Jason Bramblett Real Estate Podcast
Jason: Good morning, Triad. This is Jason Bramblett. You are listening to the Jason Bramblett Real Estate show, live right here WPTI 94.5. And joining me in the studio, Mr. Mikell Montgomery running the board and pushing all the buttons, making stuff happen.
Mikell: Good morning, Jason.
Jason: Good morning, good morning. Hope everybody is doing well. Not a terrible weekend. A little rain last night, but hey, whatever.
Mikell: We had some sunshine a little bit last week.
Jason: Thursday was –
Jason: It was great. I could redo that. If we got stuck in Groundhog Day that would be the one.
Mikell: That would be awesome.
Jason: That was not too bad. So I hope everybody got their yardwork done because that was your opportunity. But we have got some good stuff coming up. We are going to talk about inventory today and some of the struggles that we are facing with that whether you are selling. So we have low inventory, so if you are a seller, you are scratching your head going hey man, why isn’t my house selling? Well, we are going to let you know. Don’t you worry. And then, of course, if you are buying, you are like hey man, where are all the houses. And so we are going to talk about where they may be hiding and what we may have to do to go find those. So you want to stay tuned. And of course, if you are in the Winston-Salem/Greensboro/Jamestown/Oakridge /Summerfield/Advance/Clemmons, those are our top five, six markets we are looking for inventory in ourselves. If you are considering selling your home, let us know. We have so many people relocating from out of state that we are doing all we can to service our local folks, but we have a load of people that are retiring, coming to the great area of the Triad. Actually, I am leaving Monday, flying up to Jersey, New York, and headed to Michigan to go see all of our relocation partners, talk to them about how we can serve them and entice them and convince them and sell them on come on down to North Carolina.
Jason: It would be nice if we could get the rain, I used to be able to say hey, it never rains here. It is just like always awesome. Carolina blue skies. Carolina basketball. March Madness. Great weather. What more do you want? Now it just keeps on raining. So I will have to omit some things from my schpeel that I normally give. But we are going to bring some in. We need some homes in that $2-700,000 range. $200-700,000. We are looking for you. So we have buyers ready to go there. They are qualified. They are looking for house just like yours. The problem is they do not know about it because you have not called us yet, so you just have to do that. It is 553-0796 or go to Jason Bramblett dot com. Shoot us an email. One of the team members will reach right out to you, push you right to the top of the list. I can assure you if you say hey, I have got a $300,000 house and I live in Clemmons, you will move to the front of the line. Okay? Guaranteed. We will get to all of you, but there are certain areas and certain pockets within the Triad that we do have a high activity on the website. We need to be able to serve those folks coming in, and we have got to do all that before, well potentially, the prediction of the next crash. Can you believe it, Mikell? It is already here.
Mikell: Oh wow.
Jason: Nostradamus has come back. He says the real estate market will implode in 2021. I do not know. We will see. Time will tell. What is that? We got 2, 3 years to watch? But supposedly, as all good and bad predictions, I guess at this point you have got a 50/50 on that. Right?
Mikell: There you go. Got to just hope for the best.
Jason: That is it. So we are going to do everything we can to prevent it by giving you the proper real estate education here to make sure that you do not do anything foolish like over-improve your property and or borrow way too much money. We want to keep you in that groove, in that area where you are safe. Safest way to ensure that you do not get killed in the real estate market? Do a 15-year loan? Twenty-one years, my bad, 22 now. Twenty-two years last, on the 3rd.
Mikell: 22 years?
Jason: 22 years. So in 22 years of real estate, I have yet to see anyone have any financial struggles, short sales, foreclosures, loan modifications needed or anything on someone that did a 15-year loan. Not the smartest guy on the radio, but definitely this. If I can change just one thing in my life that I do not have to worry about, that would be one of them. Do a 15-year loan and you are going to have so much equity built in as fast as you can. Well, it would really, really, really have to get bad in order for you not to be able to sell your home, have some options or something like that. So think about that. The last little thing we are going to get in to is talking about some competition. So there is some competition out here. There is some one-upping going on. I have got some sellers that are one-upping the neighbor and the neighbor is getting mad. Neighbor is sending them mails. Hey, would you quit doing all this stuff? I am having to keep up with you. I am like that is right. You are. You haven’t seen anything yet. Wait until you see what we have coming out next week. We are always doing whatever we can do to one up the competition because remember right now in the real estate market you are in what we call a price war and a beauty contest. You have to have the best price and the best looking home otherwise, you are, well, the bridesmaid. No offense to the bridesmaids out there. You guys, your turn is coming. Do not worry. We have just got to get you in line.
Jason: So that is what we have got going on today. You can give us a call here at the studio, 882-7874. At the real estate office, 553-0796 or go to Jason Bramblett dot com.
Mikell: And you did talk about home buying and you just mentioned competition, so let’s talk a little bit about that.
Jason: Everybody loves a good competition.
Mikell: Of course.
Jason: Especially when you are down to the Final Four.
Jason: Even when you do not have a dog in the fight unfortunately. The Blues let us down this go around.
Mikell: They did.
Jason: Carolina and Duke, come on, guys. Well, there is, as they say, next year, I guess. Here is the interesting thing about the market. So, something that is unusual that I have not seen in really the past 10, 12 years, and it has a lot to do with just the market that we are in. We are seeing a lot of multiple offers. The key thing that we are seeing though is I dissect everything. So when we have something that is repetitive it is why. Okay? And when we have a cause of something that is repetitive, why, and we have a result of something that is repetitive, why. Do we want to do more of this or less of this? Right? So we are always analyzing numbers. What we are seeing is well, the homes that are showing the best are getting the most offers. Okay, that seems almost like common sense.
Mikell: Yeah, it does.
Jason: In 22 years of real estate, yeah, it really is just that. It is common sense. It is doing the simple things. We are not talking about brain surgery here. Rocket science. This is just providing the public, the people looking at your homes, with the product that they want. What do they want? They want something that is clean. They want something that is updated. They want something that has a nice flow and presentation to it. And anybody can do that with any floorplan.
Jason: What is happening though is what we are seeing is we have got some houses that are in that 250-450 range that have not kept up with the pace, kept up with the time. They have run into an issue. They are getting crushed with new homes, new home competition, and or their neighbors that have kept up with the times. So they made the proper improvements. Unfortunately, this is where we are. This has changed a lot. So the demographic of folks that are 40 years and older, this is a hard thing for you to wrap your mind around because this is not how it has always been. This is not how it was when you grew up, came up and started buying homes. When you bought a house, you bought a house just because holy smokes, we were able to buy a house. It is amazing. You know what? It is ugly. It is not pretty. It has got hideous wallpaper, but it is mine. And you took pride in owning in that and you took pride in fixing it up.
Jason: Younger folks, not so much.
Jason: You also took your TV to a repair place. Younger folks do not do that. They take it to the dumpster. Okay? You had a computer that you paid ridiculous, anybody remember Gateway computers like $18,000 for a 32 megabyte, take 4 ½ days to download something? Yeah, right. They were not that bad. But a couple thousand bucks for a computer that did nothing that your cell phone actually has more technology than that thing did. What do we do? When it broke, we tried to figure out how to fix that thing because we just made a couple thousand-dollar investment. We were not going to get rid of that. Right?
Mikell: No. Not at all.
Jason: It just was not the way it worked. VCR repair people. Some of you guys are like I do not even know what a VCR is. You are speaking foreign to me now. So things have changed, and what we see in this generation now is they are also not the generation of fixing things. So this is generation, I guess, X and below or Y. I lose track of what they are. X, Y, Gen, Millennials, something. Anyway. How about this? 40 years and younger. We will just do it that way. That is easier. What we are finding is they are just into that convenience mode. They are willing to pay more for convenience.
Jason: I do not want to paint the wall, but I will pay more if somebody else does it for me.
Jason: Or if is it prepared. Hence what we are seeing is we are seeing multiple offers on properties. I will give you a prime example. We had a townhome in High Point. Completely redone, amazing looking property, and it sold for $26,000 more than it is worth in today’s marketplace if you just looked at the comps. If you just looked at the area of the neighborhood. Why? Phenomenal. It was brand, spanking new. You could not duplicate it. You cannot find that property for $170,000. It does not exist. It is one in the whole area. It took the price to a different level. I think we had eight offers on that property. But the key, first part of it was it was amazing, showed well, everything replaced like new. The other thing was just supply and demand economics. There was not any of them. So when you have something that is rare and have a high demand. I think we had an open house one day and 18 couples come. 30-some people walking through the property.
Mikell: Oh wow.
Jason: Yeah, so when you have numbers like that, price really does not matter because somebody is going to be willing to pay whatever the price is to get it. Right? Because the demand is there. Is that every property? No, it is not. But it is becoming more and more in certain types of real estate and certain price ranges. But had that home shown lesser, let’s say, maybe with the brass that we told you to get rid of that, with the carpet that we told you to get rid of, with the whatever those countertops are that we told you to get rid of. Right. The white appliances that are 16 years old. All those things, it will not demand that high of a price. Why? For whatever reason, these buyers today want a ready-to-go product. And this is why you are seeing new construction take off. You think that the resale market is hot, just go to some new construction neighborhoods. They are probably going to have to start doing lottery drawings again for vacant lots. That is where it is going to get to.
Mikell: Oh wow.
Jason: Because they cannot get them off or they are choosing not to get them off the ground at a fast enough rate to keep up with demand. So they release 10, 12, 15 of them at a time, and they are sold out in 24 hours or less. They are going that quick. Why? Because the buyers want new. That is what they are looking at. They do not want to acquire your headache as we have talked about many times. I know. You guys have been listening to me for 12 years on the radio and you are like yeah, I know, Jason, but man, I do not want to have to do all that. I understand. There are two different prices in real estate. Right? There is the price you get when you give the consumer what they want, and then there is the price you get when you try to sell your house the way you like it. That is a different number.
Mikell: Oh, okay.
Jason: That is a different price. Right? And I realize that there is a certain number of people out there that have the opinion of well, if it is good enough for me, it is good enough for them. And then all of the folks in Mikell’s generation said yeah, have a good day, sir.
Jason: Have a good day, sir. It is just the way that it is. So we have got what, how many millennials are there? 30 million? Is that right?
Mikell: That sounds about right.
Jason: So about 30 million of them getting ready to hit the home shopping season, home shopping network, if you will. They are coming. Be ready.
Mikell: And you are right, Jason. Of course, I will be purchasing a house pretty soon in the next few years. I want one that is ready to go. I believe that the generation before me or even my grandparent’s generation was the generation where I want to put, I want a do-it-yourself type thing. I want to do the cabinets. I want to do the carpet and everything myself. We are not that generation. I just want it done and that is it. I just want to move my stuff and that is it.
Jason: Absolutely. And well, it is even, I see it in, I have been doing missions work in South America and Central America for 20-something years, and I even see it now. It is getting more difficult to, we go down and do construction. It is getting more difficult to get folks to come. The guys that are my age and older that know how to do it are well, the problem is they are my age and older, and it is hot down there, man. It is hot. Really hot. So we even go in the winter and it does not matter. It is still hot. But the young recruits that we are attempting to bring along beside us is, there are not a lot. There are not a lot. There are not as many. It is just something that has changed in America. It is just the reality of where we are. Anyway, lots of good stuff. We are going to dig into some more specifics. We are going to take a quick timeout. We are going to be right back, so do not go anywhere. Go to Jason Bramblett dot com. If you have a home in Winston-Salem, Greensboro, High Point, Clemmons, we want to talk to you. Give us a call at the office 553-0796. We will be back in just a minute. (in/out music)
Mikell: All right. We are back, and you were talking about how to help sellers out. So what tips can we give them right now?
Jason: Yes, absolutely. There are all kinds of, we have got twelve, we are a plethora of information here.
Mikell: Yes, we are.
Jason: Remember, you can always go to Jason Bramblett dot com if you do not get to tune into the whole show. You can always go back and listen to the archives. Just do a Google search for a topic. Actually, that should come up, and if you go the website, you can search a topic and then you can pull up a show that may have something of interest in there. Then you can fact check me and see if I have said the same thing for the last 12 years, too. That is kind of fun. So far, pretty consistent, but there is always, you might find a zinger in there every now and then. Right? It is possible. Things change sometimes. My mood. I am just a little punchy on the radio some days, and you never know what might slide out by mistake. But here, let’s get to some truth. Oh baby, this is where it gets fun. Many of you guys just truth here. You have not got a prayer of selling your house. I know you have a sign in the yard. I know it is on the Internet and I know that you believe that you are actually going to get it sold, and I am just here to tell you, what you are bringing to the table is not going to work. It is not what people want, and here is a good test. Have you had anybody come through it without any offers? Have you had 6, 7, 8, 10 people come through and not had an offer yet? If you have, that is the market telling you something. Here is another tip for you. If you have not had that many people come through in the last two weeks, that is also telling you something. You are offering something that the public does not want, and you have to find the happy medium. And you need a coach. You need somebody that can walk you through and match, it really is what we are. We are the matchmakers of real estate.
Mikell: I like that.
Jason: We find what the general public is wanting and what they will pay top dollar for, and then we coach you to offer that product to them. Now the less that offer, the less they will like what you have. Hence why nobody is knocking on your door. Right? Okay. So but if we can get you, we do not need to be perfect, and we do not have to be new, but we need to get you in line to where we can get you the most money in the shortest amount of time. Remember, two prices in real estate. The price you get on day 16 and the price you get on day 190. They are two different numbers I can assure you. So think about that. What are we seeing? We have got a gap. We have got people pushing toward new construction, and then we have a lot of homes selling right now that are 5-8 years old, and they are great. They are still new. They still have some warranty left. They do not have all the wear and tear on them. Where people are struggling is in that 12 to 17-year-old range home and you have done nothing but live there. Ouch. That is the tough one. You have not changed the paint styles. You have not changed the fixtures. You have not changed the lights. You have not changed whatever, and some of you say, but Jason, we have only been here 12 years. I mean, geesh. This stuff is not cheap to change. It has cost a lot of money to get everything. This is not a new house after all, Jason. Come on. What are you doing to us? And you are right. And here is the truth. Nobody cares. And that is just the hard reality of it is the buyers do not want it. And so you need to budget and put into your day-to-day life thinking about selling down the road in 10 or 12 or 15 years. You need to start thinking about well, I am going to have to make changes or I am going to have to sell my home for a different price than what the person down the street or my neighbor across the street did to offer the buyer exactly what they want. Right? Simple.
Unfortunately, real estate has become somewhat of a commodity in that it is not what it used to be. And home ownership, yeah, there are people that love to own homes and those things, but this younger generation is more mobile. Think about 60 years. Most people did not move more than 10 miles away from where they grew up. It is just the way it was. Nobody thought about leaving home or town. And now, we have got kids international, everywhere, going all over the place. And careers are much more mobile. People are much more mobile. Anyway, just certain things to think about as you are making changes to your house. But one thing that we see is the folks that keep up the pace, and you do not have to be perfect, but you need to keep up the pace with the modern trends. What do those look like? Well, go to some home shows. That is one thing you can do. You can also go look at some new construction homes. There are phenomenal ideas. And just take little bits and pieces and do a little bit here and there. Most trends in real estate they last about ten years. Somewhere around there. We are still about 8-10 years of bandwidth. But if you have not done anything to your house in 40, I can assure you, you missed the mark. Right?
Jason: I do not have those homebuyers knocking on the door saying hey, you got anything with paint from like 40 years ago? No, I do not have that. Anyway, just something to think about. Now one question that comes up. Where in the world do I even begin because all of this sounds very expensive.
Mikell: It does.
Jason: It can be done all at one time. It can hurt the pocketbook. That is why we just say ease into it. That is why we would love to talk to you. If you are thinking hey, Jason, we are not going to sell for three years. Awesome. We want to meet with you tomorrow because now we can take the next 36 months and get you to what we believe will be the perfect position to sell for top dollar in the shortest amount of time when you are ready to sell. The worst thing, the toughest conversation to have is Mikell comes over, knocks on the door, says hey, I need to sell my house. I just got relocated and I need to do this in 13 days, and you have not touched your house in 14 years. That hurts.
Jason: That is a big change. It is a big shift. It is a big transition. So what we want to do is we want to get with you and we want to walk you through the steps to make it as easy as we possibly can and also help establish a budget. One question we get or we ask a lot is what is your budget to sell, and most people look at us like what? We want to sell. The budget is on the buy side. Right? No, you do sometimes have to have a budget like 99.9% of the time to sell the house. Whether it could be hundreds of dollars, and it could be thousands of dollars. Everybody is different, but yes, you do have to have some money set aside. Again, we are pushing always towards top dollar. If you have no money and you have no budget, we hope that you have another word that we use in this business. It is called equity because then if you have equity, if you cannot beat your neighbor in looks, well then you can beat them in price. Remember it is two things. It is a beauty pageant and a price war. Right?
Jason: That is what is winning. So your neighbor may have done all the updates and fixes and the house looks phenomenal, and you just do not want to go there. Well, you can probably beat them in price if you have been in the house a while. Maybe your house is paid for. The greatest thing about having a paid for house is you can sell it for any price you want. You can sell it for a dollar. There is no rule about what you can sell your house for. The good thing is if you have lots of equity, like you have listened to me for 12 years. Let’s just say you bought your house 12 years ago. You are like down to almost nothing –
Jason: -- if you listened, if you started out with me on the radio and you did a 15-year mortgage, you got three years left, you are pretty good. You are feeling good about things. As a matter of fact, you are probably so close to the end, you are like yeah, I am just going to dump this thing this year. I am going to do, we are not going to go on vacation. We are going to have a mortgage-burning party. That is what we are going to do. And that is a great plan. Do that. Then when you go to sell your house, you either have the equity to not even have to fool with it and you can just say you know what, I do not want to deal with. Or you have the equity, you can go out and make it happen too. Right?
Jason: Because if you paid it off, there is another thing you have. It is called money. Right? You have got that every month. Anyway, as go through all these different things that we are looking at here (recording ends)