good morning good afternoon

good evening wherever you are

and whenever you're listening on a

welcome you to the mortgage mindset

we are gonna be talking about overcoming buyer

objections today

this episode is really gonna be helpful

for anyone who handles the lead to close conversion

I think anyone who handles that has

heard these three objections before

and sometimes

you get into a place where you're wondering

you know what do I say what are other people saying

I think it's gonna be really good for you

my name is Hunter Boyd

I am the director of sales for the Shear Rihanna team

today we are joined by Chris Brazil

director operations what's up dude

how we doing today good

I'm good I think

you and I hear a lot of these three objections today

and we've kind of developed a pattern in a script

you know

we have a book in in in the office called criticisms

and they are

there are things that Chris says and things like um

come on give me one right now

the whole ball of wax whole ball of wax is a good one

I use that one quite often yes

the market is cyclical

I love that one I have adopted that one myself well

that one is very apropol with what we're talking about

it is it is it is um

so let's jump into the first one we hear

I wanna wait until rates drop

we've heard this for two years now

and for two years

we've seen homes appreciate year over year

uh homes that were $300,000 two years ago are now 3 33

40 uh

you know we're seeing the market just continue to rise

Chris when you get a buyer on

on the phone

or if they're in person here in the office with us

taking a nap with you and they tell you

hey look man

like I appreciate your time

I just wanna wait until the rates drop

what's what's the first thing comes to your mind

there's a couple things

but one of the main things I talk to a client about is

I don't focus on the rate

you know what is your monthly

your comfort level with the monthly mortgage payment

yep because if you're okay with paying $2,000 a month

and you're like yep

I'm good with that amount of money

what does it matter

what rate gets you to that 2,000 dollar

a month payment so back it in the other way

start with what the

comfort level is on your monthly mortgage payment

and then say okay

well here's what a loan amount would look like

at that payment

now go see if you can find a house with that

let's start by dissecting it backwards as opposed to

I like this house

but I want my payment to fit where it is

based on today's rates you know

if you're focused on it like that

then you kind of paint yourself into a corner

and so if you start if we

you know if we are able to get to a bar

or quick enough in the process

you know upfront

ideally before they even start looking at houses

that's how we focus on it is that okay

here's your payment no matter what the rate is

here's what it's gonna look like

as far as a loan amount

then we talk about what your comfort level is

with cash out of pocket

and we back into and say okay

you should be looking at 3

53 75 price points that's it that way it is

take the focus off the rate

because what if rates don't drop

you know you're never gonna buy a house

just because you don't like the fact that

everybody's been telling you for two years

that rates are high rates are high

rates are high

I can tell you from personal experience

I bought my first house down here in North 1726 yeah

you some

it was not quite but it was 2005 it felt like the 1700s

but um so back then

my the rate of my house was in the 7% range

and that's where rates were back then yeah

you know if I waited to buy back then you know

I I don't know I still

I would have missed out on a lot of opportunity

I bought at my house in Holly Springs back in 2005

it was a podunk little one horse town

and if you live in this area

you know what Holly Springs is like now yeah

so I would have missed a golden opportunity

to literally invest in myself

and my family in real estate

which is one of the biggest investments

and best investments you can make as uh

you know young

old no matter what

but it's you're investing in yourself

and so if I was so concerned about that interest rate

not buying at that time

I would have missed out on a ton of equity that I made

over you know

owning that house for 17 years yeah

so you know

that's what it is

it's you gotta take the focus off the rate

cause again what if rates don't drop

I mean if you're chasing a 2

3% rate that we were at during the pandemic

you're you're gonna be waiting a lifetime

because those are once in a lifetime

rates that are never gonna come back God

you know

unless God forbid another worldwide pandemic comes back

which we none of us want well

and that's exactly where I was gonna go was like

you know what's their perspective yeah

are you talking about well

I mean if you look at month over month

well this is June 2,024

rates are dropping right now correct

comparatively to two months ago or yeah

two months ago we're seeing lower interest rates

so you know

our what is the weight until rates drop

that's that's an ambiguous ambiguous

what's that go with it bro yeah

go with that word

that doesn't make sense because rates are dropping

so where's the starting point

and what's the finish line that you're looking for

if you're looking for another hundred year

low type interest rate environment uh

you most likely will never see that again

but if you look at the past 30 years

where the average is just over 7% uh

I mean you know

rates are definitely dropping

so I think buyer education

especially for the millennial

it is really important because

you know the millennials grew up in the 4

5% rates and then they saw the rates go to 2 and 3% um

and and it's really just not the cost of money

when you look at real estate and um

for the past 30 years yep um

and we don't talk enough about appreciation and equity

people think you know appreciation is a good thing

well

it's only a good thing if you already own the house

if you're if you're waiting to buy that house because

you know real estate is appreciating right now

then guess what every month

every day that you wait to buy that house on

waiting on a lower interest rate

that's money out of your pocket

by not buying that house

and realizing the appreciation for yourself

and your family that's what builds equity

they don't go hand in hand unless you own a house yeah

you know in this market um

you know we're lucky enough to be in a in a good

you know strong real estate market

where there is consistent appreciation year to year

you only gain that appreciation

or realize that appreciation

by actually taking the step in investing in a house

no matter the rate is temporary

that appreciation is year after year

that you're gonna see money in your pocket yo

and

and to go right along with I wanna wait to reach up

I wanna buy when the market crashes again

well there's gonna be a huge market correction

like there was an 0 8 and I

I don't wanna buy now

because my home's worth $100,000 less in

in a year or two I think uh

that's the second uh

really objection we hear a lot right now

and I think this comes from um

a lack of understanding on the bias standpoint

just a lack of just an education on

on what guidelines were in 2008 that LED to that crash

and where they're at now you know

you and I love our daily guideline emails that we get

hey this investors change this guideline

this investor done this with the guidelines however

general public doesn't understand that

there's so many more

layers of Protection built into loans now

than there were almost 20 years ago correct

because 20 years ago happened

that's correct and so you know when you hear that man

what's your response so this

it's easy

here's the dirty little secret that's out there

is that there was a market crash in 2008 and 2,010

but guess what it didn't affect the whole country

here in the triangle we were not affected by that

it might have stabilized where we weren't seeing 5 6

7% appreciation in our houses

maybe it was one or two yep

but we weren't upside down in our houses

so the news makers were the places like Florida

California New York

places like that

were there a lot of investment properties

a lot of people that were overpaying for houses

because a lot of people were moving there

and it was a false market in

the false real estate market in those areas

and what that meant was you know

people were buying and selling houses

as quickly as they could every time they sold it

it was a praising hire because well

I could get into that but

appraisers are also under

a whole new coat of conduct that they have to go by

nowadays yep

it wasn't quite like that back then

if they needed a house to appraise

for what the sales price was

it happened yeah

a lot easier than it does now

so there was a it was a

it was a straw built market back then

but in the triangle we were a

almost like a bubble

that was protected from that crash

I know very few people

that went upside down in their houses at

during that time frame um

I lived through that I was in the business then

I owned a house then and my house never lost value

and so with that being said

if you're

it's almost like waiting for that 2% interest rate

if you're waiting for the market to crash

and you're buying in this area

good luck I mean

it's not gonna happen I mean

I hope to god it doesn't happen

you know I would never say anything's 100% guaranteed

but I haven't seen it yet

and I hope to god we don't see it

because we live in a great part of the country

people are moving here

it's it has everything you want business

low taxes and everything

so I mean it's a great area to live and buy

yeah and I mean

we do business

and just about anywhere my accent would fit right

like you know Alabama

Florida Georgia

South Carolina Tennessee

Virginia I mean

we're all over

but North Carolina specifically

has made it very advantageous for big businesses

to move into the area and that's

you know whether you agree with state politics or not

it's just a fact of the matter

we've been very big business focus

and that's why we get companies like metal

looking in us and Amazon

and Google Apple

we we get these companies that you know

kind of poking eye and just try to check it out um

and with those big companies they

they bring employees and those employees bring families

uh

that's gonna continue to drive the market in this area

as we continue to grow

we're gonna see more people

they're not making any more land

more people less availability

that's gonna increase the purchase price

that's gonna increase appreciation year over year

and I think you know

we saw we I think there was like a 1 or 2%

just tick automatically when it was

was it Google that moved in a couple years ago

announced they were coming in

and you saw appreciation immediately in the market

because the people understood

like they're bringing more people

they're bringing high paying jobs

high granted that's just

it's an increase in the market immediately

yeah um

when that happened we saw an uptick

and people calling about investment properties

cause they knew that

more people are gonna be moving here

and people calling from California

you know the um

what's it called San Jose area

the tech sector there yeah

calling from that area

because they were going to move out here to follow it

just because it's you know

relatively speaking

as far as taxes and things like that

this area is a better place to live

yeah and so

you know in its economics 1:01

you know supply and demand

that's exactly right if you drive down the road now

they can't build houses quick enough

our inventory is still low in this area

you know I think what is it now

it's two months that houses are average

sitting on the market something to that extent

it fluctuates but it's not very long

relatively speaking a housing crash

is when a house sits on the market for a year

two years

something like that that just is not the case right now

I hardly have

I don't know if I've ever seen it in this area

in the 20 years I've been in the

in the mortgage business any

any market you can advertise investor special

basically meaning the house is a wreck

yeah and conventionally

you're not gonna be able to finance it however

cash you can do things like that

that means that even the worst of

the

worst level of properties are still getting bought up

right that's

that's a strong signal to them

markets really not going anywhere

yeah um

and then the last thing that we get is

should I get a loan if I have cash

and agents

and loan officers have reached out to us about this

question uh huh

how we handle this um

and I really think that kind of comes back to

where's your cash being held

I mean if there's a penalty

if you're taking out of retirement

you're paying the penalty on that if there

if it's in the stocks and bonds

and you're getting a 9% an interest rate of return

you know I think there really needs to be

some math done there on what does a six and a half

7% interest rate somewhere in there look like

versus what you're gaining um

also if you're getting a return on the property

like an investment property

and someone else is paying that interest rate

do you really wanna pull that out

correct

if someone else is gonna be paying that Bill anyways

what do you think yeah

let your money work for you

where it where it sits right now

anytime you pull money out of any kind of investment

IRA 4 1 k stocks bonds

Cds things like that

you're taking money away from yourself

by not gaining the interest that you're gonna get

in those avenues where when you buy real estate

even though you're taking out a loan

that does have an interest rate tied to it

that you're gonna pay back interest on

you're still gaining the appreciation in the house

so right there should offset most of the interests

especially in this area so year after year

you're not losing money because you're still

you're offsetting the interest by the appreciation

and therefore you're making money

by leaving it where it sits right now

where you're

you know portfolio manager or CPA or you know

anybody like that

that's guiding you with your investments

and things like that you know

they put their

your money where it is because they think it's a safe

strong place for your money to sit to work for you

you know why take it out

and put it into something that's gonna work for you

as well with the appreciation

let the real estate do what it's gonna do

let your

your money and the investments do what it's gonna do

based on what your money manager said

was the best avenue for you

and literally it's a win win

you know

people think it's a bad thing to take out a mortgage

it's really not in this area

because you're gonna get that appreciation

that's gonna basically

offset

that interest that you're paying back on the mortgage

you got it you got it

it's in it like anything it's a

it's a fine balance you know

maybe you're buying a 700,000 dollar house

and you don't wanna borrow six

50 on that maybe you borrow 504 50

something like that where your comfort level sits

and that way you're not taking all your money out

maybe you take some of it out

get a loan for the rest

and that way you're comfortable with the payment

you're comfortable with the cash out of pocket

you're leaving your

majority of your money where it sits

and also

you're allowing that house to appreciate for you

making money for you on the site yeah

I think also the fact that like

you know we don't deal with any prepay penalties

correct so someone gets like a a

a a windfall of cash and they wanna pay it off

in a year's time or two years time

or something

that they're not stuck in a 30 year mortgage

you can pay it off at an accelerated pace

or all at once it's just

the fact of

the matter of being able to hold on to your cash

for a little bit longer

making making sure you're making the right decision

with that cash

that's really where a loan could step in and help

that's a good point I agree

well look

thank you for listening hopefully these uh

objections we've kind of handled today of

will be helpful for you and your business

if you have any more specific questions

please reach out to us

our number is 9 1 9 2 3 4 7 4 1 5

and we are team at the share Rihanna team

com for an email address

those numbers are monitored 8:00am to eight PM

every single day

we want to help you help you with clients

if you're facing an objection

that we didn't address today

we'd love to hear about it

shoot us an email give us a call

with help you figure out how to overcome that

my name is hunter this has been the mortgage mindset

thanks Chris for being a part today thank you

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