The Savvy Synopsis

You might read a headline or article and wonder, is that right? What would my realtor say about that? Angie gives her professional opinion on three recent headlines in real estate news. 

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Note: This is an automated transcription. Please forgive the robots as they tend to make some (a lot of) mistakes...

Speaker 1: It's time for the savvy realtor podcast I'm Walter Storholt alongside Angie Cole, the owner and broker in charge of acole realty serving you throughout the triangle, teaching you about the ends announced When it comes to buying or selling a home, you can find the team online by going to a coal realty dot com. That's a c o l e realty dot com or by calling 9195783128. That's 9195783128, and now it's time for one of the top rail tours in the Triangle. Angie Cole and the savvy real Tour podcast. I got a couple of headlines I wanted to run by you and you to get your opinions and take away on these things 1st 1 has to do with Millennials, and it says that more millennials are paying mortgages themselves. So it's a recent survey that found fewer millennials are asking their parents for help in order to pay for a mortgage to buy their first home, and that the bulk of the increase has been reflected in millennial women who are more financially independent than previous generations. I'm curious. Are using this trend to yourself and what you think of that?

Speaker 2: Women power. I love it. I love it. Yeah, you know, thinking of the buyers that were representing or you know, have recently represented in the past. I can't think of one who had the assistance of their parents. I would say the only assistance they received was maybe if, you know, they need to move forward quickly on a home. And so the parents help be a co signer initially, and then as soon as they sell their other home, then they're paying their parents off, forgetting the month alone. So you know where Maybe I've seen some situations that they were tied into the release for a couple more months, but they all said they don't want to lose out on potential homes. Maybe the parents help them up front. But then again, it's just, you know, just in the beginning, it's not long term. So, yeah, I am seeing that most of the millennials that we are working with, they are financially stable. And they've, you know, done a great job with saving. You know, Money's for down payment. You know, their credit scores are up, but yeah, they just spent smart when it comes to money and they're able to afford homes on the run. So, you know, I I don't really know if Aiken compare Women versus Men is for is I'm seeing more women in the state. Were they able to financially afford on their own versus men? I just feel in general, the client that we've been representing our you know, I guess being savvy when it comes thio watching their you know, their financials.

Speaker 1: I guess it's a natural evolution to because we're old now, little millennials anymore. We Oh, let's have kids And so we've got some age on on a big portion of the millennial. So just now

Speaker 2: and that's so true like, yeah, we're millennials. But you know, I'm 35. It's like I'm not young anymore. For some reason, you think of the word millennial and you think of young ends. But you know what's the stage not below millennials

Speaker 1: and I'm the generations

Speaker 2: generate. I think it's Generation Z. I think you're right. So now them they're probably getting assistance a lot, right from from the family members from the parents but, you know, the millennials, the Abwehr. We're getting up there in age, and I know, you know, personally, you know, I'm not buying my first home anymore. You know, Ivory sold my first home several years ago, so because I did that in my twenties personally. So, yeah, I'm in a state where I'm not relying on my parents in any way to ah, assist. Right. And I think a lot of us are at that age that we don't need the assistance of our family.

Speaker 1: Yep. Yep, We got millennials. Seems to be the agreed upon date ending in 1995 in the 1996 began Generations E or I jen or Centennial's is then the next. You

Speaker 2: can't keep up with all these

Speaker 1: too many now. Yeah. Yeah.

Speaker 2: What is getting old? That it means we're getting old.

Speaker 1: That's right. That's right. Yeah. When the more and more of these generational names we add, you know, you're just getting older at that point. Interesting to see how they've how they've formed. Like, here, here, the different generations. Just a non real estate connection here. But you had the traditionalists and the silent generation and baby boomers. Then all sudden, we got weird with Generation X and then millennials in Gen Y and then Gen Z. Now, now we're like an iPhone. I jen, right? It's the lower case I, with a capital T deny Jen like, and I guess that's probably what they're going for. There is. It's the digital generation growing up on our thing, that kind of thing. You're smart. I guess that's what they're going for. It seems that way and then send Centennial's. That's an interesting one, too. So maybe that's because they expect all those kids to live to be 100. Maybe interesting. All right. Another headline here, Angie. There's a bill that proposes cutting F H A insurance fees for first time homebuyers. So this passed in the House last month, and it would cut the upfront mortgage insurance fees on F H A loans for first time homebuyers if they take part. This is the if, but it's not about if if they take part in housing counseling and so it would be a 25 basis point discount on your F H A loan insurance, and it's now gone to the Senate for a vote. Seems like a net positive for buyers. I wish this was in place when, Ah, when I bought my first home on an F H A line.

Speaker 2: Yeah, definitely 100% positive, right? I mean, that's, you know, could be a couple $100 that the, you know, buyer would be saving, going F h a row. So that's he'd normally, you know, you you need to invest, you know, 20% into the home sale.

Speaker 1: I could've bought furniture to put in that house.

Speaker 2: I know you wouldn't be sleeping just on a cot in an empty home. On the flip side, though, this concerns me a little bit, you know? Are we making it too easy for just anyone to purchase, right? Making no miss to affordable. And then we will get into the same situation that we were in, you know, whenever we had a crash, right? So, you know, where were we messing a little bit too much with lending, just like in the past. You know, anyone could get a loan. And then all of sudden, we had this major crash all these foreclosures, you know, just a horrible Marquette. And so it does concern me a little bit a ce faras Are we making it too easy again for the general public to purchase a home and almost to affordable for everyone. And, you know, counseling is great, but you know, if there's someone who it really shouldn't be purchasing a home, you know, because they can't truly afford it, that that concerns me a bit. Because what's to say that counsel is going to help them and they won't lapse on their payments, and then we have foreclosures again. So I'm kind of iffy about this.

Speaker 1: Yeah, it seems to be I mean, it's not like they're making

Speaker 2: detection. It's not like I'm

Speaker 1: making free. So

Speaker 2: sure,

Speaker 1: you know, they're trying to, you know, put off their risk a little bit. So if they say all right, well, if you take this class will denote you is less risky. Therefore, you're deserving of a slightly less insurance payments. So

Speaker 2: it would be the lender that's taken, you know, the major risk here because they typically, you know, collect that mortgage insurance for their extra protection. So who knows it be interesting to see if this passes.

Speaker 1: Yeah. I mean, it seems like a relatively minimal decrease. So it's not like they're getting rid of it or making it free or anything like that. So it's just a like a small benefit. So maybe it's not the kind of thing where now you're just having the floodgates open with, you know, technically unqualified home buyers coming.

Speaker 2: Sure, so are

Speaker 1: so. I don't I mean, as still Ah, you know, I I wish this was in place when I was going through the process. I take 25 basis Point me to another bill, not another bill, but another headline. I should say, How long before you drop your sales price? So this was a survey that was done by I think it's Ah like a Bitcoin company called Shelter Zoom. Or it's some sort of not not Bitcoin but a digital digital company called Shelter Zoom. Whatever they do Blockchain, I think it's some sort of real estate Blockchain company. In any event, they found that most home sellers will wait at least three months before considering a price reduction on a home that's not selling. So 33% said they would cut the price after that length of time. Now they're actually worm or that would wait longer. Ah, 12% said they would never lower. OK, so that's our That's our never I'm never gonna lower. 26% said five months or more, so 26% said five months or more, and another 33% said three months was the right amount of time. So you've got over half their saying three or more months,

Speaker 2: I'm in off, and maybe I'm a same ing about it. This is really market specific, and this is an overall general basis on, you know, us in general. But in our market, you know, if a home is not sold in three months, there's something wrong with it. And typically, you know, all right, you have condition, you have location, you have price. And you have a course marketing of the agent. But, you know, typically it always bulls down to price point. And so, um, I do not agree with actually any of these status force percentages in our market. You know, I in it. It really first of all is determined based on location and price, because, ah, home, that's, you know, maybe a townhome under 200,000 in Raleigh. If we don't have an offer on that home within 15 days, I would suggest a price correction. Okay, now, maybe, ah, home in Raleigh. That's an $800,000 home. You know, let's maybe do a price tweak after 30 days, you know, But I would never wait for three months. That's just at that point, you look like Unrealistic Cellar and you'll start chasing the market, And I always tell my cellars that we want to price your home correctly from the beginning. So if we're seeing that, we're not getting the showings we should be receiving. And I could tell you our marketing is just amazing and top notch. And once our stage comes through your home, she gives you a wonderful guidance. And so I know you're home is showing great that clearly it's a price factor. Sparks wire him's not selling. So instead of us being kind of one step behind and chasing the market, we need to always be ahead of the market to get an offer sooner and to get you highest price point. So three months is too long to wait for your first price

Speaker 1: correction. Yeah, the lowest barometer they gave was 20 was Ah, 11 month, the one limit mark and there were 20% Who said that by the one month mark, they would

Speaker 2: definitely by one month. It's Yep. What price point you're at at one month. I would highly suggest that we do some type of price

Speaker 1: correction. Very interesting. So you're way, way different opinion than what this survey is finding.

Speaker 2: Yeah. Yeah, And once again, you know, every market. I mean, even from the triangle versus going to Faith Hill, our markets are completely different. So, you know, it's really markets specific as faras. What point should you consider a price correction for him is not under contract.

Speaker 1: One more thought. Here's the interesting consideration This survey was of sellers not of agents, so it may have been with people who are planning to sell their home.

Speaker 2: That's true. That's true.

Speaker 1: And so it's before they've gotten good advice from an agent. So it's actually kind of probably a representation of expectations and reality or before you get expert advice versus after you get expert advice, because I would imagine that there are a lot of agents who are more in your ballpark in that line of thinking and not so much weight. 12 months, you know?

Speaker 2: Yeah. And in just, you know, yeah, understanding the market, being educated on you know, what we're seeing in our, you know, specific market. So without having that education and knowing, you know Okay, these are the average days on the market. This is typically how long it should take me to sell my home if my home's not sold. Clearly there's an issue there, right? So not having that guidance and education definitely could maybe appeal to these higher percentages of waiting longer. You know, waiting three months before price correction.

Speaker 1: And Angie, you give good, compelling reasons for why you would not want to wait. So I think that's ah, that's the other thing to take away here because you start thinking about more than just a price. Question becomes what else is wrong? Question when I'm sitting, get stale and stay on. Well, oh, no one's bought this. So what's wrong with it? You know, now that it's it's more expensive than I want to pay that that's an easier hurdled over. Come in the next. Sure good questions. For sure you've been listening to the savvy real tour podcast on Walter Store Holt alongside Angie Cole. She's the owner and broker in charge of a co realty here in the triangle. And if you have questions for Angie, we invite you to go online to a coal realty dot com. Listen to pass podcast episodes on the website, read the block and all the great information, including the option to find a home right there on the Web site. That's a coal realty dot com, and you can also call Angie with your questions. 919578 31 28