KGCI: Real Estate on Air - The Post-NAR Settlement Realtor: Buyers are going to win BIG

Episode Date: November 27, 2024

Write down 50 reasons why someone would be, and don't say why someone should work with you. Do not say that. Don't say that. Say 50 reasons why someone would be an idiot not to work with you. Bring in a word that brings in a motion. Welcome to Uncommon Real Estate, where it's all about finding creative solutions for real estate agents and investors. In exclusive mastermind conversations with some of the brightest minds in real estate, you'll learn how to earn an extra six figures a year.

Don't follow the herd. Be uncommon. Here are your hosts, multimillionaire real estate agent and investor, Chris Craddock and Jeff Safright. Welcome to another episode of the Uncommon Real Estate podcast. I'm your host Chris Craddock, and I am super pumped to talk about wealth building.

And one of the things that we need to understand is wealth is when your money works harder than you, Worth. Today we're talking about how to earn and protect what we have. We are going to be discussing the NAR lawsuit and our settlement and that hasn't been approved yet. By the way, it hasn't been approved. So we don't know how this will all play out. What we do know is there has been a settlement and a lot of agents are freaking out. Now, here's what I will say. If you are a low producing agent, you are probably going to be in a little bit of trouble unless you change how you're doing business. So I don't want to scare you at all, but you will probably be in a little bit of trouble.

And so this is where it's time for you to say, I don't want to be a low producing agent anymore. So if that is your case, we're going to talk about this right now. and we're going to make sure that that is not who you stay being. So if you're listening on the podcast, that is awesome. If you're listening on Zoom or Facebook, you now can type in any thoughts, questions, comments, and we will answer them in real time as well. If you're not aware of it, here's what was being said. And I have had so many people say, oh, six percent commissions are a thing of the past.

They're now negotiable. They've been negotiable. always. How many times have you seen people negotiating commissions? A lot. How many times have you dealt with a Zillow buyer, an online buyer? And they says, hey, will you give me 1% back? A lot. It's all negotiable. It has been. So what the actual settlement is saying is that the MLSs are no longer going to publish what the commission is offered to the buyer. but there will be other ways that that will be discussed. What will be put on there will be two and a half percent offered to stay in compliance with a buyer broker agreement or something like

that. But this is something else that I'm just hearing. In Virginia, one of the MLSs in Virginia has just stated that they are not going to comply with the NAR ruling. And so they're going to remove themselves from NAR and publish buyer broker compensation. So, We don't know how this is going to play out, first of all. So don't think it's a done deal. So that's one. Number two, here's the other. Here's the next piece.

Who is going to win right now? Because I'm hearing more conversations about this than I have heard in years are the buyers. And here's why. In the past, to negotiate compensation, there's only been one time. And the big, the real closers, would go, they'd sit at the table of people selling their house, and they would negotiate compensation there, right? Those are like the killer closers, right? They're negotiating for their compensation. The rest of everybody else, buyers didn't have to negotiate that. They just had to get

buyers under contract. And literally one of the main reasons to work with buyers agents that I have heard, and I've heard so many buyers agents use this as their discussion is, you're going to work with me because I'm free. It's no longer that. We're no longer having buyer's agent saying, you can work with me, I'm free. Right. So what is going to have to happen is the buyer agent is going to have to have a compelling argument just like the seller's agent to work with me and pay my compensation. And I will say this. And I know I'm going to offend some people by saying this. Some buyers agents aren't worth two and a half percent. They're not like literally you can type in chat GPT and say, hey, write me up a contract for this. And that's it. If you're not

finding off market properties for your buyers, if you are not solving problems for your buyers, if you're not helping buyers win. My cousin just asked me to help her, buy a house. I don't usually work with buyers that often. But with my cousin, it's she literally were super close as a family. And she found a house. It was coming soon. Perfect house. Perfect house. And so what we did was we looked at it and we knew the comps supported a way like a higher price. And we came in well above waived all contingencies. We're able to get into the house to do our own little inspection, but after we were under contract, and we just ratified last night. And so that wasn't happening with other, like, lower tier agents because they weren't willing to

have this conversation where they say, look, you're still with an HOA docs. If there's anything crazy, you can get out of it. But as long as it looks like the pictures and the foundation isn't crumbling, this is the house of your dreams. This is what you've been looking for. And so I was able to get them to do that where the first time I approached that conversation, they're like, we will never buy a house site unseen. And I'm like, okay, you may never buy a house in this market because everything you want is pristine and it's going up by a lot of money. And so by being able to understand the market and give them a path to get their house that they would not have had otherwise, we were able to help them win in a high level.

So with that said, what do we need to do to win with buyers in this market? First, you've got to have a flash roll. Number one, you've got to have a flash roll. So what is a flash roll? There is a book called Flip the Script. So Orrin Klap has written this book, Clath, it's C-L-A-P-H, I believe, has written. two books. One is called Pitch Anything and what is called Flip the Script. Both are on Audible, and both are some my favorite books of all time. And so if you're looking for a book to read,

which, by the way, a little side note, never choose your own books. There are too many good books out there and there's too many bad books out there. Find somebody that you respect and ask them what is a great book that they've read in the last 12 months and start picking books based on what other people recommend so that you don't waste your time with books that are just average, right? I'll tell you, flip the script and pitch anything are not average. They're above average. They're excellent.

They're incredible books. And so what I would say is make sure that you, and flip the script, they talk about having a flash roll. Make sure that you have a flash rule. Now, what a flash rule is is your one to three minute reason why somebody should move forward with you and what you're talking about. Now, how do you create this? All right, so homework assignment one is read, flip the script.

Homework assignment two is this. And please, I hope some, I hope you're taking notes or if you're driving that you just shot this down because I'm telling you this is the most powerful tool that we've done with our agents. You ask them all to write down. And now we're asking you, if you're listening, to write down 50 reasons why someone would be, and don't say why someone should work with you. Do not say that. Don't say that. Say 50 reasons why someone would be an idiot not to work with you. Bring in a word that brings in

emotion. Why would somebody be an idiot not to work with you? 50 reasons. The first three, maybe five, maybe 10 will be easy. Then you're going to be like, oh crap, break out Google, it's okay. It's okay. Break out Google and start making your list of why people would be an idiot not to work with you. And then you start writing that down and here's what's going to happen. Your mind is going to shift. You're going to go from thinking, man, this, this, I'm getting it what I do to. Yeah, they would be. These are the things I'm doing. And honestly, if you can't come up with 50 reasons, like you probably need to up your value proposition, right? because people are going to pay you for the value you bring them in the market.

And so this is there. Now, I'll tell you a handful of things. One, we negotiate well. We have great relationships with other agents. We find off-market properties. We will send letters in neighborhoods that you're looking for. We will call agents that have tons of business in that neighborhood and ask them if they have anything coming up. These are all just things that, that we'll.

will do to bring opportunity for our buyers, but you've got to get 50 of them, right? It'll probably take you a couple hours in an afternoon, but I'll tell you, once you have 50, and then you say, I am this person, you will walk with so much swagger that you'll be able to create your, your flash roll and a heartbeat. And people can instantly identify value, right? They will know, wow, we are, we are excellent here. We are really good, or I am really good if your team or an individual. I am really good at what I do. And now that sounds a little bit pompous, but that's okay.

You can sound a little bit pompous, but here is the thing. Understand confidence and pride or arrogance. Confidence and arrogance are not the same thing. You've got to get to a point where you're massively confident, not massively arrogant. All right. So number one, read the book, fill up this script. Number two, make your list of 50 reasons by somebody be an idiot not to work with you, not why somebody would be foolish not to work with you, but an idiot not to work with you. Then next, you go and you start practicing your script. This may sound rough, but let me tell you, and again, if you're taking notes, I want you to write

this down. Never practice on the people that pay you. Never practice on the people that pay you. I'll tell you what, there is no football team in the NFL that does not run their plays all through the week. And then the thing they do right before the game and the thing they do the day before the game is they just run their plays, right? They're not running full contact. They're running their plays. you should do it in the mirror, you should see what your face looks like, you should record yourself, you should watch it, you're watching film, you're understanding what the deal is there. So you're practicing what you're saying because here is, here's what's going to have to happen. You are going to have to have a buyer broker agreement that is required, right?

That's a requirement. And in it, it has to spell out your compensation, right? So right now, buyers just, they just want to get into the house and you're just literally a monkey that opens the door for them. Right. Like that's, that's just it. I'm a door opening monkey in their mind, right? That's all it is. A high-priced Uber driver. That's all we are. But then when we meet them, we've got maybe 30 seconds, maybe three minutes where we can explain to them the value of working with us. And that's where that 50 reasons comes into play. here's what's going to happen. And this is one of the truths that I found with Redux is every time something has shifted, it's always been hard at first, but we've found a way to win. And not only have we found a way to win, but we found a way to win at a level where we take massive, massive, massive market share.

Let me give a couple examples. COVID. my wife said she came in and I don't watch the news I don't care about the news I think that like the news is just there to scare people and make money and I kept hearing COVID this COVID that and I'm like that's not a thing it's not a thing then my wife comes in and was like hey the world shuts down tomorrow people aren't allowed to go outside

and I was like what I pulled up the and I was like holy crap that this is real and then I had that moment of freak out where I sat down and I'm like, I got hundreds of thousands of dollars that go out, maybe not hundreds, but over $100,000 that goes out every month, whether I sell a house or not. And I started thinking, dude, I've done very well, but I can't go a long time with selling zero houses and paying well over $100,000 a month, like just having that go out. But also, I can't just cut all my people either because they're like my friends. They're people that depend on me.

They're people that trusted their lives to my company and trusted their lives to me. And so I'm thinking, what do I do? Like, how do I do this? And a lot of my net worth is tied up in assets. So I'm like, how do I sell a house? So I freaked out. The cool thing is we got through it. Not only did we get through it, we got through it where we made a lot more money than we

we did before. Then the next thing, the interest rates tripled a year and a half ago. And I had a moment of freak out where we were, we looked like. like we were going to lose over $100,000 in a month because houses just, the market just shut down. And it was right when I moved into my house that has a fairly high mortgage payment. And I'm like, dang, how many months can I go without paying it? But here's the crazy thing. We learned how to win in that market. And not only did we learn how to win, we learned how to make more money in that market. So the thing that I've learned is, okay, when change happens,

if you're learning, and what I did was I just got around other smart people that were winning and I just listened to how they were thinking about it. And then we realized that every single time we started making more money because change happened. Everybody else adapted too slow. We adapted fast and then we made more money because we got there faster and then we were able to grow our business. One of the other times, COVID happened, we couldn't, we started doing really well. And then we couldn't get buyers under contract because every house had 97 offers on them. And it was just crazy. I got around some people that I really respected and asked them what they were doing. And they told me, you know, put offer like, you know, how to buy sight unseen, which I just told you,

we did with my cousin properties where you can still get in them and you still have a way to get out. But buying site unseen, putting offer deadlines on them because we were making offers. and then they just hold on and then shop us, shop us. But having the offer deadline made them decide quicker so that you weren't getting shopped for a long time. And I thought, no way offer deadlines would work in this. Nobody wants to do this. But the reality is if you give a good offer,

you can't give an undermarket offer or even at list price, but give a good offer and say, hey, I need to hear back in four hours. Agents would get back to you in four hours and that you would lock it up and get it done. So the offer deadlines absolutely worked for us. So then we started winning like crazy with buyers when nobody else was winning with buyers. So all of these things, what I was able to do is say, okay, in the history of the last five years,

there have been so many changes and so many times where business almost shut down and then not only did it not shut down, but we found a way to win way bigger, way bigger than ever before and this is where we are with this NAR settlement. So the last thing, so I told you the couple things, get your flash roll, flip the script, figure out your value, your 50 things, reasons why people be an idiot not to work with you. But here's the next thing that you've got to absolutely do. Think through ways that you have pivoted in the past to be able to be successful now. And maybe you're a new agent, right? Maybe you haven't had time there. But think about another time in your life that you've pivoted.

realize that you can find a way to win. And listen, if you in your mind do not believe that yet, here's what I'm going to just say. Find somebody that runs a big team in your area and go get in business with them, somebody that is really crushing it. Because I'm telling you, the bottom line is the people you are around are going to dictate your future. Show me your friends. I'll show you your future. When change. happens, the people that are super adaptive and are learning base are the ones that adapt fast. And those people are the ones that actually make the most money. And as much as everybody gets mad when you hear this on TV, the rich get richer and the poor

get poor, the reality is the people that are doing more business tend to adapt faster and they're going to grow their business. And the people that are doing less are going to shrink their business. Now, maybe you're doing better than average and you don't want to join a team. Totally fine. Then here is the next piece, right? Go find people that are doing high levels of business and find a way to get in their world.

So if you're listening to this podcast, one of the things I have said that I would do, I would have a conversation with people if they reached out with a reason. not just, hey, let's just talk, but reach out with a reason. Like our team has been massively successful. We're one of the top teams in the world right now. And I'm open to having conversations, right? People should reach out. That's what I have done with other people.

And actually, there's somebody that sold a real estate business for a massive amount of money. And he's on my list. I'm reaching out to him, right? Because he's a couple steps further ahead than I am. Right. So that's part of the process. You reach out so that you can learn how people think that are doing things that you want to do. So that's really it.

So what is it going to look like? Let me break it down in post-NAR settlement, assuming it gets passed. What's going to happen is buyers are going to be offered more value. One. Are you one of the people that are going to show the buyers so much value that they are going to immediately jump in and say, okay, I got to do whatever you're telling me to do. Or are you going to be just along for the ride and hoping that the buyers will sign with you? And if they do, hope that what's being offered as far as compensation is good,

you're going to have to figure that out. Or you can offer so much value that's really good. The next thing is this. I do commercial real estate as well. and in commercial, a lot of times that the MLS that can usually use is CoStar, right? There's also CREXE and LumNet and all, all these other ones. But CoStar is like the big 2,000 pound gorilla of the commercial MLS. And they don't really tell you what you're offering.

So you have to call and say, hey, what are you offering the buyer broker as far as compensation is? They'll say the number. And you know what? you can say, hey, look, I've got a two and a half percent agreement with the buyer. Would you guys do that? And they're like, if we agree, just put that in there as part of the LOI, the letter of intent, we'll agree to it. So we're negotiating with the seller as well as negotiation with the buyer.

Now, if they have 30 other offers, you're not going to get them to pay it. But what you can do is show the buyer how you are able to get them into the property that they want. And if they have to take money out, let's say they need more cash, it's the same. it's the same thing as what we were telling buyers when we were in COVID, right? Hey, you're going to need a little bit more cash to close. There are other options buying your house. It is a retirement piece. Like you can take money out of retirement and put it towards your house because it really is part of your retirement goal.

And anybody that doesn't understand that living in a house for more than 20 years is really much one of the best retirement funds you could ever. imagine, then you probably haven't looked at the history of what real estate is done. So those are the things that I think are going to be absolutely pivotal, pivotal for us to win in this post-N-A-R settlement era. Hopefully that's helpful. If I can do anything to serve you, please reach out to me. Instagram at Crad Rock, C-R-A-D-R-C-K. I will respond to any personal DMs there.

Like I said, I'm willing to hop on a call if there is a point to the call. Also, our organization has moved over to the game network with EXP, which is the global agent investor network. If anybody is interested in being an agent investor and looking to be a part of that network, some of my friends that are some of the top, I should just had a conversation. There's another 15 folks coming over that are some of the top investors in the world that are coming to join us. I just had that conversation earlier today. So I am super, super pumped about what's going on with that. And if that's something that you want to partner with us,

please just let me know, reach out, and we will get you all the information there. But until then, everybody, remember, you got to either change your activities or you got to change your goals. And I recommend not changing your goals. Change your activities to hit those goals that will make you that elite 1% so that you, that you can build wealth, have the life you've always dreamed of. Go get it, make things happen today. See ya. Welcome to Uncommon Real Estate,

where it's all about finding creative solutions for real estate agents and investors. In exclusive mastermind conversations with some of the brightest minds in real estate, you'll learn how to earn an extra six figures a year. Don't follow the herd. Be uncommon. Here are your hosts,

multi-millionaire real estate agent and investor, Chris Craddock and J. Jeff Safe Right.