JASON BRAMBLETT RADIO SHOW PODCAST
JB: Well, good morning and welcome to Real Estate 911 with your host Jason Bramblett. I am JB, and for the next hour, we are going to be taking your calls and talking all things real estate. We invite your calls if you have a question or comment for Jason. Our phone lines are open. Give us a call. (336)553-0796. That is (336)553-0796. And we welcome the man with the plan, Mr. Jason Bramblett. Good morning to you.
Jason: Good morning. Good morning. Hope everyone is doing well today.
JB: How are you?
Jason: It is good. It is going to be a little steamy today.
JB: Little warm. It is summertime here in the Piedmont.
Jason: I do not remember. Was it last Sunday we had that nice little cool 70-degree day?
Jason: Man, I'd take that back. That was perfect.
JB: It was.
Jason: It really was perfect. But anyway, it is North Carolina and July, so you are going to deal with a little bit of humidity.
JB: Yes, welcome to the swamp.
Jason: That is right. That is right. There are two swamps. There is this one and there is the one to the north.
JB: That is right.
Jason: And this one here, you really cannot do much about it. You just got to deal with it. Hey, we've got a lot – we did a show on luxury, a show on luxury real estate last week, and man, we got a lot of inquiries. I wanted to dig into a little bit more about that and kind of talk about the problems people in this luxury market are having selling their homes. It is something we have seen for years. We did that show last week, and I tell you, we have had a lot of folks just share with us some frustrations that they have had, and some of them for quite some time. But we are going to dig into that. Some of the most difficult real estate to sell, to kind of move is really luxury and we are going to break down why, what those reasons are.
Jason: But here is the thing. The truth really, it is the same thing for all price ranges. There is really nothing special about luxury. It would be true of a $100,000 as well it would a million-dollar home.
Jason: The difference is the zeroes though. It definitely, there is definitely a difference in the zeroes and also size, which obviously adds to cost, and so there are some struggles there. So, we are going to dig into that, talk about that. And thinking about buying in Greensboro, being like the city limits of Greensboro. I have some pretty big news for you, so you may want to stay tuned if you are considering moving to the great city of Greensboro because it has to do with some money. How about that?
JB: Oh, yeah.
Jason: So that's always a good thing. We have got that. We have got your emails. We have got your calls. You can get in touch with us right here. It is 553-0796. Let's dig in, JB. Let's see what we can stir up. Let's stir the pudding a little bit today.
JB: Let's stir the pudding. Well, let's just dig into that luxury real estate issue you were talking about. You mean to say that people with money have problems, too? What is going on there?
Jason: Right? Come on. I thought money fixed everything. Can you tell all those people who win the lottery? They never go broke, do they?
JB: No. Everything is always hunky dory for them.
Jason: Just perfect after that. Life is just bliss. Right?
Jason: That is why you see all the celebrities, oh well, we'll just leave that alone. How about that? You just watch the TV. It tells you all you need.
JB: There you go.
Jason: But they do have issues, and here is what we have seen in the luxury market for quite some time. And first, what is luxury?
JB: Yeah, you might want to define that.
Jason: In the Triad area, and this is not my number, folks. Do not get mad at me if you did not make the cut, but this is just kind of real estate –
JB: We are just talking numbers here.
Jason: It is about $525,000 and above they consider that luxury. Okay?
Jason: Who is they? I do not know. It is whoever put the stupid poll together. Right? I do not know. But if you are five twenty-four, do not get your feelings hurt. You are still luxury.
JB: You are still good. Do not worry about it.
Jason: Here is the thing. If you are two-twenty in my book, you are luxury, right?
Jason: Because as we have said, luxury, in my opinion, is actually not about the price at all. It is more about the experience.
Jason: And that is really what separates it out. But number one problem, and this is something that happens. They used to have money, and times have changed just a little bit. So, what has happened is they have too much of their wealth tied up in their house.
Jason: So, they either owned a business or had a career where they had a really good income, and they were doing well fifteen years ago making maybe whatever, maybe they were making a million dollars a year, whatever it was. They bought a really big house, a really expensive home.
Jason: But things have changed, and their business is not quite what it was or maybe they have sold the business, and now they have a really big house that is paid for. But what they do not have is a million coming in anymore. And unfortunately, they are kind of stuck in that they do not want to unplug money from retirement that is earning them money to fix or update that big house that they have that is paid for.
Jason: And they do not necessarily want to take an equity line out because again that is borrowing money. So, they have got a cashflow issue. And that is really all it comes down to. Now that is not to say that nobody wants luxury because people do. People want luxury. They just do not want yours. And what is up with that?
Jason: My luxury is nice is what you are saying, correct?
JB: That is right.
Jason: Why not yours? Because it is outdated. And even people with money that just, they do not want an outdated house.
Jason: And this is something I have seen trend in time and time and time and time again over twenty years, there are very few locations in the Triad, few in Winston, few in Greensboro, where a dated luxury home can sell. But it is about three neighborhoods, and outside of that, you are toast.
Jason: If you do not keep up with the times, you are going to get left – there is a beautiful house over in Burlington. $2.2million foreclosure. This house is lights out amazing. Forty acres over a lake, infinity pool, amazing. But the décor, hmmmm, just a little bit odd.
Jason: And it was odd enough, I guess, that they could not sell it. Obviously, these people had a mortgage on it, and now the bank owns it. It is not easy to get rid of a two-million-dollar foreclosure.
Jason: And so that bank is probably going to own that for a little while. And I cannot even imagine what they are spending a month in cutting grass. It is forty acres of grass, man. This thing is a monster. Beautiful. But anyway, great deal if you want to look at a two-million-dollar foreclosure, and you have two million dollars cash. We will be happy to show it to you because they do require that you prove that you have the money before they open the door.
Jason: The banks are smart that way. They just do not want to waste their time with a bunch of lookie-loos. You show me you got the two million, we will open the door. You don't? Have a good day. But here is the thing. You have got to get it up to standard, okay? Or here is the other thing. You are going to have to discount the heck out of it to get it sold. That is the tough part because you have put your blood, sweat, and tears money of owning a business or working your career for years and years and years. You paid two million dollars for the property, but unfortunately, it is fifteen years later or longer than that, and I do not have a lot of people searching for 1992 motif homes.
JB: That is right.
Jason: They don't. They want the modern kitchen. They want everything kind of up. Now I know some of you guys will be like well, excuse me, Jason, my house is Rockefeller this and it is bespoke. Did you know that was a word, JB?
JB: I did not know.
Jason: I was looking at some luxury real estate, and this person described this house – it has a bespoke fireplace. I thought what in the, is that a name brand? That is actually a word. It means it is a rich people word. Bespoke. And your Chippendale furniture. Okay? Here is the deal. Burn it because nobody cares, and that is the truth. And I know that is probably not what you want to hear, and a lot of you have these great antiques. Antiques make things look old.
Jason: If you are living in little house on the prairie, that is fine. But if you are living in a city in the Triad, and you want millions of dollars for your property, and it looks like it was designed in 1830, you are not going to attract that many buyers.
JB: That is right.
Jason: You have to change. Okay? And the folks that may like what you have, we are finding out that they are not buying big homes. That they do not want them anymore. Very few do. So, what we are seeing is these huge discounts. I will tell you about a home that we have watched for sale for over a decade, and it is huge. It is seventeen-thousand square feet. Okay?
Jason: It started at about four, four-and-a-half million dollars. Okay? The last list price on it was eight-forty.
Jason: It never sold. It is still available. Okay? And that is over a good ten to fifteen-year time on the market. Almost on the market every year for an entire year for the last fifteen years. Guys, you do not even have to be in real estate to figure it out. If you have been on the market for ten years, there is something wrong with your house.
JB: Something is going on.
Jason: You have just got to make some changes. If you are unsure about your house measuring up to luxury or non-luxury, maybe you do not even have a luxury home. That is okay. Give us a call. We will be happy to walk you through and tell you honestly why your home is not selling. And we will be very direct. Why? Because here is the thing. Most of you blame the real estate people, and I do agree. If you are a real estate agent, and you just list homes to list homes, and you tell people lies to get your sign in the yard, you should be in another industry. Okay?
Jason: Here is a good measurement for that. If you have listed the home and you have had to reduce the price a couple hundred thousand dollars, that is what we call buying the listing. Meaning they just told you whatever you want to hear to get their sign in the yard, so they could look pretty.
JB: That is right.
Jason: But it did not help your situation. And most people that we talk to about selling their homes, they do not look at that in decades. Right? I would like to sell my home in the next decade. No. They would like to do it in probably like the next ninety days.
Jason: So, if you have had your home on the market for a decade and you just need somebody to get real with you, I would be happy to do that. Not that I know all there is to know about real estate by any means, but I do know ugly, and I can help you there. Right? I can help you there. If you need somebody to say man, the baby is ugly. We will help you with that. I have trained my brokers to know how to do that, okay? And here is the thing. It is not to be mean. We want to help you get to where you can get sold. Maybe that means investing money in your home. Maybe that means putting some capital back in there. I do not know what. Or maybe discounting the price. We will look at everything. In the past week, we have had two people come in with some really amazing homes. At one point in time they were amazing. They are just dated.
Jason: And they both have been on the market for over ten years.
Jason: And one of them probably will never sell. I told the owner that you might as well make estate plans and give it to the kids or the church because I’m sorry, nobody is going to buy this house. And it has been for sale for ten years. I am leaning towards that is probably an accurate statement. At least at the price it is for sure. Those are tough conversations to have, but they do need, people are coming to us for advice, and that is what we want to help them kind of see the thirty-thousand-foot view. Because sometimes when you are in it, you cannot see it. It is tough.
Jason: And of course, you did it and it was your dream, and we hang onto those things, too.
Jason: We hang onto those dreams. We want everything to be like it was at the pinnacle.
JB: In the heyday.
Jason: In the heyday. But here is the thing. Time waits for nobody.
JB: That is right.
Jason: And it is moving on.
JB: It is moving.
Jason: Here's one thing I do know for sure. You will leave that house one day.
JB: That's right.
Jason: For sure. Now what happens to it after that, I do not know. But you will leave one day. That is for sure. Sometimes we have got to look at putting a couple hundred thousand dollars into the property to get it up to speed. Get it up to snuff. And we are talking big homes, ten thousand square feet. We are talking some large homes in the Triad area that have been sitting for years and years and years, and maybe you just need somebody to kind of give you the push, if you will. Or maybe you need to discount them five, seven hundred thousand dollars. Five hundred to seven hundred thousand bucks may do it. Now I know that some of you are like wait a minute. You just said put two hundred in, but you are discounting it five hundred to seven hundred? Well, yeah. People who have money want to make money. If I am going to do all the work, if I am going to take my time, energy, and my capital and put two hundred thousand dollars in a house, I am not going to put two hundred thousand dollars in the house just to get two hundred thousand dollars. I want to get a reward for doing what you were not willing to do.
Jason: Right? It is called equity. Some people call it sweat equity. Most people in the luxury market do not call it sweat equity because they are not doing the work.
JB: That is right.
Jason: But it works the same in all price ranges. It is just sometimes you are doing work and sometimes it is contractors doing the work, but somebody has got to do it, and if somebody has got to do it, they want a reward for that.
Jason: Nobody is going to want to do it for free. Alright, JB, now that I've made everybody mad that has a luxury home that has been on the market for a long time. I know it is fantastic. I know it is wonderful, but sometimes you need to get real. Anyway, let's do this. Let's take a break.
Jason: Let everybody go get some coffee and they can stop throwing darts at my photo.
JB: That is okay.
Jason: And we will come back. We are still going to get you fixed, guys. I promise. Come back here in just a minute. We will be right back.
JB: All right. Stay with us, folks. You are listening to Triad Real Estate 911 with your host Jason Bramblett. We're coming right back. Stay with us. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. Before the break there we were talking about luxury homes and everything. And Jason, it seems that these are the same issues we discuss with all homes, and these just have bigger numbers.
Jason: That is true.
JB: Just another zero.
Jason: It really is. It is really the same thing. The higher you go, you just have less buyers, right? Because not everybody can own a two-million-dollar house.
JB: That is right.
Jason: You know it is interesting because if you go lower, you have got less buyers, too, because not very many people want a house that is fifty thousand and under.
JB: There you go.
Jason: You have got extremes on both ends.
Jason: Obviously, the most buyers are in the middle, right? That is the economics of everything. Buyers today, and here is what we find. They just, they are not going to deal with your neglected lack of maintenance house. I know some of you because we talk to you every single day will say, well, if it is good enough for me, it is good enough for them. No, that is not true. And you will not sell. I do not know what it is, but this generation now, so pretty much like forty years and under, and those are the people that are buying houses by the way, they do not want your problems.
Jason: They do not want your rotted wood, your crooked deck, your this and that. The other thing they do not want is they do not like the do-it-yourself projects.
Jason: They want it professionally done. And these are the same kids and people that I hear that are not taking their TVs to the repair man. Right? They chuck it in the dumpster and they go buy a new one.
Jason: And that is just the generation that we are in.
JB: That is, it.
Jason: Us old people, older people, I see this with my mission’s trips that we do. I cannot get the young folks, they do not know how to do anything. We go down to different countries and build churches and houses and those things. It is just me and the old guys. It is just how it is because they are the generation that would call your buddy and hey, we're going to put a deck on. Can you help me out?
Jason: And they would do it. Or they would add a bath onto the house or they built a barn, or they built an out building. I'm not saying that all, I should not say all young folks are that way, but proportionally, most of them are.
Jason: It is a disposable generation. We just go get something new when it breaks.
JB: It is true.
Jason: Us older folks do that, too. We do. I have fallen into that where it is just like you know what? I could probably rig this thing to make it work, but they are only $19.95, and Amazon will bring it to you.
JB: That is right. See I am old school. I will take something apart and mess with it for a week until it is just all hope is over.
JB: Just ask my wife. There is like I do not want to throw that TV out. I can fix it.
JB: But no, you are exactly right. This generation they will chuck it.
Jason: They will. And right now, that is sixty-five percent of home buyers.
Jason: It is huge. A huge number, folks. But just as I have been saying for ten years on the radio. No one wants your brass shiny house for top dollar. Right?
JB: That is right.
Jason: You are going to have to make adjustments. You are going to have to change the knobs and the hinges and the fixtures or be prepared to take less money.
Jason: And it is the same in luxury as it is in your two-hundred-thousand-dollar house. The numbers, the buyer's appeal is the same. You have got to get your home to appeal to the most people. That is just the key. If you have got rotted wood, I do not know, I cannot get there in my brain or mind why you would even want to put your house on the market with rotted wood.
Jason: But here is what I know. You can go to Zillow or the MLS or realtor dot com, there is no rotted wood feature drop down. Okay? And here is a good one. Blown-out, fogged windows. That is not a feature. If you do not believe me, stop what you are doing, go to Zillow and look for the blown-out, cannot see through the windows feature.
Jason: It does not exist.
JB: That is right.
Jason: How about sprouts in your gutters? Because everybody is looking for a gutter garden, right?
Jason: No, it is not there. You think I am kidding, and you can go online right now to any of the major portals and I promise you will find over a hundred homes that that is the truth. A minimum. Probably way more than a hundred. Then you wonder why no one is showing up to look. And you can see the problems in the picture, and your price does not reflect the condition. It is one or the other; either fix it or you have got to make the price adjustment. Anyway, I know that is not what you want to hear, but it is the truth. So, if you need a friend to tell you your baby is ugly --
JB: That is right.
Jason: Call me. I'll be happy to do it. Because you just need the truth. Here is the thing. You are making a lot of plans hinging on this happening at this price. And sometimes you just need somebody to come over and tell you it is never going to happen at that price.
Jason: You have got to either move your plan A or you are going to have to go to plan B.
Jason: But plan A is not going to happen at the pinnacle. That is where I get so frustrated with real estate people in general. Quit lying to folks just to get your stupid sign in the yard.
Jason: It is their life you are messing with. Right? Be truthful and tell them it is not going to happen. Just do not appease them and say whatever, listen and oh yeah, your house is so pretty. I am sure we can get two point five million for it when you know, no, or two hundred thousand. You have to be realistic and be truthful with them. Here is the other thing. Sometimes it is not as bad as you think.
Jason: We see this a lot. We have counseling sessions with our owners and they are like well, that is going to be forty-five thousand dollars to get this done. No, actually it is not. We just had this situation where the owner thought it was going to cost at least forty grand to fix up their house, and we got it done for less than half of that.
Jason: Because you do not do this every day, folks. We do not expect you to know the prices and the contractors and the connections. That is what we are here for. That is what we are here to help you with. Anyway, all right, JB, before we run out of time, I do want to talk about this Greensboro thing.
JB: Yeah, what is going on?
Jason: So, Greensboro, this is a love-hate thing for me. So, Greensboro has got a little extra money. They have raised up some bond money and it is just sitting in the old piggy bank down there, and they are like well, we have got to do something with it. I do not know. My first thought would have been give it back to the taxpayers.
Jason: Just an idea.
JB: Off the cuff there. Right?
Jason: That is a big floater, I know. Well, nah. That is not going to work. So here is what we are going to do. We are going to give it to first-time homebuyers, which okay, fine. Plan A would have been just give it back, but it is government, and once they get it, they do not typically give it back.
Jason: Just the truth.
Jason: So, they have some bond money they need to burn through. How much? I was told a lot.
JB: Oh really?
Jason: I do not know what that number is.
JB: That is an official statement.
Jason: That is an official statement from the Greensboro, City of Greensboro, how much money? A lot. Okay. So here is the thing. If you are a first-time homebuyer, first-time homebuyer means you have never owned one and or you have not owned a home in three years. You automatically become a newbie after three years. You could qualify in the city limits of Greensboro to get a ten-thousand-dollar down payment assistance.
Jason: It is forgiven in five years. So, twenty percent a year. If you sell your house in year four, you are going to have to give a little bit back. If you keep it more than five years, you do not own anything. Ten grand. That is pretty good.
Jason: City limits of Greensboro, okay. There are some qualifications. You have got certain income restrictions. You have got to qualify for a thirty-year loan, and you have got to take an eight-hour class, but we can get your more information about. So, if you want to know about how to get ten thousand dollars in basically free money, if you stay for five years in the City of Greensboro, give us a call. We will be happy to get you all the information. It is (336)553-0796 or go to Jason Bramblett dot com. All right. Next week, we may be giving away more money in a different city next week. We will find out.
JB: You never know.
Jason: Stay tuned. Everybody have a great weekend.
JB: All right. Thanks, Jason. Great show. Talk to you next week.