How To Successfully Navigate the Current Real Estate Market

0:00 Things you could be doing right now to optimize your scores. Right. So that next year, when it comes time to buy, you're gonna save thousands upon thousands. I mean, even if you get your score up from let's say someone has a a seven nineteen. If you just get to seven twenty, you save money. And here's the baffling one. Not only do you save money, we all know that you save money on interest rate. Right? That's simple. But most people don't realize that you also save money on your mortgage insurance factor. Howdy, friends, and welcome to the Allen Fairview Insider, the podcast where we dive deep into the heart of our community. I'm your host, Super Dave Quinn, with Day One Experts, and I'm here to help bring you the latest and greatest from Allen and Fairview. From insightful interviews with our local leaders to exclusive updates on community events and developments, the Allen Fairview insider is your go to source for staying connected and informed.

0:53 So whether you're at home or at work or on the move, let's get started and make the most of our time together. Hi there. My name is Joe Boggs, and I'm with Highlands Residential Mortgage. Today, I have with me Tanya Walker with the Walker Group Real Estate. So how are you doing today, Tanya? I'm great. Thank you, Joe. How are you? Thanks for having me. Good. I am very blessed that I get to talk to Tanya on a regular basis because we have a ton of mutual clients. And so not only are we good friends, it's nice to be able to work with your friend on a day in, day out basis. And so I couldn't tell you how many transactions that together we have, solved issues for these folks and put them into a house, but I can say, and I'm sure you can relate that it's, it never gets old. Does it? No. No. It's good to to be able to be friends and to trust so that I can call you whatever hour it is. You bet.

1:44 You bet. It takes a team, doesn't it? It does. And so we're we're also very blessed with, the expansion of our team. You know? It's not just her and I. It's also we've got insurance folks that get involved, and that's been really, really important as of the last year when insurance are going crazy. Right? I mean, everything from having to reel in maybe a credit consultant. You know? If someone give us enough time, we can go ahead and get them with that, get them working on it so that when they're ready, six months, eight months down the road, they're in in better shape. Our escrow people, I mean, we we count on them. And then, of course, our own team that helps us with the day to day work, they really do the heavy list lifting and make us look good. So But we we need that. Yep. Yep. But it does take a team, and most people don't don't know that. And, you know, through the years, I can tell you my operations manager has been with me for twenty three years. I wouldn't wanna do this without her. And and so it's, those folks that do the heavy lifting don't get all the rewards. You and I get to show up to closing and go, oh, look what y'all did. But there's a lot of work that goes on in between. And I think that's that's sometimes, you know, a lot of people I know for myself Mhmm. Before I got into the industry, I didn't I didn't know what took place and what all the procedures that have that everybody does have. Yeah.

2:53 If the impact on so I think it's important to also relay that it it isn't just open up a door, give you a file, run the credit, and then it's done. It's not. There's a lot that happens within those typically on a on a typical closing thirty day. There's a lot that takes place, for each individual file, and loan. Yep. With time comes wisdom, doesn't it? Mhmm. It takes it takes some failures. Thank goodness most of those should be behind us now. With kinda like a wedding, you know, you look at the guests, don't see all the the craziness that's going on behind. Yep. And and then and everything is good for for the the bride and groom. That's kinda how it is for our clients. We want it to always be good for them that they don't see all the chaotic stuff that goes on in the back end, but we're running around like little chickens for our, heads.

3:48 We've just learned to disguise a little bit better. And, you know, it's funny. It never gets old seeing, you know, maybe folks that don't have that much experience. They've only been doing this for four or five years or whatever. It's so funny to see them because we well, we have really good competitor friends as well. You know? It's a it's a it's a kind of a smaller area that we operate in even though there's a lot of us. There's enough business for everybody, so we have a lot of competitor friends. Mhmm. But it's still I still so enjoy it with these folks that don't have a hundred transactions or whatever under their belt to watch them kind of flail. It I just smile. Before I help them out, I just smile first, pet them. Well, a lot of times people go to other people that that don't have it together where I've been very fortunate to know you for quite a number of years, and it and it was the same thing until we got together. Mhmm. You know, you don't you don't other teams are not Yeah. As strong. Well ordered. Right. And with yours, it's so it is.

4:40 It makes a big difference to have the longevity, with with your teammates. We dance together pretty well, don't we? Mhmm. We do. You know? And it's funny because we also really in a lot of of different teammates in this. So, generally, when I'm doing the financing side of things, I like to ask someone. People call and, you know, some people wanna put down no money. Some people wanna put down, hundreds of thousands of dollars. And I always love to to ask them, hey. Have you talked to your financial planner about this? Mhmm. Number one, if they don't know me very well, it takes it away from, you know, just my opinion. I want to bring in someone who you already have a relationship with that you know and trust, and let's get their opinion. They can double check my work. It seems to take some of the, anxiety out of it. Mhmm.

5:23 But, you know, people call quite a bit that say, hey. I wanna put $300,000 down. I get their financial planner involved, and they're like, no. We don't we don't wanna do that right now. You're you're at this tax bracket, and we need to show that you're you you gotta have some expenses. Mhmm. You know? And then we'll bring in a CPA from a tax side, a financial planner from their investment side, and then you've got an entire team working for every individual customer. And this isn't just for our folks that are buying million dollar houses. The in fact, the most common answer I get when I ask if your financial, planner or CPA has been involved, They say, I don't have one. Mhmm. That's that's great, but let's get to one. Time. Yeah. Let's you know? So you you and I give our resources out freely to people. Here's who I've been using for ten years.

6:05 Mhmm. And, yes, you may not make a gob of money right now. But I can tell you, like, the ones that we work with, their minimum investment is, like, $500. Mhmm. Gotta get started somehow, whether it's just starting straight out of college some of them. Right. And and it's so beneficial for them to to set that platform. Yep. But, yeah, I think it's very important for them and and for us to be a a good resource and have You bet. The quality people that we have to to provide to them. Yeah. And we're so entrenched in the community that we are held accountable by our actions. And so we vetted the people we surround ourselves with the team. So it's great that people can call you or I, and we get calls for, hey. Do you know a good painter? Oh, oh. You know? I mean and not only have you been in the real estate business for a long time, but you're the chair of the Allen Fairview Chamber. Mhmm. And so the the strength there comes that a painter cannot run the risk to treat one of our clients poorly Mhmm. Because not only will they lose the client's business, but now they're gonna lose your business and make a bad name for themselves in the chamber. You can't do that and survive. And I've been very fortunate. I I can say I have not had a bad experience, with our folks, that we've referred out. Mhmm.

7:18 And many that are on on, on my team that I have been with for anywhere between six to thirteen years. Yeah. So Yep. I mean, it's consistent. You're making good decisions and surrounding yourself with good people. Yeah. And that's that's all that really matters in the end, and that's how you build a good team. And so one of the things we cover with the financial planner, and this one was kinda interesting recently, was I was talking to a client, and I said, hey. You know, no one can tell you exactly what the appreciation on a home is, but we can probably all say in the last ten, fifteen, twenty, thirty years. I mean, I remember in 02/2021, it was 21% in Collin County. Now that's an anomaly. That I was gonna say that's not Yeah. Typical. That may not ever happen again. That was a onetime deal just like when rates were you know, had a two in front of them or a three in front of them, that will likely never happen again. But, you know, if you look at rates over an average over the most recent forty years, six to 7% is that's normal, and that's where we are now. And I think people are getting comfortable with that. But when I was talking with them, their I had their financial planner on the phone, and I he was saying, well, okay.

8:21 Well, if you if I buy a $500,000 house and it goes up 5%, that's $25,000. So what percent of return is that compared to my financial planner? I go, wait. Wait. Wait. Wait. Wait. I I said, you're using the wrong math. Did, an investment is defined as taking some sum of financial investment in anticipation of a return. Did you put $500,000 into that investment? And he said, no. I said, you put you brought to closing $25,000. You put 5% down. So you need to do the math based off of you put down $25,000, and twelve months later, your house was worth $25,000 more than you paid for it. That is a 100% rate of return. Mhmm. And so I asked the financial planner. I said, do you disagree that buying a home should be your number one investment? He's like, I don't disagree at all, Joe. He said, in fact, you already have to have a place to live. And if you look at what your mortgage payment's gonna be compared to what rent would be, that's a wash. So if you just took 25,000, put it into the market, and now you've got something that's worth $25,000 more, $25,000 more. Yes. You just made a 100% rate of return, and there's nothing I have that I can match that with. Mhmm. And so that was a a light bulb that went off for the client. They were like, wow. I go, yeah. Good luck good luck finding that even though I'm sure your financial planner is awesome. Mhmm.

9:42 They're not gonna find a 100% rate of return. And then that return just keeps going because you're not putting every 25,000 into it. Next year. Yeah. You just keep it keeps growing. So, yeah, it it I don't think anybody can disagree, especially in Collin County, that real estate is the number one investment there is. Yeah. You know? So I mean, we've seen we've seen such a great turnover with with respect with what people purchase the homes at Mhmm. Even within one year. Yeah. I've I've clients that that I work a lot with with, corporate relocations. Mhmm. And so they they're in for one to two years on many bases. And then we turned around and sold them, and and they've come out very well.

10:22 You bet. I I love, like, when we do move up buyers. So when people are buying their first house, they're looking at, you know, a house that's really kinda tough for them to qualify for. And then we have those conversations like, hey. Yeah. You may qualify for $6,000 a month, but do you want that payment? Mhmm. And then they end up you know, when we're talking with them, they'll end up saying, you know what? Maybe I should buy a $400,000 house now. Then three or four years from now, I can either sell it, have the equity put down, and buy a bigger house, or even better, convert it to an investment property. Now I've got that income and someone else paying it and become a landlord. And, you know, having one property like that is really simple. Now you start multiplying. I'm sure that you would wanna get, like, a property manager involved to Right. To help them. But one is not bad at all. Yeah. And it's not for everyone, but the key piece that you're saying right there is that you took the time to talk to them about, do you wanna go deep, you know, spending it all on one home maxing out Yeah. Or do we go smart and safe? And I think that's a a one of the big key pieces that I enjoy working with you is that neither one of us wanna put a client into a situation that is, makes it a hardship for them. Mhmm. But also to help them to think outside of the box of maybe what they're not thinking Mhmm.

11:39 Futuristically wise. But it's also it's always about making sure the client has the best Yeah. Have the best interest of the client. I had this exact same conversation with my son last night. He and his wife, so they're 24. They got married in November. And, they came over, and they wanna have a talk with me, and it's now they're ready for the next step. Right? And so they're I think the least they set up in June. I actually encourage them to wait until December just because they just moved back here from Lubbock and and wanna make sure they pick the right neighborhood. But we had this conversation, and he had his eyes on a $500,000 house. Mhmm. And I said, son, really? I mean, I'm not sure that you wanna do that in the same thing. Mhmm. You know, maybe this is a a stepping stone house. Maybe you go up further north where you can find a $3.50, and maybe three to five years from now, that becomes an investment property. Mhmm. And he says, is that how you got started? I said, that's exactly how it got started. And so it's we don't just have these conversations with our clients. We have them with our family too. Right. So yeah. And then I always get asked, you know, hit his was it was funny. He was showing me houses. Here's the house we already looked at. And I said, son, if I taught you nothing, always get with your lender in advance. Right? Exactly. I mean, the favorite thing that I ever get is when someone says, hey. We wanna buy a house next year. I love that. Yeah. Because now what we do is we pull a soft pull credit report, doesn't cost you anything, doesn't hurt you in any way, shape, or form, and then I connect it to those cool tools that will analyze and show you things you could be doing right now to optimize your

13:12 scores. Right. So that next year, when it comes time to buy, you're gonna save thousands upon thousands. I mean, even if you get your score up from let's say someone has a a seven nineteen. If you just get to seven twenty, you save money. And here's the baffling one. Not only do you save money, we all know that you save money on interest rate. Right? That's simple. But most people don't realize that you also save money on your mortgage insurance factor. And so you couple those things together and then add insurance discounts for that for having higher scores. And it is a massive amount of money. In fact, I wish I could show this, but I have a, class that I teach. And here's the comparison. I'll pull this chart up so I can read directly from it. So here's a comparison where we compared someone with a six twenty score to the seven forty. Seven 60 is as good as it gets. You're just kinda bragging after that. So you get discounts all the way up to a seven sixty.

14:06 But in this scenario, a 5% down payment buying a $500,000 house, the rate, of course, is higher for a six twenty. The mortgage insurance rate is significantly higher. It's the biggest difference. And then homeowners insurance, I had one of our homeowners providers give me ballparks on this. Mhmm. The amazing thing is that with a same sales price, $500,000 putting 5% down, Look at the payment difference between someone with a 620740. It's $1,244 a month just because their score was 740 compared to 620. Howdy, friends. Super Dave Quinn here. Thinking about expanding or relocating your business in Collin County? Come discover Fairview, Texas, a community with a prime location, great tax incentives, and an unbeatable quality of life. But don't just take my word for it. Tune in to the Getting Neighborly podcast to meet your future neighbors and hear what they believe Fairview is the perfect place to grow your business and to build your life. Visit us today at FairviewTexasedc.com.

15:12 Thanks. Make it a great day. And I said, okay. Let's look at it a different way. Mhmm. Let's take another 5% buyer, and they tell me, hey. I've got 5% to put down, and I want a payment no more than $4,500 a month. Same thing. For a six twenty score borrower, that turns out to be a sales price of, where is this at? Taxes insurance. So they would have the same monthly payment, someone with a six twenty score, on a $400,000 house, then someone with a seven forty score would have on a $526,000 house. That's a hundred and $26,000 higher sales price, same down payment, same monthly payment. I mean, that's that's crazy, isn't it? So love when people get with us early and then We do that a lot. Yes. We do that a lot with with, lot of new home buyers or teachers.

16:05 I think that's some of the best ways that we can help them Of course. To get into the platform that they wanna be in or just to be comfortable. Yeah. And to save them a ton of money. I mean, we tell people all the time, hey. This is likely your biggest investment that you'll make in your lifetime, you know, other than the next bigger house that you're gonna buy. And so instead of just calling on a Friday night and saying, hey. We found a house. We love it. Can we get it? If we do a little bit of investment in advance, it doesn't cost you anything. You have us to your resource. And if they will do it in advance, I mean, look at the difference in payment. $1,244 a month lower payment because we got someone's score from a 620 to a 74. Right. I can't do that on a Friday night. Right. Well, we can't do anything about the rates.

16:48 Mhmm. Rates are what they are. Yeah. We we just have to pivot and and work with that. We we do have a little more control over over that that score. Yeah. And so we can kinda help offset or the individual can help help offset Mhmm. That that difference in expense. And this would be the same difference no matter what the rates were. I just used a rate from 6.5 to eight or whatever. But still, even if it's nine to five or whatever the number is, it's $1,244 a month lower. Yeah. So and I mean huge amount. And even if you start looking at people who have, like, a 700, and then if we could just get them up to $7.20 before it's time, it will save them thousands upon thousands of dollars. And so love it when they get with us early. But we also work with those that are needing the loan. Should've done Friday night.

17:35 Yeah. So but it, you know More often than not. Right. And I kinda chuckle about that because that happens a lot. Yes. And but the the longer amount of time, three months, six months, year, whatever it is, it it does help, the individual with that payment if we can help them out. You bet. And and, like, the prethought is this, especially when I have a lot of time to talk to someone. Like, I'll use me as an example. Our last home that we bought, in advance, we weren't even looking for a home. I went out and got a home equity line of credit because I had quite a bit of equity set in my house. It didn't cost me anything. And I sit there. I have this sitting there, and it's costing me nothing to get. Well, I wasn't house shopping, but, evidently, Patsy was.

18:18 And she found the one, and thank god she did because, you know, I I I love where we are. But Patsy listened to me all these years was she said, well, would you qualify for the new house without selling the existing one? And I'm, yeah. Well, what about you've got that money in the HELOC. I'm like, uh-oh. And so but thank goodness that she paid attention, and we did that because I actually used the home equity line of credit as my down payment and bought my current home without selling my existing home. I just before, I got to meet with you today, I got that exact call, and he said, I've got the equity in the house, but they won't take a contingent offer. And I've said, what? I wish I would have talked to you a year ago because I'd have told you to go ahead and get the home equity line of credit, and you'd have it set in there waiting and this problem would be solved. Right. So those are the conversations I like to have in advance.

19:07 Yep. What, so how's the market? It's good. Yeah? It's good. You know? It it that's a a question that I get asked on a very regular basis. I think the market is good, anytime, to be honest. Whether you're, buying, selling, right now is a really good time to where you have flexibility to negotiate, where everybody's not, you know, up in arms about overextending or anything else. We can negotiate. So don't be afraid to ask. You know, sellers are, you know, not in dire straits like that, so we don't wanna take advantage of anyone, but ask.

19:47 Yep. Yep. And I wanted to ask you a a specific question that our our realtor told me last night, And I wanted to verify because you're the expert if this is true or not. She told me with some of the new regulations for realtors that you're not even allowed to go open a door and show them a house unless they sign a buyer's rep agreement. Is that a true statement? That is correct. That's what I thought. Yeah. And so and you and sellers, listing agents are not wanting to show anybody a home that doesn't already have a prequalification letter. Right? Well, that's been a a while. Yeah. That's Yeah. That we've been doing that for a while, but, you know, the the buyer relationship, agreement is just to establish that clarity of of commission. Mhmm. You know, we're here to to represent the buyer, and we wanna make sure that they understand that what that role means. Mhmm. We ought to make sure that they understand all the the compensation is paid. So there's there's no but I've been doing that for many, many years. So that wasn't anything new. Some folks, it's been a little little new Yeah.

20:51 To get the get the rep agreement. I've seen that. Has been new is the fact that, you know, me as my my listing, I can no longer show that listing Mhmm. Without the buyer getting a sick you know, the sign agreement. Right. They may not wanna work with me as a buyer rep, and that's okay because I'll just do it for that one moment Mhmm. Of meeting. Yeah. Oh, you can just outline it for this house. 123 Fund Street. And then if they One day Yep. That one meeting. Then it could be good for them one day, and the next day, they can move on. And I have to up so several that way. That's really good to know because, you know, you could see how consumers could say, wait a minute. I'm not ready to sign something. But if it's only for one house or one day or whatever, that should alleviate any stress or not if had any trouble with it at all. Would you know, just make it very clear. And that's all I want is just to be clear about it. You know, what's going on and not make it weird when you're trying to do it.

21:44 It takes time to talk about it. Well and let's be real transparent. I mean, if you're gonna go try to meet with someone who's listing a home, a a a listing agent can't truly represent the seller and the buyer. Correct? Well, I do not. Mhmm. That is intermediary, and I I do not do that. We do work together within our own company Mhmm. With each other, which is also intermediary. However, there are agents that will, propose to, to work both sides. That's not efficient. Then let me ask you And that's my own personal opinion because, I I kinda allude to, kinda go back to in the legal world when you're working on a on a case, and that's my was my background. So you're either a plaintiff or a defendant.

22:31 Mhmm. And typically, their attorney doesn't work with both parties for a reason. And that's how you look at it the same way. I need to work for my client in the best interest of the You bet. Let me ask you a different way, Deb. Mhmm. So I'm gonna put you in a corner. If a realtor was going to represent both the buyer and the seller, don't they have to place priority on one? The fiduciary, wouldn't it be towards their original, agreement with the listing agent? No? No. You're a neutral. Are you neutral? Okay. Alright. But if you're going to go buy a house and there's a, the sellers are represented by a realtor, would it then be your advice that they should have their own representation that costs the same amount? Who who The buyers. The buyers should always have her. Period. Yeah. Yep. Always. And so, yeah, these are the things that save any money. Right. You know, you don't it it's it's it's to your benefit. That's the exact point I was look looking to make there. Benefit to have a a a representative that, that has your best interest in in taking care of you. Again, it's not just about opening up a door. There's a lot that goes along with that when opening up that door. What about new construction? Can a buyer benefit by not bringing a realtor with them, to go buy new construction?

23:58 I don't recommend it. Mhmm. Mhmm. I have been very successful for many years working with new construction for my clients, and I can tell you some really neat stories that I've learned through my clients, through their communities. Once they got in and moved in and everything, they've had their neighbors come over and tell them hellacious stories. Mhmm. And they're like, well, that didn't happen to us because I'm with them from the day that we signed to the day that we closed forever and ever and ever. Some of them, they don't have that hand holding or, information that they they need to be aware of when watching new construction, and I do watch our new construction. And and I can add to that. I know for a fact that the builder has already put in real estate commissions into the sales price of the house. So if you're gonna anything for free. Right. So if you're gonna pay for it anyway in the sales price of the house, my recommendation would be to have your own professional representation, period. So Correct.

25:01 Alright. Well, I I even though we've been doing this a long time, I learn something every time you and I pow wow. And so those were a couple of hard questions that I just had to had to get answers. I mean, you and I are you know, we're not loan officer roles, say, one zero one. So I've always gotta ask you three zero three questions. But, you know, I always enjoy spending time with you. It it it increases my knowledge. And, you know, Tanya's available, pretty much day, night, almost anytime. And so why don't you provide your contact information? I'd be happy to. Thank you, Joe. And I feel the same way. It this even though it's a podcast, I feel like that this is our normal Mhmm. Yeah. Get together This is a Thursday for us, isn't it? Yeah. We talk about what we can do for our clients. Again, my name is Tanya Walker. I'm with the Walker Group at Coldwell Banker Apex, and my phone number is (469) 207-8658. You can also find me on Facebook, Instagram, and all of the others. But I'd be more than happy to serve any of you any way I can. And we're both located right here in Allen. In fact, we're the only national, mortgage company that's headquartered right here in Allen, Texas. And so, again, I'm Joe Boggs with Highlands Residential Mortgage. You guys can call my cell, (972) 578-2300. Again, (972) 578-2300, or catch us online. We shouldn't be that hard to find. Until next time. Thanks for joining in. Make it a great day. Thank you.

26:27 Thank you for tuning in to the Allen Fairview Insider, the official podcast of the Allen Fairview Chamber of Commerce. We hope you enjoyed today's episode and found the insights valuable. Don't forget to subscribe to our podcast on your favorite platform so you'll never miss an episode. Like and share this episode with your friends and family to help spread the word about our great communities. We appreciate your support and are excited to bring you more engaging content. I'm your host, Super Dave Quinn, thanking you on behalf of the Allen Fairview Chamber of Commerce for listening and reminding you to stay involved, stay informed, and keep making Allen and Fairview the best place to live in Texas.