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Home Buying in a Seller’s Market

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
June 14, 2021 8:03 am

Home Buying in a Seller’s Market

MoneyWise / Rob West and Steve Moore

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June 14, 2021 8:03 am

It’s a seller’s market, so home values are sky high right now.  And quite often, sellers are getting multiple offers and quite a bit more than their listing price. On the next MoneyWise Live, host Rob West will try to level the playing field a little with some tips for buying a home in a seller’s market. Then he’ll take your calls and questions on the financial matters you’d like to discuss. That’s MoneyWise Live—where biblical wisdom meets today’s financial decisions, weekdays at 4pm Eastern/3pm Central on Moody Radio.

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Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah where in the midst of the wildest real estate market anyone is seen for a very long time since seller's market of forests and houses are selling like case, I am Rob West home values are sky high right now and quite often sellers are getting more than the list price so well try to live in Plainfield today was to provide a home in a sellers market is on your calls and questions 800-525-7000 1900 525-7000. This is moneywise lie the five okay so we know why the real estate market is the way it is in its basic economics, high demand for houses and very low inventory. It will take the market sometime to correct itself but in the meantime we've got an awful lot of buyers chasing after well, not a lot of homes houses are going under contract within hours of being listed often for more than the asking price bidding wars are breaking out in some cases buyers are simply knocking on doors and offering people a huge amount of money for their house, even if it's not for sale. So how does the average buyer compete in a market like that well today have a few tips to improve your chances of making a successful offer and let's dive in.

Here is been the first one and it's to understand that you're in the sellers market in a really strong what that it changes the dynamic you see in normal times, you'd make an offer on a home below the list price and below what you're willing to pay. Well that won't work in the current climate, you gotta make a strong offer first with your agent.

Look at the comparable sales are what we call the cops in your area. If you see that houses are selling for the list price or above, you'll have to make a similar offer right out of the gate. You probably don't want to start with anything lower than the list price then be prepared to go higher if there are multiple bids but only up to your predetermined maximum offer.

That's when you stop bidding and start looking for another house. If your offer is declined for any of this to work, you've got to give yourself margin for bidding. If you determined beforehand. Let's say that the maximum you could afford is a $250,000 home. Well, you shouldn't look at anything listed above say 225,000 and don't assume you can afford what the lender says your quote qualified for the mortgage payment should be here. It is no more than 25% of your take-home pay. So now you giving yourself margin. In case you have to bid higher than your initial offer, but you should know that the sale even in this market doesn't always go to the highest bidder. You can do a few other things to make sure your offer is more appealing. For example, a putting down a very healthy earnest deposit to show your serious if earnest money is typically 20,000 in your area but 30,000 also minimize or eliminate any contingencies on your offer. The most common contingency is selling your home first. If you have to sell a home getting noncontingent contract on it first before making the offer on your next house so you don't need to have that contingency that you can also shorten the amount of time you're asking for a home inspection. You can time the closing to fit the seller's needs and even offered the seller more time before having to move out if that's desired, but you can do all of those things have your offer accepted and then run into a huge stumbling block. That's common in a strong sellers market and that's the dreaded low appraisal. This happens when home values rise rapidly as selling prices get ahead of what appraisers are used to seeing in that case, the appraisal comes in below your accepted offer and in the lender won't accept or approve the loan. Now what well you have two choices. You can walk away from the deal. Or you can increase your down payment. To make up the difference between the appraisal and the agreed upon price and of course we always recommend that you put down at least 20%.

To begin with, so you can avoid that dreaded private mortgage insurance.

The most important advice that I could give you, though, is that you not get carried away in a bidding war and end up with a monthly mortgage payment that stranger budget understand that houses have gotten a lot more expensive and what you thought you could afford last year may well be out of reach. Now also you may need more cash on hand to get to the closing table than in years past when one final thought. There's nothing wrong with waiting six months, or even a year see if things cool off in the housing market is red hot right now but it can't stay that way forever. Proverbs 19 to comes the minuses desire without knowledge is not good, and whoever makes haste with his feet. Mrs. calls and asked 800-525-7000.

That's 800-525-7000. By the way, you can call that number 27. This is moneywise lie with the Bible is a financial advisor might just around the corner with us today and moneywise lie taking your calls and questions. Phone lines are open 800 525 700-525-7000, and by the way, that number is open 24 seven. If you don't call during the broadcast.

You can actually leave your question. Some from her team will actually call you back and will try to get you scheduled for future broadcast. I would love to hear from you today go live and in person with your questions were to apply God's truth. The principles we see in God's word to what's going on in your financial life.

And here's the big idea.

You know it's not about just managing money so we can have more of it.

It's not about building bigger barns. Remember in the Bible we see that the person who tried to build bigger barns was called a fool. We certainly don't want to be that here's my experience.

My experience is that your financial journey is one of the key ways God shaped your spiritual journey. So if we recognize beyond giving our lives to Jesus and trusting him as our Savior. Having a personal relationship with him. It's then about stewardship about managing everything God has entrusted to us including his money, but also her time in our relationships. All of it for his glory and according to his purposes, but this area of money as I believe one of the chief competitors to us surrendering full Lordship to Jesus and we see that time again in the Bible you know you can't serve God and mammon or money right we see these two ideas next to each other and we need to choose the Lord as the center of our life.

But our culture says that we can find fulfillment and satisfaction through things. It's just not true. And so when we see money as a tool and put it in its rightful place as God's resources that we are to manage for his glory and according to his purposes.

Then it changes everything, because the money is then helping to support what's most important to us, our values, our convictions and where God is taking us while we want to find God's heart and all of that as we think about what lifestyle he's called us to the next home were going to buy which is where we started today how we should approach saving for the future and all we should be giving. In fact, we should start with giving before we even determine our lifestyle spending all of that, I believe we can bring under the Lordship of Christ.

And here's the great news there's 2300 versus concussions word that deals with this topic. So we have all kinds of principles to draw from. Let's apply those to your financial life today. Again, here's the number a few lines open before he died in 800-525-7000 just a moment working ahead to Florida. But first, Indianapolis, Indiana. Bill your first call it anyhow can help user yes or my wife and I are trying to make it a better time to go and and take some money that basically liquid out and buy property three years before actually looking at moving and building on our property because of the worries of the possibilities of investing it and getting taxed heavily on it. If we was putting in some sort of investment account with the current political outlook. Yeah, I think there's a couple of things going on here. And clearly there are proposals from Pres. Biden about increased taxes, both in terms of income taxes and capital gains. Although the proposal and may really would only apply in terms of the capital gains increases to those with more than $1 million in income.

Now whether that remains to be the case or whether there's changes, and it affects folks with less income remains to be seen and whether it will pass and all, but it called for increasing the top capital gains and dividends rate to 39.6%, which is obviously very very high.

The outside I think you got that going on and then the second thing is just keep in mind what we started with today is this idea that the housing market is red hot national we were seeing the latest data says it's about 6% overvalued and you might say. Well that doesn't sound like much. Well the idea is that there is very low inventory with a lot of demand right now for a variety of reasons, but it's still overvalued. And so, although I don't think were to be in for anything like we had no way to know nine, which was a whole set of issues that don't exist today with the credit crisis.

I do think were going to see a cooling off of the housing market that could cause these sky high prices to take it a dip now, could they continue to rise for a year or more before that dip sure but I think you know, this idea that you know you're buying at certainly the top of the market, it may still have some ways to go here but I think given that you've got these three years and we know that we've got a lot of debt in this country. We've got some inflation concerns right now it would got a stock market that's in overvalued. We got housing market.

It's overvalued.

I think in I'm not gonna predict what happens because nobody can only the Lord knows where it's going from here. But this idea that you could wait and perhaps buy it when it's a little closer when you actually plan to use it probably makes some sense for me because I believe in a we will see cyclical rollover of our economy and in the stock market unless we've Artie started new bull market phase which sunken can argue.

I think we probably have some some room to see a downturn here before we enter that phase and I think the housing market could be a part of that. So you could find yourself buying something today that a couple years from now let's say you know were headed into a recession and yelling and also in the housing markets taken a dip in and you're losing some value there. So I think that's just kind of all the dynamics you need to look at but I don't see anything today that would meet cause you to say I need to move quickly because of either policy changes or you know what's going on in the housing market, especially if it's not something you're looking to utilize today does all that make sense though Bill. Thank you so much and it really is a concern about with what the amount that we have that we actually go and and liquidate very easily onto a piece of property, and then just kind of sat me to have basically just leave it fat. It was that concern in it. We take that money and get it.

Go get locked into you know into some sort of mutual fund or some for investment account something like that and then have to all of a sudden something presented itself and how quickly that would be for us to liquidate it, and penalties and so forth. It was one of the biggest concerns well you know I'd I totally understand that. Is this taxable money meeting it's outside of retirement accounts. Yes it is okay so that's another side that I didn't address and I think that's a great point. You know if your time horizon is three years or less than it could be less because as you said a incredible opportunity presents itself. Those incredible opportunities are fewer and far between. Just in the real estate market right now, but it doesn't mean it couldn't happen with a three year or less time horizon. I absolutely concur you don't want to be invested in stocks. Now you could say well I'm just moving from one long-term, you know, investment strategy, asset class to another asset class, but you have to recognize it, you're going into the stock market right now you know three years and now we could absolutely be lower than we are right now and you know if we were into a bear market.

We certainly could be, you know, I think if you were fully invested in stocks.

You could take ahead of 35% amine on average that's what we would see for somebody was fully allocated to stocks. If you're trying to pull out you right there in the midst of a bear market and that's obviously not a hit, you'd want to have to take but you, you know, have you be conflicted at that point because you have this opportunity to buy so I think is much as it might pain you to earn 1/2 a point in a high-yield savings account that that's probably where I keep my money just so that you had the ability to first protect what you have, even though you're not growing it significantly. And while you're waiting for that opportunity to present itself in that setting at that with the other side of you know that okay do we go add and by orderly, going at least get it out of the Seder account and move it over to stocks work anywhere you know.

And looking at maybe make you more but the same time. Then you start looking at the risk factors and it's like well it just looking for good fiction advises new outlook on call. Well, I appreciate that and I think you know the time horizon is just not on your side with regard to being fully allocated to stocks right now is much as you might not like to see it just kinda treading water.

I think you know with your plan, which I think is a good one. The return of your capital is more important than the return on your capital so you have the ability to move at the right time and you're not having to sell out to dinner when stocks are down or investments are down significantly so I'd stay the course asked the Lord to give you some wisdom as to the right timing to buy that property and I think had promised a river and that make sense think you are a Bill, thank you for your call today to let you know this is a challenging question that we run into from time to time because so often with money that we know are going to deploy a maybe a few years down the road we think we really don't want to just sitting there, not really earning interest rates are so low and yet as I said so important to match the investment strategy, time horizon, not get ahead in order to take more calls and questions just around the corner.

Someone wants to know about buying a lottery ticket and I'll certainly weigh in on that was more right around the budget with us today for moneywise line, we apply God's truth to your financial choices and decisions are taking your calls today with few lines open. Here's the number 800-525-7000 800-525-7000. We've got the whole host of questions lined up here including this one go next to Miami, Florida Stephanie, thank you for your patience today.

How can I help you there. I own my quick cash allowed by debt of 80,000 think any recommendation they gave me yeah well I'm excited for you as you think about this.

The first home purchase. It's a big decision when I know you probably give a lot of prayerful consideration to and it sounds like you been a diligent saver. Did I hear you say you have 80,000 available for the down payment is at right by sign on and get a mortgage for long linking point will I on an apartment for any 2000 right okay so I went under contract and on the conflict and I can get out of it.just one name I yeah I'm moving there. Any nation they can give me. Yeah.

So if I understand correctly, you're planning to be able to buy this with cash right based on the savings that you you have is that right all night thinking so I will not have any thousand dollars that the savings have to worry yeah I mean I think that's the only concern I love the idea that you would go in and buy with cash because you don't have debt and I certainly don't want to be the one to talk you into taking on debt. I am a little concerned that with you making the move buying the first time your first home having to get into it.

You're always good to have someone anticipated expenses that come your way and with you being kind of right down to the wire in terms of using all of your available cash that's concerning to me. I don't want you to have a bunch of cash left over, and then you buy a bunch of expensive furniture and you know things like that that just eats it up. But I do want you to have enough margin to be able to get into it. You know, connect the utilities and all those extra expenses that you have.

Plus, there's probably to be a few little things you want to do or things you need to buy.

Certainly you can do a lot of it. Over time, but I don't want something to come out of expected unexpectedly from left field related to the house or something else and then you not have any money and then you're having to go to credit cards or something like that. So I guess my only question would be here Stephanie is could you either a delay the move until you can save a bit more to you have at least a couple of months worth of expenses in the bank as an emergency fund after you buy the house and all the transaction costs or would it make sense to take on a very small mortgage again.

I don't want to talk you into taking on debt you have a conviction not to. I'd say let's find every other way to do it. Apart from that, if you really are convicted about not taking on debt but one option would be to take on a very small mortgage. Keep some liquidity and then make a goal that every month as you have the money available, you would put it right against that mortgage and pay it off in a very, very soon, so tell me about that. The what what is your plan to come to rebuild your savings if you were to use all but a couple of thousand dollars on this home purchase school so now they usually think I was thinking about doing think of right right by him five on the ramp bikini. I wanted to be able to get out of contracts that brown and very high town where everybody needs right here. I think it's time I will tell on my eye that I let what is your plan to rebuild your emergency savings. After you spend all the money to get into this new home like what I was on right waiting. They put in my like an account okay and how much margin do you think you have after your expenses every month long enough. I don't have to pay rent right and my ranking benefiting 80 savings and that much money in my diet I'm on clothing and I'm not spending yet. I think that's how I was able to save 8000 88,009 got it I love it. Well I think you're on the right track here Stephanie and there's no question that rental prices of just having this conversation with coworker earlier today. Rental prices are sky high. Because of what's going on in the housing market itself. It can make a lot of sense if you can find a place to buy and certainly if you can pay cash.

You said then you have the money you would've been putting toward rent available every month but just stay focused on keeping her lifestyle expenses as low as possible.

Every dollar toward building that emergency fund home 3 to 6 months expenses emergency savings. We appreciate your call today. All the best in this new chapter of your life in Jackson, moneywise line thanks for joining us today moneywise live lines are open 800-525-7000 on Rob last taking your calls and questions as we apply God's word to today's financial decision just Edward and me talking about whether or not it's appropriate to buy a lottery ticket and how to use your HSA funds for medical bills will talk about paying off the house and refinancing. But first, Cassondra is in Chicago, Illinois. W MBI thank you for your call today. How can I help you Colleen always heard you mention your mortgage payment should not be more than 25% of their take-home pay. Mike said that apply to both couple which is one of the person and were both working height to my or my or my income. Now that's a great question Cassondra yeah I would look at you and your husband is one flesh right so that's the way the Bible describes it, and I think that applies to everything in your life including your finances. So when I'm talking about dealing with money in developing a spending plan it's unpacking is a couple water values were goals. How can we use money as a tool to accomplish that even though there might be one bookkeeper. It's ours together as one flesh. It doesn't matter who's working and who's not in your case, both of you are working but I would see all those resources is one as a married couple and then you say okay now for our total budget or spending plan with whatever income sources we have in your case there's at least two of them.

How are we can allocate God's resources. So when we develop that spending plan.

Obviously one of those categories is housing and so what I would say is your take-home pay is after any deductions for your retirement account and if you have company health insurance that comes out you can have a net amount that's coming in from both of your incomes and when you look at your housing category and you look at your specifically your mortgage payment, principal, interest, taxes and insurance in order to have enough for everything else. You really should make sure that that mortgage payment is no more than 25% of all of the income sources net take-home pay but all of the income sources coming in the house so short answer is that it would be both incomes that you would build that around to set make sense though okay very good. I hope that helps is just a rule of thumb, the budget needs to balance it's not perfect in every case but at least it gives you a starting point is what I hear from a lot of people is how I know how much I can spend on my mortgage so know that 25% is just one of her it's a rule of thumb, if you will that get you started, but at the end of the day you gotta make all the numbers work in everything's different. You know, for everyone, but at least that'll get you pointed in the right direction. If it's under that number.

We appreciate your call today. Cassondra very very much to Dave and Illinois Dave what's on your mind.

How can help you. I thank you so much.

You have an accent pump program not now.

I know the Bible frowns upon gambling, but I wonder what's on with finding a lottery ticket here and there and you know that's the first question the second question is if you win hot wiki recommend creating an LLC account to become anonymous and how would you go about hiring specialist investment specialist to give you recommendations after giving 10% to a local church will divide both course thanks Dave, you know the Bible doesn't explicitly say that gambling is a sin, so we have to look at financial principles for an answer and I think the starting point.

With all of our money management. Dave is this recognition that God owns it all and where his money manager or steward which means you and I are money managers for the creator of the universe, which is a pretty high calling. As we manage God's money and then we take direction from the master right because if we're managing someone else's money. We probably know what they want. We should know what they want us to do with it. So we go back to God's word we say. What principles can we draw from here so that we know how the Lord wants us to manage his money and I think you know there are clear warnings about a get-rich-quick attitude and the one that comes to mind most quickly is Proverbs 1311 wealth gained hastily will dwindle, but whoever gathers little by little will increase it. And then there's the highly addictive nature of gambling that I don't think we can ignore your first Corinthians 612 all things are lawful for me, but not all things are helpful and I think all things are lawful for me, but I will not be enslaved by anything and you know.

Also, unlike investing I think gambling is a zero-sum game in order for you to win somebody else has to lose. So you're contributing to another's losses which perhaps conflicts with love your neighbor as yourself.

So I just think we look at the whole of Scripture and the Council of Scripture we recognize our role as a steward or manager, I just don't see how we can get at least for me, this is my conviction, how I can get comfortable using God's money this way when I see I think some clear indications that really the idea about growing God's money.

And clearly we should be about seeking a return on investments. The best description of that that I think we find in the body. The Bible is these two words steady plotting and I just don't think that gambling has any thing close to this idea of steady plodding and so for me, I would say because of those reasons it's it's a zero-sum game. It's it's really detrimental to so many people who have gotten into it and are now addicted to it.

Not to mention that it didn't really is about a get-rich-quick attitude which is clearly frowned upon the Bible. I just think we have to leave it behind and say that with God's money being a careful faithful steward of that money. I just don't see any room for gambling in there though. Does that make sense though Dave yet yet. Thank you. I know you say that finding my Arai vibration I will say though you mentioned, and in a wise investment counselor in the Bible is replete with counsel about seeking wise counsel. So I think you're on the right track there, but I would say no to the to the lottery tickets at every turn. We appreciate your call. Jos's in Florida. How can I help you today thanks for taking my call. Really appreciate your ministry. We looking to refinance our all were trying to reduce the amount a year.

I'm in a modified loan that they extended to 47 years to be able to lower the payment the interest rate could be lowered if it currently 4% can be lowered to 2.49 and working to lower the payment to either 20 years or 30 years right not to spill over 457 payment though. My question is that they're looking to put in about 12,000 back into the loan so that there is no upfront fees that died. Well let me ask you this.

What is the value the size that mortgage today 286, 206,000 yeah I mean that the closing because you're talking about are just skyhigh their you're talking about 4%, which is probably double what I'd like for you to pay, but you're also talking about a lower rate here and what is the prevailing rate today subscribers and discount points in their general think is necessary so I get a few more bids.

Jos clearly want to replace what you have, but I'd like to spend no more than 2% on closing costs.

Total value of the mortgage. So go to bank and look for some online lenders that can give you a really competitive bid low closing costs and let's get that term as low as you can fit your budget and look for 20 years were no more than your current term remaining appreciate your call and hope that helps. We help in the future.

This is moneywise. What joining us today moneywise live for God's word in today's financial decisions and choices just ahead more of your phone calls we talking to Heather in West Palm W Mississippi Danica's in Nebraska. But first, it's time for our moneywise market commentary.

Each Monday, our good friend Bob Dole stopped by Bob is a Wall Street veteran, a well-known market analyst is the chief investment officer across market.

Global investments a leader in faith-based investment management Bob, great to have you with us. Thank you sir Bob in your deliberations this week you spoke of a jump in core CPI inflation, the consumer price index. You and I talked about inflation the last several weeks. But what is this new data telling us and are there areas of our economy. In your view, where these price increases perhaps maybe here to stay put a finer point on it, Rob increase in inflation we seen at the headline level MMVIII, and more importantly for corporations that picked up food and energy is when I don't use food and energy emotions. 992, not just kind a little bit noticeable increase ranging debate on Wall Street right now is here.

This inflation pick up temporary use the Fed's word transitory is inflation legitimately picking up and no one knows for sure the answer.

I think the answer is some low and so you know the listeners on.

I'm sure they can identify. Maybe if you export a car recently especially used car if you going to the grocery store recently noticed. These prices are moving up Rob and that some that's a function of the inflation in the them and it is not going to go hundred percent away in my opinion, it'll be better by the end of the year. That is not still be higher than it was a year ago that 02% inflation world. You and I have lived in her think like forever called a decade is probably over.

Yes, that's a that's a significant statement you just made. The question I guess are one of them is how much of that what you just described as the market already priced in great question what dilemmas here is that the bond market has actually had a rally over the last couple of months. Remember 10 year treasury yield were just under 1% at the start of the year got as high as 1 3/4 now. Despite this inflation will repeat inflation reading is back off to about 1 1/2% scratcher to some degree. Rob, the equity market is mixed as well. When it comes to that. So the market don't really believe inflation is a problem yet but III think that's just a get kind of a sleeping giant waited just got Bob do you think this new data caught the Fed by surprise at all and you think they're considering a change in their approach to keep inflation in check. Well, as you know, the Fed is not an on off switch and the last thing they will do is raise rates.

They have a number of things they can do in advance.

In particular, papering remember the Fed is buying tens of billions of dollars of paper per month and the question is will they keep, or will they slow down the amount of those purchases and they meet this week and I think the answer is probably yes. They're going to have to thread the needle and not get the investors and the economy upset about this inflation they need to slowly take the punch bowl away getting over several years. Yeah, absolutely. Well, I know you're still expecting strong economic growth and earnings growth in the midst of this inflation where our resilience as a nation. What is your newest thoughts this week about where were headed from here with the balance of the bill of the somewhat boring view for the stock market going to be, you know, two steps forward to step back to easy money has been made.

I remind listeners while the stock market is up nearly 90% from it flows last March, so there's at least some good news in the market on the economy and good earnings with all the money cash that is been sloshing around the patently bill higher. But it's not going to be a one-way street. As we grapple with this great economy great earnings on the one hand, and questions about inflation and interest rates moving up on the very good. Well, there's a lot more we could talk about will save it for next week. Always appreciate your insights. You, as investors, as you always remind us we have to focus on the long term we need to be steady. Plotters need to be properly diversified with an allocation that matches our agent goals and objectives.

But I love the fact that we can stay abreast of what's happening around us in the near term because they were more effective than informed as stewards of God's money, so we always appreciate your time. My friend, well don't let emotion get in the way I should talk to you next week. Thanks, Bob back to the phones. Nebraska is where Danica is today and Danica appreciate your patience can help you right away or you yeah I mean obviously if you have an active HSA.

I like the fact that you would really prioritize getting enough in their if not maxing it out because the real benefit is to let that money accrue over time because it can be a really powerful tool as a part of your retirement arsenal if you will.

If you have money that you can actually invest beyond what you need and it can build up over time and so makes a lot of sense to do that but with an active HSA you you don't want to be obviously putting in enough so that you can at least cover your medical expenses because then you're doing it with pretax dollars, which is one of the benefits of the HSA as opposed to you paying out of pocket which is after-tax dollars. Now the question is what about when you don't, you no longer using it because as you said, you no longer have that high deductible health plan. So this is just an asset that you have and then the question comes down to.

Should I keep this and let it grow will be more beneficial for me, down the road, or is it more beneficial to use it today and I think given the fact that you're no longer contributing to it as long as you're not borrowing for those medical expenses. If you're able to use cash and not know completely deplete your emergency fund, I'd probably let that money just continue to grow. Get it invested. You know you have the tax-deferred growth and then you know your withdrawals are tax-free in your later years when you're likely to incur more medical expenses and after you turn 65. You can start using your HSA for non-healthcare expenses so you know, the 20% early withdrawal penalty no longer applies. So II think you know there's a real opportunity here for you just to let that acid grow get it invested, and assuming you have the ability to fund that out to cash.

I think that's not a bad idea that you said Rob I'm either going to deplete my emergency fund, or you have to borrow will then absolutely use the HSA but if you have the cash to do it. I think you could have some benefit of just letting this account grow in the future. Does that make sense so what have I have out of pocket. You know how any even a good idea.

Now I need it more than I need it now.

Yeah, sounds like you and I think that's a great choice and we appreciate your call today. All the best to you and wish you good health to Mississippi.

Debbie, thank you for your call today.

How can help you keep property right now and it's almost 3 time what I'm making me what when I paid for it, hold it currently active and everything actually what it is one I need a parental when I meet vacation if I should go ahead and sell it now, even though I hand yeah higher taxes for it or what I thought what we've been hanging onto it retired I'm retired and allowing that to be there in the future for anything that might get happening for like an arson hammer that Thing way to be better to follow skeletons higher market and invest it OR just hang onto it like I'm doing yeah Debbie I mean you said we don't know what the future holds but here's just some observations. Number one is you are in a situation where property values are the highest they've been in a long time. Does that mean they couldn't go higher from here know we could certainly see some more upside, but they are overpriced, overvalued, and so I think a cooling off of the real estate market is certainly reasonable to expect. So I think this is a good opportunity to exit and then secondly capital gains are still taxes are very low and so I think this actually might be the ideal time to sell.

Again, not knowing the future but knowing the where the real estate market is knowing how low capital gains taxes are and knowing that conditions aren't likely to improve beyond where they are now either in the tax scenario because the proposals are you know anything being considered is takes the capital gains taxes up question is know which income earners does that apply to but nothing were not seeing them going down for sure and I don't know that conditions are likely necessarily to improve in the housing market is probably more more realistic to think it could cool off, so this may be the ideal time to take that money out to pay that low capital gains and then redeploy it in an investment strategy that makes sense. If you need an advisor to help you with that could find a certified advisor in your area website. We appreciate your call today for us so thankful that you stop by the apply God's truth to your financial life on to say thank you to my amazing team. Dan Anderson engineering today.

Deb Solomon was producer today Jim Henley providing research and think there was light as a partnership. Moneywise, media will all tomorrow.

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