Jason Bramblett Real Estate Show Podcast
Jason: Good morning. You are listening to the Jason Bramblett Real Estate Show. Hope everybody is having a fantastic weekend and good start to March. It is here March. Well, madness as they say, right?
Keith: I know basketball is about to kick off.
Keith: Probably not a great environment for North Carolina fans right now. But they will be back.
Jason: They will be back.
Keith: It happens.
Jason: What do we always say? This is a rebuilding time. Right?
Keith: It happens.
Jason: And hey, look how many between Duke and Carolina, look how many kids get sucked out of that program every year to the NBA. It is huge. I am always amazed with both coaches. Mike and Roy because they really the home will start over every year. You have got the kids that just fly through their programs compared to other schools where you actually get them for all four or five years, depending on how long they are in college. But those two coaches, just really the talent that they attract is awesome. But it is also very temporary.
Jason: And then sometimes, what it has been like, I do not know what, seven, eight years since Carolina has had I use a team. It just happens, right?
Keith: It happens. It is a great program, and they will be back.
Jason: There is no question about it, no question about it. They are definitely not going anywhere, and then they will be back on top. Well, I think if they win the ACC tournament, they at least get a seat, right?
Keith: Yeah. Look, they have had some injuries and they are getting healthy again, but I think that is probably, that would be like true miracle.
Jason: Yeah. Right. And then for another analogy in the world of golf, it would be like, hey, they had a swing change this year.
Jason: That is all. That is all.
Keith: New irons.
Jason: Lots of changes like stock market and interest rates. It is really like March Madness, right? Everything is going up and down and sideways and everything like that. But if you want some stability, I will tell you one thing that is pretty stable, and I have noticed it in our investments and other investors that we work in or work with, rental homes. The great thing about rental homes is yeah, the value of the house may bounce all around with the market, but the rent stays the same. Right? You lock those rent agreements in for whatever the term may be. So maybe it is a year or two, and it is consistently $1300, $1400, $1500 a month, and no matter what is going on around you, that rent stays the same. It is very consistent. It is a phenomenal, I think, investment opportunity for many, many people in the Triad to get diversified. So maybe you keep some of your money in the good old-fashioned stock market, but rental homes and investment property can be an excellent stabilizer.
Keith: Well, you and I have talked. I moved here to the area about seven years ago and the price that I paid to rent my very first home, when I eventually had to go rent another home, four years later, it was unbelievable how much it had gone up.
Jason: Yeah, yeah.
Keith: I now own, but the difference was literally $400 a month for the same home four years later.
Jason: Right Yeah, rent, no question has just dramatically increased in the Triad. So for you folks that have thought about maybe diversifying your portfolio or just starting your portfolio with a rental property, I think it is one of the greatest things you can do to hedge your protection from an investment standpoint, because people do not have to have the stock market, but they have to live somewhere. Yeah, they have to live somewhere. At the end of the day, the stock market, we know can ebb and flow and crash and burn and all that, and people still have somewhere they need to live. And yes, jobs could change. All that stuff. But the end of the day, even with no job, people still have a desire to have shelter over them. A goal of most Americans is not to make it underneath the I-40 overpass. Right?
Keith: True story.
Jason: They want to be somewhere with shelter. So rental property can be a great, great investment long term. So last week, we were talking about a couple different case studies. Some different things that we have been working through observations that I have seen in real estate over the last 20 years, if you will. We are going to pick up the show and dig in a little bit deeper to some of those this week. But if you have real estate specific questions that we do not ever get to on the show, or it is just a really, really great question, we do share your questions on here all the time and do my best to answer those. You can go to Jason Bramblett dot com, click on that email icon, send us one over or call the office at 553-0796.
Keith: Well, we had a story that was really unfortunate last week. And I wanted to dig a little deeper into that. We had a listener, who if I remember correctly, she lost about $100,000 on her house, was using kind of a friend to sort of do the buy and the sale, and there was a lot of things, and it just went really sideways and was impacting her. What should she have done it? Where should she have kind of intervened?
Jason: It is unfortunate. That is a big number. We typically do not see $100,000. But it is a common story that we get. We do. This was not purposely done by any stretch of the imagination, but it is something that has kind of migrated over the last 20 years. We really are the real estate company people call when like nothing else seems to work. My question to you listeners is why do not you just call us first?
Keith: It is easier that way, isn’t it?
Jason: It is easier that way. But like all things in life, sometimes you have to learn the hard way. Well, the hard way can be the expensive way. And my hope is that we can save you thousands of dollars and maybe we can’t save you $100,000 as our case study here. This lady is really in a bad situation. So what she could have done differently, and this is one thing that I have seen over and over and over again, and it is not just here in the Triad. It is a nationwide thing, where the owner of the house has chosen the real estate agent, and it is also the same agent in which they are going to use to purchase a next home. And that just does not set up a good plan, typically,. Anytime you have got a salesperson involved that is being rewarded for a next action, and the next action typically is bigger, and there is a bigger carrot dangled in front of them, there is this question of bias versus unbiased, right? Always. Why even put yourself in that position? It is not a necessary thing. What we do as a company is we separate the two. At no time within my company will you ever work with the same person on a deal. And the reason being is because I have seen over and over and over again, where bad decisions have been made, by using this same person to sell and buy with, and it just, there is a level of question in there that just does not even need to be there. Use an independent company or person to sell your home and use another person within that company, within our system, you would use another agent within our company to purchase the home. It keeps everything very clear. No two agents are compensated on the same home, which really separates those blended lines very, very clearly. Everyone has got their specific tasks. The other thing, too, is they really are two different skill sets and two different talents. And I find that very, very, very few people, I would say it is probably less than 1%, have all the talents to work both sides of the fence. It is a very different skill set to work on selling a home as a listing agent than it is working with a buyer as a buyer's agent. Two completely different skill sets. Two different ways in which you handle the processes and the procedures. Many, many more steps to the listing side than there is the buyer side of the business. It is not an apples and apples. It is completely apples and oranges. Typically, you have one great experience on one side and so-so on the other.
Keith: Well, it makes perfect sense. Even if you get somebody, let's say who is completely on the up and up and does their very best job to do both transactions. Like you said, they are likely better at one side of the equation and the other so why not get somebody who is an expert at doing just this so you get the most for your home and an expert at doing just this so you get the best possible deal. And there is never a question that way.
Jason: Yeah, 100%.
Keith: Makes sense.
Jason: It is just like all fields. Take dentistry. You have your dentist and then you have an orthodontist. Right?
Jason: And it is all about the teeth. So it is all about the house. But the processes in which the goals of each one of them what they are attempting to accomplish are different, different skill sets, different specialties, but still the same product. In their case its teeth; our case it is houses, but it is still two different specialists, if you will, to get two different outcomes, right, and each one specific to itself. It is not popular and it is becoming more popular, I will say. I have seen it more. More companies changing to this model and switching to this than I have in the last three or four or five years than I have in the last 20, which is excellent because it is something that I believe it serves the customer and the client the best for sure. No question. Is it perfect all the time? Well, no, nothing is perfect all the time because there are these things called people involved, right? And then when we have people involved, there are things that can happen. It is not just the agents. Think about all the people involved. You got attorneys and home inspectors and surveyors and mortgage people, and there are just lots and lots of moving parts to this thing we call real estate. But separating out those two things, I believe, in this particular scenario with this person would have come out different. So the this the setup was, hey, I can financially afford to buy this other home before I sell this house. How much can you get me for this house? Number was given, which was the wrong number. And yet, they have already purchased the other home with the anticipation of getting this pre-determined price for the house, which was wrong by $100,000 so far. That is just where she is right now. $100,000 less than what this real estate company had told her. Full disclosure. It was not us. So we are going to do our best to overcome and fix what we can in that. She fell into the trap of really kind of hearing what she wanted to hear and not a lot of data and proof behind it. More of I went on faith because this person is my friend. This person obviously wants to sell the home for the most money, and all those things are true. But if it is the wrong data, it is the wrong data. Or maybe they did not even look at the data. They just went with hey, I feel like we could get this for the house. Well, here is the thing with real estate. If the real estate agent that is going to sell your home tells you that they can get, makeup on number $250,000 for your home, the only way in which that number is accurate is if they are the ones buying your house. That is it because anybody else other than them that is going to be buying your home may have a different number in mind. And the only way that they can guarantee that they are going to get an X price for your home is that they are the actual ones buying the property, which is what we do with our guaranteed sales program. Right? We have a guaranteed sales program in which at the end of 120 days if your home has not sold, I will purchase it, and I purchase it at a price that we agreed to upfront and it is the price period. And the reason why I know your house can sell for that number is because I am the one buying the property.
Keith: And there you go.
Jason: It gets very, very clear. But if the real estate agent that you are thinking about hiring says they can guarantee to get you a certain amount of money for your home, and they are not the one purchasing, it is not 100%. It is not guaranteed for sure. And things change. Right? Yeah, they may have this amazing pitch that they are giving you. But unless they are willing to sign their name to it, not so much.
Keith: This week is a great example. Just look at what all the different things that have transpired in the last two weeks. I am not saying that anybody's home's value has changed, but it could just events that happened in two weeks could change what you can get today, as opposed to 20 days from now. It could be a totally different number just based on things you cannot control.
Jason: Sure. Interest rates are a perfect example. Hey, two weeks ago, you could have got an interest rate way below 4%. Today, not so much, right? Was there anything in the world that the mortgage person could do about that? No, unless they were the one loaning you the money, right? Wells Fargo. The person you are dealing with at Wells Fargo, Bank of America, Chase, I will pick on all of them. Unless you did what they called locked your rate, it was what they would call floating, meaning no guarantee until what? We are committed to each other. And until there is a commitment, that rate can go anywhere, right? As a matter of fact, it did. It bounced all over the place. It is still bouncing all over the place. And until there is a commitment, a buyer for your home, or the agent is the buyer for the home, there cannot be a guarantee of anything. Wells Fargo, I keep saying Wells Fargo, but any bank is not going to commit to the interest rate until you commit to them and the house. Right?
Keith: Makes sense. That is just Mortgage 101 right? Outside of that anything and everything is open game, and the reason why they have these procedures of locking interest rates and all that stuff is because it is a daily changing thing. And they also want to lock in rates for their protection. Or you have these things called adjustable rates, which are always grandiose and fun, but they even lock. Even an adjustable rate starts at a base blind, if you will, and then it adjusts based off whatever indexes are going with. But I have seen these things happen over the years. Before I started this company I was with another real estate franchise for many, many years, for a decade. And I just I saw this several times, not only at that particular company, but just in the industry and I still see it today, and it is something that is easily preventable. Right? There are so many things in life that you really cannot control. This is a pretty easy one. This is not a hard decision. One of the benefits of our company is that we do separate out these two to make it clear and decisive. And that way you have one expert that is an expert that you are dealing with in selling your home and a different person as an expert in buying. It makes a huge difference. The experience is different, I can assure you, and it is a trend in which we also do see happening across the United States. People are starting to realize, hey, there is something different here. Yeah, there is. It is a total transformation.
Keith: Better experience.
Jason: Yeah, experience. So we will do this. We will take a quick timeout. We will go pay some bills. We will be back in just a moment. You are listening to the Jason Bramblett Real Estate Show.
Welcome back to the Jason Bramblett Real Estate Show. Before the break we were digging into some differences in real estate and how things can be approached and different sales styles and different philosophies. We are going to continue with that, but if you have questions at any time, always feel free to give us a call. Our office number is 553-0796 or go to Jason Bramblett dot com. There is a place you can shoot us an email. You could check the value of your home. You can look at houses for sale anywhere in the Triad. Lots of information there for you, and of course, the link to all the past radio shows. You can hit our blog there and gather any information there as well.
Keith: So setting up that independent buyer-seller relationship. That is a huge difference with you guys. And that might be reason enough to go with you. But if you are looking to sell your home and using your company, what are some of the other benefits aside from that?
Jason: Yeah, so we talk about this like every single day I think at the office, and it is all about proactive versus being reactive. We have always taken a tremendous proactive position in all things real estate. So most sales people, and this is not just real estate, but most salespeople are what we would call order takers. Like they are okay, as long as you call me and tell me what you want, I will write it down, and we will do a transaction. Right? Well, folks, that is not sales; that is order taking. Yeah. Sales is different. Sales is proactive. That is going out where nothing has happened, happening or happened and making something move. And it is a more aggressive way to sell, but it is selling. Everything else is just reactionary. Right? You have got to get out there and make something happen. You got to push this thing along. All right. Now one of the things that we do is not only are we proactive in our position on selling, but we are proactive in our position on what we are selling. So we do a tremendous amount of due diligence on the product that we are selling so that we have full knowledge of every single thing that is completely right with your home, and everything that is completely wrong with your home. And you all have both. Right? We all do. We have things. Every single house. The reason that we do this is it puts us in a position of really control and being proactive in the fact that we do not have to react to anything. There are no surprises, right? Typically, when we react from a surprise, it also has another word that follows along with it. It is called expensive, right? And the reason it is expensive is because typically when we make decisions with lack of knowledge or little research, we pay more, right? There is a whole industry born out of this idea. It is called Consumer Reports, right? It is a place in which digit heads can go do research and figure out what is the best bang for their buck. Do some research about what the opinions of whatever the life expectancy of this product is what is going to be, whatever. You know the drill.
Keith: I have gone.
Jason: Yeah, absolutely. Now we do it a little bit quicker. So that was a little bit. So for a certain percentage of people, that was great because they love digits and detail and all that. And then there was another group of people that they want the information, but they do not want it that way. So we created this amazing reporting system called a star. Right? Reviews. And now we go to Amazon and we see oh, 4.9 stars, you are good; 1.9 you are out, right? Either you have no reviews or you are horrific. Right?
Keith: True story.
Jason: The number of reviews also makes a difference. Right? Now, there are some questions with some websites as to whether those are real or not. And are they just made in some sweatshop, kiosk somewhere overseas where they are pumping in a bunch of fake data, which, unfortunately, it has happened. But it is a good litmus test, if you will, for the consumer. And that is exactly what we do with your home. We break it down into okay, what is good, what is bad, what should we fix if anything. You do not have to fix everything or anything to sell your home with our company. We sell properties as is all the time, but we do want to know what we are selling. Because I believe if we present a home to Keith and we say, hey, here is every single thing that is right with this house and every single thing that is wrong, and the seller is not in a position to be able to fix anything, whether by choice or by money, whatever it is. Keith can look at the list. He is an intelligent enough person, and he can say I am fine with this and for this type of things that are wrong and right with this house, I am willing to pay this number. And we do that every single day. Could Keith get more? Or could the owner get more from Keith and money by fixing some things? Probably, because one of the things that Keith is also factoring in is, hey, just because this guy will not fix this stuff, does not mean it does not need to be fixed.
Jason: And if I am the one who is going to fix it, then that is called my money. Typically, we see what a little bartering back and forth. We come to an agreement, but the thing about it is, is we know what is going on up front. So there are no surprises. I cannot tell you how many homes I have been in where the owners told me hey, there is nothing wrong with our home. Only to find out, oh my gosh, it was not perfect, which none of them are, folks. Coming from a place of being proactive and knowing things up front is very, very powerful. So to get more information about our company, about our sales process, go to Jason Bramblett do com. We will be back here next week. And remember, we have commission program starting at 4.98%. We will see you next week on the Jason Bramblett Real Estate Show.