Latest / Charleston's Leading Producers / #37 Trust Before Transactions and Building Better Client Relationships | Rachel Austin

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#37 Trust Before Transactions and Building Better Client Relationships | Rachel Austin · Charleston's Leading Producers

0:00
SPEAKER_01: At the end of the day, a piece of paper isn't going to keep someone loyal to you.
0:02
SPEAKER_01: It's a relationship that you're building that's keeping them loyal to you.
0:07
SPEAKER_00: Hey leaders, I'm Jake, a loan officer obsessed with business growth and finding out what's actually working in our market.
0:15
SPEAKER_00: If that sounds useful, hit follow.
0:17
SPEAKER_00: Now, this week's leader.
0:25
SPEAKER_00: Alright, we're recording.
0:27
SPEAKER_00: Thanks for coming back on, Rachel.
0:28
SPEAKER_01: Yeah, no, thank you for having me.
0:30
SPEAKER_01: Um, sorry about the technical difficulties, but we're here now.
0:33
SPEAKER_00: We're here, yeah.
0:34
SPEAKER_00: That's actually that's one of my favorite things about realtors is that they're so adaptable.
0:40
SPEAKER_00: So um, you know, you just learned 30 minutes ago that the apart or the um Wi-Fi went out at your house and you were scrambling over to the office.
0:49
SPEAKER_00: But I appreciate the commitment to making it onto the podcast, you know?
0:53
SPEAKER_01: Yeah, it was like that, or like maybe a questionable hotspot, which wouldn't have been better.
0:59
SPEAKER_01: So we needed some stable internet access.
1:02
SPEAKER_00: Yeah, it's always and it's always the worst time, you know.
1:07
SPEAKER_01: Yeah, that's how it works when you don't inherently need it, and then when you need things to go smoothly, I swear that's my printer every time.
1:13
SPEAKER_01: They're like, Oh, you need this right now?
1:14
SPEAKER_01: Well, I'm not gonna give it to you.
1:17
SPEAKER_00: My my printer, I I've got it right here beside me, and it's needed ink for about three months.
1:22
SPEAKER_00: Um, so I'll even show you my notes.
1:24
SPEAKER_00: I like, you know, printing out my notes, but I literally hand wrote an entire page of notes for this podcast just because I refuse to go buy$30 ink, you know.
1:34
SPEAKER_01: Well, they tell you it's gonna print like a thousand pages, and I'm like, I think I've printed 30 pages and now you're telling me you're done.
1:39
SPEAKER_01: It's it's like it's crazy.
1:42
SPEAKER_00: Yeah, one print and it's over.
1:44
SPEAKER_00: But you were also just telling me you got a new dog.
1:47
SPEAKER_01: Yeah, so it's probably great that I transitioned here to talk to you instead of um from home.
1:52
SPEAKER_01: Yeah, I um I had two dogs.
1:55
SPEAKER_01: One passed in February from old age.
1:57
SPEAKER_01: And so I just have been itching for a second dog.
2:02
SPEAKER_01: And so I did that in September, like right at I would say end of August, beginning of September.
2:07
SPEAKER_01: Um, and it's been super fun.
2:09
SPEAKER_01: Is it chaotic?
2:10
SPEAKER_01: For sure.
2:11
SPEAKER_01: Um, they told me she's gonna be 40 pounds, but the girl's big as a house, and she's as sweet as can be, but it's just yeah, chaos.
2:20
SPEAKER_01: I I think I thrive in a little bit of chaos.
2:22
SPEAKER_01: Um, but she's so sweet.
2:23
SPEAKER_01: Her name's Willa.
2:25
SPEAKER_00: You know, I think that's a real estate trend.
2:28
SPEAKER_00: A loan officer and realtor both.
2:31
SPEAKER_00: They so, you know, maybe like low-key enjoy chaos.
2:37
SPEAKER_00: I don't know.
2:37
SPEAKER_01: Well, it's like when there's nothing going on and I'm just twiddling my thumbs, I don't do well with like complete silence or sitting still.
2:45
SPEAKER_01: Not to be confused with patience, like I can be patient for things, but I really like to stay active or tinkering or doing something for sure.
2:54
SPEAKER_00: Are you one of those people?
2:55
SPEAKER_00: And I don't know if you want to admit this publicly or not, but are you one of those people that creates chaos when there isn't like if you are sittle uh sitting around swidling your thumbs?
3:04
SPEAKER_00: I know some people that if that happens, they just go out and do something crazy to make sure there's something going on.
3:10
SPEAKER_01: I don't think I like create chaos, but I do think if my sister listened to this, she would disagree because she'd say, well, getting a puppy inherently is choosing chaos.
3:19
SPEAKER_01: But um other than that, no, it's not like because I feel like when you say choosing chaos, it's like creating some sort of like drama of something, but no, like, you know, I might pull apart an entire closet and decide that I'm gonna reorganize stuff, and then halfway through you're like, why did I do this?
3:35
SPEAKER_01: But other than that, no, I'm not like choosing the chaos.
3:38
SPEAKER_01: I just I like to stay busy.
3:39
SPEAKER_01: Like if my day's open, I'll find an activity.
3:42
SPEAKER_01: If you know there's an event coming up and I have the ability to go, I'm like, okay, I'd rather do that than sit at home, stuff like that.
3:48
SPEAKER_00: Yeah, I'm the same way.
3:50
SPEAKER_00: Um, but when it's you know Sunday and I want to shut it down, I have no problem shutting everything off and just like, you know, shutting everything down for hours at a time.
4:03
SPEAKER_00: That's really hard to do with little kids, and I'm sure with a puppy as well.
4:07
SPEAKER_00: Um, but I enjoy those moments.
4:09
SPEAKER_01: Yeah, and I I used to not be really good at that.
4:13
SPEAKER_01: I used to answer every phone call, answer every text message no matter the time or day.
4:19
SPEAKER_01: Um, and now I just always tell people, like, hey, you know, just assume I got your message.
4:24
SPEAKER_01: And if it's like after work hours, um, I'll get back to you like early the next morning or as soon as I can.
4:31
SPEAKER_01: Um, and if it's an emergency, obviously, you know, feel free to dial multiple times.
4:36
SPEAKER_01: But other than that, and people understand that.
4:39
SPEAKER_01: I think for a long time we felt like if we weren't accessible all the time, you're gonna lose business.
4:44
SPEAKER_01: But everybody has boundaries.
4:46
SPEAKER_01: And so I think they inherently respect you more when you set them.
4:49
SPEAKER_00: Thousand percent.
4:50
SPEAKER_00: Yeah.
4:51
SPEAKER_00: Especially in tighter markets.
4:53
SPEAKER_00: Um, you know, you feel that more of that external pressure to answer every text within seconds.
4:58
SPEAKER_00: And yeah.
4:59
SPEAKER_01: Yeah.
5:00
SPEAKER_00: Yeah.
5:00
SPEAKER_01: No, I agree.
5:01
SPEAKER_01: I think I've definitely felt that pressure, but the boundaries are a good thing for them and for us.
5:07
SPEAKER_00: Yes.
5:07
SPEAKER_00: For the clients too.
5:08
SPEAKER_00: That's a really good point.
5:09
SPEAKER_00: Not just for us, but yeah.
5:12
SPEAKER_00: Um, yeah.
5:13
SPEAKER_00: So let's go back to the last time that we talked.
5:17
SPEAKER_00: So you were on, it was actually, I think, in May, I saw, which feels like I don't know, it's just like eight million years ago.
5:24
SPEAKER_00: Yeah, exactly.
5:24
SPEAKER_00: It was a completely crazy.
5:28
SPEAKER_00: But last time you were on, we talked about how you are an educator at the core, which of course I love.
5:35
SPEAKER_00: Um, so I'm curious how that's kind of continued uh to evolve, especially I just mentioned the current market.
5:42
SPEAKER_00: So we are recording mid-October here, 2026.
5:45
SPEAKER_00: But I want to start there.
5:46
SPEAKER_00: What's the biggest difference between conversations you're having right now versus conversations that you might have had six months ago when we last talked?
5:57
SPEAKER_01: Yeah, this is something that I mentioned to you too.
6:00
SPEAKER_01: I think it from my experience, I don't know what other agents are feeling, but a lot of the clients that I'm working with right now are first-time real estate owners or even real estate sellers.
6:13
SPEAKER_01: So um they want guidance.
6:16
SPEAKER_01: They want to sit down and learn about the process.
6:19
SPEAKER_01: Things don't feel rushed right now because we're in more of like a normalized or elongated market, kind of even tipping into a buyer's market now with how some of the rates are looking.
6:29
SPEAKER_01: And so some of these first-time home buyers who don't know anything else, they haven't seen these other markets, are wanting to sit down and talk about strategies of, you know, how they can pursue homeownership because they, you know, they can throw their hat into the ring now.
6:43
SPEAKER_01: There's the ability to take time to decide.
6:46
SPEAKER_01: Um, they can navigate how and if they want to ask for concessions.
6:52
SPEAKER_01: And so I sit down and talk about all of this on the front end before we even set foot in a house.
6:59
SPEAKER_01: And then, you know, the caveat being that every home purchase is a little bit different, right?
7:04
SPEAKER_01: So you might not get the same concessions from one seller as you would with another vice versa.
7:08
SPEAKER_01: But we just talk about what these things look like so that way we're not doing it or having these big heavy discussions the moment they're signing a contract.
7:17
SPEAKER_01: Um, and that's I will tell you, I feel like most of the people I'm working with right now are first-time buyers and they understand the value of um of like being able to come in and save money in their pocket when at by getting some closing cost coverage, buying down their rates.
7:38
SPEAKER_01: Um, and so that's where the educator piece has definitely come in.
7:43
SPEAKER_00: I love that you mentioned the word rushed.
7:46
SPEAKER_00: And you know, from the loan side, we do see contracts come in from a lot of different realtors and a lot of different angles and things like that.
7:53
SPEAKER_00: And that might be the number one thing that is the differentiator between what you know I sometimes view as a good deal.
8:02
SPEAKER_00: And so that when I say good deal, a deal that's in the buyer's interest versus a deal that is clearly, you know, um one for the seller there.
8:11
SPEAKER_00: So um I I just I love that you mentioned it feels so often that you know we get these clients in the door and we want to get them out shopping right away.
8:23
SPEAKER_00: And we do have to move fast, like there's no doubt about that.
8:26
SPEAKER_00: But you can be very educational and you can provide a lot of value in a short amount of time.
8:32
SPEAKER_00: Um especially with the first-time home buyers that you mentioned, because they are blank slates.
8:38
SPEAKER_01: Also, I mean, I I find that um it can be really scary to think that you're signing your life away to some person before you even step foot in a house.
8:47
SPEAKER_01: So I find these conversations so valuable because I want them to know what I want them to experience, how we might go through reading a purchase agreement, talking about these things, you know, question my knowledge.
8:59
SPEAKER_01: Ask me about the process.
9:01
SPEAKER_01: You know, if I don't know an answer, I'm gonna find it for you.
9:04
SPEAKER_01: But to not have a conversation like this and to sign an agency agreement seems a little counterintuitive.
9:10
SPEAKER_01: So it's also been beneficial because it allows us to build definitely a bond and trust.
9:15
SPEAKER_01: Like, I know that buyer agency agreements exist, but I'm sorry, at the end of the day, a piece of paper isn't gonna keep someone loyal to you.
9:22
SPEAKER_01: It's the relationship that you're building that's keeping them loyal to you.
9:26
SPEAKER_01: Um, and so when you take the time to walk them through it instead of pull them through it, um I find that those transactions run so much more smoothly.
9:38
SPEAKER_01: They feel good, they don't they are not having the jitters like a lot of first-time buyers have the jitters, but I feel they feel a little bit more steady and empowered.
9:48
SPEAKER_00: Yeah, it it's funny you you mentioned the jitters because I I saw the stat and I'm not gonna say it right now because I know I'm gonna butcher it, but um, the number of contracts that are falling out, the percentage is going up.
10:02
SPEAKER_00: And so much of that can be avoided 100% if people were taking.
10:07
SPEAKER_00: Yeah.
10:08
SPEAKER_01: Yeah, I find that even with talking with like lenders or other agents, that a lot of times those things can fall out.
10:14
SPEAKER_01: One, it can be, you know, just at odds, buyers and sellers, like maybe they don't want to meet you on some repairs or things like that.
10:22
SPEAKER_01: Uh but I also have seen it where a big one is someone can't sell their home if there's a home sale contingency.
10:29
SPEAKER_01: So we do see that happening.
10:30
SPEAKER_01: But then a lot of people just really shocked at their payment once they're getting everything all in.
10:37
SPEAKER_01: And so that's why with especially first-time buyers, but anyone who hasn't touched space with a lender, I'm like, we need to sit down and run estimated payment scenarios because you're telling me this is the amount of house that you can afford.
10:49
SPEAKER_01: But do you know what that payment actually looks like?
10:52
SPEAKER_01: And I'm not talking about just your mortgage.
10:53
SPEAKER_01: I'm talking about, you know, insurance, taxes.
10:56
SPEAKER_01: Does it need flood insurance?
10:58
SPEAKER_01: Are there HOA fees?
10:59
SPEAKER_01: Anything like that?
11:00
SPEAKER_01: And then let's run an estimate on what some of these utilities are because I don't want to, you know, I don't want you to get close to the finish line and have cold feet and have regrets.
11:10
SPEAKER_01: Like I want you to know this from start to finish, an estimate of where you're gonna be.
11:14
SPEAKER_00: Yeah.
11:15
SPEAKER_00: And lenders, you know, we need to do better.
11:18
SPEAKER_00: We we need to stop.
11:20
SPEAKER_00: Uh somebody comes in, they get pre-approved, and we send an email with an estimated monthly payment, and it gives no information.
11:27
SPEAKER_00: You ask no questions of you know what that buyer really wants out of that purchase, and and that just drives me crazy.
11:35
SPEAKER_01: So it's like also really nice too, because I want someone to see the worst case scenario, i.e., this is your payment without buying down your rate.
11:44
SPEAKER_01: We're gonna quote you on like not we, but a lender, right?
11:47
SPEAKER_01: Like I say we because I I work as a team or I try to like really work as a team with like my inspectors, my attorneys, my lenders.
11:55
SPEAKER_01: So that way the buyer does feel like everyone's communicating, everyone's in the loop.
11:58
SPEAKER_01: So when I always ask the lender that the buyer is working with, hey, give me the worst case scenario, quote them a little bit higher, even than where you think they're gonna be.
12:06
SPEAKER_01: And then also, can you give us a scenario of what it would look like if we got this much in concessions, this much in concessions?
12:14
SPEAKER_01: And then also, what does that look like?
12:17
SPEAKER_01: Because I have this conversation too.
12:19
SPEAKER_01: All right, does it make sense to come down and purchase price, or does it make sense to, you know, we think the value's there, it's gonna appraise, but ask for money in your pocket because we all, you know, all of us in the industry know that really the money in your pocket has more value at the closing table than coming off five or ten thousand dollars.
12:38
SPEAKER_00: Yeah.
12:38
SPEAKER_00: And it's amazing how many clients they they don't understand that concept at all coming into the process.
12:45
SPEAKER_01: You're like, oh, I'm gonna save money if I come down on the price of the house.
12:48
SPEAKER_01: I mean, it it in theory it makes sense, but it just you will, but there are ways to save more.
12:54
SPEAKER_00: Yeah.
12:55
SPEAKER_00: The I'm gonna get a deal.
12:56
SPEAKER_00: I need to get a deal mindset of you know, just the general public.
13:01
SPEAKER_00: So I'm gonna offer$5,000 less, and you know, they actually only have$10K in the bank.
13:06
SPEAKER_00: And it's like, you would do yourself so many favors, you know.
13:10
SPEAKER_00: So I really appreciate that you're talking about those things in relation with the lender, you know, because when they hear it explained a couple times, it's it definitely has a better chance of sinking in.
13:20
SPEAKER_01: What's also nice when I think too, and this is something that I definitely brought from education, you'll hear someone ask you a question and you think you've answered it, and they'll be like, okay, yeah, I understand it.
13:30
SPEAKER_01: And then you realize, like, no, you you didn't really understand that.
13:34
SPEAKER_01: And so then they'll be asking like you, the lender, the same question.
13:37
SPEAKER_01: So it's nice when we're all on the same page because I can kind of decode sometimes if I'm like, oh, I think they may be asking this, but they weren't sure how to word it, or vice versa.
13:46
SPEAKER_01: Um, so I definitely feel that comes in handy too, where I'm like, okay, let me let me decode what it is that I think you're asking me, but you might not know how to ask, like in the right verbiage.
13:56
SPEAKER_00: So it's a great skill.
13:58
SPEAKER_00: Um, we were talking before, and you actually mentioned too how first-time home buyers um are almost more realistic about the market right now.
14:08
SPEAKER_00: Um, so I guess my question is, are they more realistic about it?
14:13
SPEAKER_00: Or are they just kind of unwillingly settling for less because they think, you know, the market is what it is right now?
14:22
SPEAKER_00: So I'm curious how you're navigating that.
14:25
SPEAKER_01: I don't know if they're necessar necessarily settling for less.
14:30
SPEAKER_01: I will say just my personal buyer caseload right now.
14:35
SPEAKER_01: My first-time buyers are umes that have been saving for quite a few years.
14:42
SPEAKER_01: So they're planning on putting down larger amounts.
14:45
SPEAKER_01: Um, or I have new home buyers that are getting ready to start next chapters in their lives as like a two-income household.
14:54
SPEAKER_01: Um, and so it gives them a bit more flexibility.
14:56
SPEAKER_01: That being said, all of these first-time homebuyers that I have currently are not looking at new construction.
15:04
SPEAKER_01: They are so um, and not to say that there's anything wrong with new construction, but a lot of them are really looking for houses in older neighborhoods with character.
15:13
SPEAKER_01: And I think like maybe, maybe it's just a trend we're seeing, right?
15:16
SPEAKER_01: For a long time, everybody, no matter what, wanted new construction.
15:19
SPEAKER_01: I think a lot of people are gravitating towards these like more mature neighborhoods, um, homes that have a little bit more character.
15:26
SPEAKER_01: I they're not afraid of, you know, some projects.
15:29
SPEAKER_01: I'm not talking about, you know, to make it livable, but more aesthetic projects in lieu of being like right up against your neighbor.
15:37
SPEAKER_01: And so um they are taking their time with their searches.
15:42
SPEAKER_01: They are negotiating repairs and seller concessions.
15:46
SPEAKER_01: And I don't think they're necessarily getting less.
15:51
SPEAKER_01: I actually feel like it has opened up the ability for them to tour and look through multiple neighborhoods, even revisit homes where before it's like, okay, we have this 30 to 40 minute showing, and now you're making a decision off like your first look.
16:05
SPEAKER_01: They're really, they have this benefit of time.
16:08
SPEAKER_01: Um, and some of that too is where we are in the year.
16:10
SPEAKER_01: It's October.
16:11
SPEAKER_01: So we do see things slow down.
16:14
SPEAKER_01: You know, not only do we have an increase in our rates, but it's about to be holiday season.
16:19
SPEAKER_01: Not a lot of people want to move, but these first-time homebuyers that are in rent, like uh rental properties, they're already paying high prices for rent.
16:27
SPEAKER_01: They have to move.
16:28
SPEAKER_01: And so the timing doesn't hinder them as much as it would some of the other people, too.
16:34
SPEAKER_00: I I like that you mentioned the new construction.
16:37
SPEAKER_00: Um, and it's interesting that first-time homebuyers are shying away from that a little bit more.
16:42
SPEAKER_00: I wonder if some of it is just the word of mouth in our market as well, because sometimes I think new construction actually gets a worse rap than it actually does because there are every once in a while some horror stories.
16:56
SPEAKER_00: Totally.
16:57
SPEAKER_00: House goes up and it's it's a mess and it's not ready and it just creates a really bad situation.
17:02
SPEAKER_00: But I also feel like those situations are kind of few and far between, but that's the story that spreads.
17:09
SPEAKER_00: Oh, a hundred years.
17:12
SPEAKER_01: Um, okay, I've definitely had buyers that um, and these weren't first timers, but I had some buyers that were here a few weeks ago, and they just weren't keen on new construction because they felt for them one, it felt a little more sterile in the neighborhoods because they're newer, right?
17:27
SPEAKER_01: They're not as mature.
17:28
SPEAKER_01: So any sort of greenery that's been planting, things like that, it's it just doesn't feel finished.
17:33
SPEAKER_01: It's gonna take time for those to feel less brand new.
17:37
SPEAKER_01: Um but every, you know, you're always going to have someone who had a bad experience.
17:42
SPEAKER_01: And instead of they're, you know, instead of, I don't know, simply solving it and moving on, they take to the internet.
17:49
SPEAKER_01: So you have like a little keyboard, keyboard warrior situation.
17:52
SPEAKER_01: And it does, it starts to spread like wildfire.
17:56
SPEAKER_01: And so you have all these, you know, you have other consumers that are saying, Well, I heard X, Y, Z.
18:00
SPEAKER_01: Um, and I have this talk probably every time someone asks me about new construction, where they're like, Oh, I want to avoid builder A and C because I heard, you know, that this happened.
18:12
SPEAKER_01: And, you know, I'll just say to people, like, listen, I have built with builders A and builder C.
18:18
SPEAKER_01: And I understand and I know what you're talking about.
18:21
SPEAKER_01: But I personally have not gone through those experiences because we're also doing catch-alls.
18:25
SPEAKER_01: We're like, okay, um, if you're brand new construction from the ground up or pre-drywall inspection, or doing a third-party inspection before you move in.
18:34
SPEAKER_01: And people don't love it when I say this, but get your 11-month inspection too, because right before that bumper to bumper ends, we're gonna turn anything in.
18:42
SPEAKER_01: Um, of course there are horror stories.
18:45
SPEAKER_01: Sometimes it's also user error.
18:47
SPEAKER_01: Like people will be like, oh, the flooring is rippling.
18:50
SPEAKER_01: Were you using a steam mop on your LVP floor?
18:53
SPEAKER_01: Like, you know, we have to really look into the details.
18:56
SPEAKER_01: So um I don't think that's necessarily why my first-time buyers are going that way.
19:02
SPEAKER_01: They really want something, the word character comes up all the time.
19:08
SPEAKER_01: They want something that feels just less cookie-cutter.
19:12
SPEAKER_01: Um, and also some of the locations that they want to be in.
19:15
SPEAKER_01: They don't necessarily want to be as far out in Somerville.
19:18
SPEAKER_01: So we're seeing a lot of Hannahan, a lot of West Ashley still, um, even parts of Goose Creek, Park Circle, uh, which has become or starting to become a bit more affordable.
19:30
SPEAKER_01: Um, but it, you know, that's they're inherently looking at resales because there isn't new construction in those areas, or if there are, it's very minimal.
19:40
SPEAKER_00: Location, I feel like has become even more important in Charleston because traffic has gotten worse even within, I don't know, I would say even two years.
19:49
SPEAKER_00: It feels like it's gotten worse.
19:51
SPEAKER_00: And I can um I can attest to being out in the new build in in Somerville and you're out there and it takes a long time to get anywhere.
20:00
SPEAKER_01: Oh yeah.
20:01
SPEAKER_01: I'm constantly telling people, all right, at this time I want you to like if you have to make a commute for work, go ahead and plug it in, do Google Maps, do Waze, whatever it is, and do it for a few days so you can look at the variances because one day it could be, oh, that's not too bad.
20:15
SPEAKER_01: And then the next day someone sneezes funny and you're in the car for twice as long.
20:18
SPEAKER_01: So um I need them to know the very realistic picture that Charleston traffic is not great.
20:26
SPEAKER_01: But it I think across the board it's not great.
20:29
SPEAKER_01: It's not just one route.
20:31
SPEAKER_01: That's true, right?
20:32
SPEAKER_01: You know, I think so I tell people that I'm like, I it's kind of unavoidable.
20:36
SPEAKER_01: Um, you know, it and some days are gonna be worse than others.
20:41
SPEAKER_01: It's just the realistic picture of our infrastructure not catching up with our neighborhoods and I don't think it ever will.
20:50
SPEAKER_00: I I I don't know, there's some situations, and we're getting off topic here, but some situations where there's just no way to expand some of these roads.
20:59
SPEAKER_00: It goes right into marsh and protected wetlands and all this and that.
21:02
SPEAKER_01: Like homes and communities, like you drive through some of these areas of Somerville, and there's like a house, a short little sidewalk, and then boom, it's main road.
21:09
SPEAKER_01: So yeah, I mean, but show me a city that's built their roads to handle expanding infrastructure first.
21:16
SPEAKER_01: I we do it backwards, but I guess it's because we don't really anticipate or you can't anticipate how much a place is gonna grow.
21:22
SPEAKER_01: But yeah, I think location has a lot to do with everything and definitely just home styles that they're drawn to.
21:30
SPEAKER_01: I really, really have had all of my first-time home buyers say, like, I just don't want something that feels a cookie cutter.
21:37
SPEAKER_01: You know, I want I want something with some character.
21:41
SPEAKER_00: That's interesting.
21:42
SPEAKER_00: And I love how thorough you are with your conversations.
21:47
SPEAKER_00: Um, when you mentioned talking with clients, and you know, you're obviously going deep as far as the information goes, very early in the process.
21:55
SPEAKER_00: So I'm curious how you handle it when you feel like you've expected.
22:00
SPEAKER_00: Explained everything to a client, but they're doing something that you see as glaringly um maybe not aligned with their best interests.
22:12
SPEAKER_00: So I'm curious how you navigate situations like that.
22:18
SPEAKER_01: In so in thinking of that, I'm trying to think of like specific circumstances.
22:23
SPEAKER_01: I've been very lucky that um my first-time buyers have been very open to being taught and being, you know, led through the process.
22:37
SPEAKER_00: But there must be something that you're doing to encourage that because not everybody's clients are gonna be that way.
22:46
SPEAKER_01: I mean, we definitely like sit down and chat.
22:49
SPEAKER_01: Like, we'll go grab coffee and we'll be there for an hour, an hour and a half.
22:52
SPEAKER_01: You know what I mean?
22:52
SPEAKER_01: Like we're having long talks face to face.
22:55
SPEAKER_01: Um, I will say most of these people have found me organically too through open houses.
23:00
SPEAKER_01: And so um when we do have this face to face, I know that they've chosen to sit down with me because when we met at the open house, I didn't put this like pouncing kind of pressure on them, like, hey, I heard you, you know, you're brand new.
23:13
SPEAKER_01: Like, come here, I'll take you under my way.
23:15
SPEAKER_01: It's just like you're brand new.
23:17
SPEAKER_01: Okay, great.
23:17
SPEAKER_01: I, you know, I can definitely walk you through the process.
23:20
SPEAKER_01: Let's sit down, look at a purchase agreement.
23:22
SPEAKER_01: We'll talk about the market.
23:23
SPEAKER_01: I'll show you the MLS.
23:24
SPEAKER_01: Let's see if we're a good fit and we'll go from there.
23:26
SPEAKER_01: And so I think the low pressure stakes of being able to kind of interview someone and hear about the process before they're immediately signed to something is helpful and definitely aids in that because it's we're building trust from the get-go, right?
23:42
SPEAKER_01: Before they're even my client, because we're not looking at houses yet.
23:45
SPEAKER_01: We're just sitting down and I'm saying, like, this is what I have to offer you.
23:48
SPEAKER_01: This is what the process could look like.
23:49
SPEAKER_01: Do you feel like we're a good fit?
23:51
SPEAKER_01: And if so, I will send you paperwork and we can go start looking at houses.
23:56
SPEAKER_01: Um, I also tell my my clients all the time: if you ever think I'm not doing a good job for you, you tell me.
24:04
SPEAKER_01: Like, there's nothing I want you to be afraid to tell me.
24:07
SPEAKER_01: I'm a big girl, I can handle it.
24:09
SPEAKER_01: There's rarely anything that gets me riled up.
24:11
SPEAKER_01: Um so just tell me and I'll fix it.
24:15
SPEAKER_01: And if you feel like I haven't fixed it, then we'll have a bigger discussion about that.
24:20
SPEAKER_01: But haven't had any complaints about that yet.
24:22
SPEAKER_01: I'm hoping that won't happen.
24:24
SPEAKER_01: So I I really feel like it's just building the relationship is what's causing the these transactions to go smoother.
24:30
SPEAKER_01: I promise you, it's my um more experienced buyers um and sellers that can sometimes pose the biggest challenges.
24:42
SPEAKER_00: Yeah, because they've seen other markets, I think, as part of it, and they're spoiled.
24:48
SPEAKER_01: Totally.
24:48
SPEAKER_00: Yeah.
24:49
SPEAKER_01: Totally.
24:50
SPEAKER_01: Or just they forgot the the grace that they were shown by sellers when purchasing.
24:56
SPEAKER_01: And not every buyer had that, but I was just having conversations with a seller who said, Well, I don't want to make any repairs, and I I like I'm already giving them this much money for the buyer's agent.
25:09
SPEAKER_01: And I said, Well, let's talk about this.
25:12
SPEAKER_01: One, let's think about when you bought the home, who compensated your agent.
25:17
SPEAKER_01: And you're right, you don't have to.
25:19
SPEAKER_01: However, it makes the closing costs more expensive on your home.
25:23
SPEAKER_01: Um, and also, if you are the buyer, don't you think some of these repairs are ones that you would want me to?
25:30
SPEAKER_01: Like you have, we're trying to see it from both sides, like trying to give each other the other's point of view, because that's where I feel like things fall apart, is when there's so much contention and each side is just like, well, why aren't they doing XYZ that I want?
25:43
SPEAKER_01: And it's if we can find something where you both feel like you're getting your needs met, we can get to the closing table.
25:49
SPEAKER_01: But if you dig your heels too far into the mud and you're not willing to compromise, and when I say compromise, I'm not saying, you know, taking things that uh are putting you at a deficit in terms of like livability of a home or like risks, but like, okay, yeah, I'll give a few more concessions, or yes, I will make this repair to get to the closing table.
26:11
SPEAKER_01: Um, you know, I'll make repairs A, B, C, but maybe not D, because that's more aesthetic, things like that.
26:16
SPEAKER_01: So it's really my secondary buyers and sellers that are posing the most challenges.
26:22
SPEAKER_00: Um I've noticed, I've noticed the same thing um in almost coming at it from you know, an almost egotistical spot of I've bought a home before.
26:33
SPEAKER_00: And it's like really, you know, all about mortgage insurance and you know how this all works to get like nobody knows this stuff.
26:40
SPEAKER_00: Um so yeah, I I find that really interesting as well.
26:45
SPEAKER_00: And I think the one of the best skills in both of our industries, just in the real estate world and probably just in any business world in general, is the ability to build trust fast with those people.
26:59
SPEAKER_00: Um, and that's a skill that you know the people at the top of the game, I think, have.
27:04
SPEAKER_00: So they're able to build that trust really fast, even with those clients that want to dig in their heels, so that they can, you know, lean into their job and lean into their expertise and get people good deals.
27:16
SPEAKER_01: And part of that too, which is a learned, um, a learned skill, one that, you know, took me time to is sometimes you have to tell people the things that they don't want to hear.
27:26
SPEAKER_01: And I feel like that's what I'm hearing, or what I have to do a lot of times, um, especially with sellers in this market.
27:32
SPEAKER_01: I know we were talking about buyers, but just on that note, um, because we've also talked about new construction.
27:38
SPEAKER_01: And so you have people that are wanting to sell in new construction neighborhoods or sell just in certain neighborhoods, expecting that they're getting appreciation that they saw in 2020 to 2022.
27:48
SPEAKER_01: Um, but in reality, we have stabilized.
27:51
SPEAKER_01: You know, we're seeing very, I don't want to say minimal, but like compared to that minimal appreciation, like 3%, maybe 5%.
27:59
SPEAKER_01: And if you've only owned this home for two, three years, you're not turning and selling for this big profit.
28:06
SPEAKER_01: And so you have to tell someone, like, listen, if you price for this much because you're trying to recoup fees, your house probably won't sell and it's worse for you in the long run.
28:16
SPEAKER_01: Um, or caveat, you know, we are priced and a buyer comes in and they're asking for uh seller concessions.
28:24
SPEAKER_01: And um, the seller's like, well, I don't want to give them anything.
28:27
SPEAKER_01: And it's like, okay, well, like, let's also look at the carrying costs of continuing to own this home.
28:32
SPEAKER_01: Um, are you living there?
28:34
SPEAKER_01: Are you not living there?
28:35
SPEAKER_01: You know, is giving them this concession in reality equivalent to if you owned this home, another month or two with all utilities expenses in.
28:44
SPEAKER_01: So we're also having like big deep conversations about these things too, because they're going with like their immediate emotional response when in reality we need to sit and really think more strategically about what the bigger picture looks like.
29:00
SPEAKER_00: Something a little bit more tactical.
29:02
SPEAKER_00: You mentioned you're still rocking open houses.
29:05
SPEAKER_01: Yeah.
29:05
SPEAKER_01: Yeah, I am.
29:07
SPEAKER_01: Um, open houses have been nice.
29:10
SPEAKER_01: I think a lot of people, it's kind of like that same thing.
29:13
SPEAKER_01: You know, have you ever walked into a store and then immediately the salesperson is like, hey, can I help you?
29:18
SPEAKER_01: Do you need anything?
29:19
SPEAKER_01: And you're, you know, they're just doing their job, but you're like, oh, I just like, I need a minute.
29:24
SPEAKER_01: I want to be on my own.
29:25
SPEAKER_01: Yeah.
29:25
SPEAKER_01: I find with open houses, you have people that are out and about that are wanting to just dip their toes in without someone pouncing on top of them, right?
29:33
SPEAKER_01: And so yeah, I'll have people come through to open houses.
29:37
SPEAKER_01: And it's not that I don't tell myself.
29:39
SPEAKER_01: I'll introduce myself, I'll talk to them about the house, and I'll just, you know, on their way out, I'm like, have you connected with someone?
29:44
SPEAKER_01: Are you looking?
29:45
SPEAKER_01: Um, and you can really tell when people are timid or not wanting to share.
29:51
SPEAKER_01: And I'll say, Hey, you know what?
29:53
SPEAKER_01: This is a no pressure situation.
29:54
SPEAKER_01: If you do have questions, here's my card, give me a call.
29:57
SPEAKER_01: And that's how I've gotten my new, like, that's how I've gotten these people.
30:00
SPEAKER_01: Um, you know, they also are just wanting to ex, like I said, explore on their own, like visit these neighborhoods on their own terms and their own times without having to be bombarded with emails or phone calls.
30:14
SPEAKER_01: Um, and so the open houses are are going well, or you have neighbors that are like, okay, never seen the inside.
30:20
SPEAKER_01: What are they selling for?
30:21
SPEAKER_01: What does this look like for me?
30:23
SPEAKER_01: Um yeah, but the open houses, I I will say it's probably neighborhood dependent, but been some great turnouts, truly.
30:31
SPEAKER_00: Truly.
30:31
SPEAKER_00: And it's how we got.
30:33
SPEAKER_01: Yeah, that is true.
30:34
SPEAKER_01: Over summer quarter.
30:36
SPEAKER_00: Yeah.
30:37
SPEAKER_01: Um, one more thing that what's that?
30:40
SPEAKER_01: I said they just want to be able to like be out and kind of do things at their own pace.
30:45
SPEAKER_00: One thing that I want to ask about that I'm kind of fascinated.
30:48
SPEAKER_00: You mentioned a couple times the um buyer's agency agreement.
30:53
SPEAKER_00: On the lender side, you know, we can go under contract, we can still get rate shops, still lose deals.
30:58
SPEAKER_00: And I've always been fascinated by that buyer's agency agreement.
31:03
SPEAKER_00: So you mentioned that you're having a pretty you're going pretty deep with a client before you're signing that agreement.
31:11
SPEAKER_00: Do you have a typical process or a typical like place um when you meet a buyer where you have them sign that?
31:19
SPEAKER_00: Because I know it's still a sticking point for a lot of a lot of agents out there.
31:23
SPEAKER_01: Um, well, because you know, I'm not, you can't be showing houses if you don't have some sort of agency agreement signed.
31:29
SPEAKER_01: And so um, you know, for instance, a lot of these first-time buyers I've met, I've met through open houses.
31:35
SPEAKER_01: So we've met face to face once very briefly.
31:38
SPEAKER_01: So then I'll set up a a place for us to talk that's not a house.
31:42
SPEAKER_01: Like, let's take the pressure off.
31:43
SPEAKER_01: And I I don't always like bring them to my office because that can feel like pressure too.
31:46
SPEAKER_01: So I'll ask them, like, hey, let's go grab coffee, my treat, and we'll sit down.
31:51
SPEAKER_01: And the first thing I'll tell them is, like, listen, um, in the state of South Carolina, before I show you a house, before I take you out, I need to explain to you what the different levels of of um like brokerage relationships are.
32:05
SPEAKER_01: So you can be a client, a customer, that's what this looks like.
32:08
SPEAKER_01: Um, so we'll talk more about this, but I just want to let you know, like, this is where you are now as a customer.
32:13
SPEAKER_01: And then if I were to become your agent, we'd upgrade you to client and we'll talk about that.
32:18
SPEAKER_01: Um, and then I spend a good chunk of time talking to them about the process of home buying.
32:23
SPEAKER_01: I ask them their questions.
32:24
SPEAKER_01: A lot of them really want to see what a purchase agreement looks like before they um even start looking because they've heard all these terms like earnest money or due diligence, and they're like, what does it mean?
32:36
SPEAKER_01: Um, and so it kind of takes the scaries out of it by just seeing it on the front end.
32:42
SPEAKER_01: And I always tell them, I know you're gonna ask me probably a lot of the same questions you're asking me now as a refresher, but at least you've seen it and you have an idea for how this process goes.
32:52
SPEAKER_01: Um, and then I talk to them about what an agency agreement looks like.
32:57
SPEAKER_01: Where does compensation come from?
33:00
SPEAKER_01: Um, because it can come from different roots, right?
33:02
SPEAKER_01: It could pursue it from the seller, it might be something that comes from them, and what are the different avenues we can go to get that covered?
33:10
SPEAKER_01: Things like that.
33:10
SPEAKER_01: And so I it honestly, they just it builds trust.
33:16
SPEAKER_01: I know that I would not want to commit to someone if they didn't, you know, build that with me.
33:23
SPEAKER_01: It's it's scary to think like, oh, I'm committed to someone that I barely know.
33:27
SPEAKER_01: That I think it gives them, or I know it gives them the sense of, okay, she's done this before.
33:33
SPEAKER_01: I always offer references.
33:35
SPEAKER_01: I'm like, hey, I have other first-time buyers if you want to give them a call.
33:38
SPEAKER_01: Um, that's cool.
33:40
SPEAKER_01: You know, and then providing resources too, right?
33:43
SPEAKER_01: Um you know, I'll always say you can you're you choose your lender, you choose your inspectors, you choose, you know, um, your closing attorneys, but here's like here's a list of ones that I've worked with if you want to call, things like that.
33:57
SPEAKER_01: So it I think it also takes some pressure off with them.
34:00
SPEAKER_01: And I know other agents do this too.
34:01
SPEAKER_01: It's not like what I'm doing is special, but like it allows them to say, like, okay, I know I have autonomy, I know I have choice, but I also have someone who's willing to like provide me with this menu of things that I can choose from.
34:13
SPEAKER_01: Um, who's done this before?
34:17
SPEAKER_00: Our industry, I think we suck at actually talking about money.
34:22
SPEAKER_01: It's uncomfortable.
34:23
SPEAKER_00: It's a really interesting thing.
34:25
SPEAKER_00: A lot of agents are very uncomfortable talking about commission.
34:28
SPEAKER_00: A lot of lenders are really uncomfortable talking about commission.
34:32
SPEAKER_00: I got that called uh last week.
34:35
SPEAKER_00: So um, guy, he's very rate conscious, talking to a few different lenders, and I said, I'll I'll I'm gonna pay your lender fees on this deal, so you don't have any lender fees.
34:45
SPEAKER_00: He he was he said, Well, how do you get paid then?
34:48
SPEAKER_00: And so, you know, I walk through how I get paid, but it's amazing how many lenders who we deal with finances every day are completely uncomfortable talking about that, you know.
34:59
SPEAKER_01: Well, I mean, it is uncomfortable, right?
35:02
SPEAKER_01: You know, I I think about every time, you know, even when you're out with friends and someone has to like Venmo you for something, you're like, oh, I don't want to like come up to someone and be like, hey, you owe me.
35:11
SPEAKER_01: It feels very, I don't know.
35:12
SPEAKER_01: It's just not comfortable for me.
35:14
SPEAKER_01: Yeah.
35:14
SPEAKER_01: And that was hard, especially when we transitioned um into not advertising compensation.
35:20
SPEAKER_01: Um, and for a while it was, you know, we could ask the listing broker what was being compensated, but now a compensation agreement is between the buyer broker and the selling, like the actual seller.
35:32
SPEAKER_01: And so we are submitting compensation agreements with contracts most often.
35:37
SPEAKER_01: And so one of the conversations, I'll even tell them, I'm like, hey, I know talking about compensation can feel like an icky thing or it can feel uncomfortable, but I want to explain to you how this works.
35:48
SPEAKER_01: And so I'll even talk to them about like, this is how it used to be, this is how it is now.
35:52
SPEAKER_01: It's it feels very different, but in in many avenues, there are similarities.
35:58
SPEAKER_01: It's just how we go about transparency, advocating for these things.
36:03
SPEAKER_01: We have to talk about them more.
36:04
SPEAKER_01: And so the more you talk about it, the more comfortable you become.
36:07
SPEAKER_01: But the other thing too is telling buyers, hey, I'm this is how I get I'm going to pursue a compensation agreement through the seller to cover my fees.
36:20
SPEAKER_01: Um, I will let you know right off the bat if that's something that they come back and say no to and we can decide what you want to do.
36:28
SPEAKER_01: If we're if we're pretty close, like if we're not that far off, I you know, I've told my clients, like, the end of the day, I'm really always gonna try my best not to let that come between you and the home that you want.
36:38
SPEAKER_01: And so we'll figure out a way through.
36:42
SPEAKER_00: You know, we'll put.
36:44
SPEAKER_00: Um, just to kind of wrap us up.
36:45
SPEAKER_00: So we're going in towards the end of the year here.
36:48
SPEAKER_00: We're in a little higher interest rate environment.
36:50
SPEAKER_00: The market has softened a little bit.
36:53
SPEAKER_00: If you could tell an agent who is trying to get their business off the ground what they should be doing between now and the end of the year, what would you tell?
37:05
SPEAKER_01: Oh, probably the same thing I'm telling myself in the mirror every day.
37:08
SPEAKER_01: This season feels slower and it feels like, okay, not as much is happening.
37:13
SPEAKER_01: So I can, you know, not be by the phone, not be by the computer.
37:16
SPEAKER_01: I'm guilty of that some days.
37:18
SPEAKER_01: Um, but real estate is sales and sales is numbers.
37:23
SPEAKER_01: And so the number of conversations that you're having, the number of calls you're making, the number of emails you're sending, the number of times you're putting yourself out there, we're not gonna see the effects of those right away.
37:35
SPEAKER_01: You're generally seeing those, what, 60, 90, you know, even six months down the road.
37:41
SPEAKER_01: And so we have to, we have to prepare.
37:44
SPEAKER_01: We're already preparing for next year.
37:46
SPEAKER_01: Um, and so everything you're doing now is for next year.
37:50
SPEAKER_01: And if you're starting after the new year, then really whatever you whatever you're doing then is gonna be for later next year.
37:57
SPEAKER_01: You have to stay ahead of things.
37:59
SPEAKER_01: Um, even if it feels like nothing is happening, it's because the the nothing you feel right now is setting you up for what's coming.
38:07
SPEAKER_01: So just continuing the routines, continuing the calls, even if no one's answering, or maybe people are a bit grumpy when you call.
38:17
SPEAKER_01: I've had that too.
38:18
SPEAKER_01: Just keep going.
38:19
SPEAKER_01: Because someone who doesn't want to talk to you now might want to talk to you January 1st.
38:24
SPEAKER_00: I'm glad you said that because that's a good reminder for me.
38:27
SPEAKER_00: I'm taking that away.
38:28
SPEAKER_00: For me, um, you have such great information.
38:33
SPEAKER_00: I appreciate you coming back on.
38:35
SPEAKER_00: Um anybody wants to reach out to you, agent, you know, client, whoever, how can they get in touch with you?
38:40
SPEAKER_01: Um, well, you can definitely always text or call.
38:43
SPEAKER_01: Um, and then you know, I can drop my number.
38:47
SPEAKER_01: And then you can find me on Instagram.
38:49
SPEAKER_01: It's Charleston Homes with Rachel, but Charleston is CHS.
38:52
SPEAKER_01: Um, but yeah, Wiker Lifestyle, right in Mount Pleasant.
38:56
SPEAKER_01: So we have an office off Johnny Dodds.
38:58
SPEAKER_01: So you can find me there too.
39:00
SPEAKER_00: Beautiful.
39:00
SPEAKER_00: I appreciate your time.
39:02
SPEAKER_01: Yeah, thanks, Jake.
39:08
SPEAKER_00: Thanks for listening to Charleston's Leading Producers Podcast.
39:13
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39:18
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39:24
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39:29
SPEAKER_00: New episodes every Wednesday.
39:31
SPEAKER_00: I'm Jake Cummings, and see you next week.