Are appraisers going away and what are the realities of trying to buy a home?
-This is a transcript from Go Gaddis Radio to listen to the episode click here-> https://on.soundcloud.com/Ex8hG
Welcome back to Go Gaddis Real Estate Radio right here on AM nine 20. The Answer. I'm Cleve Gaddis and I'm joined in the studio by the one and the only Tammy Slay. I think I forgot to tell everybody who you were in the last segment. Well, you told 'em in the sacrament before, but you can always tell 'em who I am.
I know. I should remind everybody that Tammy Slay is in the house. Tammy is my sweetheart. She lives in Dallas, Texas. She lives in Frisco, Texas, north of Dallas. So it'll be like living in North Atlanta. Uh, similar cities by the way. Different environment, you know. Um, very flat in Dallas. Very hilly in Georgia.
Yeah. Lots of trees, less trees there. But Dallas is just a beautiful area. Mm-hmm. And it's a wonderful city. And I think the people are very similar from one city to the other. Well, they say they're gonna build a billion dollar hockey stadium in north of Atlanta, so that's all we got going on right now.
Well, we got a few billion dollar miles coming in. I bet you do. I bet you do. In this segment Are appraisers going away? And what are the realities of trying to buy a home in today's market? But before we get into that, Tammy, you and I were talking about adjustable rate mortgages. Mm-hmm. In the first segment.
And you and I did some research while we were off air and we realized that you and I might have been talking about two different types of mortgages. And I didn't even realize, I didn't realize that what you were quoting even existed. And I've been in real estate for 22 years. Isn't that amazing? That's amazing.
We just keep learning stuff all the time. Time we do. So I was quoting, I think a five one. Mm-hmm. Which means rate fix for five years and then it can adjust a certain amount per year, but only each year after that with a maximum number. You went back and looked and you were talking about something called a 5 6 6, which when you said to me five, six, I'm like, wait a minute, somebody, somebody was drunk when they wrote that second letter.
That doesn't make any. And then I looked it up and it, when it, when that first number has a slash and follows by the next, number one means it invests it, it adjusts every year. Six means it adjusts every. Six months. Six months. And they have three months Adjustables, they have six month adjustables, they have nine month adjustables.
So you were quoting the rate, which was one point lower mm-hmm. Than the 30 year fix. And you were quoting the rate for a 5, 5, 6, 6 mortgage. And I was quoting the rate for a five one mortgage. If this segment has you thoroughly confus. And you want somebody to help you figure out the best mortgage for you.
We're not mortgage professionals, but both of us would be happy to have a conversation with somebody to analyze the mortgage situation. You could reach me and if you wanted to reach Tammy, yeah, you can call the same number, seven seven zero four nine seven. 0, 0, 0 0. My name is Cleave Gaddis. The other voice you hear in the studio with me today is Tammy Slay and you're listening to Go Gaddis Real Estate Radio.
Our goal here is to help listeners go from real estate novices to experts. And sometimes by the way, we have to take Cleave from a real estate novice to an expert cuz he is gotta learn something new too. We want home selling and buying to be done with total confidence and without all the. That's typical with life's biggest investments.
We don't want anybody, and I know your hip realty group. Mm-hmm. By the way, if anybody wants to, if anybody's got a referral they wanna send to Dallas, Texas, hey, go to hip realty group.com and that is Tammy's. Beautiful little boutique brokerage, which has the most amazing culture I have ever seen. Thank you.
Um, I'd like for you to come to Atlanta and be our culture goddess, if you would. Would you do that for us? Oh, I would love to. You help. I'd have so much fun with Modern Traditions. You would help so much. I'm just, I'm just older and boring and you're just younger and lots and lots of fun. So don't forget, we want to connect with you and it's easy.
Go to go ga us radio dot. G O G A D D I S radio.com. You can ask questions, you can make comments, you can push back or challenge anything we say. You can share your ideas, you can request your neighborhood, be featured in our neighborhood spotlight and you can subscribe to our podcast. Tammy, you asked me a question, I believe when we were riding in a car somewhere over the last week, and you asked me if I had heard about property data collectors.
Yes. And I said, No, I did not know what a property data collector was, but there is a huge push mm-hmm. In the United States and it's been happening for a few years. Yeah. With, and I don't know if it's the lenders or if it's the government, I'm not sure who, but somebody's trying to get appraisers out of the real estate business, and I want to get your opinion, but that doesn't make any sense.
Yeah, no, it doesn't make sense. And from what I understand, the push is actually coming from the AMCs, the appraisal management companies. They're hiring data collectors. Wait a minute. Yeah. Hold on a minute. Yeah. So they plan to still charge lenders for the service. They just don't want to have to pay a license appraiser to do all of the research.
Well, it would be a cheaper appraisal, so in, because you're not getting an appraisal. So it would cost the consumer, the buyer, or the lender. Yep. It's gonna cost them a lesser amount. Okay. Um, than, and, and sometimes we've heard this called like a drive-by. Yep. And, but, but I would think typically those were appraisers doing drive-bys.
No, from what I'm, from what I'm. Reading. Okay. Not always have they been appraisers. So as I'm catching up on this, because there's a lot of realtors that are now being approached to make additional money by working at on the sideline as a property data collector. So the appraisal management companies, Uhhuh are saying, Hey, if you're not making enough money selling real estate, let us pay you and let you drive around and collect data.
I'm gonna just say right here in public, when I buy a property now, Would I make my decisions based specifically on an appraisal? No. Do I want another professional's opinion on the value of what I am buying? Yes. Yes. What does a typical appraisal cost in Dallas? Um, 600 to seven 50. Yeah. And here I think there might be a little bit less, five or 600 bucks, and it's.
What if the appraiser finds something in, in the data or in the, in the records or something, um, that you wished you had known before you bought the house? Absolutely. And you don't have the benefit of having that. And if I was gonna pay $500,000 for a house and an appraiser thought it was worth for in a quarter, doesn't mean I couldn't pay 500 for it if I wanted to, but it certainly would be good to know that that's what the appraiser.
And how many times, and I know how many times, cuz I know you've been in business a long time. How many times does a buyer, that 500, 600, $700 that they spent, it actually ends up saving them thousands because they learn the house they were gonna buy is $5,000 cheaper. Mm-hmm. You know? Or worth $5,000 less, I should say.
Well, and and then you go and you negotiate that. Yes. And you just had an example in Dallas. A buyer was getting an FHA loan. Mm-hmm. The home in Dallas appraised and appraised for it. Let's just use 5,000. I don't remember what it, what, what the amount was, but since you just said 5,000, it appraised for 5,000 less.
And, uh, you put your, um, Negotiators cap on you. You, you went in there with your guns a blazing and basically you got the seller to reduce the price because what happens when it has an appraisal? So this winds up being a benefit for the buyer, is on an FHA loan. I think that appraisal is the only appraisal on that property for six solid months or 180 days or something like that.
It's a while. That's a lot. Yeah. It's amazing, isn't it? It is like once, once. Once you got that st like it's kind of like carrying a pimple for several months. Ooh. Carrying a pimple. Yeah, cuz that's what you're working with. You don't want to carry no pimples, so be careful when you get your appraisals. And for whatever this is worth.
Tammy and I both believe appraisals should be a, an important part of the real estate transaction. If you wanna sell your home anytime in the next six. We believe Metro Atlanta, that we can sell your home for $28,000 more than your neighbor. If you don't believe me or if you think it's hype, then I say, try me.
How do you try me? You go to go gadi radio.com, click on sell for $28,000 more. Put in a little bit of information. We'll reach out, we'll connect with you. We'll give you all the different options for selling your home, including the one that is designed to help you sell it for $28,000 more than your neighbor.
It even comes with up to 15,000. To refresh your property at no cost to you as the seller. And if you think about that for just a second, if you think you can't get an extra $30,000, if you had eight or nine to spend on the home, then you probably are wrong because it can happen and it does happen over and over and over and over.
7 7 0 4 9 7 0 0 0 0 is where you go or go GA us radio dot. It is frustrating for buyers in the market today, and it was frustrating for buyers for the last two and a half years in the market. You and I are getting a up close. Mm-hmm. And personal exposure to a young person trying to buy a home. Yes. And that's my daughter, Stacy.
Yeah. Is trying to buy a home and she, when she finds something she really loves, she doesn't feel like she can afford it. Mm-hmm. When she finds something that fits her budget, in some cases she doesn't feel. Mm-hmm. Living there. Mm-hmm. And so she's only been looking for a few days, but it is a highly emotional experience.
Mm-hmm. Now she is thinking maybe I should rent for a little while and buy a little bit later. Uh, she doesn't wanna have pressure to have a roommate and things like that, and who knows what she's gonna decide. She's a smart young lady and she'll make the decision that is best for her. But my question for you is, if you were asked to give.
To a buyer who is in Stacy's situation, what advice would you give her in terms of being able to find the home that might work for her? Um, the first advice I would give is lean into this experience. Embrace it. Sometimes buyers, especially younger buyers, they endure the process. Embrace this process. So don't be frustrated by it.
I mean, embrace it. It's a learning experience. Embrace it like, oh my gosh, your daughter. I mean, how many years is she, how much younger she is into going into home ownership than the typical average American like? That woman, I high five her all the time of just go. You lean in and this experience is gonna result in, you know, several hundred thousand dollars being spent on a home.
So take your time, you know, take lean in. I didn't even think about that, but I just went online and it says the average age of a home buyer in 2020. 36 years old. And that is way older than 22. Yes. So your advice is celebrate the fact that you are able to go through the process at all. We need to. We need to take a quick break.
When we come back in our neighborhood spotlight, we are featuring Amber Field in Peachtree Corners. We're gonna talk about creating balance in the relationship between a seller and his or her agent. And we're gonna talk a little bit more about botanical gardens. Mm-hmm. And abo. Stick with us. We'll be back.
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