Episode 6 - What It REALLY Takes to Buy a Home Right Now

Home prices are up. Inventory is down. And if you’re not paying cash, you’re likely getting beat.

In this episode of EnRich Your Life, Rich talks with top Westchester realtor Ann Marie Damashek about how buyers can stay competitive in one of the toughest housing markets in decades. They cover financing strategy, inspection traps, how to prep before you even look at listings, and why some buyers are losing out over and over again.

If you’re buying your first home, or trying to downsize without getting stuck, this is the real talk you need.

Chapter Markers:
00:43 Meet Ann Marie Damashek: Real Estate Expert
03:02 First Steps for Homebuyers
03:27 Financial Considerations and Pre-Approval
07:54 Common Homebuying Mistakes to Avoid
08:39 The Importance of Working with a Realtor
10:32 Navigating the Competitive Housing Market
13:16 Understanding Home Inspections and Radon
17:06 Choosing the Right Neighborhood and Schools
19:57 Competing with Cash Offers
31:56 Final Advice and Contact Information

Want to know more about our Guest?
Ann Marie Damashek, GRI, CBR, SRES, PSA
Licensed Associate Real Estate Broker

• Five Star Real Estate Agent, Westchester Magazine 2014-2024
• Real Estate All Stars, Westchester Magazine 2022-2025

Contact:
140 Larchmont Avenue
Larchmont, NY 10538
m: 917.623.0624
e: annmarie.damashek@compass.com
www.ampmrealestate.com

Filmed and recorded at Studio on the Avenue/LMC Media
Mamaroneck, NY
https://lmcmedia.org/
Produced and Edited by Vekterly
https://www.vekterly.com/

Disclaimer: This podcast is for informational and educational purposes only and should not be considered as financial advice, a recommendation for any specific investment, strategy, or financial decision, or legal advice. By engaging with this material, you acknowledge and agree with its intended purpose. Any examples provided are hypothetical and for illustration purposes only. Neither Rich Leimgruber, the EnRich Your Life Podcast, nor its representatives are advising or suggesting any specific action or decision. Before making any financial, legal, or tax decisions, individuals should consult their own financial advisor, accountant, legal professional, or other qualified professional before making financial decisions. All opinions expressed are those of the host and guests and do not reflect the views of any affiliated financial institutions. The views shared may not be suitable for every individual or situation. Past performance is not indicative of future results, and all investments carry risk. Please note that any strategies discussed may not be suitable for all investors, and the appropriateness of any specific investment or strategy will depend on individual circumstances.

Chapters

• 0:43 Meet Ann Marie Damashek: Real Estate Expert
• 3:02 First Steps for Homebuyers
• 3:27 Financial Considerations and Pre-Approval
• 7:54 Common Home buying Mistakes to Avoid
• 8:39 The Importance of Working with a Realtor
• 10:32 Navigating the Competitive Housing Market
• 13:16 Understanding Home Inspections and Radon
• 17:06 Choosing the Right Neighborhood and Schools
• 19:57 Competing with Cash Offers
• 31:56 Final Advice and Contact Information

Transcript

Episode 6 - What It REALLY Takes to Buy a Home Right Now

[00:00:00] Intro: Welcome to enrich your life where financial wisdom meets everyday life hosted by Richard Leimgruber, a financial advisor with over 25 years of experience. This podcast brings you powerful insights to make smart choices and build your financial future. Get ready to dive into practical strategies to grow, protect, and shape your financial story one podcast at a time.

[00:00:26] Rich L: Hello, and welcome to EnRich Your Life Podcast. I'm your host, Richard Leimgruber, and here on EnRich Your Life podcast, we discuss everyday financial strategies that can help you improve your life in the most basic sense of conversation.

[00:00:43] Today I'm happy to introduce Ann Marie Damashek. Ann Marie is an associate real estate broker with Compass Realty, serving the needs of Westchester County homebuyers since 2008, or for over 17 years.

[00:00:56] With a deep passion for helping people. And a genuine love for [00:01:00] the industry. Ann Marie has become a trusted advisor to countless clients helping them buy their right home She prides herself on the extensive knowledge of the local markets with her appreciation for Westchester county's unique charm and has been honored as five star real estate agent for 10 consecutive years.

[00:01:19] Wow Congratulations, and thank you for joining us today. 

[00:01:22] Ann Marie: My pleasure. Thank you for having me. 

[00:01:23] Rich L: Yeah, absolutely so you know, on this podcast, we'd love to talk to professionals like yourself about different topics that come up in everyday lives. And, here in Westchester, as we probably know, there's a lot of people looking to buy a home.

[00:01:39] So I thought it would be a great topic of conversation to have some with somebody like yourself about I want to buy a home. Now, what do I need to do? I guess I'll start out by just asking, how do you get into the business? Um, tell me what you love about it. And, we can start off there.

[00:01:55] Ann Marie: How I got into the business is actually it's a short but interesting story. [00:02:00] So, In 2003, I had gotten laid off from my corporate job and I decided to start my own business. And the business was selling things for people on eBay. Eventually, after, I don't know how many years of doing the eBay business, and it was a great business, it had a great run, I decided to get my real estate license.

[00:02:19] And I got my license in 2008, right before the market tanked. And so I was able to do real estate and wind down my eBay business at the same time so it was actually a good transition and then once the market picked up then I jumped all in and Selling real estate full time and I closed down my my other business, but it was a good segue and in some way shape or form I've always been in sales in some way.

[00:02:46] Yeah, although I don't really consider myself a salesperson per se but according to the state That's what I am But I consider myself, you know kind of a guide through the process and a customer service [00:03:00] Advocate for buyers and sellers 

[00:03:02] Rich L: So let's uh, let's jump at this some conversation we're a young couple or we have somebody who's looking to maybe even downgrade from a big house What do you think those people who are thinking about, uh, buying a different house or buying their first house, what are the first steps that they should take a look at?

[00:03:20] Is it going on to the, you know, MLS listings? Is it like finding out about finances? I'll let you answer. 

[00:03:27] Ann Marie: The first place they should really start is with a financial advisor, whether it be their financial advisor like you or speaking to a mortgage broker, because everybody needs to decide how much they can afford.

[00:03:39] and what payment that they're comfortable with. And for, it's a, it's a different conversation with a first time homebuyer versus somebody who's downsizing into something smaller. Um, sometimes the people that are downsizing don't have to sell in order to buy. And that's a great position for them to be in, but for the most part, most people do need financing, and [00:04:00] they need to understand what kind of a monthly payment they're comfortable with, and that's where they should speak to both their financial advisor and, or a mortgage broker.

[00:04:09] to determine what they're comfortable with. Quite often people are more, will qualify for a lot more than they're comfortable paying. And that's actually a good thing in many ways. Um, but. They want to be comfortable with their payment, and that's why they need to speak to a, uh, a finance expert. That's their niche within the industry.

[00:04:31] Rich L: Yeah, and the reason why I brought that question up is because you're right. Uh, a lot of times, somebody might come to me, and they might tell me that they're interested in buying a house, and one of the common things that I hear from somebody who's gone through that process is, you know what, Rich? I, I've I bought this house, but now I really can't do much because I'm what they call house poor, right?

[00:04:51] So they were able to get into their house. They were able to afford it But now they didn't realize the maintenance that's involved the real estate taxes that are going to go up every year And the insurance that's [00:05:00] probably going to go up every year and before you know it They're living in their house, but they can't really do much.

[00:05:04] So part of what I do is to put somebody that comes to me through a process of like, Okay, let's take a look at your budget and your cash flow, what you're doing today with your income and your expenditures, and then vice versa, change that. To okay. Now you own your house. Here's your mortgage payment estimated.

[00:05:23] Of course. Here's your Insurance your real estate and then the maintenance and in addition to that Everybody should always have a significant cash reserve if they're now owning a house because all the maintenance is on them, right? So if the hot water heater goes out They're going to need to replace that and you're not going to be able to call a landlord to tell them that to replace it because guess what?

[00:05:41] You're the landlord, right? Correct. Yeah 

[00:05:44] Ann Marie: No, and that actually is a very big component of being a homeowner Is the The expenses to maintain and run a home and whether it be everything from mowing the lawn to, you know, repairing the water heater, replacing the water heater, [00:06:00] everything, changing a light bulb, frankly, you know, these all, all these things add up and some people, and it's rare, but sometimes I'm having a conversation with people and I think to, in the back of my mind, these people should not be homeowners.

[00:06:14] No. And it's rare though, but it does happen. Right. But ultimately, you know, I have to do with what my clients want me to do, and if they want to buy a house, they're going to buy a house. 

[00:06:23] Rich L: What about, um, pre approval letters? A lot of times , somebody who's interested in looking to buy a house will be told that they need a pre approval letter in order to start looking at, like, open houses, right?

[00:06:34] Is that something that somebody should inquire about doing before even coming to you? 

[00:06:38] Ann Marie: They should either start with a realtor or start with a lender. The lender is going to, you know, qualify them for what they, they can afford. The realtor, sometimes if they start with a realtor, they're kind of putting the cart before the horse.

[00:06:51] But the realtor will ultimately guide them, because the realtor doesn't want to spend time with somebody not knowing if they're shopping at the right price point. And it is a very [00:07:00] important thing. I mean, there's three different types of pre approvals. There's a pre qualification, there's a pre approval, and then there's a full blown underwritten commitment letter.

[00:07:08] Most people start with a pre approval, which the lender has verified assets, income. And credit score. 

[00:07:15] Rich L: And that pre-approval letter does not guarantee that they would be approved for a mortgage. Correct. I think that's what it is. 

[00:07:20] Ann Marie: That's right. 

[00:07:21] Correct. And then that's the next step, which is the Full blown underwritten commitment for the bank that yes, we are lending these people this money and that's a much more, you know intensive process 

[00:07:30] Rich L: Yeah, and that's that's something that you hear often about somebody you they had a failed closing, right?

[00:07:36] like oh, yeah, I was selling my house and we got to the closing table and somehow they weren't able to get that more very 

[00:07:42] Ann Marie: rare that it happens. 

[00:07:43] Rich L: Okay 

[00:07:44] Ann Marie: but it does happen and it's usually because the buyer has done something that they shouldn't have done like gonna bought a car two days before closing Or, you know, something along those lines.

[00:07:54] Rich L: What are some of the common missteps or mistakes that a first time [00:08:00] homebuyer should kind of avoid? 

[00:08:01] Ann Marie: Well, they should not, uh, have any large expenditure. A lot of people want to go out and buy furniture. They're excited about their new home and they buy, and I'm like, hold off, wait till you've actually closed.

[00:08:12] And then you can go and buy furniture or anything expensive. So, changing jobs is a no no. Um, particularly if you're changing within, or into a different industry. You know, the lenders want to see consistency. 

[00:08:25] Rich L: And then, as far as, , Working with a realtor, not working with a realtor

[00:08:29] sometimes you hear somebody say, Oh, I'm going to, I'm going to just go out there on my own. And I've always said you need to work with a professional. You need to have somebody representing you. Can you give us some reasons why somebody might want to hire a realtor to help them find a home? 

[00:08:43] Ann Marie: Absolutely. Uh, the, probably the most important thing is when you hire a real estate agent, they are working.

[00:08:49] As your advocate, they, you, you are a fiduciary to them and everything you are doing for them is in their interests. And frankly, in such a competitive market that we're in [00:09:00] right now, anybody that's trying to go it alone is going to fail. Because the, if they're submitting offers to a listing agent, That agent is not going to want to take that on because they're not assured that that person has the capability to get all the way to the closing table.

[00:09:17] Rich L: Oh, okay. 

[00:09:17] Ann Marie: So it's a really important thing to be working with an agent that is known in the industry, that has a good rapport and a good reputation, that when they submit an offer on behalf of their clients that the other agent says, yes, I know this person, I know that they're qualified. Um, and we'll only be dealing with clients that will get to the closing table.

[00:09:40] Rich L: And as far as credit, right, we, we know that credit's important when you're looking for a house. How does that play into the home buying process and what steps can buyers take to improve their credit before applying for a mortgage? 

[00:09:54] Ann Marie: They're, they should work with, uh, I have a great credit repair company that I work [00:10:00] with and their focus is solely on helping people improve their credit for home purchase.

[00:10:06] Um, so if people are credit challenged, that's a good place to start. Right. Um, but ultimate, people typically that have at least a 700 credit score are in good shape. If you're anything less than that, it's ultimately going to cost you more because that's going to affect your interest rate that you get.

[00:10:22] So, you know, having good credit is very important and the higher your credit, you know, the number one, the easier it will be for you to get a mortgage and the better the rate you'll get. 

[00:10:31] Rich L: Yeah. And as far as helping clients navigate, uh, the competitive housing market you just mentioned, what are some of the things that you help your clients with to hopefully get that highest bid without going too high, right?

[00:10:47] What, I mean, how do you, how do you help them understand? where they should be when they're putting an offer in, I guess. Well, 

[00:10:54] Ann Marie: I provide everybody with a comparative market analysis on anything that they're interested in making an offer on. And [00:11:00] basically, we look back anywhere from six months to a year, because ultimately that's what an appraiser is going to do.

[00:11:05] Bank's going to hire an independent appraiser to prepare a report for the bank supporting the price that the, um, buyer is, uh, paying. 

[00:11:15] And that's, so that's step one, but there's a lot more that goes into it. It's quite often in this market, because it is so competitive, we're notified. Um, a few days after we show a property that there have been multiple offers and the listing agent will typically call for what we call a highest and best or best and final deadline, meaning submit all of your offers by this date, this time.

[00:11:37] And part of what they're looking for in that offer is not only what price are they paying, but what contingencies are in the contract or in the offer. And typically it's that it has a satisfactory inspection that it appraises at the price that the. buyer is offering, and that they obtain their mortgage.

[00:11:55] But there are a lot of people that will waive some or all of those [00:12:00] contingencies because they are so desperate to find a home. And having your team lined up behind you, having your attorney in place, having your home inspector in place, all of these things tell the other agent that these people have their ducks in a row.

[00:12:14] They are going to perform. That's the word we use, that they are going to perform. 

[00:12:18] Rich L: And are those the types of things, obviously, since you're mentioning it, that you're going to say, hey, do you have your, do you have your home inspector? If not, I can help you with that. 

[00:12:26] Ann Marie: Yeah, absolutely. I have a list of service providers, from lenders to home inspectors to, um, you know, attorneys to, septic inspectors to pool inspectors, whatever kind of, uh, inspectors people need.

[00:12:40] I have a whole list of people that I can rely on being prepared. 

[00:12:44] Rich L: Right. And that's why you want to work with a realtor, right? Because obviously you, you're, you do this all day long. You know exactly what to expect. You can explain it to, to your clients and why certain things are happening. 

[00:12:56] Ann Marie: Correct. And it is very, Local and people often [00:13:00] say, Oh, you know, this happened or that happened when my sister, my brother and my friend bought a house. But if it's a different market, if it's a different location, it's a totally different experience. And every buyer is unique. So what what was good for somebody else isn't necessarily good for the next person.

[00:13:16] Rich L: And as far as you know, going through, the inspection. A lot of times, if I was a seller, We want to make sure that the house is great, right? And everything is up to date, but sometimes they always try to hide things, right? Like, you know, don't look over there. Let me introduce you to over here.

[00:13:38] Somebody looking to buy a house. What? What are some of the key areas that you say? Make sure you're honing on these things, right? So, you know, Is it,

[00:13:48] is it the appliances in the kitchen, should they be concerned that the appliances might be a little outdated, um, or if they have some sort of a warranty on those appliances, or is it the hot water heaters, what's the biggest thing that [00:14:00] you, it would, it would be very costly if they didn't pay attention to those things, and then all of a sudden something happens, 

[00:14:05] Ann Marie: most buyers are concerned with the systems of the house, the high ticket items, a roof, an HVAC system, a boiler, air conditioning, um, any kind of big ticket items are really what scares people. Kitchens and bathrooms, they can be expensive, but they seem to be a little bit more palatable for most people to take on.

[00:14:27] And it's the, and it, particularly with first time homebuyers, it's, it's the mechanics of the house itself that really is overwhelming because they have no clue. They've never dealt with this stuff before. So if those are all in good working order, chances are nobody's going to raise a huge eyebrow.

[00:14:44] Rich L: And if something wasn't in working order, the options are either going to be, have the homeowner who currently owns the home fix it, or you fix it and then get a credit at closing, I believe, right? What do you typically recommend? 

[00:14:58] Ann Marie: Yeah, there's different ways. [00:15:00] Frankly, in this market, sellers are very unwilling to address just about anything.

[00:15:04] Rich L: Really? 

[00:15:05] Ann Marie: Because they don't have to. Because they have nine other buyers lined up behind them. that may be willing to accept it as is. Um, and I, I tell my buyers going into this, a home inspection is not meant as a means to renegotiate the price that you've already offered and has been accepted, but it's meant for you to understand that the house is what you think it is.

[00:15:25] And, you know, if there are egregious things that come up, that there's no way anybody could have known just by looking at the house, that's a different conversation. Okay. Basically, it's just meant as a way for people to understand that the house is what they think it is. And there, there are things to look out for, but usually that's what I'm there when I'm showing a house.

[00:15:44] You know, I'm, they're, they're enamored by the aesthetic of the house. And I'm looking at things like how old is the water heater? You know, this is, does this boiler look old? How does that roof look? So I'm there to kind of, you know, focus on the things that they may not be looking [00:16:00] at. 

[00:16:00] Rich L: Right. Kind of point out, right? Right foundation. Foundation issues. Is there any cracks in the foundation? One of the things that I hear all the time, uh, for clients is what is radon and why, why do we have to test for it? Like, is that really needed? It is needed. Can you talk a little bit about that? 

[00:16:15] Ann Marie: Yeah, sure. Radon is an invisible gas that's cancer causing.

[00:16:18] Um, but frankly, it's a very easy fix. Okay. It exists mostly in foundations or homes that are built on rock, but frankly, it can exist anywhere. It can exist in one home and not the home next door. So it is something you want to test for because you can't see it, you can't smell it, it's just there and it's dangerous.

[00:16:37] But it's about a $1,500 fix. They put in a system in a basement and it draws fresh air in and it, you know, monitors the radon level on a constant basis. So it's not, it's scary on the surface, but when you really understand it, it's not quite as scary. 

[00:16:55] Rich L: And, and when, when somebody comes in and they're looking to buy a home, [00:17:00] what's the biggest piece of advice that you can give somebody for new, new home purchasers?

[00:17:06] Uh, when they're looking for homes, maybe they don't know where they want to look. They, should I move to my Mamaroneck? Should I move to New Rochelle? Should I move to, up, up to Somers? How do you help guide those, those who are really just starting out? 

[00:17:18] Ann Marie: I tell people quite often in this part of Westchester.

[00:17:22] The commute is an important thing. How long is it going to take me to get into the city? So, if people have, you know, I want to spend no more than an hour commuting, I tell them that you usually want to be, like, south of 287, because that's usually about a door to door, one hour commute, depending on where you're going into Manhattan.

[00:17:38] Um, and it really depends on what, you know, they're looking for. For some people, it's all about schools. Now, interestingly enough, as a real estate agent, we are not allowed to advise on schools. We're, it, it's, the state says it's against the law, we can give them facts, this is a blue ribbon school, that kind of thing.

[00:17:56] But we cannot give opinions, and frankly, and I tell my clients this all this [00:18:00] time, you have to determine whether or not a school district is right for you, because what's good for one child isn't necessarily good for the next child. And I encourage them to speak to school districts and, you know, look at resources.

[00:18:12] Like greatschools.org or niche.com that provide all of the information on schools that we are not allowed to give out, which is actually it's counterintuitive to what we do, but that's the law. So we have to follow it, 

[00:18:24] Rich L: One of the biggest pieces of advice that I had been given from a realtor that I was working with my when my wife and I were buying a house is Don't just go to the house when you set up the appointment.

[00:18:37] Go by the house during rush hour. Go by the house on a Saturday. And one of the things that happened to my wife and I is that we were going to the house on the weekend and right behind the house was a high school. And they were having a big football game. And all you heard was whistles and people chatting and screaming.

[00:18:59] And we were [00:19:00] like, Oh, this might not be where we want to be on a Saturday afternoon swimming in our pool with a football game going on right behind us. Right. So do you typically advise to do something like that as well? 

[00:19:10] Ann Marie: And my clients, you know, the, the other thing that we're not allowed to speak to, is this a quote, good neighborhood.

[00:19:14] Rich L: Right. 

[00:19:15] Ann Marie: And, you know, people have to determine for themselves if the neighborhood is any place they want to live. And I tell my people, if you're not familiar with the neighborhood, come at night, park your car, roll down your windows, listen, watch. If you like what you see, maybe it's the right place for you. If you don't. Look elsewhere, 

[00:19:34] Rich L: So don't just pay attention to , the look of the house and, and what's inside it.

[00:19:38] Also look around it. Look, 

[00:19:39] Ann Marie: look. Right. Look at the neighborhood. 

[00:19:41] Rich L: Yeah, exactly. Look at the neighborhood because it's a big purchase. Right. And it's not something that you could just, once you're in it, you can't turn around the next day and say, I don't like it. Let's move. Right. Exactly. Exactly 

[00:19:50] Ann Marie: right. It's the biggest financial purchase most people will make in their lifetime.

[00:19:53] Rich L: In their lives. Right? Exactly. The other question that comes up for me. Is, you know, Rich, I put, this is [00:20:00] the fifth offer we've put in on a house and somebody comes in the last minute with cash and it's just not fair, right? What do you recommend when somebody's dealing with that type of situation where every time they now put in seven qualified offers and each time they're outbid or they come in with a cash offer?

[00:20:19] What do you typically recommend? 

[00:20:21] Ann Marie: I love this question. 

[00:20:22] Rich L: Okay, good. 

[00:20:22] Ann Marie: Because it is very, very commonplace in the current market. And a surprising number, I think it's 26 percent right now of sales nationwide are cash. Wow. Which is very, very high. So anybody that's financing is asking themselves, how can I compete with that?

[00:20:38] And the answer is they can. Um, and the way to do that is to speak to your lender and see if you can get an underwritten mortgage commitment. And that enables you to waive your mortgage contingency and you come across as good as cash. Because the seller doesn't have to then sit there for the next 30 days wondering, Is this buyer going to get their mortgage?[00:21:00] 

[00:21:00] Because as nervous as the buyers are, the sellers are just as nervous. 

[00:21:03] Rich L: Yeah. 

[00:21:04] Ann Marie: So that's, that's the best piece of advice I've been giving my clients in this current market. And frankly, the ones who listen and talk to their lender about getting through underwriting or the ones who are winning the bids. 

[00:21:17] Rich L: And will a bank actually go through the underwriting process without having a property attached to that loan?

[00:21:23] Yes, they will. 

[00:21:24] Ann Marie: Some lenders will. Some lenders will. Some lenders will. And it's still subject to having a contract of sale and it appraising. 

[00:21:30] Rich L: Right. 

[00:21:30] Ann Marie: Um, but the bank has made the firm commitment that yes, we will lend the money. 

[00:21:34] Rich L: Okay. 

[00:21:35] Ann Marie: And that is the, probably the best piece of advice that I can give. Any of my clients in this current market.

[00:21:40] Yeah. And those who do it right away are successful. And then those who, and quite often in this market, it's not uncommon for just about any agent to have clients losing offers. Um, people usually lose it, lose two, three houses before they wake up and say, Oh. This [00:22:00] is what I need to do. And then they kind of understand what I had been saying since day one.

[00:22:04] You really need to speak to your lender about getting through underwriting. 

[00:22:07] Rich L: Right, so it's really about putting all your ducks in a row. 

[00:22:11] Ann Marie: And that's the phrase I use all the time. It's putting all of your ducks in a row. And in this market, because sellers have so many buyers to choose from, they choose the path of least resistance.

[00:22:22] So if you can waive contingencies like your mortgage, Um, appraisal, you know, sometimes I can guide people on that if they're paying something that I'm confident is going to appraise. I will tell them to waive their appraisal contingency and frankly, I tell them to, uh, tell them you're going to do an inspection but just for your own information, meaning I'm not going to nickel and dime you after the fact.

[00:22:47] I'm just going in with eyes wide open and unless a major health or safety issue comes up, we're good with the inspection. 

[00:22:53] 

[00:22:53] Ann Marie: And if you can make it easy for the seller to say yes to you, they will. And every seller is [00:23:00] different. Sometimes it's all about the money for them and who has ever got the most money.

[00:23:03] That's who they're going to go with. But most people typically want the easiest, the cleanest deal. 

[00:23:10] Rich L: Right. And I think that has to be based upon the person selling it as well. Do you kind of allow the person looking at the house? more information about the sellers like, Hey, um, this person is, they're moving because they just got relocated with their job, or maybe this person's lived in this house their whole lives.

[00:23:29] And now they're, they're, they're downsizing and they're moving to Florida to be with their family. Is that information that that could help them determine how 

[00:23:37] Ann Marie: possibly, but as a buyer's agent, we don't always have that information. Okay. But if I'm notified of a highest and best offer situation, I will.

[00:23:45] Usually reach out to the listing agent and ask them what is important to the seller and the offer that they accept. Sometimes maybe they need a longer closing time and if I have a client that can accommodate that, that could go a long way. Sometimes I'm [00:24:00] told they want the best price. Sometimes it's, you know, we need a lease back situation, meaning we need a little, we want to close right away.

[00:24:09] But we need to lease it back for two weeks or three weeks or a month or whatever it is, you know, before the sellers can, the buyers can move in. So every situation is different and you never know unless you ask. 

[00:24:22] Rich L: And what about a personal touch? Writing a letter to the people that you're putting that offer in, do they typically advise to do something like that?

[00:24:30] Ann Marie: It used to be fairly commonplace, but it's, it's kind of frowned on these days because, frankly, it can violate fair housing laws. 

[00:24:37] Rich L: Oh. 

[00:24:37] Ann Marie: Because people often say things about, you know, Oh, I'm from, you know, X, and, you know, I've, and so, or, or I have a family. Family, believe it or not, is a protected class. So if someone uses the word family, In their letter, they have just violated fair housing.

[00:24:53] So if somebody else, if the seller accepts that offer, and then somebody who maybe doesn't have a, quote, family feels [00:25:00] slighted, they would have grounds for litigation. 

[00:25:03] Rich L: Oh, wow. So I didn't even think of that. All you 

[00:25:05] Ann Marie: can, if you're writing those letters, all you can do is talk about how much you love the house and your ability.

[00:25:12] To purchase it. 

[00:25:13] Rich L: Otherwise, you're putting yourself up for a liable. Yes. So 

[00:25:16] Ann Marie: there are a lot of people that will not accept what we call seller love letters. 

[00:25:20] Rich L: Okay. 

[00:25:21] Ann Marie: And it's, it's, it comes down to fair housing. 

[00:25:23] Rich L: Yeah. So that's something I didn't even think about. So that's great. 

[00:25:25] Ann Marie: And it's amazing how many protected classes there are.

[00:25:28] It's very easy to cross that line. 

[00:25:31] Rich L: Right. Well, there's a reason why attorneys usually do very well for themselves, because there's always litigation somewhere, right? 

[00:25:36] Ann Marie: That's true. 

[00:25:37] Rich L: Um, uh, and that leads me to my, my next question, which is finding the right real estate attorney. We often hear about title searches.

[00:25:47] Yes. Um, can you explain what a title search is and why it's important for the purchaser to do that?

[00:25:53] Ann Marie: I mean, the attorney is the one that runs the, uh, you know, hires the title company to run a title search. And really, you're just [00:26:00] looking for chain of ownership to making sure that There are no breaks in that chain of ownership and these people have the legal right to sell and then the title insurance company will insure that.

[00:26:11] But quite often what comes up is things like boundary disputes. Um, a boundary line may be a foot off or six months off. I had one, six inches off. I had one last year where somebody had put up a fence but apparently it was encroaching. Uh, on to the neighbor's property. So I was representing the buyer, so the seller was very proactive and they said, Oh, you know, we didn't realize this.

[00:26:33] No problem. We'll take care of it. But that doesn't, we don't always have sellers that are as amenable. 

[00:26:38] Rich L: Right. Right. 

[00:26:39] Ann Marie: So usually it comes down to boundary disputes is, is why a title search is important, but ultimately they're insuring your title. And if any claim comes down the road, the title insurance company will pay for it.

[00:26:50] And it's a one time. thing. It's not insurance that you pay for every year like most other insurance. 

[00:26:54] Rich L: Right. And does that also include making sure that you have all the permits that you need [00:27:00] and they're all closed? 

[00:27:01] Ann Marie: Not necessarily. Title does not necessarily address permits. I mean, permits are important.

[00:27:06] And that's part of what I do as a buyer's agent is I look at the house visually. And then if I go to the building department and I see, well, there's a, an addition on this house that the town has no knowledge of, then I know that there's an issue with the permit. Because they didn't get a permit. 

[00:27:24] Rich L: And why is that important for the person purchasing the house?

[00:27:28] Ann Marie: Because if they accept it as is, when it's their turn to sell, they have no guarantee that the person they're selling to is going to accept it as is. So, and they could be then forced to legalize something that could cost them a lot of money. 

[00:27:43] Rich L: Right. And that's kind of where I was going to. So it could very well be an in ground pool that they put in their backyard that the town or village didn't know about.

[00:27:54] And then all of a sudden you buy your house and you know, maybe the village comes over to do an inspection and says, [00:28:00] well, that pool wasn't there. And when before you bought this house, you're like, Oh, no, it was there. It was there. But now all of a sudden, well, it's too close to the property line, or you don't have the fence around it.

[00:28:10] You need an eight foot fence to go around it. 

[00:28:12] Ann Marie: Exactly. 

[00:28:12] Rich L: So I think ultimately, and that's something that the realtor does and would probably do for

[00:28:17] Ann Marie: a good realtor should absolutely be checking with the building department to see what is on file. Are there any open permits? Okay. Are there, you know, and then you can kind of determine if there's any obvious missing permits.

[00:28:29] And then you can let your buyer know, like, hey, they never got a permit for this pool. You know, are you okay with that? 

[00:28:36] Rich L: Right. And then the buyer could literally say, well, we'll either fix it or you take it as is and you deal with it. 

[00:28:42] Ann Marie: Right. 

[00:28:42] Rich L: But those are the mistakes that sometimes you're into the house now, six months, you get a knock on a door and they're like, you don't have a permit for this.

[00:28:49] And like, well, it was already here. And they're like, we don't care. 

[00:28:52] Ann Marie: Right. You're responsible for taking care of it. And more and more municipalities are cracking down on that. They're, they're actually perusing listing photos. [00:29:00] And seeing what a house looks like and comparing it to their records, and they are now forcing people to legalize things.

[00:29:06] And a lot of people, you know, skirted getting permits in the, uh, thinking that, you know, I didn't want my taxes to go up. And that's why they were doing it. But now municipalities, I think, are getting wise to that. And cracking down in many ways. 

[00:29:20] Rich L: Have you ever had a situation where you're dealing with a purchaser, or somebody looking to buy a house, and they have good old dad with them, or they have their brother who's an inspector, you know?

[00:29:34] Has that ever backfired on anybody, and would you recommend, you know, somebody other than the buyers come with you when they're looking at houses? 

[00:29:41] Ann Marie: Well, sometimes the parents have a financial interest. 

[00:29:44] Rich L: Okay. 

[00:29:45] Ann Marie: So maybe they're, you know, fronting the down payment or something like that. And then I can understand more of them being there.

[00:29:52] But you know real estate agents kind of joke that parents are the kiss of death But I was out with a couple this past weekend [00:30:00] and the parents were encouraging their kids to buy a house They're like, why aren't you bidding on this? This is a great house and the kids are like, well, I don't know You know, so every situation is different 

[00:30:10] Rich L: so it could actually help and you know, obviously What I was asking for is the detriment, right?

[00:30:15] Like, Oh, I'm always going to bring my dad with me. But the dad is always like, Oh, what's this crack on this brick here? You know, like you don't want, 

[00:30:22] Ann Marie: there's no question. Like dad stay home. There's no question that happens, but no, you can't tell somebody, you know, leave your parents at home. You know, so if the parents want to come, they want to come.

[00:30:33] Rich L: Yeah. I remember when we were looking to buy our house here in Mamaroneck and we would be just driving around the block. 

[00:30:38] Ooh, there's one for sale. There's one for sale. And then we'd be getting on our phones and going to check out the listing. Uh, is there anything that you would recommend to the person listening to this that's saying, 

[00:30:47] yes, we want to buy a house as far as like finding, you know, five or six houses.

[00:30:55] Like, would you recommend they go on an app or where would you recommend they go? 

[00:30:59] Ann Marie: [00:31:00] Ideally, they should be start with an agent. 


[00:31:01] You can look at all the sites under the sun. And, but if you're working with a dedicated agent who is sending you the, these listings, either the moment they come on the market or even before, you're going to be ahead of the game.

[00:31:16] Quite often by the time you see them on third party sites. They're gone. Really? It's, it's that fast of a market. And, you know, I had a client ask me last night about a house that they wanted to see and I said, oh, that had multiple offers last week. And her response was, I'm not surprised because, you know, she knows what the market is like.

[00:31:34] Rich L: Okay. 

[00:31:34] Ann Marie: And so you really should be working with a dedicated agent. You know, all these sites, , they have their own estimates on what things are worth and frankly, they're not accurate because everybody uses their own algorithm. Mm hmm. The only way to know what something is truly worth. is to work with a real estate agent, a local real estate agent.

[00:31:50] Rich L: Yeah. Your house is only worth what somebody's willing to buy it for. Absolutely. Correct. Absolutely. Well, anyway, this has been great. Is there, is there any other piece of advice [00:32:00] that you want to offer to our listeners today about first time home buying or downgrading buying a home? 

[00:32:06] Ann Marie: I mean, the only thing I can say is when you talk to an agent, sit down with them before you start looking at houses, have a conversation, have a plan.

[00:32:15] Because if you do that, you're going to be in a much better position, rather than if you just start by going to see houses. Because then you're asking yourself, well, what do I do next, or how does this work? So but if you have that buyer consultation with an agent up front, they've hopefully answered all of those questions for you, so you kind of know what the process is all about and what to expect.

[00:32:36] Rich L: Yeah, that's great. That's a great piece of advice. I didn't even think of that. You know, before you actually start looking, go talk to a realtor. That's great. Awesome. Well, Ann Marie, how can our listeners find you, you know, do you want to give us your, your website, your, your information?

[00:32:51] Ann Marie: My website is www.ampmrealestate.com. And my, all my contact information is on there as well, but you can [00:33:00] always text call me at 917 623 0624. And my phone is always within arm's reach and I do really answer my phone and respond to text very quickly. 

[00:33:11] Rich L: That's important. That's very important. It is. And thank you so much for joining us today.

[00:33:15] This was a lot of fun. I hope to have you back soon. Yeah, this was great. We can always talk more and get into further details about other fun things. So, thank you so much. Alright, 

[00:33:23] Ann Marie: thank you. 

[00:33:24] Rich L: And thank you for listening to us here on EnRich Your Life, where we talk about everyday financial strategies. as just a follow up, if you have any questions, please feel free to reach us.

[00:33:35] You can email us at hello@enrichlifepodcast.com. I'm always up for talking about additional financial topics. If you if there's something that you want us to talk about, please let us know. We're always looking for suggestions. And You can also find us on Spotify, iHeartRadio, Apple Radio, and even Amazon Music. We're also on [00:34:00] YouTube and, uh, we would love for you to love, uh, like share and obviously make sure that the people that you know and love. Are listening to us as well until next time. Uh, I'm Rich Leimgruber and I just want to say a quick thank you to LMC Media and The Studio here on the Avenue.

[00:34:16] It's a great place, to interview my, my guests. And I'd also like to thank, uh, Vekterly who helps us produce this. Have a wonderful day and we'll talk to you soon.