House Plans 2-17

House Plans by Countybank Mortgage
Saturday, February 17th

House Plans by Countybank Mortgage


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Welcome house plans glad you can be Willis today to get everybody in the house today has gone guys doing great good morning. You know already row based on the show how did she got there based on the show prep was going to be do it is Fatah. Anticipation only if they did talk about those two transactions there we discussed how glad. As a body and that was a riot as alive there's so many ditches a lot of main man on these are wide Panama Akamai because now style we are an endemic though this environment I think. Multiple offer situations. That makes peace broke out how you start how about multiple offers he did not like that. You know unless can handle different perspective does that age and a blue moon I don't mind it among all played when you're on the list besides you don't care well you aircraft. It's never a good circumstance I gotta tell you this hour is always challenging. Because even the even lived. By ear he secures a contract when they wake up the next morning so I don't. Often buyers for one hour we saw that coming yeah when I'm David you rise for this house blue yeah. Slight man at the flea market news sand 95 dollars says the and you can like oh yeah oh how much you could you know you went you have. Flesh out and I can see that. I guess that list I don't let misnomer because that is not always accurate measure that the right number on the table right. And the seller exams. You can you can. Be in this situation where he did not leave a single dollar is just not calculating correctly yet. Got nowhere yet before you start going low. Does not necessarily mean that you're not normally meaning money on the type and EM I I'll I'll be how we should dominant share numbers somewhere. Com a that the percentage of asking price. That contracts are written two dollars and 98 just say it's got to be in the upper ninety's it is and traditionally it's 96 right well nice touch is nice yeah I tried historically to your back yes. Yes but of course historical ratio of course we do what you're we're talking about is in the macro picture every house every circumstance is different and unique socialism and that's where a lot of me if you've got the level of experience you need. Then you know what you're looking Antonin you can develop your strategy. Appropriately. Yeah ams. We will listen if you've got a question about buying selling. Anything to do it the real estate this morning give us call 866. For Ford city 7553. Year course she can hit us on the text line 701. And 307971307. We got Christian JD. From county bank mortgage key part from the buyer's broker. And we're here to is your questions and comments about buying selling anything to do the real state funding here for me this morning but. January was off to against our guest. Remarkable actually. Cal surprise you know. I'm a little surprised I know there isn't one month so 188 take it with a bring an assault but I'm a little surprised that the increase for sure yeah yeah. And and the more I mean in the field this year and probably going to be in the field a little more I'm gonna welcome back. It cheaper and more and more people migrating. To bring below me the numbers. And an entire movement as I graciously moved from medium sized market until larger markets now we end days. To be reminded of that Israeli. I'm an idea back I'm again detoured this morning coming over here it was it was crazy. CNN and then and then the FedEx truck turned over to I'm I think you're at a Wednesday or Thursday. And so yeah we had why FM phones here in Dallas morning news or whatever and for a Cano worked. And they had Lindsay yeah we have a back up from. In 8535. Corridor. All the way to how waste for time. That's all I know I'll stand still in the course she never designed don't do any better that's right before he does everybody sins you have come from Spartanburg and downtown you know I never did he can either walk around. Gardner yeah on the golf car rather work right here. I think that ask can I can mean an end it well I'll miss it they get some kind of problem going door might have to roads shut down for. A cell sometimes Stewart thing they missed about twenty years ago Arenas amassed. So I am well you know I armor wounds when I moved here eighteen years ago I can get them you know who have been Piedmont area and I can. How are still I can get known 85 cent increase. And never tires brakes the end and now I'm like you forget about 35 miles now disgraced Internet really is strays. It's like I wonder when they don't get this work done in this series they get to work no on the nod. Starting tonight and I don't and a variety late that's exactly right we should never did show today we plug that gap take them text or phone calls and he got a question or comment on lands are open 866. For four to 7553. Detects the line is open is wealthy like. Cheers from information may be about our real estate transaction Yunnan seven point 307 just takes on a seven point 37. You're listening to you health plans JD and Chris from Calais Maine mortgage Keith Kerr with the buyer's broker we're going to be talking real estate today. Give us terrain we listen now house plans we're going to be back after this first break talk a little bit about the numbers in Greenville and Charleston we're off to a fast start. In 2018. We'll talk teaming. That's right Elisa and health plans to 86644. To 7553. Is the phone number takes line is open as well 713. Or seven. You're listening to Christian JD from county main mortgaging Keith Clark with a buyer's broker who back in the field. For 2000 and I think I'm the first warm until he had Hillary and daughter found. Well this listing thing is not as tough as you might think it is yeah. Yeah it systems and processes that's exactly right side MBA it's been a January was off to a fast start and tell you this. I will say this I'm rusher way and is it seems like every deal we colors has a long dual layer on dollar economy can't even get deals discount crazy sometime but. The album lot of transactions closing. For sure we'll start in Charleston. Who can't let's start with Dan Charles and I guess more of the same as first Charleston there is they're. A about seven and a half percent to carry every January 11. Under in twelve transactions every last year's 1033. That's up seven point 6%. In the first month. And think about this since 11100. So well above the thousand marked in January yes solidly over a thousand have ended and in inventory. At 4690. Over last year's 5397. That's bail at thirteen point 1%. Putting more downward pressure on supply. In. Months of Lehman to violate a neighbor Melissa. Only get so we'll talk a little bit more about dead but we do have our first caller today we've got Zack and Taylor plays Jack are you. Or has done fantastic. I have a question I'm on the first time home buyer would be looking at purchasing a home my make about 50000 dollars a year. I'm only Bob there's a high debt to income ratio at each child support. I don't go out to root for. The world I'm working out at a USDA load. Is there a I would urge sing as well. Multiple smaller houses I condominium thought it I guess. And I would have my brother my grandmother living with he'd help you know take care they increase their struggling and yeah I'm legal person anyways. Is there any way I rolled their income in duty applications. For the purchasing about how or is it solely based on me and my. Well as he's in general as a general role in the first problem that I heard was that their multiple. Units owned the property. Which from a USDA standpoint even though the address may be inside of USDA. Area that is that. That is most likely gonna create an issue. From qualifying for USDA alone. Yep and an end to it. Assuming all that works out and your buying a property there's no other living Muniz now give me an example we added DL one time zagged. Where a client was purchasing a home. And had a iams Chris I think he remembered it was a allocate a Bubba you apartment ever garage yeah I think your son try to act. And dumb and end and we independent issues because they get headaches living area. FAA because they considered it into unit property in what USDA. Did that Thomas if if you had another piece property that can be income producing. That a year or non another piece of property that another unit than they considered that a problem now they have. But it is still sounds like to me it may be an issue now. On the other side yes or any loan you can always add additional borrowers whether they occupy our don't occupy Iraq. For their income now as you can't really add twelve but coming technically could be too would Maltese so you could buy the property. And if they're going to be living with even they can be borrowers. As well you can count their income. Correct one thing to think about with USDA. Is that they are in debt rate debt to income ratio requirements are a little stricter than what she was final and FHA or even a conventional type land. Both on the Friday in ratio in the back in ratio and what we mean by that isn't them pals the mortgage for the housing payment. Principal interest taxes and insurance. Based on your bursting come as well as all of your dad's the backing and debt ratios. But they also have income limitations say you have to make sure that whoever the number of borrowers on the Larry when you add all of their incomes up. That they don't it don't take you over the does the income requirements USDA had asked. OK okay I would they go for that out you're saying you're probably be best to go per conventional load it just. Denmark June. Yes conventional or FHA because TJ and doing. You have yet to issues when you do USDA and she's not really right BF two looks an income and the first one is. Do you do you qualified debt to income wise to repay so your ability to repay. Debt ration and then the second one is. Do all household members over eighteen what is there come by ending come and it is it is possible that they may make too much income. To qualify. We've had situations where folks say oh look come by my house they go to their boss they say can I get all the overtime you can give me because I need to save some money. And they they end up making too much money based on that that over time. To qualify for the property sounds crazy but that's the way USDA does it yeah to make sure that is designed specifically. For folks and a certain income bracket. In certain locations CM two qualifiers there that you need to be careful of when she would not have JD only conventional or an FHA that's correct that makes sense. Yes it does I've received information critical it. Exactly what you can do you can college there in the wake county bank 331. Home. That's 33146. Exterior shoe me an email at ask JDA county main mortgage dot com probably the best thing you can do. Is let's look at your individual situation to start we asked. Say what you qualify for wing maybe get a little bit more information about the property itself. And what gets you going down the right direction if you want to do and if we end up not needing to add other bar or great if we do we can figure out that that does well and and disqualify that lay say and. In the real stateside Jackie wanna do that up front yeah you don't want it yeah absolutely when it's time to make the decision on the property named it. Already have a pre approval letter and something in your hand that. So the seller notes you can perform you know. Zach Tubbs is way. Yet there are everywhere. Well listen if you got a question about buying selling anything to do the real estate we are here to take your calls questions or comments Chris. And JD from county bank mortgage Keith Clark. When the buyer's broker you can reaches an 8664147553. Or you can always tell us on the text 171307. That seven. 1307. I do I go back in just reiterate that to all the other listeners when you're look again. And we do have those costs all the time JD this is our warning USDA loans forty US TA property and just a reminder on US TA you have you have. Couple qualifier wind is the house inside city physical address doesn't sit and USDA. Eligible area and and don't think you have to be rural because there are some areas that. Almost everything is covered. And says you should always check that and then they the second item is. Both your debt ratio which is your ability to repay but also your income limitations. Need to be looked bad and it seems kind of crazy I think people think wedeman I make too much money and yeah yes that can be the case and and quite. Quite often that's the problem we have with somebody who stood by USDA's they make too much money. Just yesterday just get a raise or something like that kind of comes along and you know because they're gonna take the worst case scenario what I mean by that is are gonna count as much income as possible yes to ensure that you do qualify for their income limitation Thailand became an example so let's say that you never ever gotten a bonus in your life. And because of the tax new tax law change you've got you've picked up a bonus NJ anywhere from your employer of a thousand dollar. They're going to assume that you're gonna get that thousand dollars from now until genome comes. And and you have to be under the income women win that thousand people live wedeman and only got it one time. It does not matter because your program is specifically designed. For folks in math and that income limit. And they the other thing is everybody about maintain. That lives in my house so grandma who get Social Security. Her very you know hers is gonna have to be added years to make sure you qualify so he got to watch both ends of that. And often times that is where we come come up with a challenge yet and people say why would you take that long. What a great program is a great great great test 100% financing is one the true only true 100% programs you can get out they're using heat gifts for down payment. Yes I'm not mean it sounds of people to qualify for that may qualify for 5000 dollar grant it the accounting banking crisis. So there's a lot of different. Yeah there's a lot of pros involved with that particular trip well I'd say most of the time when you do when JD when you get down when your customized mortgage solution. Whatever earnest money they put in their gets back I anyone got the title game cash at December he's getting paid in cash yeah. So if you put a thousand dollars and a the math works out which most of the time it does. Then you won't get that thousand dollars back at your table when you'll you'll be home yet that's exactly where was wanting to take questions are quickie this is kind of many down down your road. They wanted to texture here are talking about a 1031 tax exchange on how level beyond great way to purchase a property. And but but a little complicated Julie. It is common that the key elements of a 1030 war one aid it typically referred to as idolize and exchange servicing Internal Revenue Service. Will allow you to defer any tax ganging. Capital gang yeah. If Favre the taxes on that he transaction. If it is a like kind property yes he being like kind property shares against one of the elements that you have to consider. He's. And you would want a kid this with your candidate. But let's say you have a commercial lot that you wanna flip into an investment. Producing an income producing. Has single family home loan I don't think this terrorist considers that. I like kind exchange Naomi became that but guest income producing thing income producing. May not Qualls and loosened up a little they have over the last fifteen or twenty years it is gradually got. All the the coolest. Properties has gotten larger cure but still. You do not want to do the transaction unless you are a 100% cure that's correct a clinically what you do typically what you do. He's put a property on the market the other key elements of the 1031. Or you have to have a qualified intermediary do you write advertise the mining if he gets the money. Then you can negate the status that's right the this is the the final thing is you have to designate. The purchased two properties. Within a certain period of time that's ever heard a closing and I think I wanna say it's 45 day. Yes and when you're doing that researcher light kind you can you can go to the IRS website and you can type in 1031 and the reason it's called a 1031 is that's the part of the players guys talking about. And it won't give you the information the most important thing to remember from our residential property standpoint. He is is it specifically precludes primary residence at track and second homes so you need to be very careful when you when you read through that. It's a generally when we see him and are the ones that JD you've done a better investment to investments they try selling that residential investment and you're buying a new. Residential investment that you're not gonna have any use of and hand them that is what makes it. You know flow through that's what it was designed for price points are what it does for use it allows you due to defer defer. The capital gains they say you bought this house for. Forty now is worth 140 you can defer of the capital gains on that hundred. On the next property and and to your point Keith you get had an intermediary and that's there's going to be a little experience with that and basically they're gonna. Hold back cash from the first sale. And then deliver that cash back when you buy two to the closing. That's right and drag Chris I was impressed I'm impressed that you know. I haven't done but I probably do one every. Few years four years there were three or four years somebody wanted they want in UK and we need when you don't do that miniature eagle learned that information track. Well and it's also important to remember that if you donate 1031 on livestock that they they must be of the same sex. Senator I share. I'm Chris is reiterating their guidelines he's a yes you're you're exchanges annex at all underdogs. Yet they need to be of the same. Yeah I don't see you don't necessarily have to pay the same email he didn't do. Now let's say a 100000 dollar sell a hundred Ambac may be and then you've got what they called boot but it would be the 20000 dollar shirt and then you pay to gain a man let's expanses absolutely Melissa we're going to our bottom of the hour break here ketchup on the news we do have another question about setting up a family trust. Which will deal went on the other side is fairly common and OJ EC from time to time. We did create quite a bit actually show it sound sometimes you get some obstacles there yet to be careful will bet when you're refinancing what number we'll talk about that. On the other side of the break second stimulus in the house plans Christen JD from county and mortgage Keith Kerr put the buyer's broker. We are talking real estate today if you got a question or comment or LA the phone lines open 866. For four to 7553. Appreciate does that college and today talking a little bit about the USDA are without question it's a good way to start it. 71307. Is a tech find if you wanna Texas school I answered the call right after the break. Three welcome back you listen now house plans glad you could be with us today Chris and JD. In the house from county bank mortgage Keith Clark with a buyer's broker here to take your questions Karl's comments all of our real estate. Text line 71 and 307 713 or seven he hit a summer. Free toll free number 866442. In 7553. That's 866414. 7553. We'd love to talk to you this morning we do have some numbers but we're gonna go to. Text line next in non you know we had a question about 1031 tax exchange. I would tell you if you look at burn intermediary. You need get a couple things need to be Shura the first warriors do you call your your real estate attorney would beamer recommendation or. Also many like us at 331 home and will be happy to. Do you view couple posted top ten. Because they are going to be. Drab and about a little bit since they hope to cash. And then the second thing would be two keys point you do have a time limit phone and then find that the property to your perch sink. So you need to make sure that you had structured and you kind of know where your head and before you get started. Tom I think what you're saying Chris is a critical nature of it. Is that you comply with all the rules and regulations as a purpose and you understand 31 exchange hit him the last thing you won't have to attack happened. It's to make a mistake that disqualifies. Your reaction because I am but guys that investment and I want to miss were characterized. You know and then of course JD the next question that we got was how it was set up a fan we trust on our own. Ordered B of main ages of the family trust. Holding the property out take the first one. You know the first one is you need to get with your real estate attorney again or finding qualified real estate attorney. No we'll set the property. Inside of the trust. That whoa you know maybe just the way you wanted to be managed because that's what you're doing inside the track's ten as the rules have some rules and then of course. It would be Smart. I would think the contact somebody like us and say hey what are the current guidelines to get a Fannie and Freddie loan our family trust. And we can provide those we have some that we give the folks and say hey these are some requirements inside the can we trust to make this property more legible. Inside the trust. Using Fannie and Freddie because. You know you you could do it if you were not being very careful you could set the trust up to where the property would not be eligible. Hey we had the situation we had telling you may fear factor 810 years ago. Then there's the rule of thumb lies you know they need just put out the trust will refinance do all this kind of stuff and a lot of people would just go put it back in the trust after the fact and this and if any of Britney bashing in the last few years have given some guidance in regards to trust revoke the bowl irrevocable yup and he had to be really careful about its. On the way to try to set up. Because you can't put into a trust where. Basically give them the properties a lot being on there again refinancing their eerie anything's say you have to be yeah be careful in that regard. Yeah and then of course the reason you would print the property interest Keith do you know why somebody would wanna do now. Is it generally reliability and tax perks. Didn't tax purposes probably estate related tax purposes right yes so they're there attorneys specialize an elder care. Until you're moving today because the complexity of the rules with Medicaid. Nursing homes they expensive nursing home. You might wanna go to principal residence since. A trust to Canada. SA well to postpone right. The sale of that property particularly investment you may wanna hang onto your investment in the short term sure income. In SATA trust right and then when you pass. The distribution of those assets to the family. Might be might be better afford to be in SATA tres chair tell ya gonna start with a with a with. Oh and we thank him into an appropriate attorney to help dad and and JD they can get in touch we do you have. Oh yeah they didn't issue an email asking JD accounting may mortgage dot com that's AS KJD at county bank mortgage dot com and we can. Gala they real estate attorney making teaching going on right wrote dear fast down for the duration that you want and they're saying come to us about this Charleston numbers throw quick you know we were talking about seven and a half percent up. January over January. And of course it looks like it's early in the year. But it looks like the appreciation has continued down in the Charleston area it is the median price being 258000. And you wanna move there's your listening and compare that to Graeme when we get to the numbers sure because Charleston really about 20% higher in 2.0 percent larger. And I'm torn into a smaller now and then and number. Films which is amazing actor and an amendment to orient the inventory being a 46. Now I need to do right 4690. Units available. Over last year's 5397. That's down thirteen point 1%. I would call that I would go out Roma women say that is a trend that is trending. Not just they negligible. Mail a significant number that's probably reflective of what's going on down there and that brings the months of inventory. In Charleston down to three. Yes Ferrari owners and three months of inventory in skin god damn from last year's three point six. Knowing that six months of women Torre is equilibrium between the buyer and the seller I'm healthy so safe to say essay. Strong it is our seller's market yep there's a lot of pressure now Marron and didn't do you guys were down their I don't really. I'm not I watched the numbers but I don't experience is the key thing you know I. I'm Brazil live down there and you know of of probably the story he says so it's a mainly so I'm thinking about to do. Have decided not to. Down there because it's so crazy they're just friends and you know there's probably feel like it's a little bit of a bubble. When you got that pressure I mean to make a decision about buying a home. It it it makes you sick and guess what you're doing him a while everybody Owens who wears in a very nice try so. Anyway and of course Greenville. Fast start 2008 wow yeah. 800 meg transactions in January over last year's 700 any eleven transactions. That is at thirteen point 6%. Will be very interesting to see if that holds at that pace that I'm a little surprised at the percentage jump arm. I mean it is it is it is feverish. But it will be very interesting CME not. We got a lot of people are pre qualify they're around they're looking. Bombs that are just aren't getting the contract you know famous I have off. I had against Indiana how would we not think that the year would end up that point I don't think so right now you've got rising interest rates I assume we'll do an interest rate at night before we left arm around and I didn't. It shows that it does crash that from the yeah we're not we're not no injury rates move up a little bit here and see shaping in the game. There are sitting on the sidelines or thinking about it you've been a year. You need to borrow. All the money you can borrow right now and interest rates during I tried it saw. They calendar when the train stars are wheels can all right me and didn't give a little bit yeah it's it's moving now the median price angering I was up 291000. We do. We usually don't talk about that number till later on in the year that's up ten point 5% over last year. But because he's just not enough transactions to really calculate. Your tree and over the same as what can and a one month number right now I don't. Because it is it is the based on the year and turned inventory 3997. Over last year's 3661. That's up nine point 2%. So we've we've kind of felt that there's going to be at an easing easing of inventory in the upstate new owners are pushing hard you're gonna see some people. That the baby boomers are downsizing. You're gonna see him and Torre moved a little bit high you're now Willie get back to. A fair and equitable equilibrium probably not not well you know here I'm terrorist cells snort up 13% your adversaries only go one up nine you're still. Usually around here there and DOM today's known market. 56 I mean that's that's unpleasant historic lows are yeah that's a meanness noon pretty good there you know. Yep I am most homes in and this is going on national. Typically most homes will sail. In that thirty to sixty day range just don't see a lot of homes if it's if it's not sold in sixty days then you need to re a. Outside Gary there's some there are areas outside the normal it was a big something else he had that kind of thing you know yourself. Yeah a very interesting for sure I think I think we are correct in there at least the numbers are showing that were correct. In the beginning out of 2018 it is going to be a big year in real enemy another record year it looks like yeah no doubt about it senator. All sorted out we got one more segment and they got so more. And by our listeners to call him an 866. For four to seventy fast 53. Really detect flat open as well know a lot of people like to text in their questions 713 or seventh. I'd love to hear some curve balls may live people who run into we had some curve balls come up here in the move in Jean wearing a lot of deals Chris and their. Curve balls a year. She's is this successes like the last eight guys he does. We'll talk about maybe some of those when we come back here listen houseplants christened JD from Carrie Mae mortgage Keith Clark were the buyer's broker we'll be back to this. Oh listen to health plan's final segment of the show and 8664 Forte who sent Andy fascinating story can say let's beat only attorneys a little note out. May shorter that it happens you understand that they're gonna play a vital role in communication. On both sides yup you know if you are selling. You need to have open communication with the attorney who's handling the sale of your property and made it if you start Hammond communication he she's with him early. You just need to be aware it's gonna calls it can cause problems and then of course when you're buying need to make sure your pick and somebody that's gonna. Handle the transaction in there is a huge somebody different and read the contract about faster. Going to be huge difference in the type of service you get based on which attorney UK in some of them are very well. Organized and have very good systems and some of home. It's a hot mess I would say this after is number one attorney is a key part as you real estate transaction Elizabeth number two most business failures. A result. But 'cause of an effective communications yeah. Nice start to notice is oh no comment Virginia or remember this just for right wing and the good faith estimate came out. There is considerable amount of confusion know how to do that because we're going from one way of doing it another way. And I'll never forget this. This paralegal. In in North Carolina I was talking to earn trying to help for should listen to me we do for five of these in my and I don't need your help that he. Pass and how. Our usual. Today and you have no idea what you're talking about how much bad. And yes that's that's not what I say that is what I wanted to say but you know 45 months you know and leave him yeah. I'll tell you don't pick a relative or friendly furry and that's they always charge of your current senate all right guy. Taylor is charged more and then you know they get mad at us you adult. Always you don't yeah aecom is no cost 12100 cost ID her I'm not in charge of that color your family friend that charge you eighteen turned fifty. Yeah and you can ever perform right after the closing it kept moving out at California. Ward very very hard to put together a high quality real estate transaction. And if one of your team members makes a mistake. The hole and then invest the experience. To back consumer. That's what they'll remember your credit yeah YouTube because all that effort and to actually no last week is the most pivotal it is absolutely no doubt about it. You think it is much done so than a week before closed everything is done and well. Our number one goal is to. The fact is they're two days in advance and have the money there one day in advance so all that stuff this man. And anybody who doesn't play nice and now all the third parties involved or. Or anybody that doesn't play nice in that go hear from us because that's our goal our goal is load. Get their two days and amendments had the money their one day in advance and everything will go to smooth as glass and and we talk about that every single day. Had it there are two days and events. Yes you know that's that's our goal now do we hit it a 1000% no real about a thousand but buddy when we don't we talk about it because there's some sort. I was at a closing recently Prius for home for sale sign that was representing the seller. And the bass out of the transaction. With soap can feast they. They in they had their lender with them. And it's just my my client nabbed just we're just look at may be together with a little too Smart Smart and it was chaos on the other side of that. The transaction. Yeah incompetence on it at every every spot it was the first time home buyer anyways yes too sad. Yep Yankee MEI. It sounds how do you really think about it it's. Just what that's all I do is pleased to easily keeps me up at night right what Keith. If if nobody has listened to the show one to pay attention to this part because ours is big. Last week we had a situation. Where. From somebody was by an older home. And I guess the contract. That we using green bull changed. A year and a half again. About you the first half hour and then exchange two or three times since they have. And that now there is very particular language. Inside the contract about rep payers. And I think it's important that we talk about that because he had two options as a buyer. Andy your qualified buyers agent should be really talking to you and educating you on this but. I talk about it a little bits and if the first one is called what is right in the contract. It is a traditional repair calls Peres a eight of the state form that week be any you know we have to. I generally accepted. Contracts in our market so there is a second contract. There was designed to. Really effectively. Take some of the challenges of what we're talking about how I right now that it does at. It it but that's what it was it was originally designed to rise that. But what you're talking about is there are two opportunities. Right so when paying you any kid beat by stone. That when he's what we call a due diligence addendum which is generally accepted I would say in more than half the states now. He's a due diligence and end up right. And typically it originated didn't originated in the commercial business is very common home all commercial sales. Where you have a due diligence period they usually lasts 45 or sixty day. And if you opt out of that then you're dealing with what's in that pair graphics eight as to. What do you buyer and seller duties are and primarily that the seller decent I guess when I read through that. I was surprised her eyes again so let's back up tell the story we had a customer by house that was over a hundred years old. And when they got the inspection back you'll be shocked at this and had a few things yeah. Here's your own house it's got lazy and and so. There was some concern on the buyers part. Bet you know maybe I'd like Egypt Egypt. Button here because I'm not happy with what they were. And but they chose option wind which was not. Too good to have the due diligence and in. And when they went back to the seller. The seller said look how I got to make sure they air conditioners working in the new got to buy. Yeah well yes and what NFL what is sale and really that's contract basis and struck out it was very interest yeah and paragraph I ate what it does is enumerate. Specifically the duties of the cellar to repair certain items in it's a very limited list. He does not required that the seller bring. Those systems inside the house up to code yet here example Chris would be what the one you brought out. Well yeah electrical Allen yeah so so the key the key phrase I think in that entire paragraph to me. There's one omission and one that I think is the key phrase in this says operational. Condition right so let's take an electrical outlet and electrical outlets that you plug a fan anti. That is not grounded but the plan comes home. Is that. And operational conditions there and most parties would say yes but it's not grounded so it may not necessarily be say thank. The second thing that I noticed when I read the when I read the paragraph was okay it talks about all these things and that's. And the definition is is operational condition are these systems. And I operational condition and then the next thing I noticed is that there is no mention. At all anywhere about safety. And and of course you know when you're doing within FHA loan MBA Loney had a government loans safety is a big deal. And in you if you have a safety issue will be required to do it if you're gonna get that confidence and but those two things jumped out at me on the page because. You know this this house had numerous issues. And says. The question is what is the definition of operational condition and if you're gonna go down that road without a due diligence had been done. You need to understand. As a buy here. Where they eject button is and in what circumstances you can hit it. Deterrent in any case there is one because you can't what is Thain is this if these elements of the house are functioning. As they're intended to function correct venue and the seller agrees. To put the ones that aren't in they can in that condition here I think you do not have the right to rescind the contract right. You must perform. Mail and many years ago things have change ever last. Seven or eight years. But in order to. And these. All the due diligence calls was designed for those kind of cabbie we have a catastrophic scenarios where you've got to foundational problem right so let's say there's 30000 dollars required to prepare the foundation. Your most admirers would you say look guy I'm outraged too scary for me here but if the seller is aware of it maybe didn't disclose in. The buying your car did was unaware of it right that by ear. Brute. Does the inspections and seller agrees to do those things chair. Right then you've been you've got to perform here till heaven and exit you can't hit Egypt because you don't like to attract. And so but it typically did did I don't know what percentage of allfirst. Have a due diligence and in them but in a multi ball for environment that due diligence and then no more harm to your area it'll be a big can be he can make cure all for things they necessarily. Attractive because. It also allows you to do diligence and in and also allow you to rescind the contract. Ford teeny condition of the property yes so it does not restrict achieved you do not have to articulate. Why. This specific condition no. Evidence of any type of condition chair it's unacceptable to eat yeah all you have to do is say the condition of the property is not this it's. So it makes it it protects the buyer more. And in it makes it's no more nervous because the seller wants contract so that they can move all play LA OJ did you Ted. We have had quite a few where you get down the re your Roland ride along. Inspections come back and somebody recent grads changed up a bus. I'm Bob Bob probably had three deals fall out here in Ohio you know I'd say what's happening is. We we've talked about this in terms of five goals and objectives in every consultation. By educating the Barry's the buyer does not know what they're looking and if they are not fully prepared to pull the trigger then there is always. There are always second guess in them after they secure the contract because now they have to perform so they've got to be fully. Educated about your market and they have to make their decision and a very short period of time and you can't do that little edge you know well. You gotta do the homework up front I turn that you know who put the what the what mood you're gonna make based on this that the other bit. I think you know the most important thing you said their keys is that. Let's say it is a 30000 dollar repair something that's gears. Let's say that the house is almost a cult we you can repair that. And so if the system seller repairs it and you didn't have been due diligence and his them then you must keep going forward. We had a situation like down my house we did down in Florida. You know I think given up artist when he walked away because he knows the seller did the work prepared the property spent thousands of dollars repairs the property. And the buyer had about. And the price I gonna have to do that anyway and they know it may start thinking again one day. That's what I was going to damage they've plus silver sugar might listen in an email lists and houseplants. JD Chris and Keith will be back next week talk alone will stay thanks for listening and.