JASON BRAMBLETT RADIO SHOW PODCAST
JB: Well, good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. For the next thirty minutes, we are going to be talking all things real estate, and also if have a question or comment for Jason about real estate, we are live in the studio. Give us a call. The number here is (336)553-0796, (336)553-0796. And with that, as always, we say good morning to the man with a plan. Mr. Jason Bramblett.
Jason: Good morning, everybody
JB: How are you?
Jason: It's good. It's a beautiful day.
JB: It is a lovely day here in June.
Jason: It is June already. Wow.
JB: Hard to believe.
Jason: It just happened. But, time waits for nobody, as they say.
JB: That is right.
Jason: It is moving on.
JB: I know a lot of folks are graduating from high school.
JB: I know I drove Glenn High School yesterday during the graduation. I know my homies. I have got to send a shout out to my folks in Wallburg and Thomasville. Ledford is graduating. So, all the family and friends and all the graduates, congratulations on that.
Jason: Yes. It has been a busy week. We had a couple of folks that are like hey man, where did everybody go? There is no one looking at our house. Here is the thing. It used to be like graduation, I am going to date myself.
JB: Oh, I know.
Jason: Graduation, when I was in school, was when you left high school. Right?
Jason: Twelfth grade.
Jason: It seems to me that there is a graduation for just about every grade now.
JB: Well, growing up in a rural area, we had a little bit different school set up. We went first grade through eighth grade. That was elementary school.
Jason: Okay. Okay.
JB: We did not have a graduation from eighth grade. No middle school. Just right into high school. But yeah, now you graduate from Kindergarten, you graduate from this, you graduate from middle school. You graduate from this and that.
Jason: It is a lot.
JB: It is a lot.
Jason: Parents and grandparents are just running all over the place. So anyway, some of our folks were like hey what happened to the real estate market? It is just graduation
JB: Graduation, vacation time.
Jason: Vacation time.
JB: It is kicking in right now.
Jason: It is. It is full go. It will speed right back up. Until July fourth and then that is North Carolina state law. You must go to the beach. It is a requirement.
JB: It is a requirement, isn't it?
Jason: You will drive down the road. There is nobody here. Everybody is gone. It is a wonderful time to get things done. That is for sure.
Jason: But we are going to talk about supply and demand and we have got some questions that have come in this past week about that. What is happening? What are the trends and what are they looking like? Are we getting balanced? Are we getting worse? Where is it going? So, we are going to get in to that. And rates, kind of calmed down a little bit. We had a nice little run up on the interest rates there for about sixty days and kind of sucked the wind out of some folks' hopes and dreams. That one percent makes a difference, guys.
JB: It does.
Jason: It makes a difference. It will definitely restructure what you are looking at. It does make a difference. And then of course, your calls, emails. You can give us a call in the studio today. It is (336)553-0796. Or if you do not want to do that, you can go to the Jason Bramblett dot com. Shoot me an email. I look at them almost every day and share them right here on the radio.
JB: Right. Well, let's kick it off with an email. What do you say?
Jason: Let's do it.
JB: And this is a really good email. I am glad that Bruce wrote this in. It says Dear Jason, I have a home located in the Winston-Salem area in Ardmore. I feel confident it is going to sell quickly. But I am on a waiting list for a retirement community. Now is it advisable to sell now and take advantage of the market and rent or wait until I get the call from the retirement community? Thank you, Bruce. That is a good question.
Jason: That is a good question. And it really applies not only for this situation with somebody that is moving to a retirement community, but just in general. What should I do? Maybe I want to build a house and it is going to take some time. That is the one little piece that we do not have in Bruce's email here. How long is that waiting list? Because that does change the picture. I guess to give you a generalization, I will just give you a couple of options. I would say if it is six months or less, I am just going to wait and sell the house when they call me. Right?
JB: Right. Yeah.
Jason: Because the real estate market isn't really going to change a bunch in six months. Where we get into unpredictability is trying to guess what is going to happen in 2020.
Jason: Not possible. We have no idea. There is too many, way too many factors involved in real estate. So, if it is over six months, then I am probably going to go ahead and sell the house and rent for a while. Now that is an option for some people. Now Bruce said a keyword in there which was retirement community. Most of the folks that are moving to a retirement community also have this other little cool thing called a paid for house.
Jason: And when you have a paid for house, you can stay a lot cheaper than you can rent.
Jason: So that is another factor that we have got to look at, Bruce, is if you are, you are just paying taxes and some lights and keeping the water on, then we need to factor that in. If it is going to be two years, then maybe we do not rent because rents have gone up a lot. You could be out thousands and thousands of dollars and then what you maybe took advantage of in a market, you just gave it all back in rent. We do not want that. We want a situation where it is going to be a win-win. Now if it was a younger couple that whatever, they were paying thirteen hundred dollars a month in a mortgage, but they needed the equity out of their house in order to build, and they were going to go rent something for thirteen hundred dollars a month, well it is a zero-net gain. Just make it happen. But when you have got somebody who probably has an income based on having no payments and then you start sucking out a thousand dollars a month, well then, we have got to take a look at it and say is that smart. Short-term, the math probably still works, and then after that we really need to take a look and make sure it makes sense down the road because again, rent is not cheap. Most folks that we deal with, not all, but a good portion of folks when they are moving to a retirement community have the blessing of no mortgage.
JB: That is right.
Jason: It is good. This was a long time ago. I was a chef in Charleston, South Carolina, and there was this guy, he was a chef with me. His name was Willie. Willie had four teeth and they were in the back of his mouth. And it was very, very difficult to understand what Willie was saying. The first week I was there I thought he was just hammered all the time because I had no idea what the guy was saying. I just had no clue. I was moving from Missouri to South Carolina. They have got their own little dialect down there, and so
JB: You had to get acclimated to the dialect there, huh?
Jason: I had no idea what Willie was saying half the time. But after about a year or so, I figured out Willie was not drinking, and he was, he just talked different. But one, the owner's son took over the restaurant. He kind of passed the torch on.
Jason: And this kid was a little fireball. He was going to make Daddy proud.
Jason: And him and Willie got in a little altercation one day, and Willie told him, he said, boy let me tell you something. He goes I only got two bills. Electric and water. My house is paid for. And he goes, if you fire me, I will just go down to the river and wash my clothes. He just had it all worked out. He was like I got a propane can and some water at the river.
JB: That sounds like a winner to me.
Jason: Willie had a backup plan just in case.
Jason: It was funny. Of course, there was a lot more to the conversation, but the translation is somewhat in that realm. But knowing your expenses, obviously we want to make sure we are giving you good advice. Because just to sell the property to rent may not be the best thing for everybody.
Jason: But it is an option.
JB: And we would like to thank Bruce for writing in.
Jason: Yes, absolutely.
JB: Jason, last week we talked about your instant offer program, and that stirred up some interest and got some calls, so let's dive just a little bit deeper this week into that program.
Jason: It did, yes. Anything new and different people are like huh? Could you say that slower?
Jason: So, we are going to say it slower. We did kind of speed through it last week. Of course, anything we talk about on the radio, you can call the office. 553-0796. Call the office. Leave us a message if you do not get us today. You will probably get somebody today, but we will get you the answers. So here is what we have seen in real estate. Let me back up. It has been just the way that it has been for so long. Right? And you see opportunities where you can step in and maybe offer a product or a service that has not been there. So, the traditional thing is you call your real estate guy. They put a sign in your yard. And you drag a bunch of people through the house, and you hope that somebody raises their hand and makes you an offer. Right?
Jason: Many years ago, many of you guys know I did a lot of corporate relocation, and they had a buyout program. I thought wow, why can't we have our own buyout program and you do not have to work for one of the big companies. And that is where the guaranteed sales program came out of. It was just basically a corporate relocation. Well, it works. It still works today. We have been doing it forever. But the interesting thing is now I am seeing another opportunity with folks that they just well, they just do not want the hassle of showing the house.
Jason: They do not want to deal with the headaches of that. So, we have kind of been brainstorming. Me and the team and some other folks. Basically, they do not want to have forty-five people tramping through the house. They have got small kids. They do not want to deal with getting the kids ready. They do not want to deal with the pets. Whatever it is. It is just not easy to sell your house.
Jason: Because it is like, you are, they do not want to be the Boy Scouts. Right. Always be ready. Always be prepared. Right.
Jason: No, they do not want to do that. They want to live their life. So, what we have found is there is a certain percentage of people out there that do not mind paying for the convenience of basically bypassing all the pain of selling a house. Right?
Jason: It is like we talked about the convenience store. You can go to the big box stores and buy a whole bunch of water for four bucks, or you can go in the gas station and buy one for three dollars or the airport or whatever. You pay for the convenience. There is a cost to that. And we have found that there are some folks that just do not mind paying for the convenience of one showing. That is, it. Just what is it going to look like. Anyway, that is kind of where we dreamt up this idea of with just some people calling and asking if there was an option, do you have a no showings option?
Jason: We have worked with some different folks and got some game plans together. Then, I think I shared with you guys last week, we have got investors in the marketplace. We have got a lot of hedge funds and private equity and different companies like that are looking for opportunities to buy quality homes. I guess before the guarantee sale, before this instant offer, really the way you sold a home is you called the real estate guy, just like I said, or you called these We Buy Houses. Johnnie with the handwritten sign on the side of the road over there. But those guys are taking, one, they are taking on some additional risk in that they do buy some distressed stuff.
Jason: You do not know how bad it is until you start peeling the onion away. I have bought a few like that in my day and let me tell you. When you peel that back and it is like holy smokes. There is no wood there. That is not a good feeling.
JB: Right. I understand.
Jason: But they are looking at, they are probably about sixty percent of the value of the house is probably somewhere where they are at. And most people, they cannot go there. It is not even an option. They owe more than that. Even if they wanted to sell to those folks, they cannot. They do not have the equity to do it. But there is still a certain amount of people out there that do. Hey, they got billboards out there on the highway for a reason. Right?
Jason: People are calling.
JB: That is right.
Jason: Those things work, but for the majority of the homeowners, selling at sixty cents on the dollar is not an option. And there has got to be something in between. And that is what we have found with the guaranteed sell and with our instant offer is there is something out there that is in between. Something that does not necessarily have to be such a huge deep discount for the right quality property. You see the formula. We found it. We have got it nailed down and we feel like it is going to work well for our folks and for folks that just do not want to do it the traditional way.
Jason. And so, it is good to have options. The other thing, too, is we will be able to show them both numbers. Okay, here is the instant offer if you want to sell today or here is the market price. Here is what we think if you were willing to be patient and wait and drag forty-two people through the house. You might end up getting something along these lines. The guaranteed sales program we have been doing since 2008, and just like all things, in a downturned market, it is like the saving grace. Our phones blew up from like '08 until 2017 because a lot of people are still underwater.
Jason: Or very, very close, and they needed that guarantee. They needed to know that if they took that job in Tennessee that the house was going to be sold and they were going to have to deal with it. They were going to end up with long-term rental two thousand miles away or whatever the case may be. But as the market starts to improve, right, we start to see some equity building, and then people are like well maybe we do not need the guarantee because the house is going to sell in a month. So that is great. That product does not work at this time. Believe me, all markets cycle. It will be back down again.
JB: Oh yeah.
Jason: I promise you. It will happen. It will happen. It may happen sooner than we think because some of these values are ooh, something else. Anyway, so the instant offer, we will give you the price the company is willing to pay for the house in its as is present condition, and then we probably can give you some tips and tricks of ideas that you could do to enhance it, and maybe change that list price to a better number. But if you just want the convenience of hey, I do not want to deal with it, then we have got an option out there for you.
Jason: It is really pretty simple. It is like 3, 2, 1, boom. Call us, meet us, and then we contract on the house.
JB: Sounds like a winner.
Jason: I think we can keep it pretty simple that way. That is the goal. I like simplicity. I like simple things.
JB: Simple is good.
Jason: Simple is definitely good. We have got some of these house flipper guys that call us every day, and if you want to get in touch with them, we can definitely steer you in that right direction, too. That sometimes is a good option for some folks. I have seen some houses where ooh, buddy, they have not been attended to in a while.
Jason: And it is going to take a professional to get it, just something. Sometimes, like I said, there are no words.
Jason: Anyway, let's do this. Let's take a quick timeout, JB. We are going to come back. We will have some more answers to your questions, and we will be back here in just a moment.
JB: All right. Stay with us folks. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. I am JB. I will tell you what. Do you want to jump back into another email there, Jason?
Jason: Yeah, let's do that.
JB: All right. We have got one in from Susan today. It says, Jason, we have a new house under contract with a builder.
Jason: Yeah, let's leave that one out.
JB: We did not think we needed an agent with a new home. However, now we are very overwhelmed, and things are not going as smoothly as we had hoped. We think having someone on our side will help. Do you offer any kind of consulting service? Thank you, Susan.
Jason: Well, hmmm, that is one thing I am pretty confident of is I do not think Susan is alone out there.
JB: I think some other folks have run into this.
Jason: Yeah, and even if we did say the builder's name, it is not to say that they are bad. It is just you have got to realize whose team the players are on.
Jason: Many folks out here buying have the same assumption that probably Susan does. Hey, it is a new house. What could go wrong? Right?
Jason: It is brand new. Everything is going to be under warranty.
JB: Nothing goes wrong with a new house.
Jason: Never. Ever. When we have home inspections done and people are like you have home inspections on new houses? Well, that is a waste of money. Yeah, except for when you find thirteen trusses that are snapped in two.
Jason: Insulation missing from half the crawl space.
Jason: The HVAC may or may not be up to code. And why is the water in the pan already happening?
Jason: All those things where, and yeah, you are right. They are under warranty, but wouldn't you like not to have the water come through your roof the first week you move in?
Jason: It is just all kinds of interesting things. We found a roof, this was a whole entire subdivision. We had a home inspection, and of course, the builder was like nobody inspects my homes. I am like well, we are going to do that. Come to find out that the roofer did not install the shingles to the manufacturer's specs, which also voided the warranty. The roofer was also the same guy that did the other twenty-two houses in the subdivision. And then, we got ours fixed, and then a little storm came through. And there were twenty-one roofs that looked a lot different than the one we got fixed. But home inspections are not really worth it. Of course, now, that was true. The builder did have to pay to have all that fixed. But here is the thing. All the damage that was done on the inside and all the water and everything, just the hassle that they had to deal with. Had they had an inspection, they may have been able to avoid that.
Jason: But here is the thing. Here is what I know over doing this twenty years. Some people think that if they buy direct, they are going to save money. That is just, we have that with our properties we are not the builder. We are just the real estate broker working for the seller. We have buyers come to us and say hey, I will buy this house from you if I can save some money. It is not really up to us. The price is the price, and the seller dictates where it ends. The buyer and seller, I guess both.
Jason: But you are not going to hit a homerun just because you buy it from the listing agent. Actually, it is almost like buying it from the builder. Again, you have got to know whose team the players are on.
JB: That is right.
Jason: The listing agent works for the seller, and can they work for the buyer and the seller? Well, in North Carolina that is legal. It is called Dual Agency. Well actually, let me rephrase that. Actually, we do not know if it is legal. It is approved. There has not been a lawsuit yet to determine whether it is legal or not.
JB: Oh, okay.
Jason: It is allowed. How about that?
JB: All right.
Jason: If somebody would finally sue somebody for it, then we could figure it out. But there is a hundred thousand dollars, I am told, sitting in the State treasury to help with the lawsuit so we can figure out if it is legal or not. Isn't that fun?
Jason: Those are good times right there.
JB: That is good times.
Jason: When you're the one proving the law. One way or the other. Right?
Jason: Interesting stuff.
JB: Yeah, buddy.
Jason: Only in real estate. I think we have talked about this before. If you hire an attorney's office, you cannot have, they cannot work both sides of the fence, right?
Jason: They either represent one party or the other. Both do not work at the same law firm. Real estate, for whatever reason, they think it is okay. I do not understand why. But it does not work in anything else. But back to our story here, Miss Susan. Susan, we believe it is definitely a good idea to have representation as you are I guess feeling that. It is overwhelming. Building a house is like the second most stressful thing in a married life.
Jason: Only to be trumped by the actual wedding itself. Getting the wedding ceremony is the most stressful thing, and then you build a house. Right? There are just a lot of decisions that you have to make.
Jason: There are like about five thousand decisions you have to make when you build a house. So here is what I know. Yes, can we help you? Yes, we can. Can we step in right now and help you? Maybe. We can certainly look at the situation to see if we can help you, and some of that depends on what kind of contracts have been signed and those types of things. But, we certainly will be happy to do that. But for everybody else out there that is thinking that they either may save money or do not need help, maybe listen to Susan's story because it is overwhelming and just having an advocate on your side, another set of eyes, another professional, can make a big difference so you do not end up with these pitfalls. We have built thousands and thousands of homes, and we certainly know what to look for and we could help you out. So, give us a call at the office. 553-0796, and we will be happy to talk with you about new construction here in the Triad. Everybody have an awesome weekend.
JB: All right. Thanks.