Latest / The Real Estate Agent Playbook / Agent Change Series: Adapting to the Dynamics of Real Estate Agent Income

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Agent Change Series: Adapting to the Dynamics of Real Estate Agent Income · The Real Estate Agent Playbook

• 0:04
  Socrates once said, The secret of change is to focus all of your energy not on
• 0:08
  fighting an old, But I'm building the new that's exactly what we're going to
• 0:13
  have to do right now as we enter this new change in our real estate industry We must
• 0:19
  focus on planning for maybe a different commission structure, but ultimately
• 0:23
  as we move down the line Your income as an agent needs to just be a focus.
• 0:28
  I'm not saying it's going to go away.
• 0:30
  I'm not saying that anything like that, but we better plan because when
• 0:34
  it comes to taking food off of my kids and my family's table, I want
• 0:38
  to make sure that I am prepared.
• 0:40
  And that's exactly what we're going to talk about.
• 0:42
  So welcome to the agent change series.
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  This is video number three.
• 0:45
  You can check out the first two before, but moving forward, we're
• 0:48
  absolutely going to talk about.
• 0:50
  Tactical strategies to absolutely prepare yourself for what may or may not come
• 0:55
  because we don't know the commission lawsuits are unsettled So stay tuned
• 1:03
  What's up guys, I'm Jeremy Kane with the real estate agent playbook EXP Realty.
• 1:07
  I am so excited that this agent change series is moving along.
• 1:11
  If you like what you hear, there is 10 videos in this series.
• 1:15
  This is just video number three.
• 1:17
  We're gonna get tactical.
• 1:18
  We're gonna get into it.
• 1:19
  So if you like what you hear, like, comment, give me a subscription
• 1:22
  so that you know when and where.
• 1:24
  These videos come out, click that notification bell, and you will
• 1:27
  be notified right when they post.
• 1:28
  So, if you're listening on the podcast, please share this with your
• 1:31
  favorite real estate agent or your buddy, real estate agent, as we're
• 1:35
  building communities across the board to absolutely level up and win every
• 1:39
  single day at the game of real estate.
• 1:40
  So first and foremost, let's talk about this.
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  What I do know will happen, regardless of anything else is that
• 1:47
  there will be some discount, quote unquote discount models coming out.
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  And I want to.
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  First and foremost, caution you as an agent to not put
• 1:57
  your focus so much on that.
• 1:59
  These discount commission models have existed since the beginning of time.
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  We have all kinds of them.
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  And the truth is, is that they are market specific programs and
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  certainly are an option for buyers and sellers to maybe save a little money.
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  Do some of it on their own or whatever the setup is.
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  But the ultimate truth is there must be volume, right?
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  So regardless of anything else, these big tech companies that are
• 2:26
  doing it, usually they're using tech to you push the envelope.
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  They must have volume and when they're pushing volume and they're advertising
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  and doing all the things and, and stirring up buyers, most buyers that
• 2:38
  are realistic will step back and be like, okay, Well, am I doing this?
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  It's a perfect example.
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  Do you shop at the discount super store all the time?
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  Or sometimes are you like, man, I don't want to fight that crowd.
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  I'd rather, you know, get service here at, you know, this store or that store.
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  I'm not here to make any, any statements on what a discount store is and whatnot.
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  So we won't name names, but think about this.
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  It's truly people are throwing a ton of marketing dollars to stir
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  up the pot, get people excited.
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  And some people don't pick the cheapest thing on the shelf because if they've
• 3:12
  picked the cheapest thing on the shelf, their whole lives, they've probably been
• 3:16
  burned and they've bought 10 cheap things where they could have bought four of
• 3:20
  the, you know, top of the line things.
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  And they're sitting back realizing that they have this product that's
• 3:25
  cheap and doesn't really do what it's supposed to do or breaks or whatever.
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  And that other one they could have had, and it could still
• 3:31
  be working 10, 20 years later.
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  So we have to understand that these models will come up.
• 3:36
  Yeah.
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  Do not put your focus and energy on them or talking negatively
• 3:40
  about them or any of that because they may provide a service, right?
• 3:45
  I have not, I have yet to see a discount kind of service that can ebb and
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  flow with the market and guess what?
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  You as an agent can.
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  So, that's first and foremost.
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  I want to say, okay, how can we embrace this, right?
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  Is it a better option for the consumer?
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  Do they have enough knowledge to do some of the things themselves?
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  If so, that's okay.
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  And it might be a better choice for them.
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  However, if you're building up your value, promoting what you do, and you become
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  that age old top of the line, you know, go to agent, you will absolutely benefit.
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  So instead of focusing on, Oh man, here it is, this person's putting out this ad
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  and they're going to do this and they're going to do it for X amount of dollars.
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  Who cares if they're going to do it for X amount of dollars and that works and
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  that helps people get into home ownership.
• 4:31
  Yep.
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  Great!
• 4:31
  Those people will be sellers someday and first time home sellers are one,
• 4:35
  population that I think will really embrace this, you know, change.
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  And I think there's a good possibility that first time home
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  sellers in that population is a great target audience, because they
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  used to be first time homebuyers.
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  And either they had a great experience and, you know, the, it
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  was the old guard and the seller paid and did all the things.
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  But maybe they're ready to sell now and navigating a sale of a home is much
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  different than, you know, especially in the seller's market, just picking
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  a price and bidding on it and taking it as is and doing all those things.
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  So just find the, I guess in all of this.
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  And if those discount brokerages come up and they're discounting their
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  buyer's agent commission, they're doing all those things, look at it,
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  see what it is, but don't focus on it.
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  Don't make it, Oh, this is the end of the industry.
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  Because at some point it's going to shift right back.
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  Right.
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  And currently we're in a seller's market in most markets anyways.
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  So these discount brokerages are going to have a problem,
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  you know, getting into that.
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  It's when the market shifts to their side, right?
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  Just like when we had the listing, the discount brokerages, they kind
• 5:42
  of rose up, some of them are still around, some of them flamed out.
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  That's exactly what happened in the height of the market when it was, you know,
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  literally put a house on the market and, you know, you get a couple offers and you
• 5:54
  take one or put a house on the market, market it right, you get 20 offers because
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  you hired a professional and they're, You know, experience and what's going
• 6:02
  on in your price gets boost that way.
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  So, regardless, just don't focus on the discount on the startups,
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  on these companies that are up and coming and, you know, look at their
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  model, any ideas you want to steal from them, rip them off, let's go.
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  But anything else don't make it the point of your focus, because if you're
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  focused on that, there's no way you're looking ahead and there's no way that
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  you're building that value proposition.
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  So you are that top of the line agent.
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  And ultimately all of this is proposed.
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  It sounds like NAR will move forward regardless of the
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  DOJ approves or anything.
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  And I mean, it'll be better than it was, right?
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  Ultimately the transparency and all of that we'll be moving
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  towards a settlement at some point.
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  And regardless, we need to prepare for the change, but I
• 6:45
  challenge you to be flexible.
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  I was so proud of this industry or most of it when we went through the COVID
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  years and, One day we are central.
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  The next day we weren't the next day we could, you know, had all these rules
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  and it was changing and adaptable, but people still closed deals.
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  People still got into homes during that time and maybe took advantage
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  of, you know, the, the uncertainty and those people were rewarded famously
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  because 2020 and 2021 were excellent years to be a homeowner as far as
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  appreciation across the country, because it, it built up demand.
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  People got in, and it was an absolutely massive opportunity for people.
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  Now, surveys say that a lot of those people maybe have a little bit of
• 7:27
  buyer's remorse, maybe feel like they didn't get the perfect house because
• 7:30
  you know, X, Y, Z, well, guess what?
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  Those people are probably pretty prime to sell right now and could
• 7:36
  be, you know, your next listing.
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  So make sure that you're not avoiding that.
• 7:40
  You're not avoiding it.
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  and maybe lost a little bit of money.
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  If they bought right at the tail end of the appreciation cycle, make sure
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  that you're still providing value.
• 7:48
  You're still reaching out at the end of the day.
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  That could be a huge lead source for you for listings, but then take
• 7:55
  the lessons that you learned as an agent or in your business, right?
• 7:58
  So you weren't in real estate then.
• 7:59
  We all were so adaptable and understanding what, you know, we
• 8:03
  could do, and I'm not talking about masks and vaccines and all of that.
• 8:08
  That's not what I wanna speak about.
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  I wanna talk about how you made adaptions, right?
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  It was, it was a time where there was a lot of information coming out of
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  us, some great, some not you believe, some you don't believe others.
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  But we stood up as leaders for at least our family cohort and said,
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  this is the direction we're going.
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  We did the same thing for our business and, and I want you to know that, you
• 8:31
  know, looking back now that it was actually a prime time to be a real
• 8:35
  estate agent and it may still, with this change coming, it may be a prime
• 8:40
  time to be in real estate, right?
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  Because some people will be getting out of it.
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  Some people are like, I don't, I don't want to do that change.
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  I've already done enough.
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  They might do something else.
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  So that will, you know, shrinks the massive population of agents around
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  the country, which limits your, your, competition, but also the population
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  of society and the home buyers and home sellers and trans people that are
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  transacting is growing day by day, right?
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  Huge population of first time home buyer age and all of those things.
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  So you take less agents, right?
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  Which may happen or may not.
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  I bet that it doesn't increase, right?
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  So your competition is either where it's at or less.
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  And now you have an increasing population over here.
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  If your competition is less, there's more opportunity.
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  And so that's where your volume could come in.
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  That's where you could absolutely scale and do the things.
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  But my, I'm urging you just be flexible, understand that you're
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  building this value, you're going to use it moving forward.
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  However, when the rules do come down.
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  You'll be able to just make tweaks to your plan because you'll know the rules instead
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  of having to build your plan right now.
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  You have three months starting right now to get yourself where you need to
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  be based on that July, proposed date, , that NAR handed down in the settlement,
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  and is still proposed for sure.
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  And if any of this sounds creative or you're interested,
• 9:59
  I am releasing a webinar.
• 10:01
  The last week in April called agent change, buyers agent to listing agent
• 10:05
  in 30 days, please comment webinar below.
• 10:08
  If you want early access to that, it will be free for the early access and
• 10:12
  you can absolutely build a plan from buyers agent to listing agent in 30 days.
• 10:17
  And I'm super excited for that one because I think it's timely.
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  Now I do want to say there's always going to be buyers.
• 10:23
  There's going to be buyers agents.
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  We'll see how that kind of plays out.
• 10:26
  However, it's never been a bad thing for your real estate career to transition
• 10:30
  from a buyer's agent to a listing agent.
• 10:32
  So if you're interested in that comment webinar below, it will be a tactical quick
• 10:37
  webinar with a ton of resources to make that happen for you and your business.
• 10:42
  And the last thing I want to say, maybe it's Debbie downer a little bit,
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  but prepare for income change, right?
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  It's true that currently The actual transaction sides in this, you know,
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  current state of our national real estate market are very low, right?
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  Almost lower than, you know, we're reaching the great financial
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  crisis, the 08, 09 stuff levels.
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  And even before that, there's, there's other areas where we're reaching kind
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  of a low point in transaction count.
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  Now, people may be like, well, you know, whatever, but the truth is, is that what's
• 11:16
  propping us up is the price of homes and, and all the things that, you know,
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  have kind of been built in, you know, pay raises for agents for a long time.
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  And so I want you to realize that, you know, there will probably be a financial
• 11:29
  impact of anything that comes on because we have to take that time to adapt and
• 11:34
  change and build our businesses, you know, within the new rules or the rules, right?
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  I don't know if they're even new.
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  We've commissions have always been a hundred percent negotiable.
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  So understand that piece and just be smart with your money.
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  Put a little bit more aside.
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  Save a little bit more.
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  And because just like I tell new agents, right, if you have a nest egg, if you
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  have something to fall back on, so you're not so transactional, right?
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  Because if you get pushed to the point where you're so transactional,
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  then you forget about the value you need to, you know, get money.
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  I get it to put food on your family's plate.
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  And it's a transaction and no longer a relationship and that kills further
• 12:12
  repeat and referral business Because if at any point the consumer feels like it's
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  transactional that's when they start to shift Could I just do this on my own?
• 12:21
  Could I use technology to you know do this?
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  Certainly, so we have to really fight that urge and the way you do
• 12:28
  that is you plan right plan for the worst Expect the best and you will
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  be absolutely ahead of the game.
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  So I get it It's a stressful time, but if we can step back and look
• 12:40
  introspectively and plan Financially to build up a little nest egg anything
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  you can do Because right now the only thing is that the only thing certain is
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  that there will be a change in some way.
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  And if it doesn't change that much or whatever comes down and it's perfect
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  and you've built everything like you're supposed to, and you're off and running,
• 13:00
  well, then you have a little money saved up for marketing or whatever.
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  So, that's just what I caution you to do.
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  Let's not pretend like it's going to be sunshine and rainbows.
• 13:08
  I will tell you that commenting on Facebook groups and doing all the
• 13:11
  things is not going to, you know, help you prepare for the change, right?
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  NAR is not going to all of a sudden change whatever you want them to
• 13:18
  change because they read it on a Facebook group on a mastermind.
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  So, shift your energy, look at yourself, look at your budget.
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  Don't, don't be too focused on the discounts and all
• 13:28
  of that that's coming up.
• 13:29
  And again, if you're interested in Buyer's Agent to Listing Agent
• 13:32
  in 30 days, comment webinar below.
• 13:34
  Make sure you subscribe to the channel or follow the podcast
• 13:37
  and we'll catch you next time