Money Matters
Money Matters
Beyond the Listing: Navigating Real Estate with Expert Insight
Navigating the complex world of real estate requires expertise and guidance to avoid costly mistakes and maximize your investment potential.
• Understanding the difference between realtors and real estate agents – realtors subscribe to a higher standard with the National Association of Realtors
• The value a realtor brings goes far beyond showing houses – includes negotiation, market analysis, and spotting potential problems
• Using the LOVE framework for home purchases: Location, Offer, Value, and Exit strategy
• What sellers need to know about market timing, property presentation, and proper pricing strategy
• How to select the right realtor through personal referrals rather than relying solely on online reviews
• The importance of starting with pre-approval and knowing your numbers before house hunting
• Common myths about real estate that can lead to financial mistakes
• Why "buying smart" means considering future equity and having a clear exit strategy
• How realtors help both buyers and sellers navigate the emotional aspects of real estate transactions
For real estate consultation, contact Denetria at Denetria@DBclosers.com or 225-223-0499.
Have an idea for a show or a question for Kim? Send us a text message
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want – brought to you by Neighbors Federal Credit Union.
The information, opinions, and recommendations presented in this Podcast are for general information only and any reliance on the information provided in this Podcast is done at your own risk. This Podcast should not be considered professional advice.
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want. Now here is your host, ms Kim.
Speaker 2:Chapman, imagine losing thousands of dollars simply because you didn't make the right call. Well, we're going to make sure today that never happens to you, because we're going to be talking about real estate and returning is an expert. I mean, we've been sitting here before we went live talking about the difference between a realtor and a real estate agent and you might say, well, I'm not ready to buy a house, but guess what? She's been sitting here chatting with us about how you can even make money without having your license. So welcome back, denetria.
Speaker 3:Hey, thanks for having me. I appreciate it. Glad to be back.
Speaker 2:This is one of my favorite guests. She knows so much. I mean, every time we sit and talk, I learn so much. So we're going to go ahead and just kick it off with the basics before we get to how you can even make money. So let's talk about the difference between a realtor and a real estate agent.
Speaker 3:Okay. So I think that the simplest way to kind of put that in a nutshell is that all realtors are real estate agents, but not all real estate agents are realtors. So if you are, if a person is using the term realtor, that means you're a part of the National Association of Realtors. So that is a trademark name and that just means that we have voluntarily signed up. We are held to a higher standard of professional liability, and that is a part of the commitment that we've chosen to make by becoming a part of that association and following in the code of ethics that has been outlined for us.
Speaker 2:Awesome. So why should a person if you're? Because, of course, realtors can be used for the buyer or the seller. So what is it? What are the benefits of having a realtor? Why can't I just do a DIY? I know I want a four bedroom mansion with a swimming pool, a fireplace. I need to have 12 foot ceilings. Why can't I just go out and do that on my own? Okay, so let me.
Speaker 3:let me answer that question with a question. Okay, all right. So if you were sick and you got, let's say, cancer, would you solely work on trying to fix yourself, fix or heal yourself only on your own, without seeking any medical advice?
Speaker 2:Absolutely not.
Speaker 3:Why not?
Speaker 2:Because I need the experts to help me make sure I'm making the best decisions.
Speaker 3:Exactly and so. But does that mean that you don't know anything about how to heal your body? No, and does that mean that you cannot find some things on your own about how to naturally heal your body? Absolutely not. But now you have the ability to compare what you have learned with a subject matter expert. I liken that to kind of working with a realtor. A realtor is someone who, or a real estate agent who, says or has the knowledge to represent you when it comes to purchasing or selling properties, and I think that one of the biggest myths about realtors is that we just market properties right, or we're just showing properties, and I think that that's just a teeny tiny part of what realtors do, especially now that we have AI and the Internet right, and so, really and truly, this is your biggest investment. So, if you had a heart condition, would you go see a foot doctor?
Speaker 2:Absolutely not.
Speaker 3:Exactly Right, and so it's the same. I think with this, like buying a home is probably the biggest purchase that most of us will ever make, and so it's important then that I make or have all of the best information that I have to make a good decision. And we have two competing things right. The buyer says I want to buy a house that has all these bells and whistles and gives me the most equity for the lowest amount of money, and on the sales side it's I want to sell my house at the highest amount possible, right, and so that I can have some money that I keep in my pocket. Knowing your numbers, that's a big piece, and knowing the market is an even bigger piece to knowing your numbers.
Speaker 2:Okay, so I'm a prospective buyer. Kind of walk me through the process. If I were to pick up the phone and contact you, what should I expect?
Speaker 3:So the first thing is is that I would probably start with asking you have you ever worked with a realtor and are you currently working with one, and that's twofold One, so that I know kind of what? Are you a first time buyer and never sold real estate or purchased real estate ever? And then, secondly, though, if you're currently working with someone that's a part of that code of ethics that I talked about we are now obligated legally to sign buyer's broker's agreements, and so when you have signed that, that's the agent that now represents you. And that's important, because if you have that signed with someone else, I can't represent you. And I also, because I took because of the code of ethics, I can't tell you oh, go, fire your agent.
Speaker 3:Now, if you want to do that, that's between you and that agent. You just can't put that suggestion in the air. I can't put that suggestion in the air, right, you in that age, you just can't put that suggestion in the air, right. And so that's again, as much as you don't just again arbitrarily like even though again we use that same analogy about going to the doctor where your insurance has people that are in network and out of network, and it's not that you wouldn't use someone out of network. It's more that I care more about the specialty and expertise that I do, about whether or not they're in or out, and I'm willing to pay more, meaning I'll go out of network if I know that this person is really the better fit for helping me.
Speaker 3:And so, again, that's where the costly mistakes can take place, because you may just go to your general practitioner and you have a heart condition, who does not specialize in heart issues and may not have ever seen something that indicates that the symptoms that you're experiencing is really more of a heart issue than it is. You know, a common cold, say you know, for example. And so it's the kind of like. Those are things that I would just kind of start with first making sure that I can represent you, and then, secondly, after that, it would be to actually sit down and schedule a time where you and I couldn't meet. So the first conversation if I am busy, you're not getting my full, undivided attention, and if you just picked up the phone and say, hey, someone told me to come talk to you, you're probably not at a place to really sit down and do the deep dive and answer questions that are necessary for me to represent you appropriately.
Speaker 2:So what things should I even consider? Or information should I have available before we meet, even consider?
Speaker 3:or information should I have available before we meet. So again, kind of having an idea of what you can afford and I don't mean that by oh, I want to buy a $250,000 house or I want a $500,000 house. I think a lot of times people kind of start there like, oh, I want this really luxurious house that is in the, you know, a gated community.
Speaker 3:Don't we all we all do, and it's not to say that you can't get that right. But let's start with how much can you afford? How much do, regardless of what the bank approves you for? How much do you think that you could realistically pay in a mortgage each month and not not be a financial burden for you?
Speaker 2:should I go to the bank first and I should never say that be worth the credit union right should I get a pre-approval first, or should I see you first?
Speaker 3:um, it really is a um. Um, I'm gonna send you there, right? I think that, just like you, you would shop with me or other realtors to see which who like who's a good fit. You should do the same thing. I think sometimes the first thing that comes to our head is the B word, like you said, banks and you overlook the fact that you have local credit unions that probably have different products that are more specialized and tailored to fit your circumstances, different products that are more specialized and tailored to fit your circumstances. So, again, while you can have a conversation with a financial institution, that may not be the end-all, be-all that we use, so it's the same thing, but it's a good starting place. It gives us a good gauge of where you're at and knowing if you have the ability to purchase at this time.
Speaker 2:Okay. So we've kind of gotten past that. I have a painted picture of what I want and I've kind of done the numbers and I think I know what I can afford. What's next?
Speaker 3:So then I think I actually read recently another realtor use. This person was out of state but I was reading an article and she had an acronym that now I'm like stealing and I don't remember her name to give her credit for it. But she used a love acronym and I love that because real estate is an emotional piece. This is a big piece of your life, right, piece of your mind, right. And so as we're navigating those kind of things, setting expectations up front and helping us to have a framework for us when we're getting back to, okay, we've kind of found something but it's not quite there, how do we evaluate those things? And so that acronym love it was like location. That's important. It's probably one of the biggest features of real estate. That dictates how much we're, oftentimes how much the properties are settling for. But bigger than that, on a personal level location for you. Where are you driving to? How far is this from your work?
Speaker 2:Don't want to be by the interstate. Don't want to be the country. Where are you driving to? How far is this?
Speaker 3:from your work, don't want to be by the interstate, don't want to be the country Correct, so those kind of things that are personal. And so, taking a deep, in-depth, just introspective review for yourself, some of these questions you may not fully know off top and some of them you will shoot from the hip until you because it looked good online and you've kind of done this until you get out there and you're like you know what? This is a lot of traffic to get over here. I'm not really feeling this as much as I thought that I would be. The offer, what? So? That was the O. What is the property offering right, and not just in terms of the things that we can all see online on zillow. What does it offer for you personally? Um, so does this house give you the three bedrooms? Does it give you the big bag backyard? Does it give you the pool that you may or may not have wanted you?
Speaker 3:You know, thinking of those things.
Speaker 3:And then the value again, not just the monetary cost to it. But can I put some things, can I improve some things? That may again include and that's one of the pieces that I think is really good about working with a realtor is understanding value in terms of equity right, what kind of improvements can I put into this property that is going to increase my property value but also may be valuable to me? And so, again, making sure that you're putting money in the right places, especially if you know if it's not new construction, it's just like any other, like a used car is used. There's going to be some things that are not exactly 100% how you, how you would imagine they should be, and that's kind of a thing I feel like most realtors use is the 80, 10, 10, right, want 80 percent of um, all the things that you kind of want 10 percent of, you know I have some wiggle room. And then the 10 percent like like 10 percent, like I can fix up to improve it, and the other 10 is I can live with it.
Speaker 3:You know, I mean it's not the deal breaker it's not the deal breaker, and so those are the things that kind of help us. And then that last little E she, I think, may have said equity or something along that. I'm going to change it up. I say exit strategy because I think that a lot of times, even when you think it's your last house, that you're going to.
Speaker 3:Forever home, forever home, things happen Right, house that you're going to forever home, things happen right. And so buying smart says I have started with the end in mind. So if something happens and I can no longer afford this, can I sell this house and not be in debt or have to bring money to closing? And so that's a big piece, because I have seen that I recently had a transaction similar to that, where it's a forever home, they put a lot of money into it, lots of furniture, and something unexpected happened and they had to sell and they didn't walk away with a lot of money, you know, and almost had to bring money to the closing. So that's why it's important to buy smart right and to factor those numbers in, because I don't think that couple had been in the house maybe just shy of a year, you know and so that's a big. It's a big deal, and I think that it's something that's totally overlooked. Nobody would buy a car and say I'm going to intentionally go out here and get upside down on my right.
Speaker 2:It looks that way Sometimes it looks like that.
Speaker 3:Right, it happens, it happens Right. And. But I think it's a recognizable thing. Recognizable thing that everybody, like. No one would argue with that part Like, look, if you buy this after all, that you're going to be upside down on this. We know, soon as you drive that car off the lot, we know that it's depreciated instantly. We don't think about that in terms of real estate, we only think about appreciation and value, and that's good. But we also need to look at how much has this neighborhood appreciated in value, or is it just holding steady?
Speaker 2:And so I think, when we think about the term realtor you mentioned, you know it's a myth that all you do is show houses. So what else would you do for me, after we've kind of ironed out what I can afford, what I like, we've kind of gone over, you know the location and the offer what else is entailed in the services that you provide?
Speaker 3:So with me with me personally, I would say that you get not only a tour guide but really a problem solver all wrapped into one, and I can tell you that it is. It is like like walking through a landmine you don't know what you're going to walk into. So there's funding challenges. There can be challenges through negotiations. We have inspections, so there's things that we might see or happen or take place in that inspection that you can't see with your naked eye, because we're not trained to look for that. We have to still get through lending and I think that, again, people focus on two parts of real estate right, Looking at houses and the closing table. So there's a lot that takes place in between.
Speaker 3:And, again, that's why, starting with that in mind and setting proper expectations because sometimes this can go really quick and sometimes this is a marathon it takes us a long time because, again, you being the more that you are in tune with your buying criteria and that is what I am helping us to evaluate throughout our time together Because, as I'm knowing or getting to know you, we may not have been as close in the beginning, but through the real estate journey we can become best friends. And again, once you start to know those things, right, like, okay, I have kids and now we're thinking through okay, I didn't know that, you know, maybe there's another parent involved, there's commuting back and forth between for the kid back and forth. There's just some considerations that you may not have thought through that I want to bring to your attention. Like, okay, what about daycare during the summer Summer camp?
Speaker 3:Is this mortgage going to be a financial strain on you during that time when they're not in school? Right, and you have, you know, someone that is taking care of them while you're at work? Right, if you lost your job, what would take place here, reviewing your appraisal report, going over those numbers for you, making sure that, again, you have buttoned up this deal left and right is very, very important, and also then being able to spot some things. That gives us the ability to negotiate equity into the house, and that is always my goal not to just sell you a house that you can say, oh, I got approved for a $300,000 house, I hope to get you a house that may be less, that appraises for three hundred thousand, or the opposite, that we get you a three hundred thousand dollar house but it has some built in equity there, so that again, if you are in these kind of tight spots, you have options.
Speaker 2:So what are some other myths? You mentioned, of course, that one that they, that we believe you just show houses and then closing. What are some other myths that you know prospective homebuyers come to you that you have to kind of unlearn?
Speaker 3:Actually, I will. I had a transaction recently where a client had spoken to the seller, not kind of knowing exactly what they were walking into about purchasing the property, and the seller said, oh well, I have a realtor. And the client said, well, okay, well, I'm going to get mine. And then we go into negotiations and in this case, the piece was I did not find the property, but I've helped this client prepare throughout getting ready to acquire this property, and when it got down to negotiations and what have you one of the realtor mentioned to me. Well, my client said you didn't find the property, and I think that that's a common misconception that real estate is just about finding property.
Speaker 3:I think that most people have access to online tools like Zillow. I think we were just talking to our camera guy back here and he's helping his friend. They're looking at properties themselves through Zillow. So most people do oftentimes find their own properties. But again, there's a lot of steps between finding the property, negotiating on that property, understanding what things you can negotiate on entering into your contract with an offer that is, that you have the ability to get out of that contract if you need to for whatever reason understanding the contractual laws and stuff there. Helping you to navigate that legal landscape when it comes to real estate is, I think is an even bigger part of the process than just locating the property itself.
Speaker 2:So when I opened up this session, you know I kind of led in with hey, if you don't make that right call, you can lose thousands of dollars. So what are some of the negative impacts you've seen for individuals that try to negotiate making purchasing a property on their own, without having your assistance?
Speaker 3:Excuse me. So I also have ownership in a title company. So because I am at the closing table, that means a lot. I also see deals that do fall through and the biggest piece is again the lack of negotiation. So you'll see that when appraisals come back you're right at that amount. And I'll use my own self as an example.
Speaker 3:I purchased a home and my property I was sure would appraise for what I had put in the offer for and it did. But the appraisal just said it met the loan amount. Well, that wasn't good enough. I mean, of course it meets the loan amount, but my appraised value is something that some lenders use, amcs, which is pretty much like the best way I can kind of explain. It is like a broker house for appraisers and then that is now on file and of record with them for a certain amount of time.
Speaker 3:If the appraisal comes back and just says, look, it meets the loan amount, you don't know how much more equity you have in this property, right? Or that it didn't meet the loan amount, this is where a realtor pulling their own comps, knowing the market, being able to evaluate, and look at that appraisal and say, okay, well, does the appraisal itself meet HUD standards? What are HUD standards for appraisals? And I won't even say that every realtor knows those things. It's just that the more deals that you see, the more problems, and I tell people that you don't learn from the wins. You learn more from the mistakes, the problems that take place.
Speaker 3:That you're like okay, I can button up this, and even more so on the next one, on the next one, on the next one, and I think that, once you kind of see that there is a lot of things that we can negotiate on, even in the appraisal process, the important piece to that, though, is numbers.
Speaker 3:So I have this thing that I tell myself of facts over feelings. Right, I can't feel like this is so unfair, and it might very well be, but I have to prove factually that it is, in a way. So that's also a piece. I'm like I've always kind of been a one, two, three like throw it out there type of person, but even understanding that sometimes, if you serve it too hard, it just you know it's too hard to to grasp. So, knowing how to present this back to um, whether it's like whether we're in negotiations, whether we're talking to the lender, whether we're talking to the appraiser, to even have them open, be open to the consideration that we're trying to have them consider. That in itself is a skill set or an art, that is a true kind of value add that I think that the realtors that close lots of deals they've mastered.
Speaker 2:And I imagine you know this answer. You may not be able to really tell me, but in terms of from start to finish, ideally, on average, how long is the process from when I come to you and I have an idea of what I want and you know the numbers, all of those things are in place? How long on average does it take to get from day one to date to closing date?
Speaker 3:average does it take to get from day one to date to closing date? So it depends on what side of a transaction you're working on. So, whether you're an investor, are you a home buyer who is looking for a forever home or you're looking for a starter home, right, I think that that timeline can be anywhere from a couple of weeks to a couple of months and a lot of it really boils down to you Investors. We tend to close quicker because investors don't really care about all of the things on the inside of the house. They see the vision right, like, look, I can fix this thing up. Homeowners, if they're they're a little, have the ability to see past the imperfections that might be before them. Say, look, you know, I can paint this house, I can do this those. Usually you can close them out a little bit quicker 45 days when you're trying to buy a house to live in Just because there's a lot of pieces that are not within your control, especially if you're using a lender.
Speaker 2:So what are some? So you mentioned that there's some things that your eyes train to see. So if we're visiting a house and I may think, oh, you know, I'm looking at all the cosmetic things, it's, oh, it's so beautiful, the floors what are some of those things that an untrained eye commonly miss?
Speaker 3:I think that again looking for things for your family, right, Like for you, so as if I know that you're a single woman. I'm not just looking at the house, I'm kind of looking at the other houses. What are the neighbors doing? Are there people walking? Who's walking the neighborhood? How close am I to like? Is this down a dead end, Like where? How is this house positioned within the neighborhood?
Speaker 3:I think also looking at things, floors, not just that there are floors, the feel of the floor, or there are soft spots when I'm walking and I see it kind of sloping Again, roof stuff. I am by no means a person that does anything with tools, but I do kind of now, after having gone through this process, like I'm like, okay, I see the roof kind of, you know, shingles kind of pulled up a little bit, things like that. I'm like the, the HVAC right, I'm going where is the HVAC unit so that I can go see how long, like, how old is it. Looking at the label right, it's small things like that because I'm anticipating what kind of future maintenance are we going to possibly encounter with this?
Speaker 2:So, and those again are good negotiating points- so we talked a lot from the perspective of the buyer, so let's talk a little bit about the perspective of the seller. How does a realtor help the seller?
Speaker 3:So, again, knowing your numbers in the market, excuse me. So I think that there are lots of people who decide to buy or not buy, sorry, sell their houses on their own. There is for sale by owner websites. But even in real estate, realtors don't always get it right. We see properties that sit on the market for a long time. When properties are sitting, we know that there is an issue. What that issue is can only be determined when we start asking questions.
Speaker 3:You've gone into the house, we've looked at the market and being able to analyze that piece, because sometimes it could be just the price. The property is overpriced, it could be that you have a nice price. There's other properties that are moving why isn't yours selling right? And so there could be some things that you may not may have overlooked, but it's an emotional aspect. There's a reason that attorneys don't represent themselves in court or their family members. So the same with doctors they don't operate on themselves or their own family, because the emotional piece oftentimes puts up blinders. Because this is something that you've loved, this house it's been. It's giving you so many memories, but that doesn't mean that other people will love the same things that you loved about the house and so kind of having that step back and evaluating that piece but also knowing your numbers.
Speaker 3:I think that a lot of times people focus on well, if I just sell the house, I'm going to keep a lot of the money. Well, the buyer can still be represented by a realtor, and I think that that's another common misconception. When there's a one-sided transaction, unless the realtor has decided and that has been okay with the primary person that the realtor is representing, then that's when they go into dual agency. I'm not a big fan of dual agency agency. I'm not a big fan of dual agency because, as an agent, what I'm saying is that I'm going to zealously represent you, and now I'm not going to do that, I am going to do it to your best interest. Well, these two people have competing interests and sometimes, like you know, when everybody, when it's good, it's great, like right, here's a price, they're willing to pay for it. Everybody is great, win-win situation.
Speaker 2:Is that the norm?
Speaker 3:I would say not. I think that sometimes, again, glamour and emotions, right. So there's a lot of realtors that are really good salespeople, realtors that are really good salespeople, and sometimes you as the seller, will leave money on the table because I want to get a deal done and I'm representing this buyer, which means I need to look at their best interest in addition to yours, and then if you say, well, I'm just going to let the other person be represented by a realtor and I'm going to represent myself. Well, I mean, I don't think in any boxing ring it's going to be fair that there's two against one, even if I don't know how to fight Right the same thing here. The realtor, they're going to be nice to you, of course. They're going to be nice to you, of course.
Speaker 3:But again, the interest there's actually an old car acronym is what they do for the fiduciary responsibilities that realtors have for clients, and one of the L in that is loyalty. My loyalty is to the client that I'm representing. Another one is confidentiality. So there are some things that is to my client's benefit or detriment that, if I disclose or don't disclose, depending on who I'm representing can be a negotiating point, right. So let's think about that. I know that not yet, but you're about to be divorced. Well, if I tell my client that, or if I'm just talking a lot and I slip up and say it, and you probably do it fast, I'm going to come in with a lower offer, you know. But that's also, I think, one of my things. I'm like I do a lot of research on all those things, like to see what leverage do we have. And, again, some people are like you know, people live their lives on social media now, right, and so I don't think that people realize just how much data is out there and is available freely, publicly, public disputes. Now, you know, everything is up for negotiation, and so those are the things that again, are blind spots. Blind spots that I feel like a lot of people just don't think about, blind spots that I feel like a lot of people just don't think about.
Speaker 3:And again, every day that your property is on the market, you're losing money, and I think I had a recent negotiating experience with that, where I was trying to get this deal to close quickly as a benefit for the seller, but also in exchange for what my buyer wanted, and and um, it was like oh, you know we can wait and I'm like but can you let's look at the cost of waiting Right, and I think that, and especially for someone who's representing themselves, the cost of waiting right, and I think that, and especially for someone who's representing themselves on the sales side, the cost of waiting you could do it yourself. But the longer your property is on the market, every month you're paying a mortgage, depending on how long you've owned that. There's some of that that's not recoupable. It's going straight to interest. It's going straight to interest. It's not eating down your principal. So when you do sell, that principal balance is just a little bit down than what it was the month before.
Speaker 3:But you still have to pay all of that off at closing if there's a loan on it, utilities, if you have an HOA fee, if you have, you know someone to come cut the grass. There's what if, between now and when you do it, a hurricane comes and a tree falls? Now you have to deal with all these kind of things the longer that it sits on the market, and now we're moving into that hurricane, getting closer to hurricane season. But we've also seen some things happen and take place that just are random and strange. Right. So the quicker that we can get a deal done, that's a win for everybody, and I personally, with everything I'm like people pay a little bit more through DoorDash, why?
Speaker 2:Convenience. So if I go to googlecom and I put a realtor, there's going to be infinite number of realtors I'm going to come up with. So how do I find the realtor that's right for me, right, how do I find a good one? And then what might be some red flags that this person is is not the right realtor.
Speaker 3:So I personally am not an advertiser myself, because I think that with most things, if I'm solely relying on Google, people are really kind of creatures of habit. If I love the experience, I'll give you a five-star review. If I love the experience, give you a five star review.
Speaker 2:If you make me mad one star, and then I'm going to type if I could give less than one star.
Speaker 3:Yes, and then usually if it's like anything in between that I don't know. Like I guess maybe I'm a weird person. Like I read the reviews and usually if it's like three or four stars, it's really because something petty like really, like you know they didn't do something that you felt entitled to, that wasn't even a requirement here. But I'm like again it's emotional and then oftentimes I'm not saying this about everybody Oftentimes when it's all five stars reviews and it's hundreds of them, it's just the law of numbers. Like there's a quote I think Abraham Lincoln said like you could please all the people, you can't please all the people all the time, but you can't please some of the people some of the time. Oftentimes if it's all five star reviews.
Speaker 2:It should be a red flag.
Speaker 3:It's a red flag right. It's probably friends or people that really really like them or paid right or incentivized, so not that you have to pay them Like look, I'll give you a discount, I'll do whatever if you give us a five-star Good.
Speaker 2:Google review Good Google review, right if?
Speaker 3:you give us a good Google review, right, and so I just think that, when it comes to legal stuff title companies, real estate most people are going to go with someone that was referred to them and they have a personal relationship with, and that's in any type of sales like service type kind of industry. Usually it's people do business with who they know like and trust of industry. Usually it's people do business with who they know like and trust. The problem with that, though, is sometimes you overlook people simply because you don't necessarily know them, and if someone else didn't tell you about them, they just wouldn't have the opportunity to be seen. But then we do focus on people that post a lot on social media.
Speaker 3:Well, the problem with social media is is that that algorithm is not specific to a geographical location unless someone is specifically targeting you in that geographical location, right, and so, again having having that seeing all the closings and all you know the the happy part you just you're not seeing all the pieces that took place to get there, and so I think that that's a thing that you just have to kind of be cognizant of. That's a thing that you just have to kind of be cognizant of. I've seen things. You ever read a bad review and you say, oh, I love that bad review. Yeah, absolutely.
Speaker 2:Because that's going to be the one review that keeps me from utilizing that business.
Speaker 3:So have you ever done it to the opposite? Like I was looking at a review for a school that I was looking at for my kids and someone left the school a couple people left one-star reviews about how the administration handled the situation and I was like I actually love that review. Oh yeah, there's some substance to it. There's some substance to it, but I was like in a positive way. You know what that's the thing that would give me? Like the expectation has been set that what someone else saw as negative is a positive thing for me. I think the same thing in real estate. All the times I'll see people online say, oh, my realtor showed me 20 houses. And I think that sometimes I know, like my shocker statement is I tell people I'm not showing you 20 houses and it's like oh, why are you in real estate? And I'm like it's not that I just am being hardcore about 20 houses, and once you've seen 20 pairs of shoes, it's hard for you to choose one pair.
Speaker 2:They all start to look alike.
Speaker 3:They all start to look alike and then nothing quite fits. They all start to look alike. They all start to look alike and then nothing quite fits. If we have to get to that many houses, that means that I didn't do enough due diligence with you up front and asking you enough questions throughout the process for you to get very, very clear on what is a good house for you. So after each house that we look at, that's important that if you say I don't want that house, that I take the time to understand why do you like? And not that I'm needing to convince you to buy this particular house. I'm wanting to know exactly what was the deal breakers for you for this house, because if I showed you the house, that means that, based on our current criteria, it met, or mostly met, all of the things that we talked about, and then that's where we need to go through and compare those things right. And also that helps me to refine our search process, and a lot of that can happen online. You can see a lot of the houses before we go, so that you can start to say, no, I don't quite like this, no, I don't quite like that. But you're very clear on that and that's a smoother, that's a good or better use of both your time and the realtor's time, because I don't feel like people understand that piece. The realtor's time because I don't feel like people understand that piece the more time that you're out there, if you have been pre-approved and the bank has quoted you numbers and we don't find you a house timely, then again there may have to be another pool on your credit. We may.
Speaker 3:We're definitely going to have to relook at all bank statements, paycheck stubs, and the more time that you put out there, the more things that can go wrong. You cannot, and we talked about this on the last episode. One of the things that's a nightmare for the banker is people extending or doing additional credit while they're in that loan process, right, yes, and again, sometimes unexpected things happen. What if you were laid off? Maybe it's a blessing in disguise that you didn't find a house right away, but again, if that happens, we got to start over in the loan process, right? And so I think that time time is really a important homeowner or even a seller that's thinking I just don't want to have to give up that money.
Speaker 2:What would you say is the chief reason that they would want to make the investment, take the time and connect to a realtor?
Speaker 3:Again, I think that having, especially on the buy side, if you have a good realtor that helps you define a property that has built in equity, those numbers should check out to where, if this is what I mean about knowing your numbers and not buying up to maxing out yourself and this property has no equity, because at that point I probably would be mad at the realtor right If I had to sell in a year I don't have any wiggle room Because, again, understanding loan products, if I'm doing an FHA loan, how much am I bringing down versus a conventional loan, that I have a bigger down payment, so I can do that. But if I'm only bringing three, three and a half percent down and I got to pay realtors three percent or more, I'm already upside down in this and so it's not just about calculating write downs, numbers, it is looking to those future pieces. But on the sales side, I think that, again, the like anything else, having somebody that can handle all those pieces for you if you bought at a right at a good price and that's the piece that I say all the time you don't make money when you sell real estate. You make money when you buy the real estate, having a good, savvy realtor that can help to again structure this deal and present it in a way that you get full price offers does kind of really lead to that piece of OK.
Speaker 3:I'm willing to give up this amount because I've gotten the pieces that I thought was necessary. Like that I needed to pocket and understanding that no matter there's a cost of doing business, no matter what business you do, even in representing yourself, you can do that. But are you going to be available to show that house? Are you going to be available to answer all the questions? Are you going to be available to understand and negotiate again with title companies, lenders fighting through appraisals, so on and so forth?
Speaker 2:So, as you can see, she is definitely full of knowledge. So if somebody is listening, how can they reach out and contact you?
Speaker 3:So the best way I you can certainly email me. My email is Denetria D-E-N as in Nancy, E-T-R-I-A at D-B closers, and that's C-L-O-S-E-R-S dot com. You could call me. My cell is 225-223-0499.
Speaker 2:I do get a good amount of calls, so if I don't answer, please leave me a voicemail or shoot me a text yeah, she's a busy lady, but we're going to have to get her back because we didn't even scratch the surface, because I definitely want to have her come back and we, like I said, explore that conversation we were having about basically how you can make money just showing the house.
Speaker 3:Yes, yes. So we'll talk through some of those things of you know, people who may be interested in getting into real estate, into real estate. We should also have discussions about people who are looking to invest into real estate and how real estate does allow you to make money, but it's not like. I think one of the big pieces right now is everybody saying, oh, I got to get into real estate to get rich.
Speaker 2:So we'll definitely have to have you come back soon to talk about, because we know a lot of people that are thinking that way. So thanks, denetria.
Speaker 3:Thank you for having me.
Speaker 1:It's time for Blueprint Building Blocks Small changes that lead to big financial wins. Let's stack up for success.
Speaker 2:Don't DIY your biggest purchase. Don't DIY your biggest purchase. A realtor brings knowledge, negotiation skills and access to listings that the average person doesn't even know about. Interview your realtor, ask about their experience, certifications and, of course, how they communicate, and then understand their role. Your realtor is your advocate, not your salesperson. They really should have your best interests at heart and then, of course, get pre-approved first Before calling a realtor, know your numbers you heard it right here. Then let your realtor help you shop smart.
Speaker 1:That's a wrap on today's Blueprint Building Blocks. Stay on track with your financial journey. Subscribe to the Money Matters podcast and visit neighborsfcuorg slash financial wellness for more tools to help you build a strong financial future.
