Sometimes the Best Advice Doesn't Earn a Commission

Yesterday, I had the privilege of being invited on a boating outing with some friends.  Rearranging a couple of meetings on my calendar, out I went to meet my friends.  Since there were eight of us, I offered to drive as the SUV pulling the boat held 5, not quite enough seat belts.  

Weird fact - I LOVE to drive.  To some of my friends, I am the odd bird. They think I'm nuts that I love to drive. I can't explain it other than to say, I've driven from coast to coast in the US and maybe it's the freedom to see the sights, I don't know?! Anyway, offering to drive isn't a difficult thing for me. 

Piling into my SUV with another passenger, off we went following the lead SUV with the boat.  After about 10 miles through Phoenix and Scottsdale, we stopped off to meet two more passengers.  Before picking up the other two and during the drive, my friend and I started chatting about housing.  This passenger is a fairly new friend of a friend, so I was getting to know her.  We both shared experiences of moving to the Phoenix area and our experiences in housing.  She also shared about her divorce and job experiences. Turns out that her paycheck has shrank from one office to another, adding stress to her budget.  

Knowing that she was stressed, I asked her questions to help her vent. She shared that she had bought her home at the very bottom of the market - a HUGE plus for her.  Our housing market was one of the tops for apprecation in 2005 - 48% appreciation.  And we were also one of the top five for foreclosures thereafter,  HUGE declines in value.  For her to have purchased her home at the bottom of the market was a huge accomplishment and I congratulated her.  

I told her that whatever she did, make sure to hang onto that house.  That house could be her last home. Apparently, she was thinking of that same concept.  She told me that she had gotten a roommate - perfect!  She was also worried that after her divorce, she didn't have a nest egg to fall back on.  A problem, but definitely could be managed I told her. 

We all would love to have a nest egg to rely on and and I shared that she might want to see if she could start saving, if at all possible.  Since I'm no longer in the finance industry, I don't share specific advice, but I can offer some tips that might be helpful. 

But the biggest piece of advice that she felt HUGE relief.  I could tell she was concerned about what would happen in her older years if she did not own her home free and clear.  Knowing that she was beyond stressed, I told her about a program that I've come to know that has helped clients, a Reverse Mortgage.  Not only does this not earn me a commission, it's not a service I offer.  I've helped another client with a Reverse Mortgage Purchase recently, so I understand the basics of the program, but a Reverse Mortgage can only be offered and administered by a lender/loan officer.  As a real estate agent, I don't offer loans.

I told my friend that she should research and understand how reverse mortgages work.  I explained the basics of the program and she began to cry. You see, she was so afraid of having to work until she was 80 to pay off her home, that she had begun to dread working at all.  She had been so stressed about everything going on with her work life that she was concerned for her financial future. 

I was surprised that she had shared so much with me, but I'm betting she felt she had to turn to someone for help.  Maybe she felt she could trust me as she wasn't interviewing me to help her sell her home and isn't buying one either.  

Not only did our friendship become more solidified, I'm fairly certain she'll remember me if someone else needs to buy or sell a home.  That one nugget that helped her to feel better about her situation, also helped me to feel better for her.  She was so grateful that she must have thanked me at least five times that day.  Sometimes the best advice doesn't earn a commission, but it just might help a friend.