JASON BRAMBLETT RADIO SHOW PODCAST
JB: Good morning. 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. We are live in the studio on this somewhat rainy Saturday morning. We invite your calls if you have a question or comment for Jason. The phone lines are open at (336) 553-0796. That is (336) 553-0796. And we say good morning to the man who has his name on the radio program, Mr. Jason Bramblett.
Jason: Good morning everybody.
JB: How are you doing?
Jason: I am good, good. I am feeling the fall.
JB: I love it.
Jason: I do, too.
JB: I love it.
Jason: This is the finally, the past couple of, Friday, oh my goodness. It was nice. Everybody left work early except a few of us.
JB: Except me.
Jason: Except me. There were a few of us.
JB: It was nice.
Jason: It was amazing. It actually wasn’t, when I got up this morning, it was not raining. I did not even know it had rained until I walked out of the office.
JB: Yeah, just a little bit of drizzly stuff out there. Nothing heavy, and I think it is going to get on out of here before tomorrow. But yeah, just a little bit of showers here in Greensboro.
Jason: That is, it. So hopefully we will have some of that good fall weather. Maybe the leaves will change if they did not all get blown out of the trees with the hurricane. Who knows?
Jason: We are going to dig into new construction today. We have not done a new construction show in a while actually. I do not think we have done one in a year. So, I apologize for all of you folks that bought a new house that did not have our guidance. Man. No, kidding. But we do want to get you on track to make sure that you do not make a mistake. Real estate is interesting. Everybody knows everything about it, but nobody does it.
JB: That is right.
Jason: It is amazing to me. It is kind of like other fields, I guess. I talk to people, when was the last time you sold a house? Fourteen years ago. Oh, so you are an expert? Right?
Jason: Because you did it twice in your life.
Jason: No. We are going to dig into that because most of you have not bought a house or built one, I should say. We do that every day and so we are going to walk you through some of the pitfalls. One thing is it smart? Is it smart? Is it stupid? I do not know.
Jason: Some people are like I do not know. What should I do? We are going to talk about should I build, should I not, how do I find a good builder, how do I not find a good builder, what are some of the pitfalls I go through? Who does the builder work for?
Jason: There is something to think about. These onsite agents, are they working for me? They say they are a real estate agent. Real estate agents work for me. Right?
Jason: I do not know. Do they? It could be. It could be a wolf. It could be a sheep. I do not know. We are going to dig into it and find out. Can you get scammed in building a house? I bet somebody could call in and say yeah, you probably could. Some of the builders might call in and say yeah, you can. Who would do such a thing? Your horror stories and all that coming up. We are going to dig into this, so stay tuned. We have got 22 minutes of radio bliss coming right at you.
JB: Jason, I like the way this is going to start already. Let’s kick it off. Why should I build a home and is building a smart move right now?
Jason: Two questions that really actually go hand-in-hand with one another. Let’s see, so first, let’s dig in. Who should really buy a new house? The type of new house is really important as well. So first-time buyers, what I teach our agents is first-time buyers that have basically little to no money, they are really the ones that should buy new, newer for sure. Really, you probably should not buy at all probably. It is the truth. The bottom line is you really should not even probably buy a house because you are broke.
JB: You are not going to tell them to get a van down by the river now, are you?
Jason: No, no. They do not need to do that. No, no. But maybe they might. I do not know.
JB: I am just kidding.
Jason: Gosh, guys, come on. If you do not have any money, you should not buy a house. It is just the bottom line.
JB: Yeah, it is common sense.
Jason: Now, here is the thing. Knowing that you are going to go do stupid and do it, we are going to try and help you out though. Okay? Because it is just, we do not want you to do stupid twice. It is bad enough just to do it. Now we are going to try to maybe assist you in not doing it so dumb. Here is the thing. It is just like kids. Right? Do not do that, and you know they are going to do it anyway. So, you try to guide them as best you can, and that is what we want to do. So, if you are broke, you do need to buy a newer house or a new one, and here is why. Because you have no money, and warranties are going to become your friend --
Jason: -- when something breaks. So, the builder in North Carolina is going to provide a one-year warranty, which is great. You have got some help there if something should go a little sideways on you. Most of your systems, your heating and cooling system, your appliances, they all have manufacturer’s warranties, and those may run anywhere between three years to ten years depending on the type of product that you are buying and the type of warranties that they have. Better the product, I typically find the better warranty. If you are comparing heating and cooling systems, and one has a three-year warranty and one has a ten, I am kind of going to bet on the ten-year guy because he at least believes his stuff is going to last a decade. Right?
JB: That is right.
Jason: It is kind of no brainer. There is a guy I know that installs heating and cooling systems. They do a lifetime warranty.
Jason: That is pretty significant.
JB: That is strong.
Jason: They are pretty confident in their product that it is going to work and not going to break down. It does cost you a pretty little penny upfront. But you really do not have to worry about much after that.
Jason: It is not a terrible thing. Pretty much anything else that goes wrong your homeowner’s insurance policy is going to cover that. So that means if you burn down the house, you are good.
Jason: Let’s hope that does not happen.
JB: We do not want that to happen.
Jason: So here is a tip. You just bought your new house? Thanksgiving is around the corner. No, do not deep fry that turkey in the garage.
JB: Oh no.
Jason: We read about that every year. I do not know why. I know it is raining outside. See people, they are smart, JB.
Jason: And here is what they do. They go fire, grease, water, raining. Do not want to go outside and deep fry the turkey because we can already know when the water hits the grease, it is going to be a problem.
Jason: So, we are going to pull all that flaming 5000 BTUs and all that great carbon monoxide, we are going to bring it in to the garage, we will leave the door open because –
JB: Yeah, ventilation. Right.
Jason: But what we forget is that inside that bird, it was frozen, and it is icy. Or I did not dry it off 100%, and you drop it in that grease, and baby, it is game on then.
JB: As Scooby Doo would say, rut roh.
Jason: Yeah, many, many a garage fire has happened on Thanksgiving Day. Be cautious, folks. You do not want to do that in your new house. Here is the other person that really needs to consider buying a new house. All right? These are the key things that we look at. How long do you plan on being in the house? Okay, and how much money do you have to put down?
Jason: If you have got 20% down, there is less likely the market is going to implode and drop 20% in a year, and if you had to sell, you probably could.
Jason: So that is one thing that we look at. Then if you do not have resources like I bought a house that is 17 years old, and the roof needed replaced, where is the money going to come from? If I do not have it, I need to lean toward so my roof has some more life to it. My heating and cooling has more life to it and so forth. So those are kind of the categories that we start to break those things down in. If you are financially ready, okay that is one thing. So, there is buy a house. There is pre-fab. They are kind of already done, and you, the builder, you might get to pick a few things, paint colors, maybe some flooring.
Jason: But the floorplan is pretty much done. The other way is a custom home. And custom meaning you are financially ready to take on this project. So, you are probably looking at putting, you may be paying cash –
Jason: -- or at least perhaps putting 20% down. We think putting more down on a custom home is smart because there are these things called change orders. And the builders, and they should charge these things. You had a plan. You told me to put the closet here, now you want it moved three feet. That is not my fault. I built it where the plan said, and now you want to move it. You are going to have to pay for that, and maybe that is $2,000.
Jason: And to make sure they get the money, they may want that up front. That is called a change order fee. So, they may require that you pay that or if you start going crazy with some of your stuff, and you are raising the risk, meaning you are making the house so customized that not just everybody and their brother make like it. So, they may not like pink countertops. They may make you pay for those out of pocket because if you do not go through with the house for some reason and buy it, they may need to take those things out.
Jason: And they are going to want the money to be able to do that.
Jason: As we go through this, you will see that some builders, custom builders want more money down. Just as a little side note though. There is no perfect house.
Jason: I hate to bust your bubble about that, but it is just the truth. We see it all the time. Folks that cannot find what they want are like okay, we are just going to build. Well, building is almost like planning for a baby. It just takes a long time. There are lots of decisions.
Jason: I actually figured it up one time. There are over 5000 decisions that have to be made in order to build a house.
Jason: It is just so many little details that have to be done. If you start from a piece of paper and just start going from there. It is just the way it is. There is no perfect house out there for you. There is always something lost between the plans it seems and the final product. There is always a little curve ball, if you will, or whatever, and whatever. You thought the room was going to be bigger, thought it was going to be smaller, the hallway did not seem quite as long, and jeez, who in the world decided to put the laundry room all the way over there. Right?
Jason: It is interesting. I wish I had more open space. I wish that wall was there. I wish we did not do nine-foot ceilings or I wish we would have. I do not like vaulted ceilings. Hardwood floors. Man, those things are loud. I had no idea. Especially with a vaulted ceiling.
Jason: And then you end up taking, the funniest thing is I have had folks where we will tell them like you’ve got tile, you’ve got hardwood, you’ve got vaulted ceiling. That is an echo chamber. Oh, no, no, no, Jason. We will be fine. They move in. Hey, do you know anywhere we can get a good rug because it is so loud.
JB: It is a high school gymnasium.
Jason: It really is. It is amazing. You always have the kids. Mom and Dad may be watching TV. They may stay up a little later. Right? The kids are upstairs, and all that noise is just going straight up.
Jason: And they are trying to go to sleep maybe to go to school and they are screaming down at you and you are screaming up at them. You cannot turn the TV down low enough. It is on 2. Well, I can still hear it.
JB: That is right.
Jason: And the other one is, this is another classic. You were smart. Your friends told you hey, do not do vaulted ceilings. You will hate it. Okay. So, you put the bonus room above that space because it is huge. Right?
JB: Right. Sure.
Jason: The living room is big, so you put the bonus room up there, and then you are like are they playing football upstairs or what? Because now they are just beating on the floor right above you. Anyway, this is what we are going to do. We are going to walk you through, make sure we can coach you through that, and that is what we want to do. Look, if you can find seven out of ten kinds of in our world, that is a pretty, I will not say it is perfect, but that is a pretty solid house.
JB: That is.
Jason: Whether you are looking for a resale home, a pre-built house or you are going to build your own property, if you can get somewhere between seven and ten on your wish list, you are batting a thousand as they say, if you will.
JB: That is good.
Jason: It is just one of those things that you need to take into consideration. When you start looking at 8’s and 9’s or getting like to perfect, you are going to start to twitch a little bit. Your head kind of starts spinning around, and things just kind of go sideways after that. Not really, but yes, kind of really. I am not really kidding that much. It does happen. Think about those things. When you are getting ready to build, there are reasons why we coach you in a certain way. A lot of it has to do with your finances.
Jason: We want to make sure you get the house and the house does not get you.
JB: There you go.
JB: That is good.
Jason: Because it can happen.
JB: That is right.
Jason: It can definitely happen.
JB: Well, I will tell you what. Jason, let’s say I take your advice, and me and my new family walk into the sales center at any subdivision in America. Let’s say Amy the sales rep, okay. Well, who does Amy work for, and should I be concerned about what I say?
Jason: Yes. I am sure there is an Amy in the world out there –
JB: I just made that up. I am not talking about anybody.
Jason: So here is the thing. She does not work for you.
Jason: You are the stranger walking in off the street. Somebody is paying her or potentially going to pay her –
JB: That is right.
Jason: -- for sitting in that model home. It is not a volunteer service.
JB: She does not do it because she loves it. I hope she loves her job.
Jason: She does, and most of the time, 99.99% of the time, she does work for the builder and not your family. Most of the builders do a really good job and they post that very clearly in their model centers. Not all of them though. It is kind of like this. Does the car sales guy that is out there on the lot on Wendover work for you or work for the car dealer?
JB: The car dealer.
Jason: Well, that is a no brainer. Right? It is the same thing; it is just a smaller lot, and it only has one thing to sell on it and not 45 cars.
JB: That is right.
Jason: It has just got a house, but the end result is the same. Here is what you do. You walk up to Amy and you say, Amy, Jason Bramblett said because I am flat broke, I need to buy a brand-new house. And guess what? It should be with you. No, do not do that at all.
JB: No, that probably, Amy is going –
Jason: No, I am kidding. Amy will be like have a good day. You go talk to Jason.
JB: She will be frowning Amy.
Jason: That is right. No, do not do that. It is not that, again it goes back to we want to put you in the best position to win so that you get the house and the house does not get you. The less money that you have, the more conservative we need to be to make sure we get you in the right place, so that you do not call me back in three weeks and say, hey, the air conditioner is broken. Well, yeah, it is 19 ½ years old. It can just go at any minute, and nobody can predict that.
JB: That is right.
Jason: Amy, again most builders in this area do a good job, but here is the thing you need to know that they do work for the builder. That person, that onsite rep, is there representing that builder. I do not know why for some reason, us consumers, we get this confused. I think it has to do with the contractors and kind of how we do, so here is the scenario. You hire JB Contractor. Right?
JB: There you go.
Jason: He is coming over. He is going to put a new roof on. He is going to put a fence up in the back, maybe work on the deck. Put a new deck in and put a fence up. Okay, so JB Contractor works for you because you are paying him, right --
JB: That is right.
Jason: -- to do these repairs and these improvements. Then you transfer that going on and you transfer that understanding to the new house, and you transfer that to hey, he is a contractor. The house was already there, but he works for me because he is a contractor. No, not necessarily. He is representing whoever the owner of the house is, typically it is the builder, and so they are working in their best interest, not in your best interest. Let me give it to you this way.
Jason: The contractor is not going to drive by your house and say wow. That is a great yard, and I could build a fence there. Look at that thing. It is flat as a pancake.
Jason: There are no trees to remove. So, I do not have to worry about a tree falling on the fence. Right?
Jason: The grass is cut perfect, and their dirt is soft. You can dig into that dirt with just a couple of licks of the shovel and put a post in, and I am going to build a fence in their backyard, and when I get done, I am going to see if they are going to pay me for it.
Jason: And if they won’t, I am going to see if we can get the neighbor to be able to use it because why not? It is amazing yard. It needs a fence. It is an amazing fence. No, it does not work that way. Right? That is kind of nuts. That is kind of the way, if you think the onsite builder works for you, it is kind of the same thing.
Jason: Do not assume that they do. Think about buying a home from a builder rep like buying a car at a car lot. Right.
JB: There you go.
Jason: You went on their turf.
JB: That is right.
Jason: They did not come over to your turf.
JB: That is right.
Jason: Think about those types of things because that can save you and get out of trouble now that I have made every builder in town unhappy. No, I am kidding.
JB: No, no. That is a good way to put it. A good scenario now. It helps you understand what you are up against.
Jason: Yes. So here is what we are going to do. We are going to take a break, go pay some bills.
JB: All right.
Jason: We are going to come back, and I am going to tell you why builders actually want us involved, and why they call our office and say hey, can you help these folks.
Jason: And there is a reason behind it. We will get into that when we get back.
JB: All right. Stay with us folks. You are listening to Triad Real Estate 911 with Jason Bramblett and we will be right back (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. So, we have got a few minutes left. Jason, if I want to buy a new house, what should I do first?
Jason: It is a process, and that is the key. And you need to have a plan, and you cannot just get bored one day, drive through a subdivision, see a nice young lady, Amy, out there. And Amy is just like hey –
JB: Man, she works a lot.
Jason: She is out there every weekend. Got my flag up. Come on in. Right? No. You need somebody to walk you through the process. Dave Ramsey uses this analogy a lot on his radio show. We learn to buy our first car from the car dealer –
Jason: And then we wonder why that did not work out so well for us. Right?
Jason: When you are selling stuff that is called gap insurance, and they use terms like negative equity, those are not consumer friendly. We know this car. There is no way it is going to be worth anywhere close to what you owe on this thing because of this balloon payment we have stuck on the end of it to keep your payments as low as we could. We are probably going to tell you to get some gap insurance. Right?
Jason: That way you can keep the car for a little longer because you are so upside down. I am kind of kidding, but I am really kind of not. So, do not get mad at me. Call Dave’s office. He gets calls all the time. People hate him, so he is just used to it. But it does kind of make logical sense. So, the same is true with the house. Let me say it this way. The builders that we work with do encourage the buyers to call us for us to assist them with the purchase. And you are like why would they do that? They can make so much more money just cutting all the real estate people out. Yeah, well, not really because if they understand time value of money, and if they understand that for us to educate a buyer is actually worth quite a bit of money to them.
Jason: Have you ever tried to explain something to a two-year old? It is like Daddy, why are you doing that? Because I need to. Well, why are you doing it that way, Daddy? That is the directions. Well, why do you have to use a hammer, and what kind of hammer is that? Hey Daddy, did you hurt your finger? Funny. And then of course, they throw the real bomb on you. Mommy said you should not use that word, Daddy. Right?
JB: Yeah, nothing like a tattling kid.
Jason: And that is what the builder feels. That is the feedback we get. Could you get them out of here? Right?
Jason: I am a home builder because I do not want to speak to people.
JB: I do not talk to people.
Jason: I like wood. Wood does not talk back to me. Two by fours do not speak, Jason. That is what you are good at doing. Educate, and our team is really good at doing it. And the builders appreciate that. And why? Not every builder is that way.
Jason: But a good portion of them are. They are introverted. They are very much detail-oriented folks. They are task driven, and so to give them a punch list and give them something to do, that is like utopia. Wow. This is heaven. This is awesome, and I get to put something together. And when I am done, look at it. It is amazing and awesome. But what they do not want is somebody walking behind them going well, why are you using that kind of hammer?
Jason: My dad never used that kind of hammer. Why do you do it that way? Why is this?
JB: Is that a ball ping hammer?
Jason: How come that two by four looks so rough? It is going to be behind sheetrock. It does not matter what it looks like.
JB: Is that a 9/16ths?
Jason: Right. It is not the handrail of the house. Hello? So, this is where we step in. We educate the buyers so that nobody gets hurt like the buyers. They take that hammer and use it for something else.
Jason: But folks, there are lots of moving parts to building a house. We would love the opportunity to explain them to you, go through all that process with you. It can be a little overwhelming. You want somebody who has gone through it before. It is kind of like, like I said, you are an expert because you sold your house 14 years ago. No. Not at all. Give us a call. You can get us at the office at (336)553-0796 or go to Jason Bramblett dot com, and we will walk you through every step of the way. And come back next week. We will be right here at the same time, same bat channel, and we will blow up something else next week I am sure. Right, JB?
JB: That is right. Have a great weekend, everybody.