JASON BRAMBLETT RADIO SHOW PODCAST

DJ: Well, good morning. Welcome to Triad Real Estate 911 with your host Jason Bramblett. For the next thirty minutes, we are going to be talking all things real estate and we invite your input. Give us a call. We are live in the studio on this Saturday morning. (336)553-0796 if you want to talk to Jason or have a question. (336)553-0796. And we say good morning to the man, Mr. Jason Bramblett. How are you?

Jason: Good sir. Good, good, good. Everything well?

DJ: Everything good. Just a little hot and sticky out there on this gooey Saturday morning.

Jason: It is gooey. Man, I tell you what. We went to Missouri to visit some family and had a great time, and normally, that is exactly how it is there. You know, August in Missouri near the river. It is just, it is just no good. And it was unreal. It was like seventy-five, no humidity. I wouldn’t have even known that we were in Missouri; it was very strange.

DJ: Right.

Jason: But we enjoyed it. Made for a good week, and so

DJ: That’s good.

Jason: And we had a good week in real estate here. Good stuff happening. Lot of folks in the market right now.

DJ: Excellent.

Jason: Some still trying to meet that deadline of getting in school, you know, getting in a house before school starts. Don’t, don’t see that one happening right now.

DJ: Yeah, it’s happening now. I mean, people are actually going back to school now.

Jason: Yes, it’s full go. But, here is the thing. You can still get in. Labor Day is around the corner. Labor Day is a great weekend to move. You know. Because all your friends, you know, they are off and you can get some help, right?

DJ: That’s right. You know they are going to be close to home and you get a little extra, somebody to help you with that back.

Jason: That’s it. Exactly right. So, it is has been a really great week. The team did a great job, and we have got some really, really awesome houses in the market. If you are looking for something on the high end, you have got to check out this house we put on. It is number nine Clair Ridge Court over in Grandover. Man, it is, it is top notch. It is top notch.

DJ: Is that right?

Jason: It is a great house. If you are looking for something near golf and the Greensboro market absolutely great home. Check it out. You can go to jasonbramblett.com and pull it up there. And hey, it is still summer, right? School has not officially started yet.

DJ: Not yet.

Jason: So, if you are still thinking about a great house at the lake, we have got some on Baden Blues and High Rock.

DJ: Oh really?

Jason: Or maybe for next year, we have got a couple of lofts for sale down there on High Rock. You could get started now, have the house ready to go by the next time summer swings back around here.

DJ: That’s right.

Jason: So, there are some options out there. But we have really got some great properties out there to take a look at. And there is still plenty of time. Hey, it doesn’t get cold here until what, November right?

DJ: It’s not really cold by a lot of people’s standards.

Jason: Yeah, heck Blues is so warm you can just go there anytime you want.

DJ: It’s a hot spot.

Jason: Actually, exactly, it’s like the hot tub. So, you can go swimming in Blues in December. Now the getting out part isn’t so much fun, but the getting in is just fine.

DJ: And the staying in while it is really warm, but the getting part is the tough part.

Jason: That is right. So, you still have time to look at some of these lake properties and really get out there and enjoy what is left of the summer and into the fall. We have got some good stuff. But the market is all in all doing very good. I am still not liking one set of number we are tracking, and that is the folks that are still chasing that market down. So, we have just this week about twenty-eight percent of the homes in the Triad lower their asking price again. And some of that may be a little push because they are looking for that window of opportunity to get in there before school started. But I go back and look at their history, and a lot of these folks have been, this is the second, third and fourth time they have adjusted their price. So that is not the number we really want to track or that we really want to see. We want to see that being much more stable. But overall, and certainly this does vary by market because we are talking about the whole Triad here, so the whole Triad is not your subdivision, right?

DJ: Exactly.

Jason: So, we have got to dig into, you know they say real estate is local. Well, that is true, and we have to go into micro-local, right? Because what is happening in your neighborhood or in your area is just as important. So, these numbers are the whole Triad, which is a big market. It is thirty-seven towns and cities. It is a huge market that we have here when you start spreading stuff out. But overall, I still don’t like seeing that downward trend. We want to talk about how to prevent those things, and we are going to get into that today. And if we can get that number below ten, man, then we can really start to see, I think, some equity coming back, which some people are going to have to go in the dictionary and look up what that words means because it has been a while since we have heard equity.

DJ: It’s been a while.

Jason: As opposed to our Raleigh friends and Charlotte friends that are seeing twenty-eight and twenty-nine and thirty percent increases.

DJ: Wow.

Jason: Yeah, that is the days there, right?

DJ: Yeah, that is. It’s is amazing.

Jason: Well, who knows? We may, we may get to, I’d take a third of it right now.

DJ: Yeah.

Jason: I think most people in the Triad would. So that is what we are looking for is that stable market. It has come down in twenty-eight percent. A few months it was about fifty percent of the people still chasing the market. So, it is starting to stabilize down. We can get it to under ten, man, that is going to be good stuff.

DJ: Let’s dive a little bit deeper into something you said there. I want to ask you this, Jason. So why do you think that so many of the owners are having to adjust their prices so many times? Are the owners also raising the prices of the houses on the market?

Jason: It goes back to really what we have been talking about for years. And we just have too many, I am going to blame the industry. It is too many agents out there buying the listing, and too many agents are worried about getting their sign in the yard as opposed to what the outcome is. And that is a sales technique that has been, I have been in this for twenty years, for nineteen and a half, and it is something that has been taught ever since I have been in real estate.

DJ: That is just the model they have created, right?

Jason: It is. And it almost goes back to some old insurance sales models, but it essentially goes back to who cares, get the sign in the yard. Well, that is great. Okay, you have got the sign in the yard, but are you really doing everything you are supposed to be doing to help that owner. So yeah, okay, whoopee you won. You got the sign in the yard. But you are going to be taking it right back out in six months, right, when the house doesn’t sell. And then they change to another person. And so, that is what we really are pushing, my company is really pushing to change that within the industry because it is something that it has just been going on for too long, and we really have got to stop doing it. I mean, it hurts the whole entire market. But we have just so many people out there who are fighting to win to get the sign in the yard, they will basically tell the seller whatever they want to hear. And it is not that hard because you sellers just run your mouth and puke everything out to first person that comes along, and it is kind of like poker. You have to hold some of your cards, right?

DJ: You’ve got to know when to hold them.

Jason: Yeah.

DJ: You’ve got to know when to fold them.

Jason: That’s right. And sometimes, you just go out there, and we have in the State of North Carolina, a proper form that we use for disclosing the type of agent that is, that you are speaking with. We call it our Working with Agents brochure. It is also required that every single person that we meet and have substantial contact with that we go over that before they blab everything there is to blab about their situation house or whatever. Just this week, one of my agents is talking to someone about selling their home. And they were like well, we have talked to four people, and we will make a decision. And he said, well, I am just curious. Out of all four people that you have spoken with, did any of them show you this brochure? No. Never seen it before. And we are not signing nothing. And this has been the state rule for ten years. And so, his response was if they can’t follow the simple rule of the land, then what else are they going to cut out. So, as I have said on here, you may not like what I have to say, but I am going to give you the truth in the matter. Right? Sometimes the truth hurts. We have had a few of those conversations. Right?

DJ: Yeah, we have.

Jason: So, we had a seller three years ago come to us, maybe not that long, maybe eighteen months ago, and she came to us and said, nah, I don’t want to do, I don’t like your process. It is too different. I am going to go with this other person because they are going to get me sixty thousand dollars more than what this appraisal says. And I am like, wow, okay. Don’t know how they are going to do that unless they are going to buy it themselves. Right? If the agent is buying it, okay, well maybe they are willing to pay it. Or their mom or I don’t know. Somebody. There has got to be somebody that really loves you that would give you sixty thousand dollars more than what it appraises for. But the long and the short of the story is she went with that person because of what they told her. It didn’t work out. Six months later she switched to somebody else, lowered the price. That didn’t work out. Six months later she went with somebody else, lowered the price. Well, after eighteen months, she finally came back to us, and she is like, I don’t even know what to do now. And so, we redid everything because most everything had expired out, and lo and behold, the house was actually even worth less eighteen months later.

DJ: Wow.

Jason: So, it was all, you get caught up in the hype and you want to believe it, right? Because you want the most that you can possibly get for your house. But the bottom line is that, guys, the numbers are pretty predictable. And there are really two people that have to buy your house. You have to think about this these days. One, the buyer has to believe the price, and then the second part of that is you have to convince the bank, which is a bigger piece actually to be honest with you. The bank is tough. So just be careful out there. Unless the agent is going to guarantee you a price to buy the house, and or they are going to buy it themselves, just be cautious. And you have got to get out of this situation of chasing the market down because you started with this ridiculously elevated price. And yes, there is still the belief out there that you got to have a lot of wiggle room. Well, you really don’t. You don’t need fifty thousand dollars of wiggle room.

DJ: Right.

Jason: Because what you are going to do is isolate your home. That is a generational thing. And we see that out there sometimes, and folks they feel like they need to put a lot of extra padding in their price, and that is just not typically the way that we see business done today. But there was a time when that was very, very true. But it has kind of faded out with some of the younger folks that are coming up. They don’t like to negotiate as much. They don’t like to fight, and they are good at looking and finding the deal, and or looking and finding if the price is valid because look at what is available at your fingertips now.

DJ: Right. Well, the way we buy houses has changed so much in the last ten or twenty years and with the Internet too has been where everybody has instant access to everything.

Jason: Everything. There is no hiding anything. They can pull up, the general public now can go to your address, find out when you bought your home, who you financed it with, how much you put down, when you refinanced it, what type of deed you have, and that takes about six minutes to do that. There is just nothing to it. Now twenty years ago, nobody knew how to do it because we did not have all this wonderful, all this data online. And now, there are just no secrets out there anymore. So, the consumer is much more educated. So, you don’t really need to pad that huge amount of money in there because they are pretty smart at figuring out okay, this is a fair price, or this is not a fair price. It is all about the evolution, evolution, evolution and change, right?

DJ: Right.

Jason: Everything is evolving out there, and something, some for the better and some for not. So, get a third party, that is what we suggest. A good third party, unbiased person is get an appraisal. Right? Have an appraiser do it. It is good practice. And it is going to cost you a little bit of money, but it is not a huge amount of money. So that is what we suggest. That is how our company differs is we use a lot of third party verification for everything. One is I don’t want to be wrong.

DJ: Sure.

Jason: I have an opinion, but I would like to check it and make sure that what I am telling you is right. Why? Because it is a big deal. For most people, it is the most expensive thing that they have ever owned, a lot of folks, I mean, it is pretty much all the money they have ever saved, too, is in the house, is in the equity in the house. So, we have to do everything we can to protect that and make sure we are getting those numbers right. The great thing I like about the appraiser is it is fixed pricing. They are going to charge you one set fee to do the appraisal no matter what the house costs.

DJ: Right.

Jason: A few hundred dollars difference, but you know it up front, but it is not based upon the percentage of the home’s value. Where with sales folks a lot of times it is, right? Ninety-nine percent of the time. But to spend a few hundred bucks or spend a little bit of money to save or at least to know, have that second opinion, is just using good wisdom in my opinion. So, percentage based, sometimes you can get caught in that trap of well, hey they get paid, the higher the house is, the more they make, so they are going to get everything they can get out of it. The problem with that is you can get sucked into buying that listing thing and just hearing what you want to hear. If at the beginning of the year, fifty percent of the people are lowering their prices, and fifty percent of the houses were not selling the first time, and now we are at twenty-eight percent just lowered their price last week, you have got to, you do not have to be the smartest guy in the room that maybe that trend does not work.

DJ: Right.

Jason: It is failing more than it is winning, right? And so, we have got to take a look at that and make sure that it doesn’t backfire. But it can be a huge, huge difference in where you end up because chasing that thing down is no fun. And it is just numbers at this point, guys. You can look in there. We have got all the data and the tools out there. It used to be that you would have to do all this just digging into the MLS books.

DJ: Right.

Jason: Now it is like two clicks of a mouse, and then you can also go on the portal sites. Your realtor.com and homes.com and Zillow and all these different sites, and boy, it is amazing what you can find out. Right? It is all out there. So, lots of things, lots more tools, so getting the price right first is key. Third party verification is just good smart business. You want to take a quick time out and go pay some bills?

DJ: Absolutely.

Jason: We’ll come back, and it looks like we have got a few emails coming in, and I have got a little more to talk about here on pricing a house right.

DJ: Sounds good. Stay with us folks. You are listening to Triad Real Estate 911 with your host Jason Bramblett. Stay with us. We are coming right back.

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DJ: And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. And let’s just jump back into our conversation there, Jason. You know, a lot of owners assume that if their agent has sold hundreds of homes that they should know the right price to pick now. Is that a pretty accurate statement?

Jason: Well, assume and pretty, right, are the key words I think in that deal.

DJ: We have all heard about assuming there.

Jason: That’s right. That’s right. So pretty accurate and yeah, so here is the thing. It is always good to get multiple opinions in everything, right? I mean, it just makes sense to me. So, for less than five hundred bucks you can remove the guesswork. Because remember there are really two buyers in every deal assuming that they are getting a loan, which ninety percent of the transactions are going to be somebody is financing it, right?

DJ: Right. Exactly.

Jason: So, you are going to have to appease the buyer, and then you have this thing that comes back around, and the appraiser comes back out for the bank. If my house is only going appraise for X with the bank, that would probably be good information to know up front because I may make a lot of plans based upon the number that someone else told me. And if I didn’t verify it in anyway, I may have made all these great grandiose plans, and then it is all just blown up because there is a differential between what the bank is willing to, if it is a risk and what the buyer is willing to pay. And in our market, not always one hundred percent of the time, but most of the time, the expectation is if I agree to pay more than the bank will appraise the house, then Mr. Seller, I would like you to reduce your price, right, to that appraised value. And sometimes that backfires because we have had folks where, I have seen deals like this. We agreed on three hundred, okay? The house was listed at three twenty-five. We agreed on three hundred. The house appraises for two ninety, and everybody would be like well, that stinks, but okay we will come down the ten thousand, and the buyer is like no, no, no, wait a minute. I thought I had a twenty-five-thousand-dollar discount here. Three twenty-five to three hundred. Now the bank tells me it is only worth two ninety, so I am kind of like paying full price for the house. I would kind of like my twenty-five thousand off the two ninety prices because that was the perceived deal. And most of the time it is a psychological thing, but we have folks that that situation has happened. We have seen that in marketplace. That is not a fun place to get for the seller especially if they made all their plans off three twenty-five, and now two ninety, and now all of a sudden, wait a minute. This guy wants the house for what? And so that deal blows up, right? The other down side with some of these situations that you run into, again like I said, you have made all these plans. Maybe you have started packing. Maybe you have made an offer on another home contingent on yours closing, and you have money invested in that. You have gone in and done some of your due diligence, and now you are going to be out a couple thousand bucks. Well, had we just verified the house from the beginning, then you wouldn’t have been put in that situation. So that is really what we are looking at. Again, it is a few hundred dollars. Here is the other thing that is interesting. It actually will save you money, right? Because obviously you won’t make these mistakes, but the other thing I have noticed, so out of these four hundred and something houses that were reduced this past week, I looked at the percentages, okay? It is somewhere between about a three to five percent adjustment almost every time that they have adjusted. So yeah, I can understand you don’t want to spend five hundred bucks to do the appraisal, but that is a lot less than three to five percent. If you look at three to five percent for some of you guys looks like five and ten thousand dollars. That is a pretty big miss, right?

DJ: It is.

Jason: And so, in comparison to five hundred bucks, to really get it right and to get basically the good unbiased opinion as to where you are, it is a great place to start. And then you don’t get stuck in that chasing the market down like we have seen so many people do. Because what happens is that there is history built there, right? Every time you make an adjustment, it is recorded somewhere. And then you go out on the website, and you’re like, oh wow, I can see these people listed it at whatever, two hundred thousand, and now they are at one eighty, and now they are at one, whatever the numbers are, and they can follow that trail. Sometimes they will look at it and we’ll just see how low they go. We’ll just watch it. We are not in that big of a hurry. We will just see what happens. So, you can shoot yourself in the foot by not starting with the right price to being with. And I have seen folks, we have been doing this for fifteen years, this is nothing really new under the sun, but we have done appraisals, and we have used this system for fifteen years, and what I have is the data to show that getting the price right to begin with always gives you more money even if that price is lower than where you wanted to be because you don’t fall into that trap of chasing that market down. So that can be a huge, huge issue down there. So, you asked earlier, JD, did anybody raise their price? We had forty-four people raise their price.

DJ: Oh wow.

Jason: Okay, we have four hundred and something lowered, but forty-four go up. So, it is not balanced yet, for sure, and I think a couple of those were typos actually. They put the wrong number in there and they had to go back and change it. But there is some change in there. There is a little bit of a price bump. No trends yet. But maybe we will get there. We need to get the other one fixed where we quit chasing that market down for sure.

DJ: Alright. Well we have got about a minute or so left. I have got a quick email. Do we have time for it, you think?

Jason: Let’s do it.

DJ: It says Jason, this is Larry by the way, Mr. Bramblett, we are getting our house ready to sell. I have listened to your show for years, so I know we need to remove the brass, the wallpaper, and change rooms to a neutral color. Can you make some other suggestions on color and fixture selection?

Jason: Absolutely, Larry, and thank you for listening first off. Yeah, I don’t beat the brass dead horse as much as I used to, but Larry, he is a long-time listener evidently. So, but here is what I would say, yes, suggestion. Color-wise what we are seeing are the grays are really kind of big right now. So, whether you do something that is cool or warm kind of depends on what you have, so my suggestion is take some pictures of your rooms that you are going to change, and take it to one of the paint stores, I will just say Sherwin Williams. Take it to them. They can see what you have, and they can make a good suggestion based off the décor and everything else you have so that way you are not redoing everything single think in that room. And that is a free service. You just take the photos with them, and they have got folks right there that can help you with that. And it just depends on what colors that you want to pull out. Some of them are more blue. Some of them are more yellow, and it kind of depends what you have got. So anyway, Larry, I hope that helps, and anyway, guys, have an awesome week. We will be back next week live in the studio. You can go to jasonbramblett.com and check out all our great homes for sale.

DJ: Okay. Great show. Talk to you next week.