Why Buyers Should Negotiate Now Before Mortgage Rates Drop

And now live from our smokehouse studio, it's time for Real Estate Jerky. All your real estate questions answered by our provocatively lean expert host, Edward Ed Parcaut, MBA, veteran and president of Lending for Living. We'll give you something to chew on. Real Estate Jerky is on now. Welcome to Real Estate Jerky. We always give you something to chew on. I'm your host Ed Parcaut, MBA veteran and president of Lending for Living. Our studio is located right here in Modesto with our producer Mike Murray. We're proud to bring you the latest updates and insights on the real estate market and our community thanks to our partnership iHeartMedia and the station KFIV. You can tune in, never miss an episode by subscribing to our podcast.

Stay up to date by following on social media. Joining me today is Mike Kelly at Remax, active realtor. Mike, you ready to get going? Yes, let's do it. All right. Any major things you want to talk about before we get into anything? No, let's just do stuff. Any complaints about people this week? Oh, I got a lot. I got a lot of complaints. Like Like um the lender that just arbitrarily told uh the selling agent, "Hey, you know, you guys have got a request for repair out there. Let's just hold off on the appraisal. " Okay. Did you guys amend the contract? Oh, no, you didn't. Um get the appraisal done. You have so many days to get the appraisal your appraisal contingency. So, but hey, let's wait until you hammer it out.

I'm not hammering anything out until the appraisal's back and I don't have any other requested repairs from the appraiser, if possible. Very seldom happens, but if it does, I'm not What kind of loan is it? It's an FHA CalHFA. Oh, god. Yeah, I know. Shoot me in the foot, will you? I just did. So, I What people understand, CalHFA is no money down loan where you get money from the seller to help pay for the the down payment of it and it's through points and whatever and it's a very expensive loan for everybody except the borrower. And then eventually the loan is really expensive for the borrower, but they get in with no money down and it's, you know, but It sounds great. It's just it's an expensive way to go.

But when you have a home that has um lots of things to deal with, you know, Yeah, well, that's like I have one right now. They reached out to me. That's a VA and they're like, "Hey, we want to do that uh the um pest report, the short form on this one. " Okay, well, what's really wrong with it so I don't have to Cuz if the deck's falling off, I don't care how short that form is, the appraiser's going to call it when he takes a picture of it. Yeah, and guess what? It's not covered with snow. No. The best again, that's yeah, that's the best time to buy these problem ones. Anyway, I looked at it. It's, you know, it has outbuilding, which luckily now with the new VA guidelines, they don't care about the outbuilding.

That's so nice. Yeah. So, that's what we've, you know, so I was like, "Yeah, it should be fine. " You know what I mean? But whatever we'll have the appraiser call for it. But you know, then you got people who um VA going thinking that they don't have to pay closing costs, that the seller's going to pay everything and luckily right now sometimes they will and help these people get in with no money down and everything. And so that's a great thing, but you you should try to save some money just in case. Yeah. Yeah, and they're only going to pay for it if it's negotiated. Correct. It's not just a requirement. No, it has to be put in there and the price is probably going to go up to adjust for it.

Yes. Yes. 9 times out of 10. Yeah, because I was talking to these clients the other day and I'm like And they were like, "Oh, yeah. " And it was an offer for like I think 280. And I'm like, "Well, if you're going to add on that amount of closing costs, you probably got to think about 290. " And they're like, "Huh? " You know, like you're you're asking for the seller to pay for this. You normally raise the purchase You can throw go at the regular price. They're going to say no. They'll probably come back and counter you. Or just reject and Or not even do anything. So, you really need to look at it and talk to your agent, talk to your loan person, run the numbers and do everything. And they're like Well, and I, you know, the max on VA is 6% that you can get.

And when you're down at a 280 price point, you need all of that if you're going to Cuz I mean on average, you think of closing costs, you know, you're looking at escrow title fees. The big thing up especially in Tualatin County is going to be the fair plan. How expensive is that going to be? Is it 3,000 or is it 4,000 a year? And the answer to both of those um conjectures is yes. It could be. Well, it could be. We don't know. And then it's going to be how old's the roof and is it past its 25 years? And luckily we just got around the um being We're now able to do the cash value for roofs where prior to this we had to do replacement value. But that And to me, I think that's wrong because if I If you have cash value I know we're talking all over the place, people.

Cash value for a roof says, you know, it's a 25-year roof and it's on its 25th year and your a tree falls on your roof and just damages the roof and it has to have it replaced. Well, here's 500 bucks. Yeah, that's not what it's going to cost. Right, that's But that's the difference between cash value and replacement cost. Yeah. And I would much rather have you put replacement costs and and get a higher policy so that you don't have to come out Cuz roofs aren't cheap now. They're like They're, you know, average roof is 8 to 16 grand and could be, you know, more than that. Yeah, I've been depending on where it's at. I The last three that I've got bids on, I'm averaging about $23,000 combined, you know.

So, you take all three of them, divide it by 3 and boom, about 23 grand. Well, that's a lot. You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living alongside Remax active realtor Mike Kelly. I really need to change that to Loan Squad, but it's just one of those things I keep forgetting. Yeah, you forget. Yeah. So, that's just some things that are you, you know, if you're looking for a house, it's a great time right now still to buy because people there you have more opportunity to get the closing costs you need, to get the stuff you need and negotiate that. But not for the sale Not What What's that shaking the head over there? Yeah, I mean and I I don't I don't believe this is going to last forever.

You know, it's going to come to a It has It has for the last 3 years. It's going to be years. We've been talking about this, but but given everything, once we even out and interest rates come down even heck even into the fives, um there's going to be a mass um scramble for property and you're going to be competing. Sellers are going to say take it or leave it. I've got other offers. Bye-bye-bye. Well, that's like I had another client who, you know, they're just need a small house and they're like, "What about this one in Oakdale for 3 and 1/4? " I'm like, "That one's going to have multiple offers on it. You probably are not going to get it for 3 and 1/4. If you write an offer, it's probably 350, 375.

" They A lot of times at those price points they they mark they price it under so that they get a lot of volume and then everybody has that eBay effect. I want to win it. I want to win it. Exactly. Am I Wait, I'm going to like wait till last second bid. All right, so and this is going to change once uh interest rates do get down. The thing about you I'll bring up interest rates right now. What we're offering right now for the I think to almost the end of August is a 1-0 buydown, which means if you if you're starting rate 6 and 1/2, we for the first year will lower it to 5 and 1/2 um through a buydown agreement, which is a cash a bunch of funds of money that goes towards your payment each month for the first year.

Then it goes to your true rate of 6% 6 and 1/2%. So, it's always whatever that number first number it starts at. Right. And that's it helps for that first year to make it easier. It saves you anywhere from $250 to $400 depending on your price point. Dang. Yeah, and that's what That's UWM's doing it. So, it's that's who's doing it. And they're doing it because they just want more volume and they want to help people get in because eventually they don't want to deal with what's going to happen when this market changes and it's going to get crazier. And we'd rather help people get in now than during that period of time. We'll still do it during the period of time. Yeah. Well, and with more volume they keep uh they keep people working.

Is that how it is? Yeah. Isn't that crazy? Yeah. All right, I'm going to get into inventory before we go to a break. All right, so last week ending in Friday the nationwide inventory of single-family homes only no manufactu You know, all those other ones is 865,223, which is up 5,864. Um last year at this time this same week we were at We went to 860. So, we're 5,000 more than we were last year at this time. Okay, wow. So, you know, cuz I Cooking with fire. Yeah, well, a couple of the articles that we got from our producer we'll get in today. One of them was like, "The market is changing fast. " Pending are down 2. 2%. Listings are down 1. 2%. Oh, so we're into this nationwide last week listings are up.

Yeah. But then not like majorly up because think This is God, during the pandemic 250 to 400,000 a week were put on the market. Yeah. Yeah. And we had a lot of people that were walking away from their homes and simplifying life and buying an RV so they didn't have to wear a mask. Well, that was No, that was pandemic. I meant the Great Recession. Yeah. Right. During Cuz the pandemic we we didn't have this much inventory. Still didn't have this inventory. We had a lot of volume though. I mean people were buying left and right or selling left and right. Yeah, well, you would think we had a lot of volume, but we didn't. We just had If you go back It was higher than 2019. Yeah, but if you go back, it was not major I mean cuz I looked at the volume I did was all refinances and and purchases, but and I did those 2 years in 2020 and 2021 eat my whole career in each year.

Got you. So, that was a lot of volume and it was like, "Didn't you love it? " No. Not really. It was It was too much. It was volume. Yeah, but it was not the perfect time for that. All right, get your real estate and mortgage questions answered by the experts at Real Estate Jerky. Contact us at radio@realestatejerky. com. Call Ed Parcaut me at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. What are you going to do California numbers right now? Are you going to do Yeah, we'll do California numbers and then we'll jump on over into the local county of Stanislaus where we live and breathe. So, okay. So, I pulled up and AI has got this great little breakdown for me as I thought it was very cool.

I don't want to talk about the the the lowest number reporting cuz that's at Zillow company and they're just so inaccurate all the time. Redfin active listings has this at 116,447 listings in California. And then realtor. com that looks at everything. So, Redfin looks at single-family homes. Realtor. com looks at uh single-family one to four plus condos and townhomes. Um 157,600 They're projecting the median list price is 749-6. And I can remember 2 months ago where CAR California Association of Realtors was projecting that our uh median price was going to be 950. We're nowhere near that, kids. Um Yeah, we're not that far off from that. We're not No, but we're nowhere near that. That's because uh the bigger price homes aren't selling.

They're just ex They're remodeling them so they don't have to get that millionaire tax. Millionaire tax that's coming up on the uh ballot here fairly soon. And then in this big big county of Stanislaus, we're looking at 759 active listings. And through the month of July um we're like 240 closed listings so far. I know they're realtors because um today's the first and they have three more days to be able to report their closings that happened in July. So, we'll we'll recap those numbers next time. That's what's been going on. Those are the facts, Jack. Are those the facts? Yeah. Don't you know? Don't you know? Nope. So, what's You got local to do, right? Yeah, I just did it. Oh, did you? Well, I was paying attention.

Oh, the problem is my wife's asked me a question about something. Yeah, we're not taking it. It's not going with us. No, it's not that. I'm trying to remember the when I When they get back on Friday on Monday. Oh. Uh 7:40 p. m. That's a long time What? from now, Monday. Yes, it is. All right, so that was local numbers and you know, I We just need more houses on the market. We really do. Everybody says that we have such inventory and we don't. We need more inventory so we can have more people get into homes. But again, the problem is we have not been building them. The builders haven't been building as many as they can. It looks like they built so many but they're really not building enough. Yeah, we're going at what are we at six to eight years of very little inventory.

Yeah, well we used to build a thousand homes a year and I don't think we've done that in a long time. Yeah. Yeah. We need to like remember when they're building on the Tuscanies and all those plans over there, that was when we were building here. Yeah, that was it was a Popeye cartoon just dust and hammers and saws and at the end finished product. That's how that's how it works. Um one of the things that I one of the articles that our illustrious producer sent us was about uh many Americans retire earlier than planned and then they have regrets. What do you think that is? I think they cuz one of the problems I think people want to retire so much cuz they're tired of the job they're in. Yeah. And they they don't understand it's just that job but they'll even my wife's I'm retiring at this age.

Well good for you. Uh but what are you going to do? Be a greeter at Walmart. You're going to travel? What are you what are you going to do with your time when you retire? And I think a lot of people don't know what to do with that. Yeah. And people will retire and then start a new job or start something else. Um and that's just I I think that's okay as long as you know they're they're staying alive. What gets me is I have way too many friends that have retired and you know husband retires, the wife's been retired for a while, husband retires and uh oh uh how long did he make it? Oh 11 months, he's dead. Oh that's horrible. So the so the people who retire early have less time to save and their savings must cover a longer retirement.

Yeah. And that's what people run into and that's they even talk about with social security that you should take it as soon as you can because people who wait to take it longer lose out on like $134,000 that they didn't take from this point to this point and they should and they never catch it up. It takes them 11 years to even get close and most people don't live past them. Should I should I just take it now? Well the problem with uh if you're working you have to be careful because if you make over a certain dollar amount they take away uh $1 for every $2 over that. So really look at yeah so really look at your stuff. You don't lose that, you just don't get it now, you'll get it later. Right.

Um so that you there's all these things that you have to look at. I'm not a social security expert. I just know that you should really look into that before you start taking stuff and uh my wife's looked into it and talked to her buddy Claude constantly about what she should do and shouldn't do but she's in a totally different world. She's a retiring nurse. Gotcha. Totally different world. Completely different world. I've got a very good friend who's got her real estate license and um she's hoping to retire retire real soon and then just do real estate part-time but it'll be full-time. It's hard to do real estate part-time cuz you got to be there when your clients are available. So she's she's retiring from what?

The banking industry for years and years and years. Oh okay. Oh okay, gotcha. Yeah, so um TIAA Institute survey released on July 22nd the average retiree said they had retired at age 57. Of those retirees 52% said they retired earlier than expected while only 6% said they retired later than planned. The average worker American in this survey by contrast said they expected to retire 5 years later at 62. The survey reached 100 1,591 adults ages 22 to 75. Why would you give it to a 22 year old? They have no idea when they're I want to retire when I'm 35. Yeah. And I've known plenty of people who have. They've they've been uh very intelligent about their career and um made a lot of money and they retire, live off their retirement.

I think that's amazing. I would love to have been intelligent. Yeah, you would love to have been intelligent? Yeah. Okay. You're listening to Real Estate Jerky on PowerTalk 1360 KFIV and I'm Mike Kelly, Remax Executive Realtor, Ed Parcaut. Yeah, I Yeah, I'd love to be I've been intelligent instead of just funny looking. Yeah, well I mean and if you're a vet go go get your disabilities uh because there's a lot of stuff. I interviewed two two vets this week. Yeah. Both of them got injured on the way out of the military. For uh one of them was airborne uh he was in airborne school and when he jumped out of the plane he hit the fuselage and then the his uh parachute was streamed and uh hit the ground much harder, broke his back and they fixed him but then they kicked him out cuz he was he wasn't medically enough to be retired out but he was not medically good enough to stay in.

So they got rid of him and he had no idea about the VA benefits he could have gotten to cover all his stuff. Parachute got tangled. Enough to keep going, yeah. Don't you think that's a crime that the VA doesn't talk to them about that? Well a lot of people yell at him when he talks about it on things saying we were told everything. Well not everybody is told everything and so stop so even but I just know when I got out the DAV the disabled American veterans was there doing the paperwork. Right. Did they do amazing job? This is a long time ago so I'm not knocking them but back then they did okay. Did I get anything? Here's 10% go away. That's basically what happens and that's what happens to a vet.

Well your other stuff gets worse and you need to go back and for 20 years it was very difficult. It's much easier now to go back and get those benefits so please go back and get those benefits. Yeah, it it's owed you. Well it just makes your life different. It's it's you know you cuz you need a certain amount to be able to go to the VA and have it covered to where you don't have to pay for anything. Is the care at the VA the best? No but it's better than nothing. It is better than nothing. Or as my dad would say a sharp stick in the eye. Well then you'd have to go there again. Now I've got this sharp stick in my eye. Yeah, what what's a big deal? Um so did we talk about Redfin is saying how the market is changing?

I think I did I kind of really talked about the fact that they were saying that Drastically, is it drastically? week ending July 12 pending sales in the United States dropped 2. 2% and then I and the week over week home listings fell by 1. 2%. That's just that's a huge drop. That would well it would mean a lot if it was if started with a large number. Right, and they're saying we're at a 3. 4 month supply. Where? Oh nationwide. Nationwide. Okay, that makes sense. I mean uh Yeah. That's hardly anything. No. Yeah. No, I can remember years where we had a year to year and a half supply. You know I'm getting tired. So they write these articles and this is like Redfin writing this article. Then they go fewer pending home sales should help buyers.

Right. Really? Yeah, because there's there's more chance to go pending if you try it now but 2. 2% that means for every 100 there's two less houses going pending. Pending. That's not that big of a deal. I'm tired of these statistics and lying with statistics kind of thing. It's like you can make any art these are horrible articles what and I'm not knocking you producer but the articles that are out there are just horrible. There there's nothing that's amazing. They're misleading at best. Yeah, um did you go through the we'll get into this on the other side uh but the all the November ballot stuff did you go through a lot of that? Yeah, I was reading those before we came on the air and uh there's some interesting stuff going on and there's some really stupid stuff going on but we have some really interesting uh uneducated people voting in California and some that are probably not even legal.

Well the problem with California this is going to be this is not a major this is the in between election right? And so we in Stanislaus County we're lucky to get 40% to turn out and that's the problem. You the people who are against this stuff aren't coming out to vote because they're like yeah my vote doesn't matter and that's unfortunate. Yeah. Right. Cuz I mean that whole proposition 40 the billionaire tax that's just ridiculous and you know that's going to pass because they're saying it's just for billionaires. Yeah. Sure. Sure and then all the billionaires are going to leave and they're going to say well we're going to need to alter this to the millionaires and the thousandaires. Exactly for everybody else.

Isn't that how income tax started? That's exactly how income tax It's only for the rich while the rich have attorneys and accountants and they found the loopholes and now oh we're going to have to spread this across the entire nation. That is correct and the problem with that whole thing is 5% of the wealth tax on the assets well it's going to go for healthcare for low income Californians. Yeah, yeah and that benefit We already have that already. Don't we? Yeah. So this is Real Estate Jerky on PowerTalk 1360 KFIV and I'm Mike Kelly, Remax Executive Realtor here in the Central Valley with Ed Parcaut. You know he's an NBA veteran, mortgage expert and president of Lending for Living and we were just kind of going into some of the uh propositions that are going to be on the ballot this year um and prop 40 cracks me up.

You know one of the supporters of course is Bernie Sanders. So it's got to be good. So he's a he's a mega millionaire um so he wants to tax all the billionaires. He wants to tax everybody but him. But him, yeah. I mean the problem with this is the high would so the proposition 40 billionaire tax is a high profile measure that would apply a one-time 5% wealth tax on assets of roughly 200 California billionaires to be paid over 5 years. 90% of the revenue would go pay for healthcare for low income Californians and 10% towards education and food assistance programs. The problem with this is this is unrealized capital gains. Yeah. This is not how you're you should only have to pay taxes on things that you sell or or you realize a gain on not just because you have money.

Right and it's sitting someplace and you've got money on paper. I mean the reason that you become a billionaire so that you can borrow against it and not have to pay taxes. I'm just kidding. But uh yeah. But but how many people do you think would leave? How many companies? How many Well 200. Yeah. There's 200 California billionaires so 200 of them would leave. They'd relocate the They would just move their their their company somewhere else, keep their house here but not be here more than 49% of the time and then not have to pay that tax. Yeah. Yeah. And I and I don't know how that really works but that's probably how it works. Um what's the audit new tax spending? Well proposition 41 this measure is in response to the billionaire tax proposal would require state audits of programs funded by new taxes which would be good um you know so Newsom and his wife is creating an NGO that is going to provide the healthcare to the low income housing and or the food um to low income housing students.

Um it's going to require that spiking revenue go back to taxpayers or toward education. That would effectively cancel out the wealth tax proposal if voters prove both measures. The one with the more votes will prevail. So and so remember prop uh the what prop was that? Uh the the temporary income tax of the 12% on high income earners voted voters approved in 2012. The tax applies to household income over 721,000 for couples and over 360,000 for individual. That tax generated between 5 to 15 billion each year for K-12 schools and community college. Right. Right. I thought government's supposed to pay for that stuff. Well that is our money. It's set to expire in 2031. Uh they want to make it permanent.

Yeah. Right. No. No. Well and give me an audit of what what you've spent. Have you spent 5 to 15 billion on those things or where else is the money going? Well the question where did it go? Where did the money go? And and that's And you know they have that new accounting computer program that they don't know how to run so it'll say zero. And more affordable housing bond we already pay $225 on every refinance to help pay for affordable housing and now you want to do more. 25 billion home buying loan to create 25 billion mortgage loan program for home buyers who make less than 200% of the median income area measure would offer fixed rate mortgages up to 70% of the purchase price on homes under 1.

5 million. Home buyers must pay at least 3% of their own down payment. Really? Is this what we need to spend taxpayer money on? I'm a realtor and I would say defeat this bill. Now we have a we need a rainy day fund cuz Newsom yeah that's what Newsom says because Yeah, cuz he needs another house. Yeah. That's prop two. Uh you know I'm just I'm looking voter ID would be good. Yes. Proposition 39 needs to pass. We need to pass that. That's the only one that needs to be passed out of all these. Uh hold on maybe recall election form after a recall constitution amendment would eliminate the election to pick a successor immediately such when governor Arnold Schwarzenegger replaced the recalled Gray Davis instead of leaving the post vacant.

I don't know. Until it was filled in a separate election so you get the name who names it? I don't know. You know? Is that so that I don't know. I don't know these props aren't getting me down. Yeah. They're kind of depressing. It's all It's all about And they're doing it right now because they know how people vote in California during this period of time. Right. Not very many show up. But enough to pass it. Yeah. Not enough to say no, but enough to say yes. I don't like that. Well, that's what they know. They know And they know how to make it to where it's a certain bill um that people will, you know, say yes to when you're supposed to say no to. So, kind of like the gas tax. Like repealing the gas tax?

Yeah. Yeah, I'm so glad that our gas tax is going up again. Is it? Yeah. I didn't know it was going up. Yeah, it went up another 2 cents or something like that. So, right 2 more cents at the at the pump. But it's probably Trump's fault because of the the um skirmish. Well, all everything's Trump's fault. Everything. It's always his fault because it's always You know, when you're the head of the ship and you're the captain and the ship goes down, it's the captain's fault. Yeah. Yeah. Yeah. Even though if it happens in a totally different ship. Like a different state. The Democrat ship. Yeah. Um the uh the gouging from the uh oil companies, they're just gouging California on uh gas prices is just crazy.

Is it because of the fact that we don't have any refineries left? We have a few. Yeah, and he's trying to get all of them out of here. Yeah, well he's doing a good job. You're listening to Real Estate Jerky. I'm Ed Parcaut, NBA veteran and mortgage advisor at Lending for Living alongside REMAX executive realtor Mike Kelly. All right, let's stop complaining. Okay. You want to talk some about something bright and airy? What? Um vaulted ceilings in homes. They're still They're still liked. Was that one of the things that he sent us that I don't? No, I just I'm just kind of making this up. But you go into a home that's about 1,200 1,300 square feet and it's got vaulted or cathedral ceilings, you get a a much better feel of spaciousness.

So, if you find one of those homes, make an offer on it right away because they're on a lot of them. Or if you have one, uh raise the roof. Yeah, raise Yeah. Take the Yep. Raise the ceiling. Raise the ceiling. Yeah. Cuz the ceiling's on fire. Um That's a roof. Yeah. You can do that in truss homes. You can't do it really easily in cut and stack homes. And cut and stack homes are homes that don't have trusses. They build the trusses there. So, they're they're going It's like a spider web of support. I guess that whole graffiti uh tower down in LA's days are numbered. What are they going to do to it? Are they going to clean it up? Or they just going to knock it down? I probably. It's a clean pile of rubble.

Yeah, well they need You know, they got to do something to it. They said they're going to confront that it was sold. The city has confirmed the sale of the property and cleanup starts now. So, the question is if they sold it, they're probably not going to They're probably going to try to fix part of it and then figure it out from there. They So, the KPC Development and Land Lease have purchased the three tower complex for $517 million and expect to invest hundreds of millions of dollars more into the project. So, I think they're going to finish it. Well, that'd be nice. Yeah. Well, what what's all the homeless people going to do now? Um migrate to the left. Do graffiti somewhere else? Yeah. Yeah.

Cows don't steal. That was one of my favorite um tags on a concrete barrier in um Thorton, California. Cows don't steal. I thought that was so cool. Are you sure? I'm positive. But I was young and I digress. Yeah, I guess you so you should. So, I'm not even sure what these towers look like. Oh, that's what they look like. Yeah, they have graffiti all over. Yeah. Where there is, you know, solid walls. Yeah. It's Oh well, it's about time. They need to clean up LA. Cuz uh you can't sing the song I Love LA anymore. I loathe LA. All right, let's move on, shall we? All right, so um let's talk about real estate or mortgages or something like that. Um I have a ton of VA buyers. Yeah. Yeah, and people that and and that's what's good right now uh because rates are not the lowest, but with the one buy down we're doing, you get that 1% lower for the first year and VA doesn't have mortgage insurance.

So, on the same transaction as versus FHA or conventional, their payment's much lower. Yeah. And I have, get this, a short sale. I have a short sale in in Modesto, California where the buyer who could not wait to close escrow and was so excited to be able to purchase something um backed out about 4 days later. Is it back on the market? Yeah. Um with what I thought was a pretty lousy excuse. You didn't have to give me an excuse because you've got that free look period in the every purchase contract where if you received the TD uh the transfer disclosure statement or the natural hazard disclosure statement, you can use that 3-day period of refusal to just say not buying it and get your deposit back.

Do they have the same problem Barbra Streisand had? Yeah, same exact problem. Tell me about that problem. I'm not going to talk on the air about that problem. That's a personal thing. If you don't know the joke, I'm sorry. Yeah. Um so, it's back on the market. They're asking 415. It's a 1,637 square foot 2 bedroom 1 bath with a huge additional living area in the back that you could probably cut up and make uh You could turn that You could turn that garage into an accessory unit. Oh yeah, you could. It's it's accessible off the alley only. And cuz you got You can park in front. Yeah, there's Well, they Somebody took this home um an Eichler type property um and converted the garage a long long long time ago.

So, it was a 1-car garage to begin with and so it still has that In the front. You mean that In the front. So, it still has that long driveway um leading to that old um closed up 1-car garage. So, that 1-car garage in the front originally and then they had a 2-car garage off the off the alleyway. Right. 2-car garage in the back. Yeah. I like my grandfather who lived around the corner. Uh he was like the second home ever built on Covina. Um he had a 1-car garage in the front that he converted into a family room and then he built a 2 and 1/2 car shop building in the back because he was a general contractor. And uh those lots are big. They're big lots back when land was less expensive. You mean back when they gave you a big a big lot to put your house on?

Every Every property had a huge lot, almost 1/2 an acre. So, that was a little squeak there, buddy. Oh, sorry. I don't know where it came from. Yeah, I think you're just kind of yawning. No, that wasn't a yawn. I'm not tired. And then uh you are? Today I'll have uh some some things to say. Real Estate Jerky on Power Talk 1360 KFI V is always bringing you the latest information on the real estate industry. And if you have any questions or comments about our discussion today, please email us at radio@realestatejerky. com. And block A, we talked about national numbers and how the inventory's up about 5,864 to 865,000 and we were about 860,000 last year at the same time. Price reductions are up 40.

64%. I know I forgot that in the beginning. That's So, that means about uh almost every one for one for two. So, every houses that listed, one of them has a price reduction. I mean, it's not 50%, but give it another couple weeks, we might be there. Right. Yeah. Has to be reduced, yeah. So, um do you like the ones they do in Oakdale for real cheap? Just put them at a really low price and let them Well, let the buyers battle it out. The days on the market's still sitting at 63 days on the market. Um that's And locally, I think we were What What are we on the market locally? Um 32. Is it 32? Yeah, 32 locally, 25 statewide. Well, that's not many days on the market. No. California's an anomaly. Yeah, because they have hardly any homes and people who can buy get in and buy because that's how they make a lot of their wealth.

Exactly. Yeah. And but you got you got to do it before 6 months from now because they're writing contracts for the people at SpaceX Oh. with a 6-month close period. They'll close in 6 months. Till they get their money? Yeah, till they get their money. Yeah, that's just Yeah. Paying cash? Yeah, paying cash for those things. Once they get their money, they can borrow against those things going up. Yeah, that's Cuz they got to hold that money to hold that for 6 months, some of them. I don't know the whole thing. I'm not going to get me into it. But that's just going to change our market again in the higher priced homes. Right. Right. Yeah, and then they definitely will be voting not to pass those taxes.

This is true. All those people. All those new billionaires. All right, and then block B, we talked about uh regional numbers, California and local. Uh would you say the California numbers were 100 and 156,700. 156,000 for That's all homes. 700. That's all homes. And then uh what was it? It was 10 uh I don't remember. In the family. All right, well Well, you write it down next time. And then locally, we have uh 250 some homes that have closed for the month of July and we'll know more next week when they finalize the numbers. Yeah. Yeah. I don't think it's going to get any higher than 275. You don't? No. Okay. I just think Cuz I think it was a slower July. I think the first two 10 days people didn't really do much and then they started getting more active after the 4th of July in that week.

That's what I saw. Um and and just recently in the last week, it's gotten even busier for me. 106,750? Okay, so there you were close. Right, close. So, All right, and then block C we were And then also we were talking about the different uh articles we were given uh throughout the whole thing about how many Americans retire earlier than planned because And they have regrets because of the fact that they retired too early and didn't have enough money. And so just make sure if you plan to retire that you have all that put together if you plan to retire. Yeah, talk to a professional. Talk to someone that can help you plan it, not us. Not us. Yeah, we we're just We're just regurgitating stuff we've seen out there.

And then we had a Redfin article that's basically saying uh there was a bunch of noise because it was just saying that, hey, pending home sales down 2. 2% and it's going to help buyers. Now, if pending sales were down 20%, that would help buyers. A lot. Yeah. Not 2% Yeah, and and that's the thing is they just write these articles to write articles and then they need And the question is at least get AI to write it for you. It would have been much better. Well, at least do some some research to corroborate what you're saying. And then we talked about the ballots in the last segment. And please go out before you Please go out to vote. But read everything. I mean, it's in the What, November? It's We got a ways.

But you got to read the ballots. You really have to read what's on there and you need to vote. And then my question is how they're going to do this, you know, it's going through the Supreme Court right now about um the mail order ballots, how if they don't give the rules to the federal government to tell who can't be on there that the mail the post office won't deliver them to the people. Yeah, November. Right. Yeah, um the Do you think Claude would be able to Do you think Claude would be able to dumb it down for most most Americans? Uh what's what the ballots are saying and what they really mean? I would trust AI to tell me about the ballots. Yeah, because it's got a democratic lean a democrat lean.

I just Those are the ones They're not that big to read. It's The question is uh if if Bernie Sanders supporting it, it's a no. That's easy. You know, and who support Find out who support Yeah, who Find out who's supporting it. Right. Yeah. And then vote against Who do you Not that you don't like him. With or against. Yeah, exactly. Just vote red. Are you with me or are you against me? Yeah, I don't know. I can't even talk today. You're listening to Real Estate Jerky. I'm Ed Parcaut, NBA veteran and mortgage advisor at Lending for Living alongside REMAX executive realtor Mike Kelly. If you have questions or comments for us, feel free to reach out to us by emailing at radio@realestatejerky. com.

But this midterm is very important and they always are. But people just seem to sluff sluff it off because they're not voting for the president and obviously Every midterm is important. Well, it's not a major thing Well, they didn't even come out that much the last time. Well, you got a major thing. I mean, you're going to be voting for governor, right? Aren't you? Aren't you? Yeah, You got Hilton or you got? Uh, Becerra who is uh from what I understand, he's got a lot of stuff going against him, but uh he's still leading in in the polls. Leading for who? Democrats? Exactly. Yeah. Well, the question really is is let's go back and isn't he the one that did some of those changes to the the ballot stuff to where they would vote uh no and it would you you had to vote yes?

Wasn't he the guy? So, can you trust him to be governor? Yeah. No, you can't trust him for anything. And he's trying to change voter voter laws right now right in the middle of having an election. But I thought um only only Trump was doing that. Oh, no, actually Trump is Okay. It's only Trump doing the wrong stuff. Right. And again, the most important thing that this is a real estate and finance show. Go buy a house. That's all. That's what That's how you protect yourself in anything, inflation, everything else, is by owning an asset. And that's how you need to protect yourself. And a lot of this just vote and then get rid Don't listen to the noise. Just focus on your family, focus on yourself, Yeah.

focus on buying a home, focus on when you're in your home, just focus on you guys and your family and your neighbors and get to know your neighbors. That's important. Yeah. There's nothing worse than being in a location and not knowing your neighbors. Think about the unforeseen circum or consequences of like a billionaire tax. What's that really going to do for us? Is it going to wind up costing you more money because all these billionaires leave and jobs go with them or you know, or is it really going to And then look at who's going to start the NGOs that's going to handle where the money goes to and how much fraud's going to be in that. Well, first of all, they we're going to lose all this income.

Yep. And for it to pay for all this stuff. State We talked about state income, yeah. Right. And so the question is where are they going to get that income from? You They're going to come after us. Yes, they the billionaires are going to leave and then they're going to oh, we didn't get that money, so we're going to have to start getting all the millionaires and thousandaires. Yeah, thank God I'm in the thousandaire one. Oh, it's crazy. Thank God I'll have non-taxable income. That'll be nice. Yes. Yeah. You're about done with that, right? With what? All your stuff, right? No, I'm still it's like a couple more weeks. It'll be re put in. Um I've got people doing my nexus letters and other stuff right now right at the end.

So, my goal is by August 1st have it all not August 1st, August 15th I have it all submitted. Yeah. That'd be nice. Yeah, and the way I'm doing it is with the nexus letter and DBQ. I won't probably have to go to the C&P appointment, so it should just go through and be done in a couple weeks. We'll see. C&P is that can't remember, people? Yeah, that's compensation and uh pension. Ah. What's the M? Huh? Don't ask you. Compensation. C&P. Oh, C&P, okay. That's it. Not C&P. But yeah, so that non times when you have to go to those, there's no information in there and they didn't have the doctors do the things that I'm doing, so I just learned a lot. So, Oh, glad you're learning. And it's funny how every every vet I talk to, look, can you help me?

I wish I could, but the state of California passed a law that says nobody can help you unless they're approved through the State? Well, through a veteran organization like the, you know, the VSOs and stuff like that, you'll get in trouble. Yeah, um because there are there were some companies that were charging a little too much. Well, go after people charging too much. Still allow vets to get help because that's how 6 million veterans are now have their disability benefits where before it was only a few million. Really? That's how. All right, guess what? It's a wrap. Yeah. I want to thank you for listening to us on Real Estate Jerky. Mike, thank you for being here. If you have questions or comments, you can find us on the web, social media, or you can shoot us an email at radio@realestatejerky.

com. You can give me a call at Barcode at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. If you missed any of the show, don't worry, you can catch up wherever you find your favorite podcast at. We're proud to live in this country and still build personal wealth through home ownership. Join us here on Real Estate Jerky. We always give you something to chew on every Saturday at noon and Sundays at 3:00 p. m. on PowerTalk 1360 KFIV. Mike, thanks for being on the show. Yeah. Thank you. Thanks for having me, Ed. Thanks for tuning in to Real Estate Jerky and we'll talk to you next week. Sweet. Cuz we got small towns and farmland. Folks who still make a living with their hands. Where I come from a man is still a man.

That's my California.