Jason Bramblett Real Estate Show Podcast
Jason: Good morning, Triad. You are listening to the Jason Bramblett Real Estate Show. Hope everyone is doing great today. Enjoying the, well, fine weather we've had least for the past week. The temperature has finally taken that toll. We've dipped down just a little bit and thank goodness. We finally got a little bit of rain it is. Always has been way, way, way overdue for sure. So today we're going to be digging into multiple offers and how to exactly get that accepted if you're a buyer and how to keep that together if you are on an owner on the selling side, and what you may do to make your offer stand out, especially when that pile of offers can be somewhat deep, if you will, and really just coming up with a win-win situation in which you can push to the top, or if you're the seller how we can get on common ground and make this deal go through. Sellers need to be careful out there. There's lots of temptation just to go with what appears to be the highest price, and we are going to talk about why maybe the highest price may not be the best offer. And then home buyers, same kind of situation. You have got to be ready because it is a competitive market. I had an agent earlier tell me on one of our properties that her people didn't want to get in a bidding war, and I thought well right now, if they're in this price ranges are probably not going to be buying a house because, not necessarily, it's a bidding war but it is a war to get your offer accepted. So we're going to throw some stuff out there to see if we can help you get through the minutiae of real estate in the Triad. Joining me in studio is Keith doing all the things that he does making me sound awesome, right?
Keith: I don't do a whole lot.
Jason: Yeah. Well you do more than you think it is. It is much appreciated. That is for sure.
Keith: No problem. This is a great topic. I'll be honest with you. I want to make sure that we didn't screw it up. I'm going to assume we didn't because we used you guys. I will be honest. So we just bought a house here a couple of months ago, and I'll be the first to tell you that the houses is that we identified that would work for our family sometimes they would be on the market for a day, two days. We make an offer, and we be the third offer in. There was not a home that we made an offer on that there weren't multiple offers on. So outside of obviously just pay more money, what can you do to make your offer stand out when you're looking at a house that four other people want?
Jason: Oh, absolutely. Yeah, and I'd say it's anywhere between four to ten at this given time. We just had a house that we put on the market last week, and we had 33 people through that home in two days saying. So you have got 32 people out there that are disappointed.
Jason: Right. Now, the only thing I'm thinking is wow. I wish I could build 32 of these houses, right, because obviously there's a demand for it and this is this is a tough thing in which we're dealing with. But in certain price ranges here in the Triad, it is tough. The first place you really need to look is really with the agent you hire is key, I think. One of the things that we train on every week is really how to overcome these objections, but really the big thing is how you really need to communicate. Communication in these multiple offer situations is huge. I'm still amazed at the number of agents that we deal with that want to text and negotiate and not just have a verbal conversation.
Keith: It is so impersonal.
Jason: It is and it's not like we're selling coffee. It is a it's a big deal. This is a this is a huge purchase for our clients or it's a huge asset that we're selling, and I think it just needs a little more, just a little more enthusiasm the other than a text message.
Keith: Well, you can gauge just based on what the other agent, how they react, you can gauge where you're at and you can also potentially overcome an objection immediately before he has a back and forth with someone else.
Jason: Absolutely. Absolutely and so, text message, it does it does have a its place. But really this is one of the biggest decisions most people are making in, in my opinion, you just text because you're lazy. You really need to well, I don't know. There's really just no other word for it. To me, it's just being lazy, and you really need to get out there. There is a time when texting is okay, maybe if you're verifying something, but not through negotiation. Communication is really the key to the offer on both parties on both sides. So, you need to pick an agent that is going to pick up the phone and talk with you, and really I would say the way in which they're communicating with you is probably the way in which they're going to communicate with the other side. We get into this adversarial, like the seller is the enemy or the buyer is the enemy, and that's not the case. It's got to be a mutual meeting of the minds to make these things happen. It is just interesting to see how things have changed since this whole world of tech. Just this week, I've got somebody that I actually am personally helping buy a home. Not something I do all the time, but in this case, it was a personal friend. They reached out to me, and so I called the other agent and she was just like wow you called. She's had a lot of activity, but everybody is emailed or texted. I said, yeah, I just wanted to have a conversation and what I wanted to learn is what is what is the best way to set up this offer, so it is mutually beneficial to really all parties? She's like we had 20 people look at this house and nobody has called, and I thought man that is, it's kind of its kind of sad for our industry really. But why was I calling? I wanted information and I wanted it more than just through obviously a text or an email. I really wanted to hear what are the seller’s plans? We have this idea that people put their house on the market and they want the most money in the shortest amount of time. That is true sometimes, but that doesn't work perfectly for every single person, situation. What I wanted to hear is what would be the best offer based upon what the seller needed. Just because the seller put the house on the market doesn't mean they can be out in two weeks or 30 days or sometimes even 45 days. What is it that we could do to figure out what's the best timeline and that's what she shared with me. She said look here's what's going on, and actually in this particular case a fast closing really wasn't going to benefit the seller at all. As a matter of fact, he would make him have to react and kind of increases his tension through this process to really have to move fast. And so, the idea of well let's give them a really good offer in a short timeline actually would have been a detriment, but we would have never known that had I just picked up the phone and asked the question. What would work out the best? Now we can match our offer and our timeline based upon what the goal is that the seller has creating a really good situation for both parties. It would give my folks more time and obviously gives the seller more time. I realize that not every situation just works out the way. I realize some people got to be in the house tomorrow because well, they got a job transfer. Maybe they had another the house under contract already, and the deal fell through and now their timeline is even shorter. So there are certain situations where okay, maybe speed is the key, but having that conversation. Of course, if speed is the key then you really probably need to look at houses that are vacant. Right? Because obviously nobody's living there. You can move in tomorrow more than likely as far as the owner is concerned. So you need to match the type of property up with the situation. If you go into a home and you can tell they have been there for 35 years. It is packed to the gills with every kind of knick knack under the sun, for you to deliver an offer and asking to be out in 15 days probably is not going to be realistic for somebody packing that much debris with them. Right?
Keith: It is going to be tough for the seller
Jason: It is definitely going to be tough. We really just want to find out what the best offer is going to be for that seller. How can we do that? Through having a great communication and there's a lot of other terms in real estate other than just price. I know that's something that people concentrate on, but we have sold a lot of homes and I've seen our owners take offers that were less money because other terms fit their needs more so than the price. They were willing to actually take less money because maybe these people would wait 90 days to close. All those things are up in the air and all those things can be to the benefit of one party or the other.
Keith: I am not going to lie. I hear what you're saying. It is a little counterintuitive. I always would have figured the highest offer was going to, more often than not, seventy, eighty percent of the time, be the one that's selected. But obviously we're going to communicate well because that's going to be really important. But outside of that, what can we do to make our offer stand out?
Jason: The key thing I think is is really time is is always critical unless the house is vacant. But we really got to find what's the purpose for the move. That is a key thing. Why is the person moving? Buyer and seller. What is the purpose of that? Is it something that is let's just say somebody's downsizing and they have been there for 35 years. It's going to be difficult for them to, after 35 years, to say goodbye to the house. I can assure. At 35 years, they are emotionally 100% bought into this property. It's going to be a tough for them to probably downsize into something else. We tend to collect a lot of stuff. The longer we stay in a property the more we jam it full of things. Right? We've looked at situations where the owners downsizing so much that they're only taking like 20 percent of the furniture with them. They went ahead and put the house on the market and now the big stumbling block for them is holy cow, how am I going to get rid of all this stuff in x amount of days. We create this kind of hypersensitive situation where now they feel like they're under the gun to do anything because well, their whole entire world is changing it after 35 years. But by talking to the agent, we can actually work out a way in which maybe we can remove that stress and give them more time to get rid of everything, give them more time to close. We've had a situation where we got an offer accepted that I know for sure was not the highest offer, but the buyer just said look, you take whatever you want. You just leave the rest for us to deal with and basically will take the burden off of you. Well, that was such a huge relief to that seller and the convenience of the buyer was going to deal with it that they took less money for the home and the simple fact that they didn't have to fret or worry or get all in a tizzy of attempting to get rid of their stuff. You would think oh, that's not that big a deal. Believe it or not, a lot of the places you make donations to these days, they get pretty picky. They won't just come take anything.
Keith: Take it all.
Jason: Yeah, right and, yeah, I guess in certain areas you could put it out on the curb. That's true. But you got to remember these are people's personal items that they've kept for 20 and 30 years. They don't consider them trash. Even though you met you may. You may not consider it of much value. They kept it all those years for a reason, right, as personal attachment. And so it's tough to say goodbye to some of that stuff and the fact you're making that life change. So we have partnered with some great ministries throughout the Triad that can come in and help out. But in this situation, the buyer just said I will remove this burden from you. I will take the burden of getting rid of whatever and maybe they wanted some of the stuff. But whatever they didn't want, they took it on themselves to get rid of it and that was enough to push their offer to the top. But that never would have happened without great communication and having a conversation. Sometimes it's just as simple as getting on the phone talking to the other side. It doesn't have to be this adversarial situation. I think we watch too much of that HGTV, and it's always you pay the most in the shortest amount of time. But we got to realize that that is TV. It's not reality, and so you've got to look at all those things. Most owners are stressed about the move just as much as the buyers are, but if you can work through your offer and figure out what the stress points are and blend into your offer a way in which to remove some of that stress from the seller, it's gold for everybody. But that's really got to be done verbally. It needs to be an open dialect, open communication. And so, obviously this radio show would be a lot less informative and fun if I just text out the message. Right?
Keith: Well but see that's such a great example because that's a really creative solution and that may only be the case for one out of a hundred different people, but you're never going to learn that through a text message. You're not going to learn that through an email. If you don't have an honest one on one conversation, you're never going to be able to come with a creative solution like that.
Jason: Well, and how many times have we all, I'm sure, have not only received an email in a completely different tone in which the sender intended it. Right? Because we read it in the mood and or attitude that we are having at that particular moment. Likewise, I am sure we have sent emails out in which we did not mean anything by it whatsoever. Like here's some information for you, and then the response we get back does not match the really the attitude that we had at all about sending the email. They read something 100% totally different into that.
Keith: And then you're going to have a phone conversation to explain the text message and email.
Jason: Hopefully you do. Hopefully you do. Hopefully it doesn't escalate into hey, what are you talking about? I didn't mean this or this and this but oh, by the way, since you have this attitude with me –
Keith: Because you went there.
Jason: Here is a little bit to you. We see it time and time again. It's all over the Internet. Hey, if you need an acid test for this just go to Facebook, right? You see these banterings of things on social media and that's the missing piece. I was a contract chef for many years, but a hundred years ago I should say, but I had a military account. I was chef at an Officers Club and even back then I was like, wow, one of the biggest hindrances I saw within the military and communication was everything had to be a written memorandum. The problem was is that memorandum came out sometimes to be like a threat and it wasn't the intention at all, but nobody would just pick up the phone and talk. Everything had to be official written letter. You think that would be oh really good communication, but no, it actually ended up with more strife, more issues, more problems that it created because just let's just talk. That whole face-to-face meeting. I guess, love or hate him, but this is one thing that I guess Dick Cheney got right. Right? He never did anything in writing. It was always face to face. Now, he may have doe it for a totally different reason, but the bottom line is he understood the value of that communication. All right. So while we are giving you some information to ponder, we're going to take a quick timeout. Go pay some bills. Think about those messages that you send out. I think this is a real live scenario that pretty much everybody can dig into and understand. But we're going to come back and make sure that you make good decisions going forward and will help you get the right offer presented We will be right back in just a few minutes. You're listening to the Jason Bramblett Real Estate Show.
And welcome back to the Jason Bramblett Real Estate Show. Before the break, we were talking about communication. And obviously I'm stumbling over my words, so I'm not communicating well. Getting away from text, getting away from email when you're negotiating a real estate offer and contract, verbal communication is key, and we just want to give you some tips and some tricks and some ideas. It is really not tricks. It's just good old-fashioned let's just talk about it. That is it. That's all we want to do.
Keith: Well, here is the question though. Let's be honest. There are a million agents out there, and a lot of people do a lot of good work. Love you guys. But a lot of people do a lot of good work. How do you pick out an agent that's going to find that important to do those things for you?
Jason: Absolutely. There are 1.3 million of them to be honest with you. There is a lot. There is a lot and so communication is key. And really the test I think you've got to look at is how does the agent communicate with you? Can you relate to them? Do they understand your situation? Do they understand your goals? Or do they just simply it's just these quick one line texts and or emails and that's where, what I find is the canned email, the canned text communication, Typically, if they're communicating with you, their client, that way, then they're certainly probably going to communicate with the other side or the other party, whether it be seller or buyer. It is just a really good indication of how they're going to negotiate. So you want to look at whether someone has good communication skills, but also the person that really just asks the right questions that digs in and finds out yes, you want to buy a house, but what is really the purpose of the house? Because a house is just shelter, right? But what are the other pieces? Well, really, what's the most important to me is I want to be less than 30 minutes to whatever. Really what is the most important for me and my family is that we are in this school district is a number one. Actually, what I find is most of time the house is really number 2, 3, 4, or 5 on the list of things that someone's trying to accomplish in their move. All these other things actually really move to the top of the list and we're really kind of looking just for the best house option that helps them reach the other goals. But you will never know that unless you ask the right questions. And so yes, we're in the real estate business. We sell homes, but really what we do is we solve the problems that are in front of the house. The house really becomes the anchor point of solving the other issues, but you've got to ask the right questions to know that.
Keith: So let's flip the script a little bit. Let's say I'm selling a house and I'm one of these lucky people have got that right price range, just this house that everybody loves, and now I got 15 offers. Now what?
Jason: When you ring the doorbell and it goes cha-ching.
Keith: Careful what you wish for.
Jason: Yeah, right. Exactly. And so, most sellers go straight to the price and price obviously, it's important. Psychologically, there's nobody out here that goes wow, could I hire you to sell my house for as low of price as possible? Right? It doesn't exist. It doesn't happen. It's always it's always most is typically key. But then again, it goes back to is most best? So this is something we work on every single week in the office. And I basically walked the team through this. Just because you get above your asking price doesn't really mean that everybody's going to agree with that number like the bank, which is, you have got to realize 90% of the homes that are purchased in America used a loan. They aren't paying cash. Only about 10% of the transactions are cash. So if there's another party in here involved the bank, and they say hey, well, it's fine that you and Mr. Buyer, Mr. Seller, you agreed to this. However, we've done our own research. We've had an appraisal done, and we find that our number is this, which is lower than what the two of you agreed upon. Right? Why is that a big deal? Well, it's a huge deal for the seller because if you get blinded by this big top number of price, it does not mean it is going stick. We run into this situation right now in this multiple offer situation where yeah, to pay $10,000 more in price, it's only 50 60, $70 or more per month in payment. It's $10,000 to the bank.
Jason: Big number. So it's a little number for you, but it's a big number for the bank. That is why they have these provisions set up in there. So good communication is key, but we also need to make sure that we're choosing the right information we're going on. If you want to get more information about how to properly buy and or sell a home you can go to Jason Bramblett dot com, and we will be happy to get you that information. You give us a call at the office 553-0796 and we'll see you back here next week.