Language in Real Estate : Key terms in Albuquerque’s market

(Transcript Snippet): “Tracy:

We were talking about this over coffee the other morning, right? Like we typically do our morning coffee where we talk real estate.

Tego:

That’s welcome to the Venturi Household. Yes, yes, yes.

Tracy:

We probably just shouldn’t talk about the things that need to be done around the house. We’ll just talk real estate. But we were talking about all the words that, you know, we weren’t using until recently, very often they weren’t in our general lingo, right? Yeah. Yeah. Well, in one of them

Tego:

Is the word equity Tracy. And that obviously that is a word we’ve used for a long time. And we’ll continue to use in, in the world of real estate. It’s just that equity has exploded in the last year for, for many homeowners

Tracy:

We need to say what equity is.

Tego:

Right. Right. So

Tego:

Here, here’s the, here’s the definition, the value in your home above the total amount of liens against your home liens, as in what you owe, right? What you owe to the bank or whoever,

Tracy:

And you might have a first, a second, a home equity line that you’re using. So it’s everything that you, you have value in above what

Tego:

You have, what’s your equity, right? So,

Tego:

So it, it, it has, I mean, and I know that the study that, that came out and I’ll just throw the stat in here is in New Mexico in the last year was about $23,000. The average homeowner gained in equity,

Tracy:

Significant number for, you know, your personal wealth growth, for sure. And

Tego:

Just the last thing on equity, it grows two ways. One, it grows by just a price appreciation in the market over time, as well as you paying off your principal every month, you’re putting a little bit toward that. So the equity is a big one contingency. Tracy, let’s talk about that one. That one, again, it’s been around, but it’s in the middle of a real estate purchase in the transaction. That’s something we deal with all the time, right?

Tracy:

Purchase contracts have a lot of contingencies in them, right? That’s not just one. It’s not just contingent on selling a house, but there’s a lot of contingencies that are New Mexico purchase contract. There’s a financing contingency. There’s an earnest money. There’s you’ve got a list. Go

Tego:

Ahead. I’ve got a list. So there’s an appraisal contingency. We’re going to talk about appraisal in a second. Assessments and titles. So that’s different title work to find out what what’s going on with the property in, in ownership. And if there’s any assessment against the property, meaning stuff that needs to get paid. There’s an insurance review. That’s a really big overlooked one, right?

Tracy:

Right. For prop, for property insurance. Right. Making sure that the house, isn’t what we would call a lemon. Right. Just like the old days, you know, we don’t hear that about cars anymore. Really cars being a lemon. I’m sure it still happens occasionally, but how’s, this can be sort of a lemon. They, the insurance industry feels like if you’ve had a couple of claims on a house there’s wrong with the house. Right. So, and that stays with the house even when you sell it.

Tego:

Yeah. So insurance review is one of the contingencies. And then, and then there’s a bunch of other things that the buyer has the option to review about the property.

Tego:

Right. Right. I mean, it can

Tracy:

Be from septic, well, water, all sorts of different things that it could be. Right. Right.

Tego:

If it’s a solar system, right. If you’ve got a solar solar system that sounds like, you know, pretty Spacey, a solar panel, photo-voltaic electrical generation system on the house. We did have a lot

Tracy:

Of solar space type things going on in New Mexico where the last Texas,

Tego:

Texas. Yeah. Speaking of space. And then,

Tego:

You know, I think one of the, just, just to wrap up this, you know, on contingencies, one of the biggest one is the inspections, the actual inspection of the property, as well as the survey of the property. Right. Another word

Tracy:

That we’ve used a lot this year, that wasn’t common is escalation, escalation

Tego:

Elation, or, or what we call escalation clause. What does that mean, Tracy? So an escalation

Tracy:

Clauses, when there’s multiple people wanting a home and somebody might say, I’ll pay X over, up to a certain dollar amount and they’ll escalate their offer based on what the other offers are.

Tego:

Yep. Yeah. So that’s, that’s become very common now in, in, you know, if in this competitive market, if the, if you’re writing offers. So let’s talk about the last one. Okay. Virtual showings, virtual showings, obviously that’s an that’s that

Tracy:

Started like last spring, pretty much,

Tego:

You know, we had done that before just with FaceTime and other stuff like that for COVID. But now it’s become much more common where somebody will want to see the home, but they can’t either they’re out of state or whatever reason can’t go see the home in person. So the, the buyer’s agent will go to the home and pull it up on their phone

Tracy:

Or the buyer who’s not able to go to the home, just looks at the virtual tour online and feels like they toured it a lot of times. There’s not even a buyer’s agent that goes to the house on their behalf. Yeah. Right. Yeah. There’s a lot of ways to tour him virtually these days. Appraisal,

Tego:

Tracy, let’s just talk about appraisal again. Appraisal has been around forever and first off, what and why on an appraisal? So

Tracy:

An appraisal is for the lender. Typically it’s not usually done with cash unless, you know, the buyer really wants one, but for loans it’s often required so that the lender can get a baseline and feel like they’re making a good loan, that the house is worth what they’re going to be lending on it. Now these days we’ve seen appraisal waivers from some lenders. They have some automatic system where they put the property in the price that’s coming, the buyer’s qualifications, their credit score. It’s not just the house, but the whole package. And they might say, they’re putting $200,000 down. We don’t need an appraisal for this loan.

Tego:

Well, th there is, that’s one of the challenges in our market right now is getting appraisals done. They’re just so backlog can be, can be a challenge. So what about waiving an appraisal and an appraisal gap? Tracy, those are two kind of new terms, not new, but they’re much more commonplace now. So appraisal waiver, what’s that appraisal waiver

Tracy:

Waiver of the contingency. So they’re saying we probably will still need an appraisal, but even if it comes in that I’m paying more for the house and the appraiser says it’s worth, I’m still going to pay the price. We agreed upon

Tego:

The appraiser set the value of the home.

Tracy:

That’s a set up question. I now, so the appraiser gets a copy of the contract, which a lot of people don’t realize. They’re just trying to appraise it for the agreed upon price. But if they don’t see other data out there that it justify it for the bank, they’re going to appraise low, but no, the buyers set the value of home and what people are willing to pay. The appraisal is there to justify the loan amount for the lender.

Tego:

And so an appraisal gap is that comes in. If you have an appraisal come in lower than what the buyer wants to pay or offered. Right. Right.

Tracy:

So we might be under contract for 200,000. The appraisal comes in at one 90. The gap is $10,000. And some of the offers we’ve been seeing lately, somebody might say, I’ll pay 5,000 over appraised value if the appraisal comes in low. So they’re kind of limiting how much extra they might be willing to contribute if the appraisal is

Tego:

Got it. Got it. Okay. Well

Tego:

That was our rundown on some of the terms out there, but if you ever want to talk about you know, some of these terms you hear in real estate and you’re not sure what the heck they’re talking about, give us a call 5 0 5 4 4 8 88, 80 inventory Realty group with Keller Williams Realty. And just on the side note, Tracy, we were talking the other day about some of these terms when you’re talking real estate investment investing in real estate, which is you know, there’s a lot of that going on. A lot of people are, you know, understand the, the, the value of real estate as an investment. I’m a big believer in that myself and you are as well. But the, you know, some of those terms like cap rate, internal rate of return gross rent, multiplier, net, present value, you know, there’s all these different terms. And when you start getting into net world that are, that are just, again, it’s like a whole different world. I

Tracy:

Was going to say, we could do 10 shows on just that world. Right. The, all the other ways to look at it and all the other terms and the creative ways to finance deals and just lots of lots more about that. Yeah.

Is Albuquerque’s Real Estate market slowing down?

(Transcript Snippet): ” Tego: Tracy. I want to just go back to the thing about is the market slowing, because like I said, there has been some news stories out there implying that maybe the real estate market’s slowing down and it really isn’t even nationally, even in some of these other markets, because w th the story that’s actually out there is that inventory is starting to grow a little bit in some parts of the country. It’s not that the real estate market’s slowing down

Tracy:

Well, and I bet you have stats to prove what’s, you’re about to say, well, what I, I just, you know, it’s that time

Tego:

Of the month where it’s mid, mid month, I wanted to see where we were for July this year versus in particular July last year, because July last year, July, 2020 is when the real estate market just went nutty.

Tracy:

This was right after COVID right? So March, April, may, June, July, all those people, June, June is

Tego:

When all of a sudden everybody decided it was time to buy a house in there. We hadn’t had any listings in April, may of last year

Tracy:

Was pretty much shut down. So I didn’t say

Tego:

Any, it was half the number of new listings. Yes.

Tracy:

My point is July last year, despite COVID was a record month, it

Tego:

Was the busiest closing month on record for the Albuquerque area, July of 2020. Right? Right now, July of 2021, pendings are up 15% over last year, just in the first 15 days. And the number of closings is about equal with, with last year right now, the number of homes on the market, it’s down 23% just versus last year. So yeah, we’re less houses on the market. We’re it’s not slowing down. That’s

Tracy:

Not in our market. No, no. So,

Tego:

And there was you know, I don’t know, I know you saw Tracy, but you all might’ve caught it, that there was a story in the journal this week where Stephen Hanway does the real estate beat, I guess, if you would say, and he called me and got a couple, just, you know, put a few quotes on there. One of them was there’s, you know, like I said, the story that there’s more homes in the inventory starting to come in, and there’s more homes on the market and I cautioned him and I’m glad he printed it, that, that it’s maybe just seasonal cyclical that, you know, we’re going to have a little bit of build this time a year. And I think it’s gonna, you know, just kind of stay flat and probably declined throughout the year. So if you’re out there thinking of buying, if, if you’re thinking that you’re going to wait until more homes come on, the market later this year, probably not going to happen is, is my call on that. So I’ll just say

Eddie:

That. Yeah, because I mean, that wasn’t as clear as that I would like for it to be hearing you. So what you’re saying is cyclically every year about this more homes are basically delivered. They hit the market, but even though those homes are coming onto the market, it doesn’t mean that there’s going to be more opportunity, more houses, more inventory, necessarily that is going to get absorbed right away.

Tego:

It is. And I don’t see generally what happens. Inventory builds up until July, August, if you want to say that, right? So the number of homes available and then come July, August, it starts to drop off all the way through till February. And that’s just a normal seasonal pattern for our market.

Eddie:

Those are free. So I imagine those are kind of presale. Are they not reconstruction training? You brought on new con construction people on board. Several times, you’ve had several home builders who’ve come on. There’s like people beating down their door or something like that. I mean, this is something that you guys work on. You can take people to places where, you know, that inventory is going to be rolling out. And I got to, I got to say, that’s, that’s worth a, what do they say? A bird in the hand? You know, that really is a good opportunity there to jump in. And another reason to pick up the phone and call a Tigo and Tracy Venturi 4, 4, 8 88, 88, that’s 4, 4, 8 88, 88. And we are alive this morning. So if you want to know and get a heads up on where that might potentially could be and delivered, all depends upon the city of your city or Rio Rancho. Just go ahead and give them a call. Thank you for clarifying that. Yeah,

Tego:

No, no, thanks. And I want to just bring in one other stat. I don’t want to, I don’t want to confuse people, but, but again, this whole story of, oh, you know, home prices are going up way too fast, which I would, I would tend to agree with. And, and we’re going to have a bubble and prices are going to explode and go down. And one of the things we have to look at always is supply versus demand, right? That drives everything in, in pricing, on, on any, any product in, in homes in particular. And what I found is right now, we have about 1100 homes on the market in July of 2007. That’s when let’s say the bubble burst back in the day, when, when home prices started to decline in 2007, at that time, we, we didn’t, I’m trying to say this. So so it’s more succinct, succinct, and not, not complicated. There were S we had over 7,000 homes on the market, in the greater Albuquerque area in July of 2007, when prices started to go down

Tracy:

Another way to start to shift until we had over 7,000 houses.

Tego:

That’s a great way to put it. So, so if you were to just go with that, that one metric, and I know that’s just one thing we would need six times more inventory that was, we say, you know, homes available on the market than we currently have before we start to see a shift in pricing.

Tracy:

And we could see a shift in pricing well, before that, of course, but that’s what the history was. We were over 7,000 houses on the market before we started seeing prices come down. Yep. Back in 2007. And

Tego:

I’ve been saying this now for month and month, I keeps saying we could have four or 5,000 homes, 6,000 homes on the market tomorrow, and still not be in a, a buyer’s market.

Tracy:

And, you know, it could shift, let’s say we have 4,000 on the market, but interest rates change drastically. We could see price changes. We just know from what we hear politically through the economy that they’re not planning to do major changes in, in the interest rate. Right. So that’s part of our, where we were going. We’re going to talk a little bit about the second half of this year since we’re into it now, right?

Tego:

Yeah. And, oh my gosh, you know, how do we do this? We go so fast. We’ve just got so much to cover. So Tracy, let’s just talk about a few predictions from the experts. I’m going to say that the air quote experts. Yes. I think 2020 nevermind. I’m not going to go there. I was going to talk about experts in, in the year 2020. So what, what are the real estate, you know, prediction makers, you know, what are they saying about the market tracing? What are they saying about mortgage rates? Let’s say,

Tracy:

No, they say mortgage rates will likely increase a little bit by the end of the year, but a little bit, we’re not talking anything major. Right.

Tego:

And based on the announcement this week, it doesn’t look like there’s going to be much. I mean, I know that the fed rate is not necessarily tied to mortgage rates. It’s more about the 10 year bond yield that, that ties to mortgage rates. But, you know, as long as the 10 years, under 2%, we’re still going to see really low mortgage

Tracy:

Rates, right? Another end of year price appreciation, Tigo

Tego:

Price appreciation from a lot of the different groups out there. So Zelman and associates, which is one of the big consulting firms in the real estate space there, they’re seeing 10% year over year for 2021 nationally 10.6% mortgage bankers association saying over 10% national association of realtors, our association is saying 9% Fannie Mae and Freddie Mac. Fanny’s got it at 8% Freddie, Mac’s got it at 6.6. So, you know, everybody is predicting an increase. I saw some numbers from another consulting firm just this week. And they’re seeing 20% year over year increase in median price, which is a little bit different than total price appreciation, but you know, home prices are going up and, and, and, and back to that whole thing about the market and the market slowing, I think the one thing that will slow this market down is we just get way too far ahead of ourselves on home prices, where people can’t, you know, they just can’t make it work. You know it, and then you got this whole thing, Tracy, it’s like, well, everybody’s got lifts somewhere, either got to rent, or you’ve got to buy, or you got to live with family or whatever, right back to the whole conversation about, you know a multi-generational

Tracy:

Housing. Right. And what we know is rent, rent rates have gone up significantly too. So even though the home prices have gone up, it’s still mostly cheaper to buy than to rent for the same type of house. There,

Tego:

There is so much research and there’s so many good studies that talk about how, you know, home ownership, let me put it this way. Home ownership, owning a home is affordable housing compared to renting. Right, right. Plus building a nest egg.

Tracy:

What about inventory for the rest of the year? I think nationally, yeah. What the experts

Tego:

Are predicting is nationally that there’s going to be a slight increase in the number of homes coming in into the market. We’re, we’re seeing that in a lot of other parts of the country I’m going to make the call here locally that we’re going to go through the end of this month into August. Inventory is going to stay flat, maybe increase a little bit and then start to decline.

Tracy:

That’s my call. Okay. bottom line, bottom line

Tego:

Is that, you know, mortgage rates are going to stay flat or go up slightly, no big spikes in the future. Inventory is going to go up slightly, but, but not enough to really create a, a buyer’s market, you know, unless, you know, some, some places around the country, but we’re not seeing it here. And, and for the most part, everybody’s pretty optimistic about the real estate market.

New Construction: Are there enough Albuquerque homes on the market?

(Transcript Snippet): “Tego:

Tracy. Let’s talk about new construction and you know, people hear it. Well, there’s not enough homes on the market. And the first thing everybody would would assume is, well, why don’t we just build more? And, and we are, right?

Tracy:

We really are. A lot of new neighbors

Tego:

Say, we, I mean, we’re talking local, our community Albuquerque. There’s a lot of new construction going on. It’s honestly not as much as we probably need, but it is happening. So let’s talk about some of those communities,

Tracy:

Tracy. Sure. So a lot of new neighborhoods have come on. Okay. So, you know, we’ve got a lot of great builders, local and national. So we’ve got Dr. Horton. We’ve got Pulte, we’ve got Hakes brothers Twilight, LeBron ISO. Westway still Brook. I could

Tego:

Go on. I know you’re going to feel bad because you’re going to forget somebody. Yeah. They’re

Tracy:

All our friends. We work with new construction all the time, which reminds me. Of course, we can help you find new construction. A lot of times people drive, they see a sign, they stop at one, they buy a house, but they had driven a half mile further. There’s probably another builder there that they could have also considered. So always great to hire a realtor, to help you with your new home communities, as well as resale homes. So think about the different parts of town Tigo. I was in Northeast Albuquerque and still Brooke is doing a new neighborhood. That’s about to be online right at Alameda and Louisiana. Okay. Great location just west of the tin can alley area. Very close to middle and elementary and high schools that people really like. That’s coming online, new homes some others in the Northeast Heights that we know about for sure. The others we have

Tego:

Well, there’s the Abrazo community by the balloons.

Tracy:

Right, right. I was thinking of what, the name of that and still broke is Savannah. And I drove by the walls are up, it looks like the pads are ready to start construction. They have a, an, a model home office nearby. So you can stop in there, but there’s others. Right? So obviously one of my favorites is Dr. Horton’s doing a neighborhood infill project. So in Vista Del Norte day in north Rio, Rancho near 5 28, and Idealia right by the judicial complex Vista Del Vista and try to, as the neighborhood there, and it’s half acre lot,

Tego:

You said, Vista know like going, I got lost there per se. I know two different neighborhoods and

Tracy:

Try to north Rio Rancho, right at 5 28 and five 50, basically. Half-Acre lots underground utilities, paved streets, very quick to get out. Once the construction at five 50 and 5, 28 is done, it’ll be quick to the freeway. They have picked up a bunch of half-acre lots there and they’re starting in four hundreds on a half acre lot. And they have an amazing multi-generational floor plan, which we know has been popular. Lots of really great floor plans. They only have a few lots though. So if that neighborhood interests, you call us right away.

Tego:

You said that. So let’s just define that may be people have not heard that before the multi-generational home or multi-generational home designer floor plan. What, what exactly are we talking about?

Tracy:

Hello? Multi-Generational could be two generations of family living together, right? So you’ve got sort of a, a suite where maybe it’s a room for like living area, as well as a bedroom and a kitchenette in the same house with a full kitchen. It, they vary from floor plan and builder to builder. I showed some this week in Corollas and it was different, you know, custom homes, all with different setups of how it, how multi-generational works. It can be, you know, siblings of the same era that want to live together and both want to have their space as well as combined space. It’s, it’s been pretty common. Sometimes it’s grandparents living with their grandchildren or grandchildren living with their grandparents or parents with children or parents with their grandchildren, but it’s combining households under one roof.

Tego:

So Tracy, there is just to wrap up this conversation about new construction. There is new construction,

Tracy:

Sorry. There’s a couple new neighborhoods I really want to talk about. Right. I know we’ve got time. So last Luna’s right. Leslie, this has been very hot houses selling quickly there. There’s a new neighborhood also Dr. Horton. Yep. West of I 25, basically across from all the Facebook buildings. Yeah. So right. When you get off the freeway at the main exit for Las Las Lunas and you go west on the south side, there, we have a neighborhood, right. That’s very established. And then just past that, we have Jubilee, which is the active adult 55 plus. And then if you go west just a hair further, we have the new Dr. Horton neighborhood with some beautiful home floor plans, brand new, just breaking ground. It’s a brand new community. You know, really quick to the freeway going to be great. Also building there’s several other builders building in Los Lunas from Eastland Hills to right off the freeway to the west. Hakes civic homes, D R Horton, lot of, lot of different builders right there. Another one is Mesa Del Sol, which has really taken off lately Tego and Mesa Del Sol is just south of the freeway. So a lot of people that work downtown, uptown, the hospitals, UNM really liked Mesa Del

Tego:

You know, what’s interesting, Tracy is you think about Mesa Del Sol and Mariposa, you know, extreme geographically, you know, in, in our community. But those were, were big master plan neighborhoods that were done, you know, kind of toward the, the end of, of the market, boom, back in 2000

Tracy:

Early two thousands.

Tego:

And, and, and so for the most part, like Mariposa, you know, there hadn’t been a lot happen in there in the last 10 years, same thing. It Mesa Del Sol. Now that we, we have a renewed demand in housing, not enough supply, these neighborhoods are really, really kicking in Mariposa in particular,

Tracy:

Right? Oh my gosh. I’ve been out there quite a bit lately, which is Northwest Rio Rancho by the armory sort of, and, you know, Mariposa was developed by the same developer that did high desert in Northeast Albuquerque really well-planned with a beautiful community center, different neighborhoods within the neighborhood. So they have a state properties where you could buy a piece of land, an acre or more and build your estate home. Dr. Horton’s there twilights there Poltys there, I’m sure there’s others, but you know, it’s some great views back to the mountains in the city. You know, if you’ve never been in north Rio Rancho to look back at the San Diaz, you’re missing out. I know when we’re in the Northeast Heights, we think we have the best view of the mountains, but getting to the other side of the river and looking back can be pretty spectacular.

Tego:

There’s some, there’s some gyms all over for sure. Tracy,

Tracy:

The trails, we’ve got a lot going on there as well. Hakes brothers Dr. Just picked up some, Poltys got a new neighborhood coming a couple. So, so if you’re thinking new construction, it’s a great opportunity for buyer fatigue. So I just want to tie it up with that. Right. getting a new home, being built for you, gives you the time to know I have a house that I’m moving into and then we can time the sale of your home to coincide. And we have arrangements with most of these builders where if we guarantee the sale of your house, they will move forward with building your new home contingent upon your house selling. And we have a program where we can do that for people. And it’s worked very successfully.

Tego:

Okay. Now to wrap up the conversation about new construction, if you visit our website at welcome home, abq.com, we do have a search on there. If you click the search menu, there’s a place for new construction. You can see all the neighborhoods and communities around the city and general price

Tracy:

Ranges. Exactly,

Tego:

Exactly. And, or probably the best thing to do. Just give us a call. 448-8888 Venturi Realty group with Keller Williams Realty. And we can help you look at all these different communities in and see what is going to work best for you.

Buyer’s Fatigue: How it affects the Albuquerque Real Estate market

(Transcript Snippet): “Tego: For sure. So the Tracy let’s, let’s talk about this term. That’s now kind of come into the mainstream is buyer fatigue, right? When we’re talking about real estate sales, and if you guys haven’t been listening to us, oh, by the way, we’re in show three hundred and seventy three, three seventy three. You know, it’s interesting because of course, when we started the show, the market was a very different market than it is today. You know, it was definitely a sellers excuse me, a buyers market at the time,

Tracy:

Eddie was a lot different radio station then to think about how his station has grown and his listenership and his just everything about what he’s done socially on social media and affecting our market.

Tego:

Things change a lot in five years, six years, seven years, eight

Speaker 3:

Years. How long your, I don’t remember how long.

Tracy:

I think it’s almost eight years or something. Yeah.

Tego:

So by fatigue. So this is a new term, you know, how terms come up and all of a sudden, now everybody’s saying it it’s buyer fatigue, where, where buyers are frustrated, they put in multiple offers, right, Tracy. Right.

Tracy:

And it seems like, you know, they might have missed out on three or four houses so far, and they’re thinking I’m going to just throw in the towel and wait for the market to shift. And we’ve been talking about this with our team, with the whole real estate community. Don’t throw in the towel. If you’re looking to buy a home, don’t throw in the towel, don’t let it frustrate. You, let’s get you into a house. And there’s some of the things that we do to help buyers. And we’re going to talk about one of those things, which is new home community. Yeah. We’ll

Tego:

Get into that. There were the, I was in a mastermind group here earlier this week with a bunch of other realtors and, and there was a conversation cycle. The market’s slowing down. We’re only seeing five offers, not 20 offers. And, and, and that may sound a little funny, but I think what’s also happened in our market. Tracy is both the, the buyers that are, that are out there are a little better educated, kind of understand what’s going on in our market now, right? A year ago, 10 months ago, you know, things were pretty, pretty frantic. And now everybody’s a little more up to speed on how to work in this particular market condition, including the real estate agents. And there are some real estate agents that maybe hadn’t dealt with as many transactions as we see in how to work through, you know, what’s going on in our market, where we have super low supply, super high demand. And you know, people really want to get into a house and they’re having a hard time finding it because there’s just not enough homes on the market for there are for the number of buyers that are out there. Right? So I don’t buyer fatigue is, let me just wrap this up. I don’t think, I think buyers are understanding what type of market we’re dealing with in right now. And if, and if you want to get a home, you’re going to have to adjust to the way things are right now,

Tracy:

Those things are to have already started working with a great local lender, have already had your credit check tab, had your employment verified, have already supplied some documentation. So the letter you get from a lender is a very strong lender letter, not a based on what they told me. They appear to qualify.

Tego:

They’re basically pre-approved versus pre-qualified

Tracy:

Very different things. A very strong lender, typically local that has a reputation to uphold is holds a lot more weight than an out of area lender, for sure. But there’s lots of things. So we’d be happy to talk with you about it. If you want to know how to position yourself to be a strong buyer, besides just, you know, money wise and price wise, right.