| Seamus, Mike and I represent homebuyers. That means we give real-estate advice, or as I put it:
“I shoot my mouth off about real estate, what I believe and what I don’t.”
Our advice involves words and numbers. We need to measure our words and numbers carefully because they provide information which allows our clients to make informed, not emotional decisions.
Sales (cars, real estate, investing) are driven by emotion. Understand that words can be bastardized for the purpose of a sale, so pay attention to words and numbers when you’re spending your money. Words and numbers have value.
 Crypto. Tom Brady used words (and numbers) to promote crypto-related products, most notably FTX. Many people bought crypto based on Brady’s words and numbers. FTX filed for bankruptcy in 2022. Pay attention to the words and numbers.
Yet, it’s important to remember that our advice is a reflection of personal experience. Clients must decide if our experience and words and numbers have value. Seamus and Mike have similar experience to mine just not the quantity. I’m older. My experience?
A. Managing the rehab, to various levels, of over 100 homes.
B. Managing the rehab of 10 large non-profit commercial properties.
C. Property management of 16 residential units.
D. Real estate investment, mostly duplex properties and…
E. Helping over 1,800 homebuyers figure out how best to buy a home.
Tips that may save you money.
1. Security Cameras
When we take clients through a home, we caution them against saying, “We love this home and have to have it.” Why? Wisconsin law allows home sellers to have security cameras and audio on during home viewings without notifying the agent or the potential buyers.
 Comment. Best to follow the advice of a framed Snoopy postcard I keep in my office. It reads: “There’s no sense in doing a lot of barking if you don’t have anything to say.”
Look at the home but discuss it outside the home. If the seller doesn’t know you love it you may pay a bit less.
2. Buyer Agent add-on cost
If an agent works with you, the agent must have a contract with you. We’ve had contracts with our clients for the past 40 years but this is new to traditional agents. I’ve seen closing statements where an administrative fee of $500 is charged to the buyer at closing.
Comment. Before you sign a contract ask if there will be any additional fees beyond the contract. If you ask the question up front you may save $500.
3. Mortgage Pre-Paids Unless you pay cash for a home you will have a mortgage. Most mortgages have standard pre-paid fees. Examples are: Loan Application fee ($450); Appraisal fee ($450-$600); Flood plain certification ($25-$50); Lenders Title Insurance ($350+); closing document prep and recording ($125-$150).
Comment. Ask the lender if she’ll waive one or more of the fees. Remember, the lender isn’t doing you a favor by loaning you money, you are doing the lender a favor by borrowing money.
4. Insurance
 Don’t let it rain on your parade. If someone falls on your property you may be liable.
Comment. We suggest clients look into umbrella insurance coverage. A million-dollar policy will cost roughly $275 annually at this writing. This cost may save you money in the long run.
Roofs: It’s rare to see a home with a 3-tab shingle but know most insurers won’t insure 3-tab roofs.
Comment. Don’t buy a home with a 3-tab roof shingle but if you do, negotiate roof replacement as part of the Offer.
Oh, and the $6? I asked my insurance agent how to save money on my insurance policy. She said I might save money if I had a Ring doorbell or water leak monitoring system or central alarm. I had a water leak system. Saved $6. My ask (words) saved me $6 (numbers).
Please forward this newsletter to at least one person who needs it.
Selling? We don’t list homes for sale so contact us for an objective, independent opinion on price and the process of selling in today’s market.
We’ll give you the inside scoop on the good and bad practices in real estate.
Having helped over 1,800 homebuyers you learn a lot about the selling side. The goal: Make educated and informed decisions.
Thanks for reading,
Michael D. Holloway
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