In this episode, we discuss a little bit about what is in the news regarding the National Association of Realtors. We also take you along the journey of a new agent and how you can hit the ground running with advice and ideas.
Welcome to real estate unlocked, The Ultimate podcast for aspiring Realtors. Fresh faces in the business and seasoned professionals alike. Your dynamic duo are ready to guide you through the exciting world of real estate. Please welcome your host Erica Kauzlarich Bird and her co-host Tammy Barnes.
And kind of wrapping up what we our theme is honing your skills. Everyone hears that right now in this market and so we want to expand and unlock a few other things that are out there in the media. And Eric will let you talk about the latest and greatest.
Yeah, you know it, it hit. It hit kind of major news lines. It wasn't just some of the, you know, like Inman and and things like that. But yeah, there has been a lot of talk. The National Association of Realtors, we refer to it as NPR. There, there's been a lot of scrutiny with regard to the association and I think that that's a conversation that should be had when we become Realtors. You can't even use the name realtor unless you're a member of the National Association of Realtors. What it means to be a realtor and by being a member of that. Trade Organization. You're held to a higher code of ethics when you you're kind of so overwhelmed that you just go to the local association or your broker says here you have to join and no one really understands why they have to join so. I think that it is a conversation that you can have with someone who is either involved in NASCAR or.
Well, let's back up. Explain to the listeners that maybe they haven't seen this, so it started with a lawsuit that just got that hit the news waves. So let's just start with that and how Narr became involved from this lawsuit.
Yeah. And that's the Department of Justice. The lawsuit is the Department of Justice. And AR and it has to do with. Basically, hiding commissions in terms of as a buyers agent, how much we get compensated. We don't disclose to our buyers how much we're making in Commission and that's what started it, right. So the Department of Justice, everyone is always looking, whether it's the National Association, even the state. All of the the the political aspect, so you have to look at the political aspect of real estate and what that is, is what's in the best interest of the consumer, whether you're a homeowner, whether you're a renter. And so they are. They are always looking at the real estate industry of what are they doing on behalf of the consumer and is it OK? What they're doing, so this has to do over commissions because a lot of people and I even hear people saying it on social media now. And I kind of cringe a little because they say, oh, you don't pay my Commission.
Right. They're telling buyers you don't pay my Commission. You don't pay my Commission. Well, the post I. Should say yeah, and yeah, they pretty much do because that's all built into the price, right. When a seller wants to know the bottom line of what they're going to make, those commissions are built into that. And and that's part of a factor of how you come up with the list price of your home. So it's a. That's what it's a matter of. And so by being a member of the association, you're you're held to a. I love that.
Is. Yeah, it really does. And I think that some people have to kind of ignore because I've been seeing on social media a lot where everyone is saying. Pull out, pull. Out pull out. But there's there's a lot of different factors. By being a member of of NAR I, I agree that there are things that need to change, and there's change that needs to be. Made and you know we are NAR, right. So we're the ones that have the voices, but.
They make up all Realtors and millions of them, right? Because you you have property managers, you have lenders, you have appraisers that also have licenses, but they believe in being a part of that association. I'm not defending everything that's out there when it comes to this lawsuit. So here's here's a prime example. They don't want us hide. Being our commissions on the buyers agent side, OK, you have like Redfin, the MLS's you have to offer compensation and NAR is the one that, that, that puts out the MLS policies. Now every state is different and people have to understand that there's some MLS's that aren't overseen by NA. Are so you don't have to be a member of NPR and you have access to the MLS. There's other associations you have to be a member of NAR. In order to do business in real estate within that association. So that's why I'm saying, have the conversation, why do I have to do this? Why do I have to be a member? Why should I or should I not pull out for me? I would not pull out of NASCAR. And here's why. Because #1. The political advocacy part OK. People have to realize it's because of NASCAR that we have 30 year fixed mortgages. There's other countries that you have 20 year amortization, OK, there's a lot of things politically they are at the table in Washington, DC I think they're like #20 in terms of lobbying efforts and money. And it's money on both sides. It's not. They're neither Democrat or Republican. They're the realtor party. But they are there at the table, and they're the ones going. This is what needs to happen. They're protecting 1031 exchanges. You have a lot of people in Washington, DC that want to do away with that. That doesn't help the little mom and pops. And so there's those fights that are happening that we can't do. I can't fly to Washington, DC all the time and say this is stupid. You shouldn't be doing this. So there's a lot of parts of NASCAR that is very, very beneficial to us that keep us in business. Same thing happens at your state association. The same thing happens at the local association, so with this antitrust lawsuit, you know, let's kind of role play here right there. It could be. And what everyone sees coming down the pipe is that the buyers are going to be the ones that have to pay our commissions. Buyers hardly have a down payment and we are in a housing crisis. We don't have homes for buyers and there are a lot of people that don't want to stay renting. They want the dream of home ownership and it's not attainable, in which case it's not going to be us that are going to be able to knock on Fannie Mae. And Freddie, Macs door going. Excuse us. How are you going to change your lending guidelines so that the buyers can wrap our Commission into the mortgage? Right. Because if you've been in the business long enough, you know, I mean, even I'm sitting here going over in my head going, OK, well, if they have money in the bank, we'll ask the seller to pay for the closing costs. And you know, then they're closing cost money. They'll just hand over to me. Well, then that means I'm not going to get my 2 1/2% in California. It's 5%. So we. Two and half to each side, Colorado is 6%. So you know commissions kind of vary in states, but. That's what you're you're looking at and you're going. How are we going to negotiate this? And then, unfortunately, once again, even if you negotiate closing costs. It's the seller. That's getting stuck with paying the commissions for both sides. It's realizing that NAR has a seat at the table to go to these Gses, they can go to Fannie and Freddie and Sallie Mae and say, how are you going to change your guidelines in order to do this? Because this is going to be a detriment to homebuyers. Affordability is a huge issue right now. And nobody has liquid money. They don't hardly have a down payment. Now they're going to have to worry about paying us a Commission. So it's going to be interesting, but it's it's the biggest thing to me is educate yourself and and there's reasons that some. Brokerages so like for instance like Redfin, because you have to offer compensation. Well, Redfin, they also list for Sale by owners and for Sale by owners aren't going to offer a Commission. So they would be going, you know, it would be illegal what they would be doing and in some areas Redfin agents. And pull out of NER because they're MLP's aren't like overseen by by NAR and the policies, but there's going to be some States and some areas where you're kind of not going to have a choice. So it it will be interesting, but don't you know? I would just like to say stay off of social media and don't be listening to everyone because I I didn't know.
Yeah, or just or kind of like go with the norm, right? It's it's kind of like I feel like. Sometimes you see something on social media and then you kind of run with it right where it's like. Oh yeah, that sounds good. OK, I'm jumping on that, that platform or I'm jumping on that bandwagon. I agree. Well, you know, I wouldn't have known as much as mom preached and preached and preached. Don't get involved in the PTA. I I got involved. And I at our state association and I've been involved. Basically, and so I've been at those tables, I've.
12 years. Yeah. And you know, and I started as a key contact for our local assemblyman, and I did. I lobbied in Sacramento, and I sat at tables looking at legislators saying this bill is a detriment to the consumer. And let me tell you why. And I've also been there when he's. You know, called downstairs and said pull the bill, we're not going through with this. So you know there's people making changes and it's just so much larger than what it seems and. And I I stay off of, I don't comment and I just kind of keep it to myself because everyone's entitled to their own opinion. And yes, there are some bad headlines. And yes, there are some changes that need to be made, but I don't think that it's as simple as, oh, let's just not join. There's just a lot more. Do your local state and National Association.
And Erica, you said that you said a mouthful really, when you said a bill was over there and they think they're going to pass it and then they pull it out or vice versa. So I think it as professionals, we all need to sit back for a little bit longer and wait and see what direction they really are going to go when they put all the pieces together. Sometimes when these folks get together and start talking, they don't realize and when somebody puts the dollar factor in front. For them, it'll either be where the banks are going to have to change. Their ways. Because the money is built into the purchase price right now. So in actuality, it's another piece of the down payment. So they'll have to do all of that and concentrate on that. But once it is up. 4th this is what is going to be done. Then all of the Realtors have got to pay attention and be. The board to go with their brokerages, franchises, whatever it may be, and find out what steps do we take. And usually it means a calling the congressman and or writing letters. I've written a lot of letters over the years because it was necessary and you have to be a part of all of that. So consequently, I think we still need to to wait a little bit for a little bit more information because this information is just really up in the air. It's totally up in the air and it's it's just. Not good right now.
Yeah, I mean, I just don't think that it's. I don't think that it necessitates as dramatic as people are being going, what have they done for us. And and again I you know what I would have never said that because we focused on our business and we focused on the importance of it. It wasn't until I really got involved and sitting on those committees and seeing first hand what actually happens and then of course, because I was legislative, I sat on the federal committee. So I, you know, would see what bills were going to be. Happening in Washington DC, what was coming down the pipeline in terms of what they're trying to do in DC and we had with our local association NPR representatives that then do the same thing. They're called FPC's federal political coordinators and they sit with the congressman and the senators. And they do the same thing with saying. This is why it's a detriment. So it's us as Realtors that are educating them and you'd have these large trade associations that they have skin in the game. They're supporting both sides. It's not a matter of Democrat versus Republican. They're supporting both. Sides to be able to say we want a seat at the table. We want to be able to come to you and say these are the changes that we need made. I kind of, you know, explain it to people saying it's like an insurance policy, right? We have health insurance. We have car insurance. You have all these different insurance policies to protect yourself. This protects our profession. So there's it's separating yourself. I think people are just angry with what is in the the negativity that's in the media about some of the things happening internally with the organization. So yes, I 100% agree that things need to change, but we're the ones who are able to speak. To that, we can take a stand and say things need to change and we need you to change it. And that's talking at your local association level and finding out how you can have a voice in that and talking to representatives that sit on the Board of Directors and finding out how they're expecting to. Change all of that, because that is our trade association, you know, but we still need them. We need the. Because they have an in, they have an in. With the GSE's, they have an inn in Washington DC We need that. Otherwise who knows what will happen.
So what you're really saying is that what the lawsuit was over was the consumer, and we need to separate that. OK, this issue of the antitrust needs to be discussed and separated out from just pull out of NAR. It's kind of like it's it's taking on. This whole new. They've just bolted it all together and it's just seems like it's going like, yeah, kaboom. And yet you kind of like you're saying, mom, we had discussed this too, like, let the dust settle a little bit here. And let's like, Eric is saying talk it out of what this is going to look like. The consumer is educated. Very educated today. You and I were visiting about it, of how back in the day, we carried a book. That was the MLS and now everything. When the Internet hit, everything changed in our industry and Fast forward to today it's even more. Or where the consumer has access to so much out there that, as Realtors, then we are held to that we are you know, I mean that's what we're answering to and that's where this whole lawsuit came into play. But what does that look like for us going forward in our industry, do you think that's both of your opinion?
Yeah, I mean, you know, like I said, I think that NR is going to have to have a conversation with the GSE's to find out, you know, can a buyer. Or build a Commission into the lending fees. That's the first step right? Because and. And you and I, you and I have been in two different brokerages and one, you know, one is a is a huge brokerage that you know they kind of tell their agents you can't be a discount.
Broker. You have to give X amount to the other side. So and and knowing that that's why I asked them and said what are your conversations looking like because you kind of delegate to your age. Dense if you're going to take a cut, you take the cut on your side as a listing agent. You have to give the other side to an half percent or 3% whatever the percentages for the states, and they're kind of like almost like Dewey eyed going. We don't know, you know, and and in certain states, like here in Colorado people. Used by our broker agreements in California, we haven't used them at all. And here's why, because I don't want to force a buyer to have to work with me. I'm not going to say sign this piece of paper. I want to be guaranteed my Commission. That sounds really. Bad. And you know you're trying to build a relationship with someone and you're trying to earn their trust and you don't do that by just walking up with a piece of paper going here. Sign this. So it's, you know, for for people who are newer in the industry, it's probably not going to be as difficult than us that are seasoned in the industry.
Because it is going to be a whole new conversation. And when you listen to top coaches, real estate coaches that are out there and they talk about scripts and practicing your script. This is what's going to have to happen is you need to dig deep into what is this going to look like for the future of our business and pay attention to it? It's just something to pay attention to. I don't think that that NAR would go this far with it if they didn't think that they were going to have a positive outcome. You know, with the lawsuit, I don't think that they would have taken it this far. They thought they had it settled it. They thought they had it settled because, and I even remember back it was going to be. That on the you know, on like Zillow on all of the different websites. Buyers, we're going to be able to see how much compensation was being offered to us as agents so. You know, and they were changing the code of ethics, I mean. Our code of. Ethics goes back to like 1908, so you know they were changing MLS policies, they were changing code of ethics. They were changing all of that in order to account for the fact, OK, now we have to disclose to the consumer how much they're being paid on the other side. You know? But then I also think you correct me, if you're wrong. Mom, I I just feel like it's going to also, you have to wonder if the consumer is going to go well. I don't have the money to pay the Commission, so I'm going to go to the listing agent because they're already getting a Commission. They've already negotiated 1. So I was thinking about that one day.
Because I thought, wow, you know, we would fill out our listing contract and go, OK, the Commission's, you know, 5%. We give 2 1/2, two over brings the buyer. Ohh. But if we bring the buyer, we're going to reduce that Commission to 4%. So hey. Got. Now you're going to be going to the cellar going. OK, I'm going to take the listing at, you know, 3%. And the buyers have to pay their agent. But if a buyer comes to me and I am going to represent both sides, then I have to increase the Commission to 4% and and I want to know that that's not coming from a greedy. Down point, but what people have to realize about our commissions is that the broker takes part of the commissions you have to put part of your commissions towards E&O insurance. There's there's other things that that Commission goes towards. We don't get 100% of it right so. So you know when it comes to how much is negotiated for compensation, it's factoring in business overhead because the broker takes part of that money and a lot, a good part of that money too is, you know, insurance if because when a seller gets called into a lawsuit, the broker gets called in too. And we're the ones that have to cover. You know, we have to cover the deductible and things like that. So you know, I mean, I just feel like I I even was like, I have to stop this because we're just guessing at this point. You're just kind of everyone's having little conversations about it. But those of us that have been in the business long enough, we're like sitting here. Thinking of all these different ways that it's going to have to change.
But you also have to remember that there is an awful lot riding on the housing industry. You've got an awful lot of trades. You've got all of your construction trades, you've got. There's just I could go on and I won't waste the time, but it goes on and on and on. So when the when the deal, Jay or anybody. Like that? Start something they help to do investigative to complete a file in order to say no. This wasn't unfair. And no, it wasn't something that had to be published out there separate because it was something that the seller was offered. To the person buying their home, taking care of paying the the fees, etcetera. So we don't know that they won't just simplify it by their total end and everybody else in the meantime are going to put a million ideas out there, which it is giving ideas that that could possibly turn around and shoot everybody in the foot. So I don't mean you could. Erica, but just everybody. So I think we just have to wait until they get a little bit further down the road. For some reason you know somebody filed A lawsuit and then they have to open up a file and and go from there because somebody complained. But I I don't feel like it's not going to be resolved because otherwise we're going to have. A lot of people out of work. In any one state and. That's that's not going to. Bode well for the economy or anything. Else. So I just don't think that they're going to just drop. With that. Point and say. Oh, yeah. OK, we'll just do it. This way the buyers have to come up. With the money. They can barely scrounge up enough money for their down payment, so it's not feasible. It's totally not feasible, and anything that's not feasible. I live long enough to know most of the time they find a way that that corrects it to satisfy everybody. Whether we walk around with the. Big, big give them our closing statement and show them exactly and then give them the closing statement that shows all the insurances that we have to pay and the brokerages have to be paid and the assistants have to be paid and then it'll quieten down the hole. Chicken kabob. So with that said, I think we've covered it for right now and we all have to just pay attention, that's.
Yeah, and. And you know, and I believe in advocating for the consumer and that's what the DOJ is doing right now. It's just a matter of. NAR explaining to the DOJ like listen our our MLS. I don't believe that our MLS is. Not in the best interest of the consumer because we have access to every single property that is available for a buyer where yes, the consumer can go look up properties. You know, I mean I would wake up at 6:00 AM and I would have 12 text messages from buyers going. I want to see this House. I want to see this House. Almost like they're looking at houses in their sleep, but when you look at these outside platforms that have the IDX and that have our properties on there, there's algorithms for those. So in my opinion on some of those websites. There's properties that are being shown and other properties that are not being shown because the algorithms are pushing certain properties to the front. You kind of think about like you know, Facebook and like social media, right? Everything's off of algorithms. And so it's like this one person has a video that has gone viral and then this other person can barely get 5 views. That's algorithms. And it's the same for. A lot of these websites that yes, they have our properties on them, but ultimately the MLS is the best platform for the consumer because we can plug in the information and we can find every property that fits their need within that platform. So yeah, so I mean I'm always huge on advocating for. For the consumer and private property rights and what's in the best interest of the client 100% as well as our business.
And so new agents and even agents that don't feel like, you know, they've been in the business, but maybe you know now these challenging times which you talked about earlier of, you know, overcoming the interest rate and so forth. This is one more thing to overcome and it's going to happen. You know if you're sitting at their kitchen table or in your office learning to negotiate. How do you speak about your Commission? How do you defend yourself? And I think that is that's another important thing of of knowing. I know that's the one thing working with Mom that that's the first thing she taught us was how how to sit there and and so speak to that a little bit. Diane, like, how do you speak to your clients? Do you ever get pushed back about Commission and so forth?
I always discuss commissions both with the sellers and with the buyers, and each Commission is negotiable. Commissions are all negotiable. And so consequently, you didn't have to go into exact numbers, you're talking about a certain percentage is going to each side and how it's paid down. I explained that the sellers pay it because. It's the way it's been for hundreds of years, and mainly because of the loan situation. So consequently it's built into the price that the buyers are paying their side without it being really put down on a piece of paper. So I do go through that because I feel it's important. Plus they also need to know that we have to pay for E&O insurance, we have to pay for. All of our own supplies we have to pay our taxes out of whatever money we get. Plus we have to pay the brokerage we work for, so consequently you don't get a full no matter what the percentage is. That money is not all just coming to you to go straight into. The bank and they have an appreciation for that and the sellers we go into it in a little bit. More depth because. They are the person putting up the amount of money, but in all the years it's never really been something that somebody has just just. Went crazy about like why am I doing that? Because it's been built in for every house that they bought and sold, so they knew it from the beginning and their first time buyers. They're learning it as a buyer that the seller paid it. So their expectation when they're a seller is that they will pay it also. So it's not hard to be open up front without giving away. Every, every single thing. I don't know what my car salesman makes, and I don't. You know, I don't know what the CEO's make at Disneyland when I'm trying to buy a little ticket just to get in the door. So I don't. I don't see a reason why they need to take this and exploit it to a point of where they, the consumer, needs to know every dollar. You don't even know that in the retail store. So I think they'll get it worked out. I I I really think they'll get it worked out. I've heard a lot of horror stories of different things not related to even this, but things over the years. And then they worked it out. We talked about it, talked about it, talked about it and then they. Go. OK, we're gonna do this. And it was. With that. You know, upsetting to everybody, they found a way to do it because there's too many people in the profession. It's not just real estate agents, it's everybody involved and that's, you know, thousands upon thousands of people. And I think they'll get something worked out that will we'll be able to still continue to do business. That's my hope and prayer. If not, I'll be writing a letter. And you know, being pure Sicilian, I know how to write those letters, dear Sir, and go from there.
Yeah, you know. Like I remember in California, but you know, when it came to, everyone acted like the sky was falling. When it when termite was taken off of the cone. Correct, because that's something that is negotiable. We had a box that said buy or sell or pay for it, but everyone said, oh, the seller pays for it and the seller pays for section one and someone got sued over it, and it was quite an extensive lawsuit and because of that, that's what brought a new contract with no termite.
And termite, you know, became a negotiated item in California, but you know, I remember because I was a part of the association, the State Association, and man, people would just come at me. Because, you know, they did. They acted like the sky was falling. And I think some of it was the panic of how do I explain? How do I explain to a buyer and how is that going to change? Cause there were more forms, it created more forms and some of them didn't like that. So you know it sometimes change is good and sometimes. Changes what you need and. We will all get through it. We will all figure it out. Just one.
Example of something that turned out really well, because if you had it on the contract then the lender wanted all the work done and sometimes the seller wasn't in a position to get all that work done and the buyers still wanted the house, they could do their own work in some cases. It was dry rot and you still get a termite report. It's just that we do it along with our home inspection. And then if there's anything on there, those repairs are still negotiable. That's why you don't you don't. Remove your your contingency removal form. You don't ever remove inspections until you get them all done. You check the septic, you check the wells. Many things that are on there to get done. You check for tree roots these days into the sewer lines. All of that. And then if you find the big ticket item then you negotiate on forms that we have. To negotiate now to sell? Or would you be willing to? Pay this much towards it. We'll get it fixed before, et cetera. So it all is still really there. It's just being done where we don't have to answer to the lender to get it done where we can't, you can't maneuver the funds then. So this is really a much better way situation and many sellers do get the work done. It just depends again. On the finances and within each transaction.
And that goes back to what you were saying earlier about, you know, knowing your forms. This is why you were saying, know your forms, practice, get a mentor that can really practice with you of of the negotiation skills. That's not something that every person that gets into real estate has is and and some seasoned agents are still not good at it. So. Back to the slower market right now, go in. That's what they mean by hone your skills. These are the different things that you can do is role play. You know, like Erica said earlier, scripts. There's scripts well. That's what you need to go back and review and and know and know your contract cause cause that's when I think the biggest thing that I would always say when people said do you love real estate. The only time I did not really enjoy a transaction is when an agent got involved emotionally with the transaction and you know that. It's like you're not paying for the home for 30 years. These clients are. And so keeping those emotions out. But that comes from knowing your craft, knowing your your profession, and it came from an insecurity point. You know, most of the time, that's where it's coming from, but it doesn't have to be. Like that. But if you really are coming across as the professional that you should be and you know, know what you're really doing, then it doesn't get that those emotions don't get involved and that's where good negotiation skills are.
Then, then those emotions transfer over to the clients and you know, then it doesn't make for a fun transaction. Mom and I have a team in California and. Which the one thing I love that we do is we make them, we make them do a market analysis on their own home, whether they own it or rent it, we make them fill out a listing contract. We make them explain the listing contract to us. We then give them a mock buyer. So we come up with a buyer. We come up with how much they can afford, how much their down payment is. We have them go in the MLS, we have them pull up properties, we have them review what properties they would have shown the buyer. We explained to them why some areas might not be as good as others. And we then make them write an offer on that property, and we make them present the explain the offer to us. The only way that you really can is by doing that. So if you're not part of a team or you don't have a team later that does something like that, go to your broker. Or go find a seasoned agent and say hey, will you help me with this? Will you take the time there are you don't have to be intimidated. We all we're beginners at one point in time right so. You have to find someone, find someone that will help you with that. It's it's hard to do the business. I always think that people should start off on a team and you can have different dynamics with a team. I think we have a really great dynamic with our team. I don't have an ego. I don't need to be on all of their advertising. However, they have us to be able to help them. They have us to be able to step in when they're faced with the situation that they don't know how to answer that question right. Though there are some people out there that they'll take you on as part of their team, let's say, but yet it's not the whole aspect of I'm going to give you business and you know, so you might not necessarily and you can even go to someone and say will you take me on to your team. I don't need you to give me business. I'll sit open houses if you want me to. But I really need someone to role play with. I have to know that I have someone that sort of has my back because, you know, here's the other thing you're gonna get hurt when a family member or a friend doesn't list their house with you or doesn't buy a house from you and it's not. It's it's out of the lack of experience that they see. This is the biggest investment in someone's life. They have to know that you have the experience to be able to negotiate on their behalf, that you actually know what the business is. You have to prove to your friends and followers. That you're serious and you're committed to what you're doing. And you know, I know that's going to hurt some people that are beginners in the business. But it is what it. Is you know it there, there are going to be people out there that want someone with transactions under their belt and want them with experience. So therefore the you know or like Mom said, go to your broker, go to your manager. Make sure you guys are all on the same page so that you can say I have a great team of professionals behind me with over X amount of experience right? Because when you say that then people think ohh well they have. She's got this team and this, you know, they have over 30 years of experience. So that means that gives the consumer the comfort in knowing. Yeah, you may have only had your license a year, but you have people backing you if there should be a problem. So I think that that's just, I think that it's so important and doing that role-playing so that you understand. Because what happens? Is, you know, I can quote things that are in the contract and I've been in situations with agents on the other side and I'll go. Ohh. No, I'm sorry you're wrong. If you look on page two, section 13, you know, and then you know, they kind of stutter and stammer because there's a lot of them that they don't read the contract. And even our like our California contract changed again because you had these little paragraphs that were like. Page 10 and 11 deep and I would change the number of days that you know for like notice to perform. The standard was 2 days and sometimes I'd put in like 3 or 4. I would change that. Well then you know if a listing agent tried to kick us to the curb and they'd give us a two day notice to perform, I'd go, oh, I changed it to four. So that gives us four extra days. For the lender to figure it out right, so. So they now moved everything to the front because you know there's. There's agents out there that would not read every single page of the contract. They would miss that or they would feel it wasn't important. Ohh my gosh, we can go over so many reasons why that's important and they wouldn't counter it out. And I would just kind of. You know, chuckle so. Yeah. So it's it's important to know every aspect.
Out because how did they go to their seller and say I made a mistake? I should have countered this to two. We now have to give them four days, right. You know? And sometimes, I mean, it was stupid thing and and a lot of times. You know, like maybe I knew that a client. You know that that it was, you know, a difficult loan because they were self-employed or they traveled a lot with business. And so it was a matter of could they get all the paperwork in, in time, you know, because and and sometimes because, you know, they only had 10 days to get something done in or 17 and it's like oh, I may need 21 so. That's where I would kind of pad that number not to be like sneaky or and going ohh this loan is never gonna close. It was just a matter of hmm we if we need an extra two or three days. That's the only way for me to get it for my client and a seller. Not say Nope. We're canceling on you and moving on to the next person. And especially in the kind of market that we were in with multiple offers, right? Because sellers would just go on to the next one. I have five other offers sitting here that I can go entertain. So yeah, yeah. So they changed our contract because of things like that and it happens.
Yeah. And can I say one more thing about when we're doing the mentoring and and training the agents when we have them pull up those property. And we come down to whichever number is going to work for them to show to the. Client then I. Think it's very important that new agents get in the car and drive that route? I know you have a GPS and I know it will get you there and you'll be able to park your car, but nothing is worse when you look like you've never been to that neighborhood. For it, they want to feel like you kind of know the neighborhoods you're taking. Too. So I used to drive around and I would see everything I wanted to know. Was this the street on Saturdays where and there was no parking at all and we were gonna have to park and walk and things like that. And you'd be amazed at all of the different things that you just see because you're by yourself and you're just checking things out. I didn't go inside the home to preview it. Because now all the new rollers you have, the glory of voters in the MLS, we didn't have that back then. We had a book came out every two weeks, whether you liked it or not. And so you were just flying by the seat of your pants. So I still didn't go inside the preview, but I would preview the neighborhood. I did not want to pull up to show them the house. That was looking made me nice, but the house on the right, the house on the left, looked like they should be torn down or there was 11 cars parked on the lawn and just different things back in the day that you would see. But you still see some. Of those now so. Go do I buy? It doesn't take that long and make sure that you can be talking to them in the car and not be saying you gotta listen to your GPS, be be aware to be able to go pull up and you just look more expert like you've been doing this forever. If you do that and even if you do that as trail runs, when you're just doing some homework for yourself. Picking things up and then go dry those and see if you could live in those neighborhoods. Little things that you could be doing while you're prepping and waiting for that first phone call. Don't be just sitting around thinking ohh well, I'll wait till I have a buyer. No, you prepare like you have a buyer right now because they could call you in 30 minutes and say they would like to see something this afternoon. So just always just be getting your skills down Pat. It will make your job more fun and and certainly you'll make more money.
And the confidence level is, you know, it is really gratifying. We were talking with some new friends of ours the other day about, you know what? What I remember my husband, I I mentioned it. I said my husband asked me what I loved about real estate and because I went to the lending side. And and what did I miss about the real estate side? And I said that, you know, it's really gratifying when you can negotiate with a buyer and a seller because you know the sellers have built a life in that home too. And then when they, you just had that when you moved here to Colorado with your home and the they cried because they saw the life you built in that home. With with my niece, and now they're going to do the same with their little ones. And so, you know, that's what unfortunately gets taken out sometimes in the transaction is really the people that work there. Buns off every day and shuffling kids and to pay for that home to have memories and so forth. It gets lost sometimes and and so like what you're saying, mom, is that when you when you can hone your skills and really, you know, do like what she's saying, know the neighborhood. If they say the kids need to walk home. From school you need to know where that school is because they're not home. You've got in this these prices you've got mom and Dad both working or you've got grandparents now. You have multi generational homes going on as well. And So what does that look like? And you know if they told you they need grandma walks to the bank or likes to go to the Walmart or, you know, whatever. The grocery shops and she needs to be able to walk. Those are the little things that they remember. And so yes, I agree that's you used to do that with us and it was so nice to be able to. Know what you were getting into when you went into a neighborhood rather than going in so blind. It's it's really kind of scary, you know. I mean, I hate to use that word, but. You don't know the surrounding area.
You know, and sometimes and sometimes the gift to gab, I'll never forget a set of clients they did not want a homeowners association. And in Santa Clarita. That's a little difficult, as even with housing, you know. So we pulled up to a house and I am not kidding you. The house right next door was literally had like Jack Skeleton. It was put. And it was like nightmare before Christmas theme and it was painted and it was March. So it wasn't Halloween. It was literally. That's how the house is every single day on a daily basis, so. We just drove up. And I looked at my client and I. Said well this. Is why you would want a homeowners association. So I said, shall we go inside? They're like, no. OK, let's get back in the car. Luckily, it was vacant. It was a foreclosure. But you know, so sometimes I was thinking about that, you know, like Mom said, driving around and and and checking out the neighborhood so that you don't look bad now. Of course my clients wouldn't have expected that I knew what the house next door looked like, so we're able to, you know, make a funny about it. But it's.
And sometimes you have to show them why they want an HOA. You know, like a lot of the times. And I love when the the client will say, well, these homeowners associations, no, that's you. You can go as same as we were talking earlier about and are that you can go to the meeting and you can ask for things to be changed or you know whatever you'd like. You know you have a voice. But there are reasons for same as we're saying with nor right, there's reasons for homeowners associations. So sometimes you do have to show the. Client because somebody might be listening right now thinking that. How do I explain that? Well, sometimes you can't explain it. It's like that case scenario. I guarantee you that Purple House guy lived in an association and he was going to do anything and everything he wanted to do. Because I've heard that out. Of clients I.
But you know, also going back to. Because I know we're kind of at our 45 minute mark, but just like Mom said, so go in the MLS and get to know neighborhoods and get to know. Plans most local associations I know ours, ours. Does brokerages even have if there's a caravan or a broker open, go to it. Go look at the houses the broker opens are the best thing that you can do because the sellers are gone. They already know there's going to be brokers. Creeping through or if the house is vacant, go look at the house. Go look at the floor plan because it gets to a point where. There clients say hey, I found this house. Oh, you know what? That's not going to work for you, because guess what? The master bed, bedrooms downstairs and all of your kids. Yeah. Primary bedroom. Primary bedroom is downstairs. All of the other bedrooms are upstairs. What if there's an earthquake? Or do you want to be downstairs from your children? You know, so it's you can not waste people's time.
Because time is valuable to clients and not only that, but try to be a part of networking groups because as Realtors, we do, we'll sit there and complain, right? Mom. Well, you. Know we'll say oh. This client or this House or this situation happened? You learn a lot.
You learned a lot a. From your. Working group and don't be afraid to ask other agents in the office I think. That's the other. Stigma that Realtors don't want to help each other. That's not true. And if that's happening in your brokerage, then there's other brokerages cuz that's really not how it should be. We all want to get along. In the sandbox, you're going to have a transaction together and so don't be afraid to ask. Just, you know, ask the questions or. Maybe ask if you can sit in on an interaction with a client. Listen cuz we learned by osmosis with mom a lot of the times we just sat there listening, right? And how to negotiate how to close the deal, how to turn a lead really fast, because this will end our kind of our honing the skills so.
Mom, over the years, how did you close client? How did you learn to close the client? How did you take the lead and learn earlier? We talked about your posters and so forth, but it's not funny cause it's serious. You did close. You closed your deals and. Had well first of.
All I have kind of a funny. On that one because. I was going to point out when you're showing home. Don't try to sell them that home because you just want to get it done. Let them just go through the home. I don't go in and go. Here's your bathroom. Here's the kitchen. I just stand back and I listen. But I'm looking. I'm looking up at the ceiling. I'm looking to see if I see. Water leaks. I'm. Looking to see if I see damage that I don't care to be involved in during the transaction period. So that I can point it out to them because not every seller is going to fix everything properly and that kind. Thing, but let them walk through it. Now here's the funny that I know your kids have heard from my clients personally on many occasions is then they'll start looking and I stand there and they're talking and they'll go. Now we can move this wall so that little Johnny will have a bigger bedroom. Then we can move that wall and maybe we could put a dining table. And then we can tear out the front porch and we can do a wrapper, and the next thing you know, we need a whole building department. So I look at him and I go, let's get back in the car. We've got more houses to see, and we're not gonna rebuild this one unless you absolutely have to. And. And the kids, when they came into business then and they would be meeting up with some of these people as they showed their kids and so forth, and they go well, remember about your mom, where she always said get in the car. And I'm kind of proud of that because I closed them because they closed themselves by listening to what they want. Keeping copious notes whether they run sticky notes or otherwise. I don't like I I was looking for that for them. I tried to get the vision in my mind and it would work out some work quicker than others, obviously. But you know this is this is many years for them to come, that they're going to be in this and my paycheck at the end. I always felt was quite sufficient to have to take the client out. Several times I that was what I enjoyed. I like to visit. I like to talk and because I was friendly about that, that's when they bring you other clients. That's to keep your business. Going so don't leave Vince that you have to take people more time. Some people are more difficult just because they. Life has more circumstances. They could have a child that's special needs or things like that, or just many things that I've been through over the years. But that's that's how you close you close by letting them. Just stand there like oh. This is it. And that's what I have continued to do to this day.
And you know, it's one of. Those things like. You know, I think the saying is fail forward, right? You're you're going to fail and we have all failed in some way. And you learn from those failures and you learn from those mistakes and it just makes you better. You can't let it get you down. You have to tell the story of the very first time when you were at century 21, the very first, you got an up call and and the guy.
You got your up call brand new and. Fortunately, the agents didn't care to be helpful, and I had asked different people in there if they would guide me, and nobody seemed to want to. They got an attitude about the whole thing. So I thought, well, this isn't going to work. So I was trying to find as much information as I could and you took you got to take a shift on the phones, you got a lot of up calls in those days, there was no Zillow, there was no ads, there was no nothing. So you'd get enough call and somebody would say with like an agent to come by about listing our home. Or a buyer who's going to come in the office and meet with you. So my up call was this gentleman. He said hi. I'm off of work. Is there an agent that could come out and meet with me? I'd like to talk about listing my home. So I said, Ohh yes I can be there and I you know where he lived, took all the information from all excited and a nervous wreck. So I went to a couple of people in the office and I said, can you give me some hints about what I'm supposed to say? Linda, the broker wasn't in. And I said, you know, I'm brand new. I don't really even understand all this. Just. Yeah. And they said, oh, you'll be fine. No, we don't help people. Everybody has to learn on their own. You just have to sacrifice. I thought, boy, this is. Going to be. A fun business. So I left and went up to his house and I sat down and we started talking and I'm pretty good with business learning, you know, learning words to just stay, to stay out of trouble, so. Speak. And then he looked at me. Very nice man. And he said. And what do you think with how does our house compare with the house to streets down? Probably should have looked that up before I left the office in such a screen to come take a listen. And so I went. Well, if I had seen the house, the two streets down, I probably could answer that. But since I haven't and I knew and sounds like a big mistake I've made. And he said, yeah, he goes because I do want to know a comparison. And he goes, you know. You're very, very nice, but he said I need to sell my house rather quickly and I just don't think you've got the experience. And I said, I understand completely. I said, let me go back to the office, I'll take it to the broker and let us get you somebody in the office that she feels it's gonna really know the neighborhood. He goes. I appreciate that. So it ended OK, but of course, I was ready to throw up at that point and I left it there. And that mistake was never made again because it taught me immediately to learn the MLS, to learn what, and that they were books. But take that book, go drive by figure everything out. I tried to start mapping things we sold in Santa Clarita under truck. Codes I tried to make maps for the track pose all that was impossible, but I taught myself many many things from that experience and if I knew where it was, I'd give him a big hug because he was what set me on that road to do that kind of thing? Learn and I didn't get that listening. But our office got to select.
Yeah. Wow, that's a great story. That's. And you know, that goes back to you just didn't quit. And that's I think for anybody who's sitting there going, you know, am I going to rethink this career because of the times that we're in right now? It's, you know, what? If you have put in all this? Work and that one deals around the corner. Just don't quit. You know, I know you have to pay bills. We all have that issue and you know, some are having side hustles. If you have to do that, that's fine. But still, there is enough time to do your real estate career as well. Make sure that it is to the forefront. The side house will pays your bills. You can figure it out. I think it's educating your family about what you're trying to do. I know they're single moms and dads. It's not easy. But you know, just don't quit. I think that's the message, right? Yeah, I'll figure. Yeah. Find find a way.
Out and away. Yeah. And. And hopefully, you know, with both of these episodes, for those that maybe haven't found a company yet, they you now kind of know what what what you're looking for, what kind of ammunition you know find out because that was the thing was.
It was cut. Wrote back then when we had books and you know, I'm not saying that this isn't a cutthroat industry. However, there are brokerages that. Of mentors or team leaders or agent development, or have really great managers, and I've seen them and I've witnessed them and I follow some of them on Facebook and stuff and they're inspirational people. So take your time to decide on the company. Every brokerage is going to be pretty similar in terms of tools. And and sometimes don't get. Don't don't go for the bright shiny objects. You know we started. With Century 21 and Linda and Linda was a great, you know, that was another thing. Mom learned a ton from her that you wouldn't necessarily learn from anyone else. And so the importance is, this is my business and I want longevity in this business and I want to know that you're going to be there for me every step of the way. You and I have been talking to some brokerages out here and I'm going. This is what I demand and this is what I want. Because here in Colorado, you know, we're going to start our little team and you know areas, but I know nothing and you know I want.
To know the brokers that are listening, it's a lot to have to recruit. Yeah, so, you know, be thinking about, you know, it's what my job was as a franchise consultant for re/max, is that I needed to make sure they kept their agents because that was not only their franchise. Agreement. But it's their bank account and so are you going to spend your hours trying to go back out there and recruit the agents rather than making an office? That. You know, has has good meetings that they can learn from each other. Don't keep information. I know that's what mom always said too, with office meaning. She wanted to hear how. Did you get that client? How did you close that client? Kind of how we're talking right now and it and we said earlier, it's a lonely business. You could be sitting at home going well. I wonder how Diane closed that client. Well, it should be something that is brought up at the office meeting. How did you get them? How did? Close them. What are you gonna do next or gotta lead? And they're not ready right now. OK, what are you gonna do with that lead? By sharing like that. That's how you get to that next level. And for the brokers out there, that's how you keep from having to pound the pavement and do all these interviews that take hours and get people like Erica that are demanding.
But we were we enjoyed it, right? And the other thing is is that. But we're doing this podcast because obviously we're very passionate about this industry and I have to thank our mother publicly because we all had our our kids and we weren't raised with anybody else raising us. And and Mom said Mama died, said no one's raising my grandbabies. And so. You know, the other thing you taught us, we're going to go way overtime. But the other thing you taught us, Mom, was that you have to have another reason to wake up and do this business or any business that you're in. It can't just be the paycheck, right? And so, like, our incentive was, we were there for everything our kids did. And still are even with KK in college, we still are there for her, and it's a wonderful, wonderful feeling. And Mom is still there for her grandkids today. She's 80 years old, still still like she said, I love it. I love my clients and their kids because you know, that's what we want. And that's why we did this. We started this podcast.
We hope that. You leave your comments and your remarks because. We are passionate about it. It doesn't have to be. We're hoping to educate. We're hoping to educate brokers and maybe make the industry even better when we have times like this that are slow, it's sometimes a reset, right, like we said about in our and so forth, things can change. It can be positive like we talked about the termite, it can be a positive change.
We'll talk about. Kathy, on our last episode so that we don't scare anybody because she's very detailed oriented and doesn't believe in sticking up stuff for darn sure. So. But she does do a great job.
To see people ask us some nice questions or anything that's bothering them, especially if they're getting started because it will also provide if it's a big enough question, it might provide a whole podcast that we can answer that we know everybody is probably wanting to hear. Out and if not, we will make sure that we get answers for the different questions that we get to because we do like to help people. I'm still mentoring and I enjoy it very, very much. It it. It just makes me smile to see somebody do good in the business. So I'm hoping for all of.
Yeah, yeah. The best is www.connectwitherica.com. And you can fill out a form. Let us know if you have questions, advice, concerns, whatever you want. That's where you can find our downloads and you know, well, we're definitely going to build up. Up the the free resources as we as we get going or let us know what you need and I'm I'm sure we've designed it or done it between all of us and we're happy to. Share it with you.
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