Real Estate News Radio with Rowena Patton

Unlocking Profitable Home Sales: Insights on CashCPO, Market Trends, and Pre-Listing Inspections

• Rowena Patton

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Are you ready to unlock the secrets to a smoother, more profitable home-selling experience? Join me, Rowena Patton, on the Real Estate Market Analysis Show, where I'll reveal how our CashCPO program can help you achieve higher returns and quicker sales, all without the hassle of showings. With the real estate market beginning to normalize, there’s never been a better time to sell. Listen in as I answer Mark from Denver’s call and provide detailed insights into the economic cycle and performance of various Denver areas, highlighting how my extensive network of top realtors across the country can assist you.

Ever wondered why selling a home in Miami can be so challenging? In this episode, we tackle homeowners' concerns, emphasizing the importance of partnering with specialized, experienced real estate agents who understand the nuances of specific neighborhoods. We'll break down how the variability in home prices and growth rates within different Miami zip codes can lead to significant price differences, and discuss how factors like price cuts and overvaluation indicate market trends. By understanding these data points, you’ll be equipped to navigate the market more effectively and reduce the risk of prolonged listing periods.

Finally, we focus on the crucial steps you can take to ensure a successful sale. Learn about the significance of pre-listing inspections and the benefits of the Certified Pre-Owned (CPO) home listing process. Discover how investing in a pre-listing inspection can help you identify potential issues early and mitigate common anxieties related to repairs. We'll share real-life examples, including Lisa from Chicago, to illustrate how these strategies can set realistic expectations and avoid surprises during the buyer's inspection. Plus, explore how the CPO process can reduce dropout rates from traditional listings and even offer cash CPO options for a quicker, stress-free sale. Tune in to find out how you can maximize your home's value and ensure a smoother selling experience.

Speaker 1:

Real Estate Show with your host, rowena Patton, a show that focuses on the real estate market in terms you can easily understand. Call Rowena now. The number is 240-9962 or 1-800-570-9962. Now here's the English girl in the mountains, the agent that I would trust, rowena Patton.

Speaker 2:

There's lots of promises for cash offers, with one big problem they only give you a small percentage of your home's worth. Rowena Patton here, founder of CashCPO, sell for 11% more and twice as fast, without the hassle of showings. Get a big cash advance in 12 days. Two-thirds of sellers get more than they would with a traditional listing. Profit goes back to you. Check out cashcpocom and put more money in your pocket today.

Speaker 3:

Hey, sean Hannity here talking with the only real estate agent in your market. I recommend Rowena Patton with All Star Powerhouse. So now that the market is normalizing again, how's that going to impact home selling right now?

Speaker 2:

You know, sean, that's a great question and people all around the country are asking it. I'd really like them to know about the cash CPO offer. It's certified. Pre-owned homes are inspected often they're appraised and cash CPO offers sell for 11% more and twice as fast, and there's no hassle of the showings.

Speaker 3:

So is now the time to sell.

Speaker 2:

You know, Sean, it's really all about do you want to sell now or not? Are you just dipping your toe in the water? If you want to get top value, sell it now.

Speaker 3:

You've got a small window before we expect to see that real flatting out the market before we expect to see that real flatting out the market, call Rowena Patton right now at 828-333-4483 or online at mountainhomehuntcom.

Speaker 2:

Good morning, it's Rowena Patton here. How are you all doing on this beautiful Saturday? Today is the debate show. What do you think, Randy?

Speaker 4:

I'm not prepared to debate.

Speaker 2:

Why not?

Speaker 4:

I'm just not prepared.

Speaker 2:

Nobody else was either, apparently Exactly.

Speaker 4:

I've had enough debate how you doing on this Saturday. It's gorgeous weather, huh oh my gosh.

Speaker 2:

I just love the summer.

Speaker 4:

I do too.

Speaker 2:

I love running around in flip-flops and not worrying about what the weather's going to be, other than how hot is it going to be? Yeah, I'm perfectly happy, perfectly happy. I know we have some call-ins today. We've got. Should we kick it off with Mark from Denver? Randy, how does that sound?

Speaker 4:

If you'll stand by just a minute, I think I can get Mark ready to We've got Mark who is.

Speaker 2:

Let me look back at my notes here. Apparently, I'm not prepared for the debate either, but I'm not running the country or hoping to be. Just saying here's Mark Hi Ro.

Speaker 1:

This is Mark from Denver. I'm concerned about whether we'll get the price we want for our home. Do you think the market here is favorable for selling right now?

Speaker 2:

Oh, my Denver, and you all know that I can do this anywhere in the country with any zip code ever. So there's a lot of people that are getting concerned right now about whether they'll get the price for their home because we are in that economic sort of flattening top, if you like. I'm not going to call it decline, although a lot of people out there would say it's a decline, but it's a normal economic cycle seven to eleven years and we've been bumping around the top for oh, about two years at this. At this point, we go a little bit up, a little bit down, a little bit up, a little bit down. If you think of the ziggy-zaggy roller coaster, that is an economic cycle. That's what it looks like. However, since 1860, when Clément Jugla, the French economist, set this cycle up, or set up how it looks like at least, it really hasn't changed. It gets a bit longer, sometimes, like the last cycle was 14 years, if indeed we have bumped along the top there. That's a very, very long cycle. We don't know whether that means and neither do the economists either they get it right, they get it wrong. However, the actual cycle, the shape of the cycle, stays the same. So that's where Mark's concern is coming from. And yeah, denver is doing all kinds of things.

Speaker 2:

Now, of course, I am not a licensess. Do the disclaimer? We should have recorded this and replayed it back at 10 times the speed. Randy, that would have been funny. We should do that actually. Let's do that and you can play my disclaimer. It'd be hilarious.

Speaker 2:

So I am not a realtor. I mean, I am a realtor I'm licensed in. Actually, I'm a realtor, I guess. Never mind, I'm licensed in North Carolina, not in the other states. I have amazing partners everywhere in the country who are in the top 5% of realtors in the country. I can find you somebody in two minutes and I usually know them personally all over the country because of the circles I've ran in for the last few years. So you know, never fear of that.

Speaker 2:

However, because of the accessibility of data now I can find all kinds of. I can find 30 points of data for every single zip code in the country. That's where I'm going. So when you call in and I noticed this week same thing with my call-ins that we recorded to make it easier on the show, you know everybody's in different time zones and everything else I need your zip code. So Denver, where are we in Denver? Are we in Thornton? Are we in Lakewood? Are we in Aurora? Are we, you know, where are we in Denver? Because they're all acting very differently.

Speaker 2:

So if I look at valuations, for example, the actual center spot of Denver and I hope this is answering your question, mark you can always actually give us a call 800-570-9962. 800-570-9962. That is for Mark. However, you are absolutely welcome to call in and I will run off the data points for your friend's zip code, your zip code, wherever you want it reading off, for I'll give you all of the data points. So, the center, denver, in the center, basically.

Speaker 2:

So if we're talking about Lakeside, or if we're talking about, where is it? Highland Square, around that area, these are actually technically, on all the data points that are being brought. These are actually undervalued, which is a little bit shocking to me right now, most of the areas around. So if we go down to Lakewood I think that's where he is actually If we go down to Lakewood, which is 80226, then we are showing 30% overvalued. So we've gone from Alamo Placida, which is 0.9 minus in the negative, 9% undervalued, to Lakewood, which is just to the west, which is 30% overvalued. Now what does that mean? If it's overvalued, it's much more likely to drop in price. Here's another one. So in the zip code 80235, that's right by the Colorado Academy 39% overvalued. So the other thing we can look at and these are just two data points, obviously, if you've got your zip code, call in 800-570-9962.

Speaker 2:

We'll do a deep dive onto yours. Let's, for example, look in this zip code here and look at buy versus rent differential. So the typical house payment in that same area is let's have a look typical house payment is $37,394. Obviously that is for the year. And then when we look at apartment rent, it's $23,551. So it's nearly 60% more to actually purchase. So you've got the difference between $23,000 and $37,000. And obviously a lot of people just can't afford that $37, that 37,. So 23,000 sounds like a lot for rent, doesn't it, randy?

Speaker 4:

Yes, it does.

Speaker 2:

I guess that's just under two a month, so that's about the same as it is here.

Speaker 2:

Yeah, that's real close, yeah, yeah so in most places in the country you can find that $2,000 a month rent. You know, if you want a bedroom or two, it might not be the average rent but you could find something at that. So these aren't too different for wherever you're at Now. Of course the difference is you're not building equity. However, the differential at 60%, you know some places you're finding it's twice as expensive to buy as it is rent. Once it gets around that amount, then you have all these companies coming in building these apartments and we've seen that here and you've seen it in a lot of cities. It gets so expensive to buy that the apartment. People come in and they build all these apartments with thousands of apartments. And then if you're a mom and pop that rents out your house, for example, that hits your rental prices because there's all these new fancy. Well, they're not that fancy usually, but they're brand new apartments and a lot of people would choose to go into a brand new apartment with all the safety features and you know, maybe there's a pool, maybe there's a clubhouse, all of that which your little rental house or your own little rental unit may or may not have. So it hurts house or your own little rental unit may or may not have. So it hurts. It's all supply and demand. The more supply there is, you know that's going to meet the demand and it hurts prices and everything else.

Speaker 2:

Let's have a look at. You know always like to have a look at price drops those of you who've been listening for the last couple of months since I've been able to do this. Let's have a look at market trends. Price cuts this is the same area. Wow, so we have 48% have had price cuts. That means almost half of the listings on the market have had price cuts. We're talking about the whole Park Area where Mullen High School 80236. Any of you used to live in Denver or live in Denver know what I'm talking about Price cut 73% guys that's three quarters of people with a listing on the market have cut their prices.

Speaker 2:

That means generally you tell me what it means. I'm imagining that means that when you've got your house listed, you're listening to the economic news, you're watching the debate. You know there's an election coming up which slows things down a little bit. There's the September shoulder coming up, as I call it, when things get a bit quiet for a couple of weeks as the kids go back to school and you know that drive to move isn't as alert as it was before. And, most importantly, you've got yourself on an internet drip that's showing you all of these listings around you that have a price cut. So when you see that, you're like, oh, they know something's going on, I better cut mine because I don't want to chase the market down. And your agent is discussing that with you and saying, hey, the last thing you want to do is be chasing the market down, right? So that makes huge sense.

Speaker 2:

Even when we go over to Englewood, 70% are cutting their prices. That's a lot, guys. So to put that in perspective, it's usually about 6%. We've gone up in a straight line. Let me just tell you for this area where we're at Ooh, the house price forecast this is one of the lowest I've seen. We're down at 30. Forecast this is one of the lowest I've seen. We're down at 30. At 50 is balanced. We're down at 30.

Speaker 2:

Since 2022. So in 2022, for example, 13% cut the home prices. The years before that we were running 9%, 13%, 9%, 13%, 2022, just seesawing a little bit. So since 2022, in the same month, we've gone from 13.3 up to 70.9 in a straight line. Every single every. You know each year that we've measured it. So that is concerning. So, depending.

Speaker 2:

I can't really answer your question, mark, because you didn't give me your zip code. It depends on which zip code you're in. However, we do know that Denver's not looking that hot right now. Well, denver's probably very hot in temperature, but in terms of hot of prices remaining stable, none of us know right. But we can only look at data and all of the forecasts and it absolutely depends whereabouts you are. That's absolutely huge. I've got heat maps and every heat map for every data point is different, right, even in the same zip code. So you know, I need your zip code to be able to do this. But at least that's given you a feel.

Speaker 2:

For around Denver, over by the lake there, 80014. Ooh, 63% price cuts. That's interesting because that's over by the lake. The home price forecast over there is 19. We've gone up in a straight line for price cuts from 13.9 in 2023. 62.7% Gosh, we just found one that was three quarters too. The home price forecast is particularly low in 8-0-0 in 80014. That's Aurora, lakewood, and so you know. Again, give me your zip codes. That's very helpful when we do those, let's see if we can do a deeper dig for Emily. Randy, do we have Emily lined up and let's see if I can do a deeper dig for her? If I can, I'm gonna go look up her zip code and I think she emailed it to me as well hey Ro.

Speaker 3:

This is Emily from Miami. I'm worried that our house might stay on the market for too long. How long do you think it typically takes to sell a home in our area?

Speaker 2:

I have the most wonderful agent in Miami that can help you Now. Miami is a big place like the mountains are a big place. You've got agents that specialize in different areas. Anybody that's thinking about selling right now? I want you to use an agent that specializes in your area. I will tell you how I will interview them for you. I will tell you it doesn't cost you any more money how many sales they've done in your area. Do not list your home with somebody that is not experienced at this point. This is not the time to risk it with your sister. Risk it for a Swiss kit. Did you have Swiss kits?

Speaker 1:

here, Andy no.

Speaker 2:

Oh dear, okay, never mind, so, ok, when, when I look at Miami, let me just pull her email up to look at where about she is. So she's in here. It is Three, three, one, two, six. So that is that. Looks like I used to live in Miami, so I should know exactly where that is. I thought it was Pompano Beach, but it's not.

Speaker 2:

Um, we are around right by the airport. We're just south of the airport here in Miami which, um, for those of you who've been to Miami, it's that whole big rectangular zip code. Below it the price cuts are running at. Yeah, here's the neighborhood down here. The price cuts are running at 37%. What does that mean? It means that 37% of the 108 listings in that market have had a price cut. So, emily, because you sent me your zip code, I will do a deep dive for you there.

Speaker 2:

So let's look at home prices and affordability. Home value we're looking at a median of 324 there. That surprises me honestly, gosh. And then when we look at home value growth, most of these aren't going to be terribly high Year on year. We've actually had 6% in that particular zip code, the one right below, which is Miami Terrace. Basically, we're looking at nearly 12% growth year on year. In that zip code. All the zip codes change, we can hop growth year on year in that zip code All the zip codes change, we can hop. So if you can imagine I know you're listening on the radio but imagine a big rectangle sitting below Miami airport, that is a growth of 6.3% If I go down one zip code right below. If you now divide that big rectangle in two pieces, underneath it two little slices of ham right beneath it, um, the, the one right beneath has gone up by nearly 12. The other little slice has gone up by 11. So we've gone from 6 to 12 to 11.

Speaker 2:

But look at the difference in the prices, which makes a little bit of sense because you're not right on the airport. So when we go down to 33134, the zip code average price point, we're looking at 786. A year ago. I'm rounding up to make the figures easier to 871. And that's gone from 30, no 323, right by the airport, right above it, right above it. So that's why these figures are always house to house, neighborhood to neighborhood, town to town, city to city, state to state, because it's really local. So you can walk three blocks here and go from a median price point of $3.23. I'm talking about $3.31, $3.26 right by the airport. Well, $3.24, really, really 324,000. Walk one block across the zip code and you've got an average of 628. It's almost double. So that's why it's always so important to not just look in your zip code but look street to street, and I promise you I've got the agent to do that for you.

Speaker 2:

Let's see what else we can find. I don't think we want to look at property tax rate. That's always scary, right. So let's look at, does it? Given all of the data points? And I can go into these more. If anybody is interested, give me a call at 828-570-9962.

Speaker 2:

It's looking at all kinds of data points to see whether it's overvalued or not, kinds of data points to see whether it's overvalued or not. In the one by the airport that's only at 324, it's showing a 23% overvaluation. Why is that important? Because these figures show the bubble and I can look at the bubble in your area. So, rather than you're watching the news and it going, oh North Carolina is doing this, or Texas is doing this, or Florida is doing this, or Texas is doing this, or Florida is doing this, or Wisconsin is doing this, it doesn't act like that and this is a really good example. So thank you, emily, on where we're at and showing you why right across the border of a zip code is a border town. With the next zip code, it can jump so dramatically to twice the price point. It can jump so dramatically to twice the price point. So it's not what's happening in North Carolina or what's happening in South Carolina or what's happening in Wisconsin. It doesn't act like that. It acts house to house, and that's why it's so important for you to get the real data Really, really, really important.

Speaker 2:

And one of the key ones, guys and I know I keep saying this to you is to look at price cuts. That's really telling you something. And the thing is, people may just be getting nervous and they want to get the house sold, Because if you don't sell it now, you're waiting out 10 years. Right, you're waiting out 10 years, 7 to 11. It could be 7 years. Are we going to have a short cycle? Nobody knows. Are we going to have a short cycle? Nobody knows, but we are going to have a cycle If trends hold true since 1860. And what about you, randy? If I were a betting girl, I would put very high odds on the fact we're going to have another economic cycle. Well, of course, yeah. It would be strange if we didn't, right?

Speaker 4:

Yeah, I'm getting a little long in the tooth now and I've been through several of these. Yeah, haven't we? Oh?

Speaker 2:

Yeah, yeah, maybe we could do a whole show on that. We'll do ones that. So you know, for most people it's like the last 60, maybe we'll do the last 50 years of the ups and downturns and looking at how they go because we've had about six or seven in that time and tell you who was president at the time and what was going on and what were the factors that caused it. That would be a great one, wouldn't it?

Speaker 4:

But in hindsight, looking back, I can tell you that you'll be fine.

Speaker 2:

Well, you are over the long term always You'll be fine, that's that we're not a communist country.

Speaker 2:

Therefore the government doesn't own all of our houses and therefore, no, over time again, can any of us guarantee this? Of course not. But if we look at you know, since time began in 1860, as far as the economic cycle is concerned your home goes up 2% to 3% a year on average, every single year. Now you're going to say, yeah, but it dropped, you know, 30% last time around in 2008. Well, yeah, but it took a few years for it to drop all the way to the bottom. And that was a very long cycle too. We had a very long one at that point.

Speaker 2:

But when I say 2% to 3%, I'm averaging it out right, which doesn't really help you if you're selling three years from now, because prices are likely to be significantly lower. But guess what? It really helps you. If you're a buyer, that's going to make you absolutely thrilled. There's nothing depressing about this. And guess what?

Speaker 2:

Most sellers are buyers. So when you sell your house at the top dollar, you're buying at the top dollar. Now, if you're right sizing, and you're moving out of your $800,000 house and taking all your equity and you're buying something new at $500,000 because you don't need that four or five bedroom house anymore with all that stuff in it, then you're a little bit better off because you're putting that $300,000. Yes, the $500. The 500 also is going to be high on the hog top dollar because we're at the top or just declining down the market right now. Now let's look, if you do that in, let's say, four years time, it's three and a half to five and a half years to the bottom, ie when prices are lower. That's all. That means the one that you're buying at 500, let's say here's the difference, when you're right sizing, the one at the bottom is 500,000, and let's say it's going to decline by 20%.

Speaker 2:

Let's see if I can do the math, that home is now going to be 400,000. 10% is 50, yeah, that's right, that home is going to be 400. See, randy can do math too. We're putting him on the spot Now. So, so okay, you're gonna save a hundred thousand dollars. Here's the problem. You're selling your house at eight hundred thousand. It's 160 less, right? So 640, is that right?

Speaker 4:

two percent 80. Yes, yes, yes.

Speaker 2:

So now your house is worth 640. So you've lost 160. It's all paper money, right. You've lost 160, but you've gained 100. So it's actually cost you $60,000. So it may be worth it for you to stick it out for two or three years. I'm not really sure why. Only you will know in your mind what's going to change. The problem is, if you're let's say, you're 59 and you're like, yeah, no, I just can't be bothered to move right now, or I can't be bothered to pack the house up, or the kids won't come back and get their stuff, like you've got to think about what it is. Is anything going to change in four years time? Because if not, then based on the stats, if you're right, it's all if this, then that these are all Boolean codes, right. If it stacks up the way it usually stacks up, it's going to cost you $60,000. That's a lot of money. What can you do with $60,000? Buy a truck, a new truck? Not quite, they're $80,000?

Speaker 4:

Buy a truck, A new truck? Not quite, they're $80,000.

Speaker 2:

Really For any old truck, come on.

Speaker 4:

Well, the fancy ones like I like.

Speaker 2:

Okay, well, okay. What would a $60,000 check to put down to you know finance the rest of your fancy truck?

Speaker 4:

How about that? Exactly, exactly. It means a lot. $60,000 is nothing to be sneezed at.

Speaker 2:

Right, right. Not only that, $60,000 could. Even if you're not buying a new home that you're going into, $60,000 could totally remodel that home. You could have a new kitchen and two new bathrooms for that, or a new floor going down or painting it, getting it all ready to go. That could be the difference in moving into something turnkey. And if you're not 19 and you're not full of energy, heck, you might be 30 and not full of energy and you just want to move in and it be done. Then you know you probably don't want to throw that many away.

Speaker 2:

Now. Of course you could wait it out the 10 years. So if you're 59, you're going to be 69. At that point You're going to be nearly 70 years old and your house will be worth more. But here's the other problem. So you were looking at a 500. Now you're probably looking at a 600. So it works in reverse. Yeah, so it's going to cost you more at that point. Now it might just be timing. Cost you more at that point? Now, it might just be timing.

Speaker 2:

But I can tell you what the major reasons for timing are. I mean, we know them, don't we? It's usually procrastination. But why wait why? You know well, we're not looking at the hidden costs of heating and cooling that big old house of living with all that crud around you, all that stuff that you just wish you you would unpack. You know, I just moved. I've got crud downstairs from a few months ago a bit of bit of a tumultuous year already and somebody had put one of the tubs with stuff in it in the garage and apparently that garage had mice and there's little mice poops and things in there and I just can't face it. And it's sitting down in my basement. I can't face it and it smells. It's disgusting, probably full of all types of terrible germs, probably full of germs that give you flesh eating bacteria or something it's gross.

Speaker 4:

Can you just take the whole thing into the trash thing? Probably you just take the whole thing into the trash thing Probably, just take the whole thing to the trash.

Speaker 2:

There's about 20 others I need to go through too, so don't think I don't understand this, but if you have to and this is not what I recommend if you have to move the crud with you and then do it when you're there, that's definitely not the best way to do it.

Speaker 4:

I am paid to have some crud moved. Yeah, I paid to have some crud moved. Yeah, yeah.

Speaker 2:

That's better than not moving. Sometimes you have to move and the problem is I'm talking to all the people who are sitting there and there's an awful lot of you oh, it's summer, it's hot. Yeah, we'll get around to it next year. Don't get around to it next year. When I show you I mean, you know, when we look at number, we'll look in Miami here because we were just helping Emily there for a second I can show you the number for sale inventory here it is, of the amount coming on the market. See if actually we've got a chart here. So it is doubled from 2022 to 2024 in Emily's zip code 33126. It's gone from. It's literally doubled, it's over doubled actually to now where we're about to go into a buyer's market.

Speaker 2:

That's scary, isn't it? We're right on the line of a buyer's market. I mean, it's scary if you're selling. It's not scary if you're buying. Obviously. No wonder people are waiting out, because you're always looking for trends in real estate. What is happening?

Speaker 2:

Days on market there's still relatively low inventory and days on market, by the way, guys don't mean a whole lot. Days on market here are about two months. Why is that important? Well, days on market, by the way, guys don't mean a whole lot. Days on market here are about two months. Why is that important? Well, days on market look at, you're going to list your home. How many days is it going to sit on the market?

Speaker 2:

But here's the problem. In a zip code there's all kinds of different houses. There are brand new houses that are priced well, that are going to sit for a very short period of time because most folks will choose the new houses first, even though you know I come out and see you and you guys are like my house has got way more character than those ticky tacky houses. I get it. And also you're sitting on a bigger lot. So as a buyer, you need to think about that, do you want? Often these older houses have a bigger lot. Often they're brick. A lot of people would say they're better built. Some of the current houses are built on vinyl siding, but especially if you're in Miami, then you're looking at different building codes now than you were in the 70s. So you've got that to take into consideration as well.

Speaker 2:

I used to live in Miami, so I know a little bit about the whole area on Miami Beach down there for a while.

Speaker 2:

So you know there's lots of considerations which a great agent will help talk you through. If you can give us a call on my work line, this is Rowena Patton, all-star Powerhouse, 828-333-4483, 828-333-4483. We've got people standing by 24 7. If you are thinking about buying in any area in the country, you can call in and I'll give you my, my pdf that's got all the questions for you for your particular area. So you know you'll have at least 12 questions of the specifics. This is particularly I was going to say it's particularly useful if you don't know the area.

Speaker 2:

But even if you live in the area, you might not have the sort of real estate format brain to look at all of the key factors. I'm sure you can do half of them, but maybe you know we can throw some more on there for you as well. So 828-333-4488. 83, we can help you with those questions when you're buying or when you're selling and what it looks like to do an in-depth strategy report for you. I've got to come up with some sexy name for that. I'll do that and we'll figure out what these reports are called for you because they really are very, very useful, and you may just say listen, I trust you. You know you've got all the numbers on there, so we're not going to worry about it, let's go, which is fine too. Do we have anybody else that's called in this morning, randy?

Speaker 4:

We've got Lisa from Chicago, oh fantastic.

Speaker 2:

Okay.

Speaker 4:

Hi Ro, this is Lisa from Chicago. I'm anxious about potential costly repairs and renovations that might come up after the inspection. Should we budget for unexpected expenses?

Speaker 2:

Okay, lisa, I can definitely help you with that one and I really understand. I wish I could just wave a wand and take the anxiety away. This is so common and it's why, back in 2007, I developed the certified pre-owned process. So if you're thinking about listing, or if you are currently listed, I want you to talk to your agent. I'd love to hear your stories about where this didn't work, because there's so many of those when you weren't CPO. What CPO is and you can pay for it yourself. It's not the cash offer program. We have that as well.

Speaker 2:

So when you're listing your house, I want you always to have an inspection. Most parts of the country. It's going to cost you up to about 500 bucks. That is one of the best investments you'll ever make. So people say, why would I do that? The buyers do the inspection. Well, you've got to think about how a normal real estate transaction works, or a traditional real estate transaction works. So we're going to have you on the market and if we looked at days on market around the country right now, of course that is absolutely ridiculous because of what I've just told you. It's it's block to block what kind of house you are, whether you're new, whether you're older, whether your house needs work, yada, yada, yada. That's what actually doing. Cpo is about to allow you to compete. So let's go for a sort of medium house, as it were, whatever that means, right? So you're a brick ranch and you're about 400,000. We go in, you pay for the inspection.

Speaker 2:

At this point, let's do it the traditional way. So we're going to put you on the market somewhere in the mountains or anywhere in the country, for that matter, and you're going to sit for I just did this yesterday, actually last night, at a listing appointment. You're going to sit for, let's say, 60 days, because we want you to have the long-term view. It might be 30 days, which will be great. Most of the days seem to be coming out about 45, but let's be conservative and set expectations. It's going to take 60 days. So we're starting July 1st, let's say so July, end of August. So September 1 is when you're going to go under contract. Most places in the country it's taking about six weeks from when you go under contract. So September, october, so that's mid-November. It's going to be chilly. We're going to be rolling towards Christmas. We're going to be a month from Christmas. Yeah, think about that. I really want you to wrap your heads around this. So you're a month from Christmas when you're closing. Isn't that wild, randy?

Speaker 4:

It'll be here before you know it, man, I know.

Speaker 2:

Well, the thing is, people don't think about that. They're like oh, I'm not ready to move, I don't want to move in the heat, I'm the worst for that, you know.

Speaker 4:

Christmas. Ah, who's thinking about that?

Speaker 2:

That's next. Yeah, yeah, yeah, but it's five months away. Yeah Well, let's take it back. Let's say it doesn't take you 60 days, let's say it takes you 30 days. A lot of you are thinking out there are out there right now with last year's or the year before mentality of oh, we're going to get multiple offers, it's going to be sold in a day, no worries at all. That's not the market in almost all of the country. I've just shown you that in Miami right now, in fact, the headlines you see are the top 10 markets that are imploding in terms of house prices. It's happening all over the country, and that isn't just the year or isn't whichever.

Speaker 2:

One of our old men gets in to run our country, it's not going to change overnight, it doesn't. You know, might it? It's possible, but, guys, it's been running this way since 1867 to 11 years. What goes up must come down, right? So most of us would violently agree that you know, know anything about economic cycles that that's how it's going to play out. So let's say it's only going to take you 30 days. The problem is, it could take you 90 days, right, it's going to be, it's going to be mid-October, so we're going to be running towards Halloween, when, when you're moving your house. When you're moving your house, so are things going to come in. So we're talking about the anxiety now of what that looks like when you've got your house listed and I don't know, getting worried about what might happen before it happens. And you know, the funny thing is this is Lisa from Chicago. She's anxious about potential costly repairs and renovations. That's why we do the inspection up front. Now people say, yeah, but I don't have the money to fix it. That's okay. We know what's going on and I know this sounds counter to what you've learned about selling a house for the last hundred years. It doesn't matter. This is a much better way to do it. I can prove this. I have a best-selling book on it.

Speaker 2:

Get the inspection done. What you're going to do is have your agent or, if you have a sell-by owner, share it yourself. You're going to share that inspection. Now you may have chosen to fix some of the items on there, so we're going to notate that. If you have an agent, we're going to notate that inspection for you and tell you what we've fixed so you can see what was there and what was fixed. Or we're going to pay about another $300 and get a new inspection that's clean. Or we're going to list out what was on the inspection and they can get their own inspection if they want to.

Speaker 2:

So there's a number of ways of doing that. But you don't have to fix anything. Or we can fix some of the, you know, little cosmetic things. You can say, hey, I've got a budget of $250 to fix things, now why is it important to do it? Then let's come back to Lisa.

Speaker 2:

So we're looking at Lisa's. We're going to say it's going to take 60 days. I just looked up her zip code in Chicago, where she's at. It's going to take 60 days on average. There is no average. Lisa's house might be absolutely rocking. It might be brand new. I'm guessing, because she's anxious about those repairs and renovations, that there might be a few things in there, like for all of us. Honestly, there's 50, over 50 items on an inspection report. I don't remember the last time I saw one with less than 50 items. It just is what it is, even on a new house, because they're going to find those little things. It's like a punch list, basically. And yes to Lisa's point, it can get costly, especially when you don't know about them. So now it's going to take 60 days, so September 1, so end of August, beginning of September, we are going to have a lovely contract for Lisa.

Speaker 2:

And then, let's say, it takes three weeks for the inspections to come back and then everybody to start negotiating, right? So sometimes it's four or five weeks because the buyers have to get some quotations on what that work would would cost to do. Now think about this for a minute. It's your house. Why is the buyer getting quotes? And don't you think those quotes will be higher Estimates will be higher than if we do them for you up front. That makes sense, right? So I can take the time now. So if I were in Chicago? But I've got an amazing partner in Chicago, so I can take the time now. So if I were in Chicago, but I've got an amazing partner in Chicago, so I can take the time now to go ahead and get those estimates. I can even get you listed, right? So I'm not holding you up there, but go ahead and get those estimates so that we can find the best one that's going to do the best job for the best price. That's not what's going to happen when the buyer's doing it, right.

Speaker 2:

So let's say you've got some roof repairs, which is a very common one, or another one is moisture in the basement or around your foundational walls, because maybe you need a French drain or maybe the gutters aren't. You know, maybe the gutters have been running water up against your walls or something like that, so the moisture is a big one. So the moisture issue can be digging, you know, digging a drain around the house, putting some rocks in and draining all the moisture away. That's a very simple way to do it. And then there's fixing the gutters. Both digging the drain and the gutters. You're probably at $6,000 to $10,000 right there. So if we get quotations on that or we bring a crew from the corner of the street, you know, usually when you still own the home you can use anybody you want. Your brother-in-law can come and do it again. Sometimes this differs state to state, so we'll find that out for you, depending on where you're at.

Speaker 2:

Um the roof repairs, you know. You know the roof is not even coming out for less than $2,000. So even minor repairs and flashing around chimneys or skylights or fans, you know to be correct to most codes. Now You're supposed to have the bathroom fans not venting into the attic space but venting out through the roof. It's a very common one to find there's another $2,000. Very common one to find there's another $2,000.

Speaker 2:

So you can see, we're very quickly at $15,000 to $20,000, which is the average amount asked for when your buyers do the inspection. Well, here's the magic, guys. Let's do $20,000, because that is the magic figure. I know you're saying right now, my house is perfect, I ain't giving anybody $20,000. When you're all the way down the road in September and you're getting your kids settled in the school or you're moving, or you I don't know you're going out of state or you're like, thank goodness it's done. I know this from experience, guys. I'm at over 3,500 home sales, 3,500 people that I've helped over the years to buy and sell houses, that you'll just go, whatever, we'll give them the 20,000. Well, let's go back and negotiate at 15, right? So that is a traditional real estate transaction. So now you're 15 in the hole, right?

Speaker 2:

If you do the inspection up front and you spend that 500,000, when that offer comes in from the buyers, we say, oh, and, by the way, before we go into contract, I'd like you to see the inspection which've had notated, or we've got a list of the items that we know. When we say, listen, we base the price of 400,000 on this list that we're giving you, so they look at the list. I can tell you in all my experience of doing this for many, many, many years, the buyer has never pulled out. At that stage people say, oh, yeah, but when people know there's something wrong, they won't go forward. It's the other way around. Our psychology is all messed up. Flip that. Because the buyer's going to say, wow, these guys are honest, these guys have fixed things, or these guys have gone to the trouble of doing their homework about their own house and they know what the issues are. So we're all going in eyes wide open and it sounds like they've already. Uh, you know, maybe they were going to list it for a higher price and they've already got the price at the right price point based on knowing what's wrong. I'm just ridiculous, guys.

Speaker 2:

We put a twenty thousand dollar car on the market with a, with a certified pre-owned program. That's where we do 156 point inspection. You know this is a $20,000 car, it's got a black book value and it offers a dealership warranty. We take a $500,000 home or a million dollar home or $250,000 home and we throw it on the market and hope for the best. It makes no sense. So if you're listed right now you're thinking about listing, get that inspection. 828-333-4483. Rowena Patton All Star Powerhouse brokered by EXP, go ahead.

Speaker 2:

If you're interested in the CPO process, I want you to look at cpoexpertscom. Expertscom cpo that stands for certified, pre-owned cpo, expertscom. You can find agents around the country that can do this for you and get you listed. The cash program is on there as well. So the difference is when lisa gets listed in july, she's got 60 days out. She's going to close in mid-November. However, in the scenario I've just given you, she's going to make about $15,000 more.

Speaker 2:

I guess, of course, this is all conjecture. This is all from my experience of what it looks like extra time going through the inspection or anything like that. I don't make any more money because you're doing this. I take the stress out of the process for you. It's way less stressful. So Lisa's going to make about $15,000 more and it's going to be a lot less stressful.

Speaker 2:

Oh, and the key point guys, with an old-fashioned listing, it's going to drop out about 33% of the time. In other words, we're going to go into contract contract. They're going to do their inspections, for whatever reason, usually, based on the inspections or the appraisal, over a third of the time they the buyers are going to pull out and then we're back to ground zero and we start all over again and you've got what's called a stigmatized listing, with people calling in and let's run with it. I don't must be something wrong with our house. It usually has downward pressure on the price, so your house is going to be worth less. Don't risk that. The dropout rate for CPO experts is 7%. We don't have a magic wand but, maya, we work in it. Your house sells faster. It sells for more money, way less stress, and remember you don't have to fix anything. It's not going to cost you anything. All right, let's scoot that down to the cash CPO offer, the third way of doing it. So we listed in July. We have our investor purchase it, so when they purchase it, you're going to get your money. Let's just look at the difference in timelines.

Speaker 2:

I just did this last night with some good friends of mine that chose the cash CPO route. They are relocating. It works perfectly. They're actually leaving in 14 days. They're off to Charleston. I'll do a whole show on them because I love them to death. I'm very sad they're leaving, but it's only four hours away, so they are going to and actually is at this price point, so we'll do it for them in this market and it's all the same. So I drew it out for them. Last night we might have been having a bevy or two sitting at Wild Wing Cafe, sitting right by the lake.

Speaker 4:

A bevy or two.

Speaker 2:

Just a little bevy, it was just one. I can only have one bevy these days. So they are looking at July 1st. We are going to put the offer in. That offer is going to close and that's the difference. We go straight to offer. There's no sign. There's no anything Right. Between then and now I'm going to get quotes on painting the interior and also doing some amendments on the deck and we're probably looking at about $5,000, something like that. But I'm going to get estimates now to get it all prepped. So on July 14th we're going to put the offer in. Now and it's at $400,000. I'm not going to say any more about where they are or who they are or anything else, because I'm not going to call them out right now. So $400,000, which is a fair list price, it's what I would have listed it at. That's what the offer is going to come back at. So we're going to go under contract at 400,000 and they are going to get 65% of that price. And it's step one. We're going to pay off their mortgage so they'll have no more mortgage payment. We're going to pay off their mortgage so they'll have no more mortgage payment. They can go ahead and move and pay their renting while they look for a place to buy down there. But it's cut that mortgage payment, which I believe is around 2000 a month, maybe 1800. Right, so no more mortgage payment. And even though they don't technically still own it, they are still in charge of what we're doing. There's an addendum that goes with the contract. So they've got their 65%, which is, by the way, a normal cash offer. But that isn't all they're getting.

Speaker 2:

Two-thirds of our sellers make more with this process than with an old-fashioned listing. They've got two doggies. They don't have to go through showings. They don't have to have a sign outside, they don't have to. They've got two doggies. They don't have to go through showings. They don't have to have a sign outside, they don't have to do any of that. So, um, you know it's, it's just escape, basically. So here's your offer. Um, here's your money. 65% of that mortgage is paid off. No more mortgage.

Speaker 2:

And then, um, the little magic mini me's get to work in the cash CPO program behind the scenes. We borrow the money from our funding partner, the funding partner buys the house and then, as quickly as we can, we're going to paint the deck, paint the interior. The doggies are gone, all the stuff is gone, it will look like a fresh new home. It looks beautiful now and it's lived in. The thing is, when other people come to see your house, it will look like a fresh new home. It looks beautiful now and it's lived in. You know the thing is, when other people come to see your house, you want them to imagine themselves in the house. You want to. You want it to look like it's freshly painted. You want it to look large and and see all that space. You don't want them to look at like oh honey, well, the deck needs a little bit of work.

Speaker 2:

You're in competition against other homes now, lots of other homes, because there's more and more and more coming on the market in almost everywhere in the country. We've got areas here in zip codes that have doubled in inventory since this time last year. In other words, the number of homes for sale is all about supply and demand. I know you've heard that before. The more homes that are out there, the more competition there is, so that pulls your prices down again when there's very, very small supply. That's why prices go up, because at the end of the day, some buyers have to move right, so they are going to drive prices up. Just like the sellers that have to move, they drive prices down for all of us. So now we've purchased the home, we're running around the little busy mini-me's, we do our HGTV on your home. That's what we're going to do. We're going to come in and we're going to do the HGTV magic on your home and then we're going to list it as quickly as possible. So I would imagine I'm going to be listed by July 31 or even sooner, in a program called Coming Soon. Coming Soon allows it to go on the multiple listing service so everybody can see it, get excited about it.

Speaker 2:

This house has views, by the way, has four bedrooms and it has an entire basement with a really good ceiling height that can be turned into whatever you want it turned into. It's like 1800 square feet, something like that. Down there I'm going to measure it Mass massive amount of space with an outdoor space where you could actually have it as an airbnb or a vrbo. For about another eighty thousand dollars you could turn it into an apartment and make some money off it. You could have it as your summer home and just keep the upstairs or keep the downstairs as somewhere to come.

Speaker 2:

Lots of possibilities with this one or you know, great family house with all those bedrooms and just great layout. The biggest decks it's got a deck all the way along the back side and a deck all the way along the front side. Decks everywhere for miles and um, over and over um, an acre of land, just beautiful, barely even gently sloping, with great views, and we're talking about four hundred thousand dollars. That's a great price. On that, as you know, randy's like how can I buy that? Ten minutes from downtown too, it's not out in the boonies. Yeah, it's going to be fantastic.

Speaker 2:

However, the the more I do to prep it because I am not the agent that just throws the sign out there in the lock box on the door the more money we're going to get for the house. So the more work I put in up front, the more money we're going to get for the house. So the more work I put in up front, the more money we're going to get for it. So we'll be able to list it for 425,000. And hopefully we'll spend about five or 10 because buyers don't want to do anything Right? So is there a program fee? Of course there's a program fee, but here's the deal we will now make a profit and the profit goes back to the sellers. So they get their second check minus the program fee for our funding partner. But I can make that program fee in almost every case. That's why two thirds of our sellers make more money than with an old fashioned listing.

Speaker 2:

Not only that, you're selling a house you can be proud of, where everything's done for you. You don't have to do anything, you don't have to have any showings, you don't have to take your doggies out. You don't have to do any of that, right? So how cool is that? You don't have to go through any of that whatsoever and, most likely, you're making more money. Now, what if the market really starts to get hit hard? Well, what do you think will compete better?

Speaker 2:

This home that I've taken and we're working on it right now we're going to sign up on, and we're already all signed up and we're ready to go. So now we've got a home, a resulting home. Remember, our sellers already have a big chunk of cash to go forward with and the mortgage is paid off. So we're cutting out that mortgage payment of $2,000. And remember, on our timeline, we were talking about November. So even at five months, that's $10,000. And remember on our timeline we were talking about November, so that even at five months, that's $10,000 in mortgage payments. So now we've got a house that's freshly painted, we're going to paint the deck, and it's going to be inspected, it's going to have an appraisal, it's going to have a floor plan from the appraisal. We've got all of that done and it's $425,000. Or we've got a home sitting on the market that needs the deck painting um, it's still got doggy smells in it and, um, it doesn't have a floor plan. Um, it doesn't have an appraisal.

Speaker 2:

Which house do you think is? So we're going to come in on the 400 I can tell you exactly how that works and we're going to accept an offer, finally at 380 probably, and then they're going to do inspections. I'm talking about a probably, and then they're going to do inspections. I'm talking about a few months down the line because prices are really slipping. So they're going to do inspections. They're going to find all kinds of things FHA or VA loan. We're going to have to do even more of those. They're going to ask for another 20,000 off. So now we're at 360. Or we've gotten 65% of 400 right now.

Speaker 2:

In 14 days actually 12 days, we always like to say 14 days just in case. And we've got a house listed at 425, $25,000 more. But it's squeaky, clean, smells good, everything's been done. I mean, it's obvious, right, which is going to compete better? People are looking at 12 houses now in that price point in that area Maybe not that have views. They may be looking at six. That's going to put this house at the top of the list. It's not rocket science, right, guys? All of us, I think, would violently agree with that, and most people would look at paying twenty five thousand dollars more to have everything done and all that headache gone, and our sellers haven't had to have showings or people coming in and out the house or picking the doggies up or anything else. Thank you for listening today, guys. It's always an honor to spend Saturday morning with you. See you on the radio next week.

Speaker 1:

This has been the Plain English Real Estate Show with Rowena Patton. Visit Rowena and post your questions at radioashvillecom or call her at 828-210-1648.

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