Top 6 Reasons Homeowners Are Selling Their Homes Now!

The top six reasons homeowners sell their homes and why this is important to know if you are a homebuyer 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 and Ian 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, it's Rick Ripma, your hard work and mortgage guy with advisors Mortgage Group.

And this is Ian Arnold with advisors Mortgage Group. And if you missed our last week's conversation, definitely go to our podcast, Indys Real Estate Gurus. And also if you have any questions, or you want to talk to us about anything about getting refinance or getting a pre approval, go to HardWorkingMortgageGuys.com that it's HardWorkingMortgageGuys.com. So Rick, what, what article or numbers stood out to you this week?

Well, first let's talk about mortgage rates, mortgage rates are up. You know, again, it's kind of interesting, if you look at mortgage rates were still historically very low. And what I find is, we as humans, we tend to want to focus on what we just saw, not not a long history of things. So if you look at if you want to compare with what we had, you know, a year and a half ago, they're up, if you want to compare it over the last 40 years, we're about average,

well, you don't have to go that far. If you go back to anywhere like Oh, eight to 2010, they were right around the same number two, I saw a graph about that. And I was kind of shocked, because I was a little before I got into the market and everything started looking. But it's not it wasn't too far off, which kind of shocked me for a little bit. But I mean, there was a it went up a little bit and it comes down and just like we talked is roughly gonna probably do the same thing.

Mortgage rates go up and mortgage rates go down. Back in 1990. That was a little while ago, when I got into the business, I was in New Home Sales, and rates dropped under 10%. Nobody thought they would ever be under 10%. Again, and that was like a huge party and everybody wanted to take advantage of rates under 10%. It was a boom rates were just they were nine and three quarters. Our rates today, I'm not saying they're great. They're average. It's just what we're used to. Right. That's and that's the problem. And you know what, and obviously there are times if you have a low rate on and you want to refinance and you have debt, things like that there can be times it makes sense to do that. But it doesn't make sense to just refinance, and even to refinance. And one of the things we do a lot is you refinance, and get them out of mortgage insurance, especially when we have these increases in the appreciation that we've had correct. But in this market, that doesn't make any sense. However, relief is on the way, I believe it's going to be a while it's probably going to be six, eight months, I think somewhere between six months and a year and a half, we are going to see lower rates. So if you're looking at buying a home, okay, yes, rates are up. But guess what, there's not as many buyers out there, because some of the buyers have been eliminated from the market. So you don't have as much competition, you're going to be able to buy now, they're still looking at appreciation of somewhere between three and 4%. This is just what they're estimating, they keep coming in higher, and they keep estimating the same number. But that's what their estimate. So let's say it takes you, you know, a year to you buy now, or you buy in a year, if you buy now you save the 4% appreciation, you get the rate and then you refinance. When it comes down, you save a bundle of money, it makes sense if you can qualify in today's market to go ahead and buy a home now. And the start of that is always to call us and get a pre approval. That's what makes sense. It's kind of funny, I was talking to somebody the other day and they said what they said why do people start with a real estate agent? Should they start with the lender?

I think that's more of a you don't think about that as as as a buyer, and when you're looking at houses and wanting to get a house. I mean, think about it's like shopping for a car, you don't go straight to the finance manager there and get pre approved first No, you go look at the cars. It's the same thing you want to do if a house I think that you just had that mindset that I want to go look at the product before I try to think about the money part. Yes, but it's wrong. It's the wrong it's the wrong it's the wrong way in any other industry. That's the way to think about it and in homes, that's not the way to think about it.

Well, even a car, okay, the last time, the last time few times ago when I bought a car, okay. The first thing I did is I went online, and I got pre approved with a lender. Number one, I wanted to know what interest rate was going to be. I knew because I'd been in the car business, I knew that they're going to have an f&i manager, or somebody wanted me to do my financing. I wanted to know I wanted to, I wanted a an interest rate I already knew I could get right, yeah. So that I had something to judge it by, and I already was approved. Okay, it's a lot more fun to go look at a house or go look at a car, when you already know, you qualify. Correct. You go out and you're and you're looking at a for like me. I mean, I'm in I'm in finance, I knew I qualified, but there's still that little bit in the back of your mind that I wonder if something's going to happen, you know, I wonder if this isn't going to work out. So I went and got pre approved, I knew what I could do, I actually use the dealer's financing because they had better financing. But they just happen to have a little lower rate. And I didn't hadn't talked to anybody I didn't, I had no no experience with it. But I just did it online, but I knew I could qualify, I knew I could go forward. And they actually beat the deal. They beat it. And I was getting a low rate and they beat it. I was shocked. I was like that time, car rates were ridiculous. They were unbelievable. It was like you have to finance it's cheaper than I invest better than that. But anyway, that's, that's the start of it. So if you're looking, if you're thinking about buying a home, go to HardWorkingMortgageGuys.com. Contact us, let's talk about what it is you want to do. We'll walk through everything and make sure you have all the right information. So you're prepared to go buy a home, your real estate agent actually likes it, when you come with a pre approval letter. They like that, that you're pre approved, they want you to be they want to know they're working with somebody who is ready to go qualified and can can buy a home, the seller wants to know you're pre approved, that is vitally important. I mean,

the same thing even you want to make sure you're pre approved. And the reason is, is your time is money. So I mean, I know a lot of people look at it that way. So if you go out and spend four or five hours on your weekend, looking at a bunch of houses, and then you find out hey, wait, I'm not approved for 300,000, I'm only approved for 250. Well, then you just wasted four or five, four to five hours of your time looking at houses that you are never improved for.

Absolutely. And you know, the other piece of that, and I think it is fear. I think that it's it's it's somewhat, you know, even very, very well qualified, almost, in fact, almost always very, very well qualified people are just not 100% sure they're going to be financed, and they're perfect. There's no reason they shouldn't feel that way. But if let's say you have some issues, let's say something comes up that you didn't know about. If we do it first, we can probably almost always fix the

issues. Yes, we can head off the problem from the start right? Before you

go looking at homes, have you pre approved, have you ready to go even if even if it's just trying to you know, for most people just get the credit score up a little bit. Sometimes that's that's all you need to get better financing. Time help. So if you're before you go look, it, I shouldn't be preaching like this. I just think it is so important. And it's actually how I do it. When I buy a car. I just think it's the right thing to do. And I really believe the best thing, if you know of anybody out looking at a home, want to buy a home wanting to sell a home, if they're selling they're probably gonna buy they need to be pre approved a seller. Let's look at that. We haven't talked about that. If you're going to sell your home. Wouldn't it make total sense to make sure you qualify to buy the next unless you're paying cash? You shouldn't should do that. Yeah,

you don't want to sell your home and then be like, Oh, no, I have nowhere to live.

Exactly. Yeah. So you should do that. First. I've

Advisors mortgage brokers licensed by Indiana had people you know, that have done that, where they sell their house. Once they sell their house. Now they're ready to go out and look, they they call me. We work on everything. And all of a sudden there isn't always something that's accurate, but there's 50% of all credit reports have erroneous information on them. Most of the erroneous information doesn't matter. Some of it does. Some of it hurts it. So if there's something there we need to be able to have time to fix it and that and you don't want to be homeless or all of a sudden, you sold your home and now you have to do something that's going to take 30 days and you're supposed to close on a new you know your home and you're gonna be out of your house. So it is the safest way Do it HardWorkingMortgageGuys.com That's the best way. That's what I would definitely recommend. Before, you know, before the break, I guess I do want to talk a little bit about what the markets doing. So everybody looks at this market. And inflation inflation is a killer for mortgage interest rates, but it's a killer for everybody's finances, right? Yes, it's tough. So some of the hedge against that fight against that can be, you know, a refinance. If you're refinancing to pay off other debt. Some of it could be you could, you could, you know, not touch your current mortgage, if you have 3%, not touch it at all. And, you know, pull some equity out to pay off some of that debt. So you don't always have to touch that low interest rate. The key is, we just need to sit, you know, talk with you and understand what that situation is, so we can help you out and get you the best financing set your life up. It's stress is a killer. And the best thing to do is talk with us. The your home is one of your biggest investments normally the biggest investment somebody has, it's really important that you work with somebody who can walk you through that. We're the guys HardWorkingMortgageGuys.com. But after the break, we're going to talk about the reasons homeowners are selling their homes, and why that's important to you because it is important to a homebuyer, you need to know so you understand the structure. We're going to talk about that after the break. Department of Financial Institution equal housing opportunity. NMLS 33041 Rick ritmos NMLS 664589

Hi, I'm Rick Ripma. With the hard work and mortgage guys and advisors Mortgage Group where we believe delivering the best mortgage for you is why we exist and it's how we all succeed. We believe

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We believe in always presenting you with all your options. So you get the loan you want the way you want it. We believe in continually monitoring the rules, rates and market trends. So you don't have to we believe in working hard to meet your closing date so that your entire plan isn't upended. We believe in offering the same quick online process that the bookstore mortgage companies brag about whether you're refinancing or buying your first home, we believe

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Brought to you by advisors Mortgage Group, where we believe the more you know about financing a home the less stressful buying and refinancing will be.

Welcome back, this is Rick Ripma, your hard work and mortgage guy

and I'm Ian Arnold with Advisors Mortgage Group. And if you did miss our first 15 minutes, definitely check out the podcast Indys Real Estate Gurus. And also if you have anybody that would like to refinance, either buy or even sell their home contact us at HardWorkingMortgageGuys.com that it's HardWorkingMortgageGuys.com.

That's right. And we're both hard working mortgage guys.

Well, I'm a little harder worker. Well, yeah, well, somebody has to. Alright, so let's go into 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 with a price of everything going up. Call us today to see what we can do to help reduce your overall payment and help out your your bank account and make and get your savings account is going up because there's studies done recently that more people are dipping into their savings account to pay stuff off. Let's not do that. Let's not go jump into your 401 Okay, let's let's get you taken care of where you're not dipping into savings. Nobody wants to do that.

Yeah, they're doing that they're also running their credit cards up correct. So like I said before the break you can you we actually have ways to not touch your equity or we touch your equity but not touch your current mortgage to get you some money to pay those things off if you need that. But it really is a matter of talking about it and seeing what is going to be the best option for you.

Correct. So last week's question was how does it be get to school on a buzz? Bad Come on. Kids are laughing in the car and

they're I don't know if any but how I'm kind of laughing so I guess So that's, that is so corny. It's funny. That's all

that matters. All right this week is I have a neck but no head, and I wear a cap. What am I tune in next week? So, Rick, you and I were talking about this article. Earlier this week, what what was the article called?

The reason homeowners are selling their homes right now. And and, you know, along with that, I think one of the things we have to talk about, I'd like to talk about it first is, why is this important to somebody, either a homeowner or a homebuyer, and I think it makes sense, I think homeowners are gonna kind of understand it just kind of gives them an idea of, you know, they may be in this position. But it's important to a homebuyer also. And I believe it's one of the reasons it's very important to a homebuyer is, it gives you basically, the six biggest reasons people are selling their home. So when you're walking through their homes, when you're ready to make an offer, if you can get an idea, either know which one of these it is, or maybe get, you know, actually find out which it is or make it, you could change your offer to make it work for the home or the person selling the house.

Not only that is, especially when I was buying a house, you could write a letter to the seller. And sometimes you can probably hit on those main points. So for instance, if somebody was moving because their kids have gotten older, oh, and but you're just starting your family, well, guess what you might be able to letter, all this looks like a beautiful home that could raise my kids and, and they can end up growing up, that's going to hit that seller, in a heart, there's a string that you they might just pick your offer.

Yep. And if you know, on the part of that, let's say, the 31% of the home, this is the biggest percentage 31% of the homeowners want different features or amenities in their home.

Correct, right. And then what does that mean? That means, like with me is I wanted a bigger yard. Because I mean, I have younger kids, I want to be able to go outside and play and not be three feet away from the street, right? And I want to if I want to go out and play catch with my son, I don't have to go to a local park, I can walk out my backyard and throw the ball. So that was one of the features that was big for me. So you do get bat and stuff like that.

Yeah, but let's say let's say it's a bigger yard. But let's say it's the seller wants a bigger yard. Yeah, so what that would generally mean that the house probably doesn't have a big yard. Correct. Okay, but you like it, it works in your lifestyle, you don't need a big yard, you don't want to take care of a big yard, whatever that happens to be. That's great. But the seller wants to sell because it's a smaller yard. So that means at least in my mind, that means that the seller sees that as a negative of their home. That is correct. Okay. So you want to work with your agent to figure out a way to communicate that yes, you like the home, but the yards a little small, even though you're perfectly okay with it. Right? The yards a little small, we like the house, the yards a little small, you know, you just want something to help them, help yourself, get that that purchase agreement, maybe get a little better price. One of the things in the market, we had the last year and a half. None of this may probably made sense. But now the market is easing up. Now it can make sense again, so you want to try to get you want to negotiate a little bit people are, are discounting their houses, and some of those houses are being discounted. So it's a good, it's a good time to talk about this. But what if it was a garage? You know, again, you find out the wall, it works for you? Yep. But it's, they see it as a negative, you might not see it as a negative, they see it as a negative.

Correct. So for instance, I have a two car garage. But once both my cars are there, I don't really have any space. So sometimes, if somebody said, Hey, I'm just looking for a little bigger garage for a little bit more storage space, everything that's in one of those things, you can hit it and be like yeah, I love it to cargo, but I don't know if my lawnmower can fit in his garage,

right? And you can tell because you can look at their look at look at how they have it maybe they you know have one side full or you know, whatever you you can get a good idea even if they didn't have one side full so their cars are out of it. They have it open because they're showing it if you look at the floor, you can tell if there's Ben Cars in there or not.

Now, I do want to point out all these stats were done by realtor.com. So there's not something we made we did or anything like that. So and I going through it I did notice that some of these might intercept on otherwise. So of course, it just depends on how people checked it and how they read the question and check the answer. Right. So the next one is home no longer meets there. needs. So for instance, like I mentioned earlier, is you might have a couple that had a five bedroom house. Now all our kids are moved out. I don't think mom and dad need five bedrooms still. So sometimes it's just too much hassle. And they just don't want to deal with that. So they might be looking at going into a smaller might be moving to condo, so they're not to even take care of their yard. So these are reasons. And like I said, if that is the case, and you find out that they're moving, because all their kids move out. Again, if you have kids, that's something to write a little note about,

right. And you know, just like a big yard, you want a big yard, they'll say somebody has a huge yard. And that I remember selling new homes, and I had a customer come in and they were talking and it was in the fall, like like we are today, little later in the fall. And they they were talking about their yard and they had all these trees. And most people when you think about all you got a yard with all the trees, how beautiful is that? And they're like, We cannot deal with raking leaves any more. We are going to sell our house and we are moving. We don't want trees because they they had so many trees, they spend all their time in the fall raking leaves, correct, right? So if it's a negative to them, again, it's a way if you can figure out a way to communicate to him figure out what it is. It is a way to possibly get them to maybe give you a little better deal, or at least you know why they're motivated. You know, understanding somebody's motivation to do something can be extremely helpful.

Yes, that that is the hugest point. Yeah, so the next one is 26%. Need a home office to work? And I think we've seen this big time in the last couple

of years. I'm surprised it's not bigger than that higher number than that. Well, I

think some people have had to go back to office and stuff like that. And then but you also have some of the people were possibly one bedroom was empty because one kid went to college or something. And they were easily able to just transfer instead of moving. But no, I think a lot of I mean, we ran into that. I mean, especially when my kids were home when they were home for doing home school. I mean, I had to set up an office for my wife and I both I mean, so that is a huge thing. I mean, ours ended up being in our bedroom because we had no other room to do it.

Right. And you know, an office in your bedroom is not really the optimum if

you wake up, just roll right on over. Start starting on the computer. No, you need. You need a separate I think you do I don't know if everybody does, but I do. You need me. It's just like walking into an office and you can close the door and you can be just left alone. Yep.

I for me. No, I don't, I don't work out of my house. I've set up a desk and in a spare room that we have. So I can on the weekends or something if I need to, I can shut the door. I can go do that. For me, it would be a preference to have an outbuilding that I could make into an office which I don't have. Or some other area where it's, I need to be out of the house.

So if you do an outbuilding are you gonna do an outhouse to Oh, yeah,

I don't want to have to walk all the way to the house. You know, I'll kitchen the whole bed. You got to have it all. Made, my wife probably put a bedroom there. And I'll never even have to go back to the house.

Hopefully your wife's not listening to this or it's already in the make.

See, yeah, she would She's no, she would not she would never do that. She likes having me around. I don't know why. But she does.

Alright, so the next 23% want to be closer to have loved ones and family, which I most people can understand that and especially as kids graduate college, they move away a little bit and they're like, Oh, I miss seeing mom and dad all the time. Well, a lot of times they do want to move closer, what maybe not in the same city, but maybe even a city or maybe 30 minutes away instead of four hours away.

You know, I really understand that. I understand it from the kids wanting to move near their parents. If the parents are established and they aren't going anywhere. But I've seen a tremendous amount of people who you know, they have friends who have said, Hey, listen, we're going to we're moving because we want to move they've retired. Yes, I'm at the age where a lot of people have retired and they want to move near their kids. And so they move near their kids, they leave everybody they know like for me all my family's left into Indianapolis. So there used to be seven or eight of my family here. Now there's nobody just me. But they but they move and then guess what their kids do. Their kids end up moving. So you leave Indianapolis I'm just gonna they left Indianapolis. They moved near their kids and their kids moved to Dallas, Texas and they wanted to live near their kids. So they go to Dallas and they live near their kids and they everything's wonderful and tell their son or daughter in law or daughter and son in law. One of them gets a new job. And they move and they move to Kansas or what? Kansas or Cleveland, Ohio. Okay, and now all of a sudden, you're in Texas, Dallas, Texas with nobody.

I just think the parents haven't got the hint. They just don't want to be close. Be

I'm not I will tell you this. I'm not doing my I do have one son that's close by the other two are not? Well, once in Chicago, it's not too far

now. All right. So then the next 22% want a smaller house. That's less work. And that's basically what we talked about is you do get once you get to a certain age, do you want to take care of two acres of grass? Every single year?

No, I quit taking care of my acres years ago. I have somebody do it. Yeah. So you can't hire it done.

You can? I mean, it all depends on price. Or do you want to take care of all those bedrooms? Do

you want to heat them? And cool them? Yep. Yeah. I

mean, that's a lot of work. You're right. So the question then, all right, so maybe we do move into and that's what I've mentioned earlier, is we do have some of those people that move into condos, we have some of those people that just want to go, hey, it's harder for me to walk upstairs. My grandparents recently did this about a year and a half ago. They were having issues going up downstairs, guess what they did? They just bought a ranch style house. And it made it so much easier on their knees and everything like that,

right, guys? I can see that. Maybe next 10 years, we'll probably do that.

Yeah, but you'll have your outhouse here as yours just done. I don't have to do. All right. And the last one is, and we've actually hit on this a few times is 17% no longer need to live near their office. If you're not working at home, if you're not working in the office, you can live anywhere. Well guess what, as you and I both stated, certain places, they're harder to buy a house. So if you're looking at Carmel or Hamilton County, those houses go like the snap of a finger. But if you go outskirts a little bit, find the same type of house, you might be able to get it maybe even a little less price and

stuff. Yep. I wonder what's going to happen though, when? Because I know what's happening. More and more businesses are calling people back into the office. So they're half they needed, they need to come back into the office. So I don't know. I wonder if that's going to be continued to be

a trend. Yeah, I think it'll be very interesting. I think my wife's work did a survey recently. And they were asking about home to work life balance and stuff like that.

Thank you for listening to Indy's Real Estate Gurus. I'm Rick Ripma.

And I'm Ian Arnold. And we are the hard working mortgage guys. And tune in to us next week as we go through the long term benefits of home ownership.

Brent 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, Daniel. 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, you know, 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 you need. 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 33041 Recruitment NMLS number 664589 equal housing opportunity some restrictions apply.

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