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Fed Raises Interest Rates Again: What DFW Realtors Must Do NOW · This Week in DFW Real Estate

• 0:00
  Speaker 1: All politics aside, he's doing himself a lot of favors
• 0:02
  Speaker 1: before November right now. That was total sarcasm.
• 0:08
  Speaker 2: I saw this post that Jeff Glover, you know, good
• 0:11
  Speaker 2: friend and runs Glover U, the number one real estate
• 0:13
  Speaker 2: team in Detroit, Michigan.
• 0:15
  Speaker 3: Yeah.
• 0:16
  Speaker 2: And he said, look, he put this as a post
• 0:18
  Speaker 2: a couple of days ago. It said market shifting, market
• 0:21
  Speaker 2: of the moment, time to pivot. We're in a shift.
• 0:25
  Speaker 2: Market's weak. You know what those are? Those are statements
• 0:28
  Speaker 2: that losers say.
• 0:31
  Speaker 3: Right?
• 0:31
  Speaker 2: Winners don't concern themselves with the market. We make our
• 0:34
  Speaker 2: own market, so it doesn't actually matter what the market does.
• 0:37
  Speaker 2: If you hang with us, you'll never hear me talk
• 0:39
  Speaker 2: about the market. Hang with everyone else, concern yourself with
• 0:42
  Speaker 2: the market, and you'll get what everyone else gets.
• 0:44
  Speaker 3: By the way, finding yourself out of a very, very.
• 0:48
  Speaker 1: Overheated and artificially man-made bull run that we had in
• 0:53
  Speaker 1: our economy during the COVID years is not going to
• 0:55
  Speaker 1: come without some pain. There was never going to be
• 0:58
  Speaker 1: any soft landing. I don't know why we kept saying
• 1:00
  Speaker 1: there might be It was going to be us skinning
• 1:03
  Speaker 1: our knees across the pavement for what has been almost
• 1:06
  Speaker 1: a half a decade now.
• 1:07
  Speaker 3: Turn it up.
• 1:08
  Speaker 1: This is This Week in DFM with your real estate.
• 1:11
  Speaker 3: A weekly podcast built for agents who actually get paid.
• 1:16
  Speaker 3: Market moves, listing heat, closing streets. DFM and your agents. Brian,
• 1:34
  Speaker 3: how did this week go for you? Me personally or
• 1:37
  Speaker 3: me as a member of this industry and this world?
• 1:41
  Speaker 3: I just think as a person. As a person?
• 1:43
  Speaker 1: You know what I've done this week and last week
• 1:45
  Speaker 1: and the week before that I've gotten a really good
• 1:47
  Speaker 1: habit of, and you guys.
• 1:48
  Speaker 3: Should as well?
• 1:48
  Speaker 1: I've been hitting the X on Facebook posts and saying
• 1:52
  Speaker 1: not interested in a lot of things. Man, does that
• 1:54
  Speaker 1: clear up your headspace quite a bit. And I found
• 1:57
  Speaker 1: myself doing that this week and last week more than
• 2:00
  Speaker 1: ever in my life, and it just feels so good.
• 2:02
  Speaker 1: You're like, I'm just getting a little detox. I'm never
• 2:04
  Speaker 1: going to see that again. I'm never going to see
• 2:07
  Speaker 1: that again.
• 2:07
  Speaker 3: You know what I did?
• 2:08
  Speaker 2: I deleted X or Twitter. And there's two things I noticed.
• 2:15
  Speaker 2: First off, I'm no longer going down rabbit holes.
• 2:18
  Speaker 1: Yes.
• 2:19
  Speaker 2: So the rabbit hole is at the fault of Twitter.
• 2:23
  Speaker 2: And I also noticed that everything that anybody sends me
• 2:26
  Speaker 2: through a text that says watch this, it's always on
• 2:28
  Speaker 2: X and I have to Yeah. We try to download
• 2:31
  Speaker 2: it and I'm not going to. So I know I'm
• 2:33
  Speaker 2: not watching any of the videos you send me.
• 2:35
  Speaker 3: What? Yeah.
• 2:36
  Speaker 1: Where do you go down rabbit holes? Mine's always Instagram,
• 2:40
  Speaker 1: but that's your, your Facebook. So Facebook, but that's all
• 2:43
  Speaker 1: your guys' fault because the only time I check Instagram
• 2:45
  Speaker 1: is to see you guys as group messages. Yeah. And
• 2:47
  Speaker 1: then I watched that reel and then I'll go down
• 2:50
  Speaker 1: to the, and I find the craziest stuff on there.
• 2:53
  Speaker 1: I found a man the other day who, um, his whole, uh,
• 2:57
  Speaker 1: channel is just, he, recreates the restoration of cars but
• 3:03
  Speaker 1: they're they're toy cars he finds have you seen this
• 3:06
  Speaker 1: guy he finds it's like old toy cars that are
• 3:11
  Speaker 1: old models like to scale models and he has a
• 3:14
  Speaker 1: junk yard right and then he'll back up the little
• 3:17
  Speaker 1: tow truck and then he'll tie him on he does
• 3:20
  Speaker 1: everything like in real life like you would really do
• 3:21
  Speaker 1: it and then he pulls it into his shop it's
• 3:24
  Speaker 1: a little toy shop And then he restores the car
• 3:27
  Speaker 1: and he does it all with tiny tools. It's actually,
• 3:29
  Speaker 1: it was about the most fascinating two hours I've had
• 3:33
  Speaker 1: watching you restore.
• 3:35
  Speaker 3: Isn't it just like relaxing? It's like an ASMR.
• 3:39
  Speaker 2: Like I watch a guy similar to that, but he
• 3:42
  Speaker 2: restores old baseball gloves.
• 3:43
  Speaker 3: Oh, that's gotta be cool.
• 3:44
  Speaker 1: Yeah.
• 3:45
  Speaker 2: He cleans up the leather. People will send it to
• 3:47
  Speaker 2: him and be like, this is, this was my dad's glove.
• 3:49
  Speaker 2: He reconditions it, then he takes the lacing out, and
• 3:52
  Speaker 2: then sometimes we'll put original or similar style lacing in,
• 3:56
  Speaker 2: or then he'll do a color scheme, but then brings
• 3:59
  Speaker 2: it back to life. That's pretty cool. Yeah, it's just relaxing,
• 4:03
  Speaker 2: especially with everything that's going on right now.
• 4:05
  Speaker 3: I know you guys have seen the lawn mowing guy.
• 4:07
  Speaker 1: Oh, yeah.
• 4:07
  Speaker 3: Yes. That does the same thing. Yeah.
• 4:09
  Speaker 4: SB mowing.
• 4:10
  Speaker 3: Yes. Yeah. I could watch that. The guy that tears
• 4:12
  Speaker 3: up his yard. Oh, he's the one that finds neglected yard. Yes.
• 4:17
  Speaker 2: But I've seen the one where he's torn up his
• 4:18
  Speaker 2: own yard and then that's, he did it and did that.
• 4:21
  Speaker 2: Or I watched a guy transform his shed into a, um,
• 4:26
  Speaker 2: she shed into a cigar room, um, bourbon cigar room.
• 4:31
  Speaker 2: And that was, it was day one through however long
• 4:33
  Speaker 2: it took them, you know, however much it, you know,
• 4:36
  Speaker 2: it costs them to do.
• 4:37
  Speaker 3: That was, again, it's satisfying to watch.
• 4:39
  Speaker 4: I found the guy that he has started converting his
• 4:44
  Speaker 4: 2000s era Chevy Cavalier into like a Fast and Furious
• 4:49
  Speaker 4: type like 2000s car.
• 4:53
  Speaker 3: That's pretty entertaining. But it's all a distraction. It is
• 4:57
  Speaker 3: because going on, you know, on our old show, Brian
• 5:01
  Speaker 3: would always be the one talking about the Fed, the
• 5:04
  Speaker 3: CPI report. What other report?
• 5:07
  Speaker 1: Well, there's CPI and then there's producer price. There's PPI
• 5:11
  Speaker 1: as well. And the jobs report. Jobs report is huge.
• 5:15
  Speaker 1: Ag report is huge.
• 5:16
  Speaker 3: Inflation reports.
• 5:17
  Speaker 2: You would always wait for the chairman to come out
• 5:19
  Speaker 2: and see how his words were to see if it
• 5:22
  Speaker 2: went up or down.
• 5:23
  Speaker 3: I don't like Kevin as much as I like Jerome
• 5:25
  Speaker 3: from a press conference standpoint. He's not as fun. He's
• 5:27
  Speaker 3: not as entertaining.
• 5:29
  Speaker 1: No.
• 5:29
  Speaker 3: He's not as much of a wild card.
• 5:30
  Speaker 2: Did you, I mean, obviously the Fed, if you've been
• 5:34
  Speaker 2: under a rock, then the Fed raised interest rates.
• 5:36
  Speaker 3: For the first time in two years? Since 2023. Three years.
• 5:39
  Speaker 3: Three years.
• 5:41
  Speaker 2: And while it wasn't really surprising, obviously, there's a lot
• 5:45
  Speaker 2: of people saying that, especially Trump. President Trump came on
• 5:49
  Speaker 2: and was saying how we need to go the opposite direction.
• 5:52
  Speaker 3: Yeah.
• 5:55
  Speaker 1: All politics aside, he's doing himself a lot of favors
• 5:58
  Speaker 1: before November right now. That was total sarcasm. Yes. He
• 6:03
  Speaker 1: is in disagreement. for once with the fed. So they,
• 6:07
  Speaker 1: he believes that, uh, we should have gone.
• 6:09
  Speaker 3: The other way with his own. This is a guy
• 6:11
  Speaker 3: he wanted in place. This is the guy that he
• 6:13
  Speaker 3: more or less installed.
• 6:15
  Speaker 1: Um, I don't claim to be smart enough to know
• 6:18
  Speaker 1: what we should have done in this situation, whether we
• 6:20
  Speaker 1: raise or lower, but you look around in your world.
• 6:23
  Speaker 1: I think we all live off anecdotal evidence and anecdotally
• 6:27
  Speaker 1: people are struggling and inflation is persistent. So I don't
• 6:31
  Speaker 1: know how you lower in that, in that scenario. I
• 6:33
  Speaker 1: don't know how you do anything but raise, but that
• 6:36
  Speaker 1: comes with its own complications as well. 10-year treasury is
• 6:39
  Speaker 1: at another peak. The highest in what, Justin?
• 6:42
  Speaker 3: 19 years.
• 6:43
  Speaker 1: Highest in 19 years, the 10-year treasury. We don't have
• 6:47
  Speaker 1: an inverted yield curve, which I guess is good.
• 6:49
  Speaker 3: That's good. But highest in 19 years. Hey, what was
• 6:52
  Speaker 3: 19 years ago? Anybody know? What was it? It was 2007.
• 6:57
  Speaker 3: That's correct. Right before... Oh, 2008. Yeah. Gotcha. That's a
• 7:03
  Speaker 3: decent history.
• 7:05
  Speaker 2: Yeah, but you, is that a historical marker from that
• 7:09
  Speaker 2: versus 2008 came.
• 7:12
  Speaker 3: And that was, there was a little bit of cooking
• 7:14
  Speaker 3: of the books.
• 7:15
  Speaker 2: Yeah.
• 7:15
  Speaker 1: I mean, I'm just being sensationalist, but you know, it
• 7:17
  Speaker 1: is eerily like it's, when you have numbers like 19
• 7:22
  Speaker 1: years and that just leads like right to the precipice
• 7:24
  Speaker 1: of another cliff, it is worth mentioning. It doesn't mean
• 7:25
  Speaker 1: that there's a lot of other similarities. I do understand
• 7:28
  Speaker 1: why we hiked. It does come with some very negative
• 7:31
  Speaker 1: side effects. By the way, finding yourself out of a very,
• 7:34
  Speaker 1: very overheated and artificially man-made bull run that we had
• 7:41
  Speaker 1: in our economy during the COVID years is not going
• 7:44
  Speaker 1: to come without some pain. There was never going to
• 7:46
  Speaker 1: be any soft landing. I don't know why we kept
• 7:48
  Speaker 1: saying there might be. It was going to be us
• 7:51
  Speaker 1: skinning our knees across the pavement for what has been
• 7:54
  Speaker 1: almost a half a decade now.
• 7:55
  Speaker 3: Artificial wars don't help. Yeah. There's a lot of stuff. Yeah.
• 8:00
  Speaker 1: Yeah.
• 8:01
  Speaker 3: But here we are. So rates are back up.
• 8:03
  Speaker 2: So rates went up over 7% before the Fed made
• 8:07
  Speaker 2: their decision.
• 8:08
  Speaker 3: Right. Which is customary. Yeah. It's always priced in.
• 8:14
  Speaker 2: And we talk about, we kind of look at where
• 8:17
  Speaker 2: the movement of the market is.
• 8:18
  Speaker 3: Because look, this is this week in DFW real estate.
• 8:20
  Speaker 2: So There's one other thing that did not happen that
• 8:23
  Speaker 2: I'm disappointed in, is that the Clarity Act did not pass.
• 8:28
  Speaker 3: This is the crypto bill. Yeah, and I thought it
• 8:31
  Speaker 3: was going to. It was close. It was close?
• 8:33
  Speaker 2: So I was researching it. At one point, the first
• 8:37
  Speaker 2: thing I saw is they didn't have enough votes, and
• 8:39
  Speaker 2: then Then it came out, there's like, all right, they're,
• 8:42
  Speaker 2: they're teetering on the edge of, of, of having enough votes.
• 8:45
  Speaker 2: And now, now obviously it didn't pass. And so they didn't.
• 8:48
  Speaker 2: And a lot of it has to do with some
• 8:49
  Speaker 2: more regulation around who can, you know, I think this
• 8:52
  Speaker 2: has a lot to do with, you know, obviously the
• 8:54
  Speaker 2: Trump administration supposedly has been making a lot of money
• 8:56
  Speaker 2: off crypto and their own meme coin. Um, but, um,
• 9:01
  Speaker 2: I think Elizabeth Warren, Senator Warren's not for the, wasn't
• 9:05
  Speaker 2: for the clarity act. Um, Senator, is it Tom Scott?
• 9:09
  Speaker 2: He's the one out of- Tim Scott.
• 9:10
  Speaker 3: Tim Scott. He definitely is for it. He's on the
• 9:13
  Speaker 3: banking committee.
• 9:14
  Speaker 2: I think personally, I think that the Clarity Act would,
• 9:19
  Speaker 2: I think anything of this to start introducing crypto helps
• 9:23
  Speaker 2: the middle class. I think that you have another way
• 9:27
  Speaker 2: to start earning yields and returns and another way of
• 9:32
  Speaker 2: maybe some ways that you can take back against all
• 9:37
  Speaker 2: the inflationary items that had happened.
• 9:39
  Speaker 3: Well, agreed. You just hit the nail on the head.
• 9:41
  Speaker 1: Having something that is an alternative to what would be considered,
• 9:44
  Speaker 1: I guess, inflation-influenced currencies like fiat currency. I don't know
• 9:49
  Speaker 1: why you wouldn't want more accessibility to that. Conflicts of interest,
• 9:52
  Speaker 1: because this is what I was going to ask about,
• 9:53
  Speaker 1: is why would you vote against this? Strongly objected to
• 9:56
  Speaker 1: a perceived lack of enforceable restrictions to prevent President Donald
• 9:59
  Speaker 1: Trump and his family from personal crypto profiteering.
• 10:02
  Speaker 3: Oh, did she say that? Yes.
• 10:05
  Speaker 1: She said that she's going to vote against this bill
• 10:07
  Speaker 1: because of one man who's not even going to be
• 10:09
  Speaker 1: in the White House for more than 100 or 450.
• 10:12
  Speaker 3: More days or whatever it is. So that was her.
• 10:14
  Speaker 3: We're just doing personal vendetta stuff. No, yeah. Governing for
• 10:19
  Speaker 3: the greater good. I mean, didn't she run eBay? Did
• 10:23
  Speaker 3: she run eBay? I'm trying to remember her background.
• 10:25
  Speaker 4: Elizabeth Warren?
• 10:26
  Speaker 1: Yeah.
• 10:26
  Speaker 3: I don't think so. I don't think so. I don't
• 10:28
  Speaker 3: know what she's been.
• 10:29
  Speaker 1: She's been a career politician since she was like 19
• 10:31
  Speaker 1: years old, I think. Not that I am a massive
• 10:34
  Speaker 1: Donald Trump fan either. I'm just saying that it's interesting
• 10:37
  Speaker 1: to be so outright about why you're voting against something
• 10:40
  Speaker 1: being just the president, not the people that you govern.
• 10:44
  Speaker 3: Yeah. Early life, education, career, the 70s. She went to
• 10:49
  Speaker 3: law school. Okay. Then she went to Rutgers. Then she
• 10:53
  Speaker 3: was an advisor. And then she was a politician.
• 10:57
  Speaker 2: Yeah, but I was a little disappointed in that. I
• 11:00
  Speaker 2: was hoping that we could start seeing that. I kind
• 11:04
  Speaker 2: of see it like the middle class is dying, obviously.
• 11:07
  Speaker 2: The individual real estate agent is the middle class that
• 11:11
  Speaker 2: is dying, and we're starting to see that happen more
• 11:14
  Speaker 2: and more where agents are struggling. We're seeing more agents
• 11:18
  Speaker 2: on the verge of leaving this industry because you're seeing
• 11:21
  Speaker 2: them going and becoming dual career agents or getting second jobs,
• 11:25
  Speaker 2: trying to hold on long enough. And a lot of
• 11:27
  Speaker 2: times what they do, Brian, you saw this when you
• 11:29
  Speaker 2: were running Livian and, and, you know, you became, your
• 11:33
  Speaker 2: team became the number one real estate team within that
• 11:35
  Speaker 2: Keller Williams ecosystem. And as the market shifted, what, what
• 11:41
  Speaker 2: do people do?
• 11:42
  Speaker 3: What do they blame? When the market starts shifting, who
• 11:47
  Speaker 3: do they blame first? Who do they blame first when
• 11:49
  Speaker 3: the market starts shifting? Like the general public blame? Who
• 11:53
  Speaker 3: do the agents blame?
• 11:55
  Speaker 1: They usually blame the government and the Fed and rates
• 11:59
  Speaker 1: and all these different things.
• 12:00
  Speaker 3: Yeah, they blame the economy, right? The economy, yes. Yeah.
• 12:03
  Speaker 2: And so, you know, they start to blame– they start
• 12:07
  Speaker 2: to place blame on anybody and everybody– but themselves. And
• 12:12
  Speaker 2: so this was, this was, I saw this post that
• 12:15
  Speaker 2: Jeff Glover, you know, good friend and runs Glover U,
• 12:19
  Speaker 2: the number one real estate team in Detroit, Michigan. And
• 12:22
  Speaker 2: he said, look, he put this as a post a
• 12:25
  Speaker 2: couple of days ago. It said market shifting, market of
• 12:27
  Speaker 2: the moment, time to pivot, we're in a shift, market's weak.
• 12:32
  Speaker 3: You know what those are? Those are statements that losers say.
• 12:37
  Speaker 1: Right?
• 12:38
  Speaker 2: Winners don't concern themselves with the market. We make our
• 12:40
  Speaker 2: own market. So it doesn't actually matter what the market does.
• 12:43
  Speaker 2: If you hang with us, you'll never hear me talk
• 12:45
  Speaker 2: about the market. Hang with everyone else, concern yourself with
• 12:48
  Speaker 2: the market, and you'll get what everyone else gets.
• 12:50
  Speaker 1: I mean, that's just great insight from a guy who's
• 12:53
  Speaker 1: been through a few market cycles and has been incredibly
• 12:56
  Speaker 1: resilient and built something pretty special. And it's dead on, right?
• 13:00
  Speaker 1: There's going to be externalities to every market. Like, okay,
• 13:05
  Speaker 1: rates are higher. listings are sitting longer, and the majority
• 13:09
  Speaker 1: of your competition isn't working that hard. So there's an
• 13:12
  Speaker 1: opportunity there.
• 13:13
  Speaker 3: You know what I mean?
• 13:13
  Speaker 1: It's just consistently ask the question, okay, what is the
• 13:16
  Speaker 1: best thing we can do now? What is the most
• 13:18
  Speaker 1: efficient thing we can do now? There's just no, this
• 13:22
  Speaker 1: is a bad time. It's just, this is the time.
• 13:25
  Speaker 1: And what do we do now? What are the actions
• 13:26
  Speaker 1: we take now? For so many agents, it's just, let's
• 13:29
  Speaker 1: go look for something else to do because we feel
• 13:31
  Speaker 1: sad about the way things are. And that's just, I mean,
• 13:33
  Speaker 1: I hate I hate to say it so bluntly, but
• 13:36
  Speaker 1: I'll just say it in the words of Jeff. That
• 13:38
  Speaker 1: is a loser's mentality. You're just not going to hit
• 13:40
  Speaker 1: your goals if you have that mindset.
• 13:42
  Speaker 2: Well, let's look at, let's kind of look at, let's
• 13:45
  Speaker 2: take the economy. Let's take the market for a second
• 13:48
  Speaker 2: and say, what do we know is true, right? So
• 13:51
  Speaker 2: the Fed passed an increase, Fed increase rate, 12 to zero.
• 13:56
  Speaker 2: 16 of the 18 officials expect another rate hike this year.
• 13:59
  Speaker 4: Okay.
• 14:00
  Speaker 3: At this very moment. So we're only going to get
• 14:02
  Speaker 3: one more shot. One or two. October or November. Okay, yeah, two.
• 14:07
  Speaker 1: Yeah.
• 14:07
  Speaker 3: Because they don't do December, do they?
• 14:08
  Speaker 1: Right.
• 14:08
  Speaker 2: So four of them see two more. So there's two
• 14:11
  Speaker 2: more for this year. But 16 of 18 expect at
• 14:15
  Speaker 2: least one more rate height this year. What we do
• 14:17
  Speaker 2: know is that inflation was at 3.4% in August. Oil
• 14:21
  Speaker 2: is over $ 100 a barrel because of the Iran war.
• 14:25
  Speaker 3: Yeah.
• 14:26
  Speaker 2: And that doesn't seem to be slowing down anytime soon.
• 14:28
  Speaker 3: We should stop doing that. We probably should.
• 14:31
  Speaker 1: Yeah.
• 14:31
  Speaker 4: It would help out a lot of things.
• 14:33
  Speaker 2: And so here's what ends up happening is that you
• 14:36
  Speaker 2: hear 99% of agents are getting this wrong is they're
• 14:40
  Speaker 2: going to say that the Fed raised mortgage rates. And
• 14:44
  Speaker 2: sometimes I even say that, like, oh, the Fed raised rates,
• 14:46
  Speaker 2: mortgage rates typically go up. Because even though we know
• 14:49
  Speaker 2: it doesn't correlate, for whatever reason, Fed raising rates correlates
• 14:54
  Speaker 2: to still market shifting.
• 14:55
  Speaker 1: It absolutely does. I don't know why people say that.
• 14:57
  Speaker 1: That's just– it's not an– that's a mean way to
• 15:00
  Speaker 1: say that. It's not an intellectually honest thing to say.
• 15:04
  Speaker 1: The Fed rate absolutely does affect mortgage rates because the
• 15:07
  Speaker 1: Fed overnight funding rate will affect treasuries. It's like this
• 15:12
  Speaker 1: is– Jesse, you can please prove me wrong and find
• 15:14
  Speaker 1: a chart of any time the Fed raising or lower
• 15:17
  Speaker 1: rates has had zero effect on treasuries.
• 15:19
  Speaker 3: I can't. I probably can't find one. It wouldn't exist.
• 15:22
  Speaker 1: Just market efficiency says that if you affect– The overnight
• 15:25
  Speaker 1: funding rate, then you will affect treasuries. So yes, it
• 15:29
  Speaker 1: does affect mortgage rates. Now, it doesn't normally, like Nick
• 15:33
  Speaker 1: said before, it is priced in. So a lot of
• 15:36
  Speaker 1: times the move in treasuries happens before the Fed raises rates,
• 15:40
  Speaker 1: which makes you think what happens in those meetings is
• 15:42
  Speaker 1: not always as discreet as they make it seem.
• 15:45
  Speaker 3: But yeah, it definitely affects rates. So we know that
• 15:48
  Speaker 3: and say, all right, we know where the economy is.
• 15:50
  Speaker 2: We know- where oil is. I mean, we talk about
• 15:54
  Speaker 2: it every day. We know that everything is more expensive.
• 15:58
  Speaker 2: We know that buyer sentiment is going to be not
• 16:03
  Speaker 2: very positive. So how would you adjust your business to
• 16:07
  Speaker 2: make sure that you don't feel the constraints and pain
• 16:12
  Speaker 2: of what the economy is trying to do?
• 16:15
  Speaker 1: I've said this for a while, and I sound like
• 16:17
  Speaker 1: a broken record, but would you pull up the MLS
• 16:19
  Speaker 1: real fast?
• 16:19
  Speaker 3: Let's just look at the hot sheet real fast. Skate
• 16:23
  Speaker 3: to where the puck is.
• 16:24
  Speaker 1: I mean, I sound like a broken record, but I
• 16:27
  Speaker 1: just think that good advice doesn't really change and you
• 16:29
  Speaker 1: got to simplify your business. Like I would be prospecting
• 16:32
  Speaker 1: my butt off right now. And I just don't know
• 16:35
  Speaker 1: why that isn't something as the agent population we're not
• 16:37
  Speaker 1: talking about. It was normal in a balanced market in 2016,
• 16:41
  Speaker 1: call it or whatever, to wake up and call expires
• 16:43
  Speaker 1: for two hours a day. Like our team's done that forever.
• 16:46
  Speaker 1: Now it's like, that's like a foreign thing. Look at
• 16:48
  Speaker 1: the new listings to price decreases. It's 50% more price
• 16:53
  Speaker 1: decreases to new listings, right?
• 16:55
  Speaker 3: Look at expires and cancels.
• 16:56
  Speaker 1: There are Literally, if you add expires and cancels together,
• 17:00
  Speaker 1: that is like half.
• 17:03
  Speaker 3: Of the amount of– sorry, that's 7,000? Mm-hmm.
• 17:06
  Speaker 1: There are– okay, so yeah, so 3,000. So about half
• 17:11
  Speaker 1: of the amount of listings that come on is that
• 17:14
  Speaker 1: same number of expires and cancels. So you can basically–
• 17:17
  Speaker 1: it's kind of not a perfect indicator because the same
• 17:19
  Speaker 1: listings that come on are not the same ones that
• 17:21
  Speaker 1: expire in the same week. But right now, it seems
• 17:24
  Speaker 1: like about half of the listings that come on are
• 17:29
  Speaker 1: not selling, right? Or they're taking a massive price reduction
• 17:33
  Speaker 1: to get there. And they're just taking longer. And they're
• 17:35
  Speaker 1: just taking longer. But a lot of them are canceling
• 17:37
  Speaker 1: or expiring. You should be picking up the phone every
• 17:39
  Speaker 1: day and calling them, right?
• 17:40
  Speaker 3: Like it's just... And do you think.
• 17:43
  Speaker 2: Do you think though, Brian, because I hear agents saying
• 17:48
  Speaker 2: to sellers or potential sellers, it's not a good time
• 17:51
  Speaker 2: to list, right?
• 17:53
  Speaker 3: It's a great time to buy, not a good time
• 17:54
  Speaker 3: to list.
• 17:55
  Speaker 1: And.
• 17:57
  Speaker 3: When I hear that, it just makes me cringe. Why
• 18:00
  Speaker 3: is it not a good time to list? It depends
• 18:03
  Speaker 3: on their situation. 100%.
• 18:05
  Speaker 2: So when we used to run our other show, The
• 18:08
  Speaker 2: Only Real Estate Podcast Worth Listening To, you know what
• 18:10
  Speaker 2: we would always get made fun of about? There's a
• 18:13
  Speaker 2: lot of things, by the way.
• 18:15
  Speaker 3: Pick one. The one thing that.
• 18:16
  Speaker 2: People always talk about, and Tamara at Lawyer's Title said
• 18:20
  Speaker 2: this when we did our group show on her channel
• 18:23
  Speaker 2: back in the day, was that we always said it's
• 18:25
  Speaker 2: a good time to buy ourself.
• 18:27
  Speaker 1: Yeah.
• 18:28
  Speaker 3: Right? It's always a good time to buy or sell
• 18:29
  Speaker 3: because it's just depending on your situation. Yeah.
• 18:32
  Speaker 2: These homeowners, that many homes are coming on the market
• 18:34
  Speaker 2: for a reason. They know what's happening in the marketplace.
• 18:37
  Speaker 1: Yeah.
• 18:38
  Speaker 3: These people aren't blind.
• 18:40
  Speaker 1: In the whole scope of your home ownership journey, why
• 18:43
  Speaker 1: would now be a bad time to list? It's entirely
• 18:45
  Speaker 1: specific to you. And if we're talking about, the only
• 18:47
  Speaker 1: reason the agent would say that is because home values
• 18:51
  Speaker 1: have come down over the last two or three years, right?
• 18:54
  Speaker 1: But if you think about this in any other asset form,
• 18:56
  Speaker 1: like think about a stock, right? Let's just say I
• 18:58
  Speaker 1: bought a stock two years ago and I'm down 10%
• 19:02
  Speaker 1: on it. Might not be the best time financially for
• 19:05
  Speaker 1: me to sell that stock.
• 19:05
  Speaker 3: I get that.
• 19:06
  Speaker 1: What if I bought my stock in 2012? Okay, maybe
• 19:10
  Speaker 1: I'm not going to make as much as if I
• 19:12
  Speaker 1: sold it in 2022, but I'm.
• 19:15
  Speaker 3: Still up a whole bunch. So who's to tell me
• 19:17
  Speaker 3: it's a bad time to sell?
• 19:18
  Speaker 1: Agents should not be advising people on how to perfectly
• 19:21
  Speaker 1: time the market because that's not why people buy or
• 19:23
  Speaker 1: sell homes. The buyers of homes to live in because
• 19:26
  Speaker 1: their lifestyle is such that in this chapter, you need
• 19:28
  Speaker 1: to do this.
• 19:29
  Speaker 2: And we as agents, if we were really good at
• 19:31
  Speaker 2: that advice, we would be timing ourselves all the time
• 19:34
  Speaker 2: and be super, super well.
• 19:37
  Speaker 3: We wouldn't be doing the show anymore.
• 19:39
  Speaker 2: We would be doing the show, but we would say
• 19:41
  Speaker 2: a lot more hardcore stuff in your face. We wouldn't
• 19:44
  Speaker 2: be worrying about the repercussions of what we would want
• 19:49
  Speaker 2: to say. But if you really understand it, it's like
• 19:53
  Speaker 2: Coach Bird always talked about this.
• 19:54
  Speaker 3: Money changes hands when problems are solved. You know what?
• 19:57
  Speaker 2: I'm venturing to say that right now there's probably a
• 20:00
  Speaker 2: lot more problems out.
• 20:02
  Speaker 3: There than there were when money was free-flowing.
• 20:06
  Speaker 1: Yeah.
• 20:06
  Speaker 2: Yeah.
• 20:07
  Speaker 3: Right?
• 20:08
  Speaker 2: There's a lot more people that are in financial constraint
• 20:11
  Speaker 2: right now, not because maybe they're not making less, but
• 20:15
  Speaker 2: they're pulling home less because the overall cost of everything.
• 20:19
  Speaker 3: Else has gone up. Yeah, their dollar is not going
• 20:21
  Speaker 3: nearly as far.
• 20:21
  Speaker 2: So if they were already kind of walking a tightrope
• 20:24
  Speaker 2: when things were good, well, now they've fallen off that rope.
• 20:28
  Speaker 2: And so it's not us to judge where they're at
• 20:33
  Speaker 2: It's our job to solve that problem and for us
• 20:36
  Speaker 2: to sell their house, for us to get them out
• 20:39
  Speaker 2: of that bad situation, for us to get them into
• 20:41
  Speaker 2: the next chapter so that when that time comes, they're
• 20:44
  Speaker 2: ready for a rebound, they do rebound, they recover, whatever
• 20:47
  Speaker 2: that may be, they come back to us.
• 20:48
  Speaker 1: You know, and what I've learned over this past year,
• 20:52
  Speaker 1: maybe 18 months or so, another great opportunity in your business,
• 20:56
  Speaker 1: if you're not being.
• 21:00
  Speaker 1: All over your database right now and having those conversations,
• 21:03
  Speaker 1: you're not generating business. Because here's the thing, and I've
• 21:07
  Speaker 1: learned this from a lot of the agents that I
• 21:08
  Speaker 1: coach that are raking with their sphere right now. It's
• 21:11
  Speaker 1: because a lot of the listings they're taking, they're in
• 21:14
  Speaker 1: an uncomfortable situation. And they don't want to talk publicly
• 21:19
  Speaker 1: about it. They don't want to go and hire some
• 21:20
  Speaker 1: random realtor they'd never met before. But they will talk
• 21:23
  Speaker 1: to someone they know, like, and trust because they know
• 21:26
  Speaker 1: that they're in a situation where they do need to
• 21:27
  Speaker 1: do something, but it is an uncomfortable and an insecure
• 21:32
  Speaker 1: situation for them. And so the agents that are being
• 21:34
  Speaker 1: proactive with their sphere right now, they're taking a lot
• 21:37
  Speaker 1: of referrals from people that they actually can't help, that
• 21:40
  Speaker 1: need their guidance and help right now. And agents that
• 21:43
  Speaker 1: just aren't picking up the phone because they just don't
• 21:45
  Speaker 1: think it's a good market or a good time to sell,
• 21:47
  Speaker 1: I'm just telling you, between that and prospecting, you're just
• 21:49
  Speaker 1: missing out on a career opportunity.
• 21:52
  Speaker 2: Well, what I'm seeing as well, and by the way,
• 21:56
  Speaker 2: there's two things. One, I was talking to someone who's
• 21:59
  Speaker 2: been doing this for 35 years. And you know what
• 22:03
  Speaker 2: he said? He's like, every time I stay focused on listings,
• 22:07
  Speaker 2: no matter what economy we're in, listings have never failed me.
• 22:11
  Speaker 1: Yeah. Right?
• 22:11
  Speaker 2: So Gary Keller's You know, listing the last is true
• 22:15
  Speaker 2: to that statement. The other thing is, Jesse, throw this
• 22:18
  Speaker 2: in at.
• 22:19
  Speaker 3: The beginning because we didn't thank our sponsors for this show.
• 22:21
  Speaker 3: We did not.
• 22:22
  Speaker 1: Right?
• 22:22
  Speaker 2: And so if you're looking for a great home warranty agency,
• 22:25
  Speaker 2: you've got a buyer that's under contract. You know, home
• 22:28
  Speaker 2: warranty companies already don't have a great rep. And so
• 22:31
  Speaker 2: you need to be talking to Theron Smith over at
• 22:33
  Speaker 2: Armadillo Home Warranty. All you need to do is go
• 22:34
  Speaker 2: to armadillo.one and or connect with Theron Smith on Facebook
• 22:40
  Speaker 2: and tell him that the crew from this podcast sent
• 22:43
  Speaker 2: you over there. They'll take great care of you, take
• 22:45
  Speaker 2: great care of your customers and clients, as well as
• 22:47
  Speaker 2: Homeward Property Management. Because homes aren't selling, what I'm seeing
• 22:51
  Speaker 2: is that more and more of these homeowners are opting
• 22:54
  Speaker 2: to lease their property out. Now, I've got a little
• 22:57
  Speaker 2: hot sports opinion on that. I think that's a bad
• 22:58
  Speaker 2: idea as an agent. I think that they should they
• 23:01
  Speaker 2: should be advising their sellers to just take the pain
• 23:05
  Speaker 2: now and sell their house. But that's not good business
• 23:08
  Speaker 2: for Homeward.
• 23:08
  Speaker 3: So HomewardDFW.com.
• 23:10
  Speaker 2: Make sure to go and talk with Dana Wynn because
• 23:13
  Speaker 2: more than likely, you're not going to listen to my
• 23:14
  Speaker 2: other advice and you are going to advise them to
• 23:16
  Speaker 2: lease it out and they need to be professionally managed.
• 23:19
  Speaker 2: So get with Dana Wynn, HomewardDFW.com. She'll take amazing care
• 23:22
  Speaker 2: of your clients. Just like she's taking care of me.
• 23:24
  Speaker 2: I have a house somewhere up north, Tyler Point, I'll
• 23:28
  Speaker 2: just name it. And something happened with the electrical.
• 23:31
  Speaker 3: The electrical's fried so bad. She called me up. It
• 23:34
  Speaker 3: was a squirt.
• 23:35
  Speaker 2: And I said, Dana, she called me either at 745
• 23:38
  Speaker 2: or 8 a.m. And I said, Dana, if you're calling
• 23:40
  Speaker 2: me this early, it's not good news.
• 23:41
  Speaker 3: She's like, it's not. And, uh, I got to do
• 23:45
  Speaker 3: some massive electrical work, $ 5, 800 worth. Oh man.
• 23:47
  Speaker 2: And I was like, I didn't have a choice. I
• 23:49
  Speaker 2: got a renter in there. They got no electricity where
• 23:51
  Speaker 2: they're out. And so I said, just go ahead and
• 23:53
  Speaker 2: do it. But she had someone out there immediately. Um,
• 23:57
  Speaker 2: the electrician was like, this house should have burned down.
• 24:00
  Speaker 3: Oh my God. So I was like, well, get this,
• 24:01
  Speaker 3: get it fixed. So Homer, dfw.com.
• 24:04
  Speaker 2: And, uh, as well as they contract out to Procare,
• 24:07
  Speaker 2: Procare home solutions, they do the make readies, the remodels,
• 24:10
  Speaker 2: you name it. They can do it, um, from ground
• 24:11
  Speaker 2: up construction, uh, To roofing, HVAC, electrical. So ProCareDFW.com.
• 24:16
  Speaker 1: One time Dana came over to our monthly poker night
• 24:20
  Speaker 1: and she told me that someone flushed a shoe down
• 24:22
  Speaker 1: one of my toilets and that we needed to get
• 24:25
  Speaker 1: an emergency plumber out there.
• 24:27
  Speaker 3: And then she took all my money in poker. She
• 24:30
  Speaker 3: took your money and your repair money. It was a
• 24:31
  Speaker 3: tough night.
• 24:32
  Speaker 1: Yeah.
• 24:33
  Speaker 3: I was not having a fun night that night.
• 24:35
  Speaker 1: Yeah.
• 24:35
  Speaker 3: But what I'm finding is to go back to.
• 24:40
  Speaker 2: Actually, just to piggyback off agents advising their clients to
• 24:43
  Speaker 2: lease out their property is that most agents, like you said,
• 24:48
  Speaker 2: they don't want to have the difficult conversations. And if
• 24:52
  Speaker 2: they would just stay in a– if they would wake
• 24:55
  Speaker 2: up every day with the mindset of what am I
• 24:58
  Speaker 2: going to do to propel my business forward in a
• 25:01
  Speaker 2: profitable way that's in my control? And the only way
• 25:05
  Speaker 2: that we can– the only way that is in our
• 25:07
  Speaker 2: control is the actions that we take to lead generate, right?
• 25:10
  Speaker 2: That could be, unfortunately, too often they're making Facebook posts.
• 25:13
  Speaker 2: They're trying to do TikTok stuff and everything else like that.
• 25:16
  Speaker 2: I'm not a huge fan of it. It is a
• 25:18
  Speaker 2: necessary part of this business now, I will admit. But
• 25:22
  Speaker 2: we've gotten away from the calls to contact ratio. And
• 25:28
  Speaker 2: I was on with Bob Stewart. Bob Stewart runs Brivity
• 25:33
  Speaker 2: and part of the Place team. Brilliant individual. And he
• 25:37
  Speaker 2: was going through our database. He's like, guys, he's like,
• 25:40
  Speaker 2: do you understand? First off, you understand that just in
• 25:42
  Speaker 2: your database alone, if I only look at people with addresses,
• 25:45
  Speaker 2: so they own homes, there is, if we run our
• 25:48
  Speaker 2: formula right now, in the next 12 months, there is 11,000
• 25:51
  Speaker 2: 756 transactions.
• 25:53
  Speaker 3: That's just sell side transactions.
• 25:56
  Speaker 2: If we run our formula, he's like, we've got so
• 25:58
  Speaker 2: much data that very rarely is it, it might be
• 26:01
  Speaker 2: off up or down a couple percentage points, but even
• 26:03
  Speaker 2: if they're off, that's, let's say they were off by 50%,
• 26:05
  Speaker 2: that is still 5,000 transactions in there.
• 26:08
  Speaker 3: And so, you know, what, what do agents say? They
• 26:10
  Speaker 3: need more leads. They need more leads. They need more leads.
• 26:12
  Speaker 2: No, they don't. You've got the leads. And then he
• 26:16
  Speaker 2: goes through and he's like, do you understand.
• 26:19
  Speaker 3: How to get to a closing? I was like, well,
• 26:22
  Speaker 3: educate me, Bob.
• 26:23
  Speaker 2: And the funnel of this is he's like, you look
• 26:26
  Speaker 2: at your contacts to appointment set, to appointments held, to
• 26:29
  Speaker 2: sign clients, to pending contracts, to closing. And what the
• 26:32
  Speaker 2: math is saying is that 87% of pending closings, 87%
• 26:37
  Speaker 2: of your pending closings will produce one actual closing. So
• 26:41
  Speaker 2: there's some fallout and everything else like that. And what
• 26:43
  Speaker 2: they've found is that you know, when they take the
• 26:46
  Speaker 2: formula that they've seen is that we need to set,
• 26:50
  Speaker 2: we need two and a half appointments set for every
• 26:53
  Speaker 2: one closing.
• 26:54
  Speaker 1: Right.
• 26:55
  Speaker 2: And so out of that, you need to go and set,
• 27:00
  Speaker 2: you need to go and hold 1.5 appointments held to
• 27:06
  Speaker 2: get to that, to basically to get to that two
• 27:08
  Speaker 2: and a half appointments then lead to one and a
• 27:11
  Speaker 2: half appointments held. And then you have a 75% appointments
• 27:18
  Speaker 2: to sign ratio. So if you want to sell one.
• 27:20
  Speaker 3: House a week, you got to set two and a
• 27:22
  Speaker 3: half appointments to hold one and a half. Yes.
• 27:24
  Speaker 2: And so basically what we have found is that for
• 27:27
  Speaker 2: most people at a two to 3% contact.
• 27:29
  Speaker 3: Ratio, We need to be.
• 27:34
  Speaker 2: At an 89 contacts. At 3% contact ratio, it takes
• 27:40
  Speaker 2: about 89 total contacts to equal one closing.
• 27:44
  Speaker 1: Yeah.
• 27:45
  Speaker 3: Right? 89 contacts.
• 27:46
  Speaker 1: 89.
• 27:46
  Speaker 3: These are conversations. Yep. 89 conversations to get to one closing.
• 27:51
  Speaker 3: That's about right.
• 27:52
  Speaker 2: You drop down to 2% and that goes into, that
• 27:55
  Speaker 2: basically almost, not doubles, but gets darkened.
• 27:58
  Speaker 3: 150. 150 something conversations to get to one closing. Mm-hmm.
• 28:02
  Speaker 2: And so what we have found with knowing that formula
• 28:06
  Speaker 2: is that you go through and it's like, you know, Brian,
• 28:09
  Speaker 2: if you went on 635 and 75 and held up
• 28:11
  Speaker 2: a sign and said, I'm trying to earn your business
• 28:13
  Speaker 2: to help you buy or sell. If you did that
• 28:15
  Speaker 2: every single day, 365 days a year, you will more
• 28:18
  Speaker 2: than likely get one, two or three clients.
• 28:21
  Speaker 3: But is that the best use of your time?
• 28:23
  Speaker 1: No.
• 28:24
  Speaker 2: And so what we're seeing is some agents that are
• 28:25
  Speaker 2: actually doing the activity aren't necessarily going through the right
• 28:29
  Speaker 2: call list.
• 28:30
  Speaker 1: Yeah.
• 28:31
  Speaker 3: That's fair. To get to the conversation.
• 28:33
  Speaker 1: Sure.
• 28:33
  Speaker 2: So it's like, all right, once you know that, then
• 28:36
  Speaker 2: it's really dial in, all right, who am I talking to?
• 28:38
  Speaker 1: Yeah.
• 28:38
  Speaker 2: Maybe a higher intention. Maybe it's a for sale owner.
• 28:41
  Speaker 2: Maybe it's my sphere that will actually pick up the phone.
• 28:43
  Speaker 2: So you actually have a higher contact ratio. So I
• 28:45
  Speaker 2: can say, hey, Brian, do you happen to know anybody buying,
• 28:47
  Speaker 2: thinking about buying, selling or investing.
• 28:48
  Speaker 3: In real estate? Well, I guarantee if you did that
• 28:50
  Speaker 3: 80 times, you'd get several clients.
• 28:51
  Speaker 1: Yes.
• 28:52
  Speaker 2: But we don't do that. And you know what we
• 28:55
  Speaker 2: don't else want to do? Because I know this was
• 28:56
  Speaker 2: a a big pet peeve of yours, they don't want
• 28:59
  Speaker 2: to track it in the system.
• 29:01
  Speaker 3: That drives me just absolutely crazy.
• 29:02
  Speaker 1: It's funny you say that because, you know, when you
• 29:04
  Speaker 1: talk about, you know, contacts to appointments to design to held,
• 29:07
  Speaker 1: like it's the exact same formula we use in our
• 29:09
  Speaker 1: coaching programs. It's like, it's just funny because you could
• 29:12
  Speaker 1: talk to people that have performed in this industry at
• 29:14
  Speaker 1: a high level all across the world. And if they
• 29:17
  Speaker 1: sat down and talked about their philosophies, they would be
• 29:19
  Speaker 1: almost mirror images of each other. Know your numbers, understand
• 29:23
  Speaker 1: your conveyor belt, and then just go do the work. Like,
• 29:25
  Speaker 1: Everybody's looking for this other secret way to do it,
• 29:28
  Speaker 1: and there just isn't, right? And we've gotten so far
• 29:31
  Speaker 1: away from that.
• 29:32
  Speaker 3: It is true.
• 29:35
  Speaker 1: Outside of our coaching, high-level teams like Nick's team, we
• 29:41
  Speaker 1: are not talking nearly enough about activities in this industry
• 29:44
  Speaker 1: the way that we used to. We're so focused on
• 29:46
  Speaker 1: the market and all these different things. And then what's
• 29:49
  Speaker 1: the next social media trend we need to be doing
• 29:51
  Speaker 1: and stuff, which is fine. I'm not saying don't do
• 29:53
  Speaker 1: that stuff. I'm just saying it is a business.
• 29:55
  Speaker 3: It's a machine.
• 29:56
  Speaker 1: Know your numbers or you're not going to succeed. It's
• 29:59
  Speaker 1: just that simple. The business is out there right now.
• 30:03
  Speaker 2: You know what I'm seeing right now that is actually
• 30:05
  Speaker 2: really cool to help agents win? And the ones that
• 30:09
  Speaker 2: are really.
• 30:10
  Speaker 3: By the way, Jesse, we're going to be way off
• 30:12
  Speaker 3: of our itinerary today.
• 30:15
  Speaker 2: So you can pull this down. Whatever you gave us, Jesse,
• 30:20
  Speaker 2: for focus has made me focus on something else. But
• 30:24
  Speaker 2: what I'm... We just hosted with Danny B last week
• 30:30
  Speaker 2: and Raven an AI event. And more like Brian and
• 30:33
  Speaker 2: Raven did it, a little bit of Danny. But the
• 30:37
  Speaker 2: agents that were coming out were wanting to learn all
• 30:39
  Speaker 2: about AI and actually how to build it and how
• 30:41
  Speaker 2: to use it, et cetera.
• 30:43
  Speaker 3: And on the tools that I'm seeing, if agents.
• 30:47
  Speaker 2: Actually use their systems correctly, Is that this will improve them.
• 30:54
  Speaker 2: This will help them become an AI-enhanced super agent. And
• 31:01
  Speaker 2: the technology and CRMs are already incorporating this in there.
• 31:04
  Speaker 2: And I'll give you an example, Brian. Number one, for Homeward,
• 31:09
  Speaker 2: you have built a content creation machine that all it
• 31:13
  Speaker 2: does is it goes out there, finds the best keywords,
• 31:16
  Speaker 2: helps Homeward rank people. for local property management and, um,
• 31:23
  Speaker 2: and helps us bring in leads or opportunities, um, that are,
• 31:28
  Speaker 2: are much higher down the funnel than us just cold
• 31:32
  Speaker 2: calling agents.
• 31:32
  Speaker 1: Sure. Right.
• 31:33
  Speaker 2: Yeah.
• 31:34
  Speaker 3: Which is great. It's pretty cool.
• 31:35
  Speaker 2: Now, what happens be if, um, We got those opportunities,
• 31:40
  Speaker 2: but we didn't practice our scripting.
• 31:43
  Speaker 3: Yeah. Where do you think our conversion rate would be?
• 31:45
  Speaker 3: Very low. That's the part in the process where you
• 31:47
  Speaker 3: would have the bottleneck, where it would die off.
• 31:49
  Speaker 2: So what I am seeing where agents are failing today
• 31:53
  Speaker 2: or hurting themselves, I won't even say failing, where they're
• 31:55
  Speaker 2: hurting themselves, is that they already actually have the majority
• 31:59
  Speaker 2: of these tools. They're not using them. What they're doing
• 32:02
  Speaker 2: right now is that the ones that are consistently– putting
• 32:05
  Speaker 2: themselves out there. They're using their phone, which is fine.
• 32:08
  Speaker 2: That's a great tool, but it's not designed to be
• 32:11
  Speaker 2: a great business tool. Your phone right now is not
• 32:15
  Speaker 2: recording your calls unless you manually turn it on. Your phone,
• 32:19
  Speaker 2: while you're recording those calls, if you're doing it from
• 32:20
  Speaker 2: your phone, is not automatically saving that to a CRM
• 32:23
  Speaker 2: system where you can.
• 32:24
  Speaker 3: Read a transcript.
• 32:26
  Speaker 2: Your phone, if you were recording those calls, and let's
• 32:28
  Speaker 2: say that you then went and manually transcribed them, they're
• 32:32
  Speaker 2: not uploading that into... an AI call coaching system to
• 32:38
  Speaker 2: grade you on what you can improve upon.
• 32:40
  Speaker 1: Exactly.
• 32:41
  Speaker 2: So that you can know where you're missing the mark.
• 32:45
  Speaker 2: And I will tell you that I did a call
• 32:47
  Speaker 2: yesterday for Homeward, because Brian and I are partners at Homeward,
• 32:50
  Speaker 2: in case you didn't know, homewarddfw.com. And I walked a
• 32:55
  Speaker 2: gentleman through the funneling process of how Homeward works and
• 32:59
  Speaker 2: the complete care process. And there were still some things
• 33:01
  Speaker 2: that I missed.
• 33:02
  Speaker 1: Yeah. Right?
• 33:03
  Speaker 3: The call was recorded. We had the transcript.
• 33:05
  Speaker 2: The only thing that we're missing at Homeward right now
• 33:07
  Speaker 2: is the call coaching recording, which we have here at
• 33:10
  Speaker 2: the Good Home Team. And I'll tell you, I did
• 33:12
  Speaker 2: a call yesterday for the Good Home Team, and I
• 33:14
  Speaker 2: scored a 6 out of 10.
• 33:16
  Speaker 3: Really? For my call.
• 33:18
  Speaker 1: Really?
• 33:19
  Speaker 3: And I think I'm pretty good. Yeah. It's cool how
• 33:22
  Speaker 3: it gives you the feedback, though, and your opportunities for growth.
• 33:24
  Speaker 3: That's amazing.
• 33:25
  Speaker 2: Where my misses were was that I did not build
• 33:27
  Speaker 2: enough empathy and rapport building.
• 33:31
  Speaker 3: I can see that.
• 33:32
  Speaker 2: And I went straight into just the numbers. Right? And
• 33:38
  Speaker 2: didn't leave a good call to action.
• 33:41
  Speaker 3: Okay. And so, by the way, I did refer that
• 33:44
  Speaker 3: client to Homeward Property Management.
• 33:46
  Speaker 2: Nice. Because it's actually not a good time for him
• 33:48
  Speaker 2: to sell based on his- His personal situation.
• 33:51
  Speaker 3: Yeah, based on his personal situation. Right.
• 33:54
  Speaker 2: Agents aren't using the tools that are available to them
• 33:56
  Speaker 2: to improve. And so I did a podcast earlier today
• 33:59
  Speaker 2: called the McKinney Pod. It's a group out of McKinney
• 34:02
  Speaker 2: that is highlighting McKinney businesses, what's going on in McKinney,
• 34:06
  Speaker 2: the restaurants, the entertainment, et cetera. And that is something
• 34:10
  Speaker 2: that we talked about on the show is that we,
• 34:13
  Speaker 2: most people, especially in this business owners and most people
• 34:17
  Speaker 2: in the real estate industry are no longer trying to
• 34:19
  Speaker 2: better themselves and to understand how to connect how to
• 34:25
  Speaker 2: even me struggle with empathizing with what's going on, and
• 34:29
  Speaker 2: they're not making that connection to the client or potential client,
• 34:34
  Speaker 2: which is hurting that agent's business.
• 34:36
  Speaker 3: Yeah, agreed 100%.
• 34:37
  Speaker 1: I mean, it starts with just the raw amount of
• 34:40
  Speaker 1: activity that agents need to be doing, right? And I
• 34:43
  Speaker 1: think that you just hit the nail on the head. Again,
• 34:47
  Speaker 1: I feel like I sound like a broken record, but
• 34:49
  Speaker 1: that was industry norm for a very long time. As
• 34:51
  Speaker 1: you do the activity, you refine it, you get better
• 34:53
  Speaker 1: at it, you get coached on it, you learn how
• 34:55
  Speaker 1: to convert at a higher level, you learn where your
• 34:57
  Speaker 1: gaps are. Like this is what we learned growing up
• 35:00
  Speaker 1: was scripts and inflections and problem solving and asking open-ended
• 35:05
  Speaker 1: questions and taking the conversation a layer deeper. Like there
• 35:08
  Speaker 1: was a whole coaching series we used to take called
• 35:11
  Speaker 1: the language of sales. I would take like every year.
• 35:13
  Speaker 1: Like we just don't talk about those things nearly as
• 35:16
  Speaker 1: much anymore. We talk about like how to get more
• 35:18
  Speaker 1: followers and stuff, which I don't think there's anything wrong
• 35:20
  Speaker 1: with that. But at the end of the day, you
• 35:21
  Speaker 1: still have to talk to prospects.
• 35:22
  Speaker 2: Well, and to get more followers, there's only a finite
• 35:26
  Speaker 2: number of viewers, right? So there's only a certain number
• 35:30
  Speaker 2: of people when I've been coaching agents, especially the ones
• 35:33
  Speaker 2: that wanted to build their social media, they wanted to
• 35:36
  Speaker 2: build business off social media. The problem that I see
• 35:39
  Speaker 2: with that is that you and I, Brian, have a
• 35:42
  Speaker 2: better chance of going and running ads and running organic
• 35:46
  Speaker 2: traffic and then building it through our sphere.
• 35:49
  Speaker 3: So three ways of attracting business in.
• 35:52
  Speaker 2: And then learning how to use our inflections, our calling,
• 35:56
  Speaker 2: our connecting, our rapport building, how to show our value
• 35:59
  Speaker 2: over the phone to then set the appointment versus the
• 36:04
  Speaker 2: doing well on social media aspect of it. There's only
• 36:07
  Speaker 2: a certain number of people that will do really well
• 36:10
  Speaker 2: at that. Does that make sense? I agree 100%. Not
• 36:13
  Speaker 2: everyone's going to be a social media influencer.
• 36:16
  Speaker 1: It's less than 1% that are really going to truly
• 36:18
  Speaker 1: generate a lot of business off social media consistently.
• 36:21
  Speaker 3: It's less than 1%. That's like everything. It's like everything, right? Yeah, absolutely.
• 36:26
  Speaker 1: For the amount of, I mean, what, there are 50,000
• 36:28
  Speaker 1: realtors in North Texas or something like that. How many
• 36:31
  Speaker 1: of them do you think are truly generating career-making business
• 36:35
  Speaker 1: off social media? I would probably say less than 200.
• 36:37
  Speaker 1: So that's less than 1%. 1% would be 500. There
• 36:41
  Speaker 1: are not 500 agents in North Texas that are selling
• 36:44
  Speaker 1: more than 20 homes a year solely from social media.
• 36:48
  Speaker 2: And there's only a few that I can think of
• 36:49
  Speaker 2: that actually are legitimately selling it from social media, not
• 36:53
  Speaker 2: using paid advertising.
• 36:55
  Speaker 1: Right.
• 36:55
  Speaker 3: Yeah, they exist. It's less than 1%. Yeah.
• 36:59
  Speaker 1: But those are the ones that we use as the model,
• 37:02
  Speaker 1: and then everybody wants to go do it. Or it's like,
• 37:04
  Speaker 1: I guarantee you there are a lot more agents doing
• 37:06
  Speaker 1: a lot more from their sphere and from prospecting.
• 37:08
  Speaker 3: You just don't see them online. Simple as that.
• 37:13
  Speaker 2: So given where the sentiment's going, right now, if we
• 37:17
  Speaker 2: look at the NAR report that came out that was
• 37:23
  Speaker 2: released in September, it was 13% of real estate agents
• 37:31
  Speaker 2: only believe that the market's going to get better. The
• 37:34
  Speaker 2: remaining is going to go down or.
• 37:36
  Speaker 3: Stay the same.
• 37:38
  Speaker 2: So obviously we say 87% of the real estate industry,
• 37:41
  Speaker 2: which I'm.
• 37:42
  Speaker 3: Questioning the 13% that think it's going to get better
• 37:45
  Speaker 3: right now.
• 37:45
  Speaker 2: But 87% of the National Association of Realtors that did
• 37:49
  Speaker 2: the survey have a more pessimistic view of where our
• 37:55
  Speaker 2: real estate market is headed.
• 37:56
  Speaker 3: That's interesting.
• 37:57
  Speaker 1: I would be interested in how that question was phrased.
• 38:00
  Speaker 1: Just because like what does worse look like? Does it
• 38:02
  Speaker 1: mean that values decline more, rates go up more, inventory
• 38:05
  Speaker 1: climbs more, like, you know. Cause that would still be,
• 38:08
  Speaker 1: you know, rates have gone up, but I still think
• 38:12
  Speaker 1: it's a great time as a buyer to negotiate a deal.
• 38:14
  Speaker 1: Like if I, I bought a home, you know, a
• 38:17
  Speaker 1: year and a half ago, I'm certainly not saying I
• 38:19
  Speaker 1: wish I waited, but I'm just saying like, if I
• 38:21
  Speaker 1: was in the market for home right now, I would
• 38:23
  Speaker 1: not feel like I'm in a bad position. I'd feel
• 38:26
  Speaker 1: like I could negotiate pretty darn well. I do just
• 38:29
  Speaker 1: from the agents I coach and some of the things
• 38:31
  Speaker 1: that they're having to do to get their listing sold.
• 38:33
  Speaker 1: I think you'd be, pretty wise to be a buyer
• 38:35
  Speaker 1: in this market right now, even with rates the way
• 38:38
  Speaker 1: that they are.
• 38:39
  Speaker 2: And the survey was the Realtor Confident Index released on
• 38:43
  Speaker 2: September 10th, is that only 13% of realtors expect buyer
• 38:49
  Speaker 2: traffic to increase in the next three months.
• 38:51
  Speaker 3: A year ago, it was 19%. Okay.
• 38:52
  Speaker 1: Right?
• 38:52
  Speaker 3: 17% expect more sellers, which.
• 39:00
  Speaker 2: If we look at inventories down, I also think we're
• 39:03
  Speaker 2: a little bit in that seasonality downspin. If you look
• 39:07
  Speaker 2: at where inventory levels are, I mean, in McKinney, there's 4.4
• 39:09
  Speaker 2: months of inventory.
• 39:11
  Speaker 3: We actually are.
• 39:11
  Speaker 2: Headed more into that traditional buyer's market, per se. But
• 39:17
  Speaker 2: 17% expect more sellers coming on the market. Home selling
• 39:22
  Speaker 2: above list price is 16%, which is down from 20%
• 39:25
  Speaker 2: from last year. So, 16% of the realtors that were
• 39:29
  Speaker 2: surveyed expected homes to sell above list price.
• 39:34
  Speaker 3: They phrased that question wrong? I mean... What are these 16%?
• 39:37
  Speaker 3: I mean, I think that... What's in the MLS right now?
• 39:41
  Speaker 3: What's the average list of sales? It should say... I
• 39:44
  Speaker 3: believe it's 95%. Okay.
• 39:47
  Speaker 1: Uh.
• 39:48
  Speaker 3: Percentage of original. Yeah. It's 96%. Okay.
• 39:52
  Speaker 1: So, but it's the lowest it's been since 2020, March
• 39:55
  Speaker 1: of 2023.
• 39:56
  Speaker 3: Yeah. Interesting. Yeah.
• 40:00
  Speaker 2: So, I mean, if we look at, again, if we
• 40:02
  Speaker 2: look at, if we try to take what's happening historically,
• 40:06
  Speaker 2: we say that, I mean, sentiment's not great.
• 40:10
  Speaker 3: But in my opinion, it's how we as agents tell
• 40:12
  Speaker 3: the story.
• 40:13
  Speaker 2: Because we've said it on our other show that when
• 40:17
  Speaker 2: the home buying sentiment report will come out, I'm actually
• 40:19
  Speaker 2: not wanting to buy a house when they're positive.
• 40:21
  Speaker 1: Nope.
• 40:22
  Speaker 3: When the home buying sentiment report is negative, that's the
• 40:24
  Speaker 3: time to buy the house.
• 40:25
  Speaker 4: 100%.
• 40:26
  Speaker 1: The people that all paid $ 100, 000 over asking price and
• 40:28
  Speaker 1: guaranteed the appraisal during COVID aren't able to sell their
• 40:33
  Speaker 1: home right now if they needed to and stay above water.
• 40:36
  Speaker 1: And people that are buying homes right now, rates aside,
• 40:40
  Speaker 1: that means buy within your budget, even at current rates.
• 40:42
  Speaker 1: Do not Do not date the rate. It's not a
• 40:45
  Speaker 1: real thing. People should never have said that. Buy with
• 40:48
  Speaker 1: the current rate and expect to have that rate for
• 40:50
  Speaker 1: 30 years. And then anything else is a blessing, right?
• 40:52
  Speaker 1: So buy within your budget right now. But asset prices
• 40:55
  Speaker 1: have come down, so your budget should go a little
• 40:56
  Speaker 1: bit further. And I think you're getting a deal on
• 40:59
  Speaker 1: a home right now.
• 40:59
  Speaker 2: Jesse, go to month supply. Let's see the inventory levels.
• 41:03
  Speaker 2: So inventory levels across the board are down. Entire MLS
• 41:07
  Speaker 2: is down. When we look at just single, is this
• 41:09
  Speaker 2: just single family?
• 41:10
  Speaker 3: No, this is all property types. All property types, residential,
• 41:13
  Speaker 3: all property types.
• 41:15
  Speaker 2: If we look at just single-family pre-owned, entire MLS, we
• 41:20
  Speaker 2: were down 9% off of inventory.
• 41:24
  Speaker 3: But again, that's seasonality. Yeah.
• 41:28
  Speaker 2: You see a natural drop-off starting in August to September.
• 41:33
  Speaker 2: You're going to see– you typically see a little bit
• 41:35
  Speaker 2: of a rebound October, November, December.
• 41:37
  Speaker 1: Mm-hmm.
• 41:37
  Speaker 2: See a little bit of a January, February fall off,
• 41:39
  Speaker 2: and then March, April.
• 41:39
  Speaker 3: May, you're off to the races.
• 41:41
  Speaker 2: And so we run into the seasonality knowing that is
• 41:45
  Speaker 2: that now is the time that we're building our 2027 pipeline.
• 41:50
  Speaker 2: You can still finish out strong. I talked to a
• 41:52
  Speaker 2: home buyer this morning. He's owned several homes in the past.
• 41:55
  Speaker 2: He's looking for new construction. New construction, we've been touting this. Like, look,
• 42:01
  Speaker 2: New construction, the builders are offering 4% rates. Is it
• 42:04
  Speaker 2: baked in?
• 42:04
  Speaker 3: Sure. Who gives a shit? At the end of the day,
• 42:07
  Speaker 3: you're getting a 4% rate. Are you paying a little
• 42:09
  Speaker 3: bit more? Probably. But all that matters is that homebuyer's payment. Yeah, 100%.
• 42:15
  Speaker 1: Like I said, there's deals out there right now. If
• 42:18
  Speaker 1: I could choose any time to be a buyer over
• 42:20
  Speaker 1: the last decade or so, it would be over the
• 42:22
  Speaker 1: last 18 months.
• 42:23
  Speaker 2: What did you say yesterday on one of our calls, B,
• 42:25
  Speaker 2: about the multifamily market?
• 42:27
  Speaker 3: What is the report saying? It's not good. It's not good.
• 42:32
  Speaker 3: But what did it say? It said the DFW is
• 42:35
  Speaker 3: on sale. DFW? I was trying to think of the beverage.
• 42:38
  Speaker 3: The DFW is on sale. DFW is on sale.
• 42:40
  Speaker 1: And by the way, another thing that we've been talking
• 42:42
  Speaker 1: about on one of our other shows for a long
• 42:43
  Speaker 1: time is the dip in multifamily.
• 42:46
  Speaker 3: It's much worse than I thought it was going to be. Much,
• 42:49
  Speaker 3: much worse.
• 42:50
  Speaker 1: Asset prices in the multifamily space are down so much
• 42:55
  Speaker 1: more than I thought they were going to be.
• 42:57
  Speaker 3: I was thinking like 20%, 25%. Peak to trough.
• 43:01
  Speaker 1: It's way worse, dude.
• 43:03
  Speaker 3: It's way worse.
• 43:05
  Speaker 4: I have some clients wide ranging through tour studios. And
• 43:10
  Speaker 4: so my clients, they just closed on a multifamily asset
• 43:13
  Speaker 4: for 11 million under what it sold for last time.
• 43:16
  Speaker 1: Wow. Yes.
• 43:17
  Speaker 4: Yeah.
• 43:18
  Speaker 3: I believe it.
• 43:18
  Speaker 1: I mean, our email inboxes every day are just filled
• 43:20
  Speaker 1: with like thousand units at loan value and loan value
• 43:24
  Speaker 1: is still high. Like it's, it's, it's, And very interesting
• 43:28
  Speaker 1: time in multifamily right now. We're unfortunately, we're in the
• 43:31
  Speaker 1: thick of it in some ways. It's become a job
• 43:33
  Speaker 1: when we didn't think it was going to become a job.
• 43:35
  Speaker 1: We're navigating it well, but oh my gosh, what a
• 43:37
  Speaker 1: time to be alive as far as like that side
• 43:40
  Speaker 1: of things goes.
• 43:40
  Speaker 3: It's very wild. So if you get your story and
• 43:44
  Speaker 3: understanding that. Again, there's problems in any marketplace. The COVID
• 43:47
  Speaker 3: market presented a home buying problem. Sellers were loving it.
• 43:51
  Speaker 3: This market is presenting a home, could be a home
• 43:53
  Speaker 3: selling problem, except that if you're not setting the right
• 43:55
  Speaker 3: and proper expectations. But it's a great buyer. It's a
• 43:59
  Speaker 3: great buyer advantage right now. And if you go and
• 44:02
  Speaker 3: study your language of sales, you go and study, you
• 44:05
  Speaker 3: go and practice your daily lead activities of staying. I'm
• 44:11
  Speaker 3: going to contact five to 10 people every single day
• 44:13
  Speaker 3: and I'm not going to stop. until I do so.
• 44:16
  Speaker 2: If you talk to five, 10 people every single day,
• 44:18
  Speaker 2: that's 25 to 50 conversations that you have every single week.
• 44:22
  Speaker 2: There's going to be follow-ups out of that. So ultimately
• 44:24
  Speaker 2: you're building, you're building a momentum with your follow-ups from your,
• 44:28
  Speaker 2: from your calls, your conversations and your follow-ups, you're going
• 44:31
  Speaker 2: to be then setting appointments out of your calls and conversations.
• 44:34
  Speaker 2: You're also going to be getting referrals from that. And
• 44:36
  Speaker 2: you're going to be sending out emails. And if you,
• 44:39
  Speaker 2: if you then pepper that with handwritten notes in there,
• 44:43
  Speaker 2: you're selling 36 to 50 houses in the next 12 months, guaranteed.
• 44:46
  Speaker 1: The same system that we've always run. I mean, it
• 44:49
  Speaker 1: really just doesn't change. It's maybe the amount of conversations
• 44:51
  Speaker 1: you're going to have changes a little bit. But I
• 44:53
  Speaker 1: do question what agents that are really trying to figure
• 44:57
  Speaker 1: out what to do right now, I question how much
• 45:01
  Speaker 1: they're spending on focused lead generation every single day. I
• 45:04
  Speaker 1: just don't know of any market where If you spend
• 45:07
  Speaker 1: three hours of focused lead generation a day, you can't
• 45:09
  Speaker 1: sell homes. I don't know that that market has ever existed.
• 45:12
  Speaker 1: And so I just think agents have to be honest
• 45:14
  Speaker 1: with themselves. What are they doing to generate new business
• 45:17
  Speaker 1: each and every single day? The same way that you're
• 45:19
  Speaker 1: disciplined about anything else, your health and fitness, your spirituality,
• 45:23
  Speaker 1: your relationships, whatever. If you're that focused and dedicated with
• 45:26
  Speaker 1: your lead generation, you're selling homes.
• 45:28
  Speaker 3: Simple as that. That's all I got, Brian. We're going
• 45:34
  Speaker 3: to keep hitting you guys over the head with this
• 45:36
  Speaker 3: every single week. I think every week. It is what
• 45:39
  Speaker 3: it is. Nothing else has changed, though. You build a
• 45:42
  Speaker 3: business the same way, brick by brick. I think every
• 45:44
  Speaker 3: single week we'd do a segment of how many calls
• 45:47
  Speaker 3: did you make and contacts. That'd be fun. And then
• 45:50
  Speaker 3: track it for the next. Yeah. Yeah. It'd be fun.
• 45:53
  Speaker 3: We can use it for utility direct.
• 45:56
  Speaker 2: By the way, if you are a real estate agent,
• 45:58
  Speaker 2: which hopefully you are by listening to this, and you're
• 46:00
  Speaker 2: looking to help your clients get their electricity services, their
• 46:04
  Speaker 2: alarm services, their internet services, you name it, whatever they're needing,
• 46:08
  Speaker 2: whether renting or buying, they need to turn those services on,
• 46:11
  Speaker 2: their city, their water, their gas. Utility Direct, utility-direct.com, go
• 46:16
  Speaker 2: to the partner section on that. And you can start
• 46:19
  Speaker 2: earning a little bit of revenue every time that your
• 46:21
  Speaker 2: client turns on one of those services. And it's a
• 46:24
  Speaker 2: five-star concierge program. It's a concierge caller that will call
• 46:28
  Speaker 2: on your behalf. And it's another little touch point that
• 46:30
  Speaker 2: you have and the value and the service that you provide.
• 46:34
  Speaker 2: So all you need to do is go to utility-direct.com,
• 46:37
  Speaker 2: go to the partner section. You fill out your information.
• 46:40
  Speaker 2: It takes two minutes, and it will create a custom
• 46:43
  Speaker 2: website that you can start incorporating this into your business
• 46:47
  Speaker 2: in the next 90 seconds.
• 46:49
  Speaker 3: Yep, 100%, as simple as that.
• 46:50
  Speaker 1: So make sure you check out utility-direct.com and head on
• 46:54
  Speaker 1: over to homewarddfw.com, support our friends and partners over there. ProCareDFW.com,
• 46:59
  Speaker 1: and of course, for all your home warranty needs, check
• 47:02
  Speaker 1: out Armadillo. 1. It's going to be a really interesting rest
• 47:06
  Speaker 1: of the year, boys, to see what happens in this space.
• 47:08
  Speaker 1: A lot more things, I think, coming down the funnel
• 47:11
  Speaker 1: here when it comes to rates, all the different things.
• 47:14
  Speaker 1: Not going to be a shortage of stuff to talk about,
• 47:16
  Speaker 1: but at the end of the day, pick up the
• 47:17
  Speaker 1: phone and lead generate, and your business is going to
• 47:18
  Speaker 1: be fine.
• 47:19
  Speaker 3: Over under two rates? I think two. I think it's
• 47:23
  Speaker 3: going to be right on two. Yep. I think so.
• 47:25
  Speaker 3: We need to be at two rates. A little bit
• 47:27
  Speaker 3: more pain. We're almost done. We're almost through it. Almost
• 47:29
  Speaker 3: through it.
• 47:30
  Speaker 2: Just get through mid. I've been told midterms, you get $ 5, 000
• 47:34
  Speaker 2: if they win.
• 47:35
  Speaker 1: Oh, yeah.
• 47:36
  Speaker 2: And gas will come down drastically. So let's just get
• 47:39
  Speaker 2: through the midterms, B.
• 47:40
  Speaker 3: 2030, I'll be here soon enough. All right. See you
• 47:45
  Speaker 3: on the next show. All right, boys.
• 47:46
  Speaker 1: All right.
• 47:48
  Speaker 3: DFL, turn it up. This is This Week in DFL
• 47:50
  Speaker 3: with your real estate.
• 47:51
  Speaker 1: The weekly podcast built for agents.
• 47:53
  Speaker 3: Who actually get paid. Market moves, listing heat, closing streets.
• 47:58
  Speaker 3: DFL with your agents.