Jason Bramblett Real Estate Talk Show. 

Live Saturday's at 9:00 AM on 94.5 FM WPTI

Expert insight into today's Real Estate Market.  Serving High Point, Greensboro, Winston Salem and the 35 cities and towns surrounding. 

 

 

Aug. 11, 2018

08.11.2018

Jason Bramblett Radio Show Podcast:   Click Here  

 

 

JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB. For the next thirty minutes, we are going to be talking all things real estate, and we invite your input if you have a question or comment. You can give us a call.  We are live in the studio. 336 553-0796, 553-0796. And I am JB. Welcome to the show. And we welcome the man, he has got his name on the radio program. Mr. Jason Bramblett. Good morning.

Jason: Good morning. Good morning.  It is live radio. I was just seeing if you were paying attention out there.  That is all.

JB:  Yeah, sorry about the little pause there.  Sometimes you have got to get the squirrels on the conveyor belt moving a little bit.  

Jason:  They needed some CoQ10 today.  

JB:  They did.

Jason:  They did.

JB:  They were a little bit slow there.  So hopefully, we can get them back to where they need to be.

Jason:  Get that magnesium and then they are going to be good to go.

JB: Holy cow.

Jason:  Magnesium squirrels.  

JB:  There you go.

Jason: Hey, we have got some fun getting ready to happen right here in the Triad. Wyndham coming to down.

JB: Oh, that is right.  Big golf tournament coming up.

Jason:  Yes. Hopefully, it will, they will not need boats or hip waders to play.

JB:  I know.  We have had a lot of rain.

Jason:  Man, I tell you what.  It came down last night. Oh my goodness. It woke me up.  It was like serious, serious rain. Lots of issues. We are going to talk about that because I have been getting lots of calls. People are like hey, where did all this water come from in my basement.  The walls are dry, but my floor is soaking wet. What happened?

JB:  Yeah, there is a lot of folks that have been affected by this.

Jason:  Definitely.  We are going to talk about that.  If you have got a crawl space, we are going to give you a punch list of some things you might want to go check out as well around the house. If you are in that Jamestown area where the Wyndham is over in the Sedgefield area at the Sedgefield course, but it kind of affects the whole area over there. They are running people, busing them back and forth.  If you are out and about next week, build in a little extra time. You may need it. If you see a boatload of busses running up and down the road, that is what is going on.

JB:  Right.

Jason:  I will tell you what.  They are really good at it. I have gone the past couple of years and I am amazed at how efficient, how quick. You wait maybe five minutes.  They do a really, really good job. And if you are looking for, maybe you are looking for a new golf course house, we have got a couple. Maybe thirty-five, forty.

JB:  That is great.

Jason:  Maybe, I do not know, sixty you could go look at.  Depending on what price range. All you have got to do is go to Jason Bramblett dot com. Just put in golf as a keyword or something like that, and you can pull up every single thing we have got out there. But we have got some good emails and some questions this week. Folks have really engaged the show and been sending me some really good stuff.  When I start to see things that are really, really common and maybe we get the same question two or three times, and usually those are the ones that I will talk about on the air and dig in there. Then we get some stories that are just, well

JB:  Not for broadcast?

Jason:  Maybe. They are entertaining though.  They are entertaining. We do love you. Promise.  But yeah, there are some interesting things happening.  June was a weird month. I do not know what happened. We probably should have sampled the water because it was just interesting.  Of course, your June, July, you sell them in June, but you close them now, right?

JB:  Right.  Right.

Jason:  In July and August.  And we have gotten through all of them. Thank goodness.  But flooding, flooding, and more flooding. If you are dealing with that, if you just woke up this morning and you are like what in the world happened, stay tuned because we are going to dig through a bunch of different things to help you figure out if it is a problem you can solve or is it is a problem that you need to get a professional in or is it just one of those fluke things that is, like the hundred-year flood.  

JB: Right.

Jason:  It is just, well, it was your day. So maybe there is nothing that you can do. We are going to dig into that.  We have got several things just to point out to you. So we are going to dig into all that today. You can go to Jason Bramblett dot com like I said.  You can look at the website there, check out any golf homes. We have got stuff on the, we have got some really cool houses on the lake, too.

JB:  Okay.

Jason:  And it is still warm.

JB:  Oh yeah.

Jason: Blues Lake, you can go there any time.

JB: That is bathwater.

Jason:  Eighty-five in December.  You are good.

JB:  That is good.

Jason: Let’s jump in, JB.

JB:  All right. I will tell you what.  You were mentioning some emails. Is it okay if we start off with an email?

Jason: Let’s do it.

JB:  We have got one from Bud.  It says Mr. Bramblett, could you explain how your program works if the house does not sell and you buy it?  We need to relocate, and two mortgages is not an option for us. Thank you. Signed, Bud. I think a lot of folks in that same boat with Bud there that cannot do the two mortgages.

Jason:  Absolutely.  Well, look at your big companies in our area who we deal with.  Sengenta, Volvo, well, it used to be Reynolds.

JB: Right.

Jason:  A lot of the bigger companies, universities, they have these relocation packages, and there are two reasons why they do that.  Benefit for the employee is you are disrupting your life probably because we are asking you to move to a different location. So part of that incentive to do that, because most of them have kids and families and schools and all these things that you have gotten involved with, the company will step in and they will give you what they call a relocation package.  They will buy your home if it does not sell in a certain amount of time. So essentially, that is what we created. We just decided that well, why do you have to work for a big company. It is just math.

JB:  Right.

Jason:  So we came up with our own program, our own relocation program, if you will.  It is just called a guaranteed sale, which is what Bud is referring to. So, several things that we consider when looking at a property, which pretty much is what everybody else looks at, too.  It is kind of like we are a buyer just like Joe Blow off the street is, right?

JB:  Right.

Jason:  But condition, location, appraisal, and this thing called the absorption rate.  That may be the one that most people obviously may not be familiar with, but it is really just the same things that we have dealt with with all of our large corporate partners and their relocation conditions.  Does the house need repair? That is really what we are looking at.

JB: Right.

Jason:  Has it been taken care of?  We look at deferred maintenance as a key thing we look at.  We talked about that a couple of weeks ago on the show. But normally, what we find is if you have deferred the maintenance on the exterior, there is a pretty good, well, about ninety-nine point nine percent chance the mechanicals have not been really maintained either.

JB: Right.

Jason:  These are the folks that when we come up the porch is rotted and the door jambs are rotted, and then we ask them about a maintenance agreement for their HVAC, and they are like what? I changed the filters once in six years, and that is why your heating and cooling system is wheezing now.  If it turns on and you hear a whistle

JB:  Not good.

Jason:  it is not supposed to do that.  Those are the type of things that we are going to look at. But that is everybody.  Everybody is looking at that type stuff. A buyer typically today is going to have a home inspected and checked out.  That is what they are looking for. They are looking for it is pretty, but are there problems?

JB:  Exactly.

Jason:  Right?

JB:  Exactly.

Jason:  And most homebuyers are not heating and cooling contractors or roofing contractors.  That is why they have these professionals to come in here and make sure that this is what I think I am buying and everything is of pretty much sound quality.  Or at least reflective of the age. Okay? If you have a thirty-five-year-old furnace, well, let’s face it. That thing should have been dead a long time ago. Great that you got all the use out of it, but whoever is buying that house is probably going to factor in we might have to put a new one of these in.  More than likely, yes, you will. Eventually it is going to stop someday. Those are the types of things that any buyer looks at, and of course, that is what we look at as well. Are you going to be able to make the repairs?

JB:  Right.

Jason:  So there are issues, can you take care of them?  This is one the things that drove me nuts when we did corporate relocation a lot. I used to do a boatload of it.  These guys, they would make the owners fix a nineteen-cent cracked outlet cover.

JB:  Wow.

Jason:  I was like really?  The house is seven years old.  It is missing a screw, man. It is not that big of a deal. And those relocation companies are like nope.  Everything. It is all or nothing.

JB:  Right.

Jason:  There was no bend. I get it because they are buying a house basically sight unseen.

JB: Right.

Jason:  And they are there to protect the employer.

JB:  Exactly.

Jason:  Because when they lose money on those things, it comes out of somebody’s bank account.  

JB:  That is right.

Jason:  Typically, the big company is the one writing the check.  So they are going to protect themselves the best they can. We do not get quite as nit-picky as that.  I really do not care. I can fix an outlet cover. If you have got a hole in your roof, that is a whole thing.  Indoor waterfall? We are probably not going to qualify. I had a guy who actually got mad because I would not, I could not get his house, he would not do the things we need to get the house to qualify for the guaranteed sales program. One of the things that he did was he put a hydraulic car jack in the crawl space to reinforce the floor.  I am like that is not going to work. And he is like it is working. Eventually, the gasket is going to break, and here is a tip. All I have to do is turn this little handle and wham!

JB:  You are back to where you started from.

Jason: Right. This guy could not understand.  He kept arguing with me. It is rated five thousand PSI or whatever, pounds per square inch, and it is way maximum overload. I am like it is not permanent though. It needs to be bricks on a footing.

JB:  That is right.

Jason:  Call downtown to the county and say hey, is this an acceptable repair?  So obviously, that was a pretty big red flag. Well, then we found out he did a lot of the plumbing and electrical work, too.

JB:  Oh boy.

Jason: In case you electricians did not know out there, duct tape is just as good as anything else you can use.

JB:  That is right.

Jason:  I get it.  It was a desperate situation.  I get why people call us in those types of situations.

JB:  Right.

Jason:  They had some financial problems, and they were doing what they could do.  The house has to be safe.

JB:  Exactly.

Jason:  It has to be safe.  It has to be safe because when we go to sell it we are either going to have to make it safe or fix everything that is wrong with it. Those are the types of things that we are looking at just like the relocation companies do when they come in and offer these to these corporate things.  The other thing that the relo companies are a stickler on is they will not let the homeowner make any repairs themselves. They all have to be done by professional contractors.

JB:  Oh really?  Okay.

Jason:  They want that in writing.  They want to know that person was qualified to make that repair.  The other thing we do is an appraisal, and that is pretty standard.  We get an appraisal just like the relocation companies do. But the absorption rate really is where we look at it.  That is where I assess my risks. How many houses like yours are on the market and sold in the last thirty, sixty, one hundred eighty days and a year?  And that gives us a percentage and that gives us a likelihood or probability of how long are we going to be stuck with the house? Are we going to be able to sell it quick?  Is it going to be a buy and hold? All those types of situations which is just exactly the same metrics that everybody uses.

JB:  Right.

Jason:  If you are looking at this type of buyout type situation.  We have been doing it for twelve years. We have offered the guaranteed sale.  I was doing it for eight years before that the corporate relocation, which is kind of where the whole idea came from.

JB: Right.

Jason:  We have bought several millions of dollars’ worth of real estate in the Triad, and we will continue to do that.  It is a great program for folks just like Bud. This is our number one person that we see is the person that is getting relocated out of the area, sometimes by choice, but sometimes the companies do not offer, depending on how high or low you may be in the company, they may not offer you an incentive, a relocation package.  So that is where we get a lot of calls. Folks that are having to move to Texas or Tennessee do not want to have a house two thousand miles away. Or just simply cannot afford to. With our program, we have got a hundred twenty days to sell it, and if we have not sold it, we buy it. And guess what, Bud? When I own it, you have to leave.

JB:  That is right.

Jason:  You cannot stay.

JB:  No squatting.

Jason:  I actually had to put that in the agreement though because I did have somebody that did, they kind of thought oh, you mean I have got to leave now?

JB:  Yeah, that is usually how it happens.

Jason:  Yes, we kind of need you to leave so we can get it fixed up and get it sold.

JB: That is right.

Jason:  It is out there for folks like Bud if you need it.  If you need, a situation where you simply cannot or do not even want to take the risk of getting stuck in two mortgages. That is a great program for that, too.  All right, JB. Let’s do this. Let’s take a quick timeout. Let’s go pay a couple of bills. We are going to come back. We are going to hit that flooding list, so if you have issues right now with your crawl space, your basement and or well, just your house in general with all this water, stay tuned.  We are going to give you a good weekend job punch list to go through.

JB: All right.  

Jason: Very good.

JB:  Sounds good.  Stay with us, folks.  We’ll be right back. (in/out music)  And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett.  I am JB. And before the break there, of course, when you opened up the show, Jason, we have obviously had a lot of flooding

Jason: Yes, we did.

JB:  this past week or so.  Walk us through that warning list. Talking about some flooding issues here.

Jason:  Absolutely.  The first place you need to look is up actually.

JB:  Well, yeah.

Jason:  Which is your gutters.  This is key because this is where all, really most of the water is coming own with force anyway, and also a lot of it.  When you think about how much water a roof is collecting, it is a lot. Are the gutters overflowing? If they are overflowing, then they are not getting to the downspouts.  It is just dumping right over the edge, and then of course, what is right there? Your foundation. That could be a source of your issue. It is just a clogged gutter. I had an issue at my house.  They are not pitching, the pitch is not strong enough to push all the water, when we have these monsoon storms.

JB:  Right.

Jason: And we have a gutter that is just, it cannot keep up with the volume.  So we are going to have to either make sure it slopes quicker and or get a bigger gutter or I do not know.  Do something. But we have seen that issue especially this past three weeks. It has been unreal.

JB:  It has been crazy.

Jason: It could be some simple debris in there that needs to be cleaned out. The next thing is to actually look at the downspouts themselves. Are the downspouts connected first of all?  You would be surprised how things just happen. It settles over time and you get this gap. When it is really raining hard, it is overflowing that, and of course, that is right there, just right next to the foundation wall and or the basement wall, and it is running down and if you have got a block basement, they are not, cinder block is not waterproof.  

JB:  Right.

Jason:  Just set one outside. Take a cup of water, pour it on top.  It will pretty much absorb the whole thing.

JB:  It is porous.

Jason:  It is.

JB:  People do not realize that.

Jason: Very much so.  The contractors will put the tar and all the goop on the outside of it to put that sealant there, if you will, but just like anything else, it is not one hundred percent.

JB:  Right.

Jason: When you have these types of situations, you have these conditions, where it is just unbelievable how much water and pressure and static pressure, you can end up with some pretty big issues pretty quick.  The downspouts, check those. Also look for cracks or is it broke or anything like that because that is a huge, big source. This is the other one. This is probably the one that I see the most is over time, your house is new. The building inspector comes out there and they measure, and they look at and they make sure that the pitch of the dirt or the yard is flowing away from the house at the proper angle.

JB:  Right.

Jason:  But over time, after three, four, five years, we keep chucking pine straw and nuggets and all kind of stuff on there

JB:  That is true.

Jason:  and it keeps building up.  And what we normally do is because all the bushes are in the way, what gets the most pine straw and the most mulch is the front part. So we keep building these mounds up, and now what we are doing is we are pitching everything toward the back of the house, or toward the house after it starts to decompose, and now becomes dirt.  After ten years, you have added six, seven, maybe eight inches of material and you just keep piling on top. Well, now all of that water is just pitching right up against the house. Look at that. You just stand off to the side, kind of turn your head sideways there, and if it is rolling towards the house, that is not good.

JB:  So you are creating like a little dam there.

Jason:  Pretty much.

JB:  So it is all just backing up there.

Jason: Absolutely.

JB:  I did not think about that.

Jason:  It will rest right up against the foundation wall, and of course, the ground will absorb it until the ground cannot.

JB:  Right.

Jason: And then where does it go? Its static pressure pushes right up against your foundation of the house.  Some of you, unfortunately, have found out the hard way this past three weeks that you have got some major issues and where the foundation wall of your home is now cracked, and it is actually bowing in.  That is the pressure of that dirt being compacted and that static pressure. I can tell you from first-hand experience it will absolutely collapse your house. Big time. I had the front of a home, forty-two feet of the house landed in the basement.

JB: Wow.

Jason:  Yeah, that is not cheap to fix.

JB: Yeah, that is major.

Jason: And by the way, your insurance does not cover that.

JB:  Really?

Jason:  No. If you look at your insurance policy, your standard homeowners’ insurance policy does not take care of ground movement unless it is an act of God like an earthquake.

JB:  Wow.

Jason:  If it is simple water pressure, because they look at that as a neglected thing, it is not covered.

JB: That is good information.

Jason: You probably can get a special rider.  I am sure they will take your money for it. They will make one up.  You can get a special rider for anything. You can get black cat insurance. Some of these guys will take it. So check that slope. That is a big one there.  A lot of you have crawl spaces. You have vent wells. That is to keep the air flowing under the house, so you do not end up with this molded and mildewed mess in the basement.  The vent wells need to be opened so you can keep the air circulating. But if you open them and you have got all the debris and everything pitching back toward the house, guess what?  You are driving down I-40 in a rainstorm with your sunroof open, and everything is just dumping into the crawl space. I have seen where you get in the crawl space, it has got six, seven, eight inches of standing water.

JB: Wow.

Jason: It is like a little pool under there.  A lot of times it is coming in from overflow gutters, a bad downspout into the crawl space vent, and it is just flooding the whole thing.

JB: Wow.

Jason: So make sure that is, the earth needs to be below, it makes sense, the vent because yet have I seen water go flying up.  I am not saying it cannot. Just from a gravity standpoint, I have not seen it jump over the vent.

JB:  Right.

Jason: But that can be a big mess.  A vapor barrier, which is nothing more than a fancy word for a piece of plastic.  Right? It needs to be six millimeters or thicker to put in there. That just keeps some of the humidity and the moisture from the dirt coming up and hitting the timbers and insulation and those types of things. That is a pretty inexpensive thing. Some people can do it themselves.  If you do not like dark, muddy, cold, wet places like your crawl space, there are people to do it for you.

JB:  That is right.

Jason: There is somebody out there that will do it.

JB: It is kind of creepy place.

Jason: It can be especially when you get those camel cricket things down there.

JB:  Oh man.

Jason:  Geez. Those things are

JB: Harmless as can be, but they are ugly.

Jason:  Yes, they are.

JB: Scary-looking.

Jason:  They are no fun. That is no fun.  Another big one, and this is, especially right now in the summer, is the condensation line coming off the heating cooling system.

JB:  Oh yeah.

Jason:  All right. So you could have it in the crawl space, and I have seen it where the pipe is just broke, and it just is not getting the water out.  I have seen where little critters have gotten up in the pipe because it is going outside, and they have made little houses in there, and clogged the whole thing up.  

JB: That is nice.

Jason:  Or just landscaping, mud gets in it or whatever, and it ends up backing up in the crawl space and it breaks.

JB: Right.

Jason: So those are things to check.  If you do have one and it is dumping right beside the house, the code has changed.  Now they make you push them out a little bit, but that is pretty recent. Most of them are only three to six inches away from the edge of the house.

JB:  Yeah, it seems like mine is just like it seems like.  

Jason: So now they make you put them out a little bit further.  So if you have one and that part of your crawl space or basement is always wet, it is probably the condensation line.  I am told those things in the summer can dump anywhere between seven to ten gallons of water a day.

JB:  Oh wow.

Jason:  So it is a lot.  It looks like a little drip, but twenty-four hours a day, it adds up pretty quick.

JB:  That is right.

Jason:  So that is a quick little punch list for your weekend there.  Definitely check those gutters and downspouts and vent wells. Those are the big ones.  And if you need help, go to Jason Bramblett dot com. We have got great contractors that can help you with your water mess this weekend.

JB:  All right.

Jason: All right, guys.  Have a good one. We will see you here next week.

 

JB:  All right.  Thanks, Jason.  Talk to you then.  Have a great weekend everyone.

Posted in Radio Show
Aug. 4, 2018

08.04.2018

 

Listing to the podcast here:  Jason Bramblett Real Estate Show 

 

 

JB: Good morning and welcome to Real Estate 911 with your host Jason Bramblett. For the next thirty minutes, we are going to be talking all things real estate.  We are live in the studio. So we welcome your calls if you have got anything to add to our conversation. Give us a call at 336-553-0796, 336-553-0796. With that we say good morning to the man with the plan, Mr. Jason Bramblett.

Jason: Good morning. Good morning, everyone.  Has anybody got a boat out there?

JB:  Tell you what, man.  You know it is bad when I see the birds and the groundhogs lining up two by two.

Jason: That is right.  Exactly.

JB:  It is good thing to have an oar by your side this week.

Jason:  All those guys who had that boat sitting underneath that tarp for nine years, you finally got your vengeance back.  You are like, see? I told you we needed to keep that boat.

JB:  That is right.

Jason:  Just in case.

JB: I tell you what.  It has been a time.

Jason: That is for sure.  That is for sure. I read something the other day.  Some kid said to the mom, the mom said God is not going to flood the earth again.  He said he would not do it. He said he did not say that about North Carolina.

JB:  That is right.

Jason:  There is a big difference between the world and the state, right?

JB:  That is right.  I tell you what.

Jason:  It has been something.  Three weeks ago we were sitting here going well, we sure could use a little rain.  Well, we sure did get it.

JB:  The grass looks great.

Jason:  It does.

JB:  I am always a half-full guy. At least the grass looks great.

Jason:  It is looking good.  All the landscapers are rejoicing out there.  Work security. It has been something. But if you have had some issues with your crawl space or basement that you may not have ever had until now.  

JB:  Yep.

Jason:  If you need some help there, we have got some resources available for you.  We have some great contractors that can step in and help you remove that water from the basement or crawl space. If there is insulation damage and sheetrock and all that, they can step in and help you out because it is, that is a mess.

JB:  I know a lot of folks going through some times right now.  It was quite the chore. There have been a lot of people affected by this rain.

Jason:  That is it.  Hopefully we are going to dry out this week.  As they say in real estate, rain or shine, we still have to make it happen.

JB:  That is right.  Life goes on.

Jason:  It does not matter.  We sell them in the snow.  We are like the post office. Right?  

JB:  That is right.

Jason:  Isn't that it?  Rain, sleet, and whatever it was that they did.  Snow. It did not matter. We were going to deliver the mail.

JB:  There you go.

Jason:  Well, we are going to sell the house no matter what.

JB:  Right.

Jason: We have got to get that done.  So it is a good time to get your roof checked out that is for sure.  You should be able to, you have had plenty of hours to see where the water is coming in.  So you can get up there hopefully and find that. But if you need help there, we definitely have some great contractors.  Roofing companies. They are all a little busy right now, but we can find one for you. Or you can get creative and do your own patch job for temporary-wise to get that done.

JB:  Right.

Jason:  It has been two weeks of lots of emergencies.  We have had folks that have called the office like do not show the house.  We have got water coming in the basement or this and that. Or the crawl space is completely soaked and that has never happened.  That is the one thing that people get freaked out about when you are going to buy a house. You do not want to buy a house with an indoor swimming pool in the crawl space.

JB: That is right.

Jason:  Or most people do not anyway.  Anyway, we are going to dig into that.  We are going to dig into what you can do to get your home sold.  We have not talked about that in a while. What are the buyers looking for today?  We are going to give you the list. We are also going to give you the list of what they are not looking for because you are in one of those two categories.  

JB:  That is right.

Jason:  Either you are in the hey, they like what I got or not so much.  They do not want it. You may not know which category you are in.  I am going to try to paint a picture and help you figure it out. By the end of the weekend, you are going to be like I can see why maybe my house is not showing at all because I am in that other category.

JB:  Gotcha.

Jason: We want to get you moved over to the category that people want to come see your home.  Stay tuned there. We have got that plus some great emails today that came in this week. So we will talk about that.  Obviously, you can give us a call. It is 553-0796.

JB:  All right.  Well, let's get going. I guess, just like you said. Knowing what a homebuyer is looking for, Jason, that sounds like a pretty big category.  So let's start off with that.

Jason:  It is a big one because it has got moving parts, that it is price point-centric.  It is demographics moving up, moving down, but at the end of the day, there are kind of three big swaths of people or categories, if you will, that we see in real estate, and it is definitely, this is the largest section of people that we see taking action, and that is these younger buyers.  Right now, I think in the Triad there are about forty-eight percent of homes that are being sold that are people that are under about thirty-five years old.

JB:  Okay.

Jason:  It is a pretty good amount of folks that are stepping into home ownership.  Most of them, a lot of them are moving into some newer homes, and that is another thing that we are seeing.  Or very, very updated. Part of that is because they just do not have the time or the skill set that they want, they just do not want to fix stuff.

JB:  Right.

Jason:  New construction is doing pretty well right now.  Most of the homebuilders I am talking to are pretty pleased with the activity, pretty pleased with where they are going, and one of the concerns now is can you keep up with demand, and if do you not keep up with demand and it jacks the prices up so high that well, now we are starting to lose these first-time homebuyers are not able to afford that first-time house.  Of course, you have got two other things working against you. Interest rates rising and materials. Materials are ridiculous. It is amazing. I was in one of the big box stores. I have not bought a two by four probably in a while, but I am thinking they are two bucks. They are like four-ninety for one board. I was like what in the world.

JB:  Wow.

Jason:  It is just simply shortage of materials.  They are all burning in California, I guess.  I do not know. All the trees are on fire out there.

JB:  I guess.

Jason:  I was shocked.  Then you have got this downsizer.  This is interesting. You have got the folks, kids are gone, empty-nesters, whatever, and they just do not need the house.  So they are moving, and here is what we are finding with them is they kind of want the same thing. They kind of want something new or something with a warranty or something that is already fixed and done.  They do not want to have to step in there and mess with it. Then you have got the middle group. And they are not doing anything. The middle, it is like the younger folks are buying. The older folks are empty-nesting and downsizing, and the middle, they are just sitting tight.  They are not doing a thing.

JB:  Wow.

Jason:  It is like what in the world.  It is interesting. But the downsizer right now, what we are seeing is normally they are in about a thirty-two hundred square foot house, maybe a little bigger.  Something along those lines. They are wanting to downsize to twenty-seven hundred is typically what we are seeing. Twenty-five hundred, twenty-seven hundred. But they want new or just an amazingly updated house. They do not want to step into problems. Many of them are migrating towards the townhome-style or the twin home.  So if you have that stay tuned because we are going to dig into what it is specifically they are looking for. The other downsizer, this is the tough one, and this is the one we have got where they are really downsizing, and they are going from a pretty good size home, but they are looking for that three-bedroom, two-bath, two-car garage townhome, patio home, but in that one fifty range.

JB:  Right.

Jason:  Man, I am going to tell you what. If you could get dirt and build a townhome for a hundred and fifty thousand new, you could print money.  DC would be calling you up and saying why are you taking all of our paper down here. You could absolutely, but you cannot, the math does not work.  You cannot get the dirt cheap enough and the materials cheap enough to get to the price point.

JB:  I got you.

Jason: But there are folks in the area, in the Triad especially, that bought a townhome, a three-bedroom, two-bath, two-car garage and you have owned it for a while, and you may have bought it for a hundred, a hundred and ten, a hundred and twenty thousand back in the day when land was cheaper and materials were not so high.  Now all you need to do is just do some updates and you could probably get that price up into the one forties and one fifties, and there are buyers out there. Amazing. We put some townhomes on the market this week, and I cannot believe some of the offers we have received. Cash, no contingency, no appraisal, no inspection. Huge non-refundable deposits.  Like we are buying this thing, period. Do not even really care what is right or wrong with it. This particular unit was in great shape, but that is how committed the downsizer is to finding that product because it just does not exist out there.

JB:  Right.

Jason:  And when you have one, it goes pretty quick. The downside with that is we had five, six people that wanted it and we only had one.  I had five people that we're like hmm, sorry. They made pretty good offers, too, but it was just like man, it stinks when you have got to say no.

JB:  Right.

Jason:  I would rather have four or five other options for them out there.

JB:  I got you.  I am with you.

Jason:  But it just does not happen. If you had some dirt and you could figure that out, you would be in high cotton, as they say. That type of home that if you have that and it is updated, and you can get it.  What is updated? What are they typically looking for? Well, they like to have the showers, the no-step in showers, right, because they are downsizing. They are up in their years. This is what they want. Granite, stainless steel.  They like hardwoods. They like high ceilings. It does not have to be perfect, but essentially when they walk in, those are the things that captivate them. Right? That is what they are looking for. Because if you are coming from a thirty-two hundred or four thousand square-foot house, you probably got some pretty nice stuff, too.  

JB:  Right.

Jason: They do not want to downsize in quality. They just want to downsize in space.

JB: Right.

Jason:  So you still need to keep that quality up. And it is just simple, clean living. That is really what they are looking for.  This younger buyer, for the most part, is still looking for that non-fixer-upper. They just want it to be move-in ready.

JB: Right.

Jason:  And this is why they are migrating to new construction. But the other thing we have seen is they just, they will not even come look because they just do not want to inherit your problems.

JB: Right.

Jason:  They are discriminating against the house just based upon age and just assuming, some of them, what is happening is they went out and looked at a few, and you guys have kind of set the pace for the whole category of the 1996-2000 home that nobody takes care of them.  

JB:  Right.

Jason:  Yours may be great, but we have got to tell them that because they will not even come look because they went and looked at three and they are all rotted wood and problems. So they just throw everything in the same category.  Right? But they do not want to walk in and see your deferred maintenance. And we have talked about this week after week, but it is just screaming out there in the marketplace. We do not want your problems. Fix your problems.

JB:  Right.

Jason:  And that is where we are going to be with this category and these folks for the next three to five years.  This is where we are living. We are not going to have enough demand to really make anything change. The consumer that is out there demanding saying I do not want your issues. Fix your problems. I may come take a look at your house.  Maybe. Or maybe the Gen Xers start to move again. I do not know. They seem to be the ones in the middle that will actually attempt to fix something.

JB: Right.

Jason:  Unfortunately, they do not always fix it perfectly, but here is the thing. Those guys are not really moving because most of them, that category in the middle, they are sitting on interest rates that are two point eight to three point three percent

JB:  Right.

Jason:  and rates almost doubled that in the past year.  So they are not going anywhere because there is not enough pain to say to move me.  I could put up with a lot if my interest rate is half of what it is. So most of them are not moving. It is a quirky little market in that we have got some interesting dynamics, but at the end of the day, both of the parties that are moving, which is the first-timers and the downsizers, they both really want the same thing.  They do not want this ridiculous deferred maintenance home and they want something that is pretty darn nice. This is again why you start seeing new construction. If you do not know where to start, like if you do not even know that your house may be a little bit worn out, we can help you with that. Sometimes it is just good to get a second set of eyes on things.

JB:  Yep. Absolutely.

Jason:  I have a real estate coach I work with that, Bob is phenomenal, and one of the things I have him for is because when you are in the storm, you cannot see the storm.

JB:  That is right.

Jason:  You need somebody to kind of look up above and say you are doing good here.  You need to improve this, and that is why we have the systems in place that we do.  Sometimes you just need help. You do not know that your house stinks. We need to tell you that.  You have been nose-blind for too long.

JB:  There you go.

Jason:  Some of you have been blind period for too long, and you need to see yeah, that is rotted wood.  When you stick your finger all the way through it

JB:  Yep, not good.

Jason:  that is not a good thing. Anyway, JB, let's do this.  Let's take a quick timeout. We will come back. We are going to dig into a couple of your emails and then also what should I fix. What are the must fix things on my home to get it sold?  We have got the list right here for you.

JB:  All right. Well, stay with us, folks.  We will be right back. And remember, too, if you want to give us a call, 882-7874.  You are listening to Real Estate 911 with your host Jason Bramblett, and we will be right back. (in/out music)  Welcome back to Real Estate 911 with your host Jason Bramblett. Before the break, we were talking about maybe you have got some challenges, some issues with your house.  And Jason, you can help us out where we should start to fix those up.

Jason:  The one thing that we know is if you are going to put money in something, let's put it in the right place.

JB:  That is right. Be smart.

Jason:  Exactly.  For some reason, folks tend to migrate to granite countertops.  I do not know why. And it is just like there are so many better places you could have put that money.

JB: Right.

Jason:  Especially if you have got the rotten wood issues and different things.  I do not know. You say granite countertops average maybe three thousand a kitchen now. It is way down from what it used to be. It is kind of like diamonds.  When they start selling them at Walmart, I am like really? Precious stones. All right. So when they start selling granite pretty much everywhere, it kind of loses it touch.  

JB: Right.

Jason:  Here is what we have found is kind of the top things that buyers just, one of two things.  They are going to ask for these to be fixed every single time, or they are going to keep going and looking and find the home that does not have these issues, and you will just be deleted.  So you are not even going to be considered. They are not even going to make an offer on your house just because of the deferred maintenance. So when you walk around your home, look at everything that is three to six inches off the ground, you need to really look at it, especially the trim boards, porch rails, and siding.  These are key things that are just the pet peeves of buyers today that they just cannot seem to get past, and they will not get past until you fix them. If you have got a production house, and what I mean is that your house looks like all the other houses in the area, and it is about four to six years old, you have probably got some rotted wood. Unless you have done a really good job and stayed on top of it and went out there and painted and all that, because they usually do not put pressure treated lumber out there.

JB:  Nope.

Jason: They use pretty inexpensive poplar wood, and it does not do well with the elements.

JB: That is right.

Jason:  You can slather some paint on it every year and probably be okay, but most of the time, that first one to three inches right there by the door is always just disintegrated.  You know what I am talking about. You have seen it, I’m sure. But when you can put your finger through the one by four, it is time to have it replaced. It is almost always, and dormers. Dormers are another one.  Especially if you have got Masonite. I would suggest that if you have Masonite dormers, replace them with hardy plank. That way you only have to do it once.

JB:  Right.

Jason:  That is a cement board. It really is not going to rot. Hopefully.  Yeah, you should get those things done because this is the eyesore stuff that people just cannot seem to get around. The other one, and this one is huge. This is definitely number one.  The windows that have the blown seals.

JB:  Oh yeah.

Jason:  Go ahead.  You do not even need to ask. It is kind of like my pastor says. When somebody asks I am going to pray about getting baptized. You do not need to pray about that.  Just do it.

JB: That is right.

Jason: It is not one of those, it is not a conditional thing.  You are supposed to. Just do that, right?

JB: That is right.

Jason: Depending on what your religious beliefs are. At least, that is in ours.  Kind of the windows are the same way. People do not want, there is no search tab on Zillow that says please show me cloudy, milky, fogged up windows.  No, they want them to be clear and see-through, and if they are blown, and you know what I am talking about. Everybody has seen the seals and they are fogged and they look horrible. Hundred percent guarantee they are going to want those fixed.

JB:  Right.

Jason: Just do it.  It is just one of those things.  Just do it. You do not have to think about it.

JB:  Do not act surprised when they bring it up like you do not know what is going on.

Jason:  Right. Exactly.  Here is the thing. The window companies are slammed right now. They are all booked out three to six months. Or three to six weeks, I am sorry.  Not months. Three to six weeks. So if you are thinking about putting your house on the market, go ahead and do that now. If your house is on the market, go ahead and get them out there to measure it.  It is not as crazy expensive as some people think. This is the one thing as well. I am always surprised that the value that people put on different things is usually you are double almost. Sometimes. Not always.  Sometimes you are on the money, but windows are not terrible. I have had folks think that it is going to cost a thousand bucks, and it is like two hundred.

JB:  Right.

Jason:  Significantly less.  Carpet, that seems to be another one where people just over calculate.  They go oh my gosh, carpet is going to be ten thousand dollars, and it is like thirty-two hundred. Just get the information. It does not cost you most of the time anything to get the information.  Pesky leaks and drips and different things around the shower heads and diverters, that is another one that comes up all the time on these home inspection reports. How can you test that? Well hopefully, you are using those every day.  Hopefully, and you can tell. So turn it on, and if pull the little diverter and the water starts going to the shower and it is still gushing out the faucet, that means your diverter is messed up. There is something in there that is not working properly. You need to have a plumber come over and fix that because those are things one hundred percent of the time that people ask for because nobody wants to deal with plumbing issues.

JB:  Right.

Jason:  When they go to buy the home, they want that to be right.  They do not want the fogged windows. They do not want the rotted wood.  They do not want rotted dormers. They do not want porch rails that are rotted.  Okay?

JB: Right.

Jason:  So these are just, I would say ninety-nine point nine, nine percent of the time, they are going to come up on the home inspection or they are not even going to consider your house for an offer. Think about that.  Oh, and the other thing, replace the wood. Do not go to the big box store and slather on some kind of goop. Nobody wants a 1960s bond-o-ed house. Just like they did not want the 1960 bond-o-ed car.

JB:  Right.

Jason:  You can always tell the body work had been done. Same is true today with the house.  Replace the wood one hundred percent. And if you do not know how, hire someone to do it. I promise you it will be better for you.

JB: There you go.  Well, I tell you what.  We just have a couple of minutes. Do we have time for a quick email?

Jason:  Let's do it.

JB: Let's see.  Heather has emailed in.  She has got a great question.  It says Jason, we are considering keeping our current home as a rental and buying another.  Are there any tax penalties for doing this, and would you advise us to do that? Thank you, Heather.  Good question.

Jason: Okay. It is a great question.  Actually, yeah, so we have had many clients do this over the years.  There are a couple of things that kind of, to qualify, if you will. One is to make sure that the home you are living is in a desirable rental area.  Really, it is pretty simple to figure that out. Most rentals that do very well are in the best school districts in each county or closest to the best school. Whatever that may be.  All of them are different. The second thing is it needs to be a three-bedroom, two-bath, two-car garage to get the highest amount of rent you possibly can or a four bedroom. But schools pretty much trump everything.

JB:  Right.

Jason:  It seems to be in the rental.  Now, tax, penalty-wise, no, there is no tax penalty to keep your home. You will lose the deferred tax credit break, if you will, if you sell it down the road because now it becomes an investment property.  But there are ways you can defer that through a 1031 exchange, or you can move back in it. There are just lots of different options out there. It is a great way to build a portfolio, and we have had lots of clients do it every year. I highly encourage you to do it, Heather. It sounds great.

JB:  All right.

Jason:  Well, everybody stay dry. Boat prices have gone up this week.  It is a good thing. But anyway, everybody have an awesome weekend. We will see you here next week.

 

JB:  All right.  Bye-bye.

Posted in Radio Show
July 28, 2018

07.28.2018

 

Listen to the podcast here:  Jason Bramblett Real Estate Radio Show 

 

 

JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and along with Jason for the next thirty minutes, we are going to be talking all things real estate. We are live in the studio and we welcome your calls.  Give us a call if you have a question for Jason. The number here is 336-882-7874, 882-7874. And we say good morning to the man who has always got a plan, Mr. Jason Bramblett.

Jason: Good morning. Good morning.

JB:  How are you?

Jason:  Good, and you had better have a plan because you are running out of weekends because school is getting ready to start.

JB: Getting into fourth quarter here before long.

Jason:  Yes, it is.  We were just sitting around yesterday thinking wow, this summer just like gone.

JB:  It is gone.

Jason:  It is crazy.

JB: Where did it go?

Jason:  It goes quick.  So some of you feeling that full-court press on selling the house because it is the getting ready for school time, but you still have the house lingering out there that you would like to cut ties with.

JB:  Sure.

Jason:  And then you have got a problem. Cannot seem to get anybody to come through it.  We are going to talk about that end of summer push to get you over the edge. Then also we have some folks that are just like well, should I just throw in the towel and give up?

JB:  No, do not do that.

Jason:  That is no fun.  You cannot sell it without having it on the market, right?

JB:  That is right.

Jason:  We have got to have something for these folks to buy out here.  Then it is funny because I have talked to other brokers in the community and different things over the weekend, and they are just like man, everything is selling but my stuff.  What is up? They are good agents. It happens. It is not you. Let's figure it out. I do not know what is going on.

JB: There is no problem.  There are only solutions.

Jason:  That is it.  That is it. Most of the time it is, well, if we really dig in and look at the data and look at the stuff, most of the time the house has some characteristics of which are not the most desirable.  

JB:  Gotcha.

Jason:  In real estate terms, we call it you have got functional obsolescence.  Meaning it works but there is not anybody who wants it.

JB: I like that. I like that fancy word.

Jason:  You have got some obsolescence going on, and we can help you fix that.  Putting lipstick on a pig is not going to work either.

JB:  That is right.

Jason:  We have got to really get in there and fix it. That is the key. We have got that plus your emails, your questions.  You can give us a call, 882-7874. And of course, you can always get us at the office at 553-0796.

JB:  Well, let's jump right in there, Jason.  Let's talk about not being able to find a house to buy.  I hear there are some frustrated buyers out there in the market.  

Jason: Oh for sure. Definitely. As a matter of fact, about every show I am getting emails about well, I cannot find this.  I can sense the frustration out there. The problem is what you want is what everybody wants. Everybody, I should not say everybody.  Most people, the majority of people buying right now are looking for something that is basically taken care of. No lack of maintenance.  We have talked about that. The deferred maintenance is killing probably three to four hundred of you on the market.

JB:  Right.

Jason:  You just need to take a weekend, hire a handyman, spend a couple thousand bucks, and get it knocked out.  When they come up and you have got rotted trim boards, all the eaves, all the dormer boards are rotted. They are turned off right away.

JB:  Right.

Jason:  This is a generation that is buying now that is not going to take over your problems.

JB:  Right.

Jason:  So if your house has got problems, well, guess what?  It is going to be your problems and your house for a little bit longer.

JB:  There you go.

Jason:  Because they do not want it.  The other thing we are seeing is there is this little learning curve going on out here with these buyers.  That is part of the frustration, too, because it is just not like it is on TV, Jason. I watch it every week and Episode 1, 2, 3, and 4 are all the same.  Everybody wins. I am not winning, and this is not fun.

JB:  And it all happens in twenty-two minutes.

Jason:  Exactly.

JB:  And it is resolved, and everybody is happy.

Jason:  And they have got a commercial break in the middle and everything.  

JB:  What is up with that?

Jason:  I am out here every weekend, and I cannot seem to, my luck is not, my luck tree is not forming or something.  But here is the thing, guys, and this is what you do not see on reality TV because it is kind of frustrating. Like what you are dealing with.  There is not a TV miniseries, I do not think, ever since I have been alive that is called the frustration. That is typically not it. Why do we gravitate toward TV?  It is usually because somebody is winning.

JB:  That is right.

Jason:  Or somebody is losing real bad.  One of the two. The middle stuff, no, there is no series called the frustration out there.  Nobody would watch that. But you are living it, right? Because you showed up to the house, and guess what?  Three other people are there, and they are bidding on the house, too. Let's just say, we will make up numbers.  Say it is two hundred and twenty-five thousand. Well, here is the thing. You could have, you have got to have the best terms to win.  Okay? It is not necessarily price. Do not get suckered in to price. But it does have influence. So price is also in there, but it could be closing date or time or you are going to take the house as is, and this offer wants something fixed up or whatever.  But here is what I know for sure. If you are going to lead in with a multiple offer situation, and your offer is two hundred thousand dollars on two-twenty-five, and you want six thousand in closing costs, you probably are not getting the house.

JB:  Right.

Jason:  That is just, and you cannot get frustrated when you do not. We have some young folks out here that are stepping into the market, and they are out here dropping bombs on some of these owners, and then they are getting mad when either the owner does not respond at all, just says whatever.  

JB:  Right.

Jason:  Or they have three offers and they did not take theirs.  Well, yours was twenty thousand below asking price. Here come the comments.  Well, I am not going to pay full price. I have got to get a deal. You are not old enough to get a deal. Okay?  I am sorry. The market crashed when you were riding your ten-speed. Not ten-speed

JB:  Your tricycle.

Jason:  Your tricycle.

JB:  Right.

Jason:  It is not going to happen.  You missed it. It is not your time.

JB: Right.

Jason:  Okay, and you cannot go back and watch reruns from 2012 and think that it is the same.  No. It does not work that way. We have got to deal with 2018 and what is happening now.  What is happening now in certain price ranges, there is such a lack of inventory, you are going to have to be competitive.  I do not want you to overpay, and the bank is not going to let you anyway. So do not even fear that part. They are scrutinizing these things left and right.  But you may have to improve your terms in order to buy. So you may have to pay the two-twenty-five, and pay your own closing costs and not the seller pay it for you.  Of course, I know your buddy, three years ago when they bought their house, they got it for twenty-five thousand less, and they got all their closing costs paid, and they even threw in a puppy.  Right? But it is a different time. We are not three years ago. It is just not the way it is. Now, I will assure you there are homes on the market that they will pay all your closing costs. They would probably give you a puppy, but they are also in a different price point. In that six, seven, eight, nine-hundred-thousand range.  Whew, bubba. It is getting kind of rough.

JB:  Yep.

Jason:  It is getting kind of rough.  It is getting competitive.

JB:  Is that right?

Jason:  Yeah, the sellers are starting to throw punches at each other. One-ing up.  Well, you did this. Well, I will do this. Because there is a limited buyer pool.  So the inventory is actually pretty high in over five hundred thousand range. The inventory is three times, four times what the two-twenty-five range is.  

JB: So you may get a puppy and a kitten.

Jason:  You could.  You could. As a matter of fact, I think that is probably true.  It is interesting that you said that. It just dawned on me, when we bought this farm that we are at, we got two cats with that deal.  

JB: Really?

Jason:  I do know if

JB:  Kind of a barn cat type of thing?

Jason:  Yeah, I do not know if that is what pushed my wife over the edge or not, but

JB:  Well, they are good to have.

Jason:  It is funny.  The owner is a great guy, or the previous owner, he is a wonderful guy.  He said you will never see those things. They are like feral, they are skittish.  Man, my girls have got those things eating out of their hands now. They have got them spoiled to death.  

JB:  It is amazing what a little cat treat can do.

Jason:  Absolutely.  And of course, they love that.  It is amazing. I was sitting there thinking wait a minute.  I think we got suckered in on that two-cat deal. Anyway, but look, things have changed more in the past twelve months in the Triad than they have in the previous ten years.

JB:  Wow. Moving fast.

Jason:  It moved like that is light speed right there.  You just cannot go with what happened to your friends or your family or your mom, your dad, your brother, cousin or whatever it was four years ago because it is way different.  Now the previous decade prior to that, no, it was pretty much terrible the whole time.

JB: It was.

Jason:  It was pretty predictable, but as they say, times have changed.  So now, you have got to be, do some things differently. So what in the world, outside of price can win?  Again, it is those terms. This is where you find the worth of your agent that can coach you through how to win without just offering twenty-five thousand dollars more.  Because you could offer twenty-five thousand dollars more, but if you are getting a loan, guess what? It is not going to happen unless you have the money to pay the difference because the bank, just because you qualify for twenty-five thousand more in loan, if the house is not worth it, the bank is not going to stick their neck out.  They already did that one time. It did not work out so well.

JB:  Yeah, how did that turn out for them?

Jason:  Yeah, not so good.  So you have got to find agents with systems also that if you cannot find what you are looking for, that they have the systems in place to go find the gold.  Right?

JB:  That is right.

Jason:  Go find the houses that are out there on the market.  If you have hired somebody that all they are doing is looking on the internet or looking on the Multiple List Service, you are going to be in a multiple offer situation all the time.

JB:  Right.

Jason:  Because that is where everybody is looking.  You have got to look, look around the corners.  Look in the past. Look for things and look in areas where all the masses are not looking.  

JB: Yep.

Jason: It is kind of like if you are looking for a deal on a car, it is usually not at the car dealer.

JB:  That is right.

Jason:  Because driving down the old highway.  Highway 8 in Lexington. Right? Or driving down up in 150 in Summerfield or Oak Ridge or something like that. And then you see one sitting on the side of the road.  Then it is like, oh, okay.

JB:  Wow.

Jason:  That could be a deal, right?

JB: That is right.

Jason:  You probably are not going to get one over here off of Wendover though.

JB:  Nope.

Jason:  You can get them financed over there off Wendover though all day long.

JB:  Yes, sir, they will fix you right up.

Jason:  They will get you hooked up, but you are not going to, you have got to go hunt.   You have got to go look. You have go find them. That inventory is out there, but you have got to hire the right people that know where to go look that can help you find that to remove that frustration.  And then when we find the house with no competition, you have got to do another thing which is listen to us. And you cannot get frustrated if, you cannot go in there and drop a twenty-thousand-dollar bomb on somebody and be upset because they are not going to take your offer.

JB:  Right.

Jason:  It is just not realistic in this day and time.  It is just not where we are at. Things that you can do, and the other thing that you need to do is be prepared.  There are a lot of you guys that are running around out here looking at houses on the weekend that you do not even know if you can get a loan.  Okay?

JB:  Right.

Jason:  You have got to be ready to go.  Here is a perfect scenario. We have a house that was in Madison, a great property.  This kid is wanting this house. All in. Wants to make an offer, and I am like okay, great. Well, we have got to get you to the bank first.  I want to see if the owner will take my offer first. I can tell you the answer is no. He is not going to take your offer because it is wind.  Nobody even knows if you can do this.

JB:  That is right.

Jason:  Of course, we sent him to the bank, and not only does he not qualify to buy the house, he could not even afford to buy a room in the house.

JB:  Wow.

Jason:  Just no credit.

JB:  Right.

Jason: That is a frustration, right?

JB:  Right.

Jason:  Here is where we have seen another way.  You have got people out here looking at homes who are not preapproved, and then they find the perfect house, and there are three other people looking at it, and those other three people are one hundred percent ready to go and approved, and it is a Saturday, and you really want the house.  The other people already have their letter of approval. You are trying to get to the bank or to a lender to get you approved, and guess what? By the time Monday rolls around, they have already had all three offers, and you are not even in the

JB: You are not even in the mix.

Jason:  You are not even in the mix.

JB: You were never there because you did not go get preapproved.

Jason:  Exactly.  You went to the batter's box with no bat.

JB: That is right.

Jason:  You can swing all day, but you are not going to hit anything.  So you have got to be prepared. It is a red flag, folks listening, if anyone qualifies in this mix, if you will, if you tell an agent that you just want to see the house, and then you will get approved, ninety-nine percent of the time, you cannot get approved.  We have figured out your plan.

JB:  Right.

Jason:  You like to go look at pretty houses.  Go to open houses and do that. Or go to the builders.  They are open all the time. They will let you walk in, and you can dream and all that.  But do not get frustrated and mad at the real estate agent if they push you to get prequalified because guess what?  No owner wants somebody walking through their house that cannot buy it.

JB:  Right.

Jason:  That is just common sense, right?  And so, just like restaurants are not going to let you come in consistently anyway, eat a whole bunch of food and be like hmm, I do not have any money.  

JB: That is what the internet is for.  You can search all day and look at the pretty houses.

Jason: That is it.

JB:  Their time is money, too, so let them do their jobs.

Jason:  That is right.  That is right. All right. Let's do this, JB. Let's go pay some bills.

JB:  Sounds good.

Jason:  Take a quick break.  We will be back. We are going to dig into getting a house sold.  If you are in that full-court press time is running short, stay tuned.  We will be right back.

JB: We will be right back.  Stay with us folks. (in/out music)  And welcome back to Real Estate 911 with your host Jason Bramblett.  I am JB. Jason, before the break and earlier, you were talking about there are a lot of owners out there that might be having trouble selling their houses.  That seems a bit odd to me considering what we just talked about.

Jason: We were just talking about multiple offers and the market is heated up and all that. Yeah, it is a head-scratcher because it is a weird demographic in that a lot of the properties in the right price ranges are flying, but here is what we are noticing.  The age. The age factor is coming in. Even if you have actually, we have found this, too, you may have a really quality home, but if you are in that seventeen to twenty-two year range, that is the dead zone.

JB: Really?

Jason:  Unless you have replaced some stuff.  Here is the issue that we are seeing is the major ticket stuff.  So your roof, heating and cooling systems and the water heater. The water heater is becoming less and less of an issue because thirteen, fourteen hundred bucks, you can swap one out now.

JB: Right.

Jason:  Not as big of a deal as it used to be.  But the roof and the heating and the cooling systems, because it usually has more than one, now you are talking bucks.

JB:  Yeah, you are.  You are getting on up there.

Jason:  And if you are limited cash, and let's face it, most people are putting down as least money as possible, yes folks, the most popular loan right now is the hundred percent loan.  It is unbelievable, but it is out there. We actually had one of our, Dave Held with Caliber came in. It was interesting. A good portion of their loans are through North Carolina Housing, which is typically a minimum of three to three-and-a-half percent down, a very low down payment.

JB: Right.

Jason:  So we are seeing back again.  Folks are putting as little money down as possible.

JB:  Wow.

Jason:  So that just leads to you have got to be careful down the road because you can get yourself in trouble.  

JB:  We have been down that road before, too, haven't we?

Jason:  Yeah, that is right. We have.  Absolutely. Absolutely. This is an issue that we are seeing.  This is not just like there are four of you out here. There are hundreds and hundreds of homes in the Triad that are for sale between that seventeen to twenty-two range, and the owners are like but my roof is not leaking.  Right. But somebody has got to write a check pretty soon. Sooner than later for sure.

JB:  That is right.  It is going to happen.

Jason:  Let's face it.  It is not going to go another twenty years more than likely on the original roof.

JB:  Exactly.

Jason:  So this is what the buyers are looking at.  The buyers do not have the capital to take that risk.  They are putting the least money down, not because they want to.  It is because that is all they have got.

JB: Right.

Jason:  They are looking at this going how am I going to turn around and drop ten or fifteen thousand dollars in these items.  Simply they cannot. So what do they do? They migrate to newer homes. This is why you see new construction going crazy around here.  It is because well, let's face it. If you are a broke person, you need to buy a new house. That is all there is to it. The less money or disposable money that you have or if you are incapable of budgeting, and we are going to talk a little bit about that, but if you cannot do that and you do not have that discipline, then you need to buy a pretty new house.  Or a brand-new house. Because everything is under warranty.

JB: Yep.

Jason:  You definitely do not need to buy a nineteen-year-old house with all original equipment if you are broke.

JB:  Right.

Jason:  Because it is going to be cold in your house in the winter.  Because when the furnace breaks, you are not going to be able to go out there and just get another one.  

JB:  Right.  You do not need the fixer-upper.

Jason:  Exactly.  Or you are going to do something real smart, which is get one of these big corporations to come out there and they will put a new heating system in for you for twenty-nine percent interest.  

JB:  Right.

Jason:  You do not want to do that.  That is just stupid times three right there.  So you need to be your own bank on these things.  So what we teach folks is this. You need to set up what is called a sinking fund.  And a sinking fund is simply setting money aside. It is a savings account essentially for your house.  All right? If you just bought a new house, let's just say you bought a new one. One hundred dollars a month is what you need to set aside, and then by the time you need to replace your roof or your heating and cooling or whatever, you will have the cash to do it.  If you cannot save one hundred dollars a month for future maintenance on your home, you should not have bought the house.

JB: Right.

Jason: You bought too much house. You need to be able to take one hundred dollars a month, put it in an account because in fifteen years, when you need the money to put the roof on, you have got it.  You have got eighteen to twenty thousand dollars sitting there. Well, what if I sell the house in ten? Great. You have got nine thousand to carry forward to your next home.

JB:  There you go.

Jason:  Or use it for something else.  Or if you end up buying new homes all the time, great.  But eventually, there is going to be a cost somewhere if you carry home, the systems past their useful life.

JB:  Right.

Jason:  Somebody is going to have to write the check for the roof.

JB:  Right.

Jason:  Now I know some of you, your plan is you have studied the weather of the area and you are confident you have bought the perfect house in the perfect hailstorm line, and your whole financial plan for your roof is a hailstorm and getting the insurance guy to pay for it, and you make the deductible.  That is not a great plan, guys. But for some of you, you have lucked out. I have talked to you many times. There is no hailstorm damage for your heating and cooling system though.

JB: That is right.

Jason:  You actually do need to be prepared for that.  Okay?

JB:  That is right.

Jason:  Now here is the thing.  If you bought a house that is ten years old, and you plan on staying fifteen years, well guess what?  You have got to save pretty much double. So you need to be setting aside about two hundred dollars a month.  Why? You just cut the time in half.

JB:  Right.

Jason: Set aside two hundred dollars so that way when the system breaks you are prepared and you are ready to go, and you have got the cash and it is not a financial burden.  It is like kids and clothes. When they are young, they grow. Like some of you parents are going to experience this in just a little bit. School shopping, right?

JB:  Yep.

Jason:  And you go tell Johnny, Johnny, go put on our pants and they are up to his knees.

JB:  He has got the high waters.

Jason:  Exactly because he grew four-and-a-half inches over the summer.

JB:  Right.

Jason:  And he hasn't worn shoes.  He has been in shorts and barefoot all summer long.  All of a sudden, you are like wow, pants.

JB:  Oh, you grew.

Jason:  Same stuff with your house, guys.  You are going to spend a few thousand dollars a year typically on your house to keep it up, average it out, it is going to be a few thousand dollars a year to keep it up.

JB:  Right.

Jason:  Make sure the wood is not rotting.  Just stay on top of that stuff. It is cheaper to do that than to let it go as some of you have, and the house is just destroyed.  I do not want to say destroyed, but it is rough. And you know what I mean. And if you walk around your house and every other board is rotted three-and-a-half to four inches up, it needs to be done.  These younger folks are not going to buy your house. They are just going to go get a newer one or they are going to find someone who has maintained it.

JB:  Yep.

Jason:  So if you have got this roof issue as an owner, this is one of your big challenges.  You may need to consider putting a new roof on because if you get an eighteen, nineteen-year-old house, and all of your competition still has their original roof, and you do not, guess what?  You are the first one out.

JB:  Yep.

Jason:  Guaranteed one hundred percent of the time.  You are the first guy to sell. The next guy selling will be the guy that watched you and said oh, he put a roof on.  Maybe we are going to do that, too. Anyway, as we have talked, landscaping is we go through stuff. Getting the house prepared.  Some of you, the landscaping is just, it has eaten the whole house, and less is more. All right. Think about that. You can't let your holly bushes become the holly trees that ate the house.  You have got to get them taken care.

JB: The holly forest now.

Jason:  Exactly.  Some of you will be surprised that there is even a house behind some of the bushes, right?  Those are the tough ones. Next week we are going to dig into getting into really more detail what we can do to fix up your house with as small a budget as possible.  Get that bang for the buck to get these homes sold that have been sitting. But guys, it really is go through your house. Start at the front door. Walk through. Make a list, get it fixed.  It will sell. I promise you. These deferred maintenance homes are tough. So you can call us at 553-0796 at the office. We will be happy to sit down with you and go through our plan for your house.

 

JB: All right.  Have a great weekend.  Great show.

Posted in Radio Show
July 21, 2018

07.21.2018

Listen to Jason Bramblett Radio Show podcast:  Click Here

 

JB: Good morning and welcome to Real Estate 911 with your host Jason Bramblett. I am JB. For the next thirty minutes, we are going to be talking all things real estate.  We are live in the studio on this great looking Saturday morning, and we invite your telephone calls or comments or questions. You can give Jason a call right now at 336-553-0796, 553-0796.  And we welcome the man with his name on the radio program, Mr. Jason Bramblett. Good morning.

Jason: Good morning. Hope everybody is well.

JB:  We are.

Jason:  It is nice out.

JB:  Very nice.  Not too bad.  Of course, we got maybe a little rain coming through the Triad, but hopefully not going to be a complete washout for today.

Jason:  Yeah, last night was great.  Yesterday was actually pretty good all day.

JB:  It was nice.

Jason:  Hey, we will take that for July.  

JB:  Yes, we will.

Jason:  Just to get rid of the humidity, a little bit is wonderful.

JB:  A little preview before the dog days kick in.

Jason:  Yes, and it will be here. Well, ready or not, it's here actually.  Let me rephrase that. It is here.

JB:  It is.

Jason: Well, we have got lots of things lined up for you today.  And some of you guys that just love digits and numbers, we are going to talk about a few things.

JB:  Okay.

Jason:  Some interesting stuff that is going on in real estate.  It has been – real estate has been the most, I guess, sideways and interesting for the last twelve months than it has for the previous ten years.

JB:  Is that right?

Jason:  The previous ten years was pretty easy.  It is bad. It is not going well. It was not recovering, and now we have turned the corner, if you will.

JB: Good.

Jason: But with turning the corner, comes some challenges.  There are some interesting things that are happening, and numbers tell the story.  And so we will dig into that and let you make your analysis, if you will, of what is happening and where things may be going.  That is always the question. Where is it going? And here is the answer. Nobody knows because all the data is in arrears. It has already happened.

JB:  That is right.

Jason:  If we could predict the future, well hey, everybody would just go buy a lottery ticket, right?

JB:  That is right.

Jason:  Get the winning numbers or whatever.  But we are going to talk about that. We are also going to talk about selling the tough ones.  Some of you guys are like everybody says the market is great, but my house is not selling. What is the deal? Well, we're going to look into that and see what it may reveal.  It may be a numbers thing. It could be condition. It could be lots of – location, location, location as well.

JB:  Right.

Jason:  There are things that change and shift.  There was not a highway there when you bought your house, and now there is.  

JB:  That is right.

Jason:  Especially if you are in the Greensboro-Winston area.  We have changed and added so many roads it is unreal.

JB:  It is.

Jason:  I had the most – I went to Winston the other day and I had the most weirdest thing ever.  I am driving down the road and there is a garbage truck in front of us. There are like five, six people behind, and the guy stops, and we assume he is going to pick up the trash.  He just disappears. He gets out of the truck and just walks into the woods. Just gone. And just left the truck there. I was like well, that something you do not see every day. I did not stick around to see what happened, but it was just kind of odd.

JB:  Huh.

Jason:  That is what I said, huh.  I was like what in the world.

JB: I guess when you have got to go, you have got to go.

Jason: That is what I was thinking.  Maybe, but it was in the city. It was like the only vacant lot he could have gone to, I suppose.

JB:  Who knows?

Jason:  But he was not running.  He was not in a hurry. He just kind of strolling down and just disappeared into the woods.

JB: Wow.

Jason:  I was like I am going to go on about my business, and I guess he was going on about his.  But it was interesting. I say that because we are going to talk about Winston-Salem and actually some interesting things that are going on in Winston-Salem outside of the missing garbage guy.

JB:  There you go.

Jason:  But it was really pretty funny.  And then, the other thing is I have got good news for a lot of you real estate agents.  You have only got like thirty days left to work.

JB:  Oh wow.

Jason:  Yeah, and then you go do whatever you do.

JB:  Permanent vacation maybe?

Jason:  Yeah, they disappear.  But hey, I'm just having fun with you guys.  Do not get mad at me. You can send me emails later.  Third and fourth quarter, this is our time. We love it.  This is exciting. This is one of the end-of-the-year, I do not know, everybody kind of has their season.  I just love the end of third quarter, fourth quarter, first quarter. I do not know why. Those are just like, we just do really well in them.

JB:  Right.

Jason:  When everybody has just disappeared, and so it is good.  So we are going to have fun. We are going to talk a little bit about that.  Expectations going into the end of the year, and are you ready? That is the thing.  Get ready. Get a plan. Summer is almost done.

JB:  That is right.

Jason:  What, school starts in three or four weeks probably?

JB:  Oh yeah.  Yeah.

Jason:  It is right here.

JB: It is coming up.

Jason:  It is. It is.  That is what we have got lined up for today.

JB:  Well, I'll tell you what, Jason, let's just jump right into the data.  Let's talk the numbers there. What is the data telling you right now?

Jason:  Some people, I love the numbers –

JB:  Oh, I do, too.

Jason:  because they do tell the story.

JB:  Right.

Jason:  And some people hate them and they get bored with it.  It is something that, overall, the good thing is the market is good.  It is getting to a very manageable pace. So we had this really weird situation.  We went from a lot of homes for sale to almost none, and we had an inventory issue.  And it is starting to get back to that manageable level. So the good thing is we have added about nine hundred homes to the inventory in the past ninety days, which is great.

JB:  Wow. Yeah.

Jason:  So that helps stabilize, and also a lot of you guys have been frustrated because there just has not been a lot to choose from.  Especially in certain price ranges. That has helped ease some of the tension and some of the frustration and excitement as well.  These buyers get a little bit tense. When you want something and you cannot get to it fast enough, it is frustrating.

JB:  Yeah.

Jason:  Especially when you feel like there may never be another one again just like it.  Even though there is a house right next door to it. But anyway, that is a whole other story.  It is starting to stable out. In certain price ranges, that one-fifty to two-fifty, there is still, they are going quick if you are in great condition.

JB:  Right.

Jason:  If it has got a little bit of age maybe, little bit of deferred maintenance, we are seeing those still take longer, and there are some reasons why that is.  The big one is what I am seeing is the ones that are not. They may be in a great school district, a great area, but it is the houses that basically just deferred all the maintenance.  They moved in six years ago, and that is all they did was move in.

JB:  They moved in.  Yeah.

Jason:  They have not done anything.  So we are seeing a lot of exterior wood trim rot, the shutters are faded, the window seals have blown, they have not been servicing the heating and cooling system and those types of things.  Even discounting the house, I am seeing that. I am seeing where they are putting out they are motivated sellers, five thousand dollars towards this, and buyers don't want it because they do not want to deal with the headache.

JB:  Right.

Jason:  Or they do not know how.  That is the other thing. They do not even know how.  So it is interesting. Today's homebuyer just does not want to fix your problems.

JB:  Right.

Jason:  And they will just move onto the next house.

JB:  Right.

Jason: So something we have not seen in a while.  

JB:  Well, Jason, I know we mentioned this a few weeks ago. We were talking about this.  What has changed or why are today's buyers not buying this type of house? Is it because of what you just said there?

Jason:  We have shifted to this non-fixer-upper mentality.  Even though HGTV is supposedly flip or flop is the top show.

JB:  Right.

Jason:  It is still a small audience though. I think from a skill set, think about today's student.  Most of them are not going to woodshop. I do not even know if they teach that class anymore. They may.  I have no idea. When I was in school, we had woodshop and you had welding classes and you had electrical and all these different classes you could take where they could just give you a sample of what that industry trade was like.

JB:  Right.

Jason:  I will not say we do not have them in the schools today, but they are not, let's face it.  The kids are more interested in that thing that is in their hand called a telephone.

JB:  Right.

Jason:  You can push a button, and it is in the air conditioning.  It is just an interesting time. I will not say that it is, there is always going to be somebody in that demographic that is going to be a fixer-upper.  But as a whole, as a group of people, as a society, it has shifted. Even myself, there are lot of things I will not even bother fixing anymore. I am like whatever.  Just go get a new one.

JB:  Right.

Jason:  So I end up with eight of something sometimes because I forgot that I already had that. Oops.

JB:  Right.

Jason:  I do not probably need to buy any nails, screws or tools the rest of my life, but I can never find the stupid things where I need them.

JB:  Right.

Jason:  So it is just convenient to go to the store and buy more, right?

JB:  There you go.

Jason:  Then you end up with forty-two pounds of nails that you have no idea what you are going to do with them.  You think about our day and when I grew up, I mention the telephone. I had two phones in my childhood. One was tied to the wall.  They did have cords at one time.

JB:  Right.

Jason:  And the other one, when we really upgraded, I got the cordless phone.

JB:  Oh man.

Jason:  It was awesome.

JB:  High tech.

Jason:  Not only could I talk on it, I could still listen to my neighbor's phone calls on it, too.

JB:  Oh, is that right?

Jason:  Yeah, you pick up everything.  We probably had a whole fifty bucks wrapped up in the whole thing.  Now my girls, I lost count. They probably have two, three, four, five smartphones by now, and they are not even in high school yet.

JB:  Right.

Jason:  Because you want to get the what?  Get the new, better, upgraded, it does this, it does that.  I just like to have a phone that I could just talk on it. I am good.  I wish they just had that.

JB:  Right.

Jason:  The talk-only phone.  All these gizmos and gadgets.  Somehow the other day, I do not know how, turned spell check off.

JB: Uh-oh.

Jason:  Well, I was at the church and I went and found some young kid. First of all, I had to find somebody who had a Samsung phone, which was very difficult to do because most all of them are very much Apple products.  And I finally had this young man help me. I had no clue.

JB: Oh yeah.

Jason:  It was about three or four steps, and boom, he had it.

JB:  I go to the seventeen-year-old when I have any tech problems.  And it is like oh Dad, you dummy. Right here. I am like okay, thank you, Einstein.  I appreciate that.

Jason:  Exactly.  That is right.  You do not see TV and VCR repairmen, and some of you went what is a VCR?

JB: Right. You will have to Google that.

Jason:  Yeah, you will have to Google it and see what it looked like.  It is a different time. It is a different generation, so a lot of these things, I do not even think we go to thinking about doing it ourselves.  We think replace it. Here is the thing with the houses. There is just maintenance you need to do in order, one, to keep the quality of the equipment up like your heating and cooling system.  But if you think about Grandma's house, right?

JB:  Yep.

Jason:  She had the same refrigerator for forty-two years.

JB:  That is right.

Jason:  Forever.  My grandmother's refrigerator is so old she used to call it the icebox.

JB:  Wow.

Jason:  Okay. So if that gives you any clue, it is just different times.

JB:  Yeah.

Jason:  I can remember her washer and dryer.  It was in her bathroom, and in the winter, she would disconnect the dryer exhaust, stick a pair of pantyhose over it, okay, turn the dryer on before you get in the shower to dry your clothes, and when you get out, you had a heated bathroom so you are not in the cold.

JB:  Wow. I like that.

Jason:  Very resourceful.  And you just heated the room.

JB:  That is right.

Jason:  Now, you dumped a whole bunch of humidity in there, too, but that is a whole other story.

JB:  And maybe you are a little linty when you come out.  

Jason:  Well, that's where the pantyhose

JB:  That is where the pantyhose, yeah. Well, there you go.

Jason:  Somebody thought.  She thought about that.  Nobody would do that today.

JB: Right.

Jason: And nobody would do that.  You would think what in the world is going on?  And that is what I see sometimes with the houses.  We have got to get back to service contracts. Getting your heating and cooling checked.  I talk about that almost once a month, but it is every home we go in. It is something, the system is just wheezing because the filters are so dirty and clogged.

JB:  Right.  Simple things.

Jason:  Simple things.  Exactly. These are things you do.  Check them quarterly. You need to go into your crawl space and look every four to six months and make sure you do not have standing water down there.  Check for termites. We are in the south. You get a nice damp crawl space that is got a little moisture to it and a little humidity, it is perfect for termites.  We actually have a house right now. It is an older home, but it has got such bad termite damage. It actually has some structural issues. We had to get a structural engineer in there.  It is probably going to be ten thousand dollars to fix that.

JB:  Wow.

Jason:  If they were on a regular contract, it would have been caught.  They do not eat, they did not do that in ten days.

JB:  Right.

Jason:  They did it over years and years and years.  Taking care of stuff can actually save you money over the long haul.

JB:  That is a good point.

Jason:  So something you want to do.  We will touch base on some more of those things.  Let's do this. Let's take a quick time out. We're going to come back, and we are going to talk some more numbers.  Talk about getting that house ready to sell. And if you have been attempting to do that for a while, well, we are going to dig into maybe some of the reasons why it is not moving.

JB: Okay.

Jason:  All right.

JB:  Well, stay with us folks.  We'll be right back. You are listening to Triad Real Estate 911 with your host Jason Bramblett.  We are coming right back. You stay with us. (in/out music) Welcome back. You are listening to Triad Real Estate 911 with Jason Bramblett.  JB along with you. And Jason, when you started off the show, you mentioned some exciting times that are on the way. Can you tell us a little bit more about what you were talking about?

Jason:  Oh absolutely.  I get excited about, when we get to this time of year.  Not that the kids are going back to school. But it is kind of, when I see those back to school sales coming, I am like okay, this is pre-game right now.

JB: Right now is fourth quarter, man.  It is ready.

Jason:  Just something about the end of third quarter, fourth quarter and first quarter that I am, I do not know.  Everything changes in real estate. One of the big changes is about seventy percent of the agents go back to work doing whatever they were doing before they decided to become a real estate agent.

JB:  They come back from vacation, so to speak.

Jason:  Exactly.

JB: All year.

Jason:  Right. And the cool thing is the ones that are left, the ones of us that are still here selling everyday are the professionals, and man, the transactions are just easier.  It is a fun business. It is a fun transaction when you have got a professional that you are dealing with on both sides.

JB:  That is a good point.

Jason:  Those sales, not to put down newbies. Actually, it is not even newbies because there are people that are just terrible that have been doing this for fifteen years, too.  They just do not do it very much. They only do it two or three times a year. Sell one or two houses. You cannot be that good at anything if you only do it once or twice a year.

JB:  I agree.

Jason:  If you do not believe me, go try to play golf twice a year.

JB:  There you go.

Jason:  You will not be over off in Scotland right now. That is for sure.

JB:  That is right.

Jason:  You will be at the pawn shop taking your clubs back is where you will be.

JB:  You will be at the putt-putt.

Jason:  Exactly.

JB:  Right through the alligator's mouth.

Jason:  Right. But it is just a good time.  It is weird, but it is a big shift. It is a noticeable shift, and the people that we deal with in the fall and winter are just great brokers all around. It does not matter where at in the Triad.  The ones that remain really just do a good job. It is frustrating because sometimes you have got to take over in the spring and summer you have got to take over the entire sale, both sides, to get it to the finish line because of the inexperience of some of the folks that you are working with.  I just had a buyer that we are not working with sent me a personal email and said thanks for getting this thing done because their agent just kind of went MIA.

JB:  Wow.

Jason:  Like dark.  I do not know what happened, and I do not know that they know what happened, but I could tell there was some frustration there.  Obviously, we wanted to get the deal done for our client, but obviously, there was a benefit to them as well because they love the house. But the manner in which we were being communicated with would lead you to believe that they did not give a rip if they bought it or not.

JB:  Wow.

Jason:  And that was not the case at all.  Anyway, you just never know all the time what is going on on the other side.  It is set up that way. We should not necessarily, but when you have somebody reach out to you that you are not even working with and just say thanks, it says a lot about the team, I think, and the good job that they have done.

JB:  Right.

Jason:  This is the time.  This is the time. Better quality agents. The other thing, too, I find is better, not necessarily better-quality buyers, but more prepared buyers.  A buyer that is moving the fall, in the winter especially, they are not your tire kickers. They are not coming out when it's twenty-four degrees just to see oh what is going on.

JB:  Right.

Jason:   So you end up with a very serious buyer, and a lot of relocation we do in the fall.  I do not know why that is. I guess maybe the books at the end of the year, but it seems a lot of the companies in the Triad move a lot of their people in November or December.  Either in or out, but they tend to do a lot of migration during that time. I do not know if it is just because they want to mess up their holidays or make them great. I am not sure which one.  I guess it depends on why you are leaving. Or why you are coming here. But it is interesting. We have got several folks that we are working with now that we know they are going to relocate, and they are coming in November and December.  That seems to be a pretty common thing. But they are also very prepared buyers. These are buyers that did not just get up on a whim on a Sunday go to an open house or get up on a Saturday and call somebody to go look at homes. They have gotten their preapproval.  They are making plans. They know where they want to live or a pretty general idea, close to work or whatever. So from a home seller standpoint, you end up with a pretty good qualified buyer prospect as well, which is better than we are just bored. Let's go look at pretty houses.  

JB:  Right.

Jason:  Which we get unfortunately this time of year.  It just happens. Let me tell you this. I have talked to you about Winston-Salem.  Let me tell you about some things that are coming to the market that we have. I am just going to tease you a little bit on this one, especially if you have got about two million dollars.

JB:  Okay.

Jason:  There are plenty of you out there that have that kind of budget, but I tell you that we are getting ready to put on the market in Winston is unbelievable.

JB:  Really?

Jason:  It is lights out awesome.

JB:  Oh, do tell.

Jason:  If you are in that budget area of about two million dollars, probably going to be ready about mid-August.  It is pretty exciting. I know you have been in homes and you have seen on TV where they have his and hers closets in the master bedroom.

JB:  Yeah, sure.

Jason:  They show all shoes and dah, dah, dah, dah, dah and all that.  How about his and hers private bathrooms?

JB:  I like that.

Jason:  It is different.

JB:  I like that idea.

Jason:  And I am not talking about a little bitty potty.

JB:  You are not talking a water closet, are you?

Jason:  No, I am not talking about a water closet.  That is right. I am talking about a thousand square feet.

JB:  Just a bathroom?

Jason: Yes.  

JB:  Wow. Good gracious.

Jason:  You know how many shoes you can put in a thousand square feet?

JB:  A whole bunch.

Jason:  It is a lot. It is a lot.  But it is not a home obviously for everyone.

JB:  Right.

Jason:  Because of the price point, but it is an exciting house.  It is a fun house; you can definitely entertain quite a few people there for sure.  So we are going to be launching that, and we will obviously get the videos up and everything.  Let you guys see them even though you may not be able to walk through it. We can share what that lifestyle looks like.

JB:  Wow! Sounds exciting.

Jason:  YouTube video stuff.  So our own little version of the HGTV stuff going on.  We have got some really great lake houses. So if you are looking into the Blues Lake area, these are in the four hundred to six hundred thousand range.  Some really nice homes. Some of them pretty new actually. Some of them are only like four to five years old. If that is a lifestyle, that lake lifestyle, you see the stickers Lake Life or Salt Life, if you are at the ocean or whatever.  We have got some pretty amazing houses, so if you, High Rock, Baden, or Blues Lake, we have got some really, really cool stuff. It is not, we are not, what is the big lake over in Charlotte?

JB:  Lake Norman?

Jason:  Lake Norman.  There we go. It just left my brain.

JB:  That is all right.

Jason: So it is not the Lake Norman crazy.  There is almost so many boats in Lake Norman you cannot even see the water sometimes.

JB:  Oh I know.  My family grew up in the Troutman-Mooresville area, and I actually had an aunt who lived on Lake Norman for years, and she lived up north.  But still, yeah, you go out in the main channel, and it is just like you are being at the beach. With the waves, it is hard to ski. You are going to get run over by ski boats.  The traffic is rather busy.

Jason:  It is, so that is one thing I like about our lakes around here.  They can get busy, but they are not –

JB:  Not Lake Norman busy.

Jason:  Not, not, not 1-95 busy, as you say.

JB:  There you go.

Jason:  If I piqued your interest about the house, you can give us a call at 553-0796, and if you have struggled perhaps with selling your home this spring or summer, give us a call, 553-0796.  We will have you over to the house, the office, and we will go through our program and show you what we can do for you.

JB:  All right.  

Jason:  Everybody have an awesome, awesome weekend.  Enjoy it. Be safe, and we will be back next week.

 

JB:  All right.  Great show, Jason.  Talk to you then. Have a great weekend everyone.

 

Posted in Radio Show
July 7, 2018

07.07.2018

Listen to podcast here:  Jason Bramblett Radio Show

 

 

JB: Good Saturday morning to you.  Welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and for the next thirty minutes, we are going to be talking all things real estate. He is the man with the plan, and yes, he does have all ten fingers after the Fourth of July, and we welcome him back to the show.  Mr. Jason Bramblett.

Jason: Good morning.  Yes, absolutely. I stick with the, man, I will probably say it wrong.  Is the Class A?

JB:  Yeah.

Jason: Yeah, we didn't get into the B, C, D

JB:  You did not get into the big stuff.

Jason:  No, no, no.  

JB:  Yeah, leave that to the professionals.  

Jason:  My favorite firework is like the smoke bomb.  Just simple.

JB:  Let me tell you a smoke bomb story.

Jason:  All right.  Yes, yes.

JB: Got a brand-new bike for Christmas one year.  It was a Hot Rod. Well, the previous summer we had been down and done the Myrtle Beach thing, and of course when you cross over the line, you see all the Big Black Cat fireworks booths and all that.

Jason: Sure.

JB: Well, I got a big old stash of smoke bombs.  So I had this idea and my buddies, I took my bike on Christmas morning, and I told them how fast I was, and they were kind of trying to downplay it.  I said I can burn rubber on this thing. They are like you cannot. So what I did was I got one of my smoke bombs that I had gotten, and I taped it up under the fender, stole my mom's lighter, went around the corner.  I said you watch this, and I lit it and then I jumped on my bike. I taped it on there, and I came back around the corner and smoke started blowing out of there. I blew my buddies away. They thought I was the stuff.

Jason:  That is right.

JB:  But I will never forget that speaking of smoke bombs. Smoke bombs are simple.  They are easy. They make a lot of smoke and they're cool. Anyway, I do not know how we got off on smoke bombs.  

Jason:  Those good memories from childhood and Fourth of July.  I had a buddy that his dad was a truck driver. And he went and got some M-80's.

JB: Oh yeah.

Jason:  You go to the firecracker thing and they say M-80. Well, they are not.

JB:  Yeah.

Jason:  These were M-80's.

JB:  They were the real deal.

Jason:  These were the real deal.

JB:  With little bits of dynamite.

Jason:  Yes, so do not do this at home. But we were 10, 11, 12, we thought we are going to go down the creek and take some of these M-80's and we'll just see what will happen.  We took a fishing sinker, wrapped it around that M-80 because they have a waterproof wick and everything. And we threw it in this little pond. Just a little pool, I should say.  It was probably a ten-foot circle, if you will.

JB:  Right.

Jason:  And we are four of us just sitting there.  We're watching it, and nothing is happening.  Nothing is happening. It was like man, this is a dud, and all of a sudden, it blew every –

JB:  Ka-bloom!

Jason:  -- drop of water out of that ten-foot pool.  It was like a cartoon. It just went right in our face.  I never even really knew that there was that many fish in that little pond.  There were minnows everywhere. So we took the rest of them back. We were like man, we are going to go to jail.  We just blew up the creek. It was interesting.

JB:  I know you are from the Midwest, but actually that is how we fish in the South.

Jason:  There you go.  Okay.

JB:  Little dynamite.

Jason:  That is right.

JB:  Makes it a lot easier.  

Jason:  It is easier to pick them up off the bank.  That is for sure. Anyway, it was an experience.

JB:  Well, I am glad you had a great Fourth.

Jason:  It was fun.

JB: Nobody got hurt.

Jason:  No, it was good.  It was good. Hey we are going to dive into, I do not know if we have talked about this in a while.  It may be a few years but diving into luxury real estate, and what is that all about. What does luxury even mean?  What defines it? Do I have it? Am I luxury? Do I even want it? Because maybe you do not.

JB:  Right.

Jason:  Because sometimes you can get stuck with stuff that you may not want.  

JB: Right.

Jason: I do not know if luxury is one of those things or not.  We are going to find out. We are going to dig into that. Is the sales process different?  Same? Is it one size fits all? So we are going to talk a little bit about that. Look at some of those different things.  Everyone has their own version of nice, good, and great.

JB:  Right. Exactly.

Jason:  But what is luxury?  Is it based off our life experiences?  We are going to hit on that. We're going to do a market update and all that, too, but if you own luxury or you think would like to own luxury real estate, or if you need to get rid of some luxury real estate and do not know where to start, well, I think we have some information that's going to help you out.  So stay tuned.

JB:  Well, Jason, let's just dive right into luxury.  What does that look like here in the Triad real estate market? Just tell us what that is.

Jason:  Most folks when I say what is luxury, they just go to a million dollars.

JB:  That is the baseline for whatever –

Jason:  Whatever in their mind, it is just oh, that is a million-dollar house.  Most real estate groups, think tanks, and all those other things, franchises and those things, they typically say it is three times the median home.

JB:  Okay.

Jason:  So actually, in the Triad area, luxury really is just a little bit over a half of a million dollars.

JB:  Right.

Jason:  Now, luxury in New York City, five hundred thousand dollars, you are not getting anything.

JB: It is a drop in the bucket.

Jason:  It is nothing.  I was just in New York networking with some guys earlier this year.  Met with a gentleman, really sharp young man, and he is renting a 620-square-foot apartment, one bedroom, one room basically, studio overlooking Central Park.  It is five thousand dollars a month.

JB: What did you say?  Six hundred square feet?

Jason:  Six hundred.

JB:  Just a little over six hundred?  Wow.

Jason: Yeah, so that is about a garage and a half.

JB: Wow.

Jason:  Yeah. That is for five grand.  So five hundred thousand, well, here is the thing.  In New York City, especially in the Manhattan area, they do not advertise.  Like here, you would go on a search engine and it is like okay, let's look at houses between two-fifty and three hundred, three hundred and three-fifty.  There they do it by thousand per square feet. These homes are two thousand to twenty-five hundred per square foot. These are twenty-five hundred to three thousand dollars per square foot.  And I guess if you are buying it that way, you do not worry about the end number.

JB:  Right.

Jason:  It is interesting.

JB:  Wow.

Jason:  So luxury is different.  We actually looked at a one-hundred-and-twenty-million-dollar apartment.

JB:  Wow.

Jason: Yeah, it was pretty amazing.  It was something. I do know if it was worth a hundred and twenty million dollars or not.  You can ask anything, but I would imagine somebody is going to come along one day and do it.  So here is the qualifier. Just because your home may be over five hundred thousand, does it automatically get you into the luxury listing club?

JB:  Gotcha.

Jason:  Here is the question.  Does it? Let me just tell you.  I have been in some deplorable five-hundred-thousand-dollar houses.  As a matter of fact, I know of three or four right now over a million dollars that they are not even habitable.  You could not even live in them.

JB: Wow.

Jason:  So does that mean they are luxury?  No, that means maybe they are just in the right location.  Okay? So location may have something to do with it, but it does not necessarily make it luxury.  So it is more than price. Price is part. No question about it because that kind of gets the ball rolling.  But really what it is is luxury is an experience. What is the best way to say it? It is a home in which you walk in it speaks to you.

JB:  Right.

Jason:  Right? So it is that experience of the five-star experience, if you will.  Right?

JB:   Right.

Jason:  It kind of elevates your mind, soul, and spirit when you go in.  It just gravitates you to a place of fulfillment and all. And when you walk in, it is like man, this is nice.  This is luxury. It is that amazing vacation you went on. Basically, that five-star hotel. It just recharges you.  It renews your mind. It is all those senses that are coming together to give you that experience. That is so much more than price.  Because if it was just price, like I said, I have been in million-dollar homes that are deplorable.

JB:  Yeah.

Jason:  I did not get any luxury feel out of that.

JB:  Right.

Jason:  I was like I want to get out of here.  This is just ridiculous. These are way too big or way over whatever or just really outdated.  So it is more about the experience of the home and experience in the home than actually is the structure of the property and even the price.  So, how do you know luxury? Well, it just speaks to you. It speaks to everybody in different ways, right? It is kind of like that whisper, that feeling.  It is different for all of us, and as a luxury real estate broker, you have got to have an awareness for that. You have got to be able to walk in and sense that.  You have got to be able to have that expertise to walk into a home and say, okay, yeah, this is something different. Right?

JB: Right.

Jason:  In our area, that could be a home anywhere from five hundred to five million.  Well, probably not five million, because we really do not have a home over five million.  But maybe in Charlotte, okay?

JB:  Okay.

Jason:  Again, it is different everywhere.  But it is more about the overall sense that you get.  Because, at the end of the day, it is just bricks and sticks.  Right?

JB:  Right.

Jason:  All of them are.

JB:  Bricks and sticks.  I like that.

Jason: But there is something different about luxury the way it speaks to you.  Feels, the ambiance. How you walk in. Let's just face it. Not all agents are going to be the same and not all have the talent to be able pull that story together --

JB:  Right.

Jason:  to talk about that property, to explain to you what is luxury for you.  Here is the thing. You are driving down the road. You just went to luxury.  Just me talking a little bit about that. You went there in your mind. You saw a picture.  It may have been a house that you have been in. It may have been a fine hotel. It may even have been something you looked at on TV, but you got a vision. You got an image of what luxury is to you.  A good professional luxury real estate broker is going to take that image that you have in your head and match it to the right property that speaks to you in that way. Right? It is just getting that information out.  Right?

JB:  Right.

Jason:  And that is the key to the success of that.

JB:  And another good thing about you and your folks that work for you, Jason, is that there is an old saying that there is a reason God gave us two ears and one mouth.  And it is to listen –

Jason:  Yes.

JB:  -- and to match those people with the types of properties that they are looking for and to be able to take what they are telling you and translate that into.  So I think that is kind of what distinguishes you from a lot of the others.

Jason:  I cannot even tell you how many times we have people come to our office that have experiences with other folks, and it is almost verbatim what JB just said.  They just took me to houses. I hated them.

JB:  Yeah.

Jason:  It was not even where I wanted to be or what I wanted to look at.  It is just they, it was on the list. It was in the price range, but nothing about the house was what I, I cannot tell you how many times we get that feedback.  Hopefully, we do a great job at listening and then helping you stay accountable to your goal, too.

JB:  Right.

Jason:   That is one thing that is different about our firm.  If you tell us you want to stay within a budget, we are going to hold you true to that budget.  So if you tell us, hey, I want to buy a three-hundred-thousand-dollar house, we are not going to take you to see six-fifty.  Okay. Sometimes that conversation is not fun.

JB:  But it is the truth.

Jason:  It is where you need to be, right?

JB:  Right.

Jason:  Most people are not going to stretch that much, but here is the thing.  You got there in your mind. Right? You got to luxury. You got that. That is where we want to get.  We want to match that thought, that feel, that experience with the right setting and the perfect layout, and then guess what.  It is just like we transferred that experience, and a lot of times it is a vacation-y type feel. Right?

JB:  Sure.

Jason:  And we put that into your home.  Think about that. If every time you went home, it was just like that peace, that relaxing, that vacation, and here is the thing.  You can create luxury within any price point, in my opinion. The market kind of dictates and says hey, luxury is five hundred and up.  But I have been in some phenomenal three-hundred-thousand-dollar houses when I walked in I was like wow. This is spot on. From a qualifier of the think tank people, it does not maybe qualify for luxury because it is not over five hundred grand.  But there is just something about that house that just grabs you, and you can create that in anything.

JB:  Sure.

Jason:  But today we are going to dig into the luxury.  We are going to dig into some of the higher-priced homes. Hey, there is some stuff that has got issues, too.  It is not all roses out there.

JB:  It is not pink, fluffy unicorns dancing on rainbows all the time.

Jason:  That is exactly right.  That is exactly right. It is not.  There are challenges with all of it.  Right?

JB:  Right.

Jason: That is just the way it is. Luxury is no different.

JB:  I tell you what.  You want to take a quick break, and maybe when we come back, we talk about maybe some of the challenges of that.  Does that work?

Jason: Oh, let's do it.  I think we can punch that out for sure.

JB:  All right. Well, stay with us, folks.  You are listening to Triad Real Estate 911 with your host Jason Bramblett.  I am JB. Stay with us. We are going to be right back. (in/out music) Welcome back.  You are listening to Triad Real Estate 911 with your host Jason Bramblett. I am JB. Before the break, talking about the luxury real estate market, and of course, I think it is too, Jason, to maybe talk about some of the challenges of the luxury real estate market.

Jason:  Oh, absolutely.  You think just because it is, you say luxury like oh man, no big deal.  

JB: Right.

Jason: Not so much. Not so much.  We have got some creative luxury out there.

JB:  I like this. This sounds interesting.

Jason:  When an owner gets way over the top creative, that can be a hindrance.  If you have got draftskin walls and tiger stripe floors or something, I have seen some –

JB:  Kind of like Elvis' jungle room going on?

Jason:  Yeah. Yeah.  It is okay if that stuff can leave.  When you do it to the permanent stuff though, man, it becomes a challenge for sure.  Here is the thing. If you have got the money and you like it, and you do not care, no problem.  But just understand that you might be spending some money to get rid of it. There is a house that has been for sale forever, and sure as the world, this person came in to talk to us about selling.  So I cannot say anything about it, but it is so unique that I cannot even, I do not know a person on the planet other than the person that came to talk to us that likes it. It is just one of those houses.  

JB:  Right.

Jason:  It is going to cost a lot to make it square.  Just something. I do not even know the right word.  But they have loved it, and they built it, and it is okay. As long as they are okay with understanding they will probably never get their money back out of that.

JB:  Right.

Jason:  That is just the way it goes sometimes.  

JB: Sure.

Jason:  Here is the thing.  Do not make it so unusual that you are the only one that will ever love this because you may be the only one that ever loves it.  Right? You may have to stick with that forever. Just have an awareness and that is it. Think about those types of things so if you do like those things, that is fine. But you may have to pay the extra money to make it back to neutrally normal, I do not know, blandish luxury.  I do not know. Get rid of the grass skirt walls and all that kind of stuff.

JB:  Right.

Jason:  But also, I see some luxury where it is just not keeping up with the change in demographics as well.  Especially with, think about this, there are more first-time young millionaires in the United States of America than there ever has been any time in history.

JB:  How about that?

Jason:  And amazingly, a lot of them are under 35 years old.  Technology.

JB:  Right.

Jason:  People looking for technology and kind of millennial, geeky, nerdy smart people, they kind of want a smart house.

JB:  Right. Kind of like a Zuckerberg-type thing.  These new guys, millionaires coming in.

Jason:  Exactly.  Right. They probably do not want a house where you if you go into the bathroom there are quartered phones on the wall.  Right?

JB:  Right.

Jason:  See, that was luxury at one point in time.  That was like a big deal. I can remember I went and sold these folks' home.  Sweetest couple in the world. Martha and Elwood had a great house on the golf course.  Their carpet was so long you could have raked it. It was unbelievable.

JB: Kick up some rabbits when you walk through.

Jason:  Absolutely.  For 1963, when it was built, it was off-the-hook luxury.

JB:  I bet.

Jason:  But they had not changed a lick since then.  As a matter of fact, one of the key things that they wanted to make sure that I knew was the built-in blender to the countertop –

JB:  Wow.

Jason:  -- still worked.  It was –

JB:  That is pretty cool.

Jason:  -- I do not know. Let's see.  At that time, we were probably pushing thirty-five years at that time.  It's been a while ago. But wow.

JB:  Yeah, built-in blender.

Jason:  Built-in blender.  Obviously, things change, right?  So if you are not keeping up with the demographic that is looking at luxury, you can get priced out of the market.  And what will end up happening is you will have to make a lot of changes, which may or may not be good for the budget, and or you will have to do a lot of discounting.  Here is the other thing about big houses and luxury. They are not cheap to change.

JB:  Right.

Jason:  It is one thing to go into somebody's home that is twenty-eight hundred square foot and say you need to paint.  It is another thing to go in there when it is eighty-four hundred and you have to get scaffolding and nineteen people. Right?

JB:  And bucket trucks and everything else.

Jason:  Exactly.  Keep up. Younger people like smarter homes.  So you either have to keep up with the change or you are going to get left behind.  The other thing I see in luxury in the Triad is too big. Went way over the top. Went way crazy luxury.

JB:  That is just kind of trend anyway, isn't it?

Jason:  It can be.

JB:  It can be, but when you are talking luxury, I guess it can go both ways.

Jason: It typically goes back to the 80's.  Well, there were actually some tax savings to having a bigger home back in the 80's that we do not have today.  But over seven thousand square feet in the Triad, you are getting little bit, you are shrinking your buyer pool.  There are just not that many people looking for that size home. I have had a house on the market for seventeen-thousand-square-feet.  

JB:  Wow.

Jason:  I do not know anybody.  It has been for sale for like twelve years.

JB:  So does the circus call you when they come into town and want to rent it out?

Jason:  Seriously.  Truthfully, it needs to be almost a commercial use at this point because the average person is just not searching for that.

JB:  That is big.

Jason:  It is huge.  It is huge. And so you have got to think about those thing.  Here is the thing. Just because you make good money, and you have got money, you can still do dumb with money.  That is just it. We have had some pretty big racecar drivers lose lots of money in the Triad. I do not think he will mind.  But there was one guy that raced, I will not say his name. You probably know him. But anyway, there was about nine million in this house in Summerfield. It sold for two point three.  Now, I am not math genius, but that number is going the wrong way.

JB:  Right.

Jason:  The good thing is he probably made that up in a weekend, so it is all to scale.  But you would not call that a very good investment. Right?

JB:  No.

Jason:  So you have got to do smart, too.  Being too ornate also an issue that we see.  So sometimes flashy just does not work.

JB:  Right.

Jason: But in Beverly Hills, it may. So you have just got to be smart with the demographic and the area that you are working within.  You still have to remember hey, it is the south, and most people here are going to be a little more conservative, a little less flashy as opposed to in New York City.

JB:  Exactly.

Jason:  So you just have to keep those things in proportion.

JB:  Well, is there any additional requirements to look at luxury homes?

Jason:  There really should not be, but we, they do put this double standard out there.  Luxury owners want to ensure that the buyer is qualified or they have the cash to purchase their house before someone comes to look at it.

JB:  Sure.

Jason:  Now the truth is all owners want that, JB.  Right?

JB:  Right.

Jason:  But here is the problem.  We have got a bunch of lazy agents that just want to go out here and poptart up and go show houses and not ask the questions to say hey, can you actually do what you want to do here?  Can you actually purchase the home? So it is a double standard. It should not be, and it is ridiculous. I will say this – it has gotten better over the years. Thank goodness. So thank you for the real estate professionals that have stepped up to be professionals and qualify people.  I do not care what price range you are in. You do not want some stranger walking through your house unless you know they can actually buy it.

JB:  Exactly.

Jason:  It is just common sense.

JB:  It sure is.

Jason: It should not be a luxury thing, but that is one of the big differences that we see in luxury.  They are like no, you are not coming unless you can prove. And most of them are happy to because well, they have the money to do it.  

JB:  There you go.

Jason:  So anyway, all right, guys, we are going to wrap this one up.  Everybody have a great weekend. If you want to know more about luxury, go to Jason Bramblett dot com.  We will see you next week. Right here.

 

JB:  All right.  Have a great weekend everyone.

Posted in Radio Show
July 7, 2018

07.14.2018

Listen to the podcast here:  Jason Bramblett Radio Show 

 

JB: Well, good morning and welcome to Real Estate 911 with your host Jason Bramblett. I am JB, and for the next hour, we are going to be taking your calls and talking all things real estate. We invite your calls if you have a question or comment for Jason.  Our phone lines are open. Give us a call. 336-553-0796. That is 336-553-0796. And we welcome the man with the plan, Mr. Jason Bramblett. Good morning to you.

Jason: Good morning. Good morning.  Hope everyone is doing well today.

JB: How are you?

Jason:  It is good.  It is going to be a little steamy today.

JB:  Little warm.  It is summertime here in the Piedmont.

Jason:  I do not remember. Was it last Sunday we had that nice little cool 70-degree day?

JB:  Yeah.

Jason:  Man, I'd take that back.  That was perfect.

JB:  It was.

Jason:  It really was perfect.  But anyway, it is North Carolina and July, so you are going to deal with a little bit of humidity.

JB:  Yes, welcome to the swamp.

Jason:  That is right.  That is right. There are two swamps.  There is this one and there is the one to the north.  

JB:  That is right.

Jason:  And this one here, you really cannot do much about it.  You just got to deal with it. Hey, we've got a lot – we did a show on luxury, a show on luxury real estate last week, and man, we got a lot of inquiries.  I wanted to dig into a little bit more about that and kind of talk about the problems people in this luxury market are having selling their homes. It is something we have seen for years.  We did that show last week, and I tell you, we have had a lot of folks just share with us some frustrations that they have had, and some of them for quite some time. But we are going to dig into that.  Some of the most difficult real estate to sell, to kind of move is really luxury and we are going to break down why, what those reasons are.

JB: Okay.

Jason:  But here is the thing.  The truth really, it is the same thing for all price ranges.  There is really nothing special about luxury. It would be true of a $100,000 as well it would a million-dollar home.

JB:  Right.

Jason:  The difference is the zeroes though.  It definitely, there is definitely a difference in the zeroes and also size, which obviously adds to cost, and so there are some struggles there.  So we are going to dig into that, talk about that. And thinking about buying in Greensboro, being like the city limits of Greensboro. I have some pretty big news for you, so you may want to stay tuned if you are considering moving to the great city of Greensboro because it has to do with some money.  How about that?

JB:  Oh, yeah.  

Jason:  So that's always a good thing.  We have got that. We have got your emails.  We have got your calls. You can get in touch with us right here.  It is 553-0796. Let's dig in, JB. Let's see what we can stir up. Let's stir the pudding a little bit today.

JB:  Let's stir the pudding.  Well, let's just dig into that luxury real estate issue you were talking about. You mean to say that people with money have problems, too?  What is going on there?

Jason:  Right? Come on.  I thought money fixed everything.  Can you tell all those people who win the lottery?  They never go broke, do they?

JB:  No. Everything is always hunky dory for them.

Jason:  Just perfect after that.  Life is just bliss. Right?

JB:  Right.

Jason: That is why you see all the celebrities, oh well, we'll just leave that alone.  How about that? You just watch the TV. It tells you all you need.

JB:  There you go.

Jason: But they do have issues, and here is what we have seen in the luxury market for quite some time.  And first, what is luxury?

JB:  Yeah, you might want to define that.

Jason:  In the Triad area, and this is not my number, folks.  Do not get mad at me if you did not make the cut, but this is just kind of real estate –

JB:  We are just talking numbers here.

Jason:  It is about $525,000 and above they consider that luxury.  Okay?

JB:  Okay.

Jason:  Who is they?  I do not know.  It is whoever put the stupid poll together.  Right? I do not know. But if you are five twenty-four, do not get your feelings hurt.  You are still luxury.

JB:  You are still good.  Do not worry about it.

Jason:  Here is the thing.  If you are two-twenty in my book, you are luxury, right?  

JB:  Right.

Jason:  Because as we have said, luxury, in my opinion, is actually not about the price at all.  It is more about the experience.

JB:  Right.

Jason:  And that is really what separates it out.  But number one problem, and this is something that happens.  They used to have money, and times have changed just a little bit.  So what has happened is they have too much of their wealth tied up in their house.

JB:  Right.

Jason:  So they either owned a business or had a career where they had a really good income, and they were doing well fifteen years ago making maybe whatever, maybe they were making a million dollars a year, whatever it was.  They bought a really big house, a really expensive home.

JB:  Right.

Jason:  But things have changed, and their business is not quite what it was or maybe they have sold the business, and now they have a really big house that is paid for.  But what they do not have is a million coming in anymore. And unfortunately, they are kind of stuck in that they do not want to unplug money from retirement that is earning them money to fix or update that big house that they have that is paid for.

JB:  Right.

Jason:  And they do not necessarily want to take an equity line out because again that is borrowing money.  So they have got a cashflow issue. And that is really all it comes down to. Now that is not to say that nobody wants luxury because people do.  People want luxury. They just do not want yours. And what is up with that?

JB:  Right.

Jason:  My luxury is nice is what you are saying, correct?  

JB:  That is right.

Jason:  Why not yours? Because it is outdated.  And even people with money that just, they do not want an outdated house.  

JB:  Right.

Jason:  And this is something I have seen trend in time and time and time and time again over twenty years, there are very few locations in the Triad, few in Winston, few in Greensboro, where a dated luxury home can sell.  But it is about three neighborhoods, and outside of that, you are toast.

JB:  Right.

Jason:  If you do not keep up with the times, you are going to get left – there is a beautiful house over in Burlington.  $2.2million foreclosure. This house is lights out amazing. Forty acres over a lake, infinity pool, amazing. But the décor, hmmmm, just a little bit odd.

JB:  Right.

Jason:  And it was odd enough, I guess, that they could not sell it. Obviously, these people had a mortgage on it, and now the bank owns it. It is not easy to get rid of a two-million-dollar foreclosure.

JB:  Right.

Jason:  And so that bank is probably going to own that for a little while.  And I cannot even imagine what they are spending a month in cutting grass.  It is forty acres of grass, man. This thing is a monster. Beautiful. But anyway, great deal if you want to look at a two-million-dollar foreclosure, and you have two million dollars cash.  We will be happy to show it to you because they do require that you prove that you have the money before they open the door.

JB:  Right.

Jason:  The banks are smart that way.  They just do not want to waste their time with a bunch of lookie-loos.  You show me you got the two million, we will open the door. You don't? Have a good day.  But here is the thing. You have got to get it up to standard, okay? Or here is the other thing.  You are going to have to discount the heck out of it to get it sold. That is the tough part because you have put your blood, sweat, and tears money of owning a business or working your career for years and years and years.  You paid two million dollars for the property, but unfortunately, it is fifteen years later or longer than that, and I do not have a lot of people searching for 1992 motif homes.

JB:  That is right.

Jason:  They don't.  They want the modern kitchen.  They want everything kind of up.  Now I know some of you guys will be like well, excuse me, Jason, my house is Rockefeller this and it is bespoke.  Did you know that was a word, JB?

JB:  I did not know.

Jason:  I was looking at some luxury real estate, and this person described this house – it has a bespoke fireplace.  I thought what in the, is that a name brand? That is actually a word. It means it is a rich people word. Bespoke.  And your Chippendale furniture. Okay? Here is the deal. Burn it because nobody cares, and that is the truth. And I know that is probably not what you want to hear, and a lot of you have these great antiques.  Antiques make things look old.

JB:  Right.

Jason:  If you are living in little house on the prairie, that is fine.  But if you are living in a city in the Triad, and you want millions of dollars for your property, and it looks like it was designed in 1830, you are not going to attract that many buyers.

JB:  That is right.

Jason:  You have to change.  Okay? And the folks that may like what you have, we are finding out that they are not buying big homes.  That they do not want them anymore. Very few do. So what we are seeing is these huge discounts. I will tell you about a home that we have watched for sale for over a decade, and it is huge.  It is seventeen-thousand square feet. Okay?

JB:  Wow.

Jason:  It started at about four, four-and-a-half million dollars.  Okay? The last list price on it was eight-forty.

JB:  Wow.

Jason:  It never sold.  It is still available.  Okay? And that is over a good ten to fifteen-year time on the market.  Almost on the market every year for an entire year for the last fifteen years.  Guys, you do not even have to be in real estate to figure it out. If you have been on the market for ten years, there is something wrong with your house.

JB:  Something is going on.

Jason:  You have just got to make some changes.  If you are unsure about your house measuring up to luxury or non-luxury, maybe you do not even have a luxury home.  That is okay. Give us a call. We will be happy to walk you through and tell you honestly why your home is not selling.  And we will be very direct. Why? Because here is the thing. Most of you blame the real estate people, and I do agree. If you are a real estate agent, and you just list homes to list homes, and you tell people lies to get your sign in the yard, you should be in another industry.  Okay?

JB:  Right.

Jason:  Here is a good measurement for that.  If you have listed the home and you have had to reduce the price a couple hundred thousand dollars, that is what we call buying the listing.  Meaning they just told you whatever you want to hear to get their sign in the yard so they could look pretty.

JB:  That is right.

Jason:  But it did not help your situation.  And most people that we talk to about selling their homes, they do not look at that in decades.  Right? I would like to sell my home in the next decade. No. They would like to do it in probably like the next ninety days.

JB:  Exactly.

Jason:  So if you have had your home on the market for a decade and you just need somebody to get real with you, I would be happy to do that.  Not that I know all there is to know about real estate by any means, but I do know ugly, and I can help you there. Right? I can help you there.  If you need somebody to say man, the baby is ugly. We will help you with that. I have trained my brokers to know how to do that, okay? And here is the thing.  It is not to be mean. We want to help you get to where you can get sold. Maybe that means investing money in your home. Maybe that means putting some capital back in there.  I do not know what. Or maybe discounting the price. We will look at everything. In the past week, we have had two people come in with some really amazing homes. At one point in time they were amazing.  They are just dated.

JB:  Right.

Jason:  And they both have been on the market for over ten years.

JB:  Wow.

Jason:  And one of them probably will never sell.  I told the owner that you might as well make estate plans and give it to the kids or the church because I’m sorry, nobody is going to buy this house.  And it has been for sale for ten years. I am leaning towards that is probably an accurate statement. At least at the price it is for sure. Those are tough conversations to have, but they do need, people are coming to us for advice, and that is what we want to help them kind of see the thirty-thousand-foot view.  Because sometimes when you are in it, you cannot see it. It is tough.

JB:  Right.

Jason:  And of course, you did it and it was your dream, and we hang onto those things, too.  

JB:  Exactly.

Jason:  We hang onto those dreams.  We want everything to be like it was at the pinnacle.

JB:  In the heyday.

Jason:  In the heyday.  But here is the thing.  Time waits for nobody.

JB:  That is right.

Jason: And it is moving on.

JB:  It is moving.

Jason: Here's one thing I do know for sure.  You will leave that house one day.

JB: That's right.

Jason:  For sure.  Now what happens to it after that, I do not know.  But you will leave one day. That is for sure. Sometimes we have got to look at putting a couple hundred thousand dollars into the property to get it up to speed.  Get it up to snuff. And we are talking big homes, ten thousand square feet. We are talking some large homes in the Triad area that have been sitting for years and years and years, and maybe you just need somebody to kind of give you the push, if you will.  Or maybe you need to discount them five, seven hundred thousand dollars. Five hundred to seven hundred thousand bucks may do it. Now I know that some of you are like wait a minute. You just said put two hundred in, but you are discounting it five hundred to seven hundred?  Well, yeah. People who have money want to make money. If I am going to do all the work, if I am going to take my time, energy, and my capital and put two hundred thousand dollars in a house, I am not going to put two hundred thousand dollars in the house just to get two hundred thousand dollars.  I want to get a reward for doing what you were not willing to do.

JB:  Exactly.

Jason:  Right? It is called equity.  Some people call it sweat equity.  Most people in the luxury market do not call it sweat equity because they are not doing the work.

JB:  That is right.

Jason: But it works the same in all price ranges.  It is just sometimes you doing work and sometimes it is contractors doing the work, but somebody has got to do it, and if somebody has got to do it, they want a reward for that.

JB:  Right.

Jason: Nobody is going to want to do it for free.  Alright, JB, now that I've made everybody mad that has a luxury home that has been on the market for a long time.  I know it is fantastic. I know it is wonderful, but sometimes you need to get real. Anyway, let's do this. Let's take a break.  

JB:  Okay.

Jason:  Let everybody go get some coffee and they can stop throwing darts at my photo.

JB:  That is okay.

Jason:  And we will come back.  We are still going to get you fixed, guys.  I promise. Come back here in just a minute.  We will be right back.

JB:  All right.  Stay with us, folks.  You are listening to Triad Real Estate 911 with your host Jason Bramblett.  We're coming right back. Stay with us. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett.  Before the break there we were talking about luxury homes and everything. And Jason, it seems that these are the same issues we discuss with all homes, and these just have bigger numbers.

Jason:  That is true.

JB:  Just another zero.

Jason:  It really is.  It is really the same thing.  The higher you go, you just have less buyers, right?  Because not everybody can own a two-million-dollar house.

JB:  That is right.

Jason: You know it is interesting because if you go lower, you have got less buyers, too, because not very many people want a house that is fifty thousand and under.

JB:  There you go.

Jason:  You have got extremes on both ends.

JB:  Exactly.

Jason: Obviously, the most buyers are in the middle, right?  That is the economics of everything. Buyers today, and here is what we find.  They just, they are not going to deal with your neglected lack of maintenance house.  I know some of you because we talk to you every single day will say, well, if it is good enough for me, it is good enough for them.  No, that is not true. And you will not sell. I do not know what it is, but this generation now, so pretty much like forty years and under, and those are the people that are buying houses by the way, they do not want your problems.  

JB:  Right.

Jason:  They do not want your rotted wood, your crooked deck, your this and that.  The other thing they do not want is they do not like the do-it-yourself projects.

JB:  Yep.

Jason:  They want it professionally done.  And these are the same kids and people that I hear that are not taking their TVs to the repair man.  Right? They chuck it in the dumpster and they go buy a new one.

JB:  Right.

Jason:  And that is just the generation that we are in.  

JB: That is it.

Jason:  Us old people, older people, I see this with my missions trips that we do.  I cannot get the young folks, they do not know how to do anything. We go down to different countries and build churches and houses and those things.  It is just me and the old guys. It is just how it is because they are the generation that would call your buddy and hey, we're going to put a deck on.  Can you help me out?

JB:  Yep.

Jason:  And they would do it.  Or they would add a bath onto the house or they built a barn or they built an out building. I'm not saying that all, I should not say all young folks are that way, but proportionally, most of them are.

JB:  Right.

Jason:  It is a disposable generation.  We just go get something new when it breaks.  

JB:   It is true.

Jason:  Us older folks do that, too.  We do. I have fallen into that where it is just like you know what? I could probably rig this thing to make it work, but they are only $19.95, and Amazon will bring it to you.

JB:  That is right.  See I am old school.  I will take something apart and mess with it for a week until it is just all hope is over.

Jason: Right.

JB:  Just ask my wife.  There is like I do not want to throw that TV out.  I can fix it.

Jason:  Right.

JB:  But no, you are exactly right.  This generation they will chuck it.

Jason:  They will.  And right now, that is sixty-five percent of home buyers.

JB:  Wow.

Jason:  It is huge.  A huge number, folks.   But just as I have been saying for ten years on the radio.  No one wants your brass shiny house for top dollar. Right?

JB: That is right.

Jason:  You are going to have to make adjustments.  You are going to have to change the knobs and the hinges and the fixtures or be prepared to take less money.

JB: Right.

Jason:  And it is the same in luxury as it is in your two-hundred-thousand-dollar house.  The numbers, the buyer's appeal is the same. You have got to get your home to appeal to the most people.  That is just the key. If you have got rotted wood, I do not know, I cannot get there in my brain or mind why you would even want to put your house on the market with rotted wood.

JB:  Right.

Jason:  But here is what I know.  You can go to Zillow or the MLS or realtor dot com, there is no rotted wood feature drop down.  Okay? And here is a good one. Blown-out, fogged windows. That is not a feature. If you do not believe me, stop what you are doing, go to Zillow and look for the blown-out, cannot see through the windows feature.

JB:  Yep.

Jason:  It does not exist.

JB: Nope.

Jason:  Right?

JB:  That is right.

Jason:  How about sprouts in your gutters?  Because everybody is looking for a gutter garden, right?

JB:  Yeah.

Jason:  No, it is not there.  You think I am kidding, and you can go online right now to any of the major portals and I promise you will find over a hundred homes that that is the truth.  A minimum. Probably way more than a hundred. Then you wonder why no one is showing up to look. And you can see the problems in the picture, and your price does not reflect the condition.  It is one or the other; either fix it or you have got to make the price adjustment. Anyway, I know that is not what you want to hear, but it is the truth. So if you need a friend to tell you your baby is ugly --

JB:  That is right.

Jason:  Call me.  I'll be happy to do it.  Because you just need the truth.  Here is the thing. You are making a lot of plans hinging on this happening at this price.  And sometimes you just need somebody to come over and tell you it is never going to happen at that price.

JB:  Right.

Jason:  You have got to either move your plan A or you are going to have to go to plan B.

JB: Right.

Jason: But plan A is not going to happen at the pinnacle.  That is where I get so frustrated with real estate people in general.  Quit lying to folks just to get your stupid sign in the yard.

JB:  Right.

Jason:  It is their life you are messing with.  Right? Be truthful and tell them it is not going to happen.  Just do not appease them and say whatever, listen and oh yeah, your house is so pretty.  I am sure we can get two point five million for it when you know, no, or two hundred thousand.  You have to be realistic and be truthful with them. Here is the other thing. Sometimes it is not as bad as you think.  

JB:  Right.

Jason:  We see this a lot.  We have counseling sessions with our owners and they are like well, that is going to be forty-five thousand dollars to get this done.  No, actually it is not. We just had this situation where the owner thought it was going to cost at least forty grand to fix up their house, and we got it done for less than half of that.

JB:  Wow.

Jason:  Because you do not do this every day, folks.  We do not expect you to know the prices and the contractors and the connections.  That is what we are here for. That is what we are here to help you with. Anyway, all right, JB, before we run out of time, I do want to talk about this Greensboro thing.

JB: Yeah, what is going on?

Jason:  So Greensboro, this is a love-hate thing for me.  So Greensboro has got a little extra money. They have raised up some bond money and it is just sitting in the old piggy bank down there, and they are like well, we have got to do something with it.  I do not know. My first thought would have been give it back to the taxpayers.

JB:  Right.

Jason:  Just an idea.

JB: Off the cuff there.  Right?

Jason:  That is a big floater, I know.  Well, nah. That is not going to work.  So here is what we are going to do. We are going to give it to first-time homebuyers, which okay, fine.  Plan A would have been just give it back, but it is government, and once they get it, they do not typically give it back.  

JB: Right.

Jason:  Just the truth.

JB:  Yep.

Jason: So they have some bond money they need to burn through.  How much? I was told a lot.

JB:  Oh really?  

Jason:  I do not know what that number is.

JB:  That is an official statement.

Jason:  That is an official statement from the Greensboro, City of Greensboro, how much money?  A lot. Okay. So here is the thing. If you are a first-time homebuyer, first-time homebuyer means you have never owned one and or you have not owned a home in three years.  You automatically become a newbie after three years. You could qualify in the city limits of Greensboro to get a ten-thousand-dollar down payment assistance.

JB:  Okay.

Jason:  It is forgiven in five years.  So twenty percent a year. If you sell your house in year four, you are going to have to give a little bit back.  If you keep it more than five years, you do not own anything. Ten grand. That is pretty good.

JB:  Yep.

Jason:  City limits of Greensboro, okay.  There are some qualifications. You have got certain income restrictions.  You have got to qualify for a thirty-year loan, and you have got to take an eight-hour class, but we can get your more information about.  So if you want to know about how to get ten thousand dollars in basically free money, if you stay for five years in the City of Greensboro, give us a call.  We will be happy to get you all the information. It is 553-0796 or go to Jason Bramblett dot com. All right. Next week, we may be giving away more money in a different city next week.  We will find out.

JB:  You never know.

Jason:  Stay tuned. Everybody have a great weekend.

 

JB:  All right.  Thanks, Jason. Great show. Talk to you next week.

Posted in Radio Show
June 30, 2018

06.30.2018

Listen to podcast here:    Jason Bramblett Radio Show 

 

 

JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. For the next thirty minutes, we are going to be talking all things real estate, and we appreciate you joining us on this wonderful Saturday morning.  I am JB along with the man. He's always got a plan, and his name is on the radio show. So we say good morning to Mr. Jason Bramblett.

Jason: Hello, hello.  

JB:  How are you?

Jason:  I'm good.  Hope everybody else is good and hot.  

JB:  Tell you what. Summertime is here, my friend.

Jason:  It is on.  It is on. It is also hey, it's also third quarter.

JB:  That right.  Oh yeah, it is, isn't it?

Jason:  Yes, so if you actually have some goals, you should be halfway through them.  

JB:  Good luck.

Jason: Yeah, good luck with that. Right?

JB:  There's no time like today.

Jason:  That is it.  That is it. So now it's push.  Push through, get through. Everything.  Summertime, it is in full swing. Kids at the pool.  All that stuff. Camps.

JB:  Fourth of July coming up here.

Jason:  Fourth of July is coming up.

JB:  Just next week.

Jason:  Also remember.  It is, so for you folks that maybe just moved here.  It is the south, so this is officially yard sale season.

JB:  Oh yeah.

Jason:  It is a season.  It is just like deer hunting, turkey, yard sale-ing. So just be careful because when you're out in your neighborhoods, and especially you teenagers that are going to basketball camp or going to hang out with your friends at 8:30 or 9:00 in the morning, just be careful.  Because a lot of these subdivisions, if the cars are real close, you have got small kids and older people do not move as fast. They are going to maybe some of these sales. Just be careful because we do not need any casualties out there or accidents.

JB:  Right.

Jason:  Man, Fourth of July is already here.

JB:  I know. It is just days away here, and it is just unbelievable that, it is kind of like the halfway point, you know?

Jason: Yeah.

JB:  So somebody was already talking about shopping for Christmas this time of year, and I am like no. Not yet.

Jason: No.

JB:  Not ready for it, but if you can get the sales going on there right now and get everything taken care of, more power to you.  But I just cannot do it when it is 94 degrees.

Jason:  Absolutely.  Fourth of July. I grew up in the Midwest, a small little town, Hannibal, Missouri, like 13,000 people or something.  And Fourth of July is one of the biggest, it is huge, huge there. Tom Sawyer Days, home of Mark Twain, all that kind of stuff.  So big parades and all that. So you always looked forward to it because there was always something to do downtown. It's a small town.  There is not a lot to do.

JB:  Right.

Jason:  You would have a hundred, hundred-fifty thousand people coming to the town, and they would do a fireworks' display that would last for two hours.

JB:  Wow.

Jason:  Forever.  We came out here and we thought well, big city.  It was like eight minutes. I was like this is a bust.  Geeze, this is terrible. Maybe a little bit longer than that.  But anyway, it's interesting the difference, but it was always the fun time.  But then when it was over, it was like oh man -

JB:  Yeah.

Jason: You knew back to school was coming.

JB:  Yeah.

Jason:  The time from after July Fourth to school starts, it is like light speed.

JB:  It's kind of like countdown to Labor Day because after Labor Day, you start getting serious and your mom starts talking about getting new shoes for going back to school.  And you're like oh man, and the next thing you know –

Jason: You are there.

JB:  Yeah, poof.  Then it's Christmas.

Jason:  That is it.  Exactly, exactly.  Anyway, it's a fun time.  North Carolina is a good place to be.

JB:  It is.

Jason: And the Triad, if you are new here, you are going to love it.  If you have been here a while, go out and see if you can find something new.  There is always something new popping up.

JB: That is right.

Jason:  There's always a cookout, a barbeque, a something.

JB: We like to grill our meat.

Jason: That is for sure. Hey, another thing you might see while you are out is new construction.  New construction is flourishing everywhere. Not just residential. Commercial, industrial. We have got a lot of stuff happening.

JB:  A lot popping.

Jason:  There is.  There are some big names that are popping out there, too.  I have heard the Amazon name a few times. Of course, FedEx is just massively taking over Winston-Salem and their development over there, which is exciting.  We are definitely geared for transportation-type business. There is no question about it. We thought we were going to be geared for airline in FedEx, but hey, we do have Honda Jet.  It is coming along. We have got a downtown in Greensboro.

JB:  Yep.

Jason:  Winston-Salem, of course, has been way ahead of us, and now High Point is talking about ballfields.

JB:  Big time in High Peasy.

Jason:  I am pretty sure it is probably going to get done.  That would be my guess.

JB: Oh yeah.

Jason: So it is a good time here in the Triad.  Anyway, we are going to get into some real estate stuff talking about some good news actually for some home sellers and buyers out there. Let's dig in, JB. Let's do it.

JB:  All right.  Let's lead off with home buying today.  What is some positive news coming from Bramblett headquarters?

Jason:  Yeah, so there are a few things.  One thing that is kind of exciting is we have added some really awesome talent to the team.

JB: That is good.

Jason:  Especially this year.

JB:  Well, congratulations on that.

Jason:  Yeah, absolutely. So more support not only for our brokers and our agents but also for our clients, which that is obviously why we exist, to serve them.  But it is kind of interesting. I look back over my career doing this for twenty years and I kind of just shake my head and why in the world, you know, twenty years ago, I am by myself, have no support, no staff, no nothing, and why in the world would anybody work with me or even that solo agent with no systems, no support, no nothing.  I just look at the level of service that we have as a brand compared to what I was twenty years ago. There is just no comparison. Even if you have got one, two, three people, it is just, when you have got the cohesion of a brand and a system, that experience is just night and day. I have used the restaurant example.

JB:  Sure.

Jason:  You go to a restaurant with a well-oiled machine with great cooks and chefs and waitstaff and bus boys and hostesses and managers and all those things compared to if you go to a restaurant and it is one person and they are doing it all.  That experience is different unless it is a hot dog cart. Then you are okay. But outside of that, if you are going to a nice place, you would like there to be more than one person, right?

JB:  That is right.

Jason:  I have been in the restaurant business, and I have been in those situations where you have been a little short-staffed.  There used to be a restaurant in Greensboro that I managed, and it was just a time when you could not find help. It was amazing.  You just could not find anybody that, just nobody wanted to work and or everybody was very happily employed in the 90's. I can remember people being at the door, waiting, and half the restaurant is empty, and they are like why can't we sit there?  I am like we do not have anybody that could even help you.

JB:  Right.

Jason:  They are like well, we do not care.  We will serve ourselves. We are hungry.  It was a different time. But it was multiple different locations within this franchise I worked at, and everyone of them was the same.  Winston, High Point, Greensboro. You could not find people to work. It was interesting. I use the restaurant comparables a lot of times because some of you guys can relate to that pretty easy if you were in the Triad area in the 90's.  It was just a shortage of labor. It really was. If you are a seasoned professional and you have got the expectation of service beyond I guess the standard agent or the standard company, if you will, out there, such as just opening a door and letting you in, then that is what we are looking to do.  Is to serve you at a very high level. It is kind of like this. If you have ever experienced that five-star quality service, and you what I am talking to. It is when you walk in and it is just the feel, right?

JB:  Yeah.

Jason: There is just something different.

JB: Right.

Jason:  So that is where we want to be with you guys.  We have put a lot of money and resources into the tools, the system, the people, the support. It is not for everybody, but most people like a great experience.

JB:  Right.

Jason:  Some people are just satisfied with going through the drive-thru, and that is okay.  If that is you, that is fine. We are probably not the right shop for you. But if you are looking for something a little bit on the next level, not a little bit, a lot on the next level, we would be honored to walk you through the process.  What does it look like for those that have not experienced a five-star real estate service? It is something. Think about going to the finest hotel you can imagine, maybe New York City. If you have not been there, maybe you have seen it on TV or whatever.  Everything is pre-planned and ready.

JB: Right.

Jason:  The staff, what I like staying at a nice hotel is when you walk in, they predetermine almost every single question you could ask and you do not even have to ask it.  

JB:  Right.

Jason:  They are one step ahead of you.

JB:  Yep.

Jason:  That is just a great experience.

JB:  Right.

Jason:  I have worked in some very, very fine restaurants when I was much younger, and that was one of the, that is just something that they taught us.  Predict the expectation of the client so they never to ask for anything. It is amazing you learn over years in practice in the restaurants but also in real estate, body language shows you ninety-nine percent of the time what that action or what that need is.

JB:  Absolutely.

Jason: Even before they say anything.

JB:  Absolutely.

Jason:  So if you train yourself well, and that is what we work at every day, training our staff and our brokers to ensure they can predict those things.  The good thing about real estate is every house is different, but there is a lot of similarity in the transaction, and there is a lot of similarity in the questions. Typically when you put one under contract, everyone is like yes! This is awesome! And then we know the very next question is what next?  Right?

JB:  Exactly.

Jason:  So we lay that out.  Right? You do not have to ask that what is next question. Here is how that works. If you have ever lived in that five-star environment and frequent some of those amazing hotels, you know what that level of service feels like.  It is nice. It is relaxing.

JB: Right.

Jason:  It is convenience in which it just puts everybody at ease.

JB:  Right.

Jason: The most frustrating thing is not to know where to go, right?

JB:  That is right.

Jason:  You don't believe me?  Men, ask your wife when you got lost.  Right? Because I can assure you, it is a frustrating time probably for everybody in the car.  Those are the types of things that you want to predict and take those anxious things away and make it a very relaxed and comfortable experience.  We would love to show you that experience from a real estate industry standard. I have used the hotel comparison, but there is that standard within all types of industries.

JB: Exactly.  And I will say from a personal standpoint, if you want that level of service, that is why you need to call Jason. We have done this show for years now, and I have gotten to know you, and just the type of person you are.  You put people at ease. I think people, they will instantly recognize that if they get a chance to talk to you. So I encourage anybody out there looking right now, if you are on the fence, give Jason a call.

Jason: The fence.  That is no fun place to be.

JB:  No, you do not want to be up on the fence.  It is kind of painful.

Jason:  That is right.

JB:  Well Jason, is there any big change in interest rates or home prices in the past week?

Jason:  Yeah, it is interesting this time of year.  Of course, everything is moving fast. Right/

JB:  Yeah.

Jason:  This is the summer, spring.

JB:  This is when it is going on.

Jason:  Absolutely.  So this is when the momentum is out there.  Supply is actually going up, which is really interesting.  It is going up really fast, and actually since February, we have actually almost doubled the amount of homes for sale.

JB:  Wow.

Jason:  So that is, if you are looking at a graph, that is a straight rocket ship straight up there.  But the other side of that is prices have dipped a little bit. A lot of folks would be like wait a minute.  No, no, no, real estate is great. Multiple offers on every house and rainbows and unicorns. I have listened to the media and all that it is definitely good, and prices cannot be going down.  

JB:  Right.

Jason: Well, of course, everything you read on Facebook is true, right?

JB:  It is, isn't it?

Jason:  It is. Yes.  I think.

JB:  That is what they say.

Jason:  I do not know.  My data and stats, and I am pulling from the Multiple Listing Service here in the Triad.  It is not a huge drop, but it is a drop of about thirty-five hundred bucks, average per house is what we have seen.

JB:  Right.

Jason:  And some of that really has to do with probably being hyped up and excited about the market.  Right? Because those rumors are out there. The rumors are golly, you put your house on the market and you have got people beating down the door.  In some areas in some school districts, that is true. But what happens is now you get some overly excited maybe agents and sellers that start to bump up the price.

JB:  Yep.

Jason:  And then what happens is the market says whoa, sorry, you hit the ceiling.

JB: Yeah.

Jason:  And then you have to start coming back down.  Some of that could just be artificially overpriced and now it is correcting.  And there are two ways that is corrected. One, the market. The buyers just say we are not going there.  The other one is the bank. It is called the Golden Rule. They that have the gold, rule. You can agree to pay anything you want for a house, but if you are getting a loan, there is another set of people that are going to come in behind you and say maybe not.  Maybe we are going to take this a little bit slower.

JB:  Right.

Jason:  So we have seen that.  We have several homes we have had multiple offers on.  As a matter of fact, I had a house, we had an offer, it was about nine thousand higher than the second offer, and we went with the lower offer simply because we knew it was not going appraise.  Even though that person was willing to pay the nine thousand dollars' difference, the issue was they were getting a loan, both of them were, but the nine thousand dollars was not that big of a deal as far as looking at what their interest rate was and what a payment was per month.  It was probably eighteen dollars, but it was nine grand to the bank.

JB:  Yep.

Jason:  That is a bigger sinker, right?

JB:  Yeah.

Jason:  Just because you have the credit and just because you have the pre-approval, and these people were pre-approved way beyond what they offered even more than the nine thousand, the bank most of the time is going to come back and say hey guys, no.  Because we had that in 2004, 5 and 6, and look where that got us. So that is good that we have those protections there. I know that is frustrating to some folks. It is definitely frustrating to sellers when you have got five people arguing for your house.  You get a really good offer above what you're asking only to have to readjust because the bank said no or the deal blows up. Sometimes the buyers have the difference to make up. They can pay cash for the difference but pretty rare. We do see it. Anyway, rates.  Rate are fun, o boy. This will get you excited. They have been moving. For like a decade, they have just been low.

JB: Right.

Jason: Just bottom flat. Three and a half, three point six, just great.  Now all of sudden, we have bounced up to four and a half. I have seen some fives.  I got approval this week from a very big bank for a property we have under contract.  It was six point two. I have not seen six in what, since 2008?

JB:  Yeah.

Jason:  A long time.  So they are creeping up.  Obviously, the better credit you have, the lower that is going to be.  FHA and VA, of course, you have some pressure there for the lower down payments.  Sometimes the interest rate will be a little bit higher.

JB:  Right.

Jason: But all in all, they are still great.  Anything, four and a half is still phenomenal for thirty-year money.  It is still a great rate. You are going to see some stuff bouncing around.  The talk is that we are going to see rates probably continue to rise. I just looked at a poll today.  It was just a wash. It was forty-nine percent said no, we are good for the rest of the year. Fifty-one said no, it is going to go up.  

JB:  Right.

Jason:  Nobody really has that magic number.  We just watch the Feds and watch the money and they test the market.  They are going to raise rates if they can. If they can keep the economy moving and raise rates, it is definitely going to happen.  So we have be prepared for that. But my advice is this. Do not watch. Take action. Here is the thing. You know what the rate is today. If the bottom falls out and it goes back to three, you can always refinance.

JB:  Sure.

Jason:  If it goes to eight that is a whole different story.

JB:  Yep.

Jason:  So that is a game changer, right?

JB:  It is.

Jason: So if you can get locked in at a four and a half while they are still good or five or whatever it is you qualify at, now is a great time to buy. There are awesome, awesome properties out there.  Lots of great things in new construction. You are not stuck even if the rates drop. You have always got a choice. Now is there a cost? Sure. Yeah. Obviously, it is not free to refinance. But if you stay in a house ten years, it is going to be okay.  You are going to make that up quick. We have just got to look at those ratios. As we said before, JB, being on the fence, that is a painful place to be.

JB: Yeah, do not be up on the fence.  

Jason:  Make a decision, right?  Make a decision. Let's do this. We are going to take a quick time out.  Go pay some bills. We will be back in just a minute.

JB: All right.  Stay with us, folks.  You are listening to Real Estate 911 with your host Jason Bramblett.  And we'll be right back. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett.  JB along with you. Well Jason, we have got a few more minutes left in the show. Why don't we run down that summer time getting the house ready to sell list?

Jason:  Absolutely because spring is always about the cleaning, right?

JB:  Yeah.

Jason:  Now summer it is about the playing.  Having some fun. Right? And then we kind of forget about weeds and stuff.

JB:  They do grow.

Jason:  They do grow, so there are lots of different things that we have got to watch here.  You get excited. You are out messing around, playing with the kids and it is like whoa, wait a minute.  What happened? There is a whole row of corn growing up the driveway. We have got to watch those things.  So one thing that is alive and well in the South for sure is the old Bermuda grass.

JB:  Yes, buddy.

Jason:  That stuff will just destroy your flowerbeds in no time at all. I think it grows six feet an hour or something.  You put a little moisture and a little heat, it is running.

JB:  It must be related to kudzu somehow.  They must be cousins.

Jason:  Absolutely.  Absolutely. Monitor that.  We do not walk around our house every day, but the buyers are.  So think about that. Once every other day. Because it happens that quick.  

JB:  Sure.

Jason:  Just check those things out. Hopefully you put that pre-emergent out this year and lawn is pretty weed-free.  I have a friend of mine who tells me his weeds are beautiful and he loves them and he has no grass. And he is so right.  He does not. But whatever. It is his yard and his house is not for sale. So it is all good.

JB:  That is right.

Jason: But check the driveways and the sidewalks and those types of things.  Patios. Because sometimes you get, you know the old saying you get nose-blind from the whatever, the Febreeze commercial, right?

JB:  Yeah, exactly.

Jason:  Well we just get used to seeing stuff as we are walking around the house. Check those things.  The critters are out so check for the spiderwebs and all that, especially at the front door when you are walking in.  The porch lights. Nothing worse than having two hundred dead lightening bugs and the cobwebs and all that stuff. Look at those things.  Spring, hopefully all the little birdies are flown away and they are good. So a lot of times we get these little porch bird nests. Take a look.  Make sure they are vacant. Nobody yell at me. Do not throw the birdies out. But make sure they are empty because they can make a mess, too. It is amazing how big of a mess those things can make actually.

JB:  They can.

Jason:  If you have a pool, make sure you do not have some science project going on.  Right? So make sure your chemicals are right. Organize it. A lot of times that gets kind of debreed pretty quick, especially if you have got the kids back there.  They have got stuff thrown all around, and so just check the pool area. Check those areas, and then the last thing I would say is go back through, not necessarily redo the spring cleaning, but check the windows.  Again, because we have got lot of the spiders and those types of things that are coming out. The gutters, now if your gutters are dirty by this time, you have got little oak trees sprouting up for sure. So if you have got a nice little row of something growing in the gutter, you definitely need to know those need to be cleaned, right?

JB:  Exactly.

Jason:  Because nobody searches for trees in gutters, but it is something we do see.  And check the exterior surfaces. If you do not want to mess with any of that, we have got a great team of people that can help you.  Chris and his team, we have been working with for years. They do a top-notch job. They can help you out. So go to Jason Bramblett dot com if you have got any questions.  Or give us a call at the office, 553-0796, and we will be back right here next week.

JB:  All right.  Well, I hope you get to blow stuff up on the Fourth.  Have a great time. Be safe.

Jason:  Hey, sounds good.  Everybody else be safe, too.

JB:  All right. Have a great weekend everybody.

 

Posted in Radio Show
June 9, 2018

06.09.2018

Listen to podcast here:  Jason Bramblett Radio Show 

 

 

JB: Well, good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett.  For the next thirty minutes, we are going to be talking all things real estate, and also if have a question or comment for Jason about real estate, we are live in the studio. Give us a call. The number here is 336-553-0796, 553-0796.  And with that, as always, we say good morning to the man with a plan. Mr. Jason Bramblett.

Jason: Good morning, everybody

JB: How are you?

Jason:  It's good.  It's a beautiful day.

JB: It is a lovely day here in June.

Jason: It is June already.  Wow.

JB: Hard to believe.

Jason: It just happened.  But, time waits for nobody, as they say.

JB: That is right.

Jason: It is moving on.

JB: I know a lot of folks are graduating from high school.

Jason: Yes.

JB:  I know I drove Glenn High School yesterday during the graduation.  I know my homies. I have got to send a shout out to my folks in Wallburg and Thomasville.  Ledford is graduating. So all the family and friends and all the graduates, congratulations on that.  

Jason:  Yes. It has been a busy week.  We had a couple of folks that are like hey man, where did everybody go?  There is no one looking at our house. Here is the thing. It used to be like graduation, I am going to date myself.

JB: Oh, I know.

Jason:  Graduation, when I was in school, was when you left high school.  Right?

JB: Right.

Jason:  Twelfth grade.

JB: Yep.

Jason:  It seems to me that there is a graduation for just about every grade now.

JB: Well, growing up in a rural area, we had a little bit different school set up.  We went first grade through eighth grade. That was elementary school.

Jason:  Okay. Okay.

JB:  We did not have a graduation from eighth grade. No middle school.  Just right into high school. But yeah, now you graduate from Kindergarten, you graduate from this, you graduate from middle school. You graduate from this and that.

Jason:  It is a lot.  

JB:  It is a lot.

Jason:  Parents and grandparents are just running all over the place.  So anyway, some of our folks were like hey what happened to the real estate market? It is just graduation

JB:  Graduation, vacation time.

Jason:  Vacation time.

JB: It is kicking in right now.

Jason:  It is. It is full go.  It will speed right back up.  Until July fourth and then that is North Carolina state law.  You must go to the beach. It is a requirement.

JB:  It is a requirement, isn't it?

Jason:  You will drive down the road.  There is nobody here. Everybody is gone.  It is a wonderful time to get things done. That is for sure.

JB:  Sure.

Jason: But we are going to talk about supply and demand and we have got some questions that have come in this past week about that. What is happening?  What are the trends and what are they looking like? Are we getting balanced? Are we getting worse? Where is it going? So we are going to get in to that.  And rates, kind of calmed down a little bit. We had a nice little run up on the interest rates there for about sixty days and kind of sucked the wind out of some folks' hopes and dreams.  That one percent makes a difference, guys.

JB:  It does.

Jason:  It makes a difference.  It will definitely restructure what you are looking at. It does make a difference.  And then of course, your calls, emails. You can give us a call in the studio today. It is 882-7874.  Or if you do not want to do that, you can go to the Jason Bramblett dot com. Shoot me an email. I look at them almost every day and share them right here on the radio.

JB:  Right. Well, let's kick it off with an email.  What do you say?

Jason:  Let's do it.

JB: And this is a really good email.  I am glad that Bruce wrote this in. It says Dear Jason, I have a home located in the Winston-Salem area in Ardmore.  I feel confident it is going to sell quickly. But I am on a waiting list for a retirement community. Now is it advisable to sell now and take advantage of the market and rent or wait until I get the call from the retirement community?  Thank you, Bruce. That is a good question.

Jason:  That is a good question. And it really applies not only for this situation with somebody that is moving to a retirement community, but just in general.  What should I do? Maybe I want to build a house and it is going to take some time. That is the one little piece that we do not have in Bruce's email here.  How long is that waiting list? Because that does change the picture. I guess to give you a generalization, I will just give you a couple of options. I would say if it is six months or less, I am just going to wait and sell the house when they call me.  Right?

JB: Right.  Yeah.

Jason:  Because the real estate market isn't really going to change a bunch in six months.  Where we get into unpredictability is trying to guess what is going to happen in 2020.

JB:  Right.

Jason:  Not possible. We have no idea.  There is too many, way too many factors involved in real estate.  So if it is over six months, then I am probably going to go ahead and sell the house and rent for a while.  Now that is an option for some people. Now Bruce said a keyword in there which was retirement community. Most of the folks that are moving to a retirement community also have this other little cool thing called a paid for house.

JB: Right.

Jason:  And when you have a paid for house, you can stay a lot cheaper than you can rent.

JB:  Absolutely.

Jason: So that is another factor that we have got to look at, Bruce, is if you are, you are just paying taxes and some lights and keeping the water on, then we need to factor that in.  If it is going to be two years, then maybe we do not rent because rents have gone up a lot. You could be out thousands and thousands of dollars and then what you maybe took advantage of in a market, you just gave it all back in rent. We do not want that.  We want a situation where it is going to be a win-win. Now if it was a younger couple that whatever, they were paying thirteen hundred dollars a month in a mortgage, but they needed the equity out of their house in order to build, and they were going to go rent something for thirteen hundred dollars a month, well it is a zero-net gain.  Just make it happen. But when you have got somebody who probably has an income based on having no payments and then you start sucking out a thousand dollars a month, well then, we have got to take a look at it and say is that smart. Short-term, the math probably still works, and then after that we really need to take a look and make sure it makes sense down the road because again, rent is not cheap.  Most folks that we deal with, not all, but a good portion of folks when they are moving to a retirement community have the blessing of no mortgage.

JB: That is right.

Jason:  It is good.  This was a long time ago.  I was a chef in Charleston, South Carolina, and there was this guy, he was a chef with me.  His name was Willie. Willie had four teeth and they were in the back of his mouth. And it was very, very difficult to understand what Willie was saying.  The first week I was there I thought he was just hammered all the time because I had no idea what the guy was saying. I just had no clue. I was moving from Missouri to South Carolina.  They have got their own little dialect down there, and so

JB: You had to get acclimated to the dialect there, huh?

Jason:  I had no idea what Willie was saying half the time. But after about a year or so, I figured out Willie was not drinking and he was, he just talked different. But one, the owner's son took over the restaurant. He kind of passed the torch on.

JB:  Right.

Jason:  And this kid was a little fireball.  He was going to make Daddy proud.

JB: Gotcha.

Jason:  And him and Willie got in a little altercation one day, and Willie told him, he said, boy let me tell you something.  He goes I only got two bills. Electric and water. My house is paid for. And he goes, if you fire me, I will just go down to the river and wash my clothes.  He just had it all worked out. He was like I got a propane can and some water at the river.

JB: That sounds like a winner to me.  

Jason: Willie had a backup plan just in case.

JB:  Right.

Jason: It was funny. Of course, there was a lot more to the conversation, but the translation is somewhat in that realm. But knowing your expenses, obviously we want to make sure we are giving you good advice.  Because just to sell the property to rent may not be the best thing for everybody.

JB:  Okay.

Jason:  But it is an option.

JB: And we would like to thank Bruce for writing in.

Jason: Yes, absolutely.

JB: Jason, last week we talked about your instant offer program, and that stirred up some interest and got some calls, so let's dive just a little bit deeper this week into that program.

Jason:  It did, yes. Anything new and different people are like huh? Could you say that slower?

JB:  Yeah.

Jason:  So we are going to say it slower.  We did kind of speed through it last week. Of course, anything we talk about on the radio, you can call the office.  553-0796. Call the office. Leave us a message if you do not get us today. You will probably get somebody today, but we will get you the answers.  So here is what we have seen in real estate. Let me back up. It has been just the way that it has been for so long. Right? And you see opportunities where you can step in and maybe offer a product or a service that has not been there.  So the traditional thing is you call your real estate guy. They put a sign in your yard. And you drag a bunch of people through the house, and you hope that somebody raises their hand and makes you an offer. Right?

JB: Right.

Jason:  Many years ago, many of you guys know I did a lot of corporate relocation, and they had a buyout program.  I thought wow, why can't we have our own buyout program and you do not have to work for one of the big companies.  And that is where the guaranteed sales program came out of. It was just basically a corporate relocation. Well, it works.  It still works today. We have been doing it forever. But the interesting thing is now I am seeing another opportunity with folks that they just well, they just do not want the hassle of showing the house.

JB:  Right.

Jason:  They do not want to deal with the headaches of that. So we have kind of been brainstorming.  Me and the team and some other folks. Basically, they do not want to have forty-five people tramping through the house.  They have got small kids. They do not want to deal with getting the kids ready. They do not want to deal with the pets. Whatever it is. It is just not easy to sell your house.

JB: Right.

Jason: Because it is like, you are, they do not want to be the Boy Scouts. Right.  Always be ready. Always be prepared. Right.

JB: Right.

Jason: No, they do not want to do that. They want to live their life. So what we have found is there is a certain percentage of people out there that do not mind paying for the convenience of basically bypassing all the pain of selling a house. Right?

JB:  Right.

Jason: It is like we talked about the convenience store.  You can go to the big box stores and buy a whole bunch of water for four bucks, or you can go in the gas station and buy one for three dollars or the airport or whatever. You pay for the convenience.  There is a cost to that. And we have found that there are some folks that just do not mind paying for the convenience of one showing. That is it. Just what is it going to look like. Anyway, that is kind of where we dreamt up this idea of with just some people calling and asking if there was an option, do you have a no showings option?

JB: Right.

Jason: We have worked with some different folks and got some game plans together.  Then, I think I shared with you guys last week, we have got investors in the marketplace. We have got a lot of hedge funds and private equity and different companies like that are looking for opportunities to buy quality homes. I guess before the guarantee sale, before this instant offer, really the way you sold a home is you called the real estate guy, just like I said, or you called these We Buy Houses. Johnnie with the handwritten sign on the side of the road over there.  But those guys are taking, one, they are taking on some additional risk in that they do buy some distressed stuff.

JB: Right.

Jason:  You do not know how bad it is until you start peeling the onion away. I have bought a few like that in my day and let me tell you. When you peel that back and it is like holy smokes. There is no wood there. That is not a good feeling.

JB: Right. I understand.

Jason: But they are looking at, they are probably about sixty percent of the value of the house is probably somewhere where they are at. And most people, they cannot go there.  It is not even an option. They owe more than that. Even if they wanted to sell to those folks, they cannot. They do not have the equity to do it. But there is still a certain amount of people out there that do.  Hey they got billboards out there on the highway for a reason. Right?

JB: Right.

Jason: People are calling.

JB:  That is right.

Jason: Those things work, but for the majority of the homeowners, selling at sixty cents on the dollar is not an option. And there has got to be something in between.  And that is what we have found with the guaranteed sell and with our instant offer is there is something out there that is in between. Something that does not necessarily have to be such a huge deep discount for the right quality property. You see the formula.  We found it. We have got it nailed down and we feel like it is going to work well for our folks and for folks that just do not want to do it the traditional way.

JB: Right.

Jason.  And so it is good to have options. The other thing, too, is we will be able to show them both numbers.  Okay, here is the instant offer if you want to sell today or here is the market price. Here is what we think if you were willing to be patient and wait and drag forty-two people through the house. You might end up getting something along these lines.  The guaranteed sales program we have been doing since 2008, and just like all things, in a downturned market, it is like the saving grace. Our phones blew up from like '08 until 2017 because a lot of people are still underwater.

JB: Right.

Jason: Or very, very close, and they needed that guarantee. They needed to know that if they took that job in Tennessee that the house was going to be sold and they were going to have to deal with it.  They were going to end up with a long-term rental two thousand miles away or whatever the case may be. But as the market starts to improve, right, we start to see some equity building, and then people are like well maybe we do not need the guarantee because the house is going to sell in a month. So that is great. That product does not work at this time. Believe me, all markets cycle. It will be back down again.

JB: Oh yeah.

Jason:  I promise you. It will happen.  It will happen. It may happen sooner than we think because some of these values are ooh, something else. Anyway, so the instant offer, we will give you the price the company is willing to pay for the house in its as is present condition, and then we probably can give you some tips and tricks of ideas that you could do to enhance it, and maybe change that list price to a better number. But if you just want the convenience of hey, I do not want to deal with it, then we have got an option out there for you.

JB: Right.

Jason: It is really pretty simple. It is like 3, 2, 1, boom. Call us, meet us, and then we contract on the house.

JB: Sounds like a winner.

Jason: I think we can keep it pretty simple that way. That is the goal. I like simplicity. I like simple things.

JB: Simple is good.

Jason: Simple is definitely good.  We have got some of these house flipper guys that call us every day, and if you want to get in touch with them, we can definitely steer you in that right direction, too.  That sometimes is a good option for some folks. I have seen some houses where ooh, buddy, they have not been attended to in a while.

JB: Right.

Jason: And it is going to take a professional to get it, just something.  Sometimes, like I said, there are no words.

JB: Right.

Jason: Anyway, let's do this. Let's take a quick timeout, JB.  We are going to come back. We will have some more answers to your questions, and we will be back here in just a moment.

JB: All right. Stay with us folks. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. I am JB. I will tell you what. Do you want to jump back into another email there, Jason?

Jason: Yeah, let's do that.

JB: All right. We have got one in from Susan today.  It says, Jason, we have a new house under contract with a builder.

Jason:  Yeah, let's leave that one out.

JB: We did not think we needed an agent with a new home. However, now we are very overwhelmed, and things are not going as smoothly as we had hoped.  We think having someone on our side will help. Do you offer any kind of consulting service? Thank you, Susan.

Jason:  Well, hmmm, that is one thing I am pretty confident of is I do not think Susan is alone out there.

JB:  I think some other folks have run into this.

Jason: Yeah, and even if we did say the builder's name, it is not to say that they are bad. It is just you have got to realize whose team the players are on.

JB: Exactly.

Jason: Right?

JB: Right.

Jason:  Many folks out here buying have the same assumption that probably Susan does. Hey it is a new house. What could go wrong? Right?

JB:  Right.

Jason: It is brand new. Everything is going to be under warranty.

JB: Nothing goes wrong with a new house.

Jason: Never. Ever. When we have home inspections done and people are like you have home inspections on new houses? Well, that is a waste of money. Yeah, except for when you find thirteen trusses that are snapped in two.

JB: Right.

Jason: Insulation missing from half the crawl space.

JB: Yep.

Jason:  The HVAC may or may not be up to code. And why is the water in the pan already happening?

JB:  Right.

Jason: All those things where, and yeah, you are right. They are under warranty, but wouldn't you like not to have the water come through your roof the first week you move in?

JB: Yep.

Jason:  It is just all kinds of interesting things.  We found a roof, this was a whole entire subdivision. We had a home inspection, and of course, the builder was like nobody inspects my homes. I am like well, we are going to do that.  Come to find out that the roofer did not install the shingles to the manufacturer's specs, which also voided the warranty. The roofer was also the same guy that did the other twenty-two houses in the subdivision.  And then, we got ours fixed, and then a little storm came through. And there were twenty-one roofs that looked a lot different than the one we got fixed. But home inspections are not really worth it. Of course now, that was true. The builder did have to pay to have all that fixed. But here is the thing.  All the damage that was done on the inside and all the water and everything, just the hassle that they had to deal with. Had they had an inspection, they may have been able to avoid that.

JB: Right.

Jason: But here is the thing.  Here is what I know over doing this twenty years. Some people think that if they buy direct, they are going to save money. That is just, we have that with our properties we are not the builder. We are just the real estate broker working for the seller.  We have buyers come to us and say hey, I will buy this house from you if I can save some money. It is not really up to us. The price is the price, and the seller dictates where it ends. The buyer and seller, I guess both.

JB: Right.

Jason: But you are not going to hit a homerun just because you buy it from the listing agent. Actually, it is almost like buying it from the builder. Again, you have got to know whose team the players are on.

JB:  That is right.

Jason: The listing agent works for the seller, and can they work for the buyer and the seller? Well, in North Carolina that is legal.  It is called Dual Agency. Well actually, let me rephrase that. Actually, we do not know if it is legal. It is approved. There has not been a lawsuit yet to determine whether it is legal or not.

JB: Oh, okay.

Jason:  It is allowed.  How about that?

JB: All right.

Jason: If somebody would finally sue somebody for it, then we could figure it out. But there is a hundred thousand dollars, I am told, sitting in the State treasury to help with the lawsuit so we can figure out if it is legal or not. Isn't that fun?

JB: Yeah.

Jason: Those are good times right there.  

JB: That is good times.

Jason: When you're the one proving the law.  One way or the other. Right?

JB: Right.

Jason: Interesting stuff.

JB:  Yeah, buddy.

Jason:  Only in real estate.  I think we have talked about this before. If you hire an attorney's office, you cannot have, they cannot work both sides of the fence, right?

JB: Right.

Jason: They either represent one party or the other. Both do not work at the same law firm. Real estate, for whatever reason, they think it is okay. I do not understand why. But it does not work in anything else.  But back to our story here, Miss Susan. Susan, we believe it is definitely a good idea to have representation as you are I guess feeling that. It is overwhelming. Building a house is like the second most stressful thing in a married life.

JB: Absolutely.

Jason: Only to be trumped by the actual wedding itself.  Getting the wedding ceremony is the most stressful thing, and then you build a house.  Right? There are just a lot of decisions that you have to make.

JB: Right.

Jason:  There are like about five thousand decisions you have to make when you build a house. So here is what I know.  Yes, can we help you? Yes, we can. Can we step in right now and help you? Maybe. We can certainly look at the situation to see if we can help you, and some of that depends on what kind of contracts have been signed and those types of things.  But, we certainly will be happy to do that. But for everybody else out there that is thinking that they either may save money or do not need help, maybe listen to Susan's story because it is overwhelming and just having an advocate on your side, another set of eyes, another professional, can make a big difference so you do not end up with these pitfalls.  We have built thousands and thousands of homes, and we certainly know what to look for and we could help you out. So give us a call at the office. 553-0796, and we will be happy to talk with you about new construction here in the Triad. Everybody have an awesome weekend.

 

JB: All right. Thanks.

Posted in Radio Show
June 2, 2018

06.02.2018

Listen to podcast here:  Jason Bramblett Radio Show 

 

 

JB: Good morning. Welcome to Triad Real Estate 911 with your host Jason Bramblett. My name is JB, and for the next half hour we are going to be talking all things real estate. We are live in the studio as always, and we invite your participation if you would like to give us a call.  If you have got a question for Jason, the number is 336-553-0796, 553-0796. And we say good morning to the man who has always got a plan. Mr. Jason Bramblett. Good morning.

Jason: Good morning. Good morning.  How is everybody doing today?

JB: Well, let's turn your microphone on. That might help out a little bit.

Jason: There we go. Hey

JB:  Wonderful.

Jason: I hear me.

JB:  There you go.

Jason: Yeah.

JB: Welcome to the show.

Jason: Hey, thank you.  It is a wonderfully thick morning outside.

JB: It is weather you can wear here in the South.

Jason: That is so true.

JB: I was telling somebody yesterday.  I know everybody has been talking about it, but it has just been extremely humid. I almost started speaking Cajun this week.

Jason:  Yeah, right.

JB: Like down on the Bayou.  

Jason: That is right.

JB: And I do not even know how, but it is just ready for relief, and I know we have got a long way to go.

Jason: I was watching a guy run down the street the other day, and it was like he had a vapor barrier coming off of him like the airplanes do.  But geesh, it was something. Anyway. Real estate.

JB: Yes.

Jason: Should I sell?  Should I buy? What to do? What to do? What to do? Boy, lots of questions this week, and lots of, just folks are kind of circular right now. They just kind of are like yeah, I think I want to sell, and then they go right back around to I do not know what to do. So we are going to see if we can help you out.  Help you get you out of that frustration. We have, sellers are frustrated. Buyers are frustrated. And it is interesting. Everybody is looking at the same stuff, and usually it is one side or the other. This is pretty much, this is both. Equally frustrating for buying and selling right now. But we will dig into that.  Plus, we have got your calls and emails. You can get us right here at 882-7874. Office number if you want to leave a message there is 553-0796, and you can email us. Go to Jason Bramblett dot com. Click on that Contact Us button, and it will go to someone. I promise.

JB: All right. Well, good. Maybe if you are frustrated, you have got the right place. You have got it on the right place on the dial this morning. Let's help you out. Hey, Jason, let's start off with selling the house. What do you say? It would seem now is the right time to sell. Yes or no?

Jason:  Yeah. It would seem.

JB: It would seem.

Jason:  It would seem. If you were listening to the media, radio, TV, maybe even reading some articles, it would seem that wow, it's back. It's time. But here is the thing. The interesting thing I am seeing in the market, and I am looking here in the Triad. I do look at the overall, but at the end of the day, I am not selling in Dallas, Texas, right?

JB:  Right.

Jason: So this is home.  This is what key. Interesting prices did actually fall. They dipped from April to May. We had a price adjustment. It actually went down. I say that to some people and they are like nah, don't think so. I am like yeah, it is statistically proven. There are numbers to back it up.  But it does not feel, there is a good metric for you. Feel like it should be possible, right?

JB: Right.

Jason: Because we have a shortage of inventory, and you go to just logical supply and demand economics, and you would say a little bit of something means a bigger price.

JB: Right.

Jason: Well, sometimes. But now, I will say prices have increased overall over a larger period of time, but we did see this little dip in the last thirty days. I have been watching it each week. It is interesting to put a couple hundred houses on the market, but I am watching this price decrease, number increase every single week.  It is one hundred-thirty houses, hundred-ninety houses, two hundred and eighty houses. Now it is up to almost four hundred houses that are lowering their price every week. So what is that? We are chasing the market. Or we have got some, unfortunately, some inexperienced agents out there that potentially could be overpricing some homes.

JB:  Oooo.

Jason: Yeah, well, it happens. And they do that for several reasons. One is they may not have the guts to tell the seller the truth, and they are just desperate for business.  Think about this. We have increased the number of real estate agents in the state of North Carolina by like twenty-five thousand in the past twelve months. A good number of them are right here in our area. So we have increased the number of people attempting to sell.  We have decreased the things that we are selling. Right? Because inventory is low. And when you do that, and people are attempting to make money, sometimes they get desperate.

JB: Right.

Jason: And sometimes they will just tell you what you want to hear as opposed to telling you the truth. And the truth is your house is never going to sell for that number, but I need to put a sign in the yard, so I will just go with that.  It is not difficult to do. In twenty years of selling houses, you just ask the right questions, and eventually the seller will puke out the number that they want. And there you have it. And that is the only thing that matters from there on out. As long as you can get those things aligned and you make them happy, you will get that listing signed, and you will put that sign out there and it will grow moss because it is never going to sell.  So that is a correction that we are seeing. We are seeing that inexperience play out where they are basically buying the business. Right?

JB: Right.

Jason: They are telling the owner what they want to hear as opposed to what is reality, and okay, well that is a correction.  Overall, it will hurt the market. It will actually hurt the market. Then so you will see the prices adjust down every week. You see them chasing the market back to where it should be. Now the other one that is interesting that also is a correction is the banks. Maybe the house was priced perfectly, but it is one of those houses that is in a neighborhood or area where there is a high demand, and you end up with seven, eight, ten, twelve offers on it, pushing the price up.  The problem is it is also in a price range of which nobody has any money. They just have good credit.

JB: Right.

Jason: No money, good credit. So they are putting down the least or nothing.  And when I say nothing, yes folks, we are right back to doing as many hundred percent loans as we can possibly crank out in the nation and or we are doing three-and-a-half percent down. We all know what happens when that bucket gets full. Right?

JB: Yeah, we do. We have been down this road before.

Jason: We have. So what we are also seeing is that even though the consumer is willing to pay more for the house, the bank is coming back and saying wait a minute. You might not have owned a house in two thousand six, seven, and eight. Well, we owned a lot of mortgages, and then we ended up owning a lot of houses.  Probably at one point in time, Bank of America and Wells Fargo and some of these really big huge nationwide lenders, they probably owned more houses than most building companies.

JB: That is right.  I am sure they did.

Jason: So they had a load of inventory.  So they remember those days. So what do they do?  That is why we have those appraisers out there. Right?  They are the ones that give a little throttle to pulling them back a little. So even though you may be willing to pay an extra fifty dollars a month to go fifteen or twenty thousand above the asking price, the bank is going to say well, wait a minute, it only affects you fifty bucks a month. It affects us like twenty-five-grand if this number is wrong and you stop paying. And we are upside down. Right?

JB: Right.

Jason: And this is why we have that. You will see that adjustment in an appraisal. So sometimes you will see that maybe the agent got excited and got the business, but it was the wrong price. You will see that corrected. You will see that maybe there are multiple offers if they push the price up too high. That came back and got corrected. Remember, I am looking at the entire Triad when I say these prices are adjusting in a downward trend. But it also is very city-specific, area-specific, and even neighborhood-specific. There are neighborhoods in Greensboro that are falling in price, and there are neighborhoods that are going up.  There are neighborhoods in Winston-Salem that are dropping in price, and there are neighborhoods that are going up. So you have got to be very specific in how you look at that. Another interesting thing that we are seeing is that even with the lack of inventory, dated houses are not selling. It is surprising. Not bad homes. I am talking homes that are structurally sound, but they just do not have the pop that folks are looking for right now.

JB: Right.

Jason:  It is really interesting. They are just sitting on the market. You look at the house and you go wow. This house three years ago would be gone. Not so much. So I am amazed at the number of buyers that just are not willing to do anything at all to a house. I am talking we will not paint. We will not put new carpet in. We do not, we do not want to deal with the hinges and changing out the brass, and we just no. We are not going to do it. If it is move-in ready and new, that thing is gone.

JB: Right.

Jason: It is flying off the shelf. So it is interesting. That is where we are seeing the multiple offers at. Then we have homes that are priced properly per square foot and all that, but they are little dated, and people are coming in like hmmm. Nah. I just do not want to go there. I do not want to deal with it. So it is very interesting. We have not seen that, and probably have not seen that because when the inventory is low, there is less to watch and then you have more showings. So the feedback is coming in quicker, and it is just amazing.  Proportionally, the consumer, the buyer today is going to lean towards a new house or a remodeled house almost nine times out of ten. So it is kind of an interesting time. Something we have not really seen that before. If you have one of those, and you are getting traffic and you cannot understand. Why in the world? We had all these people come through. Why are we not getting offers? Take a look at what is going on within your house. Look at the appliances. Look at the paint colors, the carpet. Do you have a bunch of brass in there? That tends to be something that they do not want. Okay.

JB: Right.

Jason:  So getting the house up to standard, to that standard is going to be really crucial. If you need help with what that looks like, we can help you. Give us a call. We can come out there. You can go to a new model home. Brand new construction.  They usually have those houses as much up-to-date as you can possibly get in new construction. Right?

JB: Right.

Jason: And if you do not want to drive around and do that, you can go online. Pick up a magazine if they even still have those anymore. I guess there are still bookstores out there, right?

JB: I think so.

Jason: There are a few left. Go online and look at some of the design ideas. You do not have to go crazy, but you can mix, here is what I found. A hundred percent old is not working. And I say old, old being outdated. A blend sometimes can work. Or go all in and just update everything. Right?

JB: Right.

Jason: If you update everything, you will I think see a rapid change in your feedback and you will probably see another thing which is multiple offers.

JB: Okay.

Jason: So be prepared.

JB: So, Jason, if I heard you correctly the priced-right update or new house is going to fly off the shelves. Everyone else just better call you for help. Right?

Jason: There you go. That sums it up. There you go. Let's do it that way.

JB: I have a firm grasp of the obvious, don't I?

Jason: That is it.  Here is the thing. We are here to help. We are here to get you the most money that we can possibly get you out of the home with the least amount of effort and energy. That is what we are here for, right? Convenience. That is top of mind in our office at all times. We want to be convenient and really go above and beyond to ensure that it is the right experience.

JB: Right.

Jason: Are we the right fit for everybody? No. Certainly not. I cannot rebuild your house. I know people that can, but I cannot do it. And you would not want me doing it actually. For sure. We just want to make sure that we are giving you the proper information to make the best educated decision, and that is all based on statistics, documentation, and proof.  We can show you the reason why you are frustrated, and this may not be working for you is probably going back to what does it look like? Who is your audience? If you want to go to a country concert and that is what you expect, and you show up and they are playing opera, not probably going to be the best experience.

JB: No.

Jason: That is kind of what we are seeing.  We have folks that have the area maybe down, but then the presentation of the house, hmmm, not so much in that audience. You are attracting the wrong people, and we need to switch the product to attract the right people. I think once that happens, you will be pleasantly surprised. And sometimes it is not what the owner wants to do, and that is why we got a paint-by-number system. We make it as simple as we possibly can, and we are going to show you what it is we can do to get you in the right direction, and get you pointed to the right way.  We have had hundreds of owners though throughout the years that said, you know what, Jason? I just want to sell this thing as is. And that is okay, too. We can deal with that as well. But you have got to understand that is a different price.

JB: Right.

Jason: We always start with the most money and top dollar and adjust from there.

JB: Right.

Jason: Here is what we are going to show you what the best looks like, and then you have to decide financially can you do it or do you want to do it.  There is no wrong answer.

JB: That is right.

Jason: It is just a different price. It is just a different number. That is all. That is where we are getting to.  Let's do this, JB. Let's take a quick timeout, go pay a few bills for somebody out there. We will be back in just a few minutes with your calls if you have one. 882-7874. We will be right back.

JB: All right. Stay with us. (in/out music) And welcome back. You are listening to Real Estate 911 with your host Jason Bramblett. And right before the break, Jason, I think we were going to talk about some selling right now.

Jason: That is it. That is it. We get this call, and I have been working for a while to come up with an option for folks that just do not want to put their house on the market. They want to sell it, but they do not want to put it out there. They do not want strangers walking through. They just do not want to deal, maybe they do not want to even deal with the prep of getting it ready. Just a lot of different scenarios. I have just been brainstorming. What can we do? How can we serve this person that is ready to sell, but emotionally and or just does not want to go through, and it really is emotional that they just do not want to deal with the stress

JB:  Right. Exactly.

Jason: of all that.  And I get it because selling a house, it is not easy.

JB: There is a lot of stuff.  A lot of moving parts.

Jason: I am telling you. Sometimes when I come over to the house, not only do the kids cry, the dog starts whimpering because

JB: That is pretty bad

Jason: It is like man, this is going to be no fun for nobody.

JB: I know.

Jason: Usually the dog takes it the worst, right? He is like don't you dare come in this house. He is like I am going to be put out back. He is like have you felt the humidity? He is like come on.

JB:  The ticks and fleas are terrible.

Jason: That is right. That is right.  So here is what we have come up with. We have been working a plan. You are going to start to hear it the next couple of weeks on the radio, but we have an immediate buyout. What we will do is we will come to your home. We will evaluate it, and in twenty-four hours, we will give you a buyout price and we will also give you a price in which the home can be listed and sold on the market for.

JB: Oh really? Wow.

Jason: I have obviously bought a lot of homes over the years. We still have our guaranteed sales program. It is different than this program.  This is an immediate, when I say immediate like, like you have one showing. It is us. That is it. Of course, now people are going to be like well, how is he going to do that? Well, I do buy homes throughout the year whether to fix and resell or keep or whatever we do with them. But I have also made some really good connections. I have been to Jersey and New York here in the past couple of months and basically, we have met with some Wall Street venture capital companies. We have got some great folks that we have dealt with who are in a position to step in and pay cash for your house. Okay. So they have got money in like with a B, billions of dollars.

JB: There you go.

Jason: So they are buying not just here, but around the US.  Greensboro/Winston-Salem/High Point is an area in which they are very interested. So we have the network now to step in and do this and have an immediate buyout. Actually I am going to see a house today that the lady called and she is just like I just do not want to do it.

JB: Right.

Jason: Okay. Well, I am going to go check it out.

JB: We can work with you.

Jason:  We are going to work with that. So, be listening. You are going to hear it. It is going to sound interesting, sound different. Are they going to come in and pay you retail? No. It is a venture capital company. Right?

JB: Right.

Jason: It goes back to convenience. Here is a great example of convenience. Bottled water. You can go to any gas station on any corner and buy one bottle of water and typically it is about a buck to two-fifty.

JB: Right.

Jason: For one.

JB:  Right.

Jason: You can go to Costco or Sam's and you can buy three hundred and eighteen of them for the three dollars. Or at least forty anyway. Okay. Now, are they going to discount it forty X? No.

JB: Nope.

Jason: But there is going to be a discount for the convenience. Okay? Look. It is Wall Street, guys. They have got to make money too, right?

JB: Right.

Jason: I have looked at some of the plans. I have looked at some of the percentages, and they make sense. It is not one of these we buy houses sixty cents on the dollar type of situations. It is a real number. It is going to be a discounted number, but it is going to be a real number. And you have to decide is that convenience worth that price?

JB: Right.

Jason: It is an option. Is it for everyone? Not at all. But there is going to be a percentage of folks that they are going to be like you know what? I have got one hundred percent equity in my house. I just do not want to do this

JB: Right.

Jason: and I am good with the number. Or if you have an estate, we have a lot of folks that are selling estates where Mom or Dad passed away or both and it is just something they need to do quickly. I have looked at the numbers. It is better price, I feel, than what some of these other franchise-type systems have out there.  And it is an option, and it will not cost you anything to find out what it is.

JB: Well, that is exciting.

Jason: So there you go.

JB: Cannot wait to hear about it coming up in a few weeks.

Jason: You got it.

JB: Well, we have got a few more minutes, Jason. Let's talk right quick about some buying. Is it the right time to buy?

Jason: Is it the right time? I tell you, I mean, yes. It is so, if you can find what you are looking for, buy it.

JB: What are you waiting on?

Jason: Absolutely. Yes. Certain price points, it is getting competitive. Right?

JB: Right.

Jason: But here is the thing.  The rates are going up. What have we always said on here? Everybody looks at the price of the house. That is not the most important number.

JB: Right.

Jason: It is the mortgage that is the most expensive part.

JB: The price of that money.

Jason: Absolutely. You think you are buying a house, and really what you are buying is a mortgage. You do not believe me? Stop paying it.  See what happens. You cannot live in a mortgage, folks. I promise you. You cannot glue it together and put a roof over your head. It is the most important part. The terms, the financing, the mortgage. Since January, you have actually lost about twenty-five-thousand dollars' worth of buying power because the rates went up. So meaning this, if you purchased a two hundred thousand dollar house in January, you are looking at about a hundred and seventy-five thousand dollar house to have the same payment, being all things equal. Okay. That could be a bedroom really.

JB: Yeah.

Jason: So instead of a four-bedroom house, realistically, you could be looking at a three-bedroom house.

JB: That is right.

Jason: That may be all that you can swing. Here is the thing. Do not wait for them to go back down, guys, because everybody I am talking to, everything I am reading is that ship has sailed. It is gone. You are going to see small increments of change, but we have bought this fake rate down for a decade, and it is time that it gets fixed. It looks like it is. I would not be surprised if we do not see six percent perhaps by the end of the year or first quarter of next year.

JB: Wow.

Jason: That is almost, think about that, six percent is almost double what it was a year ago. That is crazy.

JB: That is crazy.

Jason: So you think about that buying power you lost. Time is of the essence as they say in real estate, meaning get your tail moving. Okay? It is drop dead. It is going to happen. Can I predict everything? No. And I am listening to people who are much smarter than me, but the Fed, the essence of everything, the feeling is we are staying put here or going up. We are not retreating. And you are not going to retreat, typically, with inventory as low as it is. That is the opportunity. The real opportunity is, in my opinion, is buying up of the un-updated house. Right?

JB: Right.

Jason: So if you cannot find a house or you are getting frustrated because all the good ones are gone, go buy not-a-good one. And make it good. If you have the cash to do that. If you have the capital to do that. If you do not, there are some loan programs that can help you fix the house up. Now there are different rules for those type of loans. But you can get in touch with Dave Held at Caliber Home Loans and he can walk you through it. They have got a great program.

JB: Sure do.

Jason: So Dave can help you there. You can go to our website, Jason Bramblett dot com. Shoot us an email or click on our mortgage partner, and Dave can tell you about that program. All right. Make it through the humidity. We will be back here next week, live in the studio. Go to Jason Bramblett dot com for your questions. Talk to you soon.

 

JB: All right. Great show. Talk to you next week.

Posted in Radio Show
May 26, 2018

05262018

Listen to podcast   JBRE Radio Show 

 

 

JB: Good morning. Welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and along with Jason for the next half hour we are going to be talking all things real estate. We welcome your calls if you are listening in this morning and you have a question or comment for Jason. We are live in the studio. 336-553-0796 is the number.  553-0796. And with that we say good morning to the man who has always got a plan, Mr. Jason Bramblett. Good morning.

Jason: Good morning. Good morning.  I hope everybody is doing well.

JB: Doing good.

Jason: Still fighting that little yellow pollen out there, but

JB: Yeah, I will tell you what and a little muggy out there.

Jason: Yes.

JB: Kind of pea soup out there.

Jason: Yes, it is.

JB: Soupy, swampy.

Jason:  It was definitely last night for sure.  But, Memorial Day. Thank you, guys. Thank everybody that is, it is the families that have paid the price, the ultimate price, and the freedoms that we enjoy are because of the men and women that are not with us. So I hope that we remember this weekend. It is what allows us to be on the air. We are not controlled by a government that says that you can only say this and only do this.  Because of those freedoms we have I can run a business.

JB: Right.

Jason: It wasn't free.

JB: Right. There was a cost.

Jason: There was a cost. Remember that. That is what the weekend is for is to remember those that are not with us any longer.  The true heroes, if you will, that have forged ahead. I have been in many countries where that choice of freedom is not there, and you have the thumb screws of the government controlling what you can do and what you can say. It is that oppression, in America we have competition. Okay? It is just really whoever is the best at what they do is going to win, and they are going to get ahead. Or if you provide great service and all the things that make a company or business outstanding and one that attracts people to it that they want to either work with you or use your service.  When you have the government stepping in and creating a system in which that is not, freedom is not there to do that, it is hard to win, guys.

JB: Right.

Jason: I have been in many of these countries where you just do not have that opportunity, the freedom.  It is interesting. A lot of the, some, one side or the other of Americans seem to think that is, they want to be like that to make it fair.  All I can suggest is maybe go visit one of those countries and test it out first. Because I think if you talk to the locals, you will discover that it is not all quite as great as you might think it is. Right?

JB: Right.

Jason: Whether you are running a multi-bazillion dollar company or getting a welfare check today, be thankful that those systems are there and that you have got the freedom to be able to that.

JB: Well said.

Jason: Anyway, real estate. That is a good thing because you can own it. There is actually a few of those countries that I have been to you cannot even own real estate.

JB: Wow.

Jason: So how about that?  Everything is owned by the government. That is exciting. That is another great freedom that we have right here in America is that we, you have got the ability to own property, to own land to build a home. So that is a definite freedom that we enjoy here that a lot of places do not. We have some awesome, awesome new houses hitting the market. You need to go to our website. You can check them out. Jason Bramblett dot com. Click on that Coming Soon link. They are all over the Triad. We have got properties from Bermuda Run to Mebane to Asheboro to the Virginia line. We cover it all, and so if you are thinking about selling, I can assure you that we probably, if you can hear my voice, and you are in the state of North Carolina, we probably can help you out. And even if you are not in the state of North Carolina, I have a phenomenal partner up in Virginia that I can introduce you to.  Damon and his team will take phenomenal care of you guys up there.

JB: Well, I know we have got a lot of people up in southern Virginia listening to us. We do not want to leave them out.

Jason: We do. Absolutely,

JB: We appreciate you guys listening in, too.

Jason: They call me all the time. I am thankful for the calls. I cannot help you personally, or my team cannot, but we have got a partner up there that does many of the same things that we do, and he does a great job as well. Interest rates. Holy smokes, man! They are just spinning like a top right now.

JB: Yep.

Jason:  It is the yo-yo of are they up? Are they down? When should I time this thing out? Look, interest rates are like predicting who is going the win Super Bowl. You have just got to go for it. You cannot sit on the fence right now. They are kind of all over the place. You are losing buying power if they go up. So think about that. Every time the interest rates go up a percent, it is ten to thirty thousand dollars depending on what rate you were quoted and what your credit score is. It can be significant buying power. Even if it was only ten grand, ten thousand bucks, that is a bedroom in a house most of the times.  So that could be the difference between a four-bedroom or a three-bedroom house. So think about those things. Is now the time to sell? We are going to dig into that as well. One of the things that we are hearing a lot though is man, I cannot seem to find a house I like. I kind of think I want to sell. I am hearing that it is a good time to sell. But I am looking online and I cannot find. What should I do? We are going to talk about that. That question has come up multiple times in the past three or four weeks. And then we have got your calls and your emails. We are here in the studio. You can give us a call at 882-7874 or always shoot me an email. Just go to Jason Bramblett dot com and click on Contact Us. Share your story, and if it is radio-worthy, we will share it right here.

JB: Sounds good.

Jason: And most of them are. I get very few uninteresting emails. Most of the emails we get are really good.

JB: Right.

Jason: Really great questions. So keep sending them our way.

JB: Well, why don't we just start off with a question? Is that okay?

Jason: Let's do it. Let's do it.

JB: Somebody writes in and says hey, I want to sell, but I cannot find anything I like to buy. What to do? What to do?

Jason: What to do? This is one we just keep on hearing almost daily. The data that is out there right now says that if you sell this year, you will get more for your house this year selling right now than you would have in the past ten. That is pretty good data. Right.

JB: Sure.

Jason: If you are looking at it from a monetary standpoint, the data says put that house up for sale because you are going to win.

JB: Right.

Jason: The interesting thing is that some owners do not care.  And so it is kind funny. The perceived pain of moving or renting for a short amount of time is outweighing that price.

JB: Right.

Jason:  It is very interesting. I listened to a very intelligent guy speak in New York City a few weeks ago, Mr. Bob Pittman, who is the CEO and Chairman if I Heart Radio or Media. Very intelligent guy. Something, just some wisdom that he was sharing is that in America with the businesses that he has been involved with, and he has been involved with a few. He started MTV. That is a little one, right?

JB: Yeah, a little company he started.

Jason: So he has done okay. But one thing he shared with us is people will buy, sell, or react when convenience, whatever the perceived convenience is to them, and that lives out so true right now in this real estate market. Because common sense would say if I am thinking about selling and I bought it for a hundred grand and I can sell it for one-thirty or one-fifty, I am making money. It is America. That is what we want to do is make money. However, the inconvenience of the move say eh, it is okay. Or I cannot find what I want, and I am going to have to move twice.

JB: Yeah.

Jason: It is actually the question is not really about the money. It really goes back to about the convenience. Let's face it. It is a pain in rear end to move. I do not care. I have moved in our office. I have moved from one, I have one, two, three, I have moved my desk four times as we have grown. I might as well have moved to Raleigh. It does not matter if you move twenty feet or eighty-five miles, it is still the same pain in the rear end.

JB: It is a job.

Jason: It is a job.

JB: It is a job, man.

Jason: What is sad is I have not unpacked from each location that I moved within the office.

JB: You still have got the boxes?

Jason: I still have some carry-on stuff. It is like what is that? And every time I move, I am like oh, that is where I was. Oh, I did need that for something I am sure. The pain of doing that, just moving, it is not convenient.  And therefore, sometimes we will not take advantage of the market or the opportunity. Why? Not convenient. The money does not really matter at the end of the day. It is kind of interesting. Now not the time for everybody. But for some it will. Here is the thing. We have all been cheap in our life about something. Right?

JB: Sure.

Jason: Typically, what that has to come back to is you did not really maybe want it. I could take it or leave it. I bought a car this way. I really did not care if I got the car or not. It made no difference to me. But I showed the man the money that I had. I said this is what I got. If you want it sold, it is sold today for this price. Outside of that I do not really care. I am not negotiating. I am not nothing. It just is what it is.

JB: It is what it is. Yep.

Jason: It was just hey. If it is convenient, I will do it right now.  Now there have been other times where, this other half that I have that is important.  It might not have been convenient for me, but it was something that she or he wants. Right?

JB: Right.

Jason: So sometimes we maybe do things that are, we overpay for stuff out of convenience. Think about the gas station, right? Think about when you are at the airport and you buy that four-dollar water. It is kind of a government-controlled thing.

JB: Oh, my goodness.

Jason: Why in the world can you cannot take a sealed-up water bottle through the stupid x-ray? It makes no sense to me whatsoever.

JB: I do not even want to go there.

Jason: But TSA, it should be funded by all the things that they confiscate.

JB: Yeah, they could take their confiscated items and sell them and fund that.

Jason: Absolutely. But what do they do? They throw them in the trash. But only in this country. It is interesting.  I was flying, I will not mention the country, but flying back to the US and I bought some hot sauce. Just a little souvenir. It was three point two ounces.

JB: Okay.

Jason:  All right. The limit at that time three ounces. That point two, which is what, a lick, nothing, kept it from getting on the plane. I am negotiating with the guy because this hot sauce is awesome, and I forgot to put it in my checked bag. I had like four bottles. I am like come on, man.

JB: It is hot sauce.

Jason: It is hot sauce.

JB: Come on.

Jason:  I said let me keep one. He is finally like all right you can keep one. He kept three. He took it over to a trash barrel. It was completely full of hot sauce. A fifty-five-gallon drum

JB: Full of hot sauce.

Jason: Completely full of this hot sauce. I said, what are you guys going to do? He said, oh at the end of the, you the last plane. When you all leave, we take all that and put it back in the store. I said that is brilliant.

JB: That is brilliant. We are going to have us a barbeque.

Jason: Exactly. He was like oh we are going to take that back up there and we will resell it. I thought that was brilliant. So make sure that if you bottle-size it to whatever is above the TSA regulation. Right?

JB: Right.

Jason: They were reselling all the hot sauce to all of us lovely tourists that were buying it and forgot to put it in our checked bag.

JB: Nice racket there.

Jason: But I felt good in that I was not obviously the only one because there were probably a thousand bottles in there.

JB: It must be some good hot sauce.

Jason: It really is. It is some good stuff.  So for benefit, right, and for convenience we do different things. So here is the thing. You might have to get uncomfortable and do something temporarily to take advantage of the market that we are in. You might have to get a little uncomfortable to cash out, to get the full advantage of getting the most money for your house right now. You might have to sell and rent for a month or two.  That is very possible. You might have to move twice or put that stuff in a little mini storage or one of these pod things they have out here to take advantage. That is a choice. And not everybody is going to make that. Some people are like it is not worth it. I know I am going to get eighty thousand dollars more for my house than I paid, but the pain of doing all that is not worth it. The inconvenience of that is not worth it to them. Some people are like I am out the door. Right?

JB: Right.

Jason: And you have got to make that decision. But I will tell you data and the statistics tell us that right now, today, you can sell your house for more than you could in the past ten years. That is a pretty big number.

JB: Right.

Jason: So think about that.

JB: Well, other than price, are there any additional benefits to selling right now, Jason?

Jason: Oh, absolutely. How about this? You could spend the whole summer at the swimming pool.

JB: I like that.

Jason: Yeah, especially if you did not have one. Right?

JB: Yeah.

Jason: I have got some friends of mine, they were moving to, they moved to Raleigh, but we sold their house in about a day. That was pretty quick, so they were not really expecting that. They thought they were going to have time to look because they knew, obviously they know where Raleigh is. They just did not know where they wanted to live. So they decided they were going to rent an apartment. We sold their house probably in May. Right when school was getting out. Somewhere in there. I would check on them every now and then.  How is it going? You looking? We have kind of looked a little bit here and there. I was like where is the sense of urgency that you all had? Right? It was like man, I come home from work. I do not have to cut the grass. I do not have to pull any weeds. My wife and my kid are at the pool. We go down and have a little barbeque. So they just turned the whole summer into like a little vacation if you will.

JB: Like vacation.

Jason: They were just at the beach at a condo. And then of course it did finally wear off and they were like it is time to buy a house. But they lost their sense of urgency for about ninety days. They were like this not doing nothing. I like it. It is okay. It is not bad. It is kind of funny that they could take advantage of that. Here is the thing. Another benefit is you can, if you have sold your property and you are in an apartment, and maybe you have got a ninety-day apartment, and we have got plenty of people within the Greensboro area and Winston-Salem, we have a relationship with these apartment communities. They will let you do a three-month lease. So if you need help with that, we can assist you. But it lets you act faster, right? You can move quick. When you do not have anything to sell it is like hey, I can buy your house and I can, it is not contingent on anything.

JB: Right.

Jason: I am approved for the loan. I have got the money for the down payment. I have nothing to sell. I am ready to go. That is a big deal. Right?

JB: Right.

Jason: Think about the seller looking at that offer.  If they have got a pile of offers and some of them are contingent, there may be some of them that are financing terms that they are a little uneasy on, and you come to them with nothing to sell, conventional, and I am putting twenty percent down, you are probably going to get moved right to the top of the pile. So think about that. Those are some win-win things. Just the highest offer, I can assure one hundred percent, we have sold many, many, many homes where the highest offer was not the offer that won.

JB: Right.

Jason: It was the offer that we knew they could get to the finish line.

JB: There you go.

Jason: Just because you can pay more does not necessarily mean that you are going to win. There are other conditions within that. There are other terms that can put you way above the pile outside of price. So something to think about.

JB: Right.

Jason: Let's do this. Let's go pay some bills.

JB: Okay.

Jason: We have got to let you hear a couple of great commercials. I am sure we have got coming up, right?

JB: That is right.

Jason: Absolutely. We will be back here in just a minute. Triad Real Estate 911.

JB: All right. Stay with us. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. Thanks for joining us this Saturday morning. How about an email question, Jason? You want to go back into that?

Jason: Let's do it. Let's do it.

JB: All right. We have got one from Betsy. Betsy writes in and says Jason, I am seeing several homes that have been on the market for a while that we like. Our issue, and it appears the seller's issue, that these home need work, and we do not have the money to fix them up. Is there a loan that we can get the money to fix up these homes? Thanks, Betsy. So that is a great question.

Jason: It is a great question. It is something that yeah, wow, this one here is another one that comes up quite a bit.

JB: So it is quite common, huh?

Jason: It is. There is a time in a house's life, I tell you the most difficult home to sell is a house that is seventeen to twenty-one years old, and it has got an original roof and heating and cooling system.

JB: Right.

Jason: Because you just know the next guy that buys that house is all in and they are paying for them things.

JB: Right.

Jason: They are not broke. They work. They are out of date.

JB: But the law of averages is creeping up there.

Jason: The law of averages is you are writing the check, buddy. That is just all there is to it. And those are tough because it is not like is the house worth less? No. Actually it will appraise. The appraiser does not look at the roof and say oh this one is new and that one is twenty years old and we are going to ding it. No, they do not. As long as it is not leaking, you are good to go. It is just averages.

JB: Right.

Jason: When you buy a twenty-five-year shingle, it is a guesstimate that it will last twenty-five years. It does not just like I bought it on May first and in twenty-five years on May first I have to take it off. No, I have seen roofs that have gone thirty years, forty years.

JB: Right.

Jason: And a lot of that depends on the condition and the quality, of course, and also how they are installed. Believe it or not, that does make a difference. We have some roofing companies, I do not know. I guess they think they are going to retire by putting one less nail in. Anyway, they do. So they skip on some of the materials. It is interesting. Those houses out there that people would buy, but they have the fear of that. And or they have got well, let's face it. The wallpaper. The brass. All the lovely things that we talk about. The overgrown bushes. Right?

JB: Right.

Jason: The holly trees that ate the house. They have got all these other cosmetic things. The carpet is worn out. The hardwood floors need polished. The appliances are old. The seller does not have the money to invest to update them. And guess what? The buyer does not either. So it becomes a difficult sell in that both parties lack the funds to make the change. Now there are some loans out there that will allow you to borrow money for improvements. Okay. Here is the thing. Most of them require a pretty healthy credit score. We have some folks that are not quite where they need to be on the credit score standpoint, and so it makes it difficult for them to qualify for these. The other thing is typically they require a little larger down payment. So you are not going to get your zero down home loan on this type of thing.  The other one is, there is one that is pretty affordable. It is called an FHA 203K Loan. It is a good product, and it does allow you to do this. There is one stipulation with this one, and actually probably all of them, but this one for sure. You cannot do any of the work yourself. So you cannot do any sweat equity.

JB: Right.

Jason: They will allow you to borrow the money for the fix. They just want to make sure the fixer is well-qualified to do the repair. So what they do not want is you to do the plumbing, and you, not being a plumber, and end up flooding the house, which is, it is interesting. The bank, at this point in this type of loan, they always look at it as what are we going to do if we get this one back. So they are looking at that asset actually a little more stringent even than they normally do. Because they are looking at it as hey, if this does not work out and we end up with this house back, how is this going to look to us, right?

JB: Right. Exactly.

Jason: They scrutinize that. So they make sure that you, the homebuyer, are very well-qualified. But yes, there are simple, there are certainly some loans out there that can work for that. We have some great lender partners. You can go to Jason Bramblett dot com. Click on the lender link, but it is Caliber Home Loans with Dave Held over there. And Glen with Lending Bay. Also does a great job in helping us out. We have got some guys that have those loans that can help you there. But real estate right now, it is about if you want to move, it is a great time to do it. Remember your home is worth more today than it has been in the past ten years. So if you would like to find out what it is worth, give us a call at the office or go to Jason Bramblett dot com. Everybody have a safe weekend out there traveling around, driving around.  Look out for people. Get off the phone. Do not text and drive. And we will see you next week. Right here. Triad Real Estate 911.

 

JB: All right. Have a great weekend everyone.

Posted in Radio Show