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2023 A Pivotal Year for Real Estate - What We Learned · The Real Estate Agent Playbook

• 0:00
  Are you ready for 2023 to just be over?
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  You, like a lot of real estate professionals, had
• 0:06
  kind of an interesting year.
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  Today we're going to dive into the year that was, what we can take from it,
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  and where we're going, moving forward.
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  So stay tuned, I'm excited for this one.
• 0:21
  What's up guys, Jeremy Kane, Real Estate Agent Playbook,
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  both on the podcast and YouTube.
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  You know what to do there, but today we're going to get right into it.
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  We're going to talk about the three key things that I think
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  happened in the real estate market.
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  As it pertains to us as agents, and we're going to dive in.
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  But while you're here, if you hear something, I say, throw a thumbs
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  up, but also love your comments.
• 0:39
  Give me.
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  You know one word that describes your 2023 as a real estate agent so we can
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  help grow this community and we can help Others realize that there's someone else
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  going through exactly what they are out there in our industry So let's get into
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  it first and foremost We all know that 2023 marked a ton of market resilience and
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  economic shifts if you remember Everybody was talking about, this May, early May
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  date, May 10th, I believe, where the Fed was going to signal the end of inflation.
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  They were going to quit raising the Fed rate, and that was going
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  to celebrate in the markets.
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  That was going to be one of the best days in the real
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  estate, mortgage industry market.
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  Well, turns out that didn't quite happen.
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  It did happen at the end of the year, so to speak, and the markets did react
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  like they said they would, but for that May, May 10th or May 12th, date that
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  they talked about, it just didn't happen.
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  In fact, rates rose the most they've ever have, in that, you know, month
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  of May and pushed even closer, you know, I think above seven and into the
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  eights, and that's not even, you know, anything that we need to talk about.
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  So as that happened, and as we were under high mortgage rate, you know,
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  environments, we saw a ton of different things and every market was a little
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  bit different real estate proof to us.
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  Again, it is absolutely hyper local.
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  And as we push through the year.
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  We were constantly hearing about new buy downs and new temporary programs
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  and all of these things and the lenders really flexed and changed
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  and, you know, a ton has changed on their side of the industry for sure.
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  But lenders really had it rough as those rates crawled, obviously the
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  refinances all but disappeared.
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  And then it kind of started to affect our, you know, buy and sell
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  numbers on the real estate side.
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  I've talked to some lenders and on average, lenders are down
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  about 70 percent in volume.
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  In the Denver market, the real estate agents are about 30 percent less closings.
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  I think is where we'll finish out, year over year, which is
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  just, a part of the market.
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  And we talk a ton in our market about 2013 to 2019.
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  What were those markets like back before the pandemic, before we had Such influx in
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  our, our market and things that, you know, we're outside of our control that we're
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  absolutely having an effect on our market.
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  So what was 2013, 2019, like, and the truth is.
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  On average, it was very similar in our market to what we saw this year.
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  It just feels like such a crazy change from what we've been used to over the
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  years of the, you know, complete chaos of transactions and over asking and,
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  you know, waiving this and waiving that.
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  And so I think that was, that was really what the, you know, define this year.
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  When I look back at 2023 in the real estate industry, it'll definitely
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  be a year of change and learning.
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  I learned more this year about the mortgage industry than I ever wanted to,
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  or, you know, have, but also it brought to the point where we have to as agents.
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  Be market proof, right?
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  You talk about recession proofing your business and all this.
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  We as agents need to be market proof.
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  And we need to learn how to adjust on the fly.
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  Change our business if it's needed.
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  And, you know, really just stay in the fight.
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  60 70, 000 agents leaving the industry because it just got a little bit hard.
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  And the truth is that a lot of people got into the real estate industry as
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  kind of a side hustle or whatever.
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  And so that number, you know, although it sounds massive and huge, Those people
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  weren't doing a ton of transactions and weren't doing the day to day that
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  maybe we would think they were doing.
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  So that's 2023 in a nutshell.
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  As far as that goes, this will definitely, you know, define, you
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  know, my 2023 is how that was just a year of change and opportunity, right?
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  We had to really sharpen our skills as agents to understand.
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  What was a good deal?
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  What was a bad deal?
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  You know what made sense for our clients and really dive deep, right?
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  It wasn't just like okay You want to buy a house?
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  Let's go.
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  Oh, man.
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  We have to compete.
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  This is what we have to do It was like, okay.
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  What are your plans?
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  What's the strategy and not to say that that wasn't a part of my business
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  in the beginning, you know in the crazy years But it it definitely
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  sharpened our saw was a word.
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  I used a ton on this channel on the podcast as well as with my agents
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  that I coach and and teach and You know, kind of hopefully lift up and
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  mastermind together because it was a year of, of that what's going on,
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  what's going on in your market up there.
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  What's, you know, and, and as we kind of adapted and we all made it through, we.
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  We had to step back and look at, okay, what's this specific clients need because
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  this market, you know, we need to find the clients that fit into that specific
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  market so that we can be of assistance to them and put them in the proper places.
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  and help them, guide them along in their, their journey.
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  Because just when it gets hard and when it gets a little more expensive, we
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  can't just wash our hands and be like, well, you know, maybe next year, maybe
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  you should have listened to me before.
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  So we, we tightened that up.
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  We sharpened our saw.
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  I know that conversations, we got a lot better at conversations and really diving
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  into specifics with our clients and what we could actually do to serve them.
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  And that really is 2023 in a nutshell, but we were absolutely.
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  resilient, in our pursuit of flexibility and being flexible, we
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  saw an immediate return to our market of inspection negotiations, appraisal
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  issues, and, and, you know, honestly, like contracts falling apart at
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  different, different times, right?
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  As that got more and more expensive, we saw our buyers behavior change.
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  And you know, they, they dialed it in.
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  I've heard of as many as 30 inspection items being noted on an
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  inspection resolution, which is our.
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  Our form that, you know, the buyer and seller agreed to in Colorado.
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  And so that was massive.
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  The return of that return of negotiation opportunity and the buyer actually
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  having a little bit of, of leverage to pull back on what had been a
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  completely, you know, one sided.
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  Negotiation for the last few years.
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  So, that's definitely a word resilience, in our market and, flexibility within
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  our business, I think was, was the main takeaway from 2023 as that goes now, you
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  know, that's, that's kind of mainstream.
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  We've talked about it till we're blue in the face.
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  And we're all here still, right?
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  So now let's talk about the rising influence of technology.
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  Obviously technology by the nature of what it is will always be changing.
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  We saw the implementation of AI.
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  I don't think I even knew what AI was on January 1st and now I'm, you
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  know, use it every day in my business.
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  So we, we had that and I was at a conference early in February and, you
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  know, they had this AI, you know, guru up there and she's talking about chat
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  GPT and all these things and, and we had to learn to implement it, right?
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  We had to, had to learn to use it as a tool, not a life source.
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  And you know, now it's, it's an abundant resource, right?
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  It's literally.
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  A companion that you can bounce ideas off of and, you know, get
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  through writer's block and, and, you know, help you with, you know, fancy
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  wording on descriptions or whatever.
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  And we learned that you have to definitely understand that you are
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  still the licensee, you still have the ethical commitment to your community.
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  So you have to read through and make sure that it's not, you know, steering or, or,
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  you know, discriminating or any of that.
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  But then the use of it from a far more vast, you know, piece, I, if
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  I sit down and someone's saying, yeah, AI, you know, it's amazing.
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  And they're talking about still writing listing descriptions
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  and that kind of stuff.
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  I know that they're probably about 6 to 12 months behind the
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  curve on what's really going on.
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  But the use of, you know, building courses and ideas and, you know,
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  Proofreading and video ideas.
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  I mean, content ideas as we continue in this content first age, it's
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  just absolutely a game changer.
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  And so that technology has, you know, definitely blessed us.
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  And now how do we use it?
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  Do we use it as.
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  You know, because if you're using it as a pillar and leaning on it, it might be
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  an issue, but are you using it as a time saving tool to help, you know, with copy
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  and all of the things that we do as a real estate agent or marketing and all of that,
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  then that's absolutely game changing.
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  And so that's super exciting as that continues to adapt and
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  evolve literally every single day.
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  Now, Google and Apple and, you know, all of these other things, I would
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  imagine that chat GPT won't be.
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  You know, the, AI of choice, come this time next year,
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  but that was massive for us.
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  And then obviously the, the eye buyers kind of went to the, the,
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  the way side is market tightened up.
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  And so that technology kind of disappeared, but then it's, you know, the.
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  The property searches and the virtual tours and all the things that that
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  have come along and how are we incorporating this in qr codes right now?
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  Everyone knows how to use a qr code, right?
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  So the use of all of these things in our business was definitely something
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  that 2023 and I would assume 2024 and 2025 will continue to adapt and the use
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  of ai and you know technology following triggers You know when you're filming
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  and you know, all of those things so cool of about what could happen.
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  However, the fact that it's probably not able to replace us at this
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  time is I'm forever grateful.
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  And a lot of people, when you talk about it, they're like, Oh, it's
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  just going to replace everybody.
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  The truth is, is that's the biggest takeaway for me.
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  Is technology is a tool and it can absolutely do that.
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  It cannot replace the human experience, right?
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  So that's why we're usually utilizing technology, but we're also dialing
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  in our client experience, our client journey every single year.
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  As we go, we want it to be different and, you know, cohesive and make
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  everybody, you know, come back to us and use this as a, you know, repeat
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  client and send us as many referrals.
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  And so.
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  Utilizing AI to connect and, you know, for content and then organize and maybe,
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  you know, even I've write code and all of that stuff, but then how do we take
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  that information as humans and help our clients have a better client journey
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  is definitely kind of the takeaway for me when it comes to technology in 2023.
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  All right.
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  And the next is the government policies and changes.
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  And, you know, certainly, affordable housing and.
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  You know, all of that came into play still in the forefront,
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  still a major problem, right?
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  Is homelessness is an issue in almost every major metropolitan there is.
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  And so that is one side of it and how we do that and how we solve
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  it, how it affects our ability as landlords to be, you know,
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  private investors and all of that.
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  Absolutely one thing.
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  And then without, you know, going too far into this, the short term rental market,
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  you know, the big crash that everyone was talking about on social media.
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  And the completely, you know, kind of pullback from that, the rise
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  of midterm renting and, you know, for nurses and, and corporate and
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  all of that is absolutely massive.
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  Some of those short termers were able to convert into midterm.
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  Some of them had to sell, but to understand that, you know, the short
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  term market had been so hot and so crazy through the pandemic years
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  and people were getting in and.
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  And having an absolute, you know, chaos as far as, you know, how much income
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  they were making and what they were doing and turning this out and how
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  much, you know, vacancies they didn't have that quickly became oversaturated.
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  People started traveling less, so there was less opportunity
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  to, you know, be fully booked.
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  And so that was a big, you know, thing early on.
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  And people were talking about, Oh, this is going to bring back.
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  You know all of the vacation spots inventory and all of the things turns
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  out a lot of them just converted to mid term or you know or long term
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  but if they did get out there's still people making money in the short term
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  industry absolutely and so that's absolutely still part of it but this was
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  definitely a headline early on in 2023.
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  That we've seemed to work through and, and as always, you know,
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  real estate gives you options.
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  So that's part of that.
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  And then, we obviously had towards the end of the year, the
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  real estate commission lawsuits.
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  That have become pretty much headline news all across the board from the, you know,
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  verdict of, Siding with the plaintiffs over, you know, the, the Missouri case
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  and, and how we think that might change.
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  And then that, you know, attorney walking out of the courtroom and
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  filing, you know, a much larger suit against some different companies.
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  I think that we all were really freaked out at that moment, right?
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  By buyer's agents are gone, you know, whatever now about a month removed
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  from that time of this recording.
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  We realized that things haven't really changed that much yet.
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  There's still a ton of appeals to be had.
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  There's still a ton of things to work out with this.
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  You know, from NAR saying that they have really good, you know, standing
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  on their appeals and all of that.
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  And so that, that made us step back and think like, okay,
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  what do we want from this?
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  How are we going to get paid?
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  And again, back to that conversation piece, right back to having conversations
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  with our clients, communicating with our clients, like I talked about in 0.
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  1 already.
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  Now we have, you know, to have these conversations about how we get paid.
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  And that might be a little more uncomfortable when you're talking about
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  your money versus their money, but as real estate agents, that's exactly
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  what we have to do again, circling back to the technology and building
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  those client journeys and, and having that human touch, because ultimately
• 14:15
  there will be a path and there already is a path or easier or cheaper, but
• 14:20
  they, they didn't take hold, right?
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  There's not more fizz bows then.
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  properties listed in the MLS because, you know, our consumer as a
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  whole, you know, values what we do.
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  And now we just have to have those conversations, which I was having already.
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  Colorado's contracts are pretty, pretty, advanced.
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  And as far as that goes, right, we have to have a conversation about
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  where people's money are going.
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  But, you know, I talked to agents all over the country, right.
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  And they're like, well, You know, do you use a buyer agency form and all of that?
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  So absolutely something that, that will be a part of our, our, you know, industry
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  moving forward and something to keep an eye on, but definitely, you know,
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  as the month's gone on, you know, about a month ago, they made that decision.
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  It's definitely become less and less of a hot topic while they sort
• 15:08
  everything out and go from there.
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  However, as an agent, you need to be making sure that you're dialing in your
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  systems, your processes, your scripts, so that you're ready for that when
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  that does come back, because as these appeals come out and you know, things
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  will change that haven't already, but definitely 2023 was a year of a ton of
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  You know, a lot of negative things, right?
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  But there were some definite positive things as we continue to push through.
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  As you know, different partnerships were formed and, and everything that we
• 15:42
  did as agents together, collaborations and Facebook groups and all of the
• 15:46
  like, ultimately the real estate agent community will continue to push on and.
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  It's filled with so many people who, you know, care so much about
• 15:56
  helping others and all of that.
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  And so continue to do that and continue to build your brand and take this
• 16:01
  holiday season to, you know, definitely look back, but don't, don't be so
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  stressed out about what happened.
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  Like we made it through.
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  If you're standing at this point, you're still watching real estate
• 16:11
  agents, talk to real estate agents.
• 16:13
  You've made it.
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  So now what did we learn?
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  Like, think about how far we've come and our ability to have tough conversations,
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  our ability to understand the market, our ability to advise our clients.
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  And take that and move forward and absolutely launch into 2024.
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  Now, I will be releasing on Christmas Day, my 2024 market predictions
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  and predictions for our industry.
• 16:36
  And I hope that, you can watch that.
• 16:38
  Definitely don't take time away from your family to do that.
• 16:41
  But that'll be there.
• 16:42
  Throw me a like.
• 16:43
  Give me a subscribe so that you're notified when that
• 16:45
  video or other videos come out.
• 16:47
  And we can absolutely do this together.
• 16:49
  We're in this together.
• 16:50
  If you ever need anything from me, I'm here for you.
• 16:52
  We're in this fight and, 2023 is over, but 2024 is going to be a great year.
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  So we'll talk to you soon.
• 16:58
  I hope to connect with you, whether it's on through the podcast or through
• 17:02
  YouTube or Instagram, check it out.
• 17:04
  Let's build this community up and let's have a great 2024 because 2023 is over.
• 17:10
  We'll see you.