Here we are, back with Trenesha Harrison, for Episode 2 on New Construction. In our first episode, we discussed new construction from the perspective of the on-site agent, which is how Trenesha started in real estate. In this episode, we’ll discuss how to help you be more prepared as a buyers’ agent, bringing your buyer to the new home community. The two episodes go together, so we suggest you listen to both.

Trenesha lives in Oklahoma City, Oklahoma, and she loves new construction because it’s always changing; it’s always different, and there’s so much that we can learn from how a home is built from the inside out. 

[2:03] Seeing new construction go up is awesome but it might be intimidating for buyers’ agents who may not understand the foundation, the framing, or the roofing. Trenesha has ideas about getting familiar with new construction. On-site agents and builders can train buyers’ agents about new construction.

[2:52] Trenesha has had builders coordinate presentations for her team. Trenesha also does frame training with her team. It’s hard for clients to envision what a house looks like when they’re walking through just a bunch of sticks. It’s hard to put the walls up mentally.

[3:12] Being able as an agent to look at a floor plan or blueprint and understand what you’re seeing will help you mentally put those walls up, not just for yourself but also for your client, so you can identify rooms and locations of appliances for them. You have to know what you’re looking at.

[4:58] To learn floor plans, you have to look at the floor plans of a completed home and an incomplete home. Look at the floor plan as you walk through the completed model home and the framed home to see how the path leads you through the homes.

[5:31] Learn the construction components, such as the plumbing, gas, and electrical wiring, and framing for a door versus a window. This will help you walk this frame with your clients and understand how to explain it. Photos of the framing can also show the buyer possible structural changes they could make.

[7:28] Trenesha has done “X-ray” photos of framing. She also finds it helpful to walk through the house during framing. Understanding what your client is building, you can see anything that may not be right in the framing such as a missing window the client requested above the shower. Address it with the builder.

[8:35] If your client finds something in the framing that doesn’t seem right to them, remain calm and say, let’s talk to the builder, so we can get this corrected as quickly as possible. You want to help the client relax a little built. Building a home is very stressful.

[9:12] If you notice something wrong in the framing, address it with the builder as the buyers’ agent and let the client know you’ve covered it with the builder. You want to make sure your buyer understands you’re working as a team with them and the builder.

[9:54] Keeping your eyes on the job site for your client will help this process go a lot smoother so you don’t get to the end and find structural mistakes that cannot be changed.

[12:53] Within the Buyer-Broker Agreement, Trenesha writes verbiage that covers her exit fee compensation expectations for moving into a contract without her knowledge or participation. This lets buyers know their choices and encourages them to involve their buyers’ agent in any contract.

[13:37] The client must understand that the builder is for the builder, but the buyers’ agent is for the client. Trenesha’s company has these conversations and verbiage standards with their clients from the top. Trenesha trains the agents in her brokerage on new construction. Not being trained well is a liability!

[14:24] In consultations, Trenesha talks to clients about new construction as an option. Some people think that’s for buyers with a lot of money. They don’t realize there are price points that fit everybody. Anybody can own a new construction home during this time. This leads to a discussion on flexibility.

[17:08] Trenesha tells her clients they’re not competing the same way in a new construction market as they are in a resale market, especially not in a fast market. Planning the timing of a move takes some of the ambiguity out of the process.

[18:19] Trenesha mentions some pros and cons of working with a builder’s preferred lender. Compare the closing costs and interest rates between the client’s lender and the builder’s lender. The builder may have a preferred lender because relationships matter.

[20:53] Builders often carry contracts laying out details the real estate commission contract for new construction doesn’t cover, like what is expected at different phases of construction and how much money to put down in addition to your earnest deposit, especially for upgrades and improvements.

[21:29] The builder’s contract may cover their specific warranty and your buyers’ agents’ compensation. Read carefully. The sales rep is knowledgeable about those contracts, so sit down with the on-site agent and your client and ask the agent to go over it with you before your client signs it.

[22:28] In 2020 some builders had clauses that they could change the price, based on the price of lumber. Trenesha has not seen that in a long time. Most of the time, she sees verbiage about appraisal shortages. The buyer has to make up the difference. The builder will not drop the price. Don’t overbuild your home!

[23:17] Monica saw a price-change clause in a contract last year. Be alert for things that may not need to be in the contract.

[23:36] Spec builders build homes without a specific buyer. Semi-custom builders allow you to make some structural changes. They may be already built into the models based on the floorplan you choose. Completely custom builders do whatever you can afford to do.

[24:33] Builders will sometimes let you move walls a bit but not too much. You may be able to pull a wall out two feet to make this side of the house bigger. You could choose a separate tub and shower or just a big shower. You may want sliding glass doors onto a back patio instead of a single door.

[25:08] Design changes include your floor tile choice, wood floors, metal choice for your fixtures, paint colors, brick color, color of fascia or soffit, front door color, and window frame color. It can be overwhelming for some home buyers. There are so many decisions.

[26:06] Your client has to decide what their negotiables are and what they have to have in their home.

[26:47] As a buyers’ agent, know if this is a builder that starts at a low base level or a builder that has a higher base level. Knowing that is a way to bring value to your clients. There are so many nuances that come with extra money.

[27:36] What does the client want and how much are they willing to pay for it? Most structural decisions need to be made at the beginning of contract time. There is a little leeway with some decisions that can be made later, such as how much concrete to pour for a patio.

[28:27] Design selections involve your client’s preferences. Ask them how long they plan to stay in the house if they start choosing extreme colors. Are they OK with repainting when they sell” Cabinets and flooring set the tone of the home. Also, help them watch their budget according to their goals.

[29:49] Builders that Trenesha worked with did a frame walk-through and a dry-wall walk-through. At that stage, there is still time to fix issues with plumbing and electrical placement.

[30:34] Before the final walk-through, there are third-party inspections. In the final walk-through, the builder shows the homeowner the water, gas, and electricity shutoffs, alarm system, sprinkler system, and hot water system.

[31:17] Before a walk-through, the buyers’ agent should discuss with the on-site agent or builder the stage they are in. Will there be time to mark anything they missed? Will the inspection report be addressed? Then you tell your client what to expect in the walk-through. A final walk-through comes before closing.

[32:54] Sometimes buyers don’t feel they have the power to insist on the builder making corrections. Be sensitive to the situation. It is the buyer’s decision to make but you may have to advocate for them. Sometimes the builder pushes back, but a crooked sink counter, for example, has to be fixed.

[34:52] Small or medium items can go on a warranty list to be fixed within two weeks after closing. The buyers’ agent needs to follow up on these items. Homes are rarely perfect by closing.

[35:23] Trenesha’s final advice: Do not be afraid of new construction. There is a lot to add to your expertise toolbox about new construction. Don’t be afraid to search for things that will make you a better real estate agent and buyers’ agent and will help you understand what the process looks like to the buyer.

[35:52] Thanks so much to Trenesha Harrison! I truly believe that our listeners are way more prepared to help buyers purchase new construction homes after listening to the wisdom of Trenesha Harrison. I got some new tips, myself! I am so grateful she could take some time with us!

[36:10] These days, when we have limited inventory options, new construction is a great option at all price points. Education will help you feel more prepared to explore all the available housing opportunities in your area.

[36:25] An ABR elective course: “New Home Construction and Buyer Representation: Professionals, Product, Process” is a course that will give you more detailed information if you want to help yourself feel even more confident working with buyers and builders.

[36:42] You can access the class online or find a live class by searching on Learning.REALTOR. You can take it as an elective to the ABR or by itself. There are lots of opportunities to take the Accredited Buyer Representative, also available at Learning.REALTOR.

[37:01] Thanks so much for joining us! We would like to hear some feedback from you, our listeners about this two-episodes process we’re testing here. Do you like the monthly topic separated into two episodes? Or, do you prefer one longer episode?

[37:17] The email address to contact us is in the show notes and you can let us know which style you prefer. I’m Monica Neubauer for the Center for REALTOR® Development.

[37:26] You got some great suggestions from Trenesah, so I know you are more prepared to go out there and sell some new construction!

Tweetables:

“I do stuff like that for my team, where we do a frame training because it’s hard for clients to envision what a house looks like when they’re walking through just a bunch of sticks. It’s hard for them to put those walls up mentally.” — Trenesha Harrison

“You want to be the calm person in this. … Help the client relax a little because building a home is very stressful. If you notice something wrong, let the builder know as the buyer’s agent but also talk to your client and tell them you’ve addressed it.” — Trenesha Harrison

“Keeping your eyes on the job site for your client is going to help this process go a lot smoother so you don’t get to the end and realize, ‘Oh, this was supposed to be a bedroom, not an office. This was supposed to have a closet.’” — Trenesha Harrison

Guest Links: Trenesha Harrisoniloverealtyok.com

NAR Resource Links ABR® Accredited Buyer’s Representative

Additional Links:

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

New Home Construction and Buyer Representation: Professionals, Product, Process

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Trenesha Harrison is an Oklahoma native. She specializes in new construction, and first-time home buyers, is a listing specialist, and is investor-friendly. She began her career in new construction and has expertise on many top home builders in Oklahoma and the Dallas market. While being well-versed in new construction, her transition into general real estate was natural and mutual. She didn’t just choose real estate, real estate also chose her. “I have learned there is so much more to finding a home for my clients than checking off boxes.” Trenesha understands the importance of not just listening to her clients, but actually hearing them. Selling and purchasing a home is more than a logical or practical decision, there is an emotional component. Understanding someone’s emotional motivation is sometimes more important than the home itself. “As a representative for buyers and sellers, you will not be disappointed with the level of care and attention I put into helping with your home search and getting your listing noticed and sold for top dollar.” 

“As a seasoned real estate professional, I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why I am dedicated to providing exceptional, personalized service for all of my clients. I take great pride in the relationships I build and always work relentlessly on the client’s behalf to help them achieve their real estate goals. My philosophy is simple: Clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. I believe that if you’re not left with an amazing experience, I haven’t done my job. I don’t measure success through achievements or awards but through the satisfaction of my clients.”

I love to be able to participate with my buyer clients when they want to buy new construction. I have bought two new homes, and I love the process of choosing what I want, watching it get built, then knowing how it was built, and having time to make a plan for the move. It’s not for everyone but it is a great option for a lot of people, and it is generally a bit more reliable than what we encounter with resale purchases; not always, but generally. Not all agents feel comfortable selling new construction, though. My guest this month, Trenesha Harrison, and I are going to help you see the benefits and show you how to ask better questions when selling new construction. There is a lot to learn about selling new construction and helping buyers buy new construction. Our first episode will feature Trenesha sharing some overview points and teaching us more about what it’s like to be on the side of working as a salesperson for the builder.

Trenesha lives in Oklahoma City and she has varied experiences with new construction. She’ll tell you more about herself in our chat. She currently owns her brokerage firm. I’m so glad to have her with us, sharing her vast experiences and giving us some great wisdom.

[2:07] Welcome, Trenesha Harrison! I am so glad to have you, with so much new construction experience. That’s what we’ll be talking about today, and you’ve worked on both sides of it. Tell us about yourself, where you live, and where you work.

[2:26] Trenesha lives in Oklahoma City and has worked mostly there. She has been in real estate for nearly 11 years. She has also worked in the Dallas market for a couple of years.

[3:02] Trenesha had worked for years for Oklahoma but was looking for a place where she fit. She took an interview for a job with a builder but the potential earnings seemed too good to be true and she didn’t believe it. They called her back for a second interview and she met the sales manager and the division president. The division president was passionate about the company and what it stood for.

[4:05] Trenesha decided she could get behind someone with such passion for what he was doing. That first real estate job was at a growing regional company. Trenesha started in a sales role and, after a year, moved into a sales management position.

[5:02] After that job, Trenesha moved to the Dallas area. She worked for two national builders there. The companies worked differently; she adopted their sales styles and got amazing training.

[6:15] Trenesha feels like builders look for people with a sales background but not necessarily a real estate background. They look for people who understand how to take a “no” and move past it.

[6:49] Builders’ on-site agents are trained differently than regular real estate agents. They are there to sell you a house.

[7:18] Trenesha moved back to Oklahoma and worked for one more builder before she got her real estate license. After she got her license, she became a full-time real estate agent, working for a brokerage. She no longer worked for the new construction company. Some construction companies considered it to be a conflict of interest for their agents to be licensed, as licensed agents could compete against the company.

[7:55] Trenesha notes that quite a few states don’t require a real estate license to sell new construction homes because you’re working as a sales professional under the builder.

[8:37] New construction builders have career nights and ads on job websites and their websites. If you apply for a job as an on-site agent, ask if you would have to let your license go inactive. The sales training you would receive there is different from the training most real estate agents receive.

[9:32] When selling for a builder, Trenesha liked coaching buyers who doubted their ability to buy a home, leading them to the right resources and helping them achieve a goal they didn’t know they could reach, to buy a home already built, under construction, or work from a plan. There are lots of options.

[12:09] Trenesha says when you as a buyers’ agent bring a client to an on-site agent, let the on-site agent be the expert and do their job. If it’s a fit for the buyer, you and the on-site agent will work as a team.

[13:34] Making an appointment before coming in assures you the attention of the on-site agent. During business hours, it isn’t necessary to make an appointment. If it’s busy, the on-site agent may let you take your client to see the model homes and return to the sales center to discuss them.

[15:19] Trenesha says that a buyers’ agent who acts protective of their client doesn’t have experience working with an on-site agent. If you don’t have experience with new construction, Trenesha recommends first setting up appointments for yourself with several builders to see what they offer and how they sell.

[16:59] Do you need to go to every appointment between your client and the on-site agent? What about selections? Trenesha offers her recommendations on selections.

[19:17] Monica shares a Seth Godin podcast quote: “When feelings of change come in, we tend to feel incompetent.” There is so much change, we have to get used to those feelings of incompetence and learn how to fix them, so as not to feel incompetent.

[20:11] Trenesha advises, you’ve got to get comfortable with being uncomfortable. That’s where you will find the most of your growth. Talk with these sales agents. Understand what they do and let them understand what you do. A lot of them aren’t REALTORS®. Build a rapport with them.

[23:20] Ask the builder if they change the incentive level to buyers, depending on whether a buyers’ agent is involved. If the answer is no, you’re going to be protected. Trenesha always recommends doing an  agreement upfront. She shares a case where an agreement with the builder protected her.

[25:58] Trenesha will share some great tips in Part 2 about how you prepare your buyers when you’re having them sign your agreement with them. Make sure you come back for our second episode!

[30:08] Trenesha’s advice for buyers’ agents: If you take your client to see a new construction model home, watch how the agent interacts with your client and take notes because they’ve had different training than you have received. See how they handle objections and understand the questions they ask.

[30:38] Trenesha learned early to ask three “why”s deep. When a client answers your question, the first answer is surface-level. Dig down two more times to get to the root of the client’s motivation. Trenesha offers an example. A good third question is “Tell me more about that.” That will uncover the real answer.

[31:46] Trenesha’s advice as an on-site agent: To become a new construction expert, join groups, and pay for sales training. Talk with builders. Work with colleagues who have more knowledge of new construction. There is much to be learned in the new construction field. You will elevate your career!

[32:42] Thanks so much to Trenesha Harrison! Do you feel better now about working with on-site agents to help your clients get the best house for them? It’s such a great option, whether a finished market home or from-the-ground-up new construction!

[33:02] Trenesha shared some fantastic tips for how to grow your understanding and your business with new construction opportunities in your community. Your professionalism with new construction communities will yield a better result for you and your client.

[33:17] You can improve your professionalism with education. The CRD has an ABR elective course: “New Home Construction and Buyer Representation: Professionals, Product, Process.” Taking it will give you more education to help you feel even more confident working with buyers and builders.

[33:40] You can access the class online or find a live class by searching on Learning.REALTOR. The Accredited Buyer Representative is also available at Learning.REALTOR.

[33:52] Thanks so much for joining us! Listen for our next episode with Trenesha, where she talks about new construction from more of the buyers’ agent side. I’m Monica Neubauer for the Center for REALTOR® Development.

[34:06] You got some great tips today, so go out there and sell some new construction this time!

Tweetables:

“States have different rules for selling new construction homes. Some states require you to hold a real estate license but there are quite a few states that don’t require a real estate license because you’re working as a sales professional under the builder.” — Trenesha Harrison

“You need to talk with these sales agents and understand what they do, and let them understand what you do. A lot of these agents aren’t REALTORS®.” — Trenesha Harrison

“You have to protect yourself a little bit more with the smaller, single builders; the ones who don’t have a huge development; the ones who build one-offs here and there.” — Trenesha Harrison

Guest Links: Trenesha Harrisoniloverealtyok.com

NAR Resource Links ABR® Accredited Buyer’s Representative

Additional Links:

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

New Home Construction and Buyer Representation: Professionals, Product, Process

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Trenesha Harrison is an Oklahoma native. She specializes in new construction, and first-time home buyers, is a listing specialist, and is investor-friendly. She began her career in new construction and has expertise on many top home builders in Oklahoma and the Dallas market. While being well-versed in new construction, her transition into general real estate was natural and mutual. She didn’t just choose real estate, real estate also chose her. “I have learned there is so much more to finding a home for my clients than checking off boxes.” Trenesha understands the importance of not just listening to her clients, but actually hearing them. Selling and purchasing a home is more than a logical or practical decision, there is an emotional component. Understanding someone’s emotional motivation is sometimes more important than the home itself. “As a representative for buyers and sellers, you will not be disappointed with the level of care and attention I put into helping with your home search and getting your listing noticed and sold for top dollar.” 

“As a seasoned real estate professional, I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why I am dedicated to providing exceptional, personalized service for all of my clients. I take great pride in the relationships I build and always work relentlessly on the client’s behalf to help them achieve their real estate goals. My philosophy is simple: Clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. I believe that if you’re not left with an amazing experience, I haven’t done my job. I don’t measure success through achievements or awards but through the satisfaction of my clients.”

In Part 1 with Brent Lancaster, we started the conversation about the Buyer Agreement and it’s a timely conversation. We recorded this before the proposed settlement from NAR was released. While the settlement is still proposed, and it’s not final, one of the key points in it is the importance of a signed agreement with our buyers. There are details to be clarified but it seems this topic is even more relevant than before we recorded it.

This agreement with buyers to work together and get paid for the work you do is crucial for us. Brent owns a school and teaches CE classes in many states and is very familiar with the laws and agreements in many states. He’s not a lawyer and he’s not a pro on every single one but he does bring so much wisdom to the conversation. I’m thrilled to have him with me for this topic and I hope you join us for both episodes.

Let’s join Brent and learn more about the sections that are in most Buyer Agreements. It’s important to understand all those sections, and why they are important. Your documents will vary from state to state, as does your law. Please refer to your state law first, guidance from your state and local associations, and, very importantly, your broker for clarity on your specific state and situation.

[2:58] Brent Lancaster, welcome back with us! In the last episode, we talked about the Buyer Agreement, having the conversation with the buyer to sign it; why it’s important to sign it, and what happens if something goes wrong. In this episode, we want to discuss the elements of the Buyer Agreement. It’s becoming more important that they are accurate.

[3:49] Defining your Buyer Agreement and how you fill it out is the job of your broker and the lawyers in your state. It is not your job. We’ll talk about some of the things we teach in the ABR® Accredited Buyer’s Representative designation. Go to your broker and your state law for your policy; also check with your state and local associations.

[5:25] The commitment has a start date and an end date with a caveat for an automatic extension for a closing that is scheduled beyond the end date, similar to a listing agreement. The length may be negotiated. It may be for 180 days or no longer than a year to be enforceable.

[6:56] In a discussion with a broker, in arbitration, or with a judge, they will look at much more than the agreement as to whether it’s enforceable. They’ll look at how closely you worked together, who made a change, how much work you did, and more. How many calories did you burn?

[7:45] The Carryover Period extends the time of the agreement if the buyer buys a property after the agreement that you showed the buyer during the agreement. The buyer may still owe compensation. This clause protects you.

[8:40] The Duties of Each Party is in two paragraphs. Discuss this in your buyer consultation in terms of your responsibilities and the buyer’s responsibilities. Try to have the same number of bullet points for each party. Brent gives some examples and priorities of the responsibilities of the agent.

[12:50] Brent discusses some responsibilities of the buyer. The first is to work exclusively with the agent. Explain why that’s important. Discuss what happens if the buyer is approached by another agent, or walks through a model home. No one in a model home represents the buyer. They are working for the seller.

[14:05] The buyer consultation covers some of these situations, such as what properties they’ve looked at, if they have financing and more.

[15:51] One section deals with compensation. Explain how money flows in the transaction. The buyer gets a loan or cash. They hand that money to the seller. The seller pays off the mortgage, and fees, and keeps the net. The listing and buying agents get paid. Explain how much you get paid for your service.

[17:35] Tell your buyer what your fee is and that you will do your best to get it from the seller. If the seller refuses, the buyer decides if they want to look at that home. Before you show any property, explain to the buyer how much they will need to bring to the table. They can decide if they want to look at it.

[20:41] Monica notes that in Spain, an agent can be hired as a personal house shopper for the buyer. Monica also points out that buyers’ agents could be considered to be consultants. Consultants get paid.

[22:18] There can be a section on a general description of the property type, a general area where you will look for it, and how much they will spend. If they materially change their mind, amend the agreement.

[29:37] Brent explains compensation earned vs. compensation paid. What if you take the buyer up to days before closing and they want to terminate the contract? Language stating when your compensation is earned needs to be in the contract. Termination fees need to be negotiated in the contract.

[31:36] You’re going to do what’s best for you. What we wanted to do in this episode is give you a general overview of some of the most important things that are in the Buyer Agreement.

[31:47] Buyers are just dying to buy! There are some pent-up buyer demands. Brent is excited about the rest of 2024, second quarter, third quarter; those agents that are ready, those agents that have planted those seeds, they’re going to reap the rewards. Brent is excited for them.

[32:24] Brent’s final word: “Thanks! I really appreciate the opportunity to do this, Monica! This has been so much fun. I really have enjoyed it and if anyone has any questions, just reach out to me. I’d be more than happy to help at least talk through it or have a conversation. This is my jam! I love talking about it!”

[33:10] Brent, thank you so much for all your wisdom, clarity, and the beautiful way that you’ve explained some of those things!

[33:49] Please continue to listen and learn from people who are creating solutions for you and your business in ways that produce growth and understanding for you and your client. Your ABR® instructors are working very hard all over the country to help us all be more focused on the quality service we bring to our clients and communicating that clearly to our prospects and the public.

[34:09] Go to Learning.REALTOR to get more information about quality training online or in your local area. Getting your Accredited Buyer’s Representative (ABR®) designation is more important than ever. You might consider getting it again for a good refresher while considering your business options and plans. I have so enjoyed the personal engagement with agents in my classes on this topic.

[34:37] Change can be good if we lean into the growth opportunities that it provides! Thanks so much for joining us! I’m Monica Neubauer for the Center for REALTOR® Development.

Tweetables:

“If you don’t tell your buyer what to do, then you’re going to lose that buyer.” — Brent Lancaster

“We wanted to give you an overview of some of the most important things that are in your agreement.” — Brent Lancaster

“Buyers are just dying to buy! There are some pent-up buyer demands. I am excited about the rest of 2024; second quarter, third quarter; those agents that are ready, those agents that have planted those seeds, they’re going to reap the rewards.” — Brent Lancaster

Guest Links: LancasterInstitute.comBobBrooks.com

LinkedIn: Brent Lancaster

NAR Resource Links ABR® Accredited Buyer’s Representative

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

facts.realtor

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Brent Lancaster

Brent Lancaster combines his love of the business of real estate with his passion for education. As president/CEO of one of the nation’s oldest real estate schools, he offers a variety of solutions to the challenges agents face in today’s real estate environment.

In 2003, Brent developed his first online course and has spent every year since, searching for innovative ways to bring quality and consistency to every agent using multiple delivery formats. Today, he continues to teach classroom instruction but has transformed the traditional brick-and-mortar classroom into a multimedia educational experience called On-Live™.

Brent is also the broker/owner of his own real estate firm, Brent Lancaster & Associates.

Please Note: Effective August 17, 2024, all MLS Participants working with a buyer are required to obtain a written buyer agreement before touring a home. For details about this and other practice changes, please visit facts.realtor.

This is our 100th episode — 100 great episodes with so many amazing people who volunteered their time to help you be the best agent you can be! So many helpful topics for your business! Who has been with me on the whole journey, even if you missed a few? If you see me out on the road at Midyear, Annual, or in a class, greet me and tell me what your favorite episode was! I’d love to hear it!

Today, my guest, Brent Lancaster, and I talk about the often legally required, Buyer Representation Agreement. We recorded this before the proposed settlement from the NAR was released. While that settlement is still proposed, and not final, one of the key points in it is the importance of a signed agreement with our buyers. There certainly are many details to be clarified, but it seems this topic is even more relevant than when we recorded it last month, and we knew it was relevant then. This agreement with buyers to work together and get paid for the work you do is crucial to our work.

Brent owns a school and teaches CE classes in many states. He’s very familiar with the laws and agreements in many states. He brings so much wisdom to the conversation. I am thrilled to have him with me on this important topic! I hope you can join me for both episodes!

[3:47] Brent Lancaster is our guest for our 100th episode! Brent says he’s got fireworks and confetti! Brent is super excited and congratulates Monica on the 100th episode!

[4:36] The laws and agency status in each state are not the same. As we talk about this, we need you, the listener, to recognize there are nuances and local practices. Always confirm questions with your broker.

[5:11] We’re going to talk about buyer agency commitments. Not every state practices buyer agency and agreements differ by state. Some states are changing their laws. Watch for changes in your state. We’re recording this in March of 2024.

[6:24] First, know what your state’s default agency position is. Regarding clients and customers, you owe your clients a lot more than you do your customers. We need to be honest and truthful to everyone.

[7:20] You don’t owe your customers a fiduciary duty. You owe your clients a higher level of service: loyalty, obedience, confidentiality, and in some states, fiduciary duty. You also have the Code of Ethics, over and above the law.

[8:41] March’s episodes with Lynn Madison are about all the things agents do for buyers. The structure is changing and there’s no longer an MLS amount a buyer’s agent will get paid. You’ll need an agreement,

[10:22] Buyer’s agents have just been accepting the Offer of Compensation. You show different properties, do the same thing, and are offered three different levels of compensation. That’s going away. Now, you, the buyer’s agents are in charge of your level of compensation.

[11:27] Now you get to put your value on paper. A lot of agents haven’t done it. Change is hard even if you want to change. We’re at the point where it’s potentially obligated. Get on board, early!

[12:12] Brent says a conversation needs to happen before a contract. Brent sits with a seller or a buyer and explains his value and services. The Listing Agreement or the Buyer Representation Agreement is a summation of those conversations.

[15:35] Tell your buyer that to perform services for them to help them buy the house they want, you need to be in a client relationship with them. That’s what the Buyer Representation Agreement does. You must know what your value is. Do you struggle with your value? Go to Competition.REALTOR (now facts.realtor) for ideas!

[17:11] When do you have the buyer sign the Buyer Representation Agreement? What do your broker and state law say? Brent says to have the buyer sign before the first showing. Showing is part of your value.

[18:10] The first face-to-face contact when you present the Agency Disclosure, if your state has that, is a good time to present the Buyer Representation Agreement. A buyer consultation could be a good time.

[21:22] If the buyer already has an agreement with another real estate agent but wants to work with you, find out if the buyer has gone on showings and what work the other agent has performed. Buyers need to be educated. A buyer can’t work with two agents. An agreement can be terminated with written notice.

[23:13] REALTORS® have an affirmative obligation to determine if a buyer has a Buyer Representation Agreement. If an agent takes your client, ask if they asked the client if they had a signed agreement.

[24:51] If a buyer doesn’t want to sign an agreement, you make a business decision. Is it a buyer you want to work with? Is it a buyer? What’s going to happen if you don’t get paid? It’s no fun to be burned.

[26:40] What about unrepresented and unqualified buyers going into open-house homes? The NAR says 89% of buyers are represented by a real estate professional. Explain your value to the buyer!

[29:35] What if the buyer’s agent doesn’t get paid? Brent notes some scenarios. Agency Representation and compensation are separate things. Legal representation doesn’t guarantee compensation.

[31:15] A Buyer Representation Agreement is a contract. The buyer says the agent will do work for the buyer and the buyer will pay the agent for the work. No reasonable person expects agents not to get paid.

[31:55] The more the agent explains to the buyer how money flows in the transaction, the better off the agent will be. Brent covers negotiating cooperative compensation between the buyer and seller’s agents.

[34:48] Brent believes that the buyers’ agents who are strong enough to have the conversations about compensation are the ones who are going to get the deals.

[35:16] Monica encourages buyers’ agents not to be afraid to negotiate with the seller about compensation. The seller may not have chosen to make an offer but may agree to negotiate for a sale.

[36:05] Brent’s final words: “Get used to having the conversation! … Those who get used to having it sooner are the ones who are going to win! We’re entering into an awesome market! Buyers are going to be more plentiful. If you can have the conversation, you’re going to convert faster than anybody else!”

[36:33] Thanks so much to Brent Lancaster for sharing so much wisdom! I hope this conversation expanded your thinking about the benefit of having a signed agreement with your buyers. It is common for us to have agreements with service providers. We should have one too, with our clients.

[36:58] Please join us for the second episode, where we will discuss the individual components of the agreement and why they are important. We will also discuss some of the considerations regarding even more clarification for the agreement, moving forward.

[37:13] In these days, please listen to people who are creating solutions for you and your business in healthy ways. Your ABR® instructors are working very hard all over the country to help us all be more focused on the quality service we bring to our clients and to help us communicate that clearly.

[37:35] Go to Learning. REALTOR to get more information about quality training online or in your local area. Getting your Accredited Buyer’s Representative designation is more important than ever. If you got it more than five years ago, you might consider getting it again. It’s been updated and is so helpful! [38:08] Change can be good if we lean into the growth opportunities that it provides! Thanks for joining us! I’m Monica Neubauer for the Center for REALTOR® Development.

[39:17] When your clients ask you questions, have great conversations with them so you can go out there and help them buy those properties!

Tweetables:

“A lot of buyer’s agents have been staring at the Offer of Compensation and have just been accepting of what it is. Conceivably, I could show three different properties, do the exact same thing and essentially be offered three different levels of compensation.” — Brent Lancaster

“The sticking point is it’s different. A lot of agents haven’t done it before. It’s different and hard. Change is hard even if we want to do it. Now, we’re at the point where this agreement is something that’s potentially going to be necessary.” — Brent Lancaster

“[A Buyer Representation Agreement] is a contract where the buyer is saying ‘You’re going to do work for me and I’m going to pay you for that work.’ I don’t think that there’s anyone … that’s reasonable that expects agents not to get paid for what they do.” — Brent Lancaster

“That’s the market that we’re headed to and those buyer’s agents that are strong enough to have those conversations [about compensation], I think those are the ones that are going to win the deals.” — Brent Lancaster

Guest Links: LancasterInstitute.comBobBrooks.com

LinkedIn: Brent Lancaster

NAR Resource Links ABR® Accredited Buyer’s Representative

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

facts.realtor

098: “Navigating Client Conversations: Communicate Your Value with Confidence and Clarity with Lynn Madison: Part 1” 105 More Ways REALTORS® Are Worth Every Penny of Their Compensation

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Brent Lancaster

Brent Lancaster combines his love of the business of real estate with his passion for education. As president/CEO of one of the nation’s oldest real estate schools, he offers a variety of solutions to the challenges agents face in today’s real estate environment.

In 2003, Brent developed his first online course and has spent every year since searching for innovative ways to bring quality and consistency to every agent using multiple delivery formats. Today, he continues to teach classroom instruction but has transformed the traditional brick-and-mortar classroom into a multimedia educational experience called On-Live™.

Brent is also the broker/owner of his own real estate firm, Brent Lancaster & Associates.

Please Note: Since the recording of this episode, NAR entered into a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. To learn more, and to prepare for the practice changes taking effect August 17, 2024, go to facts.realtor.  

Welcome to Part 2 of my conversation with Lynn Madison! Today we are talking about different business models. As you refresh your presentation of what you do and what you charge, we want you maybe to consider some other options or, at least, some other parts of the business and we also want you to be aware of the possibility that somebody else might have a different business model; how are you going to be prepared for that? Go back to episode 098 to hear the start of our conversation on clearly communicating your value to your clients. Lynn Madison has received the REBAC Hall of Fame Award, the REBI Distinguished Educator Award, and Educator and REALTOR® of the Year, both from the Illinois Association of REALTORS®. She is also one of the primary authors of the ABR® designation course and we are thrilled to have her back with us again. We will link to the other two episodes where Lynn has been with us, in the show notes.

Welcome back, Lynn Madison, for Episode 2!

[2:25] So we just want to talk about maybe some of the different ways people can get paid, maybe some challenges we see, and what we hear from people talking about business models. [2:45] Your business model must be something that is allowed in your state. Your menu of services must not include options that are lower than the minimum services that the license law requires you to give.

[5:05] Competition.REALTOR (now facts.realtor) lists tasks you perform for clients. Are they in your business model? Lynn says your business model is what you deliver but be consistent. She talks about when inconsistency hurt her.

[7:44] If you provide different levels of service, have the client check and sign on a written document what level of services they are choosing, so there is no confusion or anger later. Be very clear about it.

[8:37] Lynn has a pledge of performance. In it, she offers her full level of service to every client. If she offered less service to some, she would need a separate pledge of performance for that level of service.

[10:07] Lynn teaches about six buckets: finding a suitable property, showing property, analyzing the market, writing a reasonable offer, negotiating the offer, and following the transaction through to the closing.

[10:47] People don’t like to lose out. When you have a buyer sign a Buyer Representation Contract, you move the buyer from customer-level service to client-level service. Lynn explains what that means by law.

[14:50] You’re going to want to have this Buyer Representation Contract signed with a compensation amount in it. You’re going to have to figure out how to talk about compensation with your buyers.

[15:33] Stop being afraid of talking about compensation. Explain what it is you do to earn the money you are making. Nobody works for free.

[19:34] Study in the last 18 months in your market, how long it took you to find a property for your buyer. Tell your client, in this market, it takes about four to six months to find a house. Would that fit your plans?

[22:54] Follow your state law regarding the contract and protection period. What if they buy something after the contract that you showed them? If the contract period is long, there must be an opt-out.

[26:52] Lynn wants to give her buyers premium-level services but if the buyer finds a house in two weeks instead of six months, that’s a good place to offer a menu of services. Also, Monica tells why this podcast episode is not an antitrust violation conversation in the discussion of business models.

[29:27] You can use a free Zoom account to meet with buyers, especially if out of town. Share your screen with them. Tell how they will be notified of new listings in MLS and other features and statistics.

[31:10] Statistics of days a home stays on the market can show the urgency of making a move to buy a home. You can show these electronically or on paper. NAR resources linked below can help.

[32:43] Lynn takes NAR resources and personalizes them for herself to show her clients her pledge of performance of what she will do for them to get them the right property at the right terms to the closing.

[34:40] How Lynn deals with appraisal disagreements.

[35:41] In this hour, Monica and Lynn have shared some of what they teach in the ABR® class. Be sure to take the ABR® designation, with Lynn, online, or locally.

[36:49] “If you’ve not read the book, Who Moved My Cheese?, get it and read it. If you think about what we’re going through, it helps you realize that you’ve got to change your mindset.”

[37:52] Monica thanks Lynn Madison. She gives us so much great information! What is your takeaway from this conversation? Can you bring some points back to your team or brokerage firm?

[38:05] Please share this podcast with your fellow agents. I am learning all the time and I am talking with some very well-trained and thoughtful educators. They want to help you and the people that they train to make the transition that needs to be made. Please share this as a resource for this time.

[38:31] The Center for REALTOR® Development offers excellent training and you can find live, live virtual, and online courses, designations, and micro-courses. Check out the ABR® offerings and the SRS offerings locally or at Learning.REALTOR.

Tweetables:

“Your business model cannot be something that is not allowed in your state. Some states have, for example, Minimum Services. If I have an exclusive agreement with my client, whether it's a listing or a buyer, I must give them a certain level of service.” — Lynn Madison

“I’m at a loss as to understand why a buyer would want to go [without representation]. But part of the problem is we haven’t been having these conversations with the buyers.” — Lynn Madison

“You’re going to have to figure out how to talk about compensation with your buyers. All of this ties back into your value proposition.” — Lynn Madison

“If you’ve not read the book, Who Moved My Cheese?, get it and read it. If you think about what we’re going through, it helps you realize that you’ve got to change your mindset.” — Lynn Madison

Guest Links: Madisonseminars.com

[email protected]

080: “Talking Buyers, Contracts, Value, and Fees with Lynn Madison”

098: “Navigating Client Conversations: Communicate Your Value with Confidence and Clarity with Lynn Madison: Part 1”

NAR Resource Links ABR® Accredited Buyer’s Representative

SRS Seller Representative Specialist

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Competition.REALTOR

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Lynn Madison

Lynn is the owner of Lynn Madison Seminars, a full-service training and development company devoted to the advancement of professionalism in real estate.

Formerly Lynn was Vice President and Director of Career Development for The Prudential Preferred Properties in Chicago, a 25 office firm with over 900 associates, where she authored and trained their New Agent Institute. Before that, she held the same position with First United REALTORS®, a local independent with 28 offices. She was the manager of two different offices for First United. Prior to that, she was an award-winning salesperson — receiving their Salesperson of the Year honors.

Lynn speaks annually at the NAR conventions and is an ABR®, BPOR, GRI, SFR, SRES®, and SRS instructor and has conducted classes in over 30 states. Lynn's involvement with REBAC goes beyond instructing. She conducts the trainer recertification program for REBAC instructors annually and has authored or co-authored the SFR, ABR®, and BPOR courses.

Lynn regularly conducts the New Member Orientation program for many of the associations in the Chicagoland area, as well as Professional Standards and Leadership training sessions for many state and local Associations. She is the Treasurer of Main Street Organization of REALTORS® her local 14,000+ member association.

At the National level, Lynn currently serves on the NAR Professional Development Committee, and the RPAC Participation Council, and has served on Equal Opportunity and Cultural Diversity as well as Professional Standards and Risk Management. Lynn has been honored with two NAR Hall of Fame memberships — RPAC and REBAC.

At the state level, Lynn has served as Chair of the RPAC Fund Raising Committee, Professional Standards Committee, and GRI Board of Governors and has served as a member of the License Law Rewrite Task Force, License Law Scope & Structure Working Group, the Equal Opportunity Working Group, Education MIG as well as IAR’s Strat Plan and Convention Committees. She is the author of over 20 continuing education classes in Illinois. She has also served on the state Continuing Education Task Force and the CE Curriculum and Instructor Development Subcommittees. As a member of the Illinois Agency Task Force Lynn has been instrumental in the creation and training of new agency policies.

Lynn is ITI certified, a member of the Real Estate Educators Association, was a National Educator of the Year award winner, has received the Educator of the Year award from AIREE, the Illinois real estate educator of the year and REALTOR® of the Year honors from her local association in 2003 and was named the Illinois Association REALTOR® of the Year for 2011.

Lynn's Credentials

• 2016 President Mainstreet Organization of REALTORS®, 18,000 MEMBER ASSOCIATION

• 2011 REALTOR® of the Year — Illinois Association of REALTORS®

• 2003 REALTOR® of the Year — Main Street Organization of REALTORS®

• Speaker at the NAR Convention since 1993

• REBAC Hall of Fame

• RPAC Hall of Fame

• Conducts over 250 continuing education seminars annually

• NAR and REBI Certified to Teach:

  • ABR®

  • SFR

  • SRES®

  • SRS

  • RENE

  • PSA

Welcome back, Friends! Our podcast has received another award from AVA Digital Awards, an international competition that recognizes excellence by creative professionals in the area of digital communication. We received a Gold Award for Podcast and Audio Production! 

We have another amazing award-winning guest today! She has been recognized as an amazing instructor, having received the ABR® Hall of Fame Award, the REBI Distinguished Educator Award, REALTOR® of the Year, and Educator of the Year, both from the Illinois Association of REALTORS®. She is one of the primary authors of the ABR® designation course and we are thrilled to have her back with us again. She was with us last year to talk about the changes in the industry and how to prepare for them. We will link to that episode in the show notes.

Today, we are going to dig in deeper with Lynn, specifically about ways to show your value to your clients. We must improve our skill in communicating what we do and how valuable our skills are to our clients. We have two episodes this month with Lynn, and I hope you can listen to both of them! They are worth your time!

[3:19] Build your value proposition; if you don’t quantify what you’re doing, you don’t know the value you bring to buyers.

[4:46] You need the client to know what you do for them. It is sometimes harder and more work to get a lower-priced transaction to the closing table. The average buyer doesn’t know the value you bring if you haven’t explained it to them.

[7:39] Lynn notes that “value proposition” is sales language and people don’t want to be sold, they want to buy a house. Tell the buyer about the value you bring them, not about your value proposition.

[8:29] A contractor building a house has a standards sheet showing what is included and some optional upgrades. Lynn talks about using a Buyer Representation Agreement. Lynn makes sure the buyer understands the “big bucket” things she does for them.

[11:38] A weekly call with buyers keeps them updated on what you have done for them to help them buy a house. Lynn thinks we all should be doing that.

[13:46] Lynn tells buyers that not all available properties are on the internet and not all properties on the internet are available.

[14:03] If you don’t consistently touch base with the buyer, they go out looking with other people. Stay in touch weekly with your buyers!

[16:59] Use your analytical tool in your MLS and communicate to your buyers what the market is doing. Lynn shares a recent example about pricing listings.

[18:34] It’s hard for buyers to see we have an inventory shortage when the houses are everywhere. Unfortunately, in many cases, we’re not communicating this to our buyers.

[19:24] In your weekly call with your buyer, share data, such as the updated absorption rate. In the market niche you’re looking at, what went under contract this week?

[20:03] Lynn shares a story from her travels. Lynn shares more facts about the absorption rate or month’s supply of inventory.

[24:36] You would have a license law problem and a code of ethics problem if you showed houses to someone in an exclusive contract to purchase with another brokerage company.

[28:16] If something changes along the way, you may need multiple consultations.

[31:23] Sellers are now recording the agent and buyers going through their homes. So we have to be careful what we talk about. This is a relationship business. We build relationships in person.

[33:54] Some websites pull the new listing data in the middle of the night. That puts them almost 24 hours behind the MLSs. This happens in a counseling session.

[34:36] Lynn’s last word: “NAR has a website called Competition.realtor. On there find ‘105 Things that Buyer Agents Do for Their Buyer Clients.’

[35:20] It might help you to formulate your value proposition. Find out what you’re passionate about, that your buyers have benefitted from, and talk about that.

[38:05] Kudos for doing your best to get your clients the help they need and want. The Center for REALTOR® Development offers excellent training and you can find live, live virtual, and online courses, designations, and micro-courses. Check out the ABR® offerings locally or at Learning.realtor.

Tweetables:

“You go too long without talking to somebody and you can’t figure out how to get yourself back on track.” — Lynn Madison

“Not all of the available properties are on the internet and not all of what’s on the internet is available. We have stuff in the MLS that they don’t see. Most MLSs do.” — Lynn Madison

“This is a relationship business and it’s hard to build a relationship if all you’re ever doing is communicating with somebody via computer and texting.” — Lynn Madison

“I talk with my buyers a lot about my having at least 10 different ways to make their offer stronger in a multiple-offer situation.” — Lynn Madison

Guest Links:Madisonseminars.com

[email protected]

080: “Talking Buyers, Contracts, Value, and Fees with Lynn Madison”

NAR Resource LinksABR®

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Lynn Madison

Lynn is the owner of Lynn Madison Seminars, a full-service training and development company devoted to the advancement of professionalism in real estate.

Formerly Lynn was Vice President and Director of Career Development for The Prudential Preferred Properties in Chicago, a 25 office firm with over 900 associates, where she authored and trained their New Agent Institute. Before that, she held the same position with First United REALTORS®, a local independent with 28 offices. She was manager of two different offices for First United. Prior to that, she was an award-winning salesperson — receiving their Salesperson of the Year honors.

Lynn speaks annually at the NAR conventions and is an ABR®, BPOR, GRI, SFR, SRES®, and SRS instructor and has conducted classes in over 30 states. Lynn's involvement with REBAC goes beyond instructing. She conducts the trainer recertification program for REBAC instructors annually and has authored or co-authored the SFR, ABR® and BPOR courses.

Lynn regularly conducts the New Member Orientation program for many of the associations in the Chicagoland area, as well as Professional Standards and Leadership training sessions for many state and local Associations. She is the Treasurer of Main Street Organization of REALTORS® her local 14,000+ member association.

At the National level, Lynn currently serves on the NAR Professional Development Committee, and the RPAC Participation Council, and has served on Equal Opportunity and Cultural Diversity as well as Professional Standards and Risk Management. Lynn has been honored with two NAR Hall of Fame memberships — RPAC and REBAC.

At the state level, Lynn has served as Chair of the RPAC Fund Raising Committee, Professional Standards Committee, GRI Board of Governors and has served as a member of the License Law Rewrite Task Force, License Law Scope & Structure Working Group, the Equal Opportunity Working Group, Education MIG as well as IAR’s Strat Plan and Convention Committees. She is the author of over 20 continuing education classes in Illinois. She has also served on the state Continuing Education Task Force and the CE Curriculum and Instructor Development Subcommittees. As a member of the Illinois Agency Task Force Lynn has been instrumental in the creation and training of new agency policies.

Lynn is ITI certified, a member of the Real Estate Educators Association, was a National Educator of the Year award winner, has received the Educator of the Year award from AIREE, the Illinois real estate educator of the year and REALTOR® of the Year honors from her local association in 2003 and was named the Illinois Association REALTOR® of the Year for 2011.

Lynn's Credentials

■      2016 President Mainstreet Organization of REALTORS®, 18,000 MEMBER ASSOCIATION

■      2011 REALTOR® of the Year — Illinois Association of REALTORS®

■      2003 REALTOR® of the Year — Main Street Organization of REALTORS®

■      Speaker at the NAR Convention since 1993

■      REBAC Hall of Fame

■      RPAC Hall of Fame

■      Conducts over 250 continuing education seminars annually

■      NAR and REBI Certified to Teach:

○      ABR®

○      SFR

○      SRES®

○      SRS

○      RENE

○      PSA

We’re back with our second episode of the month to talk about connecting with people so that you will have clients throughout 2024. We call it filling your pipeline. Many of us focus on getting business. If we can spend time connecting with people with purpose, there generally will be a more steady flow of clients throughout the year. Did you apply anything you’ve learned from the first episode already? We would love to hear what worked for you! Our email address is in the show notes.

In this episode, we will look at the difference between online leads and live leads and a few marketing tips. February’s guest is Janet Judd. She’s a 2022 ABR® Hall of Fame recipient, Missouri Real Estate Commissioner, former President of the Missouri Association of REALTORS®, and she has won a number of awards in the business. She is going to give you real actionable tips to help you fill your buyer pipeline for 2024.

[3:08] Excellent content on your site makes the difference. Janet gives some great recommendations. 

[4:37] Janet hangs on to hits because they picked her. Respond promptly when they contact you. Janet suggests you host virtual tours and webinars on your site.

[7:08] Janet pays the website professionals for content, SEO, and marketing of her site. 

[10:25] Janet advertises in a neighborhood magazine to 55,000 homes a month. That’s generated a few calls that she puts in her pipeline to send a monthly postcard. 

[16:47] When her leads start responding more conversationally to her texts or emails, Janet knows it's time to set up a phone call with them to slowly but surely reel them in.

[18:46] Make sure you have testimonials on your website. Ask your clients for a testimonial right at the closing. 

[20:29] Janet is a worker bee. She volunteers and works hard. Active listening is one of Janet’s superpowers. If you can do that, it makes all the difference.

[22:13] Janet carries a wire-bound index card file in her purse to record notes about new contacts. For Janet, Top Producer is her “second brain.” Find your “second brain” that creates a flow.

[31:30] Be a resource. It creates credibility, trust, and an emotional connection. People decide with their emotions. The educational approach is her focus, now.

[33:50] I’m going to encourage our listeners to go back and listen to Part 1 of this conversation if they haven’t already where Janet talks about her system of keeping up with leads and clients.

[34:55] Some states allow incentives or inducements, some do not. Check your state law before offering one.

[36:08] Some agents hold R.S.V.P.-only open houses as a security issue and let only one person come in at a time. Don’t share your personal information online.

[38:08] Janet’s last word: “You need consistent, excellent service to your existing clients. That’s what’s going to keep you in the business. … Whatever you do, autograph it with excellence. 

[39:11] My favorite takeaway from Part 2 was the reminder that everything we do to improve our visibility will cost us time or money. What was your favorite tip from the 2nd episode? If you missed the first episode about great ways to connect with people in real-time, head back and hear Janet’s tips to get started.

[40:25] We’re going to be having several months of episodes focusing on tools to help you communicate more clearly, set excellent expectations, and create great experiences. What classes are you planning to take to improve your business? Go to Learning.realtor to find lots of live, virtual, and online classes.

Join us in March for more ways to improve your business model and to think a little bit differently. Thanks for joining us! Make some calls, tighten up your system, go out there, and sell some houses!

Tweetables:

“You also want to have a call to action on your website so that they know what to do. For me is just ‘Call JJ.’ Call Janet Judd.” — Janet Judd

“I truly believe the old ways are coming back again. So print media could be coming back. So I started doing that.” — Janet Judd

“It has to be ‘Janet-proof.’ That means I can’t break it, it’s easy to learn, it’s intuitive, I can get to it on my phone, and get that information that I need, right away … before I call them, and get all those notes.” — Janet Judd

“If I can get them on a phone call, I can usually get them.” — Janet Judd

Guest Links: Jane Judd on LinkedIn

NARRPR.com REALTOR® Property Resource

Slydial

American Greetings digital cards

Top Producer®

NAR Library

Building a Second Brain: A Proven Method to Organize Your Digital Life and Unlock Your Creative Potential, by Tiago Forte

NAR Resource Links NAR.realtor/technologyABR®

SRS

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Janet Judd

Former Police Officer. First female hired by a 55-man department in St. Louis County — in the early ’80s. First female elected Class President at the St. Louis Police Academy. That’s why I teach the updated and revamped NAR REALTOR® Safety Course via Zoom and in-person. 2022 Chair of NAR’s Safety Advisory Council. Presented Safety Topic at the August 2021 Leadership Summit. First Hispanic to be elected President of Missouri REALTORS® and St. Louis REALTORS®. Missouri Real Estate Commissioner. 2023 Triple Play Instructor. 6000+ attendees from New York, New Jersey & Pennsylvania. NAR Appointee to the elite Professional Standards Advisory Council.

• Janet Judd, CRS, CIPS, GRI, ABR, SRES, AHWD, RENE

• RE/MAX Results Broker-Associate

• 2021 President Missouri REALTORS®

• 2016 Salesperson of the Year Missouri REALTORS®

• 2015 President St. Louis Association of REALTORS®

• Hall of Fame Member Realtors® Political Action Committee

• RE/MAX International Hall of Fame

• St. Louis Magazine 15-year Five-Star Award

• Recipient For Client Customer Service

• www.JanetJudd.com

How is your business growing and flowing right now? I hope you have a pipeline full of clients who are looking right now or planning to buy or sell in the next few months. We know, though, that hope is not a strategy. We need better tools than just hope to get our buyer pipelines filled. We know that a whole lot is happening in the real estate industry right now. We will be having several months of focusing on tools you can use to communicate more clearly, to set better expectations, and to create great experiences for you and your clients. February’s guest is Janet Judd. She’s a 2022 ABR® Hall of Fame recipient, Missouri Real Estate Commissioner, former President of the Missouri Association of REALTORS®, and she has won a number of awards in the business. She is going to give you real actionable tips to help you fill your buyer pipeline for 2024.

As a reminder, this a two-part episode, with the second part coming later this month. 

[3:17] Janet is a solo agent in Missouri who has been selling real estate full-time for 38 years. She loves what she does and has a servant’s heart for volunteering. 

[5:42] You are the product when you’re meeting clients. They need to know that you’re engaging. You need to be credible and communicate to them the value of doing business with you. 

[11:08] Janet discusses an app that let’s you call someone’s voicemail when you can’t chat. 

[14:15] For Janet, a pipeline means knowing she will be able to have a buyer close on a property.

[15:00] Janet takes the most motivated ones out to show properties. She leads them along the pipeline with frequent contacts and suggestions. 

[16:04] Janet has buyers in the pipeline for months. She keeps all her contacts in the loop so they don’t run off with someone else. She gets them under a Buyer Agency Agreement as soon as she can. 

[21:05] When buyers know what they want, it’s easier to define and find it. Then you have to hold their hand and make sure they stay patient while you do your job. 

[22:00] Janet discusses the CRM she uses. She also keeps a file folder for every contact in the pipeline with notes. She goes through all the folders each day, making contacts as appropriate. 

[27:10] Sometimes you lose an opportunity. Ask people who may be a year from buying how often they want you to contact them. Janet discusses how to motivate them.

[29:34] Janet invites people to sign a Buyer Agency Agreement at the first meeting. She writes the agreement for a year. It’s a two-way commitment. Don’t disappear from view.

[33:15] Janet’s last word: “I really just want you to understand the fact that you’re the product. Help them make that emotional decision to work with you and be excited about the opportunity to work with them and help a dream come true — the American Dream come true.”

[34:02] We will be continuing with great education to help you work more clearly and more intentionally with buyers. Join us every two weeks for new episodes and review the past episodes if you need help with specific topics. Thanks for joining us! Go out there, improve your system, and sell some property!

Tweetables:

“I’ve been selling real estate full-time for 38 years. I don’t have a team. I’m a solo agent and I still love what I do and definitely have a servant’s heart for volunteering.” — Janet Judd

“Being a buyer’s agent, you’ve got to dance the way they want you to dance. It’s on their schedule. When they call, you’ve got to pop up!” — Janet Judd

“Help buyers to make that emotional decision to work with you; be excited about the opportunity to work with them and help a dream come true — the American Dream come true.” — Janet Judd

Guest Links: Janet Judd on LinkedIn

NARRPR.com REALTOR® Property Resource

Slydial

American Greetings digital cards

Top Producer®

NAR Library

NAR Resource Links NAR.realtor/technologyABR®

SRS

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Janet Judd

Former Police Officer. First female hired by a 55-man department in St. Louis County — in the early ’80s. First female elected Class President at the St. Louis Police Academy. That’s why I teach the updated and revamped NAR REALTOR® Safety Course via Zoom and in-person. 2022 Chair of NAR’s Safety Advisory Council. Presented Safety Topic at the August 2021 Leadership Summit. First Hispanic to be elected President of Missouri REALTORS® and St. Louis REALTORS®. Missouri Real Estate Commissioner. 2023 Triple Play Instructor. 6000+ attendees from New York, New Jersey & Pennsylvania. NAR Appointee to the elite Professional Standards Advisory Council.

• Janet Judd, CRS, CIPS, GRI, ABR, SRES, AHWD, RENE

• RE/MAX Results Broker-Associate

• 2021 President Missouri REALTORS®

• 2016 Salesperson of the Year Missouri REALTORS®

• 2015 President St. Louis Association of REALTORS®

• Hall of Fame Member Realtors® Political Action Committee

• RE/MAX International Hall of Fame

• St. Louis Magazine 15-year Five-Star Award

• Recipient For Client Customer Service

• www.JanetJudd.com

We are so glad you joined us to help you start your new year! This episode’s guest is Matthew Rathbun. Matthew discusses business suggestions, strategies, and ideas to help you make your plans for success this year. This is Part 2 of the interview with Matthew on Business Planning. The first part was launched earlier this month. In this part 2 episode, Matthew leads us into a conversation about the people you’re partnering with in your business and gives some great suggestions when you consider the rhythm of work and home life. We would also love to hear your feedback on this new format with two parts and shorter episodes. 

[2:30] Matthew urges you to choose your sellers and buyers carefully. Allot your time and attention to the right people.

[7:30] Matthew explains that you are alienating your market if you post what a great time it is to buy. It is a very different marketplace today with a different cost of living and a weaker job market than past markets.

[8:27] Whatever you post in a public forum, consider how it impacts your target audience. Tell them you understand their pain points and villains and you have the solutions to their problems. 

[12:27] Matthew sits on the board of a housing non-profit. He had a recent conversation with a board member about the challenges people have coming up with the down payment.

[13:40] Matthew recommends apps that can function as your Personal Knowledge Management System. 

[16:49] Matthew discusses digital mind mapping and a powerful tool for this. 

[18:01] Matthew does his business planning in October and November to get ready for January. Do it when it’s right for you.

[21:43] Do not trade your family for your career. Your career is alluring; everyone’s feeding your ego. It’s an ego-driven industry. What your spouse and kids think of you is eternal.

[30:21] Matthew’s last word: He has a business planning workbook that you can download on this site. 

[31:15] Look for things like virtual assistants. Start budgeting; this market is going to create opportunities. 

[31:55] The world is changing rapidly. There is going to be a lot of opportunity in the changes with the right mindset and the right plans. 

[33:35] We hope you will consider taking the ABR®, the Accredited Buyer’s Representative designation, this year. You can learn more at learning.realtor.

[34:02] We will be continuing with great education to help you work more clearly and more intentionally with buyers. Join us every two weeks for new episodes and review the past episodes if you need help with specific topics. Thanks for joining us! Go out there, improve your system, and sell some property!

Tweetables:

“[Use a] Personal Knowledge Management System. Our brains were designed for creating ideas, not for remembering things.” — Matthew Rathbun

“It is not worth trading your family for this career. I have watched it happen way too many times.” — Matthew Rathbun

“I don’t expect my family to support my career. I think that’s a misalignment.” — Matthew Rathbun

Guest Links: Matthew Rathbun on Facebook

Canva Templates at Etsy.com

NARRPR.com REALTOR® Property Resource

MyStorybrand.com

Apple Notes

Evernote

Getting Things Done: The Art of Stress-Free Productivity, by David Allen

Apple Freeform

MindMup

Cofftivity

MyOutDesk

Matthewrathbun.com/resources/

NAR Resource Links NAR.realtor/technologyABR®

SRS

C-RETS class

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

REBI

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Matthew Rathbun

I’m unapologetically me. I love learning and sharing what I’ve learned with anyone willing to listen. It’s what I’ve done all of my life. I’m a restless and demanding learner myself, so I focus on people in the audience who want advanced information, a little humor, and actionable information when they leave. If a learner attends one of my sessions, I feel honored to have them there and feel that I have a duty to ensure that the time they have given me will be valuable to them. I believe that every moment with learners should count.

I still work with clients and actually practice the skills and information that I deliver in each class. I’m also a licensed broker in Virginia, DC, and Maryland and a licensed instructor in many states in the U.S. I am the Executive Vice President of a large multi-office firm in Virginia and oversee operations, risk management, and agent development among other things. Before becoming a broker, I was a high-performing agent and received a number of awards and accolades throughout the year including the Virginia Association Instructor of the Year, and was recognized by RISMedia Newsmaker Thought Leader in 2020.

My course offerings are pretty extensive and I’m always happy to create unique content if it’s within my knowledge base. I’m a certified CRS instructor and have contributed to or written various national certification and designation courses for RRC, REBAC, and REBI (all three NAR education institutes). My emphasis is on leadership development, technology, risk management, and advanced practice of real estate. I have a wide range of experience with risk reduction, including serving on the local, state, and national professional standards workgroups, MLS compliance committees, and various other industry opportunities that have given me broad exposure to what should be the best practices in the industry. I am an alumnus of the VAR Leadership Academy. As an author, I have contributed to many real estate industry magazines and online industry news venues.

A few accolades:

• REBI National Distinguished Instructor of the Year 2021

• CRS National Instructor of the Year 2020

• Virginia Association of REALTORS® — Instructor of the Year 2007

• RISMedia Newsmaker — 2020 Influencer

• Virginia REALTORS® Graduate — Leadership Academy — 2007

• Fredericksburg Assoc. of REALTORS® — Realtor of the Year 2020

• Fredericksburg Assoc. of REALTORS® — President’s Award 2010

• Fredericksburg Assoc. of REALTORS® — Code of Ethics Award 2011

• Fredericksburg Assoc. of REALTORS® — Rookie of the Year 2003

• Fredericksburg Assoc. of REALTORS® — Honor “Role”

• Fredericksburg Assoc. of REALTORS® — Production Awards

• Coldwell Banker Recruiter Award — Virginia

We are so glad you joined us to help you start your new year! This episode’s guest is Matthew Rathbun. Matthew will be discussing business suggestions, strategies, and ideas to help you make your plans for success in 2024. This is the first part of a series on Business Planning with Matthew this month. The second part will launch later this month.

[2:55] Matthew is the EVP of a Coldwell Banker company with 10 or 11 offices in the D.C.-Maryland-Virginia area.

[3:40] Matthew started teaching and has been teaching ever since. He is currently the president-elect for the Real Estate Business Institute, a good partner for CRD, providing lots of education to agents.

[4:20] There has been attrition in the industry. A lot of agents are not seeing a lot of production right now. When you plan for next year, you have to base it on reality.

[5:33] We are knowledge workers more than salespeople. The buyer hires you as a buyer’s agent for what you know. How do you provide clarity on your value as a buyer’s agent?

[7:00] A knowledge worker will say, “I know the market, what my capabilities are, and what my consumer base is and I’m going to build a strategic plan.”

[7:37] You can be a knowledge worker to your consumers and demonstrate that value to them. You can use your knowledge and say, “I’m the CEO of me.”

[9:21] What are we changing for 2024? Agents need to be much more precise with their goals to be able to look back and see what they’ve accomplished and why this is a good career for them.

[11:12] Matthew goes over tips and tools on how to interject your goals. Substantial industry changes are coming but most of our chaos is controllable.

[13:00] You’re controlling whatever chaos you can. Putting systems in place is so important. “You do not rise to the level of your goals, you fall to the level of your systems.” — James Clear

[15:48] With industry changes, Matthew says training will be a core part of any successful agent’s business.

[18:33]. Change is good. A bad change can be corrected to something better. Have a healthy mindset on addressing change. Lean into change and what it means.

[23:06] It’s time to add to your listing kit and improve the buyer consultation kit on your website. Market your value proposition for buyers. Matthew discusses what to do in the next 30 to 90 days.

[25:45] Agents need a better consumer persona. Who do you want to work with? Just saying you want to work with sellers or with buyers is not focused enough to reach the core consumer that you want.

[30:18] Matthew cites Atomic Habits, by James Clear as the most transformative book. He recommends other books. 

[32:50] Monica urges you to check the resources mentioned in this episode and Matthew Rathbun’s website linked in the notes. What education do you need to add to your life and business? The Center for REALTOR® development highly recommends ABR®, The Accredited Buyer’s Representative designation.

Tweetables:

“This is very much an industry where you get to eat what you kill. You hunt it. You kill it. Now you get to enjoy it, so to speak.” — Matthew Rathbun

“Change is good. I’ve always said change is good. Even if it’s bad change, it’s generally going to be corrected and lead to something that’s better.” — Matthew Rathbun

“Every successful CEO is a reader. That’s one of the common traits of all successful CEOs.” — Matthew Rathbun

Guest Links:Matthew Rathbun on Facebook

Canva Templates at Etsy.com

NARRPR.com REALTOR® Property Resource

Building a StoryBrand: Clarify Your Message So Customers Will Listen, by Donald Miller

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones, by James Clear

Building a Second Brain: A Proven Method to Organize Your Digital Life and Unlock Your Creative Potential, by Tiago Forte

Getting Things Done: The Art of Stress-Free Productivity, by David Allen

Canva.com

Alignment.io

Trello.com

MyStorybrand.com

Freeform – app for iPads and iPhones only

MindMup.com

Coffitivity.com

Matthewrathbun.com/resources/

NAR Resource LinksNAR.realtor/technologyABR®

SRS

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

REBI

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Matthew Rathbun

I’m unapologetically me. I love learning and sharing what I’ve learned with anyone willing to listen. It’s what I’ve done all of my life. I’m a restless and demanding learner myself, so I focus on people in the audience who want advanced information, a little humor, and actionable information when they leave. If a learner attends one of my sessions, I feel honored to have them there and feel that I have a duty to ensure that the time they have given me will be valuable to them. I believe that every moment with learners should count.

I still work with clients and actually practice the skills and information that I deliver in each class. I’m also a licensed broker in Virginia, DC, and Maryland and a licensed instructor in many states in the U.S. I am the Executive Vice President of a large multi-office firm in Virginia and oversee operations, risk management, and agent development among other things. Before becoming a broker, I was a high-performing agent and received a number of awards and accolades throughout the year including the Virginia Association Instructor of the Year, and was recognized by RISMedia Newsmaker Thought Leader in 2020.

My course offerings are pretty extensive and I’m always happy to create unique content if it’s within my knowledge base. I’m a certified CRS instructor and have contributed to or written various national certification and designation courses for RRC, REBAC, and REBI (all three NAR education institutes). My emphasis is on leadership development, technology, risk management, and advanced practice of real estate. I have a wide range of experience with risk reduction, including serving on the local, state, and national professional standards workgroups, MLS compliance committees, and various other industry opportunities that have given me broad exposure to what should be the best practices in the industry. I am an alumnus of the VAR Leadership Academy. As an author, I have contributed to many real estate industry magazines and online industry news venues.

A few accolades:

■      REBI National Distinguished Instructor of the Year 2021

■      CRS National Instructor of the Year 2020

■      Virginia Association of REALTORS® — Instructor of the Year 2007

■      RISMedia Newsmaker — 2020 Influencer

■      Virginia REALTORS® Graduate — Leadership Academy — 2007

■      Fredericksburg Assoc. of REALTORS® — Realtor of the Year 2020

■      Fredericksburg Assoc. of REALTORS® — President’s Award 2010

■      Fredericksburg Assoc. of REALTORS® — Code of Ethics Award 2011

■      Fredericksburg Assoc. of REALTORS® — Rookie of the Year 2003

■      Fredericksburg Assoc. of REALTORS® — Honor “Role”

■      Fredericksburg Assoc. of REALTORS® — Production Awards

■      Coldwell Banker Recruiter Award — Virginia

This episode’s guest is John LeTourneau. Our topic is real estate investing. The Center for REALTOR® Development has a course that teaches this: Real Estate Investing: Building Wealth: Representing Investors and Becoming One Yourself. There is so much opportunity for you, our listeners, in this area. John is just opening the door of what’s possible. Let’s find out more.

[2:42] John became a broker and a REALTOR® in 2005.

[4:11] John started in residential but preferred B2B, so he worked as a non-REALTOR® commercial broker for several years at a large commercial firm. John shares a prospecting story.

[6:50] John does volunteer work for his local, state, and national associations and public speaking and education in the U.S. and internationally. Every hour he gives comes back 10 or 20 times in satisfaction, wisdom, and knowledge. 

[10:23] In commercial real estate, you are a product specialist and territorial generalist, or a territorial specialist and product generalist. John’s license allows these transactions: listing property, buying property, working with landlords, and working with tenants.

[11:22] John wants to reach the person who can spin off all four activities: a real estate investor. John can build a team and an income stream with that person.

[12:11] John’s specialty is helping people build multi-generational wealth through investment real estate. Through his connections, he can tap into local market resources around the country and find local knowledge.

[12:44] The IRS has a passive loss rule for full-time real estate professionals. Full-time real estate professionals can lose money on real estate. John describes additional tax advantages only for full-time real estate professionals.

[17:52] Your day-to-day brokerage activity will rarely be enough for you to retire. Start building sources of passive income. Figure out what it costs you to live every day and every year. That’s your freedom number!

[20:14] John believes that real estate, with its market advantages, in concert with a diversified portfolio of other things, is a phenomenal way to hit your freedom number. 

[24:04] John’s real estate investment advice. In most cases, single-family homes are among the worst investments you can make. You have a lot of risk buttoned up in one tenant in your expensive property. 

[31:33] John explains straight-line depreciation. When your rental cash flow surpasses the depreciation, it is a good time to sell. If the home is expensive, you can see if it qualifies for accelerated depreciation or cost segregation.

[36:41] Article 11 says you should not offer specialized services unless you have the skill set to do it. Refer it out or partner up with someone with that skill. Don’t put your commission ahead of your client.

[39:03] John shares some NAR statistics about the time and cost of a residential real estate transaction in the United States. 

[39:26] Getting a lead and making a referral of it in about 30 minutes and getting a referral percentage, is the best hourly rate you can make anywhere in the world.

[40:41] John describes a cycle of investments starting with residential, into industrial, then long-term net leases.

[43:14] The generational shift of wealth is where we as real estate professionals can consult in a great way.

[49:43] To get into commercial, coming from residential, the top-fourth of your database is in top positions in their businesses to give you referrals.

[50:27] John reviews the demographics of residential real estate agents contrasted with commercial real estate brokers. 

[53:30] Spending time in commercial will limit the time you spend in residential, so your residential income will decrease before you see income from commercial real estate. If you partner with a local mentor, you can get business quickly.

[55:50] Invest early, invest often. Don’t be the broker who dies broke. Please take advantage of all the things you have and invest in real estate. Build multi-generational wealth. The world’s in front of you!

Tweetables:

“In commercial, you’re either going to be a product specialist and a territorial generalist, …. or you’re going to be a territorial specialist and a product generalist.” — John LeTourneau

“What does my license allow me to do? My license allows me to represent four basic transactions: listing property, buying property, working with landlords, or working with tenants. So, there are four primary ways to monetize my license.” — John LeTourneau

“The number one indicator of success in commercial real estate is your ability and willingness to prospect consistently with people you don’t know.” — John LeTourneau

“Invest early, invest often. Don’t be the broker who dies broke. Please take advantage of all the things you have and invest in real estate. … Build multi-generational wealth.” — John LeTourneau

Guest Links: John LeTourneau on LinkedIn

Book recommendation: The Psychology of Money, by Morgan Housel

NAR Resource Links NAR.realtor/technologyReal Estate Investing (REI)

CRD Episode 057: Financial Planners, Insurance, and REALTORS® with Rich Arzaga

CCIM

IREM

Additional Links:

Microcourses found at Learning.REALTOR. Use the coupon code PODCAST to obtain 15% off the price of any microcourse!

[email protected]

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

MonicaNeubauer.com

FranklinTNBlog.com

Monica’s Facebook Page

Facebook.com/Monica.Neubauer

Instagram

Instagram.com/MonicaNeubauerSpeaks

Guest Bio

John LeTourneau is currently the KW Commercial Managing Director for the E to P Group of 9 offices in the Chicago area. In his role, John oversees the strategy implementation and daily operations of the KW Commercial brand, with a special focus on mid-market commercial properties in the Chicago region.

During his career, John has represented landlords, tenants, investors, owner-users, and sellers in all aspects of commercial real estate; and looks to use this experience to leverage the KW Commercial platform. Mr. LeTourneau’s accomplishments include:

● Member of the Board of Directors, Illinois REALTORS®

● Immediate Past President, Mainstreet Organization of REALTORS®

● Member of the Board of Directors, Mainstreet Organization of REALTORS®

● Member of the Commercial and Government Affairs Committees at Mainstreet

● Member of the Illinois REALTORS® Commercial/Industrial, Leadership Development, and Public Policy

   Working Group

● Member of the National Association of REALTORS® Commercial Real Committee

● Overseas Member of the Institute of Professional Auctioneers & Valuers (IPAV),

   Dublin, Ireland

● Illinois Consulate Liaison to the Republic of Ireland

● Illinois State Legislative Contact for Senator John Curran

● Approved Continuing Education Instructor in Illinois

● Approved Instructor for NAR and REBAC

● Carries the CIPS, e-PRO, ABR, CRS, SRS, PSA, RENE, C2EX, AHWD, and GRI   

   Designations/Certifications