Growing Destinations

Real Estate Evolution: Navigating Today's Housing Market

• Experience Rochester • Episode 83

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This episode dives into the ever-evolving world of residential real estate. A market that impacts nearly everyone, whether you’re buying, selling, or just trying to understand what’s going on with home prices, interest rates, and inventory.

Minnesota realtors Kimm and Jesse Pastrana are a husband-and-wife team and the founders of Good Move Realty. As successful real estate professionals and entrepreneurs with decades of experience, they have a deep understanding of what it takes to thrive in a shifting housing landscape.

Kimm and Jesse discuss how they got their start in real estate, what’s driven their success, what trends they’re seeing in today’s housing market and advice for new home buyers.

Bill Von Bank:

The Growing Destinations podcast is brought to you by Experience Rochester. Learn more about Minnesota's third largest city, which is home to Mayo Clinic and features wonderful recreational and entertainment opportunities, by visiting experiencerochestermncom.

Jesse Pastrana:

A good agent is going to educate you, not just sell you. You need someone who will guide you, protect your interests and help you stay grounded with emotions. You know when emotions run high, because it's a big investment that you might go through just once in a lifetime.

Kimm Pastrana:

I love the AI aspect. It's really been able to help us enhance our listings to present them well the photography, the virtual staging, the compelling wording for listings. You know it'll be interesting to see what new innovation comes up.

Bill Von Bank:

Welcome to the Growing Destinations podcast, where we take a deep dive into destination development and focus on a wide range of topics from tourism and entertainment to economic development and entrepreneurism and much more. I'm your host, bill Von Bank. Today, we're diving into the ever-evolving world of residential real estate, a market that impacts nearly everyone, whether you're buying, selling or just trying to understand what's going on with home prices, interest rates and inventory. Joining me are Minnesota Realtors, kimm and Jesse Pastrana, a husband and wife team, and the founders of Good Move Realty. As successful real estate professionals and entrepreneurs with decades of experience, they have a deep understanding of what it takes to thrive in a shifting housing landscape. In this episode, we'll talk about how they got their start in real estate, what's driven their success, what trends they're seeing in today's housing market and advice for new home buyers. Kimm and Jesse Pastrana, welcome to the Growing Destinations podcast.

Kimm Pastrana:

Thanks, bill, thanks.

Bill Von Bank:

Let's start with your story. You've been doing this a long time. How did each of you get into real estate at the same time? Or walk us through that journey.

Kimm Pastrana:

We started young. I was 24 when I got my real estate license and actually got my license. It sounded like it would be a fun job to do and we wanted to build something for ourselves and build a business and help people, so it sounded like a great fit. Jesse joined me a couple of years later. I'm a couple of years older than him, so he was also 24 when he started.

Jesse Pastrana:

Right right. I saw the need in the Hispanic community for someone to be able to speak Spanish at that time. So Kim mentioned to me hey, maybe you should get into this because it's a big need for that.

Bill Von Bank:

So I jumped in and I've been on a sense and you started working for someone else before you became your own brokerage firm, correct?

Kimm Pastrana:

Correct, we worked for another broker for six years, I think it was yeah something like that.

Bill Von Bank:

What was the motivation to jump in and say let's do this ourselves?

Kimm Pastrana:

You know, I think we wanted to expand and build and kind of establish the rules ourselves and expand into the Spanish-speaking market as well as traditional market, and so we just jumped in and glad we did. We've met a lot of great people and built a lot of great relationships.

Jesse Pastrana:

Right, we were actually learning the business and building the business at the same time when we did that, so it took some time, but I think we got it.

Bill Von Bank:

Was there a defining moment for each of you or experience early on that told you that real estate was right for you?

Jesse Pastrana:

You know, in myself I saw the need, the need for someone, especially in the Hispanic community. There was no one around who spoke Spanish at that time. The Hispanic community was growing and, like I said, Kim mentioned to me hey, there's a big need for that time. The Hispanic community was growing and, like I said, Kim mentioned to me, hey, there's a big need for that community. Maybe you want to give it a try. So I got into it. I loved it. I saw the people's thankfulness for someone to be able to help them in their own language and that just got me motivated and just kept going.

Bill Von Bank:

How about you, Kim, a defining moment for you? That said, yeah, I can do this.

Kimm Pastrana:

You know just that feeling that you get when you help people achieve their dreams. It's just really. You know. Every time you'd see somebody just smiling ear to ear at a closing table, you knew you're on the right path.

Bill Von Bank:

Working as a couple in business can be both rewarding and, I imagine, challenging. How do you complement each other in running the brokerage?

Kimm Pastrana:

Well, Jesse is definitely more of a systems person and, I'd say, more of a big picture person. So that's helpful and we still we don't have it completely figured out together on, you know, big picture versus details, but it uh, it works for us.

Jesse Pastrana:

Yeah, we complement each other that way, I guess.

Bill Von Bank:

What were some of the early challenges you faced when launching your business and how did you overcome them?

Kimm Pastrana:

You know, I would say when we were learning the business, while we were building it and we've gone through a lot of market shifts as well and learning how to be agile through those market shifts, and that's, I guess, one of the key keys.

Jesse Pastrana:

Be able to adjust to whatever the market at that time you're facing is really one of the biggest things that I think have enabled us to keep moving in the market for so long, and you've been doing this a long time and there have been some big market shifts.

Bill Von Bank:

I think back to probably 2008, 9, 10 timeframe. Was that the toughest time for you in this biz, or were there other challenges?

Kimm Pastrana:

You know there's been other challenges. Interest rates are always play a role. That mortgage crisis was definitely something to live through and now we've got our own challenges in this market. But there's opportunities at the same time. Higher rates but there is slightly more inventory, but we still have a housing shortage.

Bill Von Bank:

That was leading into my question about the current state of real estate. You often hear people say, oh, it's a buyer's market or it's a seller's market. Jesse, where are we in that plane? Are we a buyer's market, seller's market or a combination?

Jesse Pastrana:

It's still a seller's market. I think it's shifting just a little bit versus how it was maybe two or three years ago when it was really a seller's market. I think it's adjusting just a little bit but it's still really a seller's market and I think Kim jumping on that but I think it's a little bit more opportunities for a buyer right now versus you fighting with 30 other buyers. Maybe now you're fighting five buyers, but it's still a good market.

Bill Von Bank:

How are the interest rates? We're right now in summer of 2025.

Kimm Pastrana:

Well, right, Rates are still up and prices are up. So entering the real estate market for first-time home buyers can be a challenge because the payments are high, and so that's really one of the keys is finding out what your pre-approval is, what you're comfortable for as far as the budget goes, and then really being familiar with those numbers, Because with the higher prices for example, Shakopee, Minnesota those numbers because with the higher prices, the median, for example, Shakopee, Minnesota $405,000 is the median sale price right now and with higher rates, that makes a significantly higher house payment. And so you have to know what you're comfortable for and look at the right houses that fit your budget.

Jesse Pastrana:

First time home buyer is. One of the things that I like to tell them is you know, try to get pre-approved right away. Get to know your numbers. You know, try to get pre-approved right away. Get to know your numbers. You know, get to know your budget. There's always need. You got to put your needs over your want. Make sure you choose a home that fits your lifestyle, commute, long-term goals, et cetera. And also try to work with the right people. You know a good agent is going to educate you, not just sell you. You need someone who will guide you, protect your interests and help you stay grounded with emotions. You know when emotions run high Because it's a big investment that you might go through just once in a lifetime. You know, hopefully more than that, but just feel comfortable who you're working with.

Bill Von Bank:

I guess Are you primarily focused on the Minneapolis-St Paul market area?

Jesse Pastrana:

We're really on the Twin Cities. Our office is located in Dinah, but we really go whatever we need it. Rochester, I sold out of Rochester, I've gone all the way up to. I'm trying to figure out what's the farthest north. I've gone. But you know really whatever you needed is where you go, but you know primarily the Twin Cities.

Bill Von Bank:

Are there any trends or patterns emerging that potential buyers or sellers should be aware of over the next 12 months?

Kimm Pastrana:

Well, I think one of the things that has changed used to be people think they could make an offer and negotiate the offer out. In the current market being it's still a seller's market putting that best offer forward from the beginning. You're more apt to get the offer if you're in multiple offers, and AI is having an impact on real estate as well, and so it's been great with the photography and the videos. But sometimes houses aren't really quite what they look at. So I would say still look at them if they're not as pretty online, because they might be great, and some of the ones that look really great online might be not quite as good. So keep your mind open to the properties you select to look at.

Bill Von Bank:

How are you using AI in how you sell?

Kimm Pastrana:

We are, yes, and it's really been great in listing descriptions and we use it in a lot of different areas virtual staging, floor plans we can get floor plans really easily and quickly now, so there's a lot of tools that we are currently using with AI.

Bill Von Bank:

You've built a strong reputation in a competitive industry. How have you done that, jesse? I know you have a from an outreach standpoint. You have a weekly radio show, correct?

Jesse Pastrana:

We do. We have a Wednesday mornings, 8.40 am Spanish radio station and 95.7 La Raza, where we try to educate buyers and sellers regarding real estate. Where we try to educate buyers and sellers regarding real estate, try to keep them relevant of what's going on in the market so they can make an education decision when it's time to buy or sell, and we just try to put a lot of information out there. I try to have guesses in my show what I can have professionals talk about, from credit to taxes to getting pre-approved, just to keep people informed basically, how do you approach client relationships in a way that leads to long-term success and referrals?

Bill Von Bank:

Obviously, you just spoke to the radio program, but what are some other ways you do that?

Kimm Pastrana:

You know, I think we approach real estate with a service mentality and we're there to serve our clients and help them through the process, each step of the way.

Jesse Pastrana:

The selling part is on the house, but truly the job is servicing our clients. Building long-life relationships really is what has helped us. I think you know you don't just meet somebody and help them buy or sell and call it a day. You really come to be, most of of the times even friends with them. I know we have had, have helped their kids and even their grandkids now purchase homes. So that kind of tells you that people really like having a relationship, not just a transaction, with us.

Bill Von Bank:

Treat somebody well and it has long lasting impact. Correct In what ways have you had to adapt your approach or marketing as the real estate landscape has shifted over the years? Obviously, we're seeing new technology in play with AI, but what others are some of the ways you've shifted as the market has shifted?

Jesse Pastrana:

I think it's just trying to stay relevant with the market. Again, just keep people informed using social media, using snail mail, having them a birthday car multiple touch points exactly. Just be an author for them and let them know that you still, even though they bought a house or sold a house with you five, ten, twenty years ago, you're still there to talk to them and have conversations and have lunch or even coffee, just to catch up.

Bill Von Bank:

What do you see on the horizon for the real estate market?

Kimm Pastrana:

Well, rates are really going to always have a major impact on what's happening with the market. Availability of housing is a really important issue, and we hear a lot of our politicians talk about availability of housing, and so there's a need for rental. But most people want to own a home, and so our legislators helping us in the industry so we can create more housing. Keeping an eye on rates is going to have a big impact.

Bill Von Bank:

What type of homes are maybe missing from the market right now?

Kimm Pastrana:

First time home buyer homes, so a lot of new construction. You know the entry level price is usually around $450,000, $500,000, $600,000, which is difficult for a first-time home buyer to enter for a single family property. There are some townhomes available for lower price and that's a fit for some people and some people it's not a fit for that's a nuanced subject. So there's a lot of issues that go into that. And of course, housing costs to build new housing is another factor.

Bill Von Bank:

What innovations or changes in the industry are you most excited about?

Kimm Pastrana:

You know I love the AI aspect. It's really been able to help us enhance our listings, to present them well the photography, the virtual staging, the compelling wording for listings. It'll be interesting to see what new innovation comes up.

Jesse Pastrana:

Yeah, AI is really make a big changes on a lot of the aspects of the real estate. A lot of people worry that AI is going to take our jobs, but I think as long as you use AI to step on top of the competition, it's actually going to be way better. It's a tool.

Bill Von Bank:

It's a tool. You joined the real estate industry, Jesse, as somebody who felt like there was a need to help the Hispanic population. Do you have more competition now? Do you still see that that's a big part of your business?

Jesse Pastrana:

I do. I do Now that funny you talk about that. But that market has actually changed a lot. In the beginning it was a lot of first-generation Spanish speakers who needed help. Now you're starting to see second, third generation who not necessarily need the Spanish part anymore because you know they all speak English just fine, way better than me. But they still want to have that connection somehow, someone they can maybe relate to.

Bill Von Bank:

How are you preparing Good Move Realty for continued success in a changing market? Crystal ball here, I guess.

Kimm Pastrana:

Right, I wish I had the crystal ball. Well, continuing both Jesse and I have taken multiple classes on AI and staying on top of that game so we can continue to technologically advance and then, but keeping that heart of a teacher attitude toward our clients and that service orientation.

Bill Von Bank:

When you look back at your decades of doing this and most of those have been as owners did you ever think you'd be in this business this long?

Kimm Pastrana:

Yeah, I don't even think we doubted we would be. I think that we just put our eye on the target.

Jesse Pastrana:

I guess I never saw myself doing anything else, and no doubts after some bad economic downturns or changes in the industry.

Bill Von Bank:

You just have to be flexible.

Jesse Pastrana:

You have to adjust. But whatever market is out there, you just have to go with the flow as they say You've both done great in this industry.

Bill Von Bank:

I want to thank Kim and Jesse Pastrana from Good Move Realty for your time today and thank you for being our guests on the Growing Destinations podcast.

Jesse Pastrana:

Thanks, Bill.

Bill Von Bank:

Thank you for tuning in to the Growing Destinations podcast and don't forget to subscribe. This podcast is brought to you by Experience Rochester. Find out more about Rochester, minnesota, and its growing arts and culture scene, its international culinary flavors and award-winning craft beer by visiting experiencerochestermncom.

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