Aug 15, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Beyond that mortgage your work we've done cheesy. In Austin where you just authorities since 2001. Have a question for John about your mortgage calling live at 51239. And thirteen seventies now here's John. And welcome to the pseudo Communist -- -- see here is my. Co hosts producer and director fight here at my office my caloric take candidate John they're great they're great we also have special -- Witness today David four hitter Dave Floyd and he's a candidate for place five. -- a coming City Council race -- -- -- -- -- racing now I'm racing now yes but -- the upcoming elections I have a friend. And we're so we welcome your calls welcome emails the phone lines are open right now we're 51239013. Seventy that's 39013 seventy. You find us on FaceBook for monitoring at the polls showed just search for Austin mortgage reports. Can also tweet me with a joint -- the -- assuming email John and also mortgage report dot com. We're got a great show today as always every showed it post this on this and I'm excited about. We've got a real live politician in the office here. Throughout the Sox -- and our retirement affordability transportation. From the city services that are. Exists in May be changing the future. And -- the overall -- economy. We're here. Dave serious your calls against the call we're also gonna caulk talk about some mortgage related stuff is more a mortgage show. You know. Move up buyers. Have a real problem right now and that problem is -- -- inventory. So it's good for them because they can sell their house easily the problem is there in north they are gonna finds Mumbai. So let's talk about debt and it and -- relates affordability Austin porosity and talk about some. Mortgage programs are are way it is that you -- -- a mortgage to you to make you more feasible. And then we're gonna talk about. How to BR competing offers if you are buyer out there. And we're here to multiple offer situation there are some specific techniques that you can use to make your arsenal of more killings were in Toronto the first. I want to start off talking about an article -- read this this week. That really come RE in and got beside exempts -- sort of optimist. Most the time and and -- ER I really do you think. Austin is on a great pass and I think this article kind of releases so there's a guy out -- named Bill McBride. He's got a blog called calculated risk. And the reason why this guy is so well known in the economic Carrick and you were among economists is because. He's one of the few who mailed housing crash he called it early on and you know said you know we're gonna we're gonna this is a bubble and it's gonna top out right back when we were also -- -- -- -- remembrance. So he but he also called the bottom. So he says and he accurately predicted in 2012. Housing was -- bottom out and start going back up again. Is has got a great track record but this is an inch and trim and in an area he strokes and ran down. You know we've we've heard. You know the -- population aging. And there's going to be this issue with. The baby boomers are slowing down their spending can -- -- there were getting retirement age. And and that's part of what's affecting the economy and then you know who's your support them in their old age is another thing that there's concern about with this I think answer some of those questions or concerns. One of the things he spotted was. -- the largest. Group. -- -- -- cohort so if you look at different age groups will say you know to speak you know. Children or folks that are twenties to 45 or 25 to 29 and we look at that the largest group right now -- it is twenty to 24. Plus the largest pursuit for partly Susan price repair that price -- -- -- -- -- -- -- -- -- and that population ranks dangerously so. They are obviously gonna get older and as they get older if you look out. Ten years from now they're gonna be in their early thirties what happens when people in the early thirties. Faith they buy houses they by Mastercard's and it all starts with they usually make more income right Bret -- So this group is this coming up through the ranks and his argument is that it's part of what explains why. Apartment renting is so hard right now of course we look at all all the time -- -- you know how hard it is to rent a place in Austin but I think. He is argument is nick -- nationwide there's a lot of winners right now the F it has not just the economy and people struggling it's also just the fact that there's a lot of young you know people in early twenties. You know he puts them right absolutely -- ready to buy it that's right it is exactly your great example answer and so. I think it's great news for me. -- I think about you know these. If this analysis is correct means we do have some good years coming to the -- in the nation as a whole. But the -- in Austin as it is going to be included that right yeah yeah. So he takes it one step further and he kind of analyzes in common in where folks capital and income when -- 125 beat the average income is only 30000. She's -- expenditures consumer spending is only 30000 as you get up into your. Around thirty you're spending about 50000 year as he did it become a cap on around 55 so. You know these folks are growing up. And they're going they're kind of the answer. -- all this concern I think for at least one response to it -- it's not really got bats like we're we're gonna see some nice growth for next we're going to be OK you. We think Dave has -- liked Austin. I was -- early it's Austin well Austin is -- is a young -- And it does have a growing population. Bowden. The population has seen -- -- we get people to come here -- university. And the media people to come in from Houston and Dallas and so probably your largest influx. As well as from other regions around the country to California -- Chicago -- New York Florida. But yet usually we did industries here that have been hot had been. Have attracted younger people a lot of -- software. Creative arts additional media. Companies like that and with the university to giving a magnet for talent young talent that comes here and -- today. Current and is it true that. And this is just my -- -- racial group in Austin I could be way off on this but is it true that in some cases. When you reach the management level of these companies a lot of his management jobs have been in other states so they have a presence here. Little other -- right but what's different now in the last ten years is you have a lot of these companies moving much higher paying jobs here. Right and there's been a concerted effort on the part of the city in the chamber of commerce indeed out. I mean still if you look in Austin does -- got a book they -- the book of lists that they publish every year and if you look at the top. Public -- publicly traded companies and Austin you'll see some. Some large companies international instruments and Dell's actually also incident but it's been able to have an -- Adam. But then it drops off pretty fasteners and smaller companies and I think. There has been added there has been. A concerted effort winners continues to be to do it more of those regional headquarters. More does. Offices where there -- were there is management. Into the Austin area so that it's at -- stickier proposition right you come here you're young you move feared to -- get a job you like the city -- and you don't have to ago. Yeah you can you can build a career. So the affordability issue is really caused by. The city council on the chamber of commerce what you're saying he thought -- Well you know we do need to take a break so but we've got a lot more to talk about -- -- -- District five City Council candidate with us. We welcome your questions were 39 of thirteen 73 and thirteen seventy got lots -- talk about on the mortgage -- rates are. Brits -- kind of bottoming out to you it's it's probably a very good time. Blocking a great read through talk about that a little bit we'll be right back you're John she'd see just more report. We'll be back for a moment. It's the Austin mortgage reports that thirteen year mortgage veteran John choosy on top thirteen seventy it's. Yeah. Welcome back to the Austin mortgage report on top thirteen seventy. Feel free to join the conversation at 51239. And thirteen seventy once again here's John CC. And welcome back to show our number here's three and a thirteen 739013. 72 was caucus we have Dave ward here. Place -- District five City Council district five guys is just what you say that because I want -- -- -- It's yeah I can I don't where it is yeah absolutely. Austin's district's five. -- starts of the Zocor. Zocor neighborhood Barton hills. And it -- between the train tracks and Barton creek. Down to mountain west scare Issa wrote where the train tracks actually they they turn south them we remain -- turn south. And go all the way down to slaughter. And while the other part Barton creek park news along the top of the district over to. Brodie lane. And then comes down this they're running between sunset valley in the west in areas that August down to shady hollow. And and it's got that she element -- -- and then it. Covers it moves back over to the east and grabs onion creek. -- -- and that's Syria that you one represent yes. So -- -- sold -- so so what's happening as the real short is that. Explain what's going on whose districts. Well look. Up until. This year really this is the first time we -- geographic representation that. Four as a council also before them we had an at large system. There's a referendum a few years ago and the citizens of Austin voted in 810 district one mayor of councilman into play and so we're now and implementing maps and the city was divided up. By commission into ten different areas. There were. You know and there there -- a lot of as -- any any political districting effort you know when. There were different reasons for. Setting in different districts districts one was the African American opportunity districts they wanted to -- -- and representative. On the council and says that's that was the intent there and then their team Hispanic opportunity districts. And and the others district's three has parts of South Boston east Austin district five up parts of south Austin. And then just date and so. It's interesting to see how leaders sort of east west. And there -- neighbor patterns that are down. In in South Boston and amused when east and west and are now. Cut by eighties north south lines coming in from three and 58. So it's interesting and because this is a new system -- -- learning as we go from him there are almost seven candidates running this is unprecedented. Tomorrow which -- is scary and exciting. Yeah -- -- get so what what made you want to run for what's your background where he what do you. Yes skin in the game here you got -- business -- a hundred undecided. In your district that bigger trend. You know quite well it was a. Well I've finished it and running for office for a long time I've been actually public service since I was a kid it's one of the reasons it was law school. I am an attorney I worked. I practiced on and off I worked in the insurance business for almost seven years and then that was a small family business that we had and so -- Austin. And my dad retired and my mom retired and they were they were involved with -- so I decided to give back into -- private practice gonna move away from. The insurance based warranty regional business. Space and doing missed the slot. And then doing and this is consult. Yeah and so win. I've just I've five been very involved with community groups for expense seven years. Starting the young -- business league habitat and professionals. -- got -- -- Boston chamber and fund raising its along senator I got more and were. Involved with these community activities and really became Anderson treaty service. And that's how -- It's like kind of funnel all of this into. A lost in the village helping people Austin. -- a lawyer and a business person and I'm concerned about. Where the city's going have been watching these transportation issues since I was a kid -- publisher since 89. And I went to Austin time wanted to -- Texas. I'm visceral it's critical mass in these issues and World Cup well things are coming to a head and soon. Yeah it just seemed like a good time to go ahead and jump and I'm. I want. Help serve the people South Boston and I think -- the best way to do it. But I think it's great returns to his credit. I'm really I can have a little bit of an agenda here that that I wanna cover because. I think this is a great thing they're going to be is these district this district format. I think it is gonna really help. I think you could help the affordability in traffic issues in the city. And where argue with kisses. There's such issues draw at a downtown with your town lake. And there's people who want to live and work down there and you know if they live in this bill would work they wanna travel MF for recreation rent so all that means traffic. Rent and demand for housing and driving around president. And with the previous City Council system. You know I think that. What people say what I hear is that there is morbid if true that there was a lot of emphasis on downtown with a lot of these City Council to live downtown. The actual City Council there that they -- -- regular is downtown. And that's just what's top of mind to them so we're making. Allocating money wherever it insistence that -- goes downtown but these districts. What here here's what I think's gonna help. -- I really liked the idea of thinking. Why -- we really created. -- parks -- this town. Retrieved it and ending for example there's a great partner an onslaught bracelet off slaughter years ago and I know the name it there's a huge part. But you know it's it's sort of kind of kept up. I mean maintain a minute it's it's it's a congress a lot of it is trails on their but if you invest is really didn't throw money down there. You know built some fields. -- in -- pavilion. It and created this draw for people to go and enjoy themselves you -- in a water feature a -- or something in you -- -- this all around the town. And you know I just -- I think he can really. Draw some need to shop downtown and create you know -- with a domain Stein and yes -- -- little pockets around town but if you just beef those up and start reality more money to these. These areas right. No I agree I think that we needed to to spread out. Some of these resources around the city and yet having everything concentrated in one place that does lead to congestion and every news. Can we do have great opportunities like with your saying with the domain I think that's a great idea in terms of building up another business owner had that concept to move. News for business for instance and penalty gallery in Houston but the parks the same thing I think that if you. Put all your eggs in the one basket parks why you're gonna need it. Too many folks on their but if you look at some of the stuff has been done up in northwest Austin like walnut creek park. Mountain. Is a good example is him along park up on the lake I like to mountain bikes and I kind of thing in terms of these mountain biking perks that. Used to be Greenbelt partly green -- duplicity I don't really crowded now you got Waller creek and it's biking trails you can go up salute the city park off a long. Adam and that's. That's eased the burden on that central resource and that's a lot of people who further out. And team -- create. In our areas without having to travel down somewhere and par and play with the people but I think he's this district ideas Comerica. And help army I think because you're going to be fighting for park in your district right over the lieutenant aspect. Yeah totally yeah I know I'd -- I agree that's where these great about this district system is that before. You really did have people concentrated. In you know downtown part part -- people increased. Around. And sometimes I mean it's natural right if you lose an area -- different scenario you can focus on my area but. So he's quite large and their people all around the city that that. That haven't maybe had the same input as they're gonna have now won this district system and they haven't had a a person he's got a mile pieces. Their turf carved out. To represent and that those constituents gonna turn. Call and and ask him to say look there's this great market here why can't we have more. -- built into her pool or maybe some by trails or something out there actually will be a point person I can be contacted. So there is that is that. Who -- jokes it was justice for system DC is advancement. I can we talk from parks Howard came and it apart -- What are the areas can you see. That this is gonna benefit. Well I think it'll be good on the and for transportation. And infrastructure. Sometimes when you look. If you if -- she focused on the core of the city -- to focus on downtown. You start to gets. You -- for all your race and that basket to. Fixing a 35. And turns into you. Weller expressed should be burying 35 in -- -- on top -- it. -- maybe we should BM. Rail doesn't look you people begin to look at it in terms at a and of -- to get around downtown as opposed agreed commuters in from the outside would really like with the going back to the roads and facing 35. They're seen as to why and it killed there is a great example of an intersection that needs to be fixed there either intersections around town that. Maybe haven't had people pay attention -- that now will because you've got -- from all over the city. Looking out for these interest. And then coming back and reporting to this City Hall. I so -- I think Jurgen is you're gonna see. You may not seem the same concentration of projects. In the central authorities -- before which you are gonna see stuff spread around and and perhaps. -- were to balance. Madden. Getting used to connect highway system there were always talking about the -- and he is gonna have -- for instance current Catholic. Are your three dinner by the way because offense. -- I was fine. But I came I came up 360. People were backed up all almost all the way to the station looked horrible. But you're gonna -- stroke or you -- the opposite direction I was doing in the opposite direction until very lucky to be you know suppression. I just talked to a client that was opener in California for a week. San Jose area I think can and they were like an embrace of the traffic is terrible affair but -- really when -- bad you know it is there's traffic Brett. In F five lane highways and so it was just it was moving red I say that to about. Yeah our our commute on the -- -- three quarter -- and yes sir Trevor but it's moving it's not like -- back. Via you know and reporters -- about if the -- Yeah there certainly are seen it too was that. With district representation and really. More of a focus we you've got somebody you represented discrete period of that has -- clinic. And lately -- -- a couple of things in my neighborhood there were neglected and there's a lady in my neighborhood that wants to you have a four we stop it and for instance. And is -- and all sorts of problems with the city doing this within saying it's. She's told me that -- older. It's too expensive it's not in the budget and I'm thinking. You know he -- on the golf course last year. You do things that cost a lot more than what I presume putting -- -- -- would cost them you know it's it's little things like that I think that the that this new. 101 system will help to dress up more that the -- granular level. -- and the smaller. More localized transportation resolute in its report which I think attorney is going to be great because it's. You start fixing intersections. Aaron. And fixing little things but those little things add up into big delays right so if you can have a renewed focus on. -- end. Localized improvements then you'll probably see greater fluent numeral system -- The one of the challenges we have here is it is it is unit price announcement that the cost of housing has gone -- and and folks. Do still wanna live there's a lot of folks and we don't live down -- close to downtown. And our client's story until we come back. Where they own a house down near old -- And there equity. But they feel very stuck. And because if they sell that house there's. To replace it and upgrade. Is gonna cost a tremendous amount of money being. And and so these kind of issues were running into your I think your rights to some mortgage options that we can kind of talk about to reform -- trickle out how to. How to make that transaction work in a way that it works so you're day Floyd. District five council. Candidate. For the city of Austin you've got Jon -- a year ago. My -- here we're here to answer questions are and immersed 313 seventy. But he got a mortgage question -- to question the City Council question we'll hear from him. And we'll be right back. It's the Austin mortgage report -- thirteen year mortgage veteran John QB on time thirteen seventy. Welcome back to -- -- to mortgage your word on top thirteen seventy. Free to join in the conversation at 51239. Out of thirteen seventy once again here's John CD. And welcome back to the show on -- she thinks he can now find me on FaceBook hooked up Austin -- support people here on Twitter Johnson to dot com. Which issued since he's been if you take. We'd love to answer questions don't call us just this in this a prominent -- question. So what are the problems that folks have run on Austin is. Well it's it's a great thing that Barry's gonna so it's created a lot of equity. And it's created an opportunity for folks to -- maybe they were upside down previously. Maybe it just didn't have an effect we will you know now on their lives this where. You know. They've got equity they've been putting off a move maybe they -- maybe they have some job issue and the downturn in the economy and -- other jobs stable -- wanna move. But the challenge we have as is that. Houses Celso quickly publicity for your house for sale. You put on the market the and offer within a couple days hands. You. In their -- the buyer wants to close in thirty days nine of thirty days to find your next dream home. And win. One there's not that many for sale because in the ones that were for sale or or depending. And the ones that are hitting the market there -- five of their offers on the house and in so there's no assurance you can buy that house. You know if you look -- so -- years. Ago when a market wasn't quite as high you know house was on the market a weaker to end and you kind of you had a chance to kind of look at it mixture you liked it. And the -- offer and and as long as your offer was. China if you can get that house and there are some confidence you can get that house now it's like you can offer 25000 are grass keystone to that house. Is just a different environment so. It's it's scary to have your house under contract. And -- you have to move in thirty days when. You know you're in this environment right so one of the ways that we've. Some of the strategies have been using a more kind of share effects because. If we start with number one so. Let's -- have hundred -- and equity in your current house and and you wanna put that down on the new house. If you can afford if you're incomes -- and have you can buy a second house and and we are selling your power house. They're in the mortgage skyline is -- -- to do that you can own 2000 on the front problem. And you can put as little as 5% down on the new house in some cases are moving along called FHA into three and a half percent down. And so. If you can put at least let's just say 5% down in and you can afford both payments your income sign Afghans and another question well who meant so much money well. There are a lot of people out to make too much money it is a lot of folks out there. And they can't afford both payments. They may not feel comfortable for them but that bit the mortgage guidelines would allow them to do if they if they. Can -- account for whether it and so what you can do is buy the next house. Before you list your house so your house ready to list just -- yet you look for the new house when the new house. Comes in the market find it you get an offer and if you can win that offer these approvals 5% down go in close on it. When you sell your house and you -- a 100000 now. You can and pay down near the mortgage on the new house the only to 5% don't say we can paid out more blown down. A magic number out there are a lot of folks don't like they don't like mortgage insurance what do you 5% -- you might have to mortgage insurance when you pay that mortgage down. Imagine Emerson 80% if you pay down below 70% of the original purchase price for their -- by -- house he bought from the mortgage insurers will drop off. And you don't have to refinance our folks think well -- -- -- higher payment we you can do with caller recast. And what recast is as you looked. Servicing under no but you're gonna make this big. Principal reduction on the house and don't have a process by which you can. Pay that. You know make a big principal reduction and then they will recast the payment -- -- re -- with the -- it would be at the new lower loan. Wow so. That's an option now it varies a little bit from -- middle under what that. Process says there's some Casey -- to keep the -- a few months before the -- to do that but. It's it's very available most lenders will -- out there another option. Is to setup a second loan excellent city -- you know you're gonna get about a 100000 under current home. We'll going to than purchase the next home with two lions get one lone. For certain amount and into the second alone for about a 100000. That we when you sell your current house you can just pay that second -- off. It's clean and easy to pay off your left the payment the first one almost is if you put the money down in the first place. So that's another option there other options to have seen out there one of them as. If you if you don't let's say you're gonna have 5% down or maybe have a beat you would kind of use of your savings general -- Well a lot of folks have forward case the most forewarned cave what you borrow up to 50% of the value. And so you keep it in the loans are usually very easy to get just takes a phone call your 41 K company -- a charter company HR. You get these laundries legal charge a lower rate for 5% usually and you can just. Axis that money. Put the money down on the new house. And then when you sell your current house just -- on off. If there's usually very little or no fees on us. It it may sound a little risky but I'll tell you in this market. You know. You're gonna get a Sawyer her house in Myanmar is just that it's just that strong and if you work for would've experienced agent now of course I know several refuse referrals but. They can do you really by the ever house himself for an -- can do this with some confidence your house is gonna sell pretty quickly. Lastly wanted to mention another option as you can please your -- home so. You know. A -- I heard this from -- from bars want one bar today called Austin. A Boomtown. And the next -- called the gold rush hour that twice today one of them heard on the way to show started and my eighteenth and end. If she was saying that she was an airport. And was listen a couple investors from out of town. I don't know if they're flying and flying out but they were chuckling about amateur gold and gold mine that's for instance you well. Why not participate -- right so if there's a way to by the next house. Without selling your current home. Might be worth it may be then you have two houses appreciate in this in this in this gold -- remarked you're right the Boomtown the -- -- so. In order to lease your current house. If you need at least income to qualify. So this is might be for the person can't qualify for two payments they need -- didn't quite have enough income if you have 30% equity -- your current home. And you have to provide serves in the venture of six months or reserves or whatever payment as DF six months of back in the bank. Then you can be sure current house and we can use that in come -- -- fine for the next house that's that's another option that -- I'm seeing folks do right now. I think it's great for the extra Austin's great there's so many opportunities out there. But it's amazing as some people filled with -- because. They don't know how to -- storage is how to orchestrate this transaction in a way that -- come forth and so furious here like dead. You gives the call worth 313 seventeen also -- During the week of nine through -- one of mine through it checks when he casting office in time but look to help you kind of talk through these options a lot of forums and talk to right now. They're not they're thinking six months out. They're just beginning to think OK and bruises and Jesus right now but what if what if I did this or what if Favre drivel somewhere else. -- So it's called three or thirteenth so new that day for your. District five council candidate. They would actually talk about how -- a lot to say. Well what you mentioned with the home buying actually plays into the affordability -- -- and down. With that you know -- we keep hearing people talk about possibly an affordable and candidates keep bringing it up as an issue. Them on -- platforms. But really what is boiling down to his social blinded in her out of balance right can you get. Lots of people living here I think it's a 110 net per day. Into the Austin area that's crazy to cancel the people. And he goes somewhere right. And whether it's buying a house or it's moving into brilliant. Me and the supply and we just don't have. Adequate supply. To keep up we can't. We avenue building fast enough which -- fast enough. They're different reasons in different areas. Well I think people. Where -- where OK if you're building where you're building right you're doing. Five to ten miles at least out of town -- people don't want to move out anymore we used to be are used to be the dream about the suburbs this -- and it's not the dream right now. Well I you know I think it is for -- it depends you know for younger people. And childless couples a lot of them are moving into the city -- to enjoy all the amenities of urban living the aluminum viewer reaction in the room dad and then I think we've done a great job loses some developing downtown pulled entertainment districts absolutely you know. I live very close to downtown I'd get down into the studio time it'd be enjoying it. Differences or cultural and answer you know whatever. But. Am I can just save. You know based on people I knew who moved out to the suburbs a lot of them have moved out to around Iraq. Leander. Porsche Irish area. Because they want to buy a larger house and they want. To send their kids to school and one of the school one of the suburban school districts. Adam the brother trade offices and it is sort of like. You hardly bargain as traffic is going to be horrible. And -- absolutely horrible and so that's I think people that don't. Have the need for a giant suburban house or. Don't care about the school district key -- and find something down in the city that works pretty well for him and it's going to be expensive but time and yet people. People have been driven out of the city died. The high housing costs of the fact that you can only by a small house for the same amount of money -- would buy -- finalists up and if you you know out and leave it -- Yeah I assume. With that I mean you have C have development -- in the suburbs which they are building houses a dividend in the city. You guys I mean we're building more apartments for the younger people don't we begin. And we got summoned to little -- but it's not. Lot of the redevelopment isn't doing his bass maybe is a good. And a lot of issues but these permanent office. Decode the good folks who have held projects. It's become very expensive to build. Down in the city. Building further out transportation. Becomes an issue. Yes and it's it's really like a complicated matrix of factors. -- you can look at but the core the core issue does come down the supply and demand. I think positioning. I think that. I think that. Dozens that lived in Texas. In Austin included. I think what's and what's gonna -- what's happening -- and what's gonna happen is that we're just gonna have to shift. Where reallocate our farms and we're used to. Every new car every couple years. The percentage of our income goes towards housing. And taxes. Has been smaller. But we've had more points. I think. Where folks from the northeast or California. I mean you have folks that. Here think you know own a three -- -- our house out there. That their house is a million dollars or whatever it -- dollar summer salary and and watch how they do that you say well. They just I think my theory is they you know from what I've seen in you know when I look at folks credit or -- earlier credit reports of a mortgage yeah right. -- folks that move in from the northeast and you know northeastern there in California a community -- where housing has been much forced -- to -- -- And it just how much debt as we hear they just don't base they have older cars. They maybe have one car Harrison to. But they have a -- in our mortgage. Where folks right here patent government Cuba have happened almost -- more remarkable there but you have but it it it and so they just get used to that. Allocating more money towards housing. And less towards. Consumable -- -- Smith I'm trying to and I don't know I mean I think it's just a different. It is -- day you still spend the same amount of money on your discretionary stuff. But you don't have the new car you don't have to vote for you don't. Yeah -- I think that's what's going on. As a former better -- can tell -- that's probably the right decision. And I don't know but yeah I mean it it's if you can't put more into -- there's a cultural shift you know on people putting more into. Incident housing that the -- that's actually good in your building equity and in real property is supposed to. You know the depreciating assets well. And it did they are you happy enough to -- -- are you happy it is our people in Austin not happy -- is not a formal. I don't think so I've just bodies have been to the tradeoff is -- get better services you get better parks to veteran entertainment options. That that. That you know seem to go along with expensive housing news you're getting a lot of great perks. Yes your house expensive but the alternatives. Removing a small town houses costs for 2000 there's no there there's no entertainment -- -- -- so. There's straight up gas yeah I mean I'll say. And the thing area you down and islands soaker and my parents live in -- -- and I will say that that. I have run across from starting with -- Mom and extending out to the people that you know about these houses awhile back that bottom maybe 2530 years ago. The houses have appreciated. Much more than neighbor spot ever I may be a 100000 looked it over. 500 granted prior and so we don't have income tax here we have. Property taxes and your pain in his every year. A lot of these folks now they've they're older maybe either semi retired fully retired on fixed incomes. Or neutered they're just -- some of the home setting ages but it. They don't have. Their incomes haven't kept up with -- so there haven't challenged they're having a challenge yeah yeah yeah answered definitely would -- the the permutations and affordability down there has been near the taxes you and and we're paying a lot and property taxes were re getting out there reading adequacy services is there a way to -- these. Should the city of homestead exemption for. So and so that I think if you don't enjoy all the perks that go along with the Austin. -- -- Then. Do you try to -- -- but if you if you see all the great things you have because of the cost of living here. It's proof of it you know I don't armored etc. but we got to go to break -- break we're going to be back we got one more segment here -- since house. There are some more report -- John should seek. And -- we come back. For those buyers out there competing for these offers -- got a few corners Korea. That I few real states isn't talking about her here he's here with them. Help them help you win more office program back. It's beyond the mortgage airport with a thirteen year mortgage veteran John she'll be on top thirteen seventy. Welcome back to the often mortgage report on top thirteen best Indy and now. Feel free to join in the conversation at 51239. Out of thirteen seventy. Once again here's John Stevie. And welcome back to share this time to -- in -- I want to speak to those fires out there that are looking for house right now. And they might be wondering why they're not winning those contracts. Or could be a -- -- somebody's thinking about selling. And Harry you know value way. The offers from the community -- five offers. What I think we gonna find is a lot of -- be very competitive and price you're not gonna have. You know if you -- -- -- -- house -- -- yet so my little boy you're 190s then when 95202. Front two. 05 into tennis it was expected to ten. That's not gonna have everybody is are committed to ten. She gonna have to look little deeper into the contracts to figure out which ones -- the best Warren has itself as a buyer you're for a how to be the best one. The end it's not always. You can always offer more money but is there a way to offer reasonable price. But make it -- this to a buyer or maybe do when councilman who are who offered more money but that secure offer why would they do that right why would they take your offer so. Here's a couple things that I I jotted down and I'm seeing him. And I do this all the time console folks is that it's frustrating for buyers out there really is and and and a lot of times you think was my agent's fault I just right you just can't fund their house or another well. It it is probably not more often not permit agents fault but they're they're in the safe in their in the same -- they're trying to figure out a way to. To keep your offer. I noticed right or here's some pointers if you haven't tried this -- -- in my recent try -- someone is. Don't make it complicated. If you read your contract it's eight or nine pages there's different. Places in the contract -- specify certain dates -- You can say that. You know you want the -- this sort of pay for certain fees or you can say well I'll pay for half this fee if you pay for half I mean you really. The team put all these little parameters and there that fit if your if your cellar. You're -- well Cameron ended tuna thousands -- priced at them when I add in all these little things they want I really knowing that when many fox and -- -- -- a comic company. One way it went off or you know piece of advice right we don't win a -- 200 grams. And I'll pay for you know our war rescue for warned Joseph Arpaio from around survey for -- warrant and just you know I want don't ask for. Well what that far apart on the front yard or. I want you know I want to pull clean before closing or I want a I want -- clean you know -- cleaning service to be done before every man. You don't make it complicated they can just clean museum of TV tuner rent. It's like or -- about underdog just make it clean he's right because that's one option -- you know. That's one thing is to consider current number two as. Make sure of a strong pre qualification under. I have had. I can't tell you how many times the last six months. Clients. I've come to me. Because they can't either offer accepted because of pre -- because they started with a different lender. Lot of times -- -- large banks frankly or can be some -- out of town under or could just be some local and that doesn't have much reputation. And in the listing agents. They know. Which lenders have a better reputation of closing this was a predictable way and in which down. And they will absolutely if you all looks the equal they will take the offer. With a stronger -- behind them -- and so. There's different there's a hold us to be a whole show and talking about that what that means an idea but some key corners would be you some use a local or mortgage bank. Use a local more of it means that they have a local and Ryder. You can take it to the level we actually have your file under written -- pre qualified. That'll make your letter stronger for its pre approved her pre qualified. In in the big banks I can guarantee you. That. They will make it harder to win dealership what are for them from certain lending institutions so ask your real it's about that they'll explain more. Number -- number three. Is don't ask for a lot of concessions. If you can avoid it now some people there just have enough money for the down payment. But they need their closing costs paid that's a reality out there. And there are some ways to reduce those closing costs so if you have to have the slower pace in her closing costs it's probably better to ask you to pay 2000 include costs. Verses 6000 right well. Your -- Or gives a card can help you understand that in some cases but you gorilla for example on -- roughly 200 pounds or alone how to climb office today. By taking his rate from for a quarter of four and a half. We're able to give him back 3000 dollar driven to give my three tells our credit that reduced is closing costs that's pretty nice set of tasks that are having. Is typically costing it 5000 there early 2000 is so. It reduces either it gives it took place where that buyer can afford that the closing costs now I have to ask for any that's ideal. Or if they do need gas is so they only ask for two grand. -- does much of a you know and it's gonna help when -- -- right there. -- wanna talk about is. Make it flexible for the -- so the sellers. Going back to what we talk from before the seller might have over the challenge and they're gonna sell her house but they're not sure they're gonna buy yeah and they're gonna feel little pressure there. -- -- Stackhouse back for say two weeks and to swing apart if you say no talks today. In and that will help them give them the time -- a little bit more flexibility. To go find the next house and it can be boo real caution -- and charge them rent. So that's another option suggested that that's worked on judge rules for a timetable wanna give you a chance to topics how to reach. There any questions here. Guy I'm I'm anxious has talked to folks out in district five please contact me. You can come to my website it's Floyd 45 dot com F a little white DF OR five dot com. -- -- Floyd for five that's a Twitter handle. And when you get to the website you can sign up for our emails subscription. And did information on upcoming events I'm -- an office hours at -- for coffee houses throughout the district so. He can come known it is and have coffee with me and -- reimbursement issues that you care about them. Think we're ready to bring new pragmatic leadership to the City Council ends we wanna represent old district five. Make -- a great place. Well I really appreciate take -- time we can share this what does it. I don't personal agenda I wanted to cover few things with Vietnamese were -- that at this present time the army superiors thanks. Well if you wanna continue to conversation if you -- what -- question real similar questions if you're curious about these new both options. Or how to how to how to win of you know offer had a pattern of -- contract attractive. And this really drainage of certain periods where is calling the office nine to. Zero HX one go to my website Austin mortgage report dot com -- -- report are calm you were -- -- -- were her every Wednesday at 7 o'clock. -- back next week. For more realistic intelligence for Austin.