1 00:00:00,000 --> 00:00:03,840 I have, uh, I found a guilty pleasure the past couple of weeks. 2 00:00:03,900 --> 00:00:07,960 And, um, I really don't even know if I want to admit this because like, 3 00:00:07,960 --> 00:00:09,200 this is a safe place. 4 00:00:09,460 --> 00:00:10,700 This is not a safe place. 5 00:00:10,700 --> 00:00:12,400 This is going to be on the interwebs. 6 00:00:19,080 --> 00:00:19,920 Welcome back. 7 00:00:19,920 --> 00:00:20,560 Welcome back. 8 00:00:20,560 --> 00:00:24,720 Thank you for joining us on our podcast value nation presented by nationwide. 9 00:00:24,780 --> 00:00:29,120 A M C we are going to continue our conversation that we were talking about 10 00:00:29,120 --> 00:00:33,920 part one about basic principles, basic ideas, basic things to do when your 11 00:00:33,920 --> 00:00:35,400 home is being appraised. 12 00:00:35,760 --> 00:00:38,180 So we are going to pick right back up with that conversation. 13 00:00:38,180 --> 00:00:39,240 Charlie, how's it going, man? 14 00:00:40,120 --> 00:00:40,980 Fantastic. 15 00:00:40,980 --> 00:00:41,520 Fantastic. 16 00:00:42,440 --> 00:00:44,720 Oh, you want to talk about basic or recording right now? 17 00:00:44,720 --> 00:00:45,320 This would be perfect. 18 00:00:45,720 --> 00:00:50,980 Um, so I felt like, like a Kardashian, you know, you talk about basic, like, 19 00:00:51,060 --> 00:00:52,360 okay, so it's September, right? 20 00:00:52,960 --> 00:00:55,600 And the commercials just got to me. 21 00:00:55,600 --> 00:00:58,800 Like I finally had to go and have pumpkin spice latte. 22 00:00:59,160 --> 00:01:00,800 I got my first one in yesterday. 23 00:01:00,800 --> 00:01:01,840 It was now granted. 24 00:01:01,840 --> 00:01:02,800 It was a cold brew. 25 00:01:02,800 --> 00:01:08,920 So like I was juiced up ready for it, but it gave me tingles. 26 00:01:08,920 --> 00:01:11,760 Like I'm, I'm ready for fall, bro. 27 00:01:12,040 --> 00:01:13,520 The beginning of September. 28 00:01:13,920 --> 00:01:14,640 I know. 29 00:01:14,800 --> 00:01:18,120 And I swear I was like up and down, like telling my wife. 30 00:01:18,120 --> 00:01:19,320 I'm like, I'm not going to do it. 31 00:01:19,320 --> 00:01:24,280 I'm waiting till October one, just waiting and found myself sitting in 32 00:01:24,280 --> 00:01:26,200 the car waiting for my daughter to finish her training. 33 00:01:26,520 --> 00:01:28,440 And I'm like, Starbucks is right across the street. 34 00:01:29,800 --> 00:01:30,400 And they got me. 35 00:01:30,520 --> 00:01:31,960 They got me on that pumpkin phone. 36 00:01:32,520 --> 00:01:37,040 See, I think I'd be different if I actually enjoyed the taste of pumpkin, but I am, 37 00:01:37,080 --> 00:01:40,960 you know, one of the 2% of Americans, I think in this world, I actually, 38 00:01:40,960 --> 00:01:42,720 I actually legitimately don't like pumpkin. 39 00:01:43,160 --> 00:01:46,720 So I get to be extra on the hate side when it comes to everybody and their 40 00:01:46,720 --> 00:01:50,720 pumpkin meat this time of year, because I don't like, I don't like pumpkin pie. 41 00:01:50,720 --> 00:01:55,800 I don't like pumpkin spice, I'm not, I mean, I like a pumpkin muffin. 42 00:01:55,800 --> 00:02:00,240 Like my family, my stepmom makes incredible, like pumpkin muffins 43 00:02:00,240 --> 00:02:01,640 with cream cheese, topping and all that. 44 00:02:01,640 --> 00:02:02,040 Ooh, yeah. 45 00:02:02,040 --> 00:02:02,480 Oh yeah. 46 00:02:02,480 --> 00:02:04,760 I mean like all, all our homemade stuff. 47 00:02:04,760 --> 00:02:10,960 She, she is one hell of a baker and I mean, I could take maybe a bite of it and I'm 48 00:02:10,960 --> 00:02:14,480 like, yeah, I could kind of see what you people like about this, but no, like no. 49 00:02:14,680 --> 00:02:15,520 Two or three bites. 50 00:02:15,520 --> 00:02:17,240 I'm just like, I can't take this taste anymore. 51 00:02:17,240 --> 00:02:18,960 That cream cheese frosting on top. 52 00:02:18,960 --> 00:02:22,600 The frosting, I will lick the frosting off the top of that. 53 00:02:22,600 --> 00:02:23,320 Changes the game. 54 00:02:23,320 --> 00:02:23,880 Exactly. 55 00:02:24,640 --> 00:02:27,720 But I see, I thought you were rolling different direction with this basic thing. 56 00:02:27,760 --> 00:02:29,640 I have a confession to make as well. 57 00:02:31,360 --> 00:02:37,680 I have, I found a guilty pleasure the past couple of weeks and I really don't 58 00:02:37,680 --> 00:02:40,720 even know if I want to admit this because like this is a safe place. 59 00:02:41,000 --> 00:02:42,200 This is not a safe place. 60 00:02:42,200 --> 00:02:43,720 This is going to be on the interwebs. 61 00:02:44,960 --> 00:02:45,760 Interwebs. 62 00:02:45,760 --> 00:02:47,840 I've watched some episodes of love violence. 63 00:02:47,880 --> 00:02:48,400 I got it. 64 00:02:48,400 --> 00:02:49,400 I got to throw it out there. 65 00:02:49,400 --> 00:02:50,200 No, did you really? 66 00:02:50,200 --> 00:02:50,840 I did. 67 00:02:50,840 --> 00:02:51,360 Man. 68 00:02:51,360 --> 00:02:51,880 Oh. 69 00:02:51,880 --> 00:02:52,880 I don't know. 70 00:02:52,880 --> 00:02:58,160 I don't know what episode I was, but it kind of hooked me, but they show them and 71 00:02:58,200 --> 00:03:01,600 like when they're getting ready, they have like these little eye patch things, right? 72 00:03:02,320 --> 00:03:06,400 Like, cause I mean, as a guy, you know, getting older, you know, I'm worried about 73 00:03:06,400 --> 00:03:08,720 trying to keep the young looking face going. 74 00:03:08,720 --> 00:03:11,760 So I got, you know, like some serums and creams and stuff, but they have these like 75 00:03:11,760 --> 00:03:14,960 eye things that they put on their face and they're like, oh, I'm going to get 76 00:03:14,960 --> 00:03:16,600 these eye things that they put on every morning. 77 00:03:16,600 --> 00:03:18,120 You're supposed to help with the smell in the bags. 78 00:03:18,120 --> 00:03:19,120 The fucking is, yeah. 79 00:03:19,120 --> 00:03:26,400 So I totally did order a box of some and they came today and I had about an hour ago, 80 00:03:26,400 --> 00:03:28,960 right before we started filming to see what it was. 81 00:03:28,960 --> 00:03:31,480 It's like you put them in the fridge for a little bit, get them cold. 82 00:03:31,480 --> 00:03:32,480 They're nice and refreshing. 83 00:03:32,480 --> 00:03:33,480 Like it felt great. 84 00:03:33,680 --> 00:03:36,000 Are they the reusable ones or are they the throw away ones? 85 00:03:36,000 --> 00:03:36,800 They're the throwaways. 86 00:03:36,800 --> 00:03:37,080 Yeah. 87 00:03:37,080 --> 00:03:38,680 I came with like a box of 50 or something. 88 00:03:38,680 --> 00:03:38,960 Yeah. 89 00:03:38,960 --> 00:03:42,720 So look, I mean, yeah, again, this is going to be out there, but hey, two guys that are 90 00:03:42,720 --> 00:03:46,960 traveling and you always got to be, you're on, you're on your game with your suit, with 91 00:03:46,960 --> 00:03:51,600 your hair, the shoes, the face, the, the skin, the moisturizer. 92 00:03:51,600 --> 00:03:52,240 You got to be honest. 93 00:03:52,240 --> 00:03:55,280 You have to have it, especially when you're traveling too, because I mean, it's airplane 94 00:03:55,280 --> 00:03:55,960 straight out. 95 00:03:55,960 --> 00:03:57,440 Do you really, you got to stay on this? 96 00:03:57,440 --> 00:03:57,960 Oh yeah. 97 00:03:58,240 --> 00:03:58,480 Why? 98 00:03:58,480 --> 00:03:59,640 So I'm behind the game here. 99 00:03:59,640 --> 00:04:00,680 So I am behind the game. 100 00:04:00,680 --> 00:04:01,440 100%. 101 00:04:01,440 --> 00:04:02,040 Yes, you are. 102 00:04:02,040 --> 00:04:03,680 But hey, welcome to the club. 103 00:04:04,360 --> 00:04:04,880 Welcome to the club. 104 00:04:04,880 --> 00:04:09,160 This is, I have like an eye cream, you know, that you got to put on, but that's just kind 105 00:04:09,160 --> 00:04:10,480 of, it's paying the vibe. 106 00:04:10,720 --> 00:04:12,560 I'd rather just stick those on. 107 00:04:12,560 --> 00:04:13,080 Yeah. 108 00:04:13,080 --> 00:04:18,200 20 minutes later, you know, you're like, peel them off, throw them in the trash. 109 00:04:18,200 --> 00:04:19,880 Like I'm, I'm a new man. 110 00:04:20,400 --> 00:04:24,480 This is a, this is a great way for people to see, you know, behind the 111 00:04:24,480 --> 00:04:26,120 curtain of the traveling salesman. 112 00:04:26,680 --> 00:04:27,600 Oh gosh. 113 00:04:27,800 --> 00:04:28,760 We're putting it all out there. 114 00:04:28,880 --> 00:04:31,080 I mean, maybe, maybe we can get a sponsor. 115 00:04:31,880 --> 00:04:32,760 One big thing. 116 00:04:33,080 --> 00:04:37,520 Uh, it just, I just feel like it needs to be said, but stay out of the way. 117 00:04:38,400 --> 00:04:41,840 Like let the guy do his, or girl do it, do the thing. 118 00:04:41,840 --> 00:04:43,920 Um, they'll be there for 15 or 20 minutes. 119 00:04:44,600 --> 00:04:46,720 You know, big point right there. 120 00:04:46,720 --> 00:04:47,320 We're coming back. 121 00:04:47,320 --> 00:04:48,760 Finish, finish what you're saying. 122 00:04:48,760 --> 00:04:49,360 We're coming back. 123 00:04:49,920 --> 00:04:51,280 Just stay out, you know, just stay out of the way. 124 00:04:51,280 --> 00:04:53,480 You don't want to be in the guys in their ear. 125 00:04:53,680 --> 00:04:59,720 Um, you want them to, you want them to get out of your way just as much as. 126 00:05:00,520 --> 00:05:01,160 The other way around. 127 00:05:01,400 --> 00:05:04,040 So, um, but yeah, go, go with your thoughts. 128 00:05:04,080 --> 00:05:04,280 Yeah. 129 00:05:04,280 --> 00:05:08,360 15 to 20 minutes, typically, um, most of the time comes with writing the report. 130 00:05:09,200 --> 00:05:11,320 Uh, but yeah, it's literally just walk and click. 131 00:05:11,320 --> 00:05:12,520 Walk and click, walk and click. 132 00:05:12,800 --> 00:05:14,720 That's a huge misconception though. 133 00:05:14,760 --> 00:05:16,600 That's a big, big misconception. 134 00:05:16,600 --> 00:05:17,560 I get that. 135 00:05:18,480 --> 00:05:24,560 Um, I get as being, you know, obviously what we are middle man between the, the 136 00:05:24,720 --> 00:05:30,120 in the transaction, I get a lot of complaints saying the appraiser just 137 00:05:30,440 --> 00:05:32,000 mailed it in on my inspection. 138 00:05:32,000 --> 00:05:35,440 They were barely at my house, maybe 15 minutes, 20 minutes. 139 00:05:35,440 --> 00:05:36,800 Like they didn't even look at my home. 140 00:05:36,800 --> 00:05:37,640 They were in and out. 141 00:05:38,200 --> 00:05:38,880 Bang bang. 142 00:05:39,240 --> 00:05:40,640 I'm not, I'm not happy with this. 143 00:05:40,640 --> 00:05:41,840 I want a new appraiser to come out. 144 00:05:42,280 --> 00:05:47,200 No, um, that is about the time it takes, depending on the size of your home. 145 00:05:47,520 --> 00:05:48,280 No Karen. 146 00:05:48,560 --> 00:05:49,720 That is official. 147 00:05:49,720 --> 00:05:50,920 Hey, hey, hey. 148 00:05:50,920 --> 00:05:51,200 What? 149 00:05:51,360 --> 00:05:52,680 Hey, did I say that on camera? 150 00:05:54,080 --> 00:05:54,320 Sorry. 151 00:05:54,320 --> 00:05:55,560 All of you Karen's out there. 152 00:05:55,560 --> 00:05:56,680 And I'll do that. 153 00:05:56,960 --> 00:05:59,040 All you crazy cats and cool kittens. 154 00:05:59,440 --> 00:06:01,640 Man, I had a huge crush on this girl. 155 00:06:04,320 --> 00:06:05,000 Was she crazy? 156 00:06:05,640 --> 00:06:07,920 No, she was actually very sweet, very, very nice woman. 157 00:06:08,160 --> 00:06:09,320 One in a million, man. 158 00:06:09,520 --> 00:06:10,240 Hey, she was good. 159 00:06:10,240 --> 00:06:15,600 But anyways, um, unless your house is, and this is going to be, you know, a bigger 160 00:06:15,600 --> 00:06:17,880 house, which is going to be a bigger inspection either where it has crazy 161 00:06:17,880 --> 00:06:22,080 dimensions means in the measuring takes longer and there's more footage. 162 00:06:22,120 --> 00:06:22,400 Yeah. 163 00:06:22,880 --> 00:06:23,880 15 to 20 minutes. 164 00:06:23,880 --> 00:06:24,760 I mean, they're there. 165 00:06:24,800 --> 00:06:29,400 They circle the outside, use that to help the measuring process, go through the 166 00:06:29,400 --> 00:06:33,320 inside while measuring, they're taking a photo of every room while they're doing 167 00:06:33,320 --> 00:06:37,000 that, they are assessing the condition of your home, you know, if. 168 00:06:38,040 --> 00:06:38,680 Clean up after. 169 00:06:38,680 --> 00:06:42,000 Yeah. If your floors are worn out, your carpets are going bad. 170 00:06:42,000 --> 00:06:45,400 If you've got scuff marks all over your wall, if you got holes in you, they are 171 00:06:45,400 --> 00:06:49,320 looking at that as they go through and taking their pictures and taking into 172 00:06:49,320 --> 00:06:51,960 account, you know, what materials your house made out of, what upgrades you've 173 00:06:51,960 --> 00:06:56,240 made, they may talk to you for a short period of time, like you said, um, to find 174 00:06:56,240 --> 00:06:59,400 out about upgrades, you know, when was the last time the roof was done windows, 175 00:06:59,400 --> 00:06:59,920 et cetera. 176 00:07:00,360 --> 00:07:02,240 And then, so that's all they need. 177 00:07:02,240 --> 00:07:04,960 Cause the majority of the work, like we said, they're getting an overall 178 00:07:04,960 --> 00:07:07,160 assessment of the condition of your home. 179 00:07:07,160 --> 00:07:10,600 And so then they're going to go home and we're back to their office. 180 00:07:10,600 --> 00:07:12,240 And that's, that's where the real magic. 181 00:07:13,520 --> 00:07:13,960 Yeah. 182 00:07:14,200 --> 00:07:15,280 That's where the magic happens. 183 00:07:15,280 --> 00:07:22,880 So to help that magic and get you, um, the most, we'll just say value, if you 184 00:07:22,880 --> 00:07:28,080 will, out of their appraisal, uh, big ticket items and updates that you've made 185 00:07:28,080 --> 00:07:34,080 to the property, um, you know, we're talking windows, HVAC, new windows, new 186 00:07:34,080 --> 00:07:38,040 HVAC system, um, you know, you can go on and on about big things. 187 00:07:38,280 --> 00:07:40,120 Don't tell the guy you go ahead. 188 00:07:40,400 --> 00:07:42,320 No, I was going to say, yeah, major components. 189 00:07:42,360 --> 00:07:45,440 And I know, I know where you were going with this next point. 190 00:07:45,440 --> 00:07:46,280 Continue, sir. 191 00:07:46,280 --> 00:07:46,760 Continue. 192 00:07:47,640 --> 00:07:54,680 So yeah, major components, um, like that, uh, you know, did you just redo the 193 00:07:54,680 --> 00:07:55,360 entire kitchen? 194 00:07:55,520 --> 00:07:57,360 Did you redo an entire bathroom? 195 00:07:58,080 --> 00:07:59,640 Those little things are going to be helpful. 196 00:07:59,760 --> 00:08:00,680 The guy's going to see it. 197 00:08:00,800 --> 00:08:01,800 He's going to see the quality. 198 00:08:01,800 --> 00:08:05,960 He's going to see typically you can see if it's, if it's new and shiny, uh, in 199 00:08:05,960 --> 00:08:07,520 comparison to what else is out there. 200 00:08:07,800 --> 00:08:12,040 But, um, that's just something to help these guys out and make sure that they 201 00:08:12,040 --> 00:08:16,640 get you every piece of value that's possible, uh, in, in what you put into it. 202 00:08:17,120 --> 00:08:24,520 Um, another piece, uh, that I think is important is, um, 99% of the people that 203 00:08:24,520 --> 00:08:30,200 are, that are trying to, they're getting an appraisal done that are in the home. 204 00:08:30,200 --> 00:08:31,520 You're not an appraiser. 205 00:08:32,680 --> 00:08:37,680 Don't, don't give the guy that is inspecting your home, a list of 206 00:08:37,680 --> 00:08:38,640 comps in the area. 207 00:08:39,920 --> 00:08:42,640 Do you want, go ahead. 208 00:08:42,880 --> 00:08:44,240 What else should you not give them? 209 00:08:44,280 --> 00:08:44,800 Period. 210 00:08:46,200 --> 00:08:47,440 Oh, you mean like a value? 211 00:08:47,800 --> 00:08:50,600 Do not talk value. 212 00:08:50,640 --> 00:08:53,280 Do not tell someone what you think your house is worth. 213 00:08:53,320 --> 00:08:56,600 So typically, typically you were only going to be present once a refinance. 214 00:08:56,600 --> 00:08:58,360 Cause on a, on a purchase, you're not going to be. 215 00:08:58,400 --> 00:08:58,640 Right. 216 00:08:58,640 --> 00:08:59,000 Right. 217 00:08:59,000 --> 00:08:59,320 Right. 218 00:08:59,320 --> 00:09:04,400 So especially at a refi, you know, it's on a purchase, there is a contract price. 219 00:09:04,400 --> 00:09:07,800 So the appraisers aware that you've agreed to buy the house for that much. 220 00:09:07,840 --> 00:09:09,840 You know, the market is dictating that. 221 00:09:09,840 --> 00:09:13,840 So the appraiser likely is going to take that into account when searching for 222 00:09:13,840 --> 00:09:18,600 comps, um, but on a refi it's, as we know, it's a blind deal. 223 00:09:18,640 --> 00:09:19,800 How much is this house worth? 224 00:09:19,880 --> 00:09:23,200 You've got to pull this market value out of, out of the blue. 225 00:09:23,360 --> 00:09:24,360 What, what is it? 226 00:09:24,960 --> 00:09:28,880 Do not mention what you need for the loan to work to get your loan 227 00:09:28,880 --> 00:09:32,000 of value, do not mention what you think the home is worth. 228 00:09:32,040 --> 00:09:34,120 Do not mention a value whatsoever. 229 00:09:34,520 --> 00:09:39,360 That is grounds for the appraiser to say he is uncomfortable with the assignment 230 00:09:39,560 --> 00:09:41,280 and would like it reassigned. 231 00:09:41,320 --> 00:09:44,800 And that isn't on the appraiser at that point, because the appraiser 232 00:09:44,800 --> 00:09:47,720 cannot be influenced in any way. 233 00:09:47,760 --> 00:09:51,520 And by giving him a number that is causing influence. 234 00:09:51,520 --> 00:09:53,480 Cause that there's no, we're all human. 235 00:09:53,480 --> 00:09:54,840 The appraiser is not going to forget that. 236 00:09:54,840 --> 00:09:57,880 So when the appraiser sits down and starts going through their actual comps, 237 00:09:57,880 --> 00:10:01,320 they know in the back of their mind, what number you were looking for. 238 00:10:01,360 --> 00:10:03,640 And it's, it's not right. 239 00:10:03,640 --> 00:10:05,640 There's no influence in this business anymore. 240 00:10:06,480 --> 00:10:07,920 So any anymore. 241 00:10:08,400 --> 00:10:08,720 Yeah. 242 00:10:08,800 --> 00:10:10,200 Are you like, I snuck better there. 243 00:10:10,200 --> 00:10:10,440 I don't know. 244 00:10:10,440 --> 00:10:11,240 It's a lot of time. 245 00:10:11,680 --> 00:10:13,800 It's a lot of time I could tech the appraiser myself. 246 00:10:13,800 --> 00:10:18,320 It was the wild west, you know, typewriters and Polaroids, but, um, but yeah. 247 00:10:18,320 --> 00:10:19,040 That's why we're here. 248 00:10:19,280 --> 00:10:19,560 Yeah. 249 00:10:19,560 --> 00:10:23,200 So do not, do not mention a value, do not give them comps. 250 00:10:23,520 --> 00:10:27,280 Um, just be there to answer the questions that they have about your home. 251 00:10:27,280 --> 00:10:29,360 And then let's go. 252 00:10:29,400 --> 00:10:34,960 So, so, so now the appraisals complete your lender gets the notification. 253 00:10:34,960 --> 00:10:35,320 It's done. 254 00:10:35,320 --> 00:10:39,600 Your lender emails you a copy within the first, I believe, like 72 hours or something like that. 255 00:10:39,600 --> 00:10:40,680 They have 72. 256 00:10:40,680 --> 00:10:40,920 Yeah. 257 00:10:40,920 --> 00:10:46,680 I think most are 24, but they have 72 hours required to send you in 72 hours. 258 00:10:46,960 --> 00:10:49,960 So you get your appraisal and we'll try to fly through this. 259 00:10:49,960 --> 00:10:52,040 So, so what do you look for? 260 00:10:52,040 --> 00:10:57,000 The first thing you need to understand is this is a market based appraiser. 261 00:10:57,000 --> 00:11:00,600 This is based on market value. 262 00:11:00,600 --> 00:11:01,200 Right? 263 00:11:01,200 --> 00:11:02,240 It is not a cost appraisal. 264 00:11:03,280 --> 00:11:09,360 And so this goes back to I installed these $40,000 water heater. 265 00:11:09,600 --> 00:11:13,200 I still don't understand exactly why, why isn't, why, why isn't there 266 00:11:13,200 --> 00:11:17,000 something showing I get $40,000? 267 00:11:17,360 --> 00:11:25,280 Yeah, because, because I installed those, um, since I bought the apps, and I'll give you 2000. 268 00:11:25,280 --> 00:11:28,120 I don't even know. I have no idea. 269 00:11:28,120 --> 00:11:29,680 What do we come out of? 270 00:11:29,680 --> 00:11:31,400 Everything is market reaction. 271 00:11:31,400 --> 00:11:35,640 If this house is the only house in this whole town that has this, 272 00:11:35,640 --> 00:11:39,440 how is the appraiser going to show if someone would be 273 00:11:39,440 --> 00:11:41,480 willing to pay more for those than 274 00:11:41,480 --> 00:11:44,080 the exact same house that doesn't have those? 275 00:11:44,080 --> 00:11:45,880 That's how it's done. 276 00:11:45,880 --> 00:11:51,600 If you make everything equal on homes and one home has those, 277 00:11:51,600 --> 00:11:55,680 and it was, let's say, 300,000 and the exact same home 278 00:11:55,680 --> 00:11:58,200 sold in the recent time frame for 280, 279 00:11:58,200 --> 00:12:00,000 and then another one sold for 280, 280 00:12:00,000 --> 00:12:02,800 then another one pops up that has those that sold for 295. 281 00:12:02,800 --> 00:12:03,840 Now the appraisers are going to say, 282 00:12:03,840 --> 00:12:05,320 okay, I got four homes here. 283 00:12:05,320 --> 00:12:07,680 Two had those, two didn't. 284 00:12:07,680 --> 00:12:09,740 All everything else equal. 285 00:12:09,740 --> 00:12:11,800 They're getting about 15,000 to 20,000 286 00:12:11,800 --> 00:12:13,720 extra for the homes that included those. 287 00:12:13,720 --> 00:12:16,280 Then yes, you might get an adjustment on the appraisal 288 00:12:16,280 --> 00:12:18,400 showing what it is, 289 00:12:18,400 --> 00:12:20,040 but that data has to be out there. 290 00:12:20,040 --> 00:12:21,280 It's like the MC Hammer thing. 291 00:12:21,280 --> 00:12:24,400 You could have 24-karat gold toilets. 292 00:12:25,400 --> 00:12:28,680 That guy was an idiot. He spent so much money. 293 00:12:28,680 --> 00:12:30,440 But are you going to get extra on appraisal 294 00:12:30,440 --> 00:12:34,240 if you're the one house in the state that has gold? 295 00:12:34,240 --> 00:12:36,120 No, because there's no way to show 296 00:12:36,120 --> 00:12:39,080 there's any market reaction for having it. 297 00:12:39,080 --> 00:12:40,280 You're right. 298 00:12:40,280 --> 00:12:42,840 That's the way to wrap your head around it, 299 00:12:42,840 --> 00:12:44,880 price per square foot. 300 00:12:44,880 --> 00:12:47,840 That's one that gets me every time. 301 00:12:47,840 --> 00:12:49,080 It's like, hey, boy, 302 00:12:49,080 --> 00:12:52,040 the homes in this neighborhood are going for price per square 303 00:12:52,040 --> 00:12:55,040 foot of 200, but the appraisal comes out to be 180. 304 00:12:56,440 --> 00:12:58,600 Why isn't it 200? 305 00:12:58,600 --> 00:13:01,640 That's a backend number for appraisers. 306 00:13:01,640 --> 00:13:05,960 Appraisers don't do a calculation on price per square foot 307 00:13:05,960 --> 00:13:09,080 and then input a value. 308 00:13:09,080 --> 00:13:10,040 It's a backend thing. 309 00:13:10,040 --> 00:13:11,680 It's just a little box, 310 00:13:11,680 --> 00:13:13,280 I think that automatically gets filled in 311 00:13:13,280 --> 00:13:14,840 from the numbers that put on appraisal. 312 00:13:14,840 --> 00:13:16,080 It's not even something to calculate. 313 00:13:16,080 --> 00:13:18,400 Yeah, with the software and stuff that these guys have now 314 00:13:18,400 --> 00:13:21,000 to complete these reports, 315 00:13:21,000 --> 00:13:23,360 there's a lot of automation and some of that. 316 00:13:25,360 --> 00:13:28,280 I can't speak for sure whether all of them are like that, 317 00:13:28,280 --> 00:13:29,840 but I would assume the most are 318 00:13:29,840 --> 00:13:32,280 because ultimately they're trying these software platforms 319 00:13:32,280 --> 00:13:36,160 to try to save these guys a whole bunch of time, right? 320 00:13:36,160 --> 00:13:37,000 Oh yeah. 321 00:13:37,000 --> 00:13:37,840 To get these reports done. 322 00:13:37,840 --> 00:13:41,160 So yeah, your point to square footage. 323 00:13:41,160 --> 00:13:45,920 Yeah, I've said a lot of guys submit a rebuttal 324 00:13:45,920 --> 00:13:48,360 when it comes to the value 325 00:13:48,360 --> 00:13:50,760 because they didn't see enough value 326 00:13:50,760 --> 00:13:53,360 or what they thought it was going to be. 327 00:13:53,360 --> 00:13:55,880 And they're trying to sell it on square footage. 328 00:13:55,880 --> 00:13:57,360 Price per square foot. 329 00:13:57,360 --> 00:13:58,200 You know what? 330 00:13:58,200 --> 00:14:00,240 This goes back to what I was saying with my example. 331 00:14:00,240 --> 00:14:02,840 It's the best way I can say it for people to understand 332 00:14:02,840 --> 00:14:06,200 why price per square foot doesn't matter on appraisal. 333 00:14:06,200 --> 00:14:11,200 Price per square foot only can be calculated 334 00:14:11,200 --> 00:14:15,960 and used in comparison when all things are equal. 335 00:14:15,960 --> 00:14:18,760 All things are equal. 336 00:14:18,760 --> 00:14:20,600 All things have to be equal for that to work. 337 00:14:20,600 --> 00:14:22,440 You can't compare, 338 00:14:22,440 --> 00:14:24,680 if you're looking at a property 339 00:14:24,680 --> 00:14:29,200 that is a 1800 foot split entry, 340 00:14:29,200 --> 00:14:32,160 with let's say three bedrooms, two baths, 341 00:14:32,160 --> 00:14:36,080 and your current home is a 2100 square foot ranch 342 00:14:36,080 --> 00:14:39,200 with four bedrooms and three baths. 343 00:14:39,200 --> 00:14:44,200 And the ranch is going for 200 feet per square foot, 344 00:14:45,520 --> 00:14:47,040 or $200 for square foot. 345 00:14:48,000 --> 00:14:51,800 And your appraisal comes in and it's 180, 346 00:14:51,800 --> 00:14:54,120 sticking with those same numbers I used before. 347 00:14:54,120 --> 00:14:56,920 You're like, well, the other homes in this neighborhood, 348 00:14:56,920 --> 00:15:00,600 you would have to adjust and do so many things 349 00:15:00,600 --> 00:15:03,880 to that ranch to get it on an equal playing field 350 00:15:03,880 --> 00:15:08,240 to that split entry, to make all things equal 351 00:15:08,240 --> 00:15:10,080 and then see what the price per square foot. 352 00:15:10,080 --> 00:15:12,720 Price per square foot assumes all things equal. 353 00:15:12,720 --> 00:15:15,520 And it just, I know that wasn't the best way to explain it, 354 00:15:15,520 --> 00:15:17,280 but if you just put yourself in that mindset, 355 00:15:17,280 --> 00:15:21,760 this only works if all things are absolutely 100% equal. 356 00:15:21,760 --> 00:15:23,760 They have to be for price per square foot 357 00:15:23,760 --> 00:15:26,840 to be a somewhat accurate measurement of value. 358 00:15:28,720 --> 00:15:30,840 Man, hopefully I just did, yeah, I mean, hey. 359 00:15:30,840 --> 00:15:32,480 I mean, you might've lost some people there. 360 00:15:32,480 --> 00:15:36,640 Yeah, I know, but that's something I'm very passionate about 361 00:15:36,640 --> 00:15:38,120 is getting people to understand that. 362 00:15:38,120 --> 00:15:42,000 Because a lot of time is spent on rebuttals 363 00:15:42,000 --> 00:15:45,440 and the most common item that comes back 364 00:15:45,440 --> 00:15:46,360 is price per square foot. 365 00:15:46,360 --> 00:15:48,800 It's like, it's a new point 366 00:15:48,800 --> 00:15:50,640 because all things aren't equal here. 367 00:15:50,640 --> 00:15:53,680 You can't use that as a basis for saying 368 00:15:53,680 --> 00:15:56,320 this appraisal came in lower than we expected 369 00:15:56,320 --> 00:15:58,080 because of price per square foot. 370 00:15:59,080 --> 00:16:00,560 There actually has to be comparables 371 00:16:00,560 --> 00:16:02,880 that are similar to the subject property 372 00:16:02,880 --> 00:16:06,920 that have sold for justifying what we're trying to do. 373 00:16:06,920 --> 00:16:09,280 Now let's touch on that real quick. 374 00:16:09,280 --> 00:16:12,280 When you're talking about a value rebuttal. 375 00:16:12,280 --> 00:16:17,000 Now, you want, we're looking for, 376 00:16:17,000 --> 00:16:20,600 the appraiser is looking at closed sales, 377 00:16:20,600 --> 00:16:22,720 closed sales that are at the- 378 00:16:22,720 --> 00:16:24,120 Recorded, done. 379 00:16:25,080 --> 00:16:26,480 Right, yes. 380 00:16:26,480 --> 00:16:27,880 Keys have been transferred. 381 00:16:27,880 --> 00:16:32,880 That all sold at the price point and higher, right? 382 00:16:33,280 --> 00:16:35,080 So let me give you an example. 383 00:16:35,080 --> 00:16:40,080 You want $300,000 as a value for your home. 384 00:16:41,240 --> 00:16:43,120 Well, it came in at 270. 385 00:16:43,120 --> 00:16:43,960 Sorry. 386 00:16:43,960 --> 00:16:48,960 Okay, well, if you're trying to get to 300, 387 00:16:49,600 --> 00:16:51,800 you need to have comparables, 388 00:16:51,800 --> 00:16:53,440 closed comparables in your market 389 00:16:53,440 --> 00:16:57,400 that close on that price point and higher. 390 00:16:57,400 --> 00:17:00,880 This is when you're submitting a value rebuttal. 391 00:17:00,880 --> 00:17:03,040 Like there's gonna be adjustments. 392 00:17:03,040 --> 00:17:04,840 There's gonna be, you know, 393 00:17:04,840 --> 00:17:07,160 you might get a little bit more, 394 00:17:07,160 --> 00:17:10,080 might be homes that close for a little bit more, 395 00:17:10,080 --> 00:17:14,360 but after adjustments down for, you know, 396 00:17:14,360 --> 00:17:18,040 maybe a new kitchen or maybe there's a new bathroom 397 00:17:18,040 --> 00:17:22,200 or whatever can help adjust the value. 398 00:17:22,200 --> 00:17:25,480 But the point being is that I've seen a lot of guys, 399 00:17:25,480 --> 00:17:30,280 I've seen a lot of guys submit new comps 400 00:17:30,280 --> 00:17:33,600 that were below what the original appraisal came in at. 401 00:17:33,600 --> 00:17:34,680 Price per square foot. 402 00:17:35,880 --> 00:17:37,280 Yeah. 403 00:17:37,280 --> 00:17:42,280 So presenting a comp that is smaller, 404 00:17:42,400 --> 00:17:45,040 but has a higher price per square foot. 405 00:17:45,040 --> 00:17:46,800 So then the thought process is, 406 00:17:46,800 --> 00:17:48,240 well, if we give them this comp, 407 00:17:48,240 --> 00:17:51,920 then the adjustment to the gross living area 408 00:17:51,920 --> 00:17:54,440 on the appraisal report to bring all things equal 409 00:17:54,440 --> 00:17:58,720 is going to bump up, you know, the adjusted sales price. 410 00:17:58,720 --> 00:18:00,360 All things equal. 411 00:18:00,360 --> 00:18:02,680 Yeah, to being above what we got. 412 00:18:02,680 --> 00:18:03,800 So it's gonna raise things. 413 00:18:03,800 --> 00:18:07,400 But the problem is the report likely contains 414 00:18:07,400 --> 00:18:08,880 three to four other sold comps 415 00:18:08,880 --> 00:18:11,400 that are more similar in size already. 416 00:18:11,400 --> 00:18:14,360 And so the appraiser is not going to go 417 00:18:14,360 --> 00:18:17,720 and add a comp, especially to really, 418 00:18:19,360 --> 00:18:20,240 what's the word I'm looking for? 419 00:18:20,240 --> 00:18:24,080 Really to change the value, I guess, influence. 420 00:18:24,080 --> 00:18:25,760 Influence, adjust. 421 00:18:25,760 --> 00:18:30,760 Adjust the value based on the least similar property 422 00:18:30,760 --> 00:18:34,480 out of the five or six that are already being compared to. 423 00:18:34,480 --> 00:18:36,440 It's just not gonna happen. 424 00:18:36,440 --> 00:18:38,760 So, but that's more something that gets dealt with 425 00:18:38,760 --> 00:18:40,880 in our world that the borrowers, 426 00:18:40,880 --> 00:18:42,400 if anybody is still listening, 427 00:18:43,360 --> 00:18:46,080 who is not actually in the business, 428 00:18:46,080 --> 00:18:47,480 that's more something that we deal with 429 00:18:47,480 --> 00:18:51,320 that gets presented our way, you know, from the lending side. 430 00:18:51,320 --> 00:18:54,200 But obviously sometimes, especially on refi's borrowers 431 00:18:54,200 --> 00:18:56,760 are involved in their rebattles. 432 00:18:56,760 --> 00:18:59,240 Right, and they're curious, they have questions. 433 00:18:59,240 --> 00:19:01,480 I mean, don't get me wrong, there's loan officers 434 00:19:01,480 --> 00:19:05,240 who they submit, there's a lot of education 435 00:19:05,240 --> 00:19:08,960 that takes place by us educating the LOs 436 00:19:08,960 --> 00:19:13,480 and or processors or who have you in the lenders. 437 00:19:13,480 --> 00:19:15,720 Cause you know, a lot of them feel 438 00:19:15,720 --> 00:19:18,080 that they could just throw anything on paper, 439 00:19:19,120 --> 00:19:22,560 especially the value that they are desired. 440 00:19:22,560 --> 00:19:24,800 And those things get thrown on automatically. 441 00:19:24,800 --> 00:19:28,040 So these are things that we have to deal with on our end 442 00:19:28,040 --> 00:19:29,320 to help educate everybody. 443 00:19:31,520 --> 00:19:34,120 And so I think that, 444 00:19:36,040 --> 00:19:39,000 I think that probably rounds out our, you know, 445 00:19:39,000 --> 00:19:40,440 quick tips and quick- 446 00:19:40,440 --> 00:19:42,400 What to do on an appraisal. 447 00:19:42,400 --> 00:19:43,920 Give them a beer. 448 00:19:45,520 --> 00:19:46,400 Don't give them a beer. 449 00:19:46,400 --> 00:19:48,040 No, they gotta drive. 450 00:19:48,040 --> 00:19:49,960 Yeah, they probably gotta drive. 451 00:19:49,960 --> 00:19:53,560 This made me think, so my tool of the week this week. 452 00:19:54,800 --> 00:19:55,840 Oh, dude. 453 00:19:55,840 --> 00:19:57,120 Can you name that tool? 454 00:19:57,120 --> 00:19:58,600 It's not a wrench. 455 00:19:58,600 --> 00:19:59,440 It's a- 456 00:19:59,440 --> 00:20:00,600 It's a bottle opener. 457 00:20:00,600 --> 00:20:02,200 Bottle opener, I know. 458 00:20:02,200 --> 00:20:05,480 This was one of our old swags here, 459 00:20:05,480 --> 00:20:08,160 the old order pro USA, man. 460 00:20:08,160 --> 00:20:09,760 I hate that word swag down. 461 00:20:11,400 --> 00:20:13,240 Or is it swag, schwag? 462 00:20:13,240 --> 00:20:15,600 No, schwag is something else. 463 00:20:15,600 --> 00:20:17,560 Yeah, that's definitely something else. 464 00:20:17,560 --> 00:20:21,400 Swag, your swag bags, like that's got a giveaway, you know? 465 00:20:23,720 --> 00:20:26,920 These were a good hit, these bottle openers. 466 00:20:26,920 --> 00:20:27,760 I used them for myself. 467 00:20:27,760 --> 00:20:29,720 That's what I used when I used to part-time. 468 00:20:29,720 --> 00:20:31,920 Speaking of, speaking of swag, 469 00:20:31,920 --> 00:20:36,920 let's take this into where you could find us this month. 470 00:20:36,960 --> 00:20:38,200 Cause we're right beside you. 471 00:20:38,200 --> 00:20:39,720 Cause we're right beside you. 472 00:20:40,920 --> 00:20:41,760 Let's see. 473 00:20:41,760 --> 00:20:43,640 This month, what are you doing this month? 474 00:20:43,640 --> 00:20:44,640 I'm gearing up. 475 00:20:44,640 --> 00:20:48,320 I gotta get all my suits redone for the MBA. 476 00:20:48,320 --> 00:20:49,800 Oh, the MBA, that's right. 477 00:20:49,800 --> 00:20:51,800 Well, before the MBA though, 478 00:20:51,800 --> 00:20:54,040 we got September 26th to 27th, 479 00:20:54,040 --> 00:20:58,080 the Serbian Lending Conference. 480 00:20:58,080 --> 00:21:01,800 We will be represented there October 7th to 10th, 481 00:21:01,800 --> 00:21:06,200 the big NAMM conference out in Las Vegas at Caesar's Palac- 482 00:21:06,200 --> 00:21:07,920 I got pulled off that one. 483 00:21:07,920 --> 00:21:09,320 Caesar Palacce, what? 484 00:21:09,320 --> 00:21:12,760 That was my first ever nationwide show, you know? 485 00:21:12,760 --> 00:21:13,600 You got pulled off of it? 486 00:21:13,600 --> 00:21:14,720 You're not gonna be there? 487 00:21:14,720 --> 00:21:15,560 No, oh my God. 488 00:21:15,560 --> 00:21:17,400 Oh man, you'll be missed. 489 00:21:17,400 --> 00:21:18,240 So- 490 00:21:18,240 --> 00:21:19,720 That's the one that has the big, 491 00:21:19,720 --> 00:21:21,960 that was the one that had the big rooftop party. 492 00:21:21,960 --> 00:21:23,280 Yes, well, I mean, yeah. 493 00:21:23,280 --> 00:21:24,720 Vegas, I mean, you gotta go Vegas. 494 00:21:24,720 --> 00:21:28,360 We were just in Vegas and we did Cigar Cutters. 495 00:21:28,360 --> 00:21:30,080 Our marketing department did a fantastic job 496 00:21:30,080 --> 00:21:31,240 putting swag together. 497 00:21:32,120 --> 00:21:33,880 Those things went like crazy. 498 00:21:33,880 --> 00:21:35,960 And end of October, 499 00:21:35,960 --> 00:21:38,160 end of the big conferences for the year. 500 00:21:38,160 --> 00:21:42,320 As you mentioned, MBA annual, October 23rd to 26th 501 00:21:42,320 --> 00:21:45,440 in Music City, Nashville, Tennessee. 502 00:21:45,440 --> 00:21:47,120 Have you booked your hotel room? 503 00:21:48,440 --> 00:21:50,240 I gotta do that, probably this weekend. 504 00:21:50,240 --> 00:21:51,360 I looked it up. 505 00:21:51,360 --> 00:21:55,040 All the ones that are with the show are sold out. 506 00:21:57,560 --> 00:21:58,400 Oh. 507 00:21:58,400 --> 00:21:59,240 Yeah. 508 00:21:59,240 --> 00:22:00,080 Oh. 509 00:22:00,080 --> 00:22:00,920 I know. 510 00:22:02,320 --> 00:22:03,880 I was saying we just get an Airbnb. 511 00:22:03,880 --> 00:22:04,720 What does the company think of that? 512 00:22:04,720 --> 00:22:07,080 Like if we all just get like a three bedroom, 513 00:22:07,080 --> 00:22:08,800 four bedroom Airbnb. 514 00:22:08,800 --> 00:22:09,800 We've done it. 515 00:22:09,800 --> 00:22:11,160 We've done it before, yeah. 516 00:22:11,160 --> 00:22:13,600 So we'll talk about it. 517 00:22:13,600 --> 00:22:14,880 Anyways, I'm excited, Nashville. 518 00:22:14,880 --> 00:22:16,400 I've only been to Nashville once. 519 00:22:16,400 --> 00:22:18,200 I'm excited to go to Nashville for- 520 00:22:18,200 --> 00:22:19,200 Nashville's a blast, yeah. 521 00:22:19,200 --> 00:22:20,480 We'll have a great time. 522 00:22:20,480 --> 00:22:22,400 Catch me at Tootsies, baby. 523 00:22:22,400 --> 00:22:24,560 Going down to Tootsies. 524 00:22:24,560 --> 00:22:25,400 We'll be there. 525 00:22:25,400 --> 00:22:28,360 That's the oldest, isn't that the oldest bar on Broadway? 526 00:22:28,360 --> 00:22:29,960 Tootsies, that's like the original, 527 00:22:29,960 --> 00:22:31,080 the original bar there. 528 00:22:31,080 --> 00:22:31,920 Is it really? 529 00:22:31,920 --> 00:22:33,520 Yeah, I think Tootsies is like- 530 00:22:33,520 --> 00:22:34,800 I mean, it's a bunch of old stuff. 531 00:22:34,800 --> 00:22:36,480 Nashville's got a cool party scene. 532 00:22:36,480 --> 00:22:38,240 And that's the one that's like eight stories, right? 533 00:22:38,240 --> 00:22:40,560 There's like a ton, like six different levels. 534 00:22:40,560 --> 00:22:43,120 Kid Rock has one, it's like four levels. 535 00:22:43,120 --> 00:22:43,960 Yeah, it's a blast. 536 00:22:43,960 --> 00:22:47,480 They do like a different band on every single floor. 537 00:22:47,480 --> 00:22:51,080 Jason Alvarez is huge. 538 00:22:51,080 --> 00:22:53,080 Yeah, it's pretty cool place. 539 00:22:53,080 --> 00:22:53,920 I'm excited. 540 00:22:53,920 --> 00:22:57,560 So if you guys are looking for other ways 541 00:22:57,560 --> 00:23:01,120 to see what we got going on, where we're gonna be, 542 00:23:01,120 --> 00:23:04,640 go check us out on basically every social media platform 543 00:23:04,640 --> 00:23:05,480 out there. 544 00:23:05,480 --> 00:23:06,360 Oh. 545 00:23:06,360 --> 00:23:09,360 Oh, Facebook, Instagram, TikTok. 546 00:23:10,760 --> 00:23:11,760 What am I missing? 547 00:23:12,960 --> 00:23:14,360 Twitter. 548 00:23:14,360 --> 00:23:16,040 Yeah, Tweets, yeah, Twitter. 549 00:23:16,040 --> 00:23:20,120 But go like and subscribe to us on YouTube 550 00:23:21,200 --> 00:23:23,480 for this podcast and future ones. 551 00:23:23,480 --> 00:23:24,960 Get set up the notifications, 552 00:23:24,960 --> 00:23:27,560 so you know when we're dropping some more heat 553 00:23:28,520 --> 00:23:30,360 on Valu Nation. 554 00:23:30,360 --> 00:23:33,200 Valu Nation, nationwideamc.com. 555 00:23:35,520 --> 00:23:37,800 Nationwide, we're right beside you. 556 00:23:37,800 --> 00:23:39,600 Right beside you. 557 00:23:39,600 --> 00:23:44,600 I'm Jason Alvarez, and I'll see you next time.