Real Estate News Radio with Rowena Patton

Mastering the Real Estate Market: Certified Pre-Owned Homes, Selling Strategies, and Navigating Economic Challenges

August 10, 2024 • Rowena Patton

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Ever wondered how to navigate the turbulent waters of today’s real estate market? In our latest episode, our special guests Joey and Salima join us all the way from Paris to uncover the impact of rising unemployment rates, fluctuating interest rates, and the threat of a recession on home values. We dig into the emotional aspects of home selling, such as envisioning future family gatherings to determine if it’s time to move on. Plus, we explore the pros and cons of holding onto property versus selling it now, providing clear strategies for both options. 

Meet Rowena Patton, who introduces the groundbreaking concept of Certified Pre-Owned (CPO) homes—think of it like buying a certified pre-owned car! An upfront appraisal, inspection, and home warranty can ease buyer anxiety and make your home a hot commodity. Discover how transparency through shared inspection reports can build trust and prevent your property from falling out of contract. Also, learn about Zoom Casa’s innovative Cash CPO option, which offers up to 70% of your home’s value in just 14 days without the need for showings or repairs.

We also delve into various listing strategies like the “coming soon” program and traditional versus CPO listings. Find out how these can help you close deals by Thanksgiving, ensuring a smooth transition to your next home. With a focus on empowering our clients with choices and alleviating the stress around selling and buying homes, we’re excited to guide you through each step of the process. So, tune in for valuable insights and practical advice that can help you make informed decisions about your real estate journey.

Speaker 1:

This is the Plain English 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:

Good morning. It's Rowena Patton on the Real Estate News Radio. Today I'm giving you an inside peek on a listing presentation. Hope you find it informative and don't forget any questions on listing your USA or Canada home. Give us a call 24-7-828-333-4483. Good morning, joey and Salima, joey's beautiful wife. You said you'd married up, joey. I can see you're correct. You do.

Speaker 3:

Thank you.

Speaker 2:

I haven't met Salima before, so welcome Salima, and thank you so much for hopping on today. I know you guys are off in Paris for the Olympics. Are you having a good time over there?

Speaker 4:

Yep.

Speaker 2:

Awesome, awesome. And so let's see about selling your house, and I'll go through the listing presentation as quickly as I can so you can get back to having fun over there. So bear with me for a moment while no problem at all.

Speaker 4:

I think it's a good time for us to take a break.

Speaker 1:

Thank you. Talk about our house.

Speaker 3:

Yeah, thank you for meeting with us. We appreciate your time.

Speaker 2:

Of course, rowena Patton. You know me already. Salima, it's a pleasure to meet you, and we do have a bestselling book on selling homes. So we want to make your home a bestseller, right, and we do have a bestselling book on selling homes. So we want to make your home a bestseller, right. And, of course, I know that you'd also had some interest in the cash offer. So I'd like to go through all the various things that we do. First of all, I'd like to go through what's happening in the economy. You know, we all know about the economic cycle. Good old Clément Juglar, a French economist. You're in Paris right now. Ask some people around you about Clément Juglar, they'll tell you all about him. He's a famous French economist. In 1860, he set up the economic cycle, being 7 to 11 years. Now why are we talking about that when we're talking about selling your home? Because most markets in the country, including yours, crested over a year ago. So we're rolling around up here right now. So what causes this um? Are we seeing any political unrest right now?

Speaker 4:

oh yeah are you?

Speaker 2:

probably seeing that going on in france, as well as your, as you're over there. Oh, are we seeing anything about job reports right now? Yeah, you've been out of the country, but I don't know if you know, but the unemployment rate just ticked up beyond what we were expecting, so that wasn't very good news for the economy either. So, anything in interest rates right now and these are all things you would know, as you know everyday people. You don't need to be an agent to know this, obviously. So, are you seeing anything in interest rates right now? And these are all things you would know, as, as you know, everyday people. You don't need to be an agent to know this, obviously. So you see anything in interest rates right now, yeah, yeah. So a lot of things are going on that that have caused this, and most people are expecting some kind of recession to happen, and we're bumping along the top in. You know, most markets in the country, so even put, people coming in from other markets around the country are also feeling this pressure. Or, as buyers, you're thinking, oh, maybe we can get a deal right now, you know. So we're seeing all kinds of things going on. So I think you'd agree. You've got three pathways as a home seller right now.

Speaker 2:

So let's think about Thanksgiving, for example. We've got Thanksgiving coming up here. Your family's coming to your home. Just imagine for a minute you can close your eyes if you like, closing your eyes and doing imagination games and imagine your family coming at Thanksgiving Now this year. Who will be around the table? Try and scoot forward in your mind. Think about how old you'll be. Think how old your kids, pets, family will be in 10 years time. Does that home still work for you?

Speaker 4:

it's, it's a. It's funny you you ask that question because we've been, we've been arguing, uh, uh, respectfully of course, if we're just going to hold on the property, because if you were thinking that we wanted to sell the property at the best price as we can, but we didn't realize that it might take a couple of years before the market will pick up again, which sounds like it's going to be 10 years from now, I don't know. That's why we invited you to have a conversation.

Speaker 3:

Sorry, selena. Selena, go ahead. No, I was just thinking about, you know, becoming a landlord I. I remember last time we were landlords and remember that that tenant, kenny, called oh yeah, every three hours. I don't know if that's something we want to do again. We're talking about having another dog as well, since the children aren't going to my responsibility against that.

Speaker 2:

I'm sure, so you could stay in the house you've got if it works for you, right, and I'll support you through that and every so often I can send you a value and you can watch it. You can watch the value go down and then back up again. Statistically, we're looking at three and a half to five and a half years for it to go down to the bottom and then it climbs for three and a half to five and a half. So if you want to stay in the house, what I do want to say to you is I want you to have that 10-year mindset. You know, don't think, oh, I'm going to dip my toe in in a couple of years, because chances are we're worth less, less at that point. Here's the thing. Should you choose that path, I want you to have that 10-year mindset. Don't go, oh, we'll rent it for a couple of years and see how we feel, because what you don't want to do is go through what you've already said is the aggravating renting and then, in year three or year four or year five, sell it at the bottom of the market. So have the 10 year mindset for any of these pathways, if you don't like one and two, what we need to do is get it sold as quickly as possible.

Speaker 2:

We're still before the election. You know there are lots of. We've got lots of tailwind right now where we've got that window of opportunity to get it sold. If we're going to get it sold, we want to get aggressive and we want to get it out there now. And thank you. I know you'd already said to me, joey, you want an agent with experience, because you know the market's a little bit bumpy and will continue to be so for three to five years. So thank you for that. I very much appreciate you saying that and I would say that to anybody whether I'm the agent, not anywhere in the country to just choose an agent right now that's been through this before and knows how to get your home sold.

Speaker 2:

Many agents came into the market in the last two or three years and it's been really easy. Two years ago we were having multiple offers. I know agents who don't know how to negotiate because we didn't have to negotiate for so long. We're in a a very, very different market now. Almost everywhere in the country we've seen price drops, for example, in your zip codes for the last six months straight. That's not really hit prices yet because we still have limited inventory. However, by Thanksgiving all those price drops are going to come home to roost and I think we're going to see lower prices. So now we have to say how do we get it out with as much marketing as possible and do it in the right way?

Speaker 2:

So we've been through all of this. You know most markets in the USA crested already and we've got the three pathways We've already talked about. You know what it would be like in Thanksgiving in 10 years time, and does that home work for you? And I think you've settled. You tell me I think you've settled on getting out now and moving on what you want to do. Do you want to just share for a second? I know, joey, you shared with me a little bit. Do you want to share what you're doing next? So I can, you know, make sure the strategy is built around that.

Speaker 4:

Well, Salima mentioned earlier that we wanted to have a bigger backyard for our future grandchildren.

Speaker 2:

What about where you want to be? You mentioned going out of state before. We love California to be, are you?

Speaker 4:

you mentioned going out of state before. We love california, but, uh, we've been thinking of moving out of state. There's a couple of areas that we've talked about before. We're still uncertain, but, um, what do you have?

Speaker 3:

uh, really, your first choice, yeah, for me personally it's been arizona I I know Joey is a little bit. We're still going back and forth about that.

Speaker 4:

We'll be close to the ocean.

Speaker 2:

Let's talk about certified pre-owned homes. We've been doing this since 2007. We're part of a network called CPO Experts and this is very important have you ever heard of a car.

Speaker 4:

Oh, I prefer a car.

Speaker 2:

yeah, okay so all the car dealerships have them. Carvana is based on that model, for example, carmax is based on that model. So you take a $20,000 car and you do 156 point inspection and those cars are selling for 6% more. Why do you think people love certified pre-owned cars?

Speaker 4:

Peace of mind. You know certainty that everything was checked before they sell it.

Speaker 2:

Yeah, it absolutely hit the nail on the head. We don't want to buy a lemon. So when I got into real estate back in 2007, things were just falling apart. Things were falling apart in 2007 anyway, but on top of that a lot of deals were falling apart. And then I thought why is it that we put a car on the market that's $20,000 or $30,000 and yet we take a $500,000 home or a million dollar home and we throw it out there and hope for the best? So I thought why don't we do the appraisal, inspection and home warranty? Cpo car.

Speaker 4:

Oh yes, refer a car yeah.

Speaker 2:

Okay, so all the car dealerships have them? Carvana. Hey guys, quick interruption. Any questions on listing your USA or Canada home? Give us a call 828-333-4483-247. We have certified pre-owned homes. You don't have to do this program and should you choose to do this program, it's going to. I'm going to ask you to at least do the inspection and I'll go into all the details, details why the inspection is going to cost you five, 600 bucks, depending on which inspections we choose to do. Ok, for a home warranty. That ties it up with a nice little neat bow.

Speaker 2:

Because buyers are getting more nervous right now when your home's certified pre-owned or at least partial CPO buyer agents are going to prioritize your home, quite rightly, because it's a better home for the buyers. You know there's all the risk is taken out. It's like, do we choose the the car on on um craigslist or do we choose the cpo car from the dealership that's around the same price? You know there's really no choice for most people, right? So when we overcome that inspection hurdle, so you, you probably haven't sold a home in a while, but what happens is a week or two weeks after we go into contract and I'm going to sell your house, we're going to get it under contract. So a week or two weeks in, the inspectors come out and inspectors have to earn their money. After all, on average, they're going to find 50 or 60 items. That's wrong with your house.

Speaker 4:

And then I know right and then we took care of them to interrupt, but we we took care of our house really well, all the maintenance, and so we're not really worried about that part.

Speaker 2:

I know, joey Salima, I totally hear you. I can tell you that I've been doing this a long time. I'm 3,500 transactions in and all my sellers say that and, by the way, I think that about my home too. The thing is, the inspectors have to earn their money. They've got to find these things and there's all kinds of things that you can't see. You know, it may be some flashing on the roof, it may be something that's going on in the basement, it may be something that's going on under the sink that we just don't know about. Like when you bought your house in the first place, you probably didn't go through every single item on the inspection report when you bought it years ago and put them all right. Not only that, things, things go wrong over time, so I promise you they'll find them. It just happens to me every day and we're always surprised by it. Even with new homes, by the way, we're going to find 30 or 40 things. These homes are brand new, they've just been built, so it's very, very natural, however well you've maintained it. So the average dropouts if you don't CPO your home and what I mean is I'm going to sell your house, we're going to get under contract, the average dropouts all around the country runs around 33%. Most agents won't tell you that, joe Insulima. What that means is we're going to get all excited, you're going to get ready to move, you're going to get the moving trucks booked and the new schools set up and everything else the new vets set up for, where we all dovetail you into when you move, and then it's going to drop out a third of the time. With CPO, that average is 7%, because we've either taken care of all the things up front Now you mentioned you don't have a lot of money flowing around, so you don't want to fix anything.

Speaker 2:

However, don't worry about that. You don't have to. We can just notate it on the inspection report that comes back so that the buyers can see it. That way, everybody goes in eyes wide open and feels comfortable about how we price the home, because we priced it based on knowing these things needed fixing. All houses need things that need fixing. But before you go under contract, what we want to do is and I know this sounds crazy we're going to share that inspection report with the buyers, notated with the things we've fixed or not fixed, and we're going to say listen, before you sign on the line. We want to share this with you and, over many hundreds that I've shared, nobody's ever backed out, because they're oh, joey and Salima are being honest and they're telling us what's going on with the house. Oh, I'm not sure about that and I'm not sure about this. But you know what? It's a fair price for the house. What that stops is that big repair request that often comes two or three weeks in once we get you under contract.

Speaker 2:

Or, even worse, the third right, the third that drop out. Now you've got what's called a stigmatized listing. That means that everybody is calling me saying, well, I really liked that home, that one with the red door on 123 Main Street, but what's wrong with it? Because I saw it dropped out. It creates that stigma that has people worried. So you know you pay a few dollars up front. I know it's five or $600. It's like an insurance policy. So can you see how that works for you?

Speaker 4:

What about? Like you know, we've been up front from the beginning row as much as possible. We want to spend little to no money up front in fixing it because we really feel like we really kept the property really well. So what if we found something on the, now that you've mentioned that typically a home inspection will show something? And what if we don't want to spend anything? Is it going to help at all, even if we got the home inspection ahead of time?

Speaker 2:

Joey? That is a really smart question, absolutely. Here's why we notate the inspection. You know we're going to probably fix a few cosmetic things a couple of hundred bucks, and I don't know, salima, is Joey handy? Do you think you can get him to fix a few things around the house?

Speaker 3:

I mean, that's actually one of the reasons why I married him is because he is pretty handy, so I am hoping that we won't have too many items come up and maybe there's some things that he can just fix himself. But it would be a good idea to know in advance, versus when we're on the market.

Speaker 4:

The other agent didn't bring that up to us am I going to get paid if I fix it myself?

Speaker 2:

I am sure that that um selena brings a lot to the relationship and I'm sure can pay in kind, whether it's a nice dinner or something oh I, I can argue with that, but it's okay, we're going.

Speaker 2:

But even the act of sharing the inspection with the buyers. It does two things it shows them that you're quite open and honest and everybody's literally, you know, on the same page, but also that we priced it knowing that there were these issues and also we're going to notate it with the few things that you've had fixed, should you choose to do that. But we can have a whole conversation about that when we get the inspection back. Does that sound good?

Speaker 4:

oh, you know what. That's really interesting, um. So what's your experience? Because it sounds like, I mean, to me what you're saying right now totally makes sense, because if I am on the buyer's side and, um, the seller or the listing agent is very transparent up front with, so there's no surprises, and I get what you're saying that if we only found out about this two weeks or three weeks later, and that's probably going to scare the buyer away, and so what's your experience? When, when, uh, when you're up front to the prospective buyers about you know the items that needs to be addressed, or maybe those are just a regular wear and tear?

Speaker 2:

sometimes they are wear and tear and sometimes the things will come up. Sometimes they won't, and we can go into that when we get the inspection report back. Okay, the experience is they feel a sense of peace, right, they feel a sense that you're not trying to hide anything. Too often in a real estate transaction the buyers think the sellers are trying to hide something, or the sellers think the buyers are trying to hide something, and it's our job as real estate agents to calm all of that down and not try and control the transaction. We're brokers at the end of the day to try and give everyone the best experience possible when selling a house. I can also tell you, joey and Salima, that you know once we we're going to get it sold and you're going to go under contract, and then a week later or two weeks later, we're all going to have a sleepless night worried about what comes back on the inspector report.

Speaker 2:

This takes that off the table. The buyers are feeling the same way. So you look at the psychology of the buyers who are buying your house. We have to do that because that's how you're making all this money for your house. You're going to make a really nice profit on it. They get all excited oh, this is the one for us, finally we found the one. And then they start getting nervous to towards the inspection and they have that buyer's remorse come in. This takes a lot of that off the table. You can see how that works 100.

Speaker 4:

Yeah, I love, I love the fact that it's also going to give us peace of mind because we're not going to get surprised along the way.

Speaker 3:

I think that's it, yeah I know that you had mentioned that it's going to reflect on the price. Does that mean that we're going to price it lower because of the items that are going to come up?

Speaker 4:

I'm confident you're not going to find anything. Go ahead, Ro.

Speaker 2:

Yeah, I mean Joey's very confident, nothing's going to happen.

Speaker 4:

I'm just going to fix it. I'm a handyman.

Speaker 2:

We're going to price it now. Quite honestly, that's a conversational piece. It depends what we find. We may find that you, you know with some sellers, they we find out that the roof needs replacing. So obviously that's a high ticket item which again we can get ahead of that. Let's say worst case scenario scenario. Joey, I know you don't feel any of this will come back, but you know, for some sellers previously we have a roof that needs replacing. Literally you know it's failing and needs replacing. So we know that's going to be a big deterrent for the buyers. So if, for example, as the seller can't afford to replace the roof, we can get three quotes.

Speaker 2:

Now, when you're under contract, there's a lot more stress and a lot more pressure. The roofers come in. They see the sign oh, my goodness, you know this is a sale. Guess what happens to the prices? They go up when we do it ahead of time. We get three quotes. They know we're getting three quotes. The pressure's taken off. So we can look at the least expensive one you know with roofers with a good reputation and choose that one and put it with the listing. We can say listen, we know the roof needs replacing and it's going to cost $12,000. Here's the quote to do it when we go under contract or, you know, when it closes, we can hold the money in escrow to get that done. Or we've reduced the price. There's lots of scenarios that we can go through once you get that inspection back, should anything like that be there. But we've got all of the ways to manage that for you. We can reduce the price or sometimes a better way to do it is keep the price where it's at and offer a credit for the roof. You know, it just depends on what their loan's going to look like. We've got all the strategies to manage that when it comes up. But knowing it ahead of the time, ahead of time, instead of through that very stressful transaction where they're thinking shall we go ahead or shall we pull out? You do not want them to pull out because you've got that stigmatized listing right. It takes all of that off the table. Very, very, very few pull out when you choose to go this route.

Speaker 2:

But I've got even better news for you. So now we know what the certified pre-owned is all about. We've now evolved into something called the cash CPO. The certified pre-owned is so important because of what we've just gone through. But now we have a funding partner, zoom Casa, who will actually buy your home from you and turn it into a CPO home. So what that looks like is you don't have to have any showings, you don't have to fix anything up. You get up to 70% in 14 days.

Speaker 2:

Now I know you're thinking already I'm going to deal with the elephant in the room. This is just like all the other cash offers. We're trying to steal yowls the room. This is just like all the cash offers. We're trying to steal yowls. We're really not, because you're going to get another check when we go in and do the hgtv magic on the home and then sell it very often for for more money that so they. They use their funds up front to pay for the inspection. They use their funds up front to pay for the appraisal. We then use their funds to put anything right on the inspection. And we have contractors set up. They have project managers. It's wonderful.

Speaker 2:

Two-thirds of our sellers actually make more money with this than a traditional listing. But guess what? You don't have to have any showings. You don't have to get your little puppy aside every time somebody's coming into the house or wondering who's traipsing through your home three times a day. All that goes away and obviously it's your choice. But this is another option there. It means you can make a non-contingent offer on your next home in 14 days. You're obviously waiting for your second check, but our average seller gets 90 to 120% of what you would with a conventional listing, but without the sign outside, so you don't have all your neighbors saying, oh, what's going on? Or nobody you know. You don't have a lockbox on your door or any of that going on. So let me show you what else we do, regardless of of which pathway you you choose here, I think you're leading towards selling, so let me go through the the other uh things that that we do for you when you're selling your home.

Speaker 2:

We do lots of social media, and I know I've presented this to you before, so I'm going to go through this relatively quickly. We've got 70 plus niche facebook pages. Um, we, we. We do have a radio show that's syndicated where we get a lot of this out. We've got Facebook pages. We've got Instagram pages. We've got TikTok. We've got YouTube. You mentioned it. We're dominating across all of those different social media platforms. We have the leave it guarantee. Why am I telling you that as sellers, because the buyers love it right. So when they purchase with us which you did, of course, which is why you're getting a discount on the sale when you purchase with us, we're going to give you a discount for 10 years. It's only a small discount, however, for your buyers that are coming in. You're in California. People we know are a little nervous about moving to California right now. If they are not sure about your area, or if they're not sure about California or literally the neighborhood you know, maybe they haven't lived in that neighborhood before we will sell it for free for six months. Hey guys, quick interruption. Any questions on listing your USA or Canada home? Give us a call 828-333-4483, 24-7. Mind buying your home? So we're attracting more buyers through that.

Speaker 2:

We are also very proud to be endorsed through CashGPO with the Tenorfa Towers Foundation. It's t2torg. This is an amazing foundation that pays off mortgages for firefighters, for first responders you know we hear in the news, unfortunately, all the time of them passing and their widows or widowers, you know, having a mortgage. They pay off the mortgages. It's amazing. They're actually building a whole town right now in Florida for wounded veterans. It's incredible, and we give back a percentage for anybody that has served, you know through our whether that's buyers or sellers, so I don't know if you've ever served in any of those roles. Were you ever in the military?

Speaker 4:

No, I do have some family members who did Wonderful.

Speaker 2:

Wonderful, wonderful. So it's just. It's a great foundation that we support. Through this We've given back. We're on the way to having giving back a million dollars. On a small team and across the board we've given back way over a million dollars.

Speaker 2:

We do have a radio show that's syndicated every Saturday. We've had it for 12 years. I know you've listened in on the radio show. Anybody anywhere can listen. We talk about the program a lot and all of the nuances of it, so that helps buyers as well. And also we get your home out there on the radio wherever it is in the country, so that's every week. We can do call-ins as well. It is live, so it's broadcast live. We also have a-ins as well. It is live, so it's broadcast live. We also have a podcast out of that so you can share it with your friends as well. When we feature your house on there, we have a memories video. So if anything happened that was memorable in your home maybe something that happened with the kids or when you brought the new puppy home or something like that we can capture the memories for you. You don't have to be on the video. That's fine. It's like a walking tour video. Basically, we do around your house and you can capture the memories. Do you have?

Speaker 2:

any memories in your home.

Speaker 4:

It's still in the CD. I have to transfer it to my hard drive, but that's really nice. I mean, I love what you're doing, especially the uh for the. Is it the t2t? Yeah, t2torg, that's really nice of you he lost his brother.

Speaker 2:

Frank siller, who's the ceo, lost his brother in 9-11 and he set up the foundation after that and it's it's. If you start using the videos, start watching the videos on on youtube um, have some tissues because it will absolutely blow you away. Some very famous veterans on there that have lost limbs and they build these amazing houses for them. It's absolutely incredible. Um, the memories video will capture that for you, will make a private link on youtube and you don't have to be in the video. You can just tell me the memories and I'll walk around the house, because often we're attached to the memories in the house and not the box. You know, we think we're attached to the house, but often that's just the box and you want to be able to take those memories.

Speaker 2:

You mentioned having grandkids in the future. How cool would it be for them to see all the houses you've ever lived in? That'd be kind of fun. Well, you'd think it would be Joeyey, and they'd probably all be really bored with it.

Speaker 2:

Right, we also have a coming soon program, so while we're, you know, should we find we do the inspection and we're making some of the repairs while we're doing that, then, um, you know we can get it on the coming soon program. That's where we get you on the mls, for we can do it in our market for two weeks whereby nobody can come in and see your home. However it's on the MLS, so people start getting excited about it. You know it's like, oh, I really like that one. That's a neighborhood I've been looking for, that's in the price point I want. So you kind of build up a following, if you like, while it's on that coming soon, but nobody can come in. So know, you've got all your private privacy for that two weeks. So now it's time to choose. We've got the exciting part. We've got and it's your choice, you know.

Speaker 2:

I'm not here to bully you into doing something one way or the other. So you've got a conventional listing, I'll be able to get your home sold, and these are all probabilities. There's no guarantees in real estate. I wish I had a magic wand. I don't. I do have some programs, as you can see, that make all of this a lot easier and more likely to happen. So increase the probabilities for you.

Speaker 2:

So what is the conventional listing? I'm going to bring you a check at Thanksgiving. That's probably when we'll close if we list it tomorrow. But the average time on the market, the fact that it's going to take four to six weeks to close once I bring you that contract, you're going to get a check at Thanksgiving. And, by the way, I'm going to bring you that check 67% of the time because I can't control the dropouts. I wish I could. I can't control buyers wigging out when we get to that contract stage, or maybe leasing a car or something like that. You know that throws in there too, but the biggest reason it falls out is because of the inspection and the appraisal or so. So stage one again. Just to reiterate you're going to most likely get a check somewhere around Thanksgiving and I'm going to bring you that check 67% of the time on average, and that's everywhere in the country. By the way, that's not just me, not because I'm not a great listing agent. I sell a lot of homes. I promise is that we only have so much control on our seller side, on our listing side.

Speaker 2:

So second choice is a conventional CPO listing, certified pre-owned listing. So again, I'm going to bring you that check at Thanksgiving. You know you're going to have that check at Thanksgiving and I'm going to bring you that check. 93% of the time. The odds are way better and to take it from a 67 to a 93% probability that you're going to get that check at Thanksgiving, that's going to cost you five or $600. So I can see Salima nodding her head there, saying that one sounds better. Or you've got the third option, which is a cash CPO offer. You don't have to outlay any money upfront. We're going to get you up to 70% within 14 days. We're going to go in, do our HGTV magic. By the way, you can stay for up to 90 days if you want to. I forgot to mention that before.

Speaker 4:

Say that again, Ro. What's the 90 days?

Speaker 2:

You can stay. You don't have to move out in 14 days. I mean, I know you're out of the country right now and you can come back and you can close on your house, get up to 70% of it and you can stay in the house up to 90 days if you want.

Speaker 4:

Oh, that's a good option.

Speaker 2:

Why we domino you into your next house, and I can help you with that as well. By the way, I'm going to have those searches set up today for the houses that you're looking up, even though they're out of state. We've got the most amazing network of cash cpo people all around the country that that can help you, and I'm going to have that search set up for you today for you. So while you've got some downtime in paris, you can scroll through the houses and see if you like any okay the sooner we get that, we want all the dominoes to fall at the same time.

Speaker 2:

You find your new home and you know we don't want you to have to move into a rental or something in between.

Speaker 4:

We want to make it as smooth as possible for you, so I can help you with that okay, because I'm glad you mentioned that row, because we've been talking about it like if we need to, because it's too it's too hard to find a property right now that we really love. And, uh, are you saying that we can stay in the property while we're researching? Because I think one of the agents we spoke with it will be difficult for us to be a contingent buyer, and so this might be yeah we want it to be a forever home, the next one.

Speaker 3:

So we want to make sure that it's something that we're happy with and we don't want to be rushed into anything.

Speaker 4:

We don't want to be pressured like just uh submitting an offer for the sake of uh. So yeah, I think that's uh. Okay, problem solved.

Speaker 2:

I think we've been uh I'm gonna say something that that's um a little controversial right now.

Speaker 2:

So many of my sellers and I myself am sitting in my home that I said was going to be my forever home.

Speaker 2:

I love the the fact that it's most was going to be my forever home. I love the fact that it's most likely going to be your forever home. I'm going to work with the agent and we're all going to work together to make sure you still have an exit plan so that you're not overpaying or you really take your time to find what you want and, at the same time, you're not overpaying or you know, doing something. Whereby should you, for any reason, in two years time, think, oh my goodness, I really don't want to live here, then you have an exit plan. So I just want to put that little thought in your mind, even though it's most likely your forever home and yes, joey, you can absolutely stay and we'll work very hard to find that perfect home for you to go into, okay, yeah because the other option is like should we rent for a year while we're searching, but at very hard to find that perfect home for you to go into?

Speaker 4:

Okay, yeah, cause. The other option is like should we rent for a year while we're searching, but at the same time we might get locked up on a contract and all of a sudden the house that we wanted showed up all of a sudden and like but you know, we'll process the bridge when we can.

Speaker 2:

So the funny thing is I'm glad you brought up the rental, Joey. So the average rental in the house in the market where you're looking to buy a house is three thousand dollars a month. Is that what you've been finding while you were looking at rentals?

Speaker 4:

I've been looking around. Yeah, it's not cheap.

Speaker 2:

It's rentals right now, so let's go back to the cycle again, because you could argue you know, prices are going down, people are saying prices are going down, so I'm going to wait it out a year and I'm going to rent for a while. Let's look at what that looks like, because it's all about numbers Twelve, twenty four, thirty six thousand dollars. So I would argue that thirty six thousand dollars in in your rent for a year is a pretty good cushion. Let's say, prices do come down. You've got $36,000 towards those prices going down. In other words, if you choose to buy a house instead, right? And you're like, oh gosh, what if the price goes down over the next year? And we could have rented instead and waited out the price drop, you've got a 36 000 cushion.

Speaker 2:

But it's even better. You don't have to move twice. So the cost of moving is probably at least ten thousand dollars. So now you've got a 46 000 cushion. And we know it's not all about money, it's about peace of mind and not having to go through all that aggravation. So how about now? Um, yes, you, you know, you got a 46 000 cushion. You don't have to go through that aggravation twice, right?

Speaker 2:

so I know you wanted more detail and I know that we've all gone through this separately. This is day one through day 105 and I'm going to email this to you at the end. Here are the three the traditional uh, conventional listing the, the conventional CPO and then a cash CPO. So two thirds of sellers make more with the cash CPO. I'm going to bring you the check in Thanksgiving. I'm just going to do the bottom line here. I'm going to give you the check at Thanksgiving on the traditional CPO 93% of the time. I'm going to give you the check at Thanksgiving 67% of the time with a traditional. But with a traditional you don't have to shell out that $600. Obviously, with the cash CPO, you're going to get money up to 70% within 14 days. You can stay in up to 90 days and you mentioned that your countertops were a little bit chipped, so we could put some new countertops in there and probably get three, three times the investment back right, which pays for the program. You like to look at the net sheet? Would that help?

Speaker 4:

yeah, that'll be helpful.

Speaker 2:

Yeah, that personal really help. Yeah, let's look at the, the real numbers. Uh, bear with me just a second while I get that for you. Isn't it amazing that these days, you know, in real estate, we can talk to each other in different on different continents and then go over without? Yeah, it's incredible. So you should see investor cash offer, our cash, cpo offer in the middle, and then a conventional sale on the right.

Speaker 2:

Can you see all of those? Yeah, okay, so we've got a NASDAQ value of 450. That means you know we all talked about putting it on the market at $450,000. Your mortgage balance good job, nobody else can see this is $181,000. And then we've got an after repair value because I've done run the comparables right. So I can see homes around you are selling for a lot more and you did mention that you know you hadn't upgraded a few things here and there. So I've put a renovation budget in because I'm I'm the agent on, you know, in your market that knows all about the homes that are selling around you. I think if we can spend $70,000, then we're going to, which puts us up to $520,000,. I can sell it for $552,000. I mean, what do you think If tomorrow, you could go out and spend $70,000 on your home. Does that make sense to you that you could get some more money for it, knowing what your neighbors are selling for?

Speaker 4:

for it, knowing what your neighbors are selling for well, um, for me, if you think I mean for me, money now is much better than money, money, uh, in the next couple of months, okay, so well, you don't have to spend this, you know?

Speaker 2:

it's not your money, it's okay. I was just doing a. I mean, I'm the agent at the end of the day, so I'm supposed to give you these answers. I'm just doing a gut feel for you two that if we spent $70,000 on your home, then you could be selling in the you know 550 range instead of the 450 range based on what's selling around you. And, by the way, this cash offer works, whether or not you need anything doing to your home, you still get all of the same benefits. I just want to show you what the net sheet is on yours particularly I guess.

Speaker 3:

What I'm wondering is where's the catch with that?

Speaker 2:

I know, no, well, no, the catch is you have to wait for your second check. But with the other two options that we have, um, you know you, you're not getting your check right away. Anyway, you're waiting until thanksgiving.

Speaker 3:

So before we even dive into this, would you all say that the certified pre-owned is a good idea, whether yeah, I mean, the traditional is out of the picture already, especially when you walk us through the uh, the scenarios of you know deals falling off escrow yeah, we want to make sure that we whoever you know the buyer is that they have a peace of mind and us have a peace of mind as well, so that you know we don't want to be terrified, not knowing what's going to come up and then have such a high probability of the offer maybe falling through. We can't, we can't really risk that and we're not wanting to do that.

Speaker 2:

Honestly. I've even had sellers and you know I'm a very fiscally conservative person and they've even put it on their credit card and I don't think that's a bad idea because you're saving so much money. When you don't put things right up front, you put this fear in. Hey guys, quick interruption. Any questions on listing your USA or Canada home, give us a call 828-333-4483, 24-7. Everybody's mind. Not only that, we have to get quotes for the issues and remember, we're under contract at that stage. Time is not our friend. So we're running around trying to get quotes. The contractors see the signs in the yard. The prices go through the roof. It has to be a licensed contractor at that point. It can't be. You know, we're going to get joey. We're going to set joey to work here putting some of those things right. We can't do that when we're under contract, right? So you know, for all kinds of reasons most of my sellers say it's a no-brainer.

Speaker 2:

I only had two last year of all the sales that I made that chose not to do this, and one of them it was a cash offer at $800,000. And they walked away at the inspection. Because he chose not to do the inspection, he ended up selling six months later for $700,000. He lost $100,000. The second one these are both true stories. The second one put the home on the market. It was sort of out there, it was taking a bit longer to sell and they came in. It fell out three times because of the inspection and we didn't have an inspection to show anyone. The third time he said just share the inspection. That's when it went through. But he so he lost seven months in the sale and all the stigma of it falling out.

Speaker 4:

Yeah we can afford that yeah I think, I love the fact that uh we can get, let's say, if something uh comes up in the on the home inspection report, we can get quotes ahead of time. I love what you said, that when uh contractors see a for sale sign, prices just goes up.

Speaker 2:

I mean, that totally makes sense yeah everybody never thought of that it's so funny, joey, everybody I go through this with you, go go through this with, says this is a no-brainer. Why aren't all homes sold this way? You know so okay, so let's have a look at these. So an average investor cash offer which is sometimes when people hear cash offer, they think it's an investor offer so this one is 70% of the of the after repair value. Right, that's a normal cash offer. You just get 70%.

Speaker 2:

We're doing 66% upfront on the cash offer, so it's not too far apart from a regular offer. The difference is we're going to use the cash CPO team money up front. We're going to take care of all of that You're still going to be in the picture, by the way and then we're going to improve the value of your home. We're also it's not just about improving the value, though. Quite, you mentioned you got that little dog and um just getting the dog out of the house. You know, and um, you know, cleaning that carpet in the bedroom where you mentioned there were a few little pee stains, or taking out that chick for mica.

Speaker 2:

Nobody wants to do anything these days, do they? They don't want to do anything. They don't want to paint the cabinets, put new hardware on, even the little. Oh, the house needs a paint job. They just move on to the next house. It's amazing. Everybody wants everything perfect. Do you think it's because we're in the on? Even the little thing? Oh, the house needs a paint job. They just move on to the next house. It's amazing. Everybody wants everything perfect. Do you think it's because we're in the hgtv world?

Speaker 2:

yeah probably right. It's amazing. So who knows? So I'm just going to go right to the net sheet down here. This is, after all, the fees, because you, you asked, you asked Salima, what's the catch? The catch is there's some fees that come out, but I want to show you the bottom line here. So, with a conventional sale, after we pay the commissions and after you know all the fees, the repair concessions, everything else is paid off we're looking at a net of 213 628. So on our cash offer, we're looking at a net of 217 768 and on a regular cash offer, we're looking at 134. So can we just throw the regular cash offer away?

Speaker 2:

yeah, yeah this is for really distressed homes or you know other situations where people do take cash offers all day, every day, so you can see hours. You're making a little bit more money. There's not much of a cushion there, but a little bit more money. But remember, you've got no showings. You're getting the majority of your equity within the first 14 days. You don't have to fix anything. We're doing some improvements that are going to improve the cost. How does that sound? Do you have any questions on that?

Speaker 4:

No, no questions so far.

Speaker 3:

Yeah. I mean that sounds like a great option. I'm just wondering if there's a catch to that that I'm not seeing.

Speaker 2:

So they buy thousands of homes. They bought a thousand homes. Zoomcast, our funding partner, bought a thousand homes last year. They're aiming at 3,000 homes this year. They've been doing it since 2017. I can show you some success videos as well, and before and afters. They look like hgtv homes where they really go in and do the work and, even though that you may say that I want to deal with the elephant in the room, they own the house after this initial transaction, but every single one that I've seen they keep you involved.

Speaker 2:

So we all get on zoom like this. And you know, maybe we've got some quotes back, because we don't know what there are yet, because we haven't done the inspection. Maybe we get some quotes back on the roof, you know, and oh my gosh, well, we didn't see that in the renovation budget. So we've got a renovation reserve of seventy thousand dollars. We've got a big one on yours. Um, we normally have ten, twenty thousand dollars. I've seen them, you know, lower than that, higher than all over the place. So we've got a reserve in there. And then we say you know, we were going to replace the island in the kitchen. I think we'll leave the island as is. Instead, we'll do the roof. We all have that conversation.

Speaker 2:

Everybody's aligned. The funding partner makes their money from a percentage on your house. They don't want to come in with a low appraisal. They don't want to come in with a low appraisal. They don't want to come in with high fees because they make less money. Everybody's aligned. And then you get the majority of the profit when we sell your house and, like I said at the beginning, most of our sellers get 90 to 120 percent. Two thirds of sellers make more with this option than they do with a conventional sale. But we know it's not just money. It's the fact that you can get the majority of your money within 14 days and move on. But I don't want you to feel that I'm pushing you into any particular route here at all. This is your choice, it's your home and you know it's. It's all about, uh, what you would like. So what do you think, guys?

Speaker 4:

Well, the other option, the unconventional one, it's kind of very intriguing. So does that mean that if we sell the property at the higher price on the resale side we can potentially get more money? It sounds like.

Speaker 2:

Do you mean with a conventional cpo or with the cash cpo?

Speaker 4:

the cash cpo, the one in the middle the cash cpo absolutely.

Speaker 2:

And remember too, even though I'm putting this renovation budget in now, joey, I'm gonna get the best quotes I can get and zoomcast. I have this amazing group of project managers. I've got lots of local contractors here that I know and love and because I've done a whole lot of these now they give me great pricing. So I'm going to bring them in and get you the best price I can. We may not spend that $70,000, you know, and we're at a very good price point. I know because I've done all the comps I'm your agent, I've done all the work for you to know that we can easily sell it at that five, 50 mark. So you know maybe that we can economize on some of that 70, but you've got a very good cushion there, as you can see on that.

Speaker 4:

What do you think? I mean, we can pay off our mortgage sooner rather than later.

Speaker 3:

Yeah.

Speaker 4:

I can save us some out of-of-pocket expenses over the next couple of months, uh, by thanksgiving, because if we, if we, if we did the, the cash cpo, we can pay off the mortgage and then, uh, we can stay in the property.

Speaker 3:

Yeah, I like that, we're not going to be pushed into. You know having to find yeah, I like that. We're not going to be pushed into. You know having to find something so quick, considering that we're considering Arizona, which we are, and you know I think that's.

Speaker 4:

There's no ocean there.

Speaker 3:

There's a good option.

Speaker 4:

There's no beach in Arizona.

Speaker 2:

We're going to figure that out and I'm going to you know what I'm going to do. I'm going to, we're going to figure that out and I'm going to you know what I'm going to do. I'm going to get you we're going to be options list for you you put down, I want you both to put down the 10 things that you're looking for where you're moving, and then you're going to score them one out of 10. And then we're going to have a whole other discussion around that. I do it for houses, by the way. When we go to look at houses, I want you to build a list of one through ten and I want you to score them that way and you can both score them differently if you want. And every house we're going to go in, I'm going to go okay, one through ten. How do we score it? Does it have a fireplace? No, does it have a? Whatever? You've looked at every single house that we're looking at to make it easier for you to choose.

Speaker 4:

Is the list separate for each of us or it's a combined?

Speaker 2:

If you like it separate, I'll make it separate for you.

Speaker 2:

So, I want to be completely open with you. There is a catch. You get to pay off your mortgage right, we didn't talk about that. When it closes, you get to pay off your mortgage and you've got that $2,500 a month payment that's going out. You pay a fee to Zoomcast of 0.9% a month. Every month it stays on the market.

Speaker 2:

The good news is, because it's a certified pre-owned home now and we've cleaned it up, your home's going to really compete. It's going to win the beauty contest against all the other homes out there. It's even going to compete with a new home, because people go well, honey, let's have a new home, it won't have any issues, right? Well, we've got, we've CPO'd it, we've certified pre-owned it. It's like are you now, are we buying a CPO car or are we buying a new car?

Speaker 2:

I don't know. You know new, new cars drop in value when you drive them off the lot. So let's have the CPO car where everything's been done right, so you can now more easily compete with new homes because all those items have been fixed and you haven't had to do it. Yeah, that's a great point. And the 0.9 comes off the profit, you know, at the end when it sells. So nobody's going to ask you for 0.9. Comes off the profit you know at the end when it sells. So nobody's going to ask you for 0.9% while you're sitting there and we're finding you the new home.

Speaker 3:

Yeah, we wouldn't be able to pay out of pocket. We want to make sure that we're not. So we would be having a check within two weeks.

Speaker 2:

Yes, 66%. You'd get a check and your mortgage would be paid off, and then you'd have the rest of that money in your hand I think I like that.

Speaker 3:

So what, we can start looking for the next home after we finish the list to provide yeah it sounds like there might be some different opinions on what we're going to choose, so the time having time is going to be our best friend.

Speaker 2:

Yeah, yeah well I'm going to help you through that. I know you're back at the end of this week. Let's all sit down and we'll start going through and have a family therapy session about and what that looks like and guess what?

Speaker 2:

I'm also going to get with that agent now in arizona and the other area you were looking at by the coast. I'm going to get with that agent now in arizona and the other area you were looking at by the coast. I'm going to get with both agents and we're going to look at those 10 things that you come up with. So just, I know you're you're over there right now. I know you're using whatsapp for free. Send me on whatsapp the 10 things that you're looking for and I'll get with the agent. I'll have all this ready for friday when you come home and, um, hey, I'll bring around some takeout, or maybe we'll go to dinner and have a glass of wine. You can tell me about the olympics. Your offer will be in place at that point and, um, we'll be ready to go. Sound good, oh perfect.

Speaker 4:

Well, you know what we were. We were just, uh, having a conversation beforehand that who's going to be the best agent, who has the best lockbox, and you provided much, much more than that. So this is a different experience, really, and really happy to be working with you you're making me blush.

Speaker 2:

Thank you guys so much and I'm very honored to be working with you and I can't wait to get your home sold and help you into the next chapter. Maybe I can come and visit you in Arizona.

Speaker 3:

Absolutely Well. Thank you so much for your time and also for providing so much value with all these different options. It's really great to be able to choose and have us have the option ourselves to choose from, versus being pushed and forced into something. So that's a completely new way, so we appreciate that very much Thanks for listening today, guys.

Speaker 2:

Any questions on listing your USA or Canada home, give us a call 828-333-4483. And that's 24 seven. 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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