The Brad Weisman Show
The Brad Weisman Show
Overpricing Dangers and Multi-Generational Living
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Can you guess the most common mistake home sellers make in today's market? It's overpricing their homes based on outdated expectations of perpetually rising prices. In our latest episode, we dismantle these misconceptions and highlight the importance of setting realistic pricing strategies grounded in recent comparable sales. As the real estate market begins to balance out, we offer practical tips to help sellers avoid the pitfalls of overpricing. Plus, we celebrate our upcoming 200th LIVE episode with special guests, drinks, and food!
Negotiations are evolving, with fewer offers necessitating more calculated discussions between buyers and sellers. We share insights from Berks County, where a slight uptick in available homes is giving buyers more choices. We'll also delve into the unpredictable nature of Federal Reserve rate changes, especially with election year dynamics at play. On top of that, we explore the rising trend of multi-generational living, driven by housing and healthcare needs, and its myriad of benefits. Join us for a conversation on these pressing topics and more!
"We see inventory ever so slowly on the rise (faster in other areas)... in this episode Pete and I caution sellers to keep a close eye on the market and be sure not to overprice their homes. It's time to start thinking more about the condition of the home when you are ready to put it on the market. If rates go down we could be back to a strong seller's market, if not, adjustments will be coming for sellers" - Brad Weisman
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Welcome to The Brad Weisman Show (formerly known as Real Estate and YOU), where we dive into the world of real estate, real life, and everything in between with your host, Brad Weisman! 🎙️ Join us for candid conversations, laughter, and a fresh take on the real world. Get ready to explore the ups and downs of life with a side of humor. From property to personality, we've got it all covered. Tune in, laugh along, and let's get real! 🏡🌟 #TheBradWeismanShow #RealEstateRealLife #realestateandyou
Credits - The music for my podcast was written and performed by Jeff Miller.
sellers are starting to think that it's always going to go up. It's always going to be. I'm always going to make more than my neighbor. I'm always going to make more than my neighbor's house. That's the way it's kind of what it is right now.
Speaker 3:From real estate to real life and everything in between.
Speaker 1:The Brad Wiseman show, and now your host, brad Wiseman. All right, yeah, we're going to have a fun one today. I can tell already it's going to be a good time. Whenever Pete's in the studio, we always have a really good time. But I want to bring up first. We have our big 200th episode party coming up. It's going to be a live show here in the studio. Pete, I think you're going to be showing up for that. Oh yeah, that was September 19th.
Speaker 3:It's going to be showing up for that.
Speaker 1:Oh yeah, that was September 19th. It's going to be at 7 o'clock. Yep, hugo's going to be here. We're going to have a bunch of people Kevin Timoshenko's coming, stephanie Taramina Still trying to get Chad Henney here I don't know, we'll see. Hopefully we can get him here but going to be actually having drinks for once on camera. So there'll be some wine here, some drinks. We're going to have some food. We're just going to bring people in and out, absolutely in the studio, but we're going to have staging areas outside because it's only so big in here. But yeah, we're really excited about that. So please tune in for that 7 pm live show.
Speaker 3:Right, hugo, he job cut out for him. That's right. Yeah, he's going to have to be a floating videographer, exactly so let's jump into the real estate market because, that's what we love to talk about.
Speaker 2:So much.
Speaker 1:Yes, we do. So what do you? What do you see going on in this market?
Speaker 3:I'm so glad that people don't aren't hearing what we talk about before we start. This is true. This is true. The show before the show what you don't know.
Speaker 1:The green room, it is recorded. We record all that green room. Yeah, he's got a green shirt on.
Speaker 3:I know he's got that green shirt on, I couldn't help but think that. Yeah, it's amazing. But no, hey listen, it's still robust, yeah, still a good market for selling Absolutely, and rates are starting to seasonal, I think. Yeah, which is kind of nice. We're getting back into the seasons of the real estate market, spring being the best and fall being the second best. We're kind of coming back to that.
Speaker 1:Yeah, I agree with you. I agree with you. There's not doom and gloom. This is just being prepared. We like to be prepared. We want to make sure that our clients are prepared. So for the longest time, we've been preparing our buyers for what to expect. I think we need to start shifting that a little bit and help our sellers understand or just think ahead of what to expect. It cannot stay a seller's market for eternity.
Speaker 3:No, it's shifting very slowly, very slowly, which is good.
Speaker 1:It's crawling but it is shifting, it's starting a little bit. So some of the things that we, I think that we would want to bring up is be careful with overpricing your house. We're finding that people are starting to get into this thing of thinking. Sellers are starting to think that it's always going to go up. It's always going to be. I'm always going to make more than my neighbor. I'm always going to make more than my neighbor's house.
Speaker 2:That's the way it's kind of what it is right now.
Speaker 1:And I think you have to understand that there's when you come into a little bit more of a balancing market, you might get what your neighbor got Right.
Speaker 2:Okay, and we talked about the list price yeah versus the sale the actual sold price yeah, big difference. Getting back to that, yes, yeah, what is that? What is the difference? What is what? How is that difference relevant? But you want to explain?
Speaker 3:yeah, usually when we do a market analysis on a home, we look to see what they sold for, you know, and over the last what three, four they've been selling for way more Like in some cases it's $30,000, $40,000, $50,000 more than list price. It could be 10% more, whatever. It's becoming unrealistic now. So if we go back to pricing homes where they're listed at now, okay, that's going to be more of a realistic number. Because what was it? What was the last couple of? Most people are because what was it? What was it? What was the appreciate the last couple of most people are getting? Was it 0.9%? Yeah, something over there.
Speaker 1:Yeah, something like that. It's like 0.9.
Speaker 3:Yeah, which means it's getting close to the list price. Yeah, exactly Right. So instead of 10 or 15% over list price you know what I mean. So if you look prices, it's going to be more realistic of what your house should sell for.
Speaker 1:And that's just a good thing to look at. I think what happens a lot, like you said, when you're looking at prices, a lot of times the sellers are looking at well, my neighbor just got $250, so I should list it for $265. No, what you need to do is what did they have it listed at to get that $250, right, so was it at $240? If they had it at $240 and that's how they got 250 and you want to get what they got or a little bit more, then you should go back to that 240. Right, exactly, not to the 265 or up to where you want to go.
Speaker 1:So that's the part that we have to be that you want to try and explain, or we try to explain, to our sellers. Absolutely, it's just to be aware of it. It's not always going to go up Right, and when the market starts to do that little change, you have to be. You always not have to. You always want to try to be ahead of it. You want to try to predict where it's going to go, and that's usually the better thing to do.
Speaker 3:We try to predict where it's going to go and that's based on what. That's why that we like doing this show, because we're in numbers and statistics and trends and it changes and it's all. It's all on paper and it's easy to predict that Exactly. Some of the other stuff too, you to predict then Exactly Some of the other stuff too.
Speaker 1:You know, for the longest time, pete, I don't know about you, but when I would walk through a seller's home because we talk about price and condition, those are the two things that really location, location, location.
Speaker 1:Yeah, of course, that's always there, can't change it, can't move the house. Two, also a little bit more laxed on the condition. So we would go in and we would say you know what, mr and Mrs Seller, seriously, the bathroom, yes, it could use a coat of paint, but, to be really honest, you're going to have 30 people come through, nobody's going to care and they're going to buy it anyway, yep, yep. So we have to start thinking about prepping the home, maybe a little bit. So if you do want to get that over full price, you might have.
Speaker 3:Front door and it's funny, we used to do that. We used to do it Remember, and now you would go okay, it's like what did we used to do Exactly? How did we do this?
Speaker 1:What did we do? How did we do this? But don't you remember doing that? That's right. Fresh flowers out front. We'd have a list of things for them to do before we put them on the market. Right, we really think we should paint the kitchen. I'm like no, you don't need to paint the kitchen, dude.
Speaker 3:I haven't broken out that list. I gotta find it.
Speaker 1:Yeah.
Speaker 2:There's dust all over that thing.
Speaker 1:Yes, absolutely so. It's just one of those things I think. You just need to start thinking about those things too, yep. And then, um, is there anything else that we, you think, that the, I think we're talking about the interest rates.
Speaker 3:Yeah, you know it's the big third portion of affordability, yeah, and so, even though jobs are kind of high, I think they're holding their own, I guess, on increases, I don't think they've done much there. Prices of homes are going up, but once the interest rates really start going down, I'm sticking to my guns that I think it's going to go berserk If this thing gets under six. I don't know if it's going to go berserk if this thing gets under six. I don't know if it's going to, though I don't know if it's going to slip that far, I don't think so.
Speaker 3:It's going to be in the low sixes maybe. Yeah, I agree. I don't see it going under six.
Speaker 1:Yeah, and really, what makes the market go crazy I think under six are the people that are waiting to list their house, to move somewhere warm, to downsize. I think that's the thing that you know we always talk about. That's going to bring in a crazy amount of buyers that may be on the sideline. But what about the sellers that are on the sideline right now that have not sold their house because they don't want to go from 2.5% to 7.5% you know what I mean and pay more for a smaller house?
Speaker 3:Steve, I was just talking to you about this today. Are you listening, dude? I mean, we were Steve, if you're watching. He said Depp Pete, I don't want to give up my 2.9.
Speaker 2:Yeah, exactly you know.
Speaker 3:And then who does Triple the cost of buying a house that might not be as nice as mine? I said, well, you're that's right.
Speaker 1:You know that's right. No, but go going back to the interest rate thing though, brad, it's going to be back to. Don't worry about painting your living room, dude. Yeah right, exactly, it's under six.
Speaker 2:We're back, so for right now you have to paint your living room, all right paint your living room.
Speaker 1:Do your landscaping. I heard you have a good connection with newcastle for that yeah yeah, so yeah, a little free plug for newcastle huh everybody collect on that yeah so no, I think there's a lot of things and also we got to start looking at negotiating. You know if, if it gets to that point, if we don't get to that point, forget about everything we're saying well, you know we have been.
Speaker 3:Yeah, I, I'm sure you have been too, but I'm seeing more of it. Yeah, not hey, 10 offers, pick one. Yeah, no, it's more like, hey, we got one yeah, yeah, or two we might get two, yeah, and then what? And then the owner says, well, if they can come to this and do this, then we're fine.
Speaker 1:That's called I think it's called negotiation yeah, and don't hold out for cash anymore either no, no because we used to hold out for cash for a while. No, there's not as much of that going on.
Speaker 3:Yeah, that's kind of nope, not as much, not as much it's happening, but not as much me other day but, it's getting rarer.
Speaker 1:Yeah, it's rarer, it's exactly rarer. Yeah, like a steak, all right, yep. So what else do you have? There's 414 homes in the market today in. Rose.
Speaker 3:County yeah right, yeah over four, right, yeah, over 400.
Speaker 1:And it's staying over four.
Speaker 3:Yeah it. So that's a sign Again, that slight change, it's going up a little bit. It's very slight.
Speaker 1:We were in the 200s for a long time. We were the high 200s for a long time, yeah, and now we're at 414. And I think it's going to creep up a little bit more, which is nice. It gives buyers choices too.
Speaker 3:That's the other thing that's nice about that. Yeah, yeah, but it's not like it's months or anything, guys, absolutely.
Speaker 1:So you know what's interesting. What do you think about the Fed rate, I mean?
Speaker 3:I think it's one of the most unpredictable things you could ever do, because it's become politicized.
Speaker 2:I just think it's ridiculous. Yeah, to be honest, it is politicized.
Speaker 3:We're in, so I think it has something to do with it. A lot of these predictions are saying that they're going to come down a little bit yet.
Speaker 1:Yeah, and that's because of the election year. Because the election year Probably I'm guessing it's because of that. At least somebody said there's some kind of election going on. I don't know if anybody's heard anything about that.
Speaker 3:I'm staying out of it. Yeah, yeah, yeah.
Speaker 1:We're not touching on this show. So many things to say oh, yeah, um, but this was interesting. There's it says when will the federal reserve cut the fed funds rate? So there's probably about I'd say, 25 different um people or companies on here predicting the future.
Speaker 3:A majority of them are saying september, yeah so well you know it's something you got to remember about the federal reserve. It's not federal it's not federal.
Speaker 1:What is it? It's a good name. It's a really good name. No, we've been using that for a while private company.
Speaker 3:Right, that used the word federal, so let's just just remember that that is. It's the 10-year treasury we got at watch.
Speaker 1:Yeah, the 10-year treasury is what that's, that's what has to do with our rates.
Speaker 3:Yes, exactly, absolutely so federal reserve is not federal. Okay, it's not. Yeah, it's the, the banking. It's spelled a lot like federal, though it's spelled the same is the f silent. They got naming rights oh, okay that's good, that's like the wells fargo center, which is no longer going to be the wells. It's kind of the same thing oh, but no but the fed, then the federal people, then are the ones.
Speaker 3:The second line that you have there, yeah, is about the rates, yes, okay, so, and and they're all saying what, brad? What are they saying?
Speaker 1:Would you be this one here? Yeah, it just says that basically they're all saying that since September they're going to cut that rate, right, the Fed rate. So, fannie Mae, Freddie Mac. Mostly since. September MBA, morgan Stanley. There's a couple outliers that are saying one person said November Loser, loser, loser. It was jp morgan. Oh well, yeah, jp, don't listen to them. Um. And then bank of america and deutsch bank and lh meyer. All these other ones said december. There are three that said 2025. Oh, that's really a cop.
Speaker 3:Yeah, isn't that something yeah, yeah, and then I think september could be it I mean it looks like september could be.
Speaker 1:Yeah, it looks like, because it's right before the election. Yeah, I'm sorry, guys, I gotta, we don't go, but it doesn't matter what side of the aisle you're on.
Speaker 3:It's just an election year and things happen in election years. Absolutely, it's slight, it doesn't affect our market too drastically.
Speaker 1:I just saw a number on Keeping Current Matters that the interest rate, the Fed rate, is lowered almost. It was eight out of 12 elections it's lowered during the election year During the election year.
Speaker 3:Yeah, and it was the same thing. For House it doesn't matter. Yeah, exactly, it's just the way. It is Same thing with what you say.
Speaker 1:Same thing with Houses. There was a number for homes for home sales. Believe it or not, the home sales actually shrink before an election. And go way up afterwards.
Speaker 3:Yeah, it's like the January after or something. Yeah, I think I saw that. So weird, so weird. It is weird, anything else? Well, no, it just means that there's people manipulating things. Oh, there's always people manipulating, so you just got to remember that, because it's hard to predict. Yeah, absolutely, we don't know what that? Yeah, yeah, you still buy and sell a house when you have to.
Speaker 2:Yeah.
Speaker 3:I have a question.
Speaker 2:Oh, go ahead. All right, so you know how you know the mortgage company. The loans get sold from one company to another company, Secondary, Like when you're done paying your mortgage, who, who are you supposed to get the? The paper that says, okay, this mortgage is all paid, all cleared, so you can go to the deed house or whatever you go?
Speaker 1:You get.
Speaker 2:You're looking for a satisfaction note is what it is Like a sat piece is what they call it. Make sure you get it actually. Yeah, you always want to make sure you get it and I'll tell you it's interesting because there's been many times where it's a good question.
Speaker 1:Cause, there's many times where banks will go from bank to bank to bank and it can be sometimes hard and you already paid your mortgage but they didn't record it that you paid your mortgage or they didn't do the satisfaction piece that they're supposed to give you. It can be interesting, oh, yeah, it can be very interesting, but it typically nine out of 10 times it works out fine, yeah, but you get it from the current one.
Speaker 3:Is that what the question was?
Speaker 2:Yeah, you get it from the current one, your current servicer.
Speaker 3:Whoever has it is the one you get it from.
Speaker 2:Got it, got it. Not that I'm going to pay my loan soon, but I was just curious about that it goes off the loan number.
Speaker 3:Yeah.
Speaker 2:Oh, got it. Got it, that's true, but yeah, there are some.
Speaker 1:Yeah, because there's times where that I've had situations where we went to sell a property and there's a lien that's still there and it states you know what I mean and these are names from how long ago or.
Speaker 2:Meridian. You know what I mean so you.
Speaker 1:it can happen, it can. Yeah. Now, typically, your title company can do enough searching and digging that they can find it.
Speaker 3:Well, the other thing, too, is a home equity line of credit. Same thing, yeah, when you, when you close out a home equity line of credit, they're characteristic for not recording it for some reason. Make sure you get that satisfaction too.
Speaker 1:Saying that's close Same thing, absolutely, absolutely. So before we end here, I gave you some of these last time. Did you get a chance to try any of them? Dude, they're great. I mean, it's a great product.
Speaker 1:It is a great product, and you know what I got to tell you. I've been using this now for probably about three months. We take it pretty much every day, like he needs it. Yeah, exactly, it is pretty amazing. It's called Magic Mind, yeah, and you know what I like about it? I just feel like I can think a little bit better. Yeah, I'm a little bit more open-minded about it, and just have energy after I drink my coffee. I'm not like down in the dumps or whatever, so I just like it. What's really cool? It doesn't have melatonin. It doesn't have any like weird stuff. It has basically all herbs, things like that, and I'm going to be trying that soon too, so they're going to send me.
Speaker 2:Yeah, help you sleep.
Speaker 1:Yeah, it's a non-addictive. It's like it goes through all the different things that it doesn't have Cause there's so many times when there's a sleep type thing it has. Lavender's good, and some of the stuff that's in this is in there too. Actually, I would like to try that. Yeah, I just got some. I ordered some Can.
Speaker 3:I swipe another one of those for me.
Speaker 1:Yeah, you can definitely swipe another one for me. Yeah, I actually like these, they taste good. They are good. They are good. They taste really good. It's a very pineapple-y kind of it is. That's a good want to try it. There's a new thing now If you do the link that we have, you get three of them for free, shipped to your house. Nice, yeah, three for free, shipped to your house.
Speaker 1:There you go, Hugo Three for each of your kids and your wife, I mean, come on, we can get you all set up. Yeah, that's right. So, with that being said, anything else you can think of real estate?
Speaker 3:wise Did you want to talk multi-generation.
Speaker 1:Absolutely. Yeah, we got time. We got a little time. Yeah, absolutely.
Speaker 3:Well, you know, multi-generate. I'm so glad you sent that to me, brad, it's real and now let's talk about when we say multi-generational.
Speaker 2:What is that?
Speaker 3:What is that? We know what we. But then a family coming back together. It'd be the dad, the grandparents and the kids, maybe, and and there are maybe two or three generations of the same family living under the same roof.
Speaker 1:Is this because of inventory?
Speaker 3:It's an inventory thing and, plus, it's a healthcare thing. Okay, there's a couple of reasons why people are doing it, and it's just that they like spending time together. It's, it's built in babysitting. Maybe there's a lot of other countries and cultures do this, always have yes, always have done. Why don't we? Well, I think we're getting back, we're getting to it. I like that. You know what? I have a small little personal, pete Heimstat, on this.
Speaker 2:Oh wow.
Speaker 3:And up to 2019, I sold one multi-generational property. Wow, and that's from 1984 to 2019. And in 2019, I'd sold seven.
Speaker 2:Whoa.
Speaker 3:And I haven't seen to how many I've done since then. There's been several where people want to have a couple of chickens, a couple of acres. They want a couple of buildings on the property so you got.
Speaker 1:You got a little land, then obviously a little homesteading or a little gardening, yeah, that seems to be the people that I'm finding.
Speaker 3:But there's other things. Like I saw the article, you can put little little, you know um 80 use, which is an um accessory dwelling unit, uh, on the property and connected to the house. So there's lots of things that you can do. Put in a finish a basement depends on the township. It depends on the township. Well, you got to check all that and that's.
Speaker 1:that's another place that I think the townships and municipalities can relax a little bit. Yeah, I think what they're worried about is that it becomes a rental, because you know, eventually, eventually, that's what I'm saying.
Speaker 1:So that's the one thing. But I know for a for a while. I know this for a fact when I'm we, when I did Greth homes and I did new construction, a lot of municipalities were very, very picky about if you were doing a second living in your basement, and a lot of times it was for an in-law or somebody that just didn't need to be on their own anymore, couldn't be on their own. They were going to be in the walkout basement area. We were not allowed to put on the plans that it was a kitchenette. So what we would do is we'd end up not putting it as a kitchenette, we'd put it as like a bar. A bar, yeah, with a stove. Well, no, we couldn't put the stove in. That changed everything.
Speaker 2:But we would do.
Speaker 1:But what was weird, somehow a 220 line would end up in the bar for a stove. Well, for a future stove.
Speaker 3:Right, does a tap unit?
Speaker 1:Yeah, I don't think you're using 220. But no, but that's the thing we have to. You have to make sure you're okay to do it, but I think that's a place we could definitely go back to doing that, you know, because the cost of putting a parent or a loved one into an assisted living is astronomical.
Speaker 3:Oh yeah, it could be $8,000, $10,000 a month, and that's what's going on, brad. Yeah, I mean, it'd be so much better for the generations to come together and take care of each other, yeah, and spend that kind of freaking money Now, no offense to the people who are doing that, because it's just. You will agree, though, with me, if you are doing that, that it's expensive, it's very expensive, and so some people well, we just don't.
Speaker 1:Do you know what the percentages of home styles in Berks County is? I bet two stories is like 90%. It's 80% of colonials Unbelievable 80%.
Speaker 3:Yeah, yeah, pretty cool.
Speaker 1:Yeah, that's amazing. Pretty cool to know.
Speaker 3:But that's a shortage of ranchers and other stuff.
Speaker 1:Oh my God, yeah, Especially with an aging population. I want to keep watching that trend.
Speaker 3:Let's watch it, because I wish I should have. You know I did seven that one year, but then there's been a couple since, but not that many, not that many, no, but it's, it's becoming more popular again.
Speaker 1:Well, here's the thing as as as inventory gets lesser and less, less and less, we have to be creative. Yeah, we do, we have to be creative. We got to come up with something.
Speaker 2:So something. So you know, people have to live somewhere. Yeah, you know. So that that's probably what's going to. Did you have another question? You?
Speaker 3:go. No, no, no. I was asking if they were the amish from the amish, those people that you just sell, hey they got it down.
Speaker 1:They do have it down. They don't pay taxes. Yeah, I want to be, amish.
Speaker 3:Yeah, so do I yeah exactly they got it down, man. Yeah, the grid went out.
Speaker 1:I mean they'd be fine the metal wheels got to go go though that's a little rough on your butt when you're driving. Can you imagine, on metal wheels? Geez, unbelievable. Oh, my goodness. All right, well, it went south, of course like it always does. Yeah, every time we thank you for coming.
Speaker 1:Thank you, brother, I'm looking forward to you being here on the 19th. We'll do that show, which will be a fun time. We're going to do a show actually before that too, like we always do. Okay, and we are here every Thursday at 7 pm, whether you like it or not, and Pete's here once a month whether you like that or not, that's right.
Speaker 1:That's about it, all right. There you go. So make sure you Facebook, instagram, all the places that you can find social media we are there, we're on Spotify, we're on Apple Tunes, we're on everything. So thanks for watching us again on 7 pm on a Thursday and we will see you next week with some more awesome guests, all right.
