The Expert Podcast

…Here's a trick you can use to find a house for sale That would be a good deal. It's not that they're not houses for sale right now There's a lot more inventory available. Then there was even a year year and a half ago, but a lot of these houses are still priced pretty high aren't they. The prices are coming down a little bit but they're still through the roof. Right. So how can you find a house that is priced reasonably? Not just find any old house but you want to find what you can get a deal on? Well let's first look at why houses are priced though. At the height that they are well it's because the people who are living in that house have a two or 3% mortgage. And if they sell that house they're going to have to go out and get a 7% mortgage on whatever they buy Even if they buy the same priced house that they had. Let's say it's a $400,000 house. And they go from a 3% mortgage to a 7% mortgage. Well that's 4%…Extra interest They pay every year. That's $16,000 a year. more than a thousand dollars a month. That's like 11 $1,200 a month. More just to buy the same house. So guess who's going to pay for that You are because they're not going to sell that house unless they make enough profit. To pay their new mortgage rate of 7%…That's why the houses aren't coming down too much in price and they're really not selling. So what do you do Find somebody who has a higher mortgage. You can go into the land records in your state. And you can find mortgages that were issued more than seven or eight. years ago If you find mortgages from the 2000 10, 11, 12 range, those mortgages were six or 7%. And the person has paid down a lot more than somebody who got a refinance in 2019. So if you go into the land records, find homes that are. Financed most recently. 2012 2013 maybe 14 maybe 11. Those people you can see right on the paperwork Normally what the rate is those people have rates in the five or 6% range. They don't really care if they sell their house and they get a 7% mortgage it's about what they're paying now. Plus they have a big profit. Those are the houses to target. You can match up that list with what you see on Zillow. You can match up that list with maybe even sending out postcards to people Hey you want to sell your house? I want to buy your house. Those people are more willing to move because they're not going to save that much They're not going to spend that much more on interest rate which means they don't have to pass that cost along to you. Let us know what you think in the comments. And good luck looking for a place to live