Why Sellers Still Need to Price It Right as Inventory Climbs Nationwide

And now live from our smokehouse studio, it's time for Real Estate Jerky. All your real estate questions answered by our provocatively lean expert hosts, Edward Ed Parcaut, MBA, veteran and president of Lending for Living. We'll give you something to chew on. Real Estate Jerky is on now. Welcome to Real Estate Jerky. We'll always give you something to chew on. I'm your host, Ed Parcaut, MBA veteran and president of Lending for Living. Our studio is located right here in Modesto with our producer, Mike Murray, and we're proud to bring you the latest updates and insights on the real estate market in our community. Thanks to our partnership, iHeartMedia and the station KFIV. You can tune in, never miss episodes by subscribing to our podcast.

Stay up to date by following us on social media. Joining me today is Mike Kelly, a Remax executive realtor again, or I should say a real broker. A real broker. A real broker, yeah. Remax executive realtor. Yeah, real real uh fixing to purchase Remax. Yeah, it's amazing how a fintech company got so big in the real estate market and now is buying all the regular real estate companies. It helps when you got the fintech. It helps when you get that money. Yeah. Um I guess we get to keep our branding and all that stuff, so we'll still be Remax agents. Remax executive? Yeah. The question is, what does it do for the franchisees? Does it do anything for them, or is it just the main company just got bought?

You know what I mean? I don't I don't know. Yeah, I know the brokers are going to do a big dog and pony show here fairly soon, so we get to understand what's going on. I guess we get access to some really nice AI, even though Remax has some AI anyway already, but I guess it's cutting edge. Almost intelligent? Almost intelligent, exactly. Right. Right. It's only as intelligent as the driver. Don't get me on the AI because of the polymorphic agentic AI that's coming is uh Scary. can be very scary. Um and people are like, what are you talking about, Ed? Um it's like the T-1000 Terminator, which was a skeleton with with human flesh on it, and then the T-1000 came and it was all liquid metal and it could get into cracks and do whatever.

That's exactly what that new polymorphic agent and I can't even talk today, but the AI, we'll just say that, is coming that's it's actually already here. It just can change everything about itself to keep going and it's it's it's it's got really good uses and could be some bad uses. And I always tell people, we have that with everything we have, right? Yes, we do. Yeah, we can have we have bad and and no offense to the police, bad police, bad loan officers, bad real estate agents, bad other stuff. There's a bad apple in everything. Attorneys, lawyers, doctors, you name it. Yeah. And there's some people who do good. And that's the same thing with this. This can it's amazing what it can do on the good side.

And I always think you're going to have two things fighting each other now. You're going to have both of them fighting against each other then they'll just clash and take one out. You know what I mean? They'll just destroy that. Let me back to real estate that I really know. Yeah. What about that real estate stuff? I don't know. What about it? Is that what we're here for? Uh I sometimes I think so, yeah. Okay. Well, what we have today is let me move that over there so I can read. Uh we have so we always talk about national inventory in the beginning of the show. Right. Um and this last week we were up 22,042 and so we're at 765,048 nationwide of new listings. Okay. And there was like and normally we have 1.

2 million. That's correct. We're still way low because that's just how it is out there. Median list price according to Altos and and home where I get this stuff from, HousingWire, this is only single-family homes nationwide, 449,000. That's up 4,000. Median days on the market didn't change, 56 days on the market, and price reductions are at 35. 6 now. That's up a little bit more. We were sitting in the past few years were usually 33, 34 and we've been 34 and now we're at 35. I always say at least a third of all properties are going to have price reductions. And then you were like, because they're liberal. I'm like, what does that have to do with anything? You read my mind. I'm just Well, the and the problem is there's nothing wrong there's libertarians, democrats, and republicans and a bunch of other parties.

The problem is that term liberal is being used wrong now. Well, it's being it's being used as the far left, right? Correct. Correct? No, the left. No, the left. Not right. Correct? Yeah. I learned a long time ago to not say right when you're talking about left. You just say correct. So Oh, is that how it is? Yeah. That's like uh I watched Cheech and Chong's last movie, which was a documentary. Okay. And it's amazing what how those guys got together and how they did everything they did and how they made their money and how they became millionaires and all that stuff and how they were cheated out of their first movie. They only made $25,000 each. Wow. It's you know, you go back and how long it took them to become very successful and and because people think right now everybody wants it today.

You know, they can't wait to build it. It takes time. It takes years and years. It takes 15 years of overnight success to become successful. Yeah. 15 years of overnight success to become successful. Well, you know, that those hard knocks are what builds character. Is that what that is? Yeah, that's what I'm saying. Okay. You're listening to Real Estate Jerky. I'm Ed Parcaut, MBA veteran and mortgage advisor at Lending for Living alongside Remax executive realtor Mike Kelly. I don't usually watch a lot of documentaries, but I just thought, you know what? I really hated I mean their shows did their movies did well because of their their comedy that was funny back in the '70s, not in the '90s or the 2000s or in whatever we're in now.

And you know, it was perfect timing for them. I get it. I get it. And each each generation has a different sense of comedy. Um I grew up in that generation. Yeah, I'm still trying to figure it out with what you send me on Instagram how it's funny. So You don't get that? No, not most of the time. Oh my god. Yeah, not most of the time. See, and that's more new comedy than anything else. Or lack of it. It's tongue-in-cheek. It's funny funny. It's only in your head. Okay, you're off the chart. You're not getting anymore. Promise? Yes. All right, so we went that national number was 700 we're up 22,000. We'll just say that. Yeah, so that's where we're at. Okay. Uh we had uh we'll get in the local stuff real quick, but we had housing starts come out this week and housing permits.

Housing starts were up to 1. 5 million. That was 10. 8% up month over month and 10% up year over year. Housing permits were 1. 372 million and they were down 10% month over month and down 7% year over year. So confusing. It just means that how the housing permits they had already, they started them, Right. but then to go get new permits, they're like, I just don't know because of this war that's going on. It's still this whole thing is is not going the way that we everybody thought it was. But you got to remember, it's only been 9 weeks, not 21 years or 10 years or whatever. Right. And it definitely isn't World War XI. Not yet. Yeah. Yeah. And until the oil prices get back down to where they were pre this because they were $67 a barrel where I think we were at 110, 105 this way.

I don't remember. It changes daily. Uh the problem is, you know, the cost of price the price of our gas in California, about probably $1. 60 is this war. The rest of it is the fact that we don't have um refineries working. And it's so funny where you see these democrats on their commercial saying how they're going to you know, this war is not our fault. This is Trump's fault. And here we're going to fight the high prices of gas by lowering the the the the tax the 71 cent tax thing that's on there to save money. No, how you do it is you start the refineries again and get people and stop fighting these companies to do the oil for us. Yeah. That's how you fix it, not a 71 cent gas tax. They really want to force everybody to go to EVs and they're finding then the mileage tax will come up.

So they're finding that the unforeseen consequences of everybody going to electric is now there's no money for the taxes. Well, not only that, there's no nobody's building EVs like they used they were forced to do. No, because they're finding out they're really kind of a they sound better than they actually are. You can't go very far in them. Well, not only that, you destroy the world for the batteries and the other stuff and the fact yeah, the oh, it saves so much gas and we don't have that pollution. What about destroying the world by getting all the rare earth minerals and all the other stuff that's the batteries only good for a period of time and then they don't recycle them. We just pile them up, put them in a cave somewhere with all the other waste that we have done.

Yeah. The amount of pollution is I'm writing I'm writing an apocalyptic movie right now and you know, the group of Americans that are trying to figure out how to stay alive or find the cave with all the batteries in it. Is that oh, is this something you just made up right now in 2 seconds? That was me. Well, people don't realize there are caves in the middle of places that we've shoved um stuff in that's uh what's that radioactive material that's going to be in there forever. And it just doesn't go away besides the retirement documents. Right. Right. Yes. That take yeah, that's what we just put them all in the cave. Yeah, we don't know what to do with them. Yeah, we don't have any clue what to do with them.

If we put them there long enough, they'll they'll go away. Something will happen. They'll pass away. Get your real estate and mortgage questions answered by the experts at Real Estate Jerky. Contact us at radio@realestatejerky. com. You can call me Ed Parcaut at 209-404-1915. You can reach out to Mike Kelly at 209-968-5633. We talked about national numbers, nationwide numbers for real estate and we were talking about that we're up about 22,000 for last week with inventory. But and that's only single-family homes that you can add probably another 90 make it 90,000 for nationwide for everything else. Anyway, what do you have what do you have for us today? All those other things. Well, according to realtor.

com this morning, we're California, the state of California, we're at 150,746 homes are for sale on the market in California. Um How much? 150,000, so we're up about 5,000 from last week. But but but that's everything. That's I believe that's everything. Yeah, because realtor. com is everything or I should say the MLS is everything. That's what realtor. com and then the one that we look at is just single-family homes. So we're probably at 90 to 100. And they're at 102,861 this morning. Wow. So quite a big difference. Almost 48,000 47,000 and some change difference from the everything to the just single-family homes. Breaking the bank. Well, we don't have a ton of condos here in Modesto. No, you know why?

Too many lawsuits. Well, the ones we have were there were apartments that were converted. Exactly. Yeah, back in 2006-5. And then the other ones we have, you know, realtors back in the day called them um called them condos and they're really PUDs, planned unit developments, so you can get financing on them. Yes, any because right now FHA will do a spot approval, but it's you know, it's not fun. VA won't. You can't. There's no product projects that are going to be VA approved, period. So you have to do townhouses, PUDs, Right. Yeah. or single-family homes. Yeah. And for the Or manufactured homes on permanent foundations. the huge county of Stanislaus, um we're looking at 678 active homes on the market and 1,500 active realtors in the market.

Well, we also yeah, but um closed as of this we don't have the final number because they can still add them. It was 300 almost 300. What was that number? Yeah, 278 closed transactions for the month of April and like you said, we've got we've got two We got till Monday. 2 and 1/2 days. Yeah. Till Monday that because today's Saturday, we got till Monday till they have all the final numbers in. Yeah. Exactly. I just thought I'd help you out there. Yeah. Change your cane. Yeah, I know. I do need my cane and then my myator. So the issue with what I'm hearing is but we talked about this too because I ran the numbers differently this week, I should say my assistant Claude, and it came up with we had 372 closed transactions in the month of March.

That was last month. You your numbers came 322, I think, with everything. The difference is probably off-market properties. What I was getting at is that is huge for March. That is the best March we've had for and it was better than May last year, June, July, August, all the months that was You mean the hot part of the market? Yeah, the market hot part. Yes, and people don't And so that's saying that even in this time people have to move, people have to do stuff and the pent-up demand is just forcing people to do it. I have so many VA people writing offers because of that and I'm I'm glad they're able to write their offers. And it's largely because of life events, right? That things are changing in their life and they Well, they want to buy a house and they also they need they need housing.

They're tired of paying rent. Yeah, they want to buy a house. Or you've got these people who are in the lower interest rates that they've been shackled to those for a long time. Now they have to make the decision to either downsize or to get a bigger home because their family's changing. Right. I'm just glad they're finally getting out of the abusive relationship because I always want people to be out of those types of relationships. Yeah. Yeah, there's always going to be the one or two uh That stay there forever. the boomers that stay there forever and say, you know, well, I'm going to stay in this house till I die and I've only got a 2% interest rate. And that's fine because that's 52% of the market is the um 45 and older crowd.

Actually, I think it's 56%. 45? An older crowd, yes. That's in the market. First-time homebuyers were 40 and above, you know, 40 years old. That's that's huge. Used to be 31. And then back during the pandemic, I think I had it we saw it as low as like 23, 24. Why do you think the the age is so much older? Is it because of Nintendo and the Xbox? No, I think it's because of the fact of what it costs to buy a house these days. That's what the difference is. Yeah. Yeah, and it's tough with a uh after college job to be able to gain that money, especially if you have um No, not if you go No, you can go um over in the Bay Area and other places you can work from home. AI right now, uh the stuff I do coding wise, uh you can make almost 200 grand a year for most of these companies because that's what they're looking for right now, vibe coding people.

So, Yeah, or you can start a plumbing business and make about $300,000 a year. I know, but they got to know plumbing. Yeah, they do. And you got to you got to get in the you know what? With mine you don't. The union? No, the other stuff. The the sewer stuff. Yeah, the sewer stuff. The muck. The muck? Yeah. Well, I hired a company that was number one and number two. No, thank you. I'm sure they were. No, because Abdi, a friend of mine, he was over there doing security. He's like, dude, these guys are making almost 200 grand a year of what you're doing. I know. I go, well, great. But I don't want to do that. I want to do what I'm doing. Right. Yeah, but it's just saying they're they were talking about 50% of all um 50% of all white-collar jobs will be gone because of AI.

And I can see that, but you're just going to have to switch into something else. It's just like the Industrial Revolution and all the other stuff that came through and changed everything. That's what's happening again. Growth. Change. Change, and you just have to change with it. You're listening to Real Estate Jerky. I'm Ed Parcaut, NBA veteran and mortgage advisor and lending for a living alongside REMAX executive realtor Mike Kelly. Yeah, David Bowie sang about it. Changes. One of my favorites. That That Wait a minute. You heard it here first, folks. Ed Parcaut just sang a little bit. Changes. Very nice. Yeah, that was But that that one came out in like the '80s. Yeah, it could have been late '70s.

Yeah, not the '70s. No, he was Iggy Stardust in the '70s or whatever he was. What? Yeah, you're probably right. I'm I'm I'm trying to remember that far that far back. Hold on. I can I can't remember. I can't be my cane. Dave uh Dave's not here. Dave ain't here. And they So on that documentary they talked about how that happened. So when they went um so they were at a comedy store and Lou, this guy that was in charge of doing records and everything else, asked, you know, told had them come in and they were going to do a show. So they're like, what do you need? He goes, well, I need $1,000 um to go do this. And then that was for chunks of that. And she says, there's two of us, we need $2,000. And then they went into this room to do stuff and of course, you know, they're smoking their stuff they're doing.

Yeah. And that was that whole thing. And so uh Cheech comes up to the door, knocks on it and and in this room and the recorder's going. And he just he just waited and he didn't say anything. He knocks again. He goes, who who is it? And he wasn't supposed to do that. He was supposed to do something totally else. And that's how that whole thing came out. So it's just funny how it all the whole Dave, yeah. And most people are going, what are you talking about? I don't know. Dave's not here. It's just totally natural. Yeah. Yeah. All right, so you did local, you did you did regional, local. Yeah, I did I did local. Uh the 678 active listings and then the 278 probably going to be in the 300s by Monday.

Um closed transactions for the month of just April. Right, and we'll have to see how that looks up compared to everything else and I'll and I'll rerun the numbers for next week to see where that is with everything that's sold to see how we are. But I see that we even in this market where rates are not the lowest and they're not the highest and with this oil thing, but they're consistently the same. Right. Uh people are just like, okay, this is how it is. I have to move, I have to do stuff and I have to buy. And it's funny how because there really wasn't a winter everything is earlier. It really is, huh? By two months, March, April, May. We normally May is the time that really starts and then you have June, July, August and then September.

But right now it is March. Yeah. Yeah, you you think of people up in Tuolumne and Calaveras and Amador counties that normally are just digging out of their winter wonderland um now. Their markets already started because people are like, well, it's not snowing, let's go look at property. Yeah, they all have multiple offers. Yeah. I mean all of them. And yeah, you can get a nice home in the in the high threes. I'm just saying because they're again, there's they're like, okay, sell it, we're done. And other people coming, I want to buy it. And they're buying them and they're in the threes, the fours. But you can find stuff still up there. It just depends on what you're looking for. Right? I mean I think that was a song too.

I don't know. Yeah. I I'm not into Fleetwood Mac. Oh, that's what it was. I have no idea if it was. I think I think that's right. Well, we'll call it Lindsay Buckingham because it was after he joined. So my my mom hated that song from them. Cat not Cat in the Cradle, the one that talked about they only thought about you when they're knocking boots. Basically that's what the song was saying. Oh. That your mom and dad only think of you when they're doing what they're And she she was hated that song. That's not what true. I know. I know. It's like, yeah, it's because you never think of me. Oh, my life has been so bad. Oh my gosh. I remember telling us as kids, don't ever have kids. Oh, thanks, mom.

Thanks for telling us that. Yeah, they're a pain in the butt. Yeah. Oh, I love you too, mom. Yeah. Yeah. They're not as bad as you anyway. Oh, jeez. I get it. So um inventory. Inventory's always going to be below the demand, I think for the next few years. Uh demand demand lately I've seen in just the Central Valley, you know, working with buyers, demand is big. You go out, you look at a piece of property that's been on the market for 12 days and you're thinking, oh, you know, I might have a whole day to think about it. And then boom, there's three offers on the property. You do not have any time at all to think about it. If you like that house, make you can because you have 17 days to do your inspections and everything else and then say I don't want it or write the offer, get it accepted.

You can always back out before you submit your Right. Yeah, there's so many ways to get out of a purchase contract and um that are legal and written into the contract to help protect you as a purchaser. Correct, and that's I mean because people are like, well, let's talk about it. What do you need to talk about? You like the Do you like the house or do you not like the house? That's all it is. You know, the thing that gets me is I've got a um a buyer who will be coming to Modesto soon. She's had her home in Santa Rosa in escrow twice before this third and final time. It looks like this one's going to close. But people are writing full price offers and you know, glowing I love your home letters.

And then the next day they're like, yeah, I don't really like the floor plan. I'm going to go ahead and rescind my offer. How does that happen? Because they didn't even look at it. They just wrote Well, first of all, why are they writing letters saying how great the house is? You're not supposed to do that. Well, yeah, I guess you can mark in MLS that you want to. You want letters. I want a storybook about my house. Could you please provide it to us? This is Real Estate Jerky on Power Talk 1360 KFI V and I'm Mike Kelly, REMAX executive realtor here in the Central Valley right alongside Ed Parcaut, NBA veteran, mortgage expert and president of Lending for a Living. And we were discussing some of the trends of going on in the market.

Uh we were talking about people leaving their um abusive interest rates and actually finally making a move to better their their lives. Um but let's talk about Well, let's stay there for one second because we didn't we we kind of briefly talked about it. But what people don't realize is currently 20% of all mortgages carry a rate under 3%, which is different because most people think it's more than that. You think you think it's there's a larger percentage that have those. More people I think people think that, but I don't think that's the way it is. Okay. Yeah. And that's where I think people But people don't understand. I think 58% of the market has a mortgage on their house. Oh, that's all that has a mortgage on it.

Out of that 58%, 20% of it is somebody with a 3% or less. 20% Right. Most people have a, you know, under, you know, 5% or less. Okay, and that makes sense. So I mean at 5% If you've got a 5% right now and you need to make that move, just go ahead and make that move. Don't wait. Well, if you have 5%, it's not a big deal. Exactly. But if I mean it's people who have the 2. 99 or whatever and they're like, their payment's going to go up. I have somebody selling right now uh their place and they have a payment of 1,200 a month and their new payment's $3,000. And I'm like, you need to pay off all your debt if you're doing this Yes. with that extra money you have because if you don't, it's really going to affect you.

And that's not good if it affects you. Because you don't want to go in, you know, have Have you ever discussed the rules of threes with anybody? No, what's a rule of threes? The the three three months No, not your rules. I didn't have three ex-wives. No, and if you keep If you keep being happy, you won't have three ex-wives. Thank God I hope If I keep the current one, I won't have What's a rule of three? The Well, I was just reading this just a few minutes ago and they were talking about the rules of threes and now I can't find the article. But they're talking about three months reserves. Oh. Um I thought you were talking about the my rule of three, which is whenever it was moved from the Bay Area over here and I said they'd be moving back in 3 years.

Mhm. Oh. And that's exactly what happened. It's like every every so often we have this three-year change where people like move from the Bay Area and then go, that's too far to commute. And then move closer. That is very, very true. Yeah, and then or vice versa, they moved up to Tahoe. Now they have to go back because it's been three years and they have to show up to work now. Yeah, and I don't think they have to show up to work. Not many are having to show up to work. So you're saying have three months supply of reserves? Three months of savings, three months of mortgage reserves and then I don't know why they say three property evaluations. Comparing at least three different properties helps evaluate prices.

Oh, I say before they make the offer. Um it's great to have three months worth of savings and three months of mortgage reserves. It would be. Most people look at their savings and they're going to go, whatever that is, that's my mortgage reserve. Um Well, I have a lot of people who sell their house and they want to slap everything from it on it. And then I go, well, how much do you have in savings? How much do you have for your kids' college plans? How much do you have of that? Nothing. Okay, well then we're doing it differently now. Everything Yeah. Um I go, you want to I want you to use your money to buy things because if you use your money to buy things, you won't buy things. You just don't.

You buy you what you really, really need. If you use credit cards, you're like, yeah, yeah, I can do that. Right. Yeah. Yeah, I need that new TV. I need that No, you don't. Because you don't want the new TVs because they have cameras. And have you seen the lawsuit that they're being Oh, that's right. Yeah, because they're actively turning on the TV every so often, yeah, and taking pictures. Wow. Yeah, that could be. I'm going to have to start giving them something to take a picture of. I just put a little sticker over it. I got these nice I I because I have older I have my TV's 10 years old in my big room because it works fine. It's Yes, that could be clearer, but I mean there's I see I watch that has to be that clear.

Cuz I got bad eyes anyway. So You got the high def TV that's blurry because of your vision? Well, no, I just remember most people don't remember, but when we went from certain TVs and it was high, then we went to the the most recent like 4K and you're like, wow, look at all those people in the audience in the You know, you can actually see the people not a blurry. Yeah. Yeah. Just don't watch none of the 70s shows. Oh, they're their their their makeup was not for high def back then. Neither was their Yeah, exactly. All right, so people are giving up their low interest rates and and buying property. We said they were going to do this. This is something people are going to do. They just can't hold on to them forever.

They're going to be there's probably going to be 5% of the market that holds on to those. And that's going to be the boomers and the Gen Zs or whatever, Gen Xers, whatever I am. I don't remember. You? My age group. Are you in the classification? I know you are. So you're the boomer and I'm the generation before you. I'm younger than you. Yeah. After me. Yeah, exactly. I'm not the silent generation cuz I'm too loud. And and you'd be dead probably. Could be. Could be. Well, you'll probably make it into your 70s, 80s, right? I doubt it. I was supposed to be gone at 42, so we're good. Why? Cuz that's what I thought. My dad was gone at 40, my grandpa was gone at 60, you know. Oh, yeah. That's a curse.

I lived my life like uh not like that. I just like always felt older because of everything that's happened to me. You're listening to real estate jerky. I'm Ed Parco, NBA veteran and mortgage advisor lending for living alongside Remax executive realtor Mike Kelly. All right, we were talking about people leaving their ultra low interest rates, finally doing it. We knew this was going to happen, but that pent up that was the problem with existing home sales being so low is because people didn't want to give up those mortgages. But what's happening is if you look at just California, we'll get into the thing you want to talk about in a second, but in California, when people come here, so when people leave California, they save between $672 and 1,000 bucks a month.

Okay. When they come to California, it's complete opposite. That's why you're seeing less people coming to California and more people leaving California. And I still think that's going to happen more. I think we're going to have more people leave California because of the stupidity of the current government unless it changes and they start being more responsible for with our money and everything else because we can't keep getting taxed the way we're getting taxed. It just makes no sense at all to stay here. No. No, they when they continually want to raise more taxes, you know, they you listen to the debate the other day and and all the Democrat candidates, would you repeal the gas tax? No. No.

Why not? Because I need it for something else. Homeless. Because it's Trump's fault? No, well, they're not going to do anything with the homeless. No, I'm saying they're using that for something else. They're not fixing our roads. No, we know that. Yeah. We know that. Um yeah, it's it's All right, back let's talk about some positive stuff. Okay, well, here's some positive stuff that we were given a Yeah, you're going to be negative. I'll talk about get it going. All right, so we were given an article from realsimple. com from our producer. He's a really good guy. Um sometimes he has more issues, but we won't get into that. We love him though. Yeah. Uh six outdoor upgrades that can boost your home value almost instantly.

And the list here's I'm going to throw the list out there and then you're going to go through it and tell me if we're All right, so list is refresh the entrance. I could see painting the front door because it just looks horrible, right? That's this is all about curb appeal. Yeah, this is about first impressions. Yeah, so privacy upgrades. Are they talking about bars on the windows? That's a different kind of privacy. Uh no, they're talking about, you know, I'm just going to go through these and you can tell me after. Refreshing landscape. I could see that if your grass is gone, put grass in. I have I have a real estate agent who's redoing her front yard because it died because of the stuff and she's going to make it look good.

Right. And that's but she doesn't mean she's getting her money out of it. It's just going to sell better. Uh outdoor kitchen, updated lighting and wellness features. The wellness features, pools, built-in hot tubs, cold plunges, outdoor showers, saunas, even sport coats. Sport coats, courts, sport courts. Just wear your sport coat when you're selling the house. Yes, when you're playing in your sport court. Um I don't know if I mean an outdoor kitchen is really nice, but it's also expensive. It is. So and that's like pools are expensive, a sport courts are expensive, saunas are, you know, about 5 to 10 grand, a really nice one outdoor. Outdoor showers, they're not so bad. Uh but cold plunges, not everybody wants to get in a cold plunge.

It's it's an item that's going to sit back there and not be used and just become an eyesore. So um An eyesore? Eyesore. Eyesore. Actually, if you get the one that makes ice, you could actually use it in your drinks. So cuz the really good ones make the actual ice for the thing. That's true. They're going to sheet of ice. You have to break it to get into it, but then you get like I got ice for my I have an ice machine now too. Well All right, so out of all these things, so we always say when you list your before you list your house, update your curb appeal, make sure it looks good. Yeah, freshen it up. So how is that different than refresh entrance? It's not. You know, I tell people all the time Or landscaping.

this front door is beat to death. Um see if you can sand it down, put a coat of paint on it. You don't even have to be a very good painter cuz if you use the right material, it will probably seek its own level and um and look okay, but it makes the front look better. When people walk up to your house, they don't want to see cobwebs and dirt and debris and stuff. They want to see cleanliness and tightness. Cuz then they cuz here's what happens. People look at the front door beat up. They're like, okay, they beat the heck out of the store. What else did they beat up in here? How many kids that they have? No offense. Nobody has a problem with kids, but we all know how rough kids are on on things.

I had five of them. I can tell you they're rough on stuff. And usually it's the interior. Yeah. Yeah, I only had three and they're rough on stuff. And so people look at that. So when I put one of our house on the market, one of the things I did was I went through and even the door from the garage outside cuz people have dogs and whenever they'll scratch it whatever, I I primed just the trim the same color as the house that was supposed to be. And underneath the um sliding glass door, that thing always has cracks and everything else cuz those are things that get can get called on an appraisal, FHA or VA, those things right there. We need bare wood, that kind of stuff. They're going to want to want it painted.

And it makes the house look like it was taken care of. That's the most important thing. You want your house to look like it's been taken care of. I just had a appraisal done that was sent to me from one I'm doing a refinance on. That house does not look like it's been taken care of. It probably isn't. Yeah, it's it's you know, it looks like a hoarder was in the garage and they can't even close the garage door because it's got stuff in the way. Oh my. Yeah, it's bad. Oh my. Yes. Oh my, oh my, oh my. What is that? Uh we'll get more into more of this in just a second. Real estate jerky on Power Talk 1360 KFI is always bringing you the latest information on the real estate industry. And if you have any questions or comments about our discussion today, feel free to email us at radio@realestatejerky.

com. So back to we were talking about the six outdoor upgrades that can boost your home's value instantly. Well, it's funny, I looked at this article and they have this little little pool in this little area when you walk out the backyard uh that probably cost $20,000 and they're probably going to get two grand for it. Well, yeah, especially from the appraiser. I mean Well, that thing is the question is in this in this area where, you know, in the Central Valley, you want to have a pool already there. Right. But it can't be a really old pool because then you're going to have to redo the pool and sometimes that costs as much as a new pool. Yes. As much as the pool. Yeah. Cuz usually when you go in there, you're like, well, I'd like to change the shape a little bit, you know.

Well, that's like somebody we know is thinking about ripping this pool, decking out. And then like how much can we get to can we just do this? Yeah, cuz they and they're like, yeah, you can do that. Yeah, cuz it's not their money. They don't care. It's your money. Completely out. They're going to say yes, we can do that cuz that means they're going to get now get, you know, another 20 grand to do what you want and more, you know, cuz he that person wants this lap pool. I'm like, so is that Olympic distance? Oh no, just some like whatever. I'm like, okay, that's you might might as well where it's at. I mean, you're going to be spending money there. Yes. Well, and there actually is a canal not too far away.

Those are the best Those are the best lap lap pools ever. You don't swim in the canal. Don't you remember the frog? There's another frog telling you don't swim in the pool. Although you can't do kick turns. You know, the article is good. It talks about these improvements that you can do to your property. I just think the evaluation that this writer for Real Simple uh is giving the the value to the improvement is way pie in the sky. Maybe they're thinking what somebody would write off of if they saw it in that situation off their offer. Yeah, I just don't well, here. I mean cuz they're talking about like the front, you know, paint the front door. It's anywhere from 3 to 300 to 22500 bucks and it's in I've seen home sell for 6,000 to 10,000 more because of this.

No, you haven't. Well, here's the here's the thing I'm thinking and what maybe I'll do the other side. What they're thinking is now that house doesn't look like it's been taking a beat and so it's going to get full price offer where it might not have gotten the full price offer if they wouldn't have done this. That's what I kind of I'm thinking they're thinking, but I don't know. I didn't write the article. That's the first thing I would have set up. Right. Yeah. Yeah, and I and I'm going from an evaluation of what the property's worth because of the neighborhood. But this is the one that just really got me was the the, you know, add a pizza oven. They're typically between 50,000 and 100,000 to add the pizza oven.

And they said but can add 200 to $300,000 worth of extra value. And perceived value. No. No, no, no, no, no. Yeah, I understand the word perceived. What does perceived mean? You don't get it in your buying the house. You get it perceived in that person's head. Yeah, this is worth two to $300,000 more cuz they have a pizza oven in the backyard. Yeah. No. No, just get a Uni. Which I have. And you know what? Once you get the Uni dialed in, you figure that out, man, those pizzas are good. Well, it's once you set it up to propane. No, you know, mine's actually works off of uh the kibble, you know, the pellets. Pellets, I know. I know, but if you you can get the little thing connected to propane and it's so much better.

Oh, I know. Ready to go. Okay. Ready to go. And and if you want the smokes, you just throw a few pellets in there. The smokes? You want, you know, that wood fire smoky taste because of the fire, you just throw a few pellets in there while you're using the propane. Yeah. Yep, yep. My first pizza that came out of that thing was so black. Mine wasn't. Oops, it's too hot. Yeah, I I had one of those little things that could tell me the temperature inside there. Yeah, you're a lot better. Yeah, well, I make sure when I'm going to spend the time that I do it right. There you go. There's a difference. I'm just kidding. All right, back to so updated lighting. Uh I maybe out front, you know, spend about 100, you know, cuz the actual lights you put in for out front, they're like 30 bucks a piece.

Yeah. Yeah, and yard lights go go a long way. Yes. Some warm LED for example, avoid lighting the entire path in the front entry can cost between 400 to 2,000. May increase value by 1 to 2%. I don't see that. I see it maybe perceive value. Maybe it's going to give you the the one over the house next door, the house that doesn't have it to you're going to sell faster. It was like the house we had before where I put in that 4x8 island in that house uh in that in that complex which was and then I used the the type of cabinets and everything else. We had subzero and wolf which is way above that neighborhood. Right. But we utilized it and it was better for us cuz our subzero kept our food fresher longer and we had five kids.

Right. And so that made, you know, we used it for, I don't know, 10, 12 years and we got our benefit out of it. Right. But then we went to sell it, it sold over all the other houses because of that and the pool we had out there. You're listening to real estate jerky. I'm Ed Parco, NBA veteran and mortgage advisor lending for living alongside Remax executive realtor Mike Kelly. If you have questions or comments for us, feel free to reach out by emailing us at radio@realestatejerky. com. So that's, you know, just depends on if you're going to do this stuff, don't do it to sell it. Do it to enjoy your house and then sell it. Yeah, and your neighborhood's going to going to set the limit of what you're going to be able to ask.

And your house may sell faster, quicker for full price as opposed to the next house over. That's the problem about having track homes. Yeah. And not the problem about being in the in the college area. Exactly. The college area, every home is just a wee bit different. You may have a builder that built a home around the corner, but he's changed the floor plan or she's changed the floor plan on this next house that was built 4 years later. Um You're talking about the older homes or the newer? Well, because you just said some things that happened in certain corners in in the in Brady and other places where somebody bought a lot, split it and put two brand new homes there. What they should have done is put two brand new homes there but made them look like the neighborhood.

Right. And they didn't do that. Right. And it looks Like they didn't do that. They're they're sore thumbs. They're Well, they they're okay. It's just But, you know But they don't conform, you know. Neither do you. I'm a nonconformist. Is that what it is? Yeah. So anyway, the great article, things you really should look at to do, but don't expect what the article's saying Well, it's just like those shows on HGTV. Love It or List It, they spend 100,000. Now with your this is your new value of your new home if you keep it. Well, the only difference is the 100,000 was all stuff, not labor. Right. Right. And that's the problem. If you can do your own kitchen well, not just do it, you know, without all the labor costs, and then you're going to get, yes, a lot back on what you've done.

Right. But you know, most kitchens are $50,000. You're not going to get that back right away. You're just bringing that house up to current value of today. Right. Otherwise, people are going to come in and go, okay, I got to remodel that, that, and that. Unless it's in a situation where there's now a show that's on uh one of those channels from Hawaii. They're they're We talked about this last week. Yeah, where they're flipping homes there and they've been doing it for a while. Come to find out they're lying about how much they're making anyway. They're making way more than they say they are. But the thing is is they're, you know, they're buying them for 1. 2 million, putting in 250,000, but then they got 200,000 in closing and selling costs and holding costs.

And the holding costs is the 10% interest rate on these loans because they're using private money. You know they are. Right. Yeah. And then they get done and they make 75 to 100,000. I'm like, that's a lot of money to risk to do that. For a for a what's perceived to be a fairly small return. Well, just because of if you make one mistake, you just ate up all your money. Or if you make a mistake and now you're stuck with a $1. 4 million home and you're trying to rent it, what are you going to do? And that's their problem right now is cuz, you know, for a while their houses in a lot, you know, certain areas were just not going up or people weren't buying because they didn't have the money. And the funny thing Marcia keeps saying is what they always say a local family.

She's like, they're not talking about a Hawaiian family. They're just talking about Howlies. Yeah, because she's like, what Hawaiian person can afford a $1. 7 million home over there? King Kamehameha. Well, it's just it's just like the Bay Area. You got limited space and only so many houses. They go up in value. We're having the same problem here in California. It's going to keep going like this for once this market takes off and mark my word, we're probably in a 25-year increase. You know what I mean? Where it's going to keep going well. Yeah. Especially if we get this Iran war thing resolved. Oh, I hear that's going to be done in about 4 and 1/2 hours. It was done already. We just don't know about it.

And guess what? That's it, man. You got to stop talking. Yeah, we got to get out of here. No way. Well, I'm done. You know, if you have don't hesitate to reach out to us with questions or comments. You can find us via the web, social media, or shoot us an email at radio@realestatejerky. You can give me a call at 209-404-1915 and I'm at Park Cofee. Didn't know that. You can reach out to Mike Kelly at 209-968-5633. If you missed any of today's show, don't worry. You can catch up wherever you find your favorite podcast at. We're proud to live in this country. We can still build personal wealth through home ownership, right? Join us right here on Real Estate Jerky. We always give you something to chew on every Saturday at noon and Sundays at 3:00 p.

m. on PowerTalk 1360 KFIV. Mike, thanks for being on the show today. It's always fun and a pleasure. Thanks for tuning in to Real Estate Jerky and we'll talk to you next week. Right on. 1 second over. Oh, wow. Yes, I'm amazing. That's awesome. You should get an award. I think I should get one of those participation trophies. Here's your trophy. Right on, guys. Huh? Right on, guys. Yeah. Send me the part I heard. Sorry, I had a conversation in the back here, but I'm with you. I'm with you. Oh. So he didn't hear anything. He's going to say how amazing the show was and he never listened to it. I did hear you say um for my producer, he's a pretty good guy. Thank you. You're making me cry. Yeah, we lie usually on the show.

Did Did you cock your head sideways when you heard that? I was like, huh? They like me. They like me. Was that Sally Field? I did Uh she like you like me, you really like me? Yeah. Why is it? I don't know. Yeah, it was. When she got an award. Well, she Sally Field's the good old days when it was nice and tame. Yeah. She wasn't cussing or half naked or I don't think it was. I think it was crazy crazy and just um under wraps. Yeah. All right. I'm going to go to Sacramento. All right. I know. Yeah, I'm going to go to the Sutter Club and have lunch in with our legislators. Well, that's a waste. That's a good spot. It really is. So they can tell you how we need to raise taxes. How we're going to do affordable housing.

Yeah. God, they've been talking about I've been involved at CAR for probably 30 years of my 36 years in the business and the catchphrase is we're going to create affordable housing. No, you're not. What What does that mean? What's your definition of affordable housing? Well, theirs is to purchase, but I know that the No, it's not. Theirs is to rent. CAR is to purchase. They want see they want to see realtors making money not, you know, renting this stuff. Cloud recording process. We're at 76%. We're done. Okay. Hey Michael, have the best weekend ever. Yes, sir. Thank you. Appreciate it. You too. Have a safe trip up. Yep. And back. And back. No, just up. Just up. First things first. They don't care about you coming back.

Just get up there. All right. See you guys. All right. Make it a great day. Bye. Bye. Bye guys.