JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and along with Jason for the next thirty minutes, we are going to be talking all things real estate. We are live in the studio and we welcome your calls. Give us a call if you have a question for Jason. The number here is (336)553-0796, (336)553-0796. And we say good morning to the man who has always got a plan, Mr. Jason Bramblett.

Jason: Good morning. Good morning.

JB: How are you?

Jason: Good, and you had better have a plan because you are running out of weekends because school is getting ready to start.

JB: Getting into fourth quarter here before long.

Jason: Yes, it is. We were just sitting around yesterday thinking wow, this summer just like gone.

JB: It is gone.

Jason: It is crazy.

JB: Where did it go?

Jason: It goes quick. So, some of you feeling that full-court press on selling the house because it is the getting ready for school time, but you still have the house lingering out there that you would like to cut ties with.

JB: Sure.

Jason: And then you have got a problem. Cannot seem to get anybody to come through it. We are going to talk about that end of summer push to get you over the edge. Then also we have some folks that are just like well, should I just throw in the towel and give up?

JB: No, do not do that.

Jason: That is no fun. You cannot sell it without having it on the market, right?

JB: That is right.

Jason: We have got to have something for these folks to buy out here. Then it is funny because I have talked to other brokers in the community and different things over the weekend, and they are just like man, everything is selling but my stuff. What is up? They are good agents. It happens. It is not you. Let's figure it out. I do not know what is going on.

JB: There is no problem. There are only solutions.

Jason: That is, it. That is, it. Most of the time it is, well, if we really dig in and look at the data and look at the stuff, most of the time the house has some characteristics of which are not the most desirable.

JB: Gotcha.

Jason: In real estate terms, we call it you have got functional obsolescence. Meaning it works but there is not anybody who wants it.

JB: I like that. I like that fancy word.

Jason: You have got some obsolescence going on, and we can help you fix that. Putting lipstick on a pig is not going to work either.

JB: That is right.

Jason: We have got to really get in there and fix it. That is the key. We have got that plus your emails, your questions. You can give us a call, (336)553-0796. And of course, you can always get us at the office at (336)553-0796.

JB: Well, let's jump right in there, Jason. Let's talk about not being able to find a house to buy. I hear there are some frustrated buyers out there in the market.

Jason: Oh, for sure. Definitely. As a matter of fact, about every show I am getting emails about well, I cannot find this. I can sense the frustration out there. The problem is what you want is what everybody wants. Everybody, I should not say everybody. Most people, the majority of people buying right now are looking for something that is basically taken care of. No lack of maintenance. We have talked about that. The deferred maintenance is killing probably three to four hundred of you on the market.

JB: Right.

Jason: You just need to take a weekend, hire a handyman, spend a couple thousand bucks, and get it knocked out. When they come up and you have got rotted trim boards, all the eaves, all the dormer boards are rotted. They are turned off right away.

JB: Right.

Jason: This is a generation that is buying now that is not going to take over your problems.

JB: Right.

Jason: So, if your house has got problems, well, guess what? It is going to be your problems and your house for a little bit longer.

JB: There you go.

Jason: Because they do not want it. The other thing we are seeing is there is this little learning curve going on out here with these buyers. That is part of the frustration, too, because it is just not like it is on TV, Jason. I watch it every week and Episode 1, 2, 3, and 4 are all the same. Everybody wins. I am not winning, and this is not fun.

JB: And it all happens in twenty-two minutes.

Jason: Exactly.

JB: And it is resolved, and everybody is happy.

Jason: And they have got a commercial break in the middle and everything.

JB: What is up with that?

Jason: I am out here every weekend, and I cannot seem to, my luck is not, my luck tree is not forming or something. But here is the thing, guys, and this is what you do not see on reality TV because it is kind of frustrating. Like what you are dealing with. There is not a TV miniseries, I do not think, ever since I have been alive that is called the frustration. That is typically not it. Why do we gravitate toward TV? It is usually because somebody is winning.

JB: That is right.

Jason: Or somebody is losing really bad. One of the two. The middle stuff, no, there is no series called the frustration out there. Nobody would watch that. But you are living it, right? Because you showed up to the house, and guess what? Three other people are there, and they are bidding on the house, too. Let's just say, we will make up numbers. Say it is two hundred and twenty-five thousand. Well, here is the thing. You could have, you have got to have the best terms to win. Okay? It is not necessarily price. Do not get suckered in to price. But it does have influence. So, price is also in there, but it could be closing date or time, or you are going to take the house as is, and this offer wants something fixed up or whatever. But here is what I know for sure. If you are going to lead in with a multiple offer situation, and your offer is two hundred thousand dollars on two-twenty-five, and you want six thousand in closing costs, you probably are not getting the house.

JB: Right.

Jason: That is just, and you cannot get frustrated when you do not. We have some young folks out here that are stepping into the market, and they are out here dropping bombs on some of these owners, and then they are getting mad when either the owner does not respond at all, just says whatever.

JB: Right.

Jason: Or they have three offers and they did not take theirs. Well, yours was twenty thousand below asking price. Here come the comments. Well, I am not going to pay full price. I have got to get a deal. You are not old enough to get a deal. Okay? I am sorry. The market crashed when you were riding your ten-speed. Not ten-speed

JB: Your tricycle.

Jason: Your tricycle.

JB: Right.

Jason: It is not going to happen. You missed it. It is not your time.

JB: Right.

Jason: Okay, and you cannot go back and watch reruns from 2012 and think that it is the same. No. It does not work that way. We have got to deal with 2018 and what is happening now. What is happening now in certain price ranges, there is such a lack of inventory, you are going to have to be competitive. I do not want you to overpay, and the bank is not going to let you anyway. So, do not even fear that part. They are scrutinizing these things left and right. But you may have to improve your terms in order to buy. So, you may have to pay the two-twenty-five and pay your own closing costs and not the seller pays it for you. Of course, I know your buddy, three years ago when they bought their house, they got it for twenty-five thousand less, and they got all their closing costs paid, and they even threw in a puppy. Right? But it is a different time. We are not three years ago. It is just not the way it is. Now, I will assure you there are homes on the market that they will pay all your closing costs. They would probably give you a puppy, but they are also in a different price point. In that six, seven, eight, nine-hundred-thousand range. Whew, bubba. It is getting kind of rough.

JB: Yep.

Jason: It is getting kind of rough. It is getting competitive.

JB: Is that right?

Jason: Yeah, the sellers are starting to throw punches at each other. One-ing up. Well, you did this. Well, I will do this. Because there is a limited buyer pool. So, the inventory is actually pretty high in over five hundred thousand range. The inventory is three times, four times what the two-twenty-five range is.

JB: So, you may get a puppy and a kitten.

Jason: You could. You could. As a matter of fact, I think that is probably true. It is interesting that you said that. It just dawned on me, when we bought this farm that we are at, we got two cats with that deal.

JB: Really?

Jason: I do know if

JB: Kind of a barn cat type of thing?

Jason: Yeah, I do not know if that is what pushed my wife over the edge or not, but

JB: Well, they are good to have.

Jason: It is funny. The owner is a great guy, or the previous owner, he is a wonderful guy. He said you will never see those things. They are like feral, they are skittish. Man, my girls have got those things eating out of their hands now. They have got them spoiled to death.

JB: It is amazing what a little cat treat can do.

Jason: Absolutely. And of course, they love that. It is amazing. I was sitting there thinking wait a minute. I think we got suckered in on that two-cat deal. Anyway, but look, things have changed more in the past twelve months in the Triad than they have in the previous ten years.

JB: Wow. Moving fast.

Jason: It moved like that is light speed right there. You just cannot go with what happened to your friends or your family or your mom, your dad, your brother, cousin or whatever it was four years ago because it is way different. Now the previous decade prior to that, no, it was pretty much terrible the whole time.

JB: It was.

Jason: It was pretty predictable, but as they say, times have changed. So now, you have got to be, do some things differently. So, what in the world, outside of price can win? Again, it is those terms. This is where you find the worth of your agent that can coach you through how to win without just offering twenty-five thousand dollars more. Because you could offer twenty-five thousand dollars more, but if you are getting a loan, guess what? It is not going to happen unless you have the money to pay the difference because the bank, just because you qualify for twenty-five thousand more in loan, if the house is not worth it, the bank is not going to stick their neck out. They already did that one time. It did not work out so well.

JB: Yeah, how did that turn out for them?

Jason: Yeah, not so good. So, you have got to find agents with systems also that if you cannot find what you are looking for, that they have the systems in place to go find the gold. Right?

JB: That is right.

Jason: Go find the houses that are out there on the market. If you have hired somebody that all they are doing is looking on the internet or looking on the Multiple List Service, you are going to be in a multiple offer situation all the time.

JB: Right.

Jason: Because that is where everybody is looking. You have got to look, look around the corners. Look in the past. Look for things and look in areas where all the masses are not looking.

JB: Yep.

Jason: It is kind of like if you are looking for a deal on a car, it is usually not at the car dealer.

JB: That is right.

Jason: Because driving down the old highway. Highway 8 in Lexington. Right? Or driving down up in 150 in Summerfield or Oak Ridge or something like that. And then you see one sitting on the side of the road. Then it is like, oh, okay.

JB: Wow.

Jason: That could be a deal, right?

JB: That is right.

Jason: You probably are not going to get one over here off of Wendover though.

JB: Nope.

Jason: You can get them financed over there off Wendover though all day long.

JB: Yes, sir, they will fix you right up.

Jason: They will get you hooked up, but you are not going to, you have got to go hunt.  You have got to go look. You have go find them. That inventory is out there, but you have got to hire the right people that know where to go look that can help you find that to remove that frustration. And then when we find the house with no competition, you have got to do another thing which is listen to us. And you cannot get frustrated if, you cannot go in there and drop a twenty-thousand-dollar bomb on somebody and be upset because they are not going to take your offer.

JB: Right.

Jason: It is just not realistic in this day and time. It is just not where we are at. Things that you can do, and the other thing that you need to do is be prepared. There are a lot of you guys that are running around out here looking at houses on the weekend that you do not even know if you can get a loan. Okay?

JB: Right.

Jason: You have got to be ready to go. Here is a perfect scenario. We have a house that was in Madison, a great property. This kid is wanting this house. All in. Wants to make an offer, and I am like okay, great. Well, we have got to get you to the bank first. I want to see if the owner will take my offer first. I can tell you the answer is no. He is not going to take your offer because it is wind. Nobody even knows if you can do this.

JB: That is right.

Jason: Of course, we sent him to the bank, and not only does he not qualify to buy the house, he could not even afford to buy a room in the house.

JB: Wow.

Jason: Just no credit.

JB: Right.

Jason: That is a frustration, right?

JB: Right.

Jason: Here is where we have seen another way. You have got people out here looking at homes who are not preapproved, and then they find the perfect house, and there are three other people looking at it, and those other three people are one hundred percent ready to go and approved, and it is a Saturday, and you really want the house. The other people already have their letter of approval. You are trying to get to the bank or to a lender to get you approved, and guess what? By the time Monday rolls around, they have already had all three offers, and you are not even in the

JB: You are not even in the mix.

Jason: You are not even in the mix.

JB: You were never there because you did not go get preapproved.

Jason: Exactly. You went to the batter's box with no bat.

JB: That is right.

Jason: You can swing all day, but you are not going to hit anything. So, you have got to be prepared. It is a red flag, folks listening, if anyone qualifies in this mix, if you will, if you tell an agent that you just want to see the house, and then you will get approved, ninety-nine percent of the time, you cannot get approved. We have figured out your plan.

JB: Right.

Jason: You like to go look at pretty houses. Go to open houses and do that. Or go to the builders. They are open all the time. They will let you walk in, and you can dream and all that. But do not get frustrated and mad at the real estate agent if they push you to get prequalified because guess what? No owner wants somebody walking through their house that cannot buy it.

JB: Right.

Jason: That is just common sense, right? And so, just like restaurants are not going to let you come in consistently anyway, eat a whole bunch of food and be like hmm, I do not have any money.

JB: That is what the internet is for. You can search all day and look at the pretty houses.

Jason: That is, it.

JB: Their time is money, too, so let them do their jobs.

Jason: That is right. That is right. All right. Let's do this, JB. Let's go pay some bills.

JB: Sounds good.

Jason: Take a quick break. We will be back. We are going to dig into getting a house sold. If you are in that full-court press time is running short, stay tuned. We will be right back.

JB: We will be right back. Stay with us folks. (in/out music) And welcome back to Real Estate 911 with your host Jason Bramblett. I am JB. Jason, before the break and earlier, you were talking about there are a lot of owners out there that might be having trouble selling their houses. That seems a bit odd to me considering what we just talked about.

Jason: We were just talking about multiple offers and the market is heated up and all that. Yeah, it is a head-scratcher because it is a weird demographic in that a lot of the properties in the right price ranges are flying, but here is what we are noticing. The age. The age factor is coming in. Even if you have actually, we have found this, too, you may have a really quality home, but if you are in that seventeen to twenty-two-year range, that is the dead zone.

JB: Really?

Jason: Unless you have replaced some stuff. Here is the issue that we are seeing is the major ticket stuff. So, your roof, heating and cooling systems and the water heater. The water heater is becoming less and less of an issue because thirteen, fourteen hundred bucks, you can swap one out now.

JB: Right.

Jason: Not as big of a deal as it used to be. But the roof and the heating and the cooling systems, because it usually has more than one, now you are talking bucks.

JB: Yeah, you are. You are getting on up there.

Jason: And if you are limited cash, and let's face it, most people are putting down as least money as possible, yes folks, the most popular loan right now is the hundred percent loan. It is unbelievable, but it is out there. We actually had one of our, Dave Held with Caliber came in. It was interesting. A good portion of their loans are through North Carolina Housing, which is typically a minimum of three to three-and-a-half percent down, a very low-down payment.

JB: Right.

Jason: So, we are seeing back again. Folks are putting as little money down as possible.

JB: Wow.

Jason: So that just leads to you have got to be careful down the road because you can get yourself in trouble.

JB: We have been down that road before, too, haven't we?

Jason: Yeah, that is right. We have. Absolutely. Absolutely. This is an issue that we are seeing. This is not just like there are four of you out here. There are hundreds and hundreds of homes in the Triad that are for sale between that seventeen to twenty-two range, and the owners are like, but my roof is not leaking. Right. But somebody has got to write a check pretty soon. Sooner than later for sure.

JB: That is right. It is going to happen.

Jason: Let's face it. It is not going to go another twenty years more than likely on the original roof.

JB: Exactly.

Jason: So, this is what the buyers are looking at. The buyers do not have the capital to take that risk. They are putting the least money down, not because they want to. It is because that is all they have got.

JB: Right.

Jason: They are looking at this going how am I going to turn around and drop ten or fifteen thousand dollars in these items. Simply they cannot. So, what do they do? They migrate to newer homes. This is why you see new construction going crazy around here. It is because well, let's face it. If you are a broke person, you need to buy a new house. That is all there is to it. The less money or disposable money that you have or if you are incapable of budgeting, and we are going to talk a little bit about that, but if you cannot do that and you do not have that discipline, then you need to buy a pretty new house. Or a brand-new house. Because everything is under warranty.

JB: Yep.

Jason: You definitely do not need to buy a nineteen-year-old house with all original equipment if you are broke.

JB: Right.

Jason: Because it is going to be cold in your house in the winter. Because when the furnace breaks, you are not going to be able to go out there and just get another one.

JB: Right. You do not need the fixer-upper.

Jason: Exactly. Or you are going to do something real smart, which is get one of these big corporations to come out there and they will put a new heating system in for you for twenty-nine percent interest.

JB: Right.

Jason: You do not want to do that. That is just stupid times three right there. So, you need to be your own bank on these things. So, what we teach folks is this. You need to set up what is called a sinking fund. And a sinking fund is simply setting money aside. It is a savings account essentially for your house. All right? If you just bought a new house, let's just say you bought a new one. One hundred dollars a month is what you need to set aside, and then by the time you need to replace your roof or your heating and cooling or whatever, you will have the cash to do it. If you cannot save one hundred dollars a month for future maintenance on your home, you should not have bought the house.

JB: Right.

Jason: You bought too much house. You need to be able to take one hundred dollars a month, put it in an account because in fifteen years, when you need the money to put the roof on, you have got it. You have got eighteen to twenty thousand dollars sitting there. Well, what if I sell the house in ten? Great. You have got nine thousand to carry forward to your next home.

JB: There you go.

Jason: Or use it for something else. Or if you end up buying new homes all the time, great. But eventually, there is going to be a cost somewhere if you carry home, the systems past their useful life.

JB: Right.

Jason: Somebody is going to have to write the check for the roof.

JB: Right.

Jason: Now I know some of you, your plan is you have studied the weather of the area and you are confident you have bought the perfect house in the perfect hailstorm line, and your whole financial plan for your roof is a hailstorm and getting the insurance guy to pay for it, and you make the deductible. That is not a great plan, guys. But for some of you, you have lucked out. I have talked to you many times. There is no hailstorm damage for your heating and cooling system though.

JB: That is right.

Jason: You actually do need to be prepared for that. Okay?

JB: That is right.

Jason: Now here is the thing. If you bought a house that is ten years old, and you plan on staying fifteen years, well guess what? You have got to save pretty much double. So, you need to be setting aside about two hundred dollars a month. Why? You just cut the time in half.

JB: Right.

Jason: Set aside two hundred dollars so that way when the system breaks you are prepared and you are ready to go, and you have got the cash and it is not a financial burden. It is like kids and clothes. When they are young, they grow. Like some of you parents are going to experience this in just a little bit. School shopping, right?

JB: Yep.

Jason: And you go tell Johnny, Johnny, go put on our pants and they are up to his knees.

JB: He has got the high waters.

Jason: Exactly because he grew four-and-a-half inches over the summer.

JB: Right.

Jason: And he hasn't worn shoes. He has been in shorts and barefoot all summer long. All of a sudden, you are like wow, pants.

JB: Oh, you grew.

Jason: Same stuff with your house, guys. You are going to spend a few thousand dollars a year typically on your house to keep it up, average it out, it is going to be a few thousand dollars a year to keep it up.

JB: Right.

Jason: Make sure the wood is not rotting. Just stay on top of that stuff. It is cheaper to do that than to let it go as some of you have, and the house is just destroyed. I do not want to say destroyed, but it is rough. And you know what I mean. And if you walk around your house and every other board is rotted three-and-a-half to four inches up, it needs to be done. These younger folks are not going to buy your house. They are just going to go get a newer one or they are going to find someone who has maintained it.

JB: Yep.

Jason: So, if you have got this roof issue as an owner, this is one of your big challenges. You may need to consider putting a new roof on because if you get an eighteen, nineteen-year-old house, and all of your competition still has their original roof, and you do not, guess what? You are the first one out.

JB: Yep.

Jason: Guaranteed one hundred percent of the time. You are the first guy to sell. The next guy selling will be the guy that watched you and said oh, he put a roof on. Maybe we are going to do that, too. Anyway, as we have talked, landscaping is we go through stuff. Getting the house prepared. Some of you, the landscaping is just, it has eaten the whole house, and less is more. All right. Think about that. You can't let your holly bushes become the holly trees that ate the house. You have got to get them taken care.

JB: The holly forest now.

Jason: Exactly. Some of you will be surprised that there is even a house behind some of the bushes, right? Those are the tough ones. Next week we are going to dig into getting into really more detail what we can do to fix up your house with as small a budget as possible. Get that bang for the buck to get these homes sold that have been sitting. But guys, it really is go through your house. Start at the front door. Walk through. Make a list, get it fixed. It will sell. I promise you. These deferred maintenance homes are tough. So, you can call us at 553-0796 at the office. We will be happy to sit down with you and go through our plan for your house.


JB: All right. Have a great weekend. Great show.