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hey everyone I'm John Schink from Deerwood Realty and I have a story for you tonight that's kind of sad and I want to go over it because a lot of people say that real estate agents are in it for the money and real estate agents are terrible and all that stuff and you know I'm I'm I hear it all the time and uh in my business I've always tried to look out for my clients first and um that's led me to some spaces that are kind of uncomfortable um for instance I had this lady one time was on meth it's like she wanted to buy a house and she was just a mess and uh I just I just it was it was terrible so I was I said no I don't think I don't think I'm going be able to help you on that one um and then you know with younger people I always try and talked talked to him about the mortgage lenders not that they're bad but some lenders often tell you you can buy a house that's much more than you can really afford uh it's right at the max of your creditability and that just makes things really really tough for when you um when you actually get the house because all of a sudden all your money is going into a payment now what's happened here in the last you know three years is home prices have raised like like by 40% 50% some places I mean the average medium price a home is is in the $400,000 range right now in the United States and so it's been very very difficult um if you're me uh to go through this with your with your buyers uh you know I don't mind I don't mind getting a good value in the market but when my buyers are stuck um bidding up houses you know 20,000 30,000 40,000 and not even getting the house um you know it it wasn't it wasn't where I was very comfortable uh and so let's get into this story here and we'll just go through it I got this off of Twitter um and I don't know if this was in Canada or the United States so uh just keep that in mind and so let me just let me just read it off it says one bad financial cision the stress is constant now not sure what to do okay it says me and my wife needed a bigger place than our two-bedroom rented apartment as we were working from home and also expecting our first child which just to interject is very very common right you're you're getting a bigger uh you're you're growing your fa family and you need more space so there was there's nothing wrong with that that sentiment so we bought our first home in March of 2022 when the market was at its peak we didn't really know what we were getting into in terms of being homeowners the added expense that uh that don't have to worry about is renters uh we qualified for the mortgage through a top four Bank we put our minimal Savings in the down payment and had no real cash on hand and so again again this isn't unusual it's not it's not good like like I always try to work with my buyers you know and and that's like so some of the things some of the red flags right here was we didn't know what we were getting into in terms of being homeowners there's um there is actually a fear out there uh amongst people to show other people that they don't know what they're doing right you know so it wouldn't be unusual for for a couple to not tell me all the information that I would need to help them through a home purchase uh they would be maybe uncomfortable even asking about uh escrow money um you know uh insurance and stuff like that it's they don't want you know maybe if there's not a high enough trust level there they don't want you know they don't want to get taken advantage of so they they possibly don't tell you everything that you uh would like to know to help them uh so then it says since then everything has been tight groceries eating out vacation we try to save in any in everything but we save nothing because of the high mortgage and increased cost of living in general so basically they have the mortgage payment that's ridiculous and then inflation has gone up so they you know they have less money for food and every other thing says with babies starting to go to daycare now and the house needing a new furnace I'm not sure where the money will come from we can't sell the house and go back to renting because we were about $100,000 underwater with the house price since interest rates have risen one bad financial decision and our lives are consumed by constant stress nothing feels good anymore and so this is very this is very you know awful right um this is not what you you it's not what you want in a uh in a story certainly as a real estate agent I don't want to have put these people in this situation but I did want to I did want to look at a few things here it says um with baby starting to to daycare now and houseing a new furnace I'm not sure where the money will come from and I'm a little bit I'm a little bit surprised that they bought a house in 2022 and they were not aware that the sewer or that the uh that the furnace might need to be replaced and you know the furnace the air conditioner those are things it's like you can't I mean if they go out you can't really do anything I mean you're going to have to get something right like during the middle of winter and if this is in Canada during the middle of winter you're not going to be able to go without heat so that's that's strange you know often times when we do um a home inspection here in St Louis which I think you can pretty much get a home inspection at any point in time I don't I mean you can write in the offer that it's contingent on inspections or maybe if the Market's been hot like it has like you you it's not contingent on inspections but you're still allowed to have as many as you want so that you know exactly what you're getting into and so um I'm a little surprised so here what would happen is we do the inspection and then they kind of the inspector kind of lists off the things that you need to be looking at in the future so for instance if a furnace is like 20 years old hey maybe you're might want to start budgeting for a new furnace but there's nothing there's nothing wrong with what they did and that's something that I wanted to convey um most people make housing decisions when something is going on you know what we call like life life situations so the birth of a child someone's passing um a divorce a marriage like there's these reasons why people buy houses and they tend to buy them in certain things you know if someone gets a great job offer or if somebody gets a new job or raise or something that that's also another idea that they they may go out and buy a house but there's always kind of something that that uh that that causes the purchase right a real reason and so in this case I think I think people could probably dunk on these people for saying you know hey we we made a mistake and and you know how could you be so dumb but I don't think that's the I don't think that's the way I see this I see this as um people that were trying to do the right thing and um it's it's it's cost them now it says one bad financial decision in our lives are consumed by constant stress nothing feels good anymore having owned a small business now for for years I'm used to the constant stress and and I and I I feel like I can relate um I the only like the argument that I see people would make was well you should have bought a smaller house right or you should have bought a less expensive house and as if that was that would solve this problem at least in the United States I mean we're seeing starter Homes North of $200,000 and right now the current mortgage rate is over 8% on a 30-year fixed so so you know it doesn't make sense uh to to you know you could say buy a smaller house but I mean the reality isn't really that that that you've got a good situation right now that the Market's not very good now if this is um I mean they've got they've got them M El in a buy and you say well John how are they going to work it out well I'm not exactly sure how they're going to work this one out um what happened in 2007 2008 is people said take the keys they just go to the bank and say I'm not I'm not interested I'm not interested in this in this amount and I've been told that everyone has good mortgages now and we have tighter lending standards and so these types of things won't happen right if the house price goes down $200,000 and people are hurting on their payments they're not just going to give their keys to the bank they're not going to do it this time although they were doing it in 2008 I I mean I'm I'm just I'm just going through what I saw in the real estate market at that time so there's a possibility honestly I mean they're they're so you know upset about it now watch this here's the slimy thing that I saw people do in 2008 and uh I I I would see that these people would do the same thing and and and it's it's quite simply what you need to do right now is go and as long as your credit's still good make an application for a rental if you think that's the best thing to do okay and then get the rental get your stuff all moved in and then there you go the house is gone give it to the bank and you may say well that's not right that's not fair these people took out this loan and they need to they need to pay their loans I I get that I I really do I understand that um but I also understand that these people are in a spot where they can't really maneuver and and they're in a bad situation and that's entirely what bankruptcy laws and things of that nature were were for originally uh so I know that doesn't sound like a a nice thing right and you know here's the other thing they could hold on to the house and hope to refinance at a later date I don't know that that's going to I don't know that that's going to work but I don't want to I don't want to frighten would be firsttime home buyers I I would say we need to do you know you need to kind of come up with a good plan and that tends to involve uh having Savings in case you did lose a job uh in case some something did happen um that would be one thing uh so yeah yeah I I don't like and this whole my whole Channel everything that I do I don't like the highly polished perfect image of real real estate agents uh you know the perfect you know button- down suits and we're living in these hot areas and all I I don't like that I think that real estate is real I think that you know you can get yourself in a lot of trouble in a lot of different ways and the whole goal of my channel is to kind of try and help and just point this stuff out uh so that maybe you won't I mean if you find an agent that's horrible right it's like your cousin or something or you know and they they don't know what they're doing and you go with them for that reason and you get into this situation now you've got family problems um you hate your cousin you know it's it just gets it just gets to be a mess uh so my goal I know these aren't the most highly edited videos and I and I get that people want to believe in this in this image of of a real estate agent and things of that nature um but you know this is this is one of those problems this is one of those things that uh you might have to watch out for with that I'm going to head on out if you uh if you if you did if you did enjoy this episode would you please uh hit the uh subscribe button I'm at like 197 I think or 196 and I'd really like to get to 200 subscribers uh make it' make my day other than that I'm going to head on out thank you for watching thank you for listening and I'll catch you on the next one