Is The Housing Market Really Shifting?

facebook too happy sunday everybody i hope you're having a great day today we're going to be talking about the shifting housing market there's been some news articles that have come out and i do have a special guest this week you guys might remember him his name is will frieder and friedner and he has been on this show before and he's we're gonna be talking about the montana market so if you're interested in in that you're gonna be enjoying our conversation today but before we introduce will there's a special thing i want to ask of you i never ask anything of my subscribers but if you're coming onto today i would ask if you were thinking about cons super chatting if you would consider clicking the link that i have in the pinned comment and donating to my friend owen video um he is on youtube i got i know you guys don't know who he is he's not a real estate agent but he does help out youtubers and he's a good friend of mine and he has stage four cancer and he's trying these alternative 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help with his cancer treatments that would be fantastic but you know you're here to hear about real estate so let's get back into some real estate my friend again wilfred friedner free free freedom i'm the worst with last names he is from montana he has been in real estate for years and he is going to be helping us sort through all of this shifting real estate headline nonsense that we've been seeing have you uh i sent uh will this morning some of these articles and eddie's going to be pulling them up in just a second and um they're talking about the headline reads you know the real estate market is shifting but is it really shifting well yeah i got a kick of that uh out of that article because it uh it talks about how it's shifting but then down at the bottom it does it says that you know things are basically the same so you gotta love the power of headlines yeah well the beginning says but the tide is turning it says uh the best way to describe the pace of the 2020 housing market the bidding wars got so intense that home price growth set an all-time record but the tide is turning the rush of buyers into the housing market during the pandemic absolutely crushed housing inventory the number of homes on the market with that figure falling to 12 consecutive months but april housing inventory was down a staggering 53 from a year earlier however trajectory flipped for two straight months the number of homes for sale has gone up home listings on realtor.com rose three percent in may then again nine percent in june that's not all we learned last week that the new sales are falling their pace in june was show was the slowest since the onset of the pandemic every indication is that this housing market is shifting a bit in the buyer's favor so what do you think mr well well in my area the key word would be a bit yeah like a minor they found a couple houses that didn't sell in 10 days and they wrote an article about the tide is turning so yeah here where i'm at in montana we're still uh everyone has decided to move up here move to the mountains and like i tell everybody they're not building any more mountain towns uh so everybody wants to come up here and so in our general general area um it's still pretty pretty tough to get something i just had a guy call earlier that his job is transferring transferring him here and he's selling a 10-acre place over in washington with a shop and big house and you know for i think he said he's selling it for 400 grand and he wants the same thing over here and i i had to break the news to him that that does not exist anymore so yeah in this area it's still crazy thank you jeff patriot for the three dollar super chat i appreciate you um so i will tell you what's happening here in louisiana um i and there was a brief window of time for like a good month that we weren't getting like 30 offers on a house we were getting 10. but this week i know it's like somebody who said you know there's more houses on the market if you're in a price range from like let's just say you know the 200 to 400 000 it's right back where it was two months earlier prior you're still getting like you're fighting 30 30 offers i mean we can't find any listings i've had to call for sale by owners the for sale by owners are unwilling to work with buyers agents i mean there's a lot of frustrated uh home buyers still to this day in my area now i know a lot of people in that i've spoken to throughout the country have had the home buyers that are just like you know what i'm going to wait it out because i'm going to see if the housing market crashes do you believe that we're going to be seeing a housing crash anytime soon because this article says we're not seeing a crash anytime soon what do you think well kind of when i was on your show last time we discussed the same thing and and i at the time said no i here you know again i'm doing it from my area perspective yeah and here i don't i don't foresee that happening and i don't really even see that happening around the rest of the country just because i think it will slow down from where it is right now but i don't you know i was in the business back in oa during the crash when it really was a crash and i don't i don't see that happening here there's there's there's not going to be the foreclosures because you know if even if you're behind on your payment i would find it hard to believe that you're not going to get what you owe on the house so i don't i don't see a crash i see a slight slow down well i don't know like i'm sure you have the same problem we do as a lack of inventory so let's just say a bunch of people that haven't been paying their mortgage decided to put their house up for uh uh up on the market and they've owned their house for 10 years they already have equity in it you know so if they they're not going to foreclose on oh bianca's pizza pieza world's last says 10 super chat super sticker thank you so much if you guys um are thinking about super chatting or doing a super sticker or anything like that at the top of the um chat there is a link to owen video's donations for his cancer treatments i would love if you guys could donate there that would be fantastic because i'm trying to this stream i'm trying to dedicate just to give all that money to owen in his cancer treatment so i really appreciate that thanks so much um when we talked about the cooling off of the housing market and i've like you know you and i have discussed this many times it's a cooling off meaning there isn't going to be as many buyers that are clamoring to buy the house at one time but we're still going to be having home prices stay steady because the type of buyers that we've seen in the past year and a half are not the same kind of buyers that we were seeing buying houses in the last housing crash that was held up by cookie loans that people could have stayed at income and buy a house this housing market is held up by people that have incredible credit history they have to go through a whole scope of getting a pre uh getting approval for those loans and a lot of them have a lot of cash like i've never seen as much cash going into the housing market as i've seen in the last year and a half is that the same in where you live in montana are is it a lot of cash buyers heavy cash buyers yeah for sure we get you know we're getting a lot of people coming up from the big city and we're still a deal compared to the aspens and the vales and so they come up here and think you know god this house would be five million dollars in veil and so they pay cash for it and um it's unfortunate for the locals that are getting priced out of everything but i mean i yeah i don't again we discussed this last time i'm not sure what the answer is to that um you know but yes we are seeing a lot of cash buyers and we are you touched on it earlier we are seeing a bit of a and i don't want to say slow down because we're not there yet but early in the you know late spring early summer people are just throwing garbage on the market and they'd get 10 offers on it and we're not that has kind of changed you know we're seeing more houses that there's a little bit of push back now from the buyers they're not just throwing money at in anything so that's a garbage can yeah that's a good sign we have a like i'd say a good five six houses in our area that are like they're pieces of garbage like their they're termite traps you walk up and you're like oh forget that eddie wants me to read this an analysis of the country's records by real estate brokers and by empire redford corporation found that 30 of us home purchasers in the first four months of this year were all cash up to 25.3 last year they uh the share of cash buyers in the largest or the largest since 2014 the company said paying up to upfront as opposed to obtaining financing is often seen as a way to getting a leg up on other potential buyers just like we were saying just like we're saying and that's why i don't see a big giant market crash i do i just can't see how it can maintain itself there's some houses i am still perplexed on how they sold for as much as they did and um i'm just i i'm concerned that in some areas and in some aspects some people did overpay but if they overpaid and it maintains that price then i guess they didn't overpay a lot of people want to blame the real estate brokers for the cost of the homes but we don't we only set the price the market dictates who's willing to pay for it so you can't really blame the real estate brokers for that because if buyers think it's too much and the appraisers say it's too much no one's going to pay for it that way eddie royal says uh question what is th this i hear about a 40-year mortgage in the dallas fort worth area is still increasing pre-approval 50 000 100k in our area no houses in the 200-300 area 350 area oh i know that's it's difficult to find it here i've heard this before i don't know if you've heard this about the 30 i've heard i've heard 40-year loans and 50-year loans but if you actually break it down uh you know the the chart where it shows you what you pay in interest you are saving nothing i mean like even your own payment i think it comes down maybe a hundred dollars 150 and if you're willing to add another ten years to your loan to save a hundred and fifty dollars on your mortgage payment then you probably should reconsider buying a house what do you say well yeah i agree and you know the other thing that people need to think about too is you know like the the people you were talking about a minute ago that may have overpaid um if they're yeah if they're looking to flip it in two years yeah maybe they did overpay but if they're they're going to be there for seven or eight years and it doesn't hold the whatever they paid or go up then we're all in a lot of trouble so i wouldn't be too concerned about you know yes this is the top of the market but if you're gonna stay in your house for a while then you know i you can't you can't look at it that way i i don't think some people though just want to win they just want to win so they'll they'll do stupid stuff to win win the house so i've i've seen a couple deals and i'm like that was just dumb like they just but they wanted to win bianca's piezo west says uh she's became a new tool member thank you so much welcome to the channel welcome to the channel do we have any other questions that you want to throw up there really quick here we go question s has a question do you think uh the housing unaffordability can be solved by section eight in an extension of low-income housing vouchers given wage gaps between the rich and poor eviction moratoriums cannot go on forever go ahead and give your opinion and i'll give you mine will you know i i i i i don't know i don't know what the answer is i i don't know if that will solve it sure that will definitely help a lot of people um but i don't you know i'm not i'm not sure i'm not going to say something that i go ahead so section 8 housing vouchers are something that that we see here in louisiana louisiana all the time but not every area is uh regulated and watched over in every state like it is here in louisiana those homes have to be maintained and uh regularly looked at by section 8 to make sure that you know they're proper for people to live in um there's been lots of issues you can look them up about section 8 housing throughout the united states um i think the real answer for on housing affordability unaffordability is to make housing for people that are making less than x amount of dollars to be able to buy a smaller type of house like they did after world war ii offering specific types of loans i also think that they need to make government-backed loans for houses that are under sixty five thousand dollars which would include very small homes and the government has tons of land that they're not using for anything and they can give that to developers develop to develop and make smaller homes for small families that have low income and that is the best way for to build generational wealth and that's what baby boomers did so they should offer that once again it's not hard the blueprint's there that's the best way to find uh solve the housing afford unaffordability what the big investors and big companies want to do is make more uh affordable rental units because they're like these people don't really want to own a house the heck they don't you know that's just total hogwash and it will keep people in a wheel like a hamster wheel of constantly running and then it's just generational renting and that's not what we want we want everybody to be able to gain uh generational wealth and one of the best ways to do that is through real estate well i i agree with that you're right we don't have a lot of the section 8 up here so i have i've in my 15 years in the business i've never dealt with it once um but i i agree with you and and that's where in our area um the cities aren't you know everyone's scrambling right now because nobody you know the the the guy that works at the restaurant washing dishes or whatever there's no way they can afford to live here right now and you know i know that every resort area has the same issue but it's really bad here in fact a lot of our restaurants and businesses are closing a couple days a week in the height of the summer because they don't have staff and you know because it doesn't pay right now to live 50 miles away and drive 50 miles to work at 10 an hour job and that therein lies the issue in in our area that happens in california too and they allowed for um people to put on uh alternative housing dwellings you know like they like the small tiny homes in their driveway so people that worked lower income jobs could rent those little tiny houses in their driveway it's a kind of a process though they they hadn't made it really easy i think they're going to stream like that more throughout the years and he had a question that popped up while you were talking here we go uh knowing says christina we have one of the hottest markets in the united states but nobody's talking about utah utah accounting any chance to make any video video about our market as well thank you in advance i can have um i have a friend that is a real estate agent out in utah i can ask him if he would come on here and um talk to us uh his name is joe eaves you might recognize that last name um eve is a daryl's uh brother and he's a good friend of mine and um he talks about the utah market quite a bit i was actually out there and i saw they're they're building neighborhoods one right after the other and i was like but this was in southern utah and i was like how do they get all the water like it looks so dry there like where does the water come from in utah i have no i don't i really don't know i'm not even trying to i'm not trying to be silly or stupid i don't i really don't know because there's nothing but desert there so where are they getting the water and then that like always worries like the back of my head if i was to live here what if there was no water where where would you get it so yeah i could have joe if you'll come on here a question from lori shepherd we have just got our fifth offer rejected uh all were 10 to 40k over asking in phoenix at some point could or would our realtor choose to stop working with us i feel bad every time for us and for her i can't see why she would what would you say well she's crazy if she does i mean that's just the market right now yeah that i'm sure lori that um you're not the only one that's happened to that she's worked with so i wouldn't be too concerned about that you're you know there's only so much you can do in the in in the price range whatever that is that you're in and she's trying her best and i i would be shocked if she doesn't want to work with you because it's not your fault that the offers aren't being accepted and let's be honest she's the the real estate agent is writing the offer now if the real estate agent is writing the offer and she says you're not going to win it with this amount of money you're going to have to offer 100 000 and every single time you keep getting rejected because you're not taking your advice maybe she could possibly get frustrated with that but i can honestly say in my 14 years of a career i've never like fired a client for something like this like that i mean the only time i've ever like if i get verbally harassed or or uh you know called names or anything like that that's the only time i've ever been like you know what this isn't really working out let me recommend you another real estate agent but no i mean this is that's just the nature of the beast right now you know i've this last this girl i'm showing her houses to now we've had numerous offers rejected and a poor thing soon as she sees the house we're sitting there trying to type the offers as quickly as possible and send them out and she's always panic stricken i'm like you may not win it and then sure enough she doesn't win it but you know she's a first-time home buyer she doesn't have an extra 20 000 in her pocket so question uh do i need a realtor for owner financing land when the land is owned by land selling company i would get a real estate attorney what is your opinion uh well or or an agent somebody that is representing you because those guys are representing their themselves and no one else so i'm not saying they're gonna lie to you but they're in it for themselves they're not yes they want your money they want you to buy it but i would have somebody you know watching your back and making sure that you know there's no easements or something weird going on with that land so that's one i want to know did you um was this a bidding type thing and did you have to give a deposit before they sent over paperwork i had a phone call from somebody that was using a website because they found the piece of land on the website and you had to actually send in the deposit to hold the piece of property so they could remove it from the market and then they would send you the paperwork and all of the financing was in with the company that was selling you the piece of land in the first place and i'm like wait well what what what and then you made your payments to the company on the website itself your that your payments were made to this specific land company and that just said to me red flag you know giant red flag giant red flag i'm like um no you know you need a title search of this like you need to call a title company and see if they actually own that piece of land and they will they call me back and they were like well it's under another company name and i'm like that does not sound right at all so there there's some red flags there i would get some representation from a real estate agent so always do your due diligence on any piece of land you're buying from especially if you're buying it from the internet because you know they can put stuff that isn't true on the internet did you know that really i heard that as a news flash there's the headline of today carly says can a self-employed person with a four percent mortgage get refi now income going up but was low in 2020 due to covid that that's a lender question and he's got to check your uh he's got to check your um it isn't just just your income he's got to check your debt to income ratio he's got to check um all sorts of stuff so that that would be a lender question i can't see why you couldn't by just reading that one sentence but he would have do he or she would have to do a little bit more digging to see if you'd be able to refi right now it would be a great idea though it would be a great idea the interest rates are so low yep well let's see okay question cat asks rural idaho can't get an aggressive realtor to deal to get to get in a deal on a home reminds me this is california's suggestion this isn't california question really i hope getting aggressive can't get an aggressive realtor to do it on a home reminds me of this isn't california suggestion oh oh i see what they're saying so they're they're saying that they want a real estate agent that is very aggressive because the one they're dealing with was like well we can't do like that this isn't california i have a suggestion but you go ahead and give your suggestion well i mean you just got to interview people and tell you know and find somebody that you like and is willing to do you know go all in for you it sounds like you know you've had some bad luck and um there's if it's anything like here there's plenty of agents around so i'm sure you can find someone and if you can't find somebody please reach out to me on my email you can email me at info christina smallhorn.com and i will find you an aggressive go-getter of a real estate agent but make sure you specify what town you want to live in because that makes a big difference because i can give you an agent in idaho but it may not be the town you're in they don't cover the whole entire state st george utah is the highest water usage in the united states and that's where my friend joe eaves is from and i want to know where are they getting the water from i mean you know i used to back in my former life i was in the golf business and i ran golf courses and i was down in southern california in the desert and we had in that desert it was the palm springs area we had the largest aquifer in all of california ironically enough in the middle of the desert so we had tons of water and when we would use it forty percent of the water that we use the water the golf course would go back down into the aquifer but the one thing they did there and i don't know if saint george is part of this i'm trying to i don't think it is but we had a an actual canal that came all the way from the colorado river over to help replenish our our aquifer but even now you know i've been reading because of um the lake mead and that you know the drought and there the water prices are going through the roof in those areas just because they're they're running out um there's a reason why they put water as a commodity on the stock market for sure and all those well look at vegas look at look at all those towns in the desert palm springs where i was all those you know you're in the middle of a desert you know water is pretty key well speaking of that eddie pull up that article about your area like what's going on with drought and wildfires in montana eddie can you pull that up for me i think he was trying to pull up some other he was filling up something else but i'm going to show a picture while he's doing that um let's see here look at this wildfire i know you're going to see us on the other side here but look the a little wildfire here and then look is this like the whole area that's on on up for on pretty much the whole state yup there's fires everywhere luckily just in the last 24 hours we started we got a rainstorm that's come in and we're getting some much-needed rain i don't think it's going to put anything out but it'll definitely slow them down and um uh you know give the firefighters a chance to get a hold of some of these fires it's been pretty bad this year yeah i i didn't know if uh the um wildfires would affect your housing market does it affect your housing market when you have these fires like this or do people still buy and they don't care no they you know this unfortunately this is uh you know almost every summer there's some there's some fires we have so much wilderness around here and the weird thing that happens here in the northwest or in montana where i'm at is you know we'll right around 4th of july it quits raining every year it just turns into the desert up here and the weather is beautiful but then you know we don't get any rain and then we'll get these they call them dry thunderstorms that have lightning and thunder but no rain and so they'll blow through and they'll you know lightning will strike all over in the mountains in the wilderness and start up 50 fires and then you know then you're stuck with trying to put all those out in the middle of the wilderness this one that uh this article is about is about probably 30 miles south of where i'm sitting right now and it had started about a week ago i think it was last saturday this one that they think started was man-made um there's a bunch of cherry orchards down along the lake right there and i i'm i don't know how it started they're saying it was man-made because there was no lightning at the time and they haven't determined yet but anyway it it burned for a day or so and then the next day the winds picked up and blew it down down the mountain towards the lake and it actually burned 10 or 12 homes that were right along the lake and it burned all the way down to the edge of the water so yeah that was a bad one the road is still closed you can't drive down that highway right now so in louisiana we have flooding all the time and we have of course flood insurance is there extra insurance that people would need in your area when they're purchasing a house because of these type of fires that happen all the time or is it just regular fire insurance and that's it yeah depending on where you are i've had some people have a hard time getting insurance when they're way out and a lot of a lot of people will they call it park out their property and that will help with your insurance rates if you can clean it out and it's you know less less of a risk for a wildfire so it just depends where you are um you know and the price of the insurance will you know determine or be determined by where exactly you are and how close you are to a fire department how close you are to you know fire hydrant too exactly yeah that was just i like people made fun of me because i i did a video about buying um homes for living off the grid but one of the things was is like how far are you from a fire hydrant and somebody says well if you're living off the grid you don't need a fire hydrant i'm like some people's version of living off the grid is like they don't want electricity and they want a well but they don't want their house to catch on fire either so they want to have a local fire department to be able to hook up and be able to put out the fire near the house you may not consider that off the grid but these people do so everybody's version is different okay question deanna says um can i finance on land only in indiana i was approved for 250 000 but on a house not uh only not land that's a different uh loan approval you're gonna have to get a whole different loan approval for land than you would for a house now you can do something where you roll the land and the house into one package which that would be a new construction loan so but yeah that would be a different type of financing because you're not going to get 250 000 just on a piece of dirt well what i was going to say is they on land i'm not sure what they told her for a house as far as what she needed as a down payment but on land they they require a lot more up front um 30 down isn't it like 30 percent at least yeah yeah yeah so i thought minimum 30 down and he's gonna throw us all right question if i'm selling to a corporation like zillow redfin et cetera should i should you have a realtor look over the offer to ensure you're not getting ripped off what's in normal to hand away handle these circumstances go ahead well about 1 million percent they're they're i can guarantee you right now and i've never obviously no idea where your house is or what it is but they're not giving you they're not giving you what you could get you know on the open market so i'm gonna tell you what happened to one of my clients so she uh has a house and if you uh did the comps for the her neighborhood her house would have been valued about 259 000 which she was pretty happy with she wanted to see how much of these other companies were going to offer her and zillow offered her 268 thousand dollars in a one percent transaction fee she's like i'm i'm in i'm gonna do this and i told her i said you know see what happens but i'm telling you right now they're giving you a number based on some a number they pull out of the sky but once they come in there and they actually preview the house they're going to adjust that number and that's exactly what they did they were telling her that they that she needed all these certain things to be done to the house in order for them to purchase it they were deducted it that amount so now the offer was back down to uh 255 000 i'm like you can do better on the open market forget forget what they're saying you know so she ended up putting it up for sale of course she got an offer right away but she was pretty excited because she didn't want to go through that whole thing she didn't want to negotiate anything she didn't want people coming through her house she just wanted to sell it and move on but now she realizes and it took a lot of time to for them to like come back out and like survey her house and tell her how like when they did their inspection of it it wasn't like they make it sound like it was really quick but it was it took several days so she was like all those days i could have had on the market and i said yeah you would have been under contract too so what i've seen i know it's the it's the fine print that you need to be careful of right like you said that's exactly they'll say oh yeah i'll give you a 260 or whatever you know you probably think it's worth but yeah then three weeks later or more oh we really meant 220 because you need a new roof you need this you need that and um and the one percent thing i'm surprised i've heard that it's higher than what normal real estate agents charge for the for their transaction fee well it's one percent and then it's like other fees on top of it like it was a like there was one percent and like you said the fine print and if you don't want to hire a real estate agent to look that over you can always hire a title or real estate attorney to look over that contract because they'll even be able to read those fine print even better because they they throw some legal ease in there that may not be privy to real estate agents betty asks now is there an increase in inventory with the insane bidding wars uh slowing down in california i don't know of anybody that says the bidding wars are slowing down in california i had an agent on there last week and he's like we're still doing crazy here and um i i don't know i don't see that there's an increase in inventory in california from the people that i've spoken to how about you will well again i run into this here in montana california is a huge state and there's a million different you know micro markets around california so yeah you could probably find somewhere in california that that's the case but i think in in general i agree with you christina i haven't heard that it's slowing down at all i mean for sure there may be some rural towns up in northern california somewhere that it is but in the in the large parts of the state i haven't heard of that at all um i always think that california is a catalyst of what's going to happen in the future to other areas because one of the things um we did we did get a new uh channel member killing number one thing you became a new channel member thank you for being a member um but one of the things that i that happened at the beginning of the pandemic that i had never had heard before was that california homebuilders were uh saying that before closing they were like oh i know that we ought you offered uh 650 for the house but before you close it's now 680 and that was common practice and i'm like oh my gosh what happens if the buyer doesn't have it i'm there they go ahead and use another uh you know they pick another buyer to buy it like that's in crazy i've never heard that oh only in california and sure enough like three months later they're doing it all over the place they're doing it in texas they're doing it in louisiana they're doing it everywhere and then like if you don't have the money who cares there's so many stories that people had sold their house waiting for their house to be built the house is like in the framing stage and they're like oh yeah i know that you said it was going to be 6.50 but now it's 675 and by the time it gets to closing it's 7 25 and they don't have they're not qualified to buy the house anymore and they don't even care the builders don't care they just sell it to somebody else they can purchase it terrible terrible way to do this we're there again it's all about reading the fine print when you sign a contract because if they're gonna if they have the opportunity to change the price they're gonna change the price and builders contracts are not meant for buyers to be able to it doesn't protect the buyer in any way shape or form that's why it's important to have a real estate agent even when you're working with a home builder question is it legal for a buyer say they have well waive the inspection request after inspection if you close in 10 days on a thursday night when closing set by them was 32 days out then canceled due to inspection is it legal for the buyer to say waive the inspection request after inspection if you close in 10 days on a thursday night when it's closing is set by them without 32 days then canceled due to inspection that depends on your uh contract for your specific state like we we're in as is state so usually all real estate is closed once it's closed it's as is at the time of closing but you you have a 10-day inspection period and during that inspection period you can cancel for any reason but that is going to be uh whatever your um whatever your uh the state's contract says what what do you say there well yeah i'm not really i'm not totally understanding her question but yeah here in montana um you can you know you can cancel the deal because of the inspection for anything you find but after that you know you you're in if you kill the deal for whatever reason that isn't something that's written into the contract then you're in jeopardy of losing your earnest money yeah yeah and and then here in louisiana they hold them the title attorneys will hold that until it's uh they you go through like a arbitration and decide who actually keeps it uh uh jaco says as a new channel member thank you welcome to the channel and you know now you have now that your members you get this like little icon at the bottom that shows that you're special my channel members get that in the crate thank you to all the new channel members that have joined today i appreciate you question are unsolicited calls by to buy my house serious i get them for for my house and for my moms yes they are serious they are serious go ahead yeah so we get them all the time eddie just my eddie my producer who's also my husband we have we have rental properties right so at my rental properties we get this from this home investors company it says um dear property owner doesn't even say who it is we understand that you uh are the owner of this property if you're interested in selling and selling fast our business is selling houses in multiple house packages we rehab that them and then resell them as to investors you get cash you sell directly to us you sell your home as is and you close quickly so most of these investors are cash buyers they want to close in like 10 days they don't care how you leave the house because they're going to flip it and either turn it into a rental or they're going to flip it and sell it to other investors do you have that in your area will oh yeah they're everywhere and again they're they're trying to make money they're not going to give you you know they're looking for a deal themselves and they're looking for the person that's desperate and doesn't want to deal with showings or they need the money quick or whatever but if they if these people really look at what they could get for the house um i guarantee it'll be more than when these investors are offering sometimes so it is in your best interest to just if you're wanted off your hands like i've seen it where people were like a family member had passed away the family member was a hoarder they really wanted nothing to do with the house they didn't want to have to clean it up an investor said we'll buy it as is with everything in there and they were like good i don't want to have to deal with that nonsense so they were happy to take that check and whatever they ended up making as a profit afterwards they could have cared less because it was off of their hands so in some cases yes there's nothing wrong with going with these kind of companies but if you have the regular standard you know single family dwelling and it just needs a little like love just little little touch-ups here and there don't don't do this talk to a real estate agent and see what you really can get for your house because you'll probably get a lot more than you would with a company like this for sure yep and yeah you're right obviously for some people they don't mind that they're maybe leaving some money on the table just so they don't have to deal with anything and that's up to them but you know i they're all all these guys are offering less than what you could get on the open market right right uh question if if you hire realtor and title company for owning financing do you have to pay for them yourself since there is no more mortgage to pay them um yeah you have to pay closing costs yeah to pay closing costs now if you're buying uh buying a house the realtor fees are paid by the seller not by the the owner so i mean by not by the buyer but uh i don't know why you would i don't know let's call me i want you to call me personally so we can have a discussion my contact information is in the description so we can we can talk about what you're doing with your owner financing property because i don't want you getting in over your head sometimes those order financing are not necessarily the best thing in the world and i want to make sure that you're not getting hosed and they actually own the piece of property itself we got another question we're gonna throw up there eddie i see some i think eddie i hope eddie didn't fall into it because i hope we did trip don't here you guys would realize would real estate market be fixed if airbnb was banned blackrock is banned from buying residential real estate and foreign investment band uh would with would it be fixed if airbnb that depends on the area like i don't in new orleans um we can't have airbnbs anymore and they were building condos like crazy different airbnbs in the hotel industry lobbied no more airbnbs throughout new orleans so all those condo communities just like shut down um but i don't think that's gonna like fix the problem because airbnbs in our area for for uh their vacation rentals and their condos they're not single family dwellings now blackrock on the other hand i i have my own deep hatred for companies like this so what do you what did you say well well it's interesting we're having that same discussion in our little town right now about the airbnb thing and there's a group of people that wants them you know reduced in our area but i agree with you that's that does nothing i mean um it there's already it's not like you can have like my house for example i can't i can't do it as an airbnb because we're not zoned for it and there's very few places in this town that i'm in that um that you can even have airbnb so i i don't think that's gonna solve anything um the other the other things the question's gone now i can't see but um yeah i don't there's there's so much that goes into real estate markets and they're all so different and they're all so local that i don't think there's a one fix you know a one-stop shop or a one fix for you know the real estate market um yeah i agree and the one of the things about blackrock and blackstone and the y came into they finally got found out they've been buying up uh single-family properties throughout the united states and using them for rentals and then that becomes a package for hedge funds you know it's it's just one of the ways that they can offset how much um inflation has gone up so they dump as much cash as they can in real estate that's what they've always done um they just kind of got caught and it's been one of those things that like in those big metro areas where they know they can get the most return on investment like austin texas and some of the areas that have increased exponentially sure enough they're the biggest part of those markets is ends up being these corporations we don't have the foreign investor problem like they do in in um canada because apparently foreign investors right now look at the united states is like oops i don't know if that's already a place to to invest right now but um canada's had that issue for a long time and they've actually like made laws so that foreign investors couldn't buy real estate because they were even buying it and leaving it empty and didn't care they just wanted to have that for a future for a future commodity which is crazy to me so um i don't worry about them i do worry about big corporations owning too much real estate i do worry about that a lot uh question any any idea if montana market will be affordable for locals again that's a you question all the way oh come on christina what do you think i think it's going to slow down a little bit but unfortunately kova did not help um our market for locals uh everybody wants to get out of the big city now there's numerous reasons for that i don't want to get all political but um that's what we're seeing is everybody fleeing the cities and the lockdowns and the you know on and on so will it be affordable again i think what's going to happen is um these companies here are going to have to start you know in order to have locals or to have people work they're going to have to start raising their what they're paying people to get them here you know like i said earlier there's already places in town that are closed and this is the height of our season right now and there's restaurants that are closed in the middle of the week and it it's crazy but they just they can't find they can't find people um so yeah i think i think i don't know if affordable is going to be the right word but you know i think it's going to work itself out over time it it always does um right now we're just not nobody was prepared for this nobody predicted this you know who knew that the world was going to turn upside down a year ago i mean nobody and and we're just our little town that i'm with right now they're just you know i did a i did a video you know kind of following yearly christina last week on tiny homes in montana well they're throughout the state of montana they haven't the laws have not caught up with what we need and it takes a while and unfortunately in montana this is crazy we're one of i think five states where the legislature only meets once every two years which one could argue that's a good thing that they're not making a whole bunch new laws all the time but on the other hand when something like this happens we're and they just met this spring we're waiting two years again until anything gets done so yeah it's kind of a kind of a crazy deal right now and um if local businesses were smart in your area they would buy a piece of land where people could um like basically park a tiny home there and they could rent the space out so they would own the home but the people that uh like own the businesses they would get rent from those spaces and then that way they would have their employees be able to be right down the road to their to their businesses i mean yeah that's right that that's a great idea except it's not allowed i know that's what i'm saying like you you're gonna allow no you don't have mixed-use property that you could do something like that there's no mixed-use land in in montana at all or yeah sure now in our area that you they've zoned everything zoned and tiny homes aren't a thing and then you've got the the hookups and the the setbacks and the you know a million things and and they are talking about it obviously now letting having tiny homes accessory dwelling units that they they will allow because in the past you know then that's the thing is people that have a bigger lot may say well i'm gonna put a house on here and then use it for an airbnb you know that's not helping the the um the locals or the the workers but it you know it's capitalism somebody oh you can put a sure you can put a little house out there and they're like great i can make an extra 800 bucks a month thousand bucks a month whatever and rent it out you know weekly you know so that's there's the dilemma we're in right now in california you can't do that like you you have to you have to run it out for your long leases they they specifically state it states you cannot turn your accessory dwelling that's on your property into an airbnb and they'll catch you sure and and they will here too i guess what what the the problem with that we're getting running into is you know how far do you go as far as telling people what they can do with their own property and what you can charge for rent you know that's the thing if you know you could rent it even you know monthly to somebody from out of town a three-month lease for a whole bunch of money so they can live in whitefish for the summer you know you're not helping the worker that wants something that they can afford but if you are asking for a permit to have this type of dwelling on your property you're already you're forgoing the fact that you're wanting to rent this out to a vacationer so did you get that permit it specifically says this is meant for long-term living use your year-long leases that's part of the permit process so they can whine all they want but if they want this on their property then that's the way that the the permits need to work out people like to whine what question we got there next clifton charles says question i found a multi-family home that is priced high but rents are uh price low for the area should i offer 20 lower than asking because it's been on the market for a year in hedging against the a downturn dude what do you do with every offer it's the worst that can happen you offer low and if they take it you win if they reject it you make another offer you know if they counter then you know what that you know where their headspace is at what do you say i i couldn't agree more you know worst thing they can do is say no i always i put everything on paper like let's type it up i mean what's the worst they can say is no yeah i would i mean and multi-family dwellings are fantastic for renting so yeah i think yeah just go in low and see what they say and tell them like look dude you've had this for sale for over a year you want to get this off your hands or you're just playing the market you know show them what they're working with show them what you're working with james says i know someone is considering living in an rv what kind of property if any do you think he should buy for in-between trips etc what's your opinion will um what i i guess i don't understand in between trips like where he's going back to or where he's living in the oh okay i get it um there again it depends on where where you're going to be living your you know what you want to spend on something if you can rent it out while you're gone how you can rent it out while you're gone i mean there's there's a hundred different possibilities with that question uh well if it was me and i was trying to save as much money as possible and you wanted something easy to easily rent out and that's easily something that you can fix up i would put a small manufactured home on a piece of land that first of all they rent out super easily if there's anything goes wrong with them they're super inexpensive to fix and that would that would be my that's what i would say but if you live in a vacation area i would say buy a condo or you have a like an airbnb situation or a timeshare type situation so if you go back into town you can go into that um your timeshare that you own so here we go there we go eddie's got another question for us here it is ryan says do do uh don't buyers finally pay all of all costs this is what this is what exp is is pitching with their air new and different model where they advertise without the mls and don't pay buyer agent fees that saves the buyer money i work for exp so i don't know what you're talking about this is news to me and at in the state of louisiana when the when the uh closing documents come out the money that's paid to the brokers on the buyer side and the seller side are paid out by the seller and uh of course that those fees can always be negotiated there's not set in stone like some some agents will charge a total of six percent some agents charge a total of five percent some of them charge a total of five point five percent i mean it's always negotiable but um i've never heard this do you know what this is uh will no i do not work for exp but um i don't in our area and every mls has its own rules but that would be illegal you can't advertise if you're an agent often else right so i'm not yeah that would surprise me it i i well it can't be a thing here but maybe in some states it can but not here yeah yeah like we can't do that here at all you can't do that next exp people doing christina no i've seen people like do this thing where they'll say um i will list your home at like a one percent fee because they know that it will sell fast so they're willing to take the big deduction in a um a fee because they know they're gonna they're only gonna have it on the market for a few minutes they're gonna get it off the market because they're gonna get an offer right away and they're just pretty much they have a whole team that's babysitting the whole entire deal so they're willing to do it at a one percent and i've seen some brokerages i've never seen our brokerage but some brokerages charge a fee just to put it on the mls where basically they're just putting in the information your home they do not do any kind of negotiations or anything else they just have in the mls so other real estate agents can look at it but i've never seen this model that that this commenter was referring to question what do you think will happen to mortgage rates once the federal reserve buys more than 40 billion in mbs securities they are currently buying a month this has been going on this has been going on since the last crash what's your opinion um well i agree i i think people get you know the the headlines and you know it's all about fear-mongering and um i don't i don't think you know i'm not concerned about the market um i think in our area it's going to be great uh mortgage rates are going to fluctuate i i don't think they're going to skyrocket anytime soon but again who saw last year coming well i will say this if the or mortgage rates go up yes home prices will go down that's inevitable whenever low uh mortgage rates are extremely low prices go up or whatever whenever mortgage rates are really high prices go down but uh the fedo is always buying back mortgage-backed securities they've been doing it for eons they they've been doing it for since the last crash they i still they still have some of those sitting on the books i mean that's what they do they always do that and then they slowly trickle it back into the market again will is very handsome that's nice carly will you're sorry look we'll shorten red i am i'm gonna have to show my wife to replay this because she's not gonna believe me yeah somebody said it carly did all right do we have any more questions eddie that you want to throw up on the screen there whenever i say throw up i always think that's terrible if you guys haven't yet and you were thinking about it at the top of the uh chat there there is a link to my friend owen has smith and his also known as owen video here on youtube he has stage four cancer and is seeking alternative therapies in order for his cancer of course his insurance doesn't cover it so he's asking for donations and we're doing a fundraiser for him so if you have a little extra money if you wouldn't mind please donate to my friend right here and his family you know he's a young guy with young kids and we just everybody just loves owen he's such a nice person so just go ahead and uh just donate if you can i really appreciate it i really appreciate it eddie is there questions i guess there's no more questions well will i want to say with that and since we've already embarrassed you i want to say thank you so much for joining us on a sunday if anybody has any questions after this live stream is over please put them in the chat for will and i and well you will check throughout the week and answer any questions anybody might have about the montana housing market i certainly will all right if anybody needs to get a hold of you will how can they do that well i have my own channel called living in montana and it'd be great if you guys subscribed to that and checked it out and all of my information is on there you can get a hold of me at uh teammontanalife gmail.com or my phone number and everything's on my channel living in montana living in atlanta all right mr will thank you so much and everybody who have a great weekend and if you have any questions like i said you just go ahead and put them in the just uh the comment section below bye everybody happy sunday we're gonna do a little we're gonna do a little dance to say goodbye dance will you got to do a little dance he's not going to do it he won't do it he's not going to do it i don't think eddie's going to push the end broadcast he's going to just sit there and let me be embarrassed oh look at this i need to come on more look at all these people yeah rebecca knows you

Channel: Kristina Smallhorn

Views: 12,643

Keywords: housing market, housing market 2021, real estate, housing bubble, real estate investing, smallhorn, foreclosures 2021, us housing market 2021, housing prices, housing, housing market 2021 forecast, buying a home, housing crash, real estate agent, realtor, kristina, kristina smallhorn, 2021 housing market, Housing Market Regret, multiple offers on a house, bidding wars, housing market crash 2021, housing market update

Id: _bZ7FbKT3iQ

Length: 60min 34sec (3634 seconds)

Published: Sun Aug 08 2021