The Jason Theory
Jason Stratton of KlopasStratton Team, a top 20 team in the nation with over 1.2 billion sold , sits down with weekly guests to talk about becoming successful, the real estate market, and crazy stories/people we run into. Visit www.klopasstratton.com to see more!
The Jason Theory
S4 E3 - Real Estate Realities - not reality TV: Navigating Market Changes and Personal Growth
A journey through personal grief shapes our lens in real estate, reminding us of the impact life has on our work. We discuss the nuances of today’s seller's market, the emotional connection to clients, and the essential lessons derived from loss.
• Exploring how grief informs personal and professional growth
• The influence of a seller's market on buyer strategies
• Crucial mindset shifts & the "five P's"
• Impactful reflections on loss and its effect on relationships
• Emphasizing the importance of compassion in client interactions
• Navigating market demands through educated strategies
• The necessity of prioritizing family time over work obligations
• Real estate strategies addressing the current competitive landscape
Check out our entire episode to gain insights into both navigating the market and life’s challenges with grace!
We're not going to have a seller's market for we're not going to have a buyer's market for another four years minimum, oh yeah, Minimum. We will not have one. It's going to be sellers for the next four years.
Speaker 3:All right, let's see there's no permits pulled.
Speaker 1:Go look at the permits.
Speaker 3:There's no permits.
Speaker 1:Yeah, you're on the 05 and 06, there's no permits. Pulled there all the bullshit to get a permit. You may have something Like if they actually want housing, they could eliminate the 14 people that have to look at your plans.
Speaker 3:What about the existing?
Speaker 1:What's the five Ps? Do you remember it?
Speaker 4:Proper preparation prevents poor performance.
Speaker 1:There you go. It doesn't matter how much money we get, if we don't close, it's no money, right? So no clothes is no money. I'm everything that I am because of my dad's death, and I wouldn't be as successful without his death. Welcome to the jason theory. This is um. We are in season four and this is going to be our first four-man podcast. This is we're going to title this the text. What'd you say? It was the group text. This is we're going to title this the text. Would you say it was the group text podcast, but we're going to keep it. Um. Nc 70. That's worse than r, right? Yeah?
Speaker 3:oh, we'll keep it r pg-13. Yeah, that's a good one pg-13.
Speaker 1:Everyone will keep their shirts on, all right. So, listen, I have a bunch of topics in my head. We're going to see what we can hit, but I I want to start off with our first. I want to start off with like a little bit of a harder topic and, just because it's a new year and stuff like that, I also want to give our condolences to our Kathy Holbrook and the Matt Laracy team and uh and her passing, and that's what I want to start with. Uh, because when I originally started this podcast, it was about how my father passed and kind of like lessons and this and that and mindset stuff. So I'm going to take it back to that a little bit and I think all of us I mean my father passed years ago, so I can still recall that stuff. But but last year, the three of you guys and you this year, because you were close to katherine had all lost people. You lost a best friend, you lost a friend and a coworker and you lost a young man who you kind of helped with too.
Speaker 4:Yeah, that we knew through basketball.
Speaker 1:So let's just talk about those experiences and what changes that have gone through your head, what mindset changes that have gone through your head, what mindset and because of those tragedies, the silver lining is how we become better people from those tragedies and take some good out of it. What do you see yourself in 2025? Taking from I'll start with you, nick taking from Catherine's passing, and how are you applying that? What's the good you're getting?
Speaker 3:out of that. So that week that happened with Catherine was, um, uh, my wife's aunt was also diagnosed with a pancreatic cancer type of thing and so she ended up going into hospice and stuff and we started getting together with family a lot. So the family would come over either our house or someone's house and I stopped everyone. I told one of the cousins, I said Alex. I said look how many, look how often we see each other throughout the year. Before all this stuff happened, we've seen each other five times in 10 days. We make time for it. Now how come we can't make time for it during the year? So he's like you're right. And so the biggest thing is, life can change in a flash, so we don't know when this or that is going to happen, this is, or this or that is going to happen. So I think, kind of sitting back and making time for yourself, like me specifically, or for family or for just friends and stuff like that, it just I think it's you got to think about that stuff more often.
Speaker 1:Cause it's easy to get caught up in our work, right, because it's it's a timeless work. It's always on, and sometimes it's hard to step back and say I'm not going to do this, this or this. Well, it just it's a shame. And it's a shame that it takes sometimes tragedy to get people together that you know you're missing somebody, right, because that tragedy means that someone that's in that group isn't there.
Speaker 3:So that's so, that's. The other thing is is is all that stuff is great when I said that to everybody, but I want to make sure it keeps continue to get done right, cause it's easy, kind of like with anything that changes in with work or what like. Especially let's talk about august 17th stuff everyone's freaking out. Now it's a kind of balance. So same thing with this. Everyone's freaking out, this is going on a death in the family or someone's sick or whatever we all get together, but then when all that stuff goes away, it just kind of fizzles away as well. So that doesn't continue you know.
Speaker 1:How are you like? How are you going to hold yourself accountable to make sure that happens?
Speaker 3:well, there was obviously group text made with other cousins and all that stuff that you know, my wife's on and everybody else is on and friends are on for katherine's passing and stuff, and we're just going to try to just just get together more often and kind of keep uh you know together and because you just never know when shit's going to change, you just don't john you lost your best friend.
Speaker 2:Yeah, it's. Uh, I mean katherine holbrook's death was. I mean, nick was close, known, known her a lot longer, but going to that was tough because it brought me back to the emotions that I had for my friend and seeing that situation and they're both young, to Nick's point it's like you don't want to take anything for granted. You always talk about you, everybody talk about making plans with people getting together and it's always the organizing of it, and you just want to make sure you don't always say, hey, we'll do it next week or next month, next year. Just try to live in the moment and try to do as much as you can with the people around you that you enjoy being with. But it's hard, man. I mean you try to look at things differently when you lose somebody and we get consumed with work. It's it's, it's that's the bad thing. We get our obligations need to kind of be reshuffled to say, hey, you know what, I got a client, I got to do something, but I also have an important family event, something that I should prioritize.
Speaker 1:You know, you still got your parents around or cousins, or like you were saying, do you see yourself prioritizing that a little bit more now, like you are? Do you see yourself kind of consciously yeah, it's been a little bit longer of a space for your friends, yeah it's been like almost a year and a half.
Speaker 2:But you know I talk to his wife more often. I try to, you know, be as a. It's tough because it's like when you go back to that house and he's not there, it it hurts me to be there. So you know, sometimes I unfortunately avoid certain situations just because of my own difficulty going through things like that.
Speaker 2:But you know, prioritizing things that's now just involving more team members in the real estate side and making a little bit less money on the deal and having a little bit more peace of mind to do what makes you happy, whether it's going to visit family friends, going out with people. So I mean we all get stuck in this work cycle and chasing deals and doing stuff, but that's all secondary to your, your own wellbeing and you know, being around the people, that I mean you had told me the story of your dad's passing and how quickly and randomly and suddenly that happened. So I feel like every time I talk to my parents I was like, don't take it for granted, you don't know what can happen, and it scares the shit out of me.
Speaker 4:I finally asked Jason about the back story of his father and when he told me I never really asked him because I'm sure he would have told me when the time was right, but one day we talked about it how important it is now for him to go to all his kids' basketball games, etc.
Speaker 4:The one that was shocking is when my wife called me. There was a young man that played hoops with my son during AAU. Because of his proximity to us, we would pick him up. He became a good kid and then suddenly at 19, he partied one night, overdosed Boom. That happened to my 19-year-old nephew as well.
Speaker 4:And then two weeks later you get the Catherine thing. That was really hard. I had just seen her post her belly picture on Facebook. I sent her a baby gift. She said thank you, it's so great that so many industry friends are supporting me. And it's always crazy.
Speaker 4:I tell my wife like wow, you act a certain way out in public. You know, and I can't tell you. Everybody was best friends with Catherine, but it impacted them because she was such a positive energy that you couldn't help but to gravitate towards that energy because she was a good person, she was fun. That one was really hard as well on me, just because it's supposed to be a great day in her life. And she didn't go into the hospital that day thinking there would be all this, all this Going to the hospital that day, thinking there would be all this yeah, no, tomorrow and Jason had said to me, without getting too heavy, that death has no prejudice.
Speaker 4:So I was thinking back about all these situations. And then, even last Saturday I don't know if you guys saw my Facebook post, but I was waiting for my 145. I did. I saw it, yeah, and you know there was a street light that had a short in it and I hear this screaming and this dog yelping and it basically had gotten electrocuted to death. I ran out there to help this kid and so I'm like even that day, like that kid didn't walk his dog, thinking shit, this will be it for this guy. So all that stuff. I just had something like go down like with work just now and I can just tell everyone's heated up over email and I'm like this is so minor guys it is something you guys get riled up about yeah, it's so easy to fix.
Speaker 1:You know just I think I think that's the silver lining, I think think the the, the ability to be grateful and to have gratitude, and then everything else is kind of like, everything else kind of cascades off. That right Like your attitude changes your, your up and down changes, everything changes. Just like you wake up and you, you're just like I'm just happy to be alive. Yeah, you know you see your children and I'm just like you know you see your children, I'm just like your kids are in Madison or they're in Europe, and you know you're like, just like this is what real like listen, everyone's going to get pissed off. That's just the truth. We're not robots.
Speaker 1:We're not that Dalai Lama. But like I just think that you know, like when I, when you, I think there's such a difference, like when you're talking to people who like get on the phone, you know F, this, f, this, then this, then this, then this. Like whenever I have those people on the phone, I'm just always like what the fuck is wrong with this person. I'm like, bro, just calm down, like everything will.
Speaker 1:And I think, on the client basis, to kind of shift to real estate, I think when you have that mentality with your clients, your clients remain calm, sure, right. If you're not frantic, if you're, if you think everything sucks, if you're not grateful for X, y and Z, and you have this, this bent up stuff, I think everything else kind of just just auras off of you and it everyone is in a pissed off mood. Like, if everyone could just sit back and be like hey man, it's just really good that we're alive, you're healthy, you're happy, whoever's alive in your family is healthy and happy. And if you could just sit back and just be grateful for that, think of how much different the world would be versus like bitching about X, y and Z.
Speaker 4:Yeah, I want to channel off that thought because I think about eight to 10 days ago, I had a really frustrating, you know, set of showings with people where everyone's really nitpicky and I said, jason, is this the new norm in the industry where buyers, agents trying to show their worth when you have a place listed, do they just come in and want to just pick everything apart? And versus being like the opposite of that, we're saying, wow, they did a lot of great updates to this house, we just need to change out the counters at this time, or something. Versus like, why wouldn't they do something like that? You know, and it just sort of sets a negative tone in the the.
Speaker 1:Yeah, and I think that's we can definitely cause. We talked about that on the phone. We could definitely go into that. Like what? And not only the buyer's agents, but how many, how many times? Like selling agents. So the agents that are listening to this. How many times you go into a place with a client and the minute you go in there, the selling agents like, hey, we need to. You know, the selling agents like, oh well, you, you can do this and you can do this, and you can do this and you can change this, you can change this. Hey, the buyer may like it the way it is. And by you saying all of this stuff, you've just said, oh, you shouldn't buy this. Like, let the let the buyer, let the buyer breathe, let him connect or her connect to the house and then supplement that. But man, we I mean I could say names right now and there's some agents that are just so in your face off the bat. It's like back up.
Speaker 2:It's almost sometimes so discouraging when you get a call after you put a request in via showing time or text the agent, whatever it is. I get a phone call and they'll ask like, oh, what's the buyer looking for? And just trying to get a little more info. And then they start disclosing oh, this place needs a lot of work. Oh, the tenant just moved out and it's dirty. I'm like, are you suggesting I just don't even show it? Clearly there's a description. Clearly there's photos. We are going in good faith that there's something about it. You don't know, my client might be a fixer-upper.
Speaker 1:Well, I'm going to tell you why you get that phone call. Because 90 out of 100 agents suck and they don't want to show up if they have to be there. And, on top of it, they don't even look at the pictures. The reason you're getting that phone call is because, like yesterday, I got a request for Maplewood. I wish I had enough time to open it up. I'm going to tell you what it says 2332 Maplewood Look it up, people in TV land. And it literally says on there in caps AGENTS, DO YOUR JOB, read the description. This is so. You cannot click the show to show without reading me lambasting people who are you're putting this in the showing.
Speaker 1:It's in the showing instructions because obviously people are so inept so I, before you can get to it, it says this is a land deal. People are calling me up on a teardown and asking me like, hey, I like we'd like to do a showing and I'm like, well, I'm like there's no showings. Like why is there no showings? I'm like, did you not read the showing instructions?
Speaker 2:in my.
Speaker 1:They're texting me. You can't get to my text without getting through the stuff, so they're calling you because they deal. They don't know you right, they're dealing with the 98 of the other people that when their clients say I want, want to see it, they don't even look at it, they just schedule it For sure.
Speaker 2:I mean, I at least do this. I know you guys do it. When a client's telling me they want to see something, I try to pre-qualify the property. I at least look to see them. Like hey, the lender said you shouldn't go above X amount in HOAs. You said you don't want to be in a guarding unit, but you didn't notice it's G for guarding. You try to do a little homework before you just go schedule something People don't do, that Sure we've all walked into a place where we're like, oh God, this caught everybody off guard.
Speaker 2:But at least do a little bit upfront work before you just start scheduling stuff.
Speaker 3:Here's the other thing as far as showing instructions are concerned and know I'm going to go with this one is well, they don't look is sometimes these agents don't even use the mls because their websites of the brokerages are at sometimes have access to do that stuff, so they don't have those notes in there, they just schedule through at brokerage x's website and it they get the request like hey, can you see it? Because, let's say, john, right, he's the team leader for the year and he's got the stats going to his name. It says please call nick um for showings.
Speaker 1:It doesn't say schedule through showing etc I'm trying to figure out why it happens because I say one of the reasons, say it'll say do not call sophia, she has no idea about this property, they don't look at it's nick's, nick's 100.
Speaker 2:Right, there's big companies. I don't care. Let's just say them whether it be red fin, whether it be compass, they have their own internal sites and instead of going on the MLS and seeing that it says do not contact you, can say companies, this is a safe zone. Yeah, oh, yeah, okay.
Speaker 2:So, instead of going on the MLS and clearly seeing that. Do not contact me. Although I'm the team lead for the year, next year or whatever it is, clearly I'm not the one with the relationship with the seller and I'm not handling the showings, but they don't do any of it. Yeah, it doesn't. And they'll even send you the offer and it's like read the broker remarks, read the instructions and you're right. 98% of the agents out there just are just stupid.
Speaker 4:But they'll sort of also bounces to my clients that want these elaborate descriptions and I'm like I'm trying to tell you no one reads them.
Speaker 1:No one reads them, no one. But if they're concise, I had one client that was like oh, I ran my house through ChatGPT, tell me what you think and I read it. I'm like this is a fucking novella.
Speaker 2:No one cares no one read it.
Speaker 4:No one cares, don't look at the price, the taxes, maybe, yeah, the pictures.
Speaker 3:Just put the important stuff up front. How many times have you been like is there a washer and dryer in this unit? And it's not there. Put it up in the front. Yeah, dude, I'm just like the first couple sentences put the most important stuff and you want to put some fluff after that's fine.
Speaker 1:Who's the person that writes the poems? There's a couple people that write, a lot of people that write poems. Oh yeah, rhymes, who I love, mario. Yeah, mario's Greco's all caps, is he?
Speaker 2:always yeah, it's his way of yelling. It is description, right, that's what I see. Cap line I was chill man. Yeah, no, no, but no, I like I have, I have a client.
Speaker 1:I have a client that writes in all caps and then his footnote on his signatures. Really blind, the caps are me not yelling so I can read my own emails.
Speaker 1:That's great. Size 25 yeah, that's great. What did you guys find in um? What was most I mean obviously inventory, but what's most challenging in 24 for you guys in 2024, and what adjustments have you made going into? We're in february now, right, so we have a decent grasp, but it's a crazy ass market. Uh, what adjustments have you made going into it? We're in February now, right, so we have a decent grasp, but it's a crazy-ass market. What adjustments have you made, nick?
Speaker 3:No adjustments. I mean, honestly, it feels kind of the same still. I'm still running around with buyers getting outbid because I'm doing a little bit of suburbs, a little bit of city, so it's kind of the same still.
Speaker 4:Have you been getting?
Speaker 3:outbid already.
Speaker 4:Yes.
Speaker 3:January, happy New Year. And it was like happy, name your kid after the seller if you want to get the house, type of thing. So that was the biggest thing. It happened right off the bat. You need blood.
Speaker 1:The city's bad. You need to carve out a kidney Bloodthroat. How?
Speaker 3:much more creative. Can the offers get? How many appraisal capadendums and wave this and wave that?
Speaker 4:At this point it's like then you get the clients who are like what?
Speaker 1:are the comps if I pay this, we're going to get into that.
Speaker 3:Yeah, that's a good one too, but it's like what are the comps if I pay this amount of money over asking? It's like I always call it an emotional comp.
Speaker 4:That's it, Well, that was one thing that Larissi had talked about. He's like if you see some for $5, just pretend it's $5.30.
Speaker 1:Yeah, I like that Mentally you won't.
Speaker 4:And I love some of the stuff he says Because he said when you have to pay it, then you won't be so mad that you had to pay it. But I always tell people, people, if it's 30 over and you're, renting at 3 000 a month.
Speaker 1:You know it's the same, yeah, but the market. So I had discussion with sophia yesterday. We were talking and she goes well, you know there's no comps. It's up here like the market's crazy. I said, sophia, just remember, comps are looking in the past. So if you, if something's 500 and you pay 550, that's the market moving forward. Correct, the market is $550. The person down the street is not going to list their place. Oh, you know what? In November this was $500. Even though this just sold for $530, I'm going to go $500. No, that's the market.
Speaker 2:It's like you're right, like the comps are the cash and if there's eight, offers up to that spot.
Speaker 1:you know that that market is thick. It's not an air market, it's not like it's a one-time ping and then all of a sudden it's a gap in demand. The demand is at $550, $540, $545, $530, $535, $520.
Speaker 2:That means that's the market Demand set the comps and that's what I tell clients. I think Nick and I were talking about it one day and I'm like doing these elaborate CMAs I go, they don't mean anything. It's like to Laris's point and what you were saying the asking price is not the real price. No, you tack on 25, 30 K to it.
Speaker 1:That's the new comp. Let's call it based on all demand.
Speaker 2:And again, you go in the summer, you go in the winter you can get the same place for 20,000, maybe 15,000 less.
Speaker 1:You know, if it's as long as it's not the winter of 2024 to 2025. Yeah, it was a busy winter. I think.
Speaker 3:Another adjustment is on this whole lawsuit. The NAR thing happened. It was somewhat slower, so now we're starting to feel like the wrath of brokers that don't know shit about what-.
Speaker 1:Well, dude, you have NAR and the election. I mean you gotta stop.
Speaker 3:Yeah, but what I'm trying to get at is the whole thing about dealing with sellers that didn't want to pay or do whatever. We had one in Oswego Made an offer.
Speaker 4:You're going out to.
Speaker 3:Oswego, I have to man.
Speaker 1:They were looking. Did you have a plane in football?
Speaker 2:We did two deals on us. It's by.
Speaker 4:Aurora bro, we're still going to open a new office out there West.
Speaker 3:West.
Speaker 1:Passport. It's where Jesus lost his shoes Did you stop in Aurora. The mall it's past Aurora.
Speaker 3:It's nine miles past it.
Speaker 1:It's like Batavia.
Speaker 3:Yeah, it's far, yeah, man 400K gets you a lot out there, better we put a lot out there. Yeah, better, yeah. So we put an offer out there and the broker didn't get proper training, wasn't educated properly on how this works, and we made the offer. And she goes Nick, it was $4.35. And he's like Mike, my buyer. So we made the offer. He said, hey, 2. This debt and the other she goes. My seller's only paying two percent. Okay, great, then 438. Then it's the same. You net the same 429. She goes nick, you don't understand, he's only paying two percent. I said it doesn't matter, you're still netting. So that night I sent a long ass email and I set different equations 438 at 438 at two and a half percent is 429. 460 at six and a half percent, still 4.29. It's netting the same thing. It doesn't matter what he's thinking he's going to pay, he's still netting the same. And he goes seller needs to think about it. And we ended up walking.
Speaker 4:Funny you bring that up because I feel like the most simple math you'll have to do for people moving forward, because I just had one this weekend where, or this past week, where my client's employer will give him 2%, so he could request that the seller only pay 1%, which means they would net more money. And I feel like I had to do the math just to tell people Because even at a full price offer, if they're paying 2 and a half versus one, he's still netting more money.
Speaker 1:He's netting over my deal. This is the problem with the CTU. You hear that, Brandon Johnson.
Speaker 3:That's another adjustment, did you?
Speaker 2:appeal his taxes for him. He texted me that one day. I'm like why did you look at Mayor Johnson's taxes?
Speaker 3:Jason has JB's toilets around the so that's the problem educating brokers that maybe didn't get proper training during this, because now you know, especially in burbs when you're getting people waiting in line to get into places and you're making offers left and right you walked because you were frustrated, or they just never really or the seller was well, or the seller walked in Well.
Speaker 3:The seller was like no, he's only paying 2% and then he walked. Sorry, let me rephrase that he ended up walking because they're being wishy-washy and this is the second time they've been wishy-washy Because they've been under contract before made an offer, kind of walked from it again and then, before we got into heated discussions about negotiations, then we came back to it because it was still sitting on the market and then, just of them, the seller staying and sleeping on it for the night. He's like I just feel bad. I feel like something's going to happen with inspection. I'm going to ask for something. I'm going to nickel and dime you.
Speaker 1:Not only that, but they're probably not going to move out.
Speaker 3:Yeah, who knows, he had this weird uncomfortable feeling, so he's like I'm just going to move with 25 with.
Speaker 4:well, I started to change this in 24 is that I'm not going to take on other people's stress. You know, sometimes you feel like you're chasing after people to get stuff signed timely to. They don't want to do work on their place that will net them a faster sale. I don't really push it as hard as I used to because I'm like, if you don't want to do some of these things, that would benefit you. Why am I going to get so stressed out over it?
Speaker 1:You sound like me with my kids. Yeah, exactly, but it is sort of true they are.
Speaker 4:Our clients are our kids and I have to go back to that thing where I listen to people talk and I have to just have that tune out filter. I don't want to react to everything that I hear out there, because it's really just nauseating.
Speaker 1:That's a positive view. No it is my change at 25 is just not to listen to people because they're all stupid.
Speaker 4:No, I'm saying you can listen to them, you just don't respond to them. You have to internalize it because otherwise you'll be battling with people every day.
Speaker 1:Oh man and yourself 25,. What's different for you?
Speaker 2:Or what are you implementing? That's different. So since 24, we all had to adjust to the whole buyer agreements, showing agreements. All that I think what's made it more beneficial is I'm spending my time with the right people now with the right buyers, people now with the right buyers, because I'm having that candid conversation about what a buyer agreement entails, why we're signing it, what I'm going to do to help you. It gives me that consultation that people used to do in person sit down, have a coffee. You're doing it over the phone now. You're explaining your values. So that transcends into showings that are equating to quicker offers, more educated clients, and I feel like I'm spending my time better If that car lawsuit didn't happen, dude that is, I have not thought about that and you are.
Speaker 1:that's just dead on.
Speaker 2:It's just. It's just. I feel like if I'm not going to get a buyer and they're going to go work with someone else and that other agent whether it be Zillow or something I didn't have to sign something I go, that's fine Work with an unethical broker. What's that going to mean when they are writing an offer for you, are they going to guide you to the right property if they're not following the basic rules?
Speaker 1:that we all should the basic laws in the Department of Justice.
Speaker 2:So if someone doesn't go with me and doesn't want to sign it and is hesitant, at least I'm transparent, at least they know who I am, at least I give them some informative information. And if they go work with someone else, it's not my loss, it's their loss.
Speaker 1:It's so crazy, because I love all my buyers right now and all my buyers. We have that conversation and I never thought of it and you're totally right. Everybody that we're working with now respects us, because if they don't, they can just go on. So, like there's, there's no, like you don't have that, like you know, you know, are they going to do like, like I'm not going to backstab this, this, this Cause, the minute they don't like it, they're like this guy's having problems with it and it was a big buyer and I was like you know what they don't want to do it. Yeah, no, sweat off my butt. Yeah, I'm gonna put my focus somewhere else. Like, how many times have you worked with people, ken, that you're like probably?
Speaker 4:not, you shed them and then you pick up three better clients. Yeah, because the energy is so bad. The energy is bad, yeah.
Speaker 2:Yeah, I agree. Imagine if you put a contract in front of somebody that was like just the same way, like we hire people to when we do services, like you're doing something in your home, and they want you to sign something. I get it. I respect you, you want to get paid. I have to fill something out. I have to read the language. If there's something that I don't like, I ask for clarification. Some people just feel like signing something is like the amount of times I have to say this does not mean you need to buy a property. I've literally had that conversation. Does it mean I have to buy something? I go, no.
Speaker 4:Yes, People are.
Speaker 2:so yes, but people are so like, blinded by a contract that you know many times they go. I don't want you to pay me. Our goal of you signing is this is not to pay me. Our goal is to negotiate for the seller to do it At minimum. If they don't pay, why would we want to even work with them? They're going to be a nightmare during the whole process. If they're not willing to pay me to advocate for you, why should we even see that property? Are they going to give you any credits if the furnace isn't working, if the oil coil is?
Speaker 1:failing Are they?
Speaker 2:No. So it's like those aren't the people we want to collaborate with, Because if you're putting it on the MLS, you're putting it out to everybody who has a realtor who's showing them places.
Speaker 4:You should compensate, and I'm going down a different rabbit hole now, but don't use the MLS Do for sale by owner if you're not going to pay me, and some people will just sign it without a mega debrief because they trust you?
Speaker 1:Yeah, absolutely. I'll tell you what I thought was going to be. My biggest problem is my lawyer clients man. They sign it in a minute, no problems. It's the opposite.
Speaker 4:Because they have retention letters they haven't they have. They have the same letters, yeah they can't do, they cannot get it they cannot do like an attorney in real like.
Speaker 1:If they're by the letter of the law, they have to have that agreement with their clients their engagement engagement letter this is what I'm doing for you.
Speaker 1:This, this, this, this is my fee. Yeah, yeah, like I had a. I like the one with Mantis. I'm like do you send an engagement letter? Do people know what you're charging? Like, yeah, I sent an email this, this, but I had attorneys that didn't even send engagement letters and then, all of a sudden, we get to the closing. We'll get the closing table, dude, and it was a shit show, his fee. And I'm like, dude, why don't you tell people from like, just be transparent from the beginning. This is what I charge.
Speaker 2:Cause the amount of times sometimes when we, when we refer attorneys, like they ask me, like, is this a retainer, what if we don't close? You got to explain it, so you're right.
Speaker 1:Yeah, my clients are like what's he charged? I'm like, listen, that's not my business. I never asked them what they charge. I go go. That's a conversation between you and the attorney. I just give them a range just so they know it's not. I don't want to hit it, because if I say the wrong thing, I usually ask the attorney I'm always like 500 to 1500 somewhere around there.
Speaker 3:Yeah, dollar to dollar to 2000, just somewhere in there, yeah, yeah, one, yeah, point zero one for us, like with the buyer agreements, like we were freaked out because we do a lot of online leads. So, like, what are we going to do? We have these strangers sign these agreements. They don't know what they're doing and I mean it's been great so far. We've had much pushback, but it's also great on the other end. Like we were talking about is, if they don't want to sign it, then go to the next guy or go to whatever. So now we're working with more serious people.
Speaker 1:If they don spending with your aunts and your uncles and your nieces, you're spending with cousins and your family.
Speaker 2:That's where you're not spinning your wheels. Right, correct, correct, yeah. And I mean it's like if they sign it and you've never met them. I mean, we do everything in the book to make this agreement as laxed for them to back out. Meet me. What do you have to lose? You love the property, we'll sit there. You kind of interview me, I'm interviewing you in person, we look at, it works both ways.
Speaker 1:Yeah, yeah, yeah, yeah, absolutely I did what you guys did, like I, and then I brought like a couple of properties on there and and then after we met I called them up. I called you know, we got on a zoom. I'm like all right, you met me, I didn't bite you. They started laughing. I'm like do you want to continue this relationship? I'm an expert on brick veneer.
Speaker 4:Yeah.
Speaker 1:Oh gosh, Do you want to sign with me? Listen those videos do really well, I understand.
Speaker 4:I'm not going to lie, I'm not going to toot.
Speaker 2:Jason's horn. I went into a multifamily with a buyer so great. Yes, let me hear it, Let me hear it. I'm bow down to daddy Jason just started talking about the construction and the ins and outs and all of it. I was like that's his thing. Everyone has their thing. They're there, you know.
Speaker 1:Jason has too many strong points, but yeah.
Speaker 2:What were? You were with me. It was a two flat and I think it's still in the market. I think you had it overpriced. Oh no, I'm joking, it was. It was in Logan. I Need it Work. Oh yeah yeah yeah, yeah yeah, I showed it, but you were just again like within the realm of what your client wanted to do. You're like you can switch this, you can do a couple things here, but yeah, not everybody has that.
Speaker 4:The positive stuff, not like negative.
Speaker 1:Everybody that was going into that place was going into gut it. I mean it was, you know it sold fairly quickly, Got it? I mean it was, you know it sold fairly quickly, Did it? Yeah, I didn't. You were 600-ish, I thought Six and a quarter.
Speaker 4:Okay, yeah, I think what people forget though out there when you tell me these stories is that there's only so many properties within people's budgets that people have to be careful not to poo-poo everything, Because they might not see that same property come back on the market for a few months.
Speaker 1:Okay, so I'm going to say that, to ask you that then how do you tell somebody now we all see properties all the time, like the knowledge we have on properties, we can walk into a place and say this is going to sell in five days, it's going to sell in one day. This is never going to sell this, this, this in this market when it's this competitive. When you walk into a house and you know this is a steel, it's a great house, and you know your clients and you know all the inventory that's out there and you know this is the one house If they miss they're screwed. How do you convey? I'm going to tell you what I said today to somebody. But how do you convey and see what you guys think? How do you convey that to somebody without? We're not salesy people. I will tell everyone out there these are four people that are not pushy at all, but there is a time that you have to be because you know it's the right place Agreed, and then how do you convey?
Speaker 4:that I would say you got to buy this, it's a good one.
Speaker 1:You can say that I think so I'm asking if you do say that. Yeah, why wouldn't you?
Speaker 4:I say it too, but some people like I just yeah, I don't want to push them into buying junk. Yeah, this is what I tell people. Honestly, I say you should work with somebody that's successful, that's not worried about paying their next set of bills. Yeah, because they don't need money, Otherwise they won't push you into something that they're just looking to sell you something.
Speaker 4:Yeah, sell you something, yeah, yeah. And I sort of use that as my like go-to line. Like I have enough clients in business where I'm never going to pressure you, but if you see one that you know is killer, you have to just tell them let's go, yeah you know, do you ever can like say, hey, this is checking off all the boxes of what you want?
Speaker 2:what's your hesitation like? Sometimes you got to have like a coming to jesus moment with them. Like, hey, this looks like the one. It's got everything you wanted. It's in the price range in the neighborhood. Why aren't you buying this? Why aren't we putting it off?
Speaker 3:in a non-aggressive way.
Speaker 4:Well, just how you said it there. Yeah, but I think some people just realize that some people need to be fucking.
Speaker 1:Some people need to be told.
Speaker 4:I'm not.
Speaker 1:I'm not going to generalize, but I will. Everyone under like 30 does not have a gut. Like no one's had to make gut decisions in the last 20 years. Like there's no gut. Like you know we have got like a gut. Like you know. Like, well, yeah, we're in sales. Like we all work for ourselves. You're not in this industry unless you have a gut and you can listen to it and it's right 90 of the time, it just is what it is. I always tell the people like if you don't have, you can't make gut decisions. Like if you can't walk in your house, you have to tell these people like this is it I?
Speaker 3:think that's part of like the whole, like value, articulate your value, your client. Outside of being like the agent that pooh-poohs on everything that you walk around the house is they want to sometimes just kind of be directed and be like listen, I think they appreciate, I think they appreciate some of our input, versus being like the agent that needs to pay their next bill, just pushing to them. You know what I mean.
Speaker 4:I think like there's like my wife always says, there's always two ways to ask for the same question the nice way and the shitty way, right. So I think the same thing in showings right if you say to someone wow, these, these cabinets just got painted. If you drop in some new quartz on here, this will look amazing. Versus like, why wouldn't they have done that? Yeah, and maybe they're just letting the, the buyer, they're leading with that negative. Yeah, exactly, yeah, like they're just doesn't go far.
Speaker 4:No, it makes you as the selling agent, like you're already, like I don't want to do a deal with that person. They're ready to sort of ugh.
Speaker 2:It's also too like how I've had a couple clients that were like family friends, where I can't tell them exactly what to buy, but there is an element where I do tell them. I'm like you've got to also take ownership in what you're going to buy. We've looked at enough. There's things that you want. I can tell you buy this, buy that, and it's not in a by any means a selfish way. I need your money, I need you to buy it. But sometimes you're looking and looking and looking and we've all had those buyers that have been straggling us on for months and months at a time. I mean, at some point they got to take ownership and kind of understand like I could direct you so far.
Speaker 2:Yeah, but do you? You have that feeling do I feel like this is home walking into. Well, I, I had one of those.
Speaker 4:I had one of those last year where I thought it was the one because this woman could have walked to her office and walked to all the other areas she wanted and she felt it was too far west off of, like michigan avenue. But I said but this building is very upscale and I thought this was it. So when she didn't write, I was almost like, wow, like if she didn't buy this, like what the hell would she buy that? Because this was really nice and this particular building, the montgomery, has limited outdoor space yeah, this thing was on the east side of the building.
Speaker 4:Oh, so it has a panoramic skyline view and I was just like a designer owned it. I mean it was nice. And when she didn't buy that I was like I don't know if you'll find something better than this.
Speaker 1:So I just came off. I didn't matt wasn't there. One of us, one of his guys was there. Um, mickey was there, and so I just left from a house I'm unclean, like like literally an hour ago and we got in the car and he's like he looks at me, real nice guy, new client, and he goes, that one. That one didn't move me. I said, well, I'm really glad you said that. I said this will be the nicest house in Bucktown under one eight five If.
Speaker 3:Bucktown under 185 if you don't like this house.
Speaker 1:You have two choices you go to 25 or you get the hell out of bucktown, yes, but I'm sure he appreciated that.
Speaker 4:Yeah, he did, I'm sure, but but like I knew it, like this sometimes there is a spread like that we talked about that's it.
Speaker 1:The other day, that's it those are your two choices.
Speaker 4:Sometimes your one, two buyers really wants one. Six finishes correct, correct.
Speaker 3:Yeah, I think what'd you?
Speaker 4:tell me the other day, I don't know. We always talk. He's like the younger buyers that can afford up to 1-2, they think they're there.
Speaker 1:People that can afford 1-2 think that they should get a 1-6 house. It's like, bro, you're not a 1-6 house buyer.
Speaker 4:It sounds like, but he's like they want perfection at one, two, but they're really a new construction one, seven. Buyer yeah, sort of like when you told this this little thing, yeah, but, but it's the same, and he was.
Speaker 1:He's out of town, so it's the first time we're there and I'm like I took him to. I took him to three homes that are bangers and I'm like these are the three best. And then this is what the roadmap is off of this. I'm glad you see it. You don't have to buy any of these, but this is, this is the thing, that's the tone, this is it. Cause, cause he also. You got to have boots on the ground, right. You got to do reconnaissance, right. He had never been into a home. So I go.
Speaker 1:Now, when you go back to California, when you see a house, I'm going to be like, hey, that's this house, that's the same as this house, that's the same as this house. I'm like you got it. I just think that too many agents don't have that conversation. And it's interesting when you're selling a house and an agent comes in and it's a one-two house, and it's a proper one-two house, and the agent's acting like they should seal, the agent's talking to their client like they can afford a one-six house. But I didn't tell you this. I was at 1355 washington. I told one of you guys, right, you did, yeah, uh, and I went twice what I told that person deck.
Speaker 4:Yeah, I told that to me yeah, I told that to you.
Speaker 1:So we're at, we're at washington and it's a great place. It sold seven, seven and a quarter full price in two days. So, girls, I had already kind of gotten the contract together, but I'm still going to show it because you never know. So I show it. This girl's walking around very nice girl Her husband was in the other room Love this story. She goes outside to the deck and this is not me being me, and this is me being honest. She goes outside the deck and she goes, oh, she goes. I just wish this deck was like about 500 square feet. And I go, I go, me too. And she, she looks, she looks in, she goes. Right, I go, yeah, because then I can sell this for one five and make more money. Oh, that's great. And she goes well, aren't you sassy? And I go.
Speaker 4:No, I'm just being honest and you told her I am sassy. Yeah, yeah.
Speaker 1:And then at the end we were like, really like, at the end Laughing yeah, yeah, she came out and I don't even know this girl and I put my hand around. I go, I'm not that much of an asshole, are you, am I? She goes listen, I'm a doctor, I deal with assholes all day and it just took me off guard because most people are not as dry humor. Yeah, yeah yeah, like, like how many times have you said that to me when you're showing a place and you're like this is what you're asking?
Speaker 2:this is not what it is yeah, those kind of things you're on assholes, jason what it's just like somebody who wants the rooftop deck but they're getting the sandwich, the middle unit. I'm like you're a hundred thousand dollars off. Yeah, I Go up, that's what you get. It's sad to hear you get a $1.2 million buyer looking for $1.6 million because, especially if they're younger, that's an awesome budget, but their expectations are so off reality.
Speaker 1:But why aren't those agents setting expectations, Nick? Because, they're order takers. They're order takers.
Speaker 3:They listen to the client, but they don't really listen to them.
Speaker 1:But then what?
Speaker 4:are they good for?
Speaker 3:That's part of the problem.
Speaker 4:Well, this is the attitude, though, is that I got to shit on the place to show my worth, versus saying God for your budget. This place is sweet yeah exactly, so that's what should be happening.
Speaker 3:It doesn't no.
Speaker 1:But that educates the buyer.
Speaker 3:It's making your job easier.
Speaker 1:That's like me walking into a house and saying, oh, I know the house sells for one, two, and be like oh, dude, I'll get you one six. You're destined for failure.
Speaker 4:That same story you just sort of told about the deck and the lady. There was a instance last year in a house that I had where I told these people I said I have all this quoted off the floors, the cabinet painting, a couple of the tweaks that you would want to make, and I said I can get it all done for 26. And she said, well, why talk to my friends? And they said that's that's, there's no way you can get it done. I said yeah, but these are my trades. Like these are real quotes.
Speaker 1:I'm not like ballparking this yeah, right, right, right.
Speaker 4:This is what it's going to cost. Yeah, and she didn't believe me and I was like, eh, it's fine, but it's like people think something that's $25,000, they think countertops that are $4,000 or $20,000.
Speaker 1:Yeah, people have no idea, they have no concept of price, so they just think everything's expensive yeah, and there's a lot of agents too that will say that too. Like they'll walk into a place. Like yeah, like on that, like if I'm selling a place and an agent walks in, it's like you have to refinish these floors. There's 2 000 square feet. That's gonna cost you like 20 grand. Like what the fuck you're talking about?
Speaker 4:it's so. It's the worst. 2 000 square feet would be like three grand and you don't want to like poopoo on their agent, but at some point you have to take control of the situation.
Speaker 1:Do you guys ever, like, find yourselves taking control of a situation from a broker that you know is not doing your place justice and you're like, okay, I have to take control of this situation?
Speaker 4:Hard to do but sometimes it's necessary. But I try not to honestly undermine people because I would hate that yeah, that's why I think, but you're not wrong, so you can do, I know. But I think this is why people shouldn't come in like a fucking know-it-all because you know like it might not cost that much to do all this, or you're just gonna, not. You're not giving your client good advice. You know, there's a high-end broker that we all know I told you about this this Jason where everything's 50,000.
Speaker 3:That's what I'm talking about too 50,000, 100,000, 70.
Speaker 4:We can do this for 75,000.
Speaker 1:Yeah, we did a deal with him on a double line buck time. He's like. He's like are you going to put your whole heart for us in here? Quarter of a million. But he's selling it. But he's selling it. But he was selling it.
Speaker 1:Yeah, and I'm like bro, I'd like to be his gc. Yeah, oh, one time I said to a bro you'll love this. One time I said to a broker, and then I want to get some other things. Yeah, she's like, she's like oh, um. No, no, it was, I'm sorry, it was my buyer. My buyer said I, I told him what I thought the roof would cost. And the buyer goes well, I have someone else took a look, take a look at it, didn't take a look at it. Like, just went off the photos and this, this, and they quoted me 250 000 for the roof. My buyer listens to this. He's 250, hold up. I said 250, I'll make you a deal. I said you buy this place, you hire me and I'll do it for 40 less. And I and I said and I'll pocket the other 40%.
Speaker 3:Yeah, yeah, sure, for sure.
Speaker 2:That's some insane pricing.
Speaker 3:Yeah.
Speaker 1:I mean it was a 50 by 125, but a quarter of a million dollars for a 50 by 125 roof.
Speaker 4:That's insanity. I did tell you at my last showing before I came here, that insurance companies don't like flat roofs.
Speaker 1:It's done.
Speaker 4:I learned it from you yeah, it's done, see, yeah it's done and I said no, I did a shingled roof and a shingle roof on a standard house is probably eight to twelve grand to replace it all day, all day, all day no, I had a.
Speaker 1:I had a my insurance person on here and it's really crazy. Oh yeah, that's right. Yeah, do you know, sean, who's the taping right here? Sean, we talked about california not getting losing insurance for fire during that one and two months later, pasadena burned down. It's crazy.
Speaker 2:I reposted that clip oh, you sent it to us.
Speaker 1:Yeah, dude, yeah, because everyone was poo-pooing on the on the insurance company listen I'm not I'm not fighting for insurance companies, but the insurance companies left because there was a cap on what California would let you charge for insurance. So they couldn't, the underwriters couldn't insure. They're like this is not what we do. It's like you know how they do the insurance, which is I was listening to the All In podcast. It was like my favorite podcast, and how they do insurance is they take at. They take the price of the house and the odds of that occurring to your house and they just take that multiplier. So if there's a one in 10 chance of your house burning down and your house is a million dollars, your insurance is $100,000 a year.
Speaker 3:Out there, and that's the-.
Speaker 1:That's how they do it, wow.
Speaker 3:So if you-.
Speaker 1:What is private insurance?
Speaker 4:Like there's people buying like private insurance on $20 million houses.
Speaker 1:Really I don't know what is private. It's all. Private insurance, it's all-. What about like it's not public. Like my dad was If, like a state farm doesn't insure you-. State farm pulled out of California.
Speaker 4:Nick and John, who are really rich, have private homeowners insurance that people pay that they sell to.
Speaker 1:So Nick and John would sell to them Private firm. Yeah, as soon as listen. As soon as that place burns down, as soon as the Palisades burned down.
Speaker 2:Is there a?
Speaker 1:thing. No, I don't think there is, but if there was, people would just move the fuck out of the country and not pay.
Speaker 4:One mall had private firefighters. Oh, that One mall had private firefighters. Oh, that's different. Yes, but there's a lot of that kind of stuff out there.
Speaker 1:Well, dude, they've got private police in Southport, in Bucktown, in Lincoln Park. I don't know if they have guns, Do they just?
Speaker 2:run over somebody, you told me that. It's the whole block hires, the private security.
Speaker 1:Yeah, the whole area Are they off-duty, I'm imagining.
Speaker 4:I have a friend that lives in the Hob, the how, orchard Burling, and they're like why are you late? I'm like could get through security, that's my go-to line. Like I'm getting fully shaken up.
Speaker 1:You've seen those. It's a dark car with the green lights. They drive around all day. I just don't know if they can shoot people.
Speaker 4:Speaking of. Because if you can't shoot anybody, I don't need them up, but I just want you to be aware there's a chimney fix-it van down the street here A what. When I was looking for parking.
Speaker 1:Are you serious?
Speaker 4:Right now. Yeah, on my way here. Would you call anybody? No, because they had no license plates, because I was late, there was no license plates.
Speaker 1:They were stealing from a chimney van. What were they stealing? Bricks, sheathing, I don't know.
Speaker 4:Horrible, like if I'm a thief, I'm not stealing from that kind of van. Yeah no.
Speaker 2:Well unless you're, what am I?
Speaker 4:going to sell A monkey wrench. I mean, I don't even know what you're getting out of there.
Speaker 1:I swear to God and steal, I mean a I swear to God and steal a plate.
Speaker 3:It's not that expensive. It's like a scrapper Scrapper yeah, scrapper's going in there and breaking in and selling it.
Speaker 1:He's going straight down on Elston, where the sheet metal is for $5.
Speaker 4:Yeah, well, those are the guys, and then buying a Starbucks. Those are the guys that should be like. The cops should be waiting there.
Speaker 1:Yeah for the painted gas lines, and then no one gives you shit about it oh wow, this copper looks really nice yeah, and it's painted.
Speaker 1:It's painted meaning it's stolen, um, so, all right, so we have 25. What do you guys think in terms of like, because of the lack of inventory, what are you telling your buyers? What do you like? Let's go first buyers and we'll kind of teeter off into this. So, like, what are you telling your buyers in terms of their offers? Obviously, we have escalation clauses, we have every this, but like, forget about, forget about the, the contract. How are you preparing them mentally? Do you have talks with them?
Speaker 4:hey, listen, a couple good little things that happened recently where the guy I I wrote an offer on this house for 530. He tells me that they're going to look at offers up until Sunday and we made a cash offer a couple grand over list. I told him it's good until fucking noon. And you know what?
Speaker 1:Did you win? Yeah, I've been winning on that. Oh a lot.
Speaker 3:People have pushed back on that. No, a lot People have pushed back on that.
Speaker 4:They're trying to dictate to me what their timeline is. And I'm just saying I don't like your timeline because my girl is solid here and she's putting down a lot of money and we're just going to do everything clean and it's going to be an easy deal for you.
Speaker 3:Did you know the broker?
Speaker 1:No, but here's the new timeline Because I think that, along with a reputation, is what wins, and relationships.
Speaker 4:Yeah that's what I'm saying. Your rep, your relationships, your rep, that's a good one, because either they want it or they don't.
Speaker 1:I did that in Arlington Heights. We kept losing houses and I was like fuck it. I'm like here's a non-contingent offer. It's cash. You just went on the market. You want to do an open house, this and this, it's cash. We're giving you a lease back. We're giving you everything you want. We're 10 over ask. It's good to 9 pm, that's it. And she got back to me.
Speaker 3:She was they're going to sign it that's great, because I'm shocked, so just use that and then, that's great.
Speaker 4:That's the only reason. That's the only way I'm winning in the suburbs. That's great. That's the only reason.
Speaker 1:That's the only way I'm winning in the suburbs.
Speaker 3:That's great Good. I'm going to have to try it then, Cause I've gotten pushed back on that. Nope Seller wants to. You know, see how many offers you can get and get the most money.
Speaker 2:Are you actually going to rescind it? If they, yeah, okay.
Speaker 1:That's the thing about it. That broker is going to make a phone call on Sunday night and say hey, listen, are you still there? I'm there, but I'm $10,000 less Correct.
Speaker 3:Now it's a different price, different price.
Speaker 4:The only thing I think you could do as a listing agent and this happened to me before is change the placement of the goal line. I've seen brokers that are like okay, everything's due Sunday at 6, and then you do something. And I had one where there was a duplex down in lincoln park. We gave the guy a full price offer. It was it was going to be till five o'clock on friday. We submitted on thursday. Then the guy's like ken, we're not going to take it, because he wants to do an open house on saturday, so we rescind the offer.
Speaker 4:My clients are living out of town. They send the sister over there to see it. The open house is canceled and the guy's like best and final is going to be due at 3 o'clock. So we present an offer for $25,000 more. We're just in the process of writing it up and they had taken another offer before that three o'clock deadline. Because then the guy started to panic.
Speaker 3:the seller yeah and had had.
Speaker 4:He had a, an agent that would have let that play out. They. They sold it for 551.5. We were ready to go to 575, so that that all that wishy-washy cost that guy $23,000. Sure.
Speaker 2:So it happens when you get a bad broker, they do it at a discount.
Speaker 4:It might not even have been the broker it could have been the seller panicking.
Speaker 1:Yeah, but that's the agent being seasoned enough to say. This is like I said all the time this is the plan, we're sticking to this plan. How many times you put a plan together for a buyer or seller and then, all of a sudden, A, B, C and D are to get E? The minute you move A, B, C or D, E is unattainable. Yeah, correct, correct. And it's just like hey, man, we've gone this whole route for this, Just stay the course, Stay the course.
Speaker 4:It would be like in football You're running the ball well, there's just no need to deviate from it. We're going to score here, just let me do my thing Seattle Seahawks.
Speaker 3:Seattle Patriots dude Seattle Seahawks. That's it.
Speaker 1:Give the ball to the running back dude Lynch.
Speaker 3:The craziest play ever. Unbelievable that's Lynch Unbelievable.
Speaker 3:The other thing is like we're talking about buyers but like putting them in the best position, canceled by 9 o'clock, this, that and the other. What about the buyers that don't listen to your advice and they either want to push and keep it or they get burned so many times because you're telling them, hey, you should bid this or do this or do that, and then sometimes these buyers just don't understand that you have to do that until they get burned a few times and then they start getting more aggressive. You know what I mean.
Speaker 1:Yeah, I think when they get burned it's like you want to say see you, see what I told you. But I think it's almost like a teaching moment, like you would have with your kid. It's like, okay, this is what happened, this is why it's happened, this is what we're going to learn from this, and then let's just approach it a little differently.
Speaker 4:Listen, I've got a person that's Buyers get burned a lot, a lot of times they're just exhausted Dude.
Speaker 1:I'm going to a place tomorrow and I'm going to say the address because somebody's going to by word of mouth will buy it. But I'm going to a place in Park Ridge tomorrow. We've lost out on four places. She's like have filled out and ready and leave the price open. So you guys, we're going to walk it the minute we're done.
Speaker 3:walking it if we want it we're signing it at the table and we're going to hand it to the broker because they keep missing out. That's the name of the game in the summer, and it sucks that buyers.
Speaker 2:sometimes they lose that first or second one and it's their emotions. They don't want to go much higher, but once they lose that first or second one, they stop acting emotionally. Now they start listening to you from a business side. What do we got to do? We got to go 30 over. I'm not scared of as-is anymore.
Speaker 1:I'll do whatever you tell me and hopefully they get it and I just want to someone that just listened to that what you're saying is like we're not saying, we're not controlling the situation and just being like put your do whatever you want to do. It's just like hey, listen, this is what the value of the place is. The as is is what everyone is doing. The leasebacks. I had someone say to me I talked to my brother and he's a lot older and he says leasebacks are a good idea. And my response literally immediately was then you're not going to buy something in this market. And I just looked at him and I go, you want to buy something in the suburbs. You don't have a leaseback.
Speaker 2:It ain't happening, oh no, and it's free, it's not even like you're no, no, no, it's free living. Yeah, yeah, it's this back for three weeks. Oh, not, per diem nothing.
Speaker 1:Yeah, it's free, free, I go, just think about the fact that you just maybe offer two thousand dollars more, three thousand dollars more like this. This is what you have to do. Are you, john? Are you having those conversations like before you go out? This is the lease back, this is the as is. This is what you have to expect I am.
Speaker 2:I'm doing mostly city stuff in the suburbs. I get it. It's a little bit crazier, but but the city.
Speaker 1:You're telling them as is. Yeah, I'm telling you mortgage contingencies are like you either can get the loan or you can't get your shit together it's.
Speaker 2:It's so the last like two, three months, like we've had a couple multiples we fought with, but like the biggest things I was pushing people in late december, early january that were spring market buyers. It's crazy that people think, because they're looking in January, that June, when their lease ends, that they shouldn't be looking. Just trying to explain to them from the day you put an offer in to when it closes to when the first mortgage payments due, that's like three to four months Because it's in rears.
Speaker 2:So I'm getting them all, like this year so far.
Speaker 1:getting them all early Is that a change that you've done? Like we're talking about changes, is that something different? Yeah, we weren't doing that two years ago.
Speaker 2:No, I mean like it's getting tougher and tougher and inventory is so limited. I go you never know when you're going to find the right place that you want and if it's two, three months early, be prepared to have that conversation with your landlord property manager. Can you do a two month like buyout of your lease? Can we sublease your place? Of course, what can we do in case we find it earlier, when it's less competitive? And then, of course, like whatever Ken said, like you know, tell them like 20 to 30 grand over, ask You're going to have to go over and be aggressive Like the time thing. I've used it before, but I think it's really smart Instead of the listing agent controlling the whole highest invest due by Sunday well, guess what?
Speaker 2:This is my highest invest and your response is due by 6 pm.
Speaker 1:I always do that. I haven't done it. Roll the dice. Not only are we rolling the dice, now, you're rolling the dice.
Speaker 1:But I think the reputation and you're like I was. That's why I was asking you if you knew the broker. I think on the on the deadline, it's always worked for me because I've done deadlines with brokers that I have relationships with and they go to their seller and then say, hey, listen, this is why you have to have a broker. Then they go to their seller and say, hey, listen, I know this person, you're going to have no issues. He controls his clients, and not in a bad way, but he can mentor his clients the right way. We're going to get to the finish line. This is a great offer. I don't know what you're going to get on Sunday, but I know this guy on Friday he's going to fucking close. Now it's up to you. If I'm a seller and I got the money I want and I get all my terms, why would I not take the recommendation of my broker saying you're not going to have issues with this guy?
Speaker 2:I think it's because these sellers a lot of them have friends, family, people in their ears about other people. They know they got X amount over ask. So their expectations are mismanaged from their peers, not from their broker. So they're like oh, I got 10 over ask, I should be happy, but I should get 20 over ask because that's what other people have told me, but are you going to close?
Speaker 1:Anyone can offer anything. It's one of the starts on my podcast. There's no money, but none of us get paid if it doesn't close.
Speaker 2:Well, how many times have you guys put an offer in and there was another offer. It went contingent. The property came back on the market and the seller was getting like 15 grand more and you make an offer and a lot of listing agents have been transparent. They're like having a tough time bringing my client down because we had gotten something like 15 grand more.
Speaker 4:No, you didn't.
Speaker 4:I had one where they came back to me Like this place on Oakdale had 15 offers and we lost and I assumed you know we went in at 750. We did up, it was priced at 750. We went in at 775 with it was priced at $750. We went in at $775 with an escalation to $810 and still lost it. And they took eight and a quarter financing and then they couldn't get that deal out of attorney review. So the broker called me back and said there was three offers at $810.
Speaker 4:You're the only one that's cash. Do you still want it? Called my client. Absolutely, sometimes you can lose because they want the highest dollars. Offers at 810 you're the only one that's cash. Do you still want it? Called my client. Absolutely, sometimes you can lose because they want the highest dollars. But was that cash worth? You know? Thank god my guy was still there. Yeah, he could do it at 810 cash. And then you know they. He closed a couple days early for them because they needed it. There was no gain for him, it was just a good karma play. He didn't want any money and you know, know what.
Speaker 1:I bet you looking back if they said, look, we got that offer again. Right, if that same scenario happened again, they would go with the A10. They go with your offer from the get go, yeah.
Speaker 2:Tell them about your good faith, one about your clients in Elmhurst, when you could have got it a little less, and they said hey, you know what? I don't know the whole story you told me about the recent one. The recent one, the 1.3.
Speaker 3:Yeah, so as far as so multiple offers on the place, we actually were the first.
Speaker 4:You're the listing agent.
Speaker 3:No buyer's agent. So offer came in. I don't know the broker. So, as far as relationship's concerned, I don't know. Know, like this guy's going to be on top of his shit versus like here's the offer across your fingers. Hope you don't hear from me, yeah, hope I hear from you. It says it's good. So I wasn't. I was back and forth, or it's down the street from my house actually and uh, I went over there and saw the place had the buyer come in and made the offer, everything's all Other offer comes in and I'm like, okay, fine, she goes. You guys are really close to each other as far as offers are concerned. I'm like, well, now I'm not about to be because we're about to go up X. And she's like, oh, I'd really hate for your client to pay that much more. You don't really have to.
Speaker 1:And she's in trouble for that. Don't say her name, I'm not.
Speaker 3:So I'm like that's fine, whatever.
Speaker 1:Just the address of the house. No, no, no, no.
Speaker 3:It's 123.
Speaker 1:Main Street. How about that?
Speaker 3:No, so that's fine. So, that being said, the communication was what got me, because we still were pretty close. Even when we adjusted our offer or whatever, we were still close to the other one. But she was like I just really want to work with you. You've been so nice and that was the biggest thing that's it, and I don't concept I don't know her at all.
Speaker 1:I never really the first time I met her, and that was it but she, I'm telling you this she would have communicated that to her seller probably. Yeah, I'm telling you yeah like when people come in and start doing the poopoo thing like like for offers here, like this person came in and lambasted your place, this person wants to tear it apart. Yeah, this person was like oh, this place is cheap. And this person loved it and said they want to raise their family.
Speaker 3:Well, there's your four offers. Figure out which one you want to pick. Here's the other thing that helped, too, outside of the communication, and she's been so great this time. The other is this goes back to showing your listings. The agent was there and she met the family and she was like these people are so nice, like they.
Speaker 1:I can just share how happy that helped so, being there, they're freaking looking, they were already. They were already.
Speaker 3:She knew that they were already there, yeah, that they were already unpacking, yeah yeah, so like that helped a lot too, outside of me being communications, being the agent. How can you sell places? All that, how can you sell?
Speaker 1:places and not eyeball the seller. I cannot understand that and advise your client properly.
Speaker 3:We have four offers I have four offers here.
Speaker 1:I didn't meet any of them, so I can't tell you anything about them.
Speaker 2:That's what I hate about it. No body language. No body language. You're looking at terms, and terms obviously mean something, but you don't have anything to support those terms.
Speaker 1:No, the aura, the aura is everything. Yeah, for mean something, but you don't have anything to support. No, the aura, the aura is everything for sure.
Speaker 3:The aura is everything. That's the biggest thing. Like, okay, find out in the suburbs like things sell in two minutes, but like when that changes, like you still are the agents in the suburbs still be putting lock boxes on central lock boxes not showing up doing this, market changes.
Speaker 1:It's going to be what's going to happen. Well, because all these laws are and everything that's happening is all set for the market devil, the five last years. We're not going to have a seller's market for. We're not going to have a buyer's market for another four years. Minimum, oh yeah, minimum. We will not have one. It's going to be sellers for the next four years.
Speaker 3:There's no permits pulled. Go look at the permits.
Speaker 1:There's no permits 05 and 06, there's no permits pulled. There's no homes being built. Yeah, that's it. There's too much red tape. They get rid of all the bullshit to get a permit. You may have something like they actually want housing. They could eliminate the 14 people that have to look at your plan.
Speaker 4:Go back to that easy permit thing.
Speaker 3:Yeah, yeah what about existing housing, the ones that are going to start changing when inventory starts, forgetting new housing? I get it, there's no permits. But what about? Like all the existing people start?
Speaker 1:dude, who wants to give up those rates? That's the problem. That's the problem. Who wants to give up? I was in a hurry. Everyone all my clients are selling are either divorced or they're getting the hell out of the state, that's it.
Speaker 2:There's some life thing, that's it. No one's like over some stats and stuff. And they said that January and February last year month supply of inventory in Chicago went from 1.7 last year to 3.3 this year. So far, okay. More inventory no, it's taking longer now to sell. It's 1.7 months of inventory last year to 3.3 this year, okay. And average days on market was 27. And this year so far it's 55. Which places? This is just talking about general.
Speaker 2:Chicago. Again, that's not saying that things are sitting. Obviously the Lakeview, logan's, lincoln Parks are selling quick, but then you take the loop, river North, other areas that are taking long.
Speaker 1:Yeah, River.
Speaker 2:North takes a little bit. Yeah, I agree with you, it's going to stay a seller's market. But if it could just Nick and I talk, if it could just balance a little.
Speaker 1:I would love it Just a little. Still stay sellers. Everyone's always like do you love this market? I'm like no bro.
Speaker 3:I have buyers too. That's all I'm asking.
Speaker 2:Fine, have two offers, not 10.
Speaker 3:You can work with that.
Speaker 2:You can still put better terms in the next person, but having to do $100,000 over ask and all this crazy shit to get it, those are the buyers that end up renting another year, another year, but I don't think I might tell you something.
Speaker 1:I don't think that pricing is coming down. I think that's it I don't think so either, like anyone that says oh, pricing's coming down, okay, so rates come down, pricing's going down.
Speaker 3:No, you know how many times people, many times when interest rates are at 2.5%, 3%, they're like oh, these prices are going crazy. This is what five years ago now four years ago and they're like I'm waiting for prices to come down.
Speaker 1:Well, now they're buying now and they're buying now at 7. Should have bought it three, four years ago back then. Um, all right, so we got to wrap up soon because we have showings. Yeah, but start from. We'll start with nick um place that be it, burbs or whatever best place that you feel that's in the next two years to buy a house, house and to eat okay, and almost the best place elmer's is the best place.
Speaker 3:Elmer's is the best place. Yeah, okay, come on.
Speaker 1:Best place when you see price growth, like where you see your clients running to yeah.
Speaker 3:Listen, right now I have clients in Oswego.
Speaker 1:No but listen.
Speaker 3:it's hard because I have some city clients that are coming. They want to be in the Elmhurst, the Hinsdale, they want to be in the mini downtown areas.
Speaker 3:Mini downtown yeah so LaGrange, lagrange, hinsdale, donner's Grove, anyone that has a little mini downtown. Those areas, I think, are thriving in general for the city clients that are coming back to the Burbs. They just want to have that kind of feel. They want a little bit of a heartbeat. Those towns are more active too. I grew up in Addison. There's nothing there. Big hair, big hair, yeah, big hair. A lot of Camaros. A lot of Greeks A lot of Mustangs and GTs and Camaros and Fireflies.
Speaker 4:That's so great actually, but yeah.
Speaker 2:So I think those along train lines, because people are still going to be if they go to work or if they go to the office. Oh, we're going back to work, I hope so that'll be good yourself.
Speaker 4:So because I mean I obviously I like elmhurst, I like oh place to eat.
Speaker 3:Place to eat elmhurst. Place to eat in elmhurst.
Speaker 4:What's the best place you've eaten recently recently?
Speaker 1:no, elmhurst, because I'm there sometimes for card shows. What's the best place, you know?
Speaker 3:I mean victory is one of the best if, If you want fine dining Victory.
Speaker 1:No, I want a place where I can take kids. Oh, victory, I like Victory. Modern Plate, modern Plate's good. Modern Plate, modern Plate.
Speaker 3:All right.
Speaker 4:There's a barbecue joint really quick in In Elmhurst, elmhurst.
Speaker 3:Yeah, Golden Boy, whatever, yeah the people from Victory own.
Speaker 4:Yeah yeah, yeah, oh, barstools from this place. I wanted to eat in Lake Geneva that got bought Anthony's Steakhouse.
Speaker 3:You want to go there.
Speaker 1:Ken.
Speaker 4:No windows.
Speaker 1:Let's go there it's next week. I'll have breathing time next week A lot of my downtown people.
Speaker 2:I'm telling them if they're looking for something. Obviously.
Speaker 1:Logan Avondale's already coming up.
Speaker 2:I like the Old Irving, kilbourne Park, that Northwest part. You're still kind of near the train lines. Obviously, anywhere else, like the Logans, bucktowns are already expensive but there's more value there for what you can get and it's changing. So I kind of tell clients like, if you're not in the office and don't have to be in there every day, those are some areas you can get a little bit more bang for your buck and a place you like to eat. Those are some areas you can get a little bit more bang for your buck and a place you like to eat. I just did for the second or third time the Prince Pizza, the New York-based one that opened up in the West Loop.
Speaker 2:They have New York-style slices why aren't we there today? And they have Sicilian-style, which kind of looks like Detroit.
Speaker 1:It's really fluffy. Which restaurant does it buy?
Speaker 2:It's next to the Taco Bell Cantina.
Speaker 1:There's a Taco Bell Cantina so you know where, lululemon and everything on Randolph is yeah, it's right there, like Morgan right in that one.
Speaker 4:No, it's on.
Speaker 2:Randolph and east of.
Speaker 1:Morgan.
Speaker 4:Wow, we've got two good spots.
Speaker 1:Okay, so next Thursday, when Will has practice, let's go there.
Speaker 2:You can't really sit down. No, just get a slice.
Speaker 3:That's what I'm saying, dude. It's pretty good Get a slice and stand up like a window, kind of like a bar height.
Speaker 1:Perfect, it's good, I liked it. We'll do our cold first and then we'll go yeah. I want to video that I pussied out last time. Yeah, you did.
Speaker 4:I was like I got shit going on.
Speaker 1:Oh man, now I have to hit the little button that says swear word.
Speaker 2:All right, I flunked out.
Speaker 1:Place. Did you see people going to where there's going to be?
Speaker 4:obviously prices are going up but where you see value, two renovations happening both in Portage Park and I think one will be in the 600 range. That, I think, is a really nice four-bedroom house, but I also have one that's on East Portage.
Speaker 3:We don't need your listings.
Speaker 4:I know, but I think these are areas that are going to be popular, because this one it's Portage Park, but it's next to Jefferson Park, so it's close to the Metro, the Blue Line, the Freeway.
Speaker 2:I agree with you.
Speaker 4:Those areas are like you can still get something really nice under a million bucks and still not feel like yeah yeah, kilbourne park I love.
Speaker 1:I talked about that last year. I actually own lots in kilbourne park. I'm very high on that place. I'm right off the park, right where I'm multifamilies uh, I have like little where is? Kilbourne, it's, it's right off addison yeah, but how far west? Kilburn's west, it's like the K's yeah, the K's Kilburn oh, that area yeah, just south of Old Irving, but it's MK Constructions building houses there by the brick load it's gonna that area is going to pop that's why I say northwest.
Speaker 2:Obviously Logan's already appreciated Palmer Square, the whole area, avondale no too bad, we could all just build a house.
Speaker 1:No, Jesus, I'm not living next to you. We'll all bring our dogs Place to eat. Let's get back on track.
Speaker 4:Place to eat. I tried to go to your new Mediterranean place at the Godfrey but it was closed for lunch the other day At the Godfrey.
Speaker 1:Oh yeah, hey, listen, it's the chef from what the greek place that was like so expensive and on, and then it just closed on ran off so misos, oh yeah the guy. So the girl from misos is here at bucktown what's that place called?
Speaker 4:it's a little place called a cavo I don't know, I don't know, but the other, the other, the greek place on clark.
Speaker 1:It's not that one, the other chef from the other chef from misos, opened up a place on the first floor of the godfrey and, and it's good they're not promoting it.
Speaker 4:Yet I actually walked in there and it's also beautiful in there. It's gorgeous, isn't it?
Speaker 1:Yes, it's really nice. We're going to go there. It's nice, I'll try it out. Is that your?
Speaker 4:place. Well, it's a place I tried, and then I end up at this Indian street food place across the street street food place across the street.
Speaker 1:Would you want to lose weight?
Speaker 4:with diarrhea.
Speaker 3:No, it was great. Do you wear a diaper on the way in Is?
Speaker 2:that instant diarrhea.
Speaker 4:I finally got into that place at the St Regis.
Speaker 2:How is that?
Speaker 4:It's nice Big bucks right. I had an entree and my wife's entree didn't come out, that's it. The guy didn't pick up on the fact that my wife's entree didn't come out, so we're like, can you just put that to go? And then he dropped the bill and he's like that was it no dessert or anything? And he didn't apologize that her entree didn't come out, it didn't copy a little bit for being no he thought that we said when we wanted the entree to go that you had to go yeah I would have probably, and I told him that, but I said, bro, I'm just eating by myself, she's not eating.
Speaker 1:Did you have a nice little 3.5% surcharge? Of course, of course. It's fucking ridiculous.
Speaker 4:I pay it.
Speaker 3:You don't have to pay it.
Speaker 1:I understand, but I feel like I'm so cheap.
Speaker 4:If I say can you take this off the bill, I feel like I'm so cheap if I say can you take this off the bill?
Speaker 3:Yeah, I pay it too. I don't want to be that guy. No, Can we not get Jason's recommendation for restaurants? Because every time he does, they close.
Speaker 4:So we don't want to. No, no, no, no. That last one was good.
Speaker 1:So the place that I would tell people to buy right now that I think is completely undervalued is River North, and I think it see that come, that was a left curve, how many properties you have in river north jason, I'm telling you you're gonna see, I'm telling you right now, like that 20 to 25 appreciation in the next 16 months in river north.
Speaker 1:Is it because the prices have come down so much, all right, so much. It has river north so far behind everything else? Correct? And I'm telling you, everyone's gonna. By the end of this year, everyone's gonna have to be at work three days a week minimum. I'm telling you, by the end of this year, everyone's going to have to be at work three days a week minimum. I'm telling you right now.
Speaker 2:It's funny he says that I got like three deals at 600 Dearborn. I have a lot of deals in River North oddly.
Speaker 4:I'm telling you it's not my area of life. I'm telling you it's coming. I have one that didn't even sell for 300 days and it got a great price.
Speaker 1:Yeah, I'm telling happen and restaurant. I haven't been there yet because it's a two-month wait, but so pompet's here, which is my favorite restaurant. Shout out pompet. And then across the street, next to the liquor store, is a indian mexican fusion restaurant and it has do you know, the name of?
Speaker 4:that restaurant street or the street indian place, I went. This is super diarrhea problems already.
Speaker 2:This is is intense diarrhea. My stomach hurts already.
Speaker 1:Listen it has like 20 tables. It's been like four different restaurants. It's never been able to make it and now this restaurant has a two-month wait.
Speaker 2:You cannot get in Indian Mexican Dude. It sounds crazy. What does it sound like?
Speaker 1:I don't know, but I was at Bavette's with friends who are Indian and I told them about this restaurant and they're like how in the hell do you mix those two? I'm like I don't know, but you can't get a table. Speaking of Bavettes, I've never been Neither have I what?
Speaker 1:And my client that has been trying to take me out to dinner because I took him to Alinea. He's like Ken, I need to be your client. He's like March 3rd, can you go? I'm like sure, fine, sure, I don't give shit, but it's early. That's the only reservation you'll be the youngest person in there. Really, no, everybody eats.
Speaker 4:The six year olds eat at four yes, well, my guy's cool, but that's the only reservation he could get march third 4 30. Yeah, those, those, those those pivots.
Speaker 1:You have to, you have to go on the wait list and then they have a machine like a program that calls you and you literally have like 30 seconds to like yay, yay and then there's this next person.
Speaker 2:You guys ever do Eerie Street Cafe. I love it love it, those bavettes and all those are great.
Speaker 1:That place is easy to walk in get a fucking awesome meal yeah, it's really good, that's old school.
Speaker 2:That's like a rosebud. Gene and George Addy tie. Yeah, gene and George Addy's. It's a classic, it's good stuff.
Speaker 1:I was just there for a party, were you.
Speaker 4:Yeah, we could go there too. That's good too. All right, we got to get out of here.
Speaker 1:I think literally we just did an hour of nonsense. I got to take a shit. I'm going to tag you.
Speaker 2:He gives you a good soundbite.
Speaker 1:Yeah, thanks so much. Appreciate everyone listening. This was just basically the group text chat, yeah, and what goes on in our conversations. Hopefully, if you're a buyer or seller, you picked up some nuggets. I think you would like how to act, how to do stuff. Agents, stop being you know, you know stupid. I guess that's the theme on that one.
Speaker 4:And uh, and thanks for the first the first.
Speaker 1:I know the first. The question was a little heavy, but I wanted to get everyone's effect on uh, on changes on their lives, and uh, and that's that be good, and we'll uh. This will be out in end of february, early march, and we'll talk to you soon.