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Good Real Estate Agents Don't Wait For A Better Market · Success Is Not Convenient

• 0:00
  SPEAKER_00: Hey everybody, it's Bernie Gallorani bringing you an episode of Success is Not Convenient.
• 0:05
  SPEAKER_00: This one really is going to be directed towards my realtor friends, not just in my own area, my own town of Nashville, but really all the realtors friends that I have around the country who have been so graciously subscribe and like our videos.
• 0:19
  SPEAKER_00: And so this one really is for you, and it's about real estate.
• 0:22
  SPEAKER_00: And here's the question I have for all of us: is it the market that's the problem, or is it your skill that could be the issue?
• 0:29
  SPEAKER_00: And the reason I'm bringing this up to so many people who I talk to, it's they always talk about how the market is changing and there's more inventory and there's more interest rates are not great.
• 0:38
  SPEAKER_00: And there's always going to be adversity, I think, that we have to adjust to.
• 0:43
  SPEAKER_00: And, you know, it's so fun because most of the agents that are in the business today started in the business after 200, let's call it 11, 2012.
• 0:53
  SPEAKER_00: And so what happens is a lot of agents just grew within the business from it growing.
• 0:58
  SPEAKER_00: So we left the 08 market, we kind of struggled within the 08 market.
• 1:01
  SPEAKER_00: We got to about 2012, 2013, and things.
• 1:05
  SPEAKER_00: And so we just had this escalation of increasing market, better market, higher prices.
• 1:12
  SPEAKER_00: And then we got to 2020, and then all sorts of crazy things happened.
• 1:17
  SPEAKER_00: And so from 2000, we'll call it 12 or 13, all we saw was the market improving coming out of the 08 era, right?
• 1:26
  SPEAKER_00: The basically one of the worst housing markets in our country's history.
• 1:30
  SPEAKER_00: And then agents started getting in the business when it started getting better.
• 1:33
  SPEAKER_00: And then we get into 2020, which was a fluke.
• 1:37
  SPEAKER_00: Fluke meaning what happened in the market was a fluke.
• 1:41
  SPEAKER_00: When interest rates dropped, it was a fluke.
• 1:43
  SPEAKER_00: Everybody, including myself, started thinking, oh no, I remember literally looking at my budget, my business budget, and going, what can I cut out?
• 1:51
  SPEAKER_00: This was like in March of 2020 and talking to my coaches.
• 1:55
  SPEAKER_00: And I actually got rid of one of my coaches because I'm like, I don't need this overhead, right?
• 1:59
  SPEAKER_00: Really kind of preparing.
• 2:00
  SPEAKER_00: And then what happened was really unexpected.
• 2:03
  SPEAKER_00: But what's interesting is you had so many great agents that entered into the business and really just thought, boy, this is really fun, 2020, 2021.
• 2:12
  SPEAKER_00: And then guess what?
• 2:13
  SPEAKER_00: All things went back to normal.
• 2:14
  SPEAKER_00: And I'm going to use that word normal because that's really what this is a normal market.
• 2:18
  SPEAKER_00: So things started going back to normal.
• 2:20
  SPEAKER_00: Interest rates shot back up into the sixes, and the consumer, the buyer, and the seller lost their mind.
• 2:27
  SPEAKER_00: And they started seeing homes not sell.
• 2:29
  SPEAKER_00: They started seeing buyers not wanting to buy, interest rates were high, and all these different reasons happened.
• 2:35
  SPEAKER_00: So here's what I'm going to ask you guys to write down because this is this is a tough one to try to absorb.
• 2:41
  SPEAKER_00: The market just tells you the skill that you need to work on.
• 2:46
  SPEAKER_00: So the market isn't causing the housing market to change.
• 2:50
  SPEAKER_00: The lack of the skill that you have is forcing you to point the finger at the market.
• 2:57
  SPEAKER_00: So I'm going to say this to you again.
• 3:00
  SPEAKER_00: The market just tells you the skill you need to work on.
• 3:03
  SPEAKER_00: And so I've always said this if you're a buyer's agent, you know, you're putting people in the car, you're opening the door, do you like it?
• 3:08
  SPEAKER_00: Do you not like it?
• 3:09
  SPEAKER_00: You're moving on, right?
• 3:10
  SPEAKER_00: You're just somewhat like a chauffeur at some level, just opening up doors for buyers.
• 3:16
  SPEAKER_00: Not a tremendous amount of skill, a lot more time than skill.
• 3:20
  SPEAKER_00: But in 2020, your skill had to change because if you remember right, in 2020, you actually had you were put in a position where you had five, six, seven, eight people that wanted that house.
• 3:35
  SPEAKER_00: And so the level of communication that you had with that seller's agent, that listing agent, was the difference maker in a lot of cases whether or not you could win out that listing through a relationship.
• 3:47
  SPEAKER_00: And so the buyer's agents, where they typically could do everything by text and email because there wasn't a crazy frenzy market going on.
• 3:54
  SPEAKER_00: Now the agent, the buyer's agent, the buyer representative agent had to go out and learn some skill to really try to win that out for their client.
• 4:03
  SPEAKER_00: And some of my really high-top producing friends understand what that what I'm saying, because it's been talked about a lot for the last few years.
• 4:09
  SPEAKER_00: And then what happens to the market?
• 4:11
  SPEAKER_00: The market then gets, you know, you get all these agents that flood the market.
• 4:14
  SPEAKER_00: Everybody thinks it's really great.
• 4:16
  SPEAKER_00: And oh my God, real estate's so easy and blah, blah, blah.
• 4:18
  SPEAKER_00: If you were a listing agent during 2020 to 21, getting the listing was hard.
• 4:24
  SPEAKER_00: But if you had the listing, you were going to get paid, right?
• 4:26
  SPEAKER_00: I mean, um, you know, we went from four or five, six months of inventory back in 2010 to basically six minutes of inventory in 20 and 21.
• 4:36
  SPEAKER_00: And I know you guys know what I'm talking about.
• 4:38
  SPEAKER_00: So let's go back a little bit.
• 4:39
  SPEAKER_00: Let's go back to 2005.
• 4:42
  SPEAKER_00: The market in 2005 was very similar as it is today.
• 4:45
  SPEAKER_00: It was, you know, four or five months of inventory.
• 4:48
  SPEAKER_00: You had six, six and a half, seven percent interest rates.
• 4:51
  SPEAKER_00: Um, you didn't hear all the stories about interest rates being too high because we didn't have low interest rates previous to that, right?
• 4:59
  SPEAKER_00: And so then in 05, things were what they are, they were normal.
• 5:03
  SPEAKER_00: It was really great.
• 5:03
  SPEAKER_00: Selling a lot of houses, I close to 40 homes in my first year.
• 5:07
  SPEAKER_00: And so, you know, just working really hard, working the system, right?
• 5:10
  SPEAKER_00: Learning the scripts and skills and dialogues is really what made the biggest difference and learning how to get in front of a bunch of people.
• 5:17
  SPEAKER_00: But I'll never forget in 2005, and this was in uh August of 2005, I went to Palm Desert, California to a retreat, and I was at a Mike Ferry event, and I remember Mike saying this from the stage.
• 5:29
  SPEAKER_00: He says, half of the people that are in this room won't be in this business in five years from now.
• 5:35
  SPEAKER_00: And I thought that was really interesting because what he was saying was the market's getting ready to shift because it was already shifting in 05.
• 5:41
  SPEAKER_00: See, a lot of people think the 08 market happened in 08.
• 5:44
  SPEAKER_00: No, that's when it showed up everywhere.
• 5:46
  SPEAKER_00: It was already happening in a lot of these big cities around the country.
• 5:49
  SPEAKER_00: And Mike shared with us in August of 2005, if you're in business today, unless you learn skills, unless you're disciplined in your schedule, and unless you're really focused in on the work that you have to do, you're going to be doing half, if less than half, than you're doing right now.
• 6:05
  SPEAKER_00: And a lot of you guys won't even be here.
• 6:07
  SPEAKER_00: And what's really, it was kind of weird because we didn't really understand what that meant, especially for me, because I had such a great first year in business that I didn't really understand what that meant.
• 6:15
  SPEAKER_00: 2008 rolled around, and of course, we were starting to see things slow down.
• 6:20
  SPEAKER_00: But what they were doing between 2005 and 2008, the coaches that I had kept working with me on objection handling skills, communicating with people, and some of the top producers in the country were working on the skill side.
• 6:34
  SPEAKER_00: So remember, the title of this is the market is just teaching us what skill we need to work on.
• 6:40
  SPEAKER_00: And so we slowly went from 05 to 6 to 7 into 8, we were slowly seeing more and more inventory not selling, more expired, more cancelled, more withdrawn listings.
• 6:51
  SPEAKER_00: And so what's that showing us is we went from a four to five month supply of inventory to like 12 to 18 month supply of inventory.
• 6:59
  SPEAKER_00: And here's what's really crazy.
• 7:02
  SPEAKER_00: Only in 2008, 2009, 2010, and it was a little bit, numbers varied a little bit, but I remember at one point in the 36-month span that we had 8% of the listings that were on the market selling.
• 7:15
  SPEAKER_00: 8%, which means 92% of homes never sold.
• 7:19
  SPEAKER_00: They canceled, they withdrew, and they just came off the market or expired.
• 7:23
  SPEAKER_00: So they just came off the market for some reason or another.
• 7:26
  SPEAKER_00: Here's another interesting stat.
• 7:29
  SPEAKER_00: In 2005, we had 1.7 million agents fully licensed in the United States.
• 7:38
  SPEAKER_00: 1.7 million in 2010, 970,000 were left.
• 7:45
  SPEAKER_00: What happened to that balance?
• 7:47
  SPEAKER_00: What happened with 700,000 agents?
• 7:52
  SPEAKER_00: What happened to it?
• 7:53
  SPEAKER_00: What happened to 700,000 agents?
• 7:57
  SPEAKER_00: Tell me that number.
• 7:58
  SPEAKER_00: Like you have 1.7 million and 970 left.
• 8:02
  SPEAKER_00: What happened?
• 8:02
  SPEAKER_00: And why did that happen?
• 8:04
  SPEAKER_00: That's the question we want to ask ourselves.
• 8:06
  SPEAKER_00: What happened?
• 8:07
  SPEAKER_00: Here's what happened.
• 8:09
  SPEAKER_00: If you learn skill, skill, skill, skill, skill.
• 8:12
  SPEAKER_00: Title of our thing is Is it the market or is it skill?
• 8:16
  SPEAKER_00: We started working on skills.
• 8:18
  SPEAKER_00: So I sold 40 homes my first year.
• 8:20
  SPEAKER_00: I sold 58 my second year.
• 8:22
  SPEAKER_00: And then I was in the 65 to 75 range in my third year.
• 8:26
  SPEAKER_00: But here's what's interesting: I went from that number to over 100 in 2008, 130 in 2009.
• 8:34
  SPEAKER_00: And what was causing all of that, and ultimately up to 150, and what was causing all of that was that I learned the skill of how to talk to and convert and cause homes to sell when other agents were getting out of the business.
• 8:48
  SPEAKER_00: So instead of saying, hey, I got a skill to work on, they just said the market's not good.
• 8:53
  SPEAKER_00: I need to get out.
• 8:54
  SPEAKER_00: God, I mean, if you were an agent back then and you got out and you've come back in, you're probably feeling a little of that pinch right now.
• 9:00
  SPEAKER_00: Don't get out.
• 9:02
  SPEAKER_00: It's a skill game.
• 9:04
  SPEAKER_00: It's not a market problem.
• 9:06
  SPEAKER_00: The market just tells you what you have to work on.
• 9:09
  SPEAKER_00: What skills are you working on right now?
• 9:13
  SPEAKER_00: Like, what do you need to do right now?
• 9:15
  SPEAKER_00: We have high interest rates.
• 9:16
  SPEAKER_00: We've had high interest rates since the mid of 22 to 23.
• 9:20
  SPEAKER_00: And our agents are going, well, it's the interest rates.
• 9:22
  SPEAKER_00: It's not the interest rates.
• 9:23
  SPEAKER_00: It has nothing to do with the interest rates.
• 9:25
  SPEAKER_00: And that's the message I want to bring to you guys today.
• 9:28
  SPEAKER_00: If you knew it wasn't the interest rates and you knew it was a skill problem, would you want to do something about it?
• 9:33
  SPEAKER_00: In 2023, interest rates were had rose to about 6%.
• 9:38
  SPEAKER_00: We're at 6% rates right now, 6 plus, 6.2%, 6.3%, 6.4, 6.5.
• 9:43
  SPEAKER_00: You name the number.
• 9:44
  SPEAKER_00: It doesn't really matter.
• 9:45
  SPEAKER_00: The interest rates are not the problem.
• 9:47
  SPEAKER_00: Interest rates were the same interest rates they were in 2000, 2001, 2002.
• 9:53
  SPEAKER_00: We never in the history of our of our country ever saw interest rates at 3% until COVID hit, which means that they're not going back.
• 10:00
  SPEAKER_00: After the 08, we had President Obama who ended up lowering those rates to 5.5%, and that's where they were in that range before COVID hit in 2020.
• 10:08
  SPEAKER_00: And then everybody now kind of wants us camp out on the 3% number or 4% number.
• 10:14
  SPEAKER_00: And that's not really what they're asking for.
• 10:17
  SPEAKER_00: Because you know, and I know as a real estate agent, it's never going to get there.
• 10:21
  SPEAKER_00: So if somebody says, hey, I want to see an interest rate at 4%, do you sit there and go, okay, all right, well, I'll call you back next year when you know absolutely that there's never going to be a 4% interest rate next year.
• 10:32
  SPEAKER_00: And if there is, it's something catastrophic as COVID brought to our country.
• 10:37
  SPEAKER_00: It's going to be something catastrophic.
• 10:39
  SPEAKER_00: For all my real estate friends, the only reason we saw those interest rates was because we wanted to stimulate spending.
• 10:44
  SPEAKER_00: In the real estate market, when you have a real estate transaction, it employs a lot of people.
• 10:50
  SPEAKER_00: Inspectors and termite people and title companies and contractors get to work on these properties.
• 10:56
  SPEAKER_00: And so it stimulates a lot of the economy.
• 10:58
  SPEAKER_00: If the if the housing market goes into a lull, it creates a lot of problems.
• 11:03
  SPEAKER_00: And so by lowering those rates, it changes the dynamic of how people look at buying and selling homes.
• 11:09
  SPEAKER_00: And so if you looked at this in 23, think about this.
• 11:13
  SPEAKER_00: Today, people are buying houses.
• 11:16
  SPEAKER_00: For us anyway, I don't know how you're doing.
• 11:17
  SPEAKER_00: Maybe you need to work on your skill.
• 11:19
  SPEAKER_00: But we're buying we're selling a lot of houses, lots.
• 11:22
  SPEAKER_00: Every 30 days, we're pending a hundred houses.
• 11:25
  SPEAKER_00: We just had our second best month ever in the history of 22 years just last month.
• 11:32
  SPEAKER_00: Most sales ever.
• 11:33
  SPEAKER_00: With 6% interest rate.
• 11:34
  SPEAKER_00: So here's the question: is it the market or is it your skill?
• 11:38
  SPEAKER_00: See what I realized in 23 is that my agents didn't have the skill to have the right conversation on how to get the buyers to look at the situation differently.
• 11:48
  SPEAKER_00: In 2023, buyers didn't want to buy houses because the new change in interest rates.
• 11:53
  SPEAKER_00: But now buyers have decided to buy houses with interest rates still the same.
• 11:59
  SPEAKER_00: And why did this happen?
• 12:01
  SPEAKER_00: Yes, they realize that the interest rates are not going down.
• 12:06
  SPEAKER_00: So what are they doing?
• 12:07
  SPEAKER_00: They're starting to buy again.
• 12:08
  SPEAKER_00: And if you knew you could let them buy, if you knew that you could get them to buy in 23, why would you wait till 26 to have them buy?
• 12:17
  SPEAKER_00: It's a skill issue.
• 12:19
  SPEAKER_00: And if you knew exactly what to say, you knew exactly what to do, and you were confident in that opportunity and you could have converted those people in 23, why would we wait until they made the decision in 26?
• 12:31
  SPEAKER_00: Could you have had a skill and a conversation with them that got them to actually look at it differently?
• 12:37
  SPEAKER_00: Write this one down.
• 12:38
  SPEAKER_00: When you change the way you look at things, the things you look at change.
• 12:41
  SPEAKER_00: That only doesn't go for us as people, but it also goes to the clients whom we're talking to.
• 12:46
  SPEAKER_00: See, the clients could have bought in 23, but see, we didn't learn the skill on how to navigate that conversation to get them to see it differently.
• 12:52
  SPEAKER_00: So what happened was we just said, okay, well, you know, we'll try you back next year, see if the interest rates drop down to 4% when you know that they're never going to drop down to 4%.
• 13:01
  SPEAKER_00: And if you didn't know they weren't gonna drop down to 4%, you need to do your homework.
• 13:04
  SPEAKER_00: Here's an interesting uh thought I'd like all of us to consider.
• 13:08
  SPEAKER_00: If you knew 100%, I mean 100% without a shadow of a doubt, that the struggle that you're having in real estate was a skill issue and not a market issue, would you be willing to learn more about it?
• 13:21
  SPEAKER_00: Interesting question, right?
• 13:23
  SPEAKER_00: If you absolutely knew that the difference between selling 20 homes and selling 40 homes, or selling 40 homes and selling 100 homes, or selling five homes to selling 25 homes, if you knew that it really wasn't anything more than a skill issue, would you be willing to put yourself out there to learn more?
• 13:46
  SPEAKER_00: And that's what this video is about.
• 13:48
  SPEAKER_00: I would love for you guys to message me, email me, call me, and ask for scripts and dialogues that we have that we teach our agents.
• 13:58
  SPEAKER_00: Our average days on market over here for listings right now is 15 to 18 days.
• 14:03
  SPEAKER_00: We're actually at 18 days on average as a company.
• 14:05
  SPEAKER_00: In a market that's supporting 57 to 60 days on the market, we're selling 96% of everything we go on the market right now.
• 14:16
  SPEAKER_00: 96%, 9 out of 10 houses listed are sold on an average of 18 days.
• 14:23
  SPEAKER_00: Why is that possible?
• 14:25
  SPEAKER_00: Because we know what to do, we know what to say, we know how to act, we know how to approach it.
• 14:30
  SPEAKER_00: And it's things that we teach constantly to our agents so that they can succeed at a very high level.
• 14:37
  SPEAKER_00: Really the problem is how agents think, if I'll be honest with you.
• 14:41
  SPEAKER_00: You know, when you look at an industry that right now 97%, 97% of every licensed agent sold four to zero homes already this year.
• 14:52
  SPEAKER_00: Three percent have sold more than four houses.
• 14:56
  SPEAKER_00: Three percent.
• 14:58
  SPEAKER_00: Honestly, it's uh actually embarrassing that we would have a community of agents that all they had to do was just learn what to say.
• 15:05
  SPEAKER_00: Just learn what to say.
• 15:06
  SPEAKER_00: That's the only just learn what to say, learn how to act, learn how to approach things, and your whole life could be totally different.
• 15:12
  SPEAKER_00: So, guys, I want to thank you all for the opportunity to share this message with you.
• 15:17
  SPEAKER_00: Is it the skill you don't have, or is it the market you're pointing the finger at?
• 15:22
  SPEAKER_00: I'm actually going with the skill.
• 15:24
  SPEAKER_00: I'll let you make the choice.
• 15:25
  SPEAKER_00: Hope everybody has a great day.