JASON BRAMBLETT REAL ESTATE
JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and for the next half hour, we are going to be talking all things real estate. We invite you to join in on the conversation if you have a question or comment for Jason this morning. We are live in the studio. So, give us a call. (336)553-0796. That is (336)553-0796. And we welcome to the microphone the man who has got his name on the show. Mr. Jason Bramblett. Good morning.
Jason: Good morning. Good morning.
JB: How are you?
Jason: The key word today is pollen.
Jason: It is out there.
JB: Lots of it.
Jason: And it is rough.
JB: Yeah, it is.
Jason: It is rough. So, I have got Brad here with me. You guys know Brad Firestine. He has been on the show a couple of times because I do not know how long the old voice is going to last, and dead air, well, dead air may be as good as listening to me. I do not know.
JB: No, no, no.
Brad: I know you were in New York City last week, so I thought maybe you were breathing in too much taxicab exhaust or something like that.
Jason: That, that, it is a little hazy up there. It is a little hazy. Not as bad as some of the places I have been, but there is definitely a little hue of diesel fuel floating in the air for sure. But we have got Brad here to help me out as a good wing man does. Of course, JB here as well. So, we are going to dig into your question this week. All the things that pertain to buying a home. Actually, this week is kind of the topic we are going to hit. Well, from some of the emails, we are having some struggles out there. So, we are going to see if we can help you through that. How do you deal with these rising interest rates? How do they affect you? Where should I be getting preapproved? Where is the best rate? Those type of things. And then of course, is it important? Should I have a real estate agent working with me?
Jason: And so, we are going to dig into is that smart? Should you do it all by yourself? Do you need a professional? We are going to kind of lay out some of the pros and cons there. And then, of course, with market transitions, everything kind of gets interesting. Fast pace, well sometimes mistakes get made. The quicker things go, and you hear the highway patrol reports? Speed was a factor?
Jason: Well, it kind of works that way in real estate. Speed was a factor, and sometimes those mistakes you do not feel them for a few years. And we are going to talk a little bit about that. Lots of things happening today. You can give us a call. We are live in the studio. (336)553-0796, and always you can go to Jason Bramblett dot com and shoot us your questions.
JB: Okay, well let’s get started. Speaking of questions, how about an email?
Jason: Let’s do it. Yes, sir.
JB: All right. Let’s jump into the first question here. It says, dear mister, by the way this is from Pat, Mr. Bramblett, we have made three offers on three different homes with three different agents, and we have lost every time. You have heard that one before, I bet.
Jason: Oh yes.
JB: Well, none of the agents worked with you. However, we have a meeting in your office with Dave this week. The homes are going above asking price. We have limited cash, and we are not able to offer as much or better than others. What can we do to win a bid and get into a home? Signed a frustrated Pat.
Jason: Frustrated Pat is out there for sure. It is Pat. It is Susan. It is Jim. It is John. It is a lot of people right now are frustrated because of the tight inventory. And unfortunately, the banks do not necessarily tend to line up with the market sometimes and where these appraisals go. So, we have people that are willing to pay maybe more than asking price, but because they have to get a loan, the bank has to agree to that. Well, since 2006 happened, they still have a pretty good memory about that.
JB: They sure do.
Jason: So, they are reeling those numbers back. So, we feel your pain. We know about this frustration. We hear it all the time. Here is what we have found. Most agents do not listen, and this is really a key thing, Pat, so they really just open doors, right, and fill out paperwork. You need to get with a professional that is going to be in there and is actually going to truly guide you through the process. They are going to listen intently. They are going to make notes. They are going to help you through your frustrations. It sounds like you have potentially either worked with agents that may have the listing and or agents that are just filling out paperwork, okay, and they are not digging into what is the issue. Because you should not have swung three times and missed all three times. Right?
JB: Right. Right.
Jason: It simply just should not be that way. The good thing is our team here, they are trained to help you. They are trained to help you get out of this frustration that you are in and get to some resolution, which is owning a home. That was the goal, right? That is what you wanted to do. That is why you have made these offers. We just helped someone just like you, Pat, and they are now in their newly-constructed dream home. Of course, they are sipping on coffee this morning listening to the show as any good, smart, wise person in the Triad would do. Right?
Jason: Absolutely. But new construction can be a way in which to overcome some of these bidding wars. There is no bidding war on air. If the house hasn’t even been, if there is no dream of the house, it is just a vacant piece of dirt, there is no competition there for you, and you can make some choices. Now, the timeline may not work. There are other factors in there. But if you are tired of getting, maybe you are kind of frustrated with the competition of a resale home, new construction is something to look at. There is not a lot, there is not going to be any real competition in building on a lot, and you have got the time to make the decisions and do that. There are a couple of other things you can do as well.
Brad: That is a great point. Especially in new construction because you get a lot of options in new construction. You get the option of picking out the right cabinets for you. Picking out the flooring. Picking out things that are maybe important to you that you are not going to find in a pre-owned home.
Jason: The good thing about new construction is they actually will let you pick out and screw up your colors.
Brad: Right? Exactly.
Jason: You can pick the wrong carpet, and they do not care because you are going to live there, right? We always get that from the sellers. I do not want to put new carpet in because I might make the wrong choice. I can assure you that your shag carpet is not what they are looking for. Any choice that you make will be better than this one. And at the same time, it is the same with the paint colors. Right?
Jason: It is interesting. New construction I have found in a situation like this can be a good avenue to go. But there are also other types of real estate that you can look at too.
Brad: Right. Right. Pat, you can look at some other options. One other option is to look at some of the overlooked homes. So, most homes fall off the radar after around sixty days, and that is something as a buyer’s agent, you can instruct your buyer’s agent to actually go back in time and say hey, let’s look at some of these older homes that have fallen off the radar, and let’s just take another look at them. You can go back through all the sixty-plus-days-on-the-market-homes. We have found that our clients, we have found them some real gems in some of the older inventory.
Brad: So, you might consider that as one of the needs, and many homes have great structure. They have great bones. They just need a little work. They just need a little touch-up, and if that is something you are willing to do, you can find a real gem in the rough.
Jason: Yes. Absolutely. A little paint, a little carpet, those types of things may not be, well, it is kind of like going to the new construction, right? You are going to pick the paint. You are going to pick the carpet, the tile, the whatever. Well, you can do that in a resale house as well. There could be some more differences, and you might have to have some more cash to outlay down the road to put those things in there. However, it is an option. One thing, too, it is interesting. With the speed of the internet, and we operate sometimes under these assumptions that I created a search on this website, I put in my criteria, and the first day I was really, really excited. And so, there were two hundred houses for sale, and I went through all two hundred, and I narrowed it down to my three or four. I went and looked at those, and they did not work out. So now all I am doing is I am going and looking at what is new. Because in my mind, I have eliminated those other two hundred.
Jason: Well, you probably did it so quick you missed some really decent, quality homes in there.
Jason: The days on the market can kind of be a detriment in that there can be a really, really nice home out there for you, but you have discounted it thinking well, I have already pushed all those to the side. Now, I am just going to watch and see what comes up every day on the market.
Brad: What comes up and pops up every day.
Jason: And this is part of the reason that we also have this little bidding war going on on some properties because that is what everybody is doing. Everybody is just like forget all these ones that have been on the market for sixty days. It did not work for whatever reason. Even though you did not go in it, you discounted it for some reason, and now all you are watching is the new stuff. But so are a hundred-other people in the same price range, and this is why we are having some of this artificially inflated real estate market. Technology is actually kicking our tail in that way.
Jason: It goes back to you have to have the guidance of somebody that can walk you through the process and having a professional there that can listen. Because you should not know how to do this as well as us. You do this once every ten years. We do this hundreds and hundreds and hundreds of times a day for our clients.
Jason: We certainly should know a lot more about how the process is, where to go find the houses, where to kind of really shake the bushes, if you will. Really it is the bushes that are right out there in front of us. It is just we have got that instant microwave hey, I have already checked that out; now I am moving onto the next thing or moving on to another website or whatever the case may be. Or the presumption is that house has been on the market for sixty-three days. Everything I hear on the news. It is a fast-paced market. The good houses are selling and dah, dah, dah. And you presume that it is a bad house just because it has been on the market for sixty-three days. Well, maybe it was under contract once, and it fell out of contract because the buyer could not get a loan, and it tied it up for thirty or forty-five days. So, it was actually on the market for ten, and then it was off for forty-five, and now you are sitting at fifty-five days. You have discounted it thinking something is wrong with house. There was actually something wrong with the buyer.
Jason: But the days on the market have creeped up because of that. Because it does not start back over today at six. Every day counts in real estate, even when it is under contract. There could be a lot of behind-the-scenes numbers that you do not really factor in. There is nothing wrong with that house, right?
Brad: Right. And you will see that on the listings. When it gets relisted, you will see that from the listing agent. House is back on market. No fault of the seller.
Jason: That is right. Yeah, that means it was the fault of the listing agent that talked them into taking the offer that they did not have an approved buyer. Oh, was that out loud? I am sorry. My bad. My bad. That is called doing your due diligence, guys. You have got to dig in there, and sometimes there are circumstances that happen. I have had clients pass away before the closing. I have had people lose their jobs. I have had circumstances that everything under the sun, and sometimes, it is just not preventable. If you are not here, you cannot buy the house, right? That has happened before.
Jason: But only like twice in twenty years, so that is not too terrible. But it should not be happening all the time, and most of the time it comes down to somebody did not do enough due diligence to really press in and make sure can this person do exactly what they said they can do to buy this house? And they did not find out for thirty-four days. Or the house does not appraise. That is another issue we are seeing right now. Where we have these lovely little bidding wars going on, and some of these houses are getting pushed up, the price is getting pushed up so high that the bank is pulling back and saying no, we are not getting, we are not going there. Well, if the buyer does not have the cash money to make up the difference, there are three things that can happen to this. The seller can come down in price. The buyer could pay the difference in cash or the deal blows up. I guess you could meet in the middle or whatever. But typically, one of those three things are going to happen. Most of the time, depending on the price range, the deal is going to fall apart because the buyer cannot come up with the money. They cannot. It is a due diligence thing. Did the agent vet out the buyer to make sure they had the cash to go over the asking price, so we did not run into this issue?
Jason: A lot of times, what I find is, no, we had our fingers crossed.
Brad: Yeah, that is about it. On both sides. On both sides. On the listing agent’s side and even on the buyer’s agent side because everybody is crossing their fingers going I hope this appraises.
Jason: Yeah, exactly. Like it is some mystical number that is coming down from Zeus or something. It is numbers. It is not that difficult. Let’s do this, JB. Let’s take a quick time out. We are going to go pay some bills. You guys can give us a call. It is 882-7874. And, of course, you can go to Jason Bramblett dot com. Shoot us over any questions you have, and we will answer them right there on the air next week.
JB: All right. Stay with us, folks. You are listening to Real Estate 911 with your host Jason Bramblett. We will be right back. (in/out music)
Jason: Welcome back to Triad Real Estate 911. I am Jason Bramblett, your host. You can give us a call. It is 882-7874 here in the studio. So, we have been kind of digging into the buyer pitfalls of real estate right now in this seller’s market that we are in. But I wanted to dig into a couple of other things, Brad. Let’s discuss another issue that we are seeing that kind of affects both sides, but it is kind of affecting more owners or sellers or want to be seller than anybody else. It is the folks that want to downsize, but they have to sell first. It is a real fear out there that hey, I really feel like my house is going to sell, and then I am not going to have anywhere to go.
Jason: What am I going to do? This could be somebody moving up in price as well. I know I think you have got somebody in that situation where they have got a home and they want to upsize, and they are very confident, and I think that we are very confident that the house is going to sell, but they are not really seeing anything on the other side that is exciting to them yet.
Brad: Yeah, it happens all the time. I do. I have a situation where I have someone that has a home that is somewhat right in the sweet spot. We call it within our office the sweet spot. It is in that range where we know when that home goes on the market, it is going to get sold within days.
Brad: So, the problem is we have to find some place for these people to live when that home sells. It has become kind of a, it is a stumbling block because they want to upsize, but they are not able to find the right home. It is taking time. Seriously, I have been working with these people for probably about eight, ten months now.
Jason: Yeah. They have got a real specific property they want in an area in which that specific property really is not, does not show its head up there every now and then. So, we have got some interesting qualifications there. But one thing you can do in these types of situations is you can always negotiate a longer period of time in which you do not close for sixty days.
Brad: That is exactly it.
Jason: You can also negotiate in that the seller has the right to occupy the house for a certain amount of time until they find another property.
Jason: So, you do not have to just be out the day of closing. You do if you do not negotiate it right.
Brad: Right. Right.
Jason: But that is type of thing that is, you have got to know the right things to ask of the client to pull that information out. What is important, right? We make sure that we are digging into those things. I actually have not left anybody homeless in twenty years, which is really good. I will say, too, there are also people, their search criteria are not like I want to move to Motel 6 until I find the right place either.
Jason: They really kind of go from Point A to Point B.
Brad: They tell you in real estate school everything is negotiable.
Jason: That is, it.
Brad: There are always ways around
Jason: Let’s take a quick call. We have got Jen in High Point joining us. Jen, how can we help you today?
Jen: So, I have a question for, a buyer like Pat is looking for I do not know what her criteria might be. But say I have a home. It may be a little bit older. What would be the most cost-effective ways I could update my home to be more appealing to someone like Pat who, if it does not have all the bells and whistles of a new construction home? What are the best ways I can spend my money in order to make my home appealing to her?
Jason: Sure. Does it have wallpaper?
Jen: No. No wallpaper.
Jason: Well, okay. That would have been the first thing because that would have been a dead looser right there for sure. What color, what type of cabinets do you have in your kitchen?
Jen: They are white.
Jason: They are white.
Jen: With nickel knobs on them.
Jason: That is perfect. Okay. Paint colors? Multiple different colors throughout the house? Or just one thing?
Jen: Well, it is mostly gray everywhere except for a couple of places. Some rooms we are planning on redoing just because we need to. It is mostly gray on the inside, which I guess is a popular color right now. I am thinking of changing it because I find it a little bit cold. But I do not know if I should do that because maybe that is not a popular idea.
Jason: Gray is definitely in. I would probably stick with it. So far, Jen, your house does not sound that outdated. So where is the problem in your mind?
Jen: The kitchen is a little on the small side and we have an issue with a bathroom where it is very tiny. The one downstairs is very tiny. It needs to be updated, I think. Also, we are lacking curb appeal in some areas. So, we recently put on a new roof, and we have ordered new shutters, and we are having new gutters put on. Are those good ways to spend our money in order to attract people?
Jason: That will definitely attract folks. If you do not mind me asking what do you think price range your house is in?
Jen: Oh, one to one-forty.
Jason: Oh, that is perfect. Yeah, a new roof is like gold in that price range because now you have really given those folks a good hopefully fifteen, twenty, maybe even thirty years of
Jason: Yeah, that they, one less thing to worry about. Those big-ticket items in that price range is something that really does scare folks. Curb appeal. I will tell you this. If you go watch any of the house flipping shows or you just do research on that, one thing that we typically see with an older home is the landscaping ridiculously too mature.
Jason: Instead of holly bushes, you have holly trees. Right?
Jason: And so, the landscaping looks like it ate the house. The most common thing you will notice in all the house-flipping shows is they rip out all the landscaping and they go back with very simple three and five-gallon plants.
Jason: It will make your home appear much, much bigger. It really updates the house tremendously. That is something you could take a look at. I do not know about the ripping out part, but a lot of that you really could do yourself. Of course, if you ever need a reference on a landscape company, we can definitely help you out there as well. I say the white cabinets is not a big deal. Countertops. What do you have?
Jen: Well, they are blue Formica, so I think we need to do something about that. And the backsplash matches the countertops. I am thinking we are going to have to do something about that because it is pretty outdated.
Jason: Gotcha. So, there are several, granite has really come down in price. That is something you could take a look at. There are lots of great colors that go with white in the granite. Quartz is another one you could look at. Granite is probably a little bit cheaper, but just know that some of these things that you have done is just going to help you get the house sold. Unfortunately, there is not a real return on investment there. So, watch your equity and cash flow and stuff like that.
Jason: Now landscaping is pretty good return. You are probably looking at sixty to seventy percent of what you would spend you would get back. The granite countertops. It really will not get you anything. They have just become so common these days.
Jen: Right. That makes sense.
Jason: But it is also something that is a pretty simple fix. You are definitely on the right track. The roof was a great move in that price range, and I would just say I think you are right on the right track there for sure.
Jen: Great. Thanks. I appreciate it.
Jason: Yeah, absolutely. Enjoy the rest of your weekend, and Happy Mother’s Day if that applies.
Jen: Yes, it does. Thank you very much.
Jason: You betcha. Thanks so much. So, Jen brings up great, great points. It was good to ask the questions. We just talked about asking the right questions. She is asking all the right questions. And we could come out if you would like and we can walk through the house and even give you some more tips. Visually, we did really well on radio to describe the house, I must say. You have got a radio quality there, Jen. You maybe should be a guest to come on. But it is something that is difficult for a lot of folks to do is to visualize. I did not realize this. I have done a lot of studying on visualization for real estate. Only about ten percent of the people in the world can visualize how furniture will look like in a room, what different paint colors will be. You actually have to get there, you have to do it. That is why staging is important. All these things are key.
Brad: I am not in that ten percent.
Jason: You are not in that ten percent? Gotcha. You are just like it is what it is. That is all I can see is this right here.
Brad: In this room, will my couch fit?
Jason: Yeah. Gotcha. And hopefully so. Right? Hopefully so. Those are things where we can come in and help. We have some really cool tools that can help you figure out what stuff looks like. Staging rooms. Painting rooms. All those types of things. But it is all exciting, and this time of year, things are moving quick. But be cautious on moving fast. Remember, speed is always a key factor in most accidents on the highway and in real estate. Okay? Slow down. I know things, you feel like you might lose something, but take it from me, slow down. It is going to be okay. There is another house out there for you. We will be back here next week right here live on the radio. You can go to Jason Bramblett dot com and get more information there.