WEBVTT 1 00:00:00.480 --> 00:00:03.960 You're listening to KFI AM six forty on demand. 2 00:00:04.519 --> 00:00:05.879 I am justin Worsham. 3 00:00:06.559 --> 00:00:09.880 For those of you that are long term KFI listeners, 4 00:00:09.919 --> 00:00:13.480 you probably may recognize my name. Back in I think 5 00:00:13.480 --> 00:00:16.640 it was twenty fifteen, I got the job as the 6 00:00:16.719 --> 00:00:18.960 board op for the Bill Handle Show in the morning. 7 00:00:19.039 --> 00:00:23.199 I did that for a couple years, and then management 8 00:00:23.199 --> 00:00:25.399 at the time felt I made the show sound too silly, 9 00:00:25.879 --> 00:00:29.920 and so I looked for another gig and Gary and 10 00:00:29.920 --> 00:00:32.200 Shannon were kind enough to have me on their show. 11 00:00:32.320 --> 00:00:35.280 So Wednesdays from eleven thirty to noon, I am on 12 00:00:35.320 --> 00:00:38.119 their show talking parenting. But that is not what I 13 00:00:38.159 --> 00:00:40.840 am here today to talk to you about. That is 14 00:00:40.920 --> 00:00:43.799 my little bit of my background in radio. But what 15 00:00:43.840 --> 00:00:46.159 I'm here to talk to about we're doing a real 16 00:00:46.280 --> 00:00:50.560 estate Southern California real estate talk show. So when I 17 00:00:50.640 --> 00:00:53.719 left radio, I got my I had my real estate 18 00:00:53.759 --> 00:00:56.079 license in twenty thirteen because I wanted to get into 19 00:00:56.119 --> 00:00:58.920 property management. I did that for about four years. That's 20 00:00:58.960 --> 00:01:01.039 actually how I saved up for the house I bought 21 00:01:01.079 --> 00:01:03.880 in Bourbank, California. Anybody out there, especially if you're here 22 00:01:03.880 --> 00:01:06.840 for the entertainment industry, look into property management. It's a 23 00:01:06.840 --> 00:01:09.400 great way to find affordable housing. In most cases, you 24 00:01:09.400 --> 00:01:11.640 could live for free in a place, and I was 25 00:01:11.680 --> 00:01:15.040 maybe putting twenty hours in a month managing that place, 26 00:01:15.040 --> 00:01:17.000 and I was getting a free twenty one hundred dollars 27 00:01:17.000 --> 00:01:17.760 a month apartment. 28 00:01:17.879 --> 00:01:19.000 It was awesome. 29 00:01:19.760 --> 00:01:22.640 When radio did not look like a good option for me, 30 00:01:23.000 --> 00:01:25.359 I thought that real estate would be a backup. Like 31 00:01:25.400 --> 00:01:27.920 I'm sure most realtors out there who are listening can 32 00:01:27.959 --> 00:01:30.439 agree to. Very few people grow up going I want 33 00:01:30.439 --> 00:01:32.920 to be a realtor when they're in elementary school, and 34 00:01:33.120 --> 00:01:35.719 it actually became the career that I loved, and it's 35 00:01:35.799 --> 00:01:39.120 something that I wish I had done since I was twenty. 36 00:01:39.840 --> 00:01:41.920 So I got my license to twenty thirteen, started me. 37 00:01:42.159 --> 00:01:44.280 I was a real a full time agent. In twenty eighteen, 38 00:01:44.359 --> 00:01:46.599 got my broker's license, and now I own and operate 39 00:01:46.680 --> 00:01:51.359 my own real estate brokerage here in southern California. And 40 00:01:51.519 --> 00:01:54.680 the first thing I wanted to talk about today, we're 41 00:01:54.680 --> 00:01:57.640 going through questions that I get a lot as a realtor, 42 00:01:58.319 --> 00:02:01.159 and so I'm hoping that you guys will find this 43 00:02:01.239 --> 00:02:03.079 interesting because these are kind of ranked in the most 44 00:02:03.079 --> 00:02:05.519 common questions. The biggest one that comes up now is 45 00:02:05.519 --> 00:02:09.080 that there's a misunderstanding about how realtors, particularly realtors that 46 00:02:09.120 --> 00:02:12.080 are representing a buyer, get paid in this market. A 47 00:02:12.120 --> 00:02:14.120 lot of people think that there was a law change. 48 00:02:14.159 --> 00:02:16.680 There was no law change. It wasn't a legal change. 49 00:02:16.719 --> 00:02:19.919 Everything is exactly the same from a legal standpoint. What 50 00:02:20.080 --> 00:02:22.120 happened was that there was a settlement made with the 51 00:02:22.199 --> 00:02:25.280 National Association of Realtors due to a class action lawsuit 52 00:02:25.319 --> 00:02:28.080 that originated in Missouri, and they settled for I think 53 00:02:28.120 --> 00:02:29.439 is somewhere around four billion dollars. 54 00:02:29.520 --> 00:02:30.199 That's irrelevant. 55 00:02:30.240 --> 00:02:32.520 What was happening in those states is that the listing 56 00:02:32.560 --> 00:02:36.520 agreements that sellers were signing did not disclose that part 57 00:02:36.560 --> 00:02:38.960 of the commission they were paying their realtor to sell 58 00:02:39.000 --> 00:02:42.639 their house was going to their competitor, the buyer's agent, 59 00:02:43.080 --> 00:02:46.080 and so they weren't aware of that. In California, we've 60 00:02:46.080 --> 00:02:48.520 always had that, But part of the settlement was we 61 00:02:48.560 --> 00:02:50.879 had to remove the commission, or what we call in 62 00:02:50.879 --> 00:02:53.919 the real estate industry the cooperation element, from our multiple 63 00:02:53.960 --> 00:02:57.000 listing service or mls. So no longer when I list 64 00:02:57.039 --> 00:02:58.439 the house can I say I'm going to give this 65 00:02:58.439 --> 00:03:00.439 buyer's agent two and a half percent. That's not how 66 00:03:00.520 --> 00:03:03.280 it works anymore. So then now people believe that they 67 00:03:03.319 --> 00:03:06.479 have to pay their buyer's agent, And in most cases, 68 00:03:06.560 --> 00:03:08.280 that's not what I'm seeing, at least in the market, 69 00:03:08.400 --> 00:03:10.120 not what I'm hearing from any of my friends in 70 00:03:10.159 --> 00:03:13.919 the industry either. Everything is basically functioning exactly the same 71 00:03:13.960 --> 00:03:16.879 way it was before, only now a buyer's agent has 72 00:03:16.919 --> 00:03:19.280 to have a conversation with a buyer ahead of time 73 00:03:19.319 --> 00:03:22.039 to explain this, where before you never really did that, 74 00:03:22.719 --> 00:03:24.599 or at least most of us I would argue didn't. 75 00:03:25.120 --> 00:03:28.159 And you also have to have a buyer representation agreement 76 00:03:28.240 --> 00:03:31.360 in place, and that's because I can't just go pick 77 00:03:31.360 --> 00:03:33.479 a house that's available and put it on the market 78 00:03:33.479 --> 00:03:34.759 to try to sell it. I have to have a 79 00:03:35.319 --> 00:03:38.080 contract with that seller. And this new change means that 80 00:03:38.120 --> 00:03:40.000 when you're representing a buyer, I can't just go out 81 00:03:40.000 --> 00:03:42.120 and show them houses and expect to be entitled to 82 00:03:42.120 --> 00:03:44.199 a commission. So I need to have an agreement in 83 00:03:44.240 --> 00:03:47.319 place between the two of us. And now they've even 84 00:03:47.319 --> 00:03:51.159 streamlined even better, and it's getting better that you put 85 00:03:51.199 --> 00:03:53.919 in the contract what your buyer's agent is going to 86 00:03:53.960 --> 00:03:56.719 get paid for. Instance, I usually ask about two and 87 00:03:56.719 --> 00:03:59.159 a half percent. In my experience, that's about the most 88 00:03:59.240 --> 00:04:01.400 that you get. We're not supposed to talk about like 89 00:04:01.400 --> 00:04:03.960 commissions and break it down because it seems like we're 90 00:04:04.039 --> 00:04:06.840 rigging the industry. But I'm just giving you averages here, 91 00:04:06.919 --> 00:04:09.280 not making any kind of suggestions or saying that these 92 00:04:09.280 --> 00:04:13.439 are hard lines. This is just general blanket statements. And 93 00:04:13.479 --> 00:04:15.439 so I submit an offer, and in some cases a 94 00:04:15.520 --> 00:04:17.079 seller might come back and say, I'm not going to 95 00:04:17.079 --> 00:04:19.000 give you two and a half percent, but I'll give 96 00:04:19.040 --> 00:04:21.759 you two percent, And that's up to you as the agent, 97 00:04:21.839 --> 00:04:24.959 and you and the buyer and everybody I have had 98 00:04:25.000 --> 00:04:27.439 on the listing side. Recently, I had an agent who 99 00:04:27.519 --> 00:04:30.439 submitted an offer and they said that they wanted my client, 100 00:04:30.519 --> 00:04:33.879 the seller, to pay three percent. When I presented that 101 00:04:33.920 --> 00:04:36.120 to the seller, the seller was like, that seems a 102 00:04:36.120 --> 00:04:38.319 bit high. I gave him the rite info. I said, 103 00:04:39.000 --> 00:04:41.600 based on averages that I've seen, yeah, that's high. Usually 104 00:04:41.639 --> 00:04:43.199 on the higher end it's two and a half percent. 105 00:04:43.360 --> 00:04:45.800 So my seller countered back and said, we'll give you 106 00:04:45.839 --> 00:04:47.199 two and a half percent, but we're not going to 107 00:04:47.240 --> 00:04:50.600 give you three. The agent said, I've been working with 108 00:04:50.639 --> 00:04:53.079 these guys for a long time, so I think I'm 109 00:04:53.199 --> 00:04:56.399 entitled to three percent, And with all due respect to 110 00:04:56.399 --> 00:04:58.480 that agent, what I told him is like, well, I 111 00:04:58.519 --> 00:05:00.519 will take that to my seller, but I believe that 112 00:05:00.519 --> 00:05:03.240 that's not my seller's problem, right, my seller should not 113 00:05:03.279 --> 00:05:05.279 be paying you for the time that this buyer took 114 00:05:05.639 --> 00:05:08.680 to find a house. So that's to me. An added 115 00:05:08.720 --> 00:05:11.319 benefit of this change is that sure should there's now 116 00:05:11.319 --> 00:05:13.879 there's this added layer of negotiation, which was actually the 117 00:05:13.920 --> 00:05:17.040 intent of the lawsuit. They just wanted everything to be negotiable. 118 00:05:17.439 --> 00:05:19.279 I also think that their intent was that they thought 119 00:05:19.319 --> 00:05:22.920 realtors are the reason why housing is so unaffordable in 120 00:05:23.000 --> 00:05:26.680 general in other places, and I just I think that's insane. 121 00:05:27.040 --> 00:05:29.079 I just don't see how realtors have that much of 122 00:05:29.120 --> 00:05:31.879 an impact on the housing market, and I would love 123 00:05:31.920 --> 00:05:35.040 to find out more. If you disagree with me, you 124 00:05:35.040 --> 00:05:37.600 can go ahead and hit the talkback feature on the 125 00:05:37.600 --> 00:05:40.199 iHeart app and send me a message about that. I'm 126 00:05:40.199 --> 00:05:42.800 also looking to see if you're hearing from people who 127 00:05:42.839 --> 00:05:46.199 are leaving California or you left California. I want to 128 00:05:46.240 --> 00:05:47.879 know why, because we're going to be talking about that 129 00:05:48.040 --> 00:05:51.439 a little bit later on Also I'm going to talk about, 130 00:05:51.439 --> 00:05:53.279 because this is the next big question that I get, 131 00:05:53.959 --> 00:05:58.279 is that the impact that the fires have had that unfortunate, horrible, 132 00:05:58.319 --> 00:06:01.360 horrible incident that we had in January. There's a lot 133 00:06:01.360 --> 00:06:04.240 of belief, much like other things, like when the pandemic happened. 134 00:06:04.240 --> 00:06:06.000 Everybody was like, this is going to be the thing 135 00:06:06.040 --> 00:06:09.199 that changes the housing prices in southern California, and so 136 00:06:09.319 --> 00:06:12.079 far we're not seeing it. So when we come back, 137 00:06:12.120 --> 00:06:14.480 I'm going to talk more about why I think that 138 00:06:14.560 --> 00:06:17.160 the fires are not going to have the impact that 139 00:06:17.240 --> 00:06:19.120 most people out there trying to buy a home and 140 00:06:19.160 --> 00:06:22.079 live that American dream in southern California, they're not going 141 00:06:22.120 --> 00:06:24.240 to see those prices come down the way that they would. 142 00:06:24.240 --> 00:06:28.279 Hope you're listening to KFI AM six forty on demand. 143 00:06:29.439 --> 00:06:31.160 When I was a kid in elementary school, I wanted 144 00:06:31.160 --> 00:06:33.199 to be a stand up comic. I was fortunate enough 145 00:06:33.240 --> 00:06:35.199 to work the road for like seven years, but when 146 00:06:35.240 --> 00:06:37.560 I got into middle school, Oh, I wanted to be 147 00:06:37.600 --> 00:06:40.480 a radio shost That would be such a fun gig, right, 148 00:06:40.519 --> 00:06:42.120 And so at least I'm getting to try it out 149 00:06:42.160 --> 00:06:45.160 for two hours today, and then we got two hours 150 00:06:45.199 --> 00:06:49.079 again next Sunday from two to four, still talking Southern 151 00:06:49.079 --> 00:06:52.000 California real estates. I feel like it's going Okay, did 152 00:06:52.000 --> 00:06:53.040 one segment. 153 00:06:53.040 --> 00:06:55.720 The real test is yeah, in school grade school, was 154 00:06:55.759 --> 00:06:59.120 your citizenship excessive talking? Oh, yes, for sure. Yeah. 155 00:06:59.399 --> 00:07:01.720 I always I'd always got good grades, but never had 156 00:07:01.839 --> 00:07:03.319 satisfactory citizenship. 157 00:07:03.360 --> 00:07:04.240 It was always us. 158 00:07:04.759 --> 00:07:07.920 Everything was unsatisfactory as far as my behavior in the 159 00:07:07.959 --> 00:07:12.000 classroom perfect. So now I want to talk about the 160 00:07:12.040 --> 00:07:15.079 other question I get a lot is the fires. And 161 00:07:15.360 --> 00:07:17.800 what I believe this comes from is if you're out 162 00:07:17.800 --> 00:07:19.519 there and you're trying to buy a house in southern 163 00:07:19.560 --> 00:07:24.040 California right now, it just sucks like there's nothing, there's. 164 00:07:23.839 --> 00:07:24.800 Nothing good about it. 165 00:07:25.040 --> 00:07:27.319 I hear from clients when I'm helping them find a 166 00:07:27.319 --> 00:07:29.399 house all the time that they're like, who pays this 167 00:07:29.600 --> 00:07:31.680 much money for a house? When I started in real 168 00:07:31.800 --> 00:07:34.360 estate and kind of my home area of Burbank, that's 169 00:07:34.399 --> 00:07:36.759 where I live, the median house price was around nine 170 00:07:36.839 --> 00:07:40.160 hundred and fifty thousand dollars and now it's one point 171 00:07:40.199 --> 00:07:44.160 four million dollars and it is insane. Don't get me wrong, 172 00:07:44.199 --> 00:07:46.759 it's crazy. And so everybody likes to try to find 173 00:07:46.800 --> 00:07:49.079 these things they're hoping, they're dreaming that something is going 174 00:07:49.120 --> 00:07:51.240 to change that. And we're going to talk about affordability later, 175 00:07:51.560 --> 00:07:53.600 but I want to lead into what I think is 176 00:07:53.639 --> 00:07:56.160 going on behind these fires, and I think what really 177 00:07:56.199 --> 00:07:59.600 started this whole thing, in my opinion, is that as 178 00:07:59.600 --> 00:08:01.600 soon as they happened, there were a lot of reality 179 00:08:01.639 --> 00:08:04.439 TV stars that are on these like real estate shows. 180 00:08:05.160 --> 00:08:07.079 I think the million dollar listing guys, I think they 181 00:08:07.160 --> 00:08:09.160 do pretty well, but most of the other shows that 182 00:08:09.199 --> 00:08:10.879 I've looked into, I could go in the MLS and 183 00:08:10.920 --> 00:08:12.600 I could look and see what they do in production, 184 00:08:13.000 --> 00:08:15.240 and it's not a lot, so they're very good being 185 00:08:15.439 --> 00:08:18.199 television people. But I saw a lot of people being 186 00:08:18.199 --> 00:08:20.600 good at being reality TV stars and saying this is 187 00:08:20.639 --> 00:08:21.680 going to change the market. 188 00:08:21.720 --> 00:08:24.519 My phone is blowing up. And maybe it's. 189 00:08:24.399 --> 00:08:26.639 Because I help what I would consider to be more 190 00:08:26.639 --> 00:08:29.399 middle to upper middle class clientele, and I'm not a 191 00:08:29.480 --> 00:08:32.399 luxury agent. The most expensive house I've sold so far 192 00:08:32.840 --> 00:08:36.320 was a five million dollar, humongous, beautiful place in Tarzana, 193 00:08:37.279 --> 00:08:39.679 and then from there it's usually around one to one 194 00:08:39.679 --> 00:08:43.080 point two million on average, So maybe that's why. But 195 00:08:43.799 --> 00:08:48.840 I think all of this started because the overregulation of 196 00:08:48.879 --> 00:08:52.120 the insurance industry by the state of California. They were 197 00:08:52.159 --> 00:08:55.399 trying to make it a thing where insurance companies were 198 00:08:55.480 --> 00:08:59.039 charging the same for everybody, regardless of their risk assessment, 199 00:08:59.360 --> 00:09:01.759 and they thought that that would make it more affordable 200 00:09:01.799 --> 00:09:05.639 for people to get insurance for their homes. And I 201 00:09:05.679 --> 00:09:09.519 think they also thought somehow that that would somehow make 202 00:09:09.559 --> 00:09:11.919 it more affordable, like I think they thought that that 203 00:09:12.080 --> 00:09:14.639 was part of the reason why houses cost so much more. 204 00:09:14.960 --> 00:09:17.559 They love to I've noticed they love to blame other industries. 205 00:09:17.639 --> 00:09:19.679 They don't want to blame the legislation. They don't want 206 00:09:19.679 --> 00:09:22.480 to blame like I've heard from developers, it's fifty thousand 207 00:09:22.559 --> 00:09:25.120 dollars before just to get start the process of doing 208 00:09:25.120 --> 00:09:27.440 a development or making a building, before you even put 209 00:09:27.440 --> 00:09:29.320 a shovel in the ground. And they have all these 210 00:09:29.399 --> 00:09:32.240 impact survey or environmental impact survey, so you have to 211 00:09:32.240 --> 00:09:34.360 do all these studies, and it just it doesn't help 212 00:09:34.399 --> 00:09:39.039 when they get overregulated in that way. So in California 213 00:09:39.320 --> 00:09:41.240 to fix that, because then what started happening. 214 00:09:41.320 --> 00:09:42.679 The first one I heard was State Farm. 215 00:09:42.759 --> 00:09:44.279 They were the first one to start saying, we're not 216 00:09:44.279 --> 00:09:48.879 writing policies in California anymore, and so they came up 217 00:09:48.919 --> 00:09:52.320 with the California Fair Plan, So it's a subsidized fire 218 00:09:52.399 --> 00:09:53.440 insurance policy. 219 00:09:53.919 --> 00:09:55.000 And I looked into it. 220 00:09:55.080 --> 00:09:57.840 Only twenty two percent of the structures in the Pacific 221 00:09:57.840 --> 00:10:00.519 Palisades Fire and only twelve percent of the ructors in 222 00:10:00.559 --> 00:10:04.440 the Eton Fire were actually covered by the California Fair 223 00:10:04.440 --> 00:10:05.639 Plan for Palisades. 224 00:10:05.679 --> 00:10:06.759 That's they're estimating. 225 00:10:06.759 --> 00:10:10.159 That's four billion dollars in costs to replace those properties 226 00:10:10.240 --> 00:10:12.799 or in damage, and the Eton Fire at seven hundred 227 00:10:12.799 --> 00:10:17.240 and seventy five million, So sixteen thousand structures were lost 228 00:10:17.519 --> 00:10:20.720 during those fires. Horrible tragedy. I hope I'm not being 229 00:10:20.799 --> 00:10:24.039 insensitive to it in any way. Not my intent at all. 230 00:10:24.480 --> 00:10:26.039 What I want to do is just look at it 231 00:10:26.080 --> 00:10:28.720 from just a strictly numbers. They take the emotion out 232 00:10:28.720 --> 00:10:31.679 of it, take the trauma out of it. There's an 233 00:10:31.799 --> 00:10:34.960 organization that I found in preparation for the show called SKAG. 234 00:10:35.000 --> 00:10:38.759 It's the Southern California Association of Governments. The best way 235 00:10:38.759 --> 00:10:41.440 I could describe it, it's as if the counties of 236 00:10:41.679 --> 00:10:45.240 Southern California decided to form their own un and they 237 00:10:45.320 --> 00:10:48.159 get together and they share resources, they share information and 238 00:10:48.200 --> 00:10:50.080 they make plans for all of us that live here 239 00:10:50.080 --> 00:10:53.960 in southern California. It includes Imperial County, Los Angeles, Orange Riverside, 240 00:10:53.960 --> 00:10:55.759 San Berdino, and Ventura. 241 00:10:55.879 --> 00:10:57.559 Back in March of twenty twenty one. 242 00:10:57.720 --> 00:11:01.919 They adopted what they call the six cycle of the RHNA, 243 00:11:01.960 --> 00:11:05.399 and that's the Regional Housing Oh man, I'm blanking on 244 00:11:05.399 --> 00:11:07.960 that s assessment. It's basically what they said is, these 245 00:11:07.960 --> 00:11:10.200 are the amount of new houses that we need to 246 00:11:10.240 --> 00:11:13.399 bring to the market in order to meet the growing demand. 247 00:11:14.000 --> 00:11:16.799 And right now they have a projected plan in order 248 00:11:16.840 --> 00:11:19.960 to meet the demand. Again, this is just to meet 249 00:11:20.000 --> 00:11:23.840 the demand that they see of one zero point three 250 00:11:24.240 --> 00:11:29.039 million housing units by twenty twenty nine. There is no 251 00:11:29.200 --> 00:11:32.679 way that the loss of sixteen thousand units and those 252 00:11:32.720 --> 00:11:35.200 horrible fires is going to come close to meeting their 253 00:11:35.240 --> 00:11:38.600 projected demand. The other added fact is that when you 254 00:11:38.639 --> 00:11:40.360 dig a little bit deeper and you look into it, 255 00:11:40.799 --> 00:11:45.159 because of just the limit of land availability, legally they 256 00:11:45.200 --> 00:11:48.639 only could do about four hundred thousand of those one 257 00:11:48.679 --> 00:11:52.399 point three million units that are needed. That's our bigger 258 00:11:52.440 --> 00:11:56.039 issue here, that's the problem. That's why even with these 259 00:11:56.080 --> 00:11:59.519 high interest rates. I looked into it too crazy appreciation 260 00:11:59.799 --> 00:12:02.519 in both Orange County and in Los Angeles County. That's 261 00:12:02.519 --> 00:12:04.440 not what's supposed to happen. When the interest rates went 262 00:12:04.519 --> 00:12:06.960 up a couple of years ago, it's supposed to drop 263 00:12:07.000 --> 00:12:09.360 the prices. That's what's supposed to happen. And we didn't 264 00:12:09.399 --> 00:12:11.480 see it happen. And everybody's like, why, why, Why isn't 265 00:12:11.480 --> 00:12:13.879 this happening? And I really believe it's because we still 266 00:12:13.960 --> 00:12:18.639 don't have enough houses car The California Association Realtors also 267 00:12:18.679 --> 00:12:20.799 commission to study. I tried to find it because I 268 00:12:20.840 --> 00:12:22.519 saw a webinar on it like two years ago and 269 00:12:22.799 --> 00:12:26.320 I was fascinated by it. They did this webinar where 270 00:12:26.320 --> 00:12:30.120 they researched major markets all over the US, and what 271 00:12:30.200 --> 00:12:32.840 they found is that if you live in an area 272 00:12:32.919 --> 00:12:37.000 of high population density or high desirability. It's important to 273 00:12:37.000 --> 00:12:41.159 note that high population density or high desirability, so it 274 00:12:41.159 --> 00:12:43.159 doesn't even have to be dense with a lot of people. 275 00:12:43.240 --> 00:12:45.360 It's just if this is a place people want to 276 00:12:45.399 --> 00:12:48.720 live and the primary housing option is in the larger 277 00:12:48.759 --> 00:12:51.840 percentage is what they call R one, a residential essentially 278 00:12:51.879 --> 00:12:54.000 a single family home, the home that you grew up 279 00:12:54.000 --> 00:12:56.559 in right, not an apartment building, not a condo, not 280 00:12:56.639 --> 00:13:00.399 a town home, just a single family, standalone home across 281 00:13:00.519 --> 00:13:05.000 the board. Those areas have an affordability issue, So you 282 00:13:05.159 --> 00:13:06.919 have to be able to build up. You have to 283 00:13:07.000 --> 00:13:09.879 go up. You can't have a ton of houses there. 284 00:13:10.399 --> 00:13:13.440 You can't do these large swaths of single family neighborhood. 285 00:13:13.440 --> 00:13:16.039 Anybody who's flown into lax or a Hollywood airport in 286 00:13:16.120 --> 00:13:18.840 Burbank and you look over the La basin, it is 287 00:13:19.000 --> 00:13:22.879 just a ton of single family neighborhoods. And that's where 288 00:13:22.879 --> 00:13:24.840 in my experience, everybody wants to be able to live 289 00:13:24.919 --> 00:13:27.320 in a single family home. Nobody wants to live like 290 00:13:27.360 --> 00:13:29.559 they're in New York. Only New Yorkers are fine living 291 00:13:29.559 --> 00:13:32.240 in condos that I've seen. They like the building living 292 00:13:32.320 --> 00:13:34.399 and a lot of cases sometimes even single ladies, they 293 00:13:34.519 --> 00:13:37.240 make it. They feel like it makes them feel more safe, 294 00:13:37.279 --> 00:13:40.759 they feel more connected to the people, and they're enclosed 295 00:13:40.879 --> 00:13:43.200 and I don't know, it's like a warm blanket that 296 00:13:43.240 --> 00:13:48.200 covers them. So my opinion that there is not going 297 00:13:48.279 --> 00:13:51.120 to be an impact on a housing or the cost 298 00:13:51.159 --> 00:13:54.240 of housing from the fires. Unfortunately, honestly, I know that 299 00:13:54.320 --> 00:13:56.639 this may not be popular amongst people who already own 300 00:13:56.679 --> 00:13:58.960 their homes, and maybe even some realtors. Although if you're 301 00:13:58.960 --> 00:14:00.559 a relter and you don't like the fact what I'm 302 00:14:00.600 --> 00:14:02.919 about to say, I would love to have a conversation 303 00:14:02.960 --> 00:14:05.000 with you. I would love for there to be of 304 00:14:05.039 --> 00:14:08.679 housing correction. I would love for prices to drop, because 305 00:14:09.159 --> 00:14:13.120 the affordability here in California is just it's awful. It's awful, 306 00:14:13.399 --> 00:14:15.600 and I do plan to talk about that in the 307 00:14:15.639 --> 00:14:19.240 next hour. I want to talk more about what it is. Why, 308 00:14:19.360 --> 00:14:22.240 like what can we do to make houses more affordable? 309 00:14:22.720 --> 00:14:24.000 And I mean to give it to you in a 310 00:14:24.039 --> 00:14:26.600 Nutshell'll dig it into a deeper later on. We just 311 00:14:26.639 --> 00:14:29.840 need more houses. It's not realtors. It's not the cost 312 00:14:29.879 --> 00:14:33.480 of insurance, it's not natural disasters, it's none of that. 313 00:14:33.879 --> 00:14:37.120 It is basic supply and demand. And for whatever reason, 314 00:14:37.200 --> 00:14:39.919 the legislators can't wrap their mind around that. 315 00:14:39.919 --> 00:14:41.720 That's the easiest way to fix it. You have to 316 00:14:41.759 --> 00:14:43.240 find a way to make. 317 00:14:43.120 --> 00:14:46.720 It easier for developers who build new construction homes to 318 00:14:46.799 --> 00:14:49.159 make money doing it, and they will fix your problem 319 00:14:49.240 --> 00:14:49.639 for you. 320 00:14:50.559 --> 00:14:51.039 Why. 321 00:14:51.200 --> 00:14:53.799 And that's the other thing with these fires, The thing 322 00:14:53.840 --> 00:14:55.759 that was blowing my mind and that's what I started 323 00:14:55.799 --> 00:14:57.600 to talk about with the insurance stuff, is that when 324 00:14:57.639 --> 00:15:00.279 these insurance companies started looking at the way things were 325 00:15:00.279 --> 00:15:03.080 going in California and they were running the numbers, they 326 00:15:03.080 --> 00:15:05.519 started to say, we're not writing new policies. And that's 327 00:15:05.600 --> 00:15:08.720 because the entire function of their industry, the way that 328 00:15:08.720 --> 00:15:11.639 they make a profit, is assessing risk. And so I'm 329 00:15:11.639 --> 00:15:13.440 sure that they didn't know to the day, or they 330 00:15:13.480 --> 00:15:15.720 didn't know when it was going to happen, but they 331 00:15:15.720 --> 00:15:18.120 had a very strong idea that something was going to 332 00:15:18.159 --> 00:15:21.519 go horribly wrong for their industry, and they didn't want 333 00:15:21.559 --> 00:15:23.279 to get caught up on it. They wanted to mitigate 334 00:15:23.320 --> 00:15:25.759 that risk as much as they could. And so that's 335 00:15:25.799 --> 00:15:29.279 why they stopped writing policies in California, because they knew 336 00:15:29.320 --> 00:15:31.120 something was going to happen. And we should have looked 337 00:15:31.120 --> 00:15:32.799 at that as like a canary in the coal mine. 338 00:15:32.840 --> 00:15:35.519 We should have said, oh, maybe there's something wrong with 339 00:15:35.559 --> 00:15:38.639 the way we're handling homeowners insurance in the state of California. 340 00:15:38.679 --> 00:15:42.279 Maybe it shouldn't be that regulated again. 341 00:15:43.120 --> 00:15:44.840 If I would love to hear from you, hit that 342 00:15:44.879 --> 00:15:47.840 little microphone on the iHeartRadio app and I want to 343 00:15:47.840 --> 00:15:49.639 hear the talkback. I want to know if you left 344 00:15:49.679 --> 00:15:52.840 California or you know someone who left California. I want 345 00:15:52.840 --> 00:15:54.720 to know why, and I also want to know where 346 00:15:54.759 --> 00:15:58.360 you went, where you're going let me know. We're going 347 00:15:58.399 --> 00:16:00.559 to be talking about the difference. You hear what advertise 348 00:16:00.559 --> 00:16:02.519 you see them on television. When we come back, we're 349 00:16:02.519 --> 00:16:05.399 going to talk more about these what I call wholesalers. 350 00:16:05.440 --> 00:16:07.960 These are great people who give you the option of 351 00:16:08.039 --> 00:16:09.600 like I'm just going to pay you cash for your house, 352 00:16:09.639 --> 00:16:12.039 no contingencies, know nothing, and I'm going to make it 353 00:16:12.080 --> 00:16:13.879 as easy as possible for you to sell your house 354 00:16:13.960 --> 00:16:16.399 versus using someone like me, a realtor. We're going to 355 00:16:16.440 --> 00:16:18.000 talk about that more when we come back. 356 00:16:18.440 --> 00:16:21.879 You're listening to KFI AM six forty on demand. 357 00:16:22.000 --> 00:16:22.919 This is justin Worsham. 358 00:16:22.919 --> 00:16:26.399 We're talking southern California real estate. If you're just joining us, 359 00:16:26.480 --> 00:16:30.720 I'm a licensed real estate broker, former KFI board op 360 00:16:30.879 --> 00:16:33.919 and producer and just general I just was listening at 361 00:16:33.960 --> 00:16:37.039 last promo. I have an unhealthy I think love for 362 00:16:37.120 --> 00:16:40.080 Gary and Shannon, like I just think they're just they're 363 00:16:40.120 --> 00:16:41.679 They've done a lot for me, so I got a 364 00:16:41.720 --> 00:16:43.919 lot of love for them, but I just I think 365 00:16:43.960 --> 00:16:44.799 the world of them. 366 00:16:44.879 --> 00:16:47.720 They're great people and I just love their show so much. 367 00:16:48.559 --> 00:16:50.919 Robin, I understand we had somebody who was nice enough 368 00:16:50.919 --> 00:16:53.200 to take advantage of the talkback Can we hear that? 369 00:16:53.240 --> 00:16:54.360 Can you help me with that? Please? 370 00:16:55.399 --> 00:16:58.519 Hello, great idea for a show I would like to know. 371 00:16:58.919 --> 00:17:01.480 Is it true if you house is on the market 372 00:17:01.600 --> 00:17:05.640 for more than sixty days, you as the buyer lose 373 00:17:05.839 --> 00:17:08.640 all your negotiating tactic. 374 00:17:08.799 --> 00:17:12.319 Thank you, that's a great question from Kathleen. Thanks for 375 00:17:12.640 --> 00:17:14.839 using the talkback feature. If you also have a question, 376 00:17:15.200 --> 00:17:17.200 I would love to do that. So if you're listening 377 00:17:17.200 --> 00:17:19.759 on the iHeartRadio app and you have a question, hit 378 00:17:19.759 --> 00:17:21.720 that microphone in the top and it lets you, I think, 379 00:17:21.839 --> 00:17:24.240 leave like a twenty five second voice clip that you 380 00:17:24.279 --> 00:17:26.160 could send us as a voice memo and we get 381 00:17:26.160 --> 00:17:26.839 to listen to it. 382 00:17:27.400 --> 00:17:29.440 Now. I'm going to guess that probably much. 383 00:17:29.480 --> 00:17:31.079 I hope it's not coming through, but I would be 384 00:17:31.160 --> 00:17:33.160 lying if I didn't say I was a little bit nervous. 385 00:17:33.200 --> 00:17:35.359 I'm weirdly enough, I'm nervous because I felt like I 386 00:17:35.400 --> 00:17:37.440 would be more nervous when I don't know if I 387 00:17:37.440 --> 00:17:39.279 told you this when I first started the show the 388 00:17:39.359 --> 00:17:41.599 first time I ran the board Robin, You'll get an 389 00:17:41.599 --> 00:17:43.839 amusement out of this. The first time I went to 390 00:17:44.000 --> 00:17:46.880 just hit the first button to fire into the lead 391 00:17:46.920 --> 00:17:49.319 of the show, I blanked on all of the training, 392 00:17:49.400 --> 00:17:52.440 had no idea. I thought I forgot everything how everything worked, 393 00:17:52.559 --> 00:17:54.640 and I almost passed out and got lightheaded. 394 00:17:54.680 --> 00:17:56.359 And I have zero of that right now. 395 00:17:56.400 --> 00:18:00.000 I almost feel weirdly too comfortable, which it brings its 396 00:18:00.039 --> 00:18:02.240 zone sets of nerves. But I think, Kathleen, the reason 397 00:18:02.240 --> 00:18:05.920 you're asking your question about sixty days negotiating for a buyer, 398 00:18:06.000 --> 00:18:08.240 what you meant is as a seller. And here's why 399 00:18:08.279 --> 00:18:10.079 I'm gonna say that. I'm gonna answer both ways, just 400 00:18:10.079 --> 00:18:13.640 to be fair. If you are a buyer and you 401 00:18:13.680 --> 00:18:15.440