{"version":"1.0.0","segments":[{"speaker":"Unknown","startTime":1.319,"endTime":4.499,"body":"Dirt with Gary Becker"},{"speaker":"Unknown","startTime":1.319,"endTime":4.499,"body":"in South Carolina's only podcast"},{"speaker":"Unknown","startTime":4.499,"endTime":8.369,"body":"dedicated to the real estate"},{"speaker":"Unknown","startTime":4.499,"endTime":8.369,"body":"agents crap. And welcome back to"},{"speaker":"Unknown","startTime":8.369,"endTime":11.309,"body":"another episode of deshon dirt I"},{"speaker":"Unknown","startTime":8.369,"endTime":11.309,"body":"am your often opinionated, but"},{"speaker":"Unknown","startTime":11.309,"endTime":14.099,"body":"rarely wrong host Gary"},{"speaker":"Unknown","startTime":11.309,"endTime":14.099,"body":"Pickering. And I am coming to"},{"speaker":"Unknown","startTime":14.099,"endTime":17.339,"body":"you again from Blair Cato"},{"speaker":"Unknown","startTime":14.099,"endTime":17.339,"body":"Pickering caster lon, in"},{"speaker":"Unknown","startTime":17.369,"endTime":20.219,"body":"downtown Columbia, South"},{"speaker":"Unknown","startTime":17.369,"endTime":20.219,"body":"Carolina. Well, guys, I'm very"},{"speaker":"Unknown","startTime":20.219,"endTime":23.189,"body":"excited about our topic this"},{"speaker":"Unknown","startTime":20.219,"endTime":23.189,"body":"week. You know, last week I had"},{"speaker":"Unknown","startTime":23.189,"endTime":26.759,"body":"the pleasure of being on a panel"},{"speaker":"Unknown","startTime":23.189,"endTime":26.759,"body":"or the Central Carolina realtors"},{"speaker":"Unknown","startTime":26.759,"endTime":29.729,"body":"Association. And the topic we're"},{"speaker":"Unknown","startTime":26.759,"endTime":29.729,"body":"going to talk about today was"},{"speaker":"Unknown","startTime":29.729,"endTime":31.979,"body":"raised and listening to that"},{"speaker":"Unknown","startTime":29.729,"endTime":31.979,"body":"question, as well as the"},{"speaker":"Unknown","startTime":31.979,"endTime":35.249,"body":"numerous comments we got on it."},{"speaker":"Unknown","startTime":31.979,"endTime":35.249,"body":"I realized it was time for a"},{"speaker":"Unknown","startTime":35.249,"endTime":38.309,"body":"podcast on this very topic. I"},{"speaker":"Unknown","startTime":35.249,"endTime":38.309,"body":"think so because this is a very"},{"speaker":"Unknown","startTime":38.309,"endTime":41.909,"body":"timely issue in our market, just"},{"speaker":"Unknown","startTime":38.309,"endTime":41.909,"body":"like escalation clauses are. And"},{"speaker":"Unknown","startTime":41.909,"endTime":43.979,"body":"of course, what I'm talking"},{"speaker":"Unknown","startTime":41.909,"endTime":43.979,"body":"about is the appraisal gap"},{"speaker":"Unknown","startTime":43.979,"endTime":46.799,"body":"issue. How do we cover the"},{"speaker":"Unknown","startTime":43.979,"endTime":46.799,"body":"appraisal gap issue when the"},{"speaker":"Unknown","startTime":46.799,"endTime":50.549,"body":"appraisal and the sales price"},{"speaker":"Unknown","startTime":46.799,"endTime":50.549,"body":"are two different numbers. Of"},{"speaker":"Unknown","startTime":50.549,"endTime":54.329,"body":"course, Gary's good news only is"},{"speaker":"Unknown","startTime":50.549,"endTime":54.329,"body":"going to be full of stats and"},{"speaker":"Unknown","startTime":54.329,"endTime":57.629,"body":"facts on COVID, particularly"},{"speaker":"Unknown","startTime":54.329,"endTime":57.629,"body":"this new Delta variant, and"},{"speaker":"Unknown","startTime":57.629,"endTime":60.059,"body":"you're going to hear what you'll"},{"speaker":"Unknown","startTime":57.629,"endTime":60.059,"body":"never hear from your media. So I"},{"speaker":"Unknown","startTime":60.059,"endTime":62.639,"body":"hope you will stay tuned for"},{"speaker":"Unknown","startTime":60.059,"endTime":62.639,"body":"that at the end of our show. But"},{"speaker":"Unknown","startTime":62.639,"endTime":65.909,"body":"before I start, I would like to"},{"speaker":"Unknown","startTime":62.639,"endTime":65.909,"body":"ask you, please do me a favor to"},{"speaker":"Unknown","startTime":65.909,"endTime":69.239,"body":"like us, subscribe to us and"},{"speaker":"Unknown","startTime":65.909,"endTime":69.239,"body":"share us with as many agents as"},{"speaker":"Unknown","startTime":69.239,"endTime":73.349,"body":"you can. before the show, I went"},{"speaker":"Unknown","startTime":69.239,"endTime":73.349,"body":"and I checked Apple podcasts,"},{"speaker":"Unknown","startTime":73.349,"endTime":77.009,"body":"and we have 43 five star"},{"speaker":"Unknown","startTime":73.349,"endTime":77.009,"body":"ratings. If you're listening on"},{"speaker":"Unknown","startTime":77.009,"endTime":79.439,"body":"Apple, go out there and click"},{"speaker":"Unknown","startTime":77.009,"endTime":79.439,"body":"that five star rating button for"},{"speaker":"Unknown","startTime":79.439,"endTime":82.469,"body":"me because of course, that would"},{"speaker":"Unknown","startTime":79.439,"endTime":82.469,"body":"be the only number of stars this"},{"speaker":"Unknown","startTime":82.469,"endTime":85.229,"body":"show would deserve to be five"},{"speaker":"Unknown","startTime":82.469,"endTime":85.229,"body":"stars, the more of these five"},{"speaker":"Unknown","startTime":85.229,"endTime":88.199,"body":"star ratings I can get and the"},{"speaker":"Unknown","startTime":85.229,"endTime":88.199,"body":"more downloads we get, the"},{"speaker":"Unknown","startTime":88.199,"endTime":90.989,"body":"better content I can provide"},{"speaker":"Unknown","startTime":88.199,"endTime":90.989,"body":"you. So let's jump right into"},{"speaker":"Unknown","startTime":90.989,"endTime":93.119,"body":"our topic because there's a lot"},{"speaker":"Unknown","startTime":90.989,"endTime":93.119,"body":"to talk about today is the"},{"speaker":"Unknown","startTime":93.119,"endTime":95.879,"body":"appraisal gap. And what we're"},{"speaker":"Unknown","startTime":93.119,"endTime":95.879,"body":"talking about is the difference"},{"speaker":"Unknown","startTime":95.879,"endTime":98.849,"body":"between the purchase price and"},{"speaker":"Unknown","startTime":95.879,"endTime":98.849,"body":"the appraisal that the lender"},{"speaker":"Unknown","startTime":98.849,"endTime":101.819,"body":"does. And how do we handle that"},{"speaker":"Unknown","startTime":98.849,"endTime":101.819,"body":"gap especially when the the"},{"speaker":"Unknown","startTime":101.819,"endTime":104.969,"body":"appraisal price is less than the"},{"speaker":"Unknown","startTime":101.819,"endTime":104.969,"body":"purchase price. And before we"},{"speaker":"Unknown","startTime":104.969,"endTime":107.189,"body":"start with that I do want to"},{"speaker":"Unknown","startTime":104.969,"endTime":107.189,"body":"give a little market news"},{"speaker":"Unknown","startTime":107.189,"endTime":109.619,"body":"because I think the market news"},{"speaker":"Unknown","startTime":107.189,"endTime":109.619,"body":"and where we are in the market"},{"speaker":"Unknown","startTime":109.619,"endTime":113.309,"body":"explains why this is in fact an"},{"speaker":"Unknown","startTime":109.619,"endTime":113.309,"body":"issue. This is only coming from"},{"speaker":"Unknown","startTime":113.309,"endTime":117.119,"body":"the Central Carolina area. This"},{"speaker":"Unknown","startTime":113.309,"endTime":117.119,"body":"is from the consolidated"},{"speaker":"Unknown","startTime":117.119,"endTime":120.179,"body":"Multiple Listing services or the"},{"speaker":"Unknown","startTime":117.119,"endTime":120.179,"body":"their stats, but this is from"},{"speaker":"Unknown","startTime":120.179,"endTime":122.669,"body":"June. And I think this is"},{"speaker":"Unknown","startTime":120.179,"endTime":122.669,"body":"indicative of the entire state"},{"speaker":"Unknown","startTime":122.669,"endTime":125.729,"body":"of South Carolina and probably"},{"speaker":"Unknown","startTime":122.669,"endTime":125.729,"body":"for the entire country. So the"},{"speaker":"Unknown","startTime":125.729,"endTime":129.689,"body":"average sales price of the"},{"speaker":"Unknown","startTime":125.729,"endTime":129.689,"body":"central Midlands area is up 15%"},{"speaker":"Unknown","startTime":129.719,"endTime":133.139,"body":"I think we are all seeing that"},{"speaker":"Unknown","startTime":129.719,"endTime":133.139,"body":"happen as to inventory. Let's"},{"speaker":"Unknown","startTime":133.139,"endTime":135.599,"body":"look at it in two different"},{"speaker":"Unknown","startTime":133.139,"endTime":135.599,"body":"ways. We'll look at my price"},{"speaker":"Unknown","startTime":135.599,"endTime":138.659,"body":"range as well as by months of"},{"speaker":"Unknown","startTime":135.599,"endTime":138.659,"body":"inventory for all types of"},{"speaker":"Unknown","startTime":138.659,"endTime":143.399,"body":"houses and all types of price"},{"speaker":"Unknown","startTime":138.659,"endTime":143.399,"body":"range. We are at 0.8 months of"},{"speaker":"Unknown","startTime":143.399,"endTime":148.019,"body":"inventory this time last year"},{"speaker":"Unknown","startTime":143.399,"endTime":148.019,"body":"we're at 1.7% down 52.9% since"},{"speaker":"Unknown","startTime":148.019,"endTime":151.499,"body":"last year for single family"},{"speaker":"Unknown","startTime":148.019,"endTime":151.499,"body":"houses. Last year, we were at"},{"speaker":"Unknown","startTime":151.499,"endTime":155.939,"body":"1.7 months of inventory, we're"},{"speaker":"Unknown","startTime":151.499,"endTime":155.939,"body":"now to 0.7 months of inventory"},{"speaker":"Unknown","startTime":155.939,"endTime":160.589,"body":"that is a 58.8% decrease. condos"},{"speaker":"Unknown","startTime":155.939,"endTime":160.589,"body":"were at two months of inventory."},{"speaker":"Unknown","startTime":160.589,"endTime":164.699,"body":"We're now down to 1.4, which is"},{"speaker":"Unknown","startTime":160.589,"endTime":164.699,"body":"a 30% decrease. The bigger"},{"speaker":"Unknown","startTime":164.699,"endTime":169.619,"body":"problem is when you look at it"},{"speaker":"Unknown","startTime":164.699,"endTime":169.619,"body":"based on prices, they $150,001"},{"speaker":"Unknown","startTime":169.619,"endTime":174.899,"body":"to $200,000 price range, we were"},{"speaker":"Unknown","startTime":169.619,"endTime":174.899,"body":"at 1.2 months of inventory,"},{"speaker":"Unknown","startTime":174.989,"endTime":180.029,"body":"we're now down 2.5 months of"},{"speaker":"Unknown","startTime":174.989,"endTime":180.029,"body":"inventory, that's a 58.3%"},{"speaker":"Unknown","startTime":180.029,"endTime":183.839,"body":"decrease. If you look at just"},{"speaker":"Unknown","startTime":180.029,"endTime":183.839,"body":"single family housing 1.1 month"},{"speaker":"Unknown","startTime":183.839,"endTime":188.249,"body":"last year, we're down 2.4 months"},{"speaker":"Unknown","startTime":183.839,"endTime":188.249,"body":"of inventory half not even half"},{"speaker":"Unknown","startTime":188.249,"endTime":191.999,"body":"a month of inventory. And that"},{"speaker":"Unknown","startTime":188.249,"endTime":191.999,"body":"price range that's like a two"},{"speaker":"Unknown","startTime":191.999,"endTime":196.469,"body":"and a half week of inventory."},{"speaker":"Unknown","startTime":191.999,"endTime":196.469,"body":"That 63.6% decrease. When you"},{"speaker":"Unknown","startTime":196.469,"endTime":199.979,"body":"look at the 200 to 300 range. We"},{"speaker":"Unknown","startTime":196.469,"endTime":199.979,"body":"had two months of inventory this"},{"speaker":"Unknown","startTime":199.979,"endTime":203.399,"body":"time last year we're now down to"},{"speaker":"Unknown","startTime":199.979,"endTime":203.399,"body":"point six so barely half a month"},{"speaker":"Unknown","startTime":203.399,"endTime":205.769,"body":"a little over half a month"},{"speaker":"Unknown","startTime":203.399,"endTime":205.769,"body":"you're talking to two and a half"},{"speaker":"Unknown","startTime":205.769,"endTime":210.479,"body":"weeks of inventory 70% decrease"},{"speaker":"Unknown","startTime":205.769,"endTime":210.479,"body":"for single family housing it was"},{"speaker":"Unknown","startTime":210.479,"endTime":214.469,"body":"two months and it is also at"},{"speaker":"Unknown","startTime":210.479,"endTime":214.469,"body":"point six. That's bad. Now let's"},{"speaker":"Unknown","startTime":214.469,"endTime":218.369,"body":"look at my housing units and all"},{"speaker":"Unknown","startTime":214.469,"endTime":218.369,"body":"price range in the Midlands. We"},{"speaker":"Unknown","startTime":218.369,"endTime":222.119,"body":"had 2056 houses on the market"},{"speaker":"Unknown","startTime":218.369,"endTime":222.119,"body":"this time last year. We're down"},{"speaker":"Unknown","startTime":222.119,"endTime":226.379,"body":"to 1000 109 for the month of"},{"speaker":"Unknown","startTime":222.119,"endTime":226.379,"body":"June. That's a 46% point 1%"},{"speaker":"Unknown","startTime":226.379,"endTime":231.359,"body":"decrease 1800 96 family single"},{"speaker":"Unknown","startTime":226.379,"endTime":231.359,"body":"family houses on the market this"},{"speaker":"Unknown","startTime":231.359,"endTime":234.839,"body":"time last year for the month of"},{"speaker":"Unknown","startTime":231.359,"endTime":234.839,"body":"June. Now we're down to 956 that"},{"speaker":"Unknown","startTime":234.839,"endTime":241.019,"body":"is a 49.6% we had 151 condos"},{"speaker":"Unknown","startTime":234.839,"endTime":241.019,"body":"last year 147 this year that's a"},{"speaker":"Unknown","startTime":241.019,"endTime":245.129,"body":"down that's down 2.6% so condos"},{"speaker":"Unknown","startTime":241.019,"endTime":245.129,"body":"are holding steadier than single"},{"speaker":"Unknown","startTime":245.129,"endTime":247.529,"body":"family housing, boil it down"},{"speaker":"Unknown","startTime":245.129,"endTime":247.529,"body":"even farther and look at that"},{"speaker":"Unknown","startTime":247.529,"endTime":254.549,"body":"$100,000 and below price range."},{"speaker":"Unknown","startTime":247.529,"endTime":254.549,"body":"We went down from 192 to 113"},{"speaker":"Unknown","startTime":254.549,"endTime":260.489,"body":"houses that's a 41.1% decrease"},{"speaker":"Unknown","startTime":254.549,"endTime":260.489,"body":"for the 101,000 $100,001 to"},{"speaker":"Unknown","startTime":260.489,"endTime":265.529,"body":"150,000 market. We went from 219"},{"speaker":"Unknown","startTime":260.489,"endTime":265.529,"body":"houses down to 134 houses a"},{"speaker":"Unknown","startTime":265.529,"endTime":271.469,"body":"38.8% and then we had"},{"speaker":"Unknown","startTime":265.529,"endTime":271.469,"body":"$150,001 200,000 we went from"},{"speaker":"Unknown","startTime":271.469,"endTime":276.989,"body":"350 houses to 150 houses as a"},{"speaker":"Unknown","startTime":271.469,"endTime":276.989,"body":"decrease of 57%. So across the"},{"speaker":"Unknown","startTime":276.989,"endTime":282.149,"body":"most soul price ranges in the in"},{"speaker":"Unknown","startTime":276.989,"endTime":282.149,"body":"this day, the median house price"},{"speaker":"Unknown","startTime":282.149,"endTime":285.989,"body":"in this day. As you can see here"},{"speaker":"Unknown","startTime":282.149,"endTime":285.989,"body":"in the Midlands, we are down 38"},{"speaker":"Unknown","startTime":286.019,"endTime":290.579,"body":"to 57% depending on that price"},{"speaker":"Unknown","startTime":286.019,"endTime":290.579,"body":"range. I mean we are way down."},{"speaker":"Unknown","startTime":290.849,"endTime":293.999,"body":"And then when you look at"},{"speaker":"Unknown","startTime":290.849,"endTime":293.999,"body":"percentages of list prices"},{"speaker":"Unknown","startTime":293.999,"endTime":296.699,"body":"received this is what the list"},{"speaker":"Unknown","startTime":293.999,"endTime":296.699,"body":"price was and what percentage of"},{"speaker":"Unknown","startTime":296.699,"endTime":299.969,"body":"that listing did they receive"},{"speaker":"Unknown","startTime":296.699,"endTime":299.969,"body":"all price ranges"},{"speaker":"Unknown","startTime":300.0,"endTime":303.57,"body":"Last year 97.9% of the list"},{"speaker":"Unknown","startTime":300.0,"endTime":303.57,"body":"price was received as a final"},{"speaker":"Unknown","startTime":303.57,"endTime":309.69,"body":"sales price. This year we're at"},{"speaker":"Unknown","startTime":303.57,"endTime":309.69,"body":"99.3%. That's up 1.4%. for"},{"speaker":"Unknown","startTime":309.69,"endTime":314.34,"body":"single family housing it went"},{"speaker":"Unknown","startTime":309.69,"endTime":314.34,"body":"from 98% to 99.4%. Which is up"},{"speaker":"Unknown","startTime":314.34,"endTime":318.45,"body":"1.4%. But again when you look at"},{"speaker":"Unknown","startTime":314.34,"endTime":318.45,"body":"the markets that are most sold"},{"speaker":"Unknown","startTime":318.48,"endTime":322.95,"body":"in Columbia, South Carolina and"},{"speaker":"Unknown","startTime":318.48,"endTime":322.95,"body":"this Midlands area, the $150,001"},{"speaker":"Unknown","startTime":322.95,"endTime":328.47,"body":"to 200,000 range, last year we"},{"speaker":"Unknown","startTime":322.95,"endTime":328.47,"body":"sold at 98.9% of the list price"},{"speaker":"Unknown","startTime":328.5,"endTime":336.18,"body":"today 100.1%. That's up 1.2%."},{"speaker":"Unknown","startTime":328.5,"endTime":336.18,"body":"That is point 1%. Over listing"},{"speaker":"Unknown","startTime":336.18,"endTime":340.74,"body":"price, the single family housing"},{"speaker":"Unknown","startTime":336.18,"endTime":340.74,"body":"under that is 99% of sales price"},{"speaker":"Unknown","startTime":340.74,"endTime":345.87,"body":"now is at 100.2% of list price,"},{"speaker":"Unknown","startTime":340.74,"endTime":345.87,"body":"which is also a 1.2%. And then"},{"speaker":"Unknown","startTime":345.87,"endTime":349.92,"body":"lastly, when you look at the"},{"speaker":"Unknown","startTime":345.87,"endTime":349.92,"body":"$200,001 to $300,000. Market,"},{"speaker":"Unknown","startTime":350.1,"endTime":354.81,"body":"that was 98.9% of list price"},{"speaker":"Unknown","startTime":350.1,"endTime":354.81,"body":"today is 99.9%, which is up"},{"speaker":"Unknown","startTime":354.81,"endTime":362.43,"body":"1.1%. But for single housing, it"},{"speaker":"Unknown","startTime":354.81,"endTime":362.43,"body":"is 98.9% last year to 100%. For"},{"speaker":"Unknown","startTime":362.43,"endTime":366.75,"body":"this year, so that is telling us"},{"speaker":"Unknown","startTime":362.43,"endTime":366.75,"body":"houses are on average are"},{"speaker":"Unknown","startTime":366.75,"endTime":370.41,"body":"selling for less price, but most"},{"speaker":"Unknown","startTime":366.75,"endTime":370.41,"body":"of them are half at least are"},{"speaker":"Unknown","startTime":370.41,"endTime":375.3,"body":"selling over list price. This is"},{"speaker":"Unknown","startTime":370.41,"endTime":375.3,"body":"a problem we have no inventory,"},{"speaker":"Unknown","startTime":375.42,"endTime":378.63,"body":"and everybody is selling their"},{"speaker":"Unknown","startTime":375.42,"endTime":378.63,"body":"house for less price or more."},{"speaker":"Unknown","startTime":378.66,"endTime":382.2,"body":"What this means is it continues"},{"speaker":"Unknown","startTime":378.66,"endTime":382.2,"body":"to be a seller market buyers"},{"speaker":"Unknown","startTime":382.2,"endTime":386.13,"body":"have few if any choices they"},{"speaker":"Unknown","startTime":382.2,"endTime":386.13,"body":"have multiple multiple buyers"},{"speaker":"Unknown","startTime":386.13,"endTime":389.31,"body":"are competing against and it"},{"speaker":"Unknown","startTime":386.13,"endTime":389.31,"body":"means that buyers and sellers"},{"speaker":"Unknown","startTime":389.31,"endTime":391.62,"body":"are now having to get creative."},{"speaker":"Unknown","startTime":389.31,"endTime":391.62,"body":"So how are they getting"},{"speaker":"Unknown","startTime":391.62,"endTime":394.29,"body":"creative? Well, we're seeing"},{"speaker":"Unknown","startTime":391.62,"endTime":394.29,"body":"strategies that our agents are"},{"speaker":"Unknown","startTime":394.29,"endTime":396.81,"body":"using all over the place"},{"speaker":"Unknown","startTime":394.29,"endTime":396.81,"body":"escalation clauses we've talked"},{"speaker":"Unknown","startTime":396.81,"endTime":399.78,"body":"about that I'm not very big fan"},{"speaker":"Unknown","startTime":396.81,"endTime":399.78,"body":"of them. You listen to my"},{"speaker":"Unknown","startTime":399.78,"endTime":403.77,"body":"podcast on that and understand"},{"speaker":"Unknown","startTime":399.78,"endTime":403.77,"body":"why we've seen appraisal gaps."},{"speaker":"Unknown","startTime":403.77,"endTime":406.29,"body":"That's what we're talking about"},{"speaker":"Unknown","startTime":403.77,"endTime":406.29,"body":"today, waiving of appraisal"},{"speaker":"Unknown","startTime":406.41,"endTime":408.84,"body":"contingencies, we'll talk about"},{"speaker":"Unknown","startTime":406.41,"endTime":408.84,"body":"that we've all seen non"},{"speaker":"Unknown","startTime":408.84,"endTime":412.26,"body":"contingent contract contracts as"},{"speaker":"Unknown","startTime":408.84,"endTime":412.26,"body":"clean as they can be, we are"},{"speaker":"Unknown","startTime":412.26,"endTime":415.02,"body":"also starting to see sellers do"},{"speaker":"Unknown","startTime":412.26,"endTime":415.02,"body":"a lot of reverse contingencies"},{"speaker":"Unknown","startTime":415.05,"endTime":418.2,"body":"on the contract being contingent"},{"speaker":"Unknown","startTime":415.05,"endTime":418.2,"body":"on them being able to find a"},{"speaker":"Unknown","startTime":418.2,"endTime":420.84,"body":"house and closed today, what"},{"speaker":"Unknown","startTime":418.2,"endTime":420.84,"body":"we're gonna look at is the"},{"speaker":"Unknown","startTime":420.84,"endTime":424.83,"body":"appraisal gap. And as it is"},{"speaker":"Unknown","startTime":420.84,"endTime":424.83,"body":"often done incorrectly, and"},{"speaker":"Unknown","startTime":424.83,"endTime":427.2,"body":"putting a deal in jeopardy,"},{"speaker":"Unknown","startTime":424.83,"endTime":427.2,"body":"we're going to talk about the"},{"speaker":"Unknown","startTime":427.2,"endTime":429.33,"body":"biggest issues with it and"},{"speaker":"Unknown","startTime":427.2,"endTime":429.33,"body":"things that you need to"},{"speaker":"Unknown","startTime":429.33,"endTime":432.27,"body":"understand and things that you"},{"speaker":"Unknown","startTime":429.33,"endTime":432.27,"body":"need to be careful of as a real"},{"speaker":"Unknown","startTime":432.27,"endTime":434.28,"body":"estate agent, as well as talk"},{"speaker":"Unknown","startTime":432.27,"endTime":434.28,"body":"about some language that you"},{"speaker":"Unknown","startTime":434.28,"endTime":438.45,"body":"might be able to use. So as you"},{"speaker":"Unknown","startTime":434.28,"endTime":438.45,"body":"know, an appraisal is merely an"},{"speaker":"Unknown","startTime":438.45,"endTime":442.56,"body":"opinion, one person's opinion of"},{"speaker":"Unknown","startTime":438.45,"endTime":442.56,"body":"the value of a real estate. And"},{"speaker":"Unknown","startTime":442.56,"endTime":445.98,"body":"this is done by a real licensed"},{"speaker":"Unknown","startTime":442.56,"endTime":445.98,"body":"real estate appraiser randomly"},{"speaker":"Unknown","startTime":445.98,"endTime":449.61,"body":"selected through a process"},{"speaker":"Unknown","startTime":445.98,"endTime":449.61,"body":"through the lending institution,"},{"speaker":"Unknown","startTime":449.67,"endTime":453.63,"body":"they do not determine value for"},{"speaker":"Unknown","startTime":449.67,"endTime":453.63,"body":"any other reason other than"},{"speaker":"Unknown","startTime":453.63,"endTime":456.75,"body":"determine the exposure of the"},{"speaker":"Unknown","startTime":453.63,"endTime":456.75,"body":"lender and making this loan the"},{"speaker":"Unknown","startTime":456.75,"endTime":460.35,"body":"lender is going to loan $100,000"},{"speaker":"Unknown","startTime":456.75,"endTime":460.35,"body":"the lender wants to make sure"},{"speaker":"Unknown","startTime":460.35,"endTime":465.57,"body":"that the house is worth is worth"},{"speaker":"Unknown","startTime":460.35,"endTime":465.57,"body":"at least the $100,000 and in"},{"speaker":"Unknown","startTime":465.57,"endTime":468.54,"body":"most cases, at least that and"},{"speaker":"Unknown","startTime":465.57,"endTime":468.54,"body":"the down payment, they're going"},{"speaker":"Unknown","startTime":468.54,"endTime":473.43,"body":"to do a 95% loan and 95,000 they"},{"speaker":"Unknown","startTime":468.54,"endTime":473.43,"body":"want to make sure that the house"},{"speaker":"Unknown","startTime":473.46,"endTime":476.91,"body":"appraises for at least 100"},{"speaker":"Unknown","startTime":473.46,"endTime":476.91,"body":"grand. It is basically a tool to"},{"speaker":"Unknown","startTime":476.91,"endTime":480.36,"body":"ensure that the lender is not"},{"speaker":"Unknown","startTime":476.91,"endTime":480.36,"body":"overexposed. The lender does not"},{"speaker":"Unknown","startTime":480.36,"endTime":485.55,"body":"want to give you a $200,000"},{"speaker":"Unknown","startTime":480.36,"endTime":485.55,"body":"house on $100,000 value because"},{"speaker":"Unknown","startTime":485.55,"endTime":488.37,"body":"they would be upside down by"},{"speaker":"Unknown","startTime":485.55,"endTime":488.37,"body":"double what is an appraisal"},{"speaker":"Unknown","startTime":488.37,"endTime":490.53,"body":"contingency? And how's that"},{"speaker":"Unknown","startTime":488.37,"endTime":490.53,"body":"playing into what we're doing"},{"speaker":"Unknown","startTime":490.53,"endTime":493.77,"body":"today? Well, most real estate"},{"speaker":"Unknown","startTime":490.53,"endTime":493.77,"body":"contracts including the Midlands"},{"speaker":"Unknown","startTime":493.77,"endTime":496.35,"body":"contract that we use a Central"},{"speaker":"Unknown","startTime":493.77,"endTime":496.35,"body":"Carolina realtors Association"},{"speaker":"Unknown","startTime":496.35,"endTime":499.05,"body":"contract when we use here as"},{"speaker":"Unknown","startTime":496.35,"endTime":499.05,"body":"well as the South Carolina"},{"speaker":"Unknown","startTime":499.05,"endTime":502.8,"body":"realtors Association contract,"},{"speaker":"Unknown","startTime":499.05,"endTime":502.8,"body":"they all have the option of the"},{"speaker":"Unknown","startTime":502.8,"endTime":505.62,"body":"buyer selecting the contract"},{"speaker":"Unknown","startTime":502.8,"endTime":505.62,"body":"being contingent on appraisal."},{"speaker":"Unknown","startTime":505.83,"endTime":510.45,"body":"And what this basically means is"},{"speaker":"Unknown","startTime":505.83,"endTime":510.45,"body":"that if the house does not"},{"speaker":"Unknown","startTime":510.45,"endTime":513.96,"body":"appraise for the purchase price,"},{"speaker":"Unknown","startTime":510.45,"endTime":513.96,"body":"then the buyer has a right to"},{"speaker":"Unknown","startTime":513.96,"endTime":516.6,"body":"terminate the contract is"},{"speaker":"Unknown","startTime":513.96,"endTime":516.6,"body":"important to understand that"},{"speaker":"Unknown","startTime":516.6,"endTime":520.05,"body":"that contingency is not for the"},{"speaker":"Unknown","startTime":516.6,"endTime":520.05,"body":"seller's benefit if the house"},{"speaker":"Unknown","startTime":520.05,"endTime":523.5,"body":"appraises for more than the"},{"speaker":"Unknown","startTime":520.05,"endTime":523.5,"body":"sales price. This is not giving"},{"speaker":"Unknown","startTime":523.5,"endTime":526.71,"body":"the seller the option of"},{"speaker":"Unknown","startTime":523.5,"endTime":526.71,"body":"terminating the contract. It"},{"speaker":"Unknown","startTime":526.71,"endTime":530.16,"body":"also does not in either one of"},{"speaker":"Unknown","startTime":526.71,"endTime":530.16,"body":"these contracts, give the seller"},{"speaker":"Unknown","startTime":530.16,"endTime":532.77,"body":"the option of terminating the"},{"speaker":"Unknown","startTime":530.16,"endTime":532.77,"body":"contract if the house fails to"},{"speaker":"Unknown","startTime":532.77,"endTime":535.8,"body":"appraise and I have had that"},{"speaker":"Unknown","startTime":532.77,"endTime":535.8,"body":"several times in the past where"},{"speaker":"Unknown","startTime":535.8,"endTime":538.53,"body":"agents have called me saying"},{"speaker":"Unknown","startTime":535.8,"endTime":538.53,"body":"hey, the house didn't appraise"},{"speaker":"Unknown","startTime":538.53,"endTime":541.2,"body":"the seller wants to terminate"},{"speaker":"Unknown","startTime":538.53,"endTime":541.2,"body":"the contract. And I'm like,"},{"speaker":"Unknown","startTime":541.2,"endTime":543.63,"body":"well, the contract does not"},{"speaker":"Unknown","startTime":541.2,"endTime":543.63,"body":"require the seller to lower the"},{"speaker":"Unknown","startTime":543.63,"endTime":546.9,"body":"price. So the seller, the buyer,"},{"speaker":"Unknown","startTime":543.63,"endTime":546.9,"body":"the seller can't come to an"},{"speaker":"Unknown","startTime":546.9,"endTime":550.32,"body":"agreement or the buyer doesn't"},{"speaker":"Unknown","startTime":546.9,"endTime":550.32,"body":"want to buy regardless based on"},{"speaker":"Unknown","startTime":550.32,"endTime":553.17,"body":"the appraised value, then what"},{"speaker":"Unknown","startTime":550.32,"endTime":553.17,"body":"does it matter the seller? Well,"},{"speaker":"Unknown","startTime":553.17,"endTime":555.3,"body":"they have another offer they"},{"speaker":"Unknown","startTime":553.17,"endTime":555.3,"body":"want to terminate the contract"},{"speaker":"Unknown","startTime":555.3,"endTime":558.27,"body":"and take the other offer as cash"},{"speaker":"Unknown","startTime":555.3,"endTime":558.27,"body":"is not subject to appraisal"},{"speaker":"Unknown","startTime":558.54,"endTime":562.08,"body":"doesn't matter. The buyer still"},{"speaker":"Unknown","startTime":558.54,"endTime":562.08,"body":"has the unilateral right to"},{"speaker":"Unknown","startTime":562.11,"endTime":566.4,"body":"accept the property regardless"},{"speaker":"Unknown","startTime":562.11,"endTime":566.4,"body":"of the price. So let's talk"},{"speaker":"Unknown","startTime":566.4,"endTime":569.16,"body":"about example the house"},{"speaker":"Unknown","startTime":566.4,"endTime":569.16,"body":"appraises for $20,000 less than"},{"speaker":"Unknown","startTime":569.16,"endTime":572.4,"body":"the contract sales price. The"},{"speaker":"Unknown","startTime":569.16,"endTime":572.4,"body":"lending company is not going to"},{"speaker":"Unknown","startTime":572.4,"endTime":575.13,"body":"want to lend based on the sales"},{"speaker":"Unknown","startTime":572.4,"endTime":575.13,"body":"price they go on and want to"},{"speaker":"Unknown","startTime":575.13,"endTime":577.23,"body":"land based on the appraised"},{"speaker":"Unknown","startTime":575.13,"endTime":577.23,"body":"value and this means that the"},{"speaker":"Unknown","startTime":577.23,"endTime":580.08,"body":"buyer and the seller or the"},{"speaker":"Unknown","startTime":577.23,"endTime":580.08,"body":"seller will have to provide the"},{"speaker":"Unknown","startTime":580.08,"endTime":582.21,"body":"money to fill in the gap. Now"},{"speaker":"Unknown","startTime":580.08,"endTime":582.21,"body":"what do you mean by the seller"},{"speaker":"Unknown","startTime":582.21,"endTime":584.67,"body":"would have to provide it well,"},{"speaker":"Unknown","startTime":582.21,"endTime":584.67,"body":"one of two things can happen the"},{"speaker":"Unknown","startTime":584.67,"endTime":588.03,"body":"buyer can pay the difference in"},{"speaker":"Unknown","startTime":584.67,"endTime":588.03,"body":"cash or the seller can lower the"},{"speaker":"Unknown","startTime":588.03,"endTime":590.46,"body":"price of the house essentially"},{"speaker":"Unknown","startTime":588.03,"endTime":590.46,"body":"providing the money to fill the"},{"speaker":"Unknown","startTime":590.46,"endTime":593.43,"body":"gap. When this doesn't happen"},{"speaker":"Unknown","startTime":590.46,"endTime":593.43,"body":"when the contract doesn't"},{"speaker":"Unknown","startTime":593.43,"endTime":596.19,"body":"appraise and the parties don't"},{"speaker":"Unknown","startTime":593.43,"endTime":596.19,"body":"want to pay more than the"},{"speaker":"Unknown","startTime":596.19,"endTime":598.5,"body":"appraised value or the seller"},{"speaker":"Unknown","startTime":596.19,"endTime":598.5,"body":"refuses to lower the price."},{"speaker":"Unknown","startTime":598.5,"endTime":599.97,"body":"Obviously the deal is going to"},{"speaker":"Unknown","startTime":598.5,"endTime":599.97,"body":"fall apart."},{"speaker":"Unknown","startTime":600.599,"endTime":603.899,"body":"Let's discuss for a moment the"},{"speaker":"Unknown","startTime":600.599,"endTime":603.899,"body":"waving of the appraisal"},{"speaker":"Unknown","startTime":603.899,"endTime":606.479,"body":"contingency. So one of the"},{"speaker":"Unknown","startTime":603.899,"endTime":606.479,"body":"strategies that is used in a"},{"speaker":"Unknown","startTime":606.479,"endTime":609.629,"body":"very tight market today is for"},{"speaker":"Unknown","startTime":606.479,"endTime":609.629,"body":"the buyer to waive the"},{"speaker":"Unknown","startTime":609.629,"endTime":613.109,"body":"appraisal. This is a very good"},{"speaker":"Unknown","startTime":609.629,"endTime":613.109,"body":"strategy in a lot of cases, but"},{"speaker":"Unknown","startTime":613.109,"endTime":615.719,"body":"it's also very dangerous not"},{"speaker":"Unknown","startTime":613.109,"endTime":615.719,"body":"only for the buyer but also for"},{"speaker":"Unknown","startTime":615.719,"endTime":619.799,"body":"the sell an offer without an"},{"speaker":"Unknown","startTime":615.719,"endTime":619.799,"body":"appraisal contingency basically"},{"speaker":"Unknown","startTime":619.799,"endTime":622.289,"body":"means that the buyer has"},{"speaker":"Unknown","startTime":619.799,"endTime":622.289,"body":"contracted to purchase the"},{"speaker":"Unknown","startTime":622.289,"endTime":627.089,"body":"house, regardless what the house"},{"speaker":"Unknown","startTime":622.289,"endTime":627.089,"body":"appraises for. For example, if"},{"speaker":"Unknown","startTime":627.089,"endTime":631.289,"body":"the contract is for $200,000,"},{"speaker":"Unknown","startTime":627.089,"endTime":631.289,"body":"and the house appraises for 175,"},{"speaker":"Unknown","startTime":631.499,"endTime":635.429,"body":"the buyer is still contractually"},{"speaker":"Unknown","startTime":631.499,"endTime":635.429,"body":"obligated to purchase price. So"},{"speaker":"Unknown","startTime":635.429,"endTime":638.939,"body":"this strategy is good for a"},{"speaker":"Unknown","startTime":635.429,"endTime":638.939,"body":"seller because the seller knows"},{"speaker":"Unknown","startTime":639.059,"endTime":641.369,"body":"that the buyer is going to move"},{"speaker":"Unknown","startTime":639.059,"endTime":641.369,"body":"forward with this contract"},{"speaker":"Unknown","startTime":641.369,"endTime":644.909,"body":"regardless of the appraised"},{"speaker":"Unknown","startTime":641.369,"endTime":644.909,"body":"value. So the offer is often"},{"speaker":"Unknown","startTime":644.939,"endTime":648.839,"body":"more attractive than other"},{"speaker":"Unknown","startTime":644.939,"endTime":648.839,"body":"offers that may be for even more"},{"speaker":"Unknown","startTime":648.839,"endTime":654.209,"body":"money if it's contingent on an"},{"speaker":"Unknown","startTime":648.839,"endTime":654.209,"body":"appraisal. Secondly, a good real"},{"speaker":"Unknown","startTime":654.209,"endTime":657.089,"body":"estate agent should already have"},{"speaker":"Unknown","startTime":654.209,"endTime":657.089,"body":"a pretty good idea what the"},{"speaker":"Unknown","startTime":657.089,"endTime":660.179,"body":"house is worth not only for the"},{"speaker":"Unknown","startTime":657.089,"endTime":660.179,"body":"seller, but for the buyer. If"},{"speaker":"Unknown","startTime":660.179,"endTime":663.509,"body":"you've done your job and done a"},{"speaker":"Unknown","startTime":660.179,"endTime":663.509,"body":"comparative market analysis, you"},{"speaker":"Unknown","startTime":663.509,"endTime":667.109,"body":"should have within a range know"},{"speaker":"Unknown","startTime":663.509,"endTime":667.109,"body":"what this house is worth. That"},{"speaker":"Unknown","startTime":667.109,"endTime":669.779,"body":"does not mean that that is what"},{"speaker":"Unknown","startTime":667.109,"endTime":669.779,"body":"it's going to appraise for. I"},{"speaker":"Unknown","startTime":669.779,"endTime":672.419,"body":"understand that because"},{"speaker":"Unknown","startTime":669.779,"endTime":672.419,"body":"appraisers take in other factors"},{"speaker":"Unknown","startTime":672.419,"endTime":675.449,"body":"that you may not have access to"},{"speaker":"Unknown","startTime":672.419,"endTime":675.449,"body":"in a comparative market"},{"speaker":"Unknown","startTime":675.449,"endTime":679.679,"body":"analysis, but you should be"},{"speaker":"Unknown","startTime":675.449,"endTime":679.679,"body":"relatively close. Additionally,"},{"speaker":"Unknown","startTime":679.919,"endTime":683.039,"body":"a cash buyer or a buyer who's"},{"speaker":"Unknown","startTime":679.919,"endTime":683.039,"body":"putting down a significant"},{"speaker":"Unknown","startTime":683.039,"endTime":686.579,"body":"amount of money might also have"},{"speaker":"Unknown","startTime":683.039,"endTime":686.579,"body":"little risk here, because it"},{"speaker":"Unknown","startTime":686.579,"endTime":690.839,"body":"should not affect their loan in"},{"speaker":"Unknown","startTime":686.579,"endTime":690.839,"body":"terms of loan to value ratio"},{"speaker":"Unknown","startTime":690.839,"endTime":693.749,"body":"should not change their pricing"},{"speaker":"Unknown","startTime":690.839,"endTime":693.749,"body":"or their crop their mortgage"},{"speaker":"Unknown","startTime":693.749,"endTime":695.489,"body":"insurance, which we'll talk"},{"speaker":"Unknown","startTime":693.749,"endTime":695.489,"body":"about a little bit later."},{"speaker":"Unknown","startTime":695.519,"endTime":699.539,"body":"Lastly, if we're talking about a"},{"speaker":"Unknown","startTime":695.519,"endTime":699.539,"body":"resale of a relatively newly"},{"speaker":"Unknown","startTime":699.539,"endTime":702.659,"body":"constructed house, that is a"},{"speaker":"Unknown","startTime":699.539,"endTime":702.659,"body":"houses maybe one two or three"},{"speaker":"Unknown","startTime":702.659,"endTime":705.929,"body":"years old, it's very unlikely in"},{"speaker":"Unknown","startTime":702.659,"endTime":705.929,"body":"today's market that the value of"},{"speaker":"Unknown","startTime":705.929,"endTime":709.289,"body":"that house is gone down. So we"},{"speaker":"Unknown","startTime":705.929,"endTime":709.289,"body":"know we can at least start with"},{"speaker":"Unknown","startTime":709.289,"endTime":712.829,"body":"a baseline of what that person"},{"speaker":"Unknown","startTime":709.289,"endTime":712.829,"body":"paid for. In fact, you probably"},{"speaker":"Unknown","startTime":712.829,"endTime":715.469,"body":"could do that on any house, it's"},{"speaker":"Unknown","startTime":712.829,"endTime":715.469,"body":"unlikely that any house in"},{"speaker":"Unknown","startTime":715.469,"endTime":718.229,"body":"Columbia, South Carolina or in"},{"speaker":"Unknown","startTime":715.469,"endTime":718.229,"body":"the state of South Carolina, has"},{"speaker":"Unknown","startTime":718.229,"endTime":721.949,"body":"gone down in value in at least"},{"speaker":"Unknown","startTime":718.229,"endTime":721.949,"body":"the last year or so. So any"},{"speaker":"Unknown","startTime":721.949,"endTime":725.909,"body":"house that has been sold to your"},{"speaker":"Unknown","startTime":721.949,"endTime":725.909,"body":"seller within the last year. So"},{"speaker":"Unknown","startTime":726.059,"endTime":728.519,"body":"that's a pretty good baseline to"},{"speaker":"Unknown","startTime":726.059,"endTime":728.519,"body":"know that that property is"},{"speaker":"Unknown","startTime":728.519,"endTime":731.309,"body":"unlikely to have decreased from"},{"speaker":"Unknown","startTime":728.519,"endTime":731.309,"body":"that. But now the question is,"},{"speaker":"Unknown","startTime":731.339,"endTime":734.429,"body":"how much did it go up? Did it go"},{"speaker":"Unknown","startTime":731.339,"endTime":734.429,"body":"up as much as the seller truly"},{"speaker":"Unknown","startTime":734.429,"endTime":737.489,"body":"believed it went up. But again,"},{"speaker":"Unknown","startTime":734.429,"endTime":737.489,"body":"you can usually look at comps in"},{"speaker":"Unknown","startTime":737.489,"endTime":739.559,"body":"the neighborhood and see"},{"speaker":"Unknown","startTime":737.489,"endTime":739.559,"body":"particularly in a new"},{"speaker":"Unknown","startTime":739.559,"endTime":743.369,"body":"neighborhood, or the new houses"},{"speaker":"Unknown","startTime":739.559,"endTime":743.369,"body":"still selling at the price that"},{"speaker":"Unknown","startTime":743.369,"endTime":747.479,"body":"the seller is seeking to get. So"},{"speaker":"Unknown","startTime":743.369,"endTime":747.479,"body":"if the seller paid 170 for the"},{"speaker":"Unknown","startTime":747.479,"endTime":750.029,"body":"house and houses in the"},{"speaker":"Unknown","startTime":747.479,"endTime":750.029,"body":"neighborhood, now we're being"},{"speaker":"Unknown","startTime":750.029,"endTime":754.289,"body":"sold for 181 90, it's pretty"},{"speaker":"Unknown","startTime":750.029,"endTime":754.289,"body":"good chance that the house that"},{"speaker":"Unknown","startTime":754.289,"endTime":756.239,"body":"he's selling is going to"},{"speaker":"Unknown","startTime":754.289,"endTime":756.239,"body":"appraise for that same amount."},{"speaker":"Unknown","startTime":756.239,"endTime":759.839,"body":"However, there is downside to"},{"speaker":"Unknown","startTime":756.239,"endTime":759.839,"body":"this offer. And that downside is"},{"speaker":"Unknown","startTime":759.839,"endTime":763.169,"body":"the borrower must or the buyer"},{"speaker":"Unknown","startTime":759.839,"endTime":763.169,"body":"must understand that the house"},{"speaker":"Unknown","startTime":763.169,"endTime":765.359,"body":"does not appraise for the"},{"speaker":"Unknown","startTime":763.169,"endTime":765.359,"body":"purchase price there is really"},{"speaker":"Unknown","startTime":765.359,"endTime":768.899,"body":"no renegotiation of this"},{"speaker":"Unknown","startTime":765.359,"endTime":768.899,"body":"purchase price, regardless how"},{"speaker":"Unknown","startTime":768.899,"endTime":772.409,"body":"low the value comes in. And they"},{"speaker":"Unknown","startTime":768.899,"endTime":772.409,"body":"may have to make up this"},{"speaker":"Unknown","startTime":772.409,"endTime":776.039,"body":"difference in what the lender is"},{"speaker":"Unknown","startTime":772.409,"endTime":776.039,"body":"going to loan them on the house"},{"speaker":"Unknown","startTime":776.159,"endTime":779.459,"body":"and the purchase price. And this"},{"speaker":"Unknown","startTime":776.159,"endTime":779.459,"body":"is going to have to be made up"},{"speaker":"Unknown","startTime":779.519,"endTime":783.899,"body":"by cash or cash equivalent. And"},{"speaker":"Unknown","startTime":779.519,"endTime":783.899,"body":"not all buyers are going to have"},{"speaker":"Unknown","startTime":783.899,"endTime":785.699,"body":"the cash to do that,"},{"speaker":"Unknown","startTime":783.899,"endTime":785.699,"body":"particularly if you're looking"},{"speaker":"Unknown","startTime":785.699,"endTime":790.259,"body":"at a buyer who is borrowing"},{"speaker":"Unknown","startTime":785.699,"endTime":790.259,"body":"three putting down only 3% or 5%"},{"speaker":"Unknown","startTime":790.409,"endTime":793.769,"body":"or a borrower who is doing a"},{"speaker":"Unknown","startTime":790.409,"endTime":793.769,"body":"State Housing loan, or even in"},{"speaker":"Unknown","startTime":793.769,"endTime":796.079,"body":"situations where there may be"},{"speaker":"Unknown","startTime":793.769,"endTime":796.079,"body":"doing a VA loan and things of"},{"speaker":"Unknown","startTime":796.079,"endTime":799.979,"body":"that nature. It can also change"},{"speaker":"Unknown","startTime":796.079,"endTime":799.979,"body":"the borrower's loan terms in"},{"speaker":"Unknown","startTime":799.979,"endTime":802.799,"body":"terms of pricing if they were"},{"speaker":"Unknown","startTime":799.979,"endTime":802.799,"body":"planning on putting down say"},{"speaker":"Unknown","startTime":802.919,"endTime":806.309,"body":"20%. But now the house does not"},{"speaker":"Unknown","startTime":802.919,"endTime":806.309,"body":"appraise. So they're, they're"},{"speaker":"Unknown","startTime":806.309,"endTime":808.799,"body":"not going to be able to put down"},{"speaker":"Unknown","startTime":806.309,"endTime":808.799,"body":"the 20% because part of their"},{"speaker":"Unknown","startTime":808.799,"endTime":812.069,"body":"down payment is going to have to"},{"speaker":"Unknown","startTime":808.799,"endTime":812.069,"body":"pay this gap. Now they may no"},{"speaker":"Unknown","startTime":812.069,"endTime":815.099,"body":"longer be in that band of"},{"speaker":"Unknown","startTime":812.069,"endTime":815.099,"body":"pricing, which means their loan"},{"speaker":"Unknown","startTime":815.099,"endTime":818.009,"body":"pricing may go up in terms of"},{"speaker":"Unknown","startTime":815.099,"endTime":818.009,"body":"interest rate, but it also could"},{"speaker":"Unknown","startTime":818.009,"endTime":821.489,"body":"bring in the requirement to pay"},{"speaker":"Unknown","startTime":818.009,"endTime":821.489,"body":"purchase mortgage insurance, or"},{"speaker":"Unknown","startTime":821.489,"endTime":825.059,"body":"could even increase the cost of"},{"speaker":"Unknown","startTime":821.489,"endTime":825.059,"body":"the purchase mortgage insurance."},{"speaker":"Unknown","startTime":825.059,"endTime":827.759,"body":"Remember, the pricing of"},{"speaker":"Unknown","startTime":825.059,"endTime":827.759,"body":"mortgage insurance goes down"},{"speaker":"Unknown","startTime":827.759,"endTime":831.479,"body":"with the more down payment that"},{"speaker":"Unknown","startTime":827.759,"endTime":831.479,"body":"your borrower puts down before"},{"speaker":"Unknown","startTime":831.479,"endTime":834.149,"body":"the buyer borrower decides"},{"speaker":"Unknown","startTime":831.479,"endTime":834.149,"body":"whether or not they want to"},{"speaker":"Unknown","startTime":834.149,"endTime":837.959,"body":"waive an appraisal contingency."},{"speaker":"Unknown","startTime":834.149,"endTime":837.959,"body":"They really need to do two"},{"speaker":"Unknown","startTime":837.959,"endTime":840.539,"body":"things. One is really have you"},{"speaker":"Unknown","startTime":837.959,"endTime":840.539,"body":"look at a comparative market"},{"speaker":"Unknown","startTime":840.539,"endTime":843.749,"body":"analysis to determine if in fact"},{"speaker":"Unknown","startTime":840.539,"endTime":843.749,"body":"this property is going to"},{"speaker":"Unknown","startTime":843.809,"endTime":846.779,"body":"appraise and arrange that y'all"},{"speaker":"Unknown","startTime":843.809,"endTime":846.779,"body":"are comfortable with. They need"},{"speaker":"Unknown","startTime":846.779,"endTime":849.389,"body":"to talk to their lender to"},{"speaker":"Unknown","startTime":846.779,"endTime":849.389,"body":"discuss potential issues. Is it"},{"speaker":"Unknown","startTime":849.389,"endTime":852.329,"body":"going to affect their pricing?"},{"speaker":"Unknown","startTime":849.389,"endTime":852.329,"body":"And could it affect whether or"},{"speaker":"Unknown","startTime":852.329,"endTime":854.369,"body":"not they're going to have to"},{"speaker":"Unknown","startTime":852.329,"endTime":854.369,"body":"have mortgage insurance? And if"},{"speaker":"Unknown","startTime":854.369,"endTime":857.849,"body":"so how much? Now on the seller"},{"speaker":"Unknown","startTime":854.369,"endTime":857.849,"body":"side, the seller needs to"},{"speaker":"Unknown","startTime":857.849,"endTime":860.879,"body":"understand that the issues that"},{"speaker":"Unknown","startTime":857.849,"endTime":860.879,"body":"just that I just mentioned, they"},{"speaker":"Unknown","startTime":860.879,"endTime":863.789,"body":"also need to understand that the"},{"speaker":"Unknown","startTime":860.879,"endTime":863.789,"body":"buyer may not be able to pay"},{"speaker":"Unknown","startTime":863.789,"endTime":867.299,"body":"these additional monies. If the"},{"speaker":"Unknown","startTime":863.789,"endTime":867.299,"body":"buyer can't pay the additional"},{"speaker":"Unknown","startTime":867.299,"endTime":870.359,"body":"monies and defaults. What is"},{"speaker":"Unknown","startTime":867.299,"endTime":870.359,"body":"their likely recovery going to"},{"speaker":"Unknown","startTime":870.359,"endTime":872.789,"body":"be we've done podcasts on this"},{"speaker":"Unknown","startTime":870.359,"endTime":872.789,"body":"as well likely it's going to be"},{"speaker":"Unknown","startTime":872.789,"endTime":876.809,"body":"the earnest money your seller is"},{"speaker":"Unknown","startTime":872.789,"endTime":876.809,"body":"most unlikely to follow also in"},{"speaker":"Unknown","startTime":876.809,"endTime":879.629,"body":"fight this out over the next 18"},{"speaker":"Unknown","startTime":876.809,"endTime":879.629,"body":"months over damages more than"},{"speaker":"Unknown","startTime":879.629,"endTime":881.789,"body":"likely she's going to accept the"},{"speaker":"Unknown","startTime":879.629,"endTime":881.789,"body":"earnest money. So is there"},{"speaker":"Unknown","startTime":881.789,"endTime":885.839,"body":"enough artists money to satisfy"},{"speaker":"Unknown","startTime":881.789,"endTime":885.839,"body":"the seller if the buyer backs"},{"speaker":"Unknown","startTime":885.839,"endTime":889.439,"body":"out in defaults? Also, what"},{"speaker":"Unknown","startTime":885.839,"endTime":889.439,"body":"effect is that going to have or"},{"speaker":"Unknown","startTime":889.439,"endTime":892.139,"body":"putting the house back on the"},{"speaker":"Unknown","startTime":889.439,"endTime":892.139,"body":"market? In a lot of cases they"},{"speaker":"Unknown","startTime":892.139,"endTime":895.109,"body":"may get more money and it might"},{"speaker":"Unknown","startTime":892.139,"endTime":895.109,"body":"not be a problem at all. But"},{"speaker":"Unknown","startTime":895.139,"endTime":898.709,"body":"could it put present a stigma on"},{"speaker":"Unknown","startTime":895.139,"endTime":898.709,"body":"this property? Could it present"},{"speaker":"Unknown","startTime":898.709,"endTime":899.999,"body":"questions as to Oh, this person"},{"speaker":"Unknown","startTime":900.0,"endTime":903.36,"body":"is not going to appraise. So"},{"speaker":"Unknown","startTime":900.0,"endTime":903.36,"body":"it's overpriced, could it have a"},{"speaker":"Unknown","startTime":903.36,"endTime":905.82,"body":"negative effect on the market,"},{"speaker":"Unknown","startTime":903.36,"endTime":905.82,"body":"and those are things I need to"},{"speaker":"Unknown","startTime":905.82,"endTime":909.27,"body":"discuss with you as their agent."},{"speaker":"Unknown","startTime":905.82,"endTime":909.27,"body":"Now let's discuss the other"},{"speaker":"Unknown","startTime":909.27,"endTime":912.93,"body":"option called the appraisal gap"},{"speaker":"Unknown","startTime":909.27,"endTime":912.93,"body":"clause. So how does an appraisal"},{"speaker":"Unknown","startTime":912.93,"endTime":916.44,"body":"gap guarantee clause work? Well,"},{"speaker":"Unknown","startTime":912.93,"endTime":916.44,"body":"an appraisal gap clause states,"},{"speaker":"Unknown","startTime":916.44,"endTime":919.95,"body":"the buyer will cover the gap"},{"speaker":"Unknown","startTime":916.44,"endTime":919.95,"body":"between the contract sales price"},{"speaker":"Unknown","startTime":920.07,"endTime":922.59,"body":"and the appraised value is"},{"speaker":"Unknown","startTime":920.07,"endTime":922.59,"body":"essentially guarantees the"},{"speaker":"Unknown","startTime":922.59,"endTime":925.02,"body":"seller that the buyer is going"},{"speaker":"Unknown","startTime":922.59,"endTime":925.02,"body":"to cover the difference in the"},{"speaker":"Unknown","startTime":925.02,"endTime":927.93,"body":"appraised value and the contract"},{"speaker":"Unknown","startTime":925.02,"endTime":927.93,"body":"sales price. So let's do a"},{"speaker":"Unknown","startTime":927.93,"endTime":931.08,"body":"little deeper dive into this,"},{"speaker":"Unknown","startTime":927.93,"endTime":931.08,"body":"the results of how this works"},{"speaker":"Unknown","startTime":931.11,"endTime":934.5,"body":"very differently on different"},{"speaker":"Unknown","startTime":931.11,"endTime":934.5,"body":"scenarios. Here's example number"},{"speaker":"Unknown","startTime":934.5,"endTime":936.39,"body":"one, and you may have to write"},{"speaker":"Unknown","startTime":934.5,"endTime":936.39,"body":"these down to see what I'm"},{"speaker":"Unknown","startTime":936.39,"endTime":939.27,"body":"saying. But I think you can"},{"speaker":"Unknown","startTime":936.39,"endTime":939.27,"body":"follow along, let's say they"},{"speaker":"Unknown","startTime":939.27,"endTime":943.02,"body":"offer a purchase price is"},{"speaker":"Unknown","startTime":939.27,"endTime":943.02,"body":"$450,000. And your buyer is"},{"speaker":"Unknown","startTime":943.02,"endTime":947.46,"body":"going to put down $250,000. So"},{"speaker":"Unknown","startTime":943.02,"endTime":947.46,"body":"they're going to borrow 300,000."},{"speaker":"Unknown","startTime":947.46,"endTime":951.12,"body":"Essentially, they have a loan to"},{"speaker":"Unknown","startTime":947.46,"endTime":951.12,"body":"value ratio of 67%. But let's"},{"speaker":"Unknown","startTime":951.12,"endTime":955.89,"body":"say this appraisal comes in at"},{"speaker":"Unknown","startTime":951.12,"endTime":955.89,"body":"430,000. Now based on them"},{"speaker":"Unknown","startTime":956.4,"endTime":959.97,"body":"putting down 150,000, they're"},{"speaker":"Unknown","startTime":956.4,"endTime":959.97,"body":"gonna have to use 20,000 to"},{"speaker":"Unknown","startTime":959.97,"endTime":963.24,"body":"cover the gap. So they're only"},{"speaker":"Unknown","startTime":959.97,"endTime":963.24,"body":"putting $130,000 down to the"},{"speaker":"Unknown","startTime":963.24,"endTime":968.76,"body":"purchase price. It's a 70% loan"},{"speaker":"Unknown","startTime":963.24,"endTime":968.76,"body":"to value ratio. But the good"},{"speaker":"Unknown","startTime":968.76,"endTime":971.28,"body":"news is, what does this mean for"},{"speaker":"Unknown","startTime":968.76,"endTime":971.28,"body":"the buyer really not much,"},{"speaker":"Unknown","startTime":971.43,"endTime":974.67,"body":"because the downpayment they're"},{"speaker":"Unknown","startTime":971.43,"endTime":974.67,"body":"putting down is so large, it"},{"speaker":"Unknown","startTime":974.73,"endTime":976.77,"body":"essentially won't change much."},{"speaker":"Unknown","startTime":974.73,"endTime":976.77,"body":"So lender is still going to be"},{"speaker":"Unknown","startTime":976.77,"endTime":979.5,"body":"making a $300,000 loan, so it's"},{"speaker":"Unknown","startTime":976.77,"endTime":979.5,"body":"not gonna change the loan"},{"speaker":"Unknown","startTime":979.5,"endTime":982.08,"body":"amount, the price is probably"},{"speaker":"Unknown","startTime":979.5,"endTime":982.08,"body":"going to stay the same, because"},{"speaker":"Unknown","startTime":982.08,"endTime":985.98,"body":"the loan to value ratio only"},{"speaker":"Unknown","startTime":982.08,"endTime":985.98,"body":"changed 3% in the buyer was"},{"speaker":"Unknown","startTime":985.98,"endTime":988.74,"body":"already putting down $150,000,"},{"speaker":"Unknown","startTime":985.98,"endTime":988.74,"body":"they're still gonna put down"},{"speaker":"Unknown","startTime":988.74,"endTime":992.76,"body":"150,000, the only difference is"},{"speaker":"Unknown","startTime":988.74,"endTime":992.76,"body":"130 is going to go as equity in"},{"speaker":"Unknown","startTime":993.12,"endTime":996.6,"body":"the house and 20,000 to pay the"},{"speaker":"Unknown","startTime":993.12,"endTime":996.6,"body":"difference in that gap. So"},{"speaker":"Unknown","startTime":996.63,"endTime":999.03,"body":"theoretically, the only"},{"speaker":"Unknown","startTime":996.63,"endTime":999.03,"body":"difference is they have less"},{"speaker":"Unknown","startTime":999.03,"endTime":1002.06,"body":"equity in the house after they"},{"speaker":"Unknown","startTime":999.03,"endTime":1002.06,"body":"close, assuming that the"},{"speaker":"Unknown","startTime":1002.06,"endTime":1005.15,"body":"appraisal is what everybody else"},{"speaker":"Unknown","startTime":1002.06,"endTime":1005.15,"body":"assumes that the value of the"},{"speaker":"Unknown","startTime":1005.15,"endTime":1007.52,"body":"house is 430. Now another"},{"speaker":"Unknown","startTime":1005.15,"endTime":1007.52,"body":"appraiser will come in and come"},{"speaker":"Unknown","startTime":1007.52,"endTime":1010.13,"body":"in at 450. The next day, you"},{"speaker":"Unknown","startTime":1007.52,"endTime":1010.13,"body":"never know, that's the only"},{"speaker":"Unknown","startTime":1010.13,"endTime":1012.83,"body":"difference is the house is worth"},{"speaker":"Unknown","startTime":1010.13,"endTime":1012.83,"body":"$20,000 less, and they have"},{"speaker":"Unknown","startTime":1012.86,"endTime":1015.89,"body":"$20,000 less equity. Now let's"},{"speaker":"Unknown","startTime":1012.86,"endTime":1015.89,"body":"give you an exact second"},{"speaker":"Unknown","startTime":1015.89,"endTime":1019.79,"body":"example. Let's say you have a"},{"speaker":"Unknown","startTime":1015.89,"endTime":1019.79,"body":"contract for $470,000. And you"},{"speaker":"Unknown","startTime":1019.79,"endTime":1024.98,"body":"put down 15%. So your loan would"},{"speaker":"Unknown","startTime":1019.79,"endTime":1024.98,"body":"be $399,500. So you're bringing"},{"speaker":"Unknown","startTime":1025.01,"endTime":1029.42,"body":"cash at $70,500. But now let's"},{"speaker":"Unknown","startTime":1025.01,"endTime":1029.42,"body":"say the house appraised for"},{"speaker":"Unknown","startTime":1029.42,"endTime":1033.74,"body":"$20,000, less at 450. So now you"},{"speaker":"Unknown","startTime":1029.42,"endTime":1033.74,"body":"only are going to put down,"},{"speaker":"Unknown","startTime":1033.74,"endTime":1037.04,"body":"let's say 10%. So you're going"},{"speaker":"Unknown","startTime":1033.74,"endTime":1037.04,"body":"to borrow $405,000. In this"},{"speaker":"Unknown","startTime":1037.04,"endTime":1039.41,"body":"scenario, because the house"},{"speaker":"Unknown","startTime":1037.04,"endTime":1039.41,"body":"didn't appraise. Well, now what"},{"speaker":"Unknown","startTime":1039.41,"endTime":1042.74,"body":"you're doing is you're bringing"},{"speaker":"Unknown","startTime":1039.41,"endTime":1042.74,"body":"$65,000 to closing versus"},{"speaker":"Unknown","startTime":1042.74,"endTime":1048.38,"body":"putting down 7000 70,500. So"},{"speaker":"Unknown","startTime":1042.74,"endTime":1048.38,"body":"you're putting down 5500 less"},{"speaker":"Unknown","startTime":1048.38,"endTime":1053.54,"body":"money, but you're borrowing"},{"speaker":"Unknown","startTime":1048.38,"endTime":1053.54,"body":"$5,500 more money. So the terms"},{"speaker":"Unknown","startTime":1053.54,"endTime":1056.69,"body":"are not really all that"},{"speaker":"Unknown","startTime":1053.54,"endTime":1056.69,"body":"difference, the loan pricing may"},{"speaker":"Unknown","startTime":1056.69,"endTime":1058.97,"body":"be a little bit different in it"},{"speaker":"Unknown","startTime":1056.69,"endTime":1058.97,"body":"because of the loan to value"},{"speaker":"Unknown","startTime":1058.97,"endTime":1062.27,"body":"ratios. And PMI could cost you a"},{"speaker":"Unknown","startTime":1058.97,"endTime":1062.27,"body":"little bit more because you are"},{"speaker":"Unknown","startTime":1062.27,"endTime":1065.78,"body":"putting down but essentially,"},{"speaker":"Unknown","startTime":1062.27,"endTime":1065.78,"body":"it's the same situation. So now"},{"speaker":"Unknown","startTime":1065.78,"endTime":1070.31,"body":"let's talk about one vastly"},{"speaker":"Unknown","startTime":1065.78,"endTime":1070.31,"body":"different scenario $450,000"},{"speaker":"Unknown","startTime":1070.31,"endTime":1074.15,"body":"contract 5% down means you're"},{"speaker":"Unknown","startTime":1070.31,"endTime":1074.15,"body":"bringing 22,500 to the purchase"},{"speaker":"Unknown","startTime":1074.15,"endTime":1078.32,"body":"price. So your loan in this"},{"speaker":"Unknown","startTime":1074.15,"endTime":1078.32,"body":"situation is gonna be $427,500."},{"speaker":"Unknown","startTime":1078.47,"endTime":1081.38,"body":"But this changes everything when"},{"speaker":"Unknown","startTime":1078.47,"endTime":1081.38,"body":"the property only appraises at"},{"speaker":"Unknown","startTime":1081.38,"endTime":1086.54,"body":"430. Because the lender is not"},{"speaker":"Unknown","startTime":1081.38,"endTime":1086.54,"body":"going to loan you $427,500 on a"},{"speaker":"Unknown","startTime":1086.54,"endTime":1091.01,"body":"$437,000 valued house, it's just"},{"speaker":"Unknown","startTime":1086.54,"endTime":1091.01,"body":"not going to do it. So the"},{"speaker":"Unknown","startTime":1091.01,"endTime":1094.94,"body":"420 2500 that you were going to"},{"speaker":"Unknown","startTime":1091.01,"endTime":1094.94,"body":"bring to closing is your down"},{"speaker":"Unknown","startTime":1094.94,"endTime":1097.52,"body":"payment, now essentially is the"},{"speaker":"Unknown","startTime":1094.94,"endTime":1097.52,"body":"money you're going to be using"},{"speaker":"Unknown","startTime":1097.52,"endTime":1099.17,"body":"to pay the difference in the"},{"speaker":"Unknown","startTime":1097.52,"endTime":1099.17,"body":"appraised value in the"},{"speaker":"Unknown","startTime":1099.17,"endTime":1102.26,"body":"contracted value. So this would"},{"speaker":"Unknown","startTime":1099.17,"endTime":1102.26,"body":"mean the lender would be lending"},{"speaker":"Unknown","startTime":1102.26,"endTime":1105.08,"body":"100% of the value, which just"},{"speaker":"Unknown","startTime":1102.26,"endTime":1105.08,"body":"isn't going to happen again,"},{"speaker":"Unknown","startTime":1105.08,"endTime":1108.32,"body":"because this is a 2007. So the"},{"speaker":"Unknown","startTime":1105.08,"endTime":1108.32,"body":"borrower is going to have to"},{"speaker":"Unknown","startTime":1108.32,"endTime":1112.97,"body":"bring to this deal, the VA"},{"speaker":"Unknown","startTime":1108.32,"endTime":1112.97,"body":"percent money and the difference"},{"speaker":"Unknown","startTime":1112.97,"endTime":1115.25,"body":"in the loans. We're talking"},{"speaker":"Unknown","startTime":1112.97,"endTime":1115.25,"body":"about another $20,000. So now"},{"speaker":"Unknown","startTime":1115.25,"endTime":1119.72,"body":"they're going to put down"},{"speaker":"Unknown","startTime":1115.25,"endTime":1119.72,"body":"$42,500. Question is, does your"},{"speaker":"Unknown","startTime":1119.72,"endTime":1122.78,"body":"client the buyer have this money"},{"speaker":"Unknown","startTime":1119.72,"endTime":1122.78,"body":"to make the payment and as a"},{"speaker":"Unknown","startTime":1122.78,"endTime":1125.96,"body":"listing agent you want to make"},{"speaker":"Unknown","startTime":1122.78,"endTime":1125.96,"body":"make sure these proof of funds"},{"speaker":"Unknown","startTime":1125.96,"endTime":1128.48,"body":"before you agree to accept this"},{"speaker":"Unknown","startTime":1125.96,"endTime":1128.48,"body":"offer. So when you're dealing"},{"speaker":"Unknown","startTime":1128.48,"endTime":1131.45,"body":"with these situations, as a"},{"speaker":"Unknown","startTime":1128.48,"endTime":1131.45,"body":"listing agent, you need to"},{"speaker":"Unknown","startTime":1131.45,"endTime":1134.15,"body":"understand and ask what's your"},{"speaker":"Unknown","startTime":1131.45,"endTime":1134.15,"body":"loan to value ratio going to be?"},{"speaker":"Unknown","startTime":1134.15,"endTime":1136.88,"body":"How much are you planning on"},{"speaker":"Unknown","startTime":1134.15,"endTime":1136.88,"body":"putting down so that your client"},{"speaker":"Unknown","startTime":1136.88,"endTime":1138.83,"body":"the seller has all that"},{"speaker":"Unknown","startTime":1136.88,"endTime":1138.83,"body":"information so they can"},{"speaker":"Unknown","startTime":1138.83,"endTime":1141.59,"body":"determine whether they believe"},{"speaker":"Unknown","startTime":1138.83,"endTime":1141.59,"body":"this is going to be more like"},{"speaker":"Unknown","startTime":1141.59,"endTime":1145.85,"body":"situation one and two, and less"},{"speaker":"Unknown","startTime":1141.59,"endTime":1145.85,"body":"like situation number three. So"},{"speaker":"Unknown","startTime":1145.85,"endTime":1149.0,"body":"this goes back to what I did in"},{"speaker":"Unknown","startTime":1145.85,"endTime":1149.0,"body":"the podcast a few months ago on"},{"speaker":"Unknown","startTime":1149.0,"endTime":1151.43,"body":"buying contracts, if you"},{"speaker":"Unknown","startTime":1149.0,"endTime":1151.43,"body":"remember I talked about when"},{"speaker":"Unknown","startTime":1151.43,"endTime":1155.12,"body":"there's offers are so high over"},{"speaker":"Unknown","startTime":1151.43,"endTime":1155.12,"body":"asking price that they're going"},{"speaker":"Unknown","startTime":1155.12,"endTime":1158.6,"body":"to use the appraisal as a way to"},{"speaker":"Unknown","startTime":1155.12,"endTime":1158.6,"body":"basically renegotiate the"},{"speaker":"Unknown","startTime":1158.6,"endTime":1161.18,"body":"contract. So that's been our"},{"speaker":"Unknown","startTime":1158.6,"endTime":1161.18,"body":"second most listened to podcast"},{"speaker":"Unknown","startTime":1161.18,"endTime":1164.0,"body":"and so you need to take a listen"},{"speaker":"Unknown","startTime":1161.18,"endTime":1164.0,"body":"to that because it explains how"},{"speaker":"Unknown","startTime":1164.06,"endTime":1167.27,"body":"buyers are doing this and that"},{"speaker":"Unknown","startTime":1164.06,"endTime":1167.27,"body":"sellers need to be very careful"},{"speaker":"Unknown","startTime":1167.36,"endTime":1169.94,"body":"about these outlandish offers"},{"speaker":"Unknown","startTime":1167.36,"endTime":1169.94,"body":"and understand how this"},{"speaker":"Unknown","startTime":1169.94,"endTime":1173.84,"body":"appraisal situation works. This"},{"speaker":"Unknown","startTime":1169.94,"endTime":1173.84,"body":"is also where the appraisal gap"},{"speaker":"Unknown","startTime":1173.84,"endTime":1177.05,"body":"coverage language can come in."},{"speaker":"Unknown","startTime":1173.84,"endTime":1177.05,"body":"But the point being is if the"},{"speaker":"Unknown","startTime":1177.05,"endTime":1181.04,"body":"buyer is putting down 25 or 30"},{"speaker":"Unknown","startTime":1177.05,"endTime":1181.04,"body":"or more percent of this on the"},{"speaker":"Unknown","startTime":1181.13,"endTime":1185.33,"body":"on the purchase price and has a"},{"speaker":"Unknown","startTime":1181.13,"endTime":1185.33,"body":"loan to value ratio is 75 to"},{"speaker":"Unknown","startTime":1185.96,"endTime":1189.62,"body":"7580 90%, you're probably going"},{"speaker":"Unknown","startTime":1185.96,"endTime":1189.62,"body":"to be okay. It's not going to be"},{"speaker":"Unknown","startTime":1189.62,"endTime":1193.61,"body":"that big of a problem. But when"},{"speaker":"Unknown","startTime":1189.62,"endTime":1193.61,"body":"the buyer is putting down 3% 5%"},{"speaker":"Unknown","startTime":1193.61,"endTime":1196.88,"body":"doing a VA doing an FHA loan"},{"speaker":"Unknown","startTime":1193.61,"endTime":1196.88,"body":"doing State Housing, this is"},{"speaker":"Unknown","startTime":1196.88,"endTime":1199.31,"body":"when it becomes a huge issue for"},{"speaker":"Unknown","startTime":1196.88,"endTime":1199.31,"body":"yourself and we're gonna discuss"},{"speaker":"Unknown","startTime":1199.31,"endTime":1199.97,"body":"language to talk"},{"speaker":"Unknown","startTime":1200.0,"endTime":1202.85,"body":"about that in just a minute."},{"speaker":"Unknown","startTime":1200.0,"endTime":1202.85,"body":"Now, how do you write a pays"},{"speaker":"Unknown","startTime":1202.85,"endTime":1205.94,"body":"appraisal gap coverage into a"},{"speaker":"Unknown","startTime":1202.85,"endTime":1205.94,"body":"real estate contract? There are"},{"speaker":"Unknown","startTime":1205.94,"endTime":1209.21,"body":"many different ways to write"},{"speaker":"Unknown","startTime":1205.94,"endTime":1209.21,"body":"this appraisal gap coverage. The"},{"speaker":"Unknown","startTime":1209.21,"endTime":1212.63,"body":"main thing that needs to be"},{"speaker":"Unknown","startTime":1209.21,"endTime":1212.63,"body":"noted is that the monetary value"},{"speaker":"Unknown","startTime":1212.63,"endTime":1216.17,"body":"of your appraisal gap guarantee,"},{"speaker":"Unknown","startTime":1212.63,"endTime":1216.17,"body":"it's not wise to state if you're"},{"speaker":"Unknown","startTime":1216.17,"endTime":1218.99,"body":"representing a buyer that you"},{"speaker":"Unknown","startTime":1216.17,"endTime":1218.99,"body":"will cover an unlimited amount"},{"speaker":"Unknown","startTime":1218.99,"endTime":1221.15,"body":"between the sales price and the"},{"speaker":"Unknown","startTime":1218.99,"endTime":1221.15,"body":"appraised value, because"},{"speaker":"Unknown","startTime":1221.15,"endTime":1224.09,"body":"appraisals and the sales price"},{"speaker":"Unknown","startTime":1221.15,"endTime":1224.09,"body":"can be vastly different things."},{"speaker":"Unknown","startTime":1224.39,"endTime":1226.82,"body":"The agent should always want to"},{"speaker":"Unknown","startTime":1224.39,"endTime":1226.82,"body":"put a maximum amount if you're"},{"speaker":"Unknown","startTime":1226.85,"endTime":1229.25,"body":"that the buyers willing to"},{"speaker":"Unknown","startTime":1226.85,"endTime":1229.25,"body":"cover. But before I give you the"},{"speaker":"Unknown","startTime":1229.25,"endTime":1231.62,"body":"examples of the language, you"},{"speaker":"Unknown","startTime":1229.25,"endTime":1231.62,"body":"understand, the biggest problem"},{"speaker":"Unknown","startTime":1231.65,"endTime":1235.07,"body":"that I see is that these things"},{"speaker":"Unknown","startTime":1231.65,"endTime":1235.07,"body":"are being written so poorly,"},{"speaker":"Unknown","startTime":1235.13,"endTime":1238.1,"body":"that neither the agents know"},{"speaker":"Unknown","startTime":1235.13,"endTime":1238.1,"body":"that nor the buyer or the seller"},{"speaker":"Unknown","startTime":1238.1,"endTime":1240.53,"body":"have any understanding as to"},{"speaker":"Unknown","startTime":1238.1,"endTime":1240.53,"body":"what the other party is willing"},{"speaker":"Unknown","startTime":1240.53,"endTime":1243.89,"body":"to do or not do. And there's so"},{"speaker":"Unknown","startTime":1240.53,"endTime":1243.89,"body":"often written one sided and not"},{"speaker":"Unknown","startTime":1243.89,"endTime":1247.25,"body":"what the other party intended"},{"speaker":"Unknown","startTime":1243.89,"endTime":1247.25,"body":"that it becomes a huge problem."},{"speaker":"Unknown","startTime":1247.4,"endTime":1249.62,"body":"So there are many different"},{"speaker":"Unknown","startTime":1247.4,"endTime":1249.62,"body":"provisions that could be used"},{"speaker":"Unknown","startTime":1249.62,"endTime":1252.38,"body":"depending on the agreement and"},{"speaker":"Unknown","startTime":1249.62,"endTime":1252.38,"body":"the appraisal contingencies, for"},{"speaker":"Unknown","startTime":1252.38,"endTime":1256.4,"body":"example, is it says it for a set"},{"speaker":"Unknown","startTime":1252.38,"endTime":1256.4,"body":"amount above the appraisal that"},{"speaker":"Unknown","startTime":1256.4,"endTime":1259.43,"body":"the buyer is willing to pay? Or"},{"speaker":"Unknown","startTime":1256.4,"endTime":1259.43,"body":"is it an agreement to pay just"},{"speaker":"Unknown","startTime":1259.43,"endTime":1262.25,"body":"the difference between the sales"},{"speaker":"Unknown","startTime":1259.43,"endTime":1262.25,"body":"price and the appraisal? It"},{"speaker":"Unknown","startTime":1262.25,"endTime":1265.04,"body":"comes down to what the buyer is"},{"speaker":"Unknown","startTime":1262.25,"endTime":1265.04,"body":"agreeing to pay? Are we talking"},{"speaker":"Unknown","startTime":1265.04,"endTime":1267.05,"body":"about an amount over the"},{"speaker":"Unknown","startTime":1265.04,"endTime":1267.05,"body":"appraised value? Or are they"},{"speaker":"Unknown","startTime":1267.05,"endTime":1270.35,"body":"paying no more than a sales"},{"speaker":"Unknown","startTime":1267.05,"endTime":1270.35,"body":"price? Is the amount over the"},{"speaker":"Unknown","startTime":1270.35,"endTime":1273.59,"body":"appraised value but no more than"},{"speaker":"Unknown","startTime":1270.35,"endTime":1273.59,"body":"the purchase price is an amount"},{"speaker":"Unknown","startTime":1273.62,"endTime":1277.55,"body":"over appraised value? What could"},{"speaker":"Unknown","startTime":1273.62,"endTime":1277.55,"body":"be less than the purchase price?"},{"speaker":"Unknown","startTime":1277.79,"endTime":1281.36,"body":"Is the seller obligated to"},{"speaker":"Unknown","startTime":1277.79,"endTime":1281.36,"body":"reduce the sales price? Is the"},{"speaker":"Unknown","startTime":1281.36,"endTime":1284.21,"body":"buyer obligated to always bring"},{"speaker":"Unknown","startTime":1281.36,"endTime":1284.21,"body":"the difference between the"},{"speaker":"Unknown","startTime":1284.21,"endTime":1287.3,"body":"appraised value and the sales"},{"speaker":"Unknown","startTime":1284.21,"endTime":1287.3,"body":"price? For example, let's say we"},{"speaker":"Unknown","startTime":1287.3,"endTime":1292.07,"body":"go back to our $450,000 purchase"},{"speaker":"Unknown","startTime":1287.3,"endTime":1292.07,"body":"price. The clause obligates the"},{"speaker":"Unknown","startTime":1292.07,"endTime":1295.28,"body":"buyer to bring $10,000 to pay"},{"speaker":"Unknown","startTime":1292.07,"endTime":1295.28,"body":"for an appraisal gap is the"},{"speaker":"Unknown","startTime":1295.28,"endTime":1299.39,"body":"house if the house appraises for"},{"speaker":"Unknown","startTime":1295.28,"endTime":1299.39,"body":"$440,000. It's not a problem,"},{"speaker":"Unknown","startTime":1299.48,"endTime":1303.71,"body":"right? Well, maybe depends on"},{"speaker":"Unknown","startTime":1299.48,"endTime":1303.71,"body":"how you wrote it. Is the"},{"speaker":"Unknown","startTime":1303.71,"endTime":1309.5,"body":"borrower paying $450,000 or"},{"speaker":"Unknown","startTime":1303.71,"endTime":1309.5,"body":"$10,000 over the appraised value"},{"speaker":"Unknown","startTime":1309.5,"endTime":1313.73,"body":"at $454,000? Hmm, well, it"},{"speaker":"Unknown","startTime":1309.5,"endTime":1313.73,"body":"depends on how you wrote it."},{"speaker":"Unknown","startTime":1314.15,"endTime":1318.32,"body":"Well, how about a $450,000"},{"speaker":"Unknown","startTime":1314.15,"endTime":1318.32,"body":"purchase price with $10,000"},{"speaker":"Unknown","startTime":1318.38,"endTime":1322.37,"body":"appraisal gap, but it appraises"},{"speaker":"Unknown","startTime":1318.38,"endTime":1322.37,"body":"at 430. Now what is the sales"},{"speaker":"Unknown","startTime":1322.52,"endTime":1326.48,"body":"price for 440? The 430 sales"},{"speaker":"Unknown","startTime":1322.52,"endTime":1326.48,"body":"price plus the $10,000? Is the"},{"speaker":"Unknown","startTime":1326.48,"endTime":1328.88,"body":"seller obligated to lower this"},{"speaker":"Unknown","startTime":1326.48,"endTime":1328.88,"body":"price? What happens if it"},{"speaker":"Unknown","startTime":1328.88,"endTime":1332.12,"body":"appraises at 400? Are we now"},{"speaker":"Unknown","startTime":1328.88,"endTime":1332.12,"body":"talking for 10? is a seller"},{"speaker":"Unknown","startTime":1332.12,"endTime":1335.0,"body":"again obligated to lower the"},{"speaker":"Unknown","startTime":1332.12,"endTime":1335.0,"body":"price? In most cases based on"},{"speaker":"Unknown","startTime":1335.0,"endTime":1337.04,"body":"the way I see the language"},{"speaker":"Unknown","startTime":1335.0,"endTime":1337.04,"body":"written? The answer is No,"},{"speaker":"Unknown","startTime":1337.07,"endTime":1340.46,"body":"they're not. But it's been so"},{"speaker":"Unknown","startTime":1337.07,"endTime":1340.46,"body":"poorly written in the past that"},{"speaker":"Unknown","startTime":1340.49,"endTime":1343.34,"body":"I don't know sometimes it could"},{"speaker":"Unknown","startTime":1340.49,"endTime":1343.34,"body":"be or the party's putting a"},{"speaker":"Unknown","startTime":1343.34,"endTime":1346.04,"body":"floor in there. The provision"},{"speaker":"Unknown","startTime":1343.34,"endTime":1346.04,"body":"could have an obligation for the"},{"speaker":"Unknown","startTime":1346.04,"endTime":1349.28,"body":"seller is all depends on what"},{"speaker":"Unknown","startTime":1346.04,"endTime":1349.28,"body":"the parties agreeing to what"},{"speaker":"Unknown","startTime":1349.28,"endTime":1352.28,"body":"we're going to put in this this"},{"speaker":"Unknown","startTime":1349.28,"endTime":1352.28,"body":"language. But what happens"},{"speaker":"Unknown","startTime":1352.28,"endTime":1356.03,"body":"again, if it appraises for 455"},{"speaker":"Unknown","startTime":1352.28,"endTime":1356.03,"body":"what is the buyer obligated to"},{"speaker":"Unknown","startTime":1356.03,"endTime":1359.15,"body":"pay it sales price is 450. But"},{"speaker":"Unknown","startTime":1356.03,"endTime":1359.15,"body":"they've agreed to pay $10,000"},{"speaker":"Unknown","startTime":1359.18,"endTime":1363.77,"body":"over the appraisal. It appraises"},{"speaker":"Unknown","startTime":1359.18,"endTime":1363.77,"body":"for 455. So is it 465? Is it"},{"speaker":"Unknown","startTime":1363.77,"endTime":1366.89,"body":"450. The language in the"},{"speaker":"Unknown","startTime":1363.77,"endTime":1366.89,"body":"provision matters now the"},{"speaker":"Unknown","startTime":1366.89,"endTime":1369.56,"body":"provision language I see the"},{"speaker":"Unknown","startTime":1366.89,"endTime":1369.56,"body":"most is if the party does not"},{"speaker":"Unknown","startTime":1369.56,"endTime":1372.86,"body":"appraise for the purchase price"},{"speaker":"Unknown","startTime":1369.56,"endTime":1372.86,"body":"the borrower agrees to pay up to"},{"speaker":"Unknown","startTime":1372.86,"endTime":1375.5,"body":"$20,000 above the appraised"},{"speaker":"Unknown","startTime":1372.86,"endTime":1375.5,"body":"value but not to exceed the"},{"speaker":"Unknown","startTime":1375.5,"endTime":1380.06,"body":"purchase price. That may cover"},{"speaker":"Unknown","startTime":1375.5,"endTime":1380.06,"body":"sometimes may not. My good"},{"speaker":"Unknown","startTime":1380.06,"endTime":1382.1,"body":"friend Eric asked me to write a"},{"speaker":"Unknown","startTime":1380.06,"endTime":1382.1,"body":"clause that I started writing"},{"speaker":"Unknown","startTime":1382.1,"endTime":1384.11,"body":"this and I became across a lot"},{"speaker":"Unknown","startTime":1382.1,"endTime":1384.11,"body":"of problems. There's just so"},{"speaker":"Unknown","startTime":1384.11,"endTime":1387.14,"body":"many variables to this. So I'd"},{"speaker":"Unknown","startTime":1384.11,"endTime":1387.14,"body":"come up with things such as"},{"speaker":"Unknown","startTime":1387.14,"endTime":1389.75,"body":"this, the parties acknowledge"},{"speaker":"Unknown","startTime":1387.14,"endTime":1389.75,"body":"that the subject property is"},{"speaker":"Unknown","startTime":1389.75,"endTime":1392.3,"body":"unlikely to appraise for the"},{"speaker":"Unknown","startTime":1389.75,"endTime":1392.3,"body":"purchase price set forth in the"},{"speaker":"Unknown","startTime":1392.3,"endTime":1395.27,"body":"contract. While the contract is"},{"speaker":"Unknown","startTime":1392.3,"endTime":1395.27,"body":"contingent on appraisal, the"},{"speaker":"Unknown","startTime":1395.27,"endTime":1398.15,"body":"parties agree that the purchaser"},{"speaker":"Unknown","startTime":1395.27,"endTime":1398.15,"body":"shall pay the difference between"},{"speaker":"Unknown","startTime":1398.15,"endTime":1400.67,"body":"the appraised value of the"},{"speaker":"Unknown","startTime":1398.15,"endTime":1400.67,"body":"property and the purchase price"},{"speaker":"Unknown","startTime":1400.67,"endTime":1403.13,"body":"regardless of the loan the"},{"speaker":"Unknown","startTime":1400.67,"endTime":1403.13,"body":"purchaser receives. This"},{"speaker":"Unknown","startTime":1403.13,"endTime":1405.95,"body":"provision shall be in effect"},{"speaker":"Unknown","startTime":1403.13,"endTime":1405.95,"body":"notwithstanding the appraisal"},{"speaker":"Unknown","startTime":1405.95,"endTime":1409.01,"body":"financial contingency, and the"},{"speaker":"Unknown","startTime":1405.95,"endTime":1409.01,"body":"purchaser shall not be able to"},{"speaker":"Unknown","startTime":1409.01,"endTime":1411.83,"body":"terminate the contract under the"},{"speaker":"Unknown","startTime":1409.01,"endTime":1411.83,"body":"appraisal or financing provision"},{"speaker":"Unknown","startTime":1411.83,"endTime":1415.16,"body":"due to the amount of appraisal"},{"speaker":"Unknown","startTime":1411.83,"endTime":1415.16,"body":"gap. But really, the contract in"},{"speaker":"Unknown","startTime":1415.16,"endTime":1418.34,"body":"this case is just not be subject"},{"speaker":"Unknown","startTime":1415.16,"endTime":1418.34,"body":"to an appraisal. The second one"},{"speaker":"Unknown","startTime":1418.34,"endTime":1420.83,"body":"I came up with was the parties"},{"speaker":"Unknown","startTime":1418.34,"endTime":1420.83,"body":"acknowledge that the seller"},{"speaker":"Unknown","startTime":1420.83,"endTime":1424.07,"body":"property or the subject property"},{"speaker":"Unknown","startTime":1420.83,"endTime":1424.07,"body":"is unlikely to appraise for the"},{"speaker":"Unknown","startTime":1424.07,"endTime":1426.89,"body":"purchase price set forth in the"},{"speaker":"Unknown","startTime":1424.07,"endTime":1426.89,"body":"contract. While the contract is"},{"speaker":"Unknown","startTime":1426.89,"endTime":1429.23,"body":"contingent on appraisal, the"},{"speaker":"Unknown","startTime":1426.89,"endTime":1429.23,"body":"parties agree that the purchaser"},{"speaker":"Unknown","startTime":1429.23,"endTime":1433.46,"body":"shall pay the $5,000 above the"},{"speaker":"Unknown","startTime":1429.23,"endTime":1433.46,"body":"appropriate appraised value of"},{"speaker":"Unknown","startTime":1433.46,"endTime":1436.52,"body":"the property not to exceed a"},{"speaker":"Unknown","startTime":1433.46,"endTime":1436.52,"body":"final purchase price of 300"},{"speaker":"Unknown","startTime":1436.52,"endTime":1438.83,"body":"grand this agreement is"},{"speaker":"Unknown","startTime":1436.52,"endTime":1438.83,"body":"regardless of the loan amount"},{"speaker":"Unknown","startTime":1438.83,"endTime":1441.71,"body":"the purchaser receives. And then"},{"speaker":"Unknown","startTime":1438.83,"endTime":1441.71,"body":"I went ahead and as said that"},{"speaker":"Unknown","startTime":1441.71,"endTime":1444.44,"body":"the purchaser acknowledges the"},{"speaker":"Unknown","startTime":1441.71,"endTime":1444.44,"body":"lender may require the purchaser"},{"speaker":"Unknown","startTime":1444.44,"endTime":1447.23,"body":"to pay the difference in cash or"},{"speaker":"Unknown","startTime":1444.44,"endTime":1447.23,"body":"cash equivalents, and so forth."},{"speaker":"Unknown","startTime":1447.23,"endTime":1450.32,"body":"So the problem is there's so"},{"speaker":"Unknown","startTime":1447.23,"endTime":1450.32,"body":"many different variables here,"},{"speaker":"Unknown","startTime":1450.53,"endTime":1453.83,"body":"that one clause doesn't cover at"},{"speaker":"Unknown","startTime":1450.53,"endTime":1453.83,"body":"all. So you're really going to"},{"speaker":"Unknown","startTime":1453.83,"endTime":1456.65,"body":"have to figure out what is it"},{"speaker":"Unknown","startTime":1453.83,"endTime":1456.65,"body":"your buyers willing to do? What"},{"speaker":"Unknown","startTime":1456.65,"endTime":1460.22,"body":"is it your sellers willing to do"},{"speaker":"Unknown","startTime":1456.65,"endTime":1460.22,"body":"and write each and every one of"},{"speaker":"Unknown","startTime":1460.22,"endTime":1462.74,"body":"those terms? And then what you"},{"speaker":"Unknown","startTime":1460.22,"endTime":1462.74,"body":"need to do is look at it and"},{"speaker":"Unknown","startTime":1462.74,"endTime":1465.68,"body":"make sure you cover them all."},{"speaker":"Unknown","startTime":1462.74,"endTime":1465.68,"body":"Lastly, I need to quickly go"},{"speaker":"Unknown","startTime":1465.68,"endTime":1469.37,"body":"over the amendatory clause. How"},{"speaker":"Unknown","startTime":1465.68,"endTime":1469.37,"body":"does it affect things under a VA"},{"speaker":"Unknown","startTime":1469.37,"endTime":1472.37,"body":"or an FHA loan, the parties are"},{"speaker":"Unknown","startTime":1469.37,"endTime":1472.37,"body":"required by federal law to sign"},{"speaker":"Unknown","startTime":1472.37,"endTime":1475.01,"body":"a statement acknowledging that"},{"speaker":"Unknown","startTime":1472.37,"endTime":1475.01,"body":"the property does not appraise"},{"speaker":"Unknown","startTime":1475.01,"endTime":1477.11,"body":"the buyer may terminate the"},{"speaker":"Unknown","startTime":1475.01,"endTime":1477.11,"body":"contract. What you need to"},{"speaker":"Unknown","startTime":1477.11,"endTime":1480.41,"body":"understand is this is federal"},{"speaker":"Unknown","startTime":1477.11,"endTime":1480.41,"body":"law and it cannot be waived"},{"speaker":"Unknown","startTime":1480.41,"endTime":1484.1,"body":"period can't be waived. However,"},{"speaker":"Unknown","startTime":1480.41,"endTime":1484.1,"body":"there's nothing in the mandatory"},{"speaker":"Unknown","startTime":1484.1,"endTime":1487.76,"body":"clause it says the seller has to"},{"speaker":"Unknown","startTime":1484.1,"endTime":1487.76,"body":"lower the price of the house to"},{"speaker":"Unknown","startTime":1487.76,"endTime":1490.76,"body":"the appraised value, and nothing"},{"speaker":"Unknown","startTime":1487.76,"endTime":1490.76,"body":"under the law prohibits the"},{"speaker":"Unknown","startTime":1490.76,"endTime":1493.94,"body":"buyer from paying the difference"},{"speaker":"Unknown","startTime":1490.76,"endTime":1493.94,"body":"in cash equivalency. In these"},{"speaker":"Unknown","startTime":1493.94,"endTime":1497.06,"body":"situations. The seller has"},{"speaker":"Unknown","startTime":1493.94,"endTime":1497.06,"body":"already said they will not take"},{"speaker":"Unknown","startTime":1497.06,"endTime":1500.0,"body":"less than a certain amount when"},{"speaker":"Unknown","startTime":1497.06,"endTime":1500.0,"body":"they're asking for a price over"},{"speaker":"Unknown","startTime":1500.0,"endTime":1503.18,"body":"appraised value even under a VA"},{"speaker":"Unknown","startTime":1500.0,"endTime":1503.18,"body":"loan, the buyer knows that if"},{"speaker":"Unknown","startTime":1503.18,"endTime":1506.06,"body":"the property does not appraise"},{"speaker":"Unknown","startTime":1503.18,"endTime":1506.06,"body":"which is unlikely to the seller"},{"speaker":"Unknown","startTime":1506.06,"endTime":1508.67,"body":"is not going to be required to"},{"speaker":"Unknown","startTime":1506.06,"endTime":1508.67,"body":"lower the price. And the seller"},{"speaker":"Unknown","startTime":1508.67,"endTime":1510.95,"body":"has already told them, they're"},{"speaker":"Unknown","startTime":1508.67,"endTime":1510.95,"body":"not going to lower it and what"},{"speaker":"Unknown","startTime":1510.95,"endTime":1513.65,"body":"the buyer is going to be"},{"speaker":"Unknown","startTime":1510.95,"endTime":1513.65,"body":"required to pay as a minimum if"},{"speaker":"Unknown","startTime":1513.65,"endTime":1516.23,"body":"they want to buy the house. So"},{"speaker":"Unknown","startTime":1513.65,"endTime":1516.23,"body":"everybody is in clear"},{"speaker":"Unknown","startTime":1516.23,"endTime":1519.5,"body":"understanding there. So even"},{"speaker":"Unknown","startTime":1516.23,"endTime":1519.5,"body":"though we have the amendatory"},{"speaker":"Unknown","startTime":1519.5,"endTime":1522.59,"body":"clause all is doing is allowing"},{"speaker":"Unknown","startTime":1519.5,"endTime":1522.59,"body":"the buyer to get out if the"},{"speaker":"Unknown","startTime":1522.59,"endTime":1525.02,"body":"house doesn't appraise. It's the"},{"speaker":"Unknown","startTime":1522.59,"endTime":1525.02,"body":"same thing as an appraisal"},{"speaker":"Unknown","startTime":1525.02,"endTime":1528.14,"body":"contingency. And the buyer"},{"speaker":"Unknown","startTime":1525.02,"endTime":1528.14,"body":"already knows that likely the"},{"speaker":"Unknown","startTime":1528.14,"endTime":1531.68,"body":"house will not appraise and it's"},{"speaker":"Unknown","startTime":1528.14,"endTime":1531.68,"body":"also likely, if not, certainly"},{"speaker":"Unknown","startTime":1531.74,"endTime":1534.92,"body":"the seller is not going to sell"},{"speaker":"Unknown","startTime":1531.74,"endTime":1534.92,"body":"it for that. So I don't see that"},{"speaker":"Unknown","startTime":1534.92,"endTime":1538.16,"body":"there's a lot of risk in that"},{"speaker":"Unknown","startTime":1534.92,"endTime":1538.16,"body":"amendatory clause as people"},{"speaker":"Unknown","startTime":1538.16,"endTime":1542.6,"body":"believe there is in this"},{"speaker":"Unknown","startTime":1538.16,"endTime":1542.6,"body":"situation. Not all appraisal gap"},{"speaker":"Unknown","startTime":1542.6,"endTime":1546.23,"body":"clauses are going to be"},{"speaker":"Unknown","startTime":1542.6,"endTime":1546.23,"body":"satisfactory for you. You have"},{"speaker":"Unknown","startTime":1546.23,"endTime":1549.2,"body":"to understand what each party"},{"speaker":"Unknown","startTime":1546.23,"endTime":1549.2,"body":"wants. And you're truly going to"},{"speaker":"Unknown","startTime":1549.2,"endTime":1551.84,"body":"have to go in and dig through"},{"speaker":"Unknown","startTime":1549.2,"endTime":1551.84,"body":"what they're going to do and"},{"speaker":"Unknown","startTime":1551.84,"endTime":1553.76,"body":"what they're not going to do."},{"speaker":"Unknown","startTime":1551.84,"endTime":1553.76,"body":"And think of the different"},{"speaker":"Unknown","startTime":1553.76,"endTime":1556.85,"body":"scenarios on how this is going"},{"speaker":"Unknown","startTime":1553.76,"endTime":1556.85,"body":"to play out. And moving over to"},{"speaker":"Unknown","startTime":1556.85,"endTime":1560.27,"body":"Gary's good news only. The army"},{"speaker":"Unknown","startTime":1556.85,"endTime":1560.27,"body":"is also adopting a new policy to"},{"speaker":"Unknown","startTime":1560.27,"endTime":1563.63,"body":"help soldiers move as housing"},{"speaker":"Unknown","startTime":1560.27,"endTime":1563.63,"body":"markets fire up, they have"},{"speaker":"Unknown","startTime":1563.63,"endTime":1566.69,"body":"recognized that with the"},{"speaker":"Unknown","startTime":1563.63,"endTime":1566.69,"body":"soldiers getting new orders that"},{"speaker":"Unknown","startTime":1566.72,"endTime":1569.3,"body":"in COVID restrictions being"},{"speaker":"Unknown","startTime":1566.72,"endTime":1569.3,"body":"listed truck troops are having"},{"speaker":"Unknown","startTime":1569.3,"endTime":1572.24,"body":"trouble finding adequate housing"},{"speaker":"Unknown","startTime":1569.3,"endTime":1572.24,"body":"and new location. So the army is"},{"speaker":"Unknown","startTime":1572.24,"endTime":1575.84,"body":"actually taking positive steps"},{"speaker":"Unknown","startTime":1572.24,"endTime":1575.84,"body":"to accommodate the 54,000"},{"speaker":"Unknown","startTime":1575.84,"endTime":1578.63,"body":"soldiers that are going to new"},{"speaker":"Unknown","startTime":1575.84,"endTime":1578.63,"body":"areas this summer. Good news"},{"speaker":"Unknown","startTime":1578.63,"endTime":1581.57,"body":"54,000 soldiers are PCs and that"},{"speaker":"Unknown","startTime":1578.63,"endTime":1581.57,"body":"means people are moving in and"},{"speaker":"Unknown","startTime":1581.57,"endTime":1584.42,"body":"out which is good for sales. And"},{"speaker":"Unknown","startTime":1581.57,"endTime":1584.42,"body":"it also means more houses"},{"speaker":"Unknown","startTime":1584.42,"endTime":1586.97,"body":"Michael in the market is also"},{"speaker":"Unknown","startTime":1584.42,"endTime":1586.97,"body":"good to see the army has"},{"speaker":"Unknown","startTime":1586.97,"endTime":1590.21,"body":"recognized they need to work on"},{"speaker":"Unknown","startTime":1586.97,"endTime":1590.21,"body":"that. Now let's talk about COVID"},{"speaker":"Unknown","startTime":1590.81,"endTime":1593.18,"body":"morti mcherry, as you all know,"},{"speaker":"Unknown","startTime":1590.81,"endTime":1593.18,"body":"I've talked about before is a"},{"speaker":"Unknown","startTime":1593.18,"endTime":1596.39,"body":"brilliant Doctor Who has been"},{"speaker":"Unknown","startTime":1593.18,"endTime":1596.39,"body":"right almost everything he says"},{"speaker":"Unknown","startTime":1596.39,"endTime":1599.45,"body":"about COVID more than pretty"},{"speaker":"Unknown","startTime":1596.39,"endTime":1599.45,"body":"much anybody else. He says it's"},{"speaker":"Unknown","startTime":1599.45,"endTime":1602.36,"body":"important to understand that the"},{"speaker":"Unknown","startTime":1599.45,"endTime":1602.36,"body":"positive test is not a clinical"},{"speaker":"Unknown","startTime":1602.36,"endTime":1605.69,"body":"diagnosis of an illness, adding"},{"speaker":"Unknown","startTime":1602.36,"endTime":1605.69,"body":"that the important thing is that"},{"speaker":"Unknown","startTime":1605.69,"endTime":1609.05,"body":"people don't come down with"},{"speaker":"Unknown","startTime":1605.69,"endTime":1609.05,"body":"severe illness. The crux here is"},{"speaker":"Unknown","startTime":1609.05,"endTime":1611.78,"body":"that there is a difference"},{"speaker":"Unknown","startTime":1609.05,"endTime":1611.78,"body":"between a virus and the disease"},{"speaker":"Unknown","startTime":1611.81,"endTime":1614.6,"body":"it can cause in this new phase"},{"speaker":"Unknown","startTime":1611.81,"endTime":1614.6,"body":"of battle in the pandemic, we"},{"speaker":"Unknown","startTime":1614.6,"endTime":1617.96,"body":"need to start talking more about"},{"speaker":"Unknown","startTime":1614.6,"endTime":1617.96,"body":"viral loads and quit tabulating"},{"speaker":"Unknown","startTime":1617.96,"endTime":1621.29,"body":"cases, which are super sensitive"},{"speaker":"Unknown","startTime":1617.96,"endTime":1621.29,"body":"to the testing. And we need to"},{"speaker":"Unknown","startTime":1621.35,"endTime":1623.93,"body":"start worrying about viral load."},{"speaker":"Unknown","startTime":1621.35,"endTime":1623.93,"body":"Because it's important to"},{"speaker":"Unknown","startTime":1623.93,"endTime":1626.21,"body":"understand that people can fight"},{"speaker":"Unknown","startTime":1623.93,"endTime":1626.21,"body":"off the infection is still being"},{"speaker":"Unknown","startTime":1626.24,"endTime":1628.79,"body":"considered positive and that"},{"speaker":"Unknown","startTime":1626.24,"endTime":1628.79,"body":"skewing our numbers. According"},{"speaker":"Unknown","startTime":1628.79,"endTime":1631.79,"body":"to the CDC, if you're under the"},{"speaker":"Unknown","startTime":1628.79,"endTime":1631.79,"body":"age of 29 95% of those"},{"speaker":"Unknown","startTime":1631.79,"endTime":1634.64,"body":"fatalities, which are very"},{"speaker":"Unknown","startTime":1631.79,"endTime":1634.64,"body":"minimal to begin with, are from"},{"speaker":"Unknown","startTime":1634.64,"endTime":1637.64,"body":"people who have severe co"},{"speaker":"Unknown","startTime":1634.64,"endTime":1637.64,"body":"morbidities. In fact, the"},{"speaker":"Unknown","startTime":1637.64,"endTime":1641.09,"body":"average number for all ages is"},{"speaker":"Unknown","startTime":1637.64,"endTime":1641.09,"body":"two to four for people who are"},{"speaker":"Unknown","startTime":1641.09,"endTime":1644.69,"body":"dying. Now the median age of"},{"speaker":"Unknown","startTime":1641.09,"endTime":1644.69,"body":"someone dying with COVID now is"},{"speaker":"Unknown","startTime":1644.72,"endTime":1650.36,"body":"at life expectancy in the United"},{"speaker":"Unknown","startTime":1644.72,"endTime":1650.36,"body":"States is 78. From cow lamb,"},{"speaker":"Unknown","startTime":1650.72,"endTime":1653.48,"body":"concerning the Delta vary that"},{"speaker":"Unknown","startTime":1650.72,"endTime":1653.48,"body":"everybody's freaking out about,"},{"speaker":"Unknown","startTime":1653.72,"endTime":1657.83,"body":"he says are very few exceptions."},{"speaker":"Unknown","startTime":1653.72,"endTime":1657.83,"body":"But the general rule is that the"},{"speaker":"Unknown","startTime":1657.83,"endTime":1661.7,"body":"Delta variant usually lasts"},{"speaker":"Unknown","startTime":1657.83,"endTime":1661.7,"body":"about 45 days from the onset to"},{"speaker":"Unknown","startTime":1661.73,"endTime":1665.39,"body":"its peak. And we are already"},{"speaker":"Unknown","startTime":1661.73,"endTime":1665.39,"body":"seeing that across the world."},{"speaker":"Unknown","startTime":1665.6,"endTime":1669.41,"body":"seven day moving average for"},{"speaker":"Unknown","startTime":1665.6,"endTime":1669.41,"body":"cases is still at 4.2% lower"},{"speaker":"Unknown","startTime":1669.41,"endTime":1673.64,"body":"than it was at SP We are now at"},{"speaker":"Unknown","startTime":1669.41,"endTime":1673.64,"body":"163 million Americans fully"},{"speaker":"Unknown","startTime":1673.64,"endTime":1676.97,"body":"vaccinated which is 49.1% of the"},{"speaker":"Unknown","startTime":1673.64,"endTime":1676.97,"body":"population continue here the"},{"speaker":"Unknown","startTime":1676.97,"endTime":1680.3,"body":"media a lot of you and tell you"},{"speaker":"Unknown","startTime":1676.97,"endTime":1680.3,"body":"that United States is failing it"},{"speaker":"Unknown","startTime":1680.3,"endTime":1682.7,"body":"at vaccination. Well, in fact,"},{"speaker":"Unknown","startTime":1680.3,"endTime":1682.7,"body":"we are actually one of the"},{"speaker":"Unknown","startTime":1682.7,"endTime":1687.56,"body":"highest vaccinated country in"},{"speaker":"Unknown","startTime":1682.7,"endTime":1687.56,"body":"the world. 68.4% is the UAB"},{"speaker":"Unknown","startTime":1687.71,"endTime":1693.05,"body":"Israel's at 61%. Canada is at"},{"speaker":"Unknown","startTime":1687.71,"endTime":1693.05,"body":"54.7. UK is at 54.4. Germany's"},{"speaker":"Unknown","startTime":1693.05,"endTime":1698.18,"body":"at 48.7. As is United States,"},{"speaker":"Unknown","startTime":1693.05,"endTime":1698.18,"body":"France is at 44.1. Sweden's at"},{"speaker":"Unknown","startTime":1698.18,"endTime":1704.18,"body":"39, Japan of all places 23.2."},{"speaker":"Unknown","startTime":1698.18,"endTime":1704.18,"body":"Mexico's at 18.3. Russia's at"},{"speaker":"Unknown","startTime":1704.18,"endTime":1711.14,"body":"15.6. Australia's at 12.8. India"},{"speaker":"Unknown","startTime":1704.18,"endTime":1711.14,"body":"is at 6.7. Taiwan is at point"},{"speaker":"Unknown","startTime":1711.14,"endTime":1713.87,"body":"nine. So it's not true that"},{"speaker":"Unknown","startTime":1711.14,"endTime":1713.87,"body":"we're following and trailing the"},{"speaker":"Unknown","startTime":1713.87,"endTime":1715.43,"body":"rest of the world. We're"},{"speaker":"Unknown","startTime":1713.87,"endTime":1715.43,"body":"actually one of the leaders."},{"speaker":"Unknown","startTime":1715.73,"endTime":1718.19,"body":"It's interesting also to note"},{"speaker":"Unknown","startTime":1715.73,"endTime":1718.19,"body":"that there's been 11 straight"},{"speaker":"Unknown","startTime":1718.19,"endTime":1722.63,"body":"days in Sweden with zero deaths,"},{"speaker":"Unknown","startTime":1718.19,"endTime":1722.63,"body":"and they have 10 point 2 million"},{"speaker":"Unknown","startTime":1722.63,"endTime":1727.25,"body":"people 9% mass compliance in"},{"speaker":"Unknown","startTime":1722.63,"endTime":1727.25,"body":"that country and only 39% of"},{"speaker":"Unknown","startTime":1727.25,"endTime":1730.64,"body":"their people are vaccinated. So"},{"speaker":"Unknown","startTime":1727.25,"endTime":1730.64,"body":"natural immunity is a real thing"},{"speaker":"Unknown","startTime":1730.64,"endTime":1734.18,"body":"that no one likes to discuss in"},{"speaker":"Unknown","startTime":1730.64,"endTime":1734.18,"body":"the United States as on July 24."},{"speaker":"Unknown","startTime":1734.18,"endTime":1738.23,"body":"We have 108 consecutive days of"},{"speaker":"Unknown","startTime":1734.18,"endTime":1738.23,"body":"under 1000 daily deaths. We've"},{"speaker":"Unknown","startTime":1738.23,"endTime":1742.55,"body":"had 44 consecutive days of under"},{"speaker":"Unknown","startTime":1738.23,"endTime":1742.55,"body":"500 deaths, and this is a nation"},{"speaker":"Unknown","startTime":1742.55,"endTime":1748.01,"body":"the size of 329 million people."},{"speaker":"Unknown","startTime":1742.55,"endTime":1748.01,"body":"Lastly, not sure where this pan"},{"speaker":"Unknown","startTime":1748.01,"endTime":1751.1,"body":"is coming from with Delton. I"},{"speaker":"Unknown","startTime":1748.01,"endTime":1751.1,"body":"think the most telling thing is"},{"speaker":"Unknown","startTime":1751.25,"endTime":1754.76,"body":"even in Israel and the UK, which"},{"speaker":"Unknown","startTime":1751.25,"endTime":1754.76,"body":"is a highly vaccinated place."},{"speaker":"Unknown","startTime":1755.36,"endTime":1758.18,"body":"Both of those are the Delta"},{"speaker":"Unknown","startTime":1755.36,"endTime":1758.18,"body":"variant death at transmission"},{"speaker":"Unknown","startTime":1758.18,"endTime":1762.89,"body":"date case fatality is point 1%"},{"speaker":"Unknown","startTime":1758.18,"endTime":1762.89,"body":"in Israel is point 2%. So they"},{"speaker":"Unknown","startTime":1762.89,"endTime":1766.16,"body":"may have breakthrough cases but"},{"speaker":"Unknown","startTime":1762.89,"endTime":1766.16,"body":"the death line is not coupled"},{"speaker":"Unknown","startTime":1766.16,"endTime":1768.8,"body":"with the infection rates. And"},{"speaker":"Unknown","startTime":1766.16,"endTime":1768.8,"body":"finally, the daily death rate"},{"speaker":"Unknown","startTime":1769.28,"endTime":1772.67,"body":"has dropped 89% since January."},{"speaker":"Unknown","startTime":1769.28,"endTime":1772.67,"body":"And before I get out here today,"},{"speaker":"Unknown","startTime":1772.67,"endTime":1775.67,"body":"a big shout out to all the"},{"speaker":"Unknown","startTime":1772.67,"endTime":1775.67,"body":"people in Denver area who are"},{"speaker":"Unknown","startTime":1775.67,"endTime":1779.57,"body":"listening to dition dirt"},{"speaker":"Unknown","startTime":1775.67,"endTime":1779.57,"body":"appreciate you guys listening"},{"speaker":"Unknown","startTime":1779.6,"endTime":1783.02,"body":"over in the Mile High City and"},{"speaker":"Unknown","startTime":1779.6,"endTime":1783.02,"body":"we hope that Joe will continue"},{"speaker":"Unknown","startTime":1783.02,"endTime":1785.33,"body":"to do so hope everybody has a"},{"speaker":"Unknown","startTime":1783.02,"endTime":1785.33,"body":"wonderful weekend and we will"},{"speaker":"Unknown","startTime":1785.33,"endTime":1786.2,"body":"talk to you real soon."}]}