Jason Bramblett Real Estate Talk Show. 

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

 

 

March 14, 2020

Low Inventory, What to do?

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning and welcome to the Jason Bramblett Real Estate Show. Hope everybody is doing awesome. Awesome week. March Madness. It is here. It is ready. It is rolling. It is everywhere. And of course, in Carolina, it is always basketball. Everything is basketball, right? That is barbecue and basketball, man. Although I did get educated last night. It was my daughter's birthday and we went to a restaurant that she loves. And I learned that sweet potatoes were like, that is the North Carolina vegetable of the state or something.

Keith: I did not know that.

Jason: Yeah, clueless, had no idea either. I knew barbecue, obviously. But yeah, sweet potato. She learned that in school and it was something that she learned and I had no idea so we had in celebration, we had sweet potato. So you learned something every day, right? 

Keith:  I am in trouble then. I do not care for sweet potatoes.

Jason: Yeah. Oh man.

Keith: I like basketball.

Jason: There you go.

Keith: Not as much sweet potatoes.

Jason: It is March madness for basketball and real estate. It is. So when we hear March Madness, basketball, we always know hey, the real estate season is amongst this. It has started. It is rocking and rolling and things are, man, everything is in bloom. So there is lots of new stuff happening. New homes hitting the market every day, which for some of you is like manna from heaven, because there has not been that many to see. Right? And we are in this all-time low inventory crunch and crisis. So we are digging into that. But the other nice thing about March is a lot of times we find people that are looking to make a change. Whether you are in real estate, and maybe you are not enjoying the March Madness like you think you should, and there are not the sales that you believe should be there for you, we would love to talk with you. We are growing, adding new people. We have new offices that we are moving into sometime in the next couple of weeks, I am told, which will be awesome. Putting the final touches on that. We needed more room. We need room to grow and keep adding to our company and our team. Maybe you are not even in real estate, but you have got some sales talent. You enjoy communicating with people, helping people through all kinds of situations good, bad and indifferent. Sometimes in real estate, it would be great if they were all wonderful situations, but we do unfortunately get to deal with the other side of human behavior as well, which can make it for a very, very interesting excuse me career. So there are always really cool things happen in real estate. Hey, it is a fun and exciting business. It is never the same every single day. So I thought, Keith, we would do this. When we had left off last week, we were digging into some of our different marketing and sales plans. So I thought we would just pick up from last week's show. So all the you guys that are listening, but if you did not catch last week's show, you can go to the website, our podcast is up there, you can listen to that to get caught up. But we are just going to break down some of our marketing options.

Keith: Well, you had said this two or three times, I think this situation came up quite a bit last week. You made the comment that if your realtor guarantees that they can sell your home for a certain amount of money that unless they are buying the home, that is not a guarantee. That no one can guarantee you a price if they are not willing to put the check down. Well, if I am not mistaken, it appears that you might be willing to put the check down, you have got the 72-hour deal that I know we touched on a little bit last week. Thinking maybe you could go a little deeper into that.

Jason: Yeah, absolutely. We do have multiple, multiple programs. You guys know we have been doing it for 16 years. We have our guaranteed sales program in which if we do not sell the home, in an agreed upon amount of time, I actually will purchase the home, and I have purchased, I do not have the last count now, but probably very close to approaching 100 houses that we did not sell on time. We did buy them because it was our guarantee. Very, very similar to a corporate relocation program if any of you guys have ever been involved in that. Now our 72-hour offer program is different. Same process, but different step in that we have many, many institutional buyers that we are dealing with. So venture capital companies, private equity companies. How this works is once you sign an agreement with us to sell your home, we are going to look at basically two different options. What we would consider the retail. We will sell the home to the marketplace. They will determine the price. That is the way it works. The market always determines the price and not the real estate agent. Okay? Unless the real estate agent is buying the house; otherwise, it is simply a made-up number.

Keith: Thus the 72-hour program.

Jason: Yes. Exactly. It is for a real estate agent come up with the price is the same made-up number that the owner comes up when they give you a price.

Keith: Right.

Jason: Yeah, this is the price I want. Well, that is great. But it does not mean anything until we match that up with what, a buyer that is willing to pay that. So the 72-hour offer is essentially that is exactly what we are doing. So we have an agreement, you have given us permission to sell your home. We are going to do that on the open market. And in the meantime, what we will do is we will take it to our investment group. Now the difference is a lot of these venture capital companies that are out here now, you will see them that they will say, hey, we will make an offer on your house, we will buy your house, whatever, and they will and that is a true statement, but they are making an offer.  The difference in what we have found that is working better for our clients is we are actually going to our contacts at these venture capital companies. We are actually laying out a process and a system and a plan for them with your house with the price that you want for the house. One thing it does is it turns the process much quicker. So essentially, we are going to them and saying, hey, this is the product, this is all the great things and here are the issues if there are any, whatever. We were very transparent, because we do not want that number to change. So they need to know exactly what they are buying good, bad, indifferent. And this way, we are taking your number to them.  If that number is a no to them, then okay, that option is off the table, and then we proceed forward at what, we are not stopping anything anyway. We may have at the same exact time offers from the general public through our traditional sales process, and venture capital offers as well for you to take a look at. We want to do that as quickly as we possibly can. We are turning these things around in 72 hours from the time that we get them submitted to those to those companies. The biggest difference is though is in the process. We are taking it to them as a package as just like, these are Wall Street companies. This is what they are used to, right? When they look at buying a company, there is a portfolio that they look at. It has all the company's assets, liabilities, the P&L statements, who are the key players. Right? That is how Wall Street operates. So we have created a package in which is basically the exact same thing. Here is the portfolio of this house, here are the sellers here, this is what they want as far as terms and price. This is the condition of the offer. And these are the terms as far as the timeframe. Right? So we are speaking their language to them, which makes that process go tremendously quicker. Then normally the process outside of that is they make an offer on your home. It is just a made-up number because they have never seen your house. They send a representative to your house to do an inspection and check it out. And then based on what that report states, that number changes, right? Because the condition is not what they thought. It is like telling a story. But yet, it is hard to relate to Disney World, and explaining it and all of its all verbally unless you have been there.

Keith: You got to see.

Jason: Yeah, you have got to see it. It is the same thing with the house. We can talk about the price and the numbers and all these things all we want all day long. And that is what these venture capital companies will do. But yet when they see it, 90 times out of 100 we see that number change, and we get a lot of those phone calls. So folks have started down the road with well we wanted to try this but we got a number we really liked, and then they sent somebody out to the house, and then now they came back and they want it for $30,000 less. Well, how much time did we waste? Months? Right and it is back and forth and back and forth when if the right presentation and package had been delivered to them from the very beginning with every single thing is right wrong about the house, that number would have come much quicker, you would have known it was $30,000 or less from the beginning. And you would have known it was not even an option that you were willing to consider. And you could have just moved on in three days as opposed to three months or two months or however long it took. Right?

Keith: But you said, now correct me if I am wrong, you said that the processes they happen together so you can be going down this 72-hour deal and trying to work with the capitalists and everything, but also still showing the home and everything, so you have got kind of two different avenues to get your home sold faster.

Jason: Absolutely. It is not one or the other.

Keith: That is great.

Jason: It is a both at the same time process. Right? Sometimes those numbers just make sense for the owner like, yeah, if this is exactly what they are going to do, then let's move forward. This makes sense. We do not have to the show the house anymore. Now we can move. We know the date we are going to move. We have everything that we need to know. Now I will tell you that generally the free market is going to pay more. These companies are not bailout companies.

Keith: Righ.

Jason: And they are not a nonprofit. Okay. I have so many people call that went the other way, and they got their offer and they were frustrated, like, well, they did not want to give me anything for my house. It is not a bailout. Just because that is what you owe does not mean that is what they are going to pay. Right? It would be great if it was that way. But that is not reality, right?  You know this from owning cars. 90% of the public when they trade in a car, they are upside down. Now, the difference in cars versus real estate is a car will let you roll your negative equity to your next purchase. Real estate they will not allow you to do that. But most of you guys realize this from how you have done transitions with cars. You have always taken less than what is owed unless you paid cash for your car, typically. But most people do roll negative equity over because it depreciates so much faster than you are paying on it. Right? Especially when you stretch out the term for as long as some of these companies. Some of these cars are going to be end up financed as long as houses it looks.

Keith:  It is getting there.

Jason: It is kind of crazy. So there is a huge difference in communication. It is just like if you are speaking a foreign language, you need to know the language, right, to be able to communicate. If you go to a Spanish-speaking country, and you do not speak Spanish, well, you can survive. But it is not a great experience when you cannot communicate, right?

Keith: It would be tough. 

Jason: It is the same thing that we are seeing with these venture capital companies. The owner and the company are not on the same page. They are not communicating. Why? It is a foreign language. What we have done is put it together and figure that out.  Now we have got this portfolio. We know how to speak with the owners and the clients. We have been doing that for 22 years. And now we have learned how to communicate properly with the venture capitals and the private equity companies so that they know exactly what it is they are buying up front. There is not this feel of bait and switch. It is not a bait and switch. It is just they did not know anything about your house. And then they found out stuff about your house and all of a sudden it was not frickin’ Disneyland, right?

Keith: Yeah, it is just numbers to them.

Jason: It is just math.

Keith: To you, it is emotion. To them, it is just numbers.

Jason: 100%. It is 100% emotion driven, which part of the part of the issue. Right? Look, at the end of the day, think about this. It does not take any skill at all to sell your home for the lowest price. Right? Owners have really been doing a really good job of that.

Keith:  I can do that.

Jason: Yeah, all the time I have been in real estate, I know you for sale by owner folks do not like to hear this. But it is true. It is been proven for decades and for many, many industries, way outside of real estate that run all these tables and these graphs. And for four decades, those numbers have not changed. Period. Owners sell their home cheaper than hiring real estate agents all the time. Every single day it happens. Actually, an average of 16% below market is actually what that ends up being.  Why do you think Wall Street is in this space? Duh. They are not stupid.

Keith: Yeah, they are not in it to lose money.

Jason: They are looking these graphs going, huh? We could actually save 16% if we just bought these things from these owners that do not know what they are doing. Yeah, we could probably make those numbers work. Right.

Keith: Yeah.

Jason: This is not rocket science. It is math as Keith said. That is exactly what they have done now. Now they have hit the street, the internet obviously has allowed them to put the right information in front of people quicker. Before it made no sense because it would have been national TV ads and radio and billboards and all these things that, yeah, okay. You could do, but it sucks up a lot of that 16% market share, where the internet is significantly cheaper. You can reach a targeted specific audience faster. And also word of mouth travels much quicker. Billboard to billboard, not so much word of mouth; Facebook, tons of word of mouth.

Keith: Yeah, pretty quick.

Jason: Yeah, pretty quick. Like let me just go in any chat room and drop a bomb in there that you feel pretty confident it is going to be a disagreement with most of the people and see what kind of reaction you are going to get, right?

Keith: Wake up in the morning to a slew.

Jason: Word travels very, very, very quick on that. So they know that they can get the homes cheaper from the owner. And look, these people know. Some of these people are the smartest people in the country. These are not dummies running these companies. Some of these companies’ valuations are in the billions, okay? They are not in business to lose, right? That is the game that they are in.  You have to know that up front. That model works. But what I found what works better for our clients is taking the right type of portfolio, the right type of information to them. And we have created a system that leverages that. Now we are speaking the language to the private equity and venture capital of which they are used to hearing. So we are speaking their love language to them which is money and numbers and transparency, right? So that they know what they are getting into, which makes a huge, huge, huge difference. So it really comes back to its mindset, right? And you have got to have the right mindset to deal with each group of people that you are dealing with and walk them through the good, the bad, and the pitfalls of all that stuff. So, lots of things and then of course, we are going to talk a little bit about the illusion of what you are actually saving as well. So we are going to do is we are going to go pay some bills because we do radio, TV and advertising on billboards, so we are going to go pay some bills. We will be back in just a minute. You are listening to the Jason Bramblett Real Estate Show.

We are back. You are listening to the Jason Bramblett Real Estate Show. So before the break, we were digging into some of the systems and processes that we have. We touched on our 72-hour program. I mentioned our guaranteed sales program. We have been running that for 16 years now. It is a process in which I actually do make an offer on your home, I do guarantee the sales price. And if we do not sell it in a timeframe in which we agree, then I do purchase the home and we have purchased, I do not know, getting very close to 100 houses under that system. It is not a system for everybody. But it is a system that when you are probably moving to California, and you are not coming back, and you definitely want the house sold, it is a phenomenal system for folks like that, or you just do not want to be stuck in two mortgages. I did corporate relocation for 10 years. It is modeled very much after that. It is a great process. So if you never want to get stuck in a two mortgage situation, or maybe you already are stuck in a two mortgage situation, our guaranteed sales process and system could be a perfect fit for you.

Keith: With more large companies and as we talked, we are not talking about little tiny companies. We are talking about some of the biggest companies in the world, billions of dollars getting into buying these homes and making a profit here. If you are for sale by owner and you are trying to, what makes you think that you are going to get one over on literally the biggest, most profitable company in the world, that would seem unlikely.

Jason: Yeah, right. Yeah, for sure. Some of it is the old magic trick, right? Smoke and Mirrors, baby. Yeah. There is a reason why it is not just Las Vegas, lights and stuff like that. Right?

Keith: I was going to say I have a much better chance beating the house than I do probably beating a billion-dollar corporation.

Jason: I do not disagree. I do not disagree. Magic is said to work because you get the human mind to focus on something outside of what, the trick, the illusion that you are actually doing. Right? And that is really exactly what these folks have done. So the owner is so focused on not paying real estate commission that the trick is right in front of them and they do not even see it. Right? And because they get them focused on one thing and one thing only, and then they are missing all the other stuff.  This is why statistically we see people that sell their homes by owner sell far, far cheaper than they ever would in the marketplace. And they also use this other great motivator called ego. Yeah, that one there.

Keith: It happened.

Jason: It does. Well, it goes back to the emotion, right, because you can thump your chest and say, man, I sold my house myself, and I did not pay that stinking real estate agent. I am a winner.

Keith: And I did it in six days. Yeah, I got 30 grand less four.

Jason: Yes, exactly. Yeah. Sometimes it definitely does work out that way. And I am sure many of you can give me all your great success stories. And how you became a billionaire by saving your real estate commission. I know that is how Warren Buffett got started with Berkshire Hathaway. He said gosh, if I could just sell my own house myself and save 14,000 bucks, surely I will become one of the world's richest men. Right? That was his seed money. I am sure.

Keith: I read that somewhere.

Jason: Yeah, I am sure it was it his first book, right? But that is what they do. They convince the owner. They use that ego. They use that play of saving commission and like they are winning this battle. But here is the thing. It is the mind game, right, and they are very good at playing that. A lot of their advertisements are geared that way, a lot of their paperwork is geared that way, but we have to peel that onion back and look at the core and look at that. But like Vegas, right? Think about it. I knowvsome of you guys will argue with me until Jesus comes back about you go to Vegas, and you always win. I know. It is just like everybody in prison did not do it. Right? Yeah, right. And but here is the deal. I am assuming you go there and win all the time, but that is the reason your house is the same size as their Hotel Casino. Right? Yeah. When you look at the price of real estate on the Vegas strip. I do not know the exact number. A long time ago, I heard a statistic that the dirt was selling for $50,000 a square foot.

Keith: It is not cheap.

Jason: And you think about, okay, those hotels are on acres.

Keith: Oh, yeah.

Jason: There are a lot of square feet and an acre like 43,000 plus. Right?

Keith: And the Bellagio is not just dirt.

Jason: That is exactly right. Yes.

Keith: There is something on that dirt.

Jason: Exactly. So, look, if everybody was going to Vegas and winning, you would drive up the Vegas and it would be a tent on the side of the road with a card table playing Three Card Monte right? That is not real attractive and that does not get people there. But think about it. What do they do? It is noises and lights.

Keith: The promise of something.

 

Jason: The promise, the hope, and the ego of beating and winning. Right? And that is the same psychological thing that these really, really smart companies are doing with venture capital and private equity. They are using that ego to their advantage, and they are winning more often than they are losing. They are winning at your expense. So let's stop that. And let's not do that. And we have a system in which we can get your portfolio put in front of the right people at these companies so that they can make a quick decision. Turn it around fast within 72 hours, assuming that you can give us all the information that we need, and we can get it quickly to them. And here is the thing. It is not the only option. It is one option that we have, and we run them simultaneously. Our goal is to get you the most money in the shortest amount of time. So to get more information about all of our systems, all of our process, go to Jason Bramblett dot com. Or you can call the office 553-0796. Until then, let March be madness. And we will see you next week. Right? You are on the Jason Bramblett Real Estate Show.

 

Posted in Radio Show
March 7, 2020

Should I buy a rental?

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning. You are listening to the Jason Bramblett Real Estate Show. Hope everybody is having a fantastic weekend and good start to March. It is here March. Well, madness as they say, right?

 

Keith: I know basketball is about to kick off.

 

Jason: Absolutely.

 

Keith: Probably not a great environment for North Carolina fans right now. But they will be back.

 

Jason: They will be back.

 

Keith:  It happens.

 

Jason:  What do we always say? This is a rebuilding time. Right?

 

Keith:  It happens.

 

Jason: And hey, look how many between Duke and Carolina, look how many kids get sucked out of that program every year to the NBA. It is huge. I am always amazed with both coaches. Mike and Roy because they really the home will start over every year. You have got the kids that just fly through their programs compared to other schools where you actually get them for all four or five years, depending on how long they are in college. But those two coaches, just really the talent that they attract is awesome. But it is also very temporary.

 

Keith: Sure.

 

Jason: And then sometimes, what it has been like, I do not know what, seven, eight years since Carolina has had I use a team. It just happens, right?

 

Keith: It happens. It is a great program, and they will be back.

 

Jason: There is no question about it, no question about it. They are definitely not going anywhere, and then they will be back on top. Well, I think if they win the ACC tournament, they at least get a seat, right?

 

Keith:  Yeah. Look, they have had some injuries and they are getting healthy again, but I think that is probably, that would be like true miracle.

 

Jason: Yeah. Right. And then for another analogy in the world of golf, it would be like, hey, they had a swing change this year.

 

Keith: Yeah.

 

Jason: That is all. That is all.

 

Keith:  New irons.

 

Jason: Lots of changes like stock market and interest rates. It is really like March Madness, right? Everything is going up and down and sideways and everything like that. But if you want some stability, I will tell you one thing that is pretty stable, and I have noticed it in our investments and other investors that we work in or work with, rental homes. The great thing about rental homes is yeah, the value of the house may bounce all around with the market, but the rent stays the same. Right? You lock those rent agreements in for whatever the term may be. So maybe it is a year or two, and it is consistently $1300, $1400, $1500 a month, and no matter what is going on around you, that rent stays the same. It is very consistent. It is a phenomenal, I think, investment opportunity for many, many people in the Triad to get diversified. So maybe you keep some of your money in the good old-fashioned stock market, but rental homes and investment property can be an excellent stabilizer.

 

Keith: Well, you and I have talked. I moved here to the area about seven years ago and the price that I paid to rent my very first home, when I eventually had to go rent another home, four years later, it was unbelievable how much it had gone up.

 

Jason: Yeah, yeah.

 

Keith: I now own, but the difference was literally $400 a month for the same home four years later.

 

Jason: Right Yeah, rent, no question has just dramatically increased in the Triad. So for you folks that have thought about maybe diversifying your portfolio or just starting your portfolio with a rental property, I think it is one of the greatest things you can do to hedge your protection from an investment standpoint, because people do not have to have the stock market, but they have to live somewhere. Yeah, they have to live somewhere. At the end of the day, the stock market, we know can ebb and flow and crash and burn and all that, and people still have somewhere they need to live. And yes, jobs could change. All that stuff. But the end of the day, even with no job, people still have a desire to have shelter over them. A goal of most Americans is not to make it underneath the I-40 overpass. Right?

 

Keith: True story.

 

Jason: They want to be somewhere with shelter. So rental property can be a great, great investment long term. So last week, we were talking about a couple different case studies. Some different things that we have been working through observations that I have seen in real estate over the last 20 years, if you will.  We are going to pick up the show and dig in a little bit deeper to some of those this week. But if you have real estate specific questions that we do not ever get to on the show, or it is just a really, really great question, we do share your questions on here all the time and do my best to answer those. You can go to Jason Bramblett dot com, click on that email icon, send us one over or call the office at 553-0796.

 

Keith: Well, we had a story that was really unfortunate last week. And I wanted to dig a little deeper into that. We had a listener, who if I remember correctly, she lost about $100,000 on her house, was using kind of a friend to sort of do the buy and the sale, and there was a lot of things, and it just went really sideways and was impacting her. What should she have done it? Where should she have kind of intervened?

 

Jason: It is unfortunate. That is a big number. We typically do not see $100,000. But it is a common story that we get. We do. This was not purposely done by any stretch of the imagination, but it is something that has kind of migrated over the last 20 years. We really are the real estate company people call when like nothing else seems to work. My question to you listeners is why do not you just call us first?

 

Keith:  It is easier that way, isn’t it?

 

Jason: It is easier that way. But like all things in life, sometimes you have to learn the hard way. Well, the hard way can be the expensive way. And my hope is that we can save you thousands of dollars and maybe we can’t save you $100,000 as our case study here. This lady is really in a bad situation. So what she could have done differently, and this is one thing that I have seen over and over and over again, and it is not just here in the Triad. It is a nationwide thing, where the owner of the house has chosen the real estate agent, and it is also the same agent in which they are going to use to purchase a next home. And that just does not set up a good plan, typically,. Anytime you have got a salesperson involved that is being rewarded for a next action, and the next action typically is bigger, and there is a bigger carrot dangled in front of them, there is this question of bias versus unbiased, right? Always. Why even put yourself in that position? It is not a necessary thing. What we do as a company is we separate the two. At no time within my company will you ever work with the same person on a deal. And the reason being is because I have seen over and over and over again, where bad decisions have been made, by using this same person to sell and buy with, and it just, there is a level of question in there that just does not even need to be there. Use an independent company or person to sell your home and use another person within that company, within our system, you would use another agent within our company to purchase the home. It keeps everything very clear. No two agents are compensated on the same home, which really separates those blended lines very, very clearly. Everyone has got their specific tasks. The other thing, too, is they really are two different skill sets and two different talents. And I find that very, very, very few people, I would say it is probably less than 1%, have all the talents to work both sides of the fence.  It is a very different skill set to work on selling a home as a listing agent than it is working with a buyer as a buyer's agent. Two completely different skill sets. Two different ways in which you handle the processes and the procedures. Many, many more steps to the listing side than there is the buyer side of the business. It is not an apples and apples. It is completely apples and oranges.  Typically, you have one great experience on one side and so-so on the other.

 

Keith: Well, it makes perfect sense. Even if you get somebody, let's say who is completely on the up and up and does their very best job to do both transactions. Like you said, they are likely better at one side of the equation and the other so why not get somebody who is an expert at doing just this so you get the most for your home and an expert at doing just this so you get the best possible deal. And there is never a question that way.

 

Jason: Yeah, 100%.

 

Keith:  Makes sense.

 

Jason: It is just like all fields. Take dentistry. You have your dentist and then you have an orthodontist. Right?

 

Keith: Right.

 

Jason: And it is all about the teeth. So it is all about the house. But the processes in which the goals of each one of them what they are attempting to accomplish are different, different skill sets, different specialties, but still the same product. In their case its teeth; our case it is houses, but it is still two different specialists, if you will, to get two different outcomes, right, and each one specific to itself. It is not popular and it is becoming more popular, I will say. I have seen it more. More companies changing to this model and switching to this than I have in the last three or four or five years than I have in the last 20, which is excellent because it is something that I believe it serves the customer and the client the best for sure. No question. Is it perfect all the time? Well, no, nothing is perfect all the time because there are these things called people involved, right? And then when we have people involved, there are things that can happen. It is not just the agents. Think about all the people involved. You got attorneys and home inspectors and surveyors and mortgage people, and there are just lots and lots of moving parts to this thing we call real estate. But separating out those two things, I believe, in this particular scenario with this person would have come out different. So the this the setup was, hey, I can financially afford to buy this other home before I sell this house. How much can you get me for this house? Number was given, which was the wrong number. And yet, they have already purchased the other home with the anticipation of getting this pre-determined price for the house, which was wrong by $100,000 so far. That is just where she is right now. $100,000 less than what this real estate company had told her. Full disclosure. It was not us. So we are going to do our best to overcome and fix what we can in that. She fell into the trap of really kind of hearing what she wanted to hear and not a lot of data and proof behind it. More of I went on faith because this person is my friend. This person obviously wants to sell the home for the most money, and all those things are true. But if it is the wrong data, it is the wrong data. Or maybe they did not even look at the data. They just went with hey, I feel like we could get this for the house. Well, here is the thing with real estate. If the real estate agent that is going to sell your home tells you that they can get, makeup on number $250,000 for your home, the only way in which that number is accurate is if they are the ones buying your house. That is it because anybody else other than them that is going to be buying your home may have a different number in mind. And the only way that they can guarantee that they are going to get an X price for your home is that they are the actual ones buying the property, which is what we do with our guaranteed sales program. Right? We have a guaranteed sales program in which at the end of 120 days if your home has not sold, I will purchase it, and I purchase it at a price that we agreed to upfront and it is the price period. And the reason why I know your house can sell for that number is because I am the one buying the property.

 

Keith:  And there you go.

 

Jason:  It gets very, very clear. But if the real estate agent that you are thinking about hiring says they can guarantee to get you a certain amount of money for your home, and they are not the one purchasing, it is not 100%. It is not guaranteed for sure. And things change. Right? Yeah, they may have this amazing pitch that they are giving you. But unless they are willing to sign their name to it, not so much.

 

Keith: This week is a great example. Just look at what all the different things that have transpired in the last two weeks. I am not saying that anybody's home's value has changed, but it could just events that happened in two weeks could change what you can get today, as opposed to 20 days from now. It could be a totally different number just based on things you cannot control.

 

Jason: Sure. Interest rates are a perfect example. Hey, two weeks ago, you could have got an interest rate way below 4%. Today, not so much, right? Was there anything in the world that the mortgage person could do about that? No, unless they were the one loaning you the money, right? Wells Fargo. The person you are dealing with at Wells Fargo, Bank of America, Chase, I will pick on all of them. Unless you did what they called locked your rate, it was what they would call floating, meaning no guarantee until what? We are committed to each other. And until there is a commitment, that rate can go anywhere, right? As a matter of fact, it did. It bounced all over the place. It is still bouncing all over the place. And until there is a commitment, a buyer for your home, or the agent is the buyer for the home, there cannot be a guarantee of anything. Wells Fargo, I keep saying Wells Fargo, but any bank is not going to commit to the interest rate until you commit to them and the house. Right?

 

Keith: Makes sense. That is just Mortgage 101 right? Outside of that anything and everything is open game, and the reason why they have these procedures of locking interest rates and all that stuff is because it is a daily changing thing. And they also want to lock in rates for their protection. Or you have these things called adjustable rates, which are always grandiose and fun, but they even lock. Even an adjustable rate starts at a base blind, if you will, and then it adjusts based off whatever indexes are going with. But I have seen these things happen over the years. Before I started this company I was with another real estate franchise for many, many years, for a decade. And I just I saw this several times, not only at that particular company, but just in the industry and I still see it today, and it is something that is easily preventable. Right? There are so many things in life that you really cannot control. This is a pretty easy one. This is not a hard decision. One of the benefits of our company is that we do separate out these two to make it clear and decisive. And that way you have one expert that is an expert that you are dealing with in selling your home and a different person as an expert in buying. It makes a huge difference. The experience is different, I can assure you, and it is a trend in which we also do see happening across the United States. People are starting to realize, hey, there is something different here. Yeah, there is. It is a total transformation.

 

Keith:  Better experience.

 

Jason: Yeah, experience. So we will do this. We will take a quick timeout. We will go pay some bills. We will be back in just a moment. You are listening to the Jason Bramblett Real Estate Show.

 

Welcome back to the Jason Bramblett Real Estate Show. Before the break we were digging into some differences in real estate and how things can be approached and different sales styles and different philosophies. We are going to continue with that, but if you have questions at any time, always feel free to give us a call. Our office number is 553-0796 or go to Jason Bramblett dot com. There is a place you can shoot us an email. You could check the value of your home. You can look at houses for sale anywhere in the Triad. Lots of information there for you, and of course, the link to all the past radio shows. You can hit our blog there and gather any information there as well.

 

Keith: So setting up that independent buyer-seller relationship. That is a huge difference with you guys. And that might be reason enough to go with you. But if you are looking to sell your home and using your company, what are some of the other benefits aside from that?

 

Jason: Yeah, so we talk about this like every single day I think at the office, and it is all about proactive versus being reactive. We have always taken a tremendous proactive position in all things real estate. So most sales people, and this is not just real estate, but most salespeople are what we would call order takers. Like they are okay, as long as you call me and tell me what you want, I will write it down, and we will do a transaction. Right? Well, folks, that is not sales; that is order taking. Yeah.  Sales is different. Sales is proactive. That is going out where nothing has happened, happening or happened and making something move. And it is a more aggressive way to sell, but it is selling. Everything else is just reactionary. Right?  You have got to get out there and make something happen. You got to push this thing along. All right. Now one of the things that we do is not only are we proactive in our position on selling, but we are proactive in our position on what we are selling. So we do a tremendous amount of due diligence on the product that we are selling so that we have full knowledge of every single thing that is completely right with your home, and everything that is completely wrong with your home. And you all have both. Right? We all do. We have things. Every single house. The reason that we do this is it puts us in a position of really control and being proactive in the fact that we do not have to react to anything. There are no surprises, right? Typically, when we react from a surprise, it also has another word that follows along with it. It is called expensive, right? And the reason it is expensive is because typically when we make decisions with lack of knowledge or little research, we pay more, right? There is a whole industry born out of this idea. It is called Consumer Reports, right? It is a place in which digit heads can go do research and figure out what is the best bang for their buck. Do some research about what the opinions of whatever the life expectancy of this product is what is going to be, whatever. You know the drill.

 

Keith: I have gone.

 

Jason: Yeah, absolutely. Now we do it a little bit quicker. So that was a little bit. So for a certain percentage of people, that was great because they love digits and detail and all that. And then there was another group of people that they want the information, but they do not want it that way. So we created this amazing reporting system called a star. Right? Reviews. And now we go to Amazon and we see oh, 4.9 stars, you are good; 1.9 you are out, right? Either you have no reviews or you are horrific. Right?

Keith: True story.

 

Jason: The number of reviews also makes a difference. Right? Now, there are some questions with some websites as to whether those are real or not. And are they just made in some sweatshop, kiosk somewhere overseas where they are pumping in a bunch of fake data, which, unfortunately, it has happened. But it is a good litmus test, if you will, for the consumer. And that is exactly what we do with your home. We break it down into okay, what is good, what is bad, what should we fix if anything. You do not have to fix everything or anything to sell your home with our company. We sell properties as is all the time, but we do want to know what we are selling. Because I believe if we present a home to Keith and we say, hey, here is every single thing that is right with this house and every single thing that is wrong, and the seller is not in a position to be able to fix anything, whether by choice or by money, whatever it is. Keith can look at the list. He is an intelligent enough person, and he can say I am fine with this and for this type of things that are wrong and right with this house, I am willing to pay this number. And we do that every single day.  Could Keith get more? Or could the owner get more from Keith and money by fixing some things? Probably, because one of the things that Keith is also factoring in is, hey, just because this guy will not fix this stuff, does not mean it does not need to be fixed.

 

Keith: Right.

 

Jason: And if I am the one who is going to fix it, then that is called my money.  Typically, we see what a little bartering back and forth. We come to an agreement, but the thing about it is, is we know what is going on up front. So there are no surprises. I cannot tell you how many homes I have been in where the owners told me hey, there is nothing wrong with our home. Only to find out, oh my gosh, it was not perfect, which none of them are, folks.  Coming from a place of being proactive and knowing things up front is very, very powerful. So to get more information about our company, about our sales process, go to Jason Bramblett do com. We will be back here next week. And remember, we have commission program starting at 4.98%. We will see you next week on the Jason Bramblett Real Estate Show.

 

Posted in Radio Show
Feb. 22, 2020

The Renting Myth

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning. Welcome to the Jason Bramblett Real Estate Show. Hope everybody is having a fantastic start to your weekend. Hey, here it is another week in the books, and well, you have either pushed through the great American hope of a what a great New year's resolution off to a great start or you are on round, I do not know, four by now, right?

 

Keith:  I do not even know what resolution was anymore.

 

Jason: Yeah. It is ancient history at this point.

 

Keith: Inconsequential. I do not know.

 

Jason: That is for sure. So, hey, we are going to dig in today to talk about a topic that comes up about every week at our office. We are always talking to new folks, new people that are considering buying a house and so thought why don’t we dig in and talk about the rent versus buy. Maybe you own a house and you are still not sure if but you made the right decision. So we are going to go through and talk about the reasons why you should own a house. Should you actually take the plunge? Should you dive in? Should you get into the real estate market? Is it something that makes sense to you or maybe you should just rent and give up on the, well, give up on owning a house? We are going to dig into is the right answer. You are really determined the answer to that question if it is right for you or not. We are just going to run through some of the probably more myths than there are pros and cons, but we are going to talk about those of owning the home. And if you are on the fence, you definitely want to stay tuned because this may push you in that direction, one way or the other. Take the plunge or well stay where you are at.

 

Keith: Well, clearly, I purchased a home roughly about six months ago. And obviously, I am a genius

 

Jason: For sure.

 

Keith: Clearly, I am a genius in making that decision. Correct?

 

Jason: There is no question. You are a genius. Let's let the drama just sit in for that, just for a minute. Just let it sit there.

 

Keith:  Why do I feel like I am in trouble?

 

Jason: And let him ponder that to see if he made a good decision or not. Here is the cool thing about real estate. And there are lots of reasons that we do everything that we do in life, right? Sometimes we do it because, well, just because I can. Right? I am sure we have all made this. Why did you do that? Because I can.

 

Keith: It is a great reason, isn't it?

 

Jason: It is a great reason.

 

Keith: Because I can.

 

Jason: Yeah. Why in the world would you do that? Just because I can. We probably have said that to our spouse, our parents, ourselves, and sometimes it only needs to make sense to the one person. You, right.

 

Keith:  All that matters.

 

Jason: It is the case in a lot of different ways that we look at life. Right. So, buying a house, at the end of the day, we got to get an idea wrapped around what is the purpose. So, what one of the first things that I look at is owning a house is this. It is a really terrible savings account. It is. It is not entirely bad. It is not a terrible thing that it is a savings account, but it is really what it is. And the cool thing about that for some people, it does at least force you into saving money whether you want to or not, actually. So there are some people that just if they got $1 in a hand, it is like they are in total panic mode to get rid of it. It is like they cannot hang on the money for nothing. So at least in owning a house, you are going to be forced into a winning situation of saving money. How is that even possible? Because every single month, you are adding money to the principle that is owed. Therefore, what, reducing, it forces you to reduce the balance if the house is continuing to be consistently, well, let's just say it stays where exact number you paid for it. You are owning less, therefore, you are building, what, equity. You are forcing that savings. For the most part, we assume that it will not ever go to zero, right?

 

Keith: You would hope.

 

Jason: Look, if your house goes to zero, money is not your problem. I am going to really just be confident in that statement. If your home goes to zero, or if everybody's home goes to zero. money is not going to be an issue that we have to worry about.

 

Keith: Something awful has happened.

 

Jason: Something very bad has happened, and so it is not going to be a big deal.  If for some folks or some of our listeners, this is all the money they are going to save in their entire life. This is it. They do not participate in any kind of retirement plan. They do not have a SEP or an IRA, they do not have an employee or an employer contribution. The only savings that they have is their actual house and so that is not bad. It is not the best retirement plan. But it is something that something that we see. In 22 years, I have sold many, many, many hundreds of homes where when we go to sell them, it is really every dollar that they have is that. That is their entire life savings is a paid-for home. It is just choices. People make different choices and the choice for them was they paid for their house and they do not have any other money. But at least they have that, and had been renting their whole life, they would not have anything. Right? They would have just spent every dollar, so it is not terrible in that regard. And by the way, hey, if you want to improve your savings rate, if you convert that mortgage from a 30 year to a 15, you actually increase the amount of money that you are saving quicker, actually is not quite by half but you do start to contribute more even more to principle. And so you can save quicker. So if you are 50 and you realize that, hey, the hourglass has flipped and there is less sand almost on side than there was the other, right?

Keith: That is right.

 

Jason: How can you speed up the process? Well, if you can do it, flip it over to a 15-year note, and that will expedite your savings. The main reason to buy home simply is this, just the joy of what it creates, and the memories, the place to raise your family, to build memories with your grandkids, with your spouse, with your dog. Everybody needs a dog at a house. It is just what you should have. Right? Or cat. Do not want to leave the cat people out. But that is the reason. It is to have a place of serenity and safety. And it is your little slice of the world. Right? And the cool thing about it is you own it and like you can do whatever you want to it.

 

Keith: Exactly. You can do what you want.

 

Jason: Yeah.

 

Keith: They cannot tell you what you can do and cannot do like they can in a rental.

 

Jason: Exactly.

 

Keith:  Not that you should do some of the things you want to do. Because you can does not mean you should.

 

Jason:  I am going to go 100%  in agreement with that. Yes, many, many, many of you should not just do anything you want to your house, believe me, because that is a whole harder conversation I had to have when you call me about selling it, and I have to be like, what color is this? It is not even on the wheel. It does not exist, and the creative additions that I have seen over the years. And now there are certain things that you do need to do legally. Like, if you are going to do an addition, getting a permit would be a good idea.

 

Keith: I am sure they all have were permitted. Right?

 

Jason: Oh, no question.

 

Keith: Yeah, that extra bedroom outside of the garage that was permitted. Wasn’t it?

 

Jason: Sure. They gave themselves permission to do it. There is no question about that. Yeah. But hey, it is what it is. But yeah, there are certain things you can do does not mean you should do it no matter what, but there are certain things. Well, there another reason tax savings. Hey, it is not as great as it used to be because less people actually itemize their taxes these days. So, interest deduction is a great thing. You can reduce the amount of taxes you pay by the interest deduction, but that really only works if you itemize your taxes. And then of course, we see that most people do not even do that anymore. So that is a little bit less of a now benefit or a yearly benefit, but it is for some. But here is a cool tax law that we have currently today, that you can really save tremendously when you go to sell your home. And right now, the way the tax code is, is written. If you are single, you can sell your home and make up to $250,000 in profit. So above what you paid and pay zero tax. And for a married couple, it is $500,000. So that could be a significant tax savings for you. So, think about that. That is $500,000 more than you paid. That is a gain. That is hey, you bought it for $100,000. You sold it for $600,000, that $500,000 increase, you are paying no tax on that when you go to sell the property, and so, man that is phenomenal. Now, is that possible to do? Well, not everywhere. No. It would be really cool. If it worked like that in the Triad.

 

Keith: It would be nice.

 

Jason:  Yeah. I could sell a lot more houses, no question. But in certain markets, it is easier. Think about like California. If you got a $2 million home, it is not unreasonable that you would make a half a million dollars on a house over the years. Right? So geographically we do not benefit maybe as much as some other areas. That is the only thing that has ever bothered me about politicians, if you will, in how they talk about the middle class and but that number is not the same everywhere.

 

Keith: That is a true story.

 

Jason: The middle class in New York City and LA is not the same as it is here in Greensboro and Winston Salem, North Carolina. You could not take middle class wages in Greensboro and even survive in New York City.

 

Keith: You would be at poverty in New York City.

 

Jason: Absolutely. So, and there are a lot of places that that math does not work. I think really, this is where we could do a better job with more state centric taxation because that does give us somewhat of a real, I guess, a better overall look if you will, but to compare Iowa to California or North Carolina to whatever Texas. These different incomes, one size does not fit all. Right? I realize you to create a tax code for the for the masses, but it just does not work all the time. There are some areas of America where if you could just get to what they consider the middle class you would like, feel like you are a millionaire, right?

 

Keith: Absolutely.

 

Jason: You would be like, just off the charts. But yet in some parts, it does not work that way. It is $500,000 in North Carolina, if you made that in profit, that is phenomenal, but is it realistic? Well, in 22 years of business, I have never seen it. I have never seen anybody. And I have sold homes where people have been in them for 40 years and they have not realized $500,000 in profit.

 

Keith: Let mine be the first.

 

Jason: It sounds like a great idea. I think that is good. I think it was a good idea.

 

Keith: Let’s set a new trend.

 

Jason: Of course, the politicians say, well, it is not. You just did not live long enough. That is all. Not enough time elapsed. You sold it before. No. The math just does not work, and there are certain price points and certain areas in which it just does not work. How about revenue producing? There is another reason to consider owning a property. So really cool thing about our area, the folks in High Point see this more so than anybody else. The folks in High Point were running AirBNB before anybody even knew what the heck it was, right? Because they rented their homes out there during the Furniture Market. And so if you have a home in High point or near the Furniture Market where you could actually go create some revenue out of it. That would be a really cool reason that you could actually some folks get almost all their mortgage covered.

 

Keith: I was going to say. You can do your mortgage maybe more in a week.

 

Jason: Yeah, it is really amazing what some of these companies will pay. It actually saves them money by renting a home as opposed to being in a hotel. And you think about a company bringing 15 employees, and they are coming here to buy furniture. Well, you can rent a house a lot cheaper than 15 hotel rooms, no question about it. It is an economic savings for the company. It is a win for the homeowner. And so that is something to consider. And then of course, Airbnb, there is another one that just recently has popped up. Now it does not work for every property. I am told. I have never done it, but I am pretty sure it does not work for all of them. But another thing that some of our owners have looked at is we are college town. Think about all the universities we have in Winston, Greensboro, and High Point and the surrounding areas. So we have a lot of owners that have taken a bedroom or a basement and rented that out to a college kid.

 

Keith:  It is true. There are a ton of colleges around here.

 

Jason: It is unbelievable how many colleges there are. If you want a really easy, easy way to get a somewhat of a premium, if you will, for your rent, and have a young of mind, a college student, a sponge and somebody you could influence and, really help out in their dreams and their career, and they will pay a premium if you just include like one meal, like a home-cooked meal because they do not get them anymore. Right? And I have a couple of past clients that I was amazed. It was like they have garage apartments. I am like holy smokes, you are getting what in rent. It was amazing. And they are like, yeah, we will we only used to get just $400 a month. But then we decided that we had this great kid, and she was homesick. We brought her in, and she would have dinner with us. She said I should pay more because you are you are supplying food. And so for like the last 20 years, I have been getting like $650 to $700 a month just because they provide a couple, the opportunity for that student to have dinner with them a night or two a week. How cool is that?

 

Keith: I need to carve out a room.

 

Jason: Yeah, carve out a room. Those main caves, hey, you could turn them into revenue you never know. So I just thought that was a really creative, clever way to maximize what an opportunity that they had. And so they have continued that. And so now they have college students stay with them. It is more than just creating the income to them they take an interest in those kids’ lives, and they really do work to help them which is awesome. And they have a place to live. It is a safe environment. And it it is paid 10 to $15,000 a year of this owner’s home off.

Keith: It is a good deal.

Jason: It is a really win-win deal all around. The kids win because they get a meal every now and then or whatever. So of course, there are pros and cons to all this stuff. And of course, check your local zoning to make sure that it is legal, because just because you can do it does not mean it is legal, right. So take a look at those things. So we will do this. We are going take a quick timeout, go pay some bills. We are going to be back in just a minute. You are listening to the Jason Bramlett Real Estate Show.

 

Welcome back to the Jason Bramblett Real Estate Show. So before the break, we were talking about all the good, the bad, the pros, the cons of, should I rent, should I buy? Is it worth buying a house in today's market? Or should I just continue renting? So we were kind of digging into some of the logic in that.

 

Keith: So far I am not getting a warm fuzzy feeling. Why is it so bad to buy a house? I guess maybe I am better off renting.

 

Jason: Well again, it really comes down to a personal decision. At the end of the day, I do not think it is ever bad because of that forced savings aspect to it. Right? Now, but it could go the other way. Just over long periods of time. If we go back and look in especially in 20-year cycles, there are very few places in America that has lost in real estate over a 20-year span in a 10-year span. Oh, absolutely. For sure. We saw that happen ‘08, right? The previous people that bought prior to that they got hammered because they bought, what, top of the market. It is not so much top of the market because if you just stay there, you are going to be okay.

 

Keith: This sounds weird. It does not really matter what your house is worth if you are staying in the house. In fact, if you are staying in the house, and the house declines in value, maybe your property taxes go down. It could actually be good if you do not want to leave.

 

Jason: That is right.

 

Keith: if you do want to leave, that is a different story.

 

Jason: Yeah, truthfully, you could go to zero or $100 million. If you are not moving, it makes no difference. You are not going to feel the pain either way. But for some folks out here, the answer is yes, you should rent. Many the owners lack the finances to properly maintain a house and they do not learn that or they just do not know it. There is no education or training or nobody is teaching them about maintenance and there is additional cost and those type of things. It actually can create a bigger financial hardship than renting by owning a home because things do break there is wear and tear and maintenance and those type of things. One of the huge benefits to renting versus owning is you know exactly how much money you are going to lose every single year. 100% like on January one. Hey, if your rent is $1,000 a month, you are out 12 grand.

 

Keith: It is easy to budget.

 

Jason: It is easy to budget, right? And so, as opposed to owning a house, there is absolutely no guarantee that you only are going to lose 12 grand. Many folks in the last decade can attest to that. Right? And they know that that the fact that your house could drop $120,000 in value.

Keith: Yeah.

 

Jason: Right? And so if it did, especially like you 2008 folks that owned back then, and when the market crashed. Think about that, that is 10 years of rent. And unfortunately, that is the benefit that some people got. They did own a house on paper, but really, they rented it, because it never was worth anything more than they ever paid. And unfortunately, some people went completely the other way, and they lost 100%. So not to be 100% political, but it is kind of the deal. The politicians have kind of spun this with the banks that it is the American dream to own a house and that is really not the truth.

 

Keith: Who really owns that house?

 

Jason:  Well, there is one way to find out. The whole reason for the purpose of buying the homes is so the banks can loan money. That is it, and what a sales job. Create this dream and call the American Dream, right, and then you create this emotionally charged person that wants to have it. They actually go in and seek the money and what a great thing you have got that emotional-tied asset to what this debt that you have sold, but there are still other great reasons to own a house. All the ones we talked about before raising a family, the joy of ownership, all those type of things, and plus it is yours. You can like just kick the wall, paint whatever color you want, do all those things. So lots of reasons to own. If you want to get more information about the pros and cons of that, go to Jason Bramblett dot com. You can set up a consultation with our agents to decide if it is good for you. We will be back here next week. You are listening to the Jason Bramlett Real Estate Show.

 

Posted in Radio Show
Feb. 15, 2020

Action Plan - Sell the House

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning and welcome to the Jason Bramblett Real Estate Show or I should say welcome to Seattle because good night, could we get any more rain or what? It is absolutely unbelievable. I think the weather is confused about what coast we live on. Right?

 

Keith: You mentioned Seattle funny enough. Now not for this year, but last year would you believe we actually had more rainfall last year than Seattle?

 

Jason:  I know. Right?

 

Keith:  Those hurricanes kind of aided to that.

 

Jason: Yeah, true. But still, it is and you think about like, all the stigma around Seattle.

 

Keith:

 

Jason: Yeah, it is always cloudy. It is always raining. The people are really depressed. Hello. It is like we are living in your world over here. Where are the Carolina blue skies? Of course, just like anything else, when we go through a drought this summer, we will complain about that, right? Yeah. So, but it is crazy, crazy, crazy weather. Some of you guys are living this kind of nightmare right now realizing that our homes are really not constructed for this much water. We have got folks that are having huge issues with flooding in their crawl space, their basements are leaking, and our ground, being mostly clay and unfortunately, it does not absorb well, and when it does not have anywhere to go, it finds a home in your crawlspace or your basement. Places that are not intended for water or a lot of it, that is for sure. It is a frustration that I know so many of our listeners are going through right now.

 

Keith: Well, not to mention within about a three-day period it was 26 and 70, which I am sure is not wonderful for a lot of different things.

 

Jason: Right? Yeah, right, exactly freeze, thaw. We got trees that are even confused. Right? There are trees that are budding that it is like way too early. But here is the thing. If you have got a crack in your foundation, and maybe you already had one, and it is bigger and or you did not have one and now you do, and then as a result of the water, but also because of what we call static pressure, the soil compact compacting and pushing on your foundation wall, you want to get somebody over there to address that because your homeowner’s insurance does not cover that issue. And most owners have no clue. And so, your homeowner’s policy covers ground movement by God, which is called an earthquake. That is it. If the ground moves for any other reason, that is on you. And you do not have insurance that will cover that. So if your basement collapsed for some reason, the wall gave away, your insurance policy is not going to cover that. Just like flooding, right? It is an additional insurance. Hey, it is raining. My basement flooded. I want to file a claim. First question, do you have flood insurance? No. That is on you.  Same with this ground movement. So if you have any type of issue like that, please do not just like look at it as poor, poor me. Oh, man, my wall has got a crack in it. You need to take action because a lot of things that get started moving do not stop until you put something in its way to stop it. And that is what these foundational repair companies will do.

Keith: You mean pretending it is not there is not going to make it go away?

Jason:  Not like the normal like laundry laying around the house. Right?

 

Keith: Somebody will just eventually just go deal with it.

 

Jason: You are right. I do not know that there is not a pickup laundry button for a crack in your wall, I think. But maybe there is. I do not know.

 

Keith:  There should be.

 

Jason: Yeah, but yes, you cannot ignore it like whatever else. Great example laundry, dirty dishes, in the sink, whatever. There is a crack in your foundation. Well, you need to be proactive. Get in touch with somebody for sure. Because you could have some major, major issues other than water when bricks start landing in the basement, that is a whole different level of mess, right? A whole different level of mess. So anyway, think about those things. We are going to dig into, well, the drier side of real estate. How about that?

 

Keith: Well, just in case a few of our listeners have some of these issues, and I am sure there are some of them out there that do, who can they call for help? What is the first step? Where do you go when you recognize these?

 

Jason: This is not a service that most people are like, oh, yeah, I got one of those on speed dial, right? If you do, then I am sorry, because that means you have got major problems for a long time with your basement. So you can give us a call. Call our office. We have got several great vendors that we have worked with over the years. And not just for your basement. Really no matter what your need is. We have got foundation experts, but we got painters, roofers, you name it. Every vendor that we work with, we have vetted out. Having owned a lot of real estate, I always, if it applies, which it does 99% of the time, I always have our vendors work on my properties first, because I figure if they are going to screw something up, I want them to screw mine up before I recommend them to Keith. I want to make sure these people have been tested out. Are they perfect? No, but we definitely have dodged bullets by getting people off the list because they have messed up something at my house and not one of our clients.

 

Keith: Right.

 

Jason: Which is great for you, and maybe not so great for Jason. Because some of those tests have been rather expensive, but in the long term, we want to have great confidence in the people that we know that we recommend to you. One of the great things about selling hundreds and hundreds of homes every year is we get to see some of the best service providers in the Triad. And we have some amazing, amazing vendors, not only our list, but just we are very fortunate in the Triad. We have some really great skilled contractors. So if you do not know where to go, and you want to have somebody with a little more personal touch than just whatever Google says, give us a call at the office. You can get in touch with us there and we can help you out.

 

Keith: So it is crazy to me that we are already, Valentine's day just happened. We are in the middle part of February which means for you the busy time is coming. Selling season is on the way, so there are a lot of people probably who have been thinking about selling their home back around the holidays, kind of figuring it out, and they are getting close to wanting to move forward. Is there like a good 123 punch list kind of just something the first couple steps to get them started?

 

Jason: Yeah, absolutely. Well the first thing for all you guys listening that just had an epiphany with what Keith just said yes. Valentine's Day. I am sorry.

 

Keith:  You are too late.

 

Jason: So yeah, you better regroup quick. The first thing we want to do is always put an action plan together. What is the goal? Okay, the Jason the goal is sell the house. Yeah, but is it sell the house this week? Next month? Is it 60 days from now, a year from now? Not all the timing is just perfect. And not all the timing and every program works for every single owner. We need to figure out what is it that you want to accomplish because that is the only time schedule that really matters. Our time schedule does not make any difference. We are going to be in real estate next week, 10 years from now, selling homes, that is what we are going to do. But that does not matter to you if you want to move in 30 days or you need to move in 92 days, or you need to move in 165 days, so we need to know what your plan is and also what it is that you want to accomplish. So meeting with us is really the best step, the first step to take. And then what we want to do is really dive into what you have and lining up with what the market desires at the end of the day, no matter who you talked to in the world of real estate, the bottom line of all real estate is this. It is supply and demand. If you have what people want, and if more people want what you have, you will get top dollar period. It does not matter if it is a phenomenal house. It can be a dump because maybe the location of the vacant, the lot, is more important than the house. Right? Because things change over time. What used to be neighborhoods now sometimes are shopping centers, right? What used to be a neighborhood is now has a highway running through it. Right? The state came in and paid whatever price you agreed to. They asked nicely once, and then they just say we are going to do it anyway. Right? Sometimes things change and your property that was out in the country and just a farm is now the Palladium in High Point or Wendover Avenue in Greensboro or think about Silas Creek Parkway in Winston. Man, that was like 25-30 years ago. That was like the abyss, right? It might as well have been Lewisville.

 

Keith: There are parts of Greensboro did not even have city services 10 years ago that are now completely built up. It is amazing how fast some of these areas have grown.

 

Jason: Absolutely. It can fill in quick. So we want to create the market demand because when you have market demand, you get the most potential buyers looking at your property. And when that happens, you are going to realize better results. It could be a time thing. It could be a money thing. It could be an as thing. There are lots of variables. Outside of just price. Price is typically where we start. But when we start to kind of peel that onion back, we realize that well, price is important, but really the most important thing to you is you need to be out of here in 92 days, not 91, not 93. But 92 is the most important day that we have got to work with. And we can help you with that. Plus, if it is something in which we need to get the house ready, we are talking to hundreds and hundreds of buyers every single week. So we know what the trends are. We know what they are looking for. They are telling us every single day. Every single hour we are talking to them and they are telling us, here is what we want, here is what we want. It does not take rocket science to compile all the data that says, okay, we talked to 100 people today, 98 of them said, we want this, that would be a pretty good thing to probably make sure your home has. Right?

 

Keith:  Yeah.

 

Jason: Because, or unless you want to talk to the two that are like off the chart with something really unusual or what, but if I can get my home to line up with what 98% of the people that Jason is talking to want, then that is, that is creating the demand, right? That is giving them the product that they want. So now, there is the flip side of this. You do not have to do anything to sell your house. There is no rule. We always look at it is what can we do to get in front of the most people in the shortest amount of time, which we know will get you the highest price? But you do not really have to do anything. The only thing that is really going to change is the price and the length of time it takes to sell because now we have shrunk the buyer pool down. When we have less of what the masses are looking for, now we start looking for what the term, what the needle in the haystack, right? I am looking for that one person that is kind of like me. And I have had to have some tough conversations with owners before. I remember a couple in Winston that I just flat out had to tell them I said, look, there are four people in America that want to live in a house like yours, and two of them are in this room.

 

Keith: And the other two we have not found yet.

 

Jason  And the other two we have not found. That is a challenging house. I do not have very many of those. But that definitely was one of them. And that house had been for sale for like, I do not know, 13 years with 15 different real estate companies and why? It is the needle in the haystack. It is going to take a really creatively interesting buyer for that property. It is not a house in which the masses are going to be able to relate to. It is a challenge and sometimes that is a house that is in the neighborhood, and that is okay. What we look at is time. But if you have got the right look and you have got the right price, I will promise you. We align those two things up with the market and the more that people want to be, and now we have created demand and now you have not just one but typically multiple offers to look at, multiple options. And the interesting thing that we see with multiple offers, most sellers do not take the highest offer. Because at the end of the day price is one piece. Typically, they are looking at all are all the criteria but there are other criteria that mean more to them. Maybe you will give me the most money, but the move is too quick. I do not want to move that fast. I am willing to take less because offer number three’s timeline fits mine better. So money is definitely not the only thing that falls into consideration. Gets buyers frustrated, too, sometimes, because we have had those phone calls where they are like, hey, we offered $5,000 more for that house. And I see it sold for less. Why in the world didn’t we get that? What is going on? Well, there was other criteria. Money, believe it or not, is not everything, especially when you are selling your personal home.

 

Keith: Well, but this brings back to a good point, because you always talk about the need for your agents to have communication with the other agents and to get an understanding and a feel for the buyers and to know the circumstances around each sale. If you have got that kind of relationship, they can go hey, maybe if you can wait a couple more weeks, you can get the house. That goes back to what you always say. It is so important.

 

Jason: Absolutely. Communication is huge. And we have so many agents in this business wanting to do business via text.

 

Keith: Yeah, tough.

 

Jason: And hey, love you guys, but really this is a communication business. Sales. And if you are, if you want to communicate via text, I love you, but just go do something else. Actually, there is this great tool out here. It is called social media. You can like just puke all this stuff all over their internet and get all kinds of great reaction and you never have to talk to people. It is awesome. Maybe that is where you ought to focus in your endeavors. But in sales, verbal communication is key. It really is. And you have got to ask the right questions to help your clients out. I know that is not what some of you guys want to hear, but it is the truth.

 

Keith: Well, it is important. It really makes the difference and for both the buyer and the seller.

 

Jason: It does and so the other thing with real estate is, if it is not priced then typically it comes back to condition, right? And so, yeah, you do have to have the right price with the wrong condition will not get the same results, will not get multiple offers. The right condition with the wrong price does not work either. Right? So you can have the most phenomenal house, but if the price is wrong, people will shy away from it. Right? But maybe you have a great priced home and they walk in and like, man, what color is this on the spectrum? Right? This has not even been invented yet. Yeah, it is called oops. And it is really cheap, and they sell at Home Depot and Lowes. It is on a little shelf on the side. Right? It is like we put the wrong mix in there. And so we will sell it at like 60% off. Yeah, it is a color.

 

Keith: Match that.

 

Jason: Exactly, exactly match that one. So anyways guys, we are going to dig deeper into this. We are going to go take a quick timeout, go pay some bills. You are listening to the Jason Bramblett Real Estate Show. You can call our office to get in touch with us, get that vendor list. 553-0796. We will be right back.

 

Welcome back, you are listening to the Jason Bramblett Real Estate Show. So before the break we were talking about how to match the condition and price and create eye appeal. Right? Get people looking at your home, running into situations where how can we get the masses to take interest? Because when we have demand we have the price we want. Typically.

 

Keith: That is a tough one. When you get a house that does not have maybe the demand you are looking and maybe there are some oddities or some we will call it uniqueness. How do you go about talking to the owner? I can see an owner being like well it is good enough for me. Why shouldn’t it be good enough for everybody else? That is a tough conversation, isn’t it?

 

Jason: Yeah, sure. It can be. We do deal with that.

 

Keith:  You have to.

 

Jason: Yeah, right. It is funny. I laugh it what you are, I always tell the teams, your words matter. Right? And how you say something makes a difference.

 

Keith: Sure.

Jason:  And you use the word odd and unique. Unique is the politically correct term for odd, right? We just had a discussion about that. So it kind of made me chuckle a little bit because it does matter, and there are some amazingly creative people in the Triad. Oh my goodness, you guys are like, oh, man.

 

Leith: And if they love it, that is great. Listen, I think you should absolutely love your home and I think it should be yours. But that does not mean that what you did to your home means I am going to like it.

 

Jason: That is right. That is right. You think about it, guys. It is the more that you can deliver what the market wants, the better off you are going to do. But when you do not, it is not that it is never going to sell. It is just going to take longer, and typically at a different price. Now, there are even some rules that make that change and it goes back to desirability of the location. If the location is premium, the condition of the property does not matter because most people that are looking at location only do not care about the structure. They will tear it down.  This is a kind of a cliche thing that we run into with people with land. People with land have a belief that, wow, they are not making any more land. Okay, so mine is worth a lot. And that is true until you run into a guy named D.H. Griffin, and it is amazing how much land he can make really, really quick, right? Like there is this whole place in Greensboro called Friendly Center. It has a new addition. Well, they did not make the land was always there. But what did happen? D.H. came over with his toys –

 

Keith: Yeah.

 

Jason: -- and leveled it. And then he turned it into what? they wanted to turn it into, which is the new Friendly Center addition. Yes, jokingly, no, no land is being really made. But if you price yourself out of a market which I have seen so many people do, they will just build around you. I can name three locations in Greensboro right now where there are apartment complexes built in a horseshoe completely around someone's land that was the holdout. Now what has happened is their property is worth nothing.

 

Keith:  Yeah, cannot sell it.

 

Jason:  You might as well burn it to the ground.

 

Keith: It is over. Yeah.

 

Jason: Because you held out for so long and were so unrealistic on your price, that it was not going to stop the movement of the construction. It just changed what it looked like. And so now you have a residential home surrounded by apartments. Yeah, go search that on Zillow. Right yeah, nobody is looking for that. Now the only the other problem is there is so little bit of land left, you cannot even build any apartments on it. So now it is just an island. It is just stuck. And I can think of three locations in northwest Greensboro right now in which that is the case and houses that could have received a premium had they sold are basically worthless. Absolutely. They are probably forever really bad rental properties. And there is really no need for that. So, but hey, some owners have to do what? They have to learn the hard way, and we do not want you to do that. We want you to get the right information because we are speaking with the buyers. We know exactly what they want. And we want to get you that information so you can make a good decision. Now can we sell your house in any condition? Absolutely. We do it every day. It is just time and price that we are looking at because how many people appeal to what you have is going to dictate both of those things. But you may be in a position where Jason, I just I do not want to deal with it. I do not want to fix up anything. No problem. Just understand two things will change. The time and or the price or both. It could be both depending on how unique it is, as Keith said.

 

Keith:  Unique. Exactly. The uniqueness level.

 

Jason:  Yes, unique and believe me I have been in multiple, multiple thousands of homes. And I can assure you. You people are amazing with your unique. I have images burned on my retina that should not be there. I promise you after 22 years in this business. It has been an amazing business to be in. So if you want to get a copy of our vendor list if you have questions about selling your home and how to get started and come up with a plan, which is key number one thing we want to do, get in touch with us at the office. 553-0796. Everybody have a great weekend and we will see you right back here.

Posted in Radio Show
Feb. 8, 2020

FSBO Myths

Jason Bramblett Real Estate Show Podcast 

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Jason:  Good morning, Triad. Welcome to the Jason Bramblett Real Estate Show. Hope everybody is having a phenomenal week or had a phenomenal week, and well what an exciting Super Bowl. We learned a couple things. The Chiefs, believe it or not, they actually taught us something other than how to win a Super Bowl. They actually told us something else or taught us something else. Never give up.

Keith: That is right.

Jason: You just when you thought –

Keith: like it was over –

Jason: -- it was over.  49ers were all real happy and celebrating and all of a sudden, man. Just things turned around. What is the key? The key is well do not give up, and maybe some of you guys have given up in theory not 100%, but maybe you gave up on selling the house in 2019, and you are just kind of in limbo, and maybe 2020 is your year, your year to get that done. What you need is, well, just like all great teams, you need a coach, somebody to walk you through what to do, how to get prepared properly for what the market wants, and that is the difference between football analogies and real estate. You can put the house for sale, but it does not mean the right buyers are going to be attracted to what you are offering, and that is one of the things that we will walk you through. How to prep and get your home ready to go. But hey, selling a home can be tough. It can be stressful. Let's face it. It is not what you are trained to do either. It is one thing to talk about things. It is another thing to actually walk through them and do it. Right?

Keith: It is always harder.

Jason:  If everything was just as easy as reading the book, this is why YouTube is so famous, right, and you can see it at least. Okay, now I can see it. Now I can go out and attempt it on my own or whatever it is I am trying to fix or blow up or whatever it is you are trying to do, but sometimes you still need a professional to step in there and help you. I know even though I have watched many YouTube videos how to fix something, I am like, yeah, that is a little bit beyond my pay grade or the risk I am willing to take, realizing that if it does not work out, I am probably going to break it even worse than it actually is, and it is probably cheaper just to go hire a professional. I take a lot of teams over the years to different countries to do missions work and build construction and all that. When we were in Panama for a number of years, one of the guys he came up with the saying, and I love it because it is it is kind of American in a way, but it was a Panamanian. He said we do it right because we do it twice. There is so there is a lesson in that. Right? And it is like there is no instruction manual, and you have got to figure it out as you go, but we do it right because we did it twice.

Keith: You got it the second time.

Jason:  I thought that was a clever, clever saying. In a lot of things that can be the case, but when you are selling your home, they can be very, very expensive things. Think about most owners sell their house about every ten years, and whatever it is that you do for a living, if you only did it once every decade—

Keith: You would not be good at it.

Jason: You would not be good at it. Depending on the field, you might have less appendages, right, may be missing some digits.

Keith:  That is true.

Jason: It is the old shop teacher joke, right? How do you know a good shop teacher? He has got one finger. Right? He has been doing it so long. You know you think about how that would look, how that would turn out, what the process would be if you only did something once every ten years. That is kind of the situation a lot of I see a lot of owners get in when they attempt to sell their home on their own. Yeah in theory, it seems like a simple thing, but there are a lot of moving pieces to a real estate transaction outside of just making the house ready. Right? There is the negotiation, the preparation, the title searches that need to be done, and all the different things that go along with that. So hey, just like in the football game, you can throw a Hail Mary out there, right, and just chuck it in the air and whoever gets it, gets it. Right?

Keith: Maybe.

Jason: And that is a lot of times what I see in real estate. But the question is is that really smart? No, it is usually that is your last resort. Right? We kind of saw that this past weekend. So we are going to be digging into the for sale by owner myth as to is it good? Is it smart? Am I really actually getting ahead of the game? Am I saving money? Is it worth my time, effort, and energy or is it just kind of like watching that YouTube video and then blowing the car up?

Keith: Wow, I would be scared to do it and I would not think it was the best idea. But if I have done my math right based on the average sales price in the Triad, owner is going to pay. I do not know, about $18,000 to sell their home. So while it probably scares me, $18,000 is a good chunk of money that might be enough motivation to give it a shot.

Jason: That is right.

Keith: Is that crazy?

Jason: I think most, let's see most big dreams and ideas they start with a calculator, right? And you run those numbers and you look at that and you are like, holy cow. What could go wrong? Even if I am half right.

Keith: Again, I am not saying it is a great idea. Do not get me wrong. But with that amount of return, I do not know.

Jason: Yeah no kidding, and it is expensive to sell a home. No question about it. It is one of the most expensive things that we own in this country, and it is also one of the most expensive things not only to sell but also to purchase. It is not cheap. I am not saying that owners do not save any money, but I do have some information that I think will make you pause to say okay, if we look at risk versus reward now. Statistically, I will share with you in a little while that actually owners typically get less for their home when they sell it on their own. I know there are many of you they could call in and tell me your success stories. These are averages. The reason why there are averages is because somebody did better and somebody did worse. Right? And it averages out. But the average in this particular category is still the owner does not come out quite as good as they think. Basically, the for sale by owner that is out here still realizes most of the time there is going to be another agent involved. Most buyers today have an agent that they want to represent them. For so many years in America it was buyer beware, and there was no one representing the buyer at all. It was basically the buyer was just on their own, and sometimes that worked out really, really well and sometimes it did not. I guess if you look at statistics and as a trend you would say it must have worked out not good more than it did because now buyer representation is huge, and most everybody has an agent that is going to represent them. So even the seller that is doing it themselves recognizes that, and they offer compensation to that buyer's agent to help them along and bring that buyer to the table. So right off the top in Keith’s kind of scenario here if we take the $18,000. If there is another agent involved typically 50% of that money is going to go to that agent. So right off the bat you are at $9,000, not 18. Right?  Which, hey, I am not knocking $9,000.  $9,000 is $9,000. If I laid out $9,000 most of you would pick it up. Right? I would. If you walk down the street and it was sitting there you would be like, yeah, that is mine. Yeah, I remember dropping it. Yeah, so it is still a good check. No matter how we look at it. It is still a good money. But 95% of the for sale by owners that are in the market, one other thing that we do see is they typically sell in the first week, which I think also leads to why we have so many people that are very, very confident. I will have folks that we will talk to and they are like, well, I sold my last house in a week. It was easy. I did not need a real estate agent. I did this and I sold it the first day. Selling it quick does not necessarily mean you sold it right.  Just because it happened fast does not necessarily mean it was good, and statistically we know that that is actually normal in the for sale by owner world because they do sell quick probably because whoever bought your home, one, was either somebody you knew. Right? Word of mouth or it is someone that drives by your property every single day of their life on the way to work, take the kids to school. Whatever. You have got a captive audience of a steady flow of traffic that goes by your property. This is statistically proven nationwide because after eight days, the chances of you selling by owner drop 60% because everyone that you would have exposed your home to in the first week has been exposed to it. And if you are not in the market to buy a home, then you are just driving down the road and there is a sign in the yard, but you do not pay any attention to it because it does not appeal to you. Right? Maybe one out of the 20,000 people that may drive by your home in a week maybe it is the one. But typically after a week that is it. Your exposure is capitalized. There is no one else unless you get the lost person that just happens to wander down your street which is pretty rare. Right? We see those statistics dropped tremendously. By day 30, the success rate of a for sale by owner actually drops 97%. There is actually only 3% of people that sell their home on their own that do it after the 30th day. Again, it goes back to saturation. It goes back to you have exposed the house to pretty much everybody you could. Now these are national numbers from the Association of Realtors. Zillow has similar numbers. These are not mine. These are Google stats. You will see them. They have been that way, and what is interesting is technology has not skewed those numbers. Same basic percentages as 25 years ago even with the internet and all the social media and everything.

Keith: Yeah, but just because the internet is out there and you have the ability to market and do some things, if you do not know how to do it and you do not know what you are doing, it is not going to be effective.

Jason: Yes. Absolutely.

Keith:  So even just that it is there, you still need someone who knows what they are doing.

Jason: That is right. And the audience is the audience no matter what. If you are not in the market of buying a new car, you are probably not going on cars.com to look at cars.

Keith: Yeah.

Jason: We are not that bored as a society, right? Probably not. But it is the same with the house. Yeah, you may watch some of the house-flipping shows for entertainment or whatever, but most people entertainment is not digging into a website going oh, I would really like to see what a 4x4 Jeep would, what does that look like today? It is just not research you are going to do to buy a car when you are not in the mode of what buying a car. Right? The same is true with the house, but sometimes you cannot relate to or it is harder to relate to things that you do not do very often like buy a home.  So if you think about it from a car standpoint, if you had a vehicle to sell and you just, we will switch the product and just say okay, you got to whatever us today and you want to sell and you put it in your front yard. There is a limited number of traffic that you are going to get as compared to let's say Greensboro, Wendover Avenue. There has got to be 12 car dealers on Wendover. At least.

Keith: Minimum.

Jason: Minimum. Outside of going to Costsco, you go there to buy a car. Pretty much. Right? Every single buyer that comes on that lot is probably in the market to, what, buy a car for the most part, and so you have got higher traffic and you got a better qualified person. Now, why do they go to Wendover as opposed to your driveway? They got options, variety, more than one. You have only one of something to sell. Right? There are thousands and thousands of cars available on multiple lots on Wendover. The other thing is this. Why do typically people stop on the side of the road to look at a car? There is a perception there and that perception is they did not stop at Keith’s house to look at Keith’s house expecting to pay top dollar. They stopped to buy the car with the preconceived idea that they were going to get it at a deal, a discount, less than they would on Wendover. Why is that like a subconscious thing? Because they realize wow, car dealers spend a lot of money in what, real estate. I would guess that Wendover Avenue real estate is a lot more expensive than where all of us live. Right? They have spent a lot of money to bring people to that location, TV, radio ads, billboards, whatever. They have employees that they have to pay. Right? They have taxes that they have to pay. You have none of those things. And so just at the core idea of selling your car in your driveway, the buyer has a perception of paying less. We all do. It is kind of like a garage sale. Right? You go to a garage sale. You do not expect to go in the garage sale and pay the same as you would at Gander Mountain or any sporting goods store, or Walmart for that matter.

Keith: It would defeat the purpose.

Jason: It would defeat the purpose. The same principle. The same principle applies in real estate. Buyer stops at the for sale by owner sign, not with the idea that they are going to pay top dollar. They are stopping with the idea of I can probably get this for less than if it was for sale with what, a real estate company, that has what, employees, real estate, advertising all these added expense that what, it does raise the cost. No question about it. And there is no agent to pay, so there is no employee to pay. If I am a buyer, I am not looking at a for sale by owner going oh, wow, I can buy this house too and still pay top dollar and have no service. Right? It does not make sense. If you really get to the core logic of, and this are some psychological things that are kind of wired in our brain. It is like Jumbo shrimp. It does not make sense. Right? Shrimp are little period. No matter what. No matter if you get the biggest one it is still a shrimp. And with selling your home, in the brain of the buyer, it is I should be saving something there. I should be, what, getting a discount, and typically what they want to do is they want at least knock the real estate commission right off the price of the house to begin with, but just by knocking the real estate commission off, let's just say 7% off the price, that is nothing because it is really not a savings. I am just saving the middleman. I see they want 7% then they want to discount because if they had bought the home when it was listed with the real estate agent and paid full price, it is the same money, right, net result is the same. We start to see bigger, deeper discounts. This is why this statistic is out here that we see that most for sale by owners actually end up selling their home for considerably less and actually netting less even after all these perceived savings. So anyway, let's do this. Let's take a quick timeout. We are going to dig into more of the for sale by owner myth. And of course, you can send me your lovely emails. Everybody has got a great opinion about this. So I do look forward to him you go to Jason Bramblett dot com. Click on the right hand side. Shoot me an e-mail or give us a call at the office 553-0796 will be back in just a minute.  

Hey and we are back. You are listening to the Jason Bramblett Real Estate Show. Before the break we were digging into the for sale by owner myth. Is there really any money to be saved and then well then begs the question of who is saving the money, right? The owner has 100% belief that hey, it is my house. I am not paying anybody, therefore I am saving. But then there is this other guy involved called the buyer and he sees it a different way. He sees it as hey Keith, you are not paying anybody, therefore here is an opportunity for, what, for me to save and what they find is it is very hard to both of them say with the same product. Right?

Keith: Right.

Jason: If we were just selling a cup of coffee and Keith wants to get the most and the buyer wants to get it at the least and there is no middleman coffee person in between then who is saving what? Right? That is that is where we end up getting into the real numbers and looking at is there any savings at all?

Keith:  Well, I am stubborn.

Jason:  Let’s do it.

Keith: We started at 18. Clearly,if there is another agent involved that takes it down to nine-ish.

Jason: Yeah.

Keith: I do not know.

Jason: Yeah still good, still good.

Keith: Listen, I am stubborn. Born this way.

Jason: Hey, like I said, if I laid $9,000 down, I feel pretty confident most people would pick it up. right?

Keith: I would.

Jason: Absolutely and so there is no doubt. $9,000 is still a great amount of money. There is no question about it. In negotiation when we do not have skilled negotiators, we find that people like to act in this world that this word called fairness. Keith being a reasonable stubborn person would say hey, okay, there is no agent. I get that. I am going to pay your agent. There is $9,000 left on the table. I really want to get this deal done. So let's be fair and let's split it 50-50, right? I will say 4500, you say 4500.

Keith: Sure.

Jason: And look, let me tell you about fair. Fair is a good place for rides and food, right? You want a fair? Go to the Dixie Classic Fair. It is phenomenal. I love it. But fair is not a negotiation in splitting the difference. There have been many books written on this. There is actually a good book called Splitting the Difference and why it is not a negotiation. When you settle for splitting things 50/50, somebody is actually losing out in the deal even though the perception is equal. Remember what the whole entire process of the for sale by owner was doing. He was not attempting to get to $4,500. It was $18,000 is what was on the calculator.

Keith: Right.

Jason: And now we are at $4500.

Keith: A lot less attractive.

Jason: A lot less attractive. Well, let me back up. That $4,500 assumes that they buy the house as is. You have it even went through the repair to go negotiation yet. Right?

Keith: That is right.

Jason: Because I know your house is perfect. Of course, it is. Yeah, there will not be anything wrong with it because I am sure you had it inspected and checked out thoroughly before you put it on the market. Right?

Keith: And my daughter used to make slime in that bedroom. So it is going to be fine.

Jason:  There is no issue at all. There is no issue at all. Yeah. We do a lot of pre-inspecting of our properties, and I get it. It is yours, and it is in no way, shape, or form by us suggestion to get a home inspection on your property saying there is something wrong with it. It is a proactive stance that we take so we lead from a place of power in our position, in our negotiating because we do know verified from a third party that there is nothing wrong with the house. There is power in that and there is power in having that third party verify that. But let's just assume if anything comes up then what happens? That $4500 starts to get smaller and smaller and smaller to where you really have to look at it is like wow did I actually gain anything here? I see this a lot with first-time investors that want to flip homes.  And also running is the math and the calculator and everything is like oh, wow. I am going to make $18,000 on this house. I am like, okay who's doing the work? I am. You do not value your time?

Keith: Your time is worth something.

Jason: Not in their calculation it is not. I cannot tell you how many times I have met with investors. First time. They got stuck in an issue. Like hey, I need some professional help and we run all the numbers, and it is just like you realize you made like $1.80/hour doing this? You actually would have been better to go just work part-time at Home Depot. If you like tools and stuff and products and all that, go sell them. Right? It would have been better than attempting to take all the risk that you took and take it on this $130-140,000 loan and all the risk of buying the materials and all that, and at the end of the day you made $3/ hour. I cannot tell you how many times I have seen it over and over and over again. So not only like was flipping a home, you need to know your math and need to the risk. The same with selling your home on your own. Now have some people done it successfully? Yes, but to some people that getting the house sold was successful. We look at is how much did we put in your pocket? That is the key. We want to push that $18,000 back on your side of the balance sheet and not off into the abyss. So we can help you walk through those numbers to see if it really is some savings out there. You can go to Jason Bramblett dot com, shoot us an email anytime, or call the office. One of my agents or myself will be happy to sit down with you and go through that. Hey, have a great weekend. We will be back here next week. You are listening to the Jason Bramblett Real Estate Show.

 

Posted in Radio Show
Feb. 1, 2020

Offer in 72 Hours

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason:  Good morning and welcome to the Jason Bramblett Real Estate Show. I hope everybody is doing great. We have got a power-packed show for you this week. A huge response to our guaranteed sales program from last week's show. Lots of calls, emails, messages. All that 2020 is definitely looking to be one of our best years yet. Actually, we have added 11 new team members already this year. So it is booming already. That is fun and is exciting. We got our other divisions of our company are growing as well. So we have a property management division. If it is something that you thinking about getting into real estate investment or you just have a rental property that you are tired of managing yourself, we have a great option for you that connects you with our property management. Even let them talk to you about that. But then 2020, we are looking we are going to be adding mortgage into our arsenal as well down the road. We are looking at some different things and how we can bring that service in house to well really just a service the great relationship we have with our clients. All these things we add a lot of times just based upon your request.  It is like hey, would you consider doing this. Even had somebody call and ask me if I wanted to buy their moving company. They are like, hey, man, you sell a lot of houses. You should have your own moving company, right?

Keith:  Good call.

Jason: Yeah. I was like, yeah, you should have come in about 15 years ago because yeah, not that, I promise you I have been probably offered to help move people more than any person on the planet, right, because of obviously what we do a grab a box come on over.

Keith: I am sure.

Jason: But it is unique thing. It would be really cool if we could figure out some day from, I do not know what that number looks like and how many homes it would be. But if we could ever just get to be where it was just a free service, buy or sell a home with us, we will move you for free. Yeah. I think most people will be all in. I think it would be a really cool just added value service. That guy that said that to me I thought I do not know if I want to own one, but it would be cool to provide that service and see what we could do. So who knows? Down the road it may be something we consider, but we are always looking at adding more value any which way we can and so maybe you have got an idea. You can always get in touch with us at the office. Go to Jason Bramblett dot com, click on that email icon and fired over to it. It is definitely 2020 is going to be an exciting year. Hey, it is a presidential election year, which makes it even more fun. Right? It is game on, as they say.

Keith: Well, we had a lot of questions and some great emails about our topic. We are talking about the guaranteed offer that you guys do. This is one of them. Says Mr. Bramlett, heard the show last week about your guaranteed offer. We are being relocated, which unfortunately happens a lot. It sounds exactly like what we are looking for. What steps do we need to take to get started? Thank you, Bob and Rhonda.

Jason: Very good. Well, thank you both for listening. Greatly, greatly, greatly appreciate it. The steps are simple, and it really the same steps regardless of what program you choose. Everything that we have just kind of builds on one another. Our systems and our programs are exactly the same whether you end up selling through us, just through our traditional marketing plans or the guaranteed sale or 72-hour. Everything really starts at the base and then just expands from there. So there are the beginning steps are the same no matter what. It is kind of the investigating part. You are checking us out and we are going to check out you. Right? We are going to check out your property and really make sure it is something that we believe has market relevance. So we are going to send one of our team members out there. They are going to walk you through every single step and every single option. So, you know every single benefit of each program that we offer in each option that is out there. So in your case, it sounds like that our guaranteed sales program is something that you are interested in. What we believe is the best way to start off is with an appraisal and that is not normal. That is not something that most real estate companies do. In this particular case when we are going to offer a guaranteed price on the home, I believe it is it is very important to get that number from an unbiased third party. The great thing about that appraiser is he is going to make the same money doing your appraisal whether your home appraises for $200,000 or $2 million. Makes no difference. He has got a set fee, a set price, and that is it. And that is unfortunately not the case with real estate agents. Real estate agents get paid what, on percentage. So the more sales for them, the more they make, which sometimes does lead the price to get out of hand. Sometimes it gets out of hand because of the real estate agent. Sometimes it gets out of hand because of the owner. Both of them have their heads in the cloud somewhere. It is just an observation 22 years in the business. If it was not the case, then we would not see as many homes come off the market and expire as we do. Right?

Keith: Well, homes are very personal, and sometimes it is hard to step back from a home and look at it without all that stuff tied into it. Sometimes you may value things a little bit more just because you lived there. It was yours.

Jason: 100%.  The number one phrase we hear, I hear it in my dreams, but mine has, but mine did, but this has, mine is better because, but mine whatever. It does not make, and I get it. But that is that emotional piece that we have to work through. The great thing about hiring a real estate agent, and some people do not see any value in our services, but I can assure you most of the population cannot deal with the things that we deal with in the same way. If I go to sell Keith’s home, I have no emotion in that at all. I do not mean this to offend anybody, but after you have sold as many as I have, it is a box with windows. Right? That is it.

Keith: That is good. That is good in this case because you do not take bring that, baggage is probably not the right word, but you do not bring all that history with you right to the table.

Jason: Yeah. Now when I go to sell my house, no, that is me and my little girl planted that tree, we built that, we tore that down. We probably burnt that down, whatever it may be. We destroyed that or we fixed that or, now it becomes more personal. But when I can remove myself from that, I can make a good objective decision. Money managers. Why do we have money managers? Because people are so emotional about money. Most people will not do anything with it. They get into paralysis. I do not understand enough about the market, so I just will not do anything. Well, that is not good for your money just to sit around. The same is true with your house. You need to have that third-party objective to come out there and look at it. And sometimes you just need a good dose of the truth. Right?

Keith:  Sometimes

Jason: Sometimes you do. Sometimes it is not received well, but we have trained our agents on how to deliver that with a smile on our face. Right?

Keith: Gracefully.

Jason:  Gracefully. That is right. Once we determine the value of the home, the company will make an offer on your on your property. And once we have an agreement, then the clock starts. We have 120 days to market that property. At the end of that time if that home is not sold for that price or more, then we step in and buy the property for the agreed-upon price, but we do have 120 days. So some folks want that to start right away, right? Because they are making two mortgages or they do not want to make two mortgages. They do not want to pay. Maybe they are going to move, relocate to Tennessee, and they do not want to pay rent and have a mortgage. So whatever it is, most people's budget is really not set up for double. Right? It is like when I went to buy a house I did not have a reserve thing in there to says oh if my payment doubled, I would be just good to go.

Keith: Well, yeah because all of us whether you make $3 million dollars a year or you make $30,000, all of us live to a certain standard and you cannot just, it blows it up.

Jason: 100% blows it up. So once we have that here, the other thing is we found important over the years as you have that price up front. So you know the exact price upfront going into that and that way it never changes. It is the agreed upon price from day one. So once you enter into our guaranteed sales program, you know the exact number that you are going to walk away with/ Right? Keep it very, very simple. Really most of our guaranteed sales program we mimic a lot of a corporate buyout because I did corporate relocation for years and years and years. That is where we mimic a lot of it at, but hey, the only thing that you really need to provide is the moving boxes.

Keith: All right. Well, here is another great question. And I think this is one that I think a lot will be interested in the answer. Jason, I heard that your show last week about the guarantee. It did pique my interest as we are considering selling our house this year. I do not want to waste your time, and of course, do not want to waste mine. So how much below market value do you offer on a house? Is there a specific percentage you just take off the house? Thank you, Robert.

Jason: Okay, Robert, great question. Probably one of the number one things, and it is fair.

Keith: I would want to know.

Jason:  Absolutely. I always loved how they politely say hey, do not waste my time by throwing in hey, I do not want to waste yours either. Yeah, you do not care about time, Robert. Hey, come on, let's just be real here. Right? At the end of the day, it is, and that is cool. I am the same way. I would do the same exact thing. There is really no magic percentage. I get that question. We probably get that question every week, and I wish if everybody's home was exactly the same, if we all lived in Whoville and had a little Whohuts then that would be a very simple thing to answer. But every single home is different and unique, and so there is just not a percentage that we work off. We actually look at the home just like the buyer that would consider buying your home. We walk through it the same way. We look at the same things. When we see something interesting we say hey tell me about that and it is typically oh, yeah, me and so-and-so built that okay. Did you get a permit? We go back to the permit. It is not that it looks bad. It is just when you have looked at as many homes as we have, something that is not professionally done does stick out. It is okay if you finished your basement as long as you did it right. It is okay that you did put a deck on the house as long as you did it right. We look at all the same things that any buyer coming through your home is going to, they are going to ask the same questions, right? They are going to want to know that. The other thing is some people do not care for their homes the same way, and we have been in some homes that absolutely immaculately kept, maintained. You are almost afraid to even walk on the floors. It is seven years old. It looks like it was built yesterday.

Keith: Makes your job easier.

Jason: Yeah. Oh, absolutely. It is phenomenal, but then we have also looked at houses that were eight years old and they did not even know that they had to change the filter on the HVAC system.

Keith: Hmm.

Jason: Right?

Keith: Yeah. It is a little more problematic.

Jason: Yeah. I actually went in a home and I was like, what is that whistling, and the owner iss like how this stupid thing right here just whistles all the time and I might well, that is your filter. What? No clue. I open the door and the thing is like a concrete brick. I am like your HVAC system is just probably wheezing. It is probably like emphysema now right after eight years of not being changed, or they just take the filter out because they like forget it. It is not that important. It never has that much dust on it, so I just quit putting a filter in there, right? And so yeah, those things are there for a purpose. Just a side note, but there are just different levels of care and there are different levels of maintenance, and some people never do anything. We have some owners that do not have a professional pest or termite protection on their house. They have never lived in the south. Maybe they moved from the north. Termites were never something that they thought about. They are like yeah, I am saving the 300 bucks a year. This is just a waste of money, and then they got $5,000 worth of termite damage. It is those type of things, just like every buyer, that is the reason that we just do not have a percentage that we can work off of. We have folks that have a fireplace in their home, and they have never had the chimney inspected or cleaned in 15, 16, 17 years ever, and it is cracked. There are issues. There is soot. There is whatever. There are just things that need to be maintained in the home, and that is why just coming up with like this percentage-based thing does not work. Each individual home has its own history. There are other owners that have not, they moved in the house 10 years ago and they have not done anything. They have not even painted. I have actually sold homes way, way, way older than that that have never done anything. I can remember some that were 25 and 30 years lived in a house and the pictures on the wall or the same place as when they moved in because when they moved out there was like this whole outline you could tell where every single picture on the wall was and these people did not smoke. It was just fading of the paint of 25-years. Can you imagine 25 years and never painting your home? But whatever. That is what I am saying. Everybody is different. Right? I have also been in homes where they have used every color in the rainbow. Every single room was a different color. That does not appeal across all spectrums to all buyers. Right? We have to take those things into consideration.

Keith: You have to paint then.

Jason: You are definitely committed the painting. There is no question about that. That percentage-based formula, I have not figured out a way for it to work. If I did, I will tell you this. There are a lot of homes that would have received a lower offer if I just did a flat percentage because they did take such great care of their house.

Keith: But that is the answer I assume. Clearly the offer has got to be a fair one because if it was not a fair offer and it was not competitive, you would not have so often. You are do a lot of these and so obviously if the offers were just terrible, no one would do them.

Jason: Yeah. Well the other thing too, we have been doing it for 16 years. If it was not something that our clients wanted and the people in the Triad did not want, I would not have 120 billboards up saying hey guaranteed, about are guaranteed sales program. It would not be on TV. We would not talk about on the radio, right?

Keith: Yeah.

Jason: I promise you there are many, many things that we have done in 16 years we will never talk about it again, right, because it is like yeah, that was a stupid marketing idea, that whole postcard thing. Yeah. It did not work out so good. Right?  

Keith:  We are not going to put that on a billboard.

Jason: Yeah these ridiculous $8 books that we had bound and made professionally and all this crazy stuff that we thought oh, wow. This would be great because nobody has this. Yeah, we do not talk about those anymore either, right? It was stupid expensive –

Keith:  You have got to try stuff.

Jason: -- and nobody cared, right?

Keith:  It is okay.

Jason: Yeah. Absolutely. Absolutely. There are always things you got to you got to test, right? So anyway, all right we are going to do this. We are going to take a quick timeout. Go pay some bills. You are listening to the Jason Bramblett Real Estate Show. We will be right back.

Welcome back when you are listening to Jason Bramblett Real Estate Show. So before the break we were going through your questions, your emails, and you can always get in touch with us. Go to Jason Bramblett dot com. Click on that contact us or email icon shoot over your questions any time or give us a call at the office, 553-0796. So Keith, I think we got a few more. Let's see if we can burn through another them.

Keith: Yeah, let’s roll through another email. This one is from James. It says Jason, I spoke with the one of your team members, name is Jamie, about selling our home.  He is amazing. Very detailed, informative, and I must say he is not pushy or salesy at all. We really appreciate his approach. We are leaning towards getting a 72-hour offer on our house. But here is one question. We forgot to ask. Is it agreeable could we try to sell the house first, and if we do not get an offer could we then go with that option? Thank you for the time, James.

Jason: Yeah. Okay. So yeah James, good question. So in a nutshell James basically is asking hey, we want to start out with this option. But if something changes could we switch to another option and that is 100% within all of our programs. We have that happen a lot where we will have someone that they agree to the guaranteed sales price. They are interested in it, but they are just not ready to start that time clock because they have not figured out where they are going to go. Because at the end of 100 days, I am buying a house. I do have one other little rule there. I did not put it in there, but it is kind of like this. When I buy the house you cannot stay, right? Yeah, you gotta go, right. They do not want to be homeless and so they just have not found what they are looking for. So we have a lot of folks that will just start out with our traditional, one of our traditional marketing plans and then whatever 20 days, 30 days, 40 days, 50 days later, they find the dream house. They find the one and they are like, okay. Now we are ready to go.

Keith:  Get moving.

Jason: Here is the thing. Because they can make a non-contingent offer, because their house is sold, and so they can move forward with confidence that hey my house is sold. A hundred twenty days we are done no matter what. Some people are in a position to go ahead and buy the new house and just make two mortgage payments for a very short period of time. Some people are not, and we will just close the other house the same day that I buy yours. We do that all the time, and so you go from one property to the next. There are lots of options out there. But yes, you can definitely change within those programs. The other thing, too, is some folks decide after whatever a month or whatever, they are like let's see what the 72-hour offer looks like. And so that is a system that we have institutional investors out here. They are all throughout the United States. We have four that we work with and they will come in. We send them all the information on your home, and we get them to make an offer. Now their offer is not retail. They are buying the home to make money. So this is more of a convenience move on your part. But they pay cash. They typically buy it as is and they also will actually close pretty much when you want typically within 60 days, but you could pick the date, so there are some options there. Normally we can always sell the home for more than what they are going to offer, and we have four different groups and they all do not do the same thing. Some of them are pure buy-and-hold long-term investors. They will pay more than the companies we work with other that are going to buy it, fix it up, and flip it because the margins are different and so the prices have to be different, and or their goals are different, I should say. But it is just an option. It is something that you can take a look at and of course our guaranteed sales program where I actually purchase the property and I look at it the same way. I do not flip very many homes anymore at all. Most of what we do is we are looking to purchase homes to keep in our portfolio. That is how that program works is because it is, I make a great offer, but from a real estate standpoint, a real estate investment standpoint, it is too good of an offer, right? So I am highly motivated to sell your house because I cannot make money flipping it. It is not possible. And so really I end up having to probably keep the house and that is typically what we do until I get in a position where it makes sense to sell it. So every situation is different. Here is the key that I want you to know. You have options. You are not just stuck with one option with our company. Go to Jason Bramblett dot com, get all the information that you want. We will come out, meet with you at the house, walk through, go through our programs. Or you can give us a call at the office. It is 553-0796. Everybody have an awesome weekend. We will see you back here next week. You are listening to the Jason Bramblett Real Estate Show.

Posted in Radio Show
Jan. 25, 2020

Your Home Sold Guaranteed

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning and welcome to the Jason Bramblett Real Estate Show. Hope everybody is doing awesome. So, how is your 2020 going. Is it working out for you? Have you hit, what do they say? Hit the ball and took off running, right? And that is it. That is the cliche out.

Keith: Hopefully, you are still running.

Jason: Hopefully, yes, hopefully you are still running.  What I read somewhere that like by January 10th or something most people have already thrown in the towel on the whole resolution thing. Just forget it. Right

Keith: That is the number one day for giving up on your resolution. They say about 20% of people have kept it going.

Jason: Wow, 20% Wow. I would have assumed it was higher than that. Well, maybe we are talking to the 20% today then. I know our listeners definitely fit in the 20% crowd. There is no doubt about that. They are some of the smartest and most educated out here in our community. Because they are listening to us, man.

Keith: Of course.

Jason: Yeah. Absolutely.

Keith: Obviously.

Jason: If it did not start off the way that you hoped, here is the good thing. Draw a line in the sand. You know what the cool thing about a New Year's resolution? You could actually make one today. There is like no rule that it has to be on the first.

Keith: You can make it a February resolution, starting February 1st.

Jason:  There you go. Perfect. Perfect. I just read an interesting article about some dictator over in some country that I cannot pronounce. He just decided that he did not like the name of the calendar months, so he is just going to change them. Yeah.

Keith:  Why not?

Jason: Whatever. Forget January. We are going to call it blue.

Keith: Sure.

Jason: Hey, I guess when you are at the top of the food chain, you do what you want.

Keith: That is right.

Jason: But hey, it is time to take action and so, hey, maybe you have got to figured. But here is the thing. No choice is still a choice.

Jason: Yeah, right.

Keith: It is.

Jason: Life is going happen. Here is the big game of life. You have to choose to participate.

Keith: I will give you one that I thought was interesting. I saw somebody say once that the definition of insanity is doing the same thing over and over again expecting a different result each time.

Jason: There you go.

Keith: It does not happen.

Jason: It does not happen. Does not happen, no matter what, it does not happen. Let's resolve today to choose to be a participant and make things happen. So draw that line in the sand. We are going to dig into all the right stuff in real estate, get you headed in the right direction, and get your 20/20 off to a great start, especially everything about selling your home. So grab a pen paper, whatever cup of coffee sit back, relax, and we will get things started for you.

Keith: Well, speaking of 2019, you know this better than anybody else. A lot of people in the second half of 2019 maybe even before that had planned on selling their home and it did not quite happen the way that they had hoped. Now you offer something completely different that other real estate companies do not. Let's learn more about that. Let's get that message out.

Jason: Right. So yeah, it is a frustrating thing sometimes in my world because we obviously spend a considerable amount of money advertising in. We put the message out there and let people know that they have options. But yet it is not on everybody's radar. Selling a house or buying a house is not on your radar until you are going to sell a house or buy a house. So we are just noise in the in-between time. Right?

Keith: That is true.

Jason: The attention is not there, but when the attention does get there, what is frustrating to me is we kind of get lumped into well, just a real estate company is a real estate company is a real estate company, and this is why car dealers spend so much money telling you that hey, my Ford truck is the best or my Chevy truck is the best or Dodge or whatever your flavor is, and they make these distinct characteristics. At the end of the day, it is a big box of metal to get you somewhere. Right?

Keith: That is true.

Jason: Yeah, at the end of the day, no matter what they look like are, I guess you do purchase safety. Well now we do not. We purchase features.

Keith: That is right.

Jason: Do you have Wi-Fi?

Keith: Does the radio do lots of neat, cool things?

Jason: Yeah, right exactly. Pretty soon there is going to be probably some audible thing that tells you what is going on your Facebook post because obviously we do not want you looking your phone while you are driving.

Keith: I have no doubt.

Jason: Yes. It will just be something that tells you what is going on, right, or who knows?

Keith: Well, it does it for your text messages already. So why would not it do it for your social media?

Jason: That is a good point.

Keith: Exactly.

Jason: We do have many, many options for our owners out there, and really as far as I know, one thing that does separate us for sure from everybody else is we have multiple options to offer you when selling your home and not just sticking a sign in the yard and kind of see what happens. We have a very purposeful plan for each one of our programs, each one of our systems that has really been worked out over 22 years in business. The good thing for you folks that are thinking about coming in and selling your home this year, you are not the guinea pig. Somebody else blazed the trail for you. So to all my past clients, thank you, and I am sorry. It is things that you do learn, and you learn to perfect things over time, and you see things especially when you are doing a high level of volume, you can see things quicker. Let's face it. If you are only selling 12 houses a year, you will see stuff, but it is going to take a while. When you are doing a couple hundred sales a year, it moves quicker.  What I can see in a month or two weeks, most people will not see in the year because they will not do enough transactions to see trends and or to see really where things are going to. How quickly technology is changing in the world is also affecting real estate as well. We can kind of break that down, and what it actually going to looks like for you the listener because that is my most important audience right now at this time. The owner of the house has a lot on them. A lot of decisions to make. Should I change things? Does it make sense to do this? Is it wise to put my money into certain areas of the house and then just the stress of why are they moving? You compound that with a lot of different decisions, and it really can become a stressful time. That is why you want to hire someone that has got some experience. That is going to walk through that and not just 12 times. They have done it a lot, hundreds and hundreds and maybe even thousands of times that they have had that experience. The key with our systems is we want to provide the option of our guaranteed sale to our clients. So once we determine what the goal is and what really kind of where you are going and then price. Price is key. Price is key in lot of things. Price is key in that how many eyeballs you are going to get. Price is key on will I even be able to do this if I do not get this price for my home. Now the downside with how most people come up with the number and kind of where they go is they decide what they are going to do based upon a hypothetical number, and then the hypothetical number does not necessarily work out and they did not really have a plan B. And so we approach everything from perfect world. Let's face it. Most moves start with a dream, right? If everything works the way it should, this will be the result. That is the first option.

Keith: It does not go that way often.

Jason: Then we get to everything else which is like most of the time called reality. Right?

Keith: It is a little different.

Jason:  Yeah. So here is what I noticed. I saw this over the years, and fortunately because we have sold a lot of homes, I saw it pretty quick and then what we what we determined was hey, if we actually had all this data up front before someone pulled the trigger and made a decision, they could make a better decision. Right? They could make it an actually educated the decision, and now they will not have to react to the market. They will not have to react to whatever is going on. So let's find all the answers to the issues up front deal with them proactively, and now we are not on our heels trying to figure out what to do in a reactionary standpoint. Reaction typically costs money. Right? Who wins the game? Typically, the people with the best, what, plan, offense, systems. Right? And then everybody else is reacting to what they are throwing at them. Right?  If you go back and look at most major sports events who is winning? It is really the ones that had they had the systems and the plans upfront, figured out, ready to go for the opponent that they were getting ready to play, and the opponent's playing catch-up the entire game. Right? They are on their heels. They are always in the defensive mode and it makes a huge a difference. It is the same thing when selling your home. We need to figure out all the pitfalls upfront, approach them, address those issues, and now we have a concrete plan. But it goes back to people want surety too, and so that is why we came up with the guaranteed sales program. So that people have a guarantee knowing up front what it is. Basically, what does the number look like that I am going to walk away from this house no matter what happens. And people like that answer. They like to make plans that are certain, right?

Keith: Well, he called goes back to like you said because you do so much volume and you sell so many homes. You have such a better feel for what is out there. No other real estate agent can do this because you have got the data it all goes back to the information. You have got that, not that these are bad people. They just do not have the same amount of information you have.

Jason: That is right. That is right. Yeah. It would be no different if I went to PTI today. There are planes leaving everywhere, right, and I just showed up and said I want to go. They are probably going to know want to know where. Right?

Keith: Yeah.

Jason: Well, I want to go to Dallas. Well they are probably are not going to send me on a plane headed to Europe, right, because it is not going to give me the result that I want.

Keith: Right.

Jason: I want to go Dallas and not across the pond, and so there are specific destinations that they have and you have a specific destination, and we want to get through there efficiently. We want a direct flight, not three layovers, right? Because those three layover flights stink. If you ever went to the West Coast from Greensboro, you may know what that is like. It is a lot of different, a lot of different stops, a lot of different turns. Most people do not like that they like that direct flight. One way, get it done. Let's do it right the first time. Let's get there. And so that is what we want to do.  With selling your home it becomes very personal, right? It is one of the biggest personal, emotional things that we have. It is definitely one of the most expensive. Having the guarantee is very, very, very important. Now one of the questions I get a lot is well, how is this work? There have to be rules. All these different types of things, and we do have some simple rules within our guaranteed sales program. And they are pretty simple like your house has to be built out of wood. That is pretty good. Right?

Keith: Yeah.

Jason: We do not do manufactured homes, mainly it is because of the financing rules of how that works. It has to be a house in which can be financed. That is another rule that we have. So it has to be in a condition in which a bank would make a loan on it so that we have, so if Keith wanted to buy this home, he could go to the bank and get a loan, just everything checks out like it should. That is pretty simple.

Keith: Yeah.

Jason: It is like any buyer in the world would want, right, for the most part. We do cap the price at $750,000 and the reason being is because I have well, we sell enough homes. I have done the math, and if I offered a guaranteed sale on million-dollar homes, I would own every one of them in the Triad. 100% because of our timeline in which people want to move, and you go back and looking at a lot of most million-dollar homes take anywhere between 30 months to 60 months to sell. And if you are over $2.5 million, God bless you. It is a tough challenge out there because your buyer pool shrinks, right? A 2.5 million and up, you are one one thousandth of a percent in our market. There just are not that many residential properties over in that price point.

Keith: Makes sense.

Jason: So it is a very, very, very small number. So, $750,000 below we are 100% in our  wheelhouse. There is enough demand. There are enough buyers. There is plenty of activity and is something that we feel very, very comfortable with. Once we established these rules, the owner also has a few rules that they have to follow. So those are the guidelines. These are going to seem really dumb and you might even laugh a little bit because you are like really Jason, these are rules?  There is a reason –

Keith: I was going to say if there was not a reason for the rule, you would not have made the rules, so clearly there is a reason.

Jason: Yeah, so rule one. You have to let us show the house. That is kind of a rule. We need to get buyers through the door when you are in the guaranteed sales program. I would assume you would want them anyway, and I know it seems like simple, but I had an owner one time that, she was in the guaranteed sale, so we came up with the price, she agreed, and she was an older lady, and we had five, six, seven people request to see the house, and everyone of them got turned down. So I called and was like is something wrong? Are you sick? What is going on? Was there a fire or a flood? What is going on? Because it just not normal. You put the house on the market, people want to see it. They go see it. Right, and she says oh, oh, no, nothing is wrong. I said, well, we noticed that you turned down the first five, six, seven showings. She goes oh yeah, I got to thinking about it. That is just a lot of trouble. I am just perfectly fine with what you are going to pay me. I am good. Okay, did not see that one coming. So, we had to regroup, right? So, okay. We had to put a rule in you do have to let us show the house. Rule number two. Again, seems simple. If you get an offer higher that what I am going to pay for the property, you have to accept it.

Keith: Okay.

Jason: That seems simple and logical.

Keith: Yeah.

Jason: Same kind of situation. I had a client one time that we had a guaranteed sale at agreed-upon price, agreed upon offer. Everything was great. We got another offer, and she rejected it. It was, I do not know, maybe three or four thousand dollars higher than what I had agreed to pay for the property, and I was just like this is better. She goes, oh, yeah, but I could not do that to you. I gave you my word. I would sell my house to you. You were first. They will just have to wait. No, that is not really how that works. I want you to get more money. This is a good thing. It took me about an hour to get her to agree to accept this other offer because in her mind it was going back on her word. It was just a huge integrity thing for her, and we did not have the rule in place, so she did not know up front. Now we have the rule if you get more money, you need to accept more money. I think that is a pretty fair and simple rule. Right?

Keith: Works for me.

Jason: Absolutely and the third rule and there are only three, if you have to take the house off the market for, let’s say 20 days, then that time that we cannot market the property gets added back into the contract. Simple enough. So, are guaranteed sales process is 120 days of marketing time and then we would buy the home. So if you took it off the market for 20 days, then we would just bump that time out 20 days. Our goal is that we sell it in the first week and that it is a non-issue. But if we have to have finality and a guarantee, we are in a position to be able to do that. So those are the rules of the guarantee. We have many more products and many more options for you outside of our guaranteed sales program. You are listening to the Jason Bramblett Real Estate Show. We are going to take a quick timeout. We will be back in just a minute.

Welcome back to the Jason Bramblett Real Estate Show. So before the break we were talking about the guaranteed sales and some of the rules that are out there and guidelines and different things. We keep it as simple as possible. The best way to figure out if your house is going to qualify as just give us a call at the office.

Keith: Well, but here is a quick question. What if I have already purchased another home?

Jason: We do have that we have that were folks have already purchased they which leads into that whole plan A, plan B thing we were talking about at the beginning to show. Plan A was hey, I am going to go ahead and buy this house because I know my house is going to sell really quick and then it does not. Right? I have this conversation a lot. I went ahead and bought another house because my previous real estate agent told me they would sell my house. No problem at all. And then now it is 180 days later, a year later and

Keith: Two mortgages.

Jason: -- and two mortgages.

Keith: Which never is a good deal.

Jason:  Never a good deal. Here is the thing, guys. You do not have to wait until you get to zero in your bank account to call me. Okay, call me anytime. Right? Because yes, we do sell difficult situations. We do work through those things, but everything is elevated when you are on fumes, right, everything.

Keith:  You do not have time to do anything.

Jason: Yeah, so if the gas light came on and it is like hey, you are going to be on empty in 19 miles, maybe call us when you are a hundred miles out. Okay, if you can.  Time is critical. Can we do it? Yes, it is just the urgency that we are going to have to move at sometimes you are not prepared for. The other thing, too, is most people have slipped into somewhat a mild case of depression, anxiety, and you are not thinking clearly. We have to work through that first to get you to zero, right, and it is okay. We are trained to do it. We deal with this every day. It is not a problem. But it can make your life even easier if you do not wait. Right? We deal with that a lot and we have that situation. So depending on the price of the house, we do have a condition in there that you buy your next home with us. However, on a case-by-case basis, I will look at any property for our guaranteed sales program because we have other companies that we own that buy-and-hold real estate for rental property and those type of things. So, if you had a $699,000 home and you already bought one, and you are hemorrhaging because you got two mortgages, I may not be able to help you. But if you have a $150,000 house in a great school district, and I believe it is going to be a phenomenal long-term investment for our holding company, we absolutely would talk with you. We will look at all of it because even on the $699,000 house there could be other opportunities or options that the property has outside of just being a house to sell. So we look at all those things. We do not say no until we just cannot answer. We cannot get any more answers to our questions than we need. So we keep everything moving forward.

Keith: Well number one question because I guarantee all of our listeners are thinking this what about price? How competitive when you are making an offer on homes, how competitive are you?

Jason: Yeah. I think it is human nature just to assume it is horrible. Right?  Because that is how

Keith: It is easy.

Jason: Most people do not know how to invest in real estate, and so they think that well obviously, you just make a crappy low offer and that is how you win. No. The offer actually has to be great for all parties to have a mutually beneficial deal. Right? And it has got to be good for everybody to make sense to do it. So yeah, the price has to be right for us, but the price has to be right for the seller. The other thing is remember this you are in control. You could just say no.

Keith: Right. You do not have to take it.

Jason: You do not have to take it. It is simply an option. Sometimes we cannot even offer because maybe the house does not qualify from a financing standpoint, from a construction standpoint. If you and your brother and your other brother did 14 additions and you never pulled a building permit and nobody is a contractor, that could be a problem for us. Right?

Keith:  Back to permits.

Jason: Yeah back to permits. We do accept dirty gutters though that is okay. We have moved past that. We have moved past that.

Keith: We have got a guy that will clean them.

Jason: We got a guy that will clean it. So the best thing I can tell you is give us a call and let's talk. We have been doing the guaranteed sales program for 16 years now, and I think it is less than five people have not been able to accept our offer. We make the fairest price that we can possibly make because that is the only way it is going to work for you and for us both. To get more information you go to Jason Bramblett dot com or give us a call at the office 553-0796. Everybody have an awesome weekend. We will be back here next week. You are listening to the Jason Bramblett Real Estate Show.

Posted in Radio Show
Jan. 18, 2020

Do not get stuck paying two mortages

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning, Triad. Hope everybody is doing fantastic today. A lovely, crazy, spring-like week we have had. It is the weirdest weather in North Carolina. You are listening to the Jason Bramblett Real Estate Show. But hey, if you do not like snow, pretty awesome start to 2020. I just saw one of my buddies that I have up in Fargo posted a photo of somebody, their car is frozen. It is 24 below zero and he is like, yeah, those people are not going anywhere. 

Keith: Look, I grew up in Michigan. So I kind of am feeling cheated out of winter now. I am not talking Fargo. I do not need that.

Jason:  Yeah, that is crazy 24 below. 

Keith:  I have lived in Michigan.  It happens.

Jason:  It does. It does.

Keith: Not often, but it happens.

Jason: Yeah, he actually told me this this time of year they have a special drill bit that they have to use to basically go in and like an auger to get their real estate signs in the ground because the ground is so frozen. There is no chance you would ever get one in the ground, and that is just business as usual. No big deal.

Keith: Why not?

Jason: We are still trying to figure out how to drive in the rain down here, but we are getting a lot of practice.

Keith: That is true.

Jason: Here is a question. We have talked a few things about goals and different things since December, but the question is this going to be your year? You are maybe to upgrade, downsize, buy your first house. How about getting that on the Bucket List. Right? Buy that first house you, maybe a bigger home with an amazing yard, or maybe it is time to step up and get that farm and join us agricultural lovers out here that have plenty of yard ornaments as I like to say. The people I know that actually farm they look at what I have and they are like, yeah, that is not a farm, man. You got land with yard ornaments.

Keith: You can farm anywhere. I live in the city and my neighbor has chickens. You can do it anywhere.  

Jason: That is true. Actually, it is interesting. In the past five years, it is kind of weird. You could be downtown Winston, Greensboro, High Point, and everyone once in a while, you will catch a little chicken out of the side of your, it has become a little bit of a fad which –

Keith: True story.

Jason: It is kind of cool. Everybody has got their thing. Right? But whatever you are dreaming about we have got a solution for you, and really if you can think about it, we can find it. If you could think about it and we cannot find it, then we can find somebody that can build it for you. Only then you need to have is some vision and some money if you are going to build especially. Especially if you are going to build unique. You need to have money you are going to build unique. We had a client that we had looking for seven years for this really unusual specific property. And the cool thing is we kept digging and digging and digging, and they did not even go in the house. It was like drove on the property. This is it. No other questions need to be, it was just they just felt the energy when they got there, did not really care about the house, did not make any difference. It was the perfect spot. The perfect setting and everything else. Now, we do not really want to work with everybody looking for seven years. We hope that we could find you, well, we know we can find you something much sooner than that. Keith get even attest to that, right?

Keith:  Yeah, I know.

Jason: Yeah exactly. So but if you have something really unique, something that is not your just go-to standard house in the Triad area, give us a call. We have folks that go out there and we will beat the bushes. We will do whatever we can to find what you are looking for. The cool thing about it is it is actually fun. It is cool to take those unusual desires that people have and be able to steer them in the right direction and get them there. So are you ready for the next step? That is the question for 2020.

Keith: Well, let's kick off the show or at least let's continue the show, I guess –

Jason:  Let’s do it.

Keith: -- with an email. Steve writes Jason, I have recently been transferred out of state. I have fallen behind on my mortgage payment. I believe I am just about $6,000 behind. The bank has suggested that I start a short sale. Is this something you can do? I listen to your show every week. Thank you.

Jason: All right. Well, hey man, very good. Well, yes we can, and it is interesting how many of these calls that were getting. It is kind of one of those things like jumbo shrimp. It does not make sense. It is like the market is, inventory is low. Homes seem to be selling quicker than normal. We are seeing a little bit more of a lag and days on the market building up. But in this type of market, you would not think you would run into short sale situations. And here is the thing. Life is happening to people all the time in many different ways even back in the good old days, whatever that was. But I remember in 2004, 2005 when you could breathe and get a mortgage. Right? We still had an unbelievable amount of foreclosures. We still had the beginning of short sales because there are just things that happen in people's lives. One size does not fit all. You say well man, just put your house for sale. That does not necessarily work for everybody. There are their situations others. Sometimes there are physical limitations. Sometimes there are limitations with the home itself. The disarray it is in. So even though the market is good, it does not necessarily mean, it does not fix everything. What our friend Steve here has figured out is just because the market is hot right now, depending on when he bought his home, he could be in an upside-down situation. Right? Short sales are an option that the bank has created to really help people avoid foreclosure. It also does save the bank some money because a foreclosed property is much more expensive to really take through that process, to carry and deal with that. So for those that do not even have a clue what a short sale is because you did not live through the last transition of a real estate or were not in real estate or have no clue or were not in the housing market, a short sale is simply this it is the mortgage company agreeing to take less than what you owe on the house in a predetermined amount and then the home is sold for that amount. Sometimes you have to pay it back. Sometimes you do not. It just depends on the type of mortgage you have and the situation that you are in. Hardship plays into that. You do have to qualify for a short sale. So a short sale is not for folks that just have the money and choose not to pay their mortgage. That typically is not a qualification. There needs to be a hardship. A job transfer, moved out of the area. It could be anything from loss of job to death to divorce to whatever. There are a hundred different reasons out there, but it has to be a reason other than hey, I am making plenty of money and I just choose not to pay anymore. That one does not typically work. Unless things get really, really bad, and then the bank does not even care about that, but we are certainly not there this time.

Keith:  Not right now.

Jason:  Not right now anyway. So yes, short sale is something we can definitely handle. We probably did over a thousand of them in the last decade through the downturn in the market. And here is where we see the biggest issue with some people just do not understand. How could you be behind on your mortgage? How could you not sell your house and just get out of it? Why do not you just sell it, get rid of it? And it goes back to how did they finance it.  Did they do a 100% loan? If you put no money down in the transaction, it takes years and years and years of ownership to pay down the mortgage enough to get the zero when you go to sell it is going to cost you 7-10% to sell your house. That is just period. By the time you factor in real estate commissions, closing cost, moving expenses, trucks, all the things that you have to do, it is not an inexpensive decision. And if you are at a 100% of the value of your home and you have been in it for a very, very short amount of time, most people just do not have the equity, and they do not have the savings. We are still a paycheck to paycheck, live month-to-month society. Most people do not have $50,000 sitting in their bank account just to be able to write a check to sell their home.  Very, very few. So the less you put down. This is what we teach. The less you put down the longer you need to stay. You cannot buy short-term with long-term financing. It does not work. Actually if you look at a 30-year mortgage you really do not start making traction on your mortgage payment until about year 11, and then you really start to see it exponentially compound. But if you do a 15-year loan, you are putting more to principal than you are to interest especially with rates the way they are today. Financing on a short-term with a low rate really is the greatest way to build equity as fast as you can or at least pay down your mortgage. So yes, home values have gone up, but typically they are not going up seven, eight, ten percent a year. There are some markets where we have seen that, and there may be arguably even some neighborhoods within the Triad that have seen that in the past say 24 months, but it is very few. It is not the entire market, and then the problem with that is when you take a market such as, it happened in certain areas of Raleigh certainly in Charlotte, Austin, Texas, Miami, you have got these micro markets in states where home values did go up 10%. Colorado be a perfect example. Colorado has been unbelievable. The property values in certain cities in Colorado have doubled in four years. That is amazing. The problem now nobody can afford to live there.

Keith: Yeah.

Jason: The local people are the ones that actually lose in that deal. So you had a house that was worth a hundred grand and now it is worth 200. You are like awesome, but you cannot afford to sell it because everything is 200 grand, and your wage did not go up in proportion to the value of the homes. This is where you see when you have outside influence, which is what they have had in Colorado. You have people bringing money from other states that is not local, that artificially jack up that value and then you get in the situation where okay, I bought a home. I bought it for 200, which is kind of artificially inflated. and then it stops and then it starts to go down very quickly and then your $200,000 home is now a hundred eighty. Okay, but now you need to sell and you thought you are in there 200 grand. You have got a problem.

Keith: Yeah, you have got a tough spot.

Jason: You got a tough spot. So not only did you lose some inequity, it is still going to cost you about 10% to sell the house, 7-10, somewhere in that range. So when these life things happen, and I have seen more people lose their home actually because of what they thought really was going to be a benefit, a job promotion or relocation. Yeah. Man, what a blessing. I got this new promotion and I am moving the Texas, but I cannot sell my home. They end up paying them higher rent, which you cannot get out of either, right, and then you got the mortgage. No matter if it is rent or mortgage, people typically pay for where their head is laying. Right? So if I am in Texas and my house is empty, I am probably paying my rent in Texas and not my mortgage in North Carolina, right?

Keith: Yeah.

Jason: That is typically how it works. That is a scenario we have seen over and over and over again. It happens really daily with the moves and the transitions, but when we have a downturn in the market, then everything is kind of exponential. Kind of a long story to get to really Steve's point, which is yes, we do work with pretty much every bank under the sun to do short sales. We are doing short sales right now. We have people that are in those situations. We have the ability, if they have the equity, we do also have our 72-hour offer option in which we could take your home to an institutional venture capital company and see what they would give you for it as well. Typically, they do way better than the We-Buy-Houses-type properties out there. Those type of investors, because they are buying on scale and when you are buying a hundred thousand houses nationwide, you typically can pay a better price than the guy that is only going to do four.

Keith: Sure. It makes sense.

Jason: The scale of what they need to make is a lot different. You can call our office anytime, 553-0796 to get information about how we can help you with that short sale.

Keith: Can you talk a little bit about to you talk about your 72-hour deal? Let's say you do not want to short sale. You do not want to foreclosure. Can you talk a little bit more about that if you are going to go that direction?

Jason: Sure. Well, another option. So if someone is being relocated, typically they do not want to keep the house. We look at it three ways. First way, can we sell it and just get you to 0 and out of the house if you do not have the equity? The second thing is can we get somebody else to pay your mortgage? Could we rent the house –

Keith: Right.

Jason: -- and buy you some time? Right? It may be, we will use even numbers because it is radio. It is easier. Let's just say your mortgage payment was $1000/month, but you could comfortably pay $500/month still. What if we could find a tenant they could pay a 100% of your mortgage and then you take the additional $500 and you pay your mortgage down over the next two or three years. Eventually what will happen is either the market will improve or you will have paid down enough on your loan at least you could sell it and get out of the house. Yes, you are going to lose all the money. but there is no guarantee of owning anything. You are going to make money, right?  How many people have ever bought a new car and actually sold it for more they paid?

Keith: No one.

Jason: I do not think anybody I have not met him yet. Yeah, actually who has even bought a used car and sold it for more than you made? Other than people that are professional car flippers. Right? Most people do not. It just does not work that way, right, and there is no guarantee with your home.  Typically, once anything is used, it is just that. Used. There are two different prices. Right? The new price and the used price. Typically people do not pay as much for used stuff. Right?

Keith:  Correct.

Jason: Yeah, like 99.9% of the time, right, until it becomes really, really crazy old and only like 1% of 1% of people want it and they call those antiques.

Keith:  Antiquing.

Jason: Yeah. That is a whole different deal.

Keith: Also known as rustic.

Jason:  Rustic. Yeah also known as boring, but I said do not take it out on anybody else. So yeah antique and I have never really got into it, but I get it. Everybody has got their thing

Keith:  It is a thing.

Jason: It is a thing. It is cool. It is cool. The history of it is cool. But anyway options. Yes, so can we sell it? Can we rent it? And then of course, yes, we can go back to the short sale. We do have the 72-hour off offer option. Maybe you have some money saved, but you do not have enough but maybe one of our institutional investors can help you out. I have actually been very, very pleased with the offers that they have made. Yes, we 100% can always sell your home for more than they are going to offer. No question about it, but for a lot of our owners and a lot of folks listening out here, making money on their homes is not their primary goal.

Keith: Time is money sometimes.

Jason:  Time is money. The convenience of not having to deal with doing it the normal way is more important to them than an extra $5,000 or whatever the number is. They are willing to pay for the convenience as we talked about many, many times. So all right, you have got many, many options. The first option, the first step to everything is always this give us a call.

Keith:  Get it started.

Jason: Yeah got to get it started. 553-0796 or go to Jason Bramblett dot com. We will do this. We will take a quick timeout. We will regroup.  We got more of your emails coming your way. You are listening to the Jason Bramblett Real Estate Show.

And we are back. You are listening to the Jason Bramblett Real Estate Show. So before the break we were talking about short sales options, whether it be the 72-hour option. You guys probably see all over the place. We do have a few billboards up.

Keith:  One of our listeners happened to see one.

Jason: Yeah.

Keith:  There is one right outside our office.

Jason: Oh, that is right. There is yeah, there is one, right?

Keith:  Yeah, we see it every day on the way into work.

Jason:  That is right. That is right.

Keith: It says Jason I saw your billboard, well actually I have noticed a lot of the billboards and that is true. Could you tell me more about the 72-hour program? Thank you, John. And he says PS, I have owned company for 30 plus years. Great job on the advertising.

Jason: Good deal. Well John, thank you for that. And hey, this is 22 for us. So we are catching up. It is amazing that it has been 22 years. It seems like just does not seem possible.

Keith: When you are doing something you like.

Jason: It is just yeah.

Keith: It goes by.

Jason: I know somebody asked me the other day. How many hours you work? I do not keep track of that. That is not even in my wheelhouse.

Keith: That is the sign that you should be doing what you are doing and that you enjoy it when you do not have the slightest clue whether you worked 40, 60, or 80 hours because you just do it.

Jason: Yeah, now maybe some days on my wife's wheelhouse. Yeah. I have gotten a few calls at the office before. She is like, it is 8:30. I am like, oh it is dark outside? Iam sorry. I will be home in a bit. Sorry. This is like I kind of get in the zone and then everything kind of just goes away, right? So but yeah, it is a fun time of the business because we have got so many more options than we used to have. When I started there was an option of this:  sell your house keep your house or rent your house. This whole idea of flipping homes was not even a thing. It really was not even a thing. Most people bought homes and kept them as rentals or something. And now we have Wall Street involved now. We have these venture capital companies where large institutional groups are coming in and buying homes and keeping them as investments. And so we have been fortunate through me just traveling all over the United States and meeting with different people and companies, and actually I think we have done a really good job with three or four really, really solid companies all that have a little bit different goals. We do have some that are the buy and flip, but a lot of them that we want to work with because we find they will pay more for the property are the buy-and-hold type. They are actually wanting to add it to a portfolio and keep it as a rental property. And typically, they will pay a premium to somebody that needs to get profit out of it in a shorter amount of time. So those are the ones that we have aligned ourselves with. The process is pretty simple. We are going to list your home, put it for sale just like we normally would, and then we are going to give you options, multiple. You are going to have the option of selling it traditionally just like we would sell anybody's home. If you want to look at the 72-hour offer option, we will get that for you and get it in writing and hopefully have multiple options for you to consider. We also have our guaranteed sales program where I personally will guarantee to get your home sold or I will purchase the house and all that is determined upfront. The price that I am going to pay or we agree on is all determined ahead of time. So we have many, many options. The whole one-size-fits-all thing is not really what the consumer is looking for anymore. And so we do have those options out there. It is really not anything really major. The start of this is not anything different than what we normally do. We are going to send one of our representatives out to the house, meet with you go, through the plans and the system for the 72-hour offer. They are going to go ahead and take some pictures. They need to know some information.  They want to know how old is the roof and how old is the heating cooling system and what is the square footage? Are you upside down in your house? So, they do actually want to know your loan balance. They do not care what you owe. It does not factor at all into what they are going to offer you, but I have seen where some people are severely upside down and one of the questions they need to know is okay, if you accept our offer, do you have the money to bring to closing because they are going to tie up lots of resources and equity and time and all that, and they need to know that you can actually sell house.  We never used to have the ask that question at all and then the state actually put it in the form, into our standardized forms because about eight years ago, we had real estate agents that would show up at the closing and the owner would have to bring a check for like 15 grand and the owner just thought that the bank would just let them keep on making payments. It does not work that way. So anyway, you got to ask the right questions. Right, guys? It is all about those proper expectations. We will go through the condition. They look for anything that is structural. Sometimes they will do a home inspection, but they keep the process very, very simple. So if that is an option you would like to talk about, you can go to Jason Bramblett dot com, reach out to us or give us a call the office 553-0796. We are here to serve you. However, we can and we look forward to speaking with you. Everybody have an awesome, awesome weekend. Be safe out there and we will be back here next week. You are listening to the Jason Bramblett Real Estate Show.

Posted in Radio Show
Jan. 11, 2020

Getting the house ready

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason:  Good morning. You are listening to the Jason Bramblett Real Estate Show. So 2020. It is here, ready or not. It did not wait on you. I do not know if you noticed that, but it is right here. It has started. You got your plan. We talked about resolutions. We talked about goals. We talked about targets. All those type of things so lots of twists and turns in this thing called life that we deal with. You may already be in. You are only what, 10, 11 days into the new year and you may have already experienced some of those twists and turns and all that, but today we are going to focus on real estate. We are going to dig into that. But before we do, we are just going to pick up on, we talked a little bit about resolution. We talked a little bit about having targets and setting those things up. One of the things that I want to share with you that it is helped me and helped our team is creating tomorrow today.  What by that is just having a plan, right? So at the end of today create tomorrow. Line up what it is you plan to do.  I am going to challenge you for the next 21 days if you are looking to get on task or to get on track and you do not know where to go or what to do, this can be a huge, huge help. For 21 days, why 21 days? Well, they say that is about what it takes to form a habit or to change a behavior. You need 21 days of consistency. We talked about being consistent. Things are going to come at you, no doubt. Absolutely going to happen. But this way it will allow you to get your most important, your most meaningful tasks done first by creating tomorrow today and having that plan of action out there. So that is it. 21 days and then get started and then do me a favor. At the end of 21 days shoot me an e-mail. Let me know how you are doing. You can go to Jason Bramblett dot com. Click on the top righthand corner. It says it is an email icon says contact us. Send me an e-mail. Let me know how you are doing, what your struggles are, or if you are winning, let me know that too. Some of you need a challenge. Hey, I am challenging you, and for the rest of you, I dare you. How about that? 

Keith: Yesterday was an important day. Did you know that technically when people make New Year's resolutions they last till January 10th? So if you have survived to today, you are ahead of the game. It is all gravy from now because you have gone longer than the average person if you got to today.

Jason: You are halfway to the habit point.

Keith:  Right.

Jason: Or to the change or to whatever you want to call it. It does. It takes 21 to 30 days to just get that consistency and then that consistency takes over, and it just becomes part of your programming.  Think about how many things we do every single day that we do not even realize we do.

Keith: Right.

Jason: Everything from checking our phone to whatever it may be that are just programmed in our life that we do and hey, we it is we wire ourselves for that. It is just what we do.

Keith: So let's get the new year off on a good start.

Jason:  Let’s do it.

Keith:  Let's say that I am looking to move around June. I got some opportunities. I am looking to move around June. Question is it is now January. When do I put the house on the market? How do I get started? What do I need to be doing now if I want to get out in June?

Jason: Yes. Let's talk about it. Let's back up just one little step though. Let's talk about even before that plan or even before what it is you may want to roll out. It is kind of like the pre-step if you will. The first thing we really want to do is even though you want to move in June which summer seems like hey, it is summer. It is a long time away. Well, it is actually not. It will be here before you know it. Let's get a plan together. Let's look at each and every action step that we need to take, and meeting us now gives us something that is crucial and that is unpressurized time to get prepared. The perfect time to get all your ducks in a row is before you need to have all your ducks in a row, right?  Having just no pressure. If you could control anything most of us would control stress. Right? Not having a lot of pressure on us to make quick decisions or whatever those things that we need to do.  This way we can customize an action plan that is specific to the target you want to hit, your strategy or however you want to word that. So there are always projects to get done around the house.  If you own a home, there is always something to do. If you own a farm, I can assure you there is all it says a lot to do. There is a lot to do. There is a lot to do. Sometimes it is simply both things you can do yourself, and then other times it is things where we actually need to call in the professionals. We need to get someone that is qualified, a plumber, electrician, whatever it may be, and there are areas of your house that you have not seen in a while like your attic. Maybe that is a bad example because most of you just saw your attic for the first time in a year when you took your Christmas decorations down and yes, by the way take your Christmas decorations down. It is time. Okay? I know some of you guys are like hold onto that thing forever. Like hey I put it up. It is staying up till the end of January.

Keith: It is the Most Wonderful Time of the Year, Jason.

Jason: Yes. Yes. Well, you are weird. Take down your Christmas decorations. Okay? Or your crawlspace and that is one that we see a lot of times that people do not, they just do not go down there. You do not go down to your crawl space. You do not deal with everything is going on in underneath your house. I remember we had a seller that had a seemingly awesome house. Everything look good and on the outside it was great colors. Everything is in this perfect place and all that. And we say spotless essentially, and I say we really need to take a look and get this house pre-inspected. He is like giving me a little bit of kickback. It is like man, this look around everything is in its order, its place, whatever. Except the crawl space which he had not been in a while.  Well after we got into about $18,000 worth of termite damage --

Keith: Ooh,

Jason: Ouch. Yes. He realized that there actually is some value into looking under your home and seeing what is going on and the places that you do not go off and maybe it is a start of a roof leak that you did not know about or maybe it is you have termites and these issues that are discovered, well these take professionals. These are not treat yourself or do it yourself things. What is really huge about that is most buyers would have walked away from $18,000 worth of termite damage.  Most people would they were like, whoa, this is not the house for me. I am going to go find something else. Instead of that deal being blown and wasting time and not being able to hit their target or exactly when they wanted to move by having that unpressured time, we were able to get everything fixed, resolved, and kept everything on target. Had we not done this pre-inspection and had we not done this, we would have lost critical time to their goal.  It would have been an absolute disaster. It seems simple, which most things do, but like we talked about. Simple, sometimes it is hard. Right? Simple is not all the time the easiest thing to do. So having that strategy, having that plan is key, and it is critical. At the end of the day, it is your house. You know it better than anybody else but sometimes it takes a plan, and it takes some critical things to get out there and really get ahead of issues or resolve or whatever you want to call it to make sure that you are going to be able to stick to your plan in your time frame the way that you want to do it. So we have got a punch list of some stuff that we are going to go through we are going to walk you through all those things and get you through where to go and how to make the right plan and get everything set. So what I want to do is want to take a quick break, get a pen, get a piece of paper because you are going to need it when we get back because you are going to make a list of all the action plans and ideas and different things that you need to do to get prepared. So if you go to Jason Bramblett dot com, give us a call the office 553-0796, but when we get back have that pen and paper ready to go and we will have you a list of things that work on to get that house ready to rock and roll. We will be back in just a minute.

And we are back. You are listening to the Jason Bramblett Real Estate Show. So I said get a pen, get a paper, get a pencil. Of course, the other thing too is you always go to the website. Listen to the show again, and we transcribed it for you. Make it even easier. So you go to Jason Bramblett dot com, click on the blog and actually all the show notes will be right there for you. So for all you critical, engineer-minded people, you can fact check me later on everything that I say, right?

Keith: I have a quick question.

Jason: Sure. Everything you just said makes perfect sense because clearly if you can identify any problems or any issues, because if buyers start doing it that is really going to throw a wrench in the process. So it just makes so much sense. So, why does the majority of people typically just throw their house on without really knowing what is up?

Jason: Yeah. A lot of it has to do with lack of experience. If you think about today's owner, you have got two different people out here. You have got the person that has never sold a home before and then the other group is most people have not done it in ten years. So you think about that it is not a product that you that you are participating in often enough to have a frame of reference to even know what to do about it. And unfortunately, the same is true of many real estate agents fall into the same trap as well. The buyer is going to inspect the house. So why should the seller spend any money on it? And that is probably true. The buyer may very well do that but isn’t it better business and smarter to actually know what you are selling to know what is right and what is wrong. Of course, it does when you are buying, but also in order to sell the product at the highest price to be able to say here is what is right with it. It would be beneficial, right?

Keith: But what does not make any sense is clearly any buyer who comes in, almost 90%, 99% are going to get a loan. So they are going to have to get a home inspection. Even if they do not need to get a loan, they are going to want a home inspection. So this stuff is going to come out. They are going to find it. So why not find it first? Do the pre-inspection know what you are dealing with and then move on.

Jason: Yeah, and it really comes by it to its lack of experience on both parties really. I have found actually some of the more expensive homes we have sold have actually had some of the bigger issues. Just because it looks shiny and beautiful and pretty does not mean there is not a hidden issue underneath. This is why we need to be proactive, and if you do not do it that way, then you are reacting to everything.

Keith: Yeah.

Jason: Certain buyers are not going to, they are going to react differently to issues. Right?  If you do not set up proper expectations with what that person is buying, then you cannot be really surprised when they walk away from the house.  If you think about the most important days on the market are your first 30 days. If I put a home under contract in 10 or 15 days, and then it is 10 or 15 more days before maybe the inspection happens. It is three or four days before they make a decision. I have lost my 30 days, right? It is gone. I cannot get that back no matter what. So there is a footprint of my home being for sale now all over the Internet and there is also a history of it was on the market, then it came off the market, and then it is back on the market. Now if we are playing clue, what is the first thing most buyers are going to ask right?

Keith: I want to know what is wrong.

Jason:  Yeah. What happened?  There are two stories to that answer, right? There is the truth, and then there is everything else. Typically, it is like the truth is oh,the house at $18,000 worth of damage and termites and all kinds of stuff. Not your most best-selling feature. Right?

Keith: Well, and I have heard you say it on the show before that quite often if there is an issue with the home, it is cheaper for you to fix it than the allowance you would have to give or the money you would have to knock off the home for somebody to be interested.

Jason: 100%.

Keith: It is way easier for you to find the best contractor and get it done right. It is going to make you money.

Jason: Absolutely. 100%. You think about certain types of repairs. It is what you can see, and then it is also what is beyond what I cannot see. When I am doing an allowance, if I am the buyer, if I am the person who is going to be risking the money, I am not only going to look at what I can see, I am going to factor in some budget in there for what I cannot see which may not even be an issue.

Keith: Yeah.

Jason: So, once I peel back the first layer, I open it up on my oh, wow. Okay. Well, no big deal money in my pocket, right? Because I plan on worst-case scenario. Where if you were the owner andyou just took care of the issue you would have appealed the first layer of the floor, okay, well the subfloor is in good shape, do not have to spend that money. We will get this resolved, get it fixed. Everything is great. The other thing, too, is from an ethical disclosure standpoint. You only have to disclose what you know is wrong. If there was a problem with the house in which you corrected, there is no more problem. Therefore, there is nothing to disclose. Right? It is kind of like a roof leak. It is not that you are trying to hide it. It is like yeah, my roof leaked 12 years ago when Hurricane Floyd came in.

Keith: I fixed it.

Jason: I fixed it.  I am not going to disclose that. It was 12 years ago.

Keith: Right.

Jason:  It has not leaked since. No problem, right? Whatever tree fell on the house all these things. But we approach it as a lot of times like, I love these Nationwide commercials, right, Mayhem.

Keith: Oh yeah.

Jason: What a great little story that tells in 30 seconds. It is like, hey man, life is going to happen. Right? Mayhem is out there looking for you and what is the other one? Allstate, Farmers has got the crazy things that they cover right?

Keith: Yeah, like a car in your roof.

Jason: Right exactly. It is like the new one I have seen is the guy is playing the air drums, gets a little excited, steps on the accelerator and crashes into the building. Right? And stuff happens. It is called life, but in real estate, there are no emergencies. We can take some time. Most people do not just wake up and like oh, okay, got to move tomorrow. It just does not happen that way. Typically if that is the case, you probably did not make that decision. The sheriff is at your door and he is like locking you out of the house. Right?

Keith: And you have a program for that. It is called the 72-hour offer program.

Jason: This is true. We do have a program for that. So here is the thing. Most people like surprises. Good ones.

Keith: Yeah, these are not good.

Jason:  What they do not like is the mold surprise, water in the crawlspace surprise, problems with HVAC surprise. These are the type of things that also plant seeds of doubt in people's mind, too, because there is a buyer, if I am putting an offer in on Keith’s house and on the appearance, everything is good, but then I get this report and there is a little bit of problem in the crawlspace. The heating and cooling system is not quite on par. This does not look quite right. I start to wonder did this guy really take care of his house. Did he really maintain it or am I going to end up with all of his problems? And for some buyers that is enough that they will just walk away.  Again typically, when people put their home for sale, they do not come to us with okay, hey, I want to sell and just whenever it happens. I am okay with it, like whenever the stars and moon align. I will not even do anything until my house is sold. No. Typically, we have a plan. This is where we want to move. I am starting a new job. I have to be here at this particular time. There is a marching order and a cadence to exactly what they want to accomplish. Most people are not very free-spirited in I do not care. I will just move when I move type thing.  That is plan A. Right? Have a plan. What if plan A does not work because of something now that is an issue that you are reacting to and you are losing valuable time? Then you look at what most people look at this: two mortgages. Right?

Keith: That is no fun.

Jason: Or a mortgage and rent because maybe I cannot buy another home until I sell mine, but my employer really does not care and they are like, hey your new job is in Tennessee. If you want it, get there.  Now I either got hotel expense or additional rent expense or whatever it is. My out go is increasing tremendously, which is burning up my savings, and we know statistically in America, we do not have 18 months of savings in the bank. Most people in America, even though we are the Most Blessed Nation, I think, on the planet, still live paycheck to paycheck.

Keith: Yeah.

Jason: Right.  There is not even an option to do this for very long because most people have limited to no savings. Actually, they have savings. It is just unfortunately instead of calling it a bank account, it is called Visa and then you get into a worse hole. Right?

Keith:  Yeah

Jason: So you want to make sure you have those plans. So when is a good time? You are thinking about June. I am saying we need to talk now. Jason, I am not retiring and moving for 18 months. Great. Let's talk now. Unpressured plans are fantastic, and we are still going to be here in 18 months. Hopefully, you will still be here in 18 months, and we can come up with an action plan now that lets you systemize and get to where you want to go.

Keith: So if I am hearing you correctly, even if you are not looking to sell your home for six months, maybe even seven or eight months, the best business decision you can make is to start the process now. Start looking at your current home and see if there are issues long before you are hoping to have it sold.

Jason: Absolutely. It is even better than good. It really is the right way to get your home sold for top dollar. Now, I always speak from a top-dollar standpoint and that may not be what you want me. Some people do not care and that is fine. We are always going to look at best case scenario, how to get there as efficiently as we possibly can, and then we will adjust our plan based upon your goal. You are the employer, if you will, and maybe where we want to take you is not where you want to go and that is okay. We can come up with a plan for I am not doing anything as well sell it as is but there is still benefit the knowing what is wrong with the house because now I can go to Keith and I can say hey, look here is the house. Here is the price and we know it has about $18-20,000 worth of termite damage. You in or you out? And then Keith now can make an educated decision that says you know what? It is not really what I want, but the location is good, and I am willing to take on that project. So if you get me a discount on the house, I will fix it up for you. I will do it. It could be everything from appliances to a roof, to HVAC all those things we look over. This is what 22 years in real estate gives you. Experience and walking through all these minefields and knowing what are the hot button issues for the buyer. It is not just the shiny objects all the time because shiny gets them in the door and attractive and it is pretty, but really it is the bones of the structure that cause the biggest issues.

Keith: Well, and it is the 22 years that you guys have been doing it and your success that allows you to offer all these different options, too.  We mentioned the 72-hour thing. We mentioned in some cases you have worked with buyers to make renovations. You have a lot of different options and things you can do in your pocket that not every real estate agent has.

Jason: For sure. We have seen what the market is demanding, and we have created programs and systems around those things. Not everybody has the capital or money that they need to be able to fix things, and if it is within reason and it makes sense for the company, it makes sense for the owner, then we will take a look at stepping in there and making those repairs to get the home in a condition in which will sell for top dollar. It is not for everybody, but it is certainly an option. It is one that we have out there. So I am big into giving that luxury experience because most people think luxury is a price point, and really it is more of the experience than it is the price. We have created a system in which we can really tailor that to any price range home and help you get to your target, your goal.  That is what we want to do. You can go to Jason Bramblett dot com. Click on the email icon.  Send us some information or call the office 553-0796. We will be happy to answer your questions and to serve you and your family. Looking forward to talking to you next week. Everybody be safe be a have a great week and we will see you next week.

Posted in Radio Show
Jan. 4, 2020

Get 2020 off to the right start

Jason Bramblett Real Estate Show Podcast 

Click here for link to podcast

Jason: Good morning and welcome to the Jason Bramblett Real Estate Show. Hope everybody is doing excellent today. Well, it is here ready or not. The New Year, the new decade, and man, I tell you this one has been interesting. I have heard more chatter and more talking about maybe the new year because it is the new decade as well. And that is obviously a big milestone for everybody. So what are you going to do? That is the question. What are you going to do about it? Right? What are you going to do about it? What are you going to do differently? I think it is a new year. It is a new year. It is new year, but now that when it is a new year and a new decade, it is like this gets extra, I do not know, points, if you will, I do not know.

Keith: Do I make like two resolutions now instead of one? How does that work?

Jason: Maybe, maybe that is it.

Keith: I can fail on two of them.

Jason:  Well, we are going to talk about that. We are going to talk about that. You set that up perfectly. We are going to talk about that.  So, are you going to make something happen? And or are you going to be doing the same thing? On January 1st, 2021, are you going to be sitting here going okay, this is the year that I am actually going to get XYZ done because it did not work last year, another failed attempt, and, are you ready to start recreating your life? That is the key thing. Or have you figured it out yet? One thing I figured out is this: time waits on no man.

Keith: True story.

Jason: It is going to happen whether you are ready or not. You cannot get it back. There are a lot of things you can get back, but you cannot get that time back. So the cool thing is I have got a great secret I am going to share with you today. It is a secret that will improve your life tremendously. It is one of those things that can get you, well, whatever. What is it? You want new job, new house, boat, second house? How about better husband, a better dad, better health, all those kind of things, and it is a really an amazing secret. And so you are going to want to make sure you stick around to get the secret you want to go make sure you get a pen, some paper, full attention. Grab the extra strength coffee today, right. That way you are wide awake. You are ready to go. But I have the answer that you have been looking for. If you woke up today and are listening to this show, it is not by accident. Something made you tune in to say hey, I am looking for something different. And guess what? I am going to share with you that secret on all you have to do is keep listening and stay tuned. But you have to pay attention, too. But now on with the show.

Keith:  It is a lot of work.

Jason: It is a lot of work. Could be.

Keith: Promise me it  does not have to do with gutters.

Jason:  It does not have to do with gutters.

Keith: Okay, good.

Jason: Well, all things start with gutters.

Keith: That is right.

Jason: This is true. We may talk about gutters, but it will not be the secret. How about that?

Keith: I am excited to hear what this is. So 2020.

Jason: Yeah.

Keith: Look into your crystal ball, your Magic 8-Ball, whatever you got over there. What is it? What do we have in store for?

Jason: I shook it so hard I got to wait until all the bubbles clear up the see what it says, right? I always loved those things. But you go to kids’ birthdays, somebody always seems to get the Magic 8 Ball, right, and you just shake the fire out of it, but then you cannot even see what it says because all the bubbles are in the water and you got to wait till it clears up.

Keith: Patience.

Jason: Patience. There you go. I am going to give you the answer. I am going to give you this, and we are going to do it after the break. There are a few things real estate I want to dig into, but I am going to give you that secret, and here is the thing. It is easy yet hard. It is simple but challenging, and it is going to be worth the wait. So 2020. Hey the crystal ball real estate. Here is the deal. It is going to be a beauty contest in a price war. That is the bottom line. This is everything, all indications, all metrics, everything we are seeing, not only locally here in the Triad, but all across the United States. Most areas in the United States have already started to experience this. The buyers, your customers are not going to be playing games in 2020. And the reason being is inventory is one and good old-fashioned cheap money, and when money is cheap well things go good and bad all the same time. They go good in that money is cheap. It allows more people to buy more things. But it also lets people do dumb things with money. Like overpay and because why well, it is got 50 bucks a month. Who cares? Right? It is 50 bucks, and in our world that is not that significant in the big scheme of things for some people. Some folks are spending that at lunch. You go to the movies. I took the kids. We went out to the movies.  Now I will say they did make the chairs much more enjoyable.

Keith: They sure did.

Jason:  Much easier to sleep through the bad movie now. Right? It is you kick them back and you relax, and so they at least enhanced the experience to justify maybe. Oh, that money that they charge which is unbelievable what some of it is. So, here is the thing with buyers. They do not want to lift a finger. They want this move-in, ready-to-go product, and it is multiple reasons. One, a lot of the skill sets that were taught in my generation in school are simply not taught, and so people today, unless they are just kind of intuitive and good with their hands. They do not know how to do the simple upkeep and fix up of homes, right? It is kind of a dying art, and it is just a business or a trade that is kind of, the sweat equity the do-it-yourself is not there. And the reason being is it goes back to what we talked about before. Time.

Keith: Yeah.

Jason: We are using our time differently. We are using our time in different ways. Where it used to be a lot of the stuff we would do ourselves or figure out ourselves, now, it is just hire somebody to do it because my time is more valuable to do XYZ, or of course jobs have changed and so the skills that people do now are more technical less I wonder what the ratio of White Collar Blue to Collar jobs are in America compared to 30, 40 years ago. I bet it is significantly different. There are a lot less labor intense jobs out there. I would think.

Keith: You just explained everything when we looked for a house. We have been a new house for about six months now, and I did not want to work on a bunch of projects one because I did not know how, and number two I do not have time. Neiter my wife or I have time so we went looking for the most perfect house we could find so you just explained us exactly.

Jason: Is it everybody? Because there is always, nothing is absolute as far as real estate goes for sure. There are many absolutes out there. Real estate is not one of them, but about 75% of the people I think that are in the market fall into this demographic. Location still can be any condition in the house. If you want to be on this particular area, no matter what, then you will take whatever is offered no matter the condition of the house because you are buying really the location and not necessarily the home, and it is just what will work for you. And so that is the way you do it, and of course investors will take a home in any condition and upfit it to do whatever they want to make a profit turn into a rental, whatever, and that is about 25% of the market kind of fall within that niche. I always like to look at top dollar. You can get the home sold, but are you going to get top dollar? I only look at like best case scenario. Let's get the most out of all of our efforts. That means you have minimized by not being prepared you are missing at least 25% of the market. Hey, if you are not that concerned and maybe there is still a shot out there and you are not going to do everything. Well, maybe you have eliminated 50% of the market, but think about that. If you have eliminated 50% of the market that means you have also eliminated opportunity for the most, right? Because in order to get the most, it has to appeal to the most people. So less people you appeal to, the less money, you are going to get. It is really just simple economics of supply and demand. But here is the other thing. You better have another word associated with your offering if you are not going to have that turn-key, ready-to-go thing, and that is value. Value is not the same as discount. But value means you need to be priced in a way in which whoever buys your home sees a great value in them doing the work or them putting in the effort to gain equity, to gain something. There has to be an up value to them, if you will, not necessarily to you the homeowner in the fact that you are unwilling to change or unwilling to do. Well when you are unwilling that means you are not going to appeal to it the most people, right? And when you do not appeal to the most people, you do not get the most money. So they want equity and or money for their trouble just like you would. Right? It makes total sense. It almost makes too much sense. It makes sense unless it is yours, right, and then it does not apply.

Keith: You want the most money and sell it the fastest. Both are going to be a struggle.

Jason: Both are going to be a struggle. That is true. So if you want to well, if you are not willing to do that and what the consumer wants, that is fine. You are either going to give it up in value or you are going to get maybe, it is going to be timing, whatever the case may be. But you have got to offer the product that the consumer is looking for. The great thing is we know what that is. They tell us every single day. We see it every single day. We see it in what they purchase. We see it in what they inquire online. It is amazing. Our best looking homes get the highest number of hits, get the most showings. It is actually, it is so ridiculous. We have a home right now that is really excellent house location and all the feedback is as simple and as petty as it is a great house, but we do not like the floors. It is a great house, but just not exactly what we were hoping for in the floors and the floors and the floors. The floors and it is every single feedback, and I am, of course, I tell the owner got to redo the floors. I do not want to spend the money, and will we get it back? No, you will not get it back. But it is always cheaper to do it yourself or have your contractor do it then to give an allowance.

Keith: True.

Jason: Because the allowance is well, that is a made-up number. Right. The other thing, too, is if we fix the issue we can go back to all those 15, 20 people said the floors the floors, the floors, and now we have removed that obstacle, right, and come on back and say okay now we have got this resolved. So now they are back to interested. What did we do? We created more demand. More demand, more money. Right? It is really not difficult economics, but there has to be a willingness, and sometimes there is just no way to do it. Right? I have no money. I cannot do anything with the house, and there are those type of situations, and depending on situation, we may have an answer for you. We have helped many of our owners actually upfit their home to get the most money, and we work out terms and conditions that make sense for the company and make sense for the owner. So that may be something we could talk about. Yeah. There are always options out there.

Keith: Well, okay. So here is the for instance. Let's say you have got a house. I am not talking about a 50-year-old, 60-year-old house that is got the burnt orange rugs.I am not talking about a real rough area, just an average home, nice home, good home, but maybe you have been in it for ten years. You have not really done anything because you got it turn-key when you got. Have not done a lot to it in 10 years. Even with that average home, do you think you are going to see an issue selling it in 2020?

Jason: I would say if you have your home for sale and you are asking that question, you already know the answer.

Keith: You would not ask the question.

Jason: That is right. Exactly. It is interesting when we go on interviews and speak to owners and looking at considering working with them and all these things. The questions they ask especially when their homes have been for sale, the question they ask you is telling you all the problems. Yeah, right?

Keith: That is a good point. 

Jason: It always does. It always does and I am like, okay. The reason you can sell the house before was because of the floors. How did you know that? Well because you asked me what you thought about the floors, right? You point out that, you ask the obvious instead of just addressing it. There is no magic wand. Is there one person out there that will finally accept the house in the condition? Sure, but that does not get you the most. That settles for whatever is available. Right? So there is a difference in that. It is interesting. So one thing about the buyers and what we see with this generation that is purchasing homes now, and it is going to be really interesting when the Baby Boomers in mass number start selling because the millennial generation they do not even want the product at all. They do not want anything to do with McMansion, the 5,000 square foot home. It does not fit anything about their lifestyle, their desires, nothing. They actually are more simple, compact, do not need as much home, want fancier, nicer gizmos and gadgets and tech and all that, and they will give up square footage for tech. They will give up square footage for better quality. Where a couple generations ago, it was all about the size, the big rooms and all that. So it is interesting how things change over time, but you have got to have the pop.  That is the key and you got to have something that is going to grab their attention and really just bring them into the house. So it would be the equivalent today, I think the best thing I can tell you is you are trying to sell a VHS tape to a generation that does not even know what that is. Yeah, you are out here talking about your great new franchise called Blockbuster. It is going to be amazing. It is going to be wall-to-wall of nothing but tapes and you can go pick out any movie you want for two bucks and we will loan it to you. First of all, you got to come to us in the snow, sleet, rain, and whatever, pick up the stupid carton, pay for it and then go all the way back on then bring it back. Right, and today if I explain that business model to Millennial or whatever the other Generation Z or whatever it is.

Keith: Y, Z.

Jason:  Yeah something, they would look at me like I was from Mars. Like I do not even go to McDonald's. They bring it to me now. Right?

Keith:True story.

Jason: You could not pitch that business model to anybody under 30, and they not look at you like you are from Mars, right? But yet that is what some of you are doing with your house. You are out here pitching your home to a generation that goes yeah, I do not get it. This does not, I do not even understand this, and so you have to change the message to speak to their audience, to speak to the masses. So, all right, we are going to do this. We are going to take a quick timeout. You are listening to the Jason Bramblett Real Estate Show. You can always send your emails, questions into the office. Go to Jason Bramblett dot com. Click on the email icon and we will share your email on the air if we feel it will reach the masses. We will be right back.

Alright, so we are back. You are listening to the Jason Bramblett Real Estate Show, and today philosophy in New Year's resolutions, right? So it is a little bit of both. Right? Now real estate focus, but then we have to have a few rabbit trails every now and then to keep it interesting. That way when people tune in thye are like what in the world what just happened? What was this? I thought we were talking about gutters and shingles and houses and moving.

Keith: Well, we were.

Jason: Yeah. Well it is true.

Keith: But now what is this secret the that you so talked about earlier?

Jason: That is it. The break is over. You have got your pen. You have got your paper. Now we need to break it in. Here is the thing. I said it is easy yet hard. Simple, but challenging. So are you ready? Just like zen in with me. Right? So it is be consistent. It is if you will really, really think about that statement in 2020, I promise you your results, this will be your most productive year to achieve any target, any goal, any resolution that you have. Maybe this is the first time you have ever heard. Maybe you have heard it a hundred times. And we have a saying at our office: says easy, does hard. What do you mean just be consistent? Duh?

Keith: Yeah, it makes perfect sense though.  Especially in today's society the shiny ball syndrome is out of control. You cannot walk more than five feet without being distracted and that goes for big, major things too. So that makes sense.

Jason: Yes, consistency. Here is one gem that will change your life. If you want to change your life starting today, since you have already woke up today, so tomorrow do not touch your phone for the first hour of your life.

Keith: I wish I could do that. I have got to try.

Jason: Just do it.  It is a decision. You know what we say about try in the office? It is the polite way of saying no. I will try to come over to your house later. You liar. You are not coming to my house. You have already made your decision. Just own it. No, I am not coming to your house. Good. Thank you.

Keith: Hope is not a plan.

Jason: Hope is not a plan. Hope is not a plan. Here is the thing. When you do it consistently, and then when you do pick up your phone, do not go to the negativity. Go to something positive. That is a whole other show, but consistent. It seems so simple, yet it is so challenging. There is nothing else that you can do this year that will change where you are going other than being consistent, and you got to do it with purpose. So you need to write this down. I have talked to this many, many times over the years. If you just talk about it, it means nothing. Write it down and then it becomes well, it becomes consistent when we write it down. If you need proof, go to our lovely friend Google which is an action item. All right, and just Google consistency and then you know how you have, so on Google it says all videos, images, la la?

Keith: Yeah.

Jason: Click on, put consistent in there and then click on images and then just read some of the wisdom from the most successful minds ever on the planet. Everybody from Benjamin Franklin to Confucius to whoever, head coaches of whatever teams, and one of the things you are going to see over and over and over are quotes by them about being consistent. Who is the best football team in NFL? It just so happens to be the one that is the most consistent. It is not the one that has the best players arguably. I will get loads of hate mail on this. I think I have heard most people say statistically the Cowboys are the best team out here.

Keith: True, and they get very little out of it.

Jason: From a from a talent standpoint. But here is the thing. You could take the highest level of talent on the planet put it together make a team, and if they are inconsistent, what do they have?

Keith: Eight and eight.

Jason:  Yeah. Eight and eight. They got nothing.  Eight and eight, you might as well lost every game. I bet you that is how they feel, right? So anyway, more into next year. Go to Jason Bramblett dot com. Be consistent. Be consistent. That is the key. That is the word of the day. Go to Jason Bramblett dot com. Shoot us your emails, your love mail and all that or you can call us the office 553-0796. We will be back here next week. Make it an awesome day.

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