JASON BRAMBLETT RADIO SHOW PODCAST
JB: Good Saturday morning to you. Welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and for the next thirty minutes, we are going to be talking all things real estate. He is the man with the plan, and yes, he does have all ten fingers after the Fourth of July, and we welcome him back to the show. Mr. Jason Bramblett.
Jason: Good morning. Yes, absolutely. I stick with the, man, I will probably say it wrong. Is the Class A?
Jason: Yeah, we didn't get into the B, C, D
JB: You did not get into the big stuff.
Jason: No, no, no.
JB: Yeah, leave that to the professionals.
Jason: My favorite firework is like the smoke bomb. Just simple.
JB: Let me tell you a smoke bomb story.
Jason: All right. Yes, yes.
JB: Got a brand-new bike for Christmas one year. It was a Hot Rod. Well, the previous summer we had been down and done the Myrtle Beach thing, and of course when you cross over the line, you see all the Big Black Cat fireworks booths and all that.
JB: Well, I got a big old stash of smoke bombs. So, I had this idea and my buddies, I took my bike on Christmas morning, and I told them how fast I was, and they were kind of trying to downplay it. I said I can burn rubber on this thing. They are like you cannot. So, what I did was I got one of my smoke bombs that I had gotten, and I taped it up under the fender, stole my mom's lighter, went around the corner. I said you watch this, and I lit it and then I jumped on my bike. I taped it on there, and I came back around the corner and smoke started blowing out of there. I blew my buddies away. They thought I was the stuff.
Jason: That is right.
JB: But I will never forget that speaking of smoke bombs. Smoke bombs are simple. They are easy. They make a lot of smoke and they're cool. Anyway, I do not know how we got off on smoke bombs.
Jason: Those good memories from childhood and Fourth of July. I had a buddy that his dad was a truck driver. And he went and got some M-80's.
JB: Oh yeah.
Jason: You go to the firecracker thing and they say M-80. Well, they are not.
Jason: These were M-80's.
JB: They were the real deal.
Jason: These were the real deal.
JB: With little bits of dynamite.
Jason: Yes, so do not do this at home. But we were 10, 11, 12, we thought we are going to go down the creek and take some of these M-80's and we'll just see what will happen. We took a fishing sinker, wrapped it around that M-80 because they have a waterproof wick and everything. And we threw it in this little pond. Just a little pool, I should say. It was probably a ten-foot circle, if you will.
Jason: And we are four of us just sitting there. We're watching it, and nothing is happening. Nothing is happening. It was like man, this is a dud, and all of a sudden, it blew every –
Jason: -- drop of water out of that ten-foot pool. It was like a cartoon. It just went right in our face. I never even really knew that there was that many fish in that little pond. There were minnows everywhere. So, we took the rest of them back. We were like man, we are going to go to jail. We just blew up the creek. It was interesting.
JB: I know you are from the Midwest, but actually that is how we fish in the South.
Jason: There you go. Okay.
JB: Little dynamite.
Jason: That is right.
JB: Makes it a lot easier.
Jason: It is easier to pick them up off the bank. That is for sure. Anyway, it was an experience.
JB: Well, I am glad you had a great Fourth.
Jason: It was fun.
JB: Nobody got hurt.
Jason: No, it was good. It was good. Hey, we are going to dive into, I do not know if we have talked about this in a while. It may be a few years but diving into luxury real estate, and what is that all about. What does luxury even mean? What defines it? Do I have it? Am I luxury? Do I even want it? Because maybe you do not.
Jason: Because sometimes you can get stuck with stuff that you may not want.
Jason: I do not know if luxury is one of those things or not. We are going to find out. We are going to dig into that. Is the sales process different? Same? Is it one size fits all? So, we are going to talk a little bit about that. Look at some of those different things. Everyone has their own version of nice, good, and great.
JB: Right. Exactly.
Jason: But what is luxury? Is it based off our life experiences? We are going to hit on that. We're going to do a market update and all that, too, but if you own luxury or you think would like to own luxury real estate, or if you need to get rid of some luxury real estate and do not know where to start, well, I think we have some information that's going to help you out. So, stay tuned.
JB: Well, Jason, let's just dive right into luxury. What does that look like here in the Triad real estate market? Just tell us what that is.
Jason: Most folks when I say what is luxury, they just go to a million dollars.
JB: That is the baseline for whatever –
Jason: Whatever in their mind, it is just oh, that is a million-dollar house. Most real estate groups, think tanks, and all those other things, franchises and those things, they typically say it is three times the median home.
Jason: So actually, in the Triad area, luxury really is just a little bit over a half of a million dollars.
Jason: Now, luxury in New York City, five hundred thousand dollars, you are not getting anything.
JB: It is a drop in the bucket.
Jason: It is nothing. I was just in New York networking with some guys earlier this year. Met with a gentleman, really sharp young man, and he is renting a 620-square-foot apartment, one bedroom, one room basically, studio overlooking Central Park. It is five thousand dollars a month.
JB: What did you say? Six hundred square feet?
Jason: Six hundred.
JB: Just a little over six hundred? Wow.
Jason: Yeah, so that is about a garage and a half.
Jason: Yeah. That is for five grand. So, five hundred thousand, well, here is the thing. In New York City, especially in the Manhattan area, they do not advertise. Like here, you would go on a search engine and it is like okay, let's look at houses between two-fifty and three hundred, three hundred and three-fifty. There they do it by thousand per square feet. These homes are two thousand to twenty-five hundred per square foot. These are twenty-five hundred to three thousand dollars per square foot. And I guess if you are buying it that way, you do not worry about the end number.
Jason: It is interesting.
Jason: So, luxury is different. We actually looked at a one-hundred-and-twenty-million-dollar apartment.
Jason: Yeah, it was pretty amazing. It was something. I do know if it was worth a hundred and twenty million dollars or not. You can ask anything, but I would imagine somebody is going to come along one day and do it. So here is the qualifier. Just because your home may be over five hundred thousand, does it automatically get you into the luxury listing club?
Jason: Here is the question. Does it? Let me just tell you. I have been in some deplorable five-hundred-thousand-dollar houses. As a matter of fact, I know of three or four right now over a million dollars that they are not even habitable. You could not even live in them.
Jason: So, does that mean they are luxury? No, that means maybe they are just in the right location. Okay? So, location may have something to do with it, but it does not necessarily make it luxury. So, it is more than price. Price is part. No question about it because that kind of gets the ball rolling. But really what it is luxury is an experience. What is the best way to say it? It is a home in which you walk in it speaks to you.
Jason: Right? So, it is that experience of the five-star experience, if you will. Right?
Jason: It kind of elevates your mind, soul, and spirit when you go in. It just gravitates you to a place of fulfillment and all. And when you walk in, it is like man, this is nice. This is luxury. It is that amazing vacation you went on. Basically, that five-star hotel. It just recharges you. It renews your mind. It is all those senses that are coming together to give you that experience. That is so much more than price. Because if it was just price, like I said, I have been in million-dollar homes that are deplorable.
Jason: I did not get any luxury feel out of that.
Jason: I was like I want to get out of here. This is just ridiculous. These are way too big or way over whatever or just really outdated. So, it is more about the experience of the home and experience in the home than actually is the structure of the property and even the price. So, how do you know luxury? Well, it just speaks to you. It speaks to everybody in different ways, right? It is kind of like that whisper, that feeling. It is different for all of us, and as a luxury real estate broker, you have got to have an awareness for that. You have got to be able to walk in and sense that. You have got to be able to have that expertise to walk into a home and say, okay, yeah, this is something different. Right?
Jason: In our area, that could be a home anywhere from five hundred to five million. Well, probably not five million, because we really do not have a home over five million. But maybe in Charlotte, okay?
Jason: Again, it is different everywhere. But it is more about the overall sense that you get. Because, at the end of the day, it is just bricks and sticks. Right?
Jason: All of them are.
JB: Bricks and sticks. I like that.
Jason: But there is something different about luxury the way it speaks to you. Feels, the ambiance. How you walk in. Let's just face it. Not all agents are going to be the same and not all have the talent to be able pull that story together --
Jason: to talk about that property, to explain to you what is luxury for you. Here is the thing. You are driving down the road. You just went to luxury. Just me talking a little bit about that. You went there in your mind. You saw a picture. It may have been a house that you have been in. It may have been a fine hotel. It may even have been something you looked at on TV, but you got a vision. You got an image of what luxury is to you. A good professional luxury real estate broker is going to take that image that you have in your head and match it to the right property that speaks to you in that way. Right? It is just getting that information out. Right?
Jason: And that is the key to the success of that.
JB: And another good thing about you and your folks that work for you, Jason, is that there is an old saying that there is a reason God gave us two ears and one mouth. And it is to listen –
JB: -- and to match those people with the types of properties that they are looking for and to be able to take what they are telling you and translate that into. So, I think that is kind of what distinguishes you from a lot of the others.
Jason: I cannot even tell you how many times we have people come to our office that have experiences with other folks, and it is almost verbatim what JB just said. They just took me to houses. I hated them.
Jason: It was not even where I wanted to be or what I wanted to look at. It is just they, it was on the list. It was in the price range, but nothing about the house was what I, I cannot tell you how many times we get that feedback. Hopefully, we do a great job at listening and then helping you stay accountable to your goal, too.
Jason: That is one thing that is different about our firm. If you tell us you want to stay within a budget, we are going to hold you true to that budget. So, if you tell us, hey, I want to buy a three-hundred-thousand-dollar house, we are not going to take you to see six-fifty. Okay. Sometimes that conversation is not fun.
JB: But it is the truth.
Jason: It is where you need to be, right?
Jason: Most people are not going to stretch that much, but here is the thing. You got there in your mind. Right? You got to luxury. You got that. That is where we want to get. We want to match that thought, that feel, that experience with the right setting and the perfect layout, and then guess what. It is just like we transferred that experience, and a lot of times it is a vacation-y type feel. Right?
Jason: And we put that into your home. Think about that. If every time you went home, it was just like that peace, that relaxing, that vacation, and here is the thing. You can create luxury within any price point, in my opinion. The market kind of dictates and says hey, luxury is five hundred and up. But I have been in some phenomenal three-hundred-thousand-dollar houses when I walked in I was like wow. This is spot on. From a qualifier of the think tank people, it does not maybe qualify for luxury because it is not over five hundred grand. But there is just something about that house that just grabs you, and you can create that in anything.
Jason: But today we are going to dig into the luxury. We are going to dig into some of the higher-priced homes. Hey, there is some stuff that has got issues, too. It is not all roses out there.
JB: It is not pink, fluffy unicorns dancing on rainbows all the time.
Jason: That is exactly right. That is exactly right. It is not. There are challenges with all of it. Right?
Jason: That is just the way it is. Luxury is no different.
JB: I tell you what. You want to take a quick break, and maybe when we come back, we talk about maybe some of the challenges of that. Does that work?
Jason: Oh, let's do it. I think we can punch that out for sure.
JB: All right. Well, stay with us, folks. You are listening to Triad Real Estate 911 with your host Jason Bramblett. I am JB. Stay with us. We are going to be right back. (in/out music) Welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. I am JB. Before the break, talking about the luxury real estate market, and of course, I think it is too, Jason, to maybe talk about some of the challenges of the luxury real estate market.
Jason: Oh, absolutely. You think just because it is, you say luxury like oh man, no big deal.
Jason: Not so much. Not so much. We have got some creative luxury out there.
JB: I like this. This sounds interesting.
Jason: When an owner gets way over the top creative, that can be a hindrance. If you have got draft skin walls and tiger stripe floors or something, I have seen some –
JB: Kind of like Elvis' jungle room going on?
Jason: Yeah. Yeah. It is okay if that stuff can leave. When you do it to the permanent stuff though, man, it becomes a challenge for sure. Here is the thing. If you have got the money and you like it, and you do not care, no problem. But just understand that you might be spending some money to get rid of it. There is a house that has been for sale forever, and sure as the world, this person came in to talk to us about selling. So, I cannot say anything about it, but it is so unique that I cannot even, I do not know a person on the planet other than the person that came to talk to us that likes it. It is just one of those houses.
Jason: It is going to cost a lot to make it square. Just something. I do not even know the right word. But they have loved it, and they built it, and it is okay. As long as they are okay with understanding they will probably never get their money back out of that.
Jason: That is just the way it goes sometimes.
Jason: Here is the thing. Do not make it so unusual that you are the only one that will ever love this because you may be the only one that ever loves it. Right? You may have to stick with that forever. Just have an awareness and that is it. Think about those types of things so if you do like those things, that is fine. But you may have to pay the extra money to make it back to neutrally normal, I do not know, blandish luxury. I do not know. Get rid of the grass skirt walls and all that kind of stuff.
Jason: But also, I see some luxury where it is just not keeping up with the change in demographics as well. Especially with, think about this, there are more first-time young millionaires in the United States of America than there ever has been any time in history.
JB: How about that?
Jason: And amazingly, a lot of them are under 35 years old. Technology.
Jason: People looking for technology and kind of millennial, geeky, nerdy smart people, they kind of want a smart house.
JB: Right. Kind of like a Zuckerberg-type thing. These new guys, millionaires coming in.
Jason: Exactly. Right. They probably do not want a house where you if you go into the bathroom there are quartered phones on the wall. Right?
Jason: See, that was luxury at one point in time. That was like a big deal. I can remember I went and sold these folks' home. Sweetest couple in the world. Martha and Elwood had a great house on the golf course. Their carpet was so long you could have raked it. It was unbelievable.
JB: Kick up some rabbits when you walk through.
Jason: Absolutely. For 1963, when it was built, it was off-the-hook luxury.
JB: I bet.
Jason: But they had not changed a lick since then. As a matter of fact, one of the key things that they wanted to make sure that I knew was the built-in blender to the countertop –
Jason: -- still worked. It was –
JB: That is pretty cool.
Jason: -- I do not know. Let's see. At that time, we were probably pushing thirty-five years at that time. It's been a while ago. But wow.
JB: Yeah, built-in blender.
Jason: Built-in blender. Obviously, things change, right? So, if you are not keeping up with the demographic that is looking at luxury, you can get priced out of the market. And what will end up happening is you will have to make a lot of changes, which may or may not be good for the budget, and or you will have to do a lot of discounting. Here is the other thing about big houses and luxury. They are not cheap to change.
Jason: It is one thing to go into somebody's home that is twenty-eight hundred square foot and say you need to paint. It is another thing to go in there when it is eighty-four hundred and you have to get scaffolding and nineteen people. Right?
JB: And bucket trucks and everything else.
Jason: Exactly. Keep up. Younger people like smarter homes. So, you either have to keep up with the change or you are going to get left behind. The other thing I see in luxury in the Triad is too big. Went way over the top. Went way crazy luxury.
JB: That is just kind of trend anyway, isn't it?
Jason: It can be.
JB: It can be, but when you are talking luxury, I guess it can go both ways.
Jason: It typically goes back to the 80's. Well, there were actually some tax savings to having a bigger home back in the 80's that we do not have today. But over seven thousand square feet in the Triad, you are getting little bit, you are shrinking your buyer pool. There are just not that many people looking for that size home. I have had a house on the market for seventeen-thousand-square-feet.
Jason: I do not know anybody. It has been for sale for like twelve years.
JB: So, does the circus call you when they come into town and want to rent it out?
Jason: Seriously. Truthfully, it needs to be almost a commercial use at this point because the average person is just not searching for that.
JB: That is big.
Jason: It is huge. It is huge. And so, you have got to think about those things. Here is the thing. Just because you make good money, and you have got money, you can still do dumb with money. That is just it. We have had some pretty big racecar drivers lose lots of money in the Triad. I do not think he will mind. But there was one guy that raced, I will not say his name. You probably know him. But anyway, there was about nine million in this house in Summerfield. It sold for two point three. Now, I am not math genius, but that number is going the wrong way.
Jason: The good thing is he probably made that up in a weekend, so it is all to scale. But you would not call that a very good investment. Right?
Jason: So, you have got to do smart, too. Being too ornate also an issue that we see. So sometimes flashy just does not work.
Jason: But in Beverly Hills, it may. So, you have just got to be smart with the demographic and the area that you are working within. You still have to remember hey, it is the south, and most people here are going to be a little more conservative, a little less flashy as opposed to in New York City.
Jason: So, you just have to keep those things in proportion.
JB: Well, is there any additional requirements to look at luxury homes?
Jason: There really should not be, but we, they do put this double standard out there. Luxury owners want to ensure that the buyer is qualified, or they have the cash to purchase their house before someone comes to look at it.
Jason: Now the truth is all owners want that, JB. Right?
Jason: But here is the problem. We have got a bunch of lazy agents that just want to go out here and pop tart up and go show houses and not ask the questions to say hey, can you actually do what you want to do here? Can you actually purchase the home? So, it is a double standard. It should not be, and it is ridiculous. I will say this – it has gotten better over the years. Thank goodness. So, thank you for the real estate professionals that have stepped up to be professionals and qualify people. I do not care what price range you are in. You do not want some stranger walking through your house unless you know they can actually buy it.
Jason: It is just common sense.
JB: It sure is.
Jason: It should not be a luxury thing, but that is one of the big differences that we see in luxury. They are like no, you are not coming unless you can prove. And most of them are happy to because well, they have the money to do it.
JB: There you go.
Jason: So anyway, all right, guys, we are going to wrap this one up. Everybody have a great weekend. If you want to know more about luxury, go to Jason Bramblett dot com. We will see you next week. Right here.
JB: All right. Have a great weekend everyone.