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Key Factors RealEstateAF
Educational Podcast for Consumers, Mortgage & Real Estate Industry Professionals. We'll Talk About It All! Key Factors podcast, powered by https://ReviewMyMortgage.com . Your Host Mark Jones invites Industry Pros to help uncover & educate on the key factors of various topics. There’s something for everyone so let us be your guides and get educated. Subscribe & Follow on Spotify, Apple Podcast, Facebook, Instagram, & all other podcasting platforms. Host : Mark A Jones Founder of ReviewMyMortgage.comProducing Branch MangerSr. Loan Officer. NMLS ID# 513437NMLS Consumer Access: http://www.nmlsconsumeraccess.org/Powered by ReviewMyMortgage.com
Key Factors RealEstateAF
Buyer Representation in Real Estate | Out with the Old in with the Same
What if you could transform your real estate career by learning from the best? In this episode, we meet Carlos Kabzawa and Chris Jacobs, the powerhouse real estate agents who have successfully transitioned from military service and extensive sales backgrounds to dominating the real estate market. They share the mission behind their new venture, "Just One More Podcast," which aims to shed light on topics beyond real estate, from supporting veterans and first responders to promoting local businesses in San Antonio. Their stories are not just motivational but also packed with practical advice on how mindset and effort play crucial roles in overcoming market challenges.
Navigating today's real estate market can be tricky, but Carlos and Chris are here to demystify it for us. We delve into the nitty-gritty of pricing homes realistically, understanding the true value of properties, and the nuances between median sales prices and actual home values. With interest rates hovering around 6.8%, the duo discusses strategic marketing and buyer hesitancy, emphasizing the need for realistic pricing. They offer invaluable insights into ongoing market corrections and the importance of strategic planning for both buyers and sellers to thrive.
Lastly, we explore the critical aspects of buyer representation agreements and the expertise required to navigate these complex contracts. Carlos and Chris highlight the importance of clear communication and mentoring in the real estate industry, stressing the value of building lasting relationships over mere transactions. From understanding the financial intricacies to mastering the art of negotiation, this episode is a goldmine of knowledge for anyone involved in real estate. Tune in for expert advice, personal stories, and actionable strategies that can elevate your real estate game.
Key Factors Podcast is Powered by ReviewMyMortgage.com
Host: Mark Jones | Sr. Loan Officer | NMLS# 513437
If you would like to work with Mark on your next home purchase or as a partner visit iThink Mortgage.
Welcome back to another episode of Key Factors Podcast, real Estate AF. I am your host, mark Jones, and we are powered by ReviewMyMortgagecom, the largest index of mortgage programs in the nation, and on today's discussion, we want to talk about some current events. We want to talk about some new changes that are in effect already, and I brought along two friends to join me, two top producing agents that are changing the game of real estate. So, without further ado, I would like to introduce Carlos Kabzawa and Chris Jacobs. How y'all doing Pretty good, yeah. So these gentlemen here have a podcast that they recently launched, called Just One More Podcast, and it's a matter of fact. I'll let you guys talk about it. What is this podcast about, guys?
Speaker 1:So we basically started it about what three or four months ago? Yeah, the initial plan was not be so real estate heavy but just talk about real life stuff. But obviously, be an agent, a lot of the contacts we have is in the real estate industry, so it did turn pretty real estate heavy. We, we do a lot of different content with, you know, mortgage guys. We do. We've had, um property managers on there. Shane Neal came on, um, you know we we've had some really good guests. You know, some producing agents on the team, recruiting agents on the team, uh. And then just recently we wrapped up one that's going to be posted here in a couple of days from a veterans organization and first responders called Frontline Strong and it's a really emotionally charged episode talking about veterans awareness, veterans suicide, first responder suicide, stuff like that.
Speaker 3:Yeah, ultimately we're just trying to get different people from different businesses, different local businesses and stuff like that together. Put them on our podcast, not just real estate. We don't want to focus just on that, because that'll get boring. Yeah, absolutely, we'll stop listening and people hate the market. Right now.
Speaker 2:We're just trying to get people from the local area on our podcast and really put San Antonio on the map and that's a pretty cool take on a podcast because, like you said, I mean this one we mostly talk about real estate, but we also talk about entrepreneur, we talk about different current events, we talk about all kinds of different things, but it does center around real estate and, with you guys, you're bringing in some topics that would gain a different audience and it's definitely conversations that are needed in San Antonio and surrounding. You know. Hopefully you guys will continue to stay on that, because consistency is the key with everything, even more so when it comes to podcasting and gaining an audience. I know firsthand. We've been doing this for about two and a half years and the channel's just recently growing.
Speaker 2:So thank you to all that are liking, subscribing, sharing the episodes, consuming them. That's why we continue to bring you guys some fire guests with different takes, different opinions, different perspectives, so that it's not I don't know 100% bias in one way or another. That being the case, we've got some stuff to talk about today, guys. So if we could, before we start, carlos, we've never had you on the show, chris, you've been here before, but this is the time if you could just tell us, kind of, how you got into the business and how you're doing in it and all that jazz.
Speaker 3:So I'll start again. My name is Carlos. I'm originally from a small town, pearsall, texas. I'm familiar with where that's at. So I left to the military pretty much after well a year after graduating from high school and after the military I came back here. I didn't know what I wanted to do. I was kind of talking to you earlier. I was in college for like 15 years, so while I was doing that I decided to get my real estate license, kind of part time. I started doing it and honestly fell in love with it. I really just have a passion for helping people. I'm doing pretty well right now. I'm doing 25, 30 deals a year. This year I'm already pacing to do more than that. Everybody says it's a down market, but I think it's really about what you're doing, what you're putting into it market share, uh. But overall I've been on the team. I'm the Neil and Neil team for uh. This is my fourth year.
Speaker 2:Okay.
Speaker 3:And um, yeah, I'm just want to continue, uh, helping as many families as I can, that's awesome.
Speaker 2:That is awesome and and kind of like you mentioned. You mentioned we're in a down market. Yes, we are, but at the same time, real estate, in my opinion, is still what you put into it, you will get out of it. So the harder you work, the more people that you help. It will continue to spread. So it's obvious that you're down in the trenches doing what you can to help as many people as possible. You know.
Speaker 3:Yeah, I just want to throw this on there. So like, when I say down market, I think it's people's mindsets, realtors' mindsets, that is down market. Yeah, our team is actually on pace to do probably its best year. That's awesome. That is awesome In a down market.
Speaker 2:Yeah, that's awesome. Yeah, finding the niche, the need that people are out there, that is necessary. You know, people still have to buy homes, they still have to move, all that jazz. So, chris, how about you, man?
Speaker 1:Just look, I'm total pole team. Going into my eighth year of real estate, of 16 years in sales. I'm on pace to have my best year ever, you said. I mean you put into the work, that's what you're going to get out of it.
Speaker 1:I think a lot of agents that are struggling is training. They don't have the training, they don't want the training. They came into it when the market was great. Or they're old school and they just have that old school mentality because this market ain't much different than it was six, seven, eight years ago when I got into the game. It's, I mean, interest rates aren't that different, right, you have far more options now to get lower rates on buy downs, stuff like that. So I mean, I come from a small town, I do really good in that town, but I, I, I, I try to tell everybody on the team, you know, I do, you know 25 to 30 million a year. I tell everybody, everybody on the team, don't pigeonhole yourself to one area, right, because if that's all you're going to do, there's only so much you can sell in that one area. And everybody knows everybody's aunt and sister and cousins are realtors. So you got to be willing to go out and hit different spots, check out different areas and be able to work different areas too.
Speaker 2:That's very true and and I kind of want to hone in on that concept for just a moment the idea of finding your audience or your sphere of influence or your demographic, that you're going to be helping newer to the business agents have this mindset of this is who I'm going to be helping and that's who I'm going to go seek out, and then, when that audience isn't buying, they're kind of disappointed when it should be. I'm going to help anybody I possibly can. That fits the criteria of buying a home, selling a home, et cetera, that needs my advice as a new agent that has a great broker support behind them, et cetera. But for you guys, I would imagine that you're seeking the spider web effect, so to speak, that we as mortgage real estate professionals seek out. When we help a person, they tell more people and then it starts to spider web out. So I mean all the folks out there that are listening to this and wondering why you're not doing deals at the moment. Maybe broaden your horizons, look under rocks, shake up some stuff, but there is definitely folks out there that need the assistance.
Speaker 2:Now, real quick, I wanted to jump on some of the current stats that are out there and we can digest this real quick before we go into a main topic that I wanted to discuss, which later in the podcast. Guys, I wanted to talk about the actual new buyer's representation agreement that came out, but for the time being let's go through the San Antonio housing stats. Jc, if you could throw up that reference, good deal. So we've got here that the median sales price and this is year over year median sales price has come down three and a half percent. I'm going to stop there and let you guys tell me why that is the case. What?
Speaker 3:are your thoughts? So I personally think that there's a lot of investors buying right now. And what do investors buy? Homes to flip, homes that are sitting in the market for a long time. So they're making low ball offers and there's definitely more homes still rising in price. But there's way more investors in the market right now buying all these small priced homes, which is going to, of course, drop that overall market value. That's at least my thought on it.
Speaker 1:Go ahead, jake. I think it's a combination of things. I think it's a scared market. People you keep hearing about, oh, the market's going to crash. It ain't crashing, um, but you, you're still people.
Speaker 1:You got people going into this mindset of I'm going to price my house, I guess, 2021 or 2022. Very good, it's just not. It's not realistic. I mean, rates are 6.8 ish, I think, somewhere. Their market rate. That's just not a rate that everybody's jumping into real estate. You got to be realistic about how you're pricing these houses.
Speaker 1:I'm very heavy on the listing side and so when I look at a house, you're pricing a house more often than not. If you're going into with the mindset I'm going to price higher, it's going to sit longer and the longer it sits, the less you're going to get for it. That's just going to drive that number down too. But if you look at the stats, I mean go back two, three years ago. We're right on target with what it was two, three years ago, when the market was heating up. So is it down? Yeah, from last year, but go to the year before that.
Speaker 1:I mean you can't look at it in a bubble. You can't look at. Oh, this is just, it's like sports. I can inflate numbers and stats to meet any. That's right. Any mindset that I want to meet any, you know, take on anything. But if you go back and you look over the course of time, we're right there. Market corrected a little bit. It made it right so you don't have the influx of overpaying. But you go on shift talk or any of these other platforms and listen to people talk.
Speaker 2:They're still getting multiple offers.
Speaker 1:Oh, that's right. They're still getting multiple offers. You still got a lot of buyers out there. The buy down options really help, but then you go and you talk to your grandpa, your dad. It's doomsday.
Speaker 3:Don't buy, wait till the market crashes.
Speaker 1:Good luck, because what happens when rates go down?
Speaker 2:You're going to have a shit ton of buyers jumping into the market that there's still, in my opinion, not enough inventory for to fulfill if they all jumped in at once, and that's what will happen if rates drop too quickly. One thing that I wanted to make note of is this is median sales price. So in my opinion, like you said, statistics can sway any which way you present them. So are values going down? No, just the sales prices are going down, and I think you touched on it.
Speaker 2:In my opinion, it's a correction for the homeowners that are in the process of selling their home that can't get over the sentimental and the recent historic home prices that were around the area. It's just not the same market and a good place to start with. That is the idea of you're not necessarily selling the house at that price. You're selling the house for this payment, and I think a lot of sellers don't relate to that idea or that concept when they're pricing their homes, because they're just looking at what's going in their pocket, based on what their buddy sold last year or the year before. That's just something that's a little, a bit nuanced, but yeah, you can dive into it and skin it any which way you want, I mean go back five years and see what those numbers look like.
Speaker 2:Yeah, let's see here. Yeah, I mean, we're right, it's still trending upwards.
Speaker 1:Last year, san Antonio, we had somewhere around eight and a half percent appreciation. Yep we were normally six and a half seven percent. You're still seeing values going up. Yep appreciation we were normally six and a half 7%. You're still seeing values going up. You're still seeing people sell for extraordinary amounts of money. It's all in how you price the property and market it.
Speaker 2:That's exactly right. And on here it's saying that year over year, number of homes sold has gone down. What do you attribute that to, guys? Obviously you can see from this graph down below that it is constantly, and matter of fact. Let me move it up so those can see. It's all over the place. Um, now we are in the summer months to where it's supposed to be super strong most of the time. Um, and I'm not seeing that push for buyers jumping into the market. Um, do you think that it is the idea that they are still scared, they are fearful of the unknown, or they're waiting for stuff to drop? What do you think that that is attributed to? Because we know that the buyers are there.
Speaker 3:Yeah, I was going to say, I think that all I hear all the time is, oh, we're going to wait until prices get better and I'm like're going to wait till prices get better and I'm like prices are not going to get better, right, like, what you got is it's probably the best time to buy right now. Yeah, because you're. Yes, there are some multiple offers because some agents are pricing their houses right, right, but for the majority of homes they're sitting there, average days of market is through the roof, right now I think it's like 45 days, 46 days on the market right there.
Speaker 3:Boom. So if I were buying right now, I would be looking at these houses and like, okay, we know they're overpriced, let's go ahead and make a great offer and get a good deal on a home right now. But most buyers are scared and waiting for prices to come down, which it's not going to happen.
Speaker 2:But even prospectively putting it in terms of the buyer and their situation, even if prices come down, it's not going to miraculously make their payments drop to where they think that it's going to be. So the idea of I'm going to wait till the prices drop, how does that equate in your payment? Because every $10,000 isn't much off of your payment in itself. I mean, you've got taxes, you've got insurance sometimes mortgage insurance that doesn't affect your payment much, like 60 bucks, maybe, you know, depending on the price of the home. Correct, and in many cases you articulate that to them. But there are stronger forces out there that are telling them to wait, wait, wait, and most of it is media. Don't know why, but that is the case In many instances grandma, grandpa, mom and dad who already have their home paid off. That doesn't really relate to this market. They'll talk about their interest rates when they first bought, but then they go back to the idea of wait for property values to drop. Like what are we talking about? That's kind of contradictory.
Speaker 1:I think you hit it with one of them. I think the other side of this, too, you're an electioneer, yeah, and this is probably one of the most hostile election years we've ever seen. It is, it is Hands down. That, I, I think, plays a role in it. Yeah, uh, I think lack of training and education on the agent and mortgage side for sure, uh, as a big part of it. Not knowing how to explain it to them, not knowing how to break it down to them, not showing them.
Speaker 1:It's funny because you sent a text message out to a client of mine on a group text not too long ago and you said something to them that I've been preaching for seven years. Why put more money down, trying to drive a payment down, when you can use that money to pay off the existing debt and increase the amount of money you have while taking on a mortgage? Correct. And the amount of money you put down won't impact your mortgage as much as it will if you just get rid of a $600 truck payment, correct, or a $500 car payment? Yeah, like it's just trying to be more creative in how to make it easier to do. And then you have the Dave Ramsey's types of the world where sure Eliminate your debt, eliminate needless debt cars trucks, and that has to do with habits, uh, our habits as humans, et cetera, uh, consumer, so to speak.
Speaker 2:And that's a harder thing to change than relieving the debt or getting them to understand the idea of moving this from one place to another. Now I will say that had I sent that text message without showing them prior to, they wouldn't have understood. They would not have understood Number one. They may not have even believed me, because seeing is believing. So, with every customer and I hope that other lenders out there are doing the same thing jump on a zoom, call, share your screen, go over different scenarios so that they can see it for themselves, and do the math, do the hard work so that you yourself can be considered an expert.
Speaker 2:Um, the idea behind getting creative. I don't know if I like that anymore after this year, because there's a lot of folks saying get creative, creative, creative, creative guys. That sounds kind of shady in a certain aspect. I'd rather just be the expert and be able to see the whole picture and then go okay, here is where your money's going. This is the logical next step to relieve that debt. That then makes room for this higher than what you expected payment, not higher than everybody else.
Speaker 2:But what you anticipated it was going to be is not that, because you still had the mentality that we were in 2020, 2021, et cetera. So, now that we're not, you've got to make a shift and I guess there aren't enough lenders out there that are educating them and spending the time to do that, whereas 2020, 2021, 2022, nobody had the time to do that. I'll be honest, it was burn and turn Next, next, next, and everybody could be seen as the expert because rates were so low. And in this market, I believe very strongly that experts will prevail, oh, 100%. And don't take me wrong when I say creative. I'm very strongly that experts will prevail, oh 100%.
Speaker 1:And don't take me wrong when I say creative, I'm not talking about the lending side. No, I'm not, Because you are the expert. Agents have to be more creative in how they explain it 100% and break it down so that when they go to the lender and the lender can show them the numbers, they can say holy shit, that agent, they were onto something.
Speaker 2:It's providing that value to that client. That makes perfect sense. Let's see. Is there any other stats on here that we can go over and kind of dissect? I don't really trust in this hot or not situation here. Sale to list price. So basically, what is that? 2.9% of the homes are not meeting the sales price. So what that tells me is many are still selling at the higher price, mind you, 3% or so and what we are seeing is sellers keeping their sales prices higher and contributing in the form of closing costs.
Speaker 1:That's why that number is so deceiving? Because the money is coming out of the closing costs. That's right, and that doesn't reflect in the sales price and I think that's going to be, that is going to be the basically the pro forma moving forward, yeah, and that's. And the sellers have to understand that it's not about the gross, it's about the net, correct? And so when you look at that, it's much lower than that. You're probably talking somewhere around 88% when you look at the total net, because the amount of sales, the seller concessions right now are averaging somewhere around $8,500. I mean, that's just that's a deceiving number. So it's not much different than like. More often than not, most houses don't sell for what they list at. It's just the nature of the game, cause everybody wants a deal, everybody wants to negotiate. Typically, sellers want to sell a little higher because they know they're going to get negotiated down. You have to anticipate those closing costs too and build that into that, correct?
Speaker 2:And what we're seeing a lot of is having to take the time to educate the buyer on the concept of, instead of asking for money off the price and it kind of goes back to what we were talking about a minute ago get it from the sellers in closing costs. Because if you look at it, all they care about is the bottom line. You're going to go hit them with taking money off the sales price and then ask for closing costs. Well, this is really what you're offering them guys, and I don't think enough agents I'll say it now are educating them day one on how that concept works. Because if they're already at the point of the lender explaining it, it's like well, why didn't my agent tell me this? And in many cases, like your buyer's situation, they understood that concept like that. I know you had had the conversation with them because it was easy for them to grasp that idea. Many out there are not. So therefore, it's like an additional hurdle that lenders, buyers, agents and listing agents are having to overcome when accepting these offers. Let's see here Homes sold above list still 14%. I mean that's not bad. It's less than what it was last year, but again we're in a different market. Homes with price drops 41% of them. We know why that is. I mean they shot too high. They say if you shoot for the moon, you'll land amongst the stars, something like that.
Speaker 2:This is pretty interesting. This is showing us where all the people are moving from to San Antonio. We've got people from LA that are making searches. You've got people from Florida. You've got people from up A that are making searches. You've got people from Florida. You've got people from up in what is that? Oregon? But they're still flocking here, whether it be political reasons, cost of living reasons, all of these places that they're coming from, mind you, florida. Matter of fact, florida is still kind of expensive. When you look at grand scheme, texas is pretty affordable. San Antonio is even more affordable to all. You've still got companies moving here setting up shop. Now Austin is one that. What do you guys think about that? What do you guys think about Austin market? I don't play around in it much. Every once in a while I'll get a contract. They're typically larger homes, larger loans, but for the most part, I'm seeing a lot of development still going on out there Developers aren't done, I mean they're never going to be done especially now, when they can get dirt a little bit cheaper.
Speaker 1:Yeah, it's funny because you look at that and those are just searches, correct, those aren't actually closed transactions. Everybody's looking. But if you look at there was an article came out in San Antonio business journal I guess it was about a year ago. Most of the buyers in Texas weren't from California, florida. Wherever they were from Texas, that's from here. That's right. People were saying, hey, I'm going to capitalize on my equity and I'm going to upgrade my house. Covid created a shortcoming and a push to go into pools, outdoor patios, outdoor living spaces. That was the big run and that's where you see most of your buyers that came into the San Antonio market in general were coming from San Antonio, coming from their area, because they wanted to upgrade. That's right.
Speaker 2:They were either wanting to upgrade or for good six months. In the past six months, half of our buyer buyers that we've been working with are already homeowners that pulled money out and went and bought an investment property or vacation home because they understood the concept of owning real estate. I don't care about that rate, we'll refinance it later. We can understand and come to terms with the current payment, no big deal. We understand that the real estate is going up regardless. We just have to hold it long or longer. How do they know that? Well, they've seen it happen with their current property and the idea behind these. First time homebuyers have never had that tangible asset, so to speak, to be able to gauge it off of. They're just going on what they've seen in the last three or four years.
Speaker 3:It's tough One of the most common buyers I'm getting right now is someone who bought in 2020, 2021, and they do not like their current home. They bought because they had to buy it. In a weekend, they bought a new build and they absolutely hate it and we're trying to put them on the market, compete against the new builds, making it really difficult.
Speaker 2:So would you tell us more about that? Because I talk about it quite often with buyers that are looking in the market and they see the enticing low rates for these new homes. But the situation that I bring up is literally the one that you're talking about right now, to where you really find out what your true value of the home is when you decide to sell it.
Speaker 3:Yeah. So I get a lot again, a lot of these people who six months in, nine months in, they start having issues with the homes again because these builders just threw the house up. Essentially he works a lot more of custom builders so he put more effort into them. I say, but these builders that just throw up a house in two months, three months, those are just really poor quality and at the end of the day, yes, you're not having to put a lot of money down.
Speaker 3:I do work with a lot of VA buyers so some of them get in-house with nothing down, which again is very enticing. But a lot of the VA buyers try to resell that home and they have no equity because they didn't put anything down. Matter of fact, they're upside down Exactly In most cases. I've had maybe about three or four this year where they were completely upside down. They bought solar panels. They're upside down and they owe $30,000 on solar panels. You can't sell the house. You, they're upside down and they owe $30,000 in solar panels. You can't sell the house Right, like you can't, unfortunately, some of these PCS and they leave and they literally can't. They're stuck with the house. I actually have two listings right now that have solar panels.
Speaker 2:I'm like yeah, I mean. And the idea behind? I guess it's perception versus reality. The idea behind are you stuck with the house or do you have an asset that you now need to figure out how to get it paid for? And how long do you have to hold it before you actually start making money on this thing? Because I educate veteran buyers all day long on the idea of building an empire. They themselves have a leg up on everybody else buying because of their entitlements and in many cases, some are disabled more than 30% to where they don't have the funding fee. Matter of fact, let's look at what today's tech vet rate is.
Speaker 2:Many lenders don't offer this. I don't know why. I do know why you don't make much money as a lender on these loans, but they are what's best for the current customer at the time. So, for example, today's at six point six. It has gone up since the last time I looked at this. I locked somebody at five point nine, five on Thursday of last week. So if they are more than 30 percent disabled or more, they get this six point one rate, which everybody else in the market is looking at a 7% rate and paying points just to get there. So yeah, I mean that is a great topic in itself. So you guys have anything else on San Antonio's market and what's going on before we get into this next topic?
Speaker 1:Yeah, let's stop making veterans or stop selling new homes to veterans. I've preached this since day one as a veteran. When you go, you have to understand the development market a little bit, and I deal with quite a few developers. If you sell a veteran a home in a new community, to me and this is my opinion, and it could be a bad one You're doing that veteran a disservice, especially if they're active duty I'm sorry, not veterans, active duty, military because it takes seven years roughly to develop an entire community and that's build out to finish out, start up to finish out. You're talking five, six, seven, 800 units and if you buy it with 200 units built for the next five years, that person is competing with new construction. You'll never beat new construction. You'll never have a better margin. New construction because they don't care if they take a loss. Right, it's about branding and marketing and volume. They'll make seven, $8,000 a house. Respect, custom home builder probably turn in between 30 and $70,000 a house. So they so when they go to get PCS, they get orders. They immediately think, okay, I'm going to sell my house. Okay, well, now it won't sell. Now you got to rent it out. Okay, cool, that rent is going to pay that payment. That's fine.
Speaker 1:Well, what happens when that renter moves out and you've already bought something else somewhere else? Or? Or you a lot of them think they're going to go and they're going to stay on base when they go to the next duty station and they're going to rent their house out. Well, guess what? You lose your BAH and BAS. Yeah, once you lose that, you no longer have that allowance, right?
Speaker 1:That renter moves out, you're responsible for that payment. Trust me I was in the military. They don't pay you very much. They'll feed you and they'll house you. They don't pay you very much, right? So you're, you're setting them up in, jump on these opportunities because zero down, no funding fee for some disabled veterans that are not in the military. But when you break it down, you look at what they're actually getting. You're getting no equity. You're going in upside down technically, but they get. The agents are going to get fat ass commission check. The buyer is going to be able to walk into that house with no money down and they're going to get an interest rate that's say, 5.9, 5.8, whatever it is, if you buy it down, because they're giving all the incentives and they get to all these improvements and the builders paying for that. You really think the builders losing anything?
Speaker 2:on that no, no, they don't care. Yeah, all that money they're giving is in the sales price in itself and the idea behind the five to seven years, that's if they don't bust out and buy another section and start building a road that goes even further in the neighborhood. There you go. We see it all the time. The neighborhood's complete. Now all of a sudden, they're building a luxury development that goes past all of that. It's like whoa.
Speaker 1:now you have to compete with that, and that's why representation matters.
Speaker 2:I agree 100%. And now let's talk about some representation. So there was a situation over the weekend to where my wife, who is a realtor, received a potential offer on a property that she has listed and was anticipating. The offer didn't come in simply because the buyer was unwilling to sign the new buyer's representation agreement that just came out. What was it? The 24th, uh, something like that. Um, and they JC if you could, uh, throw this up there. Uh, this is the reason that they gave and let me see if I can bring it closer there you go. So they sent it out DocuSign or whatever it was, dotloop or whatever it is, and the buyer refused to sign it and it says buyer rep docs. I'm sorry, but I cannot sign this contract as I believe some of the conditions are unreasonable in favor of the buyer's agent, and what they were mentioning to this agent is we feel as though if we go through this process and, for whatever reason out of our control, the home does not close, then we're still going to owe you 3% and I'm like well, can you send me that buyer's rep so I can go through it and see what the heck's going on. So in this, let me pop this down. This is the new verbiage of that buyer's rep agreement and we'll look at the old one here in just a bit.
Speaker 2:But broker compensation or the sharing of compensation between brokers is not set by law, nor fixed, controlled, recommended or suggested by the Association of Realtors, mls or any listing service. Broker compensation is fully negotiable. Brokers independently determine their fee. Broker is prohibited from receiving compensation from the broker service from any source that exceeds the amount stated in the agreement. So the broker fee, when earned and payable, clients will pay the broker. Completed a percentage, et cetera, and for a lease, et cetera. Source of compensation broker will seek to obtain payments of the fee specified in paragraph 7a, first from the sellers, landlord or their agent. Such person refuses to fail to pay the broker. The amount specified client will pay broker and the amount specified less any amount broker receives from such person.
Speaker 2:What are your thoughts on that? You can go back to us now. What are y'all's thoughts on that? Because in this situation, now what are y'all's thoughts on that? Because in this situation, one, the buyer was presented this right before making the offer. So I think that they messed up by doing it that way instead of explaining it up front. But two is the verbiage of this one as opposed to the old, that much different that it makes buyers hesitate.
Speaker 3:I think it's again goes back to, at the end of the day, the agent educating the buyer. Yeah, because you shouldn't be just sending this to the buyer and have them sign it and that's it. You should be going over it with them. Break it down Like this is what it actually means. It doesn't necessarily mean you got to pay me, no matter what. It just means hey, we're going to seek compensation from the sellers first, which nine times out of 10, that is the way it happens but for some reason they don't pay. Then its next step would be the buyer. Now, that will be all negotiated up front and you would know that completely before we even see any housing Right. Now, that will be all negotiated up front and you will know that completely before we even see any houses. Correct, and at the end of the day, it's just breaking it down specifically for that person to make sure they clearly understand.
Speaker 2:Yeah.
Speaker 3:And a lot of agents, I'll be honest, that got in the business the last like three years. I mean you could walk in, show a house, go under contract. I mean you could walk in, show a house, go under contract. So they're just not educated enough to know how to actually have a buyer consultation or go over, like all the buyer's needs, make sure that they understand the process of actually buying a home. So I feel like a lot of, like you said, a lot of experts are going to thrive in this market and a lot of these people are part-time agents. Right, they're going to either have to get educated or they might be wiped out of this market, right?
Speaker 2:I mean, in this case scenario, is it not the contract and what's on there that trumps all? I mean, if they are signing something that says this 3% is going to be paid from the sellers, etc. This 3% is going to be paid from the sellers, et cetera, what cases I mean? If the deal doesn't close, are they able to go after them? Do you guys understand that part? Because that, to me, is where I was like what, like I wouldn't sign that either. If that is the case and it's not super clear, but at the same time, what is defined? Because right here I see where was it.
Speaker 3:Right there where it says when earned and payable. There you go.
Speaker 2:Earned and payable is literally what I was looking for. So what is considered earned? Is it finding the home, writing the contract, getting them there, or is it getting them all the way to the finish line? And I think maybe they should define that a little bit. I don't know.
Speaker 1:So this situation infuriates me because this is our fault. This is our fault as agents. One, it's a lack of education. Two, I don't know this agent from Adam, so I can't speak to the experience. What she explained to the buyers the contract is clear. I said this when I was on here with Jeff Garza not that long ago Everything you need to know about real estate is in a Texas real estate contract. And could Trek, could NAR, har, sabre, whoever have made this a little more less Easier digestible? Yeah, then maybe we weren't having this conversation.
Speaker 1:But earned and payable means closed. Okay, that's, that's what it means. It means closed, yeah, so you know. And and I don't necessarily agree with, I do not agree with giving the buyers this representation early. Okay, you explain it early, but I don't have my buyer sign this until I'm ready to write a contract, because at that point I know what I'm walking into. Now I know the rule is going to be. I believe that you have to give it to them upfront.
Speaker 1:Here's where it makes things convoluted. If a seller is not willing to pay compensation, that buyer is responsible for it. Well, that's not realistic. It's not going to work out that way. We've already talked about this, but in this situation it should have been explained right off the bat. Just want to let you know the seller is offering 3% compensation. They're going to take care of your compensation. So when it says when earned and payable, that means that closing. So, just so you know you're already taken care of here on the contract it shows 3% from the seller. It's on the contract. That trumps everything. The contract is the contract. So that, I think, would have I think, hopefully resolved a lot of this. It, I think, hopefully resolved a lot of this.
Speaker 1:It was it's not clear on there what earned and payable means, even though we know what it means on the contract. It also doesn't make it clear who is paying the compensation. It doesn't say, oh, if the seller pays this, you are not responsible, right? Because and it says the difference there is no difference, right? The percentages on the contract. That's what the agent is making and the agent has to understand that this buyer's representation agreement is no different than the other one. It just clouds the waters a little bit more by putting this, this language, in there to try and make it more clear. It's not more clear, it makes it even worse. So I would have approached this very differently and, again, I don't know how this agent approached it, but I would approach it from the perspective of just so you know, we got the contract ready to go.
Speaker 1:Here's your buyers of agreement. I know you see this part in broker compensation, but look, I'm being compensated, you don't have to worry about this. This is taken care of. It's on MLS and if it's on MLS, that is what is being paid, right. If it's 2%, 1%, 1, I don't care, that's what you're making. This is the only business in the world where you can go from showing to closing and not get paid until it closes in funds, that's right. The only business where you don't get paid until after the job is done, meaning they can work with you, they can do all this stuff, put all this time in, and you may not get paid if it doesn't close, right.
Speaker 1:That's where you got to be very, very clear as an agent and there was some other information about this, with the broker being involved in this. This broker failed this agent so badly because you don't ever try to go to a buyer and say, well, you owe me, it didn't close. That's your job. Your job is to get them to the closing table Absolutely, and for a broker to ever insinuate that a buyer's responsible for paying me compensation. No right, I'm not doing that.
Speaker 1:So there is so many downfalls to how this process went down that it just man. I bet that buyer just got such a bad taste in their mouth. But there was another solution to this that you could have approached it from. You could have approached it from hey listing agent. Look, here's my buyer's contact information. They don't want to work with a buyer's agent because of this situation. Why don't we work up a referral agreement for 50% of the commission, or 40%, since the buyer, the listing agent, is going to have to do all the work? Put the buyer under a non-representation agreement, if your broker allows for that, which most of them do. As long as they sign a non-representation agreement, let the listing agent close the deal, pay them a referral fee Pretty smart.
Speaker 2:Pretty smart, and you would think that this type of pushback is coming from the listing side of things and the understanding of how and what they're going to pay, but it's not. So that leads me to believe that, yes, it was probably mishandled up front in that process. But is this going to be an issue moving forward with plenty of other buyers that take the time to read what they're signing, because a lot of times they just sign and they move on? I mean 99% of the times, just like at closing, we go to the closing table and most of the time it's only the veterans that are reading their documents. Everybody else is. When do I get the keys?
Speaker 1:You know you get an email with 47 documents. You're like correct, but is it going to be an issue moving forward? Yeah, maybe a little bit, but if you are educated and you pay attention to the contract, you read through your buyer's rep, you read through your listing rep. No, it shouldn't be an issue. It's the exact same buyer's representation agreement. They're just putting more specificity in the actual.
Speaker 2:In the section seven we do have a copy of the old that I want to bring up, okay. So, matter of fact, look at this earned and payable broker's fees are earned. So right here. This is, I believe, the addition to that document, and I was thinking that it wasn't there, but it is earned and payable. Broker's fees are earned when the client enters into a contract to acquire a property in the market area during the terms. Broker fees are payable either during the terms or after it ends, upon the earlier the closing of the transaction acquire of the property that we're talking about Client's breach of the contract to acquire the property in the market area. Closing means the date of legal title to the property is conveyed to the client or the date of the client's entering binding lease. This is from the new one.
Speaker 1:Yeah, this is number two is where you're going to create so many problems because I don't care. I am not chasing a buyer down for commission If they back out of this deal and they terminate the contract. What am I going to gain from that? How much money and time am I going to lose chasing a compensation from a buyer that clearly is not going to be able to pay it? Right?
Speaker 2:And I don't disagree with you, matter of fact, I totally agree with you. But I think, from where this buyer stood and I don't know if he's an attorney or anything like that is seeing that going. Well, wait a minute. What now would I do to breach the contract? There are no list of things that deem me breachable in that aspect.
Speaker 1:And can even the agent explain what breaching the contract means? Good point, I mean good point. What does that mean? Terminate during the HOA period. You terminate during the finance period. You terminate right before closing. Okay, good luck, good luck. Yeah, name a broker. Name a broker that's going to let their E&O go after that buyer. Nobody, it's not going to happen. No, the legal fees will be the same amount as the commission, or more.
Speaker 1:This this and I think Now that's logic, yeah, yeah, but I think my opinion, at some point they're going to start, this is going to change, this is going to evolve.
Speaker 2:I think so I think they're going. What we're looking at right now, it almost has to change because, yeah, number two in that aspect, you go wait a minute. As a buyer. What number one? What will make me breach this contract? At least give me that, because you're making it broad and I'm signing promulgated forms but at the same time, I don't know what it takes to breach. I mean, is the buyer's agent going to go over each one of those potential things.
Speaker 1:Your job as an agent is to understand the contract and break the contract down to your buyer. Again, this is our fault. We did this. We created this bullshit situation. So if you're not explaining the contract, how the hell are you going to go after the buyer for breach of contract?
Speaker 2:You're going. It's very similar to what we've experienced on the lending side when the truth in lending came out and TILA and all these different forms, the CD, the closing disclosure that changed from the HUD and everything else that was supposed to make it more clear for the buyers to understand, and all it did was add mud to the waters. I'd like to look and see if this section is even in there. On the previous version of this. Let's pull that up, jc, if you would. Boom, boom. So this is the previous version. Matter of fact, let me pop that. This is the current version.
Speaker 1:This is the current version Because the new one is not. As far as I know, it has not been implemented yet.
Speaker 3:It's not until August 17th.
Speaker 2:There you go, august 17th. It was released on the 24th, so you could possibly get it going.
Speaker 1:That was the first failure of that previous agent by their brokerage allowing that document to go out. Ah, good point.
Speaker 2:Because it's not necessary.
Speaker 1:Why put something?
Speaker 2:out there. That's a good point and maybe that is something that they can talk about to maybe regain this, especially if it's not in this. So you sent me this and this is the previous one. The definitions are the following Acquire means to purchase or lease, and I would imagine that that is where that comes into play. Closing sale transaction means the date of legal. So that's the same concept, closing, but they're using closing here. Market area means the area in the state of Texas, et cetera, and then you've got your counties that are covered within this In this agreement. It gives you the term that you've got them under this. Contractor obligation, client's obligation here we go. Works exclusively through the broker in acquiring property in the market area, negotiating acquisition of the property in the area only through the broker. Informs other brokers, salespeople, sellers, landlords whom client may have contact, that broker's exclusivity exclusively represents the client for the purpose of acquiring the property in the market area. Refers all such person to broker and comply with other provisions of this agreement.
Speaker 3:I think in number 11 is where it talks about commission.
Speaker 2:Okay, let's see if we go down there, Compensating client, client knowledge, broker, competing clients. There we go. I can read good Brokers fees Okay, the party agrees to that. Broker will receive commission calculated as the following 3% of the gross sales price. The client agrees to purchase the property in the market area. And if the client agrees to lease now we're not talking about that, Section C, Section C earned and payable that is the same section that we are seeing.
Speaker 2:That is where do I put that Right here? Okay, Earned and payable. Let's see what it says here. A person is not obligated to pay the broker's commission until such time as the broker's commission is earned and payable. So that section about the breach. Oh, here we go, it's all there. Client enters into the contract, blah, blah, blah, blah. Client breaches this agreement. Broker's commission is payable either during the terms of the agreement. So this is saying okay, this is breaching this agreement, not the contract. This is breaching this agreement, not the contract. So now, client breaches the contract, Client breaches this is even more so. You know, if I were to see this, I'd go wait a minute. There's three levers of breach here.
Speaker 1:It didn't change, no it got simplified, actually, and it just threw numbers in there. So the buyers are seeing this number and they're like, oh yeah, I got to pay you that if I have to terminate the contract, for whatever reason, and breach, okay, first of all, you're breaching the buyer's rep. Yeah, not the contract, correct? So if you terminate the contract, you're still under representation agreement with the buyer's agent. Now I think where they're where they're. What they're insinuating is is if you terminate a contract, you're not in breach of the buyer's rep. But if you go to another agent and that agent puts you in a contract, yes, my commission is payable to me because you signed a representation agreement. You signed a contract with me. You signed a contract with me. This is nothing to do and this is where agents. Everything you need to know about real estate is in the frigging contract.
Speaker 1:The buyer's representation agreement is not the term of the contract. My representation agreement is six months long. Yeah, I have six months to find you a house, earn and get paid Right, meaning close you on a house If you use another agent in that or buy a house without an agent while you're under a buyer's representation agreement with me. Yes, you owe me money. You have a contract with me, but all of my buyer's representation agreement with me. Yes, you owe me money. You have a contract with me, but all of my buyer's up agreements. I put language in the special provisions that say if at any time you want to terminate this agreement, put it in writing. I'll let you out Because I don't want again. I'm not chasing you for commission if you don't want to work with me.
Speaker 2:That's literally one of my questions here is what are ways out of this buyer's agreement? Go to the special provisions.
Speaker 1:There we go. Where would that be special provisions if the broker that service providers? I think it's pages.
Speaker 2:Let's see there's special provisions. Here we go either party either party may terminate this agreement with written notice. Boom, and that, in my opinion, shows very, very strong by you guys' part to allow that verbiage to be on there Up front. Hey, if we're not the right fit, just shoot me an email and I'll release you from this thing.
Speaker 3:And I always tell them that too, when I first talk with them like, hey, if you don't like me, you don't want to work with me, you're not tied to anything, I don't want to force you to work with me. And I feel like they respect that way more Absolutely.
Speaker 2:I think everybody respects honesty, upfront transparency, even if it's bad news. I mean, give them the news, give them their education that they deserve from somebody that's supposed to be an expert advising them. If you can't do that, don't consider yourself an expert.
Speaker 1:I can assure you most agents don't put that in there, and so your question is what is their out? There is no out, but if that buyer who goes and hires an attorney, that attorney is going to tear that document up Real quick. Again, real estate isn't hard, I mean, it's just education and it's knowing where. How valuable is your time?
Speaker 2:Yeah.
Speaker 1:I don't want to work with a client that doesn't want to work with me. Exactly, and I don't want to work with a client that I don't want to work with. Yeah, so let's separate, go on. But it has nothing to do with the contract. It has nothing to do with if you go in, if you don't buy that house, you owe me commission. That's not what it's saying, and they need clarity providing that. But that's it's not tar's responsibility to provide that clarity. It's not trek's responsibility. It's your responsibility as an agent to show them look, the buyer's rep is separate. It's a contract between me and you. The trek contract is a contract between us and the seller, and they're paying my commission right now. If they're not paying my commission, there's a whole different conversation. Agree, and that house is going to sit in the sun, but this is.
Speaker 2:But I never understood because I've heard it in the past. Matter of fact, I've heard horror stories of buyers getting upset at their agent or not agreeing with them what have you? And going to? Or previous agent or still current agent is not allowing them out of their buyer's rep and it's now going after their commission. From a closed transaction that a realtor closed Buyer didn't say that they were under any kind of obligation to go with another agent they were not the cause of that purchase either but still going after it in litigation or in arbitration or anything like that to try and get that commission For you guys to have that on there.
Speaker 2:Your team, in my opinion, probably decided guys, we're not going to even deal with this. If there's a client out there that doesn't want to work with you, we can either get them with another one on our team or we cut them loose. And that's how we do business, because we're going to do it on the up and up. But for those that are trying to trap their customers, that's kind of what it feels like and sounds like when you don't have something like you guys have here. What are?
Speaker 1:you doing, though? I mean you're pigeonholing your client. That's no longer your client. I don't care. What are you going to chase the commission from now? Are you entitled to it? Sure that, that's on this as you are. But again, what's the point? What's the purpose? Why are you in this business, then? Right, Like all you're doing?
Speaker 2:it's a bad review.
Speaker 1:They go and they, you know, they bird dog you and Google a review on Zillow or Google whatever. That's. That's one or two clients that aren't going to use you. That's right. So what's the point? Like it's just, what did you accomplish? Who did this to ourselves?
Speaker 3:If you're getting multiple of those who are going to buy someone else. That's more looking at yourself as an agent. What the heck am I doing wrong?
Speaker 1:For sure, for sure, only time. I feel like this plays a role and again, I don't know what you do about. It is for new builds because you're going to go to those and we've got some great sales consultants in our in, in our area, but there are some bad ones that will tell that client when they walk into a new build community hey you, you'll get a better deal without an agent. First of all, that's bullshit, it's not true. Second of all, they don't care about a buyer's rep because they're not. They're not. They're not bound by those, they're not bound by those rules. So if an agent feels the need to go, after that I can see it. If you're, you know, if I show you 60, 70 houses, I put a bunch of time in and I've explained to you right, when you go into a new bill community, make sure you tell them you're represented and you do that, I mean that's on me.
Speaker 1:That's your recourse at the same time but that's still on me, I have to agree, that's still on me. I've never had that happen before and I've done 450 transactions. I've never had that happen before. But I can tell you, if it's me, I'm not going after the buyer, I'm going after the builder, right, and I'm going to go up there myself and have a conversation, because I feel like with conversation comes context and maybe you can work something out. I've been cut out of a deal before One of the very first deals I ever did. One of my best friends was buying a house in La Verna custom home builder I won't name drop and I went out there. I helped him design plans, light it all out. Well, I missed the third meeting. I was out of town. They cut me out of the deal completely. I had a buyer's rep signed. What are we going to go out for, right? You're going to go out for $11,000, $12,000, whatever it is. Okay, that sounds like a lot of money, but do you know what lawyers charge? Yeah, do you know how?
Speaker 2:much this is going to cost me, plus your time and everything else, energy, effort going into this process. That is going to take away time from what you are supposedly do best Chalk it up as a lawsuit Move on.
Speaker 3:They're not going to send you referrals. I mean this kind of goes.
Speaker 2:I think a lot of what we're talking about has to do with the lack of sales training that realtors have or don't have. I mean, we're doing a class on ethos, emotional intelligence, here, coming up on the 9th, and the idea is you're supposed to be building a relationship, building a rapport with these customers, not just getting from A to Z. There's a lot of letters in between there that allow you to be seen as the expert in their eyes and the advisor, more so than anything, because you're supposed to have their back, their front, their side to side, because it's your fiduciary responsibility. And if they don't feel that, based on the relationship that you have gained or built with them, or lack of built with them, then yeah, that that opportunity will arise, because they see that not as something that is valuable enough to keep intact that relationship, that advisory status that you're supposed to be holding. I mean, what are your thoughts?
Speaker 1:on that. It's an agent that's living transactionally. Yes, they're not building for their future, they're going transaction to transaction. I don't want you in the business anyways, that's right. So I hope you bomb out, I hope you fail. I hope you don't get paid wash out of the business because we're in this business. I'm in this business to make money. Don't get me wrong. I'm in this business to feed my family. But I'm also in this business to legitimately help people like show you how to do this the right way, because if I show you the right way, you're going to refer me to somebody else. But the agents that live transactionally are the ones that are having these problems.
Speaker 2:You are speaking so much of the truth right now and I think a lot of folks need to hear it. Maybe it's happening to them right now and they just don't know why, but it should be coming from the broker.
Speaker 1:That's my point. Jeff said it that day we were here. They're conditioned that way from their broker, Volume, volume, volume, get those sales Okay. So now I got to focus on got to close this one, close this one, close this one, go to the next one, go to the next one. No, that's not what sales is. It's never been that you go to any of the big sales programs. I'm not a big fan of coaching, but there are programs out there in business development and they'll tell you you're here to grow a business, You're here to grow a business. You can never grow a business just looking month to month. You have to look macro and you have to look at the whole picture. That's right. My day to day what's my time worth?
Speaker 2:My month, my year. That's how you build a business. If you live transactionally like that, well, you can't and I'll put it in layman's you can't build a business working in your business all the time. You have to also spend time working on your business. And that's the macro level perspective bird's eye view.
Speaker 2:What does the next six months look like? 12 months look like? Five years look like? Am I still in this industry and, if so, what do I look like as an expert advisor to these customers? Have I gained enough knowledge to be able to accept any type of buyer, seller and be able to advise them? I think in many cases there's agents that are flying by the seat of their pants and not going to their broker enough when they should be, because the broker unfortunately, fortunately should be tackling these questions over and over, day in, day out, with the agents that they're acquiring. I mean, if you want to have a hundred agents, better be prepared for your phone to be ringing, because the idea of having that many agents and putting everything streamlined just doesn't doesn't work in my opinion. You know, unless you are acquiring all seasoned agents, you know even then though.
Speaker 1:Look at our team structure. Yeah, you better have somebody in place for training. Yeah, you better have somebody in place for development we do. You better have somebody in place for talent acquisition we do. We're not scared to take on new agents, but you're damn sure going to be trained and be available to your agents, cause I can tell you right now, go try to call an EXP broker. Who are they? I can pretty much tell you most of the brokers around San Antonio for your, your local brokerages. I have no idea who. It's training, man. It's. It's not coaching, it's training, it's learning, it's understanding the contract. Carlos can. Carlos is probably one of the best people to tell you about this, because he's so focused on buyers for the early part of his career. You experienced all this.
Speaker 3:Yeah, a hundred percent. Like I said, I feel like on our team, uh, I got like two or three years worth of business in my first couple of years just because we are doing a lot of volume. But our broker does have a contract class every single week, two to three hours every single week, going over the contract. His biggest thing is knowing the contract is going to be make you the best agent out there. It doesn't matter how good you are at sales. Negotiating comes with knowing the contract. If you don't know every piece of that contract, you can't negotiate. So and the contract's really built for the buyer. The seller has really no protections. It's almost all built for the buyer. There's so many outs that I guarantee three quarters of the agents don't even know. Yeah, like we do a lot of listings as well. Don't even know. Yeah, like we do a lot of listings as well and I get a lot of offers that are I have to send back like three times. Like you didn't complete the damn contract.
Speaker 3:Like are you going to send in a completed offer? Like, and it's pretty, pretty common and I've had people where I asked them to send it and they still don't fill it out right. I'm like do you even have a broker?
Speaker 3:And most of the time they are from the cloud brokerages because they don't have somebody readily available that I can reach out to. Like we can reach out to our broker 10 o'clock at night. He's going to answer. He probably doesn't want that all the time, but he's still going to answer, and that's. We don't necessarily have to go to our broker a lot, because we do have a team. Yeah.
Speaker 2:And you guys have. You have stuff in place because at one point in time your leaders went OK. Every time I experience something new, I'm going going to go through this again and have to relive it when I can avoid it, or have others that are about to go through this avoid it as well. The idea behind the contract and knowing the contract I call it pencil whipping, because there's only one way. In order to do that, you've got to know when and where you can pencil whip somebody on the other side of this transaction. That's what it's there for. You know the idea behind not stepping on the same landmines that you've leader has stepped on before. That's every leader's job, but if they're not putting processes in place for the things that they experience, well, then they're just going to have to continue doing it over and over and over, which I don't know. That's just not solid leadership, in my opinion it again.
Speaker 1:It just learned the contract. Everything you need to know about real estate is that contract. I agree. I don't know how much more clear to make it Like you want to be successful in this business. Understand the contract. I get off like he said. I'll send offers back. I had an agent call me today to write a contract on a new build. Can I put this on a one to four? Wow, this is on a one to four. Wow, this is it's. You can put it on a trick new construction completed contract. And then, after I answered her, she still called my listing coordinator and asked her I'm like, wow, like, and I gotta pay you, yeah like what well, guys, that was pretty damn good jc.
Speaker 2:What are we at on time one hour 42 seconds holy cow right on the money. It's so weird when I hit that I have no clock, nothing. So, that being the case, that was a pretty damn good discussion on what's actually taking place. This isn't a hypothetical. That actually took place, and I'm hoping others that are listening to this don't allow this to happen by listening to the advice that we're giving. Um, is there anything else you guys want to add to this discussion?
Speaker 1:Don't pay $10,000 a year for coaching. Find you a good mentor, because they're going to be as important to you as the broker is.
Speaker 1:find you a high producing agent to mentor you Cause those are the people that clearly they know what they're doing and so many brokers have kind of they're, they're great in their position, but there's so much out of the realm of production they don't understand necessarily everything that's going on, unless you're an actively involved broker and you're seeing these contracts and you're seeing these things go down and you can kind of guide but find you a high producing agent that's like okay, one that doesn't have a huge ego, that's not going to help her. But learn that contract because when this all comes down, before it evolves back to what it's going to, evolve back to what it was, understand how to explain it to your buyers, to your sellers, so that they have a better feel and more more comfortable, because that's you providing value to your clients. I like that.
Speaker 3:Carlos, you got anything. So yeah, at the end of the day, there's a market for everybody. Every time period that we're in, there's always a market for somebody. Just because your cousin John's not buying right now, go out and find who's buying, selling. There's people that need to buy and sell real estate every single day. So I'm just tired of hearing all the negativity in the media that it's a bad market, that market's going to crash. The market's not going to crash. Prices are not going to drop and interest rates may eventually go down and then prices are going to skyrocket. That's right. So right now is the best time to buy, in my opinion.
Speaker 2:I like that. I'm going to piggyback on something that Chris mentioned a moment ago. You may not be at the level that you're ready to get a coach. You may not have the income coming in to be able to afford a coach. So the next best thing is finding a mentor that will allow you to walk in their shoes, so to speak. But one thing that I do want to remind everyone of is you need to trade for value. Keep in mind that mentor, that top producer, that person has their schedule and there's a reason why they're a top producer. Don't think that you can get something for free and don't expect that you can get something for free. Trade in some way, shape or form, for value. You've got to wash somebody's car in order to do it, get on your ass and wash that car. If you've got to wash somebody's car in order to do it, get on your ass and wash that car. But for those of you that are interested in getting somewhat of a coaching aspect, we are, I think.
Speaker 2:Mortgage is going to be sponsoring a workshop and it's going to be Navigating Emotional Intelligence. It'll be on the 9th of this month, coming up at Stuart Title. We've got the social media links out there If you guys want to RSVP for that. We're anticipating to have a pretty good sized crowd. It will be a interactive workshop where I'm flying in my coach from Florida and she's going to be putting on a pretty good educational piece that every person in sales should already know somewhat of, which is EQ, not IQ knowing how people want to be sold to versus how you should sell to them, essentially.
Speaker 2:But wrapping up this discussion, guys, there's a lot of key factors within what we just talked about, a lot of great opinions, and they're not opinions from feelings, they're opinions from facts, they're opinions from experience. You guys have gone through this. You're just preaching about the trials and tribulations that you've gone through that come up with this opinion, so to speak. I love it. I think this was a great discussion and I think the folks out there are going to get a lot out of it, because they probably never guessed that they were going to get any kind of pushback from the buyer side of a transaction like this.
Speaker 2:So, that being the case, thank you both for joining me today. Those of you out there listening, if you haven't already, make sure to like, subscribe, share this with a friend, whether they're in real estate a buyer, a listing agent, a seller you never know who's going to need this kind of stuff. Um, but uh, hopefully we will continue to provide you guys with excellent discussions like this with more experts, and until then, we will catch you on the next one. Thank you.
