It's a rollercoaster out there in the real estate world, and Trish Williams along with Tiana Carroll are your expert guides through the twists and turns. This week at Vegas RealtyCheck, we grapple with the shockwaves sent by an unexpected rate hike while balancing on the tightrope of forecasts predicting a simmering 2024 market. Pull up a seat as we swap tales from the trenches of past market upheavals and sprinkle in sage advice about the long game of property investment — because sometimes, the best deals are the ones you wait for.
As we navigate the murky waters of adjustable-rate mortgages making their encore appearance, you'll want to tighten your life vests. We dissect these financial creatures with precision, cautioning you against their seductive initial low rates with the help of none other than financial guru Dave Ramsey. Plus, we'll explore the creative lengths builders are going to keep buyers engaged, all the while connecting the dots between interest rates, market frenzy, and the perplexing dance of housing inventory. This conversation is a must-hear for aspiring homeowners and seasoned investors alike, ensuring you're armed with the knowledge to brave the current market conditions.
Now, let's talk about why 'house trading' isn't as simple as sliding into a new set of wheels. Our episode peels back the layers on the financial intricacies involved when you're looking to switch up your living situation, dissecting the influence of mortgage rates and the true value of your home equity. We're busting myths and setting the record straight — this is not your typical car dealership experience. So if you're contemplating a move or just curious about the behind-the-scenes of real estate transactions, join us for insights that could save you time, stress, and money.
Welcome to Vegas Realty Check, the informative podcast that dives deep into the world of Las Vegas real estate.
Our expert hosts break down the complexities of the ever-changing Las Vegas property market, analyze market trends, economic indicators, and unique property features to provide you with valuable insights on timing your home sale or purchase.
Don't miss out on the fun! New episodes drop every Thursday! Stay in the know about Las Vegas real estate with insights straight from the pros . Thanks for watching, listening, and sharing!
If you LOVE our content , Please subscribe to our show here
https://www.buzzsprout.com/1428685/support
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Send Listener Questions to : VegasRealtyCheck@gmail.com
Access All Episodes at RealtyCheck.Vegas
Watch Live on Facebook Thursdays @9:30am PST
https://www.facebook.com/VegasRealtyCheck
Linktree https://linktr.ee/vegasrealtycheck?utm_sourc...
It's a rollercoaster out there in the real estate world, and Trish Williams along with Tiana Carroll are your expert guides through the twists and turns. This week at Vegas RealtyCheck, we grapple with the shockwaves sent by an unexpected rate hike while balancing on the tightrope of forecasts predicting a simmering 2024 market. Pull up a seat as we swap tales from the trenches of past market upheavals and sprinkle in sage advice about the long game of property investment — because sometimes, the best deals are the ones you wait for.
As we navigate the murky waters of adjustable-rate mortgages making their encore appearance, you'll want to tighten your life vests. We dissect these financial creatures with precision, cautioning you against their seductive initial low rates with the help of none other than financial guru Dave Ramsey. Plus, we'll explore the creative lengths builders are going to keep buyers engaged, all the while connecting the dots between interest rates, market frenzy, and the perplexing dance of housing inventory. This conversation is a must-hear for aspiring homeowners and seasoned investors alike, ensuring you're armed with the knowledge to brave the current market conditions.
Now, let's talk about why 'house trading' isn't as simple as sliding into a new set of wheels. Our episode peels back the layers on the financial intricacies involved when you're looking to switch up your living situation, dissecting the influence of mortgage rates and the true value of your home equity. We're busting myths and setting the record straight — this is not your typical car dealership experience. So if you're contemplating a move or just curious about the behind-the-scenes of real estate transactions, join us for insights that could save you time, stress, and money.
Welcome to Vegas Realty Check, the informative podcast that dives deep into the world of Las Vegas real estate.
Our expert hosts break down the complexities of the ever-changing Las Vegas property market, analyze market trends, economic indicators, and unique property features to provide you with valuable insights on timing your home sale or purchase.
Don't miss out on the fun! New episodes drop every Thursday! Stay in the know about Las Vegas real estate with insights straight from the pros . Thanks for watching, listening, and sharing!
If you LOVE our content , Please subscribe to our show here
https://www.buzzsprout.com/1428685/support
Linktree https://linktr.ee/vegasrealtycheck?utm_source=linktree_profile_share<sid=665d8181-2204-45fb-b56f-e8ed3efbfd18
Send Listener Questions to : VegasRealtyCheck@gmail.com
Access All Episodes at RealtyCheck.Vegas
Watch Live on Facebook Thursdays @9:30am PST
https://www.facebook.com/VegasRealtyCheck
Linktree https://linktr.ee/vegasrealtycheck?utm_sourc...
Hey Vegas, thanks for joining us back here at Vegas RealtyCheck, your local Las Vegas real estate news show, and I'm Trish Williams.
Speaker 2:And I'm Tiana Carroll. Welcome back Vegas. What's up?
Speaker 1:Yes, but did you have any news this week? Because I, like, scanned every source and seen nothing that was worth talking about. Yeah, it was really, really slow.
Speaker 2:The only thing that I saw was, like you know, everybody's talking about oh, they're going to be dropping interest rates and oh, 2024 is going to be a crazy housing market year. That's sort of stuff that we've been hearing and talking about.
Speaker 1:That's the narrative that's been circling around Totally. So we have this narrative circling around about rates dropping and we are all ready for it and anticipating that, but yesterday we had the highest rate increase in the last month.
Speaker 2:Right, it's like rates are dropping. Rates are dropping, rates are dropping, just kidding.
Speaker 1:Yeah, so yeah, it didn't happen yesterday.
Speaker 2:No, yesterday was not the rate drop day.
Speaker 1:Yeah, but you know those things like the stock market will fluctuate daily, so don't let it like panic you or anything like that. Just keep watching and keep reporting. As far as that goes, I did not really in news this week, but it was just like a, I guess, a survey what are they called surveys when they just, like you know, talk to a lot of people or whatever. And one of the highest stress points it came in as number three is the highest stress point for families is housing affordability.
Speaker 2:Yeah, yeah, no, I get that. It's weird because you and I grew up in the valley, so we've been here when there was like homes at the edge of town on rainbow that were like you know my grandparents lived there.
Speaker 1:It felt like I was leaving town.
Speaker 2:It felt like you were leaving town, but your grandparents probably got it for, like you know, 20,000.
Speaker 1:Okay, 50 grand. I was going to say like 28 grand. Yeah, they sold it for 850 in like the early 2000s yeah.
Speaker 2:Do you remember when they converted Vela Vita and from apartments into condos or something?
Speaker 1:Yes, I remember that's what she bought.
Speaker 2:I know she bought when they turned from apartments into condos. I know, didn't she pay like 18 grand for that thing or something?
Speaker 1:No, no, that was its value at the time of like the whole foreclosure crash everything. So she paid 185 for it. Oh yeah, and then the market crashed and then the value was down to like under 20,000.
Speaker 2:Yeah, yeah, yeah. I remember seeing signs for Vela Vita. I bought 18 grand for a town home condo and I'm like uh wish I bought the whole complex.
Speaker 1:Yeah, yeah. Well, I, at the same time, I had and I had bought, and I thought it was a, I thought it was an amazing deal. I bought a townhouse. It was like 2000. I want to say 2005. I got it.
Speaker 2:And I got it as a foreclosure Okay.
Speaker 1:And it was a hundred thousand. And I was like, wow, like I get a three bedroom townhouse with the garage for $100,000. This is amazing, it can't get. I could never get a better deal than this. And then the crash happened and it was worth 20,000. And I was driving a, I think like a Ford Escape or something out at the time, but my car was worth more than my townhouse was and I was like this really sucks.
Speaker 2:All the doomsday preppers are like let that happen again. Let that happen again, and then we can buy all these amazing properties so inexpensively.
Speaker 1:Yeah, yeah.
Speaker 2:And then we can keep a little nest egg to the side in case that does happen. But I don't see that, not with our numbers.
Speaker 1:But yeah, you know the thing, though, that like the biggest amount of advice I could tell people out, there is when, when everything crashed, everybody and people were even telling me like ditch it, drop it.
Speaker 2:You know short sell do whatever, get out from under it yeah.
Speaker 1:It's not worth what you're paying, and I was like it just doesn't make sense. You know the payment's still lower, or whatever. I stuck it out. Okay, you know like you've got to. If there were, I don't think we'll ever see a crash like that again.
Speaker 2:I'm just being completely honest. We stuck it out too. We stuck it out, and now the house is obviously recovered, worth a lot more.
Speaker 1:Yeah. So like if anything, just like in the stock market, you never sell. When it's low, you sell, you wait for the value to return and you got to kind of ride that road Like I don't think it would ever go to zero. I mean, maybe something could really bad happen In a post-apocalyptic world.
Speaker 2:They divvy up all the properties. They're free. You get this corner. You get this corner. You get this corner.
Speaker 1:All right, but but yeah, stick it out. You got to ride that wave through because I did that with my townhouse, which you know. At one point it had gone down to 20,000 and then just rode it through and by the time that we sold I was able to make profit out of the equity because it had all come back around. Just had to stick it out for a few more years.
Speaker 2:Yeah, we did the same thing with one of them.
Speaker 1:Yeah, and that was all before I was even in real estate. That was like my first home. I was young, younger, younger, but you know, I didn't even know anything about real estate at that point in time because I didn't get into real estate until 2014.
Speaker 2:Girl, you were made for real estate. It must be in your blood. You were making good decisions even back then.
Speaker 1:Yeah, yeah. So I guess, guess that's what inspired me. You're like yep, that's it. No, but true story, what did inspire me to get into real estate is my realtor at the time was terrible, terrible, terrible, wow. And the funny thing is, after I got into real estate, like after I got into real estate, he, you know like what, you know how it goes, Like you get like certain production numbers and all these like brokers reach out to you trying to recruit you.
Speaker 2:Right yeah.
Speaker 1:So I met with this guy and he's trying to recruit me and I'm like you don't know that, you know me. I'm like he was sold me my first house and you're with us. I've insulted.
Speaker 2:I feel like not only am I insulted, but I didn't even like you as a realtor.
Speaker 1:Oh, you know, I mean everyone, everybody has their own thing. You know, I mean he wasn't like whatever, just not my cup of tea.
Speaker 2:Yeah, yeah, but he was fine yeah.
Speaker 1:But yeah, I was like that is pretty absurd. Like you're saying you're trying to, like you know, now you're trying to woo me and you don't remember you sold me my first home when I was just a little single mom and didn't know anything about any of this.
Speaker 2:So, yeah, so you know, all in all, you got the house, so it's good. And you did not move companies, so I've I've never moved companies. No, no, you were. You were one loyal mama.
Speaker 1:I think I found my home where I've at, so I would be very shocked if I would ever come to a decision to leave.
Speaker 2:Yeah, you're really good at knowing exactly what you like and sticking with it. Yeah, yeah.
Speaker 1:So you know another thing. I guess you could call it news, since we're talking about crashes and all that stuff like that, we ended up in a crash anyway. So we there's. You know, one of the things that we've seen with rates coming so high over the last year is the adjustable rates came back.
Speaker 2:Yeah, yeah, so is it. Oh man, I don't have the note with me. Lenar yesterday sent out a email saying that there is it, lenar, that's doing their own financing now.
Speaker 1:Oh, I don't know, I don't get the email.
Speaker 2:They're doing an adjustable rate and they're doing 399 for your first year, 499 for your second 4.99. Oh yeah, 4.99. And then I think, then it's like the rest of it is like 5.25.
Speaker 1:Right, so Tollbarther's is doing something the same. That's not quite an adjustable rate. That is a 2-1 buy down.
Speaker 2:That's a 2-1 buy down. Yeah, but they're calling it. I mean it's an adjustable rate.
Speaker 1:Yeah, it's a little bit different, it's kind of an adjustable rate, but a little bit different than the structure of an adjustable rate.
Speaker 2:Well back, then those were a nightmare. Back then, back then, yeah.
Speaker 1:Because they really. I don't think they had a ceiling, Like they just kept on reducing.
Speaker 2:No, no, there was times. There was times in the um I don't know Market crash that hold 2008, whatever when we had an adjustable rate and for sometimes our mortgage payment be like 1350 and then other times, for a year and a half, it'd be like 18. It got 24 hundred dollars. That's a substantial when you're almost doubling your yeah, mortgage payments, yeah, oh, just all rates are tough.
Speaker 1:Yeah, my husband was in one before we got married and his it's got enough to like nine and a half percent at one point, you know. So yeah, they were. They were getting pretty steep and that's why a lot of people like had to foreclose because it was just you know.
Speaker 2:Yeah, the payments were getting on. A formal were a nightmare.
Speaker 1:Yeah, so I do follow Dave Ramsey. He's a financial, you know, advisor, guru, whatever you want to call him and and Dave Ramsey has put out a warning, just warning people be very cautious with these adjustable rate mortgages. You know that are out there.
Speaker 2:So I think as rates start coming down, those are gonna go away again, but you know that is yeah, well, they're trying to do things Just to get people in homes right now, trying to make it as affordable as possible, right, people, and you know like, and it was the linear and the final was 5.625 percent. For the remainder of the terms.
Speaker 1:Okay, well, you know that is at least so, that that's what we call a ceiling. Okay, so right, at least it says it's not saying this can keep on adjusting, keep on adjusting. It's saying that it will adjust until you have this ceiling and that's the highest rate. So when you're looking at that, you need to look at that ceiling rate of where it's going to adjust and make sure that there is one Right, make sure that it has like a final, this is the highest your rate will get, and Make sure that you can afford that worst-case scenario before you sign an agreement to do that totally, because that if that number Scares you and that number makes you uncomfortable, then maybe this isn't the right choice for you.
Speaker 2:Yeah, and you know what, when it comes to loans, there's so many different products out there. You have options, so you know much like working with a realtor who can navigate the actual contract and transaction with you. Your lender is such a key portion, obviously, of buying the house and you need to make sure that you are getting a lender who is giving you the best package for your purchase.
Speaker 1:Right, and if you have a lender or you're talking to a lender that is not willing to go over scenarios with you and options, you're? Probably you're probably not talking to the right person. Yeah, there are people out there that will walk you through those scenarios and give you some options of what's gonna work best for you. And I've I've even spoken to the ones that likes. They're like oh, this is, this is what we have, take it or leave it.
Speaker 2:And I'm like you know, I know you're like I'm gonna go ahead and leave that right there.
Speaker 1:Oh, right there, like if they can't take the time to talk to you either. You're probably not talking to the right person, so keep that in mind, yeah.
Speaker 2:Yeah, hey, you know what we didn't do we did do numbers. We just skipped right over it. We're like forget it, there's no news, we're just talking about whatever we want to talk about now. That's good.
Speaker 1:Yeah, let's circle back to do some numbers. Mm-hmm, all right, single family resonances what do we got on the market?
Speaker 2:We have three thousand five hundred and sixty six of them still under four thousand guys and under four thousand.
Speaker 1:Market is picking up, so that inventory I'm concerned about.
Speaker 2:Yeah, well, if we're going back to the news that says all the interest rates are dropping, every conversation I'm having it's like oh, we're just gonna wait for the interest rate to drop a little, a little, a little. Well, with that interest rate comes Competition. So then do you now have cash over Appraise value to get into a house if we get into a bidding war again?
Speaker 1:Yeah, I was speaking to an appraiser yesterday and he was saying like, yeah, with the increased activity that that we're starting to see coming up, what are we gonna do about inventory? And I'm like, well, I guess we just hit that road when we come and we're gonna have to navigate through it. But that is a concern. With more activity, more buyers coming off the fence and ready to buy, we're still seeing really low inventory numbers. So that's gonna be. That's gonna be something.
Speaker 2:Yeah, that's definitely something that's going to be contributing factor to how this market goes, because you know, worst-case scenario, if we get down to two thousand homes again, then affordability is gonna be off the table for most people because it's gonna be cash. If you can come over, appraise value, if you can do whatever you need to do to get into that house, and you're gonna be the winner.
Speaker 1:And then there we go into that third largest stress factor for people in the United States is. Housing affordability right. So this is yeah, this is it's just something to really be mindful of and watch throughout the year Sold so numbers how many homes did we sell last?
Speaker 2:week. Last week was kind of slow to fifty-two.
Speaker 1:It is a little slow, if I'm being honest. Yeah, but we're still second week of January. We're talking December closings. That wind us grow. I think those numbers are gonna get bigger as we.
Speaker 2:Yeah, even the end of February, beginning of March, you're gonna see stuff happening all the stuff. From beginning of January We'll start closing all of this stuff that we've picked up now, 30, 45 days later will be really what we're reporting Price decreases. How many do we have? 344 so kind of high and I mean not really as high as we've seen it, but yeah right.
Speaker 2:Yeah, no, I mean, if we get under like 400 price decreases, that's a low amount of price decreases happening and I don't know if it's, you know, like about 10% of what our active single-family homes are that are being reduced. But when I went back and I looked at numbers this time last year, this, what are we? Third week of January, mm-hmm, there was, I think, close to 700 price reductions.
Speaker 1:Yeah, we've seen like 13, 1500. Oh yeah, some really high numbers, yeah, but the Inventory also reflects that as well. Mm-hmm.
Speaker 2:So yeah, 144 price decreases. Now you said like 10% of the single-family inventory so yeah, now you started a few weeks ago tracking the under contracts. Yes, so this number you are both the show and no show. That looks like a healthy number.
Speaker 1:That is a good right 520 homes under contract this week, so that's great. That's a healthy number and I think that that's going to be an indicator of stronger sales numbers come the end of the month.
Speaker 2:Yeah, yeah, yeah, I have to agree with that too. So the numbers haven't made big changes, so that's OK, but I'd rather sort of slow and steady right now until the world figures out what it's going to do. Nothing too shocking After 20, wow, 2021, 22, 23,. It was such a roller coaster ride through everything.
Speaker 1:So does it really feel like it's been four years since COVID happened? I still feel like it's yesterday, like we're still talking about it every day.
Speaker 2:Like. I just feel, let's move on Well you wanted to put that to bed back in 2020. You're like are we done with COVID?
Speaker 1:Yeah, we can do that with it. Can we stop talking about it?
Speaker 2:Yeah, well, the pandemic really did change everything. It's always going to be something. Just like we reference the crash, we're always going to reference this pandemic or COVID or whatever nickname you're giving it.
Speaker 1:So maybe COVID was like the big thing, like the crash was the big thing of that era, decade or whatever. Right, that's what I'm saying.
Speaker 2:It's always going to be a reference in time. You know, like I don't like it. It's sticking around. Girl, we're always going to reference. In time, You're going to have to hear COVID forever.
Speaker 1:Oh yeah, it's a four letter word. It's a four letter word. It is only in your mind. Yeah, it's a five letter word. Yeah, you're right, it's five. Ok, but my four letter word.
Speaker 2:She's like I'm omitting the I and it's a four letter word.
Speaker 1:Yes, so we have some listener questions.
Speaker 2:Yeah, so we're doing this this year, which is kind of fun. Listeners go ahead and send us their questions. If you want your questions read on air and answered, then you can go ahead and email us at vagusrealitycheck at gmailcom and we'll get your questions on. But today we have three new questions.
Speaker 1:Yes, ok, so let's start with Diane.
Speaker 2:OK, wait, I've got to pull up the questions, ok. I'll start reading while you're pulling up.
Speaker 1:So Diane purchased a home three months ago. Ok, the water heater went out, cost me $2,100 to replace it. When I had the home inspection, they said everything was working and did not say anything about the water heater being broken. Can the home inspector or the previous owner reimburse me?
Speaker 2:So, diane, I'm just going to smile, just smile and wave.
Speaker 1:No, it's a good question. It is a good question because the reason why you have a home inspection is because you want to make sure that everything's working Well.
Speaker 2:it's just a snapshot of the property. Right, it's a snapshot of the condition of the property at time of purchase. Yes, but like anything else here today, gone tomorrow, it's works one day, broken the next. That has nothing to do with the home inspection or even the previous owner.
Speaker 1:Yeah, like you. Unfortunately, you can never guarantee when something goes out, and in water heaters in particular. Sometimes, if a home's vacant for a while, everything builds up at the bottom.
Speaker 2:The sediment.
Speaker 1:Yeah, and then when the home inspector's there, they could be running things. That works fine. But once water starts continuing to fill up in there and it gets caught in that sediment buildup and all that stuff, it can create a problem later that no one would have known at the time of the inspection Because that sediment will play into the factor once all the water starts running and then you have all of the from the pipes being empty for a while and then when they start all the water starts going through. It pushes more sediment out. I mean there's things that can build up over time. That happens. I've heard that probably explained a lot better than I just explained it.
Speaker 2:Well, I've had sediment affect the heater core and the heater core has had to be replaced. And sometimes it's just repair, not really a water heater replacement. But things happen. I can go home today, knock on well, we don't even have wood in there, Knock on wood. But I could go home today and something could be broken at my house or your house or any house. Yeah, you never know, yeah.
Speaker 1:Don't be at my house, please. I wish we could guarantee that, but no, yeah again, home inspection is a snapshot in time. So home inspector responsible three months later? No, that's probably not a factor. And previous owner again, three months have passed, you've been using the home and that's something that that previous homeowner isn't going to take responsibility for either.
Speaker 2:No, are you kidding? Three months later they've got their own life, They've moved on.
Speaker 1:This is now your asset and your responsibility.
Speaker 2:This is always a great conversation to have, exactly For a home warranty. So these are the type of things that when we're working with a buyer or even a seller, we just want to let them know hey, things happen, things break. Let's get a home warranty on this property and make sure that. I mean, I don't love home warranty companies. No offense. Home warranty companies no, I don't either. Like I'm in a dispute right now with one and I'm not a happy girl about it, but I'll keep that to myself.
Speaker 1:They're not perfect.
Speaker 2:Their contractors are not perfect.
Speaker 1:But they are a solution to handle a problem that can take some of the stress off you Right.
Speaker 2:Right, and the financial burden. Well, I don't know about that. This same problem on having them coming over for a dishwasher, and it's $75 each time they come over. They've been over three times. I'm like I'm halfway to buying a dishwasher already.
Speaker 1:Well, if you recall them most home warranties if you recall them within the first 30 days, they won't charge you that $75 fee again. Right, so it goes past that 30 days.
Speaker 2:No, this is the same reoccurring problem that they keep coming and putting a bandaid on. I wish it was 30 days, but no, it's been Just over time Space over last year with this dishwasher. And I'm just like, I'm just like. I'm just like, I'm just like. You know me. I sell your product to people like get it together. So, um, you know, perfect. No, they're not perfect. But now I have a dispute. They were going to offer me would they offer me, a $300 Lowe's gift card. I disputed that. I was like are you nuts? I can't even get to a Lowe's and get a dishwasher for less than 350 bucks on sale and that's like a bottom of the barrel.
Speaker 1:You know this is you know the old like white one that was like the base original model. Yeah, yeah, yeah.
Speaker 2:I'm like that is not going in the kitchen. Yo, this is got to be um apples for apples, right? If I have a Kenmore elite, I want a Kenmore elite. If I have a bespoke Samsung, I want to bespoke Samsung.
Speaker 2:So anyway, that's my dispute right now. But I, as as quirky as they are, you're absolutely right. They it is nice when it is something quick and easy to fix. Pay them $75. They come out, they fix it, it's over. And then, like, let's say, it's the water heater. They come out, change the heater core and, boom, you're good, clean the sediment trap, bum, moving on.
Speaker 1:A lot of times that they have to do a replacement on something like a water heater. You do have to, depending on the type of plan. If you have like one of those premier plans, then it's probably going to cover all the expenses and the code, upgrades and everything like that.
Speaker 1:But if you have, like a very basic plan, um, you're going to have some out of pocket expense. Like, for instance, I had to have my water heater replaced by a home warranty company and my out of pocket expense was 400. I have a basic plan. I just, you know, I renew it every year and I'll see the reason for the upgrades. But yeah, but yeah. So it was a $400 out of pocket. But to buy a new water heater, get it installed and we have to have permits on gas water heaters here in the valley, so it would have been 25, 2800.
Speaker 2:Yeah, no, there's definitely. As much as they are not perfect, they are definitely worth it. And if you don't have or you're not used to having a home and having reserves let's say you're a first time home buyer or something like that then those repairs are going to be costly for you. Definitely, keep that home warranty on as long. I mean, like you, I renew it every year. Yeah, even though it bugs me. Some years I don't use it, but it's there and have it and for me it's not.
Speaker 1:I'm just, I'm really busy and when something breaks I don't want to have to think about it, deal with it, get people to come, do quotes or whatever. So it's like I call them, they worry about it and they get it and get it handled.
Speaker 2:Right, if you've been in the valley, you know how hard it is to get any kind of contractor to come to the house, At least if you have a home warranty. You have a one stop reference. Like I need my AC service.
Speaker 1:One phone number.
Speaker 2:Yeah, here you go, take care of this, and then you can get plans that cover pools and everything else that you're getting in this house. So you know I don't love a home warranty, but for the integrity of your home it's not a bad choice, all right.
Speaker 1:Yes, I agree. So it looks like we're only going to have time for one more question. We get these things get lengthy, right that way. I like Kenny's, then Kenny's is great. Yeah, I've gotten similar questions like Kenny's a couple times over the years.
Speaker 2:I have a client right now who is a Kenny Like. When I read the question I was like, oh, that's my client, but he's not named Kenny. But I want to trade in my house for another house that's the same price as mine. How do I do this, trish?
Speaker 1:So, kenny, I think this mindset comes from like cars, right, right, because you, you know you have a car and you're like I want to trade in another car for the same payment. Sometimes people are like, yeah, that works, you know, or whatever, right.
Speaker 2:A depreciating asset versus an appreciating asset.
Speaker 1:Right. So it does not work really the same in houses when it comes to that you could have. I mean, you have an interest rate on your house If you are, let's say, trading and I don't even like the term trading houses, because it doesn't really work that way but like, say you're, you know you're selling your house and you're getting another house. Well, now you're getting a new mortgage with the rates that they are today, right, which changes everything. Which changes everything. And just because your house is like okay, my house is, my house right now is 500,000. I want to buy this other house in this other area. That's also 500,000. It's not really apples for apples, because you're going to have escrow fees.
Speaker 2:Because you're going to start a new mortgage. But you didn't pay 500,000 for the house you're in now. It is appreciated to 500,000. You may have paid 380. Right, so your payment is at that 380 price point. You're not going to move into a $500,000 house and have a 380 price point for your mortgage payment.
Speaker 2:I mean that's just not the way it happens. And interest rate is also a factor, because if you're in a 3% interest rate right now, it is definitely not going to be lower if you're getting into a 6% interest rate, Right Right. So in that case you have to sort of downgrade, go from like a house to a townhome or something.
Speaker 1:Or expect a yeah or expect a. Most people, when they sell their house and they want to like a move up home or something like that, they expect that and anticipate it, and you can use some of your equity towards the down payment Totally.
Speaker 2:That's what everybody does.
Speaker 1:So there are some numbers there and there may be a scenario where it works, but we don't know that off the question. So I think my best advice for Kenny would be schedule a consultation with a realtor and talk to them or us.
Speaker 2:You can call us, you can email us, send a messenger. Pigeon, we're here to answer questions for you.
Speaker 1:Yeah, so schedule a consultation with a realtor, go over those numbers, go over a net sheet, go over what the entire picture looks like and see if that's an option that works for you, because it may be an option. You may have enough equity in your home to be able to make the transition happen. Right, but by all means it's not a trade-in.
Speaker 2:No, it's not. It's not a trade-in. The client that has a very similar mindset as our question asker Kenny here, basically wanted the same exact house. He had 2000 square feet, two storey, two car garage, you know 8000 square foot yacht just right down the line, and in order to, but he didn't want to take on the payment. He wanted the payment to be the same as the same as now.
Speaker 2:So I went through every builder. I did everything I could and the closest I could come would be a 1700 square foot town home for him, but it had the two car garage. It didn't have the lot, but the payment was going to be the same. He's only losing a minimal amount of square footage. And so I thought that was a good solution for him. He wanted to pull the equity out of his house and pay off all of his debt.
Speaker 1:Oh, instead of putting it all in to, instead.
Speaker 2:Of moving it over, because most people move out the equity from one home and put it directly in the other. That brings the loan amount down, the payment down, all of that stuff.
Speaker 1:But well and I understand where this concept comes from, you know, back to the car dealerships, because I know someone that has. They had a, you know, a few years older vehicle and they went to the dealership and said I want to trade this in for the new model but keep the same payment. And dealerships like, yeah, we can make that work. And I, who knows how they work those numbers, I don't know, but they made it work. He got the newer car, same payment. I'm sure the loan balance was a lot right A lot steeper.
Speaker 2:It got rolled into something.
Speaker 1:Yeah, so it got rolled into something. So I understand where that principle comes from. If you're familiar with car dealerships or you do a lot of that, like auto trading, you know type of things, but in housing it works a little bit different.
Speaker 2:A little bit different indeed, yeah yeah. And if you do have any of those questions and you did really want them answered if it's something that you do have a concern for it, you can always email those to Vegas realty check at gmailcom, or you can just pick up the phone and reach out to us, trisha, if they want to talk to you. How did they get a hold of you?
Speaker 1:You can call me or text me 702-308-2878. And Tiana, how do people get a?
Speaker 2:hold of you. Yeah, cell phone is always good for me. You can reach out at 702-379-9948. And we can just have a conversation, see where you're at and what you're looking to do, and that all works. If you did find value from this content or like watching the quirkiness of the show, make sure you like, share and subscribe so that way you don't miss out where you're here every Thursday.
Speaker 1:We're here every Thursday 9.30 am 9.30 am in Vegas. Yes and yeah, Vegas time, so tune into the show. You can download us on anywhere that streams audio.
Speaker 2:Yeah, yeah. Anywhere you get your podcast, you can also listen to us.
Speaker 1:Yep, and we're live on YouTube and Facebook and check us out All the stuff. We got all the stuff. Wherever you want to find us, you can find us. We're out there. Vegas Realty Check Website for the audio downloads is RealtyCheck Vegas.
Speaker 2:All right. So now you know how to get a hold of us. Go find us Vegas.
Speaker 1:All right, thank you. See you guys next week. We'll see you next week. Have a good week. Bye. I'll see you guys next week. Bye.