When is the right time to refinance?
Is it the best time to buy?
Or is it the best time to sell?
In this week’s podcast episode, we have with us Kate Yachini, Broker/Realtor at Carolina Realty Group, Hilton Head, South Carolina. For the past 15 years, she has been helping her clients live their dreams in beautiful Hilton Head Island and Bluffton, SC. Not only a Realtor but also a leader in the industry in the Hilton Head area, currently serving as the Hilton Head Area Realtors 2022 President. As the 2022 Hilton Head Area Realtors President, Kate is excited to help her association and its members continue to elevate and thrive and is committed to making your purchase or sale a five-star experience.
Kate tells her short but self-fulfilling prophecy story to us, shares valuable information on the impact of the low-interest rates on the overall market, inventory issues, her involvement as the Hilton Head Area Realtors 2022 President, what started her in the real estate leadership and what she learned since she’s been in the business. And more!
With the recent increase in interest rates, Realtors and Lenders may be discussing the possibility to refinance your loan at a later date. Chances are, if interest rates gonna go down, you can refinance your loan to take advantage of the lower interest rate, which ultimately will lower your monthly payment.
And if you’ve got many years left on your mortgage and are planning to stay put for a while before you pay it off, this is when refinancing to a lower rate loan makes sense.
So if you’re thinking about going to the Hilton Head area, need help anywhere in the state of South Carolina, and are considering a home that needs renovation or new construction, this podcast episode is a must-listen.
What You’ll Learn From This Episode:
- Short self-fulfilling prophecy story about Kate Yachini and how she got to help other people live their dreams in the Hilton Head community.
- Importance of giving value and putting your client first.
- Behind the scenes with Kate as she became the Hilton Head Area Realtors 2022, President.
- What prompted her to get involved in the association?
- Is this a great time to buy? Or is this a great time to sell?
- Looking at interest rates solely and not making their decision based on the interest rate
- Inventory issues affecting the Hilton Head community.
- What is the impact of the low-interest rates on the overall market?
- Understanding the full picture in today’s market and what it means for you.
Connect with Kate Yachini @
- Phone: 843-683-5283
- Email: kate@kateyachini.com
- Website: kateyachini.com
Connect with Corwyn @:
- Contact Number: 843-619-3005
- Instagram: https://www.instagram.com/exitstrategiesradioshow/
- FB Page: https://www.facebook.com/exitstrategiessc/
- Youtube: https://www.youtube.com/channel/UCxoSuynJd5c4qQ_eDXLJaZA
- Website: https://www.exitstrategiesradioshow.com
Episode 64: When is the Right Time to Refinance a Home with Kate Yachini
Corwyn:
Good morning. Good morning, and good morning. Welcome to another fabulous episode of EXIT Strategies Radio Show. Hey, I’m your host Corwyn J. Melette, Broker/Owner of EXIT Realty Lowcountry Group in beautiful North Charleston, South Carolina. Hey, If this is your first time listening to this show you sir/ma’am are in for a treat because our mission is very simple. That is to empower our community through financial literacy and real estate education. Guys, we are a legacy building. That is what we do. So guys, today is no different. Get your notepad. Be ready. Because we have a fabulous guest, who’s going to wow, I mean completely “Wow” you with information. All right. So guys, today, we’re very fortunate to have with us none other than Kate Yachini, with Carolina Realty Group out of Hilton Head, South Carolina. Kate, how are you doing today?
Kate:
I’m great. I’m so excited to be here, Corwyn. You’re such an inspiration. And when you asked me to do this, I just was so excited. I thought, little old me, just really excited to be here and share what I can with your listeners and share that information. So I’m excited.
Corwyn:
Awesome! Awesome! So Kate, look, first and foremost, we’d be remiss if we didn’t give you the opportunity to kind of tell people who you are, you know, and obviously what it is that you do, as we kind of get into a conversation and discussion.
Kate:
Yes. Okay. So I actually kind of thought of this as the origin story. Then the boy and mom gotta have an origin story with every superhero. But I, so I grew up outside of Richmond and Mechanicsville, Virginia, and spent pretty much all my life there. It was a rural area that grew into a suburban area. And I went to school at the University of Virginia, which is my alma mater, loved that school, loved my time there. And I met my husband on a family vacation in Hilton Head. And so I spent, we spent that next year dating. It was between my third and fourth year of college and then the day after I graduated, I moved to Hilton Head. And it’s yes, so it’s been an amazing, amazing 20, almost 20 years since that day. So it’s coming. We’re coming up in 20 years. I am in Hilton Head. So excited about that. And also I always share too when I tell this story that it’s a bit of a self-fulfilling prophecy. I did vacation as a child here. And every time my parents would take me home, I would cry and say I was going to live in Hilton Head someday. And so my dream came true. And now I get to help other people live their dreams here. So it’s, it’s all come full circle.
Corwyn:
Awesome! awesome! That is an amazing story. That is an amazing story. Now, you are a Realtor, a leader in the industry as well. Definitely don’t want to be remiss on that. But you are a realtor and the leader in the Hilton Head area. If you don’t mind, for our listeners, how long have you been in the business? Let’s start with that.
Kate:
Right. So I started in real estate. I actually got my license in 05 and I worked for a company for a couple of years as an admin. And I was trying to figure out okay, how does this crazy business work? Because once you get your license in real estate unless you go a certain path and find a mentor, you have to kind of figure it out. There’s training out there if you look for it, but for a lot of us, I think you get your license and you’re like Okay, now what? So I worked in admin and then I found my mentor who’s actually also my business partner now. But she taught me everything I could ever imagine about real estate. I was very, very, very lucky to have found her and to be able to have that knowledge moving into, basically the industry. And she’s also, you know, I think, she also, I credit her a lot with explaining, like the whole value, you know, core values to me and sharing with me that, you know, always putting that client first. And if you do that, then basically everything will just follow that. You don’t think about the transaction, you think about the relationship with the person, you try to help them the best you can, and every day that you’re working, everything else will work out. So I had a great mentor. And then we, I worked for her for a couple of years as a Sales Assistant and then started selling and I’ve been selling for about, I guess, since 2010, I want to say out on my own as you know. As a Realtor/Broker, I got my broker’s license. And yeah, so and then at Carolina Realty Group, pretty much all of that time since 2010. So about, I guess, about 12 years. And obviously, times have, markets have changed, times have changed and it’s been an interesting time.
Corwyn:
Let me ask you this. So again, you’re in leadership. So if you don’t mind, tell our folks, our listeners, you know, as far as leadership and the association, what have you done? What are you doing?
Kate:
So, I am currently serving as the Hilton Head Area Realtors 2022 President. So I’ve been doing this since January, and it’s November obviously. So time is, it’s been a really, really, really fun year. I did not know what to expect. I was probably a little nervous when I took this on. But then on the board of the realtor association for I think about maybe four years, and had, you know, worked my way through that through our leadership team. So I had done all the different roles. And so I kind of knew what to expect, but it’s been really awesome to be able to serve the membership, and to learn about, you know, everything that you don’t see behind the scenes when you’re a member. Our association staff works so hard to put forth our events. Our committees work so hard. And really, you know, you see so much also that our fellow Realtors do in the community. And I think a lot of people don’t realize just how much they do in terms of volunteerism, through the association, but also outside of the Association on their own independently, and through their companies as well.
Corwyn:
You know, and that’s so interesting, you should touch on that because that is very, very true. You know, being the realtors actually tend to be more socially and community-oriented, meaning as far as involvement goes, then a lot of other people oftentimes is someone who may because they don’t think, they think things could be different or be better is running for public office and things that he does a lot of that and it’s amazing to me how many of our legislators at the state level, let alone at the local county and municipal and county levels, our realtor, members, saw a need and they just jumped in.
Kate:
Totally, Corwyn. Actually one of our members, Mayor Sulka, she’s the Mayor of Bluffton. And so yeah, we have, we see a lot of that. And actually, I think also one of our affiliates is running for mayor and Alan Perry. So that’s exciting. But yeah, I think you do see a lot of realtors get involved in the community politically. And also, I mean, you see a man on meals, on volunteering through Meals on Wheels, through all these different greatest, you know, great organizations in our area. So it’s really, it’s nice to be able to serve people who are so community-minded and yeah, it’s been great. It’s been a great year.
Corwyn:
So, let me throw this question because you know, some of our listeners, a lot of our listeners have no idea of the structure of the realtor organizations you know, the top level, the state level, let alone you know, the local you know, realtor, you know, associations offices throughout, you know, our state or any other state and you know, in that structure you have, you know, have a staff side, which is, you know, headed by a CEO. And then you have a bullet side of the Board of Directors, that’s, you know, obviously headed by a President. So, what prompted you to get involved? Like, what was it?
Kate:
Yes. So getting involved, first of all, getting involved in the association. So when I first got into real estate, that company wasn’t quite as involved in the association. But I did see when I met the Carolina Realty Group, I did see members of our company who are, you know, were very successful, and had been very involved in the association. And I asked them, I said, “What was your experience?” Like, you know, why did you do this, and actually just started going to the events, and I was realizing not only was the material and the content really helpful to my business, but the people at the events, were also very supportive, like, there was this kind of collaborative environment of learning, with professionals from all different companies coming together to hear about, you know, the schools or hear about what’s going on in our county, or you know, what’s happening with the latest legislation that we need to be listening to and understanding. So I think that’s really what drew me to this sort of environment of collaboration. And then in terms of leadership, it was the one person who said, you know, we would love to have your input, and actually, it was Daniel Moskowitz, he’s a prior Realtor/President, and he’s been involved on the state level, too. And he actually made that phone call and said, hey, you know, would you like to move into this position, and, and that was really, that was really probably, you know, it’s normally somebody who invites you to the party. And, when we go back every time like people, you can send out all kinds of communications to people, but it’s the personal invitation that draws you in, or the person that draws you in, I think, a lot of times into being more involved or to being active and as a leader.
Corwyn:
So, you know, that’s, that’s so true, you know, when, you know, when people are gathered, like it, you know, leadership meetings and events and all that stuff. And if you get an opportunity ever ask someone, you know, question either, you know, frame that way or frame differently, but with the same, you know, context as to, you know, why are you here, or what got you here, you tend to get well this person, and they remember they can they recall the person by name, you know, sometimes they can recall, you know, where they were. I can recall. I can recall bits of the conversation, but I can tell you where I was like driving, and I was on the road driving, and literally remember, the road, the street, I was on and making a turn onto the main street, in the midst of this conversation, you know, in getting in, quote, unquote, getting to ask, you know, so you know, that’s something that you know, and within our association that we talked about, oftentimes, of, hey, look, we still need to be making that ass, because people don’t understand, our general membership oftentimes doesn’t understand, you know, what it is that their association is doing for them. ‘Low, they don’t know that. But on the other side of it, they also don’t understand that their voice matters. That is something definitely, you know, in today’s age, that people really struggle with, you know, about their place within an organization or within a system, their identity, they want to make sure they are heard, and they have the opportunity to be heard by serving.
Kate:
Yes. And I would say too, Corwyn, we talked about leadership, and one of the biggest responsibilities is identifying those next leaders and replacing ourselves because, you know, you come in, you have all these fresh ideas. And then six years later, you’re kind of, you are the old ideas that were fresh at one point. So you’ve got to bring those new people along. I’m excited that not only are there opportunities through our association, but we actually have a Women’s Council of Realtors that is launching in Hilton Head. So that’s really exciting and the Hilton Head in Bluffton, I should say. So there will be more leaders coming up through that. And yeah, I mean, I think a really important part is just kind of helping move those people along in their process and replacing ourselves as we go.
Corwyn:
Exactly, because that’s what it is what it’s about. It’s about succession. You know, that’s indicative of growth. I mean, if you’re able to, you know, transition from here to okay, this is going to be the next phase, and this is going to be the next phase, you know, that allows the organization as a whole to, you know, to survive and to thrive. So I want to change gears real quick. So you’ve been around for a while. You have seen different markets. You’ve seen different times. So in this season, in this time, what are you sharing with prospective consumers? As it relates to, you know, what gives you know, obviously, you know, you get into question here, you know, well, hey, “Kate, what in the heck is going on in the market? Is this a great time to buy? Or is this a great time to sell?” What are you telling people at this time?
Kate:
Corwyn, that is such a great question. I think, yeah, we are getting this question a lot. And, you know, I will go back to what David Kent said on your previous, one of your previous podcasts, where you said, real estate is a long-term thing. It is not, you know, a quick thing typically for people to make money on real estate. And if you’re buying because you want to live in a house or don’t have a house, like, for me, that seems like a pretty good choice. Because otherwise, rents, I mean, I was looking up some statistics of what rents are going to rise in the next year, what they’re predicting. And those rates are pretty high. I mean, between like 5 and 8%, is what I was saying on certain websites, and then you’re looking at, so if you’re looking at rents rising considerably, and you know, this, the new thing that I hear everybody saying is rent is 100% interest. So now you’re looking at your mortgage rate rising 1%, 2%, or 3%. Yeah, that’s a lot. But if you’re planning on staying in a home long term, I think, I mean, I don’t see massive amounts of housing being added to our housing stock, not like what we need, supposedly, at a national level, we’re still houses are still scarce. And actually, inventory is still really, really low. I think right now, there is uncertainty. And uncertainty is the hardest thing to move past as a buyer. You know, if you’re certain things are not going to be good, or you’re certain things are going to be good, it’s easier to make a decision. But uncertainty makes it tough. So I think if you are buying and you’re buying for the right reasons that you’re going to be in this home for, you know, however long. I mean, I think that’s kind of the decision that you have to make, do I want to keep paying rent? Or do I want to take a higher mortgage interest rate, and then hope that I can refi this later? And I think, you know, probably, I think interest rates, I mean, I looked at projections for next year, as well. And they were all over the map. They were everything from, gosh, like, 5 something to like 9 something. I don’t think anybody knows. So, but you know, interest rates are going to go up and they are going to go down. And that’s all part of it. I mean, if you look back at, all the missed opportunities, during the recession, I think our generation Corwyn is somewhat risk-adverse, after going through that whole mortgage meltdown. But the situation is very different now. People have a lot of equity in these homes. And they also have low-interest rates lot of times on the mortgage that they hold on the home. So now they’re going to be less likely to sell. So that complicates and that, you know, exasperates the inventory issue. So why would I sell my house, I have a low-interest rate. I like my house, it works for me, I’m not going to be so inclined to go do the next thing. So I think I mean, I think in terms of buying, it makes sense for most people. In terms of selling, prices are still high. So again, that probably makes sense for most people. But it all depends on where you’re going next because that’s been the issue, the inventory issue. If you don’t have a place to go, you know, I always ask people when I go in for that listing appointment, what is your plan? Like once we have this house under contract, where are you going to go? Because it’s a lot harder to make that plan when you have an offer or when you’re under contract, you need to know, kind of, what your plan is going to be.
Corwyn:
You know, I tell people, you know, Kate, I, you know, I frame it this way I say, Look, you know, my job is to make you homeless, but I’m not trying to make you homeless. So there’s a difference, you know, I want to make I want to get you to make you less of a home, don’t get me wrong. I’d also don’t want, don’t want to pass you, you know what, uh, you know, pass you on the street? You know, so, you know, that’s definitely a very valid, very important question for the consumer to be able to ask. Answer. I’m sorry to be, for them to be able to answer so that way you have done them a service and not quote-unquote, a disservice. You also touched on something else in what you were going through, which was updating us on which is, you know, 100%, you know, a rent. 100%. It’s a hundred percent interest on rent. And there are no tax advantages to that. And consumers miss that, you know, we, you know, people have gotten so caught up in the snippet that they’re getting from social media, and people thinking about how people move. But you know, people have casually cast out on houses just to get a check. But then, now you got a higher rate. And as you try to make the next purchase, you know, I have a client that, and I’ll share this with you and the listeners briefly. I have a client that, you know, didn’t consult with me before selling the property, they got an unsolicited offer. So they jumped at it, because they looked at how much money they could get out of it. But they didn’t look to know what the rates were. So now, I don’t know where they are in the purchase phase. But I do know that when the house they sold had a rate that was significantly less than what rates are currently, and in turn trying to make a purchase in this market with rates such as that. I know, they’re still gonna take. They’re gonna take a house payment that was very, I mean, very reasonable, very reasonable, and make it a lot more impossibly unreasonable. Because, because they got blinded by the money. You know, they didn’t consult with the professionals. I would have told him “no, you know, don’t let what you sell him for. Stay where you are.” But anyway, that’s what unfortunately people do. But I’m gonna also add this in and your take on it. You’ve been again, you’ve been here and doing this for a while Kate. Rates are not abnormal, you know, the low rate you said 3%. You know, historically that’s an abnormal rate. Rates are in the middle range is kind of where we are, you know, you know, above 6, you’re not starting the business rates were, you know, 6, 7. I remember I closed people on 8 and 9. And one of my agents recently in the office meeting, you know, said, Hey, the first house I bought my rate was, I think 10.99. You know, I had a lender that told me his first house when he got into the business about 20 years ago. He said, “Look, he was lucky to get the 12-99 special.” You know, so your opinion on that if you don’t mind?
Kate:
Yeah, so same kind of thing. When I got in, I think rates were, I want to say they were around 6%. And I think when they dropped below 6%, everyone was like, Oh, we better go refi it’s 5.5% We better get our refi in. But you know, I think that they, as you said, they’re gonna go up and down. And it doesn’t necessarily change the overall dynamics of the market, how many houses there are, what our housing supply is, and what the demand is like. And of course, I know, you’re very aware of this Corwyn, being in another beautiful coastal area, there’s a lot of demand for being in our communities. And so it’s kind of a, it’s a situation. We don’t have enough houses. And I think that’s really what people are probably missing. When they’re looking at those rates solely and saying making their decision based on the interest rate.
Corwyn:
We have to look at it with a broader mind. So we have a better, a full understanding or better understanding, I think is probably you know, part of the course, you know, the consumer tends to lag. And for our listeners, guys, we don’t want you guys to lag. So we’re having this conversation. So that you are on it, you know, people bought houses at you know rates higher than what they are now, those people when rates repositioning went lower. They were able to refinance, but when they made the purchase, they also made the purchase at a price point that was lower. So their advantage was they gained appreciation so they gained value in the home. And in turn subsequently when they refinance at a lower rate. They lower their payment on the same asset and have the same financial gain. When you are not, when you’re not In the game, when you’re not making a purchase, you don’t have the option to do that. You miss out on that completely by not being in the game. So for our listeners, we want you to understand that. Kate wants you to understand that, because it is important that we look at the full picture, and not just this little blemish that’s in the corner, so to speak. Now Kate look, if you don’t mind, give our listeners your contact information, where can they reach you at?
Kate:
Y’all can reach me on my cell phone, text or call at 843-683-5283. And you can also visit my website. It’s kateyachini.com. And I’m at kate@kateyachini.com if you want to email me. So I’m looking forward to hearing your questions.
Corwyn:
Awesome, y’all please reach out to Kate, if you’re thinking about going to the Hilton Head area, or need help anywhere in the state of South Carolina. Y’all give Kate a holler. And she can connect you to some awesome people across the country as well. So don’t y’all forget that. So, Kate, you’re going to be at NAR? I’m assuming here pretty soon as far as a convention, correct?
Kate:
So I went to NAR last year because of our, we’re, how we have it structured. We have the President-Elect go to NAR. And so I went to San Diego, and it was absolutely beautiful. So I’m jealous. Also though that, I’m not going to be down there in Orlando with y’all. But I know it will be a lot of fun and lots of great information. I had just, I feel like there are two conferences you do as president-elect. The NAR leadership conference in Chicago, and then the national conference are so eye-opening too, you know, I mean, especially Corwyn, hear these stories of realtors who have started charities, you know, done these amazing, amazing things for their communities and given back in all these different ways. So yeah, are you going to be down there Corwyn?
Corwyn:
I will be. I will be. So last few meetings and things of that nature. So I’ve always decided I’m gonna spend time around, you know, around, you know, our leadership around our leadership team. So I’m super excited about that. You know, it’s always good conversation, good information and ideas that are shared. So I hey, hey, we’ll miss you. But, we know that you will definitely be at the next conference, you have the opportunity to attend. So for our listeners guys, we kind of wrap up, I want to say, Kate, I want to thank you so much for taking time out of your very busy schedule to help, you know, tell your story. Because that’s what this is, we are you know, telling the story, and telling your story as to your engagement, your involvement, how you got into it, what started you in real estate leadership, and, what you’ve learned since you’ve been in the business. So we gotta get you scheduled in near future for another show, because we want to explore that a little bit more as you kind of talk about maybe, maybe let’s have a conversation maybe about how your market moves. So meaning, you know, when is you know, when not necessarily when is the best time, but when is it a more opportune time if you will, to purchase homes and houses in the Hilton area because that is a beautiful area down there where you’re at the lady. That is a wonderful place.
Kate:
WOW thank you! I love your area too. I love your area too. It’s so beautiful. But yeah you know, I think Corwyn that would be a great conversation. And I just, I really thank you so much for your show in terms of the legacy building, and you know, helping people understand all these financial things that you know, you don’t necessarily get an education about these things in school, and we’ve got to be teaching our kids about it. We’ve got to be teaching financial literacy to, sometimes to our buyers and sometimes just you know, to people in general who wouldn’t have gotten that in another fashion. So yeah, I’m excited. I would love to come back, Corwyn.
Corwyn:
Thank you. Thank you. Thank you. So for our listeners, guys, as we wrap up today’s show, I want to thank you all guys for tuning in. You all know how I feel about you, but it doesn’t matter because I’m gonna tell you anyway and that is I love you. I love you. I love you. And we gotta see you guys out there in those streets.
