Would you give me $22 for a $20 bill? Of course not. But what if I ran a full-page ad in the newspaper marketing my $20 bill, built a dedicated web page to showcase high-resolution photos of my $20 bill, streamed Facebook live videos of me holding my $20 bill, and scheduled times on the weekend inviting you to come and see my $20 bill in person and hold it in your hand so you can experience how amazing my $20 bill is and what it would feel like actually to call it yours? Would that be enough to get you to pay me $22 for my $20 bill? Of course not. 🟢 Because a $20 bill is only worth $20. But what if I ran a television ad, waving my arms all over the place claiming I had a $20 bill that I was willing to sell for $18? What do you think would happen then? There would be a line all the way down the street, around the corner, continuing for multiple blocks... with people ready to buy (or make offers) on my $20 bill. ➡️ The difference is VALUE. If you try to sell a $20 bill for $22, you are asking too much and nobody will be interested. But if you try to sell a $20 bill for $18, you have created a perceived value that consumers cannot ignore or refuse. Many property issues can be addressed and even eliminated with a little effort. You can clean carpets, paint walls, repair pools, and bake cookies to cover a musty smell. When you do these things, you create value. Or, you can price the home for what it is. You can take the home as it is, along with the current market conditions, and offer the home for sale at a price that reflects the real value -- with the property issues and market conditions factored in. I've been doing this a long time and am confident in my claim that every home, even homes loaded with issues, problems, and flaws, will sell if they are priced at a level that represents value to the buyer. But homes that are priced that ignore the property issues and the market conditions, will sit on the market while the listing agents promote them with Google ads, postcard mailings, and Facebook live videos.
If you want to become one of the top agents in your local area, you are going to have to face some difficult times and work through a lot of challenges. You will lose a few friends, make a few enemies, and be trolled by a few haters. I wish that wasn’t true, but for every person who wants you to succeed, there are others who want you to fail. ✅ If you really want to want to survive, and thrive, you must be committed to the process. Being committed to developing systems that would fuel growth pulled me through every single negative challenge I faced in the real estate business. And that same commitment ultimately led me to every success I’ve ever experienced. Being committed to your goals will require you to make some difficult choices. A good friend and mentor of mine once said to me, “If you want to build a big business, you’ll eventually need to choose between the pain of discipline or the pain of regret. The pain of discipline means you will choose to: 1️⃣ Call prospects even when you don’t feel like it. 2️⃣ Practice sales dialog over and over until it sounds natural. 3️⃣ Skip the baseball game and hold an open house. 4️⃣ Track your marketing results and make difficult decisions. 5️⃣ Stop doing things that are not growing your business. The pain of regret is the disappointment you feel when you realize your lack of commitment held you back from becoming one of the top agents in your area. If you want it bad enough, nothing will hold you back from rising to the top of your niche. As long as you stay committed.
There are many strategies you can use to increase your buyer's chances of getting their dream home when shopping for a home in a competitive housing market. 1️⃣ Encourage your buyer to be ready to make a decision. There's no time to "sleep on it". Another buyer looked at the same home yesterday, slept on it last night, and is ready to pull the trigger today. Your buyer needs to be quick and decisive. 2️⃣ Guide your buyer to offer competitively and aggressively. Sellers' markets are not the time to present lowball offers. Review the recent sales with your buyer and the currently available homes on the market and counsel them about making a competitive offer. Advise them to put their best offer on the table as their first offer. 3️⃣ Eliminate all contingencies unless absolutely necessary. If your buyer is financing, ensure there is a contingency for their final loan approval, but other than that, keep contingencies to a minimum. 4️⃣ Encourage your buyer to shorten the normal inspection time to a minimal number of days and have an inspector ready to look at the home in the first few days after contract acceptance. 5️⃣ Don't let your buyer get caught up in the frenzy. It's easy for buyers to compromise their wants and needs or bid higher than their desired budget in a low inventory environment. Help them understand that new properties come on the market every few days, and if they miss out on this one, there will be another home to look at soon. Use these tips to guide your buyers toward a successful contract.
Let me make one thing perfectly clear. The Customer is NOT always right. Despite what you have heard over and over for most of your life, there are many times that the Customer is wrong. But here's the deal… The Customer's perception is always right. If you don't believe me, have a conversation about politics with someone who supports the "other party" and they will tell you why they are right. In the Real Estate business, the Customer is your Client. Your Client can be totally wrong, but if they believe they are right, their perception is their personal reality. And in their minds…they are right. What does this have to do with your real estate business? A lot. Because clients have a lot of conceived perceptions about real estate agents. They think things like: ✔️ Realtors make too much money. ✔️ Realtors do not work hard. ✔️ Realtors are lazy. ✔️ Realtors are a dime a dozen. ✔️ Realtors are not really necessary to sell a house. Your Clients (your Customers) are wrong. Hey...don't get upset with me. You chose this career path. I could write a book on this topic, and maybe someday I will, but for now, I am going to boil this down to the best way for you to reverse the inaccurate perceptions your Client has about you. If you are working with an active seller, the key to becoming a hero in their eyes is to, COMMUNICATE WITH THEM! Pick up the phone…send an email…send a text…stop by their house…whatever…just be sure to: COMMUNICATE WITH THEM! Because when you do not proactively communicate with your seller, do you know what they are thinking? They think you are doing nothing! This is especially true in today's slower market, where buyers seem to be hibernating, and there can be days or weeks between showings. Here is my success recipe for seller communication: ✅ When you sign a new listing, be present when the photographer shows up. Choreograph the event and be sure the best shots are taken. Explain to the photographer the best features of the home that you plan to highlight, and be sure to communicate with your seller about this!
@Steven Koleno Your comments are always welcome as your results back up your views. I've never been one for sugar coating either. People analyze information through the lenses of their own experiences and understanding and agents who learn how to recognize those cognitive biases and provide the services consumers want will outperform in the coming years. Thanks Steven!
Here is one of my favorite quotes: "Your present circumstances don't determine where you go; they merely determine where you start." -Nido R. Quebin Nido Quebin has been president of High Point University in North Carolina since 2005. He came to the United States as a teenager with limited knowledge of English and only $50 in his pocket. His inspiring life story is one filled with adversity and abundance. Through the lens of his life accomplishments, one appreciates his current role as an educator, philanthropist, and passionate advocate for the development of our future leaders. I have followed and studied Dr. Quebin for many years. This afternoon, I came across some notes I took during a mastermind session where he was a key contributor: 🟢 If you want more out of life, you must become more valuable. 🟢 Your value increases proportionately to the size of problems you can solve. 🟢 When you solve bigger problems, your perceived value will increase in other people's eyes. 🟢 A higher value proposition will allow you to differentiate yourself from others. 🟢 When you solve bigger problems, you will develop a higher competence level. 🟢 When you have a higher competence level, you will have a higher confidence level. 🟢 A higher confidence level will translate into higher proficiency in your career and higher compensation for your skills. Consumers expect us to solve their problems. Become a problem solver! And the bigger problems we solve, the higher our compensation will be.
Facebook real estate groups reveal the heart and soul of the average real estate agent. The questions posted are real questions...from real agents...that often reveal how naive most agents are about how the real estate business works. For example, here's a question that was posted in a 246,000-member real estate agent group: ❞ Is anyone paying for leads? Who are you buying from, and have you closed any deals from them? ❞ On the surface, it's a simple question. But there is so much to unpack. Some agents replied with comments like: ...two from Zillow... ...3 from CallTend this year... ...run Google ads... ...I got a deal yesterday from my sphere... I'm not sure those comments really helped the original poster. I prefer to avoid real estate agent drama whenever possible... and the last thing I want to do is make an agent feel bad about asking a question, but I can't ignore an opportunity to open an agent's eyes to what this business is all about. This was my reply to that post: ❞ Don't assume that you can "buy a transaction." Whether or not someone closed a deal from a lead they purchased has 1% to do with the source of the lead and 99% to do with that individual agent's communication skills, sales ability, and follow-up habits. Sharpen your people skills, networking skills, and negotiation skills as well. Mastering these skills is where the real money is made in the real estate business. Closing deals from paid lead sources is all about YOU. -Dennis Jones ❞ Then, I sent him a free invitation link to join our Mastermind. If you buy leads, the only thing you are really buying is an opportunity. From there, you must have the necessary skills to convert the opportunity into a commissionable transaction. Where do you learn those skills? Right here, in this community. Ask questions. Share your knowledge. Collaborate with like-minded agents.
Over the last 20 years, my wife and I have built a 7-figure commission real estate business. I credit much of our success to the consistent and effective use of a CRM. Most agents do not use a CRM because they find them challenging to learn and cumbersome to use. Their hesitation usually stems from past experiences with complex systems or the daunting task of integrating a new tool into their daily routine. In my opinion, leveraging a CRM is the most cost-effective method for generating leads. You may disagree, but my bank account will not let you change my mind. A CRM not only aids in nurturing existing clients and motivating them to provide referrals but also plays a vital role in expanding your business. A well-implemented CRM system will automate many tasks, from lead generation to client follow-ups, making your day-to-day job more manageable and efficient. In my career, I have used over a dozen different CRMs. Some were great, some were OK, and some were horrible. Some were intuitive, and others were impossible to follow. I wanted to create a system that worked how I worked, so in the summer of 2022, I contracted with a team of developers to create The RARE Agent CRM. The RARE Agent CRM is more than just a database - it's a software solution. It will track your client relationships, nurture new leads, and generate referrals. It includes fresh monthly content and full access to me via this Mastermind community for round-the-clock support, training, and coaching that will teach you how to generate leads using the CRM. This supportive ecosystem will ease the learning curve and empower you to harness its full capabilities and fuel your business growth. Learn more about our CRM on the RARE Agent Website. https://rareagents.com/crm/
As brokers and agents, we often get tangled in the day-to-day grind of running our businesses. Between chasing listings, pacifying clients, and pushing paperwork, who has time to keep up with the latest industry gossip and legal squabbles? But this is my warning call - we can no longer afford to ignore what's brewing with the two multibillion-dollar lawsuits targeting MLS practices. The potential fallout threatens the future of real estate as we know it. I'm sounding the alarm today because every broker and agent needs to understand what's at stake. These cases have significant implications for our income, our value proposition, and our future viability in this business. The time is now to pay attention and prepare for impact. ➡️ A Refresher - What's This MLS Lawsuit All About? I know most of us glaze over at the first whiff of legal jargon, so let me break down the essential context. Two major class action lawsuits were filed a few years back targeting policies of the National Association of Realtors and MLS databases nationwide. In a nutshell, the suits allege that requiring home sellers to pay the commissions of buyers' agents to list on the MLS results in inflated fees and limits negotiation. By mandating this "cooperative compensation" to access the MLS, the plaintiffs argue sellers are forced to agree to pay exorbitant commissions. The two lawsuits - Sitzer v. NAR and Moehrl v. NAR - together represent millions of home sellers totaling nearly $50 billion in damages. The core objective of these suits is "decoupling" - breaking the link between seller-paid commissions for their listing agent and buyers' agents. If successful, buyers would pay their agent directly instead of the current model where seller commissions fund both sides. Since 87% of buyers utilize an agent (compared to just 5-20% in other countries), the plaintiffs contend this opaque MLS compensation system removes incentives to negotiate commissions and ultimately costs consumers billions in inflated fees.
@Steven Koleno My intent with raising the lawsuits here in our mastermind group was to spur exactly the kind of discussion and sharing of ideas you have modeled here. I *always* enjoy reading your comments and how you push everyone to think beyond confirmation bias and think about the changes on the horizon. Authentic leadership means leaning into the future, not clinging to the past. There is so much we can learn from those innovating at high levels. Thanks, Steve!
If you have never been involved in a commission dispute with another agent where Procuring Cause was used to determine who should rightfully be paid, it's only a matter of time before you are. Unfortunately, commission disputes are common. I was playing around with ChatGPT yesterday and I wanted to see how A.I. would handle the “procuring cause” subject. Check out this prompt and response: ▶️ ▶️ MY PROMPT: You have full access to the National Association of Realtors document library including realtor policies, procedures, code of ethics, legal filings, complaint filings, broker/agent disputes, arbitration and mediation records. You are recognized as an expert in the legal field with a specific focus on real estate broker and agent conduct and compensation. You have passed the BAR in all 50 states. Based on your knowledge, write a 250 word summary of Procuring Cause and how it plays a role in commission disputes. Include an illustrative example. Write your summary as if you are writing to a 25 year old law student studying for the BAR exam in the state of California. 🚩 🚩 ChatGPT: Procuring cause refers to the broker's or agent's actions and efforts that result in the sale of a property. It's a fundamental concept in real estate law, particularly when commission disputes arise between brokers or agents. Understanding it is essential for any law student aiming to specialize in real estate law or simply to pass the BAR. Typically, the selling broker or agent earns the sales commission, but issues arise when multiple brokers or agents are involved. Here's where procuring cause comes into play. It is not simply who first introduced the buyer to the property or who was involved at the time of sale, but rather it's about the continuous, unbroken chain of events that leads to the transaction. Take this illustrative example: Broker A shows a house to a prospective buyer but does not follow up after the initial meeting. Later, Broker B steps in, provides additional information, arranges another viewing, and finally seals the deal. If a dispute arises over the commission, the concept of procuring cause would consider whether Broker A's involvement was merely incidental, or if it established the groundwork for the eventual sale. If Broker B's actions were more directly responsible for the final transaction, they may be deemed the procuring cause.
More on procuring cause for the mastermind archives... In real estate transactions, procuring cause is a legal concept that determines which broker or agent is entitled to receive compensation when a property sale is completed. More specifically, procuring cause aims to identify the originating agent who initiated, generated, and meaningfully advanced the transaction before another agent perhaps later facilitated the closing. The core rationale behind procuring cause is to protect the agent who first secured the client relationship, cultivated the prospect, qualified the lead, and conducted substantive work towards completing the deal. Common qualifying activities include holding initial consultations, previewing potential properties, negotiating offers, orchestrating showings, and otherwise advancing the progress of the transaction. Even if competing Broker B ultimately represents the buyer in closing, Broker A would still be deemed the procuring cause if they demonstrably introduced the buyer to the property, began qualifying their financing, and invested meaningful time establishing the relationship. Procuring cause examines who substantively originated the deal. While subjective at times, factors weighed in any procuring cause determination may include documentation, timelines, communication records, and overall good faith progression of the transaction. Many states have also codified procuring cause laws and guidance. The underlying intent of procuring cause is to ensure fair compensation and prevent unscrupulous poaching of customers when a commissions is imminent. In essence, it aims to reward work, relationships, and time investment of the agent who moved the buyer toward making a purchase decision - not just the agent who obtained the contract signature.
Much of the work you do in this business to generate leads and build referral-generating relationships will not pay you back for months...or even years. And one year from today, you’ll wish you had worked harder today. Next year, you'll wish you had: ➡️ Held more open house events to identify buyer leads. (Are you holding one this weekend?) ➡️ Added more names to your CRM Database. (How many names have you added this week?) ➡️ Launched more drip marketing nurture campaigns. (How many have you created?) ➡️ Called more people in your sphere of influence. (How many people did you call yesterday?) ➡️ Became more visible within your geographic farm. (What was your last farm marketing event?) ➡️ Invested more time in developing deep client relationships. (What was your last client event?) ➡️ Set aside more time to study the intricacies of the business. (What area of the business have you taken a deep dive to learn more about?) Next year, you will wish you had worked harder this year. Don't wait until next year to get busy... Get busy today.
My entire business plan is built on a four-point outline. Check this out: 1️⃣ Add everyone I know to the RARE Agent CRM and assign them to a drip marketing workflow. 2️⃣ Be very visible in my geographic farm by supporting local businesses, participating in organized community events, and holding open events as many weekends as possible. 3️⃣ Respond to all inquiries quickly and professionally. Meet in person with those who ask for assistance. 5️⃣ Provide excellent service and fulfill my promise to serve every client's needs and exceed their expectations. Oh yeah, there is one more thing...deposit commission checks. Literally, everything I do rolls up under those four points. Of course, there are dozens of "details" which are very important, but every detail of my business plan falls under those four main headlines. Don't over-complicate this. If you feel the need to personally micro-manage every aspect and add more and more layers of complexity to your business, by all means, have at it. But I'm telling you, once your business starts rolling like a freight train, you will want to focus your energy and your efforts on a simple, measurable, and repeatable plan and delegate the details. You are the rainmaker, the breadwinner, and the commission earner. You are a RARE Agent and the CEO of your empire. Keep moving forward.
Recently, I was asked to write an article for Phoenix Agent Magazine. Here is a clip: ►► "Our profession is one of the highest callings of all consumer service careers. We are not just facilitating a financial transaction; we are guiding individuals and families through a process that significantly affects their lives. The trust placed in us is immense, comparable to few other service providers. It is a mantle we should wear with honor and pride." ㆐Read the entire article here: https://phoenixagentmagazine.com/2023/08/07/dennis-johnson-elevating-excellence/
@Amy Gilner I find that today it's all about the quality of the visuals. If the visual presentation online is top quality your listing will stand out. Providing your broker has a solid IDX connection to all of the major portals, an MLS listing will appear on up to 100 websites within 12-24 hours. That's very powerful and buyers who are looking online will find your listing. So make sure the visuals are very compelling - use the best photographer, and add drone and video when appropriate. One thing we have been doing lately is creating lifestyle videos for properties including footage that illustrates what it wold be like to live in the home as well as local area information around the home. One last thing... remember that the quality of your marketing will also be your online resume for future sellers who are looking for an agent who will promote their home with excellence. The better your listings look visually online through videos, photos and tours, the faster they will likely sell. In today's competitive market, a compelling visual presentation sets you apart.
Let's talk about hot water. Water that is 211 degrees. Do you know what happens when you add one more degree to 211-degree water? 🔥 IT BOILS 🔥 211-degree water is hot. 212-degree water boils. And boiling water produces steam. 🚂 And steam can power a train. That's the power of 1 degree. One degree is the difference between having hot water... and having the energy required to power a locomotive. This simple metaphor pushes me to give 110% to everything I do. And it reminds me how minor details can make huge changes to our results. Can you push yourself one more degree? Can you find that one extra degree of effort that will change your business in the same dramatic way? It's your business. And you are responsible for your results. So if it's going to be, it's up to you. 🔥 And it's time to turn up the heat 🔥 Beginning today, commit 110% of your effort in everything you do. No more trying. No more "let's see what happens" approaches. No more giving up when things get a little rough. Instead, approach every single task with relentless energy. Your commitment to 212-degree, steaming hot action will generate the necessary power to fuel your business to exponential results.
From the rush of closing deals to the frantic pace of the selling season, our industry is anything but dull. And amidst all of the chaos, the power of keeping a clear head cannot be overstated. ✅ It's Selling Season: It's busy times in real estate. Homes are selling fast, and it's easy to get caught up in the frenzy. But remember, a calm mind can make the difference between a successful negotiation and a missed opportunity. ✅ Multiple Offers: When you're juggling multiple offers on a property, it's crucial to stay focused. A clear head lets you evaluate each offer objectively and guide your client to the best decision. ✅ Difficult Clients: Every agent has faced challenging clients. Keeping cool in these situations can turn a potential disaster into a successful transaction. ✅ Market Changes: The market is constantly in a state of flux. Staying grounded during these fluctuations can help you adapt your strategies effectively and keep your business thriving. Remember, it's not just about keeping your business running smoothly...it's also about maintaining your peace of mind. In the midst of these busy times, remember that we're not just real estate professionals...we are also human beings. Setting time aside to breathe, stay organized, and maintain a positive mindset can make all the difference. Keep your head on straight. Your sanity - and your business - will thank you.
One of the biggest mistakes new real estate agents make is comparing themselves to agents who have been in the business for years…or even decades. Over the years, I’ve had many new agents approach me and say: “Hey, I’m thinking about getting into the real estate business so I can do what you do. Will you help me get started?” Of course, I will. That’s what I have done for most of my career. But I’m not going to mislead someone who is just starting to think about getting into the business to believe they will do anything remotely close to what I do today any time soon. There are coaches and trainers out there who will take your money and promise to teach you how to generate more leads every month than there are sales in the entire MLS. But I’m not one of those guys. New agents get their licenses and see the business my wife and I have built over the last 23 years and they want it RIGHT NOW. Sorry...but that’s not going to happen. It's going to take time. It does not have to take 23 years, but it will take some time. I can cut your learning curve in half by helping you avoid the many mistakes I made. And I can slash it in half again by holding you accountable to do the things that matter every single day. But you have to be willing to listen, follow the path I recommend, and do the work. I love the new agents who call me and offer to buy me a cup of coffee so they can “pick my brain.” They usually want to shortcut the process. They want hacks and tricks... When we meet, I share how I started in the business. I worked for a new home builder. I was given a desk, a phone, and a list of names and phone numbers of people who had visited the builder's model home showroom over the past 1-2 years but did not buy a home. It was my job to call them and beg them to come and take another look at our model homes. And should any of them return to the showroom and buy a home, I would split the commission with one of the seasoned agents who wrote the contract. For the first five months, I worked six days a week, nine hours a day, and split one commission that paid me $2,700.
@Amy Gilner The initial struggles often shape us into the professionals we become. Rookie of the Year is no small achievement and clearly, you've built a solid career. Keep loving what you do, as passion is the key to truly excelling in this field!
@Aaron Jackson Congratulations on your success! It's encouraging to hear that the RARE Tips emails played a part in building your confidence. Here's to many more years of growth in your real estate career!