buddies.
Speaker 2Yeah.
Speaker 1It's a. It's a.
Speaker 2Wow, if they're your buddies, yeah, it's, uh, it's wow. I would have never thought that that would. I mean, I understand it, but I would have never thought you'd think that it's just like a makes sense.
Agent Horror Stories Begin
Speaker 1Oh the the husband signed it, but it was just the wife that was on there. But I guess the technically I know and I was like there's a letter of the law and the color of the law, they say, and like I, get the letter of the law for sure but I was like, really like yeah, and I was like it was enough of a commission where I was like I may fight it, like I was talking to christina, I was like I may actually like pursue this and get some appeal or something, because I'm like this is not a significant amount of money and I don't think, yes, it was a mistake made, but it wasn't like.
Speaker 1It was like I just didn't have anyone sign it. I just, you know, I disregarded the rules. That in all cases, it was like you know but, it just goes to show it was my. It ultimately my fault.
Speaker 2But man paying attention to those little details, especially with the new buyers broker. Yeah, That'll hit the panic button.
Speaker 1Crazy, but anyways you got one that can top that.
Speaker 2We have. Well, mine's not quite the same type of thing, but yeah, I've got one. That was probably within the last year or so. But a little side note on that Did you know and I don't know if this is for every company this is for every company that I've ever worked for which I think I'm on my, I think I'm at my fourth company maybe, since in the business, if we close on a loan and that person who got the loan, as we call them the borrower, if they pay off that mortgage within six months, we have to pay back our commission.
Speaker 1Yeah, yeah, I heard that. But how do you tell somebody that it's very hard? And I've had that. I don't know if I've had that conversation with you before or if I've had it with another lender that had that same issue, and basically, yeah, Is this is? This leading into that story.
Speaker 2No, but it just made me think of it when you were talking about like potential of commission coming back.
Speaker 1Absolutely, it's scary because we have had a couple that were like, yeah, we want to pay it off. They granted, they were super kind and they were like, look, we'll just wait till the, we'll wait till the day that they get. You know that, whatever the date that is, we'll just wait to pay it off so that they can keep their commission. But there was that, that fear, and the lender was like I don't know how to ask, like I don't want to be rude I don't want to be like greedy, but it's like they pay this because they were like yeah, we're going to pay it off in a month, like when we sell our house.
Speaker 1We're just going to pay it off or we're going to. You know, I forgot the scenario, but it was like the lender's like can you ask about it? And I totally get it because they worked hard for it. And so, luckily, those sellers were like or the buyers were like yeah, totally, we'll just wait. We were going to pay it off early, but we'll just wait.
Speaker 2nine months, make six payments. Yeah, call it good. Yeah, that's scary. Do you have that a lot?
Speaker 1No, not a lot, but I do have it sometimes when somebody is they're buying a house and they're selling their house after they close and their plan is just to pay off that mortgage.
Speaker 2And it's like, oh, okay, well, yes, you can do that Just here's how it works.
Speaker 1I do yeah, yeah, I think it's smart to get ahead of it, because most people understand that, I think.
Speaker 2Yeah.
Speaker 1A difference of what two months Like if you're going to sell your house, you know, like even six months.
Speaker 2Just be like just wait a half year and pay it off, and I'm up front with them on it too, as much as it's kind of an awkward conversation Because they'll ask, like is it okay if I just pay it off? I'm like you can do whatever you want with it, I'm not going to tell you what you can and can't do. Just know that our company, as well as myself, like everything that we would make on that loan, we have to pay back myself included.
Speaker 2So I'm not going to tell you that you can't do it, but if there's any possibility that you can make six payments, please do that, and they're usually pretty cool about it because it's to them. Like you said, it might be the difference of a couple months, once everything's said and done or it's like hey, you can put down a you know a big chunk of that and then just pay the rest off in a couple more months. For me, I'll get you a nice gift.
Speaker 1That's like it's nice, like working with clients that you know you want to work with, like really finding like I know we'll, we'll help anyone. But it's like, yeah, it's always nice to be more referral and things like that, because then you get people that you kind of don't worry about those things, that some people I think with a lot of cold leads, sure, a lot of that more. That's like I don't care who you are you know, like they don't have any and it's yeah.
Speaker 1I think that when you have like a, a warm lead system, it works a little bit better yeah, they care a little bit better.
Speaker 2Yeah, they care a little bit more.
Speaker 1Yeah, and let's just respect what you do, but there's always going to be people that don't like we have that multiple times. We've talked about this before. It's like if they're if they're immediately asking for discounts, they don't respect what you're doing Exactly Right?
Speaker 2Yeah, no, the story that I was thinking of, I think it was within the last year or so, without going into too many details, this borrower had job hopped a lot and you know, for us on the lending side, you can change jobs, you can. You can even change types of jobs. It really comes down to the consistency. Is it something that's kind of predictable? What's your income structure? Like? He had bounced around jobs a lot and when he filled out the application, there were not the job gaps on the application that were the reality.
Mortgage Commission Clawback Dangers
Speaker 2So we're moving along, thinking, okay, we've got little gaps here and little gaps here, but we're totally fine, we're still within the guidelines. Well, they get under contract. We're moving along and as these verification of employment documents come back from his previous employers, it's like, oh, that month and a half gap that he said he had here was actually four months, and then this next one was two months. And then so we're going through and like, okay, we're now to this point where you no longer qualify because you haven't been at your current job for six months. But the good news, we're like 20 days away from six months. So if we can extend this, for an additional 20, 30 days.
Speaker 2Not ideal for anybody, but the seller was in a position where they could and the buyers decided to. So we get to this point and now we're like coming up against it and we had to. We had to go a little bit farther to get one pay step. So he hit his six months and then we needed that pay step. So that got us into needing one more extension and the seller at this point was like okay, we're going to release earnest money. In order for us to just hit this last step, we need some commitment from you as the buyer. And buyers are like no, we can't do that. It was a thousand dollars earnest money, because it was like I don't remember what the situation was.
Speaker 2It was they knew the seller something where it wasn't your normal, like one percent yeah, so it was a thousand bucks and they're like no, we just can't risk it, we're not in a position where we can do that. We're just gonna, we're just gonna have to back out. And so myself and the other agent were like we're almost here, like we've gone through so much to get here. Let's, let's do this.
Speaker 1Yeah.
Speaker 2If you can't, if this doesn't go through, the this other agent and I will help split the cost of your earnest money. So you're not out anything. You're, you're at no risk here. And so she's back and forth, back and forth. No, you're, you're at no risk here. And so she's back and forth, back and forth.
Speaker 2No, so then I'm talking to her and I'm like hey, what's, what's really going on here? Because we've we've gone down this path, like we've gone through so much stuff here, and now I feel like you, I don't know, like do you not want the place anymore? And she's like well, I'm just worried about my husband's work. Like he has a hard time staying with jobs and everything. So they ended up backing out. We got to this point where we're like, at the, all we need is for you to just stay at your job for one more week so we can get that pay stub and confirm that you are still there. Well, then I find out I don't remember how much longer ago, it was a couple of weeks, you know, a month. I'd followed up with them to check in. Sure enough he'd quit his job.
Speaker 2So I think that they knew. I mean, and I don't know, when he quit his job. He could have quit his job before we even got that pay stub. But sometimes I'm like dude, I just heard about one the other day where the guy quit his job or changed jobs and it's like the last week of the loan and nobody really knew what was going on. I'm like, how is it? Sometimes I wonder, is it really that hard Like just keep?
Speaker 2your job until the house closes, Once the house closes you get to live your life however you want again.
Speaker 1But give us 30 days of like a controlled environment outside of that do whatever you want, but I know it seems so common sense, but it's like you know, I don't know. People have different priorities. I guess, like, or don't really take it as seriously as you know, I don't know, people have different priorities. I guess, like, or don't really take it as seriously as you know. Maybe it's a lack of knowledge, maybe it's a lack of care, but it's like you know, I don't know that they don't.
Speaker 2The amount of times I get people that will ask me if they can take another job at the beginning or during the middle of of the process. It blows my mind because I just I don't know. Maybe it's maybe like you said, maybe it's just an education piece and it's just not really thinking that it's going to be, you know, because what does it matter if you go get a car or anything?
Speaker 1else, or they're like. You know I make like this new job makes more money, so what's the big deal?
Speaker 2Right.
Speaker 1You know, like it's yeah, it's like it's not a big deal to your lender that's going to lend you a half a million dollars or more, you know, and for the most part, if you don't have a history of just bouncing jobs, you're going to be fine more than likely.
Speaker 2I mean you know that's kind of a blanket statement, but there are people that it's like if you take that next job now we're looking at, you might have to be there for six months because you've changed jobs three different times in the last 24 months or whatever. So it's like sometimes it even though, yeah, they are making more money, it's like, oh yeah, but now we got to. Now we got to do this and this and this in order to just keep us where you were at two days ago. But for sure, yeah.
Speaker 2You have another one, don't you? I do? I said you had a more recent one I know.
Speaker 1I don't know if it should be talked about right now Like as I, as I calm down it is too fresh.
Speaker 2Yeah.
Speaker 1No, I don't know if I can talk about it, not because of anything, just more privacy reasons, I think, at this point as. I was thinking about it, but yeah, yeah, no, I think. But I think what I can say is that you know, feel free to call me, I'm happy to talk about it in person. I think what happens. It was another example after example, after example, but this was the latest example of if you don't have an agent, that is worth it, and I'm not saying I'm the best agent around.
Speaker 1But if you cut corners, if you get a discount agent, if you're going to get discount service and in this particular case it cost a deal and it wasn't me it just cost my client the deal. And because the other agent was either performed poorly out of maliciousness or out of stupidity, it's one or the other and it just. It just goes to show they're super upset they. They were not upset at me, but it was like how did people get away with this? And unfortunately in this industry, as much as everyone wants to say that we have the Board of Realtors and we have this big investigation purposes and get people caught in trouble, I came from the police world. Nothing in this real estate industry has this highest standard of what we had to be held to in the police world. And I'm not saying that agents should be held to a high standard like that, but I kind of am.
The 1% Credit Opportunity
Speaker 1I think we see this more often than not that you can easily get your real estate license. You can. It's a couple thousand dollars to take the courses to get the license, but it takes a lot more to be a good agent. And I think I just hate seeing people they're not even my clients, but they're going to lose out on a sale and it's just because it's it's a lack of competency in the other side of things and it's just like super frustrating because it's like these are huge purchases and people are putting there a lot on the line.
Speaker 1They're sitting off the market, they're pending, they're dealing with all this stuff expecting that their agent is going to provide them with the service that will get them to the end, and it's just frustrating. I don't know. It's just don't slack on an agent or a lender, just don't. It's cool to see that you could save this on X lender or X agent. I could save this much. What do you guys really do? It's like I wish I could show people the times that clients have lost out on deals that they wanted because of the agent. Super frustrating. But anyways, I've given your stuff.
Speaker 1On a random note, speaking of good lenders, is I've given people. You offer some things for our listings that offer that 1% credit to people that are going to use you. So just to get my mind off that, can you kind of go into that? Basically, if you're listening, any of the listings that Christine and I have and probably other agents that Cody works with I'm the ones we have he's offering a 1% discount if you go through him to purchase the home. So can you go into that? Because I think that's important, that with this 1%, it's a big deal, especially with these rates.
Speaker 2So yeah, it is. So what we did is we kind of brainstorming on some different ideas, on you know what are different ways that we can help out to not only give a little bit of an incentive for a buyer but also be able to help out our real estate partners and and help move the needle a little bit more for listings, because, as we've talked about before, seller concessions are at a pretty high clip right now, which is just, you know it's hard. Nobody wants to give up any money, right?
Speaker 2And so if we can kind of jump in and say, hey, we're going to take on this 1%, so maybe that can ease some of the burden from the listing side, helps us to be able to get in front of more people, helps you to get more eyes on your property. So it's something that we're doing, where if you go through us for the financing on one of your properties, then we will offer that 1% credit. So I offer essentially half a percent from me and then my company offers half a percent as well. So you combine those two and we've got a 1% credit. So it has to be for those properties just because, from a compliance standpoint, we have to have a reason for why we're offering a discounted service. It can't just be just because, like, oh, I wanted to give it to this person and this person didn't get it, so we have to keep it specific.
Speaker 2But it's a great way for us to be able to just kind of help bring more eyes to the property, help, you know, structure things a little bit different for a buyer to where now they can. Now they can have that built in. We can use that to buy the rate down.
Speaker 2We can use it to just offset closing costs, whatever that looks like, and so it'll go up to it's 1% of the loan amount, so up to a $10,000 max. So like, if you're looking at a jumbo loan type property and your loan amounts over a million dollars, then our cap is is 10,000, but you can use that, like I said, rate buy down or closing costs. Yeah, that's cool.
Speaker 1Yeah, I've given it to a couple of buyers just recently, and so maybe I'll be getting calls here soon, so I appreciate that. Just a good opportunity for people to kind of get their rates down or or help with closing costs without like kind of asking the seller necessarily.
Speaker 2Yeah, with all that stuff so yeah, sure, yeah.
Speaker 1No, I appreciate that. Well, cool man, that was good. I think I got a little worked up and now I'm kind of hitting the low now.
Speaker 2Well, I think it was, if anything. On that last one, it's a good reminder to anybody in their profession, especially in a sales position where you are dealing with hundreds of thousands of dollars, If you have some form of guidelines or book or educational stuff. I think at times we all feel like we have a good grasp on things. But, I know from the mortgage side stuff's changing all the time so it kind of it can you can get away from it pretty quickly, staying ahead of it staying on top of that stuff, which sometimes you can't control things.
Speaker 1But I think, just knowing the, the background details of everything, I mean for sure Don't have to know every single thing, but you know when you screw up and it it completely ruins a whole deal for a buyer and a seller and everybody else involved, that's that's a tough, tough pill to swallow, I know, I know, and I I'm not again, I'm not saying I'm better than anyone else, I'm just saying, like, there's great agents out there and but generally speaking, those great agents charge what they should charge them because you there and but, generally speaking, those great agents charge what they should charge them because you know, you know everyone just goes through these transactions 99% of the time thinking, oh, that was easy, why'd my agent there? But more likely not, as because your agent was there and that you went through this, that you went through that process so smoothly. And people don't see it until they hit, hit the hit, the other side of things and be like what?
Speaker 2is going on, you know, and and not having that, that's.
Speaker 1I think the helplessness on our end was hard Cause it's like sure Do anything like can't. Yeah, it's out of my hands, it's on their side. So yeah, super frustrating, but anyways, quick, quick note before we wrap up on that.
Speaker 2I have a question. Okay, so I run into this often and I'm curious how you go about it or thoughts on it. So we all want to have it be a very smooth, easy. We want them to walk away from the process of buying a house and going, wow, that was easy, like that was way easier than I thought it was going to be. Do you so say? You have a situation where it's not easy, right, but you're just trying to. You're like taking the body shots from everywhere and you're kind of absorbing it all.
Speaker 2Do you pass that information on to the clients and say not to brag or anything?
Speaker 1but to just let them know like, hey, I'm moving and grooving over here.
Balancing Client Communication
Speaker 2I'm shielding you from all this stuff, so you don't need to do anything with it. But just know like in the background here I'm like we're we're working like crazy Cause I run into that and I struggle with how how to portray. I don't want to make them like yeah yeah, Like I don't want to make it sound like it's oh yeah, no, it's a piece of cake.
Speaker 1All I do is click a few buttons and we're good to go but I want them to feel that way.
Speaker 2But I also don't want to like make them panic every time I say, hey, why am? I like jumping through a million hoops here for you.
Speaker 1I don't want you to stress about it, but I am, I know, and that's a great, and I don't know if there's a right answer. I think people would disagree with me, but I did. I actually talked to Christina about this when she first started is is there's a? There's a fine balance and I don't know where that balance is of letting your clients know the work you're doing without stressing them out and making them do the work with you you know, right, yeah.
Speaker 1And also not sounding like you're like so arrogant that you know or or putting any undue stress on them. So it's a great question. I found kind of a good balance now of just like I think more information helps them. I think communicating good, bad and ugly helps, and even if it is good on a regular basis I just update them, cause I think the more I think it's subliminal, but the more you talk to clients, the more they think you're doing like and it just is an open communication. So when there's issues, I just tell them hey, this issue came up, I'm taking care of it, no big deal, I just wanted you to know about it.
Speaker 2You know, like it just I think just reminding them, but it's.
Speaker 1It's a hard balance cause I'm not doing it to show them. It's a hard balance because I'm not doing it to show them. Look at how much I'm doing for you, right? But you do want to let them know that there's things going on.
Speaker 2I'm not just sitting at my home watching a movie until this deal closes.
Speaker 1I'm watching a marathon of a TV series till the end of the month when your deal closes. So there is a lot that goes on and I used to not think that. I used to think the same thing. It's like, oh, it can't be that hard, but there's calls all the way up into nine, 10 o'clock at night or six in the morning or whatever, being like, hey, we need this, or hey, this has to happen, or hey, this kind of happened. My client just said this. You know there's a lot of just putting out little fires and I don't like letting my clients know, but you also do yourself a disservice by not letting them know. You know, yeah, I completely agree.
Speaker 1Regularly updating them is what I do and it's worked so far. And I'm not saying I would say it's worked so far as if it's some tactic. It's just I think that people do need to see it Because I think that good agents tend to do themselves a disservice, and good lenders do themselves a disservice by, just kind of by poo-pooing away everything or saying I'll just take care of it, I'll just they won't even know what happened.
Speaker 1I'll just do it. It's not even a big deal, but I think just informing them and saying I found that informing them kind of shows your value, just like, hey, I'm taking care of it, just want you to know, this is what's happening, like you know, or something like that. I don't know, every deal is unique, as you know, but yeah, no, that's good.
Speaker 2That's good Cause I'm I've always probably like you. You know you want to. You don't want to overwhelm them. It's an overwhelming experience as it is. It's stressful, it's. There's a lot of paperwork, there's everything, so it's like trying to keep as much off of them as possible because you want it to be a stress free experience. Yeah, yeah, but then at the end you don't want it to feel like they're like you didn't do anything.
Speaker 1I can do this next time myself.
Speaker 2Right, yeah, what do I need to do to do this, because that seemed really easy. You just I did all the work, I got you all the paperwork, for sure. And then what did you do?
Speaker 1Yeah, no, I try to update them regularly, even just kind of updates my listings get weekly updates Just kind of like that balance for you of, like you know, showing them that you're doing it and not bragging about it, right, like they're like okay, calm down yeah I know, I know you're good, you don't need to exactly every single thing you're doing but yeah, that's a good question.
Speaker 1It's hard. It's hard to be kind of humble and do the work in the background because I I want the experience to be seamless. I don't want them to be worried about it. But sometimes you got to make them worry a little bit. I guess I don't know, that's right.
Speaker 2But yeah, your loans denied, but don't worry, I'm getting it back.
Speaker 1Here's the denial letter, but let me take care of this, don't stress. Let me talk to some people Don't stress about it.
Speaker 2Yeah.
Speaker 1Well, cool man, it was good talking to you and until next week we'll do it again.
Speaker 2I love it. Have a good one.
Speaker 1See you, man See you.
