JASON BRAMBLETT RADIO SHOW PODCAST
JB: Good morning. Welcome to Triad Real Estate 911 with your host Jason Bramblett. My name is JB, and for the next half hour we are going to be talking all things real estate. We are live in the studio as always, and we invite your participation if you would like to give us a call. If you have got a question for Jason, the number is (336)553-0796, (336)553-0796. And we say good morning to the man who has always got a plan. Mr. Jason Bramblett. Good morning.
Jason: Good morning. Good morning. How is everybody doing today?
JB: Well, let's turn your microphone on. That might help out a little bit.
Jason: There we go. Hey
Jason: I hear me.
JB: There you go.
JB: Welcome to the show.
Jason: Hey, thank you. It is a wonderfully thick morning outside.
JB: It is weather you can wear here in the South.
Jason: That is so true.
JB: I was telling somebody yesterday. I know everybody has been talking about it, but it has just been extremely humid. I almost started speaking Cajun this week.
Jason: Yeah, right.
JB: Like down on the Bayou.
Jason: That is right.
JB: And I do not even know how, but it is just ready for relief, and I know we have got a long way to go.
Jason: I was watching a guy run down the street the other day, and it was like he had a vapor barrier coming off of him like the airplanes do. But geesh, it was something. Anyway. Real estate.
Jason: Should I sell? Should I buy? What to do? What to do? What to do? Boy, lots of questions this week, and lots of, just folks are kind of circular right now. They just kind of are like yeah, I think I want to sell, and then they go right back around to I do not know what to do. So, we are going to see if we can help you out. Help you get you out of that frustration. We have, sellers are frustrated. Buyers are frustrated. And it is interesting. Everybody is looking at the same stuff, and usually it is one side or the other. This is pretty much, this is both. Equally frustrating for buying and selling right now. But we will dig into that. Plus, we have got your calls and emails. You can get us right here at (336)553-0796. Office number if you want to leave a message there is 553-0796, and you can email us. Go to Jason Bramblett dot com. Click on that Contact Us button, and it will go to someone. I promise.
JB: All right. Well, good. Maybe if you are frustrated, you have got the right place. You have got it on the right place on the dial this morning. Let's help you out. Hey, Jason, let's start off with selling the house. What do you say? It would seem now is the right time to sell. Yes or no?
Jason: Yeah. It would seem.
JB: It would seem.
Jason: It would seem. If you were listening to the media, radio, TV, maybe even reading some articles, it would seem that wow, it's back. It's time. But here is the thing. The interesting thing I am seeing in the market, and I am looking here in the Triad. I do look at the overall, but at the end of the day, I am not selling in Dallas, Texas, right?
Jason: So, this is home. This is what key. Interesting prices did actually fall. They dipped from April to May. We had a price adjustment. It actually went down. I say that to some people and they are like nah, don't think so. I am like yeah, it is statistically proven. There are numbers to back it up. But it does not feel, there is a good metric for you. Feel like it should be possible, right?
Jason: Because we have a shortage of inventory, and you go to just logical supply and demand economics, and you would say a little bit of something means a bigger price.
Jason: Well, sometimes. But now, I will say prices have increased overall over a larger period of time, but we did see this little dip in the last thirty days. I have been watching it each week. It is interesting to put a couple hundred houses on the market, but I am watching this price decrease, number increase every single week. It is one hundred-thirty houses, hundred-ninety houses, two hundred and eighty houses. Now it is up to almost four hundred houses that are lowering their price every week. So, what is that? We are chasing the market. Or we have got some, unfortunately, some inexperienced agents out there that potentially could be overpricing some homes.
Jason: Yeah, well, it happens. And they do that for several reasons. One is they may not have the guts to tell the seller the truth, and they are just desperate for business. Think about this. We have increased the number of real estate agents in the state of North Carolina by like twenty-five thousand in the past twelve months. A good number of them are right here in our area. So, we have increased the number of people attempting to sell. We have decreased the things that we are selling. Right? Because inventory is low. And when you do that, and people are attempting to make money, sometimes they get desperate.
Jason: And sometimes they will just tell you what you want to hear as opposed to telling you the truth. And the truth is your house is never going to sell for that number, but I need to put a sign in the yard, so I will just go with that. It is not difficult to do. In twenty years of selling houses, you just ask the right questions, and eventually the seller will puke out the number that they want. And there you have it. And that is the only thing that matters from there on out. As long as you can get those things aligned and you make them happy, you will get that listing signed, and you will put that sign out there and it will grow moss because it is never going to sell. So that is a correction that we are seeing. We are seeing that inexperience play out where they are basically buying the business. Right?
Jason: They are telling the owner what they want to hear as opposed to what is reality, and okay, well that is a correction. Overall, it will hurt the market. It will actually hurt the market. Then so you will see the prices adjust down every week. You see them chasing the market back to where it should be. Now the other one that is interesting that also is a correction is the banks. Maybe the house was priced perfectly, but it is one of those houses that is in a neighborhood or area where there is a high demand, and you end up with seven, eight, ten, twelve offers on it, pushing the price up. The problem is it is also in a price range of which nobody has any money. They just have good credit.
Jason: No money, good credit. So, they are putting down the least or nothing. And when I say nothing, yes folks, we are right back to doing as many hundred percent loans as we can possibly crank out in the nation and or we are doing three-and-a-half percent down. We all know what happens when that bucket gets full. Right?
JB: Yeah, we do. We have been down this road before.
Jason: We have. So, what we are also seeing is that even though the consumer is willing to pay more for the house, the bank is coming back and saying wait a minute. You might not have owned a house in two thousand six, seven, and eight. Well, we owned a lot of mortgages, and then we ended up owning a lot of houses. Probably at one point in time, Bank of America and Wells Fargo and some of these really big huge nationwide lenders, they probably owned more houses than most building companies.
JB: That is right. I am sure they did.
Jason: So, they had a load of inventory. So, they remember those days. So, what do they do? That is why we have those appraisers out there. Right? They are the ones that give a little throttle to pulling them back a little. So even though you may be willing to pay an extra fifty dollars a month to go fifteen or twenty thousand above the asking price, the bank is going to say well, wait a minute, it only affects you fifty bucks a month. It affects us like twenty-five-grand if this number is wrong and you stop paying. And we are upside down. Right?
Jason: And this is why we have that. You will see that adjustment in an appraisal. So sometimes you will see that maybe the agent got excited and got the business, but it was the wrong price. You will see that corrected. You will see that maybe there are multiple offers if they push the price up too high. That came back and got corrected. Remember, I am looking at the entire Triad when I say these prices are adjusting in a downward trend. But it also is very city-specific, area-specific, and even neighborhood-specific. There are neighborhoods in Greensboro that are falling in price, and there are neighborhoods that are going up. There are neighborhoods in Winston-Salem that are dropping in price, and there are neighborhoods that are going up. So, you have got to be very specific in how you look at that. Another interesting thing that we are seeing is that even with the lack of inventory, dated houses are not selling. It is surprising. Not bad homes. I am talking homes that are structurally sound, but they just do not have the pop that folks are looking for right now.
Jason: It is really interesting. They are just sitting on the market. You look at the house and you go wow. This house three years ago would be gone. Not so much. So, I am amazed at the number of buyers that just are not willing to do anything at all to a house. I am talking we will not paint. We will not put new carpet in. We do not, we do not want to deal with the hinges and changing out the brass, and we just no. We are not going to do it. If it is move-in ready and new, that thing is gone.
Jason: It is flying off the shelf. So, it is interesting. That is where we are seeing the multiple offers at. Then we have homes that are priced properly per square foot and all that, but they are little dated, and people are coming in like hmmm. Nah. I just do not want to go there. I do not want to deal with it. So, it is very interesting. We have not seen that, and probably have not seen that because when the inventory is low, there is less to watch and then you have more showings. So, the feedback is coming in quicker, and it is just amazing. Proportionally, the consumer, the buyer today is going to lean towards a new house or a remodeled house almost nine times out of ten. So, it is kind of an interesting time. Something we have not really seen that before. If you have one of those, and you are getting traffic and you cannot understand. Why in the world? We had all these people come through. Why are we not getting offers? Take a look at what is going on within your house. Look at the appliances. Look at the paint colors, the carpet. Do you have a bunch of brass in there? That tends to be something that they do not want. Okay.
Jason: So, getting the house up to standard, to that standard is going to be really crucial. If you need help with what that looks like, we can help you. Give us a call. We can come out there. You can go to a new model home. Brand new construction. They usually have those houses as much up-to-date as you can possibly get in new construction. Right?
Jason: And if you do not want to drive around and do that, you can go online. Pick up a magazine if they even still have those anymore. I guess there are still bookstores out there, right?
JB: I think so.
Jason: There are a few left. Go online and look at some of the design ideas. You do not have to go crazy, but you can mix, here is what I found. A hundred percent old is not working. And I say old, old being outdated. A blend sometimes can work. Or go all in and just update everything. Right?
Jason: If you update everything, you will I think see a rapid change in your feedback and you will probably see another thing which is multiple offers.
Jason: So be prepared.
JB: So, Jason, if I heard you correctly the priced-right update or new house is going to fly off the shelves. Everyone else just better call you for help. Right?
Jason: There you go. That sums it up. There you go. Let's do it that way.
JB: I have a firm grasp of the obvious, don't I?
Jason: That is, it. Here is the thing. We are here to help. We are here to get you the most money that we can possibly get you out of the home with the least amount of effort and energy. That is what we are here for, right? Convenience. That is top of mind in our office at all times. We want to be convenient and really go above and beyond to ensure that it is the right experience.
Jason: Are we the right fit for everybody? No. Certainly not. I cannot rebuild your house. I know people that can, but I cannot do it. And you would not want me doing it actually. For sure. We just want to make sure that we are giving you the proper information to make the best educated decision, and that is all based on statistics, documentation, and proof. We can show you the reason why you are frustrated, and this may not be working for you is probably going back to what does it look like? Who is your audience? If you want to go to a country concert and that is what you expect, and you show up and they are playing opera, not probably going to be the best experience.
Jason: That is kind of what we are seeing. We have folks that have the area maybe down, but then the presentation of the house, hmmm, not so much in that audience. You are attracting the wrong people, and we need to switch the product to attract the right people. I think once that happens, you will be pleasantly surprised. And sometimes it is not what the owner wants to do, and that is why we got a paint-by-number system. We make it as simple as we possibly can, and we are going to show you what it is we can do to get you in the right direction, and get you pointed to the right way. We have had hundreds of owners though throughout the years that said, you know what, Jason? I just want to sell this thing as is. And that is okay, too. We can deal with that as well. But you have got to understand that is a different price.
Jason: We always start with the most money and top dollar and adjust from there.
Jason: Here is what we are going to show you what the best looks like, and then you have to decide financially can you do it or do you want to do it. There is no wrong answer.
JB: That is right.
Jason: It is just a different price. It is just a different number. That is all. That is where we are getting to. Let's do this, JB. Let's take a quick timeout, go pay a few bills for somebody out there. We will be back in just a few minutes with your calls if you have one. 882-7874. We will be right back.
JB: All right. Stay with us. (in/out music) And welcome back. You are listening to Real Estate 911 with your host Jason Bramblett. And right before the break, Jason, I think we were going to talk about some selling right now.
Jason: That is, it. That is, it. We get this call, and I have been working for a while to come up with an option for folks that just do not want to put their house on the market. They want to sell it, but they do not want to put it out there. They do not want strangers walking through. They just do not want to deal, maybe they do not want to even deal with the prep of getting it ready. Just a lot of different scenarios. I have just been brainstorming. What can we do? How can we serve this person that is ready to sell, but emotionally and or just does not want to go through, and it really is emotional that they just do not want to deal with the stress
JB: Right. Exactly.
Jason: of all that. And I get it because selling a house, it is not easy.
JB: There is a lot of stuff. A lot of moving parts.
Jason: I am telling you. Sometimes when I come over to the house, not only do the kids cry, the dog starts whimpering because
JB: That is pretty bad
Jason: It is like man, this is going to be no fun for nobody.
JB: I know.
Jason: Usually the dog takes it the worst, right? He is like don't you dare come in this house. He is like I am going to be put out back. He is like have you felt the humidity? He is like come on.
JB: The ticks and fleas are terrible.
Jason: That is right. That is right. So here is what we have come up with. We have been working a plan. You are going to start to hear it the next couple of weeks on the radio, but we have an immediate buyout. What we will do is we will come to your home. We will evaluate it, and in twenty-four hours, we will give you a buyout price and we will also give you a price in which the home can be listed and sold on the market for.
JB: Oh really? Wow.
Jason: I have obviously bought a lot of homes over the years. We still have our guaranteed sales program. It is different than this program. This is an immediate, when I say immediate like, like you have one showing. It is us. That is, it. Of course, now people are going to be like well, how is he going to do that? Well, I do buy homes throughout the year whether to fix and resell or keep or whatever we do with them. But I have also made some really good connections. I have been to Jersey and New York here in the past couple of months and basically, we have met with some Wall Street venture capital companies. We have got some great folks that we have dealt with who are in a position to step in and pay cash for your house. Okay. So, they have got money in like with a B, billions of dollars.
JB: There you go.
Jason: So, they are buying not just here, but around the US. Greensboro/Winston-Salem/High Point is an area in which they are very interested. So, we have the network now to step in and do this and have an immediate buyout. Actually, I am going to see a house today that the lady called, and she is just like I just do not want to do it.
Jason: Okay. Well, I am going to go check it out.
JB: We can work with you.
Jason: We are going to work with that. So, be listening. You are going to hear it. It is going to sound interesting, sound different. Are they going to come in and pay you retail? No. It is a venture capital company. Right?
Jason: It goes back to convenience. Here is a great example of convenience. Bottled water. You can go to any gas station on any corner and buy one bottle of water and typically it is about a buck to two-fifty.
Jason: For one.
Jason: You can go to Costco or Sam's and you can buy three hundred and eighteen of them for the three dollars. Or at least forty anyway. Okay. Now, are they going to discount it forty X? No.
Jason: But there is going to be a discount for the convenience. Okay? Look. It is Wall Street, guys. They have got to make money too, right?
Jason: I have looked at some of the plans. I have looked at some of the percentages, and they make sense. It is not one of these we buy houses sixty cents on the dollar type of situations. It is a real number. It is going to be a discounted number, but it is going to be a real number. And you have to decide is that convenience worth that price?
Jason: It is an option. Is it for everyone? Not at all. But there is going to be a percentage of folks that they are going to be like you know what? I have got one hundred percent equity in my house. I just do not want to do this
Jason: and I am good with the number. Or if you have an estate, we have a lot of folks that are selling estates where Mom or Dad passed away or both and it is just something they need to do quickly. I have looked at the numbers. It is better price, I feel, than what some of these other franchise-type systems have out there. And it is an option, and it will not cost you anything to find out what it is.
JB: Well, that is exciting.
Jason: So, there you go.
JB: Cannot wait to hear about it coming up in a few weeks.
Jason: You got it.
JB: Well, we have got a few more minutes, Jason. Let's talk right quick about some buying. Is it the right time to buy?
Jason: Is it the right time? I tell you, I mean, yes. It is so, if you can find what you are looking for, buy it.
JB: What are you waiting on?
Jason: Absolutely. Yes. Certain price points, it is getting competitive. Right?
Jason: But here is the thing. The rates are going up. What have we always said on here? Everybody looks at the price of the house. That is not the most important number.
Jason: It is the mortgage that is the most expensive part.
JB: The price of that money.
Jason: Absolutely. You think you are buying a house, and really what you are buying is a mortgage. You do not believe me? Stop paying it. See what happens. You cannot live in a mortgage, folks. I promise you. You cannot glue it together and put a roof over your head. It is the most important part. The terms, the financing, the mortgage. Since January, you have actually lost about twenty-five-thousand dollars' worth of buying power because the rates went up. So, meaning this, if you purchased a two hundred-thousand-dollar house in January, you are looking at about a hundred and seventy-five-thousand-dollar house to have the same payment, being all things equal. Okay. That could be a bedroom really.
Jason: So instead of a four-bedroom house, realistically, you could be looking at a three-bedroom house.
JB: That is right.
Jason: That may be all that you can swing. Here is the thing. Do not wait for them to go back down, guys, because everybody I am talking to, everything I am reading is that ship has sailed. It is gone. You are going to see small increments of change, but we have bought this fake rate down for a decade, and it is time that it gets fixed. It looks like it is. I would not be surprised if we do not see six percent perhaps by the end of the year or first quarter of next year.
Jason: That is almost, think about that, six percent is almost double what it was a year ago. That is crazy.
JB: That is crazy.
Jason: So, you think about that buying power you lost. Time is of the essence as they say in real estate, meaning get your tail moving. Okay? It is drop dead. It is going to happen. Can I predict everything? No. And I am listening to people who are much smarter than me, but the Fed, the essence of everything, the feeling is we are staying put here or going up. We are not retreating. And you are not going to retreat, typically, with inventory as low as it is. That is the opportunity. The real opportunity is, in my opinion, is buying up of the un-updated house. Right?
Jason: So, if you cannot find a house or you are getting frustrated because all the good ones are gone, go buy not-a-good one. And make it good. If you have the cash to do that. If you have the capital to do that. If you do not, there are some loan programs that can help you fix the house up. Now there are different rules for those type of loans. But you can get in touch with Dave Held at Caliber Home Loans and he can walk you through it. They have got a great program.
JB: Sure do.
Jason: So, Dave can help you there. You can go to our website, Jason Bramblett dot com. Shoot us an email or click on our mortgage partner, and Dave can tell you about that program. All right. Make it through the humidity. We will be back here next week, live in the studio. Go to Jason Bramblett dot com for your questions. Talk to you soon.
JB: All right. Great show. Talk to you next week.