November 11, 2023 • 54 mins
Ever wondered about the costs, challenges, and benefits of living in the mountains or building your own home? This episode sheds light on these topics and more. We kick things off by commemorating Veterans Day and chatting about local happenings in Henderson County, such as the traveling Vietnam Memorial Wall and the recent Poplar Drive Fire. We also share the inspiring story of local veteran AJ, and explore the critical factors to consider when budgeting for a new home.
Unpacking the allure of a life nestled in the bosom of mountains, we delve into the unique experiences it offers and the challenges it can present. The serenity and historic charm of these remote areas are undeniably captivating, but they come hand-in-hand with practical hurdles like winding roads and limited services. To make your relocation decision easier, we introduce two fun and insightful tests – the Martini Drive test and the pizza test.
Finally, we share key tips to help you navigate the process of building or selling homes. Whether it's considering the cost of land, site prep, and additional features in your budget, or preparing your house for sale with deep cleaning, minor repairs, and decluttering, we've got you covered. We zoom in on bathroom upgrades, revealing potential costs and the benefits of working with top 1% real estate agents. Don't miss out on these practical insights to inform your real estate decisions!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This is the plain English real estate show with
your host, rowena Patton, a showthat focuses on the real estate
market in terms you can easilyunderstand.
Call Rowena now.
The number is 240 99621-800-570-9962.
Now here's the English girl inthe mountains, the agent that I
(00:21):
would trust, rowena Patton.
Speaker 2 (00:23):
Good morning.
This is Rowena Patton on thereal estate news radio show and
happy Veterans Day.
Happy Veterans Day.
Speaker 3 (00:32):
Yes.
Speaker 2 (00:33):
We did Happy Marine's birthday yesterday 248th, I
believe it was 248th.
Do you know?
The Marines are older than theUSA.
Speaker 3 (00:41):
No, I didn't know that.
Well, we got lots of thingsgoing on.
The traveling Vietnam memorialwall is in Henderson County at
the Veterans Healing Farm.
It arrived Thursday afternoonand will be open 24-7 until 2
o'clock tomorrow afternoon.
Speaker 2 (01:02):
The traveling Vietnam wall.
Speaker 3 (01:04):
Yeah.
Speaker 2 (01:05):
Interesting, yes, yes .
Speaker 3 (01:08):
Lots of the brothers and sisters like these will be
reading a lot of their storiesthere and lots of things going
on around that presentation.
Speaker 2 (01:16):
I'm going to look that up because we have a
veteran in town.
Aj and his really good frienddrove in and surprised him.
He's been through a lot ofmedical issues recently.
My honey, randy, and hisveteran friend drove from Texas,
from Houston, to surprise himon Friday.
(01:37):
Fantastic, and they're bothMarines, they were in the
Marines together and now they'rein the 50s, so I think they
might be interested to see that.
Speaker 3 (01:44):
Oh, of course they would, yeah, yeah.
Speaker 2 (01:46):
Yeah, so that might be something we do later today.
Hopefully the weather willclear up a little bit.
Speaker 3 (01:50):
Yeah, I don't think we're in for a lot of rain that
we need, but it's just a littledrizzly this morning.
Speaker 2 (01:57):
Well, it was on there yesterday as well.
Right, it was all drizzly andgray, but we do need it.
You're right, everything'slooking a bit brown and gray.
Well, we're in a severe drought.
Speaker 3 (02:10):
The crews are getting control of that forest fire in
Henderson County.
The Poplar Drive Fire, 434acres and I think they have it
35% contained, I think.
Speaker 2 (02:23):
Wow.
So surely the rain's going tohelp with that, hopefully.
So we also have AJ in towntalking about.
He may just call in later,we'll see.
You know it was the MarineCorps birthday yesterday, so
they might have had a big day.
He may well call in, we'll see.
He has a building firm inHouston and they do high-end
(02:46):
luxury homes just gorgeous,gorgeous homes and he's looking
into using the Builder CPO,which is the latest program that
we've added for builders,because you know, a lot of the
time when someone's building anew house they put the order in.
It might well.
If you're building it here, it'sprobably going to be 18 months
from groundbreaking to beingfinished.
(03:07):
Wow, yeah, so you know Houstonhas lots of flatland, charlotte
has lots of flatland, so whenyou have lots of flatland and
you're building 100, 200, 300,400 homes, they can build them
very quickly because they've gotall these crews and they're
rotating around.
They've got six differentstyles.
We don't tend to have those bigneighborhoods in Western North
(03:29):
Carolina because we've gotmountains, so it's a little
tricky to do those.
At least that's the reason I'mtold that we do have big sways
of land, but I guess a lot of ithas been gobbled up and there's
just not enough to build those.
You know the volume in that way, so it takes a lot longer here
and it tends to be a lot moreexpensive.
In fact, when people arelooking into building a home,
(03:51):
they often choose to buy apre-existing one, even though
our housing market is relativelyexpensive to other areas Once
they look into it.
And what I can say is if you'reeven thinking about building a
home and you are looking atpurchasing a piece of land,
please be careful with that.
Make sure you've got a greatagent.
(04:12):
We might be able to help you.
And you know we have a lot ofpeople saying we want five acres
or even an acre for $50,000 or$25,000.
There's plenty of land outthere.
You can get a lot in aneighborhood for $10,000 or less
.
We have a bunch of them, soit's not that hard to get land.
(04:35):
And what I'd rather you didn'tdo is buy a piece of land saying
, oh, the land's going away.
We're not going to be able tofind land, so we're going to buy
it now and hold on to it andone day we'll build something.
Let me tell you how I know this, because so many of you come to
me to list the land 20 yearslater and it's been sitting
(05:00):
there and you've been payingtaxes on it, and if it's in an
HOA, you pay it, payinghomeowner dues on it.
So it just doesn't tend to becost effective.
And just make sure that youunderstand what your full budget
is.
So that's another question Iask people that are thinking
(05:20):
about building what's your fullbudget?
And what I find is most peoplehaven't thought about it.
Well, here's the problem there.
Why would you be buying a pieceof land when you've no idea the
price of the home you'reputting on it?
And I'll tell you why that'simportant.
Because you're probably saying,hey, it's no problem at all,
because one day we'll know howmuch money we've got to build a
(05:43):
house in 10 years when we retireor whatever it is.
So your land should not exceed20%, and preferably 15%, of the
home.
I've got a whole chart on thisin my blog, actually.
So All-Star Powerhouse.
I will post it on the All-StarPowerhouse Facebook page here
(06:04):
shortly so you can see that I'mactually bringing it up, because
it helps me as well.
We try and leverage this interms of when I write something,
I make a blog post out of it,so I can find it in future.
I do all the research and whocan remember all of this stuff
and all of the tables andeverything else?
Some of them, of course, arefairly straightforward.
(06:30):
So if we talk about land for aminute, when you buy that land,
normally you are going to haveto clear some trees off it,
clear some dead trees off it,put a driveway in.
You may have to add a septic ortie into the sewer.
You may have to tie into thewater lines or dig a well.
All of that costs money andit's important to have an idea
(06:55):
of how much that's going to cost, because that basically
dictates the amount Excuse methat you're going to spend on
the land.
That makes sense, right?
Because if you ever go to sellthat property, I always want you
to go in thinking about selling.
I know that sounds crazy.
You're like oh, it's going tobe my forever home.
(07:15):
Do you want me to tell you howmany times I've heard that, that
it's going to be a forever home?
I felt that way myself.
I've done the same thing.
Oh, this is going to be it.
Speaker 3 (07:23):
Yeah, me too.
Speaker 2 (07:25):
Right.
Speaker 1 (07:25):
How many times have you?
Speaker 2 (07:26):
done that?
Of course, several.
Yeah, it's normal.
So you know there's a number ofquestions you want to ask
yourself.
So one of them is you knowwhat's the most important factor
in the location?
So do you mind being out in theboonies?
Do you want to be in ahomeowner's association?
Have you had any experiencewith a homeowner's association
(07:49):
before?
Most people either love it orhate it.
There's not much in betweenRight, right.
Having been the president ofone for five years, I don't know
.
Speaker 3 (07:59):
I've been on both sides of that too.
Speaker 2 (08:01):
Yes, yeah, I really have People fighting about
somebody's dog pooped down thecorner and who's going to pick
it up, and then, oh, let's alltake a vote and spend a lot of
money putting the poop bagstations up, and then people
fighting about who's going toempty the poop stations and pay
for the bags, and you know, justgoes on and on and on.
Dog poop is the number oneissue in an HOA.
(08:22):
It's not I mean I'm serious, itreally is.
In most HOAs, dog poop is themajor issue.
Speaker 3 (08:28):
Yeah, animals, period cats or whatever Spouses.
Speaker 2 (08:35):
Definitely so.
The location is very important,obviously, and you know a lot
of people come to the mountainsand they think, oh, we're going
to be on a mountain topsomewhere and far away from the
city and the busyness of ourwork life, and it's just going
to be so peaceful and lovelylooking at the birds every
morning.
(08:55):
And then reality hits.
I call it the martini drive orthe martini test.
Do you want to drive up thatmountain after a martini or when
it's dark?
Speaker 3 (09:11):
Or surrounded by tinderbox forest.
Speaker 2 (09:13):
Yes, surround.
Well, we don't tend to havethose fires though.
That's unusual, that's reallyunusual, thank goodness, yeah,
but medical care Well, that'sthe thing you may need.
Medical care, you may, okay, soyou don't drink.
You're telling me you don'tdrink?
Okay, how about the gallon ofmilk?
Test, right, so you're up thereon that beautiful mountain top,
(09:36):
little birds tweet, tweet,tweet, tweet, tweet.
See the bats flying across atnight.
Honey, look, there's a bat.
See the bear rolling byhopefully not rolling, that
would be weird.
Strolling, Strolling not rolling, yeah, rolling would be hit by
a trick, and rolling down, thatwould be, terrible.
So you know it's all lovely andeverything.
(09:57):
It's like honey.
I want to make some pancakes.
Oh, we don't have any milk.
Are you going to drive Even 20minutes on windy roads?
Now, you may love it, in whichcase that's great, but I want
you to really seriously thinkabout that.
Maybe have an air B&B for aweek or two up in the boonies
and just check that's what youwant, because it's one thing for
(10:20):
a summer home, which manypeople have here, because we're
in the south but we're atelevation, so it tends to stay
cooler.
You know we have.
Yeah, it gets a little hotsometimes, but it's not hot like
the rest of the south.
It really isn't.
Speaker 3 (10:33):
Yeah, and the pizza will not be hot.
Speaker 2 (10:36):
The pizza won't be.
Oh, the pizza delivery.
You won't even get pizzadelivery most of the time.
Speaker 3 (10:40):
Wifi it's gone.
Speaker 2 (10:42):
Yeah, you got the Wifi issues.
Thank you, randy.
That's a very the pizza test.
Well, do you get delivery?
That's another thing you missif you've lived in a city, so I
used to live in.
Well, this is blows me away,honestly.
I'm now in Mills River.
I used to live in WestAsheville.
West Asheville, you could getanything Right, I could, you
know, step outside and literallywalk to I don't know half a
(11:06):
dozen of the best restaurants inAsheville.
I don't miss West Asheville atall, honestly.
However, now I'm in Mills River, we're lucky if we can get a
pizza delivered.
Yeah, I don't understand thatat all.
There's a lot of people wholive south of Asheville and yet
it's difficult to get delivery.
So imagine now, just out in theboonies, just a little bit, on
that mountaintop.
(11:27):
It's serene and beautiful, andyou're on your two acres or your
five acres or your 10 acres andnow you can't get a pizza.
Speaker 3 (11:35):
I did it.
I did it in 08 and 09.
Speaker 1 (11:38):
You did.
Speaker 2 (11:39):
I moved out and it was beautiful.
Speaker 3 (11:40):
I could see into Tennessee.
It's gorgeous, wow.
But I couldn't get a pizza ofthat place for nothing, for
loving their money.
Or anything In a net serviceand you know.
And so now I'm right on SweetenCreek in South Asheville and I
can see five, I can see themovie theater, you know, I mean
it's.
Speaker 2 (11:58):
And the mountains too .
There's a lot of this areawhere you can still see the
mountains and really I'm nottrying to talk you out of
getting some peace and being outthere in the peace and quiet.
That's actually where I grew up, that's what I grew up in.
But I just want you to thinkabout it really carefully
because when you build thathouse out there, that's going to
be a harder well, first of all,it's harder to build because in
(12:19):
the middle of nowhere andyou've got all the trucks
delivering everything at windyroads very often they're windy
roads and secondly, if you evercome to sell it, it's most
likely going to be a much hardersale.
Speaker 3 (12:32):
I wouldn't doubt that I leased this house for a year
Thank goodness because I didn'tat the end of that year.
I didn't.
I mean, this thing had a deck,I mean it was a mile down there
to the bottom of that.
Oh wow.
You know it was gorgeous, butat the end of the year I wanted
to come back home.
Speaker 2 (12:50):
Yes, yeah, that's why I think you know, even a couple
of weeks in an Airbnb just bereally realistic what happens if
you know someone twists anankle or needs hospital care or
get down to the.
Do you go to the doctors on aregular basis?
Really, we could create a wholechart on this, honestly, where
you fill it in and we choose theneighborhood for you.
I've actually got one of those,strangely enough, my nerdy time
(13:13):
.
So the location is reallyreally important, so you know.
Another thing is do you want anew home?
What weight does historic charmbring for you?
And I mentioned I mentionedthat I have a whole chart on
this on the website.
If you go to allstarpowhouscom,there's a little search site at
(13:37):
the top and just put inbuilding a home versus buying,
vs buying Building a home willprobably bring it right up.
So do you want historic charm?
We have a lot of beautifulhistoric houses here.
In fact, for Art Deco homes,we're second only to Miami in
terms of how many Art Deco homeswe have or Art Deco buildings.
We also have a lot of arts andcrafts.
(13:59):
That's the predominant stylehere and they are absolutely
beautiful.
We have newer homes being builtin the arts and craft style and
, of course, a lot of industrialmodern.
I mentioned AJ earlier.
That's the primary style of thehomes he builds and they're
absolutely gorgeous.
I wish I had his card with mebecause I'd send you to his
website to look at them.
(14:19):
They're amazing.
I'll post it on our Facebookpage for allstarpowhous later on
.
So a lot of what you see.
You are seeing some newer homesthat are industrial modern.
The primary style here, I'd say, is still arts and crafts,
would you say?
That's true, randy?
I think, so, yeah, so, and a lotof people love that.
Now, if it's a more historichome, you may have a tiny owner
(14:41):
suite bathroom, because that'swhat we used to have.
We didn't have these big,luxurious, giant bathrooms.
They were tiny.
So, you know, is that importantto you or not?
And you may want to put up withit for now because you love the
charm so much, or you may wanta new home that has those things
that are more important to you.
(15:03):
What I usually suggest to peopleis write down a list and put
what I call the waiting next toit.
So you know, make it on aspreadsheet.
You know I'm the spreadsheetgirl.
It's much easier and if you'rea couple or a family, put all
the things down there and thenput some columns at the top.
You know, mom, dad, kids,whatever dog the dog can choose
(15:23):
as well and then score all thosethings one to 10.
And then you consult them andsee which things are most
important to all of you.
Now, like everything in life,it's a compromise.
You don't want to be arguingabout it.
Of course, if it's just you,you're fine, although choosing
the waiting, ie the priority orthe importance of that thing,
can be really tricky.
(15:45):
For example, people say I've gotto have a fence backyard.
I'm looking for a home, I needa fence backyard.
And I always say most often youcan add a fence.
So why are we even thinkingabout that?
You're spending four, fivehundred, a million, two million
dollars on a house but you'reworried about having a fence in
backyard.
That's going to cost us.
Well it depends on big yard is3,000, 10,000, 15,000, depends
(16:09):
how big it is.
But that's such a small amountof the overall cost of the house
we can easily add it.
So it may be immersed, that'sfine.
So we probably want to lookoutside an HOA or find you an
HOA that allows fences, becausethey don't all allow fences.
And secondly, make sure there'senough in the budget to be able
to put that in.
(16:29):
Chances are if you.
You know price points now 450to 550, if you're buying at that
price point, you can probablyafford the additional 15,000.
Or we just put an offer in15,000 less to get your fence in
.
You know how important is it.
Is it immersed?
That sounds like a small one,but it may be important to you
(16:50):
to have a large owner's bathroomor a garage garage.
That's another very common oneIf you've got the extra land
there, you can build a garage.
Yes, it's expensive.
It might be 40, 50, $60,000 fora good, you know, a good size,
well-built garage, not talkingabout just, you know, throwing
(17:10):
up a canopy or something.
However, again, if it'simmersed, then you might want to
think about that.
Here's why the majority ofhomes here do not have a garage,
right, randy?
Speaker 3 (17:24):
Right and I miss when the places that I've had a
garage and I don't now and Imiss it terribly.
Speaker 2 (17:32):
Yes, interesting, isn't it?
So, especially as the wintercomes, it's like oh.
I could pull my car in.
Actually, I don't remember thelast time I used a garage and
I've had one for a long time.
It's really about pulling upclose to the door for me, but
that's a whole other subject.
So you know, think about whatwould it take to build a garage,
because there are very, veryfew here and the older homes
(17:53):
that do have garages they werethe posh homes back in the day
the garages are about big enoughfor a child's toy car.
You can't you really can't fiteven an economy car in those
garages and they're not going tohave electronic doors or
anything else.
So it's really a big storageunit taking up the space where
(18:15):
you could build a modern garage.
The good news is that manyhouses don't have garages at all
and if you've got the space,there's no reason you can't
build that garage.
People always ask why don't youhave garages here, and I think
it's because it's so temperate.
You know we don't get a lot ofsnow Right when we do, it mounts
off really quickly.
(18:35):
We do get rain, but it doesn't.
You know we don't have thatfreezing cold for six months of
the year, please tell me, wedon't.
Speaker 3 (18:41):
No, no Coming into winter.
Speaker 2 (18:43):
We don't we don't Makes me sad.
Speaker 3 (18:46):
Oh yeah, I know the time change.
Oh my God, I don't like thatanymore.
Speaker 2 (18:52):
No one likes it.
Please call in 240 9962, 828240 9962.
I know you're listening aroundthe country 800 570 9962,.
800 570 9962.
We'd love to hear what youthink of the time change.
A lot of people don't know this.
I used to work for an insurancecompany.
(19:13):
Heart attacks go through theroof, Suicides go through the
roof.
The entire country is sufferingfrom jet lag.
Think about jet lag when you'vehad jet lag.
It takes sometimes a week.
It's definitely two or threedays.
The whole country has jet lagfor two or three days.
Speaker 3 (19:30):
It took me about to Wednesday to kind of get back to
normal yeah.
Speaker 2 (19:35):
Car accidents, all kinds of things.
So especially when someoneworks, you know if you're
retired out there and your yoursleep changes and everything,
maybe you don't notice it asmuch.
But when you have to get up andgo to work or take the kids to
school, you know people havereally noticed it, but it's out
there.
The only reason I know this isbecause of working for an
insurance company and theinsurance claims go through the
(19:56):
roof and more people killthemselves.
It's horrible.
More divorces, divorce rateapplications go up.
It's scary.
Speaker 3 (20:04):
So why are we still doing this Congress?
Get off your butts.
Speaker 2 (20:08):
Yeah, really, somebody did say something
interesting to me last night andthis is standard time, so this
is what we would stick at.
Speaker 3 (20:19):
Well, is that true?
I don't know.
Well, the other is daylightsavings.
Some have said that that's theone we would stay with.
Speaker 2 (20:26):
Well, I think that's the one we'd want to stay with.
I do too.
Yeah, I do too, and it's youknow, kids get up very early in
the morning.
That's the argument now.
I mean it used to be forfarmers back in the day.
Kids get up early.
They can't be going early inthe dark it's almost always dark
anyway, because they have to goto school so early, exactly.
Never really figured that outhere.
Our school times were nine tofive in England, so it fitted in
(20:49):
with you know anytime.
Well, it fitted in with parentswork hours yeah Most people
work.
I mean not everybody, obviously,but most people work nine to
five.
So so, if you're thinking aboutbuilding a home, give us a call
1-800-517-9962.
Would love to answer yourquestions, or catch me out Give
(21:09):
me a real estate question andI'll see if I can answer it for
you 800-517-9962.
This is Rowena Patton on theReal Estate News Radio Show on
570 AM, wwnc.
We're talking about building ahome today, so let's talk about
(21:31):
number three.
How much does cost matter?
In other words, how importantis your budget?
Do we know anybody that budgetis an important for?
Speaker 3 (21:42):
I don't know any of those people.
Speaker 2 (21:44):
I don't either, so you know it's so.
The price is quoted for newhomes in the US is 160 to 250 a
square foot.
Good luck with that.
Speaker 1 (22:01):
Is that Bear Bones?
Speaker 2 (22:03):
I don't know who's going to build your home for 160
.
It may be quoted at that, butyou find it usually comes around
300.
About double, yeah and and.
Well, it's the top end.
You know is quoted at 250 fornational.
But here you've got to thinkabout 300 a square foot.
If you want something luxury,you're talking about 400 or 500
(22:25):
a square foot.
Now, nobody builds a thousandsquare foot house, or very few
people do.
However, that's easy math.
So we're going to do a thousandsquare foot house and then
double it.
So a thousand square feet,300,000, which is it really is
build a basic.
It's going to be 300,000.
Now, a 2,000 square foot home,which is what most people build,
(22:46):
1800, 2000 square foot.
You're talking about $600,000for build a basic.
But here's the issue.
So you're at 600 for a $200,000house, 2000 square feet, sorry,
so it does not take intoaccount the land.
Then you got to buy the land ontop of it.
(23:07):
So if you're building a$600,000 house, you don't want
it to be more than 10%.
So you, 60 is 10%, so 90 is 15.
So you don't want to spend thatmuch money.
Make sure you keep it underthat.
(23:28):
15%, 20% tops, right, so thatgives you the budget for the
land.
Now if your budget for a homeis not 700,000 because that's
about what that comes out toYou've got a problem because
you've got the land and the homeand you don't want the land to
be 200,000 and then put amanufactured home on it.
(23:49):
It doesn't make sense becauseyou're not gonna get that many
out.
When you buy an existing home,the prices are quoted square
foot but the cost of the land isbuilt into it.
That's the difference.
When you build a home, youdon't get the land for free.
You've gotta buy the land.
So there's a whole estimatinglist on here.
(24:12):
So you've gotta estimate howmuch your lot will cost.
We've got a link to the site onthere where you can go to
mountainhomehuntcom If you'reinterested in land.
Mountainhomehuntcom, take alook at what land costs and then
, when you've looked at the land, you want to add $40,000 to the
lot price and that's for siteprep.
(24:34):
People say that's so much.
Well, not really.
Take the trees down.
Speaker 3 (24:41):
Dig a well, put the driveway in.
Speaker 2 (24:43):
Sceptic, Sceptic.
Yeah, you really want to allowthat much.
You may want to put some rockfeatures in or do some
landscaping.
Somebody in our neighborhoodjust spent $125,000 on
landscaping alone.
I don't doubt that.
So $40,000 isn't very much.
So you've gotta build that intothe cost as well, and you
(25:04):
definitely want to.
So if a home builder's quotingyou a price, add 20%.
This is an old adage, andpeople sit down with the builder
and they say you know, I'veheard that you add 20%, but I'm
sure you'll keep to the cost,won't you?
And builders go, oh, yeah, yeah.
And then on the journey youthink oh gosh, I just saw this.
(25:24):
You know, you're building ahome.
Now you're all excited.
You're looking in magazines andyou're buying all the home
building magazines.
And you're looking online andyou'll want that chandelier and
it's $3,000.
There's a change order, thatback splash, that builder basic
back splash.
You found these beautiful glasstiles $10,000.
Like it just keeps going.
(25:45):
So add 20% always, because evenif the builder isn't trying to
charge you more, then it's very,very likely that you will come
up with other things that youwant along the way.
So add 20% for that.
So the fourth question what'sthe importance of your timing?
(26:07):
Now?
The great thing is because wehave the builder CPO, and I'll
tell you what that is in aminute.
It's based on the cash CPO.
You can choose your move intime.
Now, how does that work?
Well, you've probably got ahouse you need to sell.
That's fine, because we can dothe builder CPO for you.
(26:27):
That is where we can make afull market value cash offer on
your home, get you the majorityof the money within 12 days and
the rest of the money when weresell it.
After we've done the inspection,the appraisal, your home is
gonna be certified pre-owned.
They sell 11% faster.
Five to 6% more.
(26:48):
Why?
Because we've given it a freshcoat of paint.
We're doing one where we'reputting a new septic in right
now.
It may need a new roof.
When you have your homeinspected and I've been talking
to you about this for years,you'll know certified pre-owned
launched it in 2007.
That's actually where a cashCPO came from.
Now we get our funding partner,zoomcast, to do it for you,
(27:12):
which is awesome.
They put the money up front foryou.
So we've been doing CPO for areally long time.
It's really important to dothat.
Now we can make you that cashoffer.
So and it's a full market valuecash offer.
It's not any old cash offer.
There's an ad running that.
I just got out of New Yorkyesterday that has yours truly
(27:32):
on it.
You can go and see me doing mylittle TV spot at cashcpocom
cashcpocom at the top it tellsyou a lot more about the cash
CPO and how it works and, fromthe builders perspective, what
we do.
And we're working with buildersall around the country to do
this.
The agent will make a fullmarket value offer on your home.
(27:54):
You can choose your move outand you can keep that offer in
your back pocket until yourbuilder is complete.
Who wouldn't want to do that?
I mean, doesn't that make sense?
You've got all your stuff inyour home.
Well, it's very frustrating andnerve-wracking and can be very
stressful waiting on yourbuilder to get finished.
(28:15):
Maybe that some materialsaren't.
It's often not the buildersproblem.
It could be that some materialsaren't available.
Or that beautiful hood that youchose for over the range isn't
available, or that beautifulchandelier that you said change
order.
Oops, it's on back order.
There's all kinds of littlethings.
Now, chandelier probablywouldn't stop you moving in, but
(28:37):
there are things that wouldMaybe the floors that you wanted
down.
You know something like that.
Maybe I don't know, somethinghas gone on where there's been a
leak and we need to replacesome of the floors because one
of the pipes froze or who knows,aj's in Houston, so he doesn't
have that problem at all.
However, you just don't knowwhat happens in house building
(28:59):
and there are often delays.
We all know that.
So it's very, very hard whenyou're doing something as
intricate and complex asbuilding a home, especially when
us, as the buyers, often say oh, we wanna change something half
the way along, you know, andthat changes everything.
It stops the flow of the homebuild.
Speaker 3 (29:20):
Yeah, good point.
Speaker 2 (29:22):
So you know, oh, it's gotta be ready for Christmas.
Speaker 3 (29:27):
Well, this house I've leased while you're building.
My lease runs out.
I've got to ever, you know.
Speaker 2 (29:33):
Yes.
So you know, often people aresaying and we're dealing with
this right now with somebodythat has a deposit down on the
new home.
It's being built and it's gonnabe ready in two weeks, and now
they need to sell the house.
The house is already listed.
And because they were in themindset of the last two years
where things were selling reallyfast and multiple offers like,
(29:55):
oh, we don't need to list itright until the last minute,
well, guess what?
It's been listed for a monthand it hasn't sold.
It's still sitting there.
Yeah, so the Builder CPO isperfect for this.
The agent will come in make afull market value offer.
You can see BuilderCPOcom, itgives you all the details for
this.
It's based on a cash offer, soit's the same thing, except it's
(30:18):
a full market value.
I can't say that enough.
And why do I keep stressingthat?
Because all top realtors aroundthe country 95% of them at
least have a real-to-cash offer.
Real-to-cash offers are usually60 to absolute top 70% of your
home's value.
Buy ugly houses.
(30:38):
You're lucky if you get 50 or60%.
You've got investors out therethat want to buy them at 50 or
60% so that they can make somemoney when they flip it.
It's just a business model.
There's no judgment on that atall.
That's not what this cash offeris.
There's nothing like it on themarket.
It is 100% of your market valuethat's being offered.
(30:59):
It's incredible Not only that,it's a certified pre-owned home
and you all know why.
I know about that because I'vebeen running CPOexpertscom since
2007.
That's where you, as thehomeowner, and you can do this
yourself too.
You, as the homeowner, are verymuch stressed doing it.
If you're listed right now, payfor the inspection.
(31:21):
So you're going to pay $400,$500 for the inspection in most
places in the country.
Some of them are $600 indifferent states and have an
appraisal.
We haven't been doing that forthe last couple of years because
of the changes in value.
Now we're in a declining market.
An appraisal is a snapshot ofyour value in time.
We all know that.
(31:42):
However, having an appraisal islike evidence.
It's not one agent talking tothe other agent saying Mavis,
how did you come up with thatprice?
And Mavis said I did my comps.
And I say well, why did youchoose the one with the blue
door?
And Mavis says why did youchoose the one with the red door
?
And it just goes on and on.
And appraisal is very different.
(32:03):
Appraisers are able to use alot more details than we are,
and it's all they do everysingle day.
You can also offer a homewarranty.
That's the trifecta.
And you can go to cashcpocomthat talks about certified
pre-owned homes.
We've pretty much shifted fromcertified pre-owned homes into
cashcpo because instead of youpaying for the appraisal,
(32:25):
instead of you paying, whichalso gives you all your square
footage and measurements andfloor plans and everything else,
instead of paying for theinspection and then having an
inspection report and, trust me,it's got 40 or 50 items on it,
that's normal.
Every inspection report hasitems on it.
I've never seen a clean one.
I'm at 3200 transactions inWestern North Carolina right now
(32:47):
and a number in differentstates as well DC, los Angeles,
miami I've never seen a cleaninspection.
There's no such thing.
They will find things Well.
The difference in this is whenyou're going to get 70% most
likely 70% as an advanced cashoffer within 12 days, that's why
it's so great for when you moveagain Now you're not just going
(33:09):
to get 70%, which is atraditional cash offer.
Most people give you less than70%.
We're going to paint the inside, we're going to, if it needs it
.
We're going to put newcountertops in, if it needs it.
We're going to fix the roof ifit needs it.
We're going to fix all theitems on the inspection report
at no upfront cost to you.
It does come off the profitwhen it resells, but it's going
(33:32):
to resell for more.
Because guess why, as buyers,we're lazy these days.
We don't want to do anything,we don't want to paint, we don't
want to buff up the floors.
No, what's the clear coat, thesurround coat, the stuff you put
on cars?
Speaker 3 (33:48):
Yes, surround coat.
Yes, a coat of protection onthe finish of your car.
Speaker 2 (33:51):
Have you seen how they're advertising that now, if
you're selling your car, youneed to use this on the black
stuff, because they sell for somuch more when you clean it up.
Speaker 3 (34:01):
I hadn't thought about that I have some of those
companies that advertise with me.
That's a good point, thatstuff's amazing too it really is
.
Speaker 2 (34:11):
It's got thousands and thousands of five star
reviews.
I mean, people love it.
It lasts for 10 years,sometimes Right, 200 car washes,
I think it said.
Now I was trying to figure outokay, if you go twice a week,
you've got the new zip thingsnow where you just go through
any time you want to.
How soon is it going to wearoff?
But at least it's there for thetime and you don't have all
that white stuff on your plasticbumpery bits.
(34:32):
Is that the technical term forit?
Speaker 1 (34:34):
Plastic bumpery bits.
Speaker 2 (34:36):
So your house is kind of the same way People go into
a house.
We had one recently that wewere looking at for a buyer.
This is a true story.
It had a big old dog that hadsome abscesses and things and
everybody loved the dog and thedog was all over the furniture.
Yeah, it was not pretty.
The house needed a deep clean.
(34:57):
There were lots of kids in thehouse, two smokers in the house
who said they smoked outside,but I beg to differ a little bit
.
They had a beautiful sunroomthat was leaking just all kinds
of little things that neededdoing.
Had we put that into thisprogram and we did a deep clean,
(35:18):
a fresh paint everywhere, someminor structural things, very
minor structural things, wecould have spent about $10,000
and instead of selling it for$375 easily got $450 easily For
$10,000?
.
Speaker 3 (35:34):
Yes.
Speaker 2 (35:34):
Most homeowners, because the dog would have been
out, the kids would have beenout, all their big furniture,
smelly furniture would have beenout and the kitchen would have
had a deep, clean, fresh coat ofpaint.
The things that came upon theinspection report would have
been completed.
People love that.
Speaker 3 (35:50):
Oh yeah.
Speaker 2 (35:50):
It allows it to compete with newer homes,
because there's nothing wrongwith it.
Buyers get very, very scaredoff by inspections.
Over 30% of deals it's justover 33% of deals fall out when
they're under contract, which isvery scary.
It's primarily because of theinspection and the appraisal,
but primarily we're going to seemore appraisal issues coming up
(36:12):
here.
They already are.
The next three to five years.
Guys get ready.
That also means homes are moreaffordable.
Just bear in mind things aregoing to come up.
This is a way by getting thecash offer or the builder's CPO,
where they will upfront themoney to take care of all these
(36:32):
things.
They're used to doing it.
We have teams of people nowthat come in and do it.
They have project managers.
Things get done quickly.
You get a proposal.
You're still in control.
Two thirds of sellers get moremoney than with an old fashioned
real estate sale.
I don't doubt that one bit.
You don't have to have peopletraipsing through your house
(36:54):
You're not worried about.
Are they going to steal mypainkill pills or whatever it is
you've got in the house?
Oh, I've unlocked my guns up.
We're in the mountains.
We've got guns in the mountains.
Speaker 3 (37:07):
Yeah, and they stole my cowboy hat and my guitar and
my cowboy boots.
One time you serious, I'm veryserious, I thought you were
joking, I'm still hurting overthat.
That's been 20 years ago.
I don't know who took that, butsomebody was working.
Speaker 2 (37:21):
Some girl probably.
Speaker 3 (37:22):
So no, I was married then and there was people
working in my house all the timecoming and going.
You know, you never know.
Speaker 2 (37:30):
And all of a sudden you look up where's that you
know Well who wants strangers inthe house, honestly, really.
And if you've got little onesor pets, that gets more
difficult and it's really good.
And you know, if you're sellingyour house for sale by owner,
remember this you really don'twant to be in the house.
It's not good, people don'tlike you.
So my sellers sometimes stayback and they want to explain
(37:54):
everything that's been done tothe house.
The buyers don't want to hearthat.
They want to feel like they'rewalking into a new house that
isn't yours, that didn't haveall these problems that you
might be proud of the fact thatyou've you fixed them and you've
created this beautiful gem.
You know.
But it doesn't help when you'relike oh yeah, we put new carpet
in and spent $5,000.
Well, whoop-de-doo, because itprobably stank as your dog.
(38:16):
You know, I mean it just theydon't want to hear that.
They don't want to hear that itused to be half the size.
Like, did you get put thatthose are red flags.
They want to walk around andimagine it as their home.
So it's way better if you areout and yes, that means you've
got to take the dogs out andit's like oh, my dogs are
friendly.
This is what I get told.
Oh, my dogs are friendly,that's great.
(38:39):
Try it when a realtor comes inand who they don't know, and two
strangers come with them andthat doggie somehow knows that
their house is going away.
Yes, they do.
So please don't tell me yourdog's friendly and it's not
gonna hurt anyone.
You don't want the potentialbuyers coming in and focusing on
the dog, that's right.
(39:01):
You know.
Or the dog the dog may befriendly and, you know, maybe
snuggling around the legs.
I mean, we don't want thatNibbling at the shoelaces.
It might be a lovely, friendlydog.
That's not what we want inplace.
Babies crying, you know, kids,stuff, everywhere.
It doesn't help with your sale.
So again, the Builder theBuilder, cpo, buildercpocom you
(39:24):
see more about it there thatallows for you to choose your
move out date and the offer tobe made.
You can move into your new home.
So, let's say, your home isready the day before
Thanksgiving Uh-oh, it wassupposed to be ready two weeks
before Thanksgiving, of course,and it ends up being ready the
day before Thanksgiving.
(39:44):
Oh yeah, so, but that's okay,because we've got your offer in
play and we knew around the timeit was gonna be ready.
We can get you out and intothat new home for Thanksgiving.
Now you get to enjoyThanksgiving.
I mean, that's not so bad, isit really?
So, you know?
(40:05):
And then we resell it and youget another fat check.
Two-thirds of sellers get morethan with an old-fashioned
listing, and timing is theimportant thing.
When you list your house now,you don't know when it's gonna
sell, and you have to trust meon this.
I'm 3,200 more transactions in.
When a home is freshened up,when you clean up the right
(40:25):
things.
I've got a seller coming to menow saying you know, I don't
wanna sell my house right nowbecause I wanna refinish the
bathrooms.
Please don't refinish thebathrooms.
We're in a declining market.
Most likely, most likely, nextspring, your house isn't gonna
be worth as much.
I'm sorry to tell you.
It's normal Seven to 11-yearcycle.
I've been telling you this fortwo years now.
(40:46):
It's finally happened.
We've had one of the longestclimbing markets in history,
where some of us think it wasartificially propped up by
interest rates that were so low.
That's really hitting themarket now, of course, because
we all got used to those 3%rates and we just had a little
drop, but we're still in thesevens.
(41:07):
That's a shock to many peopleand it's flattened out the
housing market.
So please don't spend moremoney on your home.
It's just not worth it.
Don't put that 20, 30, $40,000in.
It's probably not gonna beworth it.
You're not gonna get it out.
If you want to sell, people arelike oh, the holidays are coming
up.
The holidays are a great timeto sell your house.
(41:28):
It's all festive and lovely andyou've got it all decorated.
You've probably got familycoming around so it smells good
and it's cleaned up and you canhold showings to once a week if
you want to, or when you're outMaybe you're out at church on
that Sunday morning Just haveshowings Sunday mornings because
the chances are there's stillnot.
(41:49):
We're in this weird market.
There's not a whole lot ofinventory out there, not too
many homes.
We still have buyers.
So if your home has beencleaned up and it's certified
pre-owned, if you choose not todo the cash offer, then you're
ready to go.
Of course, if you do the cashoffer, you don't have to have
any of the showings or anythingelse.
Just go to cashcpocom, click onGet my Offer and we'll get you
(42:12):
your offer very, very quickly.
It is the weekend so it mighttake it a little bit more than
30 seconds, which is our averageturnaround time.
But you can definitely look atyour value on there and we'll
come to an agreement on thatfull market value offer.
You've got to have somewhere togo.
Of course you probably have togo and camp out with your
neighbors or friends or familyat Thanksgiving at this point,
(42:35):
but when you've got money inyour hand because your home is
sold, then that's when you canmake a non-contingent offer.
A lot of people are so worriedabout selling the home right now
that they're making thesecontingent offers.
Oh, we can't move until we findsomething else.
And they're making thesecontingent offers.
That means I will buy your homein Florida or I will buy your
(42:58):
home in Waynesville when my homein Hendersonville sells.
Most sellers are not going toaccept that.
99% of sellers are not going toaccept that, because many times
it falls through.
And now you're tying the homeup.
They want to get the home sold.
They don't want to tie the homeup.
In the old days, back before Ithink it was 2011,.
(43:18):
It changed we used to have athing called a kick out clause.
We could probably have thatwritten now by an attorney, but
it was great because basically,when you found a home, if you
got a home and a contractcontingent on your selling, when
our person found something else, we could give you 30 days to
(43:40):
either go through with thecontract or not.
It was a great clause in there.
I'm not sure why they took itaway.
We probably could have anattorney write one up for you,
but you don't want to make acontingent offer if at all
possible, because sellers justaren't going to accept it.
The cash CPO offer or thebuilder CPO offer allows you to
make a non-contingent offer.
You've got to have some equityin your home, obviously, because
(44:02):
if you're not making a profityou're not getting any money out
to put down on your new house.
But usually it allows you tomake a non-contingent offer.
Ie, you don't have to sell yourcurrent home because we've
bought it.
So that's.
The timing piece is very, veryimportant.
Now, around the country theysay that the average time for a
(44:22):
build is seven months.
I'm guessing if we had AJ ontoday he would tell us that is
what it takes him, even thoughhe's building an ultra luxury
there in Houston.
However, here I would say 18months.
That's what I'm seeing, unlessyou have one of these tract home
builders which are veryuncommon here, but we do have a
(44:44):
few they might tell you you knowthere might be halfway through
a home already, so it might bethree or six months.
That is a way to do it.
They tend to be on very smalllots, little, teeny, tiny lots,
which is great for some peoplebecause you don't want the
maintenance.
So if that's the kind of homewe can find you.
Those too, most people aredoing either buying something
(45:08):
that's pre-construction orthey're building a custom home
somewhere or other, or theymight be putting a modular on,
even a modular.
Right now there's a modularplace in Fletcher.
I don't think anything in thereis under 400,000 for a modular
home.
Now the modular home you've gotto drag out to the land and
you've got to put the foundationin.
(45:28):
That's where that 40,000 atleast comes in, plus the land.
So again we're at 600,000 for amodular home.
We're also asked very often, youknow, we want to piece of land
to put a mobile home on.
That's fine too, quite,honestly, your best way there.
This is what I tell people.
If you're not in a big hurry,we'll set you up with a search
(45:50):
for just mobile homes, becausesome of them are much older and
worth about $5,000.
They just need pulling off.
But the great thing about havinga home in place is you've got
the septic or sewer, you've gotthe water or you've got the well
, you've got the driveway,you've got the trees taken down
that need taking down.
You're probably gonna be ableto put it there, because there's
(46:11):
one there already.
Not necessarily we have tocheck that out, of course, but
it can be a much less expensiveway of doing it Because you
don't know if that land's gonnaperk.
You've got to check if it'sgonna perk, ie can you put the
septic and the water in.
Most often in the mountainsyou're not hooking up to city
water and sewer.
There's still lots of veryhigh-end neighborhoods here that
have septics usually publicwater in the higher end
(46:34):
neighborhoods, but they haveseptics.
So you know it's not unusual atall when the sewer line wasn't
taken down the road.
And again, think about yourWi-Fi.
Many people work remotely.
Now a lot of people are lookingto work remotely, especially if
you're in high-pricedCalifornia or other high-priced
markets that you're moving outof DC's, another one, new York's
(46:56):
, another one we see a lot ofpeople coming in from those
markets Florida as well Then youknow you're coming in because
you want to spend less money ona property.
The million-dollar condo you'reselling in San Francisco
probably two million dollarsbuys you a lot of home here.
So you know, obviously, takethat into account.
(47:21):
And the fifth question this istaking us right back to what we
started with Is the land cost 15to 20% of your budget?
Now why do I say that?
Because you know people want toput a literal stake in the
ground by investing $30,000 or$40,000 in land.
(47:43):
Without looking at that entirebudget, I'm taking you right
back to where we started here.
Whether or not you're buildingnow, or in five years time or 10
years time or whatever it is,you're worried that land's going
to go away.
I hear that a lot and, oddly,it hasn't yet.
Consider what price point youthink you'd be comfortable at
and, quite honestly, if youcan't come up with that, I
(48:05):
wouldn't be buying land at all.
You know what's your dream home.
What would it cost now?
Yes, we've got to add somepercentage at what it's going to
cost later on.
Or maybe you want to build itnow and Airbnb it or VRBO it
Meanwhile.
Why you, you know, wait forthis dream and now you can
actually use it yourself in themeantime, rather than having
(48:27):
land there that's going to costyou money every single year, if
only in taxes.
And people say I want a view, Iwant it Creekfront.
You know, I want to oceanfront.
Sorry, we can't do that for youhere.
So the land tends to get alittle bit more expensive than
you were thinking and again.
You can find this atallstarpowhousecom.
There's the entire list on herewith all the numbers Little
(48:50):
easier to see as a visual,obviously and just type in
building a home into the searchbar at the top of allstarp house
.
It gives you all of thesefigures.
We send it out to everybodythat signs up on our website at
mountainhomehuntcom.
That's the other way to do it.
If you find that easier,mountainhomehuntcom, click on
contact us and just ask for thetable showing you what the
(49:15):
budgets are for land.
So if your total budget, say, is400,000, that's a common one.
Actually I've got the 333,000here.
That's the most common budgetfor a house in its entirety
3,000 to 400,000.
What that means is you've got$40,000 in improvements and this
(49:36):
is based on a 200 per squarefoot build.
That is very low end, very lowend, and a home with 1417 square
feet.
That is not a very big home.
Two bedroom, one bath or twobedroom, two bath maybe you know
, if you get the flow right youcan do it, but 1417 square feet
is not a big home by any means.
(49:57):
So we can get you, you know,1,400 square feet for 333,000,
with the land being 15%, 40,000in improvements and that's only
200 per square foot.
That's going to be very, verylow end, if we could even do it
at that.
What that means is you don'twant to spend more than $10,000
on the lot, so you're mostlikely not going to get views,
(50:20):
you're not going to get Creeq,you're not.
You're going to get a verysmall lot that's value priced.
So let's look at 400,000, thenext most common price point.
So, yeah, I think our budgetwill be 400,000.
That, with $40,000 improvements, 200 a square foot, which
honestly, is not realistic atthis point.
The 400, I need to redo thistable because I don't know where
(50:42):
you would get 200,000, 200 persquare foot.
So this is a 1700 square foothouse, which again is not a big
house.
Most people who are buildingbuild 2000 and up.
So 1700 square foot house andthis is a 200 square foot, which
again is very low.
That don't spend more than$20,000 to hit that 15% and
(51:04):
that's a total budget of 400,000, right, 1700 square foot house,
very, very basic.
So my point is you could we canalso set up a search for you at
400,000 and find you a homewith everything in place.
I'm not telling you not tobuild, I just want you to go in
with eyes wide open.
So let's go up to what we thinkof as a bit more luxury 533,000
(51:29):
.
There are people out there thatconsider themselves luxury 500
to 600.
So if you're at that 500 to 600, you don't want to spend more
than $50,000 on a lot, and$50,000 on a lot is not a lot of
money.
That's not going to get you awhole lot of lot.
Speaker 3 (51:47):
No no.
Speaker 2 (51:48):
So let's say, if your total budget is $1 million, you
don't want to spend more than$120,000.
And again, 200 square foot at amillion dollar mark really is
not realistic.
So it's going to be more likedon't spend more than $100,000.
And that's going to get yousomething like a 4,000 square
foot, something like that home.
(52:10):
So I hope that puts it intoperspective for you when you're
building a home.
We haven't done a show on thisfor a long, long time.
And remember, if you arebuildercpocom, it's all based on
the cash CPO.
You can check it out atcashcpocom.
Of course, if you're eventhinking about selling, have us
come in, get a value.
(52:30):
Or you can go to cash CPO andget your value right there.
Cashcpocom this is Rowenapattern, all Star Powerhouse
Brokered by EXP.
We can do the cash offer allover the country.
We have lots of partners nowall over the country, so it
doesn't matter where you're at.
I know we have listenerseverywhere.
So if you're even thinkingabout selling or selling in the
(52:53):
spring, let us come in now andlet us discuss with you what
this would look like, so youdon't waste money on the wrong
things.
Please, please, please don'tupgrade the bathroom.
I'm sure there are things wecan do with it or we can help
you do at a lesser cost.
All top agents everywhere inthe country cash CPO.
We only have top 1% agents.
(53:14):
You've got to be in the top 1%of the market to be in it.
We are able to help you on whatto spend the money on.
I will see you on the radionext week.
It's been great having you heretoday.
Rowena pattern, all StarPowerhouse.
Give us a call 828-333-4483.
Speaker 1 (53:34):
This has been the Plain English Real Estate Show
with Rowena Pattern.
Visit Rowena and post yourquestions at radioashvillecom or
call her at 828-210-1648.
This is the plain English real estate show with
your host, rowena Patton, a showthat focuses on the real estate
market in terms you can easilyunderstand.
Call Rowena now.
The number is 240 99621-800-570-9962.
Now here's the English girl inthe mountains, the agent that I
(00:21):
would trust, rowena Patton.
Speaker 2 (00:23):
Good morning.
This is Rowena Patton on thereal estate news radio show and
happy Veterans Day.
Happy Veterans Day.
Speaker 3 (00:32):
Yes.
Speaker 2 (00:33):
We did Happy Marine's birthday yesterday 248th, I
believe it was 248th.
Do you know?
The Marines are older than theUSA.
Speaker 3 (00:41):
No, I didn't know that.
Well, we got lots of thingsgoing on.
The traveling Vietnam memorialwall is in Henderson County at
the Veterans Healing Farm.
It arrived Thursday afternoonand will be open 24-7 until 2
o'clock tomorrow afternoon.
Speaker 2 (01:02):
The traveling Vietnam wall.
Speaker 3 (01:04):
Yeah.
Speaker 2 (01:05):
Interesting, yes, yes .
Speaker 3 (01:08):
Lots of the brothers and sisters like these will be
reading a lot of their storiesthere and lots of things going
on around that presentation.
Speaker 2 (01:16):
I'm going to look that up because we have a
veteran in town.
Aj and his really good frienddrove in and surprised him.
He's been through a lot ofmedical issues recently.
My honey, randy, and hisveteran friend drove from Texas,
from Houston, to surprise himon Friday.
(01:37):
Fantastic, and they're bothMarines, they were in the
Marines together and now they'rein the 50s, so I think they
might be interested to see that.
Speaker 3 (01:44):
Oh, of course they would, yeah, yeah.
Speaker 2 (01:46):
Yeah, so that might be something we do later today.
Hopefully the weather willclear up a little bit.
Speaker 3 (01:50):
Yeah, I don't think we're in for a lot of rain that
we need, but it's just a littledrizzly this morning.
Speaker 2 (01:57):
Well, it was on there yesterday as well.
Right, it was all drizzly andgray, but we do need it.
You're right, everything'slooking a bit brown and gray.
Well, we're in a severe drought.
Speaker 3 (02:10):
The crews are getting control of that forest fire in
Henderson County.
The Poplar Drive Fire, 434acres and I think they have it
35% contained, I think.
Speaker 2 (02:23):
Wow.
So surely the rain's going tohelp with that, hopefully.
So we also have AJ in towntalking about.
He may just call in later,we'll see.
You know it was the MarineCorps birthday yesterday, so
they might have had a big day.
He may well call in, we'll see.
He has a building firm inHouston and they do high-end
(02:46):
luxury homes just gorgeous,gorgeous homes and he's looking
into using the Builder CPO,which is the latest program that
we've added for builders,because you know, a lot of the
time when someone's building anew house they put the order in.
It might well.
If you're building it here, it'sprobably going to be 18 months
from groundbreaking to beingfinished.
(03:07):
Wow, yeah, so you know Houstonhas lots of flatland, charlotte
has lots of flatland, so whenyou have lots of flatland and
you're building 100, 200, 300,400 homes, they can build them
very quickly because they've gotall these crews and they're
rotating around.
They've got six differentstyles.
We don't tend to have those bigneighborhoods in Western North
(03:29):
Carolina because we've gotmountains, so it's a little
tricky to do those.
At least that's the reason I'mtold that we do have big sways
of land, but I guess a lot of ithas been gobbled up and there's
just not enough to build those.
You know the volume in that way, so it takes a lot longer here
and it tends to be a lot moreexpensive.
In fact, when people arelooking into building a home,
(03:51):
they often choose to buy apre-existing one, even though
our housing market is relativelyexpensive to other areas Once
they look into it.
And what I can say is if you'reeven thinking about building a
home and you are looking atpurchasing a piece of land,
please be careful with that.
Make sure you've got a greatagent.
(04:12):
We might be able to help you.
And you know we have a lot ofpeople saying we want five acres
or even an acre for $50,000 or$25,000.
There's plenty of land outthere.
You can get a lot in aneighborhood for $10,000 or less
.
We have a bunch of them, soit's not that hard to get land.
(04:35):
And what I'd rather you didn'tdo is buy a piece of land saying
, oh, the land's going away.
We're not going to be able tofind land, so we're going to buy
it now and hold on to it andone day we'll build something.
Let me tell you how I know this, because so many of you come to
me to list the land 20 yearslater and it's been sitting
(05:00):
there and you've been payingtaxes on it, and if it's in an
HOA, you pay it, payinghomeowner dues on it.
So it just doesn't tend to becost effective.
And just make sure that youunderstand what your full budget
is.
So that's another question Iask people that are thinking
(05:20):
about building what's your fullbudget?
And what I find is most peoplehaven't thought about it.
Well, here's the problem there.
Why would you be buying a pieceof land when you've no idea the
price of the home you'reputting on it?
And I'll tell you why that'simportant.
Because you're probably saying,hey, it's no problem at all,
because one day we'll know howmuch money we've got to build a
(05:43):
house in 10 years when we retireor whatever it is.
So your land should not exceed20%, and preferably 15%, of the
home.
I've got a whole chart on thisin my blog, actually.
So All-Star Powerhouse.
I will post it on the All-StarPowerhouse Facebook page here
(06:04):
shortly so you can see that I'mactually bringing it up, because
it helps me as well.
We try and leverage this interms of when I write something,
I make a blog post out of it,so I can find it in future.
I do all the research and whocan remember all of this stuff
and all of the tables andeverything else?
Some of them, of course, arefairly straightforward.
(06:30):
So if we talk about land for aminute, when you buy that land,
normally you are going to haveto clear some trees off it,
clear some dead trees off it,put a driveway in.
You may have to add a septic ortie into the sewer.
You may have to tie into thewater lines or dig a well.
All of that costs money andit's important to have an idea
(06:55):
of how much that's going to cost, because that basically
dictates the amount Excuse methat you're going to spend on
the land.
That makes sense, right?
Because if you ever go to sellthat property, I always want you
to go in thinking about selling.
I know that sounds crazy.
You're like oh, it's going tobe my forever home.
(07:15):
Do you want me to tell you howmany times I've heard that, that
it's going to be a forever home?
I felt that way myself.
I've done the same thing.
Oh, this is going to be it.
Speaker 3 (07:23):
Yeah, me too.
Speaker 2 (07:25):
Right.
Speaker 1 (07:25):
How many times have you?
Speaker 2 (07:26):
done that?
Of course, several.
Yeah, it's normal.
So you know there's a number ofquestions you want to ask
yourself.
So one of them is you knowwhat's the most important factor
in the location?
So do you mind being out in theboonies?
Do you want to be in ahomeowner's association?
Have you had any experiencewith a homeowner's association
(07:49):
before?
Most people either love it orhate it.
There's not much in betweenRight, right.
Having been the president ofone for five years, I don't know
.
Speaker 3 (07:59):
I've been on both sides of that too.
Speaker 2 (08:01):
Yes, yeah, I really have People fighting about
somebody's dog pooped down thecorner and who's going to pick
it up, and then, oh, let's alltake a vote and spend a lot of
money putting the poop bagstations up, and then people
fighting about who's going toempty the poop stations and pay
for the bags, and you know, justgoes on and on and on.
Dog poop is the number oneissue in an HOA.
(08:22):
It's not I mean I'm serious, itreally is.
In most HOAs, dog poop is themajor issue.
Speaker 3 (08:28):
Yeah, animals, period cats or whatever Spouses.
Speaker 2 (08:35):
Definitely so.
The location is very important,obviously, and you know a lot
of people come to the mountainsand they think, oh, we're going
to be on a mountain topsomewhere and far away from the
city and the busyness of ourwork life, and it's just going
to be so peaceful and lovelylooking at the birds every
morning.
(08:55):
And then reality hits.
I call it the martini drive orthe martini test.
Do you want to drive up thatmountain after a martini or when
it's dark?
Speaker 3 (09:11):
Or surrounded by tinderbox forest.
Speaker 2 (09:13):
Yes, surround.
Well, we don't tend to havethose fires though.
That's unusual, that's reallyunusual, thank goodness, yeah,
but medical care Well, that'sthe thing you may need.
Medical care, you may, okay, soyou don't drink.
You're telling me you don'tdrink?
Okay, how about the gallon ofmilk?
Test, right, so you're up thereon that beautiful mountain top,
(09:36):
little birds tweet, tweet,tweet, tweet, tweet.
See the bats flying across atnight.
Honey, look, there's a bat.
See the bear rolling byhopefully not rolling, that
would be weird.
Strolling, Strolling not rolling, yeah, rolling would be hit by
a trick, and rolling down, thatwould be, terrible.
So you know it's all lovely andeverything.
(09:57):
It's like honey.
I want to make some pancakes.
Oh, we don't have any milk.
Are you going to drive Even 20minutes on windy roads?
Now, you may love it, in whichcase that's great, but I want
you to really seriously thinkabout that.
Maybe have an air B&B for aweek or two up in the boonies
and just check that's what youwant, because it's one thing for
(10:20):
a summer home, which manypeople have here, because we're
in the south but we're atelevation, so it tends to stay
cooler.
You know we have.
Yeah, it gets a little hotsometimes, but it's not hot like
the rest of the south.
It really isn't.
Speaker 3 (10:33):
Yeah, and the pizza will not be hot.
Speaker 2 (10:36):
The pizza won't be.
Oh, the pizza delivery.
You won't even get pizzadelivery most of the time.
Speaker 3 (10:40):
Wifi it's gone.
Speaker 2 (10:42):
Yeah, you got the Wifi issues.
Thank you, randy.
That's a very the pizza test.
Well, do you get delivery?
That's another thing you missif you've lived in a city, so I
used to live in.
Well, this is blows me away,honestly.
I'm now in Mills River.
I used to live in WestAsheville.
West Asheville, you could getanything Right, I could, you
know, step outside and literallywalk to I don't know half a
(11:06):
dozen of the best restaurants inAsheville.
I don't miss West Asheville atall, honestly.
However, now I'm in Mills River, we're lucky if we can get a
pizza delivered.
Yeah, I don't understand thatat all.
There's a lot of people wholive south of Asheville and yet
it's difficult to get delivery.
So imagine now, just out in theboonies, just a little bit, on
that mountaintop.
(11:27):
It's serene and beautiful, andyou're on your two acres or your
five acres or your 10 acres andnow you can't get a pizza.
Speaker 3 (11:35):
I did it.
I did it in 08 and 09.
Speaker 1 (11:38):
You did.
Speaker 2 (11:39):
I moved out and it was beautiful.
Speaker 3 (11:40):
I could see into Tennessee.
It's gorgeous, wow.
But I couldn't get a pizza ofthat place for nothing, for
loving their money.
Or anything In a net serviceand you know.
And so now I'm right on SweetenCreek in South Asheville and I
can see five, I can see themovie theater, you know, I mean
it's.
Speaker 2 (11:58):
And the mountains too .
There's a lot of this areawhere you can still see the
mountains and really I'm nottrying to talk you out of
getting some peace and being outthere in the peace and quiet.
That's actually where I grew up, that's what I grew up in.
But I just want you to thinkabout it really carefully
because when you build thathouse out there, that's going to
be a harder well, first of all,it's harder to build because in
(12:19):
the middle of nowhere andyou've got all the trucks
delivering everything at windyroads very often they're windy
roads and secondly, if you evercome to sell it, it's most
likely going to be a much hardersale.
Speaker 3 (12:32):
I wouldn't doubt that I leased this house for a year
Thank goodness because I didn'tat the end of that year.
I didn't.
I mean, this thing had a deck,I mean it was a mile down there
to the bottom of that.
Oh wow.
You know it was gorgeous, butat the end of the year I wanted
to come back home.
Speaker 2 (12:50):
Yes, yeah, that's why I think you know, even a couple
of weeks in an Airbnb just bereally realistic what happens if
you know someone twists anankle or needs hospital care or
get down to the.
Do you go to the doctors on aregular basis?
Really, we could create a wholechart on this, honestly, where
you fill it in and we choose theneighborhood for you.
I've actually got one of those,strangely enough, my nerdy time
(13:13):
.
So the location is reallyreally important, so you know.
Another thing is do you want anew home?
What weight does historic charmbring for you?
And I mentioned I mentionedthat I have a whole chart on
this on the website.
If you go to allstarpowhouscom,there's a little search site at
(13:37):
the top and just put inbuilding a home versus buying,
vs buying Building a home willprobably bring it right up.
So do you want historic charm?
We have a lot of beautifulhistoric houses here.
In fact, for Art Deco homes,we're second only to Miami in
terms of how many Art Deco homeswe have or Art Deco buildings.
We also have a lot of arts andcrafts.
(13:59):
That's the predominant stylehere and they are absolutely
beautiful.
We have newer homes being builtin the arts and craft style and
, of course, a lot of industrialmodern.
I mentioned AJ earlier.
That's the primary style of thehomes he builds and they're
absolutely gorgeous.
I wish I had his card with mebecause I'd send you to his
website to look at them.
(14:19):
They're amazing.
I'll post it on our Facebookpage for allstarpowhous later on
.
So a lot of what you see.
You are seeing some newer homesthat are industrial modern.
The primary style here, I'd say, is still arts and crafts,
would you say?
That's true, randy?
I think, so, yeah, so, and a lotof people love that.
Now, if it's a more historichome, you may have a tiny owner
(14:41):
suite bathroom, because that'swhat we used to have.
We didn't have these big,luxurious, giant bathrooms.
They were tiny.
So, you know, is that importantto you or not?
And you may want to put up withit for now because you love the
charm so much, or you may wanta new home that has those things
that are more important to you.
(15:03):
What I usually suggest to peopleis write down a list and put
what I call the waiting next toit.
So you know, make it on aspreadsheet.
You know I'm the spreadsheetgirl.
It's much easier and if you'rea couple or a family, put all
the things down there and thenput some columns at the top.
You know, mom, dad, kids,whatever dog the dog can choose
(15:23):
as well and then score all thosethings one to 10.
And then you consult them andsee which things are most
important to all of you.
Now, like everything in life,it's a compromise.
You don't want to be arguingabout it.
Of course, if it's just you,you're fine, although choosing
the waiting, ie the priority orthe importance of that thing,
can be really tricky.
(15:45):
For example, people say I've gotto have a fence backyard.
I'm looking for a home, I needa fence backyard.
And I always say most often youcan add a fence.
So why are we even thinkingabout that?
You're spending four, fivehundred, a million, two million
dollars on a house but you'reworried about having a fence in
backyard.
That's going to cost us.
Well it depends on big yard is3,000, 10,000, 15,000, depends
(16:09):
how big it is.
But that's such a small amountof the overall cost of the house
we can easily add it.
So it may be immersed, that'sfine.
So we probably want to lookoutside an HOA or find you an
HOA that allows fences, becausethey don't all allow fences.
And secondly, make sure there'senough in the budget to be able
to put that in.
(16:29):
Chances are if you.
You know price points now 450to 550, if you're buying at that
price point, you can probablyafford the additional 15,000.
Or we just put an offer in15,000 less to get your fence in
.
You know how important is it.
Is it immersed?
That sounds like a small one,but it may be important to you
(16:50):
to have a large owner's bathroomor a garage garage.
That's another very common oneIf you've got the extra land
there, you can build a garage.
Yes, it's expensive.
It might be 40, 50, $60,000 fora good, you know, a good size,
well-built garage, not talkingabout just, you know, throwing
(17:10):
up a canopy or something.
However, again, if it'simmersed, then you might want to
think about that.
Here's why the majority ofhomes here do not have a garage,
right, randy?
Speaker 3 (17:24):
Right and I miss when the places that I've had a
garage and I don't now and Imiss it terribly.
Speaker 2 (17:32):
Yes, interesting, isn't it?
So, especially as the wintercomes, it's like oh.
I could pull my car in.
Actually, I don't remember thelast time I used a garage and
I've had one for a long time.
It's really about pulling upclose to the door for me, but
that's a whole other subject.
So you know, think about whatwould it take to build a garage,
because there are very, veryfew here and the older homes
(17:53):
that do have garages they werethe posh homes back in the day
the garages are about big enoughfor a child's toy car.
You can't you really can't fiteven an economy car in those
garages and they're not going tohave electronic doors or
anything else.
So it's really a big storageunit taking up the space where
(18:15):
you could build a modern garage.
The good news is that manyhouses don't have garages at all
and if you've got the space,there's no reason you can't
build that garage.
People always ask why don't youhave garages here, and I think
it's because it's so temperate.
You know we don't get a lot ofsnow Right when we do, it mounts
off really quickly.
(18:35):
We do get rain, but it doesn't.
You know we don't have thatfreezing cold for six months of
the year, please tell me, wedon't.
Speaker 3 (18:41):
No, no Coming into winter.
Speaker 2 (18:43):
We don't we don't Makes me sad.
Speaker 3 (18:46):
Oh yeah, I know the time change.
Oh my God, I don't like thatanymore.
Speaker 2 (18:52):
No one likes it.
Please call in 240 9962, 828240 9962.
I know you're listening aroundthe country 800 570 9962,.
800 570 9962.
We'd love to hear what youthink of the time change.
A lot of people don't know this.
I used to work for an insurancecompany.
(19:13):
Heart attacks go through theroof, Suicides go through the
roof.
The entire country is sufferingfrom jet lag.
Think about jet lag when you'vehad jet lag.
It takes sometimes a week.
It's definitely two or threedays.
The whole country has jet lagfor two or three days.
Speaker 3 (19:30):
It took me about to Wednesday to kind of get back to
normal yeah.
Speaker 2 (19:35):
Car accidents, all kinds of things.
So especially when someoneworks, you know if you're
retired out there and your yoursleep changes and everything,
maybe you don't notice it asmuch.
But when you have to get up andgo to work or take the kids to
school, you know people havereally noticed it, but it's out
there.
The only reason I know this isbecause of working for an
insurance company and theinsurance claims go through the
(19:56):
roof and more people killthemselves.
It's horrible.
More divorces, divorce rateapplications go up.
It's scary.
Speaker 3 (20:04):
So why are we still doing this Congress?
Get off your butts.
Speaker 2 (20:08):
Yeah, really, somebody did say something
interesting to me last night andthis is standard time, so this
is what we would stick at.
Speaker 3 (20:19):
Well, is that true?
I don't know.
Well, the other is daylightsavings.
Some have said that that's theone we would stay with.
Speaker 2 (20:26):
Well, I think that's the one we'd want to stay with.
I do too.
Yeah, I do too, and it's youknow, kids get up very early in
the morning.
That's the argument now.
I mean it used to be forfarmers back in the day.
Kids get up early.
They can't be going early inthe dark it's almost always dark
anyway, because they have to goto school so early, exactly.
Never really figured that outhere.
Our school times were nine tofive in England, so it fitted in
(20:49):
with you know anytime.
Well, it fitted in with parentswork hours yeah Most people
work.
I mean not everybody, obviously,but most people work nine to
five.
So so, if you're thinking aboutbuilding a home, give us a call
1-800-517-9962.
Would love to answer yourquestions, or catch me out Give
(21:09):
me a real estate question andI'll see if I can answer it for
you 800-517-9962.
This is Rowena Patton on theReal Estate News Radio Show on
570 AM, wwnc.
We're talking about building ahome today, so let's talk about
(21:31):
number three.
How much does cost matter?
In other words, how importantis your budget?
Do we know anybody that budgetis an important for?
Speaker 3 (21:42):
I don't know any of those people.
Speaker 2 (21:44):
I don't either, so you know it's so.
The price is quoted for newhomes in the US is 160 to 250 a
square foot.
Good luck with that.
Speaker 1 (22:01):
Is that Bear Bones?
Speaker 2 (22:03):
I don't know who's going to build your home for 160
.
It may be quoted at that, butyou find it usually comes around
300.
About double, yeah and and.
Well, it's the top end.
You know is quoted at 250 fornational.
But here you've got to thinkabout 300 a square foot.
If you want something luxury,you're talking about 400 or 500
(22:25):
a square foot.
Now, nobody builds a thousandsquare foot house, or very few
people do.
However, that's easy math.
So we're going to do a thousandsquare foot house and then
double it.
So a thousand square feet,300,000, which is it really is
build a basic.
It's going to be 300,000.
Now, a 2,000 square foot home,which is what most people build,
(22:46):
1800, 2000 square foot.
You're talking about $600,000for build a basic.
But here's the issue.
So you're at 600 for a $200,000house, 2000 square feet, sorry,
so it does not take intoaccount the land.
Then you got to buy the land ontop of it.
(23:07):
So if you're building a$600,000 house, you don't want
it to be more than 10%.
So you, 60 is 10%, so 90 is 15.
So you don't want to spend thatmuch money.
Make sure you keep it underthat.
(23:28):
15%, 20% tops, right, so thatgives you the budget for the
land.
Now if your budget for a homeis not 700,000 because that's
about what that comes out toYou've got a problem because
you've got the land and the homeand you don't want the land to
be 200,000 and then put amanufactured home on it.
(23:49):
It doesn't make sense becauseyou're not gonna get that many
out.
When you buy an existing home,the prices are quoted square
foot but the cost of the land isbuilt into it.
That's the difference.
When you build a home, youdon't get the land for free.
You've gotta buy the land.
So there's a whole estimatinglist on here.
(24:12):
So you've gotta estimate howmuch your lot will cost.
We've got a link to the site onthere where you can go to
mountainhomehuntcom If you'reinterested in land.
Mountainhomehuntcom, take alook at what land costs and then
, when you've looked at the land, you want to add $40,000 to the
lot price and that's for siteprep.
(24:34):
People say that's so much.
Well, not really.
Take the trees down.
Speaker 3 (24:41):
Dig a well, put the driveway in.
Speaker 2 (24:43):
Sceptic, Sceptic.
Yeah, you really want to allowthat much.
You may want to put some rockfeatures in or do some
landscaping.
Somebody in our neighborhoodjust spent $125,000 on
landscaping alone.
I don't doubt that.
So $40,000 isn't very much.
So you've gotta build that intothe cost as well, and you
(25:04):
definitely want to.
So if a home builder's quotingyou a price, add 20%.
This is an old adage, andpeople sit down with the builder
and they say you know, I'veheard that you add 20%, but I'm
sure you'll keep to the cost,won't you?
And builders go, oh, yeah, yeah.
And then on the journey youthink oh gosh, I just saw this.
(25:24):
You know, you're building ahome.
Now you're all excited.
You're looking in magazines andyou're buying all the home
building magazines.
And you're looking online andyou'll want that chandelier and
it's $3,000.
There's a change order, thatback splash, that builder basic
back splash.
You found these beautiful glasstiles $10,000.
Like it just keeps going.
(25:45):
So add 20% always, because evenif the builder isn't trying to
charge you more, then it's very,very likely that you will come
up with other things that youwant along the way.
So add 20% for that.
So the fourth question what'sthe importance of your timing?
(26:07):
Now?
The great thing is because wehave the builder CPO, and I'll
tell you what that is in aminute.
It's based on the cash CPO.
You can choose your move intime.
Now, how does that work?
Well, you've probably got ahouse you need to sell.
That's fine, because we can dothe builder CPO for you.
(26:27):
That is where we can make afull market value cash offer on
your home, get you the majorityof the money within 12 days and
the rest of the money when weresell it.
After we've done the inspection,the appraisal, your home is
gonna be certified pre-owned.
They sell 11% faster.
Five to 6% more.
(26:48):
Why?
Because we've given it a freshcoat of paint.
We're doing one where we'reputting a new septic in right
now.
It may need a new roof.
When you have your homeinspected and I've been talking
to you about this for years,you'll know certified pre-owned
launched it in 2007.
That's actually where a cashCPO came from.
Now we get our funding partner,zoomcast, to do it for you,
(27:12):
which is awesome.
They put the money up front foryou.
So we've been doing CPO for areally long time.
It's really important to dothat.
Now we can make you that cashoffer.
So and it's a full market valuecash offer.
It's not any old cash offer.
There's an ad running that.
I just got out of New Yorkyesterday that has yours truly
(27:32):
on it.
You can go and see me doing mylittle TV spot at cashcpocom
cashcpocom at the top it tellsyou a lot more about the cash
CPO and how it works and, fromthe builders perspective, what
we do.
And we're working with buildersall around the country to do
this.
The agent will make a fullmarket value offer on your home.
(27:54):
You can choose your move outand you can keep that offer in
your back pocket until yourbuilder is complete.
Who wouldn't want to do that?
I mean, doesn't that make sense?
You've got all your stuff inyour home.
Well, it's very frustrating andnerve-wracking and can be very
stressful waiting on yourbuilder to get finished.
(28:15):
Maybe that some materialsaren't.
It's often not the buildersproblem.
It could be that some materialsaren't available.
Or that beautiful hood that youchose for over the range isn't
available, or that beautifulchandelier that you said change
order.
Oops, it's on back order.
There's all kinds of littlethings.
Now, chandelier probablywouldn't stop you moving in, but
(28:37):
there are things that wouldMaybe the floors that you wanted
down.
You know something like that.
Maybe I don't know, somethinghas gone on where there's been a
leak and we need to replacesome of the floors because one
of the pipes froze or who knows,aj's in Houston, so he doesn't
have that problem at all.
However, you just don't knowwhat happens in house building
(28:59):
and there are often delays.
We all know that.
So it's very, very hard whenyou're doing something as
intricate and complex asbuilding a home, especially when
us, as the buyers, often say oh, we wanna change something half
the way along, you know, andthat changes everything.
It stops the flow of the homebuild.
Speaker 3 (29:20):
Yeah, good point.
Speaker 2 (29:22):
So you know, oh, it's gotta be ready for Christmas.
Speaker 3 (29:27):
Well, this house I've leased while you're building.
My lease runs out.
I've got to ever, you know.
Speaker 2 (29:33):
Yes.
So you know, often people aresaying and we're dealing with
this right now with somebodythat has a deposit down on the
new home.
It's being built and it's gonnabe ready in two weeks, and now
they need to sell the house.
The house is already listed.
And because they were in themindset of the last two years
where things were selling reallyfast and multiple offers like,
(29:55):
oh, we don't need to list itright until the last minute,
well, guess what?
It's been listed for a monthand it hasn't sold.
It's still sitting there.
Yeah, so the Builder CPO isperfect for this.
The agent will come in make afull market value offer.
You can see BuilderCPOcom, itgives you all the details for
this.
It's based on a cash offer, soit's the same thing, except it's
(30:18):
a full market value.
I can't say that enough.
And why do I keep stressingthat?
Because all top realtors aroundthe country 95% of them at
least have a real-to-cash offer.
Real-to-cash offers are usually60 to absolute top 70% of your
home's value.
Buy ugly houses.
(30:38):
You're lucky if you get 50 or60%.
You've got investors out therethat want to buy them at 50 or
60% so that they can make somemoney when they flip it.
It's just a business model.
There's no judgment on that atall.
That's not what this cash offeris.
There's nothing like it on themarket.
It is 100% of your market valuethat's being offered.
(30:59):
It's incredible Not only that,it's a certified pre-owned home
and you all know why.
I know about that because I'vebeen running CPOexpertscom since
2007.
That's where you, as thehomeowner, and you can do this
yourself too.
You, as the homeowner, are verymuch stressed doing it.
If you're listed right now, payfor the inspection.
(31:21):
So you're going to pay $400,$500 for the inspection in most
places in the country.
Some of them are $600 indifferent states and have an
appraisal.
We haven't been doing that forthe last couple of years because
of the changes in value.
Now we're in a declining market.
An appraisal is a snapshot ofyour value in time.
We all know that.
(31:42):
However, having an appraisal islike evidence.
It's not one agent talking tothe other agent saying Mavis,
how did you come up with thatprice?
And Mavis said I did my comps.
And I say well, why did youchoose the one with the blue
door?
And Mavis says why did youchoose the one with the red door
?
And it just goes on and on.
And appraisal is very different.
(32:03):
Appraisers are able to use alot more details than we are,
and it's all they do everysingle day.
You can also offer a homewarranty.
That's the trifecta.
And you can go to cashcpocomthat talks about certified
pre-owned homes.
We've pretty much shifted fromcertified pre-owned homes into
cashcpo because instead of youpaying for the appraisal,
(32:25):
instead of you paying, whichalso gives you all your square
footage and measurements andfloor plans and everything else,
instead of paying for theinspection and then having an
inspection report and, trust me,it's got 40 or 50 items on it,
that's normal.
Every inspection report hasitems on it.
I've never seen a clean one.
I'm at 3200 transactions inWestern North Carolina right now
(32:47):
and a number in differentstates as well DC, los Angeles,
miami I've never seen a cleaninspection.
There's no such thing.
They will find things Well.
The difference in this is whenyou're going to get 70% most
likely 70% as an advanced cashoffer within 12 days, that's why
it's so great for when you moveagain Now you're not just going
(33:09):
to get 70%, which is atraditional cash offer.
Most people give you less than70%.
We're going to paint the inside, we're going to, if it needs it
.
We're going to put newcountertops in, if it needs it.
We're going to fix the roof ifit needs it.
We're going to fix all theitems on the inspection report
at no upfront cost to you.
It does come off the profitwhen it resells, but it's going
(33:32):
to resell for more.
Because guess why, as buyers,we're lazy these days.
We don't want to do anything,we don't want to paint, we don't
want to buff up the floors.
No, what's the clear coat, thesurround coat, the stuff you put
on cars?
Speaker 3 (33:48):
Yes, surround coat.
Yes, a coat of protection onthe finish of your car.
Speaker 2 (33:51):
Have you seen how they're advertising that now, if
you're selling your car, youneed to use this on the black
stuff, because they sell for somuch more when you clean it up.
Speaker 3 (34:01):
I hadn't thought about that I have some of those
companies that advertise with me.
That's a good point, thatstuff's amazing too it really is
.
Speaker 2 (34:11):
It's got thousands and thousands of five star
reviews.
I mean, people love it.
It lasts for 10 years,sometimes Right, 200 car washes,
I think it said.
Now I was trying to figure outokay, if you go twice a week,
you've got the new zip thingsnow where you just go through
any time you want to.
How soon is it going to wearoff?
But at least it's there for thetime and you don't have all
that white stuff on your plasticbumpery bits.
(34:32):
Is that the technical term forit?
Speaker 1 (34:34):
Plastic bumpery bits.
Speaker 2 (34:36):
So your house is kind of the same way People go into
a house.
We had one recently that wewere looking at for a buyer.
This is a true story.
It had a big old dog that hadsome abscesses and things and
everybody loved the dog and thedog was all over the furniture.
Yeah, it was not pretty.
The house needed a deep clean.
(34:57):
There were lots of kids in thehouse, two smokers in the house
who said they smoked outside,but I beg to differ a little bit
.
They had a beautiful sunroomthat was leaking just all kinds
of little things that neededdoing.
Had we put that into thisprogram and we did a deep clean,
(35:18):
a fresh paint everywhere, someminor structural things, very
minor structural things, wecould have spent about $10,000
and instead of selling it for$375 easily got $450 easily For
$10,000?
.
Speaker 3 (35:34):
Yes.
Speaker 2 (35:34):
Most homeowners, because the dog would have been
out, the kids would have beenout, all their big furniture,
smelly furniture would have beenout and the kitchen would have
had a deep, clean, fresh coat ofpaint.
The things that came upon theinspection report would have
been completed.
People love that.
Speaker 3 (35:50):
Oh yeah.
Speaker 2 (35:50):
It allows it to compete with newer homes,
because there's nothing wrongwith it.
Buyers get very, very scaredoff by inspections.
Over 30% of deals it's justover 33% of deals fall out when
they're under contract, which isvery scary.
It's primarily because of theinspection and the appraisal,
but primarily we're going to seemore appraisal issues coming up
(36:12):
here.
They already are.
The next three to five years.
Guys get ready.
That also means homes are moreaffordable.
Just bear in mind things aregoing to come up.
This is a way by getting thecash offer or the builder's CPO,
where they will upfront themoney to take care of all these
(36:32):
things.
They're used to doing it.
We have teams of people nowthat come in and do it.
They have project managers.
Things get done quickly.
You get a proposal.
You're still in control.
Two thirds of sellers get moremoney than with an old fashioned
real estate sale.
I don't doubt that one bit.
You don't have to have peopletraipsing through your house
(36:54):
You're not worried about.
Are they going to steal mypainkill pills or whatever it is
you've got in the house?
Oh, I've unlocked my guns up.
We're in the mountains.
We've got guns in the mountains.
Speaker 3 (37:07):
Yeah, and they stole my cowboy hat and my guitar and
my cowboy boots.
One time you serious, I'm veryserious, I thought you were
joking, I'm still hurting overthat.
That's been 20 years ago.
I don't know who took that, butsomebody was working.
Speaker 2 (37:21):
Some girl probably.
Speaker 3 (37:22):
So no, I was married then and there was people
working in my house all the timecoming and going.
You know, you never know.
Speaker 2 (37:30):
And all of a sudden you look up where's that you
know Well who wants strangers inthe house, honestly, really.
And if you've got little onesor pets, that gets more
difficult and it's really good.
And you know, if you're sellingyour house for sale by owner,
remember this you really don'twant to be in the house.
It's not good, people don'tlike you.
So my sellers sometimes stayback and they want to explain
(37:54):
everything that's been done tothe house.
The buyers don't want to hearthat.
They want to feel like they'rewalking into a new house that
isn't yours, that didn't haveall these problems that you
might be proud of the fact thatyou've you fixed them and you've
created this beautiful gem.
You know.
But it doesn't help when you'relike oh yeah, we put new carpet
in and spent $5,000.
Well, whoop-de-doo, because itprobably stank as your dog.
(38:16):
You know, I mean it just theydon't want to hear that.
They don't want to hear that itused to be half the size.
Like, did you get put thatthose are red flags.
They want to walk around andimagine it as their home.
So it's way better if you areout and yes, that means you've
got to take the dogs out andit's like oh, my dogs are
friendly.
This is what I get told.
Oh, my dogs are friendly,that's great.
(38:39):
Try it when a realtor comes inand who they don't know, and two
strangers come with them andthat doggie somehow knows that
their house is going away.
Yes, they do.
So please don't tell me yourdog's friendly and it's not
gonna hurt anyone.
You don't want the potentialbuyers coming in and focusing on
the dog, that's right.
(39:01):
You know.
Or the dog the dog may befriendly and, you know, maybe
snuggling around the legs.
I mean, we don't want thatNibbling at the shoelaces.
It might be a lovely, friendlydog.
That's not what we want inplace.
Babies crying, you know, kids,stuff, everywhere.
It doesn't help with your sale.
So again, the Builder theBuilder, cpo, buildercpocom you
(39:24):
see more about it there thatallows for you to choose your
move out date and the offer tobe made.
You can move into your new home.
So, let's say, your home isready the day before
Thanksgiving Uh-oh, it wassupposed to be ready two weeks
before Thanksgiving, of course,and it ends up being ready the
day before Thanksgiving.
(39:44):
Oh yeah, so, but that's okay,because we've got your offer in
play and we knew around the timeit was gonna be ready.
We can get you out and intothat new home for Thanksgiving.
Now you get to enjoyThanksgiving.
I mean, that's not so bad, isit really?
So, you know?
(40:05):
And then we resell it and youget another fat check.
Two-thirds of sellers get morethan with an old-fashioned
listing, and timing is theimportant thing.
When you list your house now,you don't know when it's gonna
sell, and you have to trust meon this.
I'm 3,200 more transactions in.
When a home is freshened up,when you clean up the right
(40:25):
things.
I've got a seller coming to menow saying you know, I don't
wanna sell my house right nowbecause I wanna refinish the
bathrooms.
Please don't refinish thebathrooms.
We're in a declining market.
Most likely, most likely, nextspring, your house isn't gonna
be worth as much.
I'm sorry to tell you.
It's normal Seven to 11-yearcycle.
I've been telling you this fortwo years now.
(40:46):
It's finally happened.
We've had one of the longestclimbing markets in history,
where some of us think it wasartificially propped up by
interest rates that were so low.
That's really hitting themarket now, of course, because
we all got used to those 3%rates and we just had a little
drop, but we're still in thesevens.
(41:07):
That's a shock to many peopleand it's flattened out the
housing market.
So please don't spend moremoney on your home.
It's just not worth it.
Don't put that 20, 30, $40,000in.
It's probably not gonna beworth it.
You're not gonna get it out.
If you want to sell, people arelike oh, the holidays are coming
up.
The holidays are a great timeto sell your house.
(41:28):
It's all festive and lovely andyou've got it all decorated.
You've probably got familycoming around so it smells good
and it's cleaned up and you canhold showings to once a week if
you want to, or when you're outMaybe you're out at church on
that Sunday morning Just haveshowings Sunday mornings because
the chances are there's stillnot.
(41:49):
We're in this weird market.
There's not a whole lot ofinventory out there, not too
many homes.
We still have buyers.
So if your home has beencleaned up and it's certified
pre-owned, if you choose not todo the cash offer, then you're
ready to go.
Of course, if you do the cashoffer, you don't have to have
any of the showings or anythingelse.
Just go to cashcpocom, click onGet my Offer and we'll get you
(42:12):
your offer very, very quickly.
It is the weekend so it mighttake it a little bit more than
30 seconds, which is our averageturnaround time.
But you can definitely look atyour value on there and we'll
come to an agreement on thatfull market value offer.
You've got to have somewhere togo.
Of course you probably have togo and camp out with your
neighbors or friends or familyat Thanksgiving at this point,
(42:35):
but when you've got money inyour hand because your home is
sold, then that's when you canmake a non-contingent offer.
A lot of people are so worriedabout selling the home right now
that they're making thesecontingent offers.
Oh, we can't move until we findsomething else.
And they're making thesecontingent offers.
That means I will buy your homein Florida or I will buy your
(42:58):
home in Waynesville when my homein Hendersonville sells.
Most sellers are not going toaccept that.
99% of sellers are not going toaccept that, because many times
it falls through.
And now you're tying the homeup.
They want to get the home sold.
They don't want to tie the homeup.
In the old days, back before Ithink it was 2011,.
(43:18):
It changed we used to have athing called a kick out clause.
We could probably have thatwritten now by an attorney, but
it was great because basically,when you found a home, if you
got a home and a contractcontingent on your selling, when
our person found something else, we could give you 30 days to
(43:40):
either go through with thecontract or not.
It was a great clause in there.
I'm not sure why they took itaway.
We probably could have anattorney write one up for you,
but you don't want to make acontingent offer if at all
possible, because sellers justaren't going to accept it.
The cash CPO offer or thebuilder CPO offer allows you to
make a non-contingent offer.
You've got to have some equityin your home, obviously, because
(44:02):
if you're not making a profityou're not getting any money out
to put down on your new house.
But usually it allows you tomake a non-contingent offer.
Ie, you don't have to sell yourcurrent home because we've
bought it.
So that's.
The timing piece is very, veryimportant.
Now, around the country theysay that the average time for a
(44:22):
build is seven months.
I'm guessing if we had AJ ontoday he would tell us that is
what it takes him, even thoughhe's building an ultra luxury
there in Houston.
However, here I would say 18months.
That's what I'm seeing, unlessyou have one of these tract home
builders which are veryuncommon here, but we do have a
(44:44):
few they might tell you you knowthere might be halfway through
a home already, so it might bethree or six months.
That is a way to do it.
They tend to be on very smalllots, little, teeny, tiny lots,
which is great for some peoplebecause you don't want the
maintenance.
So if that's the kind of homewe can find you.
Those too, most people aredoing either buying something
(45:08):
that's pre-construction orthey're building a custom home
somewhere or other, or theymight be putting a modular on,
even a modular.
Right now there's a modularplace in Fletcher.
I don't think anything in thereis under 400,000 for a modular
home.
Now the modular home you've gotto drag out to the land and
you've got to put the foundationin.
(45:28):
That's where that 40,000 atleast comes in, plus the land.
So again we're at 600,000 for amodular home.
We're also asked very often, youknow, we want to piece of land
to put a mobile home on.
That's fine too, quite,honestly, your best way there.
This is what I tell people.
If you're not in a big hurry,we'll set you up with a search
(45:50):
for just mobile homes, becausesome of them are much older and
worth about $5,000.
They just need pulling off.
But the great thing about havinga home in place is you've got
the septic or sewer, you've gotthe water or you've got the well
, you've got the driveway,you've got the trees taken down
that need taking down.
You're probably gonna be ableto put it there, because there's
(46:11):
one there already.
Not necessarily we have tocheck that out, of course, but
it can be a much less expensiveway of doing it Because you
don't know if that land's gonnaperk.
You've got to check if it'sgonna perk, ie can you put the
septic and the water in.
Most often in the mountainsyou're not hooking up to city
water and sewer.
There's still lots of veryhigh-end neighborhoods here that
have septics usually publicwater in the higher end
(46:34):
neighborhoods, but they haveseptics.
So you know it's not unusual atall when the sewer line wasn't
taken down the road.
And again, think about yourWi-Fi.
Many people work remotely.
Now a lot of people are lookingto work remotely, especially if
you're in high-pricedCalifornia or other high-priced
markets that you're moving outof DC's, another one, new York's
(46:56):
, another one we see a lot ofpeople coming in from those
markets Florida as well Then youknow you're coming in because
you want to spend less money ona property.
The million-dollar condo you'reselling in San Francisco
probably two million dollarsbuys you a lot of home here.
So you know, obviously, takethat into account.
(47:21):
And the fifth question this istaking us right back to what we
started with Is the land cost 15to 20% of your budget?
Now why do I say that?
Because you know people want toput a literal stake in the
ground by investing $30,000 or$40,000 in land.
(47:43):
Without looking at that entirebudget, I'm taking you right
back to where we started here.
Whether or not you're buildingnow, or in five years time or 10
years time or whatever it is,you're worried that land's going
to go away.
I hear that a lot and, oddly,it hasn't yet.
Consider what price point youthink you'd be comfortable at
and, quite honestly, if youcan't come up with that, I
(48:05):
wouldn't be buying land at all.
You know what's your dream home.
What would it cost now?
Yes, we've got to add somepercentage at what it's going to
cost later on.
Or maybe you want to build itnow and Airbnb it or VRBO it
Meanwhile.
Why you, you know, wait forthis dream and now you can
actually use it yourself in themeantime, rather than having
(48:27):
land there that's going to costyou money every single year, if
only in taxes.
And people say I want a view, Iwant it Creekfront.
You know, I want to oceanfront.
Sorry, we can't do that for youhere.
So the land tends to get alittle bit more expensive than
you were thinking and again.
You can find this atallstarpowhousecom.
There's the entire list on herewith all the numbers Little
(48:50):
easier to see as a visual,obviously and just type in
building a home into the searchbar at the top of allstarp house
.
It gives you all of thesefigures.
We send it out to everybodythat signs up on our website at
mountainhomehuntcom.
That's the other way to do it.
If you find that easier,mountainhomehuntcom, click on
contact us and just ask for thetable showing you what the
(49:15):
budgets are for land.
So if your total budget, say, is400,000, that's a common one.
Actually I've got the 333,000here.
That's the most common budgetfor a house in its entirety
3,000 to 400,000.
What that means is you've got$40,000 in improvements and this
(49:36):
is based on a 200 per squarefoot build.
That is very low end, very lowend, and a home with 1417 square
feet.
That is not a very big home.
Two bedroom, one bath or twobedroom, two bath maybe you know
, if you get the flow right youcan do it, but 1417 square feet
is not a big home by any means.
(49:57):
So we can get you, you know,1,400 square feet for 333,000,
with the land being 15%, 40,000in improvements and that's only
200 per square foot.
That's going to be very, verylow end, if we could even do it
at that.
What that means is you don'twant to spend more than $10,000
on the lot, so you're mostlikely not going to get views,
(50:20):
you're not going to get Creeq,you're not.
You're going to get a verysmall lot that's value priced.
So let's look at 400,000, thenext most common price point.
So, yeah, I think our budgetwill be 400,000.
That, with $40,000 improvements, 200 a square foot, which
honestly, is not realistic atthis point.
The 400, I need to redo thistable because I don't know where
(50:42):
you would get 200,000, 200 persquare foot.
So this is a 1700 square foothouse, which again is not a big
house.
Most people who are buildingbuild 2000 and up.
So 1700 square foot house andthis is a 200 square foot, which
again is very low.
That don't spend more than$20,000 to hit that 15% and
(51:04):
that's a total budget of 400,000, right, 1700 square foot house,
very, very basic.
So my point is you could we canalso set up a search for you at
400,000 and find you a homewith everything in place.
I'm not telling you not tobuild, I just want you to go in
with eyes wide open.
So let's go up to what we thinkof as a bit more luxury 533,000
(51:29):
.
There are people out there thatconsider themselves luxury 500
to 600.
So if you're at that 500 to 600, you don't want to spend more
than $50,000 on a lot, and$50,000 on a lot is not a lot of
money.
That's not going to get you awhole lot of lot.
Speaker 3 (51:47):
No no.
Speaker 2 (51:48):
So let's say, if your total budget is $1 million, you
don't want to spend more than$120,000.
And again, 200 square foot at amillion dollar mark really is
not realistic.
So it's going to be more likedon't spend more than $100,000.
And that's going to get yousomething like a 4,000 square
foot, something like that home.
(52:10):
So I hope that puts it intoperspective for you when you're
building a home.
We haven't done a show on thisfor a long, long time.
And remember, if you arebuildercpocom, it's all based on
the cash CPO.
You can check it out atcashcpocom.
Of course, if you're eventhinking about selling, have us
come in, get a value.
(52:30):
Or you can go to cash CPO andget your value right there.
Cashcpocom this is Rowenapattern, all Star Powerhouse
Brokered by EXP.
We can do the cash offer allover the country.
We have lots of partners nowall over the country, so it
doesn't matter where you're at.
I know we have listenerseverywhere.
So if you're even thinkingabout selling or selling in the
(52:53):
spring, let us come in now andlet us discuss with you what
this would look like, so youdon't waste money on the wrong
things.
Please, please, please don'tupgrade the bathroom.
I'm sure there are things wecan do with it or we can help
you do at a lesser cost.
All top agents everywhere inthe country cash CPO.
We only have top 1% agents.
(53:14):
You've got to be in the top 1%of the market to be in it.
We are able to help you on whatto spend the money on.
I will see you on the radionext week.
It's been great having you heretoday.
Rowena pattern, all StarPowerhouse.
Give us a call 828-333-4483.
Speaker 1 (53:34):
This has been the Plain English Real Estate Show
with Rowena Pattern.
Visit Rowena and post yourquestions at radioashvillecom or
call her at 828-210-1648.
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