Real Estate Show with Ryan Johnson
Real Estate Show with Ryan Johnson
Full Video Transcript below
Alice Lema: [00:00:00] Well, Hey, there's Southern Oregon. Welcome back to the real estate show. So glad you could join us again. I'm Alice Lema. I'm your host of the show. And I am also a broker with John O. Scott real estate here in beautiful Southern Oregon. And today we're gonna be interviewing one of our younger agents, Ryan Johnson. He also happens to be with John Scott real estate here in Southern Oregon. But every so often it's fun to have other agents come on the show and talk about what's going with the market and what just, what it's like, you know, to help people buy and sell in Southern Oregon should be a great interview.
Ryan is a former math teacher and he's also a Paradise Fire survivor. He brings an interesting perspective. He's got a great business and we're so happy that he is joining us today again, and we will be gossiping kind of about what's going on in the buying and selling and investing world of real estate here in Southern Oregon.
Before we get to that interview, wanna give you a quick update on [00:01:00] what happened this week. As far as the stats go we're kind of tracking weekly now, this time, last year to this time, this year, just to see, are we really getting more listings what's going on with our sales? And it, it is kind of interesting. We've been much higher in the amount of active listings than this time last year. And we're down a little bit in our closings from this time last year. But you know, the interest rates have been really hard and they went up again this week.
So if you were tracking that, we're now in the sixes people who are owner occupied buyers. Those are the buyers that pay the lower rate than investors. Investors pay almost a whole point higher, but owner occupied buyers right now are paying in the sixes where a few days ago they were paying in the fives. And if you remember all the way back to March, 2022, which was not that long ago, they were paying 3.5%, 3.8%.
So it's [00:02:00] just, you know, a punching bag if you're a buyer out there. But you know, in Southern Oregon, we're kind of still muddling through. We're still selling, we're still buying, we're still investing. But it's, it's definitely making adjustments. The sellers are coming down on their price. There's a lot more competition with other listings on the market. The listings are staying on the market longer and it is taking longer to get sales done, but it is happening. We still ever so slightly have few more buyers and sellers. So you know what? It's not a terrible time. Yep. So with that, let's get on to talking to Ryan Johnson, an agent here in John L. Scott in Southern Oregon.
We're gonna take a quick break from our sponsors. We're thankfully brought to you by John L. Scott, Ashland, Medford, Guy, Giles of Churchill Mortgage, and our local Rogue Valley Association of Realtors will be right.
Well, Hey, Southern Oregon. Welcome back to the real estate show. I'm Alice Lema. I'm a broker here in beautiful Southern Oregon with John Scott Real Estate. We're so, so glad you could join us [00:03:00] again today. Today we're talking to one of my favorite agents also happens to be a John Scott agent, Ryan Johnson. Hi Ryan.
Ryan Johnson: Hi, Alice. Thanks for having me today.
Alice Lema: Well, welcome back, you know, we had so much fun talking to you last time and what's really cool about you is not only are you new, but you're working and you're working hard and having some number of people you're helping quite a few people. Yeah, you're not just sitting around.
Ryan Johnson: It's really been been great and it's a hustle, you know, you gotta always be out there shaking hands and kissing babies or whatever. And and it's, it's fun. I feel like every time I meet someone is an opportunity and and I like it. It's just, it's always ongoing. There's always problems to solve. And it's just the nature of the, of the beast, you know.
Alice Lema: Well, and real estate, you know, is Is kind of bumpy even in the best of times. And now we have the most bizarre set of circumstances. I feel like we're living in a sci-fi novel yeah. It's a wild ride. That's [00:04:00] yeah. So this week the rates went up again again. Yeah. Yeah. So let's talk about how your buyers are handling.
Ryan Johnson: You know, the it's the toughest for buyers right now, because even though we're seeing I get a lot of price reductions through my inbox on a regular basis, every day, someone's reducing the price on some property that they start a little too high on, at a higher frequency than we've been seeing for a long time.
You know, there's just, there's a lot of hesitation. There's a lot of people who are watching news cycles that are scary and there's a lot of doom and gloom out there. There's a lot of people who I think, especially like YouTubers or people who are social media influencers who make their money on how many clicks they get, that have really been, having, having a good time with the you know, let's, let's hype things up for the worst case [00:05:00] scenario, as much as we can. And, and that affects people. And there's a lot of my buyers that see those things and they worry and they worry more than they probably should. And, you know, I, I realistically wind up having this conversation like two or three times a week about why are you buying the house?
If it's as an investor and your whole goal is to get appreciation dollars, maybe this isn't the best time to be buying. But if your whole goal is to find a place to live, that's comfortable and you are not gonna sell in the next five to 10 years, then you don't really have to worry about current market conditions.
Alice Lema: So that's interesting. So you're saying the buyers are worried that they're buying too high or they're buying and it's gonna go down. What, what is their concern exactly?
Ryan Johnson: Yeah. You know, You hear the word crash a lot, mostly on YouTube and mostly from buyers who are worried.
Alice Lema: Hey, oh, they think the housing market's gonna tank.
Ryan Johnson: What if there's a big crash? And I buy at the top of the market. That's that's well,
Alice Lema: then you buy another one. Yeah, well, yeah, sorry, that's a [00:06:00] little real estate humor.
Ryan Johnson: You know, I I just, I feel for people who are in that predicament and there's been a lot of people who are just sitting on the sidelines, they've been waiting for years. Oh, once that market crashes, then I'm finally gonna buy a house. But you know, it's, it's a oversimplified.
Alice Lema: You know what? I have two families that have done that. They've waited five years to buy a house they're still renting and they had the money all this time. So we actually added up the last time we went on tour, how much money they lost and it was something like $240,000, because they didn't buy then plus they're still tenants and in Oregon, there's a lot of landlords that are selling.
Ryan Johnson: Yeah, you just don't have as much control if your a tenant., which is,
Alice Lema: Yeah, I think that's, that's good advice that you're telling them if it's a home, to just go ahead.
Ryan Johnson: Yeah current market conditions, you don't have to, especially if you're buying long term, if you're gonna live there for a year, I mean, who buys a [00:07:00] house for one year to live in, but if you were gonna buy for a year yeah. That might make more sense.
Alice Lema: But the people that bought right before COVID shut down sold, yeah. There's that whole, is it I'll happily pay the capital gains, who cares?
Ryan Johnson: Yeah, my brother. I remember my brother telling me he got in at the best time. In, in 2011, I think he bought his house. So right at the uptick from the crash, the bottom of the market, he bought the dip as hard as you can buy a dip, he timed it perfectly, you know, by chance.
I was gonna say that had to be accidental.
Yeah, totally. It was, he was positioned to buy a house and Right when the right, when COVID first hit, he said, listen, this whole thing's coming down. This card, Castle's coming down, getting outta here. And he sold his house and has been renting since and missed out on the biggest steepest end of all time, you know? Yeah. It's just. It kill it pains me to think about it.
Alice Lema: Well, and you know, we can't look back at those times with too much judgment on ourselves, but we've all [00:08:00] been there. We've all done it. And that's why fear is powerful. And sometimes you know, it doesn't serve us. So the market is so strange. We've got buyers and sellers wigging out left and right.
Before the, the show started, we were talking a little bit while we were waiting to go on the air, how there's so many, not only back on markets, but also buyers canceling, terminating their deals. That's happening a lot.
Ryan Johnson: Buyers are feeling empowered, which in a lot of ways is good that we're working towards a more balanced market. You we want people to feel like they have some choices and we want people to be able to say, you know what, that doesn't really work for me. It's a deal breaker. You know, in, in our position as realtors, that's oftentimes difficult and, you know, you gotta do what's best for, for your client and what they ultimately want to do and support them.
But it does make it tough. You do a lot of work for nothing sometimes. I see, I've been seeing. You know, people who I had one group of folks who are awesome. We've been looking for a long [00:09:00] time for the perfect house for them. And they have high standards about exactly what they want. We found a place that they finally decided, you know what, let's go for it. And they were worried about market conditions. So they, they really wanted to shoot way under let's. Let's just see what happens if we underbid the house by quite a lot. This was, this was two weeks ago. Yeah.
Alice Lema: Okay. So that's pretty recent. So then what happened? They wrote a lowball offer in mid-July.
Ryan Johnson: It was in mid-July. He asked, we wrote a lowball offer and I, I thought, yeah, I just told him, listen, you're going to, at the very least expect a counter, that's probably the best case scenarios we gonna counter
Alice Lema: Uhhuh. And the worst cases you get it back in shreds. yeah, basically that's your nothing with the little burn marks. okay. Sorry, go ahead. What, what happened? So you offer,
Ryan Johnson: We got the we, we got the counter offer as I suggested, or as I would happen. And they said, you know what, we're not really feeling it. It was kind of, that was our, that was our [00:10:00] bottom line. That's the most we'd pay for that house.
And they walked away and the sellers came back. They were extremely motivated cuz they had another house in contract and they were trying for. They were begging us. Please just take we'll we'll give you what you wanted and we'll throw in...
Alice Lema: Whoa. Gosh, we have, we haven't had people that cooperative in forever.
Ryan Johnson: I know. And it was wild and they still walked. So we, wow. We found, oh my gosh. And then the buyers left. And the buyers still walked. They didn't go for it.
Alice Lema: Why did they do that? If it was the perfect house for them? Yeah.
Ryan Johnson: Well, you know, there was a couple other concerns that honestly were, were valid without giving away too many details about the places. We have to be careful neighborhood stuff that wasn't really ideal. So they thought, you know what, let's just find a place that works better for us.
Alice Lema: Well, and you know, what else, as shocking as that scenario is, there's so many new listings coming on every few days now. And again, I'm with you. I think it's wonderful to finally have choices, but boy, the buyers see something else, come on. And then it's like, they want to go look, [00:11:00] even though they're in contract.
Ryan Johnson: Yeah, it makes for a challenging market. It makes for, it makes our jobs a little tougher and that's all part of the game, I guess. But it's challenging. I gotta have a lot of emotional conversations, you know, like a third of our job as therapists anyway. Yeah. You know, you really gotta take the time to sit and listen to people's concerns and, and make sure they're, they're feeling heard and they don't feel like they're pushed in any direction. And. That they have options that they have.
Alice Lema: So yeah. Yeah. You have to be there for them. And that's one of the things I like about how you run your business. We're talking to Ryan Johnson, of John L. Scott he's a little bit on the new side, but he has a background of being a teacher science, math. That's right? Yeah. Science and math. Yeah. Good.
Okay. So I remember that correctly. So I think that just gives you greater depth of understanding of humans.
Ryan Johnson: Totally those communication skills. And I worked before then, before I was a teacher.
Alice Lema: And the volatility you're talking about, the [00:12:00] emotion, I think being a teacher is a great background. If you're gonna be a real estate agent.
Ryan Johnson: Yeah. There's a lot of teaching that happens in, in being an agent. For sure. You have to teach. Especially buyers. This is how it works. This is that the fun part know what earnest money is and how that works. Let's have that conversation and know what a crummy roof looks like a crummy roof. Oh man. Yeah. Teach em, how inspectors about that the other day. I'm like, how do you tell?
Alice Lema: Yeah, it's the little shiny granuals, right?
Ryan Johnson: Yeah, the fiberglass shining through. It's still tough. It's still tough. Yeah.
Alice Lema: Yeah. But yeah, it's really great at the end of escrow, when your buyers call you up and they go, I was just at the barbecue and my friend said they wanted to buy this house. And I said, don't buy that house. It's got a bad roof. And here's why , it's like, yay. So that's, let's talk a little bit about sellers. How are they, how are they doing right now in your world? Cause that's you, that's, they're nerve wracking them yeah.
Ryan Johnson: It's just a, it's such a change of expectations from what we've, [00:13:00] what we've been used to. I'm thankful that most of my sellers right now are all very understanding. They, they listen well, and they, they understand that we have some rapidly changing market conditions. And and also thankfully my people that I have are not in a big rush. So that helps, you know, if you can have time on your side, that's a pretty big advantage.
Cuz when you feel pressed for time, you're gonna have to make a lot more concession. So yeah, cuz you don't have as many choices. It's all about setting expectations too. And right now, You know, houses are sitting for so much longer, so much longer. They can just beautiful houses that don't need work, you know, are just hanging out. And that can be really uncomfortable for a seller.
Alice Lema: And part of, I think what's hard for everybody is we're used to a super fast market and I, I have to and maybe you have to do this. So you have to keep reminding people what a normal market looks like. It's four to six months on market, which I still have a personal philosophy that's too long. But the market conditions are the market conditions and that's, what's considered normal four to [00:14:00] six months. So that's 120 days to 180 days.
Ryan Johnson: Which we're still a long ways from there. I mean, you are, I say, houses are sitting. They're not sitting right now for four to six months. Typically that that is still pretty unheard of, but they're not getting multiple offers all due back on the first Monday after it went live, you know, so right.
It's kind of a relief too. It in some ways it makes our jobs easier that you don't always have to just race to get there in time to see a showing before it goes pending the next day, you know, it kind of it's leveled out a little bit. And a little bit of the pressure's off to some degree.
Alice Lema: So yeah, and more balanced markets, I think are good for everybody. The buyers have time to think the sellers have time to think. It just feels more fair.
Ryan Johnson: I agree. Yeah. It's fair and balanced. There's a reason. Those words, fair and balance.
Alice Lema: No pun intended. We're not a political show. We're talking to Ryan Johnson, one of our newer agents at John L. [00:15:00] Scott. We do have to take a quick break here to say thank you to our lovely sponsors who brought to you by our local Rogue Valley Association of Realtors, John L. Scott, Medford and Ashland and Guy Giles of Mutual of Omaha Mortgage. We will be back after a quick word. Don't touch that dial.
Well, welcome back folks to the real estate show. I'm Alice Lema broker, John Scott here in Southern Oregon. We're talking to one of our favorite newer agents, Ryan Johnson. He's been on the show before he's with John Scott as well.
Hi Ryan well, you're so fun and you're, you're out there working, so you've got good stories. So during the break we were talking about how unexpected the changes have been in our market and how people are reacting.
Ryan Johnson: Yeah. I mean, you know, I think we've, we've kind of seen it coming that we're gonna have some changes, you know, that crazy market we had for a couple years, that couldn't last forever.
So from a realtor's [00:16:00] perspective, I feel like it's not terribly unexpected, but you definitely have to set some expectations with with sellers in particular and buyers are feeling more empowered, which, we already talked about it is good. But man, sometimes it's really hard to reconcile with the fact that you thought you could get this amount for your house and it would sell on a weekend. And now it's taken a lot more work and a lot more time and patience really that's tough.
Alice Lema: Well, isn't that something. And you know, we tried to tell people, cuz starting back last fall, you know, there were all these noises about the interest rate changes. And we tried to tell people.
Ryan Johnson: Yeah and you know, the people who waited or who are waiting for a downturn of some sort to some degree, you know, I just can't help, but do a little, little math in their favor. I'm always thinking, you know, let's, let's just say that you got that crash you've been hoping for, and the market dips by [00:17:00] 10 whole percent, over year. Whatever your house was, it was worth 500,000 or the house that you wanna buy was worth $500,000. And it didn't sell in that time. And now it's worth $450,000 cuz it dropped 10% then the interest rates went up how many percent?
And you didn't, you didn't make out on those gains anyway, cuz your monthly payment's gonna be the same. So did you save. No. Well, were you building equity the whole time? I mean, hopefully own another house, but if you're renting, then you're stuck.
Alice Lema: So that's a really interesting thing because Travis and I would like to buy a house you know, at some point. And I got scared and worried. I was like a regular buyer, just like everybody else. Yeah. And when I started running the numbers from last year and we're trying to project out into 2023 I started realizing that your spot on Ryan, that our payment didn't change much, even though we might, at the time I thought we might go to the high fives.
I had no [00:18:00] idea we're going to the high sixes. I just didn't believe the fed, which is that's a dangerous attitude to have . Yeah. But you know, I, if you build in the price reductions, the payments are not much different. So why not just go ahead and do it if you're, if it's the time for you.
Ryan Johnson: Wow. If I can just say here that my helpers came out here, my two boys and we might have to did the same thing cuz these turkeys are running around.
Okay. Okay. Well we're only three minutes into it, so that's not a big deal. Okay. Dang it. That's okay. That was good. Damn. Maybe, maybe we'll do that as an outtake. . They were too loud, but they came and they were sitting next to me, so. Okay. So are we gonna start over? Yeah. Whatever you think. Okay. Are they still there?
They're gone now. Okay. Proud. Okay. All right. Let's see. Sorry. Videographers. You got a, [00:19:00] you got a team there. They go back and do it. I'll send this to them and they'll have to cut that. But they will. It's fine. We don't, we don't do a ton of editing because they have too much to do, but in situations like need a sombrero right here.
That would be great. I just need to a sombrero sombrero. I just wanna stay outta the sunshine. We could. Do that in post that'd be great.
okay. So we're redoing segment three, starting in 3, 2, 1. Well, welcome back, Southern Oregon to the real estate show. I'm Alice Lima. I'm a broker at John Scott and we're talking today to one of my favorite new agents, Ryan Johnson. He's also with Jo Scott. Hi Ryan. Hello, thanks again for having me today.
Yeah, well, you've got some great stories and it it's really fun to, you know, for the agents to talk to each other, cuz we're all kind of going through the same thing. And I think it helps the general public [00:20:00] to hear you know, that this is more market wide than, than they realize. So during the break, we were talking a little bit about how surprised the buyers and sellers were about these market changes and just kind of how everybody's reacting.
Yeah. You know, it's not a huge surprise for most of the realtors that have known, we got interest rate hikes coming and, and there's still more to come, you know, and the changes that would, that, that would bring. But it definitely requires lots of changes of expectations. One thing I like to kind of break down for people.
Not that I necessarily like it, but I wind up doing it often is, you know, you find people who are concerned about a crash or they've been waiting for some time, which we talked a little bit about earlier, and that can be unfortunate if, if you missed out. And usually it's a better idea just to buy real estate when you can afford to buy it.
You know? So one thing that that keeps happening is I have this discussion about, you know, people are, some people are on the sidelines, still waiting for some sort of crash. So they're trying to time the dip. Is that what you're saying? Yeah. Trying to [00:21:00] time the market, which we know you can't really time the market.
Not on purpose, anyhow. So people who are trying to do that on the sidelines while interest rates, we know interest rates are going up, we don't know with as much certainty what's gonna happen with housing prices. But even if we did have that crash, that so many people are, are waiting for on the sidelines and we.
At least 10% in value year over year with the interest rates going up a couple percent, you don't get any gains in your monthly payment. You're still paying the same amount of money and less of that's going into your pocket. You know? So if you waited and interest rates went up and you're waiting for a dip, you're kind of shooting yourself in the foot.
And I wind up having that conversation. Sometimes I have to do the mathematical proof. I have to write it, you know? Okay. Let's figure out what it would be for this. What if the house price was. 10% lower. And you actually got that 10% crash. That's still really unlikely year over year. Are you making out?
No, you're not because interest rates still went up and countered that so, well, it helps to have a math teacher do the [00:22:00] math for you. yeah, we, we joke about Ryan's background. Great, great background. So it's, it's, it's a phenomena people don't. Always dive into and you really do have to pull out your, your mortgage calculator and run the numbers.
If the house went down this much, but the interest rate went up this much. You know, how different is your payment? It's shocking. How little of a difference. The payment is the other shock. If you put a little bit more money down, it doesn't really like help your payment very much. Yeah. Unless you're going over that, that magic 20% mark where you don't have to do mortgage insurance.
Wow. Yeah. Yeah. Do you end up having a lot of those educational conversations on a regular basis all day long, constantly? Yeah. Yeah. And it's kind, it's interesting. Cause it's the same conversation with the buyers and the sellers. Cuz if you have sellers that still have their mindset to last summer, It's like, they're like boats when the tide goes out and they're [00:23:00] just stranded on the, on the beach.
That's how it feels. They're like out there by themselves, you know, I've been having to I've been having to just, what's the way to put this. Not just smooth, not just smooth things out or center people's emotions, but really like frame in. Let's not get hung up on the details because what is the difference between if you got an offer that was $15,000 lower than you wanted on a house that's in the 400 or $500,000 range?
You know, if I put that in, in terms of a percentage, people often understand, oh, a $15,000 swing. It feels like a lot, cuz you don't hold $15,000 in your hand. Very often that's a large, because it's real estate money. It's different. Well, if you know, it's. Yeah, the, it is real estate money, but you know, if you frame it into the, this purchase of a home or the sale of a home, you know, it's having a little bit of a change or negotiating a little bit isn't as big of a deal as it might feel like [00:24:00] if it was not in the form of real estate or not in the context of this huge asset, you know?
And so I have to do a lot of framing when people get. Feel some anxiety and they want every single little detail fixed and they want these, these minutia taken care of. And I gotta, I have to frame it all in. I'm talking about the buyer's side right now and just say, Hey, look at, in the big, in the big picture, they put a $20,000 roof on like, can we really complain about the $20 screens that need to be on each of those things?
When you could do it yourself, or you could pay someone once it's all said and done, and we have things negotiated. You can pay someone 200 bucks to get all of that stuff done. And you got the house and you have the house and you don't have to do this whole thing again, you don't lose your earnest money and pay for a thousand dollars of inspections.
Again, sometimes you have to just kind of let things go and look at the big picture and. That's the thing I'm good at, and it's kind of hard to communicate sometimes is let's look at the big picture. Let's zoom out a little [00:25:00] bit and just frame things in, in terms of percentages and we'll all work together to get to the goal of you.
Yeah, I that's awesome. That's awesome. So you know, The, the buyers we were talking earlier in the first segment the buyers are feeling more empowered because the market is normalizing, moderating, whatever, softening, whatever you wanna call it. None of us believe it's crashing, but. If it crashes, we'll tell you I guess it's is how we'll leave it.
Oh, you'll know it'll be ever. We get that 10% year. Yeah. Well see, and that's the thing about here in Southern Oregon, we watch this every single week. We will see it coming right now. All we can say it's like soft serve. It's just. It's just a little bit soft, but when, when we're watching these things, the buyers are a little bit, some of them are a little bit predatory.
We've got not up here necessarily, but down in some of our contingent markets like LA Seattle, some of these big [00:26:00] cities where we're waiting for that house to close, right. So they can buy something up here. We've got people in the big cities at the very end, the buyers are renegotiating the price like three days before closing.
Ooh, it's, it's just, and it seems to be happening in our, what we call feeder markets. You know, all the people that wanna live here from Dallas and New York and the other big cities on the west coast. So I'm worried that's gonna start happening here. because that's kinda brutal. I haven't, I have been oh, super traumatic.
Oh man. Yeah. And it's because. Markets feel more like a buyer's market. Yeah. Ours just feels a little soft. Yeah. People have buyers have pumped the brakes, but there's still buyers out there. You know? Its. It's you've got interest rates to deal with, but when you put it in the context of, in the last 40 years, the interest rates on average have been around 8%.
We're still below average [00:27:00] for the last several decades. Mm-hmm we are, we are. And you know, some people are saying that the interest rates are gonna go down again, like next year. And it's like, well, the feds can kind of do whatever they want. I wouldn't bank. You know, savings account on it. Let's buy something you can afford.
Now don't plan on refinancing. just, you know, let's, I mean, a lot of those problems been solved with some good math too. I mean, not to be the I'm waving the math flag guy, I guess somehow that's how that happened. But you know, it's like, let's, let's put on paper and calculate how much equity you're gonna build, owning an asset, whatever that is for.
Over the course of a year and all of your your amort amortization, you know, your your equity gains that you put into your pocket instead of renting. If that's what we're talking about, the, the difference there, and then apply that to how much you would pay if the interest rates change in the year, if they went up or down and where that, where that break even mark is, and mm-hmm oh, [00:28:00] it usually just comes down to.
Buy real estate when you can afford it. And if any, if anyone gave me a chance to buy any pretty much, any piece of real estate that I could at a 2007 rate, you know, whatever the going rate was in 2007 not interest rate, but I should say price. I would do it even if the market crashed, cuz we're after the worst crash we ever had in all time, we're still, we're still much higher than we were then for almost all markets.
So. You know, it's like buy it when you can sit, hold it. And then eventually you're gonna thank. And I think that also holds true for the sellers. This idea, like you're talking about a $15,000 difference in a negotiation. Yes. It's a lot of money. I get it. I jokingly call it real estate money, but I'm not being disrespectful.
It's just that if you're a seller, are you gonna let that $15,000 real estate situation prevent you from going to the next step of your life, which you [00:29:00] really wanted to do, or you wouldn't have gone through all. So that's like a really good question to ask because you don't, you don't get to leave as a seller.
If you don't come to terms with those prices. That's a, that's a even better point than I usually make. But I like the Craigslist analogies because everyone sold something on Craigslist. You know what I mean? Somebody say, listen, you're trying to get rid of this bike. You wanna clean out your garage? You, you put it, you posted it for a hundred bucks on Craigslist and someone showed up and.
Got there and they offered you $98. would you go, ah, you know, at two bucks, there's no way I'm selling it's 2%, you know, you frame in the price of the thing. What's $2 in the hundred in the scheme of a hundred dollars bike. Like just let it go. They'll feel like they got a deal and it's not quite that callous or, you know, it's not that easy going with homes, but when you frame it in terms of percentage, like ultimately you're getting close to the price that you're looking for.
And if everyone works together to make it happen, Not that you necessarily need to concede all the [00:30:00] time, but you know, if you think of the big picture, it's a lot easier to, to work together, to close a transaction. That's great. I'm gonna borrow that. Do you have pretty good responses with that? Do they smile?
Yeah. Everyone has big, everyone has sold something on Craigslist. You know what I mean? That's brilliant. Make up whatever example you want on Craigslist. People are like, oh, it's so much more tangible. Yeah, I understand it because it it's close to what they. Yeah, that's brilliant. Well, and I'll give you credit.
I'll say this is . Don't have to, I stole that from someone else. ladies don't give a credit. Yeah, that's great. So, but you know, we do have some situations where. The sellers needed all that money because they were upsizing. So I think that's the big problem in the market. People who were upsizing, they have to wait till the house they're buying or the neighborhood they're buying comes down a little bit, you know?
So that's kind of tricky. That's true too. Yeah. I mean, it can get [00:31:00] complicated. That's one of the more challenging things is when you have both sides going on, you're trying to move outta one place into the next and you have to time the whole thing. It can be really stressful. I, I always feel the stress of my clients right here when we're trying to do the juggling act.
And I have to tell 'em outta the gate, listen, let's not celebr. Let's not celebrate until we reach the finish line. Everything is signed and said and done, and we get that call from the title company. That's when we'll know for sure that everything went through and in the meantime, anticipation's the hardest part.
Yeah. You just have to sit tight and wait and hope everything goes as planned and. When you have hard deadlines like that too, and you have to make a certain dollar amount that's that adds stress to the, to the picture for sure. And it's really preparation. That's part of what good agents do is they help you get prepared for the good and the not good, you know, however it goes down, but we totally feel every minute of the pain with them.
Right. I'm chew the pain off over here with you. I know one fingernail left. that's my expression. [00:32:00] So gosh, so we are gonna have to take another break here. We're talking to Ryan Johnson of John L. Scott. He is one of our newer agents and doing great. And we're gonna say thank you again to John L.
Scott. Redford and Ashland, the rogue valley association, realtors and guide dials of Churchill mortgage. This episode will be repeated tomorrow at six o'clock. We'll be right back. Well, Hey, Southern Oregon. Welcome back to the real estate show. I'm Alice Lima broker John Scott, Ryan. Johnson's here with me today.
He's also from John L. Scott. And during the break, we were talking a little bit about the investor market because all of these changes have had some positives and so not so positive with the investor market. What are you seeing out there in that world? Well, you know, I'm working with more investors now.
I became an, a real estate investor, not too long ago, you know? Oh, how's that going? Well there's a lot to say there. I'll let me, let me catch you up on that in a [00:33:00] second. I've got some short term rentals that I'm really excited about that have been super fun, some little vacation places. But you know, working with investors has been a fun, new challenge for me.
It evolves some really nerdy spreadsheet stuff where I get on Microsoft Excel or Google sheets. And I make these. Spreadsheets, which I really enjoy the process, but when it's done, it's beautiful. Cuz all I have to do is punch in some numbers. How much does the HOA cost? I punch in a number. It automatically multiplies it by 12, tells me my cap rate at the end.
And then you compare 'em. And it's tough. It's tough to get the numbers, you know, that you want with these you know, inflated home prices or, you know, not just homes, but multi-units oh, the multi-unit are still, yeah. Yeah. I mean, it's really expensive. So getting good cab rates is tough and it's a fun challenge.
I, I like it. And I like that. I have some active investors who put me on all kinds of wild goose chases. I'm like calling all the owners of RV parks and learning about how all the numbers work and how. How you make that work or how you get your foot in the door, how [00:34:00] you finance, that kind of stuff. So that's been super fun.
Learning all of that and, and the nerdy mathematical side, man, I just waved my math flag hard today. So apologies to the right brains out there. Yeah. It's so much of our job though, is, is being good, finance, you know, money number of people. Yeah, it really is. And I, and it's fun that I enjoy it. That makes it a lot easier.
And you know, doing the investing thing for myself has been, it really warmed me up on all that, where I find myself creating these spreadsheets or these documents, at least that would just kind of keep track of here's all the places I found, which one would be the best investment. And then how do I create or find tools that I can use to.
To analyze different deals and see what's the most likely scenario that's gonna pan out for me. Cause it's not always what you think. You gotta run your numbers. Yeah, and you gotta double check 'em and, and you gotta be conservative when you, when you're doing investment numbers, you know, you, what if something breaks that you didn't expect, you gotta have a little [00:35:00] extra in the bank, et cetera.
So yeah, so the update on the couple of places that I think I was setting up last time we spoke about. Last time we chatted was I have a little A-frame cabin. That was my dream come true. What I always wanted someday I'll have a little cabin. I could take my family to by a lake or something.
Oh, wonderful. I landed it. And it's the coolest. Cutest little cabin you've ever seen your whole life to the credit of my wife's interior decoration skills. It's just super cool little place and that place, since we put it online a few months ago has been fully booked and is booked a couple months out.
Oh, that's great. So it's awesome. And we're trying hard to like, you know, pay that forward in the form of I have a, you know, one of my one of my incentives is anyone who can refer a client to. When that transaction closes, whoever referred that client to me, after we close on buying or selling a, a piece of real estate, they get [00:36:00] a free two day stay in the cabin.
That's like, oh my gosh, that's great. My little incentives. Yeah. So we've had, wow. That's. Worked out pretty well, as far as getting some new referrals and my friends are on it now, they're like a well oiled team that I've got my way. You're yeah. That's so that's a good time. And then the other one I have is is also a short term rental and it's a, it's a bigger place.
Super nice in Klamath falls, which people have a lot of opinions about Klamath falls. I'm I love Klamath falls and rate return is better. Yeah. I mean, investment wise, it's great out there. I think it's great. They have a cute downtown there's lots of recreational stuff. It's close to two or a national monument and a national park crater lake is our only national park in Oregon and they have Geno's bar and grill.
I don't even know about that. Oh, you gotta go. You got the be Castros own it. It's fabulous. I'm out there all the time. G's bond. You gotta go. They have lots of good places to eat. I think K falls is super underrated. And once you know, the retirement community of [00:37:00] California figures out that you can get Midwest prices and still be on the west coast.
They're gonna go bananas. That place is doing. Okay. You know, we're we just changed property management. So we're kind of reinventing ourselves on, on the so on the not social media short term rental platforms, you know, Airbnb and VRBO and all that, we just had to create new accounts and we lost all of our.
Five star ratings and everything. So it's like a ongoing challenge and we're always trying to figure out how we can ju it up and make it cooler. We're gonna add some some outdoor seating, you know, and do something. Oh, that'll be nice. Cool cafe lights on the deck. There's a huge deck that overlooks the whole valley.
Oh, wow. Wow. It's a cool place. Always just how we can, how we can make the experience better for people. And so how does that work with a property manager on Airbnb or, or VR, the short term rental? Like, do they, like, how much do you have to pay? Well, a property manager. that's a good question. It can be pretty steep.
It's anywhere from 10 to 30%. Wow. Of your gross revenues. Go to profit [00:38:00] improvement. Ours was full service at the lowest price point there. 10%. It was evolve. They have an industry low standard of 10%. I could say a lot of good things about evolve, but overall, I mean, what do they do? What is, what does full service mean?
I mean, they will create your listing. They'll send a professional photographer to photograph the listing. They'll put it up on eight different websites that host vacation rentals, including Airbnb and VRBO. Oh, wow. And then they manage the whole thing for you. They, so they do the cleaning and everyth.
Well, they'll find a partner to do it with, and then they coordinate with them. So that person has communication. They help you with doing taxes. You have to do monthly taxes at what? Oh. Yeah, cuz you have the county and the state that collect taxes on transient tax that's called oh, right, right.
Like hotels. Right. Just requires a little coordination. So they kind of facilitate all of that. They're pretty good. Ultimately I've just abandoned my property management and I'm doing it myself now with an app called Guesty. That is really awesome. [00:39:00] And it's a lot more, it takes more energy to set up in the beginning, but once you're set up it's been really cool to just.
Interactions with guests all the time. It's kinda a second job, but I'm always answering questions. Hey, how far away is crater lake? That's like, I get that one all the time. I'm like it's in the listing.
excuse me. No. But it's fun. People ask good questions and people are always, I should just say that you get to have a two way interaction about people's enthusiasm. Hey, I love the cabin. I can't wait to come out. We're on a trip for Montana to visit my cousin. Aww. Whatever it is, you know, you get to kind of hear people's stories and just go back and forth.
Oh, you're snowshoeing. We love snowshoeing. You should go down to this one place. That's our favorite, you know, that's great. I really like that aspect of it too. So is the cuz you have two places. One is small and one is big that you do the Airbnb is the big one harder to keep. It is. Yeah. You know, it [00:40:00] has a higher price point.
And there recently was I know we don't have a whole lot of time left, but Airbnb recently changed their whole format. You go there, not party rule, not the party rule, but the how you search you search by unique stays down. Do you want a cabin? Do you want a aframe? Do you want it to be by a lake?
Oh, I didn't know. They did that. It's less about buy which city you want to go to. So that's kind of changed the rules and we're all trying to recalibrate after that. So, okay. Well, Ryan, if somebody wants to get ahold of you, Ryan Johnson, John L. Scott, how do they, how do they get ya? Yeah, my phone number's (541) 719-8624.
You can Google me. Ryan Johnson, John L scott.com or dot John L scott.com and I'm on Yelp and Google and all the places. So you're everywhere. Well, you're so much fun. You're one of my favorite agents. Thank you for joining us today. Have a great weekend folks. Bye.