Why You Should NEVER Pay Your Mortgage Off – Rachele Evers
On this episode of The Closing Table, we sat down with Rachele Evers!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Rachele Evers…
The conversation began with a this or that icebreaker on well-established neighborhoods, new constructions, and more. Rachele then describes her passion for the industry, which she has pursued for the past 10 years, driven by a belief that everyone deserves a place to call home. She aims to assist people in understanding and navigating the real estate market, ensuring they are well-informed about their choices and options.
Geographically, Rachele operates in Southeast Michigan, and her insights and information specifically pertain to this region. She explains that her market is largely influenced by referrals and past clients, highlighting her dedication to serving individuals in various circumstances. Rachele outlines the geographic boundaries she typically works within, such as using Highway 127 as a north-south reference point and I-94 as a challenging east-west boundary. Additionally, she mentions the water on the east side as another area her services can reach.
Economically, Rachele provides statistical data to give an overview of the current market conditions. She shares that the average list price for both buying and selling properties in the past 12 months falls within the range of 300-400k. Her average close sale price is approximately 350k. Furthermore, she mentions that properties typically spend an average of 18 days on the market. Rachele explains that this duration is influenced by various factors, including price, competition, and any changes or events that have occurred since the property was listed. To support her claims, she offers a real comp report and provides a detailed visual representation of the inventory trends over the past few years.
During a transaction, dealing with contract verbiage and various documents can sometimes present challenges and potential for misunderstandings or disputes. Rachele is asked if she has encountered situations involving contracts with ambiguous or unclear language. She acknowledges that while she has come across such instances, they are rare in standard form real estate contracts, as they are typically drafted by attorneys.
As a real estate agent, Rachele emphasizes the importance of using the appropriate forms endorsed by her broker, which are written by attorneys. This ensures that the language is precise and defensible. However, Rachele points out that issues can arise with real estate addenda, which are additional documents used to address matters not covered in the original contract. Agents sometimes struggle with understanding contract language or fail to adhere to guidelines when drafting addenda. The problem, she explains, lies not in vague language but rather in over-specific language.
Moving on to Rachele’s specialization in divorce real estate assets, she is asked about the strategies she employs to ensure a fair and equitable division of such assets during a divorce. Rachele explains that a few years ago, she defined her ideal client base, which consists of individuals going through major life events, including divorce, estates, and downsizing. She highlights concerns about “predatory practices” in the industry, where professionals prioritize their own interests over taking care of the people involved.
Rachele prides herself on being able to detach herself from the situation and focus on achieving her client’s desired outcome. Drawing from her personal experience of going through divorce twice, she understands the complexities and challenges involved. Rachele is uniquely qualified to guide clients through the process without taking sides or pursuing personal gains. Selling the house may not always be the best option, and she stresses the importance of having conversations about alternative choices from the beginning. As part of her listing process, Rachele educates her clients and ensures they have thoroughly considered their options before proceeding with a sale.
Kevin then pulled out a quote that Rachele once said, “Why don’t we have Mortgage Burning Parties anymore!? Because you’re not REALLY supposed to pay off your mortgage. Ever…” When Rachele mentions that we shouldn’t be paying off our mortgages, she explains that this perspective originated from her sister, who works as a mortgage lender. Both Rachele and her sister are passionate about real estate and share a deep interest in the subject. Before jumping to conclusions or becoming upset, Rachele advises listeners to consider her viewpoint.
While homeownership is often seen as part of the American dream and investing in real estate is generally considered a wise decision, the reality is that when you become a “homeowner,” the bank actually owns your house. You don’t truly own it, and in many cases, you don’t even own half of it. While you can access equity and borrow more money against your home, or sell it and receive a larger sum, the fact remains that it takes a significant amount of time—30 or even 45 years—to fully pay off a mortgage. Rachele describes this as a high-level rental scheme.
In reality, people tend to live in their homes for about seven years before moving. If you trace the flow of money in the mortgage system, you’ll find that banks are merely passing debt and money back and forth. Rachele clarifies that she doesn’t mean “scheme” in a negative way but rather as a schematic representation of how the system works. It’s an industry based on cash flow, and as long as you continue making mortgage payments, money keeps circulating, contributing to the functioning of the overall economy.
Additionally, Rachele mentions that she hosted a real estate and finance podcast where she interviewed professionals from various industries. She is asked about the value she derived from producing the podcast and how it benefited her career. Rachele shares that many fellow professionals expressed gratitude for the content she provided. By helping people avoid common pitfalls, such as the problematic addendum she discussed earlier, she raised the bar and improved the quality of service offered by real estate professionals. Furthermore, clients who consumed her podcast content came into the buying and selling process with a solid foundation of education and understanding, making them more confident throughout the transaction.
When asked if she would consider hosting a podcast again and if she believes more agents should create similar content to share their knowledge and message, Rachele expresses her interest in doing so. However, she acknowledges the high cost associated with producing a show, which has been a deterrent. Nevertheless, she believes that agents should go for it, as getting their faces and names out there is crucial. Without creating content and making themselves known, potential clients may never even realize that these agents exist.
The conversation wraps up with Kevin asking Rachele what kind of project she would want to work on if she was given unlimited time and resources. Rachele expresses her willingness to engage in any project that centers around helping people find their place. She firmly believes that everyone deserves to have a place they can call their own, and this belief resonates deeply with her work in real estate. Rachele sees herself as someone who assists individuals in finding their place in the world. If she had unlimited time and resources at her disposal, she would dedicate herself to addressing how people are treated globally and fostering a future generation that embraces diversity and promotes acceptance. This project aligns with her core values and would make a significant impact on the lives of individuals worldwide.
Check out Rachele Evers:
Facebook: https://www.facebook.com/RacheleEversRealtor/
Instagram: https://www.instagram.com/agentrachele/?hl=en
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