WEBVTT 1 00:00:00.000 --> 00:00:03.270 >>GERRY: EACH WEEK A GROUP OFINSIDERS JOINS ME TO OFFERPERSPECTIVE ON THE WEEK'S TOPSTORIES. 2 00:00:03.270 --> 00:00:06.340 THIS WEEK WE'VE PUT TOGETHER ASPECIAL PANEL TO TALK ALLTHINGS-REAL ESTATE.AND I'M PLEASED TO BE JOINED BY 3 00:00:06.340 --> 00:00:14.810 BERKSHIRE HATHAWAY HOMESERVICESINDIANA REALTY MANAGER GREGCOOPER, ALSO BERKSHIREHATHAWAY'S REAL ESTATE BROKER 4 00:00:14.810 --> 00:00:21.250 PHILIP R. HOOPER FROM EVANSVILLEAND MIBOR 2017 PRESIDENT JASONO'NEIL ROUND OUT OUR INSIDERSPANEL. 5 00:00:21.250 --> 00:00:33.100 WELCOME TO THE PROGRAM!I WILL START OUTCOME OUT LOTSGOING ON AS WE TALKED ABOUT INTHIS SPECIAL EDITION OF THE SHOW 6 00:00:33.100 --> 00:00:41.610 IN THE RESIDENTIAL REAL ESTATEMARKETPLACE, BUT AS YOU LOOK ATTRENDS, WHICH YOU JASON I WILLSTART WITH YOU, THE REAL DRIVER 7 00:00:41.610 --> 00:00:50.020 IN THE REAL ESTATE MARKET, WHATWOULD YOU SAY IT IS IN 2017?>> RIGHT NOW SPEED.WE ARE SEEING MORE HOMEBUYERS 8 00:00:50.020 --> 00:00:56.660 ENTERING THE MARKET AND THEY AREENTERING QUICKER THAN THEY HAVEIN THE PAST.SOME IS DUE TO WEATHER AND SOME 9 00:00:56.660 --> 00:01:03.600 DUE TO ECONOMIC CONDITIONS.>> I THINK THE MANNER IN WHICHYOU GO ABOUT PREPARING TO GETINTO THE MARKET IS AS IMPORTANT 10 00:01:03.600 --> 00:01:10.400 AS THE FINAL DECISIONS YOU MAKE.YOU MUST DO HOMEWORK AND BEREADY AND THE SPEED ELEMENT OFACTING WHEN THE MOMENT AN 11 00:01:10.400 --> 00:01:16.540 OPPORTUNITY ARE THERE AREIMPORTANT BECAUSE IF YOU DON'TYOU WILL NOT GET YOUR GOALACCOMPLISHED IN 2017. 12 00:01:16.540 --> 00:01:22.820 >> THE HOMEWORK EXERCISE WHICHHAS ALWAYS BEEN IMPORTANT IS ITMORE IMPORTANT NOW THAN BEFORE?>> YOU DON'T HAVE THE LUXURY 13 00:01:22.820 --> 00:01:28.520 OF LOOKING AT 27 HOUSES BEFOREYOU DECIDE THIS MIGHT BE THERIGHT ONE.WHEN YOU GET IN THE RIGHT WHEN 14 00:01:28.520 --> 00:01:35.960 YOU BETTER BE ABLE TO SAY THISWILL WORK FOR US AND IF WE DON'TACT, SOMEONE ELSE WILL.>> WHAT HAVE YOU SEEN AS THE 15 00:01:35.960 --> 00:01:43.970 BIG TREND IN 2017?>> WE ARE SEEING THECONFLUENCE OF MILLENNIALS ANDEMPTY NESTOR'S LOOKING AT 16 00:01:43.970 --> 00:01:49.980 WALKABLE NEIGHBORHOODS FOLKSBUILDING OR BUYING HOMES INURBAN AREAS WHERE THEY CAN WALKTO RESTAURANTS AND THE 17 00:01:49.980 --> 00:01:54.150 RIVERFRONT.AND ALSO MID CENTURY MODERNNEIGHBORHOODS WHERE THEY ARE ONONE LEVEL AND COMING BACK TO 18 00:01:54.150 --> 00:02:01.190 THAT MAKE SENSE.IT WAS A GOOD IDEAS IN THE 50sAND IT'S A GOOD IDEA AGAIN SOTHAT'S BEEN A FUND TREND. 19 00:02:01.190 --> 00:02:07.860 >> YOU MENTIONED WALK ABILITYAND A LOT GOING ON HERE ININDIANAPOLIS AND COMMUNITIESAROUND THE STATE IN EVANSVILLE 20 00:02:07.860 --> 00:02:15.640 AND IN THE DOWNTOWN AREA WHICH ITHINK IS REALLY UNDERGOING ACOOL RENAISSANCE.HOW DO YOU THINK THE CHANGES IN 21 00:02:15.640 --> 00:02:23.080 EVANSVILLE WILL REFLECT ON THERESIDENTIAL REAL ESTATEMARKETPLACE?>> IN THE ZIP CODE NEIGHBORING 22 00:02:23.080 --> 00:02:32.890 DOWNTOWN WE HAVE SEEN A HEALTHYINCREASE IN HOME VALUES IN THE4771 ZIP CODE AND DOWNTOWNEVANSVILLE CONTINUES TO GO ON 23 00:02:32.890 --> 00:02:39.160 THIS UPWARD TRAJECTORY OF ARESURGENCE WE WILL SEE HOMEVALUES INCREASE MOORE THEN INTHE SURROUNDING AREA. 24 00:02:39.160 --> 00:02:47.830 ONE OF THE BIGGEST DIFFERENCESIS IN THE HISTORIC DOWNTOWN AREAWHERE HOMES IN EVANSVILLE WILLBE 50 PERCENT TO 200 PERCENT 25 00:02:47.830 --> 00:02:54.840 MORE IF THEY WERE IN LOCKERBIESQUARE OR MARTIN PLACE ININDIANAPOLIS SO THAT'S A BIGDIFFERENCE AND A MARKET TO LOOK 26 00:02:54.840 --> 00:03:01.580 AT OVER THE NEXT COUPLE OF YEARSIN EVANSVILLE.>> WHAT ABOUT THE TREND OFLIVE, WORK, PLAY. 27 00:03:01.580 --> 00:03:09.590 WE TALK ABOUT IT EVERY WEEK ANDTHE ROLE CORPORATE COMMUNITY ININDIANAPOLIS WITH LILLY AND THECORPORATE PLAYERS BRINGING 28 00:03:09.590 --> 00:03:18.400 PEOPLE IN, HOW BIG OF AN IMPACTDOES THIS LIVE, WORK, PLAY IDEAHAVE UNREALISTIC?>> A BIG IMPACT BECAUSE YOU 29 00:03:18.400 --> 00:03:25.810 RAISE YOUR KIDS AND SPEND YOURFREE TIME AND WHAT WE ARE SEEINGIS THAT THE EMPTY-NESTERS ANDMILLENNIALS, THE TWO LARGEST 30 00:03:25.810 --> 00:03:32.280 POPULATION GROUP RIGHT NOW WANTSIMILAR THINGS.>> WHICH IS SURPRISING.I THOUGHT THEY WOULD BE ON TWO 31 00:03:32.280 --> 00:03:37.750 DIFFERENT PLANETS BUT THEY ARENOT.>> THEY ARE CONVERGINGTOGETHER AND WHAT WE NEED MORE 32 00:03:37.750 --> 00:03:44.220 OF IS THE COMMUNITIES, THEPLANNERS AND BUILDERS TO COMETOGETHER AND OFFER PRODUCTS THATMEET THOSE NEEDS. 33 00:03:44.220 --> 00:03:50.760 >> ONE BIG THING THAT'S A REALCHALLENGE NOT ONLY FORCOMMUNITIES, BUT FOR BUILDERSAND THINGS OF THAT NATURE AND 34 00:03:50.760 --> 00:03:57.500 DEVELOPERS IS HOW QUICKLY TRENDSAND TASTES CHANGE.YOU CAN'T MOVE QUICKLY ENOUGH ASA DEVELOPER AND BUILDER AND 35 00:03:57.500 --> 00:04:04.980 COMMUNITY TO GET TO THAT PLACE?YOU CAN BUILD A 300 HOMECOMMUNITY IN SIX MONTHS ANDTRENDS CHANGE SO QUICKLY FOR THE 36 00:04:04.980 --> 00:04:10.850 MILLENNIALS AND EMPTY-NESTERSTHAT'S BEEN ONE OF THE REASONSSO MANY FLIPPED PROPERTIES HAVEBECOME A PRIORITY FOR PEOPLE IS 37 00:04:10.850 --> 00:04:17.620 THOSE TRENDS THAT ARE NOW CAN BEPUT IN HOMES NOW AND PEOPLE THATWANT THAT CAN FIND THAT IN THEAREAS. 38 00:04:17.620 --> 00:04:24.800 >> YOU MENTIONED FLIPPING IS ABIG TREND THAT'S BEEN GOING ONFOR NUMBER OF YEARS AND WHAT'SYOUR VIEW OF HOUSE FLIPPING? 39 00:04:24.800 --> 00:04:30.440 >> IT HAPPENS IN THE FOLKSTHAT ARE GOOD AT IT ARE GREAT ATIT.YOU SEE THE MARGINS GET THINNER 40 00:04:30.440 --> 00:04:39.280 ON THAT AS THE MARKET INCREASES.A LOT OF IT WENT ON FROM2009-2011.AND IT'S GOTTEN A LITTLE FEWER 41 00:04:39.280 --> 00:04:45.150 AND FURTHER BETWEEN.BUT IT IS STYLED DRIVEN.IT'S SOMEBODY THAT WANTSSOMETHING TURNKEY. 42 00:04:45.150 --> 00:04:54.230 >> FLIPPING A BIG ISSUE DOWNIN SOUTH WEST INDIANA?>> NOT AN ISSUE, BUT THE TERMFLIPPING RECEIVES I THINK AN 43 00:04:54.230 --> 00:05:01.230 UNFAIR PEJORATIVE TREATMENT ATTIMES.I'M A CONSTRUCTION HAPPY GUY,IT'S GREAT PEOPLE ARE FLIPPING 44 00:05:01.230 --> 00:05:06.340 HOMES.IN EVANSVILLE YOU DON'T SEE ITQUITE AS MUCH AS INDIANAPOLIS.OUR MARGINS ARE THINNER. 45 00:05:06.340 --> 00:05:12.610 OUR VALUES AND NEIGHBORHOODS ARELOWER AND OUR LABOR IS MOREEXPENSIVE.SO THE MARGINS IN EVANSVILLE ARE 46 00:05:12.610 --> 00:05:20.190 RAZOR THIN, BUT WE DO SEE SOMEGREAT PRODUCTS BOTH IN THE100000-HALF A MILLION DOLLARPRICE RANGE ARE FOLKS FLIPPING 47 00:05:20.190 --> 00:05:26.660 HOMES DOING A GOOD JOB AT IT.>> YOU MIGHT START TO SEE THEFLIPS COMING ON THE MARKET INTHE NEXT FIVE YEARS AND THOSE 48 00:05:26.660 --> 00:05:33.300 ARE FOLKS THAT BOUGHT HOMES FROMEMPTY-NESTERS THAT MIGHT NOTHAVE BEEN PROVE THEM.THE HOUSE WAS BUILT IN 1989 AND 49 00:05:33.300 --> 00:05:39.740 THEY HAVE NOT DONE ANYTHING, BUTTHE NEW BUYER TAKES THEIR TIMEAND DOES A COUPLE OF BATHROOMSAND A KITCHEN AND ONCE THEY 50 00:05:39.740 --> 00:05:46.750 START TO COME ON THE MARKET THATWILL DRIVE PRICES UP.>> FLIPPING HAS FILLED IN THEGAP WHERE WE HAVE NEW 51 00:05:46.750 --> 00:05:52.750 CONSTRUCTION ACROSS THE STATE ISTRYING QUICKLY TO GET TO THEPOINT DEMAND ONCE IT TOO, BUTYOU CAN ONLY MOVE SO QUICKLY IN 52 00:05:52.750 --> 00:05:59.260 TERMS OF COMMUNITY DEVELOPMENTSO FLIPPERS CAN BUY A HOUSE,IMMEDIATELY REACT TO THE DEMANDSOF THE MARKETPLACE IN TERMS OF 53 00:05:59.260 --> 00:06:04.830 AMENITIES AND PROVIDE THATPRODUCT QUICKER.THAT'S GOOD BECAUSE IT'SREFURBISHING PRE-EXISTING 54 00:06:04.830 --> 00:06:12.440 HOUSING BEFORE IT ADDS TO THEOVERALL INVENTORY.>> ABSOLUTELY NEEDED.>> MORTGAGE RATES, FINANCING, 55 00:06:12.440 --> 00:06:20.710 AS WE TALKED EARLIER ON THESHOW, THE EASE OF FINANCING ISOUT THERE.>> IT'S AN ENORMOUS DRIVER OF 56 00:06:20.710 --> 00:06:26.450 THE HOUSING MARKET IN INDIANAAND A LOT OF PLACES RIGHT NOWBECAUSE PEOPLE SEE HIGHER HOMEMORTGAGE RATES COMING AND THEY 57 00:06:26.450 --> 00:06:34.930 ARE RUSHING TO THE MARKET PLACETO MAKE TO BEAT THE INCREASE.>> THE PENDING MORTGAGE RATEINCREASE ALONG WITH WHAT IS 58 00:06:34.930 --> 00:06:41.800 PREDICTED TO BE PENDINGINFLATION THEY MAKE HOUSING ALOT MORE EXPENSIVE PLUS FOLKSARE TAKING ADVANTAGE OF THE 59 00:06:41.800 --> 00:06:48.140 LOCKED IN 30 YEAR MONEY.NOT MUCH ELSE IN YOUR LIFE YOUCAN INFLATION PROOF FOR 30YEARS. 60 00:06:48.140 --> 00:06:54.080 >> WE'VE SEEN MORTGAGE RATESGOING AND HOW BIG AN ISSUE IT ISWITH THE FOLKS WHO ARE DEALINGWITH? 61 00:06:54.080 --> 00:07:01.990 >> IT CONTRIBUTES TO THEINCREASED ACTIVITY THIS SPRING.A LOT MORE HOMES WE'VE SEEN INTHE OFFICE AND OTHER OFFICES IN 62 00:07:01.990 --> 00:07:08.160 EVANSVILLE OF HOME SELLING ATTHE FIRST SHOWING.THAT'S HAPPENING MORE THISSPRING THAN IT DID LAST YEAR AND 63 00:07:08.160 --> 00:07:14.170 THE PENT UP FEAR OF MORTGAGERATES CHANGING IS A BIG PART OFTHAT.>> I WANT TO TOUCH ON 64 00:07:14.170 --> 00:07:20.370 TECHNOLOGY BUT DOES ANYONE WANTTO WEIGH IN ON NEW HOMECONSTRUCTION AND WE TALKED ABOUTTHAT EARLIER AND THERE SHOW IN 65 00:07:20.370 --> 00:07:28.110 CENTRAL INDIANA AND THOSE WAYOFF OF WHERE THEY WERE SAY 10YEARS AGO, BUT STILL FAR BELOWAND WHERE DO WE SEE THAT? 66 00:07:28.110 --> 00:07:33.390 >> IT'S INCREASING AND IT'SGOOD BECAUSE IT OFFERS GREATPRODUCTS FOR CONSUMERS AND APERCENTAGE OF THE MARKET WANTS A 67 00:07:33.390 --> 00:07:40.030 NEW HOME SO THE NEW CONSTRUCTIONINDUSTRY HAS GROWN AS QUICKLY ASI CAN.I FOR ONE WHILE I'M THRILLED WE 68 00:07:40.030 --> 00:07:46.970 HAVE AS MUCH NEW CONSTRUCTION ASWE DO I'D BE UNCOMFORTABLE IF WEWERE AT THE LEVELS WE WERE PRE-2008 BECAUSE I CAUSED A 69 00:07:46.970 --> 00:07:54.140 DIFFERENT KIND OF CONCERNS BUT ITHINK THE BUSINESS IS GROWING,THE CHOICES ARE GROWING AT THEBUILDER INDUSTRY IS BETTER AND 70 00:07:54.140 --> 00:08:02.420 HEALTHIER AND IT'S A GOOD THING.>> TALK ABOUT TECHNOLOGY HASCHANGED ALL INDUSTRIES RELATE.JASON I'LL START WITH YOU ON 71 00:08:02.420 --> 00:08:09.290 THIS BUT, HOW HAS TECHNOLOGYCHANGED THE REAL ESTATE BUSINESSFROM A CONSUMER STANDPOINT,REALTOR STANDPOINT AND ALL THOSE 72 00:08:09.290 --> 00:08:15.800 KINDS OF THINGS?I ASSUME IT'S FOR THE BETTER ANDMAYBE SOME NOT FOR THE BETTER.>> THAT'S ABSOLUTELY RIGHT. 73 00:08:15.800 --> 00:08:25.500 IN A LOT OF WAYS IT'S GOTTENEASIER AND A LOT OF WAYS IT'SGOTTEN HARDER SO IT'S GOTTENEASIER BECAUSE WE USE DIGITAL 74 00:08:25.500 --> 00:08:33.380 SIGNATURES, E-MAIL, BUT I'VEBEEN DOING AT 14 YEARS AND 10YEARS AGO REALTOR.COM ZILLAH,TRULY A, THE ONLINE SEARCH 75 00:08:33.380 --> 00:08:41.320 PORTALS DID NOT EXIST SO NOWTHAT INFORMATION IS OUT THERE SOHOMEBUYERS AND REAL ESTATEPROFESSIONALS HAVE TONS OF 76 00:08:41.320 --> 00:08:50.760 INFORMATION AT THEIR FINGERTIPSSO IT CREATES SPEED AND ITCREATES THE NEED TO BEABSOLUTELY POSITIVE OF WHAT THE 77 00:08:50.760 --> 00:08:57.240 INVENTORY IS LIKE OUT THERE ANDIT CHANGES THE WHOLE OF THEREALTOR FROM HAVING ALL THEKNOWLEDGE WHICH IS A GOOD THING. 78 00:08:57.240 --> 00:09:04.940 AND PUTS ALL THE KNOWLEDGE OUTON THE TABLE AND POSITIONS THEREAL ESTATE PROFESSIONAL IN AWAY THEY CAN ACTUALLY HELP 79 00:09:04.940 --> 00:09:11.320 FACILITATE THE TRANSACTION ANDPROTECT THE CONSUMER INTEREST.>> VERY QUICKLY HOW IS ACHANGE THE ROLE OF A REALTOR? 80 00:09:11.320 --> 00:09:19.360 >> IT TURNS A GOOD REALTORINTO AN ECONOMIST AND MARKETER.VISUAL IMAGES ARE MORE IMPORTANTTHAN EVER BECAUSE OF THE USE ON 81 00:09:19.360 --> 00:09:25.030 SOCIAL MEDIA AND THE DECISIONSWE MAKE AS CONSUMERS OF SOCIALMEDIA WHETHER WE CLICK ON THATOR SHARE THAT. 82 00:09:25.030 --> 00:09:33.310 THAT'S A HUGE, HUGE PART OF ITAND WHAT TO DO WITH ALL THISDATA IS CERTAINLY A FUN ASPECT.>> ONLY 30 SECONDS, BUT WIRE 83 00:09:33.310 --> 00:09:39.110 FRAUD ISSUE WHICH I WAS NOTAWARE OF.YOU WERE.HOW BIG AN ISSUE IS THAT? 84 00:09:39.110 --> 00:09:47.020 >> CONSUMERS, YOUR MONEY IS ATRISK AND YOU NEED TO PAY CLOSEATTENTION AND DO NOT EVER WHYYOUR MONEY WITHOUT TALKING TO A 85 00:09:47.020 --> 00:09:53.290 PERSON AT THE DESTINATION YOUWANTED TO GO TO OUR COME FROM.DON'T RECEIVE IT UNTIL YOU TALKTO PEOPLE. 86 00:09:53.290 --> 00:09:58.460 DON'T JUST SEND IT BECAUSE YOUGOT AN E-MAIL.THAT'S THE EASIEST WAY TOAPPROACH THAT. 87 00:09:58.460 --> 00:09:59.470 HUGE ISSUE FOR CONSUMERS.