Yeah I know, there are those that think that opinion should apply to me too. I don't claim to be an expert on anything, but I do know a few things about a few things.....I did pay attention in most of my College classes, and that degree I have wasn't because I tested well (Lord knows that's the truth). I'm opinionated, and sometimes those opinions are backed by research or first hand knowledge. But I digress.
This past Sunday my wonderful Wife asked me to keep her company while she was having an Open House for a Townhouse she is the listing Agent for. It was a really nice Townhouse...open floor plan, three floors (lots of stairs....) with an Overlook in the Master Suite that has a Lake View and accordion doors you can close for privacy. That's the part I liked the best. It also has three Decks....backyard, front and Master Suite. Very nice. The woman that owns it has done some nice things to it; new Hardwood floors (not laminate but real hardwood) and kitchen tile. New light fixtures in the bathrooms too. She put some cash into it and is trying to make it back on the price. About a half dozen or so couples came through in the three hour window to look at it. Everyone liked it but these two dudes. These guys are the reason for the blog title. These Dudes were in their late 20's early 30's. Not a couple, but two straight Dudes obviously looking for a property to Flip. I roll my eyes when I think of these guys. Thanks to HGTV and all their Real Estate, Curb Appeal, Flip that House type shows we are getting to be a Society of Expert Real Estate investors. These Dudes were looking for a bargain....possibly a foreclosure....that they could turn around quick with minimal effort. When the owner put in the new light fixtures, she didn't paint over the space on either side where the old ones had been. Big deal says I. These Dudes commented on that. The floor in one of the bedrooms slopes ever so slightly....the house is built on a hill and is 23 years old.....crap settles and if there was anything structurally wrong with that section, the guys wouldn't have installed the hardwood floor there. Oh yeah, and the ceiling fan in the living room is missing a blade. Other than that, the Townhouse is in perfect condition. Hell I'd buy it if I didn't already have a mortgage of my own. These Dudes comments "It's totally unlivable the way it is. There is so much that needs to be done to it that it's not worth it." Huh?????? I guess these morons are looking for a brand new, contemporary place for 100K or something so the can turn around and sell it for double. Yeah, good luck with that. Dumbasses. We met this one Mortgage Broker (nice guy, real professional and he knew his stuff) he told us this story of how dumb folks can be. Now I'm not a financial expert by any means, but I do know a thing or two about how Interest Rates work and when the Fed says they are going down, it's not by much......vice versa as well. He had some clients who, and this was recently, were approved for a mortgage with no points, no orig cost, etc and a interest rate of 5.125%....on a 300K loan. Wow!! I thought to myself. That's better than I got (mine is 6 something....). Did these folks jump on it???? Hell no!!! These morons told this Broker "well they say the rates going lower..." the Broker told them that it ain't going that much lower and expecting it to is a huge gamble. They still wouldn't lock it in. Time went by, the rate expired and they ended up paying points plus orig fees and almost 6%.....why? They thought they were experts. Let's not listen to the Broker...a guy who has a license and makes his living eating, and breathing the markets. Everyone who has even a remote clue about markets knows that if you have a rate of 5.125% and the average is 6/6.25 and they say the rates are going lower.....they mean for the folks who have 7 and 8% interest rates.....not someone who has been approved for one of the lowest rates in the range!!!! It's a good bet home loan interest rates aren't going below 5% for awhile......I got a 4.5% in 2004 for a 15K car......no way I'm getting a 4.5 for a house at 130K or higher. Ain't happening. Even someone with stellar credit will get a 5. But hey you know, Everyone's an expert......
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