Podcast - 11/24/23

🎙️ Tune in to our latest podcast! We're diving deep into the importance of having a signed representation agreement with a licensed real estate agent. 🏡 Discover the ins and outs of fiduciary duties and what they truly mean for you. Get ready to make informed real estate decisions! 🤝

But wait, there's more! Don't miss our fantastic "House of the Week" 🏠 featuring a newer-built modern farmhouse in Charles Town, WV. This gem is located in the gated Beallair Community and boasts three bedrooms, each with its own full bathroom, luxury vinyl plank flooring, a stunning kitchen with beamed ceilings, top-of-the-line appliances, and so much more. It's a must-see! 😍

Join us for valuable insights and exciting real estate opportunities! 🌟 #RealEstateAdvice #HouseOfTheWeek #ModernFarmhouse

Tom Whalen:

All right. I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

Of Jay Day and the Day Home Team of Real Estate Teams with our weekly real estate podcast telling you everything, updating you on the industries. We getting ready to wrap up 2024. What are we going with? Oh, I'm sorry. As we're getting ready to wrap up 2023, I'm jumping the gun.

Jay Day:

I was like, man, Tom, are we,

Tom Whalen:

The holidays are all coming down on us too fast. I'm not quite sure which one we're celebrating.

Jay Day:

Yeah, so I wanted to talk about something that came up recently and tie it into something else. It's a legitimate thing that people don't understand. So I have a client looking at properties and he originally went to his bank to try to get his mortgage, got everything approved, and I said to him, I'm like, okay, great. Are you happy with everything? Let me get a breakdown so I can see what the fees are and make sure it's accurate. Make sure we're in good shape. So I email the lender at the bank. They refuse to send me a fee sheet showing the breakdown of what the costs are.

Tom Whalen:

Is that standard procedure something that you've asked for before?

Jay Day:

Yes. I've never had somebody say no. And what I had to explain it, it goes into, and again, this is me representing a buyer. So this is not me representing a seller. I'm helping a buyer now. And it goes into the reason and what agency is, and the confusion that goes into the public. So you would think you're going to the bank. The bank is going to take good care of you and make sure you're, especially if you're banking with them, right, you think that they're on your side. What people don't realize is if you actually have a agent who you have signed an agreement with and they are representing you, whether it's on the buying side or the selling side, they are a fiduciary. They have fiduciary duties. That's the same as if anyone here has a financial planner, someone that's handling their finances. They are a fiduciary. What does a fiduciary mean? For people that don't know, basically they have to act in the best interest of the party that they owe those fiduciary duties to, meaning you can't put your own personal finances ahead of somebody else's. So that loan officer has no fiduciary duties to that person. Their loan officer works for the bank, and the bank is who their loyalty. And they can't lie. They can't be deceitful, but they do not have to work in your best interest. So I got into this conversation with the client and he said that the person got extremely, he said, just send it to him. And I said, here's the deal. I need to make sure everything is right. What happens if your estimate, and it's not just about interest rates, but what if your estimate has wrong figures for the taxes? What if it has the wrong figures for HOA fees, has wrong tax information, it has wrong insurance numbers. If that happens, you're trusting that that number is accurate because you're making a decision on what your mortgage payment is. Why a lender would not want to share that with your agent makes no sense to me. So I wanted to make it clear to people, and this is the difference. So if you call in and you just go look at a house with an agent and you have no relationship with them, they have no fiduciary duties to, they have to be honest. There's all of these things they have to be, but the fiduciary duties are when you're taking care of your client. And that is one of the biggest things in real estate and why people should have their own agents. Because when they enter that relationship, then you have fiduciary duties and responsibilities. I'm not going to promise that every agent understands that or does that. I can guarantee you that's how our team operates and it's one of the most important pieces in my opinion, because you don't want someone who, we'll talk about new construction. You walk in and the person in the model home, they're super nice, they're super friendly, they're doing all these things, but their duty and loyalty is to their employer and that is the builder, not you. So again, not walking into something with representation can create all types of issues. That's why if you're in a divorce situation, you don't have most people anyway. Attorneys will be like, I can't represent both sides. I'm not doing that because I have to be responsible and I have fiduciary duties to my clients. You can't have fiduciary duties to both sides. So again, I just thought it was really important because I've been doing this almost 20 years, 19 years in this business and I've never had a lender say, no, I'm not going to send you that.

Tom Whalen:

Do you think that's a one-off or do you think that's going to be a pattern?

Jay Day:

I don't know. And to me, the big thing is maybe there's a fear that I'm going to have them shop it or do something else. I don't know. But my job is to make sure everything that my client does is in their best interest and their best financial interest. So part of that job is to make sure that the lender is not doing something or causing or adding extra fees that are not necessary as well. And we have lenders we work with, but it doesn't mean, so let's say that somebody was dealing with this loan officer at a bank and then they talk to the loan officer we recommend. My job is to tell the client, go whoever can get you to the table and can give you the best situation for yourself financially. I don't care if you use the person that I recommend or somebody else. We have to use the people that are going to take care of you and get us to where we need to be. And for someone to be shortsighted and not realize that as agents we should be doing this, we should be going above and beyond for our clients because it's part of our fiduciary duties. And that's why I take this side. So very, very adamant and strong opinions about everybody having representation so that they have somebody working in their best interest.

Tom Whalen:

If you're buying a home, you want that guy in your corner. If you're selling a home, you want this guy in your corner, all the ins and outs, everything in the industry they have seen before. You're talking over my head with a lot of this stuff, Jay. That's why I would call you to buy or to be responsible for my fiduciary duties, buying or selling. I want you handling all of that.

Jay Day:

Well, and in your situation, when we worked with you, I did work closely with the lender to make sure,

Tom Whalen:

I know you did.

Jay Day:

Everything was taken care of.

Tom Whalen:

You always do. And to everybody I know you've worked with, you've come through for them, you've never let any of them down.

Jay Day:

Yeah, I take our responsibilities and our job seriously. This is a career for us and we do get a lot of business from past clients, repeat clients, and it's because they always realize we are putting their interests ahead of everybody else's. And that's what we're paid to do. So you ready for the house of the week?

Tom Whalen:

Always.

Jay Day:

Alright. 59 Dunbarton Street in Charlestown, West Virginia. This beauty is listed for $775,000. It's a newer built home without the weight. It's a modern farmhouse. It's in the gated Bel Air community. It has three bedrooms and each have their own full bathroom. There's luxury vinyl plank flooring throughout the home. Beam ceilings in the kitchen, top of the line stainless steel appliances, high end white gloss cabinet finish, quartz waterfall, kitchen island. Do you know what I mean by waterfall? It's the ones where actually the counter even drops down,

Tom Whalen:

I've seen this before.

Jay Day:

To the floor. Very, very nice looking. A gas cooktop, builtin wall oven and microwave. Two gas fireplaces, smart home devices. It has a large covered and screen trek deck. Beautiful sliding barn door in the office, hardwood stairs. Built-in sound system. All rooms wired for ceiling fans. Rough in car charging outlet if you happen to have an ev. There's also a two car attached garage. Whole house water softener and reverse osmosis drinking system. And one of the neat things about this community, it's maintenance-free outdoor living. The actual community handles lawn cutting in the front, the back. All lawn maintenance, including pruning, dealing with the flower beds, weeding, and there is a future plan of a clubhouse and an in-ground community pool going in. It's as close to Harper's Ferry restaurants, commuter routes. This one is a gorgeous, gorgeous home in a great neighborhood. It's gated neighborhood. You can actually go on wfre.com. Look up Tom and Jay's real estate podcast. We have video of this as well. If you like what you see, reach out to us and we'll get you a private tour.

Tom Whalen:

I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

Jay Day and the Day Home Team of Real Estate Teams. We do it every week. Weekly Real Estate podcast. Thank you so much for listening to your friends, all about it.

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