Anyone who's called me or talked to me before on the phone you probably hear me scribbling down notes constantly and the reason i'm doing that is I am trying to help you but b It's kind of how I get on my video material So behind me. I actually have my board which has some of the videos that we're going to be covering over the next few weeks And if you guys have suggestions as always, let me know if it's within my area of expertise. I will cover it but if it's not, you know, of course i'm going to avoid it because I do value my license, so Today we're going to have it's going to be a little bit of an emotional conversation I know i'm not really an emotional type. So, okay The markets across the country right now are super hot They're more competitive than I have ever seen i'm constantly in shock by how many offers the houses get How competitive it's getting it's wild right now. Okay, i'm filming this in september of 2020 and What happens when you're in these really competitive markets is you start to see? Realtors try to sweeten the pot sweeten the pot sweeten the pot and they're trying to do that In order to get their clients offer accepted.
Okay now Unfortunately, sometimes the sweetening of the pot Is not in the consumer's best interest and I spend a lot of my time right now Talking to realtors about how what they're doing is harmful to the buyer And how it's not worth the risk and then explaining to the client. Hey look This is what could happen. I do not advise you doing this and what happens a lot is because i'll hear from the realtors Well, they really want it. They said they'll do anything It's a house, okay. It's a house If Someone had your kid hostage Then do anything you have to do to get that child but for a house No No, no guys.
Let's let's circle back. All right, take a deep breath I'm working on my boob And center, okay It's a house I can't say that enough. It may seem like the perfect house the most magical house Oh my god. I have to get this house if I get this house i'll swim laps Every every morning i'm gonna be ripped right It's a house. Okay, it is a financial Transaction it is probably the largest financial transaction. You will make in your life You need to treat it unemotionally And I always make this joke with my husband i'm like I want to talk to business mark, right My husband's name is mark because business mark is incredibly Analytical and understands finer points super quick like he's a genius emotional mark um You know, he's a dude, right? He's a guy I like business mark Okay, he might kill me for this video, but he's a guy so I you know You gotta look at your house that same way the emotional part Of how much you love it? Oh my god, I could get a white couch It'd be so cute.
I could instagram it here. I could do that this garbage. Those are the thoughts of your money dying Yes, I stole that from mr. Wonderful. But those are the thoughts of your money dying. Yeah Anytime you start romanticizing a house You are losing power You are losing the power to protect your family financially You are losing your power to negotiate the deal and you are losing power to make a wise educated decision Got it Do not lose your power And don't let anyone take it from you This is a weird video, right? I don't know it might be the dress.
Okay, so What's too much? What's too much? Well, we talk a lot about being um honest ethical and transparent right we talk about that a lot on this channel. I Now refer to myself as the royal we and the thing about that is you should be honest Ethical and transparent with your offer. Yeah the offer you right on the house So this is the offer that's presented to the seller now if you want to have a good transaction You need to be honest with the seller You don't want to start the transaction as a desperate liar, and that's what we see realtors encouraging people to do a lot A lot so much so that I kind of thought about doing this video but julie on my team texted me four times and said Do it do it. Now. I can't take it for the love of god. It needs to stop so Here's the deal When you're writing a purchase contract a make sure your realtor goes through everything with you you need to understand the contingencies And you need to understand what can happen to you if you don't meet those contingencies Now something i've seen a lot of and this is a lot This is more central than california.
You know, I don't see a lot of this in texas. Thank you. Texas realtors And there's other parts of the country where we don't see this madness, but we see a ton of it in california And so what the realtors will do is they'll tell us. Oh, yeah, we need to waive the loan and appraisal contingency So what they're saying is as part of the contract normally It will say like you have 17 days to get full loan approval 10 days to get the appraisal and make sure it comes in at value And they're saying they want to remove those protections from the contract Okay, those protections are for you So they want to remove those but but here's the thing so besides potentially harming you It's not honest to the seller No, because if you're getting a loan right well, you do need loan approval in order to close on the house the only Way you can actually waive loan and appraisal is if you had enough money in your bank account For to buy the house with cash. That's the only way you really don't meet those contingencies And a realtor would say well they don't have to have the cash But if they don't meet it, they just lose their earnest money deposit Do you guys want to lose your earnest money deposit did the realtor tell you the ramifications of waiving the contingencies? I mean if they walk you through it and you're willing to get the risk great But then I end up with the client going.
Well, jen. Jen. Are you sure it's gonna close like if you're sure it's gonna close Like yeah everything I looked at looks super great But i've been in this business long enough to know 900 things could happen We could get the title report on the house and find out that there's an issue with the property lines or something There could be so many random things that could make this house something you do not want to buy the waiving Contingencies is incredibly risky. I would throw it under not worth it Right the business side of you should go. Okay. This is not worth it The emotional side of you is probably like okay. I know jen will pull it off. We'll just do it We'll just take the risk we can do it. No No business emotional Bye Bye Emotions are for after you're in the house. You can have emotions then prior to that You need to lock them up in a box put the box underneath your desk And do not open it until you are done buying a house Emotions are your enemy seriously? Okay so Waving contingencies, that's a problem.
Um um The desperate desperate desperate seller, okay, uh buyer, excuse me so the other thing we're seeing is we're seeing I actually had a realtor ask me to provide the borrower's pay stubs and W2s as part of their offer Yeah, they're like Oh well If we show and they already had from the borrower the credit report because I would never give that out And they had a picture of the underwriting findings with no identifying information But they're like we need the pay stubs and the w-2s to present to the seller So they can see how strong this borrower is Guys okay So I don't know about you but like identity theft is kind of a big thing right now having your personal information Stolen and being like electronically wiped out is the thing So why in the world would you ever let someone look at that information? Why? i'm not going to send my pay stubs or my my w-2s to a bunch of random realtors like None of these people are background checked for financing.
None of them. They're not lenders. They're not lenders So if they're telling you oh your lender's so rude she won't give me pay stubs and w-2s Yeah, no, I won't i'm never going to give a borrower's personal financial information to anyone It's a I could lose my license and beyond that it's stupid. Why would we do it? why would we do it but they're trying to sweeten the pot once again, they're trying to sweeten the pot so and they're trying to get you to give up any of your Protections and then at the same point they're trying to say oh and by the way here let me Let let's show them how good you are That's how it's sold to you. And I hear that i'm like oh my god, you're giving out an identity theft package What the hell are you doing? So no, we're not going to do that either If you have a lender guys If you're working with a lender that is giving out your pay stubs w2's credit report and all that stuff to realtors You need to dump them and report them to the cfpb.
I am not kidding. Actually, not the cfpb. This would be an Nmls reporting no one should be giving out your personal information if you Choose and we do see proof of funds as a requirement Across many states like they want to make sure you have enough money for the down payment. That's fair But all of your all it shouldn't come from me. It's not coming. I'm not sending it You have to send it and block out all your identifying information all of it because once again It's your personal information.
I can see why a seller would want to make sure you have a down payment But pay stubs w2s credit reports underwriting findings. None of these people know how to read it You're just giving them information that could put you in harm's way. Do you know how hard it is? Once your identity has been stolen to get your life back Yeah, we'll do a video about that It didn't happen to me, but i've had lots of people crying to me over the years telling me their stories and they are Horrible horrible, okay. Um Oh steering you to a specific lender? Okay, so steering into a specific I can talk. I swear a specific lender is another one So we see this a lot where it's like you're already pre-approved And the realtor's like oh you have to work with my person if you don't work with my person We're never going to get this house.
It has to be with paul. It has to be with paul What are paul's raids like if paul's rates are the same as mine or better? Oh my god go with him Please like I will give you my blessing anyone who's worked with me knows that if you guys find something better than me I'm, like go with them. Like that's awesome. They're taking good care of you A lot of times paul's not and they're like, well you have to stay with paul Okay, so we waved our contingencies you're being steered to a specific lender Your personal information is going out to random people who aren't background checked or fingerprinted or have any real? recourse, so Is it worth it? Is it worth it No, I don't think it's worth it so guys if you're looking at buying a house in a hyper competitive market Which is what we are in you need to Turn off the emotional part You need to just focus on the business part.
Okay. Remember, where are your emotions? Where are your emotions? Yeah Totally business and you need to protect yourself and if a realtor is saying well, you'll never get a house done Well, then it's the wrong realtor. You know, we have realtors. I was talking to a gal the other day And I actually said to her I said thank you so much for being good at what you do And taking good care of the client. It was a veteran client and she's written probably 26 offers for him which is a lot but at the same point in this hyper competitive market You may write 26 40 50 offers and it will be painful every single time Not as painful if you're just doing a business and you cut off those emotions under the desk But it will be painful and I said to her i'm like, you know You're just you're really, you know going at it and everything else. She's like jen it's going to happen It's going to happen.
I want to do it for him. I'm going to be the realtor that does it We're just going to keep on going at it and she will and she will succeed and that client will love her for life And I will send her business because anyone that works that hard for their client and doesn't Sacrifice them to get the deal That's a good person So I hope this was helpful. I know it was a little bit long if you have questions or comments as always reach out I'm licensed in so many states, please if you need a loan quote call us you'll talk to one of the gals on my team or myself and thank.