Hey welcome back to the confidence conversion show. Today i've got coach bill pipes in the house, he's listed and sold real estate, he's done mortgages and he's coached, some of the most extraordinary teams to increase their confidence and ultimately convert more buyers and sellers bill. There's a lot of anxiety and fear in the marketplace today. There always is, but it seems more so today because of interest rates lack of inventory.

What can an agent do and say today to empower a buyer and seller to move forward with confidence so tom? One of the things that i've learned over the course of the last 27 years, uh and even a little bit more time, is that um conversion now in today's world comes down to your ability to be able to educate um. You know sales used to be angular, hard, closing, etc. Now it's our role as a salesperson is to educate the client, and the reason for that is that - and i truly believe this and i've seen it across the board and educated and motivated. You have to have that second piece educated and motivated consumer, whether that's a buyer or a seller uh you know or a borrower, will always make more intelligent decisions.

That being said, many agents, many loan officers, many sales people jump into an assumption that the client buyer seller borrower already knows what the market is and that it's an accurate assumption, which it isn't. So what i found is that the great sales people that are converting at a high level, they take the time to be able to educate the client well, first of all, to meet them where they are find out what the client understands or doesn't understand about the Market and then to educate them on the reality of the market as well too, especially into right now in this world that we're in where i mean i'm getting data and studying, and it there's conflict even for us there's conflicting information, that's coming in right now! You know, i think mortgage bankers association said a negative 2.4 their projection, and then you got zillow at 13.6 percent. You know back in december in terms of the appreciation: there's just confusion, our job as a salesperson is to educate and remove that confusion and remove that uncertainty and create certainty and control the narrative and how you do that is this. You start off like once.

You've got some rapport and utilizing basic techniques and finding out the level of motivation. You ask the question to the client: well they're, a buyer or seller, which is i'm curious. What have you heard is occurring in our local and national market today in real estate, and then you just shut up and be quiet, and your job at that point is not to rebuke. It's not to actually build your case.

It's just simply to find out where they are right and based upon where they are. You now can tactically understand what you need to educate them on now. The second piece to that question that i'll ask them that i haven't given you guys is this: where did you get that information? Now, i'm always going to preface that with? I was wondering or i'm curious, because it's a very direct question and you don't want to create resistance or you don't want to cause them to feel like they're in a defensive posture. So when you soften it with i'm curious or i was wondering where did you get that information they're more apt to answer authentically and openly um, and then on top of that, you know how and the purpose of that question is to actually know how embedded their Belief is right.

Do i need to push a little bit harder? Do i need to bring a little bit more data? How much research have they done, or is it just something that someone has told them that they've adopted is true? Okay, once i've found out where they are, then i'm gon na say this right, excellent repeat back what it is that they told me and i'm gon na say you know. Let me share with you now the reality of what is actually occurring in our local market. Today and i'm gon na put the emphasis on reality, and actually so i can basically say hey, i understand what you're saying, but this is - and this is what's really going on right now without like devaluing what they have told me, and at that point i need To have my day - and this is something i've been pounding on - everyone that i coach and everyone in our ecosystem tf - is that you need to study your data inside and out on a weekly basis, whether it's going through kcm going through your multiple listing service um. You know, like the more knowledge that you have the more confidence somebody actually has in you, so i'm gon na go through where uh, what are the home values now versus a year ago? How much appreciation has taken place? What is the inventory levels now versus a year ago? How much has it increased or decreased? I may even use that as a 90-day mark tom, because that lets me show them the the most recent trend, as well as the annualized trend, i'm gon na go through.

If there's any price reductions, which we saw back in september october november, right et cetera, so that i can build the case and and and actually control the narrative of what it is that they're thinking what they believe etc. With that, i don't have to close as hard in the future, because they're, educated and again going back to educated motivated, makes better decisions right. So, if i hear you correctly, the first question in sort of simplest terms is tell me what you understand about today's home. Buying market or help me understand your perception of the market.

Yes, second one is i'm curious like: where did you get that information was that around the water cooler? Are you reading a website? Was it a friend that told your mother-in-law and then the third one? Is you know, can i take a minute and basically explain what i'm seeing from a data standpoint today in the market, yeah for sure whether it's adding or or re-educating or repositioning their perspective on the market? So that's the process that is the process and part of that as well, too, is um. I will ask them: why do you think this market is as strong as it is and most of the time they're going to say interest rates right is what we found right over the course this last year. This is also an opportunity to be able to actually hit with millennial data as well too, to talk about the fact that why this market is so strong, of course, interest rates are an accelerant, but it's really the millennials and these 26 to 42 year old. You know men and women that are either first-time home buyers or they were early implementers to the market to be able to actually purchase for the first time when they were younger and now they're buying their second home having kids.

And so what that shows is that this market will continue to be strong for the next year, two years or three years, that they wait. What i'm trying to do is cut off uh. You know the pass where, if they wait, they say well, we'll just wait. No, the longer you wait, prices are still going to go up and i'll show that to you in the second part of our conversation and dialogue here today, so it's data, but then it's also macro uh economic viewpoint of why the market is as strong as it Is which is millennial-based data as well too love it love it.

So so i love the the whole perspective. Is there? Is there a close or a statement or something that you use to get the person then to move forward? So i i absolutely think that our greatest opportunity, right now to be able to move a buyer and even a seller forward, is this whole uh. What what's happening currently and the projection from the fed of the increase in rates right now, um. I think we saw in december tom.

I know a good portion of that insane demand that came was because rates did pop. They dropped down to 2.9. They popped up into the mid threes. I think it got all those fence, sitters off the fence and going oh man.

The party's over the lights are turned back on and i need to do something right now right. So i i use this one percent, close concept right and the what i'll start with and you'll notice that any of the scripts and dialogues. I always like to start in an opening that says you know tell me what you know about right, because i want to get the client engaged versus just verbally vomiting information on on on them. So i'll ask them this question: hey tom.

Do you know how interest rates impact your ability to purchase a home as a buyer and histori? What they'll say is of course right. No one wants to be stupid. People have a general concept of it at a high level, and i say well tell me: how does it impact your ability to be able to purchase a home again just like in the first dialogue of educating, i'm going to sit back and listen right, and so Then i'll go okay! Well, let me share with you really quick, so tom, you said that you and kathy need to actually maintain a specified monthly payment to be able to actually afford this home. Is that correct right? So what i'm setting up is they cannot at that point, go above that payment right, because a lot of the close leading into this says you need to stay at the you know assumes that they need to stand a certain monthly payment and i'll say well, here's What scares me tom, every one percent increase in rates, affects your affordability by 10.

Can i explain, please sure, well um rates. If rates go up, one percent right, then you have 10 less affordability. That means tom you and kathy looking at this 400 000 home. Now, if you want to maintain your existing down payment right - and you also want to keep your current monthly payment at the point that you and your loan officer have calculated, that would mean we can.

No longer look at 400 000 homes we have to drop down to 360 000 homes and you already weren't finding what it is that you wanted at 400.. Is that correct tom? That's, correct, okay, good! So, really the longer that you wait right, uh the higher the probability that rates go up and what scares me worse, tom is: do you know what the the fed has projected will happen in 2022 when it comes to interest rates? No they've projected that there's gon na be a one percent increase in rates uh up to at least four percent by q4 of 2022.. Now tom, that's not going to happen overnight. It's going to gradually happen a little bit in a little bit and a little bit in a little bit so every minute that you wait every month that you wait right, we're not aggressive with our offers.

That means that you're losing more less than less house or you're having to pay more for the same house. Now you don't want that. Do you no okay, so i love that script bill and i think to myself boy. How great would that be? In your buyer? Consultation.

100. Right again, you said something earlier: it's it's so on point. I want to make sure that everybody understands you can't close on someone that isn't motivated or educated to move forward. That's right! So the primary goal here is to be the educator to find out what they understand and then provide more insight, more data, more hyper local market expert knowledge.

So i love that - and i love the piece around just that one percent increase in an interest rate basically takes 10 of your buying power away. That's right and then the last little bit is um. Then you hit them with and what's even more challenging. Tom is this: do you know what uh homes are expected to appreciate in our marketplace and annually over the course this next year right and then that that's it? That number varies depending upon market to market? You would need to know that i think the the blended average right now is somewhere around 6.7.

I think you know, although you've got certain people projecting higher certain people projecting lower, but i think the average of the the five major uh individuals that we utilize to track and measure that with kcm have come in at 6.7 to 7. So now i'm going to say in addition to you losing that 10 affordability prices are also going up and you're missing the opportunity to increase your equity. So really it's a double-edged sword for you right now, tom. We really can't stand to wait.

Can we i love it, i love it bill. This is gon na be one of those shows that i can already imagine someone's gon na watch this five six seven times so as we wrap this up. I just want to say thank you for all that you do and you know the work with sales edge and marketing edge and the new combination coming out 2022 all right bill, closing thoughts before we uh we get everybody out of here. Um educate your fur yourself.

First, so you can educate others um and then, as with anything repetition, is the mother of skill. The more that you have the opportunity to be able to drill down these basic fundamental sound bites the easier it's going to be for you to sound natural to be confident and that knowledge will create more confidence, not just in yourself, but also from the other person That you're speaking to as well too that's like a mic drop moment. Ladies and gentlemen, all right confidence and conversion show bill pipes. We're out, see you soon.

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