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Most and Least Expensive Homes in St George | St. George Real Estate Morning Drive Radio Show

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com.

Andy: Good morning. 8:36 on News Radio 94.9 890 KDXU. It is Thursday and that means it is time for the St. George Real Estate Morning Drive with Jeremy Larkin. Jeremy, how are you, man?
Jeremy: Good morning, everybody. Everybody.
Andy: Everybody.
Jeremy: Every body.
Andy: You have piqued my interest, by the way. He gave me a little teaser before we went on the air here about the most expensive and least expensive homes in Washington County. And he would not tell me.
Jeremy: I know you asked, Andy asked well what is the most expensive home and what did I say?
Andy: You will find out.
Jeremy: You shall find out. Listen, we have talked about this. It is no different than your newscast. Hey tonight at ten, we are going to find out exactly, tonight at ten find out what is lurking in the shadows for your teens. And you are like what do I need to know about my teens, and then it will be at 10:27pm. 27 minutes into 30-minute newscast.
Andy: You have to sit through the whole thing. Are you going to make us wait 27 minutes?
Jeremy: Heavens no.
Andy: Okay, good.
Jeremy: I would not do that.
Jesse: Twenty-six.
Jeremy: It is not who I am. Good morning, Joe. Joe is watching.
Andy: Hey, Joe.
Jeremy: Joe is in. We got some people. Guys out there. By the way, guys and gals, everybody as they say, make sure you comment and say good morning. Give us a thumbs up. Float a heart. That is one of the famous kinds of webinar things people do because we are in a business where we watch a lot of webinars. Hey, float some hearts over there. Any whose. Gang, Jeremy Larkin here. Host of the St. George Real Estate Morning Drive. It is Thursday. I have got Jesse Poll here in the studio. Jesse decided to show up in a t-shirt and baseball cap. It is like he does not even care. Tell us about your t-shirt because it says red day. I think people are going to want to know.
Jesse: Well, it is, all over the country, Keller Williams offices will be shut down today and out doing a community project somewhere.
Jeremy: Theoretically shut down.
Jesse: Yes. We will still be doing business, but the office will be shut down. We will be out there cleaning the park on our phones doing transactions, but we will be serving the community.
Andy: You have got a red shirt on under your sweater. I am guessing it is the same one.
Jeremy: It is not the same one, but it is similar. It is similar. So this is, today is Red Day.
Jesse: Yeah, today is Red Day.
Jeremy: Which is Keller Williams’ Red Day. Keller Williams is, so you know, a lot of our listeners, most of our listeners know that we are, I am Jeremy Larkin, CEO of the Larkin Group. Jesse and I are with the Larkin Group. We are a home-selling team. So in the real estate world, we have to have our real estate license shingled. Right? Hung under a brokerage umbrella. We could have our own brokerage, and we just felt like it was not worth the hassle and the liability when we belong to the greatest company on the planet, which is Keller Williams Realty.
Jesse: Definitely.
Jeremy: Red Day, there are two kind of elements here. Number one, Keller’s branding has always been red. But in addition to that, red stands for do you remember?
Jesse: Let’s see. Renew, energize, and donate.
Jeremy: Renew, energize, and donate. What does Red Day stand for? It stands for renew, energize, and donate. It is our annual day of service. Every second Thursday of May we celebrate Red Day as part of our legacy worth leaving, which is part of the core values of the company Keller Williams, and we believe that at Larkin Group. So today we will be at Little Valley —
Jesse: Little Valley.
Jeremy: — Park, I guess. Little Valley Park, ballfields and that kind of thing planting trees, and boy, is it strange. The weather?
Andy: Right.
Jeremy: This is, it does not feel like May. 61 right now, maybe something like that. It is really cool. It is supposed to be cool all day long. Seventies for the weekend. Hey, make sure you stay in touch here in the next five minutes for the 10-day forecast. Oh wait. See, at some point I think we are an Iron Man promoter, St. George Arts Festival promoter. What are we? Are we running a real estate program here? I think we are running a real estate program, and today we are going to talk about the most and least expensive homes. So if you see us, by the way, wrapping that up, out at Little Valley Park, all these people in red shirts. That is Keller Williams Realty out here doing our day of service. And it is our little, it is a fingernail portion of something. Right? Everybody needs to do our part. If we are not all doing something, it really does not happen. So there you go. You know what I love, Jesse?
Jesse: What is that?
Jeremy: It is how these companies love to say look at. We are doing Red Day. We are the greatest. We are, you really should know that there is no one better than us. Everybody. There are lots of people doing service today in St. George.
Jesse: There are a lot.
Jeremy: There are probably 50 service projects going on right now by massive organizations.
Jesse: Definitely.
Jeremy: But we are doing our part. Right? So there you go. If you want to check it out and see what that is about, you can google Keller Williams’ Red Day or KW Red Day. So we are going to have some fun. People like to talk about the most and least expensive homes, and there has been some interesting news, and I do want to talk about this as we get the show going. If you do not want to watch us on Facebook Live, if you feel like you cannot swing over or stay on Facebook Live because you know what, maybe your boss will find out, you can make it seem really normal by just turning on the radio in the office. See, people forget, our Facebook listeners forget that we are a radio show. Good morning, Facebook viewers and listeners, YouTube viewers and listeners. Good morning, Jeff. Good morning, Jeff. I have got double Jeffs. I have got Jeffs all over the place. This is crazy right now. But you can listen to 94.9 FM, 890 AM, which is, of course, originally where we stream from, broadcast from here at the Cherry Creek Studios. You can google 890 KDXU Livestream and you can pick it up there, and you can just stream it. I do not know. There are a lot of cool apps you can get on your phone. That kind of thing.
Andy: We have our own app, too.
Jeremy: Wait a minute. You do?
Andy: Yeah.
Jeremy: Wait a second.
Andy: Yeah.
Jeremy: I did not know that.
Andy: 890K. You did not know that?
Jeremy: I am out of it, man.
Jesse: I did not either.
Jeremy: Awesome.
Jesse: All those days that I was trying to stream it from my computer and –
Andy: Yeah, yeah, you could have had the app. The only problem with the app is that it is about 30 seconds behind live.
Jeremy: Ah, that is okay.
Andy: And so, when we do these contests, people call in and I have already given away the prize because they are listening to the app.
Jeremy: Yeah, they are like wait a minute.
Andy: Yeah.
Jeremy: Wait, they feel like they are getting gipped.
Jesse: So you can announce, if you are on the app, just call me 30 seconds before you need to.
Andy: Yeah, read my mind.
Jeremy: Yes, read his mind. So there is an article that came out this week. It said there is this Riverwalk, a brand-new Riverwalk project coming online down on Riverside Drive, St. George, talking about this new affordable housing, and you can only understand that any time anything goes on Facebook, mainly there is negativity.
Andy: Sure.
Jeremy: Because Facebook has become, and social media, but mainly Facebook has become like this outlet for everyone to share all their anger and resentment with the planet. Right? Which is unfortunate.
Jesse: And each other.
Jeremy: Yeah, it is really frustrating.
Jesse: It is sad.
Jeremy: I hate it. So years ago, The Spectrum, The Spectrum newspaper had something called the Vent, and they got rid of it.
Andy: I remember that. Yeah.
Jeremy: Do you remember that?
Andy: It was vile.
Jeremy: It was vile. It was vile. It was like Facebook. So it was like, Andy, when you release an article on affordable housing, and everyone hops in and says can you believe the greed? Can you believe the greed of business owners who would want to like, I do not know, build a house and make a profit? Can you believe these guys? Jesse, can you believe these guys? This guy opens a pizza joint here in town, and guess what, he wanted to make money.
Jesse: Right.
Jeremy: Can you believe the greed? Can you guys believe that Cherry Creek Studios here sells stuff, radio? Honestly, I am offended. Okay? I am working for, have a I made my point?
Andy: You have.
Jeremy: And this is the classic line we get. Affordable housing, LOL. It is always an LOL. LOL. Yeah, is it just greed or have values really gone up that much? Gang, let me see if I can give you an economics lesson that is going to last about 60 seconds. Here goes. Prices of everything on the planet are driven by you.
Jesse: It is true.
Jeremy: You.
Andy: That was ten seconds.
Jeremy: Well, there is about 45 seconds left.
Andy: Oh, there is more. Okay.
Jeremy: That means you and me and the three of us in this studio and everyone listening to this show, we drive the economy. Greedy builders air quotes and greedy real estate agents and greedy homeowners do not drive the market. The market is driven by consumers –
Jesse: But wait a minute. Isn’t it also greed to try to keep them down?
Jeremy: Of course it is.
Jesse: By buyers.
Jeremy: Because, of course, this is –
Jesse: It is all about greed.
Jeremy: Hypocrisy of the whole entire idea.
Jesse: Or not. It is just about life.
Jeremy: We are really just dealing with an economy, and what is happening in the economy is people start to move here and then what happens is the builders go oh man, I was selling this home for 250, but now the cost of my lumber went up, and the cost of my concrete went up because it is getting busy. Oh, and the cost of my labor went up because I am having a hard time getting guys. So they raised their price a little bit. And then people say I think I will pay a little more. And the builder says well, cool, if they will pay a little more. Gosh, if I was getting 260, maybe I can get 265. But then the cost of their labor and the cost of their materials goes up. So we have this cycle that happens, and as long as, I guess if we just want to boycott development, then we can absolutely, so government by the way, Thomas Sowell, you know who I am talking about, this famous writer, he has been in the paper. He had a piece that was really phenomenal years ago about how government intervention in housing prices does nothing. It actually creates almost the reverse outcome. So folks, listeners, buyers, sellers, homeowners, future homeowners, landlords, renters, I have covered every person that listens to this show. You are responsible. Isn’t that just liberating to know that it was your fault, to know that it was your fault and my fault and Andy’s fault and Jesse’s faulty? It is everybody’s fault that houses are expensive here because we are part of an economy. Here is what is not happening, and I am going to answer the question for all the people that complain about these. I am going to answer the question. Is it just greed? Nope. Sorry. Builders do not find out that they can sell their home for 300 when they were selling it for 240 and raise it to 300. There has never been, that is not, it is just so incremental. What about in 2005 when I bought a house and like 6 months later it was fifty-grand more?
Jesse: That was still the economy.
Jeremy: Still the buyer’s fault. Come on. Right? Now that I have been on my soapbox –
Jesse: But wait a minute. Let’s stop there. Who in their right mind –
Jeremy: Oh should we be done?
Jesse: No. Wait.
Jeremy: Thank you. Okay.
Jesse: Who in their right mind if you were selling a home if it was actually worth 300 and you had for some reason got it wrong, who wouldn’t change that if they could?
Jeremy: Let’s flip it on its end. All the buyers that can afford homes, so by the way, what we have is we have, and there was some great commentary on this article about this riverfront project. There actually are one in like fifty comments is actually valuable. We have a wage problem. Right? We have a wage problem. And understand that wages, that is a whole, that is a whole entirely different can of worms. Right?
Jesse: Right.
Jeremy: We have a wage problem. Remember, this is where all this crazy profit that people want to make in their business comes in. We have a wage problem because people want and need to make money. That is what business is about. Right? We do not live in a utopian society where we all get together tonight and like everybody down the street cooks a massive meal, and then we all eat from a bowl together. Right? We live in an economic, a democratic economic system, and what that means is people go out and they do what they want, and if they want to start a business like a lemonade stand, Andy, have you ever owned a business?
Andy: Sure.
Jeremy: Yeah, what did you do?
Andy: Well, first of all, I had a vending business about 15-20 years ago. Vending machines and stuff like that. I have had an LLC for myself. I have been a freelancer for quite some time.
Jeremy: Right.
Andy: And that was a business as well.
Jeremy: So nobody stopped you from doing that. Right? That was part of being an American. You get to do that.
Andy: I loved it. Yeah.
Jeremy: So I can go get a business license in the City of St. George for pretty cheap and I could start washing windows. I could get licensed and bonded and I could be a window washer. And that is part of the beauty of this country. Now, we are going to get to the highest, most, we really are. I am making them wait.
Andy: You are teasing.
Jeremy: We are teasing. But I think this is so important, and I hope that our listeners are really taking this in. When you live in this kind of an economic free market system, hey, the good with the bad. The good is guess what, in the United States of America you are not held down like in some of these terrible Third World or Middle Eastern areas where the people are oppressed. They cannot own a business. They cannot do really what they want. The flip side of that is things get expensive, and right now housing is feeling pretty expensive in St. George compared to wages. We do our little part. I guarantee you we pay more in our office than the average employer in town. I know for a fact because every time I talk to employers, they are like you pay that much, yeah. But that is our part. We are one company. So Jesse, people are, the inquiring minds want to know. It is May ninth. What is the most expensive now that we have soapboxed that, and gang, seriously, I am happy to have a discussion with you. Contact us at sold in St. George dot com. Sold in St. George dot com or you could call us at 275-1690. We are happy to pick this discussion up. All right? So most expensive home sale this year?
Jesse: Home sale?
Jeremy: Does anyone have any idea? Could anyone, I do not know, maybe one of our Facebook viewers has an idea. I do not know. We would see a comment come over there if they had that.
Jesse: So the most expensive home sale –
Jeremy: Most expensive home sale recorded publicly.
Jesse: $4.5 million.
Jeremy: Whew. How did you get a mortgage on that, man? Did it require a down payment for you?
Andy: How many pools do you have, Jesse?
Jesse: Right.
Jeremy: $4.5 million. Where was it at, man?
Jesse: Washington.
Jeremy: Say more than that. I know exactly where it was.
Jesse: 2860 South 20 East, Washington Townside.
Jeremy: Yeah, so people are like what is that?
Jesse: It is right downtown. Kind of.
Jeremy: Not really.
Jesse: No, no it is not.
Jeremy: I have got to correct you. I have got to correct you.
Jesse: (Indiscernible)
Jeremy: Clear out in the field. South by Adam Lane. This is this big Tuscan estate. Brent Minor sold it. Congra-freakin-lations, Brent. I know which property he is speaking of. I am not looking at it, but I am very familiar with it. Four-and-a-half, would you believe this? $4.5 million.
Andy: Wow.
Jeremy: Now I am going to give people perspective today. So Jesse, that is the real number. Four-and-a-half million. Was it 4.5 is what it closed for?
Jesse: Yeah, 4.5.
Jeremy: Give us some more data. Like what? Was this like three-bedroom, two-bath, two-car garage with a quarter-acre lot?
Jesse: Thirteen thousand square feet, seven bedrooms, seven bathrooms, five-car garage on seven acres.
Jeremy: There you go. So what this place is –
Jesse: It is an estate.
Jeremy: It is a resort. It has got its own pond, lake whatever you want to call it out there. I have not seen jet skis on it. Maybe it is not that big.
Jesse: Okay, but now, let’s, obviously that is an outlier. Let’s talk about the next most expensive is $2.8 million off of Long Sky Drive in St. George. That is in the Ledges of St. George.
Jeremy: Yeah. $2.8 million. Here is what is about this. I spent some time on Coronado Island outside of San Diego a month ago. We went to a friend’s home and it was a two-story, 2400 square foot home. So 12 on the main and 12 up. Kind of that like wood paneling, almost like a horizontal wood paneling, really basic traditional home built in like the 1980s. Right? I looked at the Zillow Zestimate. We have been beaten up on the Zillow Zestimate, but when you are in that kind of place, all you can do is just kind of look at a trend in the area. $3.5 million. The home was average, guys.
Jesse: Wow.
Jeremy: It was not much.
Andy: Wow.
Jeremy: Somebody said in this thread about this affordable housing. LOL, can you believe there is no affordable housing here. Somebody said why don’t you try living in Orange County? So we have to keep perspective.
Jesse: Right. Because even though our wages are low, they are not astronomically low compared to California.
Jeremy: Yeah.
Jesse: Compared to their real estate prices.
Jeremy: So Jesse, so that person at Coronado Island, they sell the house for $3.5 million and they move to St. George, Utah.
Jesse: Right.
Jeremy: They are a $3 million purchaser here aren’t they?
Jesse: Possibly or they could pocket half of that and buy a really nice house for one-and-a-half.
Jeremy: And when they buy that home here, whoever finds out they buy it is convinced that the people are independently wealthy. Right?
Jesse: Right.
Jeremy: But they may have not been independently wealthy. They simply did what?
Jesse: They bought right.
Jeremy: Bought right. They bought a house a long time ago in a place that went skyrocketed.
Jesse: They bought at the right time.
Jeremy: They might have had a regular job. Sold this home and just become absolutely really cash rich for a short period of time.
Jesse: My in-laws I think have that. They have lived in the same home for 25 years, I believe. I think they bought it for like 250.
Jeremy: Sure.
Jesse: It will probably be over $1.3 million.
Jeremy: Imagine that.
Jesse: 1.5.
Jeremy: And they will have paid their mortgage off.
Jesse: If and when they sell.
Jeremy: So, $4.5 million. All right. Most expensive home sale so far this year. $4.5 million. And when he says Washington Townsite, where it gets confusing is Washington Townsite is anywhere in Washington that does not have like a subdivision attached to it.
Jesse: Right.
Jeremy: So it is clear out there in Washington Fields by what we call Adam Lane. Adam Lane is this one cul-de-sac of homes where everything is like 52,000 square feet on an acre. So that is a little overwhelming. What is the, give it to us, what is the least expensive home sale this year? And by the way, well, we can qualify it.
Jesse: This throws people because –
Jeremy: Twelve million, Joe. You were high. I would like to know where the twelve was. He guessed.
Jesse: This throws people because if you do not put in single-family home, you are getting trailers that you could buy for $10,000.
Jeremy: So is there something that sold for $17,000?
Jesse: Yes.
Jeremy: I see it. So that is not only an anomaly, we cannot look at it.
Jesse: Right.
Jeremy: So what would be the most expensive condo, townhome, or single-family home? The least expensive that sold. And I can tell you right now what I have got.
Jesse: You have got it pulled up?
Jeremy: Yep, I absolutely do. So far this year, let me tell you, you can go out there and buy, yeah, you buy a Bryant Head condo. Right? You could go and buy a condo at Bryant Heat for $35,000 or $40,000. You could buy a fractional ownership. You could buy a mobile home on a rented lot, which is what Jesse is talking about.
Jesse: The least expensive property in the MLS was actually a fractional ownership in Las Palmas.
Jeremy: What was it?
Jesse: $20,000 for a condo.
Jeremy: So we cannot use it as an example. What does fractional ownership mean?
Jesse: That means that you just, you are probably a fifth or sixth owner. There are a team of owners, and you get it for what, one or two weeks a year, depending on how many owners. But the least expensive –
Jeremy: So we know, see how that throws Andy off?
Jesse: — single-family home –
Jeremy: If people go well, I saw something sold for $17,000. Well, really it did not.
Jesse: So the least expensive condo, let’s just talk about greater St. George.
Jeremy: I know exactly which one it is.
Jesse: Is $80,000.
Jeremy: I know exactly which one it was. Why do you think I know which one it is? Because we sold it.
Jesse: Because we sold it. That is right. We do not just deal in million-dollar properties, folks.
Jeremy: Thank you, Heidi Flannery. Amazing client out of Washington state. So $80,000, Spring Tree Gardens. One-bed, no bath, no kitchen, just kidding. I just want to see if people are paying attention. A hole in the wall from the demolition. It is a one-bedroom, one-bath, 588 square foot condo in a place called Spring Tree Gardens. $80,000.
Andy: 588 square feet.
Jeremy: That is it, man.
Andy: Wow.
Jeremy: There is just, right. There is not much.
Jesse: Okay so –
Jeremy: So let’s talk about a single-family home. What do people want to know? What is the least expensive sale right now for a single-family home this year? Okay? This is going to be fun here for people to know about. True single-family home. Now what will happen is when you go into the Multiple Listing Service, it will like mislead you.
Jesse: So I am going to take out the 55+ communities. Okay?
Jeremy: Oh, that is okay. I already have the answer for you. Do you want me to give it to you?
Jesse: Yeah, give it to me.
Jeremy: All right. I was just going to see if he had it, if he was beating me to it.
Jesse: I had it.
Jeremy: 1114 North Jefferson Street. Okay. So 1114 North Jefferson Street. People are like what is that? It is a place called Painted Hills Estates. What is that? Well, it is kind of fun because at the end of the day there are like 500,000 subdivisions in St. George and nobody knows what they are. Okay? We have got two minutes. Fifteen hundred, this is really interesting. 1512 square feet for $155,000. Jesse, that is the cheapest sale that I showed anywhere in Washington County.
Jesse: Okay. So you are actually wrong.
Jeremy: Okay, what do you think is the cheapest one? Because when I pulled my search, that was the cheapest single-family –
Jesse: Okay.
Jeremy: — well, you know what?
Jesse: This is tricky because out in Hurricane you have got Quail Lake Estates, which is a single-family home.
Jeremy: No, cannot count it. Cannot count it.
Jesse: It is a single-family home.
Andy: Those are tiny. Those are tiny.
Jeremy: Still cannot count it. I still do not count it.
Jesse: But if you take out those –
Jeremy: Here is why. Here is why it is basically, there are a lot of trailers in there and a lot of modular homes.
Jesse: There is, but this one is a single-family home.
Jeremy: Okay. What was it?
Jesse: It was 770 square feet for $129,000.
Jeremy: Okay. There you go.
Jesse: It is a regular community.
Jeremy: Check this out. So there was a sale on 100 South that Baw Britridges, a good man over at Keller Williams, had that was $144,000 that I did not include. It was interesting because it was listed as commercial and residential, but it shows up in the residential search.
Jesse: Right.
Jeremy: So, this was a single-family home that was 996 feet, a block from our office. When it says it needs a lot of TLC, let me see if I can describe this for you. It includes a bulldozer –
Jesse: Right.
Jeremy: — running it over in the final minute. So right now, gang, let’s wrap this show up with this. Housing is feeling pretty expensive in Washington County based on what is available.
Jesse: Yes.
Jeremy: Based on, excuse me, based on income. $4.5 million was a highest sale. We had a single-family home arguably at $130, call it $150,00 for a true single-family in like downtown St. George or Hurricane.
Jesse: Yeah.
Jeremy: $150,000 is as cheap as you are going to get if you are lucky, and it is going to need a whole bunch of work.
Jesse: You are going to have to be quick, too, because it is going to sell like that.
Jeremy: Greed is not driving our market. Okay? If it is, then it is because we are all greedy.
Jesse: It is pent-up demand. So let’s talk about that next week.
Jeremy: Well, that is exactly. Pent-up demand is driving our market. If you are thinking about buying a home, if you are thinking about selling a home, we want you to visit us at Sold in St. George dot com. Man, we could have fun with this discussion for hours.
Jesse: Next week.
Jeremy: Sold in St. George dot com. Oh, we are going to have some fun with it. We are going to find out when we talk about pent-up demand and what that means, like why people were kind of sitting around for five or six years not buying anything.
Jesse: Right.
Jeremy: Over and out.
Andy: Thank you, Jeremy, Jesse. Time for news on News Radio 94.9, 890 KDXU.

Avoiding the “Zillow” Home Buying & Selling Trap! (St. George Real Estate Morning Drive Radio Show)

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com.

Andy: Good morning. It is 8:36 on News Radio 94.9/890 KDXU. Here is your St. George Real Estate guru. It is Jeremy Larkin.
Jeremy: Good morning. Hey, I was hoping you were actually going to run with the hey, it is Southern Utah’s most accurate real estate forecast. That is what you said about Craig. Right?
Andy: That is right.
Jeremy: I do not know about that. That is what we want. We want that same kind of credibility. Good morning, everybody. Host of the St. George Real Estate Morning Drive. Happy to be here. Happy to be in studio and share with you honestly the good news of real estate. And today, we are going to help you really stay out of trouble online. On the old internet. Right. We are going to help you stay out of trouble with the information. There is so much information. There is so much information. You realize that Google is a verb now. Right? It is just a verb and it is just google it. Just google it.
Jesse: That is true.
Jeremy: I have got Jesse Poll here.
Jesse: Good morning, everybody.
Jeremy: Hey. My cohost, business partner, friend, brother. Gosh. Super funny guy. There you go. Jesse, listen. He says he is without his coffee. What is he going to do without his coffee this morning?
Jesse: I either have a water bottle or a coffee cup in my hand all the time.
Jeremy: Yeah, non-stop. Yeah. It is your stage presence. You need to have something. And you really do.
Jesse: It is my whoopie.
Jeremy: And the funny thing is it is, and you leave the water bottle and coffee mug all over the office, too. It is funny. And then he comes traipsing back in. Hey, happy that you are with us this morning. It is the 25th of April 2019. And part of the reason we time-stamped that is we are broadcasting the show right now on Facebook Live, which is easy enough, but we are also broadcasting on YouTube Live, and then we will upload this to our podcast. So we want to make sure that people know what we are talking about and when we are talking about it because the real estate market is like constantly in flux. Jesse, do you think there is another business that, in which the whole entire business environment is being reinvented as often as real estate? Do you know what I mean? Do dentists —
Jesse: I am sure there is, but it is not as public as real estate.
Jeremy: Yeah, would dentists go, oh man, the dental market is down. With everything that is going on in Washington, DC with the new presidential thing, people stop getting their teeth cleaned. Right?
Jesse: That is a good point.
Jeremy: That does not happen.
Jesse: And that is interesting, too, because your teeth are just as personal as your home.
Jeremy: Thank you. Oh, I thought you were complimenting my teeth.
Jesse: You do have pretty teeth, man.
Jeremy: Thank you, man. Top of the morning, Jessica. Good morning. Andy, is that a fair point? As a guy who, I am going to call you a lay person. You are not in the real estate business with us.
Andy: Right. I think that is a fantastic illustration of what it is like —
Jesse: It really is.
Andy: — because it does not affect everyday life for most people like it does the real estate market.
Jeremy: Yeah, correct. It is wild because the, same with radio. Here is maybe a valid point. I understand that people might increase or decrease their radio spend, like advertisers who are spending money on the radio –
Andy: That is true.
Jeremy: — based on economic conditions. But people do not go yeah, man, with everything that is going on in Congress, I decided I will not listen to the radio anymore. Or man, the stock market is up. I just do not think I am going to listen to the radio anymore. Stock market. That is just static. Most of our habits, but real estate, it is crazy. It is completely, every six months we have to reinvent.
Jesse: Actually, there is one other market that probably going through the same thing and that is the stock market.
Jeremy: Correct.
Jesse: But if you back up and look at that from a macro point of view, it is because that affects the whole world.
Jeremy: Yeah, it sure does.
Jesse: A mortgage in St. George, Utah could affect a bond sold in Germany.
Jeremy: Yeah, it actually could.
Jesse: So that, I think –
Jeremy: You are stretching it, but I will give it to you.
Jesse: Well, kind of because they are sold, I am going deep there.
Jeremy: Yeah, you got real deep.
Jesse: But you can see why –
Jeremy: I can tease this guy.
Jesse: But you can see why it is that way because getting my teeth cleaned does not affect somebody across the world.
Jeremy: It does not.
Jesse: And it never will
Jeremy: And the real estate market, it is front and center. People are thinking about it all the time.
Jesse: Right.
Jeremy: People have to live in a home. They have got to buy one. They have got to own one, sell one, rent one. They have to do something. Everybody needs a place to live, and that is just the way it is. As we move in, this has been a really interesting time. I got a text message on my way in here from a fellow, who is actually a real estate broker out of California. He said, hey do you think anybody is interested in my crazy home in Bloomington? Well, his crazy home in Bloomington is a vacation rental that is completely illegal.
Jesse: The 10,000-square-foot one?
Jeremy: Yeah. Let’s not give too much information out now. No, there are lots of 10,000-square-foot homes.
Jesse: There is.
Jeremy: Anyway, and I have not spoken with him because I went on the air. But this is the kind of text we get. Do you think anyone in your buyer pool is interested in my crazy home in Bloomington? Well, here is why he would be interested in selling it. Because the city is most likely barking at his door.
Jesse: Right.
Jeremy: Knocking at his door. So when the city forgets about it, and they do not talk about it, then he puts tenants in his home. It is a vacation rental, and it works really great. But these are the strange issues. So the City of St. George right now, Washington County, there is this big push for regulating vacation rentals. Two things we have talked about on the program. There is a big push to build vacation rentals in the county, but there is also a big push from I guess we would call it local government to make sure that we are restricting, we are controlling, or maybe even regulating. Right? We talk about a pressure reducer, a pressure regulator valve in plumbing.
Jesse: I think that is pretty accurate.
Jeremy: Yeah, they are trying to regulate it so we do not end up with what is happening, which is way too many vacation rentals in Washington County. Way too many. I just sold the Hammond’s place. Coral Springs. I want to tell you guys a quick story. We sold a vacation rental over in the Coral, I want to say Coral Ridge, but it is Coral Springs. It is over there next to the liquor store in Hurricane. I know it is Hurricane. It is a funny place to thing that that is Hurricane because, to me, that just does not seem, it seems like no man’s land where that liquor store is at Exit 16. It does not even feel like any city at all.
Jesse: I always get a kick out of wherever Utah puts their liquor stores. Because if you go in any other state, they are right downtown where everybody can get to them.
Jeremy: Yeah, they hide them.
Jesse: In Utah, we hide them.
Jeremy: They hid that thing. They put that thing out there like they are going to have to drive. So, we sold their vacation rental, and these are local folks, and a lot of our listeners will say hey, do you think we should invest in a vacation rental. This is a question we get all the time. Well, they just sold it and it was amazing because they are super happy, and we sent them out of there quick.
Jesse: I bet they were happy. They were talking about selling that a couple of years ago, and thankfully, they did not at that time.
Jeremy: Yeah, it would have sold for $240,000.
Jesse: Right.
Jeremy: We sold it for almost $300,000 and sold it in a couple of weeks. Now, the issue is for them, they were competing with, so this is where we talk about these local trends, and we are going to talk about avoiding the Zillow trap momentarily. They found that they were now competing, that Cole West, which is a big developer here in town. Well, statewide probably. I do not know how big they are. But Cole West was developing their own brand new vacation rentals on the other side of the highway there in Coral Canyon, and then they could not get their place rented out because Cole West, everybody would go to the Cole West units, and then they would go to the Cole West managed units next, and then lastly, they would go to their unit. These people said this just does not even make sense. Now, it made sense five years ago, and it might have made sense 12 months ago. And the crazy thing about real estate is it might make sense, it changes, but just understand that we are in a market that is constantly changing and here is the big change. The big change that has been happening, but it seems acute right now, is the information online. How much information, Jesse?
Jesse: Anything you want to know. If you know how to find it, you can find out. Almost anything.
Jeremy: Let’s talk about real estate. What is the challenge for the listeners?
Jesse: Well, the challenge with the listeners is there, well there is too much information. And I will give you a good point of that. If somebody does not really know how real estate works or how evaluation works, they could go on Zillow, for instance, and look at the Zestimate and, especially in the state of Utah, that may or may not be accurate by quite a bit. Now, I cannot find the data on that, but Utah is a non-disclosure state.
Jeremy: I can tell you, well, guess what I can find for you. I can give you Zillow’s data. I can get on Zillow’s data this morning.
Jesse: On Utah?
Jeremy: I can tell you exactly what. Do you think listeners would want to know?
Jesse: I want to know. I want to know.
Jeremy: Do you think that our listeners would want to know, by the way, do you know what a Zestimate is? I am sure you do. Andy?
Andy: I do.
Jeremy: How would you describe a Zestimate in English layman’s term?
Andy: Well, Zillow’s estimate of what your house is worth.
Jeremy: Okay. Perfect, man. That is brilliant. And it is fun to have you in studio because you are consumer and you are a homeowner.
Andy: Yes, yes.
Jeremy: So this is really interesting. If you head on over to Zillow dot com and plug in your address –
Jesse: There it is.
Jeremy: — they are going to estimate a value for you. If you visit Zillow dot com slash Zestimate, they will, it is interesting because Zillow has so much information that it is almost impossible to plow through the website in a logical format.
Andy: That is true.
Jeremy: It is like going to a car lot that is all of the car lots in St. George on one lot. This is wild. Well, here is the issue, and we want to help people avoid the Zillow trap. And the Zillow trap is that you go to any online, we are just going to beat up on Zillow because they are easy to beat up on. But you go to any online resource thinking that the resource is the solution because it was online. Kind of like trying to solve all of our relational problems by reading blog posts on the internet. I have definitely read some. Right? Zillow dot com slash Zestimate, they estimate in every state and every city and for every address in the United States, the value of your home.
Andy: Wow.
Jeremy: So what happens is people go in there and they obtain that information, and using that information, they make buying and selling decisions. Okay. They might make the decision to sell a home or to not sell a home.
Jesse: Yep.
Jeremy: Or to buy a home or not buy a home. Or maybe they use the information to decide that they think their realtor sucks. And this is real right? Well, Zillow said it was 440, Jesse.
Jesse: It happens every day.
Jeremy: Zillow said it was 440. Why did you say it is only 420? Which we are not going to answer that question because that is a whole separate. But does that happen to you?
Jesse: Yeah.
Jeremy: Yeah. I looked at Zillow or I spoke to seven other agents. Zillow has something called, and this is so fun, Zestimate Accuracy Table. I am going to read to you. The Zestimate accuracy depends on the location availability of data in an area. Some counties have deeply detailed information on homes such as number of bedrooms, bathrooms, and square footage and others do not. The more data available, the more accurate the Zestimate value. Let me ask you a question. Do you guys think that the Zestimate information would be more accurate based on Washington County being a rural, 160,000-person county, do you think it would be more or less accurate than say Los Angeles, California?
Jesse: Less.
Jeremy: Right.
Andy: I cannot even imagine it being accurate.
Jeremy: Right.
Andy: When you said they Zestimate every house in America, how could they possibly be accurate?
Jeremy: Yeah. So here is what it literally does. It cannot be. So what happens is they take all this information from tax records and then whatever real estate agents supply to them, and it essentially, it averages it out. This is a funny analogy, but it is like saying well, Andy is 6 foot three or four. You are pretty tall, man.
Andy: Five.
Jeremy: Six foot five. Geeze, man. And Jesse is five foot what?
Jesse: Ten. I do not know.
Jeremy: Well, if you divide those two, you will come up with an average and that is the average height in St. George.
Andy: Six one and a half. That is the average.
Jeremy: So that would be a pretty silly indicator of the average height. Right?
Andy: Right.
Jeremy: That we took two people and we said that this is now the average height of everyone in Washington County. We would want a better data gathering. So here is what happens. I am going to read the rest. Zillow’s accuracy has a median error or 5%. Okay. Meaning, hey, it is plus or minus 5%. Okay, that means half of the home values in the area are closer, let me move on here. It gets confusing for people only because if you are not reading it. But they are plus or minus 5% accurate is what they say. Here is what they did. They produced their accuracy table and they said this is how accurate on a scale of 1 to 5 we are in every state in the United States. Okay? Zillow Zestimate Accuracy Table. One star means we were not very accurate at all. Five stars means we were crushing it.
Jesse: So I am going to go ahead and put that in the comments on Facebook Live. The link.
Jeremy: I even have an image. You can put it in there.
Jesse: Some people can –
Jeremy: Check this out. Here we go. Let me tell you where they are doing a nice job. In Maryland, they are at 4 stars. This is their self-rating. They are at 4 stars. In Arizona, they are 4 stars. Doing pretty well down there. They are running 4 stars in Nevada. Not surprising. And in Virginia. Well, this is interesting. Zillow’s self-accuracy rating for the state of Utah was 1 of 5 stars.
Andy: Ouch. That is not good. Would you watch a movie if it was rated 1 out of 5?
Jeremy: No.
Andy: I would not either.
Jeremy: Come on. Would you buy something on Amazon? Geez, if it is not 4.5, you do not buy it.
Andy: Right.
Jeremy: By the way, you should look at our reviews on Zillow. Speaking of Zillow. It is so funny, so it says this rating is tied to the median error and here is the rating as follows. Excuse me, not five stars. I misspoke. It is four stars. I do not know why I thought it was five.
Jesse: You said four.
Jeremy: Okay. Four stars. Best Zestimate. Three stars, a good Zestimate. Two stars, a fair Zestimate. One star, tax assessor’s value or unable to compute Zestimate accuracy. Come on.
Jesse: That does make sense though because they cannot, they do not get the data for Utah unless somebody gives it to them.
Jeremy: And I think the cool thing is it is an accurate, at least they are sharing it. People would not even know how to find that. By the way, 99% of the agents in the county have never seen it. We have never seen it until recently. That accuracy table, that is new to me. Right? Dave, I will take Jeremy’s estimate a million times over. You are awesome. Value from an actual local realtor. They know this town. Thank you, sir. And Peyton, good morning. Peyton is one of our friends and competitors. That is what I like about him. We call it co-opetition. He has seen them 20% off.
Jesse: It is true.
Jeremy: And by the way, we did not mean 20% off as in like get 20% off sale. He means 20% inaccurate.
Andy: You think about a $300,000 house, that is missing the mark by 60 grand.
Jeremy: Yeah, that is a good way to put it into perspective.
Andy: Holy cow.
Jeremy: And a $300,000 is the average value really in Washington County.
Andy: That is a swing and a miss.
Jesse: 350 is the average value in Washington County.
Jeremy: And well by the way, that is again why averages suck. Because it is really not —
Jesse: Right.
Jeremy: Does that make sense? You have to look at what are people really buying. 300. Right?
Jesse: Yep.
Jeremy: Isn’t that true? So isn’t it funny?
Jesse: Well, between three and four is a really pretty good solid market.
Jeremy: Yeah, because it comes up at 350. And what can people really afford? 250.
Jesse: 250. Yeah. That is even lower.
Jeremy: Not that what you are saying is not correct. I am simply saying that is why these statistics –
Jesse: I know. It is okay. You always have to (indiscernible)
Jeremy: The statistics like, so the average, again, we averaged it up. So what does this tell us? Here is the challenge with that. Now we have decided that because the average sales price is 350, that is about what people can afford. That is what we think.
Jesse: Right. And there are so many people that cannot.
Jeremy: 90%. Right?
Andy: Yeah.
Jeremy: 90% of consumers are not going to be able to buy in Washington County a $350,000 —
Jesse: No.
Jeremy: I think that is real. Now, here is the crazy part about it. You could argue and say well, how is that possible because all of the houses are selling for that much. Well, you are not taking into account how many of the people do not live here that are buying the houses.
Jesse: Yeah, we are not necessarily a normal market. Most of our buyers are either coming in from California or Salt Lake or somebody wanting to retire here or buy a second home because we are really a resort market.
Jeremy: Yeah, we are. And we get a little passionate. So maybe 90% is probably extreme. So a lot of folks cannot afford –
Jesse: There is a lot.
Jeremy: And certainly on a single household income that is the case.
Jesse: Yeah.
Jeremy: So Zillow’s accuracy table that they produced, so they are saying well, we are one of four stars in Utah. We are not doing great. Well, they are not doing well at all. Let me tell you where else they stink. This one shocks me. Texas.
Jesse: Texas. Well, no it does not. It is also a non-disclosure state.
Jeremy: Oh that is why. Jesse, help our listeners understand what that means.
Jesse: In the state of Utah, a seller that sells their home does not have to tell the state of Utah or anybody else what they sold for. Now that data is available through the MLS or the Multiple Listing Service, but when we fill out the form that says we are a new resident, we do not have to tell the state what we paid for that home. So therefore,
Jeremy: Non-disclosure.
Jesse: It is not public record.
Jeremy: So when you look at the public record it says the home was sold for $10 or other good and valuable consideration.
Jesse: Right.
Jeremy: It is a static. That is all they put on the bead.
Jesse: So that is kind of confusing because in the Multiple Listing Service, if it was sold there, that data is there. But it is not shared with the state, or the tax assessors.
Jeremy: Yeah.
Jesse: Is that pretty accurate?
Andy: So what you are really saying is Zestimate is just relying on what is given to them instead of going out and getting it? They are not working very hard to chase it down.
Jeremy: They are not.
Jesse: They cannot work very hard.
Jeremy: It is just a computerized model. It is a computerized model. Let’s break this into real terms then. All right. So if you are considering buying or selling a home right now, and if you own a home and you have owned it more than a year, let’s say you have owned it two years, and you thought I do not know if I want to live here. I have an investment property. I do not know if I want to sit on it. This would be that time. If you are thinking of selling because you want to sell because you have a reason to sell, then that is what you do. How often do we get the question is this a good time to sell? It is like well, what do you want to do? Well, we want to move. It is a great time. That is a personal decision. But if you are sitting on a property where it is like an investment property and you have been hanging around and you are wondering I wonder if I should sell this, you probably should because what we are able to do is take the data, the actual history. The crazy part about real estate is we can look in the rearview mirror quite nicely.
Jesse: Right.
Jeremy: Right. We can definitely see what happened behind us. And we can take what happened behind us and make our very best guesstimate rather than Zestimate about what will happen in front of us. And what we know is that the market is at a seven-year, actually at a 10-year peak, but we have been on a seven-year run, and I refer to this as the biblical account of 7 years of famine and 7 years of plenty. And we had 7 years, if you look back –
Jesse: We did.
Jeremy: — it is about right. And it is 5-7 years of famine. 5-7 years of plenty is what we see in real estate. So every bit of data that we have in front of us tells us that the market peaked in July of 2018. Peaked, past tense. Right? And you are going out there and you are like well I want to get this information. We used Zillow today as our poster child, but any online, heavens, we send people to our Dixie Home Value dot com which is an estimated home value. It is just doing the same thing.
Jesse: And sometimes it is accurate and sometimes it is not.
Jeremy: And we always tell folks, they get an email from us after. Hey how did it look? Did it seem accurate because we cannot even control what that automated –
Jesse: Right. That is true.
Jeremy: — model does.
Jesse: And it cannot, even if you tell it, it cannot know exactly what you have in your home. Do you have tile? Do you have granite? An algorithm –
Jeremy: 2×6, 2×4.
Jesse: An algorithm can never take what you are typing in there and spit out a true –
Jeremy: It is funny because a home is a commodity and it is also not. Meaning it is a thing made up of commodities but then they are always unique in every neighborhood, and every neighborhood is unique.
Jesse: Right. I want to go back to something you said earlier because you talked about the guy from California sending you that text. The online easy button, going online and getting this done is kind of a trap. So we have actually sold a home another vacation rental home for that same gentleman before. And had it sold pretty quickly for good money. But the easy thing to do would be just to reach out and say hey, do you think or the last time he hired a property manager who, a home like that needs somebody that is selling a lot of homes. Not renting them.
Jeremy: A full market presentation. Right?
Jesse: But it was easy to do. It is easy to go on Zillow or somewhere to find your home value. But is it going to be the best value? Is it going to be the best strategy?
Jeremy: Let’s talk about, as we wrap up this show today. If you are thinking about buying or selling, I just strongly recommend you either call us at the Larkin Group or you call your friend who you trust as a real estate agent. You call a professional. You can visit us at Sold in St. George dot com, and you say look, by the way, look at Zillow. For sure, everyone is going to look at Zillow. We do not have any problem with that. When I go into an appointment with a seller, I have already looked at it every time because I need to know, but what Jesse is talking about, look we are in this process of understanding what the consumer wants, and the consumer wants options. So if you want to sell your home, when we meet we are going to give you a couple of options. And one is our Instant Offer Program, which is where one of our investment groups can make you an instant offer on your property, cash, close 7-14 days, 30 days whatever you want. You do not have to clean it up. You have to move your stuff out. No staging. No repairs. Subject to an inspection. Right? They can make an offer. And that is what we call maximum convenience. You do not have to go through any of the heck and hell of bringing strangers in your home and all that. But most people, as in 95%, will not do that. 95% will opt to get a full market valuation. Say Jeremy, Jesse, show me how to get the most money out of my home. And that is what we call maximum value. So maximum convenience is an instant offer. Maximum value is we help you get the home staged, prepared, prepped. We market the property. We show it to lots of buyers, lots of agents. We bring people through. We negotiate a contract. We send you on your way. So let us do that. And this is really fun. And realtors are like how can you possibly do that? Hey realtors that are listening right now, is this fun? You can do that, too. My competitors who are listening, you can do this. Why can’t you do the same thing? We have buyers lined up. Investors. Now, the investors, because it is maximum convenience, they are going to pay less. Right?
Jesse: They are.
Jeremy: But everyone’s situation is unique. Guys, avoid the Zillow dot com trap, buying and selling. Make sure you call a pro. Thanks, guys.
Andy: Thanks for listening. St. George Real Estate Morning Drive. Jeremy Larkin. Jesse here, too. I am Andy Griffin. It is time for news.

How long will it take to sell my home? 40th St. George Arts Festival! (Real Estate Morning Drive)

How long will it take to sell my home? 🤷‍♂️And will I have to negotiate a whole bunch? 🏦 Jeremy Larkin and Jesse Poll take OPINION out of the equation and use real life data to answer these questions home sellers have! Also, the 40th annual St. George Arts Festival is upon us! Hope to see you on Town Square!

 

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com.

Andy: What is up? It is time for the St. George Real Estate Morning Drive. Standing by is Jeremy Larkin with his sidekick. He would be the Robin to his Batman. It is Jesse.
Jeremy: Oh, I like that. I like that a lot.
Jesse: I heard a story about that once. Batman and Robin for one of my sales.
Jeremy: I like that. This is true. This is true.Jesse: It was fun. It was a great story.
Jeremy: The old press release.
Jesse: Bam, boom, bam.
Jeremy: Oh my gosh, you guys, good morning. Jeremy Larkin here. Host of the St. George Real Estate Morning Drive. So happy to have Andy in here with us this morning. Jesse Poll here. Robin. Batman.
Jesse: Good morning.
Jeremy: I do not know who we are, but we are what we are. Hey guys, my heavens, there is a lot going on. This is getting into like epic activity levels here in Washington County. We have the St. George Arts Festival. Does anyone know when the arts festival, I know, but does anyone else know when the St. George Arts Festival started? Does anyone want to venture a guess?
Andy: If they have been listening to my show this morning, they would know that.
Jeremy: Have you been talking about it?
Andy: Yes, we have.
Jeremy: I guess I was not listening. Of course, I was managing children this morning.
Andy: I was in high school when it started.
Jeremy: Really?
Andy: Yes.
Jeremy: 1980. Freshman year.
Jesse: Wow.
Jeremy: Yeah, 1980 they started with this thing. And the history, it originally started on Ancestor’s Square because that was like this little arts village, and Ancestor’s Square has become more of a restaurant zone at this point. But 1980, so we have been cranking it out for a long time. Almost 40 years. That is crazy.
Andy: What year were you born, Jeremy?
Jeremy: 1975.
Andy: So you were 5.
Jeremy: I was 5 years old, and I used to go downtown and I remember it was the old library, which the old library sits exactly where the town square tower is. This splash pad and the tower, that exact, that is what was removed to build town square.
Jesse: That is pretty cool.
Jeremy: And I just remember that so well.

Read more…

Is Zillow.com your FRIEND or FOE? (St. George Real Estate Morning Drive Radio Show)

 

On this week’s show Jeremy Larkin and Jesse Poll of The Larkin Group at KW Realty discuss Zillow.com. The fact that Zillow is here to stay, consumers (want) to trust them, and how to determine if they’re your friend or foe when buying and selling real estate!

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com.

Andy: We are still doing the technical part of things.
Jesse: Yeah, I was having some technical issues here this morning.
Jeremy: We were.
Andy: That is always an issue –
Jesse: All of the above.
Andy: We have got all the, like in this room, if we count our phones, we have like nine computers in this room. There is a laptop. There is like three desktops. We have three phones in the room. I think we are going to be streaming on Facebook Live. All kinds of things. Right, guys?
Jeremy: I actually just hung up with NASA and they have their super computer headed here on an 18-wheeler. So we are going to get that set up shortly, and your mind is really going to be blown.
Andy: Yeah, looking forward to that.
Jeremy: That is not bad, is it? Jesse, can I trust Zillow for my home value? Can we answer that question today?Andy: KDXU news time. 8:35. Welcome to the St. George Real Estate Morning Drive with Jeremy Larkin. We have really just one issue right now and Jeremy Larkin is not in the house yet. I think he is in the house. He is not in the room yet. But we will get things started and start talking about St. George Real Estate. A lot on the mind and what are your thoughts as we get things going early with Jeremy in the other part of the building? You got any ideas for me? He is still working on the technical side of things. Maybe we will keep the music going a little bit longer. If you are in the real estate market, you ought to check in with the Keller Williams team, or the Jeremy Larkin team under the umbrella of Keller Williams Realty, and it is a great time of the year to make that move to maybe your dream house. Or maybe you want to downsize if you are in a situation where perhaps your house is too big. That is kind of where I am at right now. I had raised five kids, but I have got this big old house and only two of the kids are left. So I start thinking about things like downsizing and changing the situation in my household. These are the kind of things that you think about. Dream house. Maybe you want a pool. Maybe you want a pickle ball court in your backyard. Whatever it might be. This is a great time again to contact the Jeremy Larkin Group at Keller Williams Realty. He just made it in the house, so that makes me a lot happier. I do not have to sit here and filibuster a little bit while we wait for Jeremy Larkin to join us. He is here somewhere, and he is looking rather dapper by the way as well. You ready to talk a little bit, guys?
Jesse: Yes, sir. You have got to push play on the other one, too.
Jeremy: Oh my gosh.

Andy: Oh, that is a good question.
Jesse: Yeah, we can.
Jeremy: Yeah, can we?
Jesse: Well, it is actually –
Jeremy: We can answer the question or can we trust Zillow?
Jesse: Well, I do not think you can trust Zillow without doing a lot of homework because they do not know, they do not have access to the real closed data and they do not know what your home looks like or has or anything. I can give you some good examples of that, if you would like.
Jeremy: I would love to hear. No, the listeners want to hear.
Jesse: We just saw a home over in the Legacy the other day, and Zillow says that it is a 4-bedroom, 8-bathroom –
Andy: Eight bathrooms?
Jesse: — so I know for a fact that this home has got three bathrooms.
Jeremy: Ah, the old eight-bathroom home. We know everybody loves that one.
Jesse: So chances are they are giving them probably four grand each for one of those bathrooms, so if they have got five extras, that is what? $20,000 extra that they are getting for their home value or their Zestimate?
Jeremy: Yeah, it is crazy. It is crazy, which is insane, right?
Jesse: Yes.
Jeremy: Which is insane. So I had somebody yesterday reach out to us and they said hey, I want to look at my Zillow home value. What do you think my home is worth in Bountiful? I said is your home 2700 feet? They said yeah, the main floor is 2700 feet. What do you think happened, Jesse? What do you think was missing?
Jesse: Their basement because in the state of Utah it counts basements differently and Zillow cannot track that.
Jeremy: Yeah, imagine that. Imagine that, Andy, you go on to Zillow dot com thinking of hey, I am going to find out what my home’s value is. I am just going to go ahead because I heard that Zillow, I saw these Zillow ads, and the Zillow ads are so lovely. They feature these families that are doing great family things like making pancakes. We saw one. We are going to talk about making unicorn pancakes, and we are going to talk about an instant offer program today. And you go on there thinking well, I will see what Zillow says my home is worth, but here is the problem. Zillow only, if you have a basement, they do not show it.
Jesse: Right.
Jeremy: They do not show it. Jesse, what would that mean to a consumer? Value-wise.
Jesse: Oh quite a bit. Probably half as, so on a basement, you will get about 40% more, less value than you will on your main level, so you may be missing 30-40% in your Zestimate value.
Jeremy: Yeah.
Andy: That is a lot of money.
Jesse: Right.
Jeremy: It is a ton.
Jesse: Right.
Jeremy: It is a ton. All right, guys. We are going to do Facebook Live here.
Jesse: We are getting our technical difficulties situated.
Jeremy: We have got it figured out. We had to reboot the system. So just envision, for our listeners out there, I am Jeremy Larkin, host of the St. George Real Estate Morning Drive, and I drove and it was morning and it is beautiful out there. But you are talking about you could be missing 50 to 100 grand.
Jesse: You could. Definitely.
Jeremy: Right?
Jeremy: And vice-a versa. It could be over. For a good instance is that bathroom. Their Zestimate is probably is $30,000 over what it should be.
Jeremy: Yeah. Yeah.
Jesse: What it would sell for in the market.
Jeremy: Absolutely. This is an issue, and we just went Facebook Live, so if you want to watch this morning on Facebook, Facebook dot com slash St. George Experts. Facebook dot com slash St. George Experts. Check it out. Actually, you know what? I lied. We are actually Facebook dot com slash Jeremy Larkin.
Jesse: It is on your personal page.
Jeremy: Yeah, I apologize. Facebook dot com slash Jeremy Larkin. We want to answer some of the most typically asked questions that we see in real estate, and the first one is can I trust Zillow for my home value? Now, Zillow is up to something else, Jesse, which is their Instant Offer program. What are they doing?
Jesse: They are going in to markets, and they will actually give you an offer for your home. It is right there. Hang in there. So they will give you an offer for your home and buy it.
Andy: Zillow will?
Jesse: Yeah, they will.
Andy: Really?
Jesse: And then they will turn around and sell it for market value. So that is a good thing to keep in mind that they are actually going to turn around and sell it so that the chances that you are getting market value for that home are slim and one.
Jeremy: Yeah, they are slim and none, not slim to none. Thank you. So there is a video that I watched yesterday. I guess it was released to YouTube. Zillow dot com slash offers, and here is the fun part. Here is the great part. So many real estate agents love to hate Zillow. They love to hate Zillow because Zillow, of course, is trying to take the real estate agent out of the process very subtly. So instead of running from it, we are just going to talk about it on the program this morning. So Zillow dot com slash offers, if you would like to see what that looks like. People are going to find it anyway.
Andy: Grab the bull by the horns, right, Jeremy?
Jeremy: Yeah, here is the issue. Zillow is going to make you an offer, an instant offer, online, without ever having seen your home. The offer will be subject then to them sending in a real estate professional appraiser inspector and deciding what they really want to pay for it. Okay? So first of all, Andy, if they come in and offer your $400,000 for your home it does not mean they are buying your home.
Andy: Right.
Jeremy: Right. There will be tons of fine print that says oh, that is subject to this. So here is the fun part. We saw that Zillow was doing it. What do you think we started doing? We said we have got an instant offer program. And the reality is we have an instant offer program. So if you visit Sold in St. George dot com, Sold in St. George dot com, you will see a big old button that says instant offer.
Jesse: Right.
Jeremy: Now here is one of the challenges. So Zillow is doing this. Who else is doing that? IBuyer?
Jesse: IBuyer. Purple Door.
Jeremy: Purple door. So here is what is happening. They are coming in. They are making an offer, and then they are charging a buyer’s premium of some kind which is like 3-5% of the purchase price. Right? There is no commission, air quotes.
Jesse: Yep.
Jeremy: Good morning all of our Facebook Live viewers. If you have got questions, we want you to ask them. But they are going in, hey, Andy you should vote for us for Best of Southern Utah. Right there. It is right on your screen. Just two clicks, man. Two clicks.
Andy: I have got to do it now. Yep.
Jeremy: So I was just watching it with Best of Southern Utah. So they come in and they make an offer sight unseen, which is subject to them actually inspecting it and deciding if they want to buy it. And then they charge this strange fee, this strange buyer premium fee, which is just wacked out. Right? So the next thing you know you think are getting 400, but the reality is you are actually getting 360. Let’s flip this on its head. We can bring a local investor in right now from St. George who will make an offer to buy your property, close in seven days, cash, with no strange strings attached. Really simple. They will buy your home. It will sell for blank. You will get blank if they buy it cash. Or we can put it on the market, distribute this thing to every single real estate agent on the planet. Zillow dot com included, smile and a wink. Trulia dot com. Homes dot com. Realtor dot com, all these websites, and we can sell it at market. By they way, in most cases, you will get more selling your home at market. But here is what they do on the Zillow offer ad. They show this dad in the kitchen, and he is really having a good time. He is making pancakes. And then you see he is trying to make a shaped pancake, and it says, excuse me, making unicorn pancakes is hard. And the music plays. But you know what is easy? Selling your home. And he is sitting there and bing, bing, bing, bing. His phone bings, and he is in his apron and he is talking to his child and he looks over and it says you have an offer from Zillow. 365. He goes oh. I hope our listeners can see. Do you see the face? It is the raised eyebrow look. Like hmmm, well that is interesting. Let me finish making these pancakes. So easy. Like hey, just pack up your belongings and they will be here tomorrow. But that is not real. That is actually not real. You have to understand that. So we want to go straight to our consumers here in Washington County and say look, if you want an instant offer, we will make you an instant offer.
Jesse: Right.
Jeremy: Literally right now. We have an investment group who will purchase your home cash. Let’s talk pros and cons. So the pros are you sell your home in seven days, if you want to sell it in seven days. You could sell it in 45 or 90.
Jesse: Right.
Jeremy: The investors are real flexible that way. But if you wanted to be out in seven days, if all the boxes are checked and things work out, then it could close in seven days cash. It is a cash deal. It is not contingent on an appraisal. It is not contingent on a loan. Right? And you do not have to prepare. You do not have to stage. You do not have to make beds. All those things. Now here is the flip side. That is what Zillow is trying to get people to do. Hey, look how easy it is. But see the difference is we are not going to pitch to you that it is just so much easier that you should do it. No, no, no, no.
Jesse: Well, in any part of our life, convenience comes with a cost. It always will.
Jeremy: Right. Right.
Jesse: It always will.
Jeremy: Right. So we would not propose to you that you should be doing this because it is easy. You should be doing this because for some reason it makes sense that you have got to get out of there fast.
Jesse: Yeah.
Jeremy: Otherwise, we will take your home. We will put it on the market. You will have to do some work. We will require you to do some work because you are going to say to me I want the most money for my home.
Jesse: Yep.
Jeremy: And I am going to say well, if you want the most money, then you have to do the most prep work –
Jesse: Yes.
Jeremy: — which we are going to guide you. We are going to hold your hand. We are going to walk you down the road. We are going to schedule all the showings with you. Yeah, you are going to need to make the beds. You are going to need to close the toilet lid. All that kind of jazz. If you have got dirty clothes on the floor, you had better just kick them under the bed. I do not know what to tell you. Those things are going to have to happen, and it is going to be a nightmare in some ways, but you probably will not be sad if you get the money at closing.
Jesse: Right.
Jeremy: So just be aware. Just be aware that these groups, Zillow is a big, massive entity. It is a behemoth, and they are a company that is actually running no profit. So it is one of these strange Wall Street things. They are running no profit, but they are multi-billion-dollar corporation, and their goal is to set themselves up as kind of the replacement to the real estate agent, and eventually just have the whole entire thing. So look, people are going to go there. They are going to go to Zillow dot com, look for a Zestimate. Here is what I would say. Go get your Zestimate at Zillow dot com, and then call us and say I got a Zestimate. Can you please produce a courtesy, right, free of charge market analysis for my property, and let me know what you believe it will sell for on the open market? And then we do that and then you have the real information. Then you can compare the Zillow Zestimate against our information. And if you are paying close attention you will notice that they skipped your basement. Right? So kind of crazy. I just think that people need to be aware of that. That we are not trying to get people off of there. They are on there. Good grief.
Jesse: Well, you are never going to get them off of there.
Jeremy: 20% of our clients came to us last year from Zillow. Right? Wasn’t it 20%?
Jesse: Yes.
Jeremy: 20% of our clients actually contact us through Zillow. Hey, it is what it is. But buyer beware. Right. This instant offer, the Zillow dot com slash offers thing, you are dealing with a corporation. You could just be dealing with someone right here and get all of your options. Right? And of course, their goal is it seems so easy. You do not even call an agent. You just go oh man, this seems easy. I was making unicorn pancakes for my child, and I got an offer on my phone. I should just get out of here. Right? The rest, as they say, is history. If you would like to see what we are doing with Instant Offers, visit Sold in St. George dot com slash or just Sold in St. George dot com. The Instant Offer button will hit you in the face. Have you voted for Best of Southern Utah today, Jesse?
Jesse: Not yet.
Jeremy: Andy did.
Andy: I just did.
Jesse: Because you have to wait 24 hours.
Jeremy: No, you do not have to wait 24 hours.
Jesse: Oh yeah. It will not let me do it unless it is the next 24 hours.
Jeremy: Oh no.
Andy: So he voted yesterday is what he is saying.
Jeremy: It should not be 24 hours. It should just be 12:01am. I do not know.
Jesse: Oh really?
Jeremy: Yeah.
Jesse: Because the other day it would not let me because I had just voted at like ten o’clock the night before.
Jeremy: Oh just come back once per day. That is what they tell me. I just voted. Folks, visit, if you visit the Best of Southern Utah, we are, over at the Larkin Group, our real estate team, we are aiming to win that title. Some of you saw a Facebook video I posted last week. It was me with my high school yearbook.
Jesse: I was telling my wife this morning that, because she asked me if I could do a Miami Vice pose, and I told her, you know I was voted the most likely to be the next Don Johnson.
Jeremy: Dude. I so believe it.
Jesse: That is the only title I ever got.
Jeremy: I so believe it. At every level I believe it. But if you visit Sold in St. George dot com, we made it easy. You can vote for us right through that page, and yes, cast a vote. It is Jeremy Larkin for Best Realtor and Larkin Group for Best Real Estate team. I have the very best people in Washington County working with me, and there you have it. Whose phone is buzzing?
Jesse: Yours probably.
Jeremy: I do not know. That is kind of weird. Some thing is buzzing. It is in my ears.
Andy: Not mine.
Jeremy: Man, this is weird. All right, Jesse. Should we talk about a couple other questions that these guys are, that these folks out there are asking?
Jesse: We can, but I am going to depend on you because my laptop died.
Jeremy: Did it die?
Jesse: Yeah.
Jeremy: Oh man. So this is going to be really good. So we talked about answering the best questions, the questions here in Southern Utah that people have been asking. These questions from our 2019 Parade of Homes survey. And many of you will remember that we created a survey and asked folks questions about the market and just to find out what they were doing and then we turned around and we had about 140 people respond to our survey, maybe 150. Okay, what about, Jesse, are there good options for young couples who just graduated college? I am going to qualify that because it does not have to be just graduated college, but let’s call it young couples, just graduated college. Let’s guess that these are couples that are in their like 22-25 years old range. Okay? Are there good options? Is buying a house a good idea at this stage in life? What do you think?
Jesse: I think it is because you can step into a starter home and start building equity, start building your life, and it will help you think differently. It really does. The home ownership is almost like the next step in life. It is like having a kid. It just changes your life.
Jeremy: Is there any reason, and we will back into this, are there good options? Is there any reason that they wouldn’t buy a home at this stage in their life? What would be good reasons to not purchase a home at early 20’s, graduated from college?
Jesse: If you are not really sure you are going to be here say two years –
Jeremy: Yes.
Jesse: — then it does not make sense at all because if you end up having to sell that you will end up possibly paying capital gains and that could hurt you.
Jeremy: Bingo. Yeah. Absolutely, so a lot of these couples, they are not permanent here.
Jesse: It just depends on what are you doing.
Jeremy: Yeah, at least two years, and Jesse says at least two years because if you stay in a home, sell a home less than 24 months after you purchase it, you are going to be paying what is called capital gains taxes.
Jesse: And there is no way around that.
Jeremy: No. There is no way around it at all. But let’s take this a step further. How long should people really be in their home? Like if we want to wait out a real estate cycle, what are you thinking?
Jesse: Five to ten years.
Jeremy: Okay.
Jesse: Because every cycle for the last what, 70 years has been up and down every ten years. Five up, five down.
Jeremy: Absolutely.
Jesse: Five up, five down.
Jeremy: Absolutely. There is no question. Right?
Jesse: But let’s kind of hit on that. So with that said, we are probably in the height of a market, and does that really mean that they wait? I do not know that it does. If it makes sense to buy a home.
Jeremy: Okay, let’s pretend that I am young couple. Okay?
Jesse: Okay.
Jeremy: Just graduated from college. Maybe have a baby or two, maybe do not have any.
Jesse: Okay.
Jeremy: I buy a home, but there is a concern that in the next two to three years that my wife, let’s say, or if somebody says their husband, one of us might get a nursing position in Salt Lake City, and we might leave.
Jesse: Okay.
Jeremy: But we really want to own a home right now. So what is going to happen when we go to leave? Do we have to sell it?
Jesse: No, you could actually make sure that you buy one where you could possibly rent it.
Jeremy: He is following my cues real nice.
Jesse: Okay, so in that case, and as long as you have lived in a home the last two of five years, it is not technically an investment property –
Jeremy: Right.
Jesse: — so you could still wait out a market and sell it say five years from now and be safe.
Jeremy: So you are saying my monthly mortgage payment is $1400 a month. I could theoretically rent that home for $1400 a month. Or fifteen.
Jesse: You would have to check on that, but possibly yes.
Jeremy: You would want to do some research.
Jesse: You can either definitely offset the rent or get all of the mortgage paid with the rent. That is a good possibility, but I would make sure that you prepare, think about that first.
Jeremy: Right.
Jesse: Because you do not want to have to have the money in the bank or –
Jeremy: What are options though? For these young people, what are the options? And for my team out there who are watching and listening, what are the options?
Jesse: There are plenty of options, but you really have to do your homework and you have to be quick on the draw. Because a young couple is probably going to be under $300,000.
Jeremy: And maybe under?
Jesse: Under 250, which is really a tough market still even though we are getting more inventory. My biased opinion is you have to have a good agent that has feet on the ground for you and is really looking because the homes that are the best value that are the right homes are selling so fast you do not see them.
Jeremy: They are gone.
Jesse: Yeah.
Jeremy: They are gone. So a couple of things. So there are some options.
Jesse: There are.
Jeremy: But, Jesse, I can only afford a $2500 car. There are no options for me. There are.
Jesse: There are.
Jeremy: It is just I had better set my expectations –
Jesse: Yeah, look where the expectations are.
Jeremy: And this is the same thing. And where I am going with this, right, Andy, do you have adult children? How old is your youngest?
Andy: My youngest is 15. My oldest is 27.
Jeremy: Are they homeowners?
Andy: My oldest is, yes.
Jeremy: The reason I ask you that is you have kids that you could counsel. I do not quite have a child buying a home yet. But do you think that the expectations of young people today, because of the wealth that has been enjoyed the last 30 years are different than the young people 30 years ago?
Andy: Yeah, I think so. We did not dream of buying a home at 21 years old. There is no way.
Jeremy: And the reason I say this is by the way there has been such a beating up of millennials and Gen Y and this, that, and the other. These kids are terrible. Here is the deal. We are all just a product of our upbringing. So these kids do not even know what it was like because we did not have the internet. Well, of course, they do not know. There is no reason to assault people because they grew up when they did. Just the reality is that there is so much wealth right now. Right? And when you were 21 years old, it was like man, if people could get into a 1000 square foot, two-bedroom, no bath, young and married, especially my parents, who are older, who are 78, for them to own an 800-square-foot something was like a dream.
Jesse: Right.
Jeremy: Yet what is the perception now, Jesse? I drive down there to Little Valley and what do I want?
Jesse: You want that $400,000 house.
Jeremy: I want a $400,000 home.
Jesse: And also the perception a lot of times is I will just wait for the market to come back down.
Jeremy: Yeah. Yeah.
Jesse: But what they do not think about is when that market comes back down, it most likely will be interest-rate driven. That $400,000 house that probably is not going to go down by $100,000.
Jeremy: No.
Jesse: We are not going to see a crash.
Jeremy: That is not happening right now.
Jesse: But that $375,000 house is now more like a $425,000 house because the interest rate has just went up.
Jeremy: Yeah.
Jesse: So have you shot yourself in the foot by not really thinking that through?
Jeremy: Yes.
Jesse: I think that is what we are going to see.
Jeremy: Keith asked a question. Let’s just segue there. Are home prices up right now in St. George or has higher interest rates stopped any increase in prices? Well
Jesse: They are still up.
Jeremy: Yeah, they are still up. They are still up. Are they going up? No. They are not currently going up in Washington County. Maybe in a pocket here or there. I just listed a Coral Springs condo, which is going to be kind of interesting. We will be listing it for $309,900.
Jesse: Nice.
Jeremy: Interestingly, there are three that just closed at 290, 295, and there are two under contract above 300.
Jesse: That is crazy because you know three years ago when we talked to him –
Jeremy: Yes.
Jesse: — that was 250.
Jeremy: 250.
Jesse: Holy moly.
Jeremy: So here is a pocket and the pocket is this. They are selling homes, like they are vacation rentals. Remember we talked about nightly, weekly rentals. They can be a vacation rental. Well, they are selling Coral Springs for say $300,000, 310. Across the street, literally across the street, Cole West is building new vacation rentals for 500.
Jesse: Four to five hundred. Yeah.
Jeremy: So, what you have is a little micro-pocket there where the buyers look at them and go oh, well, gosh, I would love to buy a $500,000 vacation rental and then they would walk across the street and say I guess I will buy one that was built in 2007.
Jesse: Yeah.
Jeremy: And 2007, it is the big rock fireplaces and the dark trim and the
Jesse: They are pretty cool.
Jeremy: — dark doors. Yeah, they are really cool. It is just a different style, and so some folks just say I will just take that style and I will paint it. Right? So folks, if you have not done so yet, we would ask please if you will vote for us. Sold in St. George dot com and cast your vote. That will pop up. Vote for the Larkin Group. Jeremy Larkin. Best in Southern Utah. Jesse, thanks for being on and handling things as we were having techno difficulties.
Jesse: Sorry for the technical difficulties.
Jeremy: We got it, man. We are off to the races. Have a great week.
Andy: Thanks, guys.

 

 

Is St. George Over-building Vacation Rentals? Real Estate Radio w/guests Ty & Pam Isham (St. George Real Estate Radio Show)

Today, Jeremy Larkin brings guests Ty and Pam Isham of My2ndHomeVacay.com to talk about the Vacation Rental boom in Southern Utah! The Ishams manage dozens of nightly/weekly rentals, interface with the owners and of course, would-be buyers of these properties. Tons of amazing info on the market, enjoy!

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com.

Andy: 8:35 on News Radio 94.9, 890 KDXU. Every Thursday we get a little taste of St. George Real Estate. It is the St. George Real Estate Morning Drive with Jeremy Larkin. Jeremy, take it away.
Jeremy: Good morning, ladies and gentlemen, ladies and germs. Ladies and germs, right, Tai? Tai is in the background. He can yell. Hey, I have got some fun guests here today by the way. I like to go with the lady’s name first, which is Pam.
Pam: Hi, good morning.
Jeremy: Yeah, and Tai Eisham. And on the Facebook Live you are going to like this because we always put a title. And I said this morning, let me pull it up, guys. If you are not watching Facebook Live, you had better be. So you can listen to this show 94.9 FM, 890 AM, Facebook Live, YouTube Live, shoot, man, I think we might even have just the government downloading it straight into your brain. When we figure that out. I said Pam –
Jesse: If you pay them enough money, they might.
Jeremy: Yeah, I said how cool is that and a glass of milk?
Pam: And a glass of milk.
Jeremy: Yeah, like how cool is that? So we are going to have Pam on momentarily after we listen to ourselves talk. Right, Jesse?
Jesse: You love to listen to yourself talk, that is for sure.
Jeremy: That is why I started a radio show. Let me go ahead and do something. Guys, I am going to do something live on the air. I am going to encourage you to do the same. I am going over to, I am letting my fingers do the walking. Who remembers that? Who remembers what company that was? It was one of the phone companies, but which one was it?
Jesse: I cannot remember.
Jeremy: Let your fingers do the walking?
Pam: AT&T?
Jeremy: Was it?
Pam: Was it?
Jesse: I cannot remember.
Jeremy: Okay. Let your fingers, Yellow Pages. It is just Yellow Pages. Let your fingers do the walking.
Jesse: I was going to say that but then you said phone company, and I am like phone company, they are not a phone company.
Jeremy: Yeah, yeah. Hey, Jess, kick that door because we have got guys, I think, they are having a drunken party down at Devin Dixon’s office on the ESPN radio right now, which is really early for those guys to start drinking. Right? 8:37. Thank you. Guys, visit Sold in St. George dot com. Jesse, will you tell them what you are doing by the way?
Jesse: This is so exciting.
Jeremy: I am going to cast my own vote for myself right now, for us.
Jesse: We are going to do that. So we actually have been nominated for the Best of Southern Utah, the Larkin Group. Actually twofold, Jeremy and the Larkin Group.
Jeremy: Best Realtor and Best Real Estate Team.
Jesse: So we would love your help in that. Jeremy posted that thing the other day that said the last time I won anything was in high school.
Jeremy: It was the Class of 1993 yearbook, and I hope, I hope some of the people that I care about are watching right now. It was when I won Biggest Comedian for the Preference, ’93 Preference. Okay? No, Andy, it is real. Go to Facebook, man.
Jesse: He did. In all seriousness, if you know who the Larkin Group is and you know who we are, we are all about trying to do the right thing and be the best that we can be. So if you have done business with us or if you love what we deliver and the value that we give, we would love the opportunity to win that contest.
Jeremy: Thank you, man, for that description. So you just visit Sold in St. George dot com and the way that we rigged out website, it is so fun. It pops right in front of you and says vote here. And here is the cool part. Two clicks. You click it opens. You click, you voted. There is no email. No phone. No nothing. It is one of the most killer platforms. I did not build it. Another media company in town did, a competitor. So please vote for us over at Sold in St. George, Sold in St. George dot com. You can actually vote every day until March 15th. I know we will not count on that for most of our listeners, will we now? Will we now? Thank you, Robert for posting that. Morning to our listeners, viewers, watchers. I have always wanted to start a watch party. Can we try that sometime? Let’s start a watch party.
Jesse: A watch party?
Jeremy: I do not know.
Jesse: Is that on Facebook?
Jeremy: It is on Facebook. Guys, momentarily, we are going to have Pam Eisham on, and Pam and Tai, they manage short-term weekly rentals. Some of you might have heard on Tuesday I landed here with Andy in the, whew he is giving me the thumbs up, I landed very last minute on the Open Mic Show and we talked about vacation rentals and short-term rentals. I wanted to give you a teaser, okay? Because yesterday she asked so responsibly what questions, and here are the questions I asked her that we are going to talk about today. Thirty seconds, what do you do? In one minute or less, how did you get into the business? How many units, vacation rentals do you manage? Who are your clients? Who are the people who buy vacation rentals and need them managed? What kind of income do they bring? How much money can they make? What are the biggest concerns owners of vacation rentals have? What does it cost to have it managed? What is the biggest challenge you face managing short-term rentals? How does someone contact you? And what is your general opinion of the short-term market? This is like, and I have said this on the air, this is the news at 10:01. They go hey, stay tuned for the most important story, which will be on at 10:29PM at the very end of the broadcast. But we will not go that long. So momentarily we will have Pam on, but I am Jeremy Larkin, host of the St. George Real Estate Morning Drive. I have got Jesse Poll here, who has really become, he has become my co-host.
Jesse: That is right.
Jeremy: Andy Griffin, we took his microphone and headset away as part of a punishment. He is in a timeout this morning. He has got his headset. We just took his microphone away. And if you will please cast your vote over at Sold in St. George dot com for the Best of Southern Utah. And I would be curious, see, I am trying to track, do you know what I did. I created a Google document yesterday with all of my favorites companies that I am voting for, and I am actually voting for daily. Literally. I have my own list.
Jesse: So where do you go to find the whole list of all the companies in the different categories?
Jeremy: So, this is perfect. So if you want to go over to Best of Southern Utah dot com. Best of Southern Utah dot com.
Jesse: Okay.
Jeremy: And you can vote. My gosh, you can vote for just about anything. I think there were 900 companies nominated in I do not know how many categories.
Jesse: (Indiscernible)
Jeremy: I do not know.
Jesse: I am going to go look at that.
Jeremy: Yeah. Let’s talk about short-term rentals.
Pam: Talk about short-term rentals.
Jeremy: Let’s do it. So I have got Pam here. She is lovely. I have Tai just lurking in the shadows, probably like he has done most of their marriage. I do not know. Is this a metaphor? Is this a metaphor? He is back there. He is sckulking around. I love it. I love that he is in the studio. I have Pam Eishman. And Pam and Tia are actually past clients of ours –
Pam: Yeah.
Jeremy: — that we have worked with in the real estate world. So thank you for, I always say, helping us feed our families because literally you did and you do and you guys have referred us business, and we are working on referring you business now.
Pam: Yep.
Jeremy: Which is going to be awesome. So, give us a 30-second synopsis like we talked about earlier. What is your company and what do you guys do?
Pam: Yeah, essentially what is our company? So we are vacation rental management company. But then I thought hard about what do we do, right? So what we do is we provide great experiences for our owners and our guests. It is our ultimate goal that people build memories when they are with us. Right?
Jeremy: Absolutely.
Pam: People come to our area for many things, and what we want them to do is be able to come and put their feet up when they come into one of our units and feel like they have just come home. It is their second home. It is a place to kick back and have all those comforts.
Jeremy: It really is. When I was on Tuesday, I actually relistened to the show. Andy, it was funny. Yesterday, I (indiscernible) doing something else, and I was even giving, getting a kick out of myself. I said I am user. Dot, dot, dot.
Pam: I heard that.
Jeremy: So that is why I do it.
Pam: Right.
Jeremy: I saw the funniest story the other day. It was a Facebook story. A guy, I do not know how it got in the news, but KSL had it on their Facebook feed, and the guy is looking at long-term retirement housing. Like when Mom and Dad get too old and they put them in, not a care facility, but more like –
Pam: Assisted living.
Jeremy: — like assisted living. And he was talking about the cost, and this guy had written blog about it. A blog or a Facebook post, and he said here is the deal. It is X number of dollars per day to stay at one of those things. He said I am actually going to go to the local Hilton, whatever it was, and his city was $59 a day, and it had free breakfast and they have a pool and everything. And he literally had said that is where I am going to retire to. And it is comical because there is no reason he cannot do that. But what it brought up is for me a hotel is not like a condo, a home, a vacation rental.
Pam: No, not at all.
Jeremy: It just feels like a hotel.
Pam: Right.
Jeremy: Like they are going to come in and change the sheets in the morning. I guess that is fine. I hope they change them. There are a lot of horror stories about that. Isn’t there, Jesse? So home away from home.
Pam: Home away from home. And I have actually had older people talk to me about that very thing. Like maybe they want to travel. They want to give up their home, so they just vacation home hop. A month here, a month there.
Jeremy: Yeah, have you guys ever, and I mentioned it yesterday, Jesse. Would you raise your hand? No. Have you ever checked out at all what we talked about Tuesday which is the home swapping?
Pam: Yes.
Jeremy: Yeah, that is kind of cool.
Pam: Yeah, I actually have had a couple of owners talk to me about that. If somebody is interested, hey, I would swap.
Jeremy: I want to do it. I want to do it. I really am going to do it.
Pam: Yeah.
Jeremy: So how did you get in this business?
Pam: Actually, I started in hospitality way back when I was in college. Having that need to have a little extra money, so I actually worked at the local Town & Country in Cedar City as a housekeeper, and then when we moved here, Tai was actually in the car business selling cars for one of the local dealerships here. And kind of half stay-at-home mom at the time, an opportunity came up just around the corner at Timeshare. So I said why not? So I started there, kind of lower in the ranks.
Jeremy: Where were you at? Like Worldmark or something?
Pam: Yep. Worked my way up through the company and worked in Housekeeping, became the Assistant Resort Manager and then into the General Manager position.
Jeremy: So it is in your blood.
Pam: It is in my blood. I was raised in the restaurant business.
Jeremy: Here is the thing. She is good on radio, isn’t she?
Jesse: Yep.
Jeremy: She was nervous about it. I just want to tell you that.
Pam: Yeah, I was.
Jeremy: She is very comfortable. Very comfortable. But what I love about this is you actually do have experience in this realm. Right?
Pam: Right. It is a big difference because of what a guest expects when they stay at a place, even though it is not a hotel, they a lot of times expect the same type of treatment that they would get at a hotel, so having that hospitality background is something that we bring to that so that we can create those great experiences for people.
Jesse: That is really interesting because how many of other property management companies treat it like a long-term rental and it is just not.
Jeremy: It is not.
Pam: It is not at all.
Jeremy: How many? I do not know, but I guess what you are asking. Right?
Jesse: Right. That is interesting because that is a lot different message than I have heard before.
Jeremy: Yeah. Have you done a vacation rental? Have you stayed in one?
Jesse: No. But just talking to different people. We do not, I was going to say you want to make some really good money? How to package for people that want room service to come in.
Pam: Yeah.
Jesse: The reason we do not typically stay at a nightly rental is because my wife wants them to come make the bed. And I do not want to do it.
Jeremy: When you said room service, I thought you meant you wanted the $18 cheesecake.
Jesse: Well, that too.
Pam: That is what I thought he wanted, too.
Jeremy: You mean changing the linens. Okay.
Jesse: Yeah.
Pam: We actually offer that. For a price, people can actually schedule that in advance. We will actually even go get their groceries for them.
Jesse: There you go. So there you go.
Pam: Have them set up.
Jeremy: There is so much.
Jesse: I did not know that. I was not a read-in.
Pam; Yeah, we can do that.
Jeremy: Yeah, why don’t you stop being such a, what is the word here?
Jesse: ESP?
Jeremy: Man, isn’t it funny that my brain just fried out.
Jesse: Once in a lifetime.
Jeremy: Why don’t you actually practice what we are talking about and actually go stay in a vacation rental? You are such a hypocrite. That is the word.
Jesse: I stayed in one in Boston.
Jeremy: Did you really?
Jesse: Yeah.
Jeremy: That is cool.
Jesse: I have stayed in them.
Jeremy: Okay. You did.
Jesse: And then we come home, and my wife says man, the bed is not made.
Jeremy: I know. I know. She is like this just feels like home.
Jesse: Yeah.
Pam: It is awesome.
Jeremy: So, Pam, kind of segueing along here, your company name is?
Pam: My Second Home.
Jeremy: My Second Home. Bingo. So you guys now manage, I said 30 on the Facebook feed. I do not know. What is it?
Pam: Yeah, we are at 26 right now and quickly growing because we are involved in a couple projects here in town. So everybody kind of knows that new area out there in Ivins where you have got Arcadia and Paradise. Well, we are actually one of the management companies managing for Ocotillo Springs, just behind those.
Jeremy: I know exactly.
Pam: We have got units selling and opening up so there will be a lot of those to manage here soon.
Jeremy: So here is what I want folks to do here this morning. By the way, I was just looking at our Facebook feed. If you have got questions or comments and you are watching this Facebook Live, please do ask.
Pam: Yeah, absolutely.
Jeremy: We would love it and that would be remarkable. So you have got 26 units and what does, if I am an owner and I want to have a vacation rental, but I wanted it managed because I do not want to fiddle with it, what does someone pay? Like what is general standard?
Pam: Yeah, standard is pretty much in our area is 30%, but it is pretty much across the board. If you look around the United States, when I have looked at other areas, it is 30%.
Jeremy: Yeah.
Pam: Some are a little bit higher than that, but I feel that that is fair.
Jeremy: Yeah, and that is what I have heard. I have heard 25-35 across the (indiscernible) –
Pam: And that is off of net nightly.
Jeremy: Yeah, net nightly. If I have, okay, in a year, what is a typical owner that you have here bringing in annually? I am going to narrow it down momentarily.
Pam: Yeah, annually, it could be, it just depends upon where the unit is, too, and what the nightly rate is for it.
Jeremy: Okay, let’s talk about somebody that has got a Las Palmas unit.
Pam: Okay. So Las Palmas unit, they could be bringing in anywhere from $15-25,000 in a year.
Jeremy: Annually. Okay. What is the most expensive property that you manage?
Pam: Most expensive property that we manage currently is at Estancia.
Jeremy: Okay, so what would they bring in in a year?
Pam: Actually, close to the same.
Jeremy: Isn’t that funny?
Pam: Because here is the thing. Because here is what people want. They want bang for their buck. Right?
Jeremy: Yeah.
Pam: So, when you tend to have a property that is higher-priced, sometimes maybe it does not get quite the occupancy that one does that is more fairly priced.
Jeremy: So Estancia, really quick. Describe the Estancia unit compared to the Las Palmas unit for the listener.
Pam: Okay, so basically the Estancia unit, the most expensive one that we have would be considered like a Presidential suite. So it is like a four-bedroom, four-bath unit, top floor unit, over looks the pools. Right? And one of the neat things about this property compared to some others that we do is we do rent it as a three, a four or a one, which is like a hotel room. We have a lockout on it. So we can actually divide the unit up. Our biggest units over at like Las Palmas, they are actually equally as nice. We have second and third floor units that are three bedrooms, three baths. Beautiful units with lots of square footage. What would you say, Tai? About 1500-2000 in one of those? Yeah.
Jeremy: Yeah, that sounds right.
Pam: Yeah.
Jeremy: Marlene asked a question. What is a normal occupancy rate for Arcadia, Paradise, and Ocotillo? Like for annually?
Pam: For annually, I am going to say it is going to be between, because they are still fairly new properties, you are probably talking between 30 and 50% occupancy in those.
Jeremy: I heard, and you guys know Kendall, and I was commenting about Kendall on Tuesday because he was texting me while we were on the air. So Kendall has done a lot of vacation rentals, and we are in this conversation, by the way, of creation versus competition. So, hey we are talking about their competitor. But he is a great guy. These are great people. He was commenting that at some of those places that you are seeing about 60% kind of max. But you have not seen anyone with more than probably 50-60%.
Pam: No, absolutely not. Not with as many rentals as we have in the area right now.
Jeremy: Yeah. There are so many. Are there, and you get to be opinionated here –
Pam: Okay.
Jeremy: — and well remember the reason I say that is because I think people are afraid –
Pam: Right.
Jeremy: — and I have gotten quite opinionated on this radio show.
Pam: You have.
Jeremy: It is fun. It is fun. I am not quite Rush Limbaugh, but do you think there are too many units being built, vacation rentals being built and zoned?
Pam: I think the zoning is a great thing. I think that we probably have too many being built right now because the problem is with the amount that are being built, they are still a very costly piece of property compared to what an average home is. Right?
Jeremy: Yeah, that is what you said, Jesse, when you commented.
Pam: Except for what that ends up doing is driving down the nightly rate because we all compete. Every single company here is going to tell you that they do like market analysis, right, and we are watching what the prices are. Well, you have got to compete with your competitors and where people want to stay. So that drives down the price, the nightly price.
Jeremy: Yeah, and I have been, strongly think that we are building too many, and I am, remember the litmus test is the notice, did you notice test, and did you notice when you drive around town that everywhere you look there is another billboard or 8×8 sign in the ground that says we are building new units that are nightly, weekly zone.
Pam: I heard you say that the other day, and I see them too. We drive around to see them.
Jeremy: What is going on here?
Jesse: The opposing opinion about that would be is that the City just trying to offset all of the private owners trying to do the nightly rental in places that are not zoned. They either open it up to the City or keep it where they can control it.
Jeremy: Right.
Jesse: They are going to be here either way.
Pam: Correct.
Jeremy: Correct. We have 1000 new hotel rooms right now. So 500 just this last year and another 500 coming online. That is a lot of hotel rooms.
Jesse: That is.
Jeremy: This becomes challenging. One of the strongest opinions that I have is I do not really advise for most locals that they are purchasing a vacation rental in St. George. If I were purchasing a vacation rental, I would be purchasing it in Park City, Coeur d’Alene, Idaho. In a place that I want to go. Right? And I want to spend some time in, and then allow these tenants to offset my costs at 30-50% per year.
Pam: Okay.
Jeremy: That is just me.
Pam: So here is –
Jeremy: I do not know.
Pam: — here are two little tidbits for you.
Jeremy: Yeah, go.
Pam: So first one is even though we have that many hotels already, and I know we are building so we may reach that cap to where all of a sudden, we have got too many vacation rentals, too many hotels. But even right now, President’s Day weekend, and you can talk to other managers and they will tell you the same thing because we call each other to help each other. Our phones are ringing off the hook. There is no place to stay.
Jeremy: There is no room at the inn.
Pam: There is no room at the inn because we have got sporting events going on. We have got Parade of Homes going on, and –
Jesse: That is true.
Pam: — we are just packed to the gills. You heard people on the radio complain about the traffic issues and stuff.
Jeremy: Oh, it is, yeah.
Pam: And then the other end of it is as far as locals owning, now I have had several people come to me and I have actually had people that have purchased, and you can talk to other realtors about this as well that are kind of into selling the vacation rentals, but what is really, really interesting is that there are locals that want them. Why do they want them? This is a retirement community.
Jeremy: Yeah.
Pam: So now all of a sudden I find myself in a really small home. Our home is not very big, and we do not want to get bigger because our kids are grown. Now, all of a sudden, the families are growing. I have got three children, five grandchildren, ten children, everybody comes for Thanksgiving –
Jeremy: Oh, I see this. And you want to invite them in.
Pam: Where do I put them? So they buy one to make a little money, but they also can put the family up there when they have got big holidays or summer or whatever it is.
Jeremy: I do not hate that, and I like this alternative opinion. So here is a question. At 30-50% occupancy, let’s call it 50% occupancy because remember, all of our listeners out here, we have got Pam Eisham with My Second Home and they manage second home vacation rentals, basically, right, short-term rentals. Remember that the rate that you are paying per night is high compared to like a long-term, meaning a long-term lease on a Las Palmas unit is $1400 a month. But per night, it is $150 a night.
Pam: Right.
Jeremy: So could someone cash flow and even make, not just break even, but be profitable at 50% occupancy in their unit here locally?
Pam: Locally, I think if they buy right. They have got to buy in the right place for the right person.
Jeremy: Yeah.
Pam: For example, one of the units in Las Palmas, three bedrooms, three baths sold for like 260-something.
Jeremy: Yeah, it is getting expensive. Paradise Village we talked about. I used Paradise Village for the event posting on Facebook. That stuff is expensive. Pam, who are your owners? Who is an owner? Not by name, but who would be an owner? How much time, Andy? Three minutes. Perfect. Thank you.
Pam: So who would be an owner? So, like you said, a lot of owners are from out of the area. And interestingly enough, a lot of the owners actually are maybe snowbirds themselves, so maybe they want to come for a month or two down here. So they are from Idaho, from Washington, from all over, Oregon, whatever. Right? Northern Utah. We have several from Northern Utah. But, an owner is someone that maybe they want a place to stay themselves or be able to put their kids up, their brothers, their sisters. I have people that do that all the time. Share it with the family, but they want to make a little money on the side, too. Maybe they want to cover their HOA fees or all of their power bills and stuff. They may not always cover their mortgage –
Jeremy: So all of your owners independently wealthy people who just have $500,000 to buy a unit?
Pam: Absolutely not.
Jeremy: Say it with a grin.
Pam: They are people just like us.
Jeremy: The coolest thing about rental properties as we start to wrap this show up, and the coolest part is that, so Jesse, if you have a Roth IRA or a 401K, your employer, if you had a good employer, might match it, but the issue with your Roth IRA is who funds it? Who puts the money in every month?
Jesse: I do.
Jeremy: You do. Right? The cool thing about investment properties is that somebody else pays for it every month.
Pam: Correct.
Jeremy: That is the zinger. By the way, you might, a listener out there might be somebody a dual-income family and he runs a Jiffy Lube and she is a teacher at Heritage Elementary, those folks would be incredible investors.
Pam: Right.
Jeremy: And you know what is funny? Those people –
Pam: And there are a lot of them out there.
Jeremy: And a lot of them, there are, and yet a lot of them do not think of themselves as investors.
Pam: Right.
Jeremy: It is like whoa, go get a property. Pam Eisham, thank you. So how do people reach you? Tell us how they contact you.
Pam: You can reach us at My Second Home Vacay dot com.
Jeremy: My Second Home Vacay dot com.
Pam: Vacay dot com. And you can also reach us at 435-313-5143. Glad to answer any questions.
Jeremy: Okay. I am going to give it again. 435-313
Pam: 313-5143.
Jeremy: Yep, 313-5143. Guys, thank you so much for listening. Thank you for being on the air.
Pam: Absolutely.
Jesse: Thank you.
Jeremy: You are amazing.
Pam: Thanks for having me.
Jeremy: We are going to have to have you back, and of course, listeners, thank you. If you have got questions about your own real estate situation, buying a rental, selling a rental, or you want to give us a vote for Best of Southern Utah, visit us at Sold in St. George dot com. Sold in St. George dot com. Over and out.

 

What Realtors & Lender actually get paid for! Guests Chantry Abbott and Michelle Evans (St. George Real Estate Radio Show)

 

If you prefer to view and comment on Facebook vs. the YouTube video above, click here: Facebook Live.

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com. 

Andy: News radio 94.9, 890 KDXU. Good morning to you. Tell me this guy has the coolest music in the biz right here. It is Jeremy Larkin. I did not even want to turn it down. You have got Jeremy Larkin, St. George Real Estate travel show, and I know Jeremy is trying to get all is tech set up and everything over there. Are you ready, Jeremy?
Jeremy: I loved how you stuttered there. You had a hard time.
Andy: Well, it has been a weird kind of –
Jeremy: I do not know what else to say about it, Andy. Let’s just name the elephant in the room. Right?
Andy: It has been a weird kind of day. You look outside and our red rocks are covered in white snow. I know you had issues this morning with the two-hour delayed start for school.
Jeremy: Yeah, this threw the kids’ schedule off a little bit this morning. No one in this room has a child going to school except for me.
Michelle: That is true.
Jeremy: And there are a whole bunch of us in this room. There are five people in this room. You know what is amazing?
Andy: I have two by the way.
Jeremy: Oh you do have two high schoolers?
Andy: Yes.
Jeremy: Okay. So you do.
Andy: Yes.
Jeremy: That is nice. That is good. So for them, it is cool. They are like I have got to sleep in and I will just drive to school. I have two boys that are going to school at odd hours. So normally the one is going either at 6:55 at the bus stop or he is being delivered at 7:30, and then the other goes at 8:15. So with the radio show and then a meeting at 9:30, I am finagling this kind of thing. It is being finagled as they say.
Andy: That is a good work.
Jeremy: Really, it is. It is being finagled. Today, Andy? Whoops, I dropped my microphone. I am going to invite you to lend that microphone to these guys today because we are going to have three of us on the show today.
Andy: Okay. Okay.
Jeremy: I have got some incredible guests in the studio. Andy Griffin is almost a guest because he is brand new. I have got Chantry Abbot with Guild Mortgage, on the air with us. One of our great friends, incredible home mortgage lender. And I have got, well, why don’t you introduce yourself, Michelle.
Michelle: Hey, Michelle Evans with the Larkin Group. Glad to be here.
Jeremy: I like it.
Michelle: Glad to get here safe and sound in all the slush.
Jeremy: It is kind of slushy out there. It was 33, I think, all night long.
Michelle: Oh perfect. One degree.
Jeremy: And I think that is why school did not get cancelled. So the kids can blame one degree. Because I think at 32 degrees, you would have had some really extra nasty roads and it would have been different. Right?
Michelle: Yeah, I was surprised that they were all right. They are slushy, but it is doable.
Andy: Yeah.
Jeremy: Chant, what do you got over there?
Chantry: See this kid is making a snowman. Kind of cool, right?
Jeremy: Isn’t this amazing?
Chantry: Bluff Street Park.
Jeremy: Yeah, it is absolutely incredible. We are at the Cherry Creek Studios on North Bluff Street, which is on the west side of Bluff, up on a hill. And those of us watching our live feed, we are on Facebook dot com slash Jeremy Larkin. Or we are on YouTube Live which is YouTube dot com slash Go St. George TV. But from here we see everything. Like we see everything.
Michelle: It is a great view.
Jeremy: It is incredible. It is amazing. So we are looking out at Bluff Street Park, and the famed snowstorm of 2013, we could not get up this hill, and last night they were forecasting five inches. I would be shocked if we even got two inches. I do not know.
Michelle: Yeah.
Jeremy: Chantry, what did you get at your house? Maybe an inch?
Chantry: Yeah. But I think there was more in like Santa Clara. I saw some folks this morning that got quite a bit.
Jeremy: Where it is higher.
Chantry: It was pretty hard.
Jeremy: Yeah. I went up to the Ledges last night at 8:30, eight o’clock, maybe to take my kids to a little get together and it was like a full-scale, winter, just a blizzard on the way up to the Ledges. It was incredible. And there was this fog later between here and the Ledges.
Michelle: Yeah.
Jeremy: So then you were going up and then it was snowing and you could not see, and it was wacky. So anyway, gang, look, clearly everyone knows it is snowing outside, and all of our friends on Facebook are going to make sure that we know that. Are they not? Everyone is going to do that today. So we are going to have a fun discussion. I do not know what Jesse has got going on. He is over there. What do you have going on over there? What is that? My phone died? I do not know, man. Who knows? So we are running Facebook Live. We are going to talk today about what realtors and lenders actually get paid for. Is that fair?
Michelle: That sounds good.
Jeremy: So Chantry has been with us for a really long time. How many years? A decade?
Chantry: I remember working with you back when you were starting to take over all the foreclosures. So that was probably –
Jeremy: 2010.
Chantry: So let’s say 2010, 2009 or 10.
Jeremy: 2010.
Chantry: I am tangled with my coat here.
Jeremy: So there you go. I do not know about this phone. So it is funny, guys. We are running a Facebook Live, and for whatever reason, it just died on us. I hope we are still live, but I think we are still going to, we are good to go. We are good to go. So 2009, 2010, you came into our world. Right? And since that time, have you ever been paid a salary to close mortgages?
Chantry: I have not.
Jeremy: Right. Michelle, how long have you been in the real estate business?
Michelle: Going on ten years.
Jeremy: Ten years. Have you ever been paid a salary to sell real estate?
Michelle: Never.
Jeremy: No, so we only get paid, right, gang, when the deal closes. That is the only way to describe it.
Chantry: Yep.
Jeremy: Right. And so Michelle and I were in this discussion I think yesterday talking about this dynamic that folks perceive, so this is the perception. So the perception is like Michelle goes out and shows homes and that is where she is doing the work. So the real work she is doing is showing people homes. Like find me a home. Correct?
Michelle: Right. It is all in the finding.
Jeremy: Yeah, it is in the finding. And the perception of course, is that that is where it is. That is where the pay –
Michelle: The value (indiscernible) –
Jeremy: Where the value is.
Michelle: Yes, to open the door.
Jeremy: It is to open the door, and at the end of the day, let’s all be frank with ourselves. What hourly rate could we pay someone to open doors? Could we pay someone minimum wage?
Michelle: We sure could.
Chantry: Sure.
Jeremy: Yeah, what is minimum wage anymore?
Chantry: Seven-fifty or something. Right?
Jeremy: Yeah, $7.50 a hour. We could theoretically pay someone $7.50 to open doors. And the issue is that for us in the real estate business, the real work, the real work especially if you are buying a home, right, begins when Michelle?
Michelle: When it goes under contract.
Jeremy: Right. So, what do you mean by under contract?
Michelle: Well, and putting it under contract, too. So it is the negotiation of getting it under contract, and particularly in the last few years where it has been a seller’s market, so you have really got to know your stuff to be able to win that contract for your buyer.
Jeremy: Yeah, absolutely. Right? So the work for the real estate agent happens we, like when it goes under contract, and of course, what Michelle is saying is when we get into the negotiation for the contract. Right?
Michelle: Right.
Jeremy: That is the issue. That is the issue.
Michelle: Yes.
Jeremy: You told me a cool story, and Chant, I am going to have you chime in here momentarily. You bought a home here how long ago?
Michelle: Yeah, back in ’05.
Jeremy: Okay, and you were not even an agent at the time.
Michelle: No.
Jeremy: Of course.
Michelle: I was teaching out at Tuacahn High School and I used Will Potter, who is now our competitor.
Jeremy: Yeah.
Michelle: He was great. He did a great job.
Jeremy: Great guy in town.
Michelle: We had three days to find a home. He blocked that out for us. We looked at 32 homes. I just want to say, so sorry, Will. I am just going to apologize publicly for doing that to you.
Jeremy: 32 homes. That is ten a day. That is a lot of homes.
Michelle: Oh my gosh, we ran the guy ragged. And ironically, we went back and bought the very first home that we saw. Anyway, and then I was teaching out at Tuacahn High School and he called me and he said when is your lunch hour? I said well it is from 12-1 or whatever it was, and he said I need to come out and have you sign this addendum. I said well you do not have to do it then. You can do it later or whatever. I had no perception that we have legal confines, legal deadlines that, he said, no, I need to have you sign this by five o’clock. I was like wow. Okay.
Jeremy: Hey, come on, you do not have to do that. It is fine.
Michelle: Like it is okay. I was trying to be so nice to the guy. Clueless. And what is funny is that I had bought four homes prior to that. So I think a lot of times agents think oh well, they have been around the block. They have bought a home or two before. And granted, I was probably not as smart as most about it. But you just do not realize what is the process once it is under contract? And I think that is probably some of the pushback of millennials. Well, I can find a house online.
Jeremy: Correct.
Michelle: And we are like right. That is just getting us into the game.
Chantry: And you probably will find it online right?
Michelle: Yeah.
Chantry: No matter how many –
Jeremy: 95% likelihood, guys.
Chantry: And no matter how much somebody tells you what they want –
Jeremy: 95% likelihood.
Chantry: They know what they want. Right?
Michelle: Yeah.
Chantry: They cannot really relay it. So look online. That is just the beginning. That is the easy part.
Michelle: Yeah, yeah. That is the fun part.
Chantry: Jeremy, when did you get in the business?
Jeremy: 2005.
Chantry: That was probably right after they had the books. Do you remember the books?
Jeremy: The books were obviously previous to my time.
Chantry: Not by far though, right?
Jeremy: I do not think by far.
Chantry: Probably late 90s, early 2000s.
Jeremy: What was the MLS called at that time? The Multiple Listing Service. It was called –
Chantry: I do not know.
Jeremy: Oh, what was it? It was this weird –
Michelle: I do not know.
Chantry: So those you that do not know, was it once a month, once a month the Board of Realtors would print out a book with a page for every single listing that was out there. So if there were 500 listings, there were would be 500 pages that would have property for sale.
Jeremy: Right.
Chantry: There was not an internet so the buyers could not go find the homes. So they really did need to sit down with an agent and flip through this book and try to figure it all this out and which ones were sold and which ones were not.
Michelle: Right.
Chantry: Now with the internet you find a house on the internet.
Michelle: Right.
Chantry: So anyone can do that.
Michelle: And the contract was so much less back then. So it really was, their perception was correct.
Jeremy: Yeah, we have added five more pages of contract paperwork.
Michelle: It really was finding the house. The weight was more on that.
Jeremy: Right.
Michelle: And much less with the contract. Now it has flipped. Now it is reversed.
Jeremy: Well, and let’s understand how buyers, let’s hit that door. These guys are exceptionally loud down the hall, aren’t they? Let’s remember how a buyer finds a home. Right? And so this is really good. If you are a home seller, I hope you will really listen really closely to this today. So what will happen is someone will put their home on the market, and they will be like if I can just broadcast this enough times, if I can just be in everybody’s face long enough, we will find a buyer. Right? But how do buyers, in fact, find the home they want to buy?
Michelle: Almost always online.
Jeremy: But how? When I say how, how does a buyer find a home? Do they go hey, a realtor called me and said they have the home for me?
Michelle: Oh, no never. They are out on the home websites. They are out looking. They are searching themselves. They can do it online.
Chantry: So wouldn’t you say really the only accurate, there are others. Yeah, we talk about Zillow and stuff, but only one that is truly live, real-time accurate is probably the Multiple Listing Service that you have to get by –
Jeremy: Yeah.
Michelle: Primary source. That feeds all those websites.
Chantry: — through a real estate agent.
Jeremy: Yeah, so let’s think about this. Chantry, let’s say that you want to buy a home today. What kind of home would you want to buy? Let’s just have some fun here.
Chantry: If I were to buy a house today?
Jeremy: If you were to buy a house today, what would it be?
Chantry: Let’s buy a million-dollar house in Green Springs.
Jeremy: And what would be a couple basic criteria that you –
Chantry: Really nice swimming pool, maybe a game room in the basement.
Jeremy: Okay.
Chantry: Four or five bedrooms, maybe a big casita. Kind of know we are dreaming. Right?
Jeremy: Okay. No, we are dreaming. Okay. Beautiful. So what you would do, where would you go to start looking?
Chantry: Well, me, knowing what I know, I would call a real estate friend, one of you guys, and say hey, this is what I am looking for. Set me up on a search.
Jeremy: Yeah, so two things that actually happen. Right? Number one, you call an agent and say set me up on a search. Tell me if you find anything. And then number two, you and your wife at eleven o’clock at night would be on a computer –
Chantry: Yep. Michelle said –
Jeremy: — or on an app searching. And you would be like Zillow dot com. Show me every home that is four bedrooms, three bathrooms, 3100 square feet or bigger, in the Green Springs area. I want a pool. It needs to be under a million dollars, and here is what would happen. You would actually burn yourself out looking, obsessing, you would obsess. Let me explain. This is really good. Jesse, just yell. Am I accurate with how buyers search for homes?
Jesse: Oh yeah.
Jeremy: They will drive their agent crazy searching. Hey, I saw this new one. I saw this new one. Did you see you the new one? Hey, what did you do this weekend? Well, actually we know that we are working with you, but we drove around, and we went in 27 open houses because we figured that somehow what we wanted you were not showing to us. But we could not find anything. And then we went to Craigslist and then we went to KSL dot com and we went to Zillow dot com, and then we came back around. They will literally drive themselves sick and they will get to this point of fatigue where they are like I do not even think I can look at another home. So what I always remind sellers is that if your home is a great home priced in a proper way, will buyers find it, yes or no?
Michelle: Absolutely.
Jeremy: Instantaneously.
Michelle: Many times over.
Jeremy: Yeah. So here is the other thing that sellers do not realize. Is it the buyer that is overlooking your home? Probably overlooked it like 30 times. Here is why. They tried KSL. They saw it there. They went to Zillow. They saw it there. They figured maybe realtor dot com would have it. They saw it there. They are getting listings emailed to them from five different agents because bless our hearts, that is what we do. We are consumers. So we go around and we see five different real estate signs. We call all of them, and all the agents being agents the way we are, hey Michelle, thanks for calling. Hey, how about we set you up on a home search. We will send you all the new listings in the morning. Wouldn’t that be great?
Michelle: Oh yeah.
Jeremy: Chantry is smiling because that is exactly what we do. I will just get you what you want in the time you want. Won’t that be great? There is a real estate script. They are getting listings from 5 to 10 agents based on their criteria. Are they seeing the home, yes or no?
Chantry: Absolutely.
Jeremy: They have overlooked your home so many times. Actually, you would be offended at how many times they looked at it and said no. We have seen it. No. Right? So we are having this interesting conversation here today about understanding the consumer’s mindset. Right?
Michelle: Right.
Jeremy: So the consumer’s mindset is number one, from the seller’s perspective, well, maybe there is someone out there who does not know about my home. Trust me, everyone knows about your home that is looking for a home, especially if you hired a good agent.
Michelle: And when they come in for a consultation and we pull up a list of homes that they are interested in and I will say hey, I just want to make sure we vetted the process. Have you seen this one, this one, this one? And not only have they usually seen it, but they have named it. Oh yeah, the big tree home. Oh yeah, the lion house because there is lion statue on it.
Jeremy: They have named every home.
Michelle: They are very familiar. They have seen it multiple times on multiple occasions.
Jeremy: And this is a my reminder I would give to sellers. For people who are selling and trying to find a home, I want you to think about what you are doing. You are doing what I am saying the buyer for your home is doing. You know you have seen all the homes. So the buyers come in. You take them out, Michelle, and for $7.25, $7.50 a hour, no pay per hour, you show them homes. And the real work begins the day that you say oh we found a home.
Michelle: Yeah. We want to make an offer. We do not want to let this one get away. So then we start the negotiations.
Jeremy: What kind of paperwork is required to buy a home right now in the state of Utah?
Michelle: Well, you have got the contract, six-page contract.
Jeremy: Real Estate purchase contract.
Michelle: Right.
Jeremy: A Rep-C.
Michelle: Yeah. Then you have got a buyer-broker agreement so that we have –
Jeremy: With the broker.
Michelle: — a right to represent you in the deal.
Chantry: Six pages does not do it justice. There is no inch that is not used. It is a lot.
Michelle: Yeah, it is a lot.
Jeremy: It is 29 sections, 26 sections.
Chantry: It is not like hey let’s just hand this to a, we have seen horror stories when people try not to use a realtor. It is like let’s just take this contract and fill it out and turn it into a seller. There are so many things in that contract that if they do not know exactly what they are doing, they are going to miss out on something.
Jeremy: Yeah, so it is six-pages. There 26 sections.
Michelle: Yeah.
Chantry: 26 sections, yeah.
Michelle: Yeah, and for example like what loan are you using? What loan are you using? That will determine an additional addendum that is required for that loan.
Jeremy: Okay.
Michelle: Then there is the buyer due diligence checklist that the state requires that. So that is something to warn the buyers hey here is a list of stuff to be sure that you are checking off so that you make sure that you are making the right decision. That has to be included. And then negotiations go back and forth which will add addenda to the contract. It can get pretty –
Jeremy: Addenda.
Michelle: Yeah, did you like that?
Jeremy: You know what is interesting?
Michelle: Not addendums.
Jeremy: How about this? How about this? Section 8.4, additional earnest money. If the Rep-C has not been previously cancelled by the buyer as provided in Sections 8.1, 8.2, or 8.3 as applicable, then no later than the due diligence deadline or the financing appraisal deadline, whichever is later, buyer will or will not deposit additional earnest money. Any additional earnest money deposited, if applicable, and sometimes referred to herein as the deposits, that the earnest money deposit or deposits, if applicable, shall be credited toward the purchase price at closing. Did anyone hear anything I just said?
Chantry: It is very attorney-speak.
Jeremy: That is one stupid paragraph —
Michelle: Yeah. Legalese.
Jeremy: — of 26 sections of a contract. Right?
Chantry: And I know I should not use this term, but I do tell them when they are working with Michelle or someone that is really good like Michelle that Michelle is your attorney. You can find the house. She has to let you in, and there are a lot of things that she does need involved there, but she is your attorney, really.
Jeremy: Yeah, because they sign (indiscernible) that we are not legal help but we are playing that.
Michelle: Yeah.
Jeremy: How about this, and by the way, I have got Michelle Evans with the Larkin Group with our team over at the Keller Williams Realty. I have got Chantry Abbott, Guild Mortgage. So Chantry, you are a lender. What about if somebody submits a contract to you and it has deadlines that say that there is a financing and appraisal deadline? You get to deal with that. Right?
Chantry: Yeah, we have to make sure that we have got their loan approved and their appraisal reviewed, and everything looks good, otherwise they are potentially risking their earnest money deposit, which if you do not know what that is, like a security deposit, and sometimes it can be really expensive. We have seen $5,000, $10,000 can be in trouble if they are not having a real estate agent that is taking care of those deadlines.
Jeremy: How many pages in your typical loan contract to close a loan? I do not mean the contract with you. I mean the actual loan agreement with the bank. How many pages? Typically.
Chantry: Like at closing, it is probably roughly 30 pages.
Jeremy: 30 pages. Has anyone ever read one of those? It is epic. Right?
Chantry: Yeah.
Jeremy: It is epic boilerplate –
Michelle: Take your dictionary.
Jeremy: — legal-speak. Right? So Chantry, what if I turn in the contract to you that says listen, Michelle, wrote an offer. The offer is contingent on an appraisal. It is contingent on –
Michelle: Due diligence
Jeremy: — due diligence or a home inspection. It is also contingent on the seller who is in San Francisco selling their home, and there is an addendum that says that they have just put their home on the market in San Francisco, and they have 21 days to sell the home, and if they do not sell the home in 21 days, then we can cancel the contract and come back. While that is at it, we have a 72-hour clause that will allow other buyers to come in and the other buyers can make offers on the listing that Michelle wrote an offer on and then they could kick the first buyer out of place. Do you see that stuff as a lender?
Chantry: Yeah, quite often.
Jeremy: All of the time. When does the work begin, guys? The work begins at contract.
Chantry: Yes.
Michelle: Very much so.
Jeremy: And so if we are selling your home, by the way, the work, of course, begins when we start marketing your property. Of course, right? But we are really more, the day that we sign that listing agreement and we start saying let’s schedule photography and let’s do what we do. But if you are buying a home, the heavy-duty work, that is contract work.
Michelle: And I think that they do not realize that there is a second set of negotiations. So during that due diligence period, that is 10 days, two weeks roughly that you have to get a home inspection done and then there is a second set of negotiations. Because a home is sold as is, but often sellers will defer maintenance and just feel like well the buyer can take care of that.
Jeremy: So you mean there is a negotiation to buy the house and then there is another second negotiation once they have done an inspection?
Michelle: correct.
Jeremy: What if the appraisal comes in low, Chantry?
Chantry: Another opportunity for a negotiation. Right? So I guess that is a third potential negotiation.
Jeremy: What percentage, Chantry, of deals do you see have an appraisal come in low right now?
Chantry: Probably 95% of them are just fine. So maybe 1 out of 20 or something along those lines. There is an appraisal something. Sometimes it is not just value. Maybe it is the roof has an issue that needs to be fixed or things like that.
Jeremy: Guys, it is snowing really hard out there. I just want to interrupt this previously scheduled program.
Michelle: Gosh, it is pretty.
Jeremy: So, Michelle, Chantry, so happy you are with us today. Let me share some statistics with some folks this morning. It is February 21st. We got a little bit of a slow start at the Larkin Group this year. Last year, we had 173 buyers or sellers, families we helped. But we have 21 properties under contract, representing a buyer or seller. We have closed 13. So all that paperwork we just talked about, 13 times we have closed it. We have 21 under contract. We have executed 31 contracts since January 1st, meaning we took a buyer out, went through all that nonsense, negotiated a purchase price, negotiated a deal, went through the inspections, went through the appraisals, went through all the headache. Chantry, does sometimes days before closing a lender, like the underwriting lender come back and say that they need a pay stub from 2007 to prove that these people are actually real?
Chantry: Can. We sure try hard to avoid it but yeah, it is just one of those things sometimes. Right?
Jeremy: Yeah, right. So we have put 31 contracts together like this, and eight of them have fallen apart so far this year. That is the numbers so far. So 8 of 31 have fallen apart. And why do contracts fall out, Michelle? Like what would be the reasons? Why do deals fall apart mostly?
Michelle: They cannot qualify for their loan is a big one. They change their mind is another one. Something happens during the home inspection and if the seller is not willing to credit or repair that issue, then they are like we are out.
Jeremy: Yeah.
Michelle: So that is another thing.
Jeremy: You mean they get scared. They get nervous, they do not like the neighborhood, they do not like the church, parish, whatever they went to. They found five broken roof tiles and maybe they are concerned that, and the list goes on and on. Right?
Michelle: It does.
Chantry: Appraisal. Appraisal does not come out good. There is an issue.
Michelle: Their home does not sell. It was contingent on –
Jeremy: Yeah, they had to sell their home.
Michelle: Their contract fell through back in San Francisco or whatever it could be.
Jeremy: Yeah, the domino chain. Chantry, as we wrap up, final minute. Most important message you feel like buyers and sellers need from a lending perspective today.
Chantry: Yeah, I just think that I have preached about this a bunch of times. But interest rates, we all know at some point, are going to be going up. Right? They have gone up about 1% in 2018. They went up about 1% in 2017.
Jeremy: Yeah. By the way, that costs people 20% of their purchasing power.
Chantry: And that is what I was going to tie it into. Perfect.
Jeremy: Ooops.
Chantry: If that goes up, no, it is great. If that goes up 1% again in 2019, which it probably will, most likely, who knows, but probably, that impacts their purchasing power or their monthly payment by 10%, which means home prices would have to change by 10% or they would have to buy a 10% less home. So I know the price of the house matters. I bought a place in 2007. I still have it. I have a ton of equity.
Jeremy: Worst possible time to buy a house.
Chantry: I have a ton of equity because it does not matter that much unless you are going to sell it next year.
Jeremy: Yep. Exactly. Exactly.
Michelle: Yeah.
Jeremy: Michelle, thank you for being on here with us today.
Michelle: Thank you.
Jeremy: And for bringing your expertise and talking about what realtors, I was about to say real estate agents, real estate agents and mortgage professionals, mortgage lenders, we get paid to produce an outcome. Right? At the end of the day, we do not get paid for the hours we work because sometimes we work 100 hours and sometimes, we work seven on the same deal. Right?
Michelle: Right.
Jeremy: We get paid to produce an outcome. We get paid to walk somebody through the most complicated and emotional process of their life, and that might include needing to reduce their price if they are selling the home. All sorts of things.
Chantry: I think we protect them through that process. Right? That is what we do.
Jeremy: Bingo. Bingo. Guys, I want you to visit St. George Home Searching dot com. St. George Home Searching dot com because we are talking about the MLS. If you want to look at every single house that is on the Multiple Listing Service right now, St. George Home Searching dot com. You can click on the link there to find out what your home is worth. Check it out. Thanks, Chantry Abbott, Guild Mortgage. 674-1090 if you want to speak with him. 674-1090. If you want to reach out to us, 275-1690. Sold in St. George dot com. There you go. End of story.

 

St. George Parade of Homes Ticket Giveaway and Consumer Survey! (St. George Real Estate Radio Show)

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com. 

Andy: You know what that music means? I do. I think it means Jeremy Larkin is in the house.
Jeremy: Hello, everybody. You know what, Jesse? We are going to reset this live feed, guys. We have got a Facebook Live feed, and I do not think we are on Wi-Fi. So I think we re going to reset it. Good morning to everybody here. Jeremy Larkin, host of the St. George, what?
Jesse: St. George Real Estate Radio Show, the Morning Drive.
Jeremy: You almost got it. See? I was testing you. I was testing you. I was testing you.
Andy: You guys are so tech-savvy.
Jeremy: The St. George Real Estate Morning Drive. Okay? Can we get it right? The St. George Real Estate Morning Drive. We have got to get Andy trained.
Andy: Yeah.
Jeremy: Andy, here is the thing, Andy. You were just calling Hurricane H-Town.
Andy: H-Town. Yeah.
Jeremy: Right.
Andy: Is that not good?
Jeremy: I like it, but now I want the St. George Real Estate Morning Drive. Can people see his shirt? They cannot see his shirt because he has got a face for radio.
Andy: Maybe we ought to do a close-up on Facebook.
Jeremy: He has got a face for radio. Do you love that?
Andy: But he has got a shirt for the world. His shirt is amazing.
Jesse: Hey, my wife gave me this shirt two years ago, and I think it has taken me a couple years to get the courage to wear it. So.
Jeremy: (Indiscernible) woman.
Jesse: It is sexy.
Andy: This is the debut of the shirt today?
Jesse: No, I have worn it before, but not like this. Not on air.
Andy: Oh, okay.
Jeremy: It is a debut.
Andy: He has lips on his shirt.
Jesse: If you cannot see it, you can go to the Larkin Group. We are St. George Experts on Facebook and look at our Facebook Live and you can see the lips. I feel like Mick Jagger.
Jeremy: they are not that big.
Jesse: I almost like Mick Jagger this morning because in the middle of the night, I stole my wife’s pillow and she got up and almost punched me.
Jeremy: Let me see if I can explain something to all of our listeners. He moves. You know the song? Moves Like Jagger? This guy moves like Mick Jagger.
Andy: Yeah?
Jeremy: He actually does. So I got a question out there for people. How many folks are YouTube Live? Does anyone watch YouTube? I do not know. Because it is a thing.
Jesse: I do. Not live, but I definitely am a YouTuber.
Jeremy: So what we are doing now is we have taken the show and we are running it on YouTube Live. So we run the show on Facebook Live. We run the show on YouTube Live. Now, we killed our live feed for just a minute. I am Jeremy Larkin, host of the St. George Real Estate Morning Drive. Because we thought maybe WiiFi might be helpful, Andy.
Andy: Is it working?
Jeremy: It is. We are going to be back on right now. So guys, I want to wish everybody out there a very, very lovely happy Valentine’s Day. Andy, what do you got, what is on your schedule today?
Andy: Dinner and a concert for me and the wife.
Jeremy: Where is the concert?
Andy: It is Cox Auditorium. It is the Carpenters’ tribute band. I do not know if you are old enough to remember the Carpenters.
Jeremy: Come on, of course.
Andy: They were very romantic.
Jesse: No, the Carpenters.
Jeremy: Come on.
Andy: I said something in a room the other day about going to the Carpenters’ tribute band, and everybody gave me the three-mile stare like who? What? Who? She has been dead for 30 years. But yeah, I am pretty pumped about tonight. We have not figured out where dinner, we are not sit down with cloth napkins and have a steak type people very often. So we are going to have a nice dinner and a concert, but it will not be, I am not going to spend $100 on dinner.
Jeremy: Very fair.
Jesse: Or wait for 2 ½ hours.
Andy: I have got a reservation. No, no, I do not want to do that.
Jesse: Valentine’s Day is the craziest restaurant day.
Andy: What about you, Jeremy?
Jeremy: For what it is worth, I have got reservations, by the way.
Andy: Really?
Jeremy: I have got reservations at the Ledges, 5pm.
Andy: Oooo.
Jeremy: So don’t anybody out there dare think that I did not plan ahead. I got those reservations a week ago.
Jesse: Wow. A week in advance and you still got –
Jeremy: Now, I might be there alone, but I have got reservations at the Ledges. Do you know what I am saying?
Andy: You planned ahead though. That is good. I am impressed.
Jeremy: No, I absolutely did. I have got reservations at the Ledges with a very lovely woman. Happy Valentine’s Day to Kayla Evans, and to Jesse Poll here and all of my –
Jesse: And to Leia Frances Poll. That is my wife.
Jeremy: And to Leis Frances Poll. Yeah. And to all of the beautiful women at our office, and also the beautiful men at the Larkin Group. I do not know.
Andy: Can’t they be handsome?
Jeremy: They can be handsome. They are beautiful. Guys, we are back on Facebook Live if you are not there. Facebook dot com slash Jeremy Larkin. Check it out. We are live, back on. Just trying to see if we can get our feeds to run a little better. Okay. The funny part is I was going to look in my photos this morning. This is what I love about technology. I was going to look in my photos and did not prior to the show to find out what I was doing last Valentine’s Day. That is the thing with the phone is you can actually find out what you were doing on any Valentine’s Day. Right?
Andy: Was there something cool?
Jesse: Because of your photos.
Jeremy: No, yeah. Just because your photos it is a scrapbook. It is a living scrapbook. How many photos do you have on your phone, Jesse?
Jesse: Thousands.
Jeremy: How many thousands?
Jesse: I do not know. My phone is over there. Well, I have had to delete it a few times because my iCloud gets full.
Jeremy: Okay.
Jesse: And I just cannot see paying $12, $20 a month because it just keeps adding. When I can take it all over to Google photos and get almost unlimited if I save it right.
Jeremy: Absolutely.
Jesse: So it is challenging to make that happen. With an iPhone, it does not seamlessly happen.
Jeremy: It is not quite as seamless as you want it to be. Well, I want to let you guys know that I have 11,000 —
Andy: 11,000?
Jeremy: — photos.
Andy: Wow.
Jeremy: How do you like that?
Jesse: I do not have that many. You must pay for serious storage or you have a big phone.
Jeremy: I have a gigantic phone.
Jesse: Okay.
Jeremy: It is basically like the brick phone from Saved by the Bell. Remember the one? You do not know.
Andy: I used to broadcast games on those big things.
Jesse: Oh, I remember those.
Jeremy: Oh gosh.
Jesse: Those came out when I was actually a teenager, I think.
Jeremy: Yeah, it is a big old brick phone.
Jesse: Miami Vice.
Jeremy: Yeah, Crockett and Tubbs. Right? Remember those guys?
Andy: Oh yeah.
Jeremy: We are going to have some fun this morning. So we are going to give away some Parade of Homes tickets. We are giving away on the Larkin Group Facebook page dinner for two. A gift card for some folks. Should we start with that?
Jesse: Let’s do it.
Jeremy: Okay, we have got a Valentine’s giveaway. By the way, I am Jeremy Larkin, host of the St. George Real Estate Morning Drive, and I have got Jesse Poll here, my business partner, co-host, and we are talking about, we are going to talk about the St. George Parade of Homes –
Jesse: Let’s do it.
Jeremy: — because it is so massive and we ran a survey that is very, very interesting. Now, I think the data is, I think it is lopsided and weighted because it is data that came from out real estate database.
Jesse: Right. Right.
Jeremy: Does that make sense? So is it really, it is not reflective of what the public is doing.
Jesse: Right, but I think we are going to do another one, I believe.
Jeremy: Yeah, we will probably do another one. Okay.
Jesse: To really make it fair.
Jeremy: We will do another one. But the first thing I want to tell folks is would you like to win date night? You have already got yours planned.
Andy: Yeah.
Jeremy: So folks can still win it. Over at the Larkin Group Facebook page. It is Facebook dot com slash St. George Experts. Facebook dot com slash St. George Experts. Some fun photos. Tag your Valentine and post a photo of you and them on the feed there. We already have 11 beautiful couples have posted and good morning to so many of them. So cool, so fun. Have you seen it? It is pretty fun. Hop on there. Facebook dot com slash St. George Experts, and post a photo of your Valentine together. You two together.
Andy: Yeah.
Jeremy: And we are going to draw for one lucky couple today. Number two, we have got a St. George Parade of Homes ticket giveaway that is going on right now. And I know we are giving people so maybe things to track down, but it is okay. They are going to survive. Right?
Jesse: If they want it, they will track it.
Jeremy: If they want it, they will track it down.
Jesse: We will chase the things that we want.
Jeremy: Yeah, we will chase things that we want. And by the way, I chase the things that I want. Very, very, very much chase things I want. So, want to let people know we are doing a giveaway and if you want to get in on this giveaway, visit St. George Real Estate Videos dot com because we posted the link there, and it is a survey about the Parade of Homes. Should we talk about the results, Jesse?
Jesse: Let’s do it.
Jeremy: It is a very simple survey. We asked people three questions about the Parade of Homes, but maybe most importantly, we asked questions about what their plans are in real estate this year because we want, it is like what are people thinking? What are they feeling? What are they going through? Are people buying homes? Are they selling homes? What are they doing? Right? Okay. So how many responses have we had to our survey?
Jesse: 118.
Jeremy: 118 folks answered three questions. And what were the questions, Jesse? Do you know off the top of your head?
Jesse: The first was have you ever attended the St. George Parade of Homes? 79% said yes. 20% said no.
Jeremy: Okay. And this is in our database?
Jesse: Yes.
Jeremy: So, so 80% said yes, more or less. 20% said no.
Jesse: Right.
Jeremy: Now, not surprisingly, what was the next question and answer?
Jesse: Do you plan to attend this year’s Parade of Homes or the 2019 Parade of Homes? 80% said yes. 19.3 said no.
Jeremy: So essentially, exact reflective answer. All the people who said they had been to the parade said they are going to the Parade. Have you been?
Andy: I have, yes.
Jeremy: It is very cool. If you go this year, if there is anything you want above say $2 million, we would be happy to write it up. Okay? Just want you to know that.
Andy: That would be dollars because that is a little out of my price range, Jeremy.
Jeremy: Yeah, I know. I get it. I get it. Third question. What do we have?
Jesse: Third question. Do you plan on making a move or change of residence in 2019? 55% said no. 44.5 said yes.
Jeremy: And that was baffling. So understand that this survey was conducted out of our database. So for our real estate clients, by the way, who we market to. We have almost 10,000 now —
Jesse: Right.
Jeremy: — recipients on our email list. As a matter of fact, our last, I do not know what yesterday was when we sent out the Parade of Homes giveaway, but we were at about 9200 successful deliveries. That is how big our database it. That is how big the group is that we are now marketing to, that we are marketing your listing to if you are selling a home. Right? That we are sharing about the market. And anyone who is on that list knows that we share, it is like 90% value, content, 10% hey, can you help us out? Can you send us a referral? That kind of thing. We are putting tons and tons of content into this database. So the point being we queried that group, and in that group, not surprisingly, lots of them go to the Parade of Homes. Lots of them plan to go to the Parade of Homes, and almost 50%, did you say 45? Said they are going to move this year.
Jesse: Yes.
Jeremy: Holy cow. Okay.
Jesse: 44.5.
Jeremy: Let’s talk about some of the things they said, and by the way, of course, I am not going to ever share names. Here is a couple of things I noticed by the way. We are thinking of downsizing. We are thinking of downsizing. We are thinking of downsizing. I think I saw that yeah three times. We are thinking of downsizing. Isn’t that fascinating?
Jesse: I am looking at one right here. The first one that popped up. When will the bubble in real estate bust? When will the prices plateau?
Jeremy: Okay.
Jesse: Will Washington County pricing peak anytime soon?
Jeremy: Oh, this is so awesome. So when will the bubble burst? So –
Andy: Is it a bubble even?
Jeremy: You are just, thank you for being wonderful. Andy, have you ever had something go really horribly wrong for you?
Andy: Oh, of course.
Jeremy: Yeah.
Andy: My first day on the air here, as a matter of fact.
Jeremy: Beautiful. And here is a question for you. After the first day on the air, this is actually perfect, and I did not set you up for this.
Andy: Nope.
Jeremy: After the first day on the air, and it went horrible is how you felt about that. Okay? Did you believe that all of the other days were also going to be horrible because that one was horrible?
Andy: No.
Jeremy: No. So do you see where I am going? There was a bubble a decade ago.
Andy: Right.
Jeremy: And because there was a bubble, people are so shell-shocked of what do they believe?
Jesse: There is going to be another one.
Jeremy: It is going to happen again.
Jesse: What is interesting is the last time, it had been so long since we had had anything like that it was not even in their mind.
Jeremy: Correct.
Jesse: And now, because we are back to a normal cycle, right? It should cycle every ten years. Up and down. Up or plateau.
Jeremy: Yes. Yes.
Jesse: So last time, it was one of the longest stretches in history. So it was out of our mind. The 70s and 80s is the last time that it probably really happened (indiscernible)
Jeremy: Literally. Yeah, when you are talking about major economic issues with 70s and 80s –
Jesse: Right.
Jeremy: — you had interest rates hit 18%, and then for people to even buy or sell real estate it was all seller-financed, and weird and wrap-around mortgages. And you can have the use of my four-wheeler. It was three wheelers by the way in the 80s. Those things were fun and dangerous.
Andy: And dangerous.
Jeremy: And dangerous.
Jesse: My son got a three-wheeler that did not run, and he made it run on fumes. He created a gasifier engine.
Jeremy: A gasifier engine.
Jesse: In high school.
Jeremy: Oh my goodness.
Jesse: Good old three-wheeler. They made it a chopper three-wheeler.
Jeremy: I love it. I tipped one over. 600 South downtown St. George.
Jesse: Nice.
Jeremy: But at the time it was like you can use my three-wheeler and then also my house boat at Lake Powell and then I will give you $20,000 down and then if you will, it was this crazy stuff people had to do to sell real estate. We do not have any comprehension how good it is now. Because see if you do not know what the bitter is, you do not know what the sweet is. So folks, we are in a wonderful real estate market. We are in a healthy real estate market. We are probably getting into a more healthy real estate market than we have seen in the last couple of years.
Jesse: Right.
Jeremy: When will the boom bust? Bubble burst? We do not think there is a bubble. Okay? Fair enough?
Jesse: I agree.
Jeremy: All right. So what is another question we have got in here? These are so incredible. Incredible issues. We basically could run a radio show for the next two years off this.
Jesse: I think we should because the next one that popped out on me –
Jeremy: Thank you, everyone.
Jesse: Nothing to do with the Parade of Homes, but this stuff comes up all the time. We are thinking about adding a two-car garage to our home with a two-car garage. And that would be four would be attached. What affect will this have on the home’s value?
Jeremy: Okay. So let’s run this. Let’s break this down now. They want to add a two-car garage.
Jesse: To a two-car garage. So it would be a four-car garage.
Jeremy: Two two-car. All right. So, Carl Wright was in our office last week –
Jesse: Two to two.
Jeremy: Yeah right. So Carl Wright was in our office last week. Carl Wright is with R1 Appraisals. I hope I do not butcher this. I think they have done 120,000 appraisals. His company. They might have a feel for the market.
Jesse: A little one.
Jeremy: And what was fun is that most everything he said reflected what I knew which made me very happy and kind of pat my own back. Stretch back there.
Jesse: He did, too.
Jeremy: Yeah, I did. I went ahead and gave myself a scratch and a pat and hug.
Jesse: And asked us for one, too. And we gave it to him.
Jeremy: I know you did. Depending on the home, 7-10,000 per garage bay if you are in a more expensive home. $5-8,000 per garage bay if you are on a less expensive home. Let’s call it 10,000 a garage bay. And let’s just maybe go ahead and say 15-20 grand. Now, but here is maybe more important. That is 15-20 grand on an appraisal.
Jesse: Right.
Jeremy: But more importantly, if they were to put it on the market, it is much more marketable.
Jesse: Right.
Jeremy: Right? And we do not know. We do not know what, well, aren’t you guys real estate professionals? Well, yeah. But we do not know everything. Right? There is no classic, perfect metric for that. But here is what I would say to the person who answered that question. If you want to put a two-car garage onto your existing two so you got a four, you are not doing that for another buyer. Who are you doing that for, Jesse?
Jesse: Yourself.
Jeremy: Yeah. Have you upgraded your home ever, Andy?
Andy: Yeah, years ago.
Jeremy: What did you do?
Andy: We added a little bit of room. We also built on kind of shed-type space and a carport, and then we added on an awning in the back.
Jeremy: Beautiful.
Andy: Made the back very livable.
Jeremy: So did you like that?
Andy: Oh, yeah. Oh, yeah.
Jeremy: And who did you do that for?
Andy: Did it for myself, not for the future owner.
Jeremy: Right.
Jesse: We were just having this conversation the other day.
Jeremy: But there was a benefit for the future owner, but it really was not for them. It was for you.
Andy: Exactly.
Jeremy: There you go.
Jesse: We were just having this conversation the other day. We have got a couple coming soon listings. One in the Legacy that is a walk-out basement. Another one in Bloomington Hills, and we are talking about well one of them has completely remodeled it. Just beautiful home. And we were talking about man, what value can we really get out of this? Can we get it back? That will be coming on the market here in a few weeks. We are really excited about that and see what the market says.
Jeremy: Incredible home in the Legacy. We are –
Jesse: Oh, it is so awesome.
Jeremy: — talk about a couple of properties today.
Andy: Jeremy, let me mention real quick. I have a Mustang.
Jeremy: Hey, Andy, this is my show. I am kidding. Keep talking.
Andy: I just want to enhance your point though.
Jeremy: I just wanted to go ahead and see if people could be uncomfortable. I could not even stand this discomfort –
Andy: I can turn off your microphone –
Jeremy: I know you can.
Andy: No, I am just kidding
Jeremy: So go ahead.
Jesse: He controls this show.
Andy: I have a Mustang. Last year I bought some Boss rims for my Mustang. I did not buy the Boss rims because someday I am going to sell that Mustang and I want to get that money back. I bought the Boss rims because they are cool, and I wanted my car to look really cool. Same point.
Jeremy: And here is the irony. Because not only did you not buy it for the future purchaser of your car, what is actually going to happen to the value of that car over time?
Andy: It is just going to go up. Yeah.
Jeremy: It is going to go up, or people may or may not ever even want that and you may just give those Boss rims away for free. Right? Because you do not know what someone will want.
Andy: Right.
Jeremy: When we talk about selling a home in this market, we have had this conversation so often. You envision this giant funnel, okay. Giant. Like a Washington County size funnel. And at the top of the funnel is every buyer for every property. Okay? Townhomes, condos, single-family homes, luxury homes, trailers, trailers on rented lots, trailers on owned lots, land, every property, every buyer goes into the top of the funnel. Well, here is the issue. Out the bottom of the funnel, Jesse, if you are selling a home, what do you need? You need one person to come out of the bottom of the funnel who wants what?
Jesse: To buy this home.
Jeremy: That home. So Jesse lives on 200?
Jesse: Yep.
Jeremy: In Hurricane, H-Town. I love that, Andy.
Andy: H-Town. Yeah.
Jeremy: He is home that was built –
Jesse: Downtown.
Jeremy: — in 19 what?
Jesse: 1922.
Jeremy: 1922. The home is gorgeous. Okay? And, not but, and it is a historic home.
Jesse: It is definitely an historic home.
Jeremy: So here is what has to happen if Jesse wants to sell his house. He has to find someone, number one, who wants to buy a home. Number two, they want to buy a home in Hurricane –
Jesse: Yep.
Jeremy: — Utah. Number three, they are okay buying a home built in 1926.
Jesse: 22.
Jeremy: 22.
Jesse: Yep.
Jeremy: And all that comes with a home that was built in 1922.
Jesse: Yes, it does. You start digging into those and you find problems you did not even know existed.
Jeremy: Okay. We have got our buyer, but yet, we do not. Now, they have to be able to afford it. Next, number five, they have to want to afford it.
Jesse: Yep.
Jeremy: That one is what people, maybe I do not want to afford it. Oh, I could afford it. I just do not want to afford it. Right? They have to want to afford it. And then we just come circle all the way back around to what we talked about. Then they have to love the style. Going in the house has to feel right the day they went there because maybe the husband and wife or husband and husband or wife and wife or whatever we are doing now, right, we are in a fight in the car on the way to the home. Do you realize the couple fighting in the car on the way to the house could ruin the sale?
Andy: It is true.
Jeremy: Right.
Andy: That is true.
Jeremy: Do you love it? Anything could affect the marketability of this home.
Jesse: Oh my gosh, that is great.
Jeremy: So out the bottom of this funnel is the person that buys your home. And so we just have to realize that this is not like oh, I got the best home on the block. I realize you might have the best home on the block, but buyers are looking at a lot of homes.
Jesse: There are a lot of other dynamics. I was just talking to somebody yesterday that was doing an inspection on a home and their agent, the seller’s agent, is just disconnected. They are not, it is just who they are.
Jeremy: Okay. Agent representing the seller of the property. Okay.
Jesse: The seller. So they are doing inspections. The buyer is doing an inspection and this seller is just livid. And their agent is not available to help calm them down. This is just what happens. This is normal. So it may go south because something you cannot control. The seller, the buyer cannot control, the agent should be controlling that. Or at least doing some future prepping —
Jeremy: Correct.
Jesse: — of what to expect.
Jeremy: Future prepping. Future pacing.
Jesse: Pacing. There you go.
Jeremy: Is what we call it okay. Okay. One more question. Andy, what do we got for time today?
Andy: You have got about three minutes.
Jeremy: Last question, Jesse, and then we are going to talk about two real estate things, two homes.
Jesse: Okay. There was one on here. Let me look.
Jeremy: Okay. When is the best time to refinance? How about that?
Jesse: That is a good one.
Jeremy: You ready? You ready? The best time to refinance is when interest rates are lower than your current interest rate. And by the way, people say by how much? At least a half of a point.
Jesse: Yeah.
Jeremy: If it is not about a half a point, you are going to pay a lot of money unless you are really truly planning on staying in a home for 30 years. When is the best time to refinance? When is the best time to plant a tree? 25 years ago. When is the next best time? Today.
Jesse: And that also depends on what you are doing. I went to go refinance and Chantry Abbot over at Guild Mortgage actually talked me out of it and sent me to a different institution to get a HELOC because it made more sense for me.
Jeremy: That is what happens, by the way, when you work with professionals. How about this? Two minutes. Robert did this on our team. Congrats, Robert. Happy Valentine’s Day, Robert. Just wanted to personally, and you have done this. He talked the seller out of selling their home.
Jesse: Yeah.
Jeremy: Went to visit with the client and said I do not even think this is a good idea. Folks, a couple of incredible properties coming up. We are listing, putting on the market tomorrow afternoon a home in Ivins that is just, it is literally like a little, it is not a diamond in the rough. It is like a little, fields of diamonds. More like that. It is in your backyard. They coined it mini farm meets pool paradise, and these are amazing people.
Jesse: They are amazing people and an amazing house.
Jeremy: Yeah, it is really fun.
Jesse: It is going to be a lot of fun to sell that.
Jeremy: Yeah, I love it when we bring a home to market that is just not another home. 2355 square feet, four bedrooms, but most importantly, they have built this oasis in the backyard. Chicken coops. It is just so freaking cool. So anyway, check this out. This home is coming to the market tomorrow. Number two, Legacy and we are not going to give you anymore. By the way, if you want to see this property upcoming, you can see it at Go St. George dot com. Legacy.
Jesse: I have got one in Bloomington Hills coming up.
Jeremy: Incredible.
Jesse: Walk-out basement with two kitchens. Just awesome mother-in-law apartment.
Jeremy: Two kitchen. Oh. Guys, incredible properties. Check them all out at Go St. George dot com on our coming soon listings. They are not all there yet because we are working with a lot of clients. If you would like to win the Valentine’s, a date night for you and your Valentine, visit Facebook dot com slash St. George Experts, and post, you will see the post. Post a picture or photo of your loveliness together. And if you would like to get in on the Parade of Homes, we are going to give away at least ten tickets, five sets of tickets.
Jesse: Nice.
Jeremy: Get involved in the Parade of Homes survey that we asked today. Have you been? Are you going? And do you plan to buy or sell this year? To give us a sense for what people are doing at St. George Real Estate Videos dot com. Man, did we jam it in there?
Andy: You got it done.
Jesse: Good job, Jeremy.
Jeremy: Sponsored by Coke Vanilla Zero.
Andy: I know. Nice product placement.
Jeremy: Look it is a downgrade from Red Bull. I am trying to get off that stuff. I love the product placement. The problem is guess what they are giving me? Nothing.
Andy: St. George Real Estate Morning Drive with Jeremy Larkin. Jeremy, I loved the show. Thank you, man.
Jeremy: Thank you, man. Appreciate it. Cheers.

Title: 36% St. George Home Price Appreciation? (St. George Real Estate Morning Drive Show)

Click on Facebook Live. to see the entire recorded show from Facebook! Below is the actual S. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com. 

Mike: KDXU news time. It is 8:36. Good morning and welcome. It is a Thursday, tenth day of the month of January. It is time for the St. George Real Estate Morning Drive with the voice of St. George Real Estate Jeremy Larkin.
Jeremy: Good morning. Good morning. And if you happen to be, let’s see, where could it be afternoon? Europe, Mike?
Mike: I am sure.
Jeremy: I was doing the math. I am like okay, in New York City it is still morning. Listen, if you are somewhere in the mid-Atlantic Ocean, good afternoon. If you are somewhere in Europe, good late afternoon. If you are in Asia, it is nighttime. Right? And then I’m going to come all the way around.
Mike: Yeah, it is another day over there.
Jeremy: So anyway, welcome to the world geographic and weather program where we tell you all sorts of fun facts about time zone you are in. Good morning to our Facebook Live, YouTube Live, now this is really fun. Now, Jesse, when we put on the YouTube Live, did we make it public?
Jesse: I do not know.
Jeremy: That is what we do not know. You might want to check on that. Just so everybody knows, we now broadcast the St. George Real Estate Morning Drive live on YouTube and Facebook simultaneously. It is classic. It is classic. As a matter of fact, I will get a photo of this right now. Jeremy Larkin here, host of the St. George Real Estate Morning Drive. So happy to be with you. I have got my good friend and cohort, business partner, Jesse Poll –
Jesse: Good morning.
Jeremy: — looking very sharp in his suit coat. I have got Mike McGarry, who is a short-timer here at KDXU radio. Just over here, he is really, he is spinning the tracks.
Mike: That is right. By the way, it is 3:38 in the afternoon in London.
Jeremy: Thank you.
Mike: Just doing it for you.
Jeremy: So it is eight hours, right?
Mike: Yeah.
Jeremy: Eight hours. Okay. Eight hours. Thank you. Thank you. Okay, give us Singapore. Will you just do one more? What about Singapore? Why am I saying Singapore? It seemed like a place that is far away, and I was looking last night, gang, at the Costco Travel Guide. You know when you are coming out of Costco, there is the travel guide on the wall and I was looking at what time is it, Mike?
Mike: 11:38pm.
Jeremy: 11:38pm in Singapore. So there you go. You did not know that, did you Jesse?
Jesse: I did not.
Jeremy: Yeah, it is kind of fun.
Jesse: I have heard Singapore is a pretty cool place to visit though.
Jeremy: Yeah, it looks really cool, so I was looking at some Costco Travel, and there was Singapore and there was Bora Bora where you can go stay, the bungalows, the over-water bungalows. Now here is why I did know more or less what time it was in Singapore. So for many years at the Larkin Group, for our listeners, you understand that we help people buy and sell real estate here in Washington County. Buy and sell means purchasing a home for their family, selling a home because it is time to move, and of course, work on purchasing a real estate investment property. We have a gal by the name of Charmie Mendoza, this is so fun. So fun. By the way, with her bonus, she is going to help her son buy a laptop. His first laptop.
Jesse: That is really cool.
Jeremy: She is a single mom. She lives in the Philippines. She is right outside of Manila, and we hired her through some friends of ours in Sacramento who run a company where they hire Filipino folks to help real estate agents. Culturally, they are really, really incredible at tasking. Like you give the list of 200 tasks, and whatever it is, they just nail this. Right?
Jesse: Something that will take me 30 minutes, she will do in 5.
Jeremy: In five. Right? So, she has worked for us for four years, four years. She is a single mom in the Philippines. So by the way, it is 11:30, 12pm, probably the same time in the Philippines, right, Mike?
Mike: Yeah.
Jeremy: She has gone to work for us right now. So if I were to message Charmie right now, she is sitting at her desk. Her son has gone to sleep, and she will work for us through the night. So she works nights. She will work all night long, and then her son will get up, and she will send him to school and then she will go to sleep. Just like anyone who works nights. Sometimes I will email her at about 10pm our time. I will sit down and be shooting some emails out, and I have seen her respond because now she is back up. It is afternoon there. Amazing woman, and we did a Christmas bonus for her, and she is going to get a laptop for her kid. Kind of fun.
Jesse: That is cool.
Jeremy: I know you think about real estate as HGTV and what you do is you go and you look at three homes and you go to open houses. Our business is very different from that. It is a very digital business. So when you are hiring a great real estate agent, they are going to have a whole digital backend that you do not have any idea about, and that is what she does for us. She handles a lot of our digital marketing.
Jesse: Speaking of digital business, this report that we were looking at, it is something like in the 80-something percent, I am looking for it right now, of homes find their home or clients find their home on the internet. That is a huge –
Jeremy: I thought it was ninety, I thought it was like 90%. Was I wrong?
Jesse: So let’s see. Newspapers are down to four, less than five percent?
Jeremy: How do people find their homes? Give it to us.
Jesse: Yard signs is about 20% and the rest of them, so about 75% will find their home first on the internet.
Jeremy: Yeah, so to be clear about this, this is the home they purchased. Okay? The home they purchased. Good morning again to our Facebook Live and YouTube Live listeners. So if you want to check it out. I do not even know who is a YouTube Liver, but what YouTube Live is allowing us to do is, more than anything, save the show straight to our YouTube channel, which is YouTube dot com slash, if you would like to look it up, Go St. George TV. Slash Go St. George TV. So what it is allowing us to do is already have the show, when we walk out of here it is done, and it is posted to YouTube, and there is no fuss, no muss. Something like that. I do not know what they say. But with our Facebook Live listeners, if you have got a question, please ask us anything. We are going to talk today about how much you might expect your home value to go up or down. Right? How much will it go up or down, your value in 2019. Amongst many, many other things. Today is the economic summit, the St. George Washington County Economic Summit down at the Convention Center, and I will not be there, which typically for years I have been there. But I have decided, elected that we have got more pressing work. The Economic Summit is really neat, but the challenge is they charge you a hundred bucks to go spend the day there. It is kind of a networking event, but what they do is this is where they talk about all the new business unveilings, who is the big corporation who is going to town and create new jobs. They are going to give a big old massive real estate report. Folks, just so you know. We already have all that information.
Jesse: Right.
Jeremy: I am literally looking at it on my screen right now. So instead of spending $100 and spending 7 hours, we are just going to go ahead and put on a radio show, and then work to help our clients. The Economic Summit is really cool. I do not want to downplay it. But here is the cool part. We will just take the notes and the summary, and we will present it to you. We will have Chantry Abbot from Guild Mortgage here in studio and talk about interest rates and oh my gosh, about the fact that they went down.
Jesse: Isn’t that crazy?
Jeremy: We are actually going to talk about affordability and why it is such an interesting time in real estate, where it is the best time for you to possibly sell in the last decade. People are going to have their minds blown when we show them, when we talk about how much values have gone up and down over the last decade. They are going to be shocked, shocked, and it is such a strange time, where it is the best time to sell and probably still one of the best times to buy.
Jesse: Right.
Jeremy: Because of interest rates. Excuse me, I am getting choked up because it is very emotional to talk about real estate for me, Jesse.
Jesse: You are a pretty emotional guy anyway.
Jeremy: I know I am. So Jesse, did you see the stat that we were looking at yesterday in my office about the appreciation in 2005 of homes in St. George?
Jesse: I did, and I am going from memory here because I just glanced at it. I think it said 39%.
Jeremy: 36.
Jesse: 36. I was close.
Jeremy: Very good. I literally had a piece of paper on my desk, and Jesse looked at it. Folks, I want you to think about this for a minute. Jeremy Larkin, by the way, host of the St. George Real Estate Morning Drive. If you have got questions, comments, happy to hear from you, and we are broadcasting Facebook Live, Facebook dot com slash Jeremy Larkin, and we are on YouTube Live. YouTube dot com, so just look up Jeremy Larkin. YouTube dot com slash Go St. George TV. So 36%, I want you, our listeners to really consider what I am about to tell you. Historic appreciation of homes annualized, how much homes went up in value, is like 5%. Right? Four, 4-5% annually. Okay?
Jesse: And that is a good, stable number.
Jeremy: Like a healthy market.
Jesse: Yeah.
Jeremy: Do you remember the economic meltdown that we had, Jesse, and people are trying to figure out how we ever got there?
Jesse: Yeah.
Jeremy: Home values went up in 2005 36%.
Jesse: That is nuts. In one year?
Jeremy: Correct.
Jesse: Wow.
Jeremy: Basically, they did seven years, seven, eight years realistically, eight years of appreciation in one single calendar year. And then we wonder why in 2007 everything fell apart. Very specifically what was going on in 2005 and 6 and whether you are wondering if we are going to have a bubble. We had what was called Stated Income Loans going on. Stated Income looks just like this. Jesse comes in the office. I am a mortgage lender. I am not a mortgage lender. I just play one on TV. But to be clear, we will pretend I am. He comes in the office. He says I would like to buy a home. Well, what kind of home would you like to buy? I would like to buy a $400,000 home. Great. You will need to earn about $150,000, and here is a form for you to fill out your income. Well, you put on the form that you happen to make $150,000, that you just so happened to make $150,000. People were stating their income. That is called Stated Income. And of course, when a market goes up 36%, and by the way, this was not just St. George. This was all of them.
Jesse: That was nationwide.
Jeremy: It was crazy. Definitely was Nevada, California, Florida, Arizona. Then a lot of fraud started popping up. So we are not in that market, and we are not experiencing a bubble. So 36% appreciation in one year. Now here is what is fascinating. Folks say man, values fell a lot after that and it seems like they have come up a lot. Oh, I will tell you exactly how much they fell. Values fell 46% from 2006 to 2011 in Washington County. 46% they fell. From 2012 to 2018, they have come up 42%. So we fell by 46%. We are back up 42%. We are virtually back to where we were before. And people, but wait a minute. Here is the difference. We did that at about 6% a year.
Jesse: Yeah.
Jeremy: That is the difference.
Jesse: Over a five-year period. Six actually.
Jeremy: Yeah, we did that at about 6% per year. We are in a very healthy real estate market in Washington County. Very, very healthy. But we have clients who are struggling because they are saying man, it seems like my home will not sell at its current price. The reason it is becoming a very healthy market is because buyers finally said we are not going to quite pay those prices. Right? Like this is hang on a minute now. So prices are settling. I did not say there is depreciation, that homes are going down in value. It is simply folks realizing they cannot quite ask what they hoped, and so there is an adjustment going on.
Jesse: Yeah.
Jeremy: So, Jesse, let’s talk about this for a minute. Historic mortgage rates by the decade. Okay? Slide number two, and just so folks know, we are going to share this on our Facebook page today. So when this is done, we will post this in the comments. As a matter of fact, let’s see if it will post into the comments as we speak. Historic interest rates by decade. You got that in front of you?
Jesse: I do not. I am looking for it.
Jeremy: Second slide. Let’s look at this. This is kind of crazy.
Jesse: (Indiscernible)
Jeremy: Well, page, slide three, I guess. 1970s, 1970s. Anyone out there born in the 1970s? I was. I was born in 1975. Interest rates were 8.86%. Do you know what an interest rate is today, listeners? Anybody out there? We are at about four and a half. Four and a half. 4 ½%. 1970s the average interest rate was 8.86%. It was twice as expensive to own a home. Now people say wait, do you mean that homes were twice as expensive? No, I said it was twice as expensive to own it, to pay for it with your mortgage.
Jesse: I think we are looking at different reports.
Jeremy: What is that?
Jeremy: I think I pulled up the wrong report. So I am just going to go with it.
Jeremy: Good. There you go. There you go. We are looking at, gang, interest rates were twice, twice as expensive, twice as high in the 1970s. Twice as high. Okay? Is that crazy? Is that crazy? And by the way, Jesse, we are looking at January 2019.
Jesse: Okay, so I had December.
Jeremy: There you go.
Jesse: I did not see January in there.
Jeremy: It is in there if you pull it up there. Listen. Would someone come on the show and help this guy out? I am just kidding. He is great. He is just pulling up –
Jesse: It is probably the one at the very top.
Jeremy: Yeah, it is the one right in front of you that says 2000, it says January. 1980s. Anyone born in the 1980s?
Jesse: There it is.
Jeremy: Interest rates were 12.7% average. The average interest rate in the 1980s was 12.7%. It was three times as expensive to pay interest on your home –
Jesse: Wow.
Jeremy: — in the 1980s as it is today. In the 1990s, Jesse, where were we at?
Jesse: 8.12.
Jeremy: Twice as expensive to pay for your interest rate. And in the 2000s? Because we are not in the 2000s anymore. We are in the two thousand teens.
Jesse: 6.29.
Jeremy: So 30% more expensive to pay for your interest on your home. If you get nothing else from this show today, nothing else, listen, please listen. I am going to talk to three groups. You ready? I am going to qualify every single listener on this show. All right? If you are an older person, an empty-nester, a retired person and you have adult children who are saying should I buy a home. I think values are kind of high. I do not know. The answer is yes. Most likely yes. We would need to ask a few more questions, and you are going to say Sonny, do you know interest rates were in the 1980s when I went to buy my first home? They were 12.7%. They were actually as high 18. Okay? If you are a middle-aged person saying do I buy a home? Do I move up? I have been wanting to sell my home and move up, but the challenge is I am not sure because if I sell my home, homes are so expensive. The answer is probably yes because remember if you sell your home in a high market, if you buy a home in a high market, that means you sold your home in a high market. So you are trading across, and remember interest rates could be twice this. Could be. They will eventually be back at 8%. It is probably inevitable. If you are young person saying I am not sure I should buy a home. I just want to be flexible. Let me remind you that again, if you had any concept because you cannot, because how could you have a concept. I do not know what it was like to live in the 1950s because I did not. If you could have a true perspective on how cheap it is borrow money to buy a home right now, you would realize that paying your landlord is literally insanity if you do not have to. I said if you do not have to. I am not calling you insane. Are you calling me insane? Right? Jesse, am I right or am I crazy?
Jesse: Well, you are crazy sometimes. But I think you are right.
Jeremy: But I am right. Okay. So year-over-year home prices, this is kind of crazy, values have been up everywhere. Everywhere across the country values have gone up. Real estate values have gone up for the last how many years now, Jess? Six years?
Jesse: Six years, since, they bottomed out in 2011 and started coming back up.
Jeremy: So let’s talk about price changes. Okay?
Jesse: Seven years.
Jeremy: Yeah, seven years. So we look at slide 11 here. People want to know, I asked the question do you want to know how much your home is going to go up in value this year or down in value. Let’s look at 11, 12, 13. Those Jess, right? The mountain region, here is what is really cool. We have data right now. I can tell you how much values have gone up in the Pacific, Mountain, Mountain West, West North Central, East North Central, Mid-Atlantic and the New England states, or I can tell you the South Atlantic. I can keep going. We have all this data. Values in the mountain region, and if you want to know what the Mountain region is go straight down to Arizona and then go straight up to the Canadian border through the inter-mountain West. Values are up 8.9% in 2000, year over year for the last year. 8.9%. What about Utah? Do we have Utah? I think we do.
Jesse: There are two different, I think it is Utah is –
Jeremy: What are we year over year price changes? I am trying to remember if they have it.
Jesse: Year over year is 8.8.
Jeremy: 8.8%. So look at this. We have seen an 8.8% appreciation in Utah over the last year. So we do have that information. The United States, by the way, 5.1%. So we are outpacing, do you know what I mean? We are outpacing it. Now the question is asked isn’t it less affordable right now because values are up? Well, of course, it is less affordable because values are up. Right? And I do not want to interpret for anyone listening to our show today that values, that it has not become less affordable because values are up.
Jesse: Definitely.
Jeremy: Yeah, what we are simply stating is that because interest rates are so stinking low that it will likely be just as affordable to buy a home now, it will actually be more affordable to buy a home now than to buy a home that is reduced by $100,000 at an interest rate that is twice as high.
Jesse: Yeah.
Jeremy: It is just, that is just the way it is.
Jesse: Well, the likelihood that the market will go down by $100,000 is –
Jeremy: That is a low –
Jesse: The economy would have to stop again.
Jeremy: Yeah, that is a very low chance. So every single piece of economic data that we have is pointing to us returning to normal, healthy market levels, which means what are we looking at for price changes? Do we think values are going to go up? What do you think? What are they saying?
Jesse: So what they are saying overall for next year is 4.8 for the country, but in Utah here they are saying 4.7.
Jeremy: 4.7. So that –
Jesse: I think that is true. I think that the momentum that we have right now, it will take more than a little bit to stop.
Jeremy: Who is they? I am going to tell you who they is. This is Freddie Mac. National Association of Realtors. Fannie Mae, a company called Kay Schiller, CoreLogic, I could keep going.
Jesse: There was actually I think 104 different economists or groups that was in the study.
Jeremy: Yeah, yeah. So they went out –
Jesse: It is not just one guy.
Jeremy: They went out and they asked the specialists. There are the specialists and then there is the anyway. They asked the scientists. They asked the economists. They asked any and everybody who is a player in studying this information what do you think is going to happen to the home values in 2019? And in Washington County they are predicting, excuse me, not Washington County. Utah. Four point?
Jesse: 4.8
Jeremy: 4.8% in the state of Utah for 2019. Now your home. What does that mean? It is hard to say because we, your neighborhood is very, very case specific. And I am going to tell you that if you are selling a home in Stonecliff or Entrada, it is a very different situation.
Jesse: Yeah that is –
Jeremy: Very different situation than if you are selling your home in downtown St. George.
Jesse: Right.
Jeremy: Santa Clara.
Jesse: And we will throw a report that will cover that for Washington County, even for St. George because if you are talking Stonecliff, you are looking at probably about a year to two years of inventory that is for sale. If you are talking downtown St. George, you are looking at less than two months.
Jeremy: What do you mean by a year of inventory though?
Jesse: Well, if no other homes came on the market, it would take a year or two depending on what price point to sell every home that is on the market. Downtown St. George, it is less than two months.
Jeremy: Right.
Jesse: So it is a big difference.
Jeremy: How about that? Right? It would take one to two years, up to two years to go through all of that inventory. Can you imagine if cereal was sitting on a shelf for two years? Now there are a lot of preservatives in cold cereal. Right? But guess what? It would go bad, wouldn’t it? And what Jesse is saying is absolutely right. Downtown St. George, it is one to two months. Here is what that means. In two months, if nobody else put their home on the market, we would be out of homes to sell.
Jesse: We would be out of homes.
Jeremy: Okay, and by the way, we have specific areas. If you are thinking about selling a home, we have folks looking for homes and they cannot find them in this market. We played around last week, and we talked about our $1 Listing Program? Is it real? It is absolutely real.
Jesse: It is real.
Jeremy: So, you can sell a home for as little as a buck. Terms and conditions apply. Yeah, you do need to buy another home through us. And guess what? Well, what if I am not going to buy another home through you? We have a program for that, too.
Jesse: We have a program for you, too.
Jeremy: Which is the Save Up to $10,000 Program. So we are having some fun in the month of January. Save as little as $1250. But here is the deal, Jesse, what is that percentage? What can people hope for this year for appreciation?
Jesse: 4.8.
Jeremy: Yeah, we are going to hope for it. The only we are going to find out is –
Jesse: We will have a debate next January.
Jeremy: The only way we are going to find out is we are going to have to spend the next year.
Jesse: Figure out who is right and who is wrong.
Jeremy: I do not know if he is right. There you go. Thanks gang. Appreciate you watching and listening and share this on your Facebook page if you are watching with your friends. Over and out.

$1 Home Sale Program and GLUT of Homes Hitting The New Year’s Market (St. George Real Estate Morning Drive Show)

If you prefer to view and comment on Facebook vs. the YouTube video above, click here: Facebook Live. 

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com. 

Jeremy: Happy New Year. By the way, that was one of my favorite elements of the new year is we were at the grocery store last night at the Winn’s down there in the Washington Fields, and people are so fun. The produce guy was really cool. Theywere having a debate about sauerkraut by the way. I was a cilantro fan –
Jesse: What is there to debate about sauerkraut?
Jeremy: Well, I do not like it.
Jesse: Oh, okay. So that is in debate?
Jeremy: Yeah, it was a debate. Yeah, it was a debate. And then the produce guy started kind of pitching the sauerkraut. He was a great guy. And then as we walked away, he said Happy New year. I love that about the holidays. Happy Holidays and Happy New Year. It is fun.
Jesse: I would like to see it if people could keep that attitude or thought all year round. Why not be happy every day?
Jeremy: Yes, thank you.
Jesse: Well, I have been accused of that.
Jeremy: You do get accused of it, and you resemble the comment, and I will tell you that it is very similar to the whole 9/11. Remember when 9/11 happened –
Jesse: Yes.
Jeremy: Suddenly everyone in the country was fearful believer in God and very patriotic. That lasted about twelve months. But good morning to everyone out there. Jeremy Larkin, host of the St. George Real Estate Morning Drive. I have got multiple co-hosts in here. I have got Jesse Poll from the Larkin Group. Mike McGarry is here.
Jesse: I told Mike this morning we are happy he is back.
Jeremy: Yeah, it is nice to have him here.
Jesse: We do not like it when he is gone.
Mike: I will hang around for a little while.
Jeremy: Yeah, he has just has this thing dialed in. Yeah, I know. He is going to hang around about 30 days.
Mike: Pretty close to that, yeah.
Jeremy: Good morning, David. Love it man. Love it. 343 never forget. Absolutely right, David. Isn’t amazing, by the way, Dave, and Dave is a fireman, and one of my childhood friends. Literally, our families go way back. But this is not a political show. But it was crazy how patriotic and God-fearing we were for about twelve months and –
Jesse: And really how –
Jeremy: Then we were just like ah, we are busy now.
Jesse: And really how the country really came together.
Jeremy: The country came together. I will tell you. Crisis a very, very interesting gift and teacher for us. Is it not, Jesse?
Jesse: It is.
Jeremy: I want to share some New Year’s Resolutions. We ran a little Facebook thing where we said are you believer in New Year’s resolutions. I am going to share my theme for 2018. I think our listeners want to know what my theme is. Don’t you? Does anyone know, please say you do, The Christmas Story? I have it almost memorized, the movie The Christmas Story.
Jesse: We actually did not watch that this year.
Jeremy: It was on TBS and TNT for 24 hours straight. You do not even have to have the DVD, but I do have the DVD. So on the Larkin Group Facebook page, by the way, we will announce our winner this morning.
Jesse: Right on.
Jeremy: Somebody won $50 cash. The $50 cash is sitting –
Jesse: $50.
Jeremy: — on my desk.
Jesse: I saw that sitting on your desk.
Jeremy: Yeah, sitting on my desk.
Jesse: I thought it was for me. A gift.
Jeremy: Sorry, dude. Sorry. Sorry. Sitting on my desk. $50 cash. So I asked the question New Year’s resolutions or no? Chime in. Chime in. And I thought that this was very fun. We will talk about real estate. We are going to talk about selling a home for $1, and what happens every, $1. This is like, you know what you can get for a buck? You can get a drink at McDonald’s.
Jesse: Can you really still?
Jeremy: Oh, all the drinks are 99 cents. You can get some chicken nuggets. You can get a little French fry, a small shake, a parfait. Okay?
Jesse: Okay.
Jeremy: I do not even think you can purchase a pack of gum almost anywhere for 99 cents.
Jesse: I do not think so.
Jeremy: We will talk about that.
Jesse: Very few things can you buy for a dollar.
Jeremy: Yeah, for a buck. We are going to talk about $1 home sale program because we decided to have some fun in January. It is just for fun. But people, this is so interesting to hear what people said. Mark said yes. Natasha said yes, but not so much traditional New Year’s goals. More like intending to improve myself. I have chosen a word for the year. That is mine for the year. Mine is build. Relationships. Build our business. Build each other up. Beautiful. One of our past clients.
Jesse: I like that.
Jeremy: McKennon, did you know your daughter chimed in?
Jesse: Yes.
Jeremy: Yes, absolutely. We never know where we are going, but we always know where we have been, and we need new goals to set new heights to see how far we can get. It is all for naught. Is life even worth living? Right? I said kind of. What I do not like is the resolution because it is usually like a two-week campaign. I like more what she is saying which is we are looking, that idea of build. I love having a word for the year, and I have a theme, which I will share. But for me it is more like the new year is such a gift for new beginnings, and to kind of rethink and say where I have been. We know where we have been, she said. Andrew Young, absolutely yes. Cassie Segmiller, yes. Brett and Natalie Johnson, yes, and on and on. But let’s go ahead and let’s give congratulations to Cassie Segmiller who won the drawing for fifty bucks.
Jesse: Nice.
Jeremy: Yeah. We will respond on Facebook to her today. So here goes, Jess. I do not know how you say it. He is one of the famous, what do you call him, he is Tao. He is a Taoist. He is a Taoist. T-A-O. It is one of my favorite quotes. Watch your thoughts; they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny. So that is my theme for the year. Rather than a word, it is this idea of monitoring how my thoughts become my words and actions and habits and character and destiny and how much we mess ourselves up.
Jesse: Without even knowing it.
Jeremy: Oh, we do not even know it.
Jesse: This stuff happens so gradually that one day we wake up and realize that somewhere over the last 20 years I have become somebody I do not really want to be.
Jeremy: Yep, yep. So yeah, like the boiling pot of water. So hey, happy January. We are waxing a little philosophical, but guess what? It is our show. We will talk about whatever we want to talk about. Right, Jesse?
Jesse: It is your show. I will just follow along.
Jeremy: It is my show. Good morning. So gang, you need to understand that we actually are now broadcasting. There are, I wish I had my other phone. I would take a picture.
Jesse: Yeah, where is your other piece of technology. You do not have enough here.
Jeremy: I have another phone in my car. There are two phones on the countertop right here in two different tripods. One is broadcasting Facebook Live, and one is broadcasting YouTube Live.
Jesse: Right.
Jeremy: So if anyone ever wanted to know where you could watch this on YouTube Live, I should have put that in the comments. It is YouTube dot com, of course, but it is Go St. George TV. G-O-S-T George TV. We have got about 1300 subscribers there or something, and we have done very little live. So if you want to be on YouTube Live and that is your preference, see our YouTube channel Go St. George TV. G-O-S-T George TV or hang out on Facebook Live, and of course, all of our radio listeners, you are already on with us at 94.9FM, 890AM. Jesse, it is January 3rd, and there is a phenomenon that happens, especially in St. George because the Parade of Homes is six weeks from now.
Jesse: It is coming right up.
Jeremy: What is happening? You brought some data this morning.
Jesse: The data –
Jeremy: Every January.
Jesse – that I brought this morning is peanuts compared to what is coming.
Jeremy: Can I show them?
Jesse: Yep.
Jeremy: Anyone who is looking. This is his data. Three days.
Jesse: During the last –
Jeremy: I hope everyone is looking at this.
Jesse: Hey, every genius scribbles.
Jeremy: It is a 4×7 –
Jesse: Ask Einstein.
Jeremy: — scratch paper. I like it.
Jesse: In the last three days you have had 36 homes hit the market.
Jeremy: Last four days or two days? It is really two days.
Jesse: Two days. Yeah. So since the first. The first and second.
Jeremy: But there was not a first. See, the first did not exist. You could not put a home on the market.
Jesse: That is true. Because everyone was off.
Jeremy: That means in the last 24 hours 36 homes hit the market.
Jesse: Yes.
Jeremy: I did not mean to correct you, but –
Jesse: That is true.
Jeremy: — if you think about this –
Jesse: That is true.
Jeremy: — one day 36 homes hit the market. Holy cow. Okay?
Jesse: And what is coming over the next two months will be probably 1100 homes. I am pretty sure last year it was about 1100 homes between January and February.
Jeremy: Good grief.
Jesse: But before the Parade of Homes, and by March, that number will be 1500.
Jeremy: 1500.
Jesse: Every year.
Jeremy: 1500.
Jesse: And it is just gearing up for our spring season. Especially the Parade of Homes.
Jeremy: I am just looking at some of this data myself. Wow.
Jesse: One thing that is interesting. We have been talking about this is the price reductions. I went and pulled those. There have been 29 reduced prices in the last two days.
Jeremy: Twenty-four hours.
Jesse: Well, this is from the 31st because some of us did work Monday.
Jeremy: Define a price reduction for the listeners.
Jesse: That is somebody that is on the market currently, and they have reduced their price because they realized they were too high.
Jeremy: Yeah. Because look if the market is not supporting what you are buying, what you are selling –
Jesse: What you are selling then you have got –
Jeremy: Yeah, it is very simple. There is Dillard’s had their big annual sale. Oh man, I wanted to go. I am such a shopper. Every January 1st, New Year’s Day, a lot of retailers are closed. They put all of their clearance on 50% of the clearance price, and the place is like a zoo. Right? Well, why? Because the product has not sold –
Jesse: Yep.
Jeremy: — and new product is coming into the store, and the challenge you have as a homeowner is that new product is coming in the store –
Jesse: Right.
Jeremy: — and it is called other people selling their house. Right? So this has happened for how many Januarys in a row?
Jesse: Geesh.
Jeremy: All of them?
Jesse: Yeah, probably since the Parade of Homes started.
Jeremy: Yeah, yeah.
Jesse: Because that is really what drives January and February is the Parade of Homes. So how long ago did that start? 20-25 years ago?
Jeremy: Yeah, and I want to be clear about this. He said it drives it. It drives people’s psychology. It does not actually drive sales in St. George.
Jesse: It does not drive the market, but it drives them wanting to be on the market by then.
Jeremy: Yeah, yeah, this is absolutely true, and it will be interesting to see because we had, for instance, one luxury real estate firm here in town put five homes on the market yesterday. Cancelled the listings in the fall, late fall, and they put them back on yesterday because the belief of every seller, and by the way, if you want to see a video of me talking about that from the chair lift at Bryant Head yesterday.
Jesse: Oh, a new one?
Jeremy: Yeah, you can check it out. A rash of luxury homes hitting the market after January 1. What does this mean? Published 18 hours ago. So I shot a video yesterday at Bryant Head. I was with my kids because the kids all went back to school this morning. Second greatest day of the year, by the way. First greatest day is when they go to school in August.
Jesse: Yes.
Jeremy: And it was interrupted by a phone call, which was fun. The live video. But you might want to check that out. It is right on the Larkin Group Facebook stream. Just look up the Larkin Group and you will find us. But I said what does this mean? Well it means that people believe –
Jesse: That they will sell their home during the Parade.
Jeremy: Yeah.
Jesse: They believe that more high-end, first of all, high-end buyers come for the Parade. And that might be true. But are they really buying homes?
Jeremy: Yeah.
Jesse: But people really believe that not only can they get a buyer at that time of year, they can get a buyer that will pay extraordinary prices.
Jeremy: Yeah. Oh yeah. Right. Let me share something cool with you folks. If you hop on our Facebook stream, we have, so we have been on this show for almost six years.
Jesse: Wow.
Jeremy: Five plus years we have been on the radio.
Jesse: Has it been that long?
Jeremy: It has been a long time, and we have been delivering content via the show, via Facebook, we have a really great video blog, and a lot of our listeners have received those video emails. I am looking at our Facebook stream. This is just the last few days. Excited about buying a home this year? Here is what to watch. These are articles that we have produced.
Jesse: Yep.
Jeremy: Let me share a few more. Selling For Sale By Owner. Questions and comments and concerns. Where is the market headed in 2019? Where is it headed? How to save thousands of dollars in interest on your mortgage. What makes a house a home for you and more and more. We have produced so much content for so long. And by the way, where is the market headed in 2019? A couple of things that we will give you, and then we are going to tell you about something really fun that we are doing. And folks, if you enjoy our program, we are going to ask you for your help today. For the amount of content that we put out compared to the ratio of that to asking for help is pretty low, pretty high to content and low asking for help. Where is the market headed in 2019? This is a really great infographic that we have on our Facebook stream, and again, look up the Larkin Group or Facebook dot com slash The Larkin Group. So what do they predict? They predict that home prices will appreciate across the country 4.8%. Historic home appreciation is 3.6, averaging all the years together.
Jesse: Averaging –
Jeremy: Every year.
Jesse: Okay.
Jeremy: 4.8%. St. George? Jesse says yes. I say no.
Jesse: Yeah, we have a debate there. It is going to interesting next January when we pull, when we come out to really see what happened this year.
Jeremy: Yeah, I say no. I say that we are not going to have any appreciation in Washington County. I think we are going to be exactly static. Interest rates have risen, but they are currently at the lowest point that they have been in six months.
Jesse: Yep, they just went down again.
Jeremy: Yeah, guys, the lowest point in six months. Interest rates right now. Interest rates, amazing, so home prices, Core Logic, which is like the biggest national prediction type firm saying 4.8% appreciation. All four major reporting agencies believe that total home sales will out pace 2018. That is interesting. And interest rates are projected to rise. Are projected to rise. However, let us remind you that in the year 2000, interest rates were 6.2%. In 1990, they were 8.1%. In 1980, they were 12.7%, and in 1970, 8.86. We are so far below everything. Now, I produced a video that has not been released yet, and it is about seven and a half minutes. It is four things you have to know about St. George Real Estate moving into 2019. It is upcoming, forthcoming. It will be on our YouTube channel and on our Facebook page in the next week. So, Jesse, the homes that hit the market this morning. Price ranges?
Jesse: Well, you have got six of them under 250, and that is going to be a problem for your average worker here in St. George.
Jeremy: So only 6, 36 homes hit the market, and only 6 of them –
Jesse: Were under 250.
Jeremy: — were under $250,000.
Jesse: Which is where your average worker can afford a home.
Jeremy: Yeah.
Jesse: You have got six between 250 and 300. That is a pretty good number. That is pretty solid.
Jeremy: Okay.
Jesse: You have got seven between $300,000 and $400,000, six between four and five, and then 11 over 500,000.
Jeremy: Holy smoke. Eleven –
Jesse: Eleven.
Jeremy: — of the 36. So our greatest, over $500,000.
Jesse: Actually, let’s break that down. You have got 3 between 5 and 6, and then 8 over 600.
Jeremy: So I need to say, folks, that is going to be a problem. Just so you know. It is going to be a problem for the average, like you say, the average worker.
Jesse: Yeah, because your average household –
Jeremy: I actually like the word worker. It is like the average, typical, employed human being.
Jesse: Right because your average household income in Washington County is 50,000.
Jeremy: Yep.
Jesse: So somebody making $50,000 a year, how much house can they afford?
Jeremy: 210.
Jesse: Right, so that is –
Jeremy: Maybe 250. If they have a good down payment, 250. So that will be a challenge, and I am here to explain to our luxury homeowners in Washington County, it is going to be tougher than you think it is, and you had better take the job of selling your home very serious. And if you are thinking oh well, this sounds negative, maybe it is not the year. No, remember values are at their highest point in ten years.
Jesse: Yep.
Jeremy: We are at the top. You know the waves out in the ocean if you have been on the ocean. They grow up and they go down. Kind of like when you swim out from the shore 50 yards, and you are floating out there with your friends.
Jesse: Especially –
Jeremy: We are at the top.
Jesse: Yeah, especially up in the higher price points because if you, once you step over $600,000, the amount of inventory just increases astronomically. It goes from 4 to 5 to 18 months.
Jeremy: Yeah, we are at the peak, so you had better take that very serious and work with an agent who is very serious about telling you the, it is funny, there is a script that we use in real estate. We are trained to use it. Hey, Jesse, on a scale of 1 to 10, how honest can I be with you? Well, what do people always say?
Jesse: They say ten until you do it.
Jeremy: There is a reason we are trained to ask this.
Jesse: Yeah.
Jeremy: Because we have to set up the homeowner to actually hear the truth. Hey Jesse, do these pants make me look fat? You are like the fact that you asked me that means that you already knew the answer. Right? The seller, does your price make you look fat and greedy? Kind of. It sounds so terrible, but here is why this is so important. Because if you are thinking well, isn’t it marketing that is going to sell my home? Oh, it is marketing with the right price, and if you are not priced correctly, you will not sell your luxury home in 2019. It is not happening.
Jesse: Yeah.
Jeremy: You will spend the next year of your life, you hear the passion, folks. I emphatically, you will not sell your home if you are not very competitive in that luxury home market. There is so much inventory. We are talking about years, and the market is at its peak.
Jesse: I cannot tell you –
Jeremy: Good grief.
Jesse: — how many homes in the luxury market that we have seen that have been on the market for a year or two off and on.
Jeremy: But we have seen homes that have been on 500 or 1000 days.
Jesse: What is interesting is that even the worst market, luxury homes sold within four months. Very rarely does it take a year to sell a home.
Jeremy: You are right. You are absolutely right. This is just a completely different market than say downtown St. George. All right. We are doing something fun.
Jesse: All right. Let’s do this.
Jeremy: McDonald’s Dollar Value Menu. The Larkin Group Dollar Menu. The Dollar Menu. Okay.
Jesse: We have a Dollar Menu now.
Jeremy: So here is what you have to do. Yeah, we do. And the dollar menu is just like this. We have got a program that we are running for January only. So I was sitting there over the holidays thinking why are we not having more fun? Seriously. We are dealing with people who are stressed out.
Jesse: Yeah, they are.
Jeremy: Think of some of the transactions we are dealing with right now. Folks, a domino succession, chain, they can only, we have a client. Incredible people who, think about this, the spouse is going to pass away in the very near future because of some serious health elements. The other spouse cannot physically afford to live, will be homeless or bankrupt if they do not sell the home now because the retirement and Social Security will go away when the husband passes away.
Jesse: Yep.
Jeremy: They have to sell the home. They cannot live somewhere if they do not sell the home first, but if they do not sell the home, she is going to be homeless. And by the way, prices are high in St. George, so now they are trying to figure out what she can possibly afford at her new income. Do you see this? And, of course, then you are depending on the buyer if their home, it is crazy. Right?
Jesse: Yeah, it is kind of emotional.
Jeremy: So then you have another seller on the other end who is hoping these people close on their sale so they can make the purchase of their home. It is very complicated. So I said why aren’t we having more fun? So we are going to have more fun. You can sell your home for as little as one buck. Now you do not need to sell it in January. You just need to enroll in the program in January. $1. I do not have time to get into all the details, but I will give you the one detail. The absolute specific criteria is you have to buy another home through us. And by the way, do you know that when you buy a home, you do not pay a commission? Because remember the seller pays the commission.
Jesse: Yep.
Jeremy: There are other terms and conditions. You have to be born in 1957. You have to have an odd number ending your Social Security number, and you have to have sandy blonde hair. I am kidding. You know those crazy, it is actually not that crazy. The terms and conditions are not crazy at all. But you do need to buy another home through us because we are literally going to charge on the listing side a dollar if you buy another home through us. Meaning no income for us on the listing side. Okay? Here is an alternate. If you are not buying home through us, we said okay, then what can we do? Because we want everybody to win.
Jesse: Right.
Jeremy: If you are not buying another home through us because meaning you are going to rent a home or you are moving out of town, you still can save up to $10,000 selling your home. And you will save no less than $1250. Right?
Jesse: Yep, $1250.
Jeremy: One thousand two hundred and fifty dollars at the lowest price point. It is based on price point. Most of our clients are going to save $2,500 selling a home. That is the most typical segment will be at $2,500.
Jesse: Right.
Jeremy: There is no gimmick. There is no qualification. If you sign a listing agreement with the Larkin Group in January, you will be getting that discount or you can be in the dollar program. And by the way, both apply. So the dollar programs applies if you are trying to buy another home. You can work through both. Now, here is the deal. We made a goal. We sat down as a team several days and said what do we want to do? And last year we helped about 180 clients buy and sell real estate. We decided we were going to procure 90 families in 90 days, in the first 90 days of 2019. We decided that for our families, now again, folks, earlier I said we have given you this content for years and years and years, and we are asking for your help. We are asking today for you to be mindful of the Larkin Group as, 90 in 90 is almost unheard of. Okay?
Jesse: Very few people –
Jeremy: Very few people have pulled this off. We want to find 90 great clients like yourself that need our services. It is a win-win situation. We are doing the dollar home sale program or the save up to $10,000. If you or someone you know has thought about selling, we are asking will you send them to us?
Jesse: Have them give us a call.
Jeremy: Will you let us talk to them? You do not have to commit them to anything. There is no obligation to talk to us, but you can reach us on Facebook dot com slash St. George Experts or at Sold in St. George dot com. It is going to be fun to report what happens when we get to the end of these 90 days to see what we do. We are going to have a good time this year.
Jesse: It is going to be fun.
Jeremy: It is going to be a great year in St. George real estate. Hope you guys can help us, and we will guarantee we will help you. Thank you.

What You MUST KNOW About St. George Real Estate in 2019! (St. George Real Estate Morning Drive Show)

 

If you prefer to view and comment on Facebook vs. the YouTube video above, click here: Facebook Live. 

Below is the actual St. George Real Estate Morning Drive show, hosted by St. George Real Estate Agent Jeremy Larkin, word for word! Enjoy and please share if you find it valuable! 

Jeremy Larkin and The Larkin Group @ Keller Williams Realty can be reached by calling 435-767-9821, or emailing sales@gostgeorge.com. 

Jeremy: Good morning, ladies and gentlemen. Hey man, talk about shaking off the Christmas, what is it, Craig? I do not know. It is the Christmas cobwebs. How does that sound?
Craig: I can hardly talk this morning.
Jeremy: Well, listen. I am glad you are awake. I am glad you are here. Tell you what. The studio is largely empty, but guess what? We are here. We are here. Jeremy Larkin, host of the St. George Real Estate Morning Drive, live at the Cherry Creek Radio Studios. And the cool part is Jesse and I are wearing similar, similar outfits this morning.
Jesse: We did not plan that.
Jeremy: Listen, this is a new Christmas sweater I have got on. And you know what? Here is the deal. I can go here. I can go hoodie. Do you want to go hoodie?
Jesse: Let’s do it.
Jeremy: I can do the whole show like this. For all of our Facebook live folks, you can see me.
Jesse: Santa brought all my grandkids pajamas with hoodies.
Jeremy: Nice.
Jesse: They were pretty cool.
Jeremy: One piece? Like a one-piece pajama?
Jesse: Yeah.
Jeremy: Nice. Man. Santa, let me tell you about that guy. He knows exactly what kids needs. He knows exactly what grandkids need and granddads and everything else. I like it. You had a good Christmas, didn’t you?
Jesse: Oh yeah. All the kids were here. And the grandkids. It was first –
Jeremy: Beautiful, man.
Jesse: — time I think ever that we have had all the grandkids in one place for more than a couple of hours.
Jeremy: Really? Really? All of them? As in all of them?
Jesse: All four. Yep.
Jeremy: All of them.
Jesse: It was awesome. Last night, the house was just tore up.
Jeremy: Just gone.
Jesse: I got in trouble because I was just sitting there relaxing.
Jeremy: Like what do you want me to do, honey? I am just trying to –
Jesse: Can you not see all these toys laying around?
Jeremy: I am just trying to enjoy myself here.
Jesse: No, not really. Are there toys there?
Jeremy: Well, you know what, let me tell you something. My kitchen was, the house was a disaster. Santa came through. He must have been there at 1am, and then things were fine. I cleaned up, and then the kids decided to do what kids do, and then it was a mess, and then I cleaned it up yet again. Cooked a big breakfast. Do you know what hootenannies are, Jesse? Have you ever heard of them? Do you know what a hootenanny is?
Jesse: No.
Jeremy: Hootenanny is a German pancake. There you go. So a lot of people know what a German pancake is. Have you had German pancakes?
Jesse: I have heard of German pancakes, but I have called them German pancakes.
Jeremy: It is incredible.
Jesse: Or is that crepes?
Jeremy: Nope. Cup of flour, cup of milk, six eggs, salt, you melt a stick of butter in the pan. You mix that all together in the blender. You throw it in there. You cook it for 25 minutes.
Jesse: Hootenanny.
Jeremy: Hootenanny.
Jesse: Did I say it right?
Jeremy: Yeah, I am not sure where that, I would love to know from my mother where on earth hootenanny came from. But we had German pancakes. It is a tradition. Always do it. And guess what? Today is December 27th. The question of the morning: Is it going to snow in St. George today? What do you think, guys? Do we think it is going to snow in St. George today? What do you think, Jesse? Yay or nay?
Jesse: I doubt it. I doubt it.
Jeremy: They are saying maybe. If you are watching us on Facebook Live, chime in. Comment. Tell us what you think. Craig, what do you think? Look, you are the traffic guy. You are the weather guy.
Craig: If you head north probably. I am not sure. It was flurries this morning just barely, but –
Jesse: Yeah.
Jeremy: Yeah. Maybe. Where do you live at?
Craig: Parowan.
Jeremy: Yeah, so you were getting snow then.
Craig: Yeah.
Jeremy: How much snow was down on the ground?
Jesse: Yeah, definitely.
Craig: Not much. Maybe an inch or two.
Jeremy: I knew you lived north, but I did not you were Parowan.
Jesse: That is a dedicated radio dude.
Craig: It was (indiscernible)
Jesse: You are driving what? 65 miles?
Craig: Yeah, about. It is an hour.
Jeremy: Oh, I love Parowan.
Craig: Yeah, I do, too.
Jeremy: There is a building I want to purchase in Parowan downtown.
Jesse: We were just talking about that.
Jeremy: Yeah. I was up there last week, skied, came down, ate at Calavario’s. I love that place.
Craig: Oh yes. I do, too.
Jeremy: It is such a fun little family restaurant. The vibe is amazing.
Craig: Yep.
Jeremy: Great people. Well, we have got Craig Bennett, sticking his neck in here for Mike McGarry. Mike, as they say, his days are numbered, but not that kind of numbered.
Jesse: Right.
Jeremy: This guy, we have got an upcoming change of careers, as in he is going to go to the career that we all want.
Craig: Yes.
Jeremy: The retirement career. So we are going to talk to him. We are going to have a fun show with Mike this next month and talk about his history in radio and career. When I was quite young, Mike was calling a lot of the sports here in St. George.
Craig: Yeah, 41 years.
Jeremy: Yeah, that is a long time. It a long time.
Jesse: That is a long career on the air.
Jeremy: It is going to be a very interesting time as Mike transitions out and we have a new co-host here in the studios. So it is December 27th, 2018, and we had some fun this last week. I thought this would, before we transition, I thought this would, last week, we talked about five things you absolutely have to know about the real estate market, specifically the St. George real estate market –
Jesse: Right.
Jeremy: — as we move into 2019, and this would be anyone who is thinking of buying or selling, and let me tell you who else that would cover because there is really two groups of people. There are people who are thinking of buying and selling, and then there is, might I say there are three. There is a second group that would buy and sell under the right conditions.
Jesse: Right. If I could do this, I would do that.
Jeremy: Yeah, if I could get blank, I would do blank. And then there is another group that it has not necessarily crossed their mind. And this is often, for instance, we have talked about out-of-state homeowners or landlords who go, wait a minute. You mean to tell me that the market is probably at 10-year peak? Well, I do. I do mean to tell you that very intentionally.
Jesse: Absolutely.
Jeremy: We are most certainly at very close, if not at the peak, for this cycle. This might be someone who decides well I could buy an investment property? Well, absolutely you could buy an investment property. You have no idea. There are a lot of things you could do that you are not aware that you could do. These are regular business owners. People who could come in and purchase an investment property, Jesse, and have a stranger pay the mortgage every month plus some profit for the next 10 to 20, 30 years, and you would have quite a little nest egg. So there are three groups. I want to buy or sell. I would buy or sell under the right conditions. I have not really even thought about it, but now that you are suggesting it to me.
Jesse: Yeah, that creates a whole other show right there about (indiscernible)
Jeremy: Absolutely.
Jesse: Really taking the time to do your homework there.
Jeremy: Exactly. That is exactly right.
Jesse: Because that is a long-term haul if you are buying right now.
Jeremy: Well, it is, but it is always a long-term. It is always long-term. So real estate investment is always long term. Buying and flipping homes is something people love to talk about. That is not a play that 97.93% of the people, you know what, no. That is not a play that 99% of the population is ever going to make in their whole entire lifetime. So legitimately, 1% of your real estate investors out there are going to be in the flipping game. And then there is a list of reasons. And that is also a separate show. But we are going to recap those five points, but I wanted to share something kind of fun. This last week, we put a post on our Larkin Group Facebook page, and we are going to give you one shot, one last shot, Jesse. These folks at winning the gift basket.
Jesse: All right.
Jeremy: We said Christmas Eve, but there was a kind of a fun little energy to these comments, so we have a post that says Merry Christmas from the Larkin Group. Would you like a little Christmas boost from the Larkin Group? And if you want to know where this is at, folks, Facebook dot com slash St. George Experts, and you can comment, and you may win the gift basket. Share something on your Christmas list in the comments below, and we will choose one lucky winner from all of our commenters. Right? Commentors. So I thought it would be interesting, because we are in the Christmas season to share what people talked about. You ready?
Jesse: All right.
Jeremy: Do you want to know what they said?
Jesse: I am ready.
Jeremy: Colby wanted a backyard firepit area. Yes or no? We are going to go through each one, and then you tell me yes or no whether you want it. How about that?
Jesse: I have one.
Jeremy: Beautiful.
Jesse: It is just a makeshift right now because it is in the process, but we just had a fire the other night.
Jeremy: And it was nice.
Jesse: It was nice.
Jeremy: A phone call from our missionary from the Abbotts. Well, yeah everybody, these kids that go on all these LDS missions, they only talk to their parents on Mother’s Day and Christmas.
Jesse: Wow.
Jeremy: So it is four calls in two years. That is how that works. That is a long time. Right? So the Graphs, or excuse me, the Abbotts, a call from the missionary. Lynda Wallenfels. She is my good friend. She wanted someone to paint her house. Yeah, I would take that.
Jesse: That I would do because I am right in the process of getting ready to do that.
Jeremy: I love this. Jenae, listen, I hope you are listening Jenae Bang, who is a long-time friend of ours. To sell our house. I responded, yeah, we know how to do that. Andrew Young, who creates our Facebook graphics, all he wanted was an Amazon gift card. That is very simple.
Jesse: I would take that.
Jeremy: You would take it? Okay. How about the Esplins, since I bought all my own gifts, I am excited to open my Instapot.
Jesse: Nice.
Jeremy: I like that.
Jesse: I should just go buy one of those because everybody is talking about them.
Jeremy: Yeah, you need one.
Jesse: I do bone broth every two weeks.
Jeremy: You need one. You need one.
Jesse: In my 20-year old pressure cooker.
Jeremy: You do, man. I will rapid fire these out. Somebody wants new dishes, a sound system for their family room. Steve wants a new, hey a new shave, a nice Christmas shave. A safe trip across the country when we move back to St. George. Welcome back, Quinton and Maury Jensen on the way back. Robert, good morning, my friend, a new backyard landscape. That is cool. We can do that for you.
Jesse: I like that.
Jeremy: St. George Day Spa. Michelle wanted, not Michelle on our team, another Michelle, a full day at the spa. That is all. Jamie Mecham, a Chicago Bears sweater or t-shirt. Somebody wanted our troops to return safe and to be able to speak to their families at Christmas. I think that is fine. Jesse Poll here, you wanted a fancy drone. Did it happen?
Jesse: Not yet. That is a ways out.
Jeremy: Keep the intention out.
Jesse: I do not just want to go buy a cheap one. I want to really plan for this.
Jeremy: I love this. Probably my favorite one, and there is a picture of a tiny, adorable baby with two Christmas stockings that are bigger than the baby –
Jesse: That we already have.
Jeremy: Some money to finish our adoption next month, Tim shared.
Jesse: That is a cool one.
Jeremy: That is very cool.
Jesse: That was very cool one.
Jeremy: So I think it is fun to see what people are talking about. It is Christmas time. These are the things that folks are thinking about, and these are some good answers, some really great answers. If you want to comment this morning, we will draw at noon today. Facebook dot com slash St. George Experts, and that post is pinned to the top of the page. You will see the Merry Christmas and go from there. I better plug this laptop in. It says it is going low.
Jesse: Imagine that.
Jeremy: What do you think? Talk to me about an article that we shared yesterday. Well, we shared it with our team yesterday.
Jesse: Right. Well, this –
Jeremy: The market is shifting.
Jesse: It is.
Jeremy: We have sellers wondering why their homes are not selling. Give us some feedback.
Jesse: We are still in a really strong market even though all over town people are talking about a shifting market. There is still less than four months of inventory on the market. So that is still considered a really strong market.
Jeremy: Right.
Jesse: But there is about 30% or 40% of homes that still fail to sell for whatever reason. They go on the market and they come off unsold. Now there are things that you can do about that. So there are five most common reasons where a home, why a home will not sell in the strongest market.
Jeremy: Let’s hit them fast. I want to hit these because, and then we are going to wrap up the show with a recap of the five things you have to know.
Jesse: Okay.
Jeremy: So what are the five reasons? Because, Jesse, the reason we are talking about this specifically is it is December 27th. On January 1st, which is next Tuesday, there will be a record for the year, number of what we call expired listings. And for our listeners out there, an expired listing is a home listing, the home was on the market for typically six months. Sometimes less. Sometimes more. But typically six months, and it did not sell. And remember that these sellers, these homeowners when they put their homes on the market six months ago, the last thing, they would have had a dialogue that looked like this and tell me if I am close.
Jesse: Okay.
Jeremy: Jesse, how long is your listing term?
Jesse: Six months.
Jeremy: Great, great. Okay. It is June, so that would be the end of December. Well, gosh, there is no way we would not have our home sold by Christmas, right?
Jesse: Oh sure. Yeah.
Jeremy: Yeah.
Jesse: Probably sixty days we will have it sold.
Jeremy: Yeah, okay. That was six months ago.
Jesse: Right.
Jeremy: And now these listings are going to expire. So there are a large number of the home-selling population who are saying what the heck happened? And the market shifted a little bit. What are the five things, five reasons a home does not sell? And we cannot drill the details, but what are they? And then we are going to share this to our Facebook page this morning as well. Go for it.
Jesse: So number one is price.
Jeremy: Number one is price.
Jesse: Number two is the condition of the house.
Jeremy: Bingo. Okay. Keep going.
Jesse: Three is the seller’s motivation.
Jeremy: Okay.
Jesse: Four is the marketing plan, and number five is lack of communication with your agent.
Jeremy: Okay, let me ask you a couple of things here. What do we have, of those five, read those back to us again.
Jesse: Price.
Jeremy: Price.
Jesse: The condition of the home, the seller’s motivation, marketing plan, and the communication or lack of communication with the agent.
Jeremy: So how many of those do we have? Which of those items do we really have control over?
Jesse: We have control over the price, the condition, and the marketing plan, and well, the communication.
Jeremy: I guess we could communicate.
Jesse: So the only thing we cannot control, and I would even say the seller cannot control, is their own motivation. They are going to have, it is going to be what it is unless they have a change in circumstance or a change in perception.
Jeremy: What do we mean by motivation though?
Jesse: Well, I really have to move. I have a new job in 60 days. I have to move versus well, I would sell it if I could get the right price.
Jeremy: If I could get the right price.
Jesse: If it could really be the perfect condition, I would sell. So that is what we mean by motivation.
Jeremy: Right. I think this is really interesting. So four of those five factors, that is what is kind of interesting about this situation is you actually have control over 80% —
Jesse: Yes.
Jeremy: — of the issues.
Jesse: Right.
Jeremy: Here is what we do not have control over, which are not even listed. Exceptionally cold weather, a massive snowstorm, a government shutdown, 2013.
Jesse: Location.
Jeremy: We had both of those in 2013, and they hurt the, location unless you have a mobile, you cannot even move a mobile home. Right?
Jesse: Right.
Jeremy: You cannot control location. You cannot control economic conditions.
Jesse: Right.
Jeremy: We cannot control public perception –
Jesse: Right.
Jeremy: — of the market.
Jesse: You have to meet that right where it is at.
Jeremy: Yeah, that is just reality. So we actually have control over 80% of these factors. We can control the price we are asking. We can control, you as a seller with a good agent, as professional real estate marketers, we can absolutely control the marketing that we are doing for a home.
Jesse: Right.
Jeremy: Okay? We have full power over how much we communicate with the seller, and most importantly, what we communicate with the client.
Jesse: Right.
Jeremy: By the way, us talking to you everyday does not change anything. Us communicating what matters will change something.
Jesse: Right.
Jeremy: So when we talk about these kinds of things, look folks, there are a large number of homes that just are not selling, and we are moving into 2019, and the market has been hot, and there is a perception that well, maybe the market is not good anymore. Right? Maybe the market is not good anymore. The market is great. Jesse, of all of those issues that you just listed, what is the overarching, number one, primary issue that is almost always the issue?
Jesse: Price.
Jeremy: Yeah, it is price.
Jesse: It is typically always price.
Jeremy: It is. It is. Right? Because there is a market, it is interesting. We have talked about this for a while on the show that Red Bull is one of our sponsors. I had to wink at Craig there. If you consider that I pay for their product and they put it in here. I have cut back on my Red Bull consumption greatly. I have got tangerine this morning. Now Craig, you realize this is 100% pure Florida orange juice in this can. Okay. Maybe it is not. It is interesting though. If I go to, I went to the Sinclair here on Bluff Street this morning. I had myself a really good breakfast, but I needed a drink. It is two for five bucks, this product right now. Do you know what the price is on this product at Maverick?
Jesse: I have no idea.
Jeremy: Do you want to guess?
Jesse: Four bucks.
Jeremy: Well, it is two for five bucks at that store. What do you, now I have given you a hint.
Jesse: Actually three-fifty-nine.
Jeremy: Okay. What do you think the price might be, Craig? If it is two for five at this Sinclair, what do you think it is at the Maverick, their competitor?
Jesse: Oh, at the, oh okay.
Jeremy: It is also two for five bucks. Guess what it is at Chevron? It is two for five bucks. Should I keep going? That is the market for these Red Bull cans.
Jesse: See, I was busy messing with my, my headphones keeping coming off, so I did not hear you correctly.
Jeremy: But it is a great question because it catches you off guard. That is why I ask it. There is a market for a product, and the reason I, it is just so funny this morning, I was thinking about it. I thought it is two for five everywhere. Or whatever, five-twenty-five. I do not know what it is. It is around there. Everywhere they are selling this at that rate. Under what circumstances would you pay two for six if you knew you could always get them two for five? Well, I do not know. If I were in a desperate situation and it was a long drive. Is it a long drive to any gas station? Craig has got three or four great ones in Parowan. There are two I love.
Jesse: (Indiscernible)
Jeremy: I love the Maverick, and I love the new whatever you call it out by the freeway. What do you call it?
Craig: Oh yeah, it is KB.
Jeremy: KB. Those are both great.
Jesse: What is interesting though is people will drive clear across town for the best gas price.
Jeremy: They will. They will. They will kill themselves.
Jesse: They will do the same thing for a home.
Jeremy: Yeah, so, so –
Jesse: Get the best value.
Jeremy: Isn’t that amazing? So I understand that your home is special, and I say that with a wink and a nod, because we all think our home is special. And I understand you have the best children. I do not know. Some of the listeners are like no, no, no. We just did Christmas. I assure you I do not have the best children. No, my kids are great. They are happy. They are healthy. They loved Christmas.
Jesse: And they are fighting just like everybody else’s.
Jeremy: Yeah, they were. They were. But the point is that there is a market. Price will always be the number one, overarching factor that is affecting your home’s, Jesse, what factor does this price solve for a home seller? Name some things that price solves.
Jesse: Price?
Jeremy: Yeah.
Jesse: Well, it will solve, if you are at the right price, you will actually get showings.
Jeremy: But what will it solve? What are the problems it solves? What if my home is by a busy road?
Jesse: Then there is no other way to go but to price it correctly.
Jeremy: Oh okay.
Jesse: Because a buyer is going to look at that –
Jeremy: What if I have a crappy view?
Jesse: Well, that is definitely going to affect it.
Jeremy: What if I have no backyard?
Jesse: Definitely going to affect it.
Jeremy: What if I need to renovate my house or replace my carpets?
Jesse: Then it is price.
Jeremy: What if the buyers are not real excited about buying homes right now?
Jesse: Then it is going to be price.
Jeremy: What if interest rates are rising?
Jesse: It would be price.
Jeremy: This is a fun conversation, isn’t it? Is there any issue that price does not solve? Any issue? Is there any single issue? Let’s pretend the government shut down today, and you could only buy a home with cash. What factor would solve the issue for any seller?
Jesse: Probably price.
Jeremy: Price. But Jeremy, everyone is going to stop buying homes. Everyone will not. Everyone will not stop buying homes. That has never happened ever in the history of housing. It has never happened.
Jesse: (Indiscernible)
Jeremy: Right?
Jesse: Yeah.
Jeremy: Price solves every issue. Why homes do not sell in a strong market, let’s give you things you need to know before they move into 2019. Right? We still have a strong market. Jesse, you know these from last week. Let me review them and you ping in here. Number one, interest are or are not rising? They have been.
Jesse: They have been. They have been going up and down, but they are probably going to continue to go up.
Jeremy: They are going to continue to go up.
Jesse: They say they are, but they are just not sure how fast they will let them go up.
Jeremy: So this is number one. Interest rates have risen. They are rising, and you cannot, we talked about putting the pedal to the metal on your car and just drive it at full speed indefinitely. Number one, you will run into something. But number two, it will run out of fuel. The housing market has been on crazy, crazy, crazy pace for a long time. Number two, we are not in a housing what?
Jesse: Bubble.
Jeremy: Yeah, we are not in a bubble. This is not a bubble. And what is it that Chantry Abbott always shares with us, Guild Mortgage when he comes in here, about qualifications for loans now?
Jesse: They are actually a lot better than they were in 2005, 6, and 7. They are still pretty strict.
Jeremy: Yeah, people are actually –
Jesse: You still have to qualify.
Jeremy: Yeah, people are actually qualifying for homes.
Jesse: And they still check your qualifications.
Jeremy: They do.
Jesse: Pretty harshly. I just went through a refinance.
Jeremy: Yeah, they did. They are like you had a receipt for gas from 1998. Is that in the wallet? Did you keep track of that?
Jesse: Right.
Jeremy: It is a file.
Jesse: Where did this money go out of your checking account? Where did it come from?
Jeremy: Exactly. And so I am a little out of order. Number one, interest rates are rising. Number two, we are not in a housing bubble. We are not going to have a bubble burst. Number three, which is connected to number one, which is why I say I am a little out of order. I have some scribbled notes from last week. Rates are rising for a very good reason, which is what?
Jesse: Well, they have been holding them artificially down, and we either let them go back to natural or we are going to cause more of a problem.
Jeremy: Because the market is healthy –
Jesse: Yeah.
Jeremy: — we can do that.
Jesse: Right. They have been holding them down to stimulate the economy.
Jeremy: So if you have got a teenager and did you notice that if they follow the rules and they earn trust, and they do what mom and dad ask that between 12 and 14 and 16 and 18 that suddenly some of the boundaries are lifted, and a little more freedom is given —
Jesse: Interesting to note.
Jeremy: — to that child. Right? The same thing happened with the economy. The government comes in here and puts, originally they put a tourniquet on because literally we were bleeding out.
Jesse: Right.
Jeremy: Okay? Then we did surgery.
Jesse: Yeah.
Jeremy: Then we stitched it up. Then we had a cast and a sling. We are getting back to health in the economy, so the government says all right, we do not have to suppress interest rates artificially anymore.
Jesse: Yeah.
Jeremy: Interest rates are going up, and they are going up because the economy is actually doing great. One of the massive misconceptions that happens when a market starts to shift a little bit, as we wrap up today, is it slows down a little bit and people go oh, the market crashed. The market has not crashed. It is doing fantastic. Okay? Two minutes. Perfect. Okay. I love this. I love this. Number four, renting, excuse me, buying is again, and has always been, a more profitable for the average human being, American citizen than owning. The average net worth of a homeowner at age 65 is $300,000 versus the average net worth of a non-homeowner or a renter at age 65 was, do you remember the number?
Jesse: I think 30, 30, I cannot remember.
Jeremy: 5,000.
Jesse: Oh, 5,000.
Jeremy: There is no net worth.
Jesse: That is ridiculous. That is unbelievable.
Jeremy: Essentially, unless they have a really good retirement. But this is an average, right? We are talking about people who have nothing versus people who have a lot and average it. Average net worth of a homeowner is $300,000, okay?
Jesse: Wow.
Jeremy: So remember that. Last point, home values in St. George are not only not falling, they are at about a ten-year peak, ten-year peak. This will be a time that people will look back and say I wish I would have sold my home, especially people who are non-occupants. Landlords or second homeowners will wish they had done it. Okay? And they are not only not falling, there is the potential with a lot of the forecasts, 94% of the economists interviewed last week in our report, said we think they will go up in 2019. I do not know that they will in St. George. Jesse and I have debated this. I do not know.
Jesse: Well, the market does not turn on a dime. So they might not, they are not going to be at this intense pace, but –
Jeremy: Yeah.
Jesse: — it is going to take a while for them to slow down and turn.
Jeremy: It is.
Jesse: So that is why I say I disagree.
Jeremy: We will see.
Jesse: They will go up a little bit.
Jeremy: We will see.
Jesse: Just from momentum.
Jeremy: I say they will not. You say they will. We will find out.
Jesse: So next year we are going to have this conversation again.
Jeremy: Folks, if you want to reach out to us, please call us at 275-1690 or visit us at Sold in St. George dot com. A lot of people have questions right now about the real estate market. Absolutely no obligation. Sold in St. George dot com or hop on Facebook and make a comment about the Christmas giveaway. I think somebody may win a basket today.
Jesse: All right.
Jeremy: Jeremy Larkin, Jesse Poll thanking you, saying we know this town.
Jesse: Happy Holidays.