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Redfin Calls DFW a "Record Buyer's Market": What Local Realtors Must Do NOW · This Week in DFW Real Estate

• 0:00
  Speaker 1: I fall victim to that all the time. I'm on
• 0:01
  Speaker 1: Amazon and I'm like, it's going to be here on Friday.
• 0:03
  Speaker 1: I don't even want it anymore. I'll just go to
• 0:05
  Speaker 1: the store like I'm pissed.
• 0:07
  Speaker 2: The story just needs to go is that this is
• 0:09
  Speaker 2: the best buyer's market that a buyer's seen since really 2008.
• 0:14
  Speaker 2: And the only reason that, in my opinion, that they're
• 0:18
  Speaker 2: not taking advantage of it is that they have been
• 0:21
  Speaker 2: force fed that everything's too expensive. Interest rates are too high.
• 0:25
  Speaker 2: And so it's a bad time.
• 0:26
  Speaker 1: I think real estate agents mostly aren't the best people
• 0:29
  Speaker 1: to listen to about the state of the real estate market.
• 0:32
  Speaker 1: And that is not because I think they're generally dumb.
• 0:37
  Speaker 1: I think there are just so many of them and
• 0:39
  Speaker 1: they focus less on market knowledge and more on how
• 0:45
  Speaker 1: am I going to find my next deal?
• 0:47
  Speaker 3: And I don't think those two things are the same. No,
• 0:51
  Speaker 3: you should leave it. You should leave this too. I
• 0:54
  Speaker 3: don't even remember. Look, I don't even remember.
• 0:56
  Speaker 2: What we opened with last week.
• 1:22
  Speaker 3: I know.
• 1:23
  Speaker 1: You can leave this in the open that our guide
• 1:25
  Speaker 1: here says that we're supposed to sit like this.
• 1:27
  Speaker 3: At the beginning. That's right. So we're supposed to sit
• 1:29
  Speaker 3: like this.
• 1:30
  Speaker 2: Yeah. We do have, we've got some instructions, but we
• 1:34
  Speaker 2: never follow them.
• 1:34
  Speaker 3: We don't ever. These are merely suggestions.
• 1:37
  Speaker 2: No, but I will say the suggestion is that Redfin
• 1:41
  Speaker 2: has called it shot that DFW and even Austin is
• 1:47
  Speaker 2: one of America's best buyers market.
• 1:50
  Speaker 3: Sure. Dallas is a record buyer.
• 1:52
  Speaker 1: Buyer's market, which is not all that different than what
• 1:55
  Speaker 1: we've been saying for a while as far as a
• 1:58
  Speaker 1: list to sales price ratio, days on market, inventory levels,
• 2:01
  Speaker 1: things like that. It is a, I don't know what
• 2:04
  Speaker 1: record this is referring to, but it does have record
• 2:06
  Speaker 1: buyer's market in capital letters on our guide here. And
• 2:09
  Speaker 1: I think that Redfin agrees. So the question is, why
• 2:14
  Speaker 1: are we still having a relatively slow moving season?
• 2:18
  Speaker 2: So if we look at the data here, so In August,
• 2:21
  Speaker 2: Redfin estimated 57.9%. There are 57.9% more sellers than there
• 2:27
  Speaker 2: are buyers nationally. And this is the biggest gap in
• 2:30
  Speaker 2: their records, which go back to 2013. Wow.
• 2:34
  Speaker 3: Well, okay.
• 2:35
  Speaker 1: So it goes back to 2013, which basically can capture
• 2:38
  Speaker 1: an entire bull run.
• 2:40
  Speaker 3: And then the COVID years.
• 2:41
  Speaker 1: So not the biggest data set, but it is 13
• 2:45
  Speaker 1: years worth of data. So that's pretty much, I think
• 2:49
  Speaker 1: that I encapsulate this entire business cycle, right? You'd say
• 2:52
  Speaker 1: that we were fully out of the recession by 2012.
• 2:55
  Speaker 1: So 2013 to now would be this buyers or this
• 3:00
  Speaker 1: business cycle, right?
• 3:02
  Speaker 3: So this is the trough is what we're saying.
• 3:04
  Speaker 2: And then Dallas has 107.6 more sellers than there are buyers,
• 3:09
  Speaker 2: which is a record gap for Dallas-Fort Worth. 87.3%, actually
• 3:14
  Speaker 2: down from 96% from the month before. Sorry, Fort Worth
• 3:19
  Speaker 2: is 87.3% more sellers than there are buyers, which is
• 3:23
  Speaker 2: down from 96%. So Fort Worth is the hotter option
• 3:26
  Speaker 2: right now.
• 3:27
  Speaker 1: So if we just stop the conversation right there, then
• 3:30
  Speaker 1: we'd be advising our buyers just go lowball everybody.
• 3:33
  Speaker 3: 60% ARV.
• 3:39
  Speaker 1: But that's not the case because Redfin has another report
• 3:43
  Speaker 1: that says 21.1% of U.S. sellers cut their price in
• 3:46
  Speaker 1: the four weeks ending yesterday. The highest for this time
• 3:52
  Speaker 1: in all of Redfin's records. Is that still back to 2013?
• 3:57
  Speaker 1: So that is all across America.
• 4:00
  Speaker 3: 21% of U.S.
• 4:00
  Speaker 1: Sellers have cut their price yesterday. In the last month.
• 4:04
  Speaker 1: I don't want to say that again, right? That's a
• 4:07
  Speaker 1: very big statistic. Across the country, if this is accurate, 21.1%
• 4:14
  Speaker 1: of all listings on the market, is this what Redfin
• 4:17
  Speaker 1: is saying, cut their price significantly. in September, the last
• 4:19
  Speaker 1: four weeks, not like leading up to it, like in
• 4:22
  Speaker 1: that space. And here in Dallas and Fort Worth is
• 4:26
  Speaker 1: an average of about 25%. So about 25% of listings
• 4:30
  Speaker 1: in the Dallas, Fort Worth area had a price reduction
• 4:33
  Speaker 1: in the last 30 days or so. That's, I don't
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  Speaker 1: know that we, I mean, I don't think I've ever
• 4:39
  Speaker 1: looked at a different timeframe, but that seems like something
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  Speaker 1: that would have never happened before.
• 4:43
  Speaker 2: I'm trying to remember. I mean, I didn't, I'm sure
• 4:46
  Speaker 2: there was something, some people recording it back in 08, 09,
• 4:50
  Speaker 2: and 10. But, I mean, you would have probably some
• 4:53
  Speaker 2: similar stats during that if Redfin was tracking that.
• 4:55
  Speaker 3: You're right.
• 4:57
  Speaker 2: I will say, in order for this show to continue
• 4:59
  Speaker 2: to happen, Brian, you need to go check out our
• 5:02
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• 5:07
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• 5:36
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• 5:42
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• 5:44
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• 5:47
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• 5:52
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• 6:16
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• 6:21
  Speaker 2: buyers that are going to go and negotiate the heck
• 6:23
  Speaker 2: out and get a great deal, because it's a great
• 6:25
  Speaker 2: time to buy. That's why it's called a buyer's market.
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• 6:35
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• 6:39
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• 6:41
  Speaker 1: I'm a customer of every single sponsor we have. There's
• 6:44
  Speaker 1: not a single sponsor of this show that I do
• 6:47
  Speaker 1: not give money to.
• 6:48
  Speaker 2: I'll say ProCare.
• 6:48
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• 6:50
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• 6:51
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• 6:52
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• 6:56
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• 6:57
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• 6:58
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• 7:01
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• 7:05
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• 7:06
  Speaker 1: Yeah.
• 7:07
  Speaker 2: Oh, they did a great job. But if we go
• 7:09
  Speaker 2: back to, let's go back to this. And here's the
• 7:12
  Speaker 2: biggest thing that I don't understand. And what we didn't
• 7:14
  Speaker 2: want to do, last week's show was talking about, we
• 7:17
  Speaker 2: brought up interest rates again. I think the previous show,
• 7:19
  Speaker 2: we brought up interest rates again. We talked about the
• 7:21
  Speaker 2: Fed moving everything, et cetera. And every loan officer that
• 7:27
  Speaker 2: I'm hearing right now is bringing up, hey, interest rates
• 7:29
  Speaker 2: are here, but we can do X, Y, Z.
• 7:32
  Speaker 1: Right.
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  Speaker 2: And, and the story just needs to go is that
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  Speaker 2: this is the best buyer's market that a buyer's seen
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  Speaker 2: since really 2008. Yep. And the only reason that, in
• 7:44
  Speaker 2: my opinion, that they're not taking advantage of it is
• 7:46
  Speaker 2: that they have been force fed that everything's too expensive.
• 7:50
  Speaker 2: Interest rates are too high. And so it's a bad time.
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  Speaker 1: I am going to say something delicately because I don't
• 7:56
  Speaker 1: want to offend people, but, um, I've been going down
• 8:00
  Speaker 1: these Instagram rabbit holes sometimes. One of my favorite ones
• 8:03
  Speaker 1: is a guy who just interviews people on the street
• 8:06
  Speaker 1: and asks them questions about business after they claim that
• 8:09
  Speaker 1: they're entrepreneurs. And he asks them very basic questions, and
• 8:13
  Speaker 1: they obviously inevitably get them all wrong. It's like this
• 8:15
  Speaker 1: funny kind of gotcha thing. It's a very funny thing.
• 8:18
  Speaker 1: And I say that saying, I think in general... people
• 8:24
  Speaker 1: mostly aren't as knowledgeable about the grander things that are
• 8:27
  Speaker 1: happening in the world as we claim to be. Whether
• 8:29
  Speaker 1: that's markets, politics, whatever it is, we all have our
• 8:31
  Speaker 1: own little echo chamber we live in. We probably know
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  Speaker 1: a lot about some things and mostly don't know much
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  Speaker 1: about most things. And that's including myself, by the way.
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  Speaker 1: So I say that to say, this is all sentiment.
• 8:43
  Speaker 1: And where does sentiment come from? Sentiment comes from the
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  Speaker 1: word of mouth, the idea of the people that I
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  Speaker 1: know and love and trust in my life are saying
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  Speaker 1: that something is this way. and I align with them,
• 8:53
  Speaker 1: and I trust them, and so I believe that things
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  Speaker 1: are this way, right? And so if people believe that
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  Speaker 1: it's a bad time to buy a home, you have
• 8:59
  Speaker 1: to think about why that is. Because true, I mean,
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  Speaker 1: I bought a home last summer when it was also
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  Speaker 1: a very good buyer's market. The people that are sort
• 9:06
  Speaker 1: of like on the inside, the investors of the world,
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  Speaker 1: the people in this room that have built great real
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  Speaker 1: estate portfolios over the years, I can't imagine a better
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  Speaker 1: time to buy in a very long time. Interest rates
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  Speaker 1: don't necessarily, they're not an inhibiting factor for me because
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  Speaker 1: there's plenty of workarounds for interest rates. There's concessions, there's
• 9:29
  Speaker 1: buy downs, there's all kinds of stuff. What I care
• 9:32
  Speaker 1: about is asset prices, relation to relative asset prices and
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  Speaker 1: their relative value. I have maintained for a very long
• 9:42
  Speaker 1: time in this show, that we will not see the
• 9:45
  Speaker 1: market start to go north again until wages and asset
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  Speaker 1: prices get back into a groove, absent interest rates.
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  Speaker 3: That's happening.
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  Speaker 1: And we just see, Redfin's data there, in North Texas,
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  Speaker 1: 25% of people cut their price last month, just last month. month,
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  Speaker 1: and a whole lot of price reductions before that. So
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  Speaker 1: we are actually seeing asset prices and wages come back
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  Speaker 1: into alignment a little bit here. Rates aren't making it
• 10:09
  Speaker 1: any easier, but that's not the biggest problem. We can
• 10:13
  Speaker 1: always work around rates. I just think we're not telling
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  Speaker 1: the story well enough as an industry, of how good
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  Speaker 1: of a buying opportunity.
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  Speaker 3: There is out there.
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  Speaker 2: Do you think that has a lot to do with
• 10:24
  Speaker 2: the dumbification of agents because of AI? And I say
• 10:29
  Speaker 2: that with all due respect.
• 10:30
  Speaker 3: Yeah.
• 10:33
  Speaker 1: I think we're all, AI does have this like ability
• 10:36
  Speaker 1: to give us a lot of hubris around things, but
• 10:39
  Speaker 1: it's not just AI.
• 10:39
  Speaker 3: I think it's social media and stuff too.
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  Speaker 1: It's like, we all learn this little soundbite about something
• 10:44
  Speaker 1: and then we think we know a lot about it.
• 10:46
  Speaker 1: And I think that, I mean, I've said this long
• 10:49
  Speaker 1: before social media was such a regular part of our
• 10:52
  Speaker 1: business and before AI even existed, that I think real
• 10:55
  Speaker 1: estate agents mostly aren't the best people to listen to
• 10:58
  Speaker 1: about the state of the real estate market. And that
• 11:01
  Speaker 1: is not because I think they're generally dumb. I think
• 11:06
  Speaker 1: there are just so many of them and they focus
• 11:09
  Speaker 1: less on market knowledge and more on how am I
• 11:14
  Speaker 1: going to find my next deal? And I don't think
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  Speaker 1: those two things are the same.
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  Speaker 2: Well, for sure. They're hungry in their biased opinion of
• 11:22
  Speaker 2: everyone should sell or buy. Yeah.
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  Speaker 1: And most of them haven't done enough deals to just
• 11:26
  Speaker 1: like organically become market experts.
• 11:28
  Speaker 2: Right. But here at this show- We love data. Yeah.
• 11:33
  Speaker 2: So if you want to tell a story, you also
• 11:35
  Speaker 2: have to understand the data and how it relates to
• 11:37
  Speaker 2: that story. So let's go back to, you talked about
• 11:41
  Speaker 2: asset prices. You talked about wage increase. There's also a
• 11:45
  Speaker 2: way to utilize this buyer's market or utilize even seller's
• 11:49
  Speaker 2: equity to still make it a win for everybody, right?
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  Speaker 2: So back in August, 45, it was in August of
• 11:58
  Speaker 2: this year, nearly half of all homebuyers were got concessions
• 12:02
  Speaker 2: from sellers.
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  Speaker 3: Half of them.
• 12:05
  Speaker 2: Nearly half, right?
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  Speaker 3: I wonder how long it's been since half of the deals.
• 12:08
  Speaker 2: Here's what I'll give you. Great question, Brian. I'm glad
• 12:11
  Speaker 2: you asked that. Home sellers gave concessions to buyers in 44.7%
• 12:15
  Speaker 2: of US home sales in August. That's up from 42.6
• 12:20
  Speaker 2: a year earlier and the highest share for that month
• 12:23
  Speaker 2: since at least 2020. So in 2020- Um, it was 40.1%.
• 12:29
  Speaker 2: And then obviously that dropped in 2021, it dropped down
• 12:32
  Speaker 2: to 24.1%, which is still, I mean, even a quarter
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  Speaker 2: of all home sales still got some type of concession
• 12:38
  Speaker 2: during that time.
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  Speaker 3: That's more than I would have expected.
• 12:41
  Speaker 1: You know, obviously a lot of that just tends to
• 12:44
  Speaker 1: be like, we're negotiating repairs and we'll just do a
• 12:46
  Speaker 1: closing credit instead. But like a lot of people weren't
• 12:48
  Speaker 1: really negotiating repairs back then because it was just such a,
• 12:51
  Speaker 1: such a crazy time.
• 12:52
  Speaker 2: So then it went up in 22 to 27.6%. 23
• 12:55
  Speaker 2: was 34.8, barely gained in 24 to 35.3. And then
• 12:56
  Speaker 2: we've seen the massive jump between 24 and 25. It
• 12:59
  Speaker 2: was from 35 to 42.6. And then 2026 is 44.7.
• 13:00
  Speaker 2: And so when you really look at what you said earlier,
• 13:02
  Speaker 2: and how we as agents, again, need to tell the
• 13:03
  Speaker 2: story of Wage prices, maybe they've increased a little bit.
• 13:22
  Speaker 2: I need to go look at that. But asset prices
• 13:24
  Speaker 2: have come down. Home value prices have started slowly coming down.
• 13:29
  Speaker 2: And if you utilize the concessions, you're now able to
• 13:32
  Speaker 2: go and pay, even if you're paying $ 400, 000 for a house, well,
• 13:37
  Speaker 2: if you utilize concessions the right way and you have
• 13:40
  Speaker 2: the right lending team and the right real estate professional
• 13:42
  Speaker 2: with you, you can go and negotiate that and get
• 13:45
  Speaker 2: from a 7% interest rate down to... a low six,
• 13:48
  Speaker 2: maybe a high five, depending on how much you're getting. Well,
• 13:54
  Speaker 2: here's what I'll tell you. Most lenders, this is what
• 13:56
  Speaker 2: I don't like about most lenders, is that they're going
• 13:59
  Speaker 2: to talk you out of going for a permanent interest
• 14:02
  Speaker 2: rate buy-down. They want to get you that in that temporary,
• 14:05
  Speaker 2: the 3-2-1 or the 2-1 buy-downs, so that they can
• 14:08
  Speaker 2: refinance you in two to three years. And I'll get
• 14:12
  Speaker 2: a quick story. When I bought my house, I bought
• 14:15
  Speaker 2: my house in July of 24. And I got $ 40, 000
• 14:18
  Speaker 2: in concessions so that I could go buy my rate
• 14:22
  Speaker 2: down from 8% to 6.5%. A lot of the lenders
• 14:25
  Speaker 2: I was talking to told me not to buy the
• 14:28
  Speaker 2: rate down because I could quickly refinance in a year
• 14:30
  Speaker 2: because rates are going to be much, much, much lower.
• 14:32
  Speaker 1: There was a certain chapter in American history where this
• 14:36
  Speaker 1: same conversation around don't worry about rates, you can refinance
• 14:38
  Speaker 1: in a few years happened as well.
• 14:41
  Speaker 3: And it didn't end well for us.
• 14:43
  Speaker 2: No, it did not. And so I still feel like
• 14:46
  Speaker 2: I came out ahead. And what I would say is, again,
• 14:50
  Speaker 2: as real estate professionals, we need to understand the story
• 14:52
  Speaker 2: behind it. And then go just look at data and
• 14:54
  Speaker 2: figure out how to really utilize the data to start
• 14:59
  Speaker 2: building that inner dialogue so that you can easily have
• 15:02
  Speaker 2: conversation with buyers and sellers. Because sellers are going to
• 15:04
  Speaker 2: think it's a bad time to sell. And if they
• 15:06
  Speaker 2: price it correctly, it's not.
• 15:08
  Speaker 1: So, okay, let's do a little quick thought exercise here. So,
• 15:11
  Speaker 1: I mean, here's the thing. You did a permanent buy-down.
• 15:14
  Speaker 1: You can still refi whenever you want.
• 15:16
  Speaker 3: Does it come with a prepayment penalty now?
• 15:18
  Speaker 2: On the buy-down?
• 15:19
  Speaker 3: Yeah.
• 15:19
  Speaker 2: No.
• 15:20
  Speaker 1: Yeah, so you can still refi whenever you want. It's
• 15:22
  Speaker 1: kind of a silly case for a lender to make, right? So,
• 15:26
  Speaker 1: I know how much your house cost. You used $ 40, 000
• 15:30
  Speaker 1: in concessions, you said. As a percentage of your entire loan,
• 15:34
  Speaker 1: how much was that permanent buy-down?
• 15:37
  Speaker 2: The percentage of the loan. What do you mean?
• 15:38
  Speaker 3: Yeah, just like because I don't want to tell people
• 15:39
  Speaker 3: how much your house costs.
• 15:41
  Speaker 1: Like how significant of a portion of the total sales
• 15:46
  Speaker 1: price of the home, you got $ 40, 000 in concessions and
• 15:49
  Speaker 1: you bought your rate down like 1.5%, right? Like how
• 15:52
  Speaker 1: much of the sales price did that cost you?
• 15:56
  Speaker 2: I mean, very little of the sales price. I mean,
• 15:58
  Speaker 2: what was it? Let me do the math here.
• 16:03
  Speaker 3: But maybe 5% or so. Not even that.
• 16:06
  Speaker 1: Okay, for a permanent 1.5% buy down. And 25% of
• 16:11
  Speaker 1: listings in North Texas have had a price reduction just
• 16:15
  Speaker 1: in September, basically. And the average across the board, I
• 16:19
  Speaker 1: know we talk a lot.
• 16:19
  Speaker 3: More about Texas, and I'm way more familiar with that market.
• 16:22
  Speaker 1: Like, across Texas, it's like 92% list of sales price
• 16:26
  Speaker 1: or something. I'm not talking about just our MLS, because
• 16:28
  Speaker 1: I know that's a little bit different. But if you
• 16:29
  Speaker 1: look at just residential resale, it's like list to original
• 16:35
  Speaker 1: sales price is, I want to say it's like 10%
• 16:39
  Speaker 1: off almost. So there's an opportunity. I'm just trying to
• 16:43
  Speaker 1: flesh this out. There's an opportunity on a, okay. So yeah,
• 16:47
  Speaker 1: there's a, there's an opportunity on most sales to get
• 16:52
  Speaker 1: a significant contribution towards a really advantageous temporary pie down
• 16:59
  Speaker 1: or potentially even a permanent buy down. And right now,
• 17:03
  Speaker 1: with the state of the world, I tend not to
• 17:05
  Speaker 1: give a lot of advice on this show, but ask
• 17:06
  Speaker 1: more questions. I mean, I would be opting for a
• 17:09
  Speaker 1: permanent buy-down if I could. I feel like that's a
• 17:11
  Speaker 1: real good solution to a.
• 17:12
  Speaker 3: Problem right now.
• 17:14
  Speaker 1: You just haven't seen that in so long. I don't, yeah,
• 17:16
  Speaker 1: I mean, that's just the story we need to be telling.
• 17:19
  Speaker 1: You know, it really isn't a great opportunity for buyers
• 17:22
  Speaker 1: right now. Asset prices are coming down. They're resetting. Now,
• 17:26
  Speaker 1: wages may have increased relative to inflation.
• 17:28
  Speaker 3: They have not.
• 17:29
  Speaker 1: So that's another important consideration, right? When things are still expensive,
• 17:32
  Speaker 1: it doesn't matter. The wages have gone up. It's kind
• 17:34
  Speaker 1: of a wash.
• 17:35
  Speaker 3: Right.
• 17:36
  Speaker 2: If we kind of look at how people or agents
• 17:40
  Speaker 2: are building their business right now, we look at housing
• 17:43
  Speaker 2: activity is just remaining subdued through 2026. So far, they're
• 17:45
  Speaker 2: almost at three-decade-year lows in terms of the transactional volume.
• 17:57
  Speaker 2: So could it get worse? In my opinion, it would
• 18:02
  Speaker 2: be hard for it to get a lot worse.
• 18:05
  Speaker 3: Yeah. You say get worse.
• 18:09
  Speaker 1: One of the things that I think is really important
• 18:11
  Speaker 1: to keep in mind, we have shifted our mindset from–
• 18:17
  Speaker 1: and this is just American society in general– Over the years,
• 18:20
  Speaker 1: we've shifted our mindset from homes being a long-term investment
• 18:23
  Speaker 1: to something we're only going to be doing or committed
• 18:25
  Speaker 1: to for five years or so, five to seven years,
• 18:29
  Speaker 1: which usually puts us in a negative place for the
• 18:31
  Speaker 1: first few years just for the expenses of moving and
• 18:33
  Speaker 1: all that type of stuff in the first place. So
• 18:36
  Speaker 1: I couldn't get worse question.
• 18:40
  Speaker 3: If you're buying a home.
• 18:42
  Speaker 1: and you plan on living there for a long time,
• 18:44
  Speaker 1: even if your value went negative for a few years,
• 18:47
  Speaker 1: like that should be relatively inconsequential in the broad scheme
• 18:51
  Speaker 1: of things. If you're going to try and sell three
• 18:53
  Speaker 1: years later, then.
• 18:55
  Speaker 2: It's not smart. And when I say worse, I look
• 18:58
  Speaker 2: at it from, from an agent's perspective of transactional, transactional
• 19:03
  Speaker 2: sides going down, right? We're at, we're at, you know, low,
• 19:08
  Speaker 2: you know, we're at, Some of the lowest that we've
• 19:10
  Speaker 2: been in over three decades, three decade year lows in
• 19:13
  Speaker 2: terms of transactional volume. Right. And so it's like when
• 19:16
  Speaker 2: we look at that, we have a higher population count.
• 19:20
  Speaker 1: Right.
• 19:20
  Speaker 3: So relatively, it's actually like way worse. Yes.
• 19:24
  Speaker 2: Yeah. And we would have to see a much further
• 19:29
  Speaker 2: decline in the economy and job growth and pricing, in
• 19:36
  Speaker 2: my opinion, pricing then will not outpace. Your economy gets worse.
• 19:42
  Speaker 2: Transactional account goes down.
• 19:46
  Speaker 3: Yeah.
• 19:47
  Speaker 2: What's else going to fall with it? Your pricing will fall.
• 19:49
  Speaker 2: And so eventually, it's a balancing out.
• 19:52
  Speaker 3: It's an equilibrium, 100%.
• 19:53
  Speaker 1: At some point, all of these factors, and none of
• 19:56
  Speaker 1: them have to do with rates, will come into balance
• 19:59
  Speaker 1: for the residential real estate sales sector of the marketplace,
• 20:05
  Speaker 1: which is wages- asset prices, and then the number of
• 20:09
  Speaker 1: agents in the marketplace doing business will all collide to
• 20:14
  Speaker 1: form some sort of equilibrium.
• 20:17
  Speaker 3: Let's just say there are.
• 20:17
  Speaker 1: Fewer people buying homes and they're making less money and
• 20:20
  Speaker 1: asset prices are also coming down. They have to come
• 20:22
  Speaker 1: into balance, but there will also be fewer transaction sites. Unfortunately,
• 20:26
  Speaker 1: this will also mean that there will be fewer realtors
• 20:28
  Speaker 1: practicing in the space. As far as building your business goes,
• 20:33
  Speaker 1: I hate this saying, but time does heal all wounds.
• 20:36
  Speaker 1: It's only a matter of time before all things do
• 20:38
  Speaker 1: come back into balance.
• 20:41
  Speaker 3: I don't know. I mean, I don't like to make.
• 20:43
  Speaker 1: I feel like every time I've made a prediction, we've
• 20:45
  Speaker 1: been pretty close. I don't know if there will be
• 20:47
  Speaker 1: fewer transaction sides in 27 than in 26. So let's
• 20:49
  Speaker 1: not predict that. We're not going to predict it. The
• 20:54
  Speaker 1: way that things have gone the last five years, I'm
• 20:57
  Speaker 1: pretty convinced that just about anything's possible.
• 21:01
  Speaker 2: What do you, this has to play a factor in,
• 21:04
  Speaker 2: because I know that people are feeling this more and
• 21:07
  Speaker 2: more from the cost of, the increase of cost, inflation,
• 21:11
  Speaker 2: just the expenses going up, is that we're seeing that
• 21:15
  Speaker 2: the housing to service your house, utility cost, gas, if
• 21:21
  Speaker 2: it runs on gas, maintenance-wise has now drastically increased. By
• 21:29
  Speaker 2: the way, if you are an agent that is looking
• 21:32
  Speaker 2: to add additional income to your monthly business, you need
• 21:36
  Speaker 2: to go over to utility-direct.com. Go ahead and join as
• 21:40
  Speaker 2: a partner. From there, what you can do and utilize
• 21:43
  Speaker 2: with it is now you're becoming your own utility concierge company.
• 21:46
  Speaker 2: So you can go to all your clients and help
• 21:47
  Speaker 2: them save money on their electricity. You can help them
• 21:50
  Speaker 2: get better pricing on their internet. And if they need
• 21:53
  Speaker 2: a better alarm system, they can get hooked up with
• 21:56
  Speaker 2: a better alarm system over there at utility-direct. So utility-direct.com Um,
• 22:02
  Speaker 2: and then every service that gets turned on by one
• 22:04
  Speaker 2: of your customers, you get paid a referral. So, you know,
• 22:08
  Speaker 2: when you're looking at this though, is that, you know,
• 22:11
  Speaker 2: we have to start factoring in, not only do we
• 22:13
  Speaker 2: have high insurance costs, not only do we have this,
• 22:16
  Speaker 2: but now electricity and, and utility costs are going through
• 22:20
  Speaker 2: the roof.
• 22:21
  Speaker 1: It is a nightmare, man. Those are the things that
• 22:23
  Speaker 1: people used to not even really care about and shop. Um,
• 22:27
  Speaker 1: And I would say even for the most part now,
• 22:29
  Speaker 1: I mean, we're in a deregulated area. I would say
• 22:31
  Speaker 1: the majority of people in Texas are overpaying for their electricity,
• 22:34
  Speaker 1: and that's mostly an education gap.
• 22:37
  Speaker 3: But those costs have gone up as well.
• 22:39
  Speaker 1: The entire homeownership experience has become more expensive. And so
• 22:44
  Speaker 1: it's more than just asset prices. Asset prices come down.
• 22:47
  Speaker 1: Expenses also need to come back into whack.
• 22:49
  Speaker 3: I mean, yeah, we're talking about utility.
• 22:51
  Speaker 1: Costs, insurance costs, property taxes here in Texas. everything associated
• 22:56
  Speaker 1: with owning your home has gotten more expensive.
• 23:01
  Speaker 3: Ooh, 70% is what Gemini thinks.
• 23:04
  Speaker 2: From Business Wire. Yeah. So roughly, if we look at
• 23:08
  Speaker 2: just to pay electric for your house, if you're in
• 23:11
  Speaker 2: a deregulated area of Texas, about 70% of households are
• 23:15
  Speaker 2: overpaying for electricity.
• 23:16
  Speaker 3: I believe it. Yeah.
• 23:18
  Speaker 2: That's why you got to go to utility-direct.com. Sign up immediately.
• 23:20
  Speaker 2: Go get your customers. You go save your customers some money.
• 23:23
  Speaker 2: Do you think that now you can ask them for
• 23:25
  Speaker 2: a referral and tell them that, hey, when the time
• 23:27
  Speaker 2: comes to buy or sell, could you use me, please?
• 23:31
  Speaker 3: It's an important conversation. That's something we have not talked
• 23:34
  Speaker 3: about on the.
• 23:35
  Speaker 1: Sheet is that I would also very much venture to
• 23:38
  Speaker 1: guess that agents who are not doing nearly as many
• 23:41
  Speaker 1: transactions right now in this market, are also just not
• 23:44
  Speaker 1: nearly as active in their lead generation. They're not talking
• 23:46
  Speaker 1: to their database. They feel like there's no good conversations
• 23:48
  Speaker 1: to have. It feels uncomfortable because the market has been
• 23:52
  Speaker 1: relatively slow moving and there's a lot of headwinds. And
• 23:54
  Speaker 1: so they're just not putting forth the effort and doing
• 23:57
  Speaker 1: the lead generation activities on a daily basis. If you
• 23:59
  Speaker 1: were to continue to do those at a high level
• 24:03
  Speaker 1: every single day, your business may be down from your
• 24:05
  Speaker 1: peak years, but you would still be absolutely up year
• 24:08
  Speaker 1: over year in your business.
• 24:10
  Speaker 2: That I'll stand by. I talked to an agent. I
• 24:13
  Speaker 2: was interviewing an agent last night who's relocating here to Dallas.
• 24:17
  Speaker 2: The kid's 20 years old. Got his license. He got
• 24:20
  Speaker 2: licensed in Q4 of last year. Did not close his
• 24:24
  Speaker 2: first deal until March of 2026. Since March of 2026,
• 24:28
  Speaker 2: he's closed over $ 5 million in closed volume with several
• 24:32
  Speaker 2: more millions in pendings.
• 24:34
  Speaker 3: Good for him.
• 24:35
  Speaker 2: 100% of his business is from open houses.
• 24:37
  Speaker 1: Yeah.
• 24:38
  Speaker 3: He probably just does them all the time.
• 24:40
  Speaker 2: He launched it with 100 open houses in 100 days.
• 24:43
  Speaker 3: Okay, wow. Did he do it?
• 24:45
  Speaker 2: He did it.
• 24:45
  Speaker 3: He did it.
• 24:46
  Speaker 2: He did it, and this is what has led to him. Again,
• 24:48
  Speaker 2: 100% of his business is only from open houses right now.
• 24:50
  Speaker 3: That's amazing.
• 24:51
  Speaker 2: 20 years old, not even a full year in the business. Yeah.
• 24:55
  Speaker 2: Coming up on his one-year anniversary, over $ 5 million in close,
• 24:58
  Speaker 2: several million in pendings. And his average close volume, by
• 25:02
  Speaker 2: the way, is a little over right about $ 600, 000 in
• 25:04
  Speaker 2: close volume at $ 20 million.
• 25:08
  Speaker 1: It just goes to show you could be successful doing
• 25:11
  Speaker 1: anything in this business if you're just consistent about it
• 25:12
  Speaker 1: over the long term.
• 25:13
  Speaker 2: So what I'm finding right now is a lot of
• 25:15
  Speaker 2: our agents right now are the ones that are struggling
• 25:18
  Speaker 2: or they're not where they want to be in their
• 25:20
  Speaker 2: business is that they're saying that they're using the economy,
• 25:24
  Speaker 2: the market as justifications for not to reach out.
• 25:27
  Speaker 3: Agreed.
• 25:28
  Speaker 2: And they're also, we're hearing too much that, hey, my
• 25:32
  Speaker 2: people don't want to be bothered.
• 25:33
  Speaker 3: Right.
• 25:34
  Speaker 2: We've always heard that. We've always heard that, yeah. I
• 25:38
  Speaker 2: don't want to call them. I don't want to bother them.
• 25:39
  Speaker 3: I don't want to sound salesy.
• 25:40
  Speaker 2: They don't want to be bothered. They don't want to
• 25:42
  Speaker 2: be salesy.
• 25:42
  Speaker 3: Which is so stupid. It is stupid. I'm sorry. It
• 25:45
  Speaker 3: is stupid.
• 25:47
  Speaker 2: But I asked a question on our team meeting the
• 25:49
  Speaker 2: other day, and I'll ask you this, Brian. How many
• 25:52
  Speaker 2: of your friends have you found out they bought or
• 25:57
  Speaker 2: sold a house without using you?
• 26:01
  Speaker 3: More than I would like to admit.
• 26:02
  Speaker 2: And how often did you find out? What was the
• 26:05
  Speaker 2: method of you finding out that they bought or sold
• 26:07
  Speaker 2: a house?
• 26:08
  Speaker 3: Almost always.
• 26:09
  Speaker 1: It's like one of two ways. It's like through social
• 26:11
  Speaker 1: media or like the next time you see them at
• 26:12
  Speaker 1: a party, they're talking about their new home and sometimes
• 26:14
  Speaker 1: they're doing it apologetically.
• 26:15
  Speaker 3: Like, I know we would have called you, but like so-and-so, whatever.
• 26:19
  Speaker 2: So how does that make you feel?
• 26:20
  Speaker 3: Not great. It makes you feel in that moment, it
• 26:22
  Speaker 3: wakes you up and you're like, another missed opportunity. I
• 26:24
  Speaker 3: got to change. And then you just settle back into
• 26:28
  Speaker 3: your ways.
• 26:28
  Speaker 2: And what change would you have made?
• 26:31
  Speaker 1: Consistently prospect and consistently talk to my sphere of influence.
• 26:35
  Speaker 1: Consistently work my relationships, my existing relationships with a business
• 26:38
  Speaker 1: already exists.
• 26:39
  Speaker 2: And most of the time when we go and we say, hey,
• 26:42
  Speaker 2: why didn't... There's some people that are just bold enough
• 26:44
  Speaker 2: to say, why didn't you use me? And you'll be like,
• 26:45
  Speaker 2: I just forgot.
• 26:46
  Speaker 3: I forgot. Or here's the other one. I just assumed
• 26:49
  Speaker 3: you were too busy. Yep. I just assumed you would be.
• 26:53
  Speaker 1: You have no idea the amount of people in your
• 26:54
  Speaker 1: database that don't use you or won't use you because
• 26:57
  Speaker 1: they think that you're a bigger... business owner than you are,
• 27:01
  Speaker 1: and they feel like they need permission to call you.
• 27:04
  Speaker 1: And that's because we do such a good job of
• 27:06
  Speaker 1: making it look like we're killing it on social media.
• 27:07
  Speaker 2: Or they think that their price range is too low
• 27:11
  Speaker 2: for you.
• 27:12
  Speaker 1: Yep.
• 27:12
  Speaker 2: Because you come off as saying, I only work with X, Y, Z,
• 27:17
  Speaker 2: luxury homebuyers. Luxury homebuyers are celebrities or athletes.
• 27:21
  Speaker 3: Yes, 100%.
• 27:22
  Speaker 1: We don't realize we kind of alienate some of our
• 27:24
  Speaker 1: own clientele by only showing the highlights of our careers
• 27:28
  Speaker 1: on social media. There's business in your database right now
• 27:31
  Speaker 1: that's not calling you because, one, you're not proactive about it,
• 27:34
  Speaker 1: but also because they truly buy into the idea.
• 27:37
  Speaker 3: You're highlight reel.
• 27:39
  Speaker 1: And they think that you're doing 300 transactions a year
• 27:42
  Speaker 1: and like you can't be bothered.
• 27:43
  Speaker 2: One of the initiatives that we've realigned or pushing on
• 27:47
  Speaker 2: and really going all in on is we call it
• 27:51
  Speaker 2: the 10, the 50, the 200, the 600, the 2400,
• 27:53
  Speaker 2: which is we talk to 10 people every single day.
• 27:56
  Speaker 2: Talk to, not call, talk to 10 people every single
• 27:59
  Speaker 2: day about real estate. And from that 10 out of
• 28:03
  Speaker 2: the 50, five days a week, and I'm not asking
• 28:06
  Speaker 2: to work seven days a week.
• 28:07
  Speaker 1: Right. right?
• 28:08
  Speaker 2: Just five days a week, 10 contacts, 10 a day.
• 28:11
  Speaker 2: You know how hard it is actually to get to
• 28:13
  Speaker 2: the 10? It sounds easy.
• 28:15
  Speaker 3: Yeah.
• 28:15
  Speaker 1: But when you actually start making the calls and getting
• 28:17
  Speaker 1: into it, 10 is a significant number of actual conversations,
• 28:20
  Speaker 1: real estate related conversations to have.
• 28:21
  Speaker 3: Yeah. That's a very respectful number. That's a lot of work.
• 28:23
  Speaker 2: And then you start throwing in your follow-ups because eventually
• 28:25
  Speaker 2: there's going to be follow-ups in there. But if you
• 28:27
  Speaker 2: do that over a 90 day period, the next 90,
• 28:31
  Speaker 2: that next quarter, you will be flushed with business.
• 28:34
  Speaker 3: Oh yeah.
• 28:34
  Speaker 2: And if you stay on top of that every single...
• 28:36
  Speaker 2: If you stay disciplined and routine on it and cheat
• 28:39
  Speaker 2: very little, you will never not need business again. 100%.
• 28:43
  Speaker 3: That's a great way to put it.
• 28:44
  Speaker 1: You are 90 days away at any given moment from
• 28:47
  Speaker 1: having an incredibly full pipeline.
• 28:49
  Speaker 3: And then just maintaining it.
• 28:51
  Speaker 2: But it's like, what do I say? It's like what.
• 28:54
  Speaker 1: And this is... We overcomplicate things, right? We very much
• 28:57
  Speaker 1: overcomplicate things.
• 28:58
  Speaker 3: I have.
• 28:59
  Speaker 1: You know, one of the things that I talk about
• 29:00
  Speaker 1: a lot, I did like a three-hour workshop on like script.
• 29:03
  Speaker 3: Training that I'll present a lot of times. Three hours.
• 29:06
  Speaker 3: But it's the reason.
• 29:07
  Speaker 1: It's three hours because it's one of the biggest like
• 29:10
  Speaker 1: kind of concepts around it is that it doesn't matter
• 29:14
  Speaker 1: who the lead source is, where you're coming from, or
• 29:17
  Speaker 1: any of that type of stuff. It's really all the
• 29:19
  Speaker 1: same script. We're just trying to get people to the
• 29:21
  Speaker 1: same place, right? And this is more for prospecting.
• 29:24
  Speaker 3: In real leads.
• 29:26
  Speaker 1: But the same thing applies to our sphere of influence, right?
• 29:29
  Speaker 1: When I'm calling people that already are in my world,
• 29:33
  Speaker 1: I am going to call under one assumption. One, I
• 29:35
  Speaker 1: want to be a human being. And I just believe
• 29:37
  Speaker 1: in talking to humans and building your relationships. So I
• 29:41
  Speaker 1: want to remember and I want to be checking in
• 29:44
  Speaker 1: with them. I want to be making sure that like,
• 29:48
  Speaker 1: people are like, you know, what do I say? Like,
• 29:50
  Speaker 1: You should also be having a goal to meet with
• 29:53
  Speaker 1: a certain amount of people for coffee dates every quarter
• 29:55
  Speaker 1: and things like that. Why don't you just invite them
• 29:57
  Speaker 1: to connect? Or why don't you just check in on them?
• 29:58
  Speaker 1: Why don't you just see how they're doing? The why
• 30:01
  Speaker 1: am I calling is like, I think that's such a
• 30:04
  Speaker 1: limiting belief that we can get over so quickly just
• 30:06
  Speaker 1: by picking up the phone and talking to people. Regardless,
• 30:09
  Speaker 1: as it pertains to asking for the business, I have
• 30:12
  Speaker 1: coached agents to do this forever. Share your goals. Allow
• 30:16
  Speaker 1: them to be a contributor to your goals. And try
• 30:19
  Speaker 1: to be a part of their achieving their goals. If
• 30:21
  Speaker 1: you can do those things on a call over and
• 30:23
  Speaker 1: over and over and over, you'd be amazed.
• 30:25
  Speaker 3: At how business shows up.
• 30:26
  Speaker 1: And then make it very clear how they can send
• 30:29
  Speaker 1: you referrals, right? So, hey, before we jump off, my
• 30:33
  Speaker 1: goal is to serve 30 families this year. I know
• 30:35
  Speaker 1: I've said this before, but I really want to serve
• 30:36
  Speaker 1: 30 families this year.
• 30:37
  Speaker 3: And I help them.
• 30:38
  Speaker 1: And the way I serve them is by helping them
• 30:39
  Speaker 1: buy or sell a home. Who in your world do
• 30:41
  Speaker 1: you know that I can connect with that can help
• 30:43
  Speaker 1: me reach that goal? I depend on people like you
• 30:45
  Speaker 1: that I know, like, and trust to help me find
• 30:47
  Speaker 1: those 30 people. So who do you know that I
• 30:49
  Speaker 1: can connect with, right? They're going to say, hey, I
• 30:51
  Speaker 1: don't have anybody right now, you know, but I love
• 30:53
  Speaker 1: that goal.
• 30:54
  Speaker 3: I'll keep you in mind. I say, fantastic.
• 30:56
  Speaker 1: Hey, Jesse, whenever you do find that person that I
• 30:58
  Speaker 1: can serve, always just feel free to connect me on
• 31:01
  Speaker 1: a group text or an email, and I'll take her
• 31:02
  Speaker 1: from there. And if there's anything that I can help
• 31:04
  Speaker 1: you with, I'm always just a phone call away. If
• 31:07
  Speaker 1: you do that 10 times a day, every day, five
• 31:09
  Speaker 1: days a week for 90 days, you'd have more referrals
• 31:11
  Speaker 1: than you know what to do with.
• 31:12
  Speaker 3: It's such a simple conversation. So yeah, this idea of
• 31:16
  Speaker 3: I don't know.
• 31:17
  Speaker 1: What to say, I think is a thing that we
• 31:19
  Speaker 1: put out there because we're really hesitant to just pick.
• 31:21
  Speaker 3: Up the phone and make the calls.
• 31:22
  Speaker 2: I want to give a secret to this. If you,
• 31:27
  Speaker 2: because this is a show for Dallas-Fort Worth real estate agents,
• 31:31
  Speaker 2: you more than likely have gotten a text message saying,
• 31:34
  Speaker 2: from Jeff, the business development rep over at Homeward Property Management.
• 31:39
  Speaker 3: Love that dude.
• 31:40
  Speaker 2: And Jeff, his number one job is to set up
• 31:44
  Speaker 2: meetings for myself to talk with agents so that we
• 31:48
  Speaker 2: could earn the trust and earn referrals for Homeward Property Management. Now,
• 31:55
  Speaker 2: I'm set up with about three to five calls a day.
• 31:59
  Speaker 2: The more of those calls that I actually make contact with,
• 32:03
  Speaker 2: What happens to Homeward's business? Goes up. We've taken on
• 32:08
  Speaker 2: more properties and gotten more referrals because Jeff has set
• 32:13
  Speaker 2: up those appointments for me to have a conversation with.
• 32:17
  Speaker 2: And just to basically, I know the pain that agents
• 32:20
  Speaker 2: are going through. And I know that they have a
• 32:23
  Speaker 2: listing that more than likely is not going to sell
• 32:26
  Speaker 2: and they need to do something with it. And naturally,
• 32:30
  Speaker 2: the referral over to get a referral fee so that
• 32:33
  Speaker 2: the property gets leased up and professionally managed. And then
• 32:36
  Speaker 2: that client's rented. And when that client's ready to sell,
• 32:38
  Speaker 2: it goes back to you, the agent.
• 32:39
  Speaker 3: Mm-hmm.
• 32:41
  Speaker 2: The more conversation we have in that, the more properties
• 32:43
  Speaker 2: that homework gets to manage.
• 32:45
  Speaker 3: It's pretty amazing. Pretty simple economics, right? Inputs and outputs.
• 32:50
  Speaker 3: And it's funny, but I mean, obviously.
• 32:53
  Speaker 1: Nick has been a salesman for quite a long time.
• 32:55
  Speaker 1: He doesn't really need to develop any sort of new
• 32:59
  Speaker 1: conversational technique to handle these calls. But even if we did,
• 33:02
  Speaker 1: it would purely just be through like repetition. You're going
• 33:06
  Speaker 1: to learn what to say by just getting into these
• 33:07
  Speaker 1: calls and asking questions and learning more about your prospect.
• 33:11
  Speaker 1: And so, yeah, I think that's the takeaway of what
• 33:13
  Speaker 1: you're saying. We still do this.
• 33:15
  Speaker 3: We do this in all of our businesses. We're still
• 33:17
  Speaker 3: lead generators. We have to be.
• 33:19
  Speaker 1: I think now more than ever, that's kind of one
• 33:22
  Speaker 1: of the biggest determining factors, I think, or like one
• 33:25
  Speaker 1: of the biggest kind of like divisions that I've seen
• 33:27
  Speaker 1: in the marketplace is in the last few years is
• 33:30
  Speaker 1: there was a long time, a long stretch there where
• 33:33
  Speaker 1: we didn't have to work as hard to generate business.
• 33:37
  Speaker 1: And now there's a lot of, there's kind of like
• 33:39
  Speaker 1: a line has been drawn and it's like divided between
• 33:43
  Speaker 1: the agents that are ready to jump back into their
• 33:45
  Speaker 1: business and just do the hard work and lead generate again.
• 33:48
  Speaker 1: And the agents that got.
• 33:49
  Speaker 3: A little bit.
• 33:52
  Speaker 1: Soft, maybe And they're like walking around confused as to
• 33:57
  Speaker 1: how to get this old feeling back where I didn't
• 33:59
  Speaker 1: have to work as hard in my business. You know,
• 34:00
  Speaker 1: it's like times shift, things change. We still, I mean,
• 34:05
  Speaker 1: we cold call on a lot of our businesses still.
• 34:07
  Speaker 1: Like we just have to, you know, we're trying to
• 34:09
  Speaker 1: generate business and we've never lost that. Nick's definitely never
• 34:13
  Speaker 1: lost that. So I think if you're confused right now,
• 34:16
  Speaker 1: the smartest thing you can do is pick up the
• 34:17
  Speaker 1: phone and talk to people every single day.
• 34:19
  Speaker 3: I think you're going to be all right.
• 34:21
  Speaker 2: There's some data that I was looking at about The
• 34:25
  Speaker 2: individual agent. And for a long time, you know, we had,
• 34:30
  Speaker 2: we had seen, we'd seen a lot of ads running
• 34:32
  Speaker 2: and this is usually running from some type of recruiting
• 34:35
  Speaker 2: or coaching program, whereas the death of the individual agent, right.
• 34:39
  Speaker 2: And we're starting now to actually see a lot of
• 34:43
  Speaker 2: that happening where the individual agent is the middle class
• 34:46
  Speaker 2: is like the middle class. It's getting squeezed out and
• 34:48
  Speaker 2: there's the top and then the bottom. And then of
• 34:50
  Speaker 2: course you always have that little, that little exception to
• 34:53
  Speaker 2: the rule. And there was a, a survey, a ranking
• 34:58
  Speaker 2: that came out from, it was 2026 real, real trends
• 35:01
  Speaker 2: or rankings. It was published on July 15th. It says
• 35:05
  Speaker 2: teams now outproduce individual agents, right? Across all brands, teams
• 35:10
  Speaker 2: were less than one third of all of the real
• 35:12
  Speaker 2: trends verified entries, but they generated 832.69 billion in volume
• 35:15
  Speaker 2: and nearly 1.29 million in sides. Um, Which is way
• 35:23
  Speaker 2: more than the individual agents on both measures. So while
• 35:27
  Speaker 2: we look at it, obviously, what we're starting to see
• 35:31
  Speaker 2: is that they were less than the individual agents in
• 35:33
  Speaker 2: terms of size.
• 35:35
  Speaker 1: Right.
• 35:35
  Speaker 2: And this is what we've been talking about. You're going
• 35:37
  Speaker 2: to have the large conglomerate teams, less individual agents that
• 35:40
  Speaker 2: are now fighting for the leftovers. Yeah. And they're not
• 35:46
  Speaker 2: necessarily always getting it from their sphere. Right. Because now
• 35:49
  Speaker 2: you've got these large teams that are adopting and better
• 35:54
  Speaker 2: AI systems. And really what it is, is it's not
• 35:57
  Speaker 2: that the individual agent can't handle it. It's that they
• 36:01
  Speaker 2: can't handle everything all at once, all the services. You
• 36:06
  Speaker 2: can't be the leader. and the one out there showing,
• 36:08
  Speaker 2: and in the middle being the sales agent driving new business.
• 36:11
  Speaker 3: Exactly.
• 36:13
  Speaker 1: And on top of that, there's a cultural aspect to it,
• 36:16
  Speaker 1: like being surrounded by people who are holding you accountable
• 36:19
  Speaker 1: and driving the business forward, giving you the tools to
• 36:21
  Speaker 1: succeed and the platform on which to build your business.
• 36:23
  Speaker 3: That does something. I mean, 100%.
• 36:25
  Speaker 1: I am not surprised by that statistic at all, and
• 36:27
  Speaker 1: I think it will continue to move in that direction.
• 36:29
  Speaker 1: I think that real estate sales agents will become more
• 36:32
  Speaker 1: specialized in the sense that they will become simply the
• 36:36
  Speaker 1: client-facing lead generation appointment runners, and large teams will succeed
• 36:41
  Speaker 1: because they take so much of the task-oriented stuff and
• 36:45
  Speaker 1: the things that need to be leveraged out off of
• 36:47
  Speaker 1: the plate of the agent. I'm not surprised by that
• 36:50
  Speaker 1: statistic at all. I think it will continue in that direction.
• 36:52
  Speaker 1: I think we've said this in some form or another,
• 36:55
  Speaker 1: and I may have said it directly on this show.
• 36:56
  Speaker 1: I think the individual agent will be obsolete in maybe
• 37:01
  Speaker 1: the next decade. I don't mean that they won't exist.
• 37:04
  Speaker 1: I just believe that there will be pockets where individual
• 37:07
  Speaker 1: agents do very well. I think the business is heading
• 37:10
  Speaker 1: way more towards leveraged agents that are part of large
• 37:13
  Speaker 1: teams or highly leveraged brokerages.
• 37:17
  Speaker 2: Which is going to be more.
• 37:18
  Speaker 3: Kind of the same thing.
• 37:19
  Speaker 2: It's going to be a team ridge, right? So the
• 37:21
  Speaker 2: brokerage will... We'll increase their commission. So you've seen where, look,
• 37:25
  Speaker 2: it's going to be, again, like you said, that large team.
• 37:28
  Speaker 2: You'll see the decline in brokerages. So obviously we've seen
• 37:32
  Speaker 2: brokerage compression happening, right? A lot of the mergers. You'll
• 37:35
  Speaker 2: see the slowing down of these transactional, the flat fee,
• 37:40
  Speaker 2: the low cost transactions. Because then eventually you're going to
• 37:43
  Speaker 2: want more and more and more. Because in all reality,
• 37:47
  Speaker 2: I'm not going to talk bad about the low-cost or
• 37:51
  Speaker 2: no-cost brokerages. When you go pull production numbers, you can
• 37:54
  Speaker 2: always see that more often than not, higher producers are
• 37:58
  Speaker 2: at the other brokerages. So you'll start to see the
• 38:02
  Speaker 2: upward trend and brokerages offering more services there. But they're
• 38:06
  Speaker 2: going to have to take more from a commission side.
• 38:08
  Speaker 3: Agreed, yeah.
• 38:09
  Speaker 2: And then we'll start to see that go in the
• 38:10
  Speaker 2: reverse trend.
• 38:11
  Speaker 1: Yep.
• 38:12
  Speaker 3: I think that's pretty much the map we've talked about
• 38:15
  Speaker 3: a lot.
• 38:16
  Speaker 1: And also, I do believe that means on a per
• 38:21
  Speaker 1: capita basis, there will be fewer agents doing more transactions.
• 38:25
  Speaker 1: And this is like every industry, by the way. I mean,
• 38:27
  Speaker 1: this is not specific to real estate sales. Most industries
• 38:31
  Speaker 1: have figured out a way to be much more leveraged
• 38:34
  Speaker 1: and specialized. And the salespeople just sell.
• 38:36
  Speaker 3: Right.
• 38:36
  Speaker 1: And the transaction people just transact and the support people
• 38:39
  Speaker 1: just support.
• 38:40
  Speaker 3: Right.
• 38:40
  Speaker 1: Like this isn't like some revolutionary idea. It's just it's
• 38:43
  Speaker 1: honestly taking a long, long time for the real estate
• 38:45
  Speaker 1: industry to adapt.
• 38:46
  Speaker 2: Well, think of it this way. It's like whether it's
• 38:48
  Speaker 2: good or bad, depending on how you look at it.
• 38:51
  Speaker 2: The little small hardware store didn't just completely go out
• 38:54
  Speaker 2: of business really fast. Right. Home Depot came in. Yeah.
• 38:57
  Speaker 2: And then Lowe's came in and eventually started to take
• 39:00
  Speaker 2: away that the customers.
• 39:02
  Speaker 3: Right.
• 39:03
  Speaker 2: And you stop going to the small one because Lowe's.
• 39:06
  Speaker 2: Home Depot and Lowe's had much better services in terms
• 39:09
  Speaker 2: of what they offered. Maybe they got better pricing. Yeah.
• 39:13
  Speaker 1: Or they're at scale, right? So scale is the... We've
• 39:16
  Speaker 1: talked a lot about scale and what that does to
• 39:19
  Speaker 1: costs associated with home buying too, is you get a
• 39:21
  Speaker 1: whole different show on.
• 39:22
  Speaker 3: But yeah, it's not.
• 39:24
  Speaker 1: You said like, you know, not to say it a
• 39:25
  Speaker 1: bad way, like it's not good, bad or either. It
• 39:27
  Speaker 1: just is like, it's just is something that has happened
• 39:29
  Speaker 1: in pretty much every industry across the marketplace.
• 39:33
  Speaker 2: Well, you can't stop it. The train's left. We're not,
• 39:35
  Speaker 2: we're not going back to a horse and carriage. Like
• 39:38
  Speaker 2: we're not, we're just not like, you know, we expect
• 39:42
  Speaker 2: stuff to be drone delivered to our house. Now, Ashley
• 39:45
  Speaker 2: got super excited that they purposely ordered something from Walmart
• 39:48
  Speaker 2: and So the drone could fly over and just drop
• 39:50
  Speaker 2: in the backyard.
• 39:51
  Speaker 3: It's so crazy how normal that is now.
• 39:52
  Speaker 1: Like 10 years ago, you never thought robots would fly
• 39:55
  Speaker 1: through the sky and just bring you like, you know.
• 39:57
  Speaker 1: some stapler that you got from Walmart.
• 40:01
  Speaker 2: Right. And you expect it in less than an hour.
• 40:03
  Speaker 1: Like, yeah, that is true. I fall victim to that
• 40:06
  Speaker 1: all the time. I'm on Amazon and I'm like, it's
• 40:07
  Speaker 1: going to be here on Friday.
• 40:08
  Speaker 3: I don't even want it anymore. Yeah. I'll just go
• 40:10
  Speaker 3: to the store like a peasant.
• 40:12
  Speaker 1: Yeah.
• 40:13
  Speaker 2: It needs to be delivered today for free. Exactly.
• 40:15
  Speaker 1: Cause I just thought about it and now I want
• 40:18
  Speaker 1: it now. Human psychology is very malleable. It's very crazy
• 40:21
  Speaker 1: how we, we tend to change the way we think
• 40:22
  Speaker 1: about things.
• 40:23
  Speaker 2: But the crazy part is, is we as agents are,
• 40:26
  Speaker 2: We stay solo or stay individual, and we would rather
• 40:29
  Speaker 2: not make a lot of money. And it's a choice
• 40:33
  Speaker 2: versus going to a team where we could make a
• 40:37
  Speaker 2: lot more money, but maybe we give up a little
• 40:40
  Speaker 2: bit of something. There's a split difference. There's rules and
• 40:45
  Speaker 2: procedures and systems and structure and an environment, and you
• 40:50
  Speaker 2: need to participate and plug in.
• 40:53
  Speaker 1: Well, you'd be giving up that money anyway. I think
• 40:56
  Speaker 1: a lot of agents don't realize that. If I have
• 40:58
  Speaker 1: a goal to sell 50 homes a year as an
• 41:00
  Speaker 1: individual agent, there's going to be costs associated with that.
• 41:02
  Speaker 3: There just is.
• 41:03
  Speaker 1: I'm not getting 100% of my commission. I'm going to
• 41:06
  Speaker 1: have an infrastructure to build. I'm going to have people
• 41:09
  Speaker 1: to pay. I'm going to have leverage that needs to
• 41:10
  Speaker 1: support me. I just would rather join a team that
• 41:13
  Speaker 1: has already done that at a high level and not
• 41:15
  Speaker 1: have to build that infrastructure myself.
• 41:17
  Speaker 3: But those costs are there regardless.
• 41:19
  Speaker 1: That's what I think a lot of agents that are
• 41:21
  Speaker 1: kind of anti-team don't quite get is that Or an anti-team,
• 41:25
  Speaker 1: but also having scaled their business to doing a ton
• 41:27
  Speaker 1: of business. Once you get over 25 transactions a year
• 41:30
  Speaker 1: or so, your business starts to become more expensive.
• 41:32
  Speaker 3: It just does.
• 41:34
  Speaker 1: You're really running a business now, and there's infrastructure involved
• 41:36
  Speaker 1: in that. And I don't want to be the owner, operator, manager,
• 41:40
  Speaker 1: lead salesperson, transaction coordinator, marketing expert, dev guy, all that
• 41:44
  Speaker 1: stuff at once. I want to run appointments, because that's
• 41:47
  Speaker 1: what I'm good at.
• 41:49
  Speaker 2: When you were building Livian.
• 41:52
  Speaker 2: What was the number one challenge that you were facing
• 41:54
  Speaker 2: at the time? You had built the number one real
• 41:57
  Speaker 2: estate team within the Livian family ecosystem in less than
• 42:02
  Speaker 2: three years.
• 42:03
  Speaker 1: Yeah. I mean, trying to find the number one challenge,
• 42:05
  Speaker 1: Jesse was there for every step of the way. So
• 42:07
  Speaker 1: I don't know, we could pick a day and decide
• 42:09
  Speaker 1: what the number one challenge is. I still think at
• 42:13
  Speaker 1: the end of the day, and you know this very well,
• 42:16
  Speaker 1: this is probably why it's a little bit of a
• 42:17
  Speaker 1: leading question is, At the end of the day, it
• 42:20
  Speaker 1: doesn't matter how much support you have, how much leverage
• 42:21
  Speaker 1: you have, how well built the business is. You still
• 42:24
  Speaker 1: have to get up and do the work every single day.
• 42:26
  Speaker 1: No one's going to do it for you. And so
• 42:29
  Speaker 1: I have said this as a coach. I've said this
• 42:30
  Speaker 1: as an operator. I've said this as an agent. Running
• 42:33
  Speaker 1: a real estate organization is really just the perpetual effort
• 42:36
  Speaker 1: to help energize people every single day to do what
• 42:39
  Speaker 1: they already know they're supposed to do. If you can
• 42:42
  Speaker 1: do that, you can build a hell of a real
• 42:43
  Speaker 1: estate business.
• 42:43
  Speaker 2: 100%.
• 42:46
  Speaker 3: All right.
• 42:46
  Speaker 2: Go join our Facebook group, DFW Realtors Collaborate and Network
• 42:50
  Speaker 2: or Network and Collaborate. And look, if you go in
• 42:53
  Speaker 2: there and complain, Jesse will ban you.
• 42:55
  Speaker 3: You will.
• 42:55
  Speaker 2: Don't even try to step out of line. Jesse, he
• 42:59
  Speaker 2: rules with an iron fist over there. And go support
• 43:01
  Speaker 2: the sponsors, Homeward Property Management. So that's Homeward DFW, ProCare
• 43:04
  Speaker 2: Home Solutions, ProCareDFW.com. All these are.
• 43:07
  Speaker 3: Coms.
• 43:08
  Speaker 2: And then, of course, Tour Studios, TourStudios.com. And that's the warranty.
• 43:13
  Speaker 3: Armadillo.one.
• 43:15
  Speaker 2: Armadillo.one. Theron Smith, the best home warranty here in Texas
• 43:19
  Speaker 2: and the United States. So go use them.
• 43:22
  Speaker 1: Appreciate you guys listening. We'll see you next week with
• 43:25
  Speaker 1: more news and probably more rate talk.
• 43:28
  Speaker 3: See you all then.
• 43:31
  Speaker 2: DFL, turn it up.
• 43:32
  Speaker 1: This is This Week in DFL with your real estate.
• 43:34
  Speaker 3: The weekly podcast built for agents who actually get paid.
• 43:39
  Speaker 3: Market moves, listing heat, closing streets.
• 43:41
  Speaker 2: DFL with your agents.