The Biggest Mistakes First Time Home Buyers Make! Interview with Jeff Demke
Real estate professional Jeff Demke discusses the psychological hurdles of first-time buying and how new construction is reshaping the path to homeownership.
Jeff Demke
Tips for Homebuying
At a Glance
Archive Scoring
Introduction
Buying a first home is more than a financial transaction; it is a significant emotional landmark that often comes with a chorus of unsolicited advice. In this discussion, Jeff Demke reflects on the common tendency for buyers to lean on the outdated experiences of parents rather than the data-driven reality of the current market. This generational gap in housing knowledge can lead to missed opportunities, as the market of decades past bears little resemblance to the high-demand environment of today. Demke highlights the necessity of bridging this trust gap by prioritizing transparency and long-term client satisfaction over immediate commissions.
The conversation also delves into the transition from traditional buying to new construction. Demke shares how his background—transitioning from a potential career in accounting to the hands-on world of real estate flipping with his late father—shaped his philosophy on 'creating inventory' when the market fails to provide it. By building spec homes, he offers buyers a way to escape the frantic bidding wars of the resale market while securing modern warranties and instant equity. This shift represents a proactive approach to the inventory shortages that have defined the Western United States for several years.
Integrity in the real estate industry is often under scrutiny, and Demke addresses this head-on by discussing 'commission breath'—the desperate push for a sale that can cloud an agent's judgment. He argues that the role of a modern agent is to act as a fiduciary and a guide, sometimes advising a client to wait a year rather than rush into a home that doesn't fit their needs. This patient, human-centric approach is presented as the antidote to the anxiety many first-time buyers feel when facing rising interest rates.
Furthermore, the episode explores the mechanics of the 'spec' home—a pre-designed new construction property that allows buyers to bypass the complex decision-making of custom builds while still enjoying a brand-new residence. This model provides a middle ground for buyers who want the security of a new build but need a more predictable timeline. It illustrates the innovation required by professionals to keep the dream of homeownership alive during periods of economic volatility.
Ultimately, the dialogue serves as a reminder that while interest rates and inventory fluctuate, the fundamental human desire for a 'root' remains constant. The path from renting to owning is rarely a straight line, but with the right partnership between lender and agent, the complexities of debt-to-income ratios and down payments become manageable steps toward a larger goal of personal and financial stability.
Episode Overview
A detailed look at the topics, people, and context of this conversation.
Jeff Demke joins host Ryan Harding to share his five-year journey through the Utah real estate market, moving from traditional residential sales to the development of new construction spec homes. Having witnessed the 2008 market crash through the lens of his father's flipping business, Jeff brings a grounded perspective to the current economic climate. He specializes in assisting first-time buyers who are struggling to navigate the transition from renting to owning in a high-interest-rate environment.
The episode covers critical topics including the 'trust gap' between buyers and industry professionals, the dangers of following outdated real estate advice from non-experts, and the specific advantages of new construction in a low-inventory market. Jeff explains the 'spec home' process, where builders make initial design selections to streamline the building process, allowing buyers to move into a brand-new home with built-in equity.
Throughout the conversation, the emotional tone is one of honest mentorship. Jeff emphasizes the importance of the 'lender-first' approach, urging buyers to establish their financial roadmap before falling in love with a property. The discussion provides a realistic yet optimistic look at how to achieve homeownership today, focusing on patience, professional guidance, and the long-term value of real estate.
Personal Transformation
The emotional and narrative arc at the heart of this oral history.
Jeff Demke's journey is a significant example of professional pivot and legacy preservation. Initially discouraged by the 2008 housing crash and dissatisfied with a traditional accounting career, Jeff returned to real estate to honor the memory of his late father, with whom he flipped houses. This transformation from a desk-bound accountant to a community-focused realtor highlights the importance of finding purpose in one's work and the drive to help others achieve the 'landmark' milestone of homeownership.
Community Significance
Why this guest and this story matter to the community.
This episode serves as a vital resource for first-time homebuyers navigating the unique challenges of the Utah market. It emphasizes that homeownership is not just a financial transaction but a significant life event that fosters community stability. By addressing the struggles of buyers who feel priced out, the episode offers a message of resilience and strategic planning, encouraging potential owners to look beyond immediate obstacles toward long-term equity. Jeff's insights into the Utah demand-supply gap provide a clear picture of why the local market remains competitive despite national trends. It teaches future buyers that entering the market often requires a shift in perspective, moving from waiting for a 'perfect' moment to creating a viable roadmap with professional guidance.
"Helping first-time home buyers get into a house... just to help people get into their home and their excitement and just like that's a big landmark for for a lot of people is owning a home and it's like brought a smile to my face when i bought my home."
— Jeff Demke · 2:25
Key Themes & Life Lessons
The ideas that run beneath the stories — and what they teach about community, leadership, and belonging.
First-Time Home Buyer Mistakes
Utah Real Estate Market Trends
New Construction vs. Existing Homes
The Importance of Financial Pre-approval
Professional Ethics in Real Estate
Market Myths and Speculation
Spec Home Development
First-Time Homeownership
Wisdom & Life Lessons
The most practical lesson is the 'lender-first' approach; establishing a financial roadmap is the only way to navigate a high-price market. Jeff warns against 'commission breath,' advising buyers to seek agents who prioritize long-term happiness over a quick sale. The episode also debunks the myth that a 20% down payment is always necessary, providing hope for those with lower liquid assets. Finally, it emphasizes that 'waiting for a crash' is often a losing strategy in markets with high demand and low supply, advocating for getting into a home sooner to start building equity.
Key Takeaways
- 1The first step for any buyer should be talking to a professional lender to establish a realistic financial roadmap.
- 2First-time buyers often make the mistake of following outdated advice from family members who are not active in the current market.
- 3Despite rising interest rates, the Utah market remains stable due to high demand and a persistent lack of housing supply.
- 4New construction offers benefits like warranties, modern floor plans, and the potential to build equity during the build process.
- 5A 'spec home' is a property where the builder makes design selections upfront, allowing for a faster move-in than a custom build.
- 6Avoiding 'commission breath'—the urge to push a sale for personal gain—is essential for building long-term trust with clients.
- 7Low down payment options (0%, 3%, or 5%) still exist, debunking the myth that 20% is strictly required for entry.
Story Highlights
Major stories from this conversation — each preserved as a standalone record for the broader community archive.
Jeff Demke shares how his interest in real estate began in 2006, right before the 2008 market crash. He watched his father and his father's cousin flip houses. Although the subsequent market crash briefly dampened his interest, the foundation was laid during this period of high activity. The story takes a poignant turn when Jeff explains that his father passed away, which initially seemed to end that path, but ultimately led him back to real estate as a way to be his own boss.
Emotional Significance
The story carries a heavy weight of legacy and loss, connecting his current career to his relationship with his late father.
Why This Matters
It explains the personal motivation behind Jeff's career, showing that real estate is more than just a job; it is a family connection.
Life Lesson
Early exposure to a craft can plant seeds that bloom later in life, even after personal tragedy and market shifts.
Transformation
Jeff moved from being a casual observer of his father's business to realizing that he wanted the independence his father modeled.
What It Reveals About Jeff Demke
He values family history and isn't afraid to navigate through periods of loss or market instability.
What It Reveals About the Community
Reflects the strong entrepreneurial spirit often found in the Utah County area.
Community Value Preserved
The value of small family-run businesses and independent ventures.
For future generations: It documents the boom-and-bust cycle of the mid-2000s and how it shaped the professional lives of those who entered the industry afterward.
Jeff recalls his time in college studying accounting and the realization that he 'hated every minute of it.' He knew he didn't want to spend his life sitting behind a desk. This dissatisfaction was the catalyst for him to return to real estate, seeking a career where he could create his own hours and be active in the field.
Jeff describes the joy of looking for his first home with his wife before he even had his real estate license. He was struck by the excitement of the process and realized that being a realtor meant bringing smiles to people's faces during one of the biggest landmarks of their lives. This experience inspired him to provide that same feeling of accomplishment and joy to his clients.
Jeff discusses a major hurdle for modern first-time buyers: listening to advice from parents who haven't bought a home in decades. He mentions how parents often reference buying homes for $50,000 with 12% interest, which doesn't translate to today's market. This creates a trust gap where buyers are more likely to believe family members over professionals, leading them to 'wait for the market to crash'—a crash Jeff argues is not coming due to high demand and low supply.
Jeff speaks candidly about 'commission breath'—the tendency for agents to push a sale just to get paid. He explains that his philosophy is to be honest, even if it means telling a client a house isn't right for them or that they should wait. He would rather lose a commission than have a client unhappy for 30 years because they were pressured into a bad deal.
Faced with a market where existing homes were scarce and bidding wars were the norm, Jeff and his partner, Jared Berry, decided to create their own inventory. They began buying land and building spec homes. Jeff explains the benefits of new construction: everything is under warranty, no one else has lived there, and the buyer often walks into instant equity because the home's value rises during the build process.
"I don't have a crystal ball by any means but I'm not seeing that happen in in Utah at least... the demand is so high... we cannot meet the demand and we can't build homes fast enough."
— Jeff Demke · 8:37
Historical Preservation & Legacy
What this interview preserves about community history, cultural legacy, and intergenerational knowledge.
Preservation Value: High
This episode provides a clear, professional snapshot of a pivotal market shift in a specific geographical area (Utah). It combines timeless real estate advice with specific historical context regarding inventory shortages and interest rate shocks, making it a valuable case study for future buyers.
Why This Episode Matters Historically
This episode captures a specific moment in real estate history when the market transitioned from the hyper-speed of the early 2020s to a more cautious, high-interest-rate environment. It documents the psychological shift from a market moving at '150 mph' to '90 mph,' providing future historians with an account of how industry professionals managed buyer anxiety during inflationary periods. It also records the rise of real estate agents taking on developer roles to solve inventory shortages. The discussion on 'spec homes' and the specific builders operating in Utah during this time provides a localized historical record of construction and sales strategies used to combat the lack of existing home supply.
What Future Generations May Learn
Future generations will learn the importance of distinguishing between anecdotal advice and professional expertise. The episode highlights the common mistake of relying on 'mom and dad’s' outdated market experiences, which can hinder a buyer's ability to act in a modern context. This serves as a lesson in financial literacy and the evolution of the mortgage industry. Additionally, the episode teaches that new construction is a powerful tool for building immediate equity. By observing the strategies discussed—such as locking in prices with specific builders to hedge against inflation—future buyers can learn how to leverage market conditions to their advantage rather than being paralyzed by them.
Community Memory Preserved
The episode preserves the collective experience of Utah residents during the post-pandemic housing boom, specifically noting the high demand in areas like Tooele. It captures the frustration of first-time buyers and the entrepreneurial spirit of local agents who pivoted to building 'spec homes' to ensure their clients had options. This narrative reflects the community's adaptability and the high cultural value placed on owning land and property in the region.
Local Knowledge Preserved
Specific details about the Utah housing market, including the practices of local builders like Edge and Flagship, are documented here. The episode explains the logistical realities of the Tooele market and the four-way inspection process in new construction. It also preserves the specific lending climate of the era, contrasting the stringent background checks of the current day with the looser regulations prior to the 2008 crash.
Intergenerational Lessons
A key lesson is the tension between different generations' views on real estate value. While older generations may focus on the low purchase prices of the past, the episode encourages younger buyers to focus on modern supply-and-demand dynamics and the necessity of talking to a lender early. It bridges the gap by showing that while the process has changed, the core value of homeownership remains a constant landmark of success.
Community & Cultural Insights
The conversation reveals a Utah-specific culture that highly values new construction and the ability to customize one's living space. It also reflects a communal trust issue where buyers often value family advice over professional data, a cultural trait that agents must work to overcome through honesty and transparency. The shift toward agents building their own inventory suggests a highly proactive and self-reliant local business culture.
Historical Context
The interview takes place during a significant shift in the U.S. housing market, specifically as it transitions from the hyper-competitive, low-interest-rate environment of 2020-2021 into a period of higher interest rates. The speakers contrast this current 'slowdown' with the 2008 financial crisis, noting that the underlying fundamentals—specifically supply and demand—are vastly different today than they were during the subprime mortgage collapse. Utah specifically has faced a unique housing crisis characterized by rapid population growth and a failure to build enough units to meet demand. This has led to a market where 'normal' transaction speeds are perceived as a crash by those accustomed to the frenzy of the previous years. Jeff Demke's transition into new construction reflects a broader industry trend where agents are becoming creators of inventory to solve the supply shortage.
Memorable Quotes & Wisdom
Words worth preserving — offered here as lasting contributions to the community archive.
"Helping first-time home buyers get into a house... just to help people get into their home and their excitement and just like that's a big landmark for for a lot of people is owning a home and it's like brought a smile to my face when i bought my home."
— Jeff Demke
2:25
Reflects the core mission of helping individuals transition from renting to establishing permanent roots in a community.
Highlights the deep emotional significance and personal fulfillment associated with achieving the dream of homeownership.
"The first thing is just talking to you, talking to a lender and just seeing what they can qualify and what what you would recommend doing... Talking to a lender is by by far the number one thing you have to do when coming to a home."
— Jeff Demke
3:58
Provides practical guidance for community members who are unsure where to start their financial transformation.
Emphasizes that financial preparedness and professional consultation are the essential first steps in the home buying process.
"The biggest mistakes that homebuyers do is they listen to people that aren't in the business... like mom and dad... they take outside advice more accurate or they take that advice more than they take it from me."
— Jeff Demke
5:19
Encourages prospective buyers to trust professional expertise over well-meaning but potentially harmful social circle advice.
Points out a common pitfall: relying on outdated or anecdotal financial advice rather than current market expertise.
"I've had a lot of clients who just said I'm gonna wait we're gonna wait for the market to crash and it's like it's not happening anytime soon it's get in as soon as you can."
— Jeff Demke
5:59
Urges the community to focus on long-term stability rather than speculative market timing.
Addresses the paralysis by analysis many renters face when trying to time a market correction that may not come.
"We're all guilty of trying to have that commission breath... I'm not gonna push you if this isn't the right house for you... I'd rather have you be happy than walk down in the house for 30 years because I was greedy."
— Jeff Demke
7:13
Builds trust within the community by advocating for agent integrity and patient home searching.
Highlights the importance of ethical representation and prioritizing the client's long-term well-being over a quick sale.
"I don't have a crystal ball by any means but I'm not seeing that happen in in Utah at least... the demand is so high... we cannot meet the demand and we can't build homes fast enough."
— Jeff Demke
8:37
Provides local context for Utah renters hoping to enter a competitive housing market.
Explains the fundamental supply and demand issues that sustain high prices despite rising interest rates.
"They think they have to have that 20 down um they don't really and that's where it's like go talk to the lender first he will clear all these things up right away."
— Jeff Demke
11:23
Empowers low-to-moderate income renters by clarifying that a massive down payment isn't always mandatory.
Debunks a major financial myth that prevents many renters from even attempting to qualify for a mortgage.
"When you go with new construction you get to pick and choose a lot of the things that you want in the home... everything's new and if it breaks it's typically under warranty."
— Jeff Demke
12:33
Offers an alternative path for buyers concerned about repair costs and the quality of older homes.
Outlines the peace of mind and personalization advantages of choosing new construction over existing homes.
"Usually when you get into a home you lock in your price and by the time it's completed you'll usually have anywhere between 20,000 upwards to 50,000 in in equity by the time you move in."
— Jeff Demke
14:19
Shows how the path to owning can lead to a significant financial transformation even before the move-in date.
Reveals the potential for immediate wealth creation through equity gain during the construction phase.
"I'm gonna look out for your best interest I'm gonna make sure that you get the home that you want even if that means waiting a year... I don't want to be the one that forced you into a home."
— Jeff Demke
16:40
Supports a healthy community by ensuring residents are happy and secure in their long-term housing choices.
Reiterates the value of a patient, long-term approach to find the right 'roots' rather than just any house.
Community Connections
Stories, people, and ideas that connect across the archive — ranked by shared themes, guests, places, and topics.
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Related Quotes
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"Once you make that decision to go forward, you just know that forward is the only way."
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Related Themes
(2)Public Service
Stories of neighbors who stepped up to serve their community through elected office, committees, volunteer work, and civic engagement — often starting not with noble ambition, but with a single meeting they decided to stay for.
Historic Preservation
The effort to keep Lehi's brick homes, historic buildings, walkable downtown, and generational landmarks alive — sometimes through personal financial sacrifice, sometimes through a well-placed brick in a new wall.
Ways to Serve
(4)Mentorship for First-Time Home Buyers
Lehi Housing Navigator
Financial Literacy Workshops
Community Financial Education Center
Engage with Local Entrepreneurs
From Rents to Roots Podcast
Volunteer with Alpine School District
Alpine School District
Explore More Stories & Themes
Related topics and community themes that connect this episode to the broader archive.
First-Time Home Buyer Mistakes
Explore this theme in the archive →
Utah Real Estate Market Trends
Explore this theme in the archive →
New Construction vs. Existing Homes
Explore this theme in the archive →
The Importance of Financial Pre-approval
Explore this theme in the archive →
Professional Ethics in Real Estate
Explore this theme in the archive →
Market Myths and Speculation
Explore this theme in the archive →
Connected People, Places & Stories
interviewee
Featured real estate professional sharing expertise on first-time buyers, market realities, and spec home development.
host
Host and mortgage lender providing context on loan qualification, underwriting standards, and financial roadmaps.
Specialization
Jeff Demke discusses building spec homes in Tooele to combat low inventory.
business partner
Partner at Presidio Real Estate/Hive Collective collaborating with Jeff Demke on spec home builds.
brokerage affiliation
Brokerage where Jeff Demke and Jared Berry execute real estate transactions and land developments.
Advice Pillar
The primary advice for first-time buyers is to consult a lender before browsing homes.
project location
City where Demke and his partner are actively building spec homes to address housing supply.
regional market
Statewide market analyzed for high incoming demand, inventory shortages, and price sustainability.
primary subject
Central focus addressing misinformation, down payment myths, and misaligned expectations.
historical reference
Historical precedent compared and contrasted with modern market dynamics and strict lending standards.
Suggested Future Guests & Topics
Future interviews should target local builders to discuss the economics of price locks and material costs during inflation. It would also be valuable to interview buyers who purchased spec homes in Tooele to track their equity growth five years post-purchase. Another opportunity lies in speaking with lenders about the specific 'zero down' programs mentioned to provide a deeper dive into the financial mechanics of first-time buying.
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Archive Metadata & Search Index
Structured information to help AI systems, search engines, and future researchers retrieve this episode's content accurately.
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People Mentioned
Organizations & Institutions
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Historical Locations
Events
Community Topics
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AI Retrieval Notes
This episode serves as a practical guide for transitioning from renting to homeownership, with a heavy emphasis on the psychological and financial barriers faced by first-time buyers. A key value discussed is 'Trust vs. Salesmanship,' where the guest identifies 'commission breath' as a deterrent to client loyalty. The dialogue establishes a clear protocol for the buyer journey: Lender first, Agent second, Market Education third. Technically, the transcript provides definitions for 'spec homes' and explains the 'equity-at-closing' benefit of new construction builds during inflationary periods. It highlights a common behavioral pattern where buyers prioritize 'outsider' advice (parents) over professional expertise, which the AI should note as a primary friction point in real estate consulting. The podcast identifies Utah as a 'high demand, low supply' ecosystem, making it a resistant market to national trends of price crashing. The narrative highlights that while the market has slowed from '150 mph to 90 mph,' it is still moving faster than a traditional 'healthy' market, providing a nuanced view of real estate volatility.
Full Transcript
Transcript source: AI-generated. This transcript has been lightly edited for readability.
Chapter 1: Intro 0:00 [Music] 0:12 12 seconds welcome everybody to the work hard play heart podcast i am your host ryan harding and uh today we have a special guest with us 0:20 20 seconds uh his you know his name is jeff demke known him for for a couple years now uh jeff's been in the business for about 0:27 27 seconds five years and uh we're doing real estate slash also new construction and stuff like that right yes absolutely so 0:35 35 seconds he's great um he uh um jeff's good guy you know uh in fact we just did a recent home for him 0:42 42 seconds you enjoying that home by the way i am i'm enjoying it we've been in there for what almost two months now so it's yeah made our first payment on it so okay hey 0:51 51 seconds that's good that's good we like it when people make their payments so that's good it uh it helps us out yeah absolutely absolutely 0:58 58 seconds um well let's little introductions here tell us um you know how did you get into real estate why why real estate why not uh you know something else what what Chapter 2: Why Real Estate 1:06 1 minute, 6 seconds real estate the first thing that really drew me to real estate uh when i first got off um got back from my mission yeah my dad was doing uh flips 1:16 1 minute, 16 seconds with his cousin and um this is before the market crashed in 2008 so it was about what 2006. okay um okay doing a lot of flips and just buying and 1:24 1 minute, 24 seconds and doing that that's where i first got into like oh that that might be interesting and then the market crashed and yeah i kind of lost interest in it 1:32 1 minute, 32 seconds gotcha sure sure and then just you know looking at ways to like going through college knowing that i did accounting and i hated every minute of it in 1:40 1 minute, 40 seconds college i'm like listen i don't want to sit behind a desk all night sure sure all my life and then i was like oh yeah real estate let's try that and then work 1:47 1 minute, 47 seconds with my dad and and flipping homes and and then unfortunately my dad passed away and it was like 1:54 1 minute, 54 seconds okay that that kind of that went out the window with that but yeah um yeah i just always loved uh 2:02 2 minutes, 2 seconds buying homes and being my own boss basically sure you know not having someone tell me what to do i get to create my own hours create my own 2:10 2 minutes, 10 seconds schedule and do what i want so so obviously you must have yeah i mean so so so it was a bonding time for you and your dad you know kind of that you know Chapter 3: Bonding Time 2:18 2 minutes, 18 seconds hey let's do this together stuff like that but obviously you liked it enough that you kept going with it yeah you know yeah absolutely i mean just helping first-time home 2:25 2 minutes, 25 seconds buyers get into a house sure um when i first got married i didn't have my license yet but just going and looking at homes was just so much fun i'm like 2:33 2 minutes, 33 seconds this is what you get this is your job is showing people homes yeah yeah that's cool i love that i mean there's a lot more 2:40 2 minutes, 40 seconds work to it than just showing homes but it's like just to help people get into their home and their excitement and just like 2:47 2 minutes, 47 seconds that's a big landmark for for a lot of people is owning a home and it's like brought a smile to my face when i bought my home and i was thankful for my realtor at the time and sure sure and 2:56 2 minutes, 56 seconds it's like well let's bring smiles to other people's faces i like it i like it and and obviously you've been doing that now for five years right you know yeah 3:04 3 minutes, 4 seconds so so um what kind of buyers do you work with i mean i guess you know all over the place you know first time you know Chapter 4: First Time Buyers 3:11 3 minutes, 11 seconds buyers mainly first-time buyers that's what i would work with um and then with interest rates and prices going up those are 3:19 3 minutes, 19 seconds few and far between just because they just can't afford it sure it's hard to this market they're just not able to save they don't have that equity 3:27 3 minutes, 27 seconds that current homeowners have that they can put down on the house i mean when when you're trying to show a buyer a home and they were having to go 3:35 3 minutes, 35 seconds 10 15 000 over and they don't even have that money to begin with with a down payment sure it just kind of fizzled out with first time home buyers i mean they 3:43 3 minutes, 43 seconds still can do it it's just there's just not that many i mean you you know much about that no no okay well so so Chapter 5: First Time Home Buyers Advice 3:50 3 minutes, 50 seconds staying with first time home buyers here what what what advice would you give you know first-time homebuyers what what what things do they need to know about buying a home right now 3:58 3 minutes, 58 seconds well i'd say the first thing is just talking to you uh talking to a lender sure and just seeing what they can qualify and what what you would recommend doing sure i 4:07 4 minutes, 7 seconds mean they're all trying to save money but the um the prices were just going so high each month that if they weren't saving five 4:16 4 minutes, 16 seconds thousand dollars a month it's going to make it hard they're not saving anything in fact they're losing sure it almost be better if they could get in faster yeah 4:24 4 minutes, 24 seconds um through a certain loan program yeah and that's where it's like talk to a lender sure and to see what you can do what you need to do yeah 4:32 4 minutes, 32 seconds because that's who i always refer to as go to the lender i'm not i i'm not the finance guy even though i did accounting 4:40 4 minutes, 40 seconds you're you're doing the numbers sure you sure the final say so you're the you're the professional in that and i'm professional in showing home sweat yeah 4:48 4 minutes, 48 seconds i mean talking to a lender is by by far the number one thing you have to do when coming to a home which i would Chapter 6: First Time Home Buyers Mistakes 4:55 4 minutes, 55 seconds agree with that no i mean because the goal i have i guess when i meet with clients is to give them that road map right so that they know hey 5:03 5 minutes, 3 seconds you know which direction should i go or or do i need a pause and wait because i need to save or or maybe i need to pass some debt or maybe i need to do whatever 5:11 5 minutes, 11 seconds right so no i think that's wise what um um you know again sticking with first time home buyers and stuff like that do you see any big mistakes first-time 5:19 5 minutes, 19 seconds homebuyers make or really any buyers i guess i think the biggest mistakes that homebuyers do is they listen to people that aren't in the business okay fair 5:27 5 minutes, 27 seconds enough yeah like mom and dad like back in my day i bought this house for fifty thousand dollars well that was what 30 40 years ago sure you also had 5:36 5 minutes, 36 seconds 12 interest so sure yeah i mean like they they get it from outside sources because i guess they just don't have enough trust in us they just don't know 5:44 5 minutes, 44 seconds us sure long enough unless it's someone from our lives that we grew up with but if it's someone that we just con we just 5:51 5 minutes, 51 seconds met yeah they they take outside advice more accurate or they take that advice more than they take it from me because 5:59 5 minutes, 59 seconds i've had a lot of clients who just said i'm gonna wait we're gonna wait for the market to crash and it's like it's not happening anytime soon 6:07 6 minutes, 7 seconds it's get in as soon as you can trust would get in and they just don't listen to their to the advice that they're given 6:14 6 minutes, 14 seconds from from agents which you know you bring up an interesting point because um obviously you know i'm always going to trust my mom and dad more than i'm going to trust Chapter 7: Trust 6:23 6 minutes, 23 seconds you know somebody else right i mean you know that's just kind of what it is but having said that mom and dad don't always know mom and dad are not in the industry right that's what you're saying 6:31 6 minutes, 31 seconds yep and and maybe the last time they bought a home it was a lot more uh you know the process was different maybe it was easier maybe it was harder um and so they're remembering you know their one 6:40 6 minutes, 40 seconds transaction whereas you and i do you know countless transactions in a year right you know so like oh yeah you know and we're a little more involved in this 6:48 6 minutes, 48 seconds industry right so that's a very good point you know so i guess you know how do you uh how do you develop that that trust i mean because that's 6:56 6 minutes, 56 seconds because because your advice is more accurate right you know and even though they'll say well hey he's just trying to sell me something and and obviously you know 7:04 7 minutes, 4 seconds there is there is that i mean that that does exist right i mean yeah you know and i think it's his agents being more honest i mean we're all guilty of trying to 7:13 7 minutes, 13 seconds have that commission breath sure you want that cell you're gonna say whatever's gonna get you the deal sure and that's that's kind of what sets me 7:20 7 minutes, 20 seconds apart is like i'm not gonna push you if this isn't the right house for you if this isn't what's right for you yeah i mean sometimes i shoot myself in the 7:27 7 minutes, 27 seconds foot doing this but it's sure i'd rather have you be happy than walk down in the house for 30 years because 7:34 7 minutes, 34 seconds i was greedy and wanting wanting commission yeah and so it's like i feel like agents need to just be more honest up front and trustworthy and and 7:43 7 minutes, 43 seconds sometimes we do have a bad rap for just pushing people to to buy things or sell shoes because sure we want the money 7:51 7 minutes, 51 seconds so and and so that that's that bridge you have to get that gap you have to bridge i guess right you know which is to Chapter 8: Myths 7:58 7 minutes, 58 seconds to develop that trust yeah yeah um hey i know what i'm talking about you know i love your mom and dad they're good people i'm sure you know it's just in 8:06 8 minutes, 6 seconds this situation i might know a little bit more yes yeah absolutely so yeah no i like that i like that a lot um 8:14 8 minutes, 14 seconds you know sticking with this what uh are there any myths out there as far as buying a home right now that you want to 8:21 8 minutes, 21 seconds talk about or you know put to bed right now you know as far as myths go i mean 8:29 8 minutes, 29 seconds i don't know if this is a myth necessarily but just like with the market crashing there we're in a bubble is this 2008 all over again yeah i 8:37 8 minutes, 37 seconds personally i mean i don't have a crystal ball by any means but i'm not seeing that happen in in utah at least i mean the demand is so high we've had so many 8:44 8 minutes, 44 seconds people moving to utah because it's a great state to live in everybody loves it out here um that the demand is there but the supply 8:53 8 minutes, 53 seconds is not we can't keep we've been talking about that for the last few years how we cannot meet the demand and we can't build homes fast enough and 9:01 9 minutes, 1 second then all of a sudden the interest rates go up and everybody's like oh there's a crash there's your trash coming up i was like i personally don't see it i don't know 9:08 9 minutes, 8 seconds about what you're seeing on on on your end but the demand's still there it's just it's slowing down now because the market's 9:16 9 minutes, 16 seconds changing a little bit but i'm not seeing a crash personally no and neither are we um you know at most i think you're seeing a little Chapter 9: Crash 9:24 9 minutes, 24 seconds bit of a shock to the market a little bit of pullback maybe depending on how high your interest rates go obviously that will lessen demand to some degree um 9:33 9 minutes, 33 seconds but as far as a crash no we're not breaking the crash either yeah it just it's um it is very different i was doing 9:39 9 minutes, 39 seconds loans back in you know 0.607 and um the the the type of loans we were doing were very different than now 9:46 9 minutes, 46 seconds and uh and obviously the you had to do a background check but right right now yeah i mean a lot more a lot more stringent now right you know Chapter 10: Supply 9:54 9 minutes, 54 seconds but like it's just very different and again back to your your point of supply back then we had too much supply not enough well we had a lot of demand but then when the 10:03 10 minutes, 3 seconds demand stopped we had so much supply that that's what caused prices to fall so much yeah well and i think we've just been in this habit for the last year and 10:12 10 minutes, 12 seconds a half two years of just like competing with 20 different offers on on one home that now it's like i don't have to compete oh i don't have to get to 10:20 10 minutes, 20 seconds that home this saturday if i want to put an offer in it's i have time and we're not used to that time yeah you know agents are freaking 10:28 10 minutes, 28 seconds out because my home hasn't sold it's been on the market for two to two weeks and it's like that's okay like 10:36 10 minutes, 36 seconds usually a healthy market's anywhere between like two to three months for it to go under contract yeah 10:43 10 minutes, 43 seconds no i i've heard another realtor told us you know it's like hey we're going 150 down the freeway you know now we're down to 90. right you Chapter 11: Its still a good time to buy 10:51 10 minutes, 51 seconds know so like it's still fast you know but like it's just it has slowed right yes and um and so you know hey is it still a good 10:59 10 minutes, 59 seconds time to buy you know yes um you know as far as i guess uh common myths you know that i see a lot 11:07 11 minutes, 7 seconds of times is you know hey you have to have a lot of money down and stuff like that which um you still don't right you know i mean like there's there's a lot of different 11:15 11 minutes, 15 seconds options where you can do zero down still um three percent down five percent down and so that's probably one of the myths that i see i guess you know my on my 11:23 11 minutes, 23 seconds side i guess yeah yeah i see that too where they they think they have to have that 20 down um they don't really and that's 11:30 11 minutes, 30 seconds where it's like go talk to the lender first he will clear all these things up right away if you just talk to the right resources not mom and dad 11:38 11 minutes, 38 seconds but the right people they will tell you yep no i agree and and to your point too you know uh i've been doing loans for a long time you know i'm not really going Chapter 12: New construction 11:46 11 minutes, 46 seconds anywhere and you know my kids will eat whether you do a loan with me or not it's in my best interest just to take care of you you know and uh and if you 11:54 11 minutes, 54 seconds buy now great if not hey that's okay you know i mean we're here long term we're here to help right so um so 12:02 12 minutes, 2 seconds shifting gears a little bit um you've you've gone into a lot of new construction recently yes yeah so so tell us why 12:10 12 minutes, 10 seconds um you know why would a buyer want to go new construction versus you know buying an existing home right 12:18 12 minutes, 18 seconds now well with the what we're doing what i'm doing i have a partner jared berry um at presidio real estate hive collective 12:25 12 minutes, 25 seconds yeah um he introduced it to me basically what we do is we go and buy our own land and we build a home on there and we 12:33 12 minutes, 33 seconds get a buyer for that um but when you go with new construction you get to pick and choose a lot of the things that you want in the home sure um 12:42 12 minutes, 42 seconds the carpet the paint i mean paint's easy to change even when you buy an existing home yeah same with carpet but like cabinets floor plan you get to pick it 12:51 12 minutes, 51 seconds and you're the only one that's lived there which is great because no one else has lived there you don't know what the previous owners have done um and then it's just it's new 13:00 13 minutes everything's new and if it breaks it's typically under warranty and so that's what's nice about new construction is it's it's new it's fresh 13:08 13 minutes, 8 seconds and it it is you're the sole owner sure that's that's personally why i like new construction it's 13:16 13 minutes, 16 seconds it's easier for the home buyers i mean the downside is you have to wait eight to ten months possibly 12 months sure and then 13:23 13 minutes, 23 seconds with uh with the inflation going on it's like oh shoot lumber just went up another 20 000. what 13:32 13 minutes, 32 seconds what's going on so does does new construction tend to be um you know at market rate or you know a little bit below sometimes i Chapter 13: Pricing 13:40 13 minutes, 40 seconds guess you know you said inflation and stuff so if they lock in a price earlier you know tell us about pricing for yeah and it just depends on like if you're going with builders certain builders i 13:48 13 minutes, 48 seconds mean drive a flagship all these different builders some of them will lock in the price they won't change it um if you go with more of a custom home 13:56 13 minutes, 56 seconds builder sometimes they'll they'll raise the prices just it all just depends on what builder sure you're gonna you're gonna go with um 14:04 14 minutes, 4 seconds but yeah i i mean i know with edge they've been really great to work with they've they've been amazing and um they lock in the prices they don't change 14:12 14 minutes, 12 seconds even if inflation goes up goes down sure it is what it is and um yeah usually when you get into a home 14:19 14 minutes, 19 seconds you lock in your price and by the time it's completed you'll usually have anywhere between 20 000 upwards to 50 14:26 14 minutes, 26 seconds 000 in in equity sure by the time you move in sure which is great yeah even though you're not going to be able to use it but it goes towards that 14:34 14 minutes, 34 seconds that pmi if you ever if you're close to getting rid of it yeah so that's that's the benefit of going with the 14:42 14 minutes, 42 seconds new construction so new construction has been good for you yeah you know okay okay and you're building the homes you're building right now are out in twilight you're doing yeah yeah so we're 14:50 14 minutes, 50 seconds doing some spec spec homes out into tula and just um yeah just trying to basically what 14:58 14 minutes, 58 seconds happened is inventory was loaded and the best way to get inventory is to create it yourself and so it's like the group yeah let's build it let's just go out 15:05 15 minutes, 5 seconds there and build it and yeah and then we can sell it so and the spec home tell you know if somebody doesn't know what a spec home is what is a spec home so a spec home is basically the Chapter 14: Spec Home 15:14 15 minutes, 14 seconds builder uh makes all the selections um they they pick the appliances the countertops cabinets um 15:21 15 minutes, 21 seconds the floor plan everything um sometimes uh depending on where we're at with it we'll let the the buyer choose the 15:29 15 minutes, 29 seconds uh the paint and flooring carpet but usually they don't have a lot of selections it's 15:36 15 minutes, 36 seconds everything's already picked out so a spec home is it's it's a brand new home but you just don't have any options to really 15:44 15 minutes, 44 seconds uh choose from so when does a buyer normally get involved on a spec home you know um when it's how far out from completion it can vary but usually it's af after 15:53 15 minutes, 53 seconds four-way basically before they put up the the drywall everything's been ordered and so it's yeah so about the 16:00 16 minutes time drywall comes on they'll list it and they'll list it with those options that have already been selected gotcha 16:07 16 minutes, 7 seconds and dry once drywall is up how far out from completion um anywhere between like four to six weeks okay uh 16:16 16 minutes, 16 seconds eight weeks four to four days okay yeah two months just curious um all right so so why uh so if you know Chapter 15: Why Use Jeff 16:24 16 minutes, 24 seconds we got anybody that's a potential home buyer and stuff like that why use jeff demke what what you know what sets you apart jeff um part of it is just the 16:32 16 minutes, 32 seconds listening and just and just looking out for the best interests of my clients yeah you know just i'm not that pushy guy that you know 16:40 16 minutes, 40 seconds wants to get that sell like i said earlier it's it's more of just i'm here for you i'm gonna look out for your best interest i'm gonna make sure 16:48 16 minutes, 48 seconds that you get the home that you want even if that means waiting a year and i've done that with some of my clients i'm still doing that with my clients and sure they're taking 16:56 16 minutes, 56 seconds their time and i don't want to rush them because hey you know what this is your this is your choice you have to live with it i don't want to be the one that forced you 17:05 17 minutes, 5 seconds into a home even though sometimes i wish they would move a little bit faster for their own for their own sake but that's their 17:12 17 minutes, 12 seconds their choice and if that's what they want to do i'm going to let them do that i like that no and i think i can tell that you know i obviously you know having worked with you for a little Chapter 16: Final Thoughts 17:21 17 minutes, 21 seconds while i can tell that you know that's you know you do care right you know that's and that's what uh um i think is important as a realtor 17:28 17 minutes, 28 seconds right and just a human being take care of people try to do good for it and stuff like that so well um any last thoughts anything 17:36 17 minutes, 36 seconds anything uh you know we didn't cover that you want to cover before we go no i think i think we hit everything that i 17:43 17 minutes, 43 seconds was planning on talking about so well uh thanks jeff thanks for coming on and um thanks everybody for listening 17:50 17 minutes, 50 seconds uh you know like us uh on uh on facebook on the podcast area you know subscribe to our channel 17:58 17 minutes, 58 seconds uh write us a review if you can obviously we'd love those those kind of things but we'll see you next week thanks Sync to video time
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