Homebuyer Horror Stories! Halloween Special

It's Halloween. So today we're going to talk about home buyer horror stories. All this and more on Indy's Real Estate Gurus. Today.

Advisors Mortgage Group is proud to present in these real estate gurus hosted by Rick Ripma and Ian Arnold, the hard working mortgage guys, please contact Rick Annie and for all of your mortgage needs at hard working mortgage guys.com That's HardWorkingMortgageGuys.com. Now, here's the HardWorkingMortgageGuys.com, Rick Ripma and Ian Arnold.

Hi, I'm Rick Ripma. And I'm Ian Arnold. And we're both with Advisors Mortgage Group. And we are both the hard working mortgage guys. Right.

And we really do appreciate you joining us today. We also want to talk about we have our podcast. And so if you want to listen to all of our shows, I think we're up to 36 or 37 shows that we've put on the podcast

yet. You go to Indys Real Estate Gurus or Indys Real Estate Gurus, or you can go to HardWorkingMortgageGuys.com to get in contact with us.

That's right, and Indys Real Estate Gurus and and then we want to talk about some of the numbers. Yeah, what's going on in the market? I think it's important that we do, you know, everybody's worried about interest rates. And it's funny because we were talking to somebody just a few days ago, and she was saying, you know, she just didn't see rates ever going back down.

Yeah, I mean, I think then we've talked about it several times. It's the short sighted thinking, and I and we both talked to her and stuff like that. And it's just like, you're only looking right now. And what you got to do is you got to look into what's happened in the past, in compared to what's going to possibly happen in the future. And what normally happens is Yeah, rates go up, and then rates will go back down. It just takes time. And what's it like we always say almost every single week, especially with the recession or so maybe recession, however the government wants to find it. But the inflation is so high right now, once that starts dropping, our rates will start dropping.

Right? What I've noticed, and I think there's actually it's like a, like a physical law, I don't know. But it's if rates are going up, everybody thinks rates are gonna go up forever. So what I noticed is, people will lock at the highest rate that we ever have, because they're scared to death rates are going to continue to go up. When rates are going down, people won't lock at the lowest rate we ever had, because they think rates are going to continue to go down. So there were people who when rates were in the twos on a 30 year fixed rate, wouldn't lock the rate, they wanted it to go even lower. Because we I guess we just don't want to lose out, we don't want to miss out. But that can be a huge problem and a huge issue. So it's one of those things you just have to know. And you have to get used to. And you just have to let's not rates are going to come down, rates are going to go up. That's one thing that I can tell you after after many years in the business, rates always go rates go up and rates go down. And that's just what they do. I mean,

it's similar to when I first open up a bank account, or sorry to get a job, my dad took me to the bank. And he's like, alright, so and he sat me down, and which was great. And he's like, Alright, we're gonna open a savings checking, and then we're going to open up a Roth IRA. So we're sitting to the guy, the guy's like, So what type of you want to be your age, you should be very competitive, or very risky and stuff like that. He goes, here's the thing, he goes, don't look at it every day. Because it's gonna go up, it's gonna go down. He goes, you're looking at the long term, as the same thing is, in this is your you want to look at the long term. Again, a rate can change, as you're hearing, and I've heard on several commercials and even serve our meetings. Yeah, your date, the date the rate, but married the house,

if that's what you're looking at. That's how you look at it.

I mean, so here's, here's a good way to look at it is, let's, I'm just making up numbers here. Let's and for quick, easy math terms. Let's say rates are 6%. So if you're at 6% now and then two years, they dropped down to 3%. Guess what you can refinance, you're probably going to have equity in your house because of appreciation or the last two years. And so you may not have any, we may be able to help you out with the closing costs. So then it's no closing costs and you reduce your rate in half. Again, those are numbers that

your examples they're not they're not set in stone, there's no guarantees. We don't know. We are not Miss Cleo. But you know what your point I think is is that when you say date, the rate marry the Home, we're talking about somebody's looking at purchasing a home. And people are thinking, Oh, I wish Should I wait? Should I wait? Should I wait? Well, there's a lot of a lot of the benefits you get by buying a home today go away when rates go down, correct. The market we have today, the market today is your many homes, you're able to negotiate on, not all, many of them. home sellers are a much more flexible. There's it's a different homes are sitting on the market a little bit longer, not a great home doesn't. But some of the homes are sitting there just with the rates going up. if rates go back down, all the people that got out of the market, because rates of rates have gone up, are going to jump back in and you're going to have this very competitive market again, along with that homes are just naturally appreciating, we're still seeing no matter what you hear on the news, we are still seeing appreciation at double digit levels.

Yeah, and the average was like 5%. So Right. I mean, if you're a double digits, you take that every day,

every day. So what you're looking at if you if you wait, the house goes up, the market changes and it's hot again, because rates went back down. And you can eliminate all that by buying a house today, you buy it at a lower price, and you pay a little higher interest rate. But in six months, eight months, a year, two years, when rates come back down. I think personally, I think it's going to be the eight months to a year and a half at the longest. I think it'll start coming down sooner than that maybe at the end of this year, early next year, for a lot of reasons we won't discuss. And so I think that's what's going to happen. So it's, that's why we're saying you, you go ahead and buy the house. Right? You marry it. Yeah. But the rate, you date it, you date it, because the rate is something that's going to change. And you have the ability to get to get if rates go down to refinance at a lower rate. However, let's say you don't read, let's say you don't let's say let's say rates go up. Our advice is still good, because then you got a better rate. Correct.

And you have your house, it's it's a no lose. I mean, it's and again, if you missed that podcast, what we talked about last week difference between renting over a period of time and buying over a period of time, the financial gains, and even the emotional, we went in that both last podcast, but that it's phenomenal for a home owner, not a renter, I'm telling you this right now. So again, buy the home, or marry the home date, the right,

exactly mirror the home date, the rate, that that's kind of the key of what we're talking about. But you really have to just be really careful to to think, you know, to make a decision without actually understanding the implications, you know, it's kind of like they there's just use a law, they'll come out with a law, right. And then they'll later realize that they never considered the consequences of what they just did. And they'll find all these negative consequences and have to change it. Although unfortunately, with laws, they don't tend to, they just leave them. But that's you don't want you can't really foresee that the consequences. So you sometimes you just have to you have to do your due diligence, make sure you're making the right decision. If you need to buy a house, you want to buy a house, you find the right house, the interest rate right now should not be holding you back as long as you can qualify correct. Because you when rates go down. And yes, rates may go up first. rates go up, rates go down. We've had rates in the teens, and we've had rates in the twos. That's what happens. That's normal. That's not something to worry about. So to me, I think that's that's a good thing. I was talking to a real estate agent just the other day. And they were saying that they were talking about the market and how strong the market is in Hamilton County. Oh, it's phenomenally strong. Yep, it's almost it's almost all the donut counties are doing really very well. Hammer or Marion County. Certain air pockets are are tough pockets that are normally pretty good. Broad ripples they were telling me is it's not what it you know, it's it's down. But you know, broad ripples had a lot of bad press lately.

Yes. For the I think for the last seven, eight years. It's gotten pretty, I mean, a lot of bad press. But again, everything has their ebb and flow does you're gonna have those type rates. I mean, just like Marriott Marin County, you don't realize how much diversity it includes. So and I'm talking, I'm talking income and even where you live and stuff. So that's going to you're going to have the As little pockets, I know that sometimes you're gonna do great. And then they're going to drop a little bit and they're going to go back and doing great. I mean, they might their their gains will probably be usually higher than their drops. But and then overall, you still have your gains, but you just have to look at it as that now I grew up in Marin County. Yep. I grew up in Broad Ripple. So I grew up in Florida, and then I moved to Broward. Yeah,

well, yeah. But you move pretty young. Right? Yes. And abroad. Rob? I grew up. I mean, I went to North Central High School, I, you know, I grew up in and Marion County. And I it's a, you know, like you said, there's a lot of diversity. There's a lot of phenomenal places to live in Marin County, but there's, they're not doing as well right now. But like you said, ebb and flow, ebb and flow. It's just how it works, right? And what are we going to, you know, what happens with your market, you know, or any market we, there's nobody who can see the future. But we can look at the past. And although the past doesn't necessarily mean what's going to happen in the future. I mean, it's pretty accurate. If you look back far enough, and you see what's going on. I just, I just really believe that, that it's a it is a actually a much better time to buy a house. Now it's much more, not that it's a complete buyer's market. But it's definitely turn to the buyer, where it was 100% for the seller's market.

And the reason why we say that is, yeah, rates have gone up a little bit. But guess what, you're not competing against as many buyers out there in the market. You now we're starting to see a lot of times the sellers were alright, so you need to wave your inspection, you need a wave all this? Well, now, when there's not as many buyers out there do people are not. There'll be like, oh, yeah, you can get your house inspected. We're not waiving this or, and so you're able to negotiate more, you're able to do that type of stuff. And you're able to take your due diligence. I mean, houses are still selling quick. We see the My board reports, I mean, especially around here, it's 1012 days, I mean, so don't Don't push your luck. But you can do your due diligence.

But you know what, what you just said is, what we want to talk about today for the Halloween special is the horror stories of buying homes. Correct, and not having an inspection can create horror stories for you.

Yep. And so, here, we'll go to the break. But let's go through some of these horror stories that we hear. And we've seen now, some of these, most of the I will say probably 90% of them is stuff you hear from other homeowners and most times we don't hear about it, because we try to guide people in the right way. And I mean, especially and we'll get into that here in a little bit, but

Well, I've been in the business a lot longer than you have. So I have oh, so that I can tell you down the wrong path. I know I laid them down the wrong path. But this is why it was it was so scary to me that people would waive a home inspection so we don't have a letter doesn't require a home inspection for the most part. Okay. In fact, we don't on an FHA, the the appraiser may come up with some some items that they see things like that, but they don't do a full inspection. So before the break, I just wanted to very quickly just talk about one that I saw personally. All right, this was a brand new home these people bought a brand new home, built it beautiful house didn't have an inspection on a brand new home didn't think they needed to.

I mean, right? Yeah, you want to take a brand new is right out of the box. That's right.

So three, four months and they started to have this really bad smell and their house. They didn't know what it was. It was stinky, it was terrible. So they they had a warranty on the home. So they called the builder and had the builder come and and you know try to find out where the smell is coming from. Now this is about as horrible as I can think for me anyway personal. They didn't hook up. We do have to go to break. Yeah. Okay, well, we're gonna break we'll come back

and we'll find out what was so stinky in that house.

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Welcome back, and thank you for joining us, you know, we're gonna go real briefly, we're gonna go to the question of the week. But before we do that, and we thought we'd get back to what was so stinky in that house. I'm Rick Ripma, your hard work and mortgage guy and I'm Ian Arnold, and

we're both with advisors Mortgage Group.

And we're both hard working mortgage guys. In fact, we are the hard working mortgage guys we are and this is Indys Real Estate Gurus radio show. We also have a podcast Indy's Real

Estate Gurus, gurus. Sorry, I just had a brain fart

and the you think and you think I'm all

setting in old timers already. This is bad. You're

You're the old one around here. Yeah. So in these real estate gurus, you can you can look it up on the podcast. Right. And we're on everything. I noticed the other day, I saw that, you know, everything I'd signed up for it's it's all there now. So again, the old guy signing us up. No. I didn't know how to spell the podcast a year ago.

You asked me what's that? worldwideweb?

Yeah, yeah. But let's get on to the question of the week. Now it's time for questions with the gurus.

The question of the week is brought to you by the reducer mortgage. It's our inflation fighter where the price of everything going up, call us today to see what we can do to help reduce your overall payment and help out your bank account. So the question last week was, why didn't the skeleton cross the street? And every parent should be doing this with their kids all weekend. It didn't have any guts.

So terrible thing.

So, Rick, we're talking about the horror stories and everything like that. So I'm really curious what happened with this house? And why was it so don't tell me the wife was hiding dead bodies? No, there

were no dead bodies in this house. Although that, you know, I said this was probably the worst thing I can think of. But I think you just would have taught that had had there been dead bodies in the house, that would have been really bad. They came they inspected it. And they found that the sewer line had never been hooked up. So all the raw sewage from the house was going into the crawl. They had a crawlspace. And they had a basement where the sewer lateral hooked up was was in the crawlspace. And it was all pouring into the crawl.

That is one job. I don't want to clean

up. Oh, yeah, it's terrible. Well, you don't want to live there either. No, that, you know, they had to move out of the house, they had to come to, you know, remove everything. It was it was not a pretty thing to have happen. And it's one of the reasons that, to me, that's a huge horror story. And it's definitely one where people need to have an inspection. This next one was also a while back that I think is a I think is a big issue. And it's something that comes up I've actually as I've been looking I looked online to find others. This isn't the only house that said this happened. This was again was another brand new home it wasn't a builder I worked for but of course you hear about these things in the industry. And these people moved into the house and it took a while it's probably a year maybe two years down the road and they started having health issues come to find out that when you when you brick a home there's a gap and then there's you can see like what they call weep holes in the in the in the in the brick you know where they were the mortar is they there's so that the water can come out somehow they they didn't have either I don't know really what happened. It was either not the right space, they didn't have the weep holes through whatever it was water built up back there. They ended up with black mold in the house. And again, I don't know if they had an inspection or not. I don't know if an inspection would would find that. No, of course it was a new home bought from builder, the builder ended up paying for it. But I think I think it was part of why that builder ended up out of business. Oh,

right. I mean, that'd be a big lawsuit. And just imagine if that if, because most builders they build it based off of specs will all the specs are basically the same. Say they did that to several houses?

Oh, yeah, I think it did. I think it was several houses. But here's the thing. What's the horror there? Okay. It's Yes. But both of these you, you know, it's terrible. It stinks. You got you're getting sick all that you have to move out of your house. Once you move out of your house, you're out of your house for weeks months. Yeah. Could be years. I don't know. You just never know how long it take them to clean it up. Yeah. And maybe this builder bought the house back? I don't know that probably is what happened. They probably just bought it but still brought

it back. Terrible. Think about what you had to do. Where are you staying? That's a horror. Yes. And you had to go through the process all over again. And then not only that is then every time you go through it, you'll be like, Oh, what happened to this house? So then you have to explain to the lender and all these other people going through what happened with this house? I mean, that's just something I would never want to go through.

You know, I don't like moving. Right. So I've always, you know, I've been in my house for over 30 years. I don't like moving. Here's what I've learned though. I just had my house remodeled. If I had the choice, I'd move over remodel.

Let's be honest with you. I think that was one of my points. And that was because I saw you go through it. And it even even it goes with me is sometimes renovations. I mean, it can cost more than what you think. And I think that's some of the horror stories. And let's be honest, if you ever watch that was an HG TV, and watch those people remodelers, couples homes, and I think it was love it are listed. I think they do a lot of that. And it's like, oh, well, we took this bathroom apart. How did you see this, the wall, the pipes are leaking. Now you got to replace all these and all this stuff. Sometimes renovations, I think can add up a lot faster than what most people think

you uncover so much. For, for instance, for us our houses is we don't know how old it is. But we know it's based on the way the construction was done. We know it, it's probably 100 years old. And when you get 100 year old home or even an older home, maybe even some of the new homes, who knows, you know, your floor is one of the big issues the level it's not level it's not. You know, it has dips in it, it has, you know, just issues right. So, we went both both downstairs and upstairs, the floor was a huge issue. And it's one of those things you talk about a horror, you know, there we had, we pull off your your floor. Right. And, and you see areas that I mean the wood the underlayment in this case, the under we didn't have underlayment like you would normally have in a in a house because it was so old. What it had is like, one by six pieces of wood laid diagonal. Angled across, okay, most of the or not all the or some of them did have where they had had problems, they took that out and they put in and none of it was so you're you're the original underlayment, which was this one by six Wood was not as tall as the underlayment that they put in. And when you had carpet you couldn't tell. Right? Yeah, talk about horrors. When you don't have carpet, and you want to go with a more of a hardwood. Now all of a sudden, you have to rip all that up and make it all flat. So there's level and there's flat. And this was not flat. So what you know, our our, our cost increase for the entire project went up a third. And it's just one of those things that happens. And it's why when we do renovation loans, things like that. There's a cushion, you have to put a cushion in people like well, my contractor said, but the contractor always says we you know, there's things that can happen behind the scenes. You rip a wall out and you find out this isn't done right. And that's a big, that's another big thing. I found everybody who's ever come into our house, and this is a horror to me. My wife laughs because she says they come in and they'll come into and they'll say, ma'am, we have a problem. And it's it's always something it's like, and then everybody tells us the last contractor didn't do it right. They're gonna do it right. So they do it. Five, eight years later, somebody else comes in. That contractor told us they were gonna do it right but the last contractor did the new contractor says they didn't But it's just never ending, never ending battle. And it's a horror. However, I don't want it to sound like it's not a good thing down to house because the reality is, I'm hundreds of 1000s of dollars ahead by owning my house. So it's worth those headaches. Besides that i It's enjoyable. Yes to live in your house. Yep. Now I have kind of dominated this. That's all right. I apologize.

I mean, you're gonna have a little bit more stories, because when you've been in industry a little longer than me and stuff like that. I mean, my one of my big ones is when my wife and I were shopping for a house. And this is why you want a good realtor. And so we're going around with the realtor and we found a couple houses we like, she goes, alright, if you guys have time tonight, I want you to come back and drive by both of these houses. And I'm thinking, why can't see anything at night? What am I going to see? But and she goes, Well, you want to see what the, the, how the neighborhoods are? And I'm like, Okay, well, I'm not doing anything tonight. So my wife and I, we went, got a couple of coffee coffees went ahead and took the drive. I'm glad I did. Because one of the neighborhoods had cars lined up on both sides of the street just parked. All these people were at work when I looked at the house the first time, and I'm like, I'm gonna have to fight for a parking spot. If I go somewhere at night. I'm gonna have to worry about hitting cars early in the morning. I go, I was like, No, this is not somewhere I want to live. Does that look good? either? No, it does not. So I as soon as I saw my realtor, when we looked at some more, I was like, Thank you for telling us that. Because that's not something you think about you go out and look at a house. You're like, oh, this house looks awesome. But you don't realize what could change based off of people coming home from work and school and you got all those cars and, and stuff like that. I'm like, I moved in an older neighborhood now. And it's nice, because there was a lot of older people, they take care of their yards, they do all this stuff. And when older people guess what, they don't have a lot of cars, they have one or two cars they don't have. So they pull in their driveways. There's not a lot of cars on the street, and stuff like that. So definitely, I would say look at a house more than twice.

Well, they probably don't fill up their garages too. That's another big thing. But I can't believe it. We're already out of time.

Man you took up all my time. I did take up all your time. But we have great news. What gurus joining us next week,

the awesome real estate guru, Jeremy page with Carpenter Realtors. He's, he's one of the best in the industry. It's, it's he's a we're gonna find out a lot more about him. I think it's going to be really interesting for people. So please join us next weekend in these real estate gurus. If you want to listen to our podcast, go to Indy's real estate gurus. And if you want to talk with us, it's HardWorkingMortgageGuys.com That's HardWorkingMortgageGuys.com. Thanks for joining us. Have a great day.

Branch NMLS number 33041 Recruitment NMLS number 664589. Ian Arnold's NMLS number is 1995469 equal housing opportunity, some restrictions apply?

Well, first off, thank you for joining us, Danielle. I appreciate it. And I just was curious, how did you come to find out about Rick Ripma and advisors mortgage, oh, I was looking for a mortgage for myself for a brand new home that I was building. And I wasn't sure the direction to go, I didn't have anybody in mind. So I kind of just spoke to whoever I could speak to, I got their number. And everything seemed to be exactly what I was looking for. So I went with them. The thing I liked the most about Rick and his advisors mortgage is that I could go and upload things online. And I didn't have to always be on the phone with them or sending them documents or trying to look for certain things that I needed to get the process going. Which was really great for me, I had a processor named Mark Coleman, who really helped me out in making sure I had everything I needed because I I didn't know the first thing about having a mortgage. So it was awesome to have so much help. I think probably what I've benefited from the most is really just the understanding that sometimes I would get busy and maybe I forgot to upload a document or I forgot to do a certain part of the process in a timely manner. And they would get right back with me and it wasn't like a hey, we really need this right now. It was always Hey, just wanted to make sure you still remember that we need this. Well you don't get that too much. In this day and age. It seems like most people are either very demanding of something they need from you and they need it right now. And, and I agree I've seen that in Rick's attitude with us over over the last 10 years that he's very patient but also helpful to get the right things he needs. So exactly. In conclusion is Rick Ripma and advisors mortgage somebody that you would use in the future and or tell your friends and family about absolutely and I just want to thank them for all the effort they put in to help me find my dream home.

Ranch NMLS number three 3041 Rick Ripma is NMLS number 664589 equal housing opportunity some restrictions apply

I'm Rick Ripma You can go to hard work your mortgage guys.com