Unlocking Successful Real Estate Appraisal Techniques and Valuation Secrets | RETalkPodcast | Episode 15 - Real Estate Talk Podcast with Jesus Castanon | RETalkPodcast

Episode Transcript
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Speaker 1 (00:03):
All right, guys, to all our millions of listeners.
The reason why we have not hada podcast for a while is because
we were actually getting somenew equipment.
We were getting prepared, evengot a new laptop.
So we were preparing to giveyou phenomenal service moving
forward.
All right, so we should bepumping them out.
As a matter of fact, we'repumping out two today.

(00:24):
We're pumping out a serious one, but it kind of bothers me that
much in my face.
You needed that close, yeah,all right, I'll get used to it,
I guess.
So, yeah, well, we have aserious appraisal one and then
we have a complete nonsense oneat four o'clock today.
So you'll guys will realize whoit is and what it is.

(00:44):
But so this particular one herealso.
First and foremost, I got MrJosh Cadillac.
Everybody knows Josh Cadillac.
Jay's been with us.
Jay Perez, dayland Differencehas been with us for a couple of
times already, I think.
So this is the hardest I'veworked to get a podcast set up.

(01:05):
This is by far the hardest man.
We've had multiplecancellations, reschedulings.
I've offered sexual favors todifferent appraisers to be able
to come online with us and helpus out and just to get an

(01:27):
appraiser's feedback on this.
But Jay finally got one.
I won't tell you if I had toperform the sexual favor or not,
but he will be on.
Jay's on.
The favor wasn't for Jay, itwas for the appraiser, but Jay's
on also.
Jay, a funny story about us.
You're actually perfect forthis podcast because the way we

(01:49):
met was actually through anappraisal process or a
comparable process.
The day I fell in love with Jay.
Jay and I have been doingbusiness for five years now, but
the first day that I was like,wow, look at this man, I fell in
love with his brain and hisappraisal prowess was.

(02:10):
I was with one of my realtors.
She asked me hey, suze, what doyou think?
I actually had the listing?
What do you think?
Which lender should I pick?
And I go, okay, well, who doyou got?
And then I had Jay Perry'sthere.
I'm like, well, let me callthis guy.
I called Jay and what impressedme was that he had the numbers
completely set up.
He knew exactly what theproperty was going to appraise

(02:32):
for.
He knew that it was going tocome a little bit short, but
then he was going to give somelender credits and he just had
the numbers.
What really, really impressedme like all jokes aside was I
had never.
First of all, I called and hepicked up, which was great,
which is unheard of almost inthe mortgage business, and then
he just had.
He had done the comparables, hehad run it through the

(02:53):
appraisal, he knew exactly whatnumber this property was going
to come in at Him and I havetaught a bunch of appraisal
classes together, and notappraisal classes but comparable
classes and everything likethat.
So it's kind of cool because wehave a different style of coming
to a value.
Right, I've learned a lot ofthings from him too.
Kind of like has a differentstyle.
And that's really whatappraising for all the millions

(03:14):
of brand new listeners that wehave, we could have 10 people do
an appraisal or 10 people do acomparable.
Everybody has a differentnumber and everybody's right
because it's an opinion of value.
So we're going to go ahead andgive us, give our styles of
reaching that number today.
But you know, hey, it's just astyle.

(03:34):
Like you know, what programs dowe have out there to get?
We got RPR, we got just aregular old MLS, we got public
record, we got IMAP.
I mean, is there anything elsethat's used out there?

Speaker 2 (03:45):
There's lots of valuation tools that people use.
I mean for me, tried and true.
What do you use?
The MLS.

Speaker 1 (03:50):
Straight up MLS.

Speaker 2 (03:51):
Because normally what I'm doing.
If I was doing a distressedasset, maybe I would do
something different.
But for just a straight upmarket valuation of what a
property and the fair and openmarket is going to go for, or
the place to go is the fair andopen market.
This is where it's recorded.
So I don't want the sale thatUncle Louis did to his.
I actually know my uncle namedUncle Louis brother.

Speaker 1 (04:13):
Yeah, so I don't want to know what he has coronavirus
.

Speaker 2 (04:16):
I don't want to know what Uncle Louis did with his
nephew to take and get theproperty to him without any
realtors.
That's not a real transactionto me, so I want to weed those
out, and the MLS does that forme.

Speaker 1 (04:28):
Yeah, look.
And the reason why I was soexcited and was willing to go
beyond and beyond the call ofduty to get this podcast done is
because I know, listen, we'vedone what 15 podcasts so far.
What number is this?
14, 15, whatever.
I know what podcast is Allright, I know which one's shit
and I know which one's good andI know which one's going to be
good.
This one's going to be goodbecause we have right here in

(04:53):
this.
We have 40 and we had maybe 50years of appraisal, comparable
experience.
And now one thing, what I wouldsay qualifies me to be able to
be in this conversation would be21 years of doing comparables
for myself.
But if anybody was around in2008, crash.

(05:15):
So imagine, man, I worked mybutt off.
Everything was great, businesswas great.
All of a sudden, business justgoes to crap and the only way
there was no such thing asclosings anymore, just business
deal, stop closing.
The only way you could reallystart making enough money to
even support your life, yourlifestyle and if you wanted to
stay in real estate, was doingwhat they call BPO's, which is

(05:37):
broker price opinions.
So these banks would pay you 30bucks, 30 bucks, 40 bucks, you
know so $40 to do a broker priceopinion.
That took you going out, takinga picture of the property,
filling out a form.
So the banks would order threebroker price opinions.
So when they would put aproperty on the market they
would get three brokers likemyself and they would say, all

(05:59):
right, give me three brokerprice opinions, right?
So for two years of my life Iwas eating and living and
keeping my company afloatthrough BPO's 30 bucks a pop.
I had to do thousands of them,tens of thousands in the in
those years that I did.
So you know what I wasexplaining to somebody yesterday

(06:20):
, what you realize in doing andonce you really reach
enlightenment of, you know,evaluations of properties, you
realize you don't know shit.
You realize that it's you know.
You know that you really don'tknow.
You know that at the end of theday you could come up with a
number, but at the end of theday that appears to come up with
another one that's drasticallydifferent, because he completely

(06:42):
sees it completely differentthan you do.
Sure you know what I mean.
So, jay, when you, what do youuse?
You use the MLS, rpr, imap.
How do you come to a?

Speaker 3 (06:49):
value.
I usually start off with IMAPbecause it's kind of my shortcut
and then I'll pull my compsfrom there, and then what I do
is I cross reference them to theMLS why?
do you start an IMAP though?
So because a lot of times theMLS public record, public record
and then that you know you'llfind the Louis, you know
transactions there.
We're trying, but on the MLSsometimes the filter won't

(07:12):
update the comp.
So a lot of times there's apending comp that is the magic
comp for me, that's closed, butwhen I go to the MLS it's still
showing up as pending.
So I usually like to go off ofIMAP first, because it'll pull
public records and then I'llwork back into the MLS.
A lot of times I'll pull stuffon the MLS really show up on
IMAP.
So I usually try to crossreference one of them.

(07:34):
If I'm quick I'll just stay onIMAP and IMAP usually gives you
a little logo with the realtorsign letting you know those are
listing on it.
You know that verifies that itwas an actual IMLS transaction.

Speaker 1 (07:43):
So, just to make sure , the reason why he uses IMAP,
just so the people that are outthere that are brand new,
because you know this podcast iskind of for those brand new
people too you know it's it's,and while the MLS only pulls
properties that were listed onthe MLS, imap will pull a
property that was never, it wasa sell by owner or it was
anything that was sold not onthe MLS.

(08:04):
Is there a lot of those?
Probably not, but, like Jaysays, it might be the one one
comp that you need.

Speaker 2 (08:11):
The other piece that he said is this we know that
with the MLS it is kind of acrowd sourced website, if you
will, by agents, and agentsaren't always the most diligent
at changing the status of theirlistings.
I think that's what I got fromwhat Jay said, and so it's
closed.
It's recorded, but it's stillshowing as a pending sale on the
MLS, so it's not appearing inmy closed comps and, at the end

(08:34):
of the day, it might be closedright.
Absolutely, and it might beclosed, and so he wants to get
that information as quickly aspossible.
Now the MLS theoretically iscapable of giving that
information more quickly thanthe IMAP is, but that would
require the agent to actually dotheir job and as soon as it
closes, to close it, as opposedto waiting for it to be recorded
and coming back.

Speaker 1 (08:52):
Yeah, yeah, so you.
So you go on IMAP and then, andthen you go on, and then you go
on on the MLS and you do whatyou do a radius search, or or
you do a subdivision search, orwhat do you do?

Speaker 3 (09:05):
Usually I do radius, so I kind of work off of a few
rules.
I would say to to you know, tryto stay within a mile within a
certain time frame, depending onthe area.
But yeah, I would say I justkind of stick to whatever I run.
You know, I think IMAP ispretty good at giving you your,
your one mile, three months, sixmonths, and you know I'll get

(09:28):
an idea of what I'm looking forand how much action.
And then from there I'll go tothe MLS and then whatever I
decided I found the IMAP andthen plug that information into
the MLS and then, what do you do?

Speaker 1 (09:38):
You do a 0.25 mile radius.
What do you do?
0.25?

Speaker 3 (09:42):
I'll start off a half or a mile.

Speaker 1 (09:43):
You know, I start, I start 0.25.
0.25.
I go 0.25 and I get.
If I get enough comps at 0.25,I don't go.
And the good thing is, by theway, you want to text the
appraiser.
Gentlemen, I already did.

Speaker 3 (09:56):
I already told them we're on, we're active and then
we'll go.
I'll let them know when we'restarting, okay cool Now.

Speaker 2 (10:01):
quarter mile is good because it gives you the
hopefully the homes that aremost labor, that's an even
Absolutely.
It's right there.
But you have again, you have tojust obviously watch to make
sure where the addresses are,that you're not across the
street in the much nicer, muchworse subdivision.
And so sometimes I have to go alittle bit bigger because the
subdivision maybe I'm on theedge of the subdivision Right,
but as long as I have the numberof comps, as long as I can get

(10:22):
four or five decent comps, yeah,on the closed side, because I
don't care about the active sideso much.
The closed side is where thebusiness is.
That's what people haveactually agreed to pay.

Speaker 1 (10:31):
And that's the stuff that I want to ask the appraiser
, because, okay, so we do all ofthat Right.
So one question is definitelythat I want to ask him is all
right, so subdivisions, right?
Like if we're in an area wherethere's an actual community with
a guard gate and amenities andeverything like that, of course
you got to stay there.
But if you're in a regularneighborhood, the subdivision

(10:52):
even matter.
You know what I mean.
Do you even take it into play?
And you know how many days backdo we go?
You know, those are the thingsyou know.
Obviously, I've been alwaysdoing 90 days.
I go.
Point 25, right, how many, howmany comparable do we actually
need?
Right?
So you know land, how do theyhandle land?

Speaker 2 (11:13):
You know, my question would be more so like, because
we, when I was makingadjustments, I did a kind of VPO
as well.
What kind of adjustment do youmake from something built in
1958 versus built in 1978?
Is there even one anymore?
Yeah, I mean, does it matter?

Speaker 1 (11:26):
Well, and here's another thing.
So when I first started asidefrom there being green letters,
you know, and black screens,when I first started doing
comparables that's how fuckingold I am already right Like like
, literally, it was like thatDOS green letters.
That's the first comparables Idid.
That's the way I did them,which is fucking scary, by the
way.
All right, let me not getdepressed on that.

(11:46):
But what we would do is areas,right.
It wouldn't be area section,area section, area, section,
subdivision.
You know that's the way youwould do the comparable, right.
So you know enough that all ofa sudden I saw that we got away
from that.
So has George been doingappraisals for a long time?

Speaker 3 (12:05):
Actually, I got George here on the line.
He's on speakerphone, he'shearing you guys, just fine.

Speaker 1 (12:09):
Oh no, but we could call him on our system though,
right, so it doesn't sound likeshit.
Yeah, okay, let's call them.

Speaker 3 (12:14):
The text is number Jake, they're gonna call you on
the system, so he's hearing you.
In the meantime, hold on.
Oh no, so yeah, so he's beendoing appraisal.
So George is known as the guywith the most licenses I was
actually joking with him earliertoday Not more than the guys
with the most appraisal licenseswe know.

Speaker 1 (12:31):
Okay, yeah so I've been doing it for quite a while.
All right, let's get a.
What's his number, Jay?
Well, we can't say it on thepodcast.

Speaker 3 (12:38):
All right, I mean we should I'm gonna send it down.
I mean unless he wants to get abunch of people calling him for
appraisal.

Speaker 1 (12:42):
Yeah, we should do that for canceling three fucking
three publicity now.

Speaker 2 (12:46):
They're gonna call him to find out what kind of
sexual favors you want.

Speaker 1 (12:50):
We should do that.
We should do that.
So we got everybody cranked on.

Speaker 3 (12:54):
Yeah, it's funny.

Speaker 1 (12:55):
All right, so I'm George.
All right, so the top number orthe bottom number?

Speaker 3 (13:00):
the 76 number.
Okay, we gave a hint.
We gave a hint, he's a 76 guy,yeah.

Speaker 1 (13:06):
You can just try all the 76 numbers and you'll get
them.

Speaker 3 (13:08):
Yeah.
So one thing I wanted, I wantedto throw out a 20 because on
the IMAP, the IMAP also has alittle map on top which we guys
were talking about, the pointtwo, five, and that also why I
kind of jump in, because I couldlook at the map, look at the
word where the cops are, andthen kind of go from there if I
gotta go out or stay there.
So that also helps right.

Speaker 1 (13:25):
So I'm wondering if from you know, why did it go
from areas to to zip?
Goes you there?
All right, then we got a minute.
So, yeah, how did it go fromareas to, like that radius was,
was the, was the advent ofmatrix?
Basically, what made it go?
From you know, cuz I remember,I remember for it.
I remember going on my from mygreen letter screen to a

(13:47):
Physical map that was hanging onthe wall.
A physical map that was hangingon the wall, yep, right, and
then I would go and go see whatarea and see what section it is,
and then I would usually pickthe four Different sections
around, so I wouldn't just pickthat one.
You know that type of stuff ishe on on.
Yeah, george, you there.

Speaker 4 (14:03):
Yeah, I'm here.

Speaker 1 (14:04):
There he is All right , bro.
Finally we got this guy, allright.

Speaker 4 (14:10):
Thank you guys for having me.

Speaker 1 (14:14):
But, yeah, yeah, I won't tell everybody what sexual
favors I had to do to get youon, but, but, but, whatever you
know, let's just leave it atthat.
Let their minds wonder.

Speaker 4 (14:23):
Okay, good, it's been a footer of all right.

Speaker 1 (14:28):
So all right, man.
So here's.
Here's, I guess, the firstquestion.
The first question I want toask, right, um, what?
I remember using areas andsections when I did my
comparables right.
So I know that you guysprobably use something different
, or, or, you know, I kind ofdon't know.
You know so what?
I went from areas and sectionsand all of a sudden we started

(14:49):
using Radius.
So that way we usually we justtalked about it right now we all
go and we put the address ofthe property and we do a point
five mile radius or point twofive mile radius.
You know, we kind of pull thosecomps.
So how is it that you guys doit?
You know what, what?
Because that's really all thatmatters at the end of the day.
We could go ahead and guess allwe want.
We talked about Jay using IMAPand then and then go switching

(15:12):
over to the MLS.
I'm a straight up MLS guymyself.
I think Cadillac is too.
You know.
I know some people that usingRPR is RPR, because I, but I
also know that RPR.
Sometimes you just put theaddress, you press a button and
all of a sudden the value comesout.
Do you even go on that thing.
So.
So yeah, tell us a little bitabout your first of all, how
long you've been doing this, whoyou are and and from what I

(15:34):
understand you you're acommercial appraisal.
You're been residential for avery, very long time, so give a
little bit about your history inthe business first, please.

Speaker 4 (15:42):
Thank you.
Yeah, thanks again for havingme on.
I've been in the business forabout 20 years.
I started in the business whenI was in college.
I do residential and commercialappraisals, all sorts of
clients from mortgage brokers tobanks, to attorneys, insurance
companies.
I've also testified as anexpert witness in legal cases

(16:05):
Cool, and you know we're just uhwhere I'm happy to be on and
happy to To chat with you guys.

Speaker 1 (16:12):
Cool man.
Thank you, man, thanks forcoming out.
So yeah, what do you use?
So you go under.
What's the first thing you do?
You go to public record to seethe the square foot.
That's another thing wementioned.
I always go on the publicrecords and uh and search the
property right for the squarefootage.
So is that the way you start to?

Speaker 4 (16:27):
Listen, this is, this is a great.
This is a great question,because a lot of times, as an
appraiser, you'll get to theproperty and the realtors.
I can't have all these callsfor you and you're like, okay,
uh, but then you know when, whenyou really kind of get to the
bottom of it, they're not reallycomparing apples to apples,
right?
Uh, so, for starters, uh,whatever, you Want to get a

(16:47):
value of a home, you want to,you want to define a market area
, right?
So you were referencing on thels 250 mile one.
You know, one mile, that'sreally.
That's really something bankshave have implemented, um to to
keep comps with a one mileradius if possible, um one mile.

Speaker 1 (17:05):
That far, that far.
So you're telling me that Ishould do comparables that far a
mile, or do I have to startSmaller and if I don't have
enough I go up to a mile?

Speaker 4 (17:16):
Well, I mean, obviously, the closer you can
find the comps, the better,right.
But a lot of times you don'tkind of situations where A
home's been completely rehab,the guys spent three, four
hundred, 3400 thousand rehabbingit, or it's on a lake, or you
know, there's there's, there'sreasons to it and the search
criteria depending on whatcharacteristics the property has
, right.

(17:36):
So you want to make sure you'recomparing apples, that, um.
So, to answer your questionabout radius, or, or one mile,
half mile, you really want tofind a market area, right, I
guess.
Say, for instance, you have aproperty that's in coral gables,
right, and it's, uh, south ofus one.
You want to make sure that thecomps that you're looking for

(17:57):
are still in coral gables, butit doesn't cross into the side
of us one, you know I mean.
So you know it's just.
It's just kind of defining whata buyer would you know where,
where their limits would be Forthat buyer trying to identify a
home in that specific part,right?

Speaker 1 (18:11):
So we have millions of listeners and some of them
are not here in Miami.
So they explain that we have toknow the actual area.
So your knowledge of the areais actually important.
You have to know that if onthat other side of the street,
even though it's just the otherside of the street, it's a whole
, completely different world.
You want, you need to know thatcorrect and that's why an
appraisal that knows the area isimportant.

Speaker 4 (18:33):
It's identified the other side of the tracks
basically, absolutely,absolutely critical.
Uh, there's been talks aboutavms replacing the appraisal
industry for years and years.
In my opinion, it can neverhappen.
Uh, there's, there can never bea machine that that can come in
and and and give you theexpertise of someone who has,
you know, a tremendous amount ofexperience and knows.

(18:54):
You know what the limitationsare, you know where the
boundaries have to be for eachspecific sub market.

Speaker 1 (19:00):
Yeah, also talking about the machines doing stuff.
We got to talk about the, the,the dreaded, famous Zestimate
before.
Before you hang up, before youhang up, I want to get, I want
to get your input on the fuckingzestimate bro.
You know, I just I just want toknow that.
So Go ahead.

Speaker 4 (19:16):
Yeah, to cut you off.
Sorry, to cut you off realquick.
I was speaking to a mortgagegroup.
I definitely won't say his name, but uh, he was like.
He called me up.
He's like yeah, I got yourappraisal.
I mean.
I don't know it was.
It was it was, it was higherthan the zestimate.
You know, and typically myexperience is the zestimate is
the bottom of the market.
Oh, I mean, I, I chuckle that.
I was like man, I, I, I see the.

(19:38):
I see it different.
You know, a lot of times thoseestimates are inflated and
they're kind of, uh, you know,they're there numbers that are
typically towards the top of themarket.
So I kind of I kind of laughedat that.
But you know, those estimatesis just, it's basically a
machine, right, and it's gonna,it's gonna, it's gonna grab the
nearest comparables.
Let's say, if you're in a, in ain a in a, some in a sub market

(19:58):
where there's some Water-freeproperties that lead to the
ocean and then there's dry lots,right, it's just gonna grab
Everything from that market.
So you're not really, you'renot really doing doing it
justice.
If, if you're comparing it toproperties that are on the water
and have access to To the oceanBehind their holes, versus a
dry lot, you know so, then thatbecomes a huge issue in those,

(20:20):
in those estimates.

Speaker 1 (20:21):
Yeah, yeah, so just just to start again.
So I'm gonna, I'm gonna log on,so this is okay, let's, I'm
gonna take you through myprocess, all right, and I get, I
will add some of j's process,the catalyzed process, and tell
me if we're going wrong in anykind of way.
All right, so I'm gonna log onand I'm gonna go to the, I'm
gonna go to the uh, the countywebsite Public record and I'm
gonna see what the squarefootage is registered on that

(20:44):
property.
Okay, I want to know what theactual public record says on
that property.
Okay, um, because what I wantto use is living area.
Okay, that's so far, so good.

Speaker 4 (20:56):
You're.
You're on the money.

Speaker 1 (20:57):
You're on the money, okay.
So living area, then I'm gonnago to the mls, which is usually
exaggerated by the realtor andthey usually put the living area
Incorrect for whatever reason.
Right, then they start puttingall kinds of shit and the
description and everything so.
So we're where we, we make surethat we're comparing living
area to living area, and thenwhat I, what I do is I start
with a 0.25 Mile radius.

(21:18):
I want the immediate neighbor,okay, first.
So if I have, if I have Threecomparables there, I'm good.
Okay, I close up shop and Ileave, or or do we need more?

Speaker 4 (21:32):
I mean, it depends, you know, when did those three
comparables trade are 90 days,sorry, sorry, sorry.
90 days, no, no, 90 days.

Speaker 1 (21:37):
They're they are.
They are similar becausethey're they're they're
immediate neighbors, similarsubdivision, similar
construction.
If I find three, what I'mtrying to get at is how many do
I need To close up shop, closemy laptop and go?
All right, I'm done.
I'm sorry You're breaking up.

Speaker 4 (21:52):
Yeah, so yeah, just wondering.
So, how many do I need in orderto close my?

Speaker 1 (21:55):
laptop and say all right, I'm done.
You know, I got, I got enoughcomparables that are similar and
, and you know, is it three, isit four?
90, as long as it's?

Speaker 4 (22:05):
90 days, 0.25 mile radius, 90 day closings Well, I
mean Every every property isdifferent, but I mean, if you
are, you're able to find, youknow, three columns within 90
days, within 0.25 a mile, andthey're all similar bedroom,
bath, counter, similar size.
I mean I don't think there'smuch more to talk about.
Yeah, when you say similar size.

Speaker 1 (22:28):
When you say similar size, we're looking at what a 20
percent uh higher and lower asfar as square footage.

Speaker 4 (22:35):
Ideally, ideally, want to stay in that range, um
so most similar the better.

Speaker 1 (22:40):
So a thousand, thousand thousand square foot
property where we could look up.
We could go as high as 1200 oras low as 800 in square footage.

Speaker 4 (22:49):
Correct and and keep in mind.
The thing here is that it's notlike there's going to be some
time so you're going to have todepart from those guidelines,
but as as a as a basis yes,that's, that's a good basis to
stick by.

Speaker 1 (23:02):
Okay, so same building, same okay, same
footprint.
That's another thing I learnedfrom j.
He pulls out, he pulls out thefootprint of the property in the
um, in the public record.
So he right, you, you know theaerial view.
So maybe the property is likean l shape or something like
that.
Okay, and, and you can look atthe aerial photograph and you
can see, well, it's not an lshape anymore.

(23:22):
We're in high aliyah.
I shouldn't pick on high aliyah, but I will because it's fun.

Speaker 3 (23:25):
Well, you want to pull the building To see if
there's additional squarefootage, if there's an add-on
when the you know, anunpermitted addition or
something like that that mightaffect the square footage.
So usually I'll go ahead andpull up the the building and
check that out as well and see,you know, can start getting some
insight on possibly if there'ssquare footage that doesn't show
up on public records but it'sthere.

(23:45):
That might give us a chance toto come back a little larger
than what we're looking at onpublic records.

Speaker 1 (23:50):
Right.
But the aerial view of theproperty sometimes you know, not
highly, I guess highly and itwould never do stuff, stuff like
this, right, but um, there'scertain areas, certain areas
that you see and the, and it'san, it's an l shaped, you know,
and as far as the what'sregistered in the public record,
you can see that the propertyis l shaped.
And then you look at the aerialphotograph and it's an s Right,
and you get there and it'sthree floors right.

(24:13):
That there's areas, not highaliyah, that that have that
problem.
It's very common there.
So you know what?
What do you do there?
You just get there and you'rejust appraising.
What you know is is uh, is isregistered or or uh, or.
What do you do that?

Speaker 4 (24:29):
Well, it all depends Uh.
You know, typically, whenyou're working with uh
knowledgeable Brokers such as jPerez from prmg, he kind of
gives you the heads up.
He's like, hey, you know, thisproperty's bigger than what's
affecting on public records.
You know, uh, then when you getthere, you kind of have to
inspect the property and see ifit was done in a similar,
similar workman like manner asthe rest of the home and then

(24:51):
you can make the determinationif it's either going to be
living area or not.
Living area.
You know, but for the most part, uh, typically for the, for the
most part, it is considered tobe living area and you can
consider living uh non permittedAreas to be considered living
area.

Speaker 1 (25:07):
Okay, so the the whole garage thing, is it, uh,
is it a urban myth that, as longas it it's, it's?
It's the step, a step down Inthe garage addition that you're
not allowed to count it.
Is that an urban myth or isthat real?

Speaker 4 (25:21):
I mean, uh, you know that used to be the case, Um,
but I think fanny may has kindof expanded from that and said
you know, if it's typical forthe market, you can find sales.

Speaker 1 (25:33):
Typical for the market nice.

Speaker 4 (25:35):
If it's typical for the market and you can find
sales or similar garageconversions that you know the
the buyer for that sale has hashas given value towards that uh,
which is very, very common downhere in south florida uh,
especially high aliyah andwestchester Um, you know, a
converter garages to beconsidered as part of the living
area.

Speaker 2 (25:54):
So I would actually say it's atypical to see one
where it's not converted.

Speaker 1 (25:57):
Yeah right.
There is areas that you're ahundred You're.
You're a hundred percent right.
It's.
For whatever reason, culturallydown here we don't have use for
garages.
It's.
You use it as a you know it's.
It's not common to drive yourcar into the garage here.
Do I know anybody who drivestheir car into the garage?
I?

Speaker 3 (26:15):
don't know, I don't know a guy with a nice car.
Maybe you know a nice sportscar, you know classic car or
something, but no, yeah, yeah.

Speaker 4 (26:25):
I just I just, I just left the house in weston where
the guy had two, two car garages, two two car garages Two.
It was a basically four cargarage, but they were like
separate right and he had anidentical Porsche cayenne parked
in each one.

Speaker 1 (26:39):
Oh, wow, okay, there you go, that guy.

Speaker 2 (26:42):
Well, they all the same color.

Speaker 4 (26:46):
They're both the same with that color, which I find I
found was it a miami dolphin.

Speaker 3 (26:50):
Is he a miami dolphin or something like that?
He was.
A lot of the dolphins were noton weston no, okay.

Speaker 1 (26:57):
Okay, so two, two questions before I forget.
So, um, two houses right acrossthe street from each other,
same style, same year, samebuilder, the whole situation
right, same square foot is veryimportant, but one of them is a
four bedroom and one of them isa five bedroom.
Okay, does it?
Do you?
You give it more value becauseof the extra bedroom, knowing

(27:18):
that you know very well thatthey just put sheet rock and
they converted, you know one,they put to another door and all
of a sudden it's, it's anotherextra bedroom.
Right, how do you handle that?
Because that then you see, oh,this has an extra bedroom, you
know.
So what do you do there?
Is it?
Do you stay with square footage, or or what?

Speaker 4 (27:35):
I mean, in my opinion , they're both the same model
and it's just a matter ofputting up sheet, rock them,
Absolutely that it's.
There's no additional value.

Speaker 1 (27:43):
You don't give it additional value, okay.

Speaker 4 (27:45):
I do that.
However, in a market where it's, like the property slightly
bigger, kind of like lowerincome market, where it's like
on the cusp between a two and athree bedroom, then there I
think there's more of a value.
But if they're both identicalproperties and it's just a

(28:05):
matter of putting up somedrywall, I mean, that can be
done in the other property quiteeasily, so there's no
additional value there.

Speaker 1 (28:11):
Right, and in that other case that you just brought
up, how do you put a value onsame neighborhood, similar
properties?
One has a same square footage,almost the same layout, the same
footprint of the property, butone has an extra bedroom.
How do you make the adjustmentsfor those extra bedrooms?
Because that's not as tricky asthat.

Speaker 4 (28:30):
Now's the time when you guys got to reach for your
coffee or red bull, so I don'tlike bore you to death.

Speaker 1 (28:35):
No, no, no, I'll go ahead.
This was fun to me, forwhatever weird reason.

Speaker 4 (28:41):
So in that circumstance, what an appraiser
should do is you have to dowhat's called a match pairs
analysis, which is comparingsimilar three bedroom like,
let's say, similar two bedroomhomes versus three bedroom homes
and determining what thedifference the market is paying
for the two versus the three.

(29:07):
It's a process that isdifficult to obtain at times
because you don't have the data.
How many times do you havesales from each product that
have occurred at similar timesto determine this difference?
So sometimes you just have togo based off your experience.
But from an appraisalstandpoint, the correct way of

(29:29):
doing it is through the matchpairs technique.

Speaker 1 (29:33):
Right, so find the unit, find the property and then
subtract.
Basically find the extrabedroom and what it costs and
then find the one that didn'thave it and then kind of
subtract them.
That's how you put the actualvalue of a number, a sticker
number, on that bedroom, I guess, correct?

Speaker 4 (29:52):
Correct Considering all items.
All other items in theproperties are the same, or you
have data to adjust for theother factors that are different
, like if you have data tosubtract a one car versus two
car garage, a lake view versusnon-lake view, then that's
really how you do a match pairsanalysis.

Speaker 1 (30:12):
Right, interesting.
You know what?
What I've noticed in.
Here's another question, and ifyou guys have questions, I mean
I have a bunch coming up myhead, so go ahead and ask.
So what I notice is it's a lot.
It's more common in luxury touse the adjusted square foot
versus the living area.

Speaker 4 (30:31):
How do you mean?

Speaker 1 (30:33):
Well, I've seen that in valuing luxury properties,
since they have, like you know,I've had cases where they've had
, like a really nice balcony,you know, I mean there's been
1,000, 1,500 square feet ofbalcony.
I had one, for example, on theGables that it was just a weird
irregular lot house andeverything and it had, without
exaggeration, it probably hadabout 1,000 square feet of

(30:56):
balcony.
You know, it was an apartmentbasically of balcony.
So you know, then how do youget it?
And then it had a courtyard,you know type of stuff, and so
how do you?
Okay, so let me ask thequestion differently Is there a
point where you start valuingwhat would normally be
considered adjusted squarefootage as living area, or where

(31:18):
does that line draw as acourtyard, as a balcony?
You know what?
Is there a line?
Or?
You know, Jay, I can't hear youfor whatever reason.

Speaker 4 (31:27):
On any appraisal you're really supposed to take
all factors into consideration,right?
But on the appraisal, theadjustment grid, there's going
to be a section for gross livingarea.
Now if you have to do aseparate line item adjustment
for covered paddials orbalconies or garages, summer
kitchens, you know that's just aseparate line item.

(31:48):
It doesn't mean in the lowerend markets they're not
considered to have value, it'sjust they're just not as common,
you know.
So in the higher end marketsyou'll still put what's the
gross living area as part ofunder AC and then give it value
for the other things on separateline items on the grid.

Speaker 2 (32:08):
Okay, so I had one, which is the question I talked
to you about earlier, the ideathat let's say, you had two
comps.
You had a house that was builtin 1976.
And you have a comp that'ssimilar to square footage,
similar bedroom, bathroom count,built in 1958.
What kind of an adjustment doyou do for those older homes, or

(32:28):
does it kind of just sort offade away in the wash as they
get older and older?

Speaker 4 (32:33):
I mean that goes back to the old snooze fest of the
match pairs.
That's really how you'resupposed to determine the
adjustment.
Like I said, it's verydifficult to get that data.
You know, in my opinion there'snot that large of a difference
between 50s and 70s.
But you know, there does come apoint where you know there's a
home that's built in 1950s andyou know, like I bought it for,

(32:56):
let's say, 500,000 and he pumpslike 300 grand into renovating
it and he's like I only left theshell and I read that
everything I should be newconstruction.
Well, not necessarily, but youknow you do why, though?

Speaker 1 (33:09):
why not?
That was my next question,actually.
So why not?
Why not Like if you just leftthe shell, it's a whole brand
new home?
Why not?

Speaker 4 (33:17):
Right, everything's brand new.
All the cosmetic upgrades arebrand new and definitely you
want to give them.

Speaker 1 (33:26):
We lost you there, George.

Speaker 3 (33:28):
Oh man, he's getting good insight too.

Speaker 1 (33:29):
No, dude, I'm having fun.
It's good.
What's up?

Speaker 3 (33:33):
What's the weight right, or what's the favor?
Yeah, listen, whatever you haveto do with, it.

Speaker 1 (33:39):
Whatever I had to do was worth it, you know.
George is great man, he reallyknows the stuff.
No, he does, he does.
It was worth it.

Speaker 3 (33:44):
It was worth the 97 cancellations in the extra and
then the buildup in all that andthe buildup.

Speaker 1 (33:53):
Yeah, so, yeah.
So what I'm gathering so farwhile we get them back, we're
okay with that.
We're okay with a 2.5.
We're okay with a 0.5 mileradius?
Okay, we're okay with that.
We're okay with using the MLS.
You know, I think that thereason why Jay uses the IMAP is
just so we don't miss aparticular comp.

Speaker 2 (34:11):
The point that I look at it is we're trying to find
the ones that are just the mostalike, and so, as soon as we go
from 0.25 to 0.5, these homesthat are 0.5 are less like the
home than the 2.5 ones, right,but they may be more like it in
other ways that cancel out thefact that we're going a little
further away.
You know what?
This one that's 0.4, has?
The exact same square footageto be exacting the number of

(34:32):
bathrooms, the bathroom, theexact same view.
This is a better comp, eventhough it's a little bit further
away.

Speaker 3 (34:37):
Yeah, or maybe a pool home or something like that
we're the ones that we'recomparing in the same house but
doesn't have a pool.
So how does the pool factorinto it?
So you know definitelydifferent things to look at, you
know, when you're going outside.
It's called bracketing too Likeand I know this is one thing I
learned from them it's forappraisal purposes on the bank
side.
They will never allow for youto appraise higher than the next

(34:57):
guy unless there's anotherneighborhood you can piggyback
to justify a higher value.
So you might need to extendoutside the subdivision to
establish another tier ofpricing so that now you can
justify adjusting upwards if ourhome is in better condition and
in better value than the homethat's alike within a half a
mile or a quarter mile.

Speaker 1 (35:18):
Yeah, it's tricky man .
You know there's so many rulesand, george, am I wrong in
saying you're back, right,george?

Speaker 4 (35:26):
Yeah, I'm here.

Speaker 1 (35:27):
Yeah, so you might get you know 10 appraisers to
give 10 valuations on a property.
All 10 of you come with adifferent number and all 10 of
you are right, correct?

Speaker 4 (35:38):
Well, yeah, of course , yeah, definitely, because what
an appraisal is?
It is an opinion of marketvalue and, you know, my opinion
could be different than theother nine in the anguished
opinion that's.
That's ultimately their opinion.
Obviously, this opinion needsto be backed up with data and,
you know, conclusions that arethat make sense, you know, and
it has to be supportive.

Speaker 1 (35:59):
Let me ask you a question.
So I tell my realtors look, youknow, when, when you go, do the
appraisal show up?
Be nice, show up withcomparables.
Don't make it like if they areno more than you.
But hey, here's the comparablesthat I found.
Okay, just in case you know,making your job maybe a little

(36:19):
bit easier.
You don't have to go out thereand search and everything like
that.
Right, does that?
Does that make a difference foryou guys?
I mean, I know you guys have togive the value and the values
of value, but but you know, howdo you?
How do you see that?
Do you see it?
And again, I think the approachis very, very important to you.
Know, you don't go up there,like you know, I'm telling you
to mark the appraiser at that.
But yeah, how?

Speaker 4 (36:37):
do you handle?

Speaker 1 (36:38):
that George.

Speaker 4 (36:39):
I mean, I agree with you 100% but, just like
everything else, everybody'sdifferent.
Right, there's, there's someappraisers that view that as, oh
, they're trying to tell me howto do my job, you know, or you
know.
I welcome it.
You know, you want to providesome information?
I'll be happy to look at it.
Yeah, you know, if there may bea, they may have some.
You know, an experience realtorthat has a lot of activity in a

(37:02):
specific subdivision or abuilding may have access to
information that you don't haveyet.
You know, oh, the sales pending, it's closing today, you know,
you know, it's just, it's alwayshelpful and I can take it.
I would recommend to take itone step further with your
realtors and always recommendfor them to either have that
survey of the property or aprevious sketch.

(37:22):
That will help, you know, helpthe appraiser when they're, you
know, trying to measure theproperty.

Speaker 1 (37:27):
Interesting.

Speaker 2 (37:29):
I'd like to ask, because it's always been my my
way of doing this has alwaysbeen to not just bring the the
comps that I want them to use,but I try to bring all the comps
that are in the relative areaand on the my notes as to why I
chose not to use these comps.
I kind of like it's kind oflike when you watch a news story
, depending on which channel youwatch, that's going to be the

(37:49):
opinion that you kind of walkaway with.
Yeah, so like he's giving anopinion of value I want to share
.
Hey, this is my opinion, thisis how I got there.
Tell me if I'm wrong.
You know like I'm trying totake and make this as easy for
you as I can.

Speaker 3 (38:00):
Yeah.

Speaker 2 (38:01):
Did I screw up with these comps?
Because I didn't like these?
Because of this, this, this andthis?

Speaker 1 (38:04):
Yeah, and I like that's just a textbook approach
right there.
That's the way you're supposedto do it, you know, and I become
psychology, like I will tell myrealtors this business is all
psychology.
If I show up there, you know,like I'm the man and I'm Mr
Comparable, and I run into a guylike George has been doing this
shit 20 years.
You know what I'm saying.
He's literally going to waitfor me to leave and go to the
bathroom and wipe his ass withit.
Maybe not even wait until youget to the bathroom, but you

(38:25):
know, it's all about theapproach, like anything else,
you know.
But but what I'm hearing issome of these guys are going to
be welcome to it and some andsome are not, you know.
So you got to be careful ofrealtors when you up, when you,
when you show up with this.
But you should always knowanyway, you should always know,
you should always have an idea,you should always have some
comparables, you know, and allright, so I have.

(38:45):
I have another question here.
Let's kind of get into thebackyard a little bit, right, so
this is what I understand.
So, right, so some areas, landmakes a difference, some areas
makes no difference.
Okay, so you might have, youknow a.
You know 15,000 square foot lotwith a.
You know to like a half an acrewith like 20,000 in some areas

(39:06):
coral gables in here in Miami.
You know higher end areas.
You know those 5,000 squarefeet are going to make a
difference and some in someareas they're not.
You know so how do you handlethat.
And you know irregular lots.
You know how does that work,because that seems also very
tricky to me.
I've never really been able toput my finger on that.

Speaker 4 (39:27):
Right, right, yeah, it gets into a tricky, kind of a
tricky, it's kind of a trickysituation.

Speaker 2 (39:38):
I'm even having trouble explaining it.

Speaker 1 (39:41):
Okay, good, good, because you know I feel stupid
when I get to the land part, youknow.
So if you're struggling with ita little bit, you know, and
it's a painting your ass, thenit has to be one and one in mind
too, you know.

Speaker 4 (39:52):
Right, well, there's, there's, there's some lots that
they're kind of reallyconsidered could be like surplus
land, right, like if you'relike in a subdivision where
everything's like cookie cutter5,000 square foot loss, 5,000
square foot loss and then youknow it's kind of like a
rectangle and then when you knowwe turn the corner right like
the like the elbow, so to speak,of the road, there's like this

(40:15):
awkward shaped lot that you knowthat instead of being 5,000,
it's really 11,000, right, thatcan be considered to be surplus
land For the most part.
Typically, when, when I do myappraisals, I typically I don't
encounter situations where Idon't get value for land, I

(40:36):
typically, whenever there's adifference, I make an adjustment
for it.

Speaker 1 (40:40):
Wow, right Interesting.

Speaker 4 (40:42):
Unless it's a small difference, that I feel like
it's not justified.
You know, right, if you have anacre home and it's 43,000
square feet and you're comparingit to a 45,000 square feet,
then you're like, okay, thedifference is not that big.
You know, it's to me it'ssimilar, you know.

Speaker 2 (40:59):
Let me ask this question because I did a lot of
things, much like K Seuss, andso I ran into this a lot and I
was doing a lot in like NorthMiami Beach area and so you know
you have those homes betweenseven and maybe 11,000 square
foot lot.
I never had a buyer pay a nickelmore, but they never even asked
about the size of the lot.
And so when I would make anadjustment, I was going based

(41:20):
upon, you know, like I don't seeany difference in what people
are clothes I, you know I seeconditions being similar between
these cops and I don't see anickel's worth of difference in
what they're giving for land.
So when I would do my VPO is myadjustment was was zero because
I didn't see reflected in themarket.
And so that's that's the firstthing you said.
That that really like surprisedme was that you like always

(41:42):
make an adjustment for land inthat situation.
I mean, is it right to not makeone or should?
Should there be some?
There just should be some, justbecause there is theoretically
some more value there, I guess.

Speaker 4 (41:54):
Yeah, I mean, listen, you definitely want to try to
give the property owner you knowwhoever's getting this
valuation their fair share,right, and you know typically,
in theory, from from like alogical point of view, more land
should equal more money, right?
That's just kind of using thelogic behind it.

(42:17):
But yeah, I can agree with you,sometimes it's a market where
that difference, that extra 1000square feet or 1500 square feet
or 2000 square feet of land,just really doesn't, doesn't
yield a higher number.
It happens.

Speaker 2 (42:31):
The weird one that I see, too, is pools sometimes.

Speaker 1 (42:34):
Yeah, I was gonna, that was next, and then I have a
market question.
But yeah, can.

Speaker 3 (42:38):
I jump in one second on the lot land the adjustments.
Usually, george is not correct.
They're very small adjustments,right, they're not necessarily
big impacts.
You might adjust, you know, adollar or a square foot or
something like that.
Am I right?

Speaker 4 (42:49):
It's something that's really going to sway the value
much.
It depends on the market, youknow.
As, as as Jesus mentioned anarea like Coral Gables, you're
probably, you know, adjustinganywhere from like 10 to 20
dollars a square foot for land.

Speaker 1 (43:07):
You know it's waterfront even more, you know
but yeah, waterfront canal, lake, ocean Bay, right, right.

Speaker 4 (43:20):
And then you get into the interesting adjustment of
waterfront feet right Like whichlot has more water
waterfrontage.
That's definitely also a bigfactor on these, on these
waterfront homes.

Speaker 1 (43:32):
Yeah.
So a pool waterfalls waterfalls, I mean you know, landscaping
is another one I mean.
I have a buddy of mine one day,a day, had like 50 grand in
palms because he collects exoticpalms.
What the fuck do you do withthat?

Speaker 2 (43:49):
Well, I'm actually thinking about it more from the
standpoint of, like, there'sneighborhoods.
I know where people actuallysteer away from homes with pools
because they see a poolmaintenance bill when they say a
chair.

Speaker 4 (43:59):
Absolutely.

Speaker 2 (44:00):
When you're like talking homes, maybe sub 200 to
50 ish, people look at it moreas an expense and so there's
really not much of a premium, itseems, in the market for that
what would normally be a men.
They really say you get over300,000, you know people start
to want to pool.

Speaker 1 (44:15):
Is that?
Is that right?
Is there a particular areaswhere a pool is?
I know that a pool is lessattractive, but do you deduct if
it has a pool?
No right.

Speaker 4 (44:25):
I mean, I personally haven't, because I praise
predominantly in South Florida,but I have taken courses before
where the instructor was fromDetroit and he's like hey, you
know, in Detroit pools are anegative, you know you literally
would have to deduct.

Speaker 1 (44:40):
You may have to make a negative adjustment.

Speaker 4 (44:43):
I personally have never done that.

Speaker 1 (44:45):
No, no, I'm saying but what he said was that you
would have to make a negativeadjustment.

Speaker 4 (44:50):
A negative adjustment for pools.

Speaker 2 (44:51):
Yes, you have to adjust the value positively of
the comparable, because they'remore valuable, because they
don't have a pool Right rightright, right, right, right,
right, right, Okay, yeah, well,maintenance in Detroit?

Speaker 3 (45:03):
I don't imagine like here.
You go down the you know thehighway and you find seven
little trucks with the poolmaintenance sticker on the side.
You know they're everywhere.
Imagine in Detroit, you know,to get a guy to come into your
house every week for poolmaintenance a lot harder.

Speaker 1 (45:15):
Well, I'm the house, I'm not like 20 grand, so what
the hell?
I mean, it was technically Imean I have a buddy of mine that
has the, I will have a part ofthe show we're talking about
well, there's this and my buddyhas dispensaries, marijuana
dispensaries, so he has inDetroit, so he's always buying
real estate up there and youcould buy a decent house for 30

(45:35):
grand.
Yeah, decent house, decenthouse, cool a house that here
you slap it on coral gables andit's a couple million bucks type
of stuff.
You know old, you know style,the Victorian looking, you know
this and that, so yeah, it's.
It's a tricky.

Speaker 2 (45:48):
I bought.
I bought a bunch ofnon-performing mortgages all
over the country and there's afew that are in like Ohio right
2030, yeah, and I mean it's ayou know, 2000 square foot home
right, it's crazy.

Speaker 1 (45:59):
So what does it cost to build a bull there?
Probably 20 grand.
Same thing.
It was a lot of costs.
Yeah, that's what I mean.
Okay, but over here, okay,landscaping.
Do you ever adjust forlandscaping?
My buddy that has a house inPalma I'll be that has 50 grand
and exotic palms.
What do we do with that guy?

Speaker 4 (46:16):
I Mean listen.

Speaker 1 (46:18):
You know that's kind of you can't take him with you,
you know yeah.

Speaker 4 (46:24):
That comes.
That's one of the appraiser.
You just take your hat off andyou're like yes, and I took
everything into consideration.

Speaker 1 (46:39):
Brazing landscaping Pools.
But pools have to matter rightsize, the, the style of the yeah
, yes, yeah, but you know it.

Speaker 4 (46:52):
It becomes tricky because when, when you're doing
an appraisal, it's like how doyou determine what's the
difference in value between apool with a waterfront, a pool
out of waterfront?
You know it's like, is it, howdo you determine the difference
of a pool with a schoozie andwithout a schoozie?
You know it's, it's tricky, youknow it's not.
It's not so black and white,right?

Speaker 3 (47:12):
you know I have a great story on a pool home in In
a dr Horton community, cookiecutter for threes.
You know, I think there waslike seven cops in the same
neighborhood within a half up,you know, within like the
quarter mile, that were all forthrees selling off the same
amount.
Some would pull, some without,but the gentleman that this
particular case of seller wastrying to sell for a hundred and

(47:32):
sixty dollars 160,000 over thecops, because he built a three
hundred thousand dollar pool inthe backyard.
He's the only pool company, anexotic pool company, and built
this pool that they shoot rapvideos and everything on,
thinking that it was, you know,greatest investment of his life.
And then now he's gettingdivorced, has to sell the home
unexpectedly and is mad becausethe appraisal only Willing to

(47:53):
give him twenty thousand bucksworth the adjustment.

Speaker 4 (47:57):
Yeah, I mean that's.
That's a tough one.
That's a tough one to swallow.
You know, and, and, and.
In my opinion, yes, there,there is value for him pumping
that 300 grand in there.
Now he's just got to findsomebody to pay him for it.
Right, it's not gonna be thebank that's gonna come in and
say, hey, I'm willing to giveyou this wonderful adjustment or

(48:17):
this wonderful Extra loanamount for this pool you put
back here.
You know, you just got to havea buyer that's that's willing to
pay for it.

Speaker 1 (48:25):
Yeah, that's.
I had a.
I had a Interesting situation.
I had I won't I won't say whowas a famous rapper, I
Purchasing a foreclosure ofanother famous rapper, and I
walked in and there was gold,solid gold toilets throughout

(48:46):
the house.
What do you do there, george?

Speaker 4 (48:49):
oh, man, you know, that's, that's, that's, that's
back to throwing your hands backup in the air.
Yeah, I'm taking, I'm takingeverything into consideration.

Speaker 1 (48:57):
You.
But, all jokes aside, you say,listen, I'm not even going to
get in there, I am not doingthis, I am gonna look at
comparables and I am not gonnatake the toilets into
consideration.
Right, you just straight uphave to say that like, listen,
you want to spend good gold,that's, that's your problem,
right I?

Speaker 4 (49:12):
mean.
The key is the appraiser issaying that you took everything
into account.

Speaker 2 (49:15):
Yeah, that's the magic.
I took everything.

Speaker 1 (49:22):
I got it now, you know that's you know, you don't?

Speaker 4 (49:25):
you don't sit there and say, hey, I didn't give you
value for your toilets.

Speaker 2 (49:35):
Yeah, I have one for me that I'm kind of curious
about, because I'm, in additionto being a broker, I'm a general
contractor.
Okay, we're doing a lot of workwith impact windows now.
Oh, that's a good one, okay,and so it is from things that
I've read one of the bestImprovements people make for
having an actual improvement inthe value of the property.

(49:56):
Is that something else we're?
It's just, you know, you try tofind because it that's not
where.
How do you check that with thecops?

Speaker 1 (50:01):
It's not recorded anywhere with, hey, these guys
close, when they do theappraisal, they do check yeah.

Speaker 2 (50:06):
Oh, and they do the appraisal though.
They'll check, but how do you?

Speaker 1 (50:08):
come.

Speaker 2 (50:09):
How do you check the comps to see what they?

Speaker 4 (50:11):
Well, it's good that you mentioned that.
I frequently and most of thetime prezels.
Whenever a property has impactwindows and doors or just
windows, I typically make anadjustment for it.
Nowadays, with what the way theMLS is it's under.
You know, I've a comp sold andit had impact windows.
Mention it the description ofthe property, absolutely Most,

(50:34):
and and sometimes when you driveby, from the most part you can
tell you know, hey, thosewindows are newer than their
impact.
You know For the most part, butyou know a lot of the times the
realtors do a good job aboutabout most of times, about
putting it in the comments or orputting it in the on the page
to where it says impact glass.

Speaker 1 (50:52):
Sure, and what, what?
What adjustment I mean?
And?
And is impact windows one ofthe better Improvements you can
make on a home that you'll getthe most bang for your bucket?
Or is that the most bang foryour buck?
That in kitchen, I'm assuming?

Speaker 4 (51:05):
in my opinion?
Yes, probably.
Impact windows, pool, roofkitchen, those are like the main
driving Improvements front door, front door, front door, sure,
sure, that's part of the windowsand doors, right?
So the whole thing with theimpact windows is You're.

(51:26):
It's actually a monetary savingto whoever owns that property.
You know you get big discountsfrom the insurance companies by
having this.
Lowers everything in my glass.

Speaker 2 (51:38):
Lower your energy.
It lowers your energy costs aswell.

Speaker 4 (51:40):
Yeah, absolutely right, and it's better for the
noise pollution.
So you know it's.
It's definitely an improvementthat I would recommend that.
That's definitely a Tributes toall things being considered
into getting your higher value.

Speaker 1 (51:54):
You get a property, you get two similar properties.
You're you know and and the onehas impact, one that doesn't.
You got to say, well, I buy thewoman, no impact, a I'm gonna
have to go through a huge painin the ass every time I purchase
it and I got to put shuttersand I mean eventually going to
have a spend a lot of money toput those impact because they're
not cheap.

Speaker 2 (52:11):
They're getting better.
Yeah, well it's.
It's actually becoming verysaturated market.
It's a different conversationfor a different time.
But yeah, the price you comedown and it's pretty interesting
.

Speaker 4 (52:20):
Okay, I got another one, george Josh it sounds like
you just put your GC hat on.

Speaker 1 (52:26):
You know what, the more you put it right back on
again to explain to you why.

Speaker 2 (52:32):
The more happy have the better.
This is a broker 100%.

Speaker 4 (52:35):
Absolutely, I agree.

Speaker 1 (52:36):
Okay, so solar panels that this is my last question,
and then I'm gonna just take youthrough a recap and just make
sure we're on the same page oneverything but solar panels.
Okay, what do we do with solarpanels?

Speaker 4 (52:46):
Yeah, that's, that's I mean.
I definitely Listen from anappraisal standpoint.
Right, you're getting out to dothis appraisal, this property,
and you're like man all right,wonderful, you know, the last

(53:13):
six months or the last year thathas solar panels.

Speaker 1 (53:16):
So you can't just give it and you, you can't just
say all right, I know this.
This, this dummy just spent 40grand on these solar panels.
Right, like you can't give itany adjustment whatsoever.

Speaker 4 (53:27):
You could, but the when you're doing an appraisal
for a bank, it's the golden rule, right, he who has the gold
makes the rules.
So they had their guidelines.
You know, it's like hey, yougot to have a comp with it a
mile.
Hey, you got to have at leastone comp with it.
Like these hey you're, you'resquare foot.
Your gross living area of yourcomps can't be more than 20%.
Hey, you can't have across theboard adjustments, which means

(53:49):
if you have someone with solarpanels, you got to find a cop
that has either solar panels orsimilar feature.
So you don't create what'sknown as an across the board
adjustment, which is adjustmentson all the comps heading in the
same direction.
Right, that comes to thebracketing concept.

Speaker 1 (54:05):
So for all those, all those solar panel salesman that
tells you it's gonna increasethe value, what do you?
What are we telling George?

Speaker 4 (54:10):
No, it does, it's 100%, it does.
You know?
It's just.
It's just a matter of when youcome to do the appraisal, how do
you handle it for financingpurposes.

Speaker 3 (54:18):
That's all I think I think the market to chime in a
little bit.
I think I have to catch up.
So, for example, we did a loanin Arizona recently with solar
panels, yeah, and there wasspecific eye lines on FHA.
We needed an exceptionRegarding because the way there
was a and act it actuallyaffected the property in a
negative or the loan in anegative fashion and we had to
make an adjustment.

(54:38):
I can't recall exactly what thedetail was, but it's very
common over the day.
But they couldn't stillcouldn't find the property with
solar panels in that, so itcould actually create a
challenge for the financing thesolar panels that it actually
has.
So I think that's once a marketcatches up and eventually
something that is unique startsto become standard, like impact
windows At one point whereexclusive plasma TVs were

(55:00):
exclusive than everyone has them.

Speaker 2 (55:02):
Eventually, once they become a standard, easier so
then it's gonna be a you knowprocessed well, jay, I think the
reason why the solar panels areon negative in Phoenix my
brother's assured me that,living in Phoenix, it is the
surface of the Sun, so I don'tknow what you would do with a
solar panel if you live on thesurface.

(55:22):
Actually that I had one morequestion because recently one
more designation I didn't havethat I needed to have.
I was working with the greendesignation for real estate and
the windows kind of fall intothat category a Little bit.
But there's a whole bunch ofother stuff that go into making
homes smart homes and I thinkFlorida's kind of behind the
curve a little bit with havingthat be part of the MLS so that

(55:42):
it's easier for for people thatare trying to take into
evaluation, define this stuff.
Do you are you able in Floridaright now to find stuff or to
give comps Adjustmentspositively for being smart homes
?
I mean I know they can sell ita premium because I mean there's
a lot of data to back that up,but only if you know you have
comps to justify it, I guesssure, and it's great that you

(56:04):
touched on that, josh, it's.

Speaker 4 (56:06):
It's.
It's great when you have datato back it up, you know from an
appraisal standpoint right.
It doesn't mean that there's novalue, but just one.
When it's from an appraisalstandpoint and you're, and it's
for a lending purpose, then youkind of get into this Situation
of like, hey, I got to havecomps that support this
adjustment, I got to have compsthat bracket this adjustment and
and and that really comes, itbecomes the name of the game.

Speaker 2 (56:30):
Yeah.
So it's basically to giveyourself a fig leaf, you will,
in case the bank comes back andsays hey, how did you come up
with this?
Well, here you go.
Here's what I used.
That makes exactly.

Speaker 4 (56:39):
Exactly, and, josh, I'm very excited for when you
finally get your pilot's licensethat you can take me on.

Speaker 3 (56:49):
This is a pilot's like I'm actually a pilot's
lesson.

Speaker 1 (56:51):
We got that covered over here.
Listen, man, you know what?
I've actually told me that theidea is literally the only
license he doesn't have, and whyhe doesn't have.
It doesn't make.
Doesn't make any sense to me,you know.
Oh, man, okay, so All right,unless you guys got any
questions.
I just want to, I just want todo, I just want to make sure.

(57:12):
So I'm a realtor, I'm going inthere, I am Pulling up public
records just so I could compare,see what the real square
footage is right with the livingarea is.
I am going on the MLS, I amgoing on IMAP.
The reason why I would go onIMAP is because there might be
Comparables there that are notin the MLS, because it has
public, has public recordcomparables, okay so For

(57:34):
somebody knows frisbo, so Iwould be going on there just to
specifically find one that Imight not have.
Okay, so Do I go on.
Rpr, is RPR we?
We never talked about RPR is it?
Is it going in the?
Is it in the area of Zillow,where it's just, you know, does
estimate, or what do we do withRPR?

(57:54):
Do we even use it?

Speaker 4 (57:55):
I Haven't been using RPR.
I typically use MLS, Itypically use real quest.
Real quest, I use IMAP.
That's real.
Yeah, real question.
It's a great source.
Yeah, it's, definitely, it'sgreat.
Visda is a phenomenal source.
That's what that's forcommercial.

Speaker 1 (58:13):
Okay.

Speaker 4 (58:14):
I Doesn't really do residential, but those are great
sources for comps.
That's what I use.

Speaker 3 (58:21):
Okay, all right, let me ask a quick question on the
on the buy owner stuff.
If we have a buy owner, that'son Zillow for example with
pictures.
Okay, and you see that I waslistening on Zillow for 90 days,
right, seen a bunch of themdown in the keys.
And then itself, I mean, atthat point, would that be
something that can be factoredin if through, let's say, the
realtor comes up it says, look,here's what they listen to

(58:42):
Zillow.
Here's the pictures on theinside.
The property was on the marketfor about 90 days before it sold
and it sold Comparable to whatit would be in the market.
They just didn't listen with anagent.
You.

Speaker 4 (58:52):
Right right.

Speaker 3 (58:53):
Yeah.

Speaker 4 (58:53):
I mean nowadays, you know, back before the whole
major mortgage crisis, back thenwhen you didn't have unless you
just automatically sold it withfraud.
But nowadays you find aproperty that's for sale by
owner, nine times out of 10,there's going to be some sort of
either realtorcom or Zillow onit, or yeah, and that's how you

(59:13):
verify the condition of thatcompany.
You know you don't just throwyour hands up as the appraiser
and be like, oh, there's more orless, I can't determine the
condition, I can't see.
You know what the propertylooked like on the inside.
You got to dig deeper.
You know you go to realtorcom.
You just Google the address andthen it pops up either Zillow
or realtorcom or Redfin on it.
That kind of shows.
You know what, what, whatentailed this trade?

(59:36):
You know what, what kind ofupdates it had?
Did it have a pool?
Did it have this?
You know, did it have thewonderful golden toilets that
he's used for?
You know it's it's good that youmentioned that, Jerry.

Speaker 2 (59:49):
Let me ask a quick question, which is is there an
adjustment made for being a forsale by owner, because,
theoretically, the seller hassold the property for less money
, but they've walked away withmore because they're not paying
any kind of commission, soeffectively, in order for it to
be?
Like a stress sales well, inorder for it to be an arms
length transaction that thatcommission has to be part of

(01:00:10):
there, that commission's notthere.
The seller has sold it for alot of contribution.

Speaker 4 (01:00:14):
We forgot to ask that too Well well, when, when you
come, when you, when you getinto this hole for sale by owner
versus commission, it's kind ofa slippery slope, right.
Because how do you, how do yousay, hey, this one sold below
market, right?
Ideally, typically, when, whensomebody sells a property for

(01:00:37):
sale by owner, they typicallypay a commission to a realtor
who brings it, or if there wasno realtor's involved, that's
fine too.
But in reality, that homeownerwho is taking their time to show
the property and market it, howare they decide to market it is
really really the one that's,that's that's getting that value
right.
That 3% or whatever thecommission is, that's really

(01:00:59):
supposed to be already factoredinto the price.
But yes, I agree with you,typically for sale by owners, so
for less than properties listedwith realtors, that's just that
.
There's, there's plenty of dataon that.
But yeah, that's, that's that'stough.
And when you, when you kind ofopen that can of worms for an
appraisal for lendinginstitution there's, you better

(01:01:22):
have a ton of data to back it up.

Speaker 2 (01:01:24):
So basically, what you're saying is it would be.
It would be a mark against itbeing a comp that you would use
if you could find better compsto replace it.

Speaker 4 (01:01:33):
I'm sorry you were picking up.
Say that one more time.

Speaker 2 (01:01:35):
So if I had a for sale by owner it was one of the
comps I was considering and Ihad five right and I had, and I
had other ones that were armslength transactions that were
just a similar I would excludethe for sale by owner.
It would be a kind of, I wouldsay, a mark against it, but
would be one one more thingabout it that's less like the
subject.

Speaker 4 (01:01:52):
Correct, correct.
But then again, if you're like,hey, it just we're in July and
you're like hey, it's holdingJune and it's right next door to
the subject, you know, that islike.
You know, sometimes you'reforced to use it, you know.

Speaker 3 (01:02:04):
I could also help you sometimes.
I mean, there's cases where wefound the words up, where you
just got a guy put up a sign andbecause you've had you know the
dumb luck and hey, you knowwhat, somebody's going to pay me
for this and and and it couldhelp.
So we've seen that helpsometimes in certain scenarios,
but the majority of them yeah,you're right, it's going to come
up a little shorter than theother ones.
They might hurt.

Speaker 4 (01:02:22):
And Josh, I'm happy that you mentioned the non arms
land transaction thing.
If you can, if you pull up thiscomp and the appraisal is
coming out and it's lower andyou can kind of determine, you
can call up the owner and belike oh yeah, I'm the owner.
I sold the property to my buddythat I've known for 20 years
and, hey, guess what?
It's a non arms landtransaction.
You know the buyer and theseller knew each other prior to
the sale.

(01:02:43):
You know that's it shouldn't beused.
You know because they they'veknown each other, they're
related.
He's married to the guy'scousin.
You know something like that.
You know so.
So I'm glad you mentioned thatabout the non arms land
transaction.

Speaker 2 (01:02:57):
Well, I mean the other.
The other piece of it is, Isuppose, that it just hasn't
been.
I mean this again, me trying tomake the case why I wouldn't
use a fizzbo is because it'snever actually been exposed to
the open market, theoreticallyand so so that yes, yes, but
nowadays that's the interestingway to look at it.

Speaker 1 (01:03:14):
I know we thought about it that way, yeah, yeah,
yeah.

Speaker 4 (01:03:16):
And you and you put, if you put it on Zillow, right,
I mean nowadays Zillow's likethe open market almost kind of
you know.
I know most realtors areflipping through Zillow but a
lot of the consumers nowadaysare you know A lot of the
realtors are too.

Speaker 1 (01:03:31):
believe me, I got, I got yeah.

Speaker 2 (01:03:32):
I think we're going to pay for the remelaness.

Speaker 1 (01:03:34):
Yeah, that's, the guys are incredible, yeah.

Speaker 2 (01:03:36):
Although I've got the bill from my hand the last day
of the day.
Well, I got the bill fromZillow.

Speaker 1 (01:03:41):
I got the bill from Zillow the other day and every
time you get a realtor thatclicks on it, it's considered a
lead, so, and nowadays it's like150 bucks every time you get
one of those.
You know.
So, what else?
Okay?
So, yeah, I mean all right.
So let me start.
Okay, so we're going to useIMAP, we're going to use
whatever system that we want touse.
At the end of the day, what weneed to know is that we're

(01:04:01):
getting, we get as manycomparables as possible, that
that are as similar as possibleto this property.
Now, the reason why we want togo into other ones, because we
want to.
We want to make sure we haveaccess to every comparable that
this appraiser has access to.
So, because, if, because, if wedon't use IMAP, for example,
and then you do, then I'm goingto be missing a comparable that
I didn't might be for a positive, might be in a negative.

(01:04:22):
So, and you know before onething, that, what I explained,
tell me if I'm wrong in myexplanation to to my realtors
here, right?
So the way I explain the wholereal estate processes, I go
listen.
There's three ways to appraiseproperty, right?
There's the income approach.
That's more for commercial.
You know there's a cap rate,there's a net operating income

(01:04:44):
and that's how you're going toget the value.
It's based on income of theproperty.
Then there's the costcomparison approach, which is
more for insurance companies.
You know what it costs toreproduce this property just in
case a hurricane comes down andtears it up.
Okay, there's the, the, thecomparable approach, which is,
you know, same, similarproperties in the area.
You know that type of stuff.

(01:05:05):
And then and then there's themarket.
Okay, that's, and the reasonwhy I'm saying that is because
I've seen it where a property, Ihad a situation on a property
that it was the weirdest thingin the world because it was a $2
million property in Pancras.
I had just sold one for 1.8,not too far away, $2 million

(01:05:26):
property, dude, every comparable.
I had every comparable in theworld to appraise that thing.
You would have appraised it at$2 million.
The comparables were at $2million, but I kind of knew that
the market, for whatever reason, wasn't going to bear the $2
million Okay.

Speaker 4 (01:05:43):
Marko was declining.

Speaker 1 (01:05:45):
It was, you know, and I'm trying to explain it to the
guy and it was a toughsituation because he was right,
it did appraise for it, right.
He was right it did, thecomparables did reach that right
.
So, but you know, he, I endedup trying to bring him down to
like 1.6 or something like that.
He ended up getting rid of me,got another realtor, got all the

(01:06:07):
way to 1.3, didn't even sell itat 1.3, ended up renting it,
right.
So, and I've seen that on bothsides of it so at the end of the
day, not even on a fuckingappraisal matters, it's the
market.
The market is there to give youthe best indication.
Sorry, the appraisal is thereto give you the best indication

(01:06:29):
of what the market will be.
But the market speaks louderthan all of those.

Speaker 2 (01:06:33):
What's something is my father used to say this all
the time we had, we hadcommercial real estate in New
York, and we had this throughthe 80s and 90s when the
illustrious predecessor of MrCuomo, his father, was there and
he decided to, in his infinitewisdom, to put a 10% tax on all
properties that sold for morethan a million dollars.
Surprise, surprise, the realestate market in New York came
to a screeching halt.
We had an entire city block inBrooklyn, within sight of the

(01:06:58):
tunnel to Manhattan.
Could not find a.
There was no buyer.
So what was the property worth?
Worth nothing.
Because there's no buyer,nobody wants to pay the real
estate taxes on it, right, rightand so yeah yeah, what
something is worse is whatanybody is willing to pay for it
at any given time.
It's the reason why thecomparable approach in my mind
is through the whole, becausesomebody's actually taken their

(01:07:18):
wallet out and agreed to paythat much for something, and so
that's really what it falls downto.

Speaker 1 (01:07:23):
Yeah, and then, and then you get where you got a
whole neighborhood that's worthsomething, right, but then you
get the property that's on themain road, right?
That's one.
That's another question how doyou handle main roads?
And I'll give you the last ones, I don't want to take any more
of your time.
So, how do you handle the main?

Speaker 3 (01:07:38):
road.
The longest 10 minutes ofGeorge's life.
The longest 10 minutes ofGeorge's life.

Speaker 4 (01:07:42):
It's like George got 10 minutes.
Thirdly, impressed that Jesusknew the three approaches to
that and all and all the kind oflike and all the kind of like
licenses.

Speaker 1 (01:07:55):
You're like bro you know, I must stick around with
these guys.

Speaker 4 (01:08:01):
Geez, I mean wow, I mean that was, that was
impressive, I must say.

Speaker 1 (01:08:05):
Thank you.

Speaker 4 (01:08:05):
Thank you, but to answer, to answer your question
about the main road, you know itcomes back to the boring match
pairs.
You know you got to try to finda comp that's on a similar main
road or the same main road, orso you take it, take it into
consideration basically.
Yeah, so you know, or this comp,this, this comp fronts a main

(01:08:28):
road but hey, there's tonsacross the street from the
school, so they're bothsuffering from external
obsolescence.
That's the boring appraisalterminology.
Yeah, external obsolescence is.
You know something that youknow?
You?
You see, you saw the highway,you're you you'll put a
commercial property, you knowyou'll put a gas, gas train

(01:08:51):
train.
Those are power lines.
No, and I've seen, I've seenpower lines running from
people's properties and I'm likeyou know, you know you always
end up finding a comp.
You have to.
Whether you're going to expandyour parameters, your distance
requirements, your sizerequirements, your age

(01:09:14):
requirements, you have to findsomething to bracket that
situation.

Speaker 1 (01:09:19):
Right, so, and rural properties?
Is there a limit to how far youcan go, as far as expanding?

Speaker 4 (01:09:25):
I mean typically when I get out there in the redlands
, typically my comps are five.

Speaker 3 (01:09:31):
You know, within five miles three to five miles, you
know my neighborhood and whenyou like to see in residential
point five.

Speaker 4 (01:09:39):
Yeah, well, it depends on the location, right?
If you're in an urban location,you should be.
The comps should be as close byas possible, Right, right I
thought I meant by urban.

Speaker 1 (01:09:49):
No, but urban, I meant urban.
So textbook cookie cutter wouldbe 0.5, 90 days.
Right, that's cookie cutter.

Speaker 4 (01:09:56):
Oh man, that's.
That's like a dream appraisal.
I show up there.
You know, all comps are fromthe same building you know
they're all the same model, or?
They're all from the samesubdivision.
Those are wonderful to dobecause they're simple.
You know I am a complex personso I enjoy the more complex ones
.
You know I like, I like thebattle, you know the challenge

(01:10:20):
of having to find this comp tobracket this, or you know, or
you know, that's what experiencegives you that you get bored
with the easy stuff after awhile.

Speaker 1 (01:10:28):
Like I always tell my realtors when they bring me
those super complex deals witheverybody's fighting and then
the whole situation, I'm like,all right, finally I get you
know.

Speaker 4 (01:10:36):
I I get.

Speaker 1 (01:10:37):
It excites me.
I get to fight with anotherrealtor or there's an attorney
involved that I could fight with.
Oh man, I'm fucking having youknow, bring it on, step away and
let me do my thing.
You know so, and that's whathappens.
You're in this business longenough that you just want you
know, you just want difficultthings.

Speaker 2 (01:10:52):
You like the messy ones.

Speaker 4 (01:10:53):
You like the messy ones.

Speaker 1 (01:10:54):
Absolutely, I like the messy ones, that's exactly
right.
So all right, man, listen, dudethe best 10 minutes of my life,
man.

Speaker 4 (01:11:03):
I appreciate that, man.
I'm just happy that I didn'tmake the list of you know things
that pissed off realtors.
Yeah, I wasn't on your guyslist.

Speaker 1 (01:11:15):
Yeah, man no no, no, no, absolutely.
So, all right, bro.
Thank you very much, jay.
Stay and stick around for alittle bit more, yeah.

Speaker 3 (01:11:23):
Thank you, man, they really appreciate it, bro.

Speaker 1 (01:11:25):
It was definitely worth the wait.
Good stuff.

Speaker 4 (01:11:28):
Hey, Zeus, Jay and Josh, thank you so much and I
look forward to getting to youguys.

Speaker 1 (01:11:32):
Yes, sir, thanks brother, All right, guys, okay,
bye, yeah, so yeah, definitelyworth the wait.
Wealth of information.
You were right, jay.
You were right, all right, Iwas right about the iPhone.
And you were right about George, all right.
Yeah, by the way, guys, jay,everybody, lets all our millions
of listeners, let's everybodygive Jay a hand for getting an

(01:11:55):
iPhone.
You finally got an iPhone.

Speaker 3 (01:11:59):
There we go, bro, there we go.

Speaker 1 (01:12:03):
Do you have a sound effect for him getting his head
out of his ass on the iPhonething or not?
No, all right so yeah.
So listen, you use whatever youcould use.
This is what I learned.
You use whatever you can use toget the information.
Try to use as many tools aspossible so you don't miss one
right?
That's basically what it comesdown to.
There's textbook rules that areyou could break them if you

(01:12:23):
have to.
You know, take everything intoconsideration.
Basically that's it.
I mean, I don't think there was.
I learned a lot as far asmeaning that you're learning,
that you're doing things right.
You know A lot of the realtorsout there are in the air.
What's the appraiser going tothink?

Speaker 2 (01:12:44):
Well, I have the approach that I think I took
from this.
The way I was thinking about itas I was explaining it is to be
like a defense attorney youdon't want anything coming up to
surprise you.
You want to have all theinformation.
So I want to know what all thecomps are.
So I'm going to check all mydifferent sources so that, when
the appraiser comes back withanything, I've already got my

(01:13:06):
bases covered.
I already know what's going on.
We don't like this one becauseof this.
We don't like this one becauseof this.
This is a good comp.
This is a good comp and this isgood comp.
And this is why Make your casehave all the data there, all the
information there, so there'sno surprises.
The appraiser didn't say ohwell, what about this comp?
And now that's what you want tolook away at.

Speaker 1 (01:13:24):
Yeah.

Speaker 3 (01:13:24):
Yeah, one thing also wanted to add on.
There is, you know, I think Ilove this line about the golden
rule.
You know, when we do the classI always like to explain to the
realtors is there's two valuesto a home.
There's what it could appraisefor, if you're depending on
financing, and what it can sellfor, and I think that's really
what you have to make thatdecision if you're considering

(01:13:46):
listing or, you know, presentingit to a buyer right, whether
the home is an older home,that's been upgraded, say, look,
it's not going to list or we'renot going to get fined
this amount but you're going tohave to put your pocket and for
appraise value.
This home deserves it.
Let me explain to you why youknow.
And then go into the cost ofrepairs and the pain in the ass
it does to repair a home andbuild it.

(01:14:07):
So I think that's always theone thing I try to tell realtors
is that our job.
You know that when we're doingthat classes to teach them what
the appraiser is going to thinklike, because the golden rule
right, if you depend onfinancing, then you're going to
depend on an appraiser to comein and if the guy had cash he
could pay whatever he wants forthe house.
So you got to determine.
You know what the house wasconserved for and what the house

(01:14:27):
could appraise for.
So then really make what'sgoing to be the best
determination on how to approachthat offer or listing or
whatnot.

Speaker 1 (01:14:34):
Yeah, yeah, yeah, cool.

Speaker 3 (01:14:36):
All right man.

Speaker 1 (01:14:36):
Listen.
I think I think it was great.
Again, like I mentioned, youknow I don't think I like these
microphones.
They sound weird.

Speaker 2 (01:14:45):
You have to be very close to it.

Speaker 3 (01:14:46):
Yeah, they're very close, but then if you go out
here, we'll find out.

Speaker 1 (01:14:48):
We'll do that when we start the conversation.

Speaker 3 (01:14:50):
Get close to the mic.

Speaker 1 (01:14:51):
Yeah, yeah, your microphones are definitely
better, but whatever, these aregood enough for now.
So, pride in his eyes.
Yeah, a better, better.
So yeah, I mean, I think Ithink we did a thing.
This is a good one.
I think that what I like when wedo these real estate, straight
up real estate ones, I want theones, I want the podcasts that

(01:15:13):
are like timeless, meaning thatyou know in six months from now,
a realtor could pick it up andit's going to be the same shit.
You know it's going to be.
This is, this is hardcore realestate rules.
If I am a brand new realtor andyou know I just entered a
podcast or here where I, where Iheard, you know, 50 years of
experience and over probablydefinitely over 100,000

(01:15:35):
comparables under our belt, youknow to see, when I went over
there, it changed it, so you gotto stare right, right into it.
So I think it's a hell of apodcast, not not because we just
did it, but I think it's a.
I think it's a bad, bad, badass podcast that I think a lot
of these realtors are going to,are going to enjoy.
So, all right, jay, thanks alot, man, thanks for not
quitting and finally getting ussomebody.
And you were right, george waswas the right guy.

Speaker 3 (01:15:57):
I'm telling you he's the man.
Not only that, he could speakwell to some of the other places
I got Just you know, theywouldn't have been such good
content for the podcast, right.

Speaker 1 (01:16:06):
It would have been yes or no.
Stuff Right.

Speaker 3 (01:16:08):
Yeah.

Speaker 2 (01:16:08):
No answer.
So this is good like secondtier stuff for agents, the first
tier being kind of like how youuse the MLS and how to get to a
showing.
This is how to, like, step upyour game and get to the next
level.
I mean, I think, for to my mind, this is the level after this
is when you start to know thecomponents of the home, you
start to be able to look atthings, say, oh this, you see,
this, this is, this is a specialkind of system in the home,

(01:16:31):
whatever.
And that's when you reallystart to make the customer feel
like you deserve to be there andyou should be getting paid for
what you do.

Speaker 1 (01:16:39):
And it just brings confidence.
Like I think that if you listento a podcast like this, you,
what you're going to get from itis really confidence.
You're going to be like allright, well, I just heard a
bunch of like veterans talkabout this, yeah, and it ain't
much different than the way Isee it, Right, Right.
So I feel more confidenttalking about it.
You know, and that's that'swhat you know, being in this

(01:17:00):
business long enough, you'rearound people that know their
shit and you're like, wait asecond, they know their shit.
And that's exactly the way Isee it.
I know my shit.
I just realized I know my shittoo.
So, and that's what I thinkthat experience really is.
You've been in around enough ofthese conversations like this

(01:17:20):
could have been us talking at abar you know what I mean and
talking about appraisals.
So you're at that meeting andyou're, you know, hanging out
talking and getting informationon, you know, and everybody's
talking crap about appraisals.
You learn the next day you're alittle bit better at it.
So you know, I think thatthat's what it's going to serve
to a lot, of, a lot of ourmillions of viewers and it's
going to be.
You know, it's, it's, it's.

(01:17:40):
You know, I do know my stuff,because if these guys are
talking about it, you know thesame way I am.
Then we're good.

Speaker 2 (01:17:46):
When I got into this business, that's what made away
from me in this business, 100%was the short sales, because
that's when I came in, that'swhat it was Me too and I just I
listened and I learned and I hada better pitch than anybody
else because I was the onepaying attention and how short
sales worked.
And so I have a business nowbecause I got involved in the
conversation.
I realized at some point, likeyou said, I actually do know

(01:18:06):
this pretty well, yeah.

Speaker 1 (01:18:08):
And one thing I did a lot of at the beginning and I
guarantee you, jay, did the samekind of like.
They're the same.
As you do, be around you.
Try to be around people thatknow their stuff and sit down
and pick their brain.
There's very few old schoolersand I consider myself an old
schooler at this point thatwon't sit down with you and
explain.
As a me personally, I don'tmind really like I sit down and

(01:18:29):
talk, unless it's my friends, Iguess sit down and talk forever.
But I'm not a bigconversationalist man.
I want to go home.
I want to.
You know, I like, I want towork.
I want to go home.
I want to my family, I want togo home.
But we're talking real estateand you asked me questions.
I'm going to fucking talk andI'm not going to shut up.
You know and I can tell you,jay is the same thing, you know,
and kind of like the same.
So go out there, ask thequestions.
You know, sit down and go.

(01:18:49):
Hey man, I know you've been inthis for a while.
What are you?
You know what's up with this.
How do you see this?
You're like a guy like George.
Look, I've been in this a longtime and right now it's been.
Those 10 minutes were were key,you know, picking his brain and
you're like, all right, cool,all right, oh, that's the way
you see it.
All right, cool.
Well, that's the way you see it.
So go out there and askquestions, man, and don't be
afraid to go to an experience,real try, and ask me what do you

(01:19:10):
think about this?

Speaker 3 (01:19:12):
You know and what they wanted to say.
You guys know I talked a lot,because last time you're on the
last broadcast you're telling meto shut up.
Right, you were kind of quiettoday.
Yeah, by design.
I was like, let me pick myspots, come here.
You know, I don't remember thestart today, that's for sure.

Speaker 1 (01:19:30):
How long we've been so far.
One hour and 20 minutes.
That's good.
That's good, right there.

Speaker 3 (01:19:36):
All right, so we're going to start off with the next
question, Joe.
I know you guys are.
Hey, joanna, say hi to Joanna.
Hi, they want to say hi, theseare working away.
Yeah, a number is crunched.

Speaker 1 (01:19:47):
You're not on your plain podcast.
She's out there, she's actuallyworking.

Speaker 3 (01:19:51):
Yeah, right, oh, I'm gonna get that as soon as we
hang up you might not be inthere.

Speaker 1 (01:19:56):
You're playing podcast for an hour and a half.

Speaker 2 (01:19:58):
You're playing podcast shirt to there.

Speaker 1 (01:20:01):
You're playing podcast.
All right, guys, all right,Jake.

Speaker 3 (01:20:04):
Thanks a lot for putting it together.

Speaker 4 (01:20:05):
Thanks for doors now.

Speaker 1 (01:20:06):
Thank him and Cadillac, Thank you, sir.
Always All right guys, Thanksguys.

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Unlocking Successful Real Estate Appraisal Techniques and Valuation Secrets | RETalkPodcast | Episode 15

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}Unlocking Successful Real Estate Appraisal Techniques and Valuation Secrets | RETalkPodcast | Episode 15