Discover Real Estate Secrets & Stories with Adrienne and Attilio

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Interview Transcription

ADRIENNE: 
Welcome back, and thanks for listening to the Team Lally real estate show, home of the guaranteed sold program, we’ll buy it. I’m Adrienne and I’m Attilio, and if you have any questions, just give us a call at 7999596, or took us out online at Team Lally com. You know,

ATTILIO: 
I was driving down the road the other day, and I was like, I wonder what the mortgage rate projections are for the coming months. It was like, such an interesting it’s not that interesting. But we’re going to share that with you anyway, because this is a real estate show. So here are the there’s four different sources, actually three different sources, and then an average of the three. What’s one source? Fannie Mae. Fannie Mae. So Fannie Mae is the, is the entity that, basically, when you make a mortgage, and you get a mortgage and your lender gives it to you, they’re the ones that will buy it in the secondary market to create the the engine and the fluidity and the liquidness and the movement of mortgages. So that’s Fannie Mae. And then MBA is what I don’t know. That’s the Mortgage Bankers Association. That’s the, you know, the secret cloud with that, with a secret handshake and password, okay, that our mortgage people. It’s like ner for realtors, but it’s MBA Mortgage Bankers Association. And I hope you know who these people are. Oh,

ADRIENNE: 
Wells Fargo. I had, I had some mortgages with them. Yeah, I thought you

ATTILIO: 
wouldn’t say like they’re a stage coach that went from western town to western town. No, that’s just their logo, yeah. Well, that’s what they were in the beginning. So, uh, quarter four. Well, here’s the production list. We’re already in quarter four already. Let’s go for 2025 the average between the three of them, they’re predicting that in the first quarter of 2025 it’s gonna be, what this mortgage interest free for a 30 year fixed mortgage, 6.58% and what about the second quarter? It’s

ADRIENNE: 
gonna go down just a little bit, 6.45%

ATTILIO: 
and then Quarter Three, again,

ADRIENNE: 
another drop, just a little bit by to 6.32%

ATTILIO: 
and then in the last quarter, when we coming back to to those holiday sales in Black Fridays, 6.33 so what is that

ADRIENNE: 
same? What is the trend? Is trending down? Yes, I like this news. I love these projections. These are great projections. Now

ATTILIO: 
these are you could take this information and translate it into well, agent and Nate Leo, I should wait to buy a home, because the interest rates are going to continue to drop. What happens to the price of homes as interest rates drop and more and more people are competing for the homes? Well,

ADRIENNE: 
then the prices start to rise and there’s less like room for the negotiations, yeah,

ATTILIO: 
because there’s so many competing for the home. So I will tell you right now that the worst advice that you could be given right now is wait for the interest rates to drop, because that is terrible. You’re going to be in a city I we quickly forget, but we were not that far away from a market year, two years ago, that the where the interest rates were dropping and they were crazy low, and there were so many people competing for these homes that the prices were bidding up. So we know right now with the current interest rates. Yeah, and they’re, you know, people, it’s all comparative knowledge, you know, like you’re gonna say, like, they’re high compared to what, if you took a look at the 80s interest rates are in the 18, 19% so compared to that, these are, like, super low. Actually,

ADRIENNE: 
these interest rates are about the same as when I had started in real estate,

ATTILIO: 
1004 early, 2000s Yeah, and I will tell you this. So here is the strategy, and we gotta say it every week, to remind people, again and again and again and again, that the time to buy the home, it’s counterintuitive, is when interest rates are high, because prices usually there’s downward pressure or neutral position that pricing is in, and when the interest rates drop, that’s the time to refinance. You can refinance, but you cannot, if it makes sense, but you can’t refinance your original purchase price. So now is the time to be buying a home. And now let’s go to the inverse of that, home sellers. So home sellers are thinking, You know what, I’ll just wait till the interest rates drop, and then when I have a whole bunch of people competing for my home and I’m gonna sell it for more. That is true. That is true. But if you are PCSing, now, what does that mean? PCSC, if you got a PCS a permanent

ADRIENNE: 
change of duty station, a military term, and you gotta

ATTILIO: 
move, you can’t, I guess you can stick a renter in there and wait.

ADRIENNE: 
But that renter and that rent that you’re getting may not cover your mortgage and taxes, maintenance fees. Now, here’s negative there. Here’s

ATTILIO: 
the double edged sword on that. Here’s the here’s the catch 22 and I, I was looking that up. I was talking to my son the other day, Leo Junior, and I was like, where did that phrase come from? And I was, guess, my reasonable deduction was some something in the middle. It was some kind of military operation or a catch 22 but I think it was like he was, he looked it up and we read it. It was interesting segue. We can segue on our show, because it’s our show, a catch 22 was that when it came time to, like, say, being deployed and going to the front and people were getting killed, people would literally, like, just go insane, go berserk, go nuts. However, if you declare to the the military that you were insane, then it was a catch 22 because you’re like, you’re not insane, but you don’t want to go to the front. But the catch 22 is that people were literally would go nuts, go bonkers with so much fear, and there’s no judgment on our part. I will tell you what I’ve learned from watching binge watching 22 episodes of The Walking Dead. I learned this little nugget, you don’t know how people will behave till they’re in a situation. I will tell you right now. You can tell me how you’re going to behave in a situation, but if you don’t know, and I don’t know how you’re going to behave till you’re actually in that situation, and the situation we’re in right now is that interest rates are high, higher, not that high, higher than before, higher than before. And the catch 22 so here’s the catch 22 I’m a seller. Mm, hmm. That was a long segue, bringing it back, bringing it back to the high mortgage interest rates story about the military, catch 22 here’s how I’m going to bring it back. Okay, you’re a seller waiting for the interest rates to go down because you want a whole bunch of buyers competing for you to get more money, to get more money. Now, here’s the catch 22 unless you’re going to go live in a 10 or you’re going to go rent or Move back, move back in with mom and dad, there’s a high probability you’re going to take that more money you made on the sale and go buy a home, and then what’s happening to that

ADRIENNE:
thing? You’re going to have the same situation now you’re competing, yeah? I mean, unless you just take your money and become a renter, yeah? I mean, some people will do that or go

ATTILIO: 
live on a boat called the Pilar on the Key West and write the greatest American novel. Oh, wait, that was Ernest Hemingway. Nevermind, and you won’t be him anyway.

ADRIENNE: 
Yeah, he hit his head quite a few times. He hit his head quite a few times,

ATTILIO: 
and he had an unfortunate meeting with the Remington shotgun. But anyway, I digress. I digress. Here’s the advice, folks, where, as if you were our own, friends, relatives, kids, buy a piece of real estate now, however you need to do that. Stop looking at it as an investment, or you’re timing the market, or just, I’m gonna wait. Waiting costs you money. Waiting costs you money in real estate. I don’t care what city where you’re buying it this or that, take a pragmatic approach. If you’re tired of renting or living on mom and dad’s couch and you want to own your own place, or you’re in a small place and your family has grown and you want to go in a bigger place. Whatever it is is that life arrangement that says I need to buy a home? When should they do it?

ADRIENNE: 
Let’s start planning now. Now start trying to figure it out now. I mean, there’s always a creative solution, and our team has helped many, many families come up with these solutions, yeah, so. And the other thing too is that, you know, we always encourage our clients that if it’s financially makes sense, yeah, to hold on to the home. Hold on to the home. It’s you know, you build the wealth you you know, you the starter home that you’re not going to finish in. It’s not your retirement home. You put a tenant in there, and then you keep moving up or moving in right sizing. And hold on to that home and build equity, build wealth, build your real estate portfolio. How

ATTILIO: 
many times we have clients come in? And we always, we, I call it our presentation, to sell your home, to not sell your home. Yes, we will say, have we always ask our clients whether they, whether, if, even if they don’t bring it up, which they’re gonna bring

ADRIENNE: 
it up? Did you get a rental analysis? Have you considered renting it? Have you considered?

ATTILIO: 
Have you thought of. I I’ve never thought of that, yeah. Or they’ll say, I don’t want to be a landlord. Why don’t you want to be a landlord? Well, the tenants are crazy, and they can bust out my place. Mm, hmm. Well, what if? What if the tenant was pre screened and we got a really good tenant in there? Wow, I don’t like being long distance landlord. I gotta deal with all the repairs. Well, what if you had a property management team that took care of that, and it’s just, well, well, well, well. And then we give them all the answers, but at the end of the day, you know, we’re not well, you know, you’re in a head lock and choking you out and making you rent the

ADRIENNE: 
place. There was a military couple, dual military, both in the Air Force, and they were both getting ready to retire. And I remember they called me up. They said, We’re getting ready to retire. We want to put our home on the markets. And I said, Oh, wait, wait a second, let’s ask more question. Yep. And then so we had them come in, and we talked to them about, you know, instead of selling it, I said, Well, what are you gonna do with this money? Like, where is this money gonna go? Yes, what are your plans? Do you need this money in order to make the purchase at your, you know, retirement state? And they didn’t. They had been very, you know, responsible with their tsps and saving

ATTILIO: 
savings plan. That’s the 401 K for the military.

ADRIENNE: 
So anyways, we talked about, you know, they would still get that. What is it? The homeowner exemption on the gain of since they’re married, they had up to 500,000

ATTILIO:
did. Did they have that much gain? They did.

ADRIENNE: 
Well, they had even more gain because I said, You know what, let’s put some like, let’s, let’s rent it out. You guys will make money on the on the rents. Yeah, and then, you know, before that five years is up, so that you don’t get that, you know, the capital gains still eligible for the capital gains exemption. So they ended up, because they waited, they made another $150,000

ATTILIO: 
No way. Yes, that’s insane. Yes, no, it’s not. It’s just following our advice Exactly.

ADRIENNE: 
So they were very happy. They were happy. It’s like, the delayed gratification. They’re like, they thought that they needed to sell because they’re moving. I said, no, like, let’s look at it from, you know, this strategy, yeah, and so I’m I was very happy that they listened and they made a lot more money than they would have originally made. So

ATTILIO: 
I would tell you that the the takeaway from this whole story is that if you’re thinking about selling, if it’s 60 days, six days from now, 60 days from now, six months from now, six years from now, give us a call. Book a consultation. We can come to your home. We you can come to our office. We can do a zoom, we can do a conference call. We can just chat about it, no obligation, no hard sell. It’s a consultation. Consultation. You know, what will it start even? Let’s take it down even one more notch. Strategy.

ADRIENNE: 
Sorry, yeah, talk story, talk story, talk strategy. Hey,

ATTILIO: 
how’s that? Oh, you like sell your house? Okay, tell me more about that. All right, I’m gonna give you the seven most powerful words that you can use to create connection with every human being in your life. You ready? Do you remember some of them? What’s the

ADRIENNE: 
first three words I remember? Go on.

ATTILIO: 
Go on. I think it’s like a song from Greece. Tell me more. Tell me. Tell me more. Tell me more. Go on, put a little song hook on that one. Tell me more. Was it was like when she was in the summer. Anyway, anyway. So, tell me more. Okay, somebody says something to you no matter what,

ADRIENNE: 
that’s interesting. Tell me more. And then go on. Go on. And what else, what else, what else. How do you know when to say what else versus go on.

ATTILIO: 
If they come up to you and they go, you might be so mad, I like punching in the face. What else? Don’t say, what else,

ADRIENNE: 
Ron you might get punched in the face. If you say, what else, if you want to

ATTILIO: 
get punched in the face at that moment, just say, what else. And then, and then, if they do punch you in your face, don’t say, go on.

ADRIENNE:
So that doesn’t always apply. It’s not all

ATTILIO: 
the way across the board. People use your use your brain. Take the two you get at least two brain cells in your head. Rub them together. Oh. That would be not a good you know, intuitively, humans, we know appropriately, not appropriately, when to use these languages. The challenge, or the gap, is that we may not know that to be interested, be interested, to be interesting, to be interested, to be interesting, be interested. So listen more. Yeah, it’s the opposite. You know, we were in this social media culture, likes, comments, reshares views and and we have this false indication of like they’re interesting, because I got 10, yeah, i Mr. Beast, and I put 100 people in these cubes, made them all sweaty and passing out, and I got 100 view, million views. That’s interesting. But what’s more interesting in your day to day lives is that when people are sharing some stuff with you, whether you’re in sales or just making a personal connection with your kids, talking story, talking story. You know, if you brought over there, you get seven Heineken in him. You don’t want to get them all riled up, and you don’t want them to go drunk driving. You just tell me more, because they’ll go on and on and on. And then when they fall asleep, you just you tuck them in, take the keys away. So that is going to be my tip for today. If you have friends and relatives in this holiday season, you know, like I’m getting DUI worse, kill themselves. Kill themselves, and other people that when they all buck, you know, all bus up and wanting to leave, say, Hold on, uncle or auntie or sister, cousin, whatever, you know, you I heard you got blah, blah, blah, tell me more about that. And then one day they’re gonna be talking, talking, talking, and then gonna fall asleep, just like your baby when you was feeding them, right in the high chair. They follow fall asleep with the Cheerios. Yes, do that with your friends and relatives. This so that’s our public service announcement that we just seamlessly sucked in. Segue into is keep them in conversation and keep them off the road.

ADRIENNE: 
All right, so, um, I want to segue atilio. What is shadow inventory? We recently did a video about, yeah,

ATTILIO: 
social media, and you’re gonna see a little post that we did called the shadow inventory. No, it is not scary like my hairdo was in that my hair was flying all over the place. No, it’s not. It’s not me with not enough gel in my hair. That’s not shadow inventory. No, it’s not the title of a new Marvel movie coming out this Christmas shadow inventory is homes or properties or residential real estate could be commercial, but we’re just focus on the resident. Yes, residential real estate in the United States where for whatever reason, that property has been foreclosed on and taken back by the bank, but the bank is not there’s letting it sit there,

ADRIENNE: 
just holding on to it. It hasn’t come on to the market yet. They’re holding on whatever reason we don’t know. We don’t know their reasons, but they’re

ATTILIO: 
like Mr. Sancholy, get plenty lychee, but he no share with so they’re like Mr. Santoli, holding on to the lychee. They don’t like share. So shadow inventory. And this is the thing, though, it’s like, it’s difficult to look up. Yeah,

ADRIENNE: 
it’s very difficult. You got to kind of just know you guys, you got to have a relationship with the bank or the lender.

ATTILIO: 
But shadow inventory is out there. And then how you get how? What is it like hotel? Why are you telling us this? Because there’s shadow inventory out there that there may be homes out there in the market. And I’ll tell you, we, we did a video. I’ll tell you right now, we know of eight homes fully furnished, two store not fully furnished, but fully completed, brand new construction, eight homes in Wahiawa, in Wahiawa, where the builder got foreclosed on, the developer got foreclosed on, and it’s in a process, in the foreclosure process, but this process is long. This a long, long process, but if you give us a call, we get you on a list, and we’ll stay in touch with you, because we are in close contact with vendor in the process. And

ADRIENNE: 
it’s not just those eight homes. There’s actually eight other pads that are already there with concrete, and then there’s 24 finish. Yeah, exactly.

ATTILIO: 
So if you want to jump, jump on that. Just give us a call. We’ll take your name, phone number, email address, we’ll tag it, you know, Shadow

ADRIENNE: 
IT. Let’s keep you updated with what’s going on with that project. And

ATTILIO: 
so we’re gonna be like, we’re gonna be like, we’re gonna call you up, and we’ll say, let’s say your name is Jerry from Waipahu. Jerry, I wanted to

give you an update on the shadow inventory. And then Jerry could be like, Oh yeah, I gotta go in quiet place. Tell me what’s going on.

Wow, here’s the update with the shadow inventory now, right now, people’s getting annoyed because they’re doing that was way too long for whispering, unless you’re into the ASMR, you know the ASMR, no. ASMR, I don’t know what that stands for, but people like hearing like noises, whispering. There’s people that like, they have a YouTube video where they’re just opening up something package

ADRIENNE: 
or like, or like the kids opening the presents, yeah, for those little eggs. Yeah.

ATTILIO: 
That’s so weird. But they, but they understand. They recorded in this rear, this full on surround sound. And you put on these heads, well, people like, it gives a soothing feeling to be hearing like a saran wrap crinkling,

ADRIENNE: 
you know, um, speaking of that, yeah, if you go to our website, you know, you can get an instant offer on your home cash offer, yep, and value. So we’ve got some really cool tools on our website. So go to Team lally.com you can find out what your home is worth and get an instant cash offer. Now

ATTILIO: 
let’s say you don’t want to click on it. You just like talk story with us. Call Adrienne or myself. Yeah, all we need is your property. That’s it. All we need is your property address. We’ll ask you a couple questions. We’re going to talk story with you. I will submit you to some of my dad jokes, because I got to work on my material with you people. And we’ll take you through the process and give you a rough, rough idea. Because, you know, everybody’s like, you know, let’s talk about AI for a little bit. Everybody’s like, AI this, AI that, AI this, AI that. And we’re just like, hey, AI is not the panacea. It’s not going to be solving all your issues. It, it, it makes components or functions of your day to day, life and or business easier. But it’s not the end all solution. Well, not yet. So it’s like,

ADRIENNE: 
like, what, what you put into it? Yeah, you’re, you’re going to get back out. Yeah,

ATTILIO: 
garbage in, garbage out, good stuff in, good stuff out. But we’re kind of like your human AI for your home value. Just give us a call. We’re going to take a you know, Adrienne and I, we personally have we sold the home pretty much in every zip code on Oahu

ADRIENNE: 
Yes. And I want to talk back to the this human AI thing. So just the other day, we were in Wahiawa beanie with some clients. And I love these kind of neighborhoods because they’re not the cookie cutter type neighborhoods where, like, you know, you put it in Zillow, there’s estimates, and those estimates can be pretty spot on when you’re in those, you know, just the planned, planned community, like

ATTILIO: 
the ocean point of a beach, where they have the 300 different plans, yeah, 500 607 series home, everything is all the same cookie cutter. You know, people do a couple of upgrades here and there, but that would say, well, you’ll be okay with the logarithm. With

ADRIENNE:
this, the logarithms can be pretty, pretty close. Now, when you go into these neighborhoods where things are all over the place, as far as the size and the types of homes and like the just the this footprints. And

ATTILIO: 
I will tell you, you know why it’s different, why there’s all over the place, permitted, not permitted areas that too,

ADRIENNE: 
because it’s all this particular home, though, has all its permits. So I don’t see, I don’t

ATTILIO: 
think it was like, I don’t think it was the head of DPP, and if it was, it wasn’t you, and if it was, it was, but anyway, there’s an estimate that almost 80% of the dwelling is on Oahu have some kind of non, non conforming, non conforming use, or unpermitted areas, or this or that. Because everybody get one cousin uncle, and they don’t want to do the permits, and they’re like, add on this and add on that. And so you just, there’s just so many variables that you’re going to need a seasoned Realtor with discernment to go in and and make the pluses or minuses. This isn’t there, because I will tell you right now, let’s say all I don’t like that salesperson. I just got hire one appraiser. Well, here’s what we do know, there is a portion of that appraisal determination that is subjective. What does that mean? Subjective? Adrienne,

ADRIENNE: 
it’s their opinion. It’s their opinion. But then there’s also like, you know, you make the adjustments, yeah, up and down. And there’s certain, you know, upgrades that they give, you know, the the amounts that those adjustments should be, but those adjustments are going to vary from neighborhood to neighborhood, yeah? So, for example, if you are oceanfront in Makaha versus ocean front in Kahala, yeah, you’re gonna have a different number that’s gonna come up. Yeah? And

ATTILIO: 
you know, you’re gonna have different views. You’re gonna have different views. You’re gonna be like, Oh, I got one view of the park, but the park is all bus up and stuff like that. So that may not be a plus, yeah, and or you have the view of a golf course, but where you at on that golf course all the terrible golfers keep whacking your house with the golf balls.

ADRIENNE: 
Thankfully, at my house, I’ve only got, I’ve only lost one window. Solar Panel got taken. Oh yeah, and a solar panel, that’s it. But, like, they have to be super terrible to hit my house without, like, how it’s positioned, yeah, and twice, so in like, 16 years. So

ATTILIO: 
Well, those are all the things that we ask and we go through and all of those different, you know, it’s amazing how much information you need to know as a as a realtor, especially if you’ve been doing this long, you know, I feel like I’ve learned about all the different types of construction, you know, post on Pier, single wall construction, plantation style, home, tongue and grew can it. You know, I was, I was weird

ADRIENNE: 
about the concrete. Homes concrete. We have a listing that’s all concrete. Sally

ATTILIO:
concrete. They have their own bunker so. But, you know, for example, like Canaan. Roofs. I’ll leave you with this. Do anybody know what a Kenic roof is? Volcanic is made from sugar cane poke back in the day when we were processing a lot of it and they converted it into paneling, and that was used for the roofs. So if you’re in one of those houses and you’re feeling like, oh, I need one sugar rush. Take a chunk out of your ceiling and start shooting on them. Just go like the ceiling. Go lick your ceiling. It’s like Willy Wonka’s house. So weird. But anyway, those are those. You can recognize them by the exterior and what they are. So it’s just those kind of obscure things that we’ve learned over the years and in hundreds and hundreds of transactions. What about cesspools? We did a video on cesspools too recently, something tanks and sewer systems, digging. You went digging the other way, sewage pumps. I learned about sewage pumps. Sewage we have

ADRIENNE: 
some videos on that, so you can, like, log into our Facebook or YouTube and learn all about the cesspools and sewage pumps and poop grinders. You could see atilio digging a hole poop grinders.

ATTILIO: 
I’m like, oh, Santa. Like, if you want developer, you sitting on Santa’s lap? Can I get a couple poop grinders from Christmas? That depends. Are you a good developer? Are you on the good

ADRIENNE: 
list? Wait, why would you need a poop grinder, though? Because

ATTILIO: 
so if your home is below grade, which means it’s below the level of the street where the sewer system is, poop does not flow uphill. And if it’s all, if it’s all kind of thick, you need to grind it up little bit, then it’s pumped uphill. That was completely gross, but it is true, and that’s that’s how it is in somebody’s houses. Can I get a poop grinder for Christmas? No, we gotta cut I cut ourselves off before the show goes sideways.

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