Hey welcome back to the podcast uh. I've got jeff mays super coach broker owner 31 years in real estate brother from another mother, but before we jump in because this is going to be the single greatest sales meeting for people on the planet and you've got to talk into the microphone. I'm going to hold you accountable for that right if you're, watching this or listen this and and you're a fan of what we do and how much value we deliver to the marketplace. If you are sitting here right now, knowing you need more accountability, you need guard rails.

You need somebody pushing you, i'm going to strongly recommend you go to my website, tomferry.com and schedule a business consultation with somebody on my team, because 2022 is going to be an interesting year. We already see the numbers right now right, you take the top 50 percent of agents to a 91 of the business. You take the top 25 percent of agents in the mls doing 73 of the business you got, 40 percent of the agents have even sold the house in the last 12 months, step it up and help, and i'm just i'm making the argument for your success. Go to tomferry.com click on whatever button it is that says, free business consultation.

We should have a conversation all right, jeff. Yes, first of all man, it's good to have you back on the podcast yeah. I appreciate you having me back after what uh a month or two ago we had a very highly rated podcast. You know i'm gon na try my best to talk in that microphone.

I can see you're already looking at me like this guy doesn't even, but you know i appreciate you bringing it that was a fun podcast, but you know you put three very talented speakers, professional speakers with two microphones, three speakers and two microphones. I like to affectionately, call them the the mike hogs. Oh, you know you know, pipes and pantana. Well, jason! Okay, let me answer that question right, seven, different ways: right right, exactly and then pipes: okay, people, here's what we got ta.

Do you know what i was thinking about is imagine if all four of us were on stage and they put us in equal corners and then they just dropped the mic right in the middle and, let's see who would win well, i would sit back and let You guys bloody each other up, and i would just right that's exactly what would happen. We would go for it, okay, so so for the people that certainly, if you're listening or you're watching um you know, jeff has been with me for a long time. Coaches. 70.

Rock star broker owners, team leaders super luxury - you have so many luxury agents that are just hamptons new york city, aspen that are just killing it and and what's so interesting is you really are like a true sales manager at heart? Yes - and i think people need to have context for this, so so like myself, i'm 32 years in the business you're 31 years in the business um today, he owns a brokerage uh running that with with kate who's insane 20 agent team, but prior to that running, Ronnie's company, one of the highest per person, productivity offices, yeah - that i can ever remember - 15 years, i was running an office that had 50 agents doing about 24 30 deals a year right. We were doing a thousand a year right. It was unbelievable. It was pretty strong.

I want to get into that, but i want to give them more context. You did that you did new home sales. You ran relocation, you were a buyer's agent at one point, not a team. Six years, uh coaching and training with us um.

So so the first thing is, i actually want to ask you wasn't on the list, but like go into that. What was it like running that? Because you've got a team leader listening right now you got a broker listening right now you got a top agent. You got a brand new agent right. What was it like for those years running, ronnie's company and really just you were the motor man yeah.

You ran that thing. I again i i come from a place of almost sales management. I'm i'm a big like you know, contracts talk, bs walks, so we're always focused we're always talking on what can we focus on this month and so running that office uh? One thing we had you talked about coaching. We had three quarters of our agents were in coaching that helped that made my life as a manager or a leader a whole lot easier, because everybody was moving in the same direction.

Everybody was talking the same talk, and that was the key, but you know looking back, we had two transaction coordinators, we had a listing coordinator, we had an office manager, we had an owner, we had a sales manager and we had agents that had been in the Business 10 or 15 years we had agents that had been in the business six days you know, and but what we always were trying to do on a weekly basis is what's the focus this week or what's the focus today, i think we're always so far like It's easy to plan six months a year down the road. What are we gon na do today? What's this week, look like what are we gon na exactly do you have any appointments? No, how do we get some appointments that that that is my kills? Let's get them close. My coaching at the end of the day is how many listing appointments? Have you going on how many buyer appointments? How many conversations have you made? We need to focus on the things that matter at the end of the day, which are sales and listings right, so you know uh. I think that uh everybody is like what was that, like? I think that what we did we would role play at least two or three times a week.

We would have a 30-minute meeting um and then we would just check in with them or have an accountability or coaching session manage it by walking around. You know, and i still do the state when i'm going to the office, i'm going to talk to two or three agents on the way the office on the way home. I'm gon na talk to two or three agents and i'm gon na be like just what do you got going on? Tell me what you got you know. What i do a lot of is tom is who is your best? Buyer tell me about your best buyer right now and i think, as a leader, our job is to give them the secret sauce of just helping them move the needle on that listing appointment.

They may be going on tonight or that buyer appointment and just talking it through that's at the end of the day, what they need. You know what a great sales manager does and it's the same thing a great coach does right. We instill confidence. Yes, we instill.

You can do it, you got this, that's exactly what i would do and sometimes, as a leader they're, just calling you to say am i doing this right right is this? Am i on the right path? Am i do so? Half the time, like you said it's high five, you got this. You got to try this and then just i'm always like what are you going to do today and then i'm going to put it on them to text me or let me know the results of what they're doing so you you've got to have you've got to Have an action item and then you've got to hold them accountable. So it's not me following up with those agents and what we talked about is like just text me: what happened on that appointment? Did you get the listing? What did they say right right? I got to tell you the best uh advice or training that i ever got and we know ronnie my stepfather uh and uh. He would uh the first day i was in real estate.

He was like here's a contract and tomorrow i want you to explain this. To me so that that was my first day of training, that is amazing training, because you're like hold on watch this and what what is the average right, but what is the average agent or what does the average leader do? They spend all their time? Well, let me go through the contract, no, no! No! You know how to do it. What i'm worried about is them doing it so here's the contract, then i had to read it practice. It highlight things and then the next day i had to go through it.

Okay, i got to tell you a cute story: real fast, remember, joe darafieli, yeah vegas right, so joe's uh joe's first ever listing appointment right. He did not have a manager, bob hamrick who's, a legend you're listening you're a legend in vegas right joe goes. I go on my first listing appointment and he says i got an appointment. The guy says we'll just bring the contract just get him signed the contract.

He said great, he goes and you know joe's joe five, two five five right and he said - and i and i'm not razzing him because he's of his height because he says the guy that answers the door is like six four right and he goes. He looks up to me he's like former military guy and he's like come on into my house and joe goes through the standard stuff and he's like okay, here's, the paperwork and you press hard lots of copies. A guy goes what's this and what's this and he says uh, that's just that's just fodder just fill it out and he goes. He said the guy reached across grabbed me by the ear and said boy you're gon na read me that contract right or i ain't signing it right.

He didn't right. The first thing you're gon na have to explain is a contract right. So then day two i had to explain a listing contract right and then the third day i had to do my listing presentation. The fourth day i had to do my buyer presentation so guys in four days, i've already learned how to explain a contract.

Do a listing agreement uh what to say and do, and i mean that if you can do it with your your leader or your boss or somebody it's so easy when you do it face to face right right right, because the real pressure is right: you're you're, A couple days on the job right in this new career right, that's far, scarier truthfully than like talking to like an actual buyer seller. All right, i wrote down one two, three, four, five we're never going to get through. I don't know we're not even we got one bonus. Question was like what was it like running that company right so so i wrote down interest rates and urgency, yep pricing and price reductions, right handling, commission ectomy, right, the commission ectomy.

I want to talk about closing at the listing appointment because i think it's a lost art. I want to talk about 100 conversion on buyers and - and you were you were sharing with me before we got started this first time home buyer thing. So i added that on the list as well yeah, so so uh interest rates and urgency. What what are you telling your clients right now, because rates are going up, they're starting to inch up um? I just i just interviewed the guy from nba the um and i'm sorry, i'm forgetting his name now, but he's the chief economist for the mortgage business association right and he's like rates could be in the fours by the end of 23..

Right i was like or excuse me, 22., i apologize 22.. So what are you telling your clients right now? So i think most people are not pa. I don't think rates. Inching up is, to some degree a good good thing.

It is uh um, but i think that what we're not we're not paying attention this they're starting to creep up. I just noticed the past month that rates have gone from 2.7 to 3.4. Okay, that's for a 30-year fix for a 30-year fixed national average um. That means purchasers buying power has gone down by 10 right so to tom.

On a million dollar mortgage. Your payment would be four thousand dollars a month ago. Now it's 4 400 right now watch this. I don't think that's gon na really push people away or they're, not gon na this buyer demand is not going anywhere, but if it starts to creep up even more there's gon na be a point where, like whoa, wait a minute we're we're gon na back off.

What's gon na happen is you're gon na see those rates go up and you're gon na see headlines start to change right uh. You know parents now saying to their kids, i'm not sure. Maybe you should wait right, you're, going to see hesitancy in the marketplace, because the price of everything is going up. Food milk, gas, housing interest rates, all of it.

So what are you telling your clients to do so? I'm seeing articles weekly mortgage demand dropped six percent. After interest rates, move higher weekly mortgage demand stalls as rate you're, starting to see these things, we know that the only way we can really government can control inflation is by adjusting the interest rates, so everybody out there, you should be on the phone right now. I'm going to give you my weekly sales, get on the phone to all old leads and just talk about rates creeping up. There's a hey tom there's a window of an opportunity and i really think the next three or four months rates are still going to be good.

And if you're serious about buying a house in the next year or two, we need to look now or we need to go out there and get back together or we need to. You know what's great about the timing on this too. Historically, for everybody listening historically, i don't know what day is today, whatever it's right, wednesday, whatever right and uh, so this will be out, probably a week after we filmed this it'll, probably change well, so yeah, there's always that, but here but here's the thing historically. The fourth quarter - transactions in the u.s go down by 18 right historically right.

We didn't see that in 2020 um - and i think i think, that's because agents just take off. No doubt no doubt, and we know our clientele oftentimes, the fourth quarter could be the best. It's like the best of two because they they finish strong, but then they mark it aggressively. So the first quarter becomes bonkers, but but again calling your old leads rates are creeping up.

Inventory is going to be down, but there's going to be less buyer demand. So, what's the language you want the listener to use when they're calling, because it's one thing to say jeff, you know kate, i just want to reach out and let you guys know hey rates are definitely going up right right, which means your purchasing power is going To be less that 400 000 house right, if you want the same payment, it's now 350. right right. So, let's get you back up, but but but tom i've always known the last core is the best time of year to buy a house because they're, like you, said, there's less demand.

There's less people looking out there. Maybe there's not 10 offers, maybe there's only two or three right or maybe the house doesn't sell in the first day. Maybe it takes four or five days. You start to see that this time of year, i think agents start to pat themselves on the back right and they just start to back off hey.

This is everybody that crushed it this year they worked their butt off. No doubt the last quarter of last year and then it just it creeps over and just goes into next year. We know that 2022 starts right now, right, okay, so so call me, i'm a buyer! You and i we looked at property three or four months ago. I got disenfranchised because there was nothing out there.

I wrote a couple offers. I resigned my lease, you know what i mean so and now you're calling me hey, hey tom. This is jeff mays over at abc real estate. Uh.

You recently reached out to us about buying a house. You remember when we looked uh, maybe back in may yeah. Of course, man yeah part of the reason for me calling is: have you noticed what interest rates have started to do? You know um, i mean i'm paying attention a little bit, but where are they at they're starting to creep up a little bit? So i was just: are you still in the market to buy a house? Well, what's the rate now because when we were looking, it was like the mid to high twos. It's still it's low threes.

You can get three three and a quarter. It's still a great time. What i'm worried about is a year from now, you're gon na have to pay more and rates may be at four or four and a half percent. So i was just reaching out: let's get back together, let's go see what's out there and you know if there's nothing out there.

I want to know what you're looking for. I will mail knock. I will get on the phone and find out what's what you're looking for and just right hunt for you, basically in this type of market. So i know you said your rate.

Your lease is up in march or april yeah. If we found you the perfect home and the rates were good and you were fine with the mortgage, would you consider moving right now or moving in the next 60 to 90 days? I mean if i can get out of my lease okay, so you know here's one thing that people don't realize it's probably gon na take a month or two for us to find a house and then probably another couple months to to close. So that is look. Let's it's november december january, we're already in february or march - and you said your lease is up when yeah.

Now they stop in march. Okay, it's the time now is the time okay. So i think we need to talk timing, yeah with buyers as well. We just got really frustrated.

You know, with the the last go round, looking at properties with you and kate and right, you know, writing an offer falling in love with the house and then not coming together. Just you know it. So what if i told you what? If i told you there's going to be potentially less offers um, maybe anybody that's selling their house right now, they're pretty motivated as well, so we're starting to see some price reductions out there. Let's just get back together, let's reengage, let's see what's out there, what works for you uh! Are you available saturday uh in the morning or sunday afternoon, yeah, let's uh, let's, let's figure out saturday.

Let me talk to kathy, but but saturday sounds good, so why don't? I pencil you in for saturday at 10.. Will that work, yeah! Okay, i'll see you soon, i'm not gon na! Let him off! I'm always gon na pencil, you in right right, i'd, love to even depend i'll pencil! You in until you enter how you pencil me in on your phone, see that is old school right there. You just caught me on that. Let me put you in my calendar: yes, okay, so so, let's transition just for a second.

We wanted to talk about uh, first-time buyers right, and we want to talk about like 100 conversion of buyers right so so, let's go to the end, which was that first-time buyers, scripting conversation and some of that 100 percent conversion. I like that you prepared man. I a great sales manager does well the last time. The last time i was here, i had a lot of notes and i noticed some people looking at my notes and they were ahead of me and i was like: oh okay, ditto, you know yeah, you stole my point all right.

So what i used to what i always did - and this is with a it's great - for a first-time homebuyer um i used to they didn't even know i would do this we'd go to lunch and i would be able to do this on a napkin. Okay! Listen! If you can do this on a napkin, i would draw a line down the middle and i would say, let me show you what your net worth looks like in five years. Okay, and on the left side i would have rent and on the right side. I would have owned everybody with me so far.

Super brian katie, you two listening super easy. Okay, so so do this exercise right now, i'm literally i'm razzing uh! You know ian already owns a house. He should buy more right. Brian, do you own a house? Yet kate, do you own a house yet all right, you're gon na be 25 like in a couple days.

Katie you better get on this all right. So the idea, both of you need to do this assignment, i'm telling you this will change your idea about buying a house, so the first is rents. So let me ask you: let's use an example that like say, your rent is three thousand dollars right, so so tom, what is your rent a month? It's uh it's about three grand okay. So what i'm gon na do is three thousand dollars times sixty months.

That's five years: you're gon na spend 180 80 000 in rent right wow, okay, yeah. So let me ask you something: when you move out, do you get any of that back? No, they don't give you that money back, no okay! So you know, if anything, they keep increasing the rent which they've done to me twice in the last two years right, so that 180 000 is a loss. Do not get anything back from that. Okay, you two feeling that over there we're gon na sell you a house we're gon na sell you about the house, so so tom! The next thing, do you do? Do you get any equity when you move out of that that rental? Do you get any equity? No okay, do you do you get any tax benefit? No, has anybody sat down and explained the process of buying a home in the huge business taking the time to show right exactly, but so so look.

Let's look at this on the rent side. Right now we got 180 000. This is the ultimate first-time buyer consultation. This is so starbucks easy exactly with your friends, that's okay! What i like about this! This is a friendly con.

This isn't this is. This is like tell me: hey guys, like you're gon na you're gon na spend this money anyway right right. So so you know, do you want to invest in this, or do you want like? Do you want to pay somebody else's mortgage or do you want to pay your own mortgage right because the mortgage is going to be paid? I'm gon na you're gon na pay it i'm gon na. Show you one thing at the very end that gets them every time, so so uh tom at the end of the day, renting 180 thousand dollars six years right, whatever the multiple you know, whatever their average rent is, you know two thousand bucks a month, 500 bucks.

Three grand so then, so then, on the own side, we're going to spend the same amount of money: 180, 000, but hey tom! What do you think 80? Hey guys, what is 80 of a mortgage? Do you know what it is? 80 is interest yeah and what's the key to interest, you can write some of that off. It's deductible right so 80 of that that rent that you're going to be paying now in a mortgage is going to be deductible and, let's say, you're at a 30 tax bracket. I just use this example. You're gon na make 43 000 now watch this in five years.

That is money in your back pocket that you're not paying the government yeah. Okay, that is you're gon na make they're actually paying you to own a home because of the mortgage deduction. You two get that okay, you have not experienced that, but that's the big big benefit to owning one of the big benefits of owning home. The next thing is, let me ask you something so you're going to save 43 000 in taxes, how much equity do you get when you own a house? Well, you get all the equity right, but let me ask you: what's the appreciation past 50 years? What do you think the appreciation has been in the united states? Three, three percent, it's about seven, five percent! Really! So let's say this was about a sixty.

Let's say it was about a six hundred thousand dollar house or six hundred thousand dollar mortgage at at five percent. Over five years, you're gon na have an equity of a hundred and fifty thousand dollars, so you're gon na buy this house. The idea is, it's gon na go up five percent a year on average, and so then, when you're done you're going to save 43 000 on taxes, you're going to make 150 000 equity you're going to be in the positive 193 000 as compared to a loss Of a hundred and eighty thousand dollars, i've got an idea, and this is always works. This will close them.

Let's you and i go out and look at houses, and you pick one and i'll buy it, and so you're going to lose 180 like you'll and i'll buy it i'll, buy it for you and you rent it and i'll make the hundred and ninety three thousand. No way man come on doing that. Come on i'll. Do this, you love paying rent, but that's what you're doing right now right! You love paint.

I love it. So that's! The idea is close them on like they will be like no. I want to buy a house and then it's not hold on hunt. So so katie get come over here.

Come here, katie we're pulling katie into the podcast right. Can you introduce yourself? My name is katie tell them how old you are. I'm 24. i'm going to be 25 right.

Big party. Do i need to teach you how to talk? No, you know you, don't no you don't. So what did you think, as you were going through, that the one thing i got is that buying a home is better than renting right? That's the end-all, be-all, right and you're, basically losing money. If you pay somebody else rent, how much is your rent right now? I i don't pay rent because i currently live at home, because i want to move out that's why so i'm saving money.

So you know what i did when i graduated from college. I found two or three good friends of mine and i bought a house and they rented the two or three other rooms, and so they were paying two-thirds of my mortgage. They were paying pretty much my mortgage, and so when it was done, i sold the house. I got the equity and then have you ever wondered.

Like you see these people like how do people live in a million dollar home? Here's what they do. They do this for three or five years. They sell it, they take the equity and then they move up and they do it three or four times in their life, so that person that's living in a million dollar house. They've got a 1500 mortgage because they're just taking the equity and moving it up.

Every time and their payments not changing, we got to get you on the ownership train. Yes all right. Yes, we do. What do you think? When are you going to buy a house by when i don't know, hopefully you live in in dallas? Yes, i do so.

You can probably buy something with three to five percent down which, if you really think about most of these rents, now they're one first last month, deposit they're they're gon na ask for almost three percent to rent a house. So why not own a house instead, i know and the reality is um like kath, and i were looking at real estate just this last weekend, we're looking at stuff that is 250 350 450 trying to figure out how many of those we can buy because the Rents are so great and there's still all this appreciation right, you should be buying one of those all right. What's holding you back, i ownership home ownership at 25. I bought my first place.

I thought my first one was at 22.. Okay, so to jeff's points you ready so big, shout out to jacob sykes my longest dear friend, outside of kurt castle, who i've known since i was 18. I buy my first house at 19., it's 155 000 one bedroom, plus a loft right two bath. Little little shoe box right 155 grand by the way back then i had to put 30 percent down because i was 19 and basically had no credit right.

They, you ready, i put a ton of money down right. My payment was like 8 15 a month, plus association plus taxes right. It's called like a thousand bucks. A month yeah i charge my buddy jacob 950 a month in rent right, you paid 50.

You can do this, you can do this sorry jacob. He knew he figured out like four months and he's like dude. What's your payment, i'm like that's a lot bro, none of your business all right now! You guys got me thinking. Well, that was the idea.

That's the idea, we're always just getting now right! All right! Get all right: okay, no good talk to the microphone. No! I was literally talking to brian. I was like hey. I want to move out in january, i'm looking at apartments, not a house no we're going to buy.

I know now, i'm like okay mine. Let's look at houses, okay, so i'll give you another story, so my wife kathy when she bought her first house. She bought it with one of her dear friends, steve rowe right right, so they buy it together right right between the two of them. He was like.

He was an electrician. She was a real estate agent. They both made decent money right yeah. We got to get into the end of the show here.

So i'm not saying you need to buy a house with brian right, but like someone like brian who's, like one of your posse that you're like look, let's just go, buy a house together and if you can really be smart, you go buy a duplex right and Then and then you guys live in one you're living and then you run out the other or you know you live in one unit. They live in one unit. You get a rent, you get a buddy that wants to stay in there and pay some rent. Also, and so does the other person, because now you now you're, maybe you're in a business right yeah because they're paying our mortgage right - oh wow, y'all are just brilliant.

Well, i don't know about. I don't know about brilliant. We've just been doing this for a while. I'm doing this for you, but you know, but but at 24 about to be 25 and and like, i think, that's the typical scenario when you're talking these first-time buyers are like.

So what's this you just need to be educated. It's the worst most people like. I don't want to be planted, i don't want to be, you know stuck in one. You could always rent it out right or in this market.

You bought a house what six months ago, a year ago, yeah. How much have you made in equity? So far, a lot okay, talking to ian our producer here, yeah right he's made 120 grand in equity because he bought a house where'd you buy what uh, what city again prosper prosper. I just love that name right, so great all right! So the first time buyer thing is key. One thing i want to say: yeah, i think, agents get really weird about numbers and which is a really odd thought because of buying real estate.

So hey guys, you need to have a mortgage calculator. Everything i'm going through is on a mortgage calculator right and another thing that i used to do every week or every month. I would at least go to lunch with a loan officer and learn about different programs or what like become an expert in mortgages and right and be able to speak payments right, and so most people like. Oh, you need to talk to they're they're, going to just shuffle it off on the loan officer.

No you've got to be you're like the the quarterback in this. This transaction you've got to know everything. So i'm going to open up my playbook right here on my arm and go right with the interest rate, so they go to four. That means your payments this and your buying power.

Is that right? Do you guys want to wait? Can you afford to wait? I mean, i know you're only 24 about to be 25.. You can't right right. Okay, it's gon na cost, you more so we've got first-time buyer scripting. That is money.

I would even argue for everybody listening right now. You should take right. Your closest 15 friends from high school or college take them to lunch. I want to have lunch.

I just want to show you something i learned it's blowing me away. I want your input as a buddy. What do you think i'm thinking about buying another house? Let me just go through the math with you right and it's like it's not about a sales pitch. It really is about educating people, because not everybody's going to say: okay, i'm going to buy a house, and everybody has the money everybody's as disciplined as you are they're saving and right getting ready for it all right.

Here's what i think every every great, every sale and listing starts with a conversation, and we just want to have a conversation with people right. So at the end of the day on this thing, whatever you're losing it's usually about what you're going to gain right. It's about a one to one game, so you're, either going to you're either going to lose 180 000 or whatever it was in rent right or you're, going to pick up right, 120 thousand dollars in equity. In a year.

I heard a story that, like most apartment complexes after three and a half years, they're paid for it's all cash after that, it's all cap, that's why big apartments never sell, because it's just they're just raking in the money. After the person and after 10 years, you refinance the note and you take a bunch of cash out and you go buy another 80 or 100 or 200 or 500 blacks, like that's the game. Okay, so we did first time: buyer scripting um, let's jump right in yeah: let's go, let's jump back because those two were correlated, but i want to go pricing and price reductions. Okay, so you and i were talking before the show that, like i'm, seeing it right right, i'm not seeing it everywhere and i'm not seeing it in every product.

Everything's tight, real estate's, always hyper local right right. Everybody's got different and product type. Specifically, if i'm in the high end, if it's four years or newer right, clean design right sells in two seconds right, if it's five years or older, well forget about 10 years right right, then, like you got to find you, it has to be price. What was the great uh uh steve harney line right if the home isn't selling the price isn't compelling? So let's talk about pricing and price reductions.

So what do you what's the sales management? What mindset and language what i usually talk about with agents is like. I would ask to sell: let's say: maybe you got something: that's like everybody's freaking out now when something doesn't sell. In two weeks. Okay, we got ta, we got ta, look at the world as well right, we got ta.

Look at the big picture. I mean i'm talking like if it hasn't sold in like a month or two or the seller's really on you to get this price right. I would always ask this question: hey tom, if i brought you a all-cash contract clean deal that would close in 30 days. What would you take yeah at this point? What would you take? What would you take uh? I would take 13.

okay. So let's do this, let's lower it to 13.. I would rather, you turn down offers than not have any offers. Let me fight to get everybody up to 13.

it'll. Give me enough motivation to go back to previous buyer's agents and buyers that take a look at it right and give you some ammunition how's that right, let me so. I love that. Let me give you another one right: uh, timmy smith, his all-time best line right.

So so so he's doing this on you, he did it. He did. He did bastard such a good line and he got me. I talked to kathy last night she's like all right.

Don't interrupt my script with my own press reduction, all right, but i'm getting an offer today. That's right knock on wood. Here we go. We've heard that before that's a new one, we're showing you the money, we're expecting right, that's so good and we're just sitting there by our computer waiting for that email.

Aren't you kathy is kathy is right now at her email. I haven't gotten anything from tim. Yet where is it timmy all right, um, so tim's great line is hey. What price are you guys? No longer a seller love it at what price are you no longer a seller and it's same thing with buyer right right, but that seller line they're, like you know, god, if we don't get x and every time you're, basically getting the reverse engineer right, you're getting There they're right it's a good way to we used to say what you uh at what price? Would you be a seller yeah or what would it take right because that was in the hey, the market's escalating faster than we know what to do with right? So hey what price would you become a seller - and this is the hey - you've been on the market for 60 days and let's, let's paint the scenario the seller picked the price right right, you didn't say: hey, you know what we should do, let's go with the Needle and the haystack price right right, the seller's like look at this price is what we want.

We don't really want to sell, especially when you're talking to high-end people, none of no one in the high end actually wants to sell and you're like wait a minute. Your company just went bankrupt, you're getting a divorce motivated, but you don't have to sell okay, like that's just the mindset right. So in this case, it's like at what price you no longer sell. I love that i'm gon na do it.

I'm gon na give you a script and then i want you to give another script around pricing. Okay, my all-time favorite was the so jeff and kate most agents when they walk in. They basically say: here's the comps here's what's going on and then they look at you and say: where would you guys like to price your house which, which is kind of like a surgeon walking into you and saying i just reviewed the x-rays i found the tumor Where would you guys like me to start the operation right right like it's? Just it doesn't make a lot of sense, but i understand because most agents they don't have, but one approach when it comes to pricing. What was the stat that uh? What every? What half of all listings they're listed with somebody? That's only listed once or twice right: okay, so they're not getting! No, no, no they're, not getting an expert they're, not getting export to give the, but the great agents they go in, and this is the script ready.

So so jeff i actually have a three price strategy and i want to empower you to make the right decision for you and kate um. So so here's here's! Basically what we can do. Most agents would just say in this market knee on the haystack. Let's go for the highest possible price: let's go for breaking all the records and in this case, that price would be x.

For you guys, smart agents are going to say to you, hey. We might find that buyer, but what? If we don't right? What? If that property sits on the market - and you know you guys told me - you want to be in x - buy why and but but know that that is an option for me right and sometimes we get lucky and we sell even higher right, but most most time We get offers less than that price, because the other agents are looking at the same comps i'm looking at. Does that make sense like we're all looking at the same math right? The second option is we just go right in the middle and say price per square footage, or you know, however, you guys do in your marketplace, like per square foot. Puts you right at about this and that'd be what we've deemed fair market value.

So we can. We can wiggle around that right, a little bit higher and we're going to be in the range and we're probably going to get multiple offers, but my savviest of sellers, you know what they say to me. I want to get the highest possible price. What do i need to do? That's when we actually put it below fair market value, and i i describe it - and this is maybe just a strange metaphor, but it's like taking blood and pouring it into the ocean and watching the sharks.

Just start. Circling like crazy and everybody's going into this frenzy right and then you and i sit back and we pause and we accept all the offers and then i go through and do my due diligence and i i organize the offers based on criteria for you and then I sit down with you after four or five days, and i say: okay, jeff, kate, here's what i've got right in order of price and terms what mattered most to you guys here are the best offers. Here's. What i see let's go through.

Do we want to counter? Do we want to accept one? What would you like to do right so so you've really got three choices today. Go for the deal, the haystack, hope and praise. Sometimes we get lucky right and you know, as i told you, the houses that are trading right now at the fastest and highest price fastest. You know fastest timing and highest price are four years or less new construction.

Everything else is taking more time. Everything else is getting - and you guys finished this home how long ago, seven years ago - and it's it's a stunning property right, but the numbers show four years or newer right, like that's who's, getting the premium prices now to under price to get what you right. So what we need to do is we need to say: let's go, let's go get the chum in the water right or let's price it right at fair market value and and then i will negotiate like crazy to get you the best possible price, but either way It's listen, you're empowered. What would you guys like to do? I love that because it's giving the homeowner the choice right and they want choices right and i see most agents.

What do they do? They come in owning that price and then here's what happens guys. Okay, uh 14 million and then you're just waiting to see if you got that listing instead of giving them a choice, you're tying it to timing right and what they want, and people want. A choice right - and i want to be clear: 14 million - is crazy. How about it like 350, how about it 275? How about like the same exact strategy? Right people want to be empowered and, and it's it's almost like the i think, you're doing.

14. 000. Oh you're! 14.! No! It's it's a illusion of choice! Right right, like i'm! Going to get the listing either, i love what you said. If you want to get top dollar.

This is the approach we got ta go this way right, the most people inverse top right, everybody wants top dollar, everybody wants lots of options, and - and maybe the chum in the water is a weird metaphor for you and you'll - have a better example of it. But the the point is like the by actually going below fair market value at first all the agents go okay. I know what he's doing right right. I know i know what she's doing this is going to be.

This is going to be crazy right. We got to get our offers in highest and best right, you're you're, setting up the strategy for a multiple bidding war, and if you don't yeah the home, wasn't compelling yeah, that's it! That's it! So all right! So what else do we got? What how do we, how do we there's a thought that came through my mind? Is that when sell, when buyers have the choice to go up, they will but when they're forced to pay more, they won't, and so i'm sure some of you are like what are you all talking about price reductions? I truly think we're going to see more price reductions in the next six months than we've seen in the past two years. I agree why? Because we've been listing things at whatever we're looking, what can we, let's just add 10 to what the last one sold guys? It can't always go like that. I want to.

I want to make a statement too, and i i'm not going to i'm not going to bust this person's chops, but one of my uh one of my friends who's a client. I'm like tell me about that. Last point she was on, she was like. Oh, she goes, the seller was like.

What do you think she's, like i don't even know the market's so crazy? That's not a good script. It's not good! That's not a good script. I don't know the market is crazy. What do you, what i don't know i mean, what's it gon na sell? For i don't know my listing presentation is out.

What do you want and you're just going? Will that work or not uh sure i'll? Take it right, and i know, and of course you know, we ended up role-playing for almost 20 minutes right right. I was driving in the car. Just checking hey. Let's go tell me about your week.

I want to assist deployment she's telling me the scenario and i'm like don't ever i'm like driving in my car, my my knuckles are getting white, i'm like don't ever i'm going to punch your coach in the face. Don't ever oh! No, i just it was just in the moment, i'm like nope. It doesn't matter if it was in the moment right right. I don't care if it's a 300 000 house or a 30 million dollar deal expert experts know what to say right and they're amateurs, guests and they're coming in with a choice around timing and what they want to be there.

Next time you see, josh rubin ask him it was. It was david rosen. I think it was david rose, who's now left his team and become a wildly successful broker on his own, which is a great attestment to josh. David actually listened to my three pricing strip and went with josh on an appointment and did it on the sellers and josh was like.

Where did that come from? What is this he's like? You might want to listen to your coaches right right. Give me a break, so i used to say things like hey tom. The market is spoken. Okay, like yeah blame it on the market.

The market has spoken, but we've realized. If we're getting showings and no offers, then we could be two to five percent off. If we're getting no showings and no offers, we could be more than five percent, but fortunately we're getting showings and no offers. So let me ask you: do you want to lower two percent or five percent easy easy? It's just giving them a choice, yeah and you're tying it to the activity right showings when you're? Getting no offers agents are looking at that, like? Oh, that's a nice house, but too much.

No, we'll just wait right. So so let me i'll give you another example of this. Like i'd love real, i love role-playing right. I do so so ring-ring ring hey jeff, kate.

You know uh it's it's time for our weekly update on the market what's going on tom um, so i'm looking back over the last 30 days since we put the home on the right - and i want to just i want to go through some numbers: we've had 11, 000 impressions across all the social channels. Right we we did. Our mega open house launch yeah right. We had 63 63 brokers through um.

We had. We had that. One initial offer that you guys didn't like right. That's pretty typical! First couple days and right probably we probably should have taken it, but that's: okay! It's okay! I still got your back and we're still working really hard, and what i wanted you to know is this.

I was reflecting on the last 30 days in all the marketing. All the efforts, all the views, all the impressions, all the showings, all the conversations i'm having with buyers and, more importantly, with agents and here's what i got. The market has spoken right: um, the market, the agent and, most importantly, the buyers. Jeffy listening they've all rejected our price, really the market, the agents and, most importantly, the buyers they've rejected our price.

So what do we want to do? Um? What do you think we could do what's the first approach so remember that the last offer we got or the only offer we got yeah right so so clearly, clearly that buyer at that price, even though we didn't like the number that's kind of the market. Okay, now here's the question as we go into the fourth quarter: deeper and deeper and there's less buyers coming on the market. We've got to make a strategic decision today. Do we want to sell before the end of the year or do we want to wait until the spring market of next year? No, no, we got to get i i need some tax right off, so we've got to get this sold by the end.

Okay, remember i'm here for you right, so so, if, if that's the case, then we need to go back to that initial offer and we need to price it less than that initial offer. Okay, to get the activity now, if you're willing to do that, i would be willing to call every one of the agents. Okay before we reduce the price and put it into the mls. Okay and let them know, is their buyers still active, and if we would reduce the price to this, would they come to the table? I'd be willing to make every one of those phone calls if you guys would be willing to adjust the price? Let's do it.

I just made that up i'm sitting here looking at like you're killing it and you don't even friggin, sell real estate right right, but you know how many deals. Do you think you'd do a year like be honest? Okay, because i'm forrest gump right like i - would actually use my coaching 1100 deals a year right. I don't know what. How many days are there right right? I go back to you.

Do you remember who was the gal from louisiana miss irma? Oh yeah? She was doing 300 deals a year before anybody was doing three right. She would literally remember her great line. She's, like i remember, she's, we roll her up on stage right in a wheelchair right right, she's doing 300 deals a year. I don't even know if she had a last name.

She was just missing that was it right yeah she worked for like cold bankers. I didn't even forget who was she's like she says i get this phone call and they're like miss irma, we're thinking about selling our house and she's like uh ian, when i sold when i sold you that did i leave the sign in they would have this Sign put the sign out of the garage put it in the front, and then you come to my office. I was like the audience was dying, but you know what that woman. She just knew what to say she kept it.

So simple right, she was friendly. She was warm and she was the authority like remember she said: hey i'm in a wheelchair. It's not easy for me to get to you, but it's easy for you to get to me. I'm at the office every day, monday through friday, eight to five.

Let me pass you into my second deployment right at our office. Think about that over the phone negotiating deals. This is like 1994 right right. I miss irma would be my goal right.

No wheelchair everybody come down super rad all right. So let's switch gears. We did interest rates, we did first time, buyer, we talked a little price and price reductions. I think it's important.

I think it's super important right now for everybody to hear whether it's the three pricing strategy or some you've got to come in with a degree of separation when it comes to pricing right right because we're i actually want to talk about closing for a minute, because This is this is one of your strong suits. My hallucination is that the vast majority of people love the dance right, but don't think about my brother-in-law right, so steve, belmonte right so steve is a closer right, whether it was at him as a single guy right right, like the funniest line ever he's. I'm sitting he's sitting with my son. Who's like michael, must have been like 19..

He goes. You want to know how you close he's like you're in the middle of the dance floor, you're talking to the girl and you're like hey. Do you like ice cream? Just on the dance floor pattern interrupt pattern interrupt and they, of course they like guys, hey, let's go, get an ice cream right and just like that, you left the club, i'm like you're teaching my 19 year old son, how to close, i'm not sure this is Entirely appropriate, but i did notice that michael grabbed his phone out and started writing notes like like he's, he's an og right. The the great mistake, though, is, i think so many people they they focus on the marketing and what i'm gon na do.

Look what my company does and all that matters right, but if you don't get to the end and say so, jeff kate put me to work. Let's go! Oh and and that's when everybody freezes up right. That's when everybody that's where they fumble at the last minute. When they're ready to close and they're like okay call me later i'll, wait to hear from you when they go, what majority people do is like i'll wait to hear and that's not a good place to be jeff.

We just you know my wife and i we we just we like we, we love everything, you're, saying right. We just need to think it over so tom. Let me ask you something: was this helpful today? Did you get some good information? This was, you were out of all the people we met with. We felt the most informed and educated today.

So let's talk about how we're leaving our meeting today and what we learned. Okay, are we in agreement of listing your home at 13 million? Yes, great perfect, and you know, based on that, you don't owe much. It looks like you're going to walk away with about 11 million dollars. Yes, is that enough to get you to the next place? It's so much money, i'm not even sure what to do with myself.

I love it so we're we're good on the product. This was actually real by the way anybody's wondering right, but so we're good on the price, we're good on our net, and let me ask you something: you know based on my marketing plan, you know, do you feel like we can expose your property to the most Agents and qualified buyers to get you the highest price in the shortest time frame. You think we can get sold. As i mentioned, you i'm a marketing guy, and i was very impressed with your marketing plan.

No doubt - and you know we're going to be working closely and communicating a lot over the next few months. Do you feel like we can work? Well together? You think we can get along yeah. I like your energy, okay, hey!.