What's the Future of Real Estate Agents with the Rise of Technology

What's the Future of Real Estate Agents with the Rise of Technology

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foreign [Music] [Music] foreign [Music] [Music] you're listening to the real estate Radio Hour the show that brings you unfiltered stories and insight from the Twin Cities real estate world with your hosts Chris Rooney broker at Re Max preferred and Andy presky leader of the preferred home team at Re Max Advantage Plus whoa the van man coming to you from the parking lot somewhere far far away and you know Chris those of us that know you none of the shocks shocks any of us we we're prepared for you this is zoom meeting number three is that in this parking lot yeah oh that's cool what's the occasion Chris to be in a parking lot I'll give you one hint it's 7 A.M where I'm at Walmart not 8 A.M uh District Court oh you want to know a parking lot let me see um the courthouse come on he's not he's not in a you know hey Nick the hard part about joking with Chris is he doesn't listen there's a McDonald's there's a McDonald's close by his his skin is this thick what uh so you're down in Arizona I'm guessing I am I am uh I'm attending to some uh business down here and actually doing a little um coaching oh with our little uh correspondent Cody sherf nice big Cody he said he's got a lot of lingo that I'm trying to that I'm trying to understand and he's talking about dogs and barking and all this stuff and I'm trying to understand it and then he goes into we got to get prosky down here he wants proski so he says he's finding so many deals one of the things I was talking about is different ways to kind of you know get get clients on how you you get them and uh one was I mean obviously finding a deal there's a lot of people out there that you know he calls you you've got a bunch of people that could get a deal so if you have a deal you're you're in control and so he starts getting on the phone he Narrows down this search from 68 down to 68 different properties oh wow as of as of yesterday we're going out looking on Friday as of yesterday he's down to Now 23 left he's called every single one of those people and uh it's just it's hilarious so there's some there's some hints right here if you if you really look at the recipes using ambition he's a good Hunter and and then he's not afraid to work and and I'll tell you I I would invest in a kid like that because that that is a you know what he's not a kid he's an adult but I mean you know what I'm saying he's younger enough so he's a kid but um you know these people make it in this industry for sure yeah yeah is it he's a good kid it's it's funny how you um you know you because every agent is different I think that's the real interesting thing there's no real recipe or to be able to be a real good Agent you know you got to kind of take what you do good and then focus on it and I think a lot of times um agents get caught up in this well I'm supposed to do this and I'm supposed to do that and I should do this but you've got to do what you're good at because number one you'll do it at number two it's probably what you're going to be best at so that's great yeah that uh that you know when you when you come down to you know thinking about I would say the number one you know when you meet you know anybody that's new to this industry and and they're they're um you're like wow they're having success right away it's because they know how to hunt and and they know how to find the deals and make things happen it's the people that don't know how to make things happen that follow those that do and and it's like that is just I don't know good for him that's awesome I'm gonna use my Andy uh prosky analogy here that uh it's kind of like the backup quarterback I mean the backup quarterback has got to know what the heck they're doing you can sit there and wait for your chance and wait for your chance but if you don't know what you're doing once you get in there you're not going to take advantage of your chance and I mean I don't need to talk to I mean uh Cody from day one that you gotta know what you're talking about you have to know the real estate part and and I'll be glad to report that's what he's doing he's he's learning you know the contracts and he knows what's going on and taking these opportunities and making phone calls to different agents I mean I do it every week I'm always talking to different agents and I'm telling you I've been doing it for well 32 years now and I'm always learning something different right it's something new and it's just a it's just really good to get out there and just just talk that kind of keeps you in the game as well so yeah is that you that's me baby in the van with the kids watching just hey what's wrong with Dad hey that's uh that's prospecting the baseball team right there yeah because you know back in the day yeah back of the day that's funny so what do you so you're down there just uh kind of helping out with Mom and Dad and doing some other stuff looking at properties and and doing some other stuff or what are you up to yeah and just kind of uh kind of reloading I guess and uh figured out uh lots of fun stuff it just kind of it's It's good to just be able to you know not have to keep going to appointments and I'll tell you what the whole covid world uh which I hated absolutely hated but there's some good things that came of it and it is things like this I mean I could do all my work from here if if I have to I mean I can't go and look at that house but I could have someone else be showing it and I can be on FaceTime and be doing the same exact thing so for sure and given my opinion so it's working out good but yeah I wanna I obviously my dad just passed and so we're trying to get their Affairs settled here in Arizona as well so well for sure that that donor to seven and did I yeah I don't know I gotta be honest with you I I'm over equipped with equipment for snow I got three snow blowers um I've got two backpack blowers and one of my new backpack boards I just got it um it's actually a little early Christmas present it's the new steel 800 and it has like the pull shirt from your hand so you can be talking to someone and shut it off and then literally start it up without taking it off your back is it a blower yeah oh yeah oh yeah so you use it for leaves and stuff um that and snow oh wow I found that you know with with a uh I have a stamp I have a lot of stuff all over your face that's it yep I have a lot of stamps that's exact model that I have no actually like you see the leaves like that right there it just throws it's so powerful it's unreal and you know um but anyway so I I thought it'd be nice you know we've got uh my my uh son's girlfriend is here and she was running into to work this morning even though it's snowy and treacherous and I said oh let me go out there and I'll blow off your car and I'm like totally I can see the lights turning on all around the cul-de-sac shut up you love your toys I remember the one time when you took uh was it a tractor or a bobcat where oh no it was a huge tractor cleaning up a property because they had gotten so far behind and you came in and you basically plowed the property manual labor or tangible projects where you know move this from here to there or mow that or clean the driveway I love that because they're easy to comprehend it just clears your mind when you're doing it and then when you're done you have a sense of accomplishment now I crave it and it's like I said as I get older I'm going to be the opposite of most people I think most people when they're young they do the Landscaping you know career Excavating and then as they get older they get into real estate I'm gonna be the guy that's been in real estate this whole career that wanders into like Excavating or Landscaping well you started in that what's that you started in um Landscaping really and lighting yeah yeah right when I was back in high school in college I I used to love that man yeah yeah I'm not I don't I don't like all that kind of work although I heard my whole my home is getting um spray foam insulated I'm so excited for that that is nice yeah well you know because it's an older home it was built in 1979 and so a lot of that's two by four Construction and so by doing spray foam I mean not only does it make the the unit stronger but it's um you know much better for insulation and well it'll take you beyond Even in our you know like the uh the um uh two by six construction um they're thicker walls more air chamber you know right to hold that um barrier for energy to transfer through but when you foam it it can't transfer so it's like the R value just goes through the roof plus it's quieter which I think a lot of people learn to appreciate after they own a house that's been spray foam the siding doesn't rattle in the wind you know the you just don't hear it because it's you know it's just a solid wall you know Andy um a metal seem roof a standing metal seam rough yeah um that uh was I'm putting that on my house and so as you probably know they have to they cut the pieces at the factory exactly for what they are and then they deliver them like that and then it's kind of like a puzzle they put together so my my roof got delivered uh last week they go to start putting it on and uh you know the the people who sold me the roof and the roofers are obviously you know not the same um people but uh they start putting it on and it's and it's black and I want I want light gray the manufacturer screwed up and made it Black versus light gray so they had to take that whole roof off away and now bring the new one in I mean imagine yeah so so what kind of a delay did that cause you guys it's only gonna be a week which is crazy because it took like three weeks for them to cut it the first time and now because of the mistake they just cut it again quick and now it's now but the storm was supposed to be delivered yesterday and of course this little storm delayed it so now we're not getting it until next week so all right what are we doing what's next okay so it's been really cool maybe you guys have been seeing it is the AI generated photos and it's taken over like Instagram social media you put your face in there and then it it puts out like artistic work as you as like a clown as a a bartender like a bunch of different things sure I want to hear your guys's thoughts on um what's gonna happen with it with real estate so I'm gonna play you a video and then we're gonna get in to uh another video that explains how that's gonna affect real estate so one second [Music] thank you so basically you're just putting in like a code word and then it does all this for you the AI right now here's a video that they're saying how it's going to affect that's craziness I might look good again Andy [Music] you see how this looks perfect enter VR mode [Music] finally resell in Vancouver a one bedroom that's available right now there are 543 listings available in this area let's check out this one [Music] [Music] Hello Olivia welcome to the Hooper hello this loft is just over a thousand square feet it has two bathrooms it was completely renovated in 2017. check it out oh I love this kitchen hmm oh my art looks perfect there [Music] your face says everything Chris oh did we just get replaced no I'll tell you what though whoever knows how to do that I will hire you okay that's the sad thing is I was thinking the same thing I go and for house to put together nobody will pay it and it'll die just like every other technology that's out there that nobody wants to pay for or it it's embraced it takes off and the real estate National Association of Realtors owns that technology and I don't know supports us for once and uh throws it back into the uh for the consumer right the better the consumer experience I mean that thing was crazy it's cool you can do that I mean everything you do is um you know it was interesting on that I'm skipping because I remember you talking about that Andy where um they were using that technology and I think it was matterport that would go around and identify all of the products in there and that's what that was doing it was uh it was checking those out then you could pull up the product and I wonder if she was putting like pictures of her own stuff and then added it to that place who knows if that's true or not but I mean you know I would have kept my apartment building if I would have had that I mean that's a showing that you don't even have to go up and show it because that was always I'll tell you there's nothing worse than setting up appointments to show apartment uh units and people wouldn't show up I mean it was 70 of the time they wouldn't show up right right no and I think that there's okay so there's some cool parts to it and then there's some pieces that are gonna be tough to fill for example the the the uh buyer that was going through that Journey um talking about oh I'm gonna move my furniture and my photos well guess what somebody's got to upload that stuff onto her profile so does she take the pictures does she enter the sizes for each one so that data has to be captured somehow now if you do a matterport tour of your own house and it can absorb that information and then turn that into a digital you know look alike throw it proportionately into the new place that'd be cool um and that is that would be some impressive technology but again you know you'd have to invest into yourself as a buyer I think that would also help eliminate and and uh you know some of the the middlemen if you will but unfortunately I think what it could do too is it could eliminate the the buyer's agents because it what would happen is if you do all the touring you do all the whatever and then there's like that digital uh version of the listing agent sitting there saying hey welcome to the Hooper and uh here's what we can do let us know when you want to write your offer I'll tell you what Andy for the last three years I've tried to figure out a way to incorporate my videos of my houses with exactly what that technology has and uh and it's it's impossible to get anyone to do it what I was trying to do is I identify like um orientate people so it's it's basically you capture them with kind of the cool things in that house and then you orientate them so where where they're located so let's just say if it's on a lake you know how closer you to the marina is there a park is there a you know a launch you know a beach whatever that's around that what restaurants and try to identify that and then show them the house but you know okay you get to a point of where okay lazy pants get off your computer and go do a showing and and I get it if you're if you're from another but here's here's where you can misrepresent reality and you get sued over it let's say that well the parks never had green grass and then that and that walk through that green grass and you know it's sort of sunny day it's never been sunny in Portland in three years or what you know I'm saying it's like that so that false sense of reality it's gonna it it's gonna have to marry a lot of realities together because with as happy as everybody is to say that's it false information or like on the MLS you can't manipulate MLS photos at all so that would have to all be live right what were you against MLS going on a computer too I was gonna say this what is the difference between what we just showed here in the internet you know 20 years ago for realtors I'm just saying it's got to be accurate that's all I'm not I'm not complaining I'm just saying it has to be accurate because what will happen is is that if you don't have like I mean who's kidding who there used to be agents in the past that would show the backyard and they'd they'd Photoshop out the power lines and then also you get them to go there's power lines here so they literally you can get fined for that now and that's all I'm saying is it so you you there's a lot of um consumer wants and then there's reality of the real estate industry and their regulations that'll have to marry together well I got something for you guys to to save the day AI is not going to take your job um here's a little video that's gonna give you guys we're pretty replaceable we uh the broker owner and the agent are still Center to the real estate transaction period that's for the personal relationship is and the thing is fascinating is even though we've got all this technology and Google anything and everybody should be able to do whatever they want with technology it is a much more complex process of buying and selling a property than it was 50 years ago when I watched the changes in the industry over even the last five years and so on the real estate agent has become even more important than they ever were before that's the founder and leader of Re Max right there do you believe him I do actually because I've watched these technology companies come and go because you know if you really think about it that technology that you just looked at or that we just watched right is designed to Allure the buyer in Make Them Fall in Love faster make them you know um because think about what if you had a crappy crap hole I mean you know it's like that it's gross and you're in the middle of a crime-ridden area and there's a carjacking happening on the you're not going to use that technology you know what I mean so is it only for the luxury Market is it only for the fancy brand new um you know I think Andy I think on this the reason that Realtors I don't think will ever go away I think there could be a lot of them that go away but I don't think they'll totally be extinct the reason being is because real estate is not black and white there's a lot of Gray and when you use the Internet it's got to be one or the other kind of thing and sometimes it's not and so you have to kind of take that into there's so many different things that can happen and I even think with that whole AI thing I think it might even be more important that a realtor is involved to be able to you know decipher what information goes out because I'll tell you what a lot of times what we try to do is we try to you know look at the advantages of that home and then make the the challenges justify the challenges or don't really show those challenges you know and that whole AI thing is going to be able to say hey there's a there's a great um uh uh plant right down the street you know and it grows you know and you're gonna see it and that right down the street might be seven miles away and you'd never even see it but you if you see that pot plant oh my God it's gone I'm not good ever I'm not gonna live there or I'm gonna live foreign I think that when you take a look at the technologies that are available and um if it enhances the process and makes the sale more comfortable for someone to make a decision I'm all for it as soon as it influences the decision then it has to be accurate so when you influence a decision like you're saying oh my God this is a limited look at this View and then you get there and the view is not the same so it's misrepresenting reality then then I have a problem with it but it's like hey if it represents a truth and I'm a listening agent and that's the new tool and let's say I spend five thousand dollars per listing to do that well guess what you're you're paying for it I mean it's it's not like it's free I mean so the the now it costs you more to list your house but maybe you don't have to pay out a buyer commission so maybe it's a savings but I think this is where social media comes in because what we have within our MLS and what we have to do and how we have to represent on MLS is not misrepresent anything on social media and collateral materials we can fluff that up so we might I put in a nice little Sunset green up the grass make the water look perfectly blue remove all the weeds from the lake you know you can do that and that's where social media kind of comes in and the whole idea is is to try to get um I think social media to me is mainly probably 75 to 80 percent trying to get clients 20 trying to sell a house you know and so it's like how can I manipulate the audience to to want me to like me you know so I sell them something versus selling my home that I have on the internet and I I always talk about you know everyone says well do you do you have it are you going to put it on Tick Tock and are you going to put it on this and put it on that and I say you know what what's the most important thing our MLS system is is so strong it goes out to everything it syndicates to everything it's what you put on that MLS system that makes the difference and that's what people don't realize they act like it's no big deal hey just put in the facts it's everything your first impression is on the internet that's your first impression of that home it's not walking in where it used to be hey that front door was the most important no it's not it's what you present out there on the MLS because that's what gets syndicated everywhere and that's what people see true so there I didn't know you could get so inspired from a parking lot I should have been the founder of Re Max yeah yeah you know the one thing they didn't show in that in that video was his uh his dog that he has um that he brings everywhere with him and it's it's trained it's a health and and security animal at the same time it's a gigantic looks like a German Shepherd but it's a lot darker and fluffier and uh it can he has something with a like a stroke or whatever that he had in the past and it can sense when things are happening with him and this dog follows him everywhere it's Sony so he'll go to like the Re Max big festival and and he sits down and and everybody's just oohing and eyeing over the dog and the dog as he sits down he watches him sit down and he'll go and sit behind his chair and sit there it's really it's unbelievable yeah it is something else okay we had a question there Co-op board purposely delayed the sale of my unit to cash in on the 2023 new three percent flip tax what can I do number one associations co-ops you're part of a board they make your decision and when you purchased it you have to live with those decisions that that they're making um you know obviously I mean if they're doing something that's detrimental to the owners that's probably going to affect them uh later on but they can't restrict the sale well it said they're delay in the sale of my unit to cash a co-op co-op's a whole different game and I don't know much if there's any restrictions on sales then there'd have to be compensation for injuring people for helping them make a bat like a three percent sales tax and it's a 600 000 so now it costs them 18 000 more I don't I just I have a hard time believing that they have the authority to do that but I'm not I'm not disagreeing with it I just think it seems odd that they could control a sale yeah I'm I mean I don't know what the three percent flip tax is either so yeah this might be from somewhere um which are pretty hefty right now I mean they're but it's about buying like a unit in a nice place and then you know trying to flip it right away to get uh more values they're gonna attack that it happens all the time overseas if you buy a place in a hot uh spot they don't want you to sell it for a year or so because they're the property value is going so crazy there's a lot of Deeds that that restrict that as well I mean that say you can't um sell it in a certain amount of time so yeah if you bought it and you knew about that up front that they are going to make you hold it for 12 months or what which I can't believe they would but yeah do you remember um oh gosh what's it called it's right where McCormick and Schmick's was um on the top of that um oh my gosh that unit's called well anyways those people when they purchase those units they they could not sell them for a year they had to own it for a year before they were they were allowed to be able to sell it and I think that was you know prices were were kind of going up pretty fast but they didn't want um the units that were purchased to compete against the new construction units so that's why they made them wait um oh my God what is that place called oh I don't remember it's gonna bother me it's right now right um the uh although it'll come it'll come to me as we go here and Google it all right well while we wait for that we'll go into some social media reacts and be brought to you by Andy presky Preferred Home Team yeah yeah well they said the cat Andy prasky Re Max Advantage Plus Andy at praskey.com if you want to email us here's the thing 28 two years in the business over 1400 sales I'd like to help you with your real estate needs if that's buying if that's selling it that's building whatever it is give us a call send us an email let's get you started on your real estate Journey I'd like to help you on the way uh lots of experience here and I would like to put it to work for you Andy prasky Re Max Advantage Plus thanks for listening to the show [Music] all right Chris I know what it is yeah did you see my my little comments no I didn't read those no I figured it out you inspired me your commercial inspired me yeah the Westin Galleria yeah yeah the Westin Gallery out yep exactly and not so yeah so there is um there's situations like that but you know a lot of these questions there it is the black and white there's a lot of gray involved and so um you got to have you just sometimes you just need more information to be able to kind of answer these questions so amen [Music] [Applause] foreign see to me that's I would be like that person's Super Creative I think they've got to be able to do something on my house now I want to make sure to see some how they Market houses too because maybe they're just they know how to Market other things other than houses but that was fun if they're looking for another job they should become remodelers I think you're going to see that boom the next couple years what's the reality of this Andy what those Realtors need another job I think that's a real real reality I mean sales have gone plummeted you know well you know I think that you if you really look at it Chris I mean a lot of people that are in real estate when they at least a majority of the Smart Ones right they dive in and they have a significant other whatever that means and they have somebody that can support that new adventure but how long can they support it is the question right so it's like can they make it six months can they make it a year well well if you interestingly ask that question Chris so let me let me throw some stats at you so I just read this on Nar um they were talking about the amount of listings so in this and this year 2022 we sold 5.8 million listings as what

they're anticipating by the end of the year okay nationally um now you look at 2021 we sold 6.8 million so everybody that's in the business now is feeling like well geez it's down you know 10 or 15 percent and on paper and we can feel it well here's the sad reality they're also projecting in 2023 that we're going to go to 5.1 million which is the lowest volume of sales since 2012. doesn't mean they're not going to sell and everybody's still anticipating you know across the board on values everything the the average would be 0.04 appreciation supply and demand is still going to be the the shortage is going to be the key that keeps the values High inflation will also keep the values high and and there's just going to be a lack of of uh houses for sale as as rates drop and then everybody again across I I love these numbers across the board there's a thing called the 10-year treasury rate and they say that the average gap between mortgage rates and the 10-year treasury rate is averaged historically 1.7 percent okay right now we're at 2.9 which means that

when you take where we're at on mortgage rates right now there's too big of a gap mortgage rates should be at five and a quarter to five and a half but they're putting a yield on it which is unprecedented you know I mean it's like it's the highest get we had more in one year we had just I don't know if you knew this we lived we just lived through history this was the first year in recording mortgage rates it went up as fast it was doubled in six months mortgage rate said that's never happened before in the 50 plus years of recording mortgage rates and we also had the fastest rise in rates proportionately ever in the history of tracking mortgages think about that for a second no wonder the market froze over my God they moved that stuff so fast and so aggressively and then all the lenders the mortgage companies or whatever they know you're going to refinance so they got these huge yields on these loans because they know hey if we don't make money on this loan now we're going to lose money and they got to keep alive so they you know it's it's gonna be an interesting year so saying that we're going to go down another 10 in volume is is probably real accurate and and those that are on the bottom trying to survive off one or two deals are probably gonna you know I have to find another hobby well I don't know if I don't I think the one or two deal people will stick around because they've had to have another job the whole time but it's the people that were doing the 15 to 20 that are now going to do seven to ten they're the ones that are in trouble and they're the ones that are gonna need to go get a job that because they were probably supporting their family um with those amount of sales the reality is is it's hit mortgage it's hit title it's going to hit the agents next and I I totally agree with you on um the market there's just not enough houses that are going to be on the market and that's what's saving us because and the reason is is because of those interest rates that they got so anyone who has a mortgage right now you know is down they have a three percent loan and they're like well let's just hang out here we'll stay here it's going to be low I can use my other money to be able to pay for groceries now because they cost a crapload of money so just a lot of houses won't come on the market thus that keeps it down so the less buyers will be able to fend on the less houses which won't um decrease the market so so Chris that being said right now there's so many people that are out there saying well I'm waiting for the deals to come back I'm waiting for the foreclosures and I I so I dug into that too right so we are in the second quarter in a row of mortgage delinquency rates falling to the lowest level since 1979. there are people that are in default so in 2022 nationally we had 88 000 foreclosures across the country so far okay what do you think the number was in 2009 so this year was 88 000. what do you think the number of foreclosures was in 2009 do you have a guess um a million we were halfway so in 2009 we had two million foreclosures in one year we're at 88 000 right now which is below the the natural saturation rate of people that just die and they forget that it's an estate and it gets foreclosed on there and you got to remember like there's about one percent of the market that just properties get abandoned for for health reasons or what jail or whatever right I mean so it's like that does happen so what's interesting to me is like these people say well we'll wait for the foreclosures they're not coming and and reality is is that most people have enough equity in their properties where they're safe where if they do get into a financial pinch they can probably refi cash out refi survive for a while in that house and survive you know until they figure out where the economy is going but I still think you know as as the um inflation eases rates will come down with it so if inflation goes up rates go up right so it's kind of a unfortunately if we see that easing on on on the inflation I think you'll see mortgage rates get softer which will stimulate the economy bring more buyers back I think we have the potential to have a really good um end of spring early summer next year but for a couple months I think people are going to get a little nervous that's just me you didn't ask for a projector well I mean obviously you're you've studied it and and you know it it's not like you're just talking about nothing you dissected the numbers you take in history I mean that's what we can all learn from history I mean when they're ripping down statues and stuff like that I mean you you can't forget about what happened before because it usually comes around again and so you know now we know how to deal with it when we get to these points and I mean you just hit you hit on it perfectly I think so thank you believe it or not the legendary Michael Jordan is having trouble selling his house and we're guessing he's taking it personally it be personal with me MJ lived in this 56 000 square foot seven acre compound for 19 years before deciding to leave it's now been on the market since 2012. MJ is even promising the buyer of the house to receive every edition of Air Jordans in his or her size but nothing's worked so what's the deal well the new owner has got to be someone who loves the number 23. the price on the house has dropped

several times and is now going for 14 million eight hundred fifty five thousand why such a specific price well all those numbers add up to 23 Jordan's jersey number the house features a tennis court an infinity pool a putting green and a full basketball court it has nine bedrooms and 19 bathrooms there's also a cigar room with plenty of card tables where we're guessing Jordan played some of his Infamous high-stakes poker games the question is if you had the money and the game would you buy it foreign I'd buy it I'd buy it I told you I didn't I tell you a couple months ago I showed Randy Moss's little house yeah and basically the same kind of setup where it has the big indoor like pools and the indoor gymnasiums and to give a tunnel to that was there a tunnel kind of it was it was like a traditional house and then he put on about a four million dollar addition on the back where he built the hotel and amusement Center and uh so there was kind of a hallway to it yeah yeah that's kind of fun yeah I don't I wonder what Jordan's house started out at I mean 23 million you'd be yeah you'd be I'd be surprised that uh I mean there's got to be a reason you know that doesn't sell a lot of times with those big houses you know there's so much upkeep that needs to happen you know that it's a strange for the staff it's you know another 400 Grand a year to just pay the taxes and the upkeep and and people are like I don't want to pay 800 grand for somebody's old house yeah exactly what's happening yeah and that is the thing when you start doing those the big big houses it becomes a maintenance thing um I had a good client of mine tell me one time his dad told him he owns a lot of real estate and he he pays cash for his real estate and so he's he's done very well over the years he's got cash but he's like you know my dad always told me it's the upkeep of the taxes that'll get you you know not if you don't even have payments and I know like his real estate was like 480 000 in property tax alone on his properties and that's owing zero so it's crazy then that uh I used to joke and I said to my mother-in-law all the time I say all she does is mows grass and pays taxes because she's got like five different spots around you know and it's like from Lake places to places in Florida to Farms to you know and it's like it is if you're gonna do all the work yourself my God it's a full-time job it's crazy I think the luxury luxury homes too when people are building them they want kind of the latest and greatest they want what they want and then all sudden eight years when they turn around to sell it that's not the latest and greatest anymore and now all sudden well I'm trying to capture the money because of all the latest and greatest I put in it and other people are saying well I'm gonna rip all your latest and greatest out and add the latest and greatest now and I got to get a real good deal to be able to do it so looking at you know the the big big big upper market and thinking that hey I'm going to build this house and make a lot of money that's just not it's just not the case it's just not the case I can't tell you how many times and I learned it from you because you deal more high-end than I do and I'm like I have a lot of customers that go million plus but you've had the big big boys right and yes and so the when you get into that bracket it literally becomes a you're buying what you want for what you want it for don't expect the return on investment don't expect to make a landfall of money unless it has a big piece of land or something with it when you're buying luxury luxury like like a Michael Jordan property um unless you can pick it up for 2 million hold it for a couple years and make it a profitable VRBO or whatever it is and then often you can sell it make a couple million on it but you're not going to buy it like he probably put 30 40 million into that house and then also at the end of the day he's trying to sell for 15 is giving it away and at the point of where it's to the point of what if I can't sell for this I don't want to sell it you know I'll just I'll just keep holding it he should turn it into a Michael Jordan Museum you make a crap ton of money hey Maya my buddy did a lot of the um he's done he does high-end video you know systems and if I remember right that was like a 2.6 million dollar audio video uh surveillance system in that house and I'm talking back in the day it was top of the line well now it's all got to be replaced I'm sure but back in the day he was they were down there for months wiring that house and I remember he was he you know they were they uh I don't get him in trouble but they were signed a confidentiality agreements but the inner circle of his friendship people knew what he was doing and they were like this is so cool but then um but it's now I mean that was what 28 years ago or whatever it was and uh nowadays you look at that and you're like it's all garbage it's got to be replaced and yeah you got to get an investor in there tell Jordan he's got to leave a bunch of his stuff there at least for a while then you have parties there you know you you rent it out I mean that could be super cool but it's probably the zoning pencil they get they could have wedding you know they could have you could have events there you could be at the Michael Jordan mansion and it's you know it's 50 000 to rent the facility and there's people that are dumb enough to do that yeah you just got to figure out the zoning you know yeah yeah thank you foreign [Music] that looks fun there was a house in New Orleans oh sorry they uh flips that looks like a flip to me a flip I think what's real important you look at a house that was built in 1910 like that you have to really kind of stay with that era I mean you can update that inside but you can't go too far too crazy so you're not putting you know 20 22 in you're you're trying to you know create that that old time classic traditional uh feel but you do not screw up that outside I'm telling you well you know Chris don't you think like that that era they had like things like formal dining and Butler pantries and all that fancy stuff but then you go into the kitchen and it's boring and it's like that's where you do the work that's kind of like the garage right and and so those houses a lot of effort can be put into kitchen and bathroom and adding another bathroom for example a lot of times the bathrooms would be upstairs and there'd be no other bathroom in the house and so you'd have add one to the main level maybe throw another one down in the gringy basement but you know we've talked about that too where people put New Foundations underneath those houses they'll Jack them up they put a new Foundation they spend 60 thousand or whatever it is and now they have a nine foot basement and they can actually do full-size rooms down there movie theaters offices bedrooms whatever and uh yeah you can have a lot of fun with those houses God no very true that's uh and they're so fun I love the old houses I had my last rental property that I sold it was an old mansion 18 built in 1875 and it was so cool I I would have I mean I wouldn't live down there now but at one time I was thinking gosh when I get older like now um that I would redo that thing and I'd have the coolest place down there and um you know it's like a lot of people what Minneapolis is kind of just I think Minneapolis has taken about a 10-year break you know it'll come back it'll be vibrant as well again and uh but you know people are just a little nervous right now about it so yeah I agree that's fair well you got to know that the Heart of the City downtown if that isn't going to prosper and it's going to get gross people don't want to build around downtown anymore they're you know what I mean and that's those Pockets where all the thriving successful business owners um or you know aristocat whatever you want to call them that live socialites that were close to the city because they wanted to be near the entertainment the food the you know all that their Office Buildings um and if they're not down there anymore and their their office is not Eagan they're not they why would you care about being right in the cool restaurants and everything are closing down or not even open at night I mean it's crazy yeah well you know it's not it's kind of hard to enjoy your your steak when you got a gun in your face close it on a home later this month and locked in the rain at seven and an eighth how can I get a lower rate before closing you can stiff your lender and go to the new lender and lock in that's right please do not do that to any of our future sponsors um I mean I mean other than other than doing that it's just you know there's a there's a lot of people doing right now as they're doing relocks options it's really quite interesting now just uh I Got A lender got a hold of me and uh from a bank and they're doing locks for 360 days so you can lock in at 360 days with the construction loan and a set thing and then last 30 days you can re-lock there's a relock option that doesn't cost you any money yeah and flip to a 30-year fixed yep no but the thing you have to the thing you have to do is you have to pay three quarter of a point up front on your loan amount and then it gets credited back to you at closing but that's for them to guarantee that they're going to end up getting that loan well in a lot a lot of Builders I'm working with right now are offering five and a half percent and they're they're doing it where they build obviously cost the Builder about three percent to do it um you know and sometimes they do five and a half or whatever but they're still doing some kind of a you know a buy down for the payment to make it still attainable for people because the price most people don't live in the price they live in the payment so hence that being the you know we advertise the payment um and I mean that's the only reason why people were buying these seven and eight hundred thousand dollar houses you know I mean they were putting down a decent down payment because they sold their house for more than they thought they ever could and then they they could get a payment that was affordable and and that's why I keep selling you I think there's a lot of people that unless they hold those properties as Investments I don't know if they'll be able to man when you're used to a hot tub being 101 degrees and you jump out of that hot tub into the pond or the pool and the pool 70 and it feels freezing well it's gonna be the same thing payment shock for a lot of people when they move from having an interest rate of three percent to seven and they go oh my God what do you mean my payment's four thousand or forty five hundred a month and that's a kind of range you get into yes you do so are you gonna go in and get some fresh rolls Chris at the place behind you is it are you at a pastry place I would there is a bakery it's it's called Albertsons that's where I'm at oh yeah Albertsons Andy I'm I'm being one with the Earth here okay yeah I got I sent Nick a video yesterday to prove that I was one with the Earth and I told him to play it on here so you could see how physical work I do but he won't he won't do it so I guess we got to do this other stuff what what kind of physical I'm just curious and sorry I'm sure all the other listeners what kind of what kind of physical work were you doing I did that great thing that everyone talks about and I've never understood I call it walking but a lot of people call it hiking and so I went hiking okay yeah how tight of a loop did you go on and I have to thank this homeless guy that was sitting by my truck because I ended up walking that same path four times because I was just waiting for him to leave then finally I'm like you know what I can't walk anymore I'm going for it and I walked right up into my um oh my gosh I got to show you this too look what I have in my there's my walking stick oh yeah I got a walking stick that's what you do when you hike and fight off rattle stakes and stuff are you in a pickup truck yes I got a pickup truck just because I want to move some stuff out of my parents place with gas power it's a it's a Dodge uh RAM Laramie nice it is pretty just remember Chris when the little thing gets towards the E that means you have to stop at a gas station and get gas I've been looking for plugins I like that Tesla yeah I like that idea all right what are we supposed okay oh here you go Andy back it out of a new construction home close it in the next one to two months you've got 20 000 earnest money or maybe is that a construction deposit for a house of 500k the house is supposed to be closing in the next 30 to 60 days give the overall Market situation and layoff in my company I want to play it safe and back out I still have my job but I'm not sure how safe it will be going forward I already I already live uh live in my primary house would there be any legal implication if I packed out of my contract by foregoing my earnest money yes there's there's liability you signed a contract to purchase a house and uh if you walk out of it and I don't know when that financing date would have ended as well but um I think your earnest money is probably certainly uh gone and then you just gotta hope the heck that Builder lets you escape or you got to figure out a way in which to maybe get fired from your job but even if you do if you have your financing thing all done I mean you've committed um in which to do it but I mean obviously if you can't qualify then probably just keep your earnest money but yeah it really depends on how the contract's written for sure I mean I think that you have a situation there where he's getting cold feet but you know when you when you order a house it does take it's like ordering a deep dish pizza right it takes 45 minutes it doesn't you're not going to have your pizza delivered in 20 minutes so hey all right so having that uh that uh I gotta meet that woman someday um the so so the idea there is is that you're you're making an investment that's going to be a long-term hold you shouldn't be making that investment if you don't you know I mean things change I get it but understand it's your responsibility you've committed to buying a house and you've actually put that Builder In Harm's Way um by choice that Builder had to put more than 20 into it they probably have all of their Equity their profit their whatever else in there and then they're gonna get stuck with the house get stuck with the payments get whatever so in the old days Builders would just say oh it's too bad it didn't work out uh here's your money back we'll just sell it to somebody else for twenty thousand more than you had it under contract for today I think there's a lot of builders that are in in deep situations where they're not going to give you any money back and they're going to fight to keep it and it depends on how you presented it to the Builder were you completely non-contention or were you contingent right I mean if you had Financial contingencies that's different than if you did not have any like I don't need anything to perform I can perform no matter what well then you may have I've never seen at least you know I've seen Custom Custom Builders Sue consumers I've never seen like a big National Builder Sue anybody but they could super performance yeah it won't happen but they could yeah I mean Builders are I I mean and they should they should be able to you guys agreed to something you know I I would try to figure out everything else you possibly could to be able to uh get that taken care of and uh done before uh you go that route so well you know it's just like anything else I mean if you're ordering a new car and the new car comes and you don't like the economy that when the car gets delivered you don't want to pick up the car well that's your choice but I mean it's like it it that's not as detailed as building a custom home with all your custom features and all your you know weird requirements especially if it's pink tiles yeah exactly I love let's Market some homes in Burnsville and Woodbury the segments can be brought to you by Chris Rooney home experts I was just one years old when my family started in real estate where both my parents were agents they also dabbled and invested in real estate rentals flips and construction after college I went right into getting my license in July of 1990. as a 23 year old agent in an industry that looks nothing like today I had to know more for my clients to choose me there wasn't Zillow or social media to tell them how good I was I had to win them over with knowledge with knowledge comes confidence and with confidence comes results I thought oh here we go it's going first you are I'm first oh oh he moved yes that was an easy one wow I'm going on Portland all right beautiful Burnsville it was built in 1986 it's it's updated you know we got a nice two-car garage I assume we got uh at least three bedrooms up maybe even a fourth with that three baths um it's a it's a good location you're quick to get on to 35e or 35W uh Portland Barley's is right down the road I mean who doesn't want to Barley's oh that was a Re Max Advantage Plus listing okay so it's off Portland I think that's interesting uh would you look at that map is that it says it's on Portland Avenue which everyone would think is a busy road but there's an actual little cul-de-sac off of it so you can get um you know off of Portland Avenue and that's kind of off the where's 42. isn't

that near the slopes right there too so you always have a nice snowfall yeah it's down by Crystal Lake as well so yeah it was Buck Hills across the way you can see it that lower left up next to the highway there's also the ski runs yeah or a Runway that's a good look that's a good little area uh to be able to purchase it is there any more pictures I could probably look at that kitchen though that's beautiful I mean in that that price point that's a lot all hardwood floors um kind of a modified two-story look with a great room on that main floor we used to sell the heck out I modified two stories back in the day because you get that you get that effect you know you get the one side of the house that's the the Rambler and has the big open vaults and the big you know like feel about Rambler right and then you get the cost efficiencies of a two-story on the other side you know yeah right yeah you get that open feel I mean these these guys kind of went above and beyond is that a dual Island I think there's a dual Island there but Edna Stone and I think that's pretty cool yeah see that double Island where they're kind of I mean that's that's unusual you don't usually see that right it's rare very rare they took the crock pot off the counter but that's just me you don't want the crock pot on there yeah crap off the counters yeah how about the on the fridge when they have those video screens on the fridge yeah you want to make sure it's active when you're there so you can show it off if it's staying yeah exactly I mean there is some there's some advantages to that but if you don't have it like um working the right way then it just becomes a pain in the butt and people concentrate there's one more thing to fix and these really very right on the appliances on the counters you want to get all of those off there's enough on this this whole area with all the stone that you don't need the appliances to kind of uh get that crap out of the window too yeah let me see if there's a bath Nick show me a bathroom I want to see how updated this is because I mean this price looks pretty darn good 500 000 okay it's a little more dated upstairs let's see here keep going you want to take those blinds or those uh drapes off yeah see they didn't quite update the upstairs um like it is on the downstairs so I think it's one of those things that uh you gotta have that kitchen wow them and just don't want that guy but every one of these pictures I've been focusing on the bed and how the beds aren't made or they're made real Loosely or you know what I mean it's like it's funny how it grabs your attention it you know yeah and you gotta you gotta clear these out you can't have things hanging on the closet doors that looks decent I mean it looks like it's worn out but it looks decent yeah yeah I mean you can't have robes on the doors you know right that's a photographer the photographer knows not to do that you can't do that yeah I mean everyone knows not to do that whoa okay that bed's really big for that that room if you can't have poster beds in the dresser hitting it non-vaulted ceilings look on the left Chris it's like only you could get through there I couldn't get through there oh I know I'd slide right through there no problem I would just run and dive on the bed every night so this is a this is a case right here Andy of okay I mean those first pictures were fantastic and then all of a sudden it's like your dining room will look at that house you're not gonna go look at it and so you gotta you gotta have the right photos and that's what I'm talking about it's what you put on MLS people have making their decisions on that house based on oh anyways it's on Portland it's super busy anyways and you know it's because of those those bedrooms well it's like having a car where you got a bunch of auto body work that needs to be done and you only do one half the car you got to finish it you know what I'm saying what do you do drive around and only show people the left side of your car I mean you know and that that is a problem I mean once you commit to a remodel um I I gotta be honest with you I mean people are gonna want the whole thing remodeled because otherwise they're going to come in there thinking project project project no thanks 10-4 we kind of did that one together which was nice well I can help you too okay good you you are so generous hey Andy I do have one question for you first of all because both of these had this what happens when you have a the first picture of the house is not the front of the house ugly there's something wrong so we'll see if it's true yeah yeah that uh she's missing her front tooth for sure a

2023-01-28 10:23

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