ACE Co-Brokerage & the Buyer Brokerage Agreement with Josh Cadillac

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
David Garcia (00:35):
So we're freaking out. This is what we gotta do. Now, you ready.
I'm gonna work for you, and I want you to commit to make sure that I get paid for working for you. Does that seem like it's an easier case?
It's way easier.
You're literally just saying, I want you to make sure that I get paid
when I work for you.

(00:57):
That's it.
Now we'll talk our way through this a little bit guys. But I had that giant calculator up there, because for those of you that want to take and get the most out of this.
I am going to show you one of the tools. I think that is going to make it much easier for you to demonstrate that you are worthy of compensation. Because
mail.

(01:18):
Let's start with this. I probably should ask this question because I want to make sure that I'm hitting what you guys want. Would you guys like it straight, or would you like it? Sugar coated
straight. I let let the record show the consensus was for straight.
When you walk in the door, folks. They think that you are lazy. They think you are not very smart. They think you are paid way too much, and they think the only thing you care about is commission, and if you do nothing to change that perception, you have failed to understand your customer. Welcome to the world what all the surveys say they think of a real estate agent when you walk in the door.

(01:55):
Why do we care?
Because, folks, if I was teaching one of my negotiation classes. The most important thing to know when in negotiating
is where you're starting from
your starting place. My starting place and walking in the door
is, they don't think very much of me. And now I'm going to ask them to pay me.
And they might have a little problem with that. What do you think.

(02:16):
guys, the reason why they have a problem paying is because they don't think you'd do anything.
They don't think what you have is very valuable.
And so if we're going to take and deal with that.
and yes, for those of you that are worried, I'm going to go over the buyer brokerage agreement.
But, guys, I gotta ask you a question. When you do your listings.
Do you start with the listing agreement? Or do you finish with the listing agreement

(02:38):
finish. Why? Because you have to establish. You're worthy of getting
ink on paper. Right?
Guess what guys on the buyer side
I have a license and a car. Let's go look at pretty properties isn't going to cut it anymore.
Those days
are done
which is good

(02:59):
and which is simultaneously, potentially a little bit challenging.
fair enough
in the same page.
So, guys.
if we're going to take and make this case that we're worthy of compensation, and they don't think so on the way in, do we need to be persuasive?

(03:20):
So what's the way to be persuasive? Well, Josh, we should build more rapport, rapport and ask more questions upfront.
we should be be better listeners.
No.
that's the garbage they've been saying from stages like this for years.
and it's never made me money in this business

(03:42):
period end of story
guys, if they're talking and you're listening, what does it mean? They have the information. And you don't.
You have to have something
to say.
Well, Josh, if I don't ask questions, how will I know what to say?
Guys.

(04:02):
fellas anybody in here ever buy a suit
by show of hands.
Just signs of life, just, you know, like, I'm going to talk for 3 h, just, you know, like, let me know you're here.
Okay, have you ever gone into a suit store where all the suits didn't have pants? Or do they always have pants
like I could assume? If I'm going to a suit store. I'm looking at a suit. It's going to have pants.

(04:25):
There's assumptions I can make about customers that are going to be right pretty much all the time.
So, guys, let me ask you a question.
When a customer buys real estate, what are they buying?

(04:46):
Product.
one of the things that we are the worst at in this industry is actually understanding the product we sell.
Typically, when I want to confuse a real estate agent, you ask them what's good about real estate.
and they get a blank look on their face.
or they'll tell me, oh, I gotta make it mid interesting people. I gotta take and see beautiful houses. That's your job guys, your product. What's good about your product? Because you're making the case, they should buy your product. And when I tell you this is not well understood, folks. When was the last time you saw an advertisement

(05:14):
for real estate
that talked about what's good about real estate
ever.
The next ad, you see, will be the 1st one. I've been doing this only for 16 years.
I've never seen. What does a real estate ad look like
headshot
some stupid slogan.

(05:35):
Oh, man, I heard.
this is this is fairly new. I heard this one yesterday, not yesterday. I heard this Sunday on my flight to Pensacola.
I'm sitting next to some guy who's gotten. I don't know. You guys know what happened on Sunday, but Sunday was a train rack as far as airlines goes, right? Really bad.
So I'm sitting next. This guy's gotten bumped from like 16 flights, whatever, and he's on his way to Green Bay, and I'm like.

(05:57):
who goes to Green Bay by choice.
you know.
Then again, it's the middle of the year. Maybe Green Bay's nice this time of year, whatever.
So I'm talking about turns out the guy is the kicker for the Green Bay packers.
and he shares with me
what he thought of real estate agents.
and he shared it with me in a very simple way. He told me about a card for a real estate agent

(06:18):
that he saw
an agent that was trying to get his business. It said, the real estate agent that loves puppies
for starters who doesn't love puppies
so like
in what universe does that in any way separate you? And what does your love of puppies have in any way to do with your preparedness to help them do the thing they're looking to do.

(06:45):
So maybe it starts with a simpler question. Guys.
what brings the real estate customer to you? In the 1st place.
trust, I'm saying, before they know you guys, you realize the real estate customer is going to come to you
sort of let me let me finish the idea. Here.

(07:05):
They're going to come to you
and give you a whole bunch of money, because let's be honest. The compensation that we get is not a small check.
What's the thing that makes them willing to separate themselves from that kind of money.
Kaiser?
They're afraid of the transaction without you.
They're afraid they don't know enough. They're afraid they don't have access. The list of fears. If you guys have ever, for those of you that have taken Abr, you got the list of reasons why they hire the agent. What's the number? One reason

(07:37):
they want to get the right house. In other words, they're afraid if they don't have somebody that's a pro working with them. They're not going to get the right house. They're afraid of the financing. They're afraid of the contract. They're afraid of the negotiation guys.
Can I go ahead and assume before I ever meet the customer.
that they're afraid?
Should my entire real estate business be built around the idea that as long as you're hanging out with me you don't have to be afraid.

(08:00):
Would I probably be meeting the customer in a much better place than just sitting here saying.
I'm the agent that loves puppies.
What do you think, guys?
I wish that agent that loves puppies? Things was a true outlier for our industry.
But sadly.
it's more indicative of our industry, and we should be. Why are you bringing this up, Josh? You're beating up us. I just wanted a class on buyer brokerage agreements. Why are you beating up on us guys? Because our industry is a laughing stock and culture

(08:32):
and guys
as a business it is a travesty.
What do I mean? Do you know what the customer retention rate is
amongst real estate agents?
What's that?
And this is because you come to my classes, and you know, stuff I she was sitting there waiting for it. Come on right here. There. It is

(08:54):
13% guys. That means 87% of the time. After they see everything you bring to the table
rather than duplicate the experience of working with you.
They go out and replace you.
Is that an indictment on how we do what we do?

(09:15):
You tell me, guys straight up.
you want it straight. I asked you if you want it straight, straight up as an industry, they're laughing at us.
They think we're a joke.
and the results of what they do with their business decision with their business
tells us
that their opinion is probably well well grounded.

(09:37):
And here's the reason why
all the training in this industry is around. One thing, and one thing only.
Close
deals
right close the deal. Everything is about, close the deal, and what else close the deal and advertise.
There are such a such a demand for more marketing guys? Is there always somebody looking to take and make you spend more marketing dollars? Is there always another idea drone footage of your listing from the surface of Mars.

(10:04):
Right? There's always something else.
Guys. You want to know why we got to advertise so much.
because 87% of the people were bringing in the front door. We lose out the back door.
guys. If you're closing deals, they have you suckered in to work in this business like an employee who got in this business to work for themselves.

(10:27):
who got in this business did work for somebody else.
Okay? Well, it seems like the work for themselves group. Who's the group that's not going to raise their hand, no matter what I say.
They're a funny group. We like these people. They're funny.
So, guys, if you're closing deals and taking and spending a fortune to take and bring people in to make up for the fact that they're bleeding out the back door.

(10:53):
Who are you behaving like?
Are you behaving like
a CEO or an employee? Well, employees work for paychecks.
What do Ceos try to do?
The CEO sometimes not get a paycheck?
Do Ceos sometimes stick their hand in their pocket, pull money out
and put it back into business

(11:15):
for those of you watching at home. The answer is, yes.
I've been a CEO plenty of times. I'm telling them. Cash flow often goes the wrong direction. We're not a fan. It's a thing.
What's the CEO trying to do that, guys?
They're trying to build a
you are good.
If you weren't so hard to get to. There's a fist bump for you that

(11:37):
I gotta keep it in my back pocket. I'll give it to you later.
They're trying to build a business. How do you build a business guys?
Well, I used to be in the restaurant business. And this is actual guys. I didn't learn this
in real estate. I learned this in the restaurant business in the restaurant business. Would it cost me to bring someone in the door to eat in my restaurant
meant that if they ate my food

(11:59):
and didn't come back
I lost money.
I needed them to eat at my restaurant 2 or 3 times, usually about 3 and a half times to break even.
which means what was my goal when I brought them in.
my goal was to have this become their Italian restaurant.

(12:21):
see? And and maybe it's because and I'm going to apologize in advance guys. I am originally from New York.
Alright, there's a few. There's a few of us down here inside who saw that coming a few New Yorkers in South Florida. Nobody saw that coming.
and in New York.
If you got somebody that's good.
A plum or electrician. And my friend what's the name? Button?

(12:43):
Carlos? Says Josh, I was a little late today, my toilet back to Carlos. You need a plumber.
I got a guy
you call Tony. Tell Tony I told you to call Carlos. Tony will take good care of you
let me ask you a question that if you were, see really the CEO of your operation would be the question that gets you up in the middle of the night.

(13:05):
Why is every customer you would ever work with not saying that about you
for most agents?
That's not the question that wakes them up in the middle of the night.
Should I invest in this advertising thing or this advert this coaching program, or that?
It's not, why don't my people after. So, guys, what's the what's the life cycle of working with them

(13:27):
from start to finish to close?
No, no.
go ahead.
That's the thank you.
As the purchases get evicted from their houses.

(13:52):
the bloodbath of Persis
I think we got we got a couple over here, if anybody wants them.
I warn you, these are like the blue seats, though it's seaworld, you know, where the where the whale splashes. So you're like really close. Just so, you know.

(14:15):
Well, that's a gun. It's facing the right way and everything
alright. So totally photobomb his picture.
All right.
So.
guys, if we're gonna be a CEO of this thing, if we're gonna take and run this business and build the business.
We got to look at the fact that Tony, the plumber, my guy, Tony.
how much time do I spend with Tony

(14:36):
a couple hours, maybe. Every couple of years that I actually did with the plumber. Right?
That's it yet. Tony's my Guy.
how long do they work with you?
Months?
Monst
guys? And in months after they're done with you statistically, 87% of the time. Naturally, as real estate agents, 87% of the time they make a choice for somebody else.

(15:02):
There's only 2 reasons why a customer doesn't come back.
Really.
the product sucks.
Guys, do we have that problem in real estate?
Whoa
together as a group
is our product, the best product in the stinking world.

(15:26):
There we go guys. The average renter in the Us. Has a net worth of about 15 grand. The average homeowner is more than 380,000, just for making the choice, not to rent, but to buy. Our product builds wealth, and it passes along generational wealth. It helps them avoid taxation, it makes them wealthy. Their life is better because of what we do every single day. If you don't know that I'm believing in your soul, guess what it's going to be really hard to get them to believe it.

(15:52):
Does that make sense.
guys? If you want customers
to buy into your business
to buy into? Because guys, when we're asking to sign a doc and give us exclusivity.
they got to buy in to what you bring to the table.
If you just think, let me show you my marketing

(16:12):
is going to cut it.
I think you're not positioning yourself. Well, so.
and I'm going to cover this in a little bit. I think there's 3 places for us to make
good assumptions. And by assumptions, guys, I'm going to give you a word. I've been using this word a lot in Avrs and Srs, because these are what they've been teaching to try to help you guys to prepare for this. So I'm giving you kind of a filtered down version of the best stuff from that, along with the actual changes.

(16:40):
The word that I'm going to give you to start with guys is anticipate
some of you that have taken my class. I see a bunch of abr folks in here. I know you've heard this before, but a lot of folks weren't there so anticipate.
I am going to anticipate my customer before they get here.
What could I anticipate about them?
Well, we talked about it that they're afraid they don't know how this works. They're coming to somebody who's a professional somebody that has access.

(17:03):
Who's going to help them? Not make a mistake?
Could we anticipate that that would be probably important to a customer? We think
maybe want a limb.
Okay.
Will the customer want to make sure that
the person that they're talking to, understands what the process looks like.
and understands what the possible. The possible problems are within the process, and will tell them in advance. Hey, look! This could happen to us if it does, let me tell you what I'm going to do to keep it from being a problem.

(17:34):
Could we have that conversation with the customer.
Could we assume they care about that
guys? Here's the crazy thing. How many transactions have you done?
How many have they done? Who's done more? Guess what? You got something to say. You've got more exposure of the ways that could go wrong. Who's been doing this business a little while.
Do you find new ways for deals to get screwed up like

(17:55):
all the it's amazing there is. It's like watching baseball. You'll always see something you never saw before. With real estate, you'll always find another way for a deal to get screwed up.
Okay? Which means I have a vast array of experience, of what not to do
to cause at least even paying attention.
And that's another thing. We got to talk about guys, one of the other things that you're going to have to do. If you want to take and stay relevant the matter you've got to commit to pay the most expensive bill in real estate.

(18:23):
the one that other agents just are unwilling to pay.
You have to commit to pay
attention.
So let me ask you a question.
Number came out the other day. 2023.
What was real estate appreciation
in the United States of America?
Oh, I'm sorry. I thought I thought you guys sold real estate. I thought you would know this. What? What was? What was the last Cpi number that came out the measure of inflation

(18:57):
guys? Would you agree that the inflation's a little bit of a problem.
Would you agree that? Well, maybe I can make it a little closer to home? Would you agree that in that interest rates are a little bit of a problem.
Why are interest rates up
inflation? What's the main measure of inflation?
Well, but the number that
that we look at normally is Cpi consumer price Index. That's going to be a basket of goods and what it costs to buy the basket of goods last year versus this year.

(19:23):
Would you think that our customers would want us looking at
what the inflation is because it's going to affect what interest rates are, and that's going to affect the desirability of real estate. Would you agree with lower interest rates? Real estate becomes more desirable to buy?
Hmm!
Maybe we should be paying attention to a few more things.

(19:44):
What do you think, guys.
is it a viable case? Do you think I could talk to my customer about Cpi when they come in. How about
how about labor guys?
We want to be paying attention to labor.
what kind of numbers we want for for labor right now.
which way do we want labor? Do we want more or less unemployment

(20:08):
depends? If you want, if you want interest rates to go down.
You want more unemployment.
The Federal Reserve is looking
for there to be more unemployment, because if the labor market is tight, guess what happens? Wages go up. If wages go up, what does that mean?
It costs more to make the exact same thing. What do we call that?
I'll give you a hand it rhymes with sinflation.

(20:30):
inflation.
I want to be paying attention because guys, the quality of conversation that they have with me
versus somebody else who's going to sit here and.

Connie Nieto (20:40):
Properties, the bombing.

Thing, guys, if you sound like every other real estate.

He loves all those cables, and I'm like what cable.

What do they think of real estate agents.

Again. I told you at the beginning.

Lazy, not very smart, overpaid, and all about the commission
falling into that trap, which means they consider you as interchangeable.
This one verses
her.
one's as good as the other. I don't mean that you guys are awesome.
are you with me?
So we have to renegotiate that.

(21:15):
Yes, guys from the second you meet the customer. You've engaged in a negotiation.
whether you realize it or not.
and I'm going to tell you what the negotiation is, for.
It's a negotiation for credibility
if they, if you are able to establish your credibility with your customer, guess what they're not going to tell you.
Yeah. But I saw on Zillow.

(21:38):
guys. If you show them that you're the expert. If they stop hitting you with garbage like that, I'll give you another one. They don't give you a hard time about a compensation.
People don't ask me to cod anymore
on my listing presentations. I never get asked.
but the quality of conversation on the front end
has been improving over the years. Guess what? The better that conversation gets, the less aggravation I have later on in my listing presentation.

(22:03):
Why am I telling you that? Because, guys, the listing presentation is the best guide for what the new buyer side operation is going to have to look like.
Does that make sense to everybody?
I think this is actually a great opportunity.
because now we're getting the chance to make the case for ourselves upfront
which allows us to fix a lot of the problems that come later on.

(22:27):
And so I gave the word and anticipate
the other word. I want you to always to use is empathy. I want you to always remember what it was like when you didn't know. That's very important.
because we forget in this business. We've been doing it for a while. My customers seen how? How many times have my customers seen the contract?
How many inspection reports have they seen.
We see the inspection report like, oh, no, big deal, but I see the inspection report. Their entire world just crumbled.

(22:54):
So, having that empathy and the reason why I want those 2 things. What I'm going to do with those 2 things is use them to pre-negotiate the things that I know from my experience
are going to be problems later on.
Could them signing the agreement
potentially be problematic?
Do I want to have prenegotiated that before ever asking to sign

(23:14):
guys. Wouldn't it be great if I could get them to the point where, when it's time to sign, they're like, Okay.
would that be nice?
I promise you. There's a way to do that.
It's by establishing enough value upfront. So I'm going to take and show you this a little bit later on. But for those of you that want to see it. I want to get some reps in on it.
You go to the app store on your phone. You're gonna look for 10 BII

(23:36):
and you're gonna put on your phone.
That app is made me more than a million dollars in extra commissions guys.
I use it with the guy from Green Bay. The Kicker from Green Bay
is now one of my customers
because of a $6 cell phone app.
If you know how to use it.
It's 1 of the 3 parts
that I think that we need to talk about. Well, in order to take and get our agreement signed. Okay.

(23:59):
that makes sense, guys, we're going to look at the agreement.
But we can leave it to the attorneys. I'm going to explain the agreement, the way that they do.
We're gonna leave it to the attorneys to take and just explain the agreement
I want to take and talk about what you've got to talk about.
Great Josh! But how do I get people to actually put ink to paper?
And that's what I'm gonna try to help you bridge the gap on that, too. Are we okay with that guys?

(24:20):
Both things?
All right. Here we go.
So
this class is called his co-brokerage, taking the Bs out of buyers. Side compensation. Why?
Because God is this is not a buyer side problem.
This is a real estate industry problem. The listing side is as much, if not more.
involved in making sure they establish the importance of co-brokerage and understanding how this is going to work going forward.

(24:47):
And frankly, guys, especially considering with where the Justice Department seems to be right now where they don't want this. We're allowed
right now to have our phones go off in class. And it's not a problem
I don't know about later. But right now we're okay.
The justice Department at some point wants to make it potentially that there will be no ability to disclose co-brokebreach anywhere. Right now, it's going to be allowed on your brokerage's website to disclose the co-brokerage on your listings, are we? Okay? But I want you to understand what they're angling for.

(25:23):
This could cause a very traumatic experience for most real estate agents.
This could force you in order to sell your listings.
And, guys, this is a big ask. So
brace yourself. You might want to grab the arms of your chair.
If you're a listing agent.
you may have to answer your phone. I'm sorry

(25:49):
I'm out, Josh. I'm done with the industry.
There's phone answering. But
which is crazy guys, anybody or do here, come, do any commercial?
Can you ever get the commercial guys on the phone
and you have to ask him if there's Co. Broke
right? And it's very hard to get them.
I'm going to say that guys, because upfront, I want you to understand something they never told me in an ethics class ever. But I'm going to tell you because I teach ethics, and I try to do it the right way. Article one of the code of ethics

(26:18):
who here signed up to abide by the code of ethics.
Your hand's not up. Somebody took and slipped Jim Mickey and
forge your signature.
It requires you to use your best
due diligence in helping your customer achieve their goals.
If you could explain to me
in what universe, not answering your phone

(26:41):
lines up. With that
we can have a great conversation.
Alright, it shouldn't be optional. It shouldn't be between the hours of 2, 45, and 3, 15 every day.
Your job is to help them, because the fact the matter is, if you don't answer that phone call and I'm the buyer's agent, I'm on to the next property.
and you cost them a deal. Guys.

(27:03):
it's unethical on its surface.
Okay, so
whether or not how you choose to handle, that is a business decision.
I'm not going to tell you what to do, guys. I will always treat you like adults. I've been treated like a child by people up here wait to me. Do this if you're not blogging. Oh, when I start, if you're not blogging, you're never going to make money in real estate.

(27:25):
That was a lie. I'm not gonna care, guys. They told me that it wasn't true.
Alright. So I'm going to tell you what I'm going to tell you, here is a business decision. I'm going to tell you what the rules are, how you choose to work within that
is, up to you. Fair enough guys.
It is an ace class and a stands for accredited closing expert. Where did that come from? I'm not going to lie. I made it up.

(27:50):
I got designations and certification. I was like none of them spell anything cool, aces cool.
and I'm not really good with acronyms. So 3 letters was all I could manage. But let's be honest with each other. Accredited and expert are garbage terms. People tack onto things to make them sound special. I put them up there, because otherwise it wouldn't spell ace right? The only word that matters is closing.

(28:12):
The question is, guys.
what does closing mean to you?
I heard money.
I heard money which everybody thought immediately, but was trying to not say, because you sound like a mercenary when you do.
Okay. So the finish line.
Here's the cool thing, guys. I have gone all over this country.

(28:34):
and no matter where the room of realtors is. If I ask.
what does closing mean? I get a paycheck
or a finish line?
Why do employees work?
I'll give you a hint. The rectangular made out of paper about yay big, and you tend to get them on Fridays when you have a normal job.
or you say to them, Hey, man, why, you work! And they'll say, Oh, man, I'm working for the weekend anybody ever heard. I'm working for the weekend

(28:58):
employees work for paychecks and finish lines.
So when I ask you that question, who answered the question.
the CEO.
But, staff.
It's the staff of your operation, guys, you are guys. When you got your license it was an entrepreneurial endeavor.
You became both the CEO and the staff of the operation, and the nature of this industry is to keep you working with your employee, hat on all the time. Cause. Is there always something else you should be doing? Always another task to do? There's always something else.

(29:27):
But look at the stuff that there is to do, guys, it's all employee type stuff.
If you don't make the time to put the CEO hat on.
you never will.
which means you'll never do what a CEO should be doing when they close
closing, for a CEO
is closing customers for life.
closing people that would never you with me, brother. All right.

(29:49):
Closing business with people that would never work with anybody other than you, which means, if I had to say no to the deal, and not that get paid on this one. I say no, because I only do what's the best thing for my people, and that's why they come back.
Are we? Okay?
I'm not telling you you have to do it.
I'm telling you something they never told me in any class I ever took

(30:10):
as the CEO.
Think about what kind of business you're running here.
We okay.
making sense to everybody.
If we're going to get our doc sign guys.
we got to figure out what it is we're selling.
Does that make sense?
And it's the answer is not real estate. We're selling our expertise in the acquisition or disposition of real estate, aren't we?

(30:35):
So if you're going to sell a product, don't you need to know
what the quality of the product is
whose job is to figure that out? Well, that's a CEO job.
all right. There are way too many of you to do this.
so what I will do is I will tell you who I am. My name is Josh Cadillac, and yes, it's my real name. No, I didn't change it. Kind of how I came from the factory. I told you. I've got some designations. I wasn't kidding.

(31:02):
which
I'm going to be honest with you. You know what that means. What what should matter to you guys? I have spent a lot of time on that side
before I spent any time on this side.
and I have heard all the nonsense they tell you.
and I want to tell you something. The only reason why I wrote my courses
is to cover the blank space
of the stuff that they never tell you.

(31:22):
Okay.
I'm going to tell you guys, I'll give you an example. I'm going to tell you that not every negotiation can be collaborative.
You take real estate, negotiating courses. It's all about how to hold hands and sing songs and just get along.
guys, we're in southeast Florida. You get people from certain parts of the world. The only way for them to be happy with the deal is what for the other side, to be totally miserable and potentially in tears.

(31:47):
Right. They want the other side miserable. Where's the class that teaches that?
Because the end of day I've needed those life skills.
They can actually get these deals done. I need the other side happy.
which means, if that means I gotta make them feel my slide as miserable.
That's a skill I need in negotiation to take and take care of my people that depended upon me and gave me their business.

(32:07):
My job is to look out for them, you with me.
So there's a lot of stuff they don't tell us.
I also bunch of the licenses in the State of Florida guys.
So I'm a general contract to build a developer got been doing this now since 2,008 in real estate. I still do real estate, not as much as I used to. But I manage a real estate and investment fund. When I talk to you about the investment, about
understanding the investment.

(32:29):
it's because I have to go pitch this
to people to give me their money.
Should you understand what you're investing in? If you're going to invest in something
cool? Okay, what percentage of home buyers are investors.
100%.
If you're not having investment conversation with your buyers.
My goodness, you're leaving so much good stuff on the table!

(32:52):
You're leaving so much good stuff on the table. So I'm going to teach a little bit. If you guys don't mind. I'm going to teach you a little bit, or maybe how to have the investment conversation with a buyer
and a bunch of different companies I run. I wrote the series of courses. This is one of, as of 2 days ago guys. We got this in a just under the wire.
It was approved by the State 2 days ago.
44 C. Courses that I've written.

(33:14):
I wrote a couple of books close for life in the Roadmap, the American Dream Book. One is closed for life is about how to close customers for life and roadmap is
how money and investment is right.
All right. These are all the classes. Let's rock and roll Miami's antitrust, disclosure. Guys, this is important.
We are in an environment right now where antitrust violations

(33:37):
very easy
to have happen. I'm actually going to go over antitrust what it is, how it works and kind of what we need to know.
But here's the big thing.
Do not talk about specific compensation amounts.
use ladders.
not numbers.
All right. If you use numbers, it's bad, and it's being recorded. So

(34:02):
it's really bad. Are you with me?
Miami does not put up with antitrust. They don't condone it. It's not what they're here to do that they're here to give you an environment and to understand what's going on. So please folks when they all agree.
I understand you're posting on tick tock right now, so I'll give you a second.

(34:23):
Can we all agree that we're going to play nice and not talk about numbers.
Okay? And we're not gonna talk about specific policy. I'm not gonna sit here and say, Josh, how many days do you put
for your protection period? I can't answer that
all right.
because theoretically, we're then colluding.
And that's what antitrust is all about, because we all work for different people.

(34:45):
Does that make sense to everybody? Are you guys okay with what I'm saying to you?
We cool.
alright.
buckle up.
So we're talking about what's changing.
working with buyers working on the listing side. And then the biggest problem children of them all
working with other agents cause that's never challenging in the least.

(35:06):
All right. So let's talk about antitrust for a little bit. Let's get our head wrapped around what's going on.
It started with the Sherman Anti Trust Law, which happened in the late 18 nineties, and the reason why they did it largely was of a company. Anybody know the company
that we're going after.
Huh!
Standard Oil? Who was the Standard Oil Guy.

(35:27):
John D. Rockefeller?
And the reason they were going after was because Standard Oil was growing so rapidly that they were able to get major concessions because of how much oil they were moving.
So they were able to price
the their competitors out of business. Basically, the the railroads would transport their oils less expensively, which means they can make it less expensive to the customers.

(35:51):
It sounds like a good deal for the customers, doesn't it?
It actually Amazon? It actually was a good deal for the customer. But guess who didn't like it.
Standard Oil's competitors. So they created this doomsday scenario where Standard Oil was going to be the only player. And now, because they drove the price down so much that there was no competitors that Standard Oil

(36:17):
was going to then take and raise the prices to the consumers, and the consumers would have no alternative.
Did this ever actually happen?
No.
Did a law come out of it
that now made certain behaviors illegal to keep that
possibility from happening?
They did

(36:39):
so
what it basically is the designer to do
as we said.
Standard Oil's competitors. They're the ones that were on the hook. There's the ones that did this.
The goal of the thing was.
they don't want businesses creating
an unfair business environment. In other words, where this side of the room does everything they can to put your side of the room out a bunch of businesses get together

(37:02):
to hurt other people.
It's also to keep us from agreeing. Hey, look!
The most we'll do for the least we'll do something for is this.
they don't want that happening either.
Guys, do we like it
when people are competing for a business?

(37:23):
Do we have any people that like to go on cruises in here any cruisers?
Do you like the fact that Royal Caribbean and Norwegian go at it, toe to toe, trying to make big gear and better ships like all the time like, do I feel like I'm on the right side of that competition.
That's great, isn't it? They want that environment to exist.
and that's what they're trying to do. Because if Norwegian and Royal Caribbean got together and said, Hey, look, I'll tell you what we could do. We could save a fortune if we didn't have to spend so much on these gigantic shifts we're making. Why don't we just agree that there will be. No, I don't know.

(37:53):
Juggling high dive people after 3 o'clock in the morning on the boat
they could take theoretically
and limit the choices that we have
by coming together. So
the benefit, what they're shooting for is to give the consumers
the whitest array

(38:13):
of choices that are out there.
guys, how many we're looking at Miami airport over there, right?
How many airlines are there?
Do a lot of them fly to the same places?
Why? Why do we need more than one?
Because
when we go to take and book an airline, do we consider what the experience is like?

(38:37):
Do we consider what their baggage policy is the price of the tickets.
We do all of this stuff.
We're gonna talk more about the airlines in a little bit, perhaps
all right.
So when Co. What colluding means when there are more than 2 competitors.
look at the people around you. Do you work for the same brokerage as them.

(38:59):
We have multiple competitors in the same room guys. Which means this is what I was saying to you because of this. This is where colluding is possible. We're not going to talk about fixing prices, terms, products, or services of the consumer. What does this mean?
This is a statement that we can never make in a room like this

(39:19):
like Josh, we all know the Standard Commission is.
No, no, no.
I do not know this.
We do not know this
compensation is always has, always will always be
negotiable. Okay.
no, coding means
that we're not going to talk about withholding services.

(39:39):
This is, guys. This is another one that we could run up against right now in this.
So we're not going to say, Well, we're not going to show property if they don't pay X
in co-brokerch.
We cannot have that kind of conversation
in this room.
because if we did.
would that potentially
limit the choices for the consumer? You guys with me.

(40:03):
I want you to understand the basis of this guy. So you understand how to stay on the right side of it. Okay.
we're not going to draw turf lines. Yes, sir.
no, no
changed.
If I call a a listing agent, and he says, Listen, there's no no compensation for you.

(40:30):
and I say to my buyer, Hey, look! There's no compensation. You got to pay me
X amount of money in commissions, and they say no, but they still want to see the property.
do I show it?
Well, there is the choice. There's going to be a very adult conversation that's going to have with your customer. Because here's the thing, sir, you already have a buyer brokerage agreement signed from that customer, so they've already agreed to your compensation. That's

(40:56):
the difference. And so let me get a little bit further wrong, and if you still got the question we'll come back and bang on it for you. All right. I will not forget about you. Just let me know. Okay.
good stuff. Good question. These are the questions I want to take and try to try to tackle guys like how to have the actual conversation.
I want you to understand, though, that having your buyer brokerage agreement signed up front
takes a lot of this pressure off.

(41:17):
So drawing turf lines, what does this mean? Well, hey, look, you know what we'll take, and we'll do the beach. You guys do the inland side.
Mixed room
can't do it.
Ha!
We're not allowed to take and make basically draw a ceasefire between companies on advertising.

(41:38):
What does that mean?
Something like this can't fly. Well, I'll tell you what we won't do any more ads about how many of your agents have been convicted of fraud. If you stop doing ads about all the extra hidden charges we're putting on our customers.
Now, guys, this talks about true advertising. You're not allowed to take and come to an agreement to stop true advertising against the competitor like.

(42:00):
okay, that's also considered.
Now up.
this is one.
Luckily, we've never gotten dinged on this one. They're not that hard on this, but theoretically
this is also considered colluding.
Talk about discouraging competitors from entering the market. What does that mean?
Anybody ever said this.

(42:21):
There are too many agents in this state we need to take and lobby this we need to get a pool together and lobby the state
guys that also
would be collusion. Because we're trying to restrict competition.
Now, you could make the case that we're trying to improve the quality of what the consumer gets.

(42:47):
Because let's be really honest with each other. You tell me, guys.
is a newly licensed real estate agent, the most dangerous thing on the planet
like the State, has ordained them as righteous to go sell real estate
when you were newly you were clueless.

(43:07):
the ones that would do it forever. Don't answer the phone. Nobody answers the phone.
So guys
understand.
our industry has that built in problem. To begin with, we license folks and they're completely lost on the way in
that makes sense.
and the training that we use depend upon brokers to take and make happen. That real world boots in the ground. Is that really happening much anymore?

(43:31):
Why, I'm not going to lie because the agents
we'll take and jump ship from one brokerage to the other for 1 10th of 1, 1 million better compensation split from one broker to another. Right? That tends to be what happens.
It's a thing guys.
brokers, business margins have been shrunk, and they're at what they can take and do for education has also shrunk the amount of time that they can give to it all that stuff. So this is the industry that

(43:57):
okay, so what is an example of an environment where collusion is possible? Think hyper local.
This is an environment where this could happen.
All right. So this we're going to be careful. It's not collusion. If you're at your brokerage.
Why?

(44:18):
Because the broker is the company.
all the listings, all the buyers, everything belongs to them. And your broker is the one that needs to establish the policy.
So, guys, there is a policy conversation that needs to happen at your brokerage outside of this.
to talk about what you will and won't do, how you're going to handle this

(44:42):
so
things that you could talk about in your brokerage compensation.
the terms of the agreement. So, guys, this is how what we want you as agents that represent us
to fill out this paperwork
in your brokerage. You can have this conversation in here.

(45:03):
Okay.
the fees. What you're going to charge how you're going to get paid, whatever kind of compensation is going to be, whatever your policies are going to be. All of this is stuff that we want to get established.
whatever else.
So guys, typically when I'm doing a listing class, I get asked the question on the percentages, maybe that on retained deposits, and all the you know, the points in the listing agreement that

(45:26):
your broker's the one that should be answering what the policy is for the office to put in those things that should be theirs.
I think you're raising your hand to prove to me just how far away you could sit for me and still ask me a question.
Let's see how this works. What do you got? Start shouting now, and I'll be there in a minute.

(45:52):
You absolutely. How about I give you one? She's asking. Are we allowed to take a retainer?
The bio brokerage agreement has always allowed you to take a retainer, but you don't get the retainer.
The broker gets the retainer.
Guys.
If a
you got to understand whatever you get belongs to the broker, if they give you a bottle of champagne. The 1st few sips belong to your broker, depending upon what your split is.

(46:19):
All right. That's that broker's bottle of champagne.
So
we got to keep that in mind. If there's a retainer
that is something else that you're a broker.
and you need to have a conversation about what the policy is going to be. When's it going to be distributed immediately? Theoretically, according to document, it's earned

(46:40):
when paid.
it's earned immediately.
So theoretically, it's possible
that it can be distributed immediately. It's possible they might wait till later. We'll talk about. We got 2 over here.
I had a hand over here.
What do you got.
besides, a need for me to

(47:01):
go to the other side of the room.
ask you a question. So are you implying with this that, for example.
I'm at a Kw. Office. So the office that I'm in within that group we can share information totally.
What if they have multiple offices?
Is it the same broker.

(47:21):
then you're fine.
The reality of it is all of the all of the deals belong to the one person.
and so that it is their policy, right? So they can have policy choices. They could also leave those choices up to you
guys who's broke group. I never mind not gonna ask, not gonna ask. That was totally setting up a problem.

(47:45):
All right. So what's the issue with collusion in general guys? Let's that's kind of a summary. If one company has a bad policy.
and now we all agree to take and do the same thing.
Now the customer is stuck.
having to have a bad policy right? They don't have a choice. Maybe some company wants to compete by having a different policy. The customers might like customers might like to have that choice if we all agree. Now the customer is up the creek. Yes.

(48:15):
okay. I have been directed from on high
to hold questions till the end.
All right, which is good, because I think I'm going to answer quite a few along the way. So okay, guys, as much as I enjoy getting my steps.
Let's just hold it to the end, and we'll we'll we'll get you
write them down. Chapter one.
What's changing

(48:36):
so
will your business practices need to change.
What do you think?
Well, was everybody getting a buy brokerage agreement signed before?
So asking again.
will you have to change some of your practices?

(48:57):
Absolutely will the conversation need to change, and maybe even where the conversation takes place, need to change?
Will you maybe need more conference rooms in your office because there's going to be more consultations going on. Simultane. I don't know
that is going to be a business decision.
There you go.

(49:18):
So, guys, I want you to think about that for a second.
All right, I really want you to noodle that around.
How is what you do every day
now, going to change. The phone's going to rank.
What's going to happen?
How are you going to handle that phone call? What are you going to do to get their business. We're going to talk about
this a little bit more. Well.

(49:40):
is this one low-hanging fruit?
That's 1 of the changes, right? We're going to need a buyer brokerage agreement.
The big change also is, guess what
co-broke commission is no longer going to be not only displayed, but no longer
held accountable.

(50:02):
guaranteed by
the Mls.
It used to be. If that's what was offered, they would enforce it and make sure you got it.
That's off the table.
which means
we're going to have to get confirmation from the other side of what they're going to pay.
because guys are all real estate agents.

(50:24):
bastions of integrity.
I will take the laughter from this side of the room
as a little bit of a no. What do you guys think over here? You with them
a little bit right? There's a little bit of problems, some sometimes with that.
So
guys, we need to get out of the habit of calling it anything but compensation

(50:46):
because there are multiple different ways that agents could get paid. And there's always been multiple ways that we could get paid. We just kind of got lazy and started to fall into like jargon
and not make it seem like that.
And so we need to take and just change our vocabulary. I'm still getting used to making sure that I'm always saying compensation.
That's we need a caller.

(51:10):
So
I'll tell you what guys
I want to give you.
Let's make it 3 min.
Talk to your table
amongst your table.
What's misinformation you see going on right now out there.
go ahead and go.

(51:37):
Concentration
that lab
in our
how fast, but
and if the family is paying
in the school.
save them together.

(52:50):
and the purpose.
That's the way
I want to.
but I don't know it's not the live audio.
If you do it for the settlement agreement that goes.

(53:20):
write them down. Okay.
I'm gonna keep moving up a bit.

(53:44):
Just you want to go straight through
your class. Okay, cool. Yeah.
Hello.

(54:04):
If you can hear the sound of my voice, do me a favor and say.
if you can hear the sound of my voice. Please say, Shhh!
All right, guys.
how did we do?
We heard some misinformation. There's some stuff going on out there, they saying some stuff

(54:25):
cool, cool, all right.
So
right now, I want to focus on what is, I think, the most important part of just about any class.
The 10 min breaks.
You've been in mute for an hour, guys, hours gone. Take 10 min. Come on back.
We're gonna pick it up from here, give you guys a chance to stretch. Use the restroom. See? Intense 2, 30. Come back at 2 40.

(01:04:08):
Hey, guys.
if you can hear the sound of my voice, please say.
settle on down, settle on in. We got more stuff to talk about.
more stuff to talk about.

(01:04:30):
all right.
So
what's changed?
I think one of the biggest things that's changed is some attorneys in Missouri's bank account balances got way. Better

(01:04:51):
40, and I love how the people that signed on got like nothing. It's a thing.
What else changed?
Well, guys, let's be honest with each other. Amateur hours over. Get in the car. I have a real estate license and a driver's license.
I'm armed, for bear
is out.

(01:05:12):
That period of time is now over.
So
guys do me a favor. I see a lot of you have a piece of paper.
If not, write it down a mental piece of paper.
What do you think a buyer
wants from an agent.

(01:05:33):
When I said, Write it.
it's okay.
You have a cell phone, and there's a note app in there.
You could write it in the mental notes in your head.
What does a buyer want?
And right right? Right?

(01:05:53):
No, no, it's not. Actually. I'm going to totally sit here and say, Raise your hand if you got a good one
who likes. What? What do you want to share? What do you got
value and expertise? Okay, cool
empathy. They want somebody that cares about that understands what they got to go through. What do we got over there?
Knowledge? They want you to know what the he double hockey sticks you're talking about. That's crazy talk. What do you got there?

(01:06:20):
Get them the best price. So you understand how to take it and do this thing.
Honesty and good service.
integrity. I love it.
Resources. You should have a guy. You should have some people you could send to. All right guys. What's that?
Hey, friend? I'm gonna sit here and actually push back on that one a little.

(01:06:44):
Those of you that have taken my class know where I'm going with this.
I'm not going to say you're wrong.
I'm going to say we prioritized it incorrectly.
I was trained
by someone, and a very well respected a guy that I like a lot.
I was trained that when you meet the customer the priority is to build rapport. Were you guys told to build rapport

(01:07:07):
rapport. He, yeah. These words to be were poor from when you walked in the door.
Here's the problem with that.
If what I'm doing, if all I'm doing is going into build rapport. What is the assumption of making about the customer?
Well, rapport building is what you do. To try to make a friend

(01:07:30):
was a lack of friends. What made my customer call me?
Were they sitting there watching Netflix on a Friday evening, thinking.
Man, I'm lonely.
I'll call a real estate agent that'll fix it.
Well, okay, well, she's got one up here. She says a need. Now, guys, I got to tell you

(01:07:54):
she's right
sort of
I needed to put a shirt on this morning.
As it turned out, I navigated that perfectly solo.
the buttons even lined up for it again. You're applauding. The buttons lined up for a change.
guys.

(01:08:14):
I needed to get over here. I drove myself.
Do we have a are we needy as a species we got like needs. We had needs for days.
But when it's a need that you realize that you can't handle yourself, the need transitions for being a need to being a
problem
until you find a way to meet that need. You have a problem.

(01:08:38):
Once you find a way to meet that need that fully meets that need you no longer have
a problem. You have a need that has been dealt with.
So, guys.
let me ask you, this is a real estate problem.
the thing that actually brings the customer to you

(01:08:58):
absolutely. It is
every if I have to say what the one uniting thing is
with every real estate customer. It's that that they had to be real estate problem, whether it's a rental or a pro. They don't know how to do it themselves. They don't have the access that way. They do. They don't know how to negotiate, because it's entire charts in the nar buyers guide every year that talks about all the things they're afraid of, but they don't know how to do

(01:09:24):
here brings it to us.
What's our ability to take and meet
those fears and showed, hey, look! If you hang out with me, it's no longer a fear. It could just be a need that's been met.
Be okay.
that's what we're trying to win on. So if it's not rapport.
and I'm going to tell you, rapport is one of the 3 things that I want.
But it's not the main thing. I don't go in there fighting for rapport, because here's the thing. If I was going to train you how to do use car sales. Guess what the 1st thing I teach you to do is

(01:09:53):
I would teach you to go in there and build rapport
guys. Do you know what rapport building is going in and being a nice person.
you know what that is. Technically from a negotiation standpoint. If you want to be technical. It is an emotionally manipulative
sales technique to get people to like you, because if they like you.
they want to do. But they'll do business with you. In other words.

(01:10:16):
and I know I had this recently confirmed. I was teaching a zoom.
We had a couple 100 people on there, and there was a gentleman from Tampa.
who had been in timeshare sales for 20 years. He was the head trainer for one of the major timeshare companies, and he's like you're so right.
The very 1st class we made everybody go through was

(01:10:37):
how to build rapport.
So, guys, do you want to sound like they used car salesman.
Do you want to sound like the timeshare person?
How do you react? Let's talk about some empathy. How do you react to those people?

(01:10:59):
So here's the thing. The reason why I'm going to push back, and I'm not going to say you're wrong. I just want to make sure that I'm making a friend as a result of bringing quality. Not as that's what I'm walking into to try to do, because when I was trained, I was trained to walk in and make a friend first.st And I think
that's dead. Wall
business decision, though guys do it any way you want to. This is me just offering a suggestion.

(01:11:22):
I think the place that we, what we really need
is to win that negotiation for credibility.
I'm going to walk in and show them
better than just being nice before I ever met you.
I have done so much work before I met you, to make sure that whatever the real estate problem you came to me with is I have done. I have so much behind me to make sure that I can solve that problem

(01:11:43):
that you don't have to worry about it being a problem anymore.
Fair enough.
So, guys the line that I've used my Abr folks, I'm sorry. I know my Srs folks. You heard this, too. I'm going to say it again.
Champions are not made in the ring.
they're recognized in it.
It's the rope you jump and the miles you run before you step in the ring. That makes what happens when you get in the ring. A foregone conclusion.

(01:12:08):
I'm going to show the customer the thousands of hours I've put in
to be the resource. I am
standing in front of them right now in that early conversation. That's the point. I need to make
more so than than I'm a nice person, and let me tell you about how nice my dog is.

(01:12:29):
The agent that loves puppies.
Is it bothering you more as I start to explain why it bothers me a little bit
a little bit.
So there's 3 things I gave you rapport is one. Credibility is the other one. The 3rd one of the hardest one, the one that's most important in the land guys is trust.
Because here's the thing, actually, and it kind of is almost a little counterintuitive. But the better you are at what you do.

(01:12:54):
the more important it is to get that trust in there, because if they start to believe that you're really sharp and really good at what you do.
and they don't trust you, they're going to take and respect the fact that, as good as you are, you could talk them into doing something that's not in their best interest.
So with that credibility I needed to be establishing trust
as quickly as I can. As well. Okay. And this means me giving them just

(01:13:17):
best advice I possibly can.
even if
it doesn't make me any money.
That
that's a business decision, too.
Okay.
so let's talk about some misinformation that's out there. Here's 1
co-brokerage is not allowed, Josh. I have to change all of my listing agreements because co-brokerage is not allowed. That's not true.

(01:13:44):
Co-prokerage has not gone anywhere. It's still allowed.
It's just not disclosed
guaranteed
in the Mls.
It's no longer that. Hey? Look! It's going to be in the Mls. And as long as it's there, that's what you will get, which means you are now required to secure it on your own

(01:14:07):
and the real thing they want you to do. And as the gentleman was talking to me about on break, and he was giving me some alternative documents which we are not going to go over. The alternative documents
they want to make sure that you secure with the customer
a negotiated compensation.
But
their position is basically, or theirs was that if the buyer had to negotiate the compensation with their agent.

(01:14:32):
There's no way they'd be getting paid as much as they are.
That's the court case.
Alright. So we want to take and make sure, guys, we understand that Co brokerage is not going anywhere, and we need to take and make sure that we're locking in upfront
what the compensation is going to be.

(01:14:55):
This is not true yet
it may be.
This is what the Doj is coming after. Next we'll see how it goes.
But right now.
And I think they're taking and trying to do is because they're they're trying
in some way to lower the cost for homes without actually fixing the inflation problems and all the other things that are out that are making homes unaffordable. So they figure come after us. It's it's an easier, slower hanging fruit potentially alright.

(01:15:20):
Co-brokerch Commission
can be advertised currently on your brokerage website. That's going to be a place where it's allowed to be advertised and places where you're advertising your property. It's going to be allowed the Mls. No, there will be no linking to something that has it. There will be no document disclosing it that can be attached.
The compensation cannot be the cobra which compensation can in no way

(01:15:45):
be found
in or through the Mls.
Are we good?
All right? Good, because I guess, like a million questions on that.
All right. How about this? Sellers will not be offering Co brokerage anymore.
One of the big pushbacks in the settlement or in the in the court case, guys was that Sellers were saying we really weren't given the option to or not to offer co-broke.

(01:16:13):
We were just basically told, this is kind of how it had to be.
This has been will always be a negotiable
point.
Now I want you to understand what Co brokerage has always been. I'm stepping on my own slides because I must say it later on.
Co-brokerage has always been, since the beginning of time

(01:16:34):
a seller's contribution
to the buyer's closing costs
that's never changed. That's always what it's been, and that's what it still remains. It is the seller making a contribution to make the house more affordable for the buyer.
Everybody. Okay, with that making sense.
Real estate prices are going to tank.

(01:16:56):
I like. The response was that you, sir? Nice? That was the most eloquently put answer I'd ever heard. His response was, did I do it justice works to that effect?
So, guys. I think maybe we'll handle this for a second. Why? Because this is possibly some pushback we would get from the customer. Anybody heard this. They're waiting for prices to come crashing down.

(01:17:21):
Our price is coming crashing down.
What are the reasons why? Now it depends on what we're talking about? We could say our condo market.
our condo market, a little bit of a bloodbath, and by a little bit I mean.
I think, the the number that I heard the other day, and I did not verify this guy. So if I am wrong, please, mercy is is requested 27,000 units in the tri-county area condo units available.

(01:17:47):
I'll tell you what you think. That's bad.
2,010,
49,000 combat units available in Miami-dade County
alone.
Yeah.
that was bad.
So
is this a question?

(01:18:07):
Yes.
yes.

(01:18:35):
it's dropping. So one of the things that guys what's the number one question you get asked. When somebody finds out you're in real estate.
How's the market?
I have a very controversial idea.
very controversial.
Answer the question.
and not like the real estate agents do, what do real estate's agents do when they ask how the market? It's great

(01:19:00):
guys, how's the market? We actually have a bifurcated market right now, we have this condo market. That's going one way.
and a single family home market that's going the opposite. Yes.
multifamily small, multifamily hard to get your hands on any of that stuff.
Liquid gold
right? And so I'll give you one better, because I just did this research for one of the one of the folks in my mastermind group that was helping her out with some something that she's doing for developer

(01:19:24):
new construction from 2020 to 2025. So brand new construction. So of 2024. I'm sorry
in Hollywood. Dania fort Lauderdale
resales just the resales. What do you think?
What do you think the inventory supply is? How much supply.

(01:19:51):
The only way we really measure this
absorption. What's the absorption?
27 and a half months.
2 years, plus
on new resales in condo?
Yeah.
guys.
is it nice to have something to talk about when the customer asks how the market is.

(01:20:13):
how about our single family home market guys, our single family home prices coming down.
Why not, Josh? The insurance? Why not interest rates are so high?
I'll give you a hint, guys, will you guys see? Okay, with a little bit of a market conversation as we try to figure out how to get our buyers to want to work with us.
she said. Yes, I'm only listening to her.

(01:20:36):
The guys, okay? All right. Well, I'm gonna give you a couple of reasons. A reason. Number one.
It rhymes with sinflation.
What do I mean, guys, when there's inflation in real estate, what happens to real estate prices?
It's always nice when a room full of real estate professionals.

(01:20:57):
guys.
how much less confidence do you have to have in an answer?
So here we go. I'm going to give you some numbers. Maybe this will help
for the customer that tells you they think prices are going to come down
last inflationary market that we had in the United States was from 1970 to about 1982. That was the heavy inflation, right? The average, the decade of the 1970 s. We averaged more than 9% inflation

(01:21:21):
per year.
Yes, it was rough.
And, thank God, 1980 is dead there. Because 1980, we peaked at 14%
Median home price in the United States, America in 1970 who wants to take a shot? Take a guess, and if you took my class and you know the answer.
let the other kids struggle.

(01:21:43):
I got to vote for 25,
45 k.
50,000,
30.
All right, everybody. The guest is getting a toaster
because you did not make it on stage. You were all over Median home price, and we did this prices right style. So it's
$17,000.

(01:22:04):
Who'd like to go back and buy a few of those with me.
Yeah, what do you think? The interest rate was in 1970
7.5%
7.5.
So right about where it is now, maybe a little less
right? We're a little less now.
By 1980

(01:22:24):
interest rates were 16.6 3%.
Now, guys.
when we were watching the news.
and I was in rooms like this of agents freaking out
because interest rates have gone from 3 and a half and 4 up to
almost 8.
What do you think happened? And the agents are freaking out, telling me that the home prices are gonna have to tank.

(01:22:49):
There's no affordability.
What happened? The home prices in 1980? What do you think they were? How much did they fall with interest rates so high
guys? Not only did they go up?
They went up faster than they normally do. Median home price, United States of America, 1980, $47,200, total aggregate real estate appreciation for the decade of the 1970 s. 177.6%.

(01:23:18):
Normal real estate appreciation in a decade is typically around 50, 60%. What does that mean?
My real estate appreciated about 3 times faster than it normally does? Because when the value of money goes down what happens to the price of eggs when there's inflation.
napkins.
toilet paper tablecloth.
What makes you think shelter

(01:23:38):
one of the primary human needs is going to be the one outlier that now goes down in price. Are you guys okay? Is that making sense? By the way, the total aggregate devaluation of money for that period of time
your money from 1970 to 1980 experienced 103.4 5% total
compounded inflation.

(01:23:59):
which means, if you had a buck in 1970 couldn't buy 50 cents for the stuff within 1980,
1 0, 3.4 5. How much is my real estate appreciation. Again, guys
177.6. Does that mean that my real estate outappreciated my inflation by more than 70?
Ha!
So why does real estate have this great reputation as a hedge against inflation?

(01:24:23):
Is it because it's got a good publicist
because it always has been
so? Let me ask you a question. That was the 1970 S. That couldn't possibly happen. Oh, wait a second.
What's going on right now?
Are we seeing the exact same thing.
Guys, I want you to understand. This is a great thing about your product. And I'm telling you this because nobody ever stood up here and told me this.

(01:24:48):
we have a big, beautiful, long history to our product, which means we can go back and look and see when economic pressures were applied to our product. And what our product can do.
Does that mean? We can give our customers guidance, going forward, saying, based upon what typically happens, this is what you can expect.

(01:25:09):
As it turns out, we can
question is, should we?
Well, the question is, what is the customer buying?
They're buying the future.
What do I mean, guys, when you get your paid, you get your commission. You consider your job is done.
When does their relationship with the property begin
from closed and going forward.

(01:25:30):
They're buying the future of that asset. If you can't tell them what the outlook for the future looks like, you can't tell them actually what they're looking at buying. Does that make sense?
This is going to be important as we go through this guys
because we're gonna have to have more conversations like that
fonts.
That's how we're going to take and earn their business is showing them that we've done the work

(01:25:54):
to quantify for them
what it is we're asking them to spend money to buy.
Does that make sense to everybody?
Cool? Cool?
All right. So working with the buyers.
would you agree? This is going to be.
Require a little bit more
from agents.

(01:26:16):
I would say so, guys.
I would say so.
The listing side is no longer going to do the heavy lifting. That listing agents not going to go in. That listing agent's still going to go in there, and if they're doing, they're if they're doing what they should, and showing the customer the benefits of co-brokerage.
they're probably going to have Co brokerage still be a major part of real estate. I could say that, guys, because anybody do. Commercial in here.

(01:26:38):
Most commercial deals offer some kind of co-brokerage, don't they?
They do guess why
it gets more money for the seller.
It's in the seller's best interest to do so.
So we'll talk about that. We'll talk about why it is so.
I said we need to establish our credibility upfront. We're going to have to do that. So let's talk about

(01:26:59):
what things we could talk about to establish credibility.
Are there a few things that we could probably talk about.
What do you guys think?
Do you think? Maybe, whether or not your kids take ballet lessons? Would that help establish credibility?
What kind of parks you and your family like to go to

(01:27:21):
children's activities in the area?
Give me some stuff that maybe would establish in credibility. What are you thinking?
Okay, so like.

(01:27:43):
absolutely.
So what's your name? There.
Diane?
Diane? Exactly. And all I'd be doing? Diane is polishing that conversation up and polishing that conversation up to make it better and better. My listing agents out there.
I know some that have a cookie cutter listing presentation that they've been given for years, and it's 42.6 min long.

(01:28:05):
I have never given the same listening presentation twice, because I'm always trying to make it better. I would encourage you guys.
Every interaction is an opportunity. I could have explained that. Better let me have better numbers, better data guys. You want to be reading your customer to see when you got them, and when you lose them, that body language is such an important part. Those that were there for the previous class that we pick up some cool stuff on the body language, and that class totally right. We got to take, and we've got to read what's going on to make sure we're answering what really matters to them?

(01:28:36):
These are the skills
guys, are these the skills at the listing table that we've been using for years.
Absolutely
now.
now we have to bring them to a different meeting. A meeting that a lot of times was not happening
is by our customer consultation, where we're going to take and bring in our paperwork and say, Hey, look!
You want to see houses.
This is what we need in order to make this happen.

(01:28:58):
So what else can we talk about to establish credibility? I like that.
I like the idea of real estate as a a wealth building tool. What else can we talk about to establish credibility.
the market?
I absolutely
absolutely could. We talk about what's going on with the mark, guys.
I said, inflation is one of the things that's propping up home prices. What's the other thing that's propping up home prices?

(01:29:22):
What's that
inventory? What do you mean by what do you mean by inventory?
So there's not enough houses, is it? Because not enough people are selling?
So here's the thing, guys, the temptation is to say, yes.
but here's the thing. If those people sell.
what are they probably going to do?

(01:29:42):
Rebuy.
which means it's a net 0 to the market.
Does that make sense
so end users? Are not the actual road to getting inventory more inventory? What is the road to more inventory?
What's that
well, interest rates would encourage more people to maybe

(01:30:02):
buy and maybe make prices come up, and maybe it would encourage some sellers that they could take and get out of this house. They really want to get out of and go someplace else. By the way, guys, capital gains exclusion is another place to take and and point to as a reason for them to sell. You want to understand that a little better. Come, see me in a break, I'll tell you, because I don't want to go to that rabbit hole a rabbit trail.
It's a thing that's where I'm getting my listings from is talking about that.

(01:30:25):
But
what else?
Thanks for sitting close. That was a very easy fist bump to give, he said. New construction. What did you say?
But he was closer.
so there was like the sound, the speed of sound. He! He won that one. You you were. You're correct, sir.

(01:30:45):
Our builders banging out houses as fast as they can.
Now see, guys, this is what always concerns me when I'm in a room full of real estate professionals, and they can't answer that question.
Do you understand, guys, that
it's your job to keep your fingers on the pulse
of the inventory? Because here's the thing. If I encourage somebody to buy something.

(01:31:08):
and then builders come in and build but a price point that undercuts what I just had them buy.
Doesn't that take and dilute the value of what I just had them buy. If I have them buy an $800,000 home and a bunch of builders, build a bunch of $750,000 homes that are nicer than their home.
Is that a scooby-doo situation?
Rut row?

(01:31:29):
That's not good, are you with me?
So we have to make sure. Guys, when we're talking to customer discussing the market, we're discussing what's propping this up. Builders are not building enough homes. The shortfall of homes is estimated around 400,000 homes
for the last 12 years.
which it pushed us down about 5 million homes. At this point

(01:31:51):
we're about 5 million homes shorter than we should be.
Which means, let me ask you this, do we think that our home should appreciate normally at that 3 to 3 and a half percent rate of growth that they historically have? Or do you think they'll appreciate a little bit faster.
a little bit faster? And if we look at the market. Has that borne itself out?
Now, guys, is it nice to look at a market? Not as a victim of the market? Oh, so let's see where prices go.

(01:32:16):
or as someone that actually understands where it is and how it got there.
Would you agree that, considering the trust you're looking to get from your customer. That's really the perspective
that you should have of the market that you're looking at.
and I know they don't.
It's hard to find places that talk about this stuff, folks, but that's why I want to have the conversation with you right now today about this, at least to point you in the direction of the stuff that the customer reasonably should expect

(01:32:46):
you to have your fingers in the pulse of right.
So
I'm going to tell you that it's going to break down into 3 pieces
the process
right? The 3 things that I'm going to tell you that that I think a great real estate conversation would start with
would be me explaining the process of ready you're getting ready to get into and the potential problems with what you're getting ready to get into

(01:33:09):
guys. Are there ever problems in the real estate transaction?
No, Josh, they go perfectly every time
there's problems all the time.
What else
the market.
What's a good market conversation sound like guys
as what

(01:33:31):
is local? Well, I'm gonna take and tell you this, actually, the way that I would normally handle this the way that I like to handle it. And this is a business decision. How you want to do it! I love to go wide and then go narrow.
so I'll have a conversation about the national real estate market.
and then talk about how Florida is
performing as compared with the rest of the nation, and then I'll make it a hyper local and talk about the areas around them

(01:33:55):
that they're thinking about buying in how those areas are performing.
Why would I do that?
Because it shows them that I'm paying attention?
See, guys, if I have great information on all that stuff? Does that make me a better.
worse resource to be worthy of their money.
Josh, I just want to take and post my pictures on Tiktok and be an influencer. I don't want to have to actually

(01:34:19):
business decision guys, I'm not telling. You have to be an expert. Go out there and be a scope, be an influencer. If that's how you want to take and get your business. I'm just suggesting, if you want a doc signed.
you may have to make a case that you've done something worthy
of getting your business.
Sit
last one.
the numbers or the investment, right? So we're going to look at the investment here in just a second.

(01:34:43):
I told you guys to
go ahead.
It's there.
This picture needed. Done. We good.
Okay. I got permission to move on, guys.
So I gave you guys a calculator.
I showed it to you. Why? Because I want to see if I can make
a case to you
and see how you feel about it.

(01:35:04):
I'm gonna do something that we've done quite a few times in some a lot of the classes that I teach here.
And you see the gigantic calculator
if you said no, I find it hilarious
at the same time.

(01:35:25):
All right, guys, I'm setting the calculator up right now at 12 payments per year. What has 12 payments per year that we deal with in real estate
mortgages. It's gonna take and figure out a mortgage for me. So let's buy a property together.
How much?
how much you know what we're gonna do.
ma'am. No, let's do it. The let's do it this way. How much do you want to take, and

(01:35:47):
by the property for
huh?
7 50. The gentleman says 7, 50,
all right.
Is the bank going to lend me a hundred percent? Ltv on the 7 50
figure what? 80%.
So let's figure out how much money we're borrowing.
We're borrowing 600,000 is everybody okay with how I got the 600,000.

(01:36:10):
So 150,000 down, 600,000 were borrowing.
All right. Now, guys, we got our top row up here. I'm going to give you some quick notes for those of you that want to take and learn something really cool
for those of you that don't hum the
the Barney song in your brain while while we do this. Alright.
I'm gonna teach you the top 5 buttons with these top 5 buttons. You can do some ridiculously cool things. These top 5 buttons right here

(01:36:34):
are how we're going to do both mortgages and future value.
It's also going to give us the ability to show them their mortgage interest, tax deduction in seconds
in front of the customer
like this to make the case for our product while we're saying, why, we're selling them a good thing. So you got
your numbers up here. These 2 on the left

(01:36:54):
are never money.
If what's in the display is dollars, it will never go on the left hand side. Does that make sense to everybody
if these 2 right here
never money.
So right now I got $600,000 up there.
which means it can't go in either of these 2, because that's dollars. Does that make sense
cool?

(01:37:15):
So if these 2 are never money. Want to take a while to guess what these 3 are.
Always, Monty, you guys are good.
The reason why we got 3 money buttons is because in any investment or any deal there is a beginning, a middle, and an end.
I like to call it the birth, life, and death of the investment.
Okay? So guys in the mortgage investment from the bank's standpoint.

(01:37:39):
they're going to take in. Give me $600,000. Correct?
Does that happen, the beginning, the middle, or the end of the mortgage
the beginning. So of our 3 buttons. Which one are you thinking it's going to be
Pv. Or present value. Somebody has taken my class before I love it
all right. What kind of interest rate we given on the 600 k.

(01:38:02):
I got 7. I'm taking 7. I heard it
all right.
Is that $7, or is that not money.
not money? Okay.
using all of your intuitive abilities and skills.
Which of the 2, not money buttons are you thinking is for the interest rate per year.

(01:38:23):
You are good.
she said. I slash YR. I'm agreeing with her. We're going with that. Let's say it's a 30 year mortgage guys. Now, here's the thing you got to realize when you use a calculator like this. When you tell it 30, it's expecting 12 payments per year. So if you said 30, it's thinking you mean 30 months.

(01:38:43):
So I got to tell the total number of months
360. By the way, that what you just did is the hardest math that you have to do in doing this. So if you're like, I don't like math, and I don't like calculators. If you can remember that there's 360 months in 30 years. You, too, can be a calculator genius.
So we're going to put in 3 60,

(01:39:05):
plug it in here.
All right, guys, you ready for how complicated this is, if I slide over to the Pmt. Button and push it.
It will tell me, Josh, if you want to owe 0 and borrow 600,000 at 7 for 360 payments. This is the exact number of dollars you must pay to get to a 0 balance in 30 years. That is your fully amortized mortgage payment, and if I push my orange button

(01:39:29):
and my future value button, which is now my a mort on your cell phone. You have the full amortization schedule to give your customer, with principal and interest breakdown of every single payment, plus the breakdown of the entire life of the loan, how much money they're going to spend total, and how much principal they paid, how much interest they paid. Oh, wait! There's more
I'm going to take and highlight this little box over here.

(01:39:50):
and I'm going to just take and tell it to update. And what it's doing right now, guys, is it's just breaking down year one.
So this up here is the total amount that I paid in year one. This is the principal, and this right? Here
is my year. One mortgage interest tax deduction.

(01:40:11):
a 41,000 plus dollars. If they continue to rent instead of working with you to buy? Do they have to give up on that 41,000 plus dollar tax deduction? Yes.
one. You're going to type in 12,
push the orange button and then push the button that normally says payment.

(01:40:32):
All right, everybody. Okay with that. So far, not too bad.
Let's see if we can help this customer out, guys, I
let's say they, let's let's take, and just
so assume they're going to live there for 10 years.
How many payments would they make in 10 years, I'll give you a hint. It's the number I just put in there.
100 and 20. Okay, so what's changing

(01:40:54):
is this the payment that they had to make.
That's the payment they're making to the bank. So they mean, this is the payment they've been making for 10 years. Right?
They still borrow this much from the bank right?
And this is the interest rate. All that changes. If they make 360 payments they owe 0.
But if I change it to 120 and push future value. There's the mortgage payoff.

(01:41:16):
I mean, if you ever want to get a mortgage payoff that that
that's it. That's the only number it could be. That's exactly the number that they're going to take off
on the title at the title company at the closing.
That's what they owe the bank. So let's call it 515,000. Would somebody write that number down for me and remind me later, when I need it. 515,000.
We okay, somebody got it.

(01:41:37):
Everybody's looking at each other and assuming they got it
all right. I'm going to go to one payment per year. I'm going to show you something else.
and we're tie it all together.
That house was 750,000 bucks right?
Yes.
Now, here's the thing. Guys. Did you notice how the mortgage payment was negative?
Had had a little minus
the reason why is because the mortgage payments coming out of my bank account.

(01:42:00):
whereas the money the bank gave me the 600,000 was a check they were sending to me. The calculator needs to know whether we're receiving the money or we're spending the money. Does that make sense to everybody?
So am I spending the 7 50, or am I receiving a check for 7 50? When I buy the house
I'm going to spend it, which means I need to go

(01:42:22):
right here above the blue button to the negative button and make it negative. And then, guys, do I spend the money to buy the house at the beginning of owning the house in the middle of owning the house or at the end
at the beginning. Right? That's when I purchased the property. It's my purchase price. It goes right there.
We're going to hold it for 10 years.
And let's say we kind of agree that single family homes are not only appreciating faster than 3 to 3 and a half percent. But they're probably going to keep going that way for a while because builders aren't building enough. Are we okay with that idea guys, maybe. What do you want to use? 5, 6, 5 and a half? What are you guys thinking?

(01:42:56):
5. Okay, we got good basis for 5, because nationally real estate appreciated in 2023 4.8%.
But then, again, we're in Florida, aren't we?
Did Florida do better than the rest of the country.
Yes, did southeast Florida do the better than a lot of the rest of the State of Florida. Yes, it did. So. We're being super conservative. We're plugging in 5. Are you watching this guys? This is what they should be able to sell the house for?

(01:43:23):
Oh, oh, you don't know about. Let me introduce you something. Guys.
let me say, introduce you to the product you've been selling for years.
Let me introduce you to real estate.
See? Because what's that?
This is literally because, guys, if you don't do something like this, I want you to understand the position that you've been in.

(01:43:46):
you're send a buyer buy real estate. It's a good investment.
Trust me.
do you guys like it? When a salesperson says, Trust me.
no, wait, I'm not. Here's the best part. What's your name.
Leia Andrea?
I'm not done.
Wait, there's more.
How much do I owe the bank?

(01:44:08):
515,000, right?
5 14 in some change. I think I read that to 5 15 cool. What's that?
That's the sale proceeds. That's the check I'm getting from title company. Obviously there'll be closing costs that come out of there. But we're playing with rough numbers here, and guys is all of that profit.
What Uncle Sam maybe we don't even know yet, because part of this is not profit at all. Part of this is returning my down payments.

(01:44:36):
How much of my money was in there? But we bought it for 7, 50, we we got borrowed 650.
What's that? Number?
556,000? You know what the name of that number is
profit.
And guys, how much of that profit is taxable on their primary? If it's a married couple.

(01:45:00):
56,000 of this is taxable. The other half mill. They made tax
3. How many places in the tax code do you get to make a half mil before Uncle Sam comes knocking at your door.
How about making 50 cents before Uncle Sam comes knocking at the door?
Guys? Wait! Wait! That's that's 556,000 on an investment of how much money?

(01:45:24):
100 and 50,000 bucks, who here would like to invest 150 and walk away with 556,000 in profit.
Now let's take and stand it on its head for a second. Could I show you something? Would you guys be mad if I showed you something else real quick. It wasn't even part of my original plan. But I think you guys are going to like it.

(01:45:48):
Let's do something different.
Can anybody in here thinking of an area, maybe where a home just would sell right now for a million bucks like if it was to go on the market like where there's like a close sale of a million bucks.
I'm not asking for a place I'm just saying in your head. Think of that market because I'm going to ask you a question in a minute.
So let's say they sold for a million bucks.

(01:46:14):
And let's say they bought it. Let's do. 7 years ago.
How much did they buy that house for
if they just closed it a million, what do they buy that house for in 2017, we just say, thinking about the area, what are the what was that same house going for
400?
Would you guys agree? It's 400 and okay number for the house that just closed for a million.
Okay.
let me let me show you one more thing, guys, and then we're going to move on, because what I'm showing you right now is maybe part of the conversation you might consider having with your customer.

(01:46:44):
in order to get them to feel pretty good about sending that paperwork. I hope you understand. That's what I'm trying to lead you to is maybe some of the different things that we're gonna have to talk about. When they asked me to write a class, and what has to change, our conversation has to change, and the things we talk about. So let's find out
if they bought, they just sold it for a million.
and they bought it for 400,007 years ago. How much did it actually have to appreciate at in order to get there? Guys that home appreciated at an average of 14, almost 14% compounded per year. That's the real rate of growth. So we used 5. This is the historical rate of growth for that property at 400 to make it to a million

(01:47:25):
500 we guessed on. This is the real number.
Now, here's the crazy thing. If I'm talking to my buyer about buying the property, and I say, well, look, guys, I can't predict it's going to do exactly what it did. But if it appreciates the same way it has
for the next 7 years.
You sure you want you sure you don't want to? You sure you want to keep renting? Are you sure?

(01:47:45):
What do you think, guys, is that a slightly compelling case
at 2 and a half mil.
Now, if we look at 5,
it's not nearly as as exciting.
But you know what that's almost a half 1 million dollars, 40,000 bucks.
I don't know. Guys. I kind of feel like this real estate thing's halfway decent. What do you think?

(01:48:08):
So I'll look at this. The numbers that we had were pretty close.
and with a taxable consequence. So what would be the one thing that we would look at that would be the caveat for this.
What would be the one thing as to whether or not this is all profit.
any capital improvements that they made to the property. So if they put in a new kitchen that would reduce that amount of profit.

(01:48:33):
make sense, any any improvements that they made would count against that.
because it would drive their call spaces up
right. Closing costs would come out of there. All of that stuff, guys. I'm doing this as a quick and dirty just overall to show you
the product that you've been selling, and I think largely taking for granted for years, because, frankly, when I was on your side of the table almost no one ever talked to me about this. So we're here. We're hanging out. I know what you're getting ready to walk into, and the case you're getting ready to make. I want to send you out of here, if not armed, at least an idea where the armament is

(01:49:10):
to make the case. If you don't know how to do this, and you think this is gonna help you make a case. Well, now, you know, and you can now go out and seek more on that. If you think this is not for me, you also know that, and you know, to avoid any class that it had that calculator
fair enough. You're going in with your eyes wide open, and that is is my goal
for what I want to do today. You guys, okay with that idea?
Because if not, you're kind of stuck. There's a lot of people. It's really awkward to walk out at this.

(01:49:34):
Alright? Yeah. Guys, if you want a
there's a free tutorial
video that I have
for you on the calculator. If anybody wants it on how to take and get the mortgage payments, the future value all that kind of stuff. It's just a free thing.
and also my cheat sheets on that calculator. So if you want it
that's a place to take and get it, because it turns out even in the classes where I teach it.

(01:49:55):
Interesting phenomenon. When I leave the room people cease to be able to do the calculations on their own sometimes. So
all right.
you guys good. Now I see cameras still up.

(01:50:15):
I share this with you guys because nothing has helped me more on this business to go away from me offering opinions
to more just offering facts that they feel are compelling, which means I'm no longer trading on my trust.
I'm showing them facts
that they really can't back down from. Does that make sense.
And as I'm trying to establish trust, I don't want to take and tap into that trust bank unless I absolutely have to to make a point.

(01:50:41):
and the calculator does the heavy lifting for me. I'm not tapping into that.
We good. All right. Cameras are down, so we must anticipate the objections are coming, guys.
The second, I found out
that this was official.
I spent the next week and a half writing a book
on buyer, brokerage agreement objections.

(01:51:03):
how they're going to sound
and how to handle them. Why, cause I'm anticipating we're gonna hear all of them. Well, except
1 1. We're probably not going to hear anymore. So
we're not going to work through these right now, because this room is too big and we've been directed. I have a postie note on it and everything.
No questions till the end. And this would definitely be Question City. So we're gonna save it for a little bit.

(01:51:28):
all right. What is the big objection? The biggest objection is off the table. What was the big objection? Especially in this neck of the woods.
to? Not that the buyer would raise to keep us from getting a buyer. Brokerage agreement signed.
It's not a matter of not having to pay us, because typically Co-brokeridge was being offered

(01:51:49):
very rare.
It usually wasn't the exclusivity problem.
What was the objection?
Why should I sign with you
when the guy over there is not going to make me sign it and show me properties. Anyway.
What's that?
Say? One more time?

(01:52:11):
All right, my Abr. Folks are cringing because they know we're where I'm going with this.
The idea is, and this is what I was told. And what you're saying is a lot of what I've heard.
Okay, which is, have you guys been told you should make your value proposition
for years? Right?
But who here is like.

(01:52:32):
what exactly does that mean?
Because, like they tell you to do it.
The example I used to give is back. When I was a younger guy I was hopeless with dating. I was hopeless with girls. I was a home to school, kid. So I you know I had no game.
I had negative gang.
and so I would ask my female friends, what am I doing wrong, and you know what they would tell me

(01:52:56):
have more confidence.
I'm like great.
but how you know what I mean like, it's true they're right.
but it's not helping me solve the problem. Make your value. Proposition is true. It's right. But
how?
This is the reason why I gave you the process, the market and the investment. If you're talking about those 3 things, if you learn those 3 things and talk about them guys, does the process change? No, not really. It's pretty much consistent. The problems are the problems you learn how to overcome them. You tell them in a compelling way, hey, look, we're going to get a home inspection. I'm not going to let you buy a house without seriously suggesting. Get a home inspection, because I want to make sure you know what you're buying?

(01:53:40):
Here's the problem a lot of times. Buyers that are 1st time buyers. They see that home inspection and they lose it. I want you to understand that home inspection is for you to go in with your eyes wide open. At the same time, it gives us leverage to potentially go back to the seller and get concessions based upon things that were discovered in us. It is a negotiation tool for us, and also a tool to help you make sure you know what you're buying. That being, said, the

(01:54:04):
the home inspection that finds nothing wrong with a home
has never been created.
Alright, so we are going to expect. And I want you to see an example. Take out another home inspection that somebody's giving you permission to use and show them what it looks like.
because I don't want them to want up like a lot of buyers where they're now 3 home inspections in, because they they

(01:54:29):
soon as I saw the 1st one they killed that deal they saw the second one man, another bad house. Now they're on the 3rd one. They paid for 3, and they realized, oh, gee! All these home inspections kind of look like this.
Why don't we give them context as agents? Because, Josh, it's fun to show them extra houses.
Guys my bummer customer consultation. I have a home inspection that is a big, nasty home inspection from before that a customer allowed me to use, and I show them, hey, guys in my buyer before we even sign the doc. This is what a home inspection looks like.

(01:55:06):
Look at the ink. The pictures, look at all this stuff.
have context. So we have to make the case. Why us.
what is the next most important case that we need to make
the case for the importance of 10 min breaks.
It's been another hour. Guys. Take another 10 min break. I'll see you back at at 3 40.

(02:05:09):
All right, guys.
all right.
if you can hear me say, shhh.
thank you. Guys, thank you so much.
All right.
So
let's get into the weeds. Here we got to get into the weeds of the buyer brokerage agreement.

(02:05:31):
The last stuff that we got to talk about is kind of how we're going to talk about this.
Your customer may hit you. What is why I bought before. Why does it have to be this way?
Frankly, the thing that I'm saying is because some attorney, some place in the middle of the country, decided to make a whole lot of money.
and now they've made it. So you have one of the things you didn't want to have to do. Why, you hired an agent is to not have to negotiate. Well, now, they want to make sure you have to negotiate. It's all guys. Is it safe

(02:05:59):
to bet they don't like attorneys.
as it turns out? Yes, so I'm totally blaming, having to sign the doc on the fact that some attorney made it this way, Sellers not offering Co. Brokerage. What can we say about them? Well, they don't care about your costs.
You want to buy this house, and they're not offering. Understand? They don't care about your costs, because the reality is, it's much more expensive for you to buy this home

(02:06:26):
if they're not offering it.
You're going to have to. They're going to have to pay their representative from dollar one out of cash rather than when the seller offers it, being able to wrap it up into the mortgage on the property, which means, if it's an 80% Ltv loan.
They're only coming up with 20% of the compensation in cash. The other 80% is financed over the life of the loan.

(02:06:54):
or maybe that seller just wants you unrepresented. What kind of person wants you unrepresented
somebody that wants to pull one over on you maybe not have maybe not let you get a home inspection, and maybe have you sign a contract with their terms that are bad?
What kind of person wants you unrepresented.

(02:07:17):
Mr. Mrs. Buyer.
or maybe they just have a lousy agent that didn't explain things well enough that they could understand
how much
it's going to take
and make it harder for you to buy this property all right.
So
why they should sign

(02:07:37):
well, they need to sign something with someone
and a nod to the fact that I'm in Dade County.
I will take and defer to my Espanol
C.
That is the full extent of my espunule.
Yes, they're going to need a sign with someone.
Any realtor member that doesn't so make you sign is a sleazeball. Yes, it's in a new term, sleazeball. It means they are in breach

(02:08:05):
of the agreement with Nar. They're probably going to get fine.
They may lose their license. And oh, yeah.
they're in contempt of court for the settlement that they've agreed to. So Kai's, it's kind of a big deal you got to get.
You gotta take it. They need to understand that it doesn't mean that they're gonna have to pay you money. You're gonna get paid

(02:08:26):
potentially. But them having to pay you cash is not a guarantee thing from this all right. It doesn't mean if they offer up to that amount of compensation I can get it.
It does mean that if the seller offers up to that amount of compensation that I can then get that amount of money. This is one of the big ideas guys, because we are limited

(02:08:47):
in the amount of co-brokerage we can
receive.
not by what the seller offers, but by what's in our buyer brokerage agreement.
Okay? And I know section 14. We're going to talk about it.
It also, guys, the reason why you got to sign with me is because it's gonna allow me to represent you.

(02:09:07):
It's going to allow me to get paid.
which is also kind of important to me, as I imagine it's important to eat for you and your job and guys. If you've done a good job in the front part of your agreement. This last thing
should matter to your customer.
It shows me
as the agent that you, as a customer committed to me.

(02:09:28):
Now, if you show them guys and you've built good credibility and trust on the front.
they should be willing to make that commitment. And if not.
then there's a business decision that you need to make.
Are these the kind of people you want to work with
business decisions? Guys, I'm not telling you what to do, and I'm not implying what you should do.

(02:09:49):
I'm saying that you have to make choices as well.
So this is the star of the party.
What you guys really wanted to see? You thought I wasn't gonna go here? No, no, no! What did I tell you? The order of what is the order of operations? Guys, you make the case for you.
Then you get to the dock.
I try to show you how to make the case for you.

(02:10:11):
Now let's go over the documents.
That's what we push for the sign.
Okay, so parties.
guys, if you don't know what their names are.
Now, if it's a married couple, you'd probably want to get both parties on there, because you don't want the wife signing one with you and the husband signing one with somebody else, and that kind of stuff, because then it could get messy

(02:10:33):
alright the length of time of the agreement till the end of time is not acceptable for the term guys. It must have a fixed end date.
all right.
the property type. So type of property.
What could this be? It could be single family, home, Condo townhouse. It could be single family, home, townhouse, or condo.
We could put all 3 of those things in there. We're allowed to use broad terms. Location.

(02:11:00):
Who? Said Florida.
all right.
I totally had somebody do this to me yesterday, and it's okay, guys, and it's funny.
But let's just have have an integrity conversation with ourselves, because I know you're saying it to be funny, and so I'm let you off the hook.

(02:11:21):
And then what? Let me ask you a question. Are you? Are you physically capable? You have the Mls in Orlando?
Well, fantastic, then then
do you have the Pensacola
Emerald Coast.
Panama City?
No, no, the answer is, no, you don't, and you don't have the market expertise really to do the job for them.
and so that again, business decision.

(02:11:43):
if they wanted to take and fight it, though.
and they could take and show that you don't have the necessary resources to be a real resource. There, you're maybe loading up for bear. Now, if you if you do again business decision for me, I know the areas that I would work.
I would work Dade Bauer and Palm Beach, and I might put Dave Broward and Palm Beach counties in there.
Maybe not Palm beach. I don't know sometimes yes, sometimes no. It depends.

(02:12:11):
then that then you are not. Then you do not have an agreement with them
for that they can go get somebody else, or you can amend yours if they want to work with you.
Okay. But what I'm going to say is, you want to be broad with this.
I gotta be careful because they told me no questions. So
so the question is, if you say South Florida.

(02:12:34):
are you capable of?
Do do you have?
Do you have Mls in Naples?
Naples is South Florida.
you mean southeast, I would put if it was me, and I was putting it. And maybe I was gonna work. I would pick maybe the counties or the cities in which I work. And I'm competent for again.

(02:12:57):
guys, we're getting a little feisty.
getting a little feisty.
Your area that you work is a
business
decision.
All right, guys, there is no cookie cutter answer. We're not going to violate antitrust by drawing lines.

(02:13:18):
I'm gonna take and treat you like adults because you are. And say, this is your operation. You're the CEO of the operation. What areas do you feel like with integrity? You can make the case. These are areas I can work and I can rock it for you. In these areas. I deserve compensation in these areas because I'm that stinking good.
If you can't make that case.

(02:13:39):
then maybe you want to exclude those areas. Are you guys with me? Business decision.
Postie, note.
all right, broker's obligation. Here's the list of all the stuff you got to do. Guys, you have to use your knowledge and skills. Isn't it great that we put at the beginning of this whole conversation before we sign this, our knowledge and skills on full display so they could see what they're getting who likes to see before they buy.

(02:14:11):
Why do we want to have the conversation we need to show them before we ask them to buy our services.
Are you with me? Requirements?
Basically show them viewing suitable properties? It's our job to make sure that we're looking at what they need, what's required, and help them to find the right kind of properties
and right kind meaning matching their budget, matching their criteria, all that kind of stuff

(02:14:34):
going to help them. The negotiation. We're going to cooperate with other agents.
So
they're going to refer to the customer as a consumer
in this in this agreement. That's what the what the customers referred to
the brother. There's gonna let them know. This is kind of cool. I don't know if you guys realize this, it's gonna basically say to the buyer, Hey, look.

(02:14:57):
you should be exclusive with me.
But I'm going to see other people on the side.
That's what this section says.
It says. Just so, you know, while I'm working exclusively with you as my.
you're working with me exclusively as your your rep.
I may be working with other buyers on the side. In fact, I'll do one better for you.

(02:15:18):
I may show them the same property as I showed you.
In fact, I may put an offer in for them on the same property I showed you.
That's all disclosed in here. All right. Fair housing
guys, fair housing is very important. It's very good stuff. It is also something that you have to be careful of. It's so important that even a cell phone might go off in the middle of the conversation here to indicate just how important this is.

(02:15:45):
All right. Fair housing is a big deal, but it's also one of the areas of great liability for agents. So just be careful that you treat everyone the same.
Some of the cases that we've lost for not treating people the same
would make your hair turn white to here.
Alright, I'm what's that?

(02:16:07):
You want to hear one?
All right, guys.
I'll tell you one. I want to get through the stock. But let me just tell you, this one is one that comes to mind.
I was having dinner with a guy who speaks on fair housing. He's an attorney, and was talking about one of the court cases that was lost.
The listing agent lost the fair housing case.

(02:16:27):
because they suggested to the seller
that they put their sex toys away
prior to showing the house.
And the reason why it was a violation is because they didn't suggest that with all sellers.

(02:16:49):
I feel like you just made the captain obvious comment. There, like, you know, I don't normally suggest it when I. So guys, this is
this is the kind of the unfortunate. You have a law that is very good, that is meant for very good things. And there are people that sometimes bend the rules a little bit to take and get a result, which means that we as agents, we know there's certain things that a person's got like personal pictures and stuff like that that. Maybe they want to put it that we would suggest they put away.

(02:17:15):
You're going to be fine with that, because you probably say it in every presentation.
Okay, with this kind of stuff, it's it's just important that you're treating everyone the same way. So
how would you handle it in this situation?
If there's any hobbies you have
that have. I don't know any tools, equipments

(02:17:38):
whatever.
You know. Maybe you like pickleball, and some people hate pickleball. You want to put your pickleball rackets away
all right. I don't know, guys. This is one of the messy parts. That's kind of a little bit of an outlier. It's not all the time. But I just want you guys to be aware.
All right. Treat everybody always the same. And let's not get questions on fair housing right now, because that's totally not where we're hanging out. All right. I just want to take it and make sure you're doing the right thing. Service providers. All right. Basically, we're not warrantying or guaranteeing the work for anybody that we recommend to come to them. It's just a recommendation of, Hey, this is a person that can help you with this stuff.

(02:18:21):
Would you believe the consumer actually has some responsibilities to us. Isn't this nice? How about? They're gonna do all their business with us, all negotiation into effort to locate a suitable property. They're gonna do it through me. That's nice.
They're gonna provide. They're gonna provide you with necessary 3rd parties, lender closing, etc, with accurate information.

(02:18:43):
In other words. They're agreeing that they're not going to basically provide bad information and tank the deal to try to get it out of the dock or anything like that they're going to do the right thing on that front.
You see this one
be available to meet with you.
Anybody ever have a customer that ghosted them.
This is kind of nice, huh?

(02:19:05):
And they could still gauchia. But at least you have a doc. Make you feel a little better about it.
So
any work that we do on their behalf. Basically, this is an indemnity section, basically saying anything that happens.
any kind of
liability that's incurred on while working their behalf. They're gonna indemnify us from nothing, really nothing. Really fancy. All right.

(02:19:33):
this is pretty much the
the guts of this.
So the last one making a diligent good faith effort to perform the contract terms. Any purchase agreement they're going to take and not passive, aggressively. Try to get out of a deal after. The fact is what that's promising. Guys anybody ever had a a buyer that decides to like
drag their feet on a deal to take and have the timelines expire so they can get out of a deal that they don't like anymore.

(02:19:59):
Well, right now, this agreement says they can't do that
the okay, here's the part everybody wants to talk about.
All right.
I know the temptation is going to be to go like this.
But, guys, I have a pink posting note up here that says
no questions

(02:20:20):
till the end.
No, no, I'm gonna show you proof of the but you don't you don't have to trust me. There's a posting note that says it.
All right, retainer. Now. It used to be in the older version of this that the retainer was allowed to be
either to count against what they owed you on the back end. If they bought or not, the retainer no longer has that as an option is a non-refundable retainer fee.

(02:20:46):
and it is earned basically
upon execution of the agreement.
them saying they're going to pay you X
for you to work with them at all.
They're going to pay you an amount
for you to agree to engage their services to your services. It's just like an attorney, you pay them a retainer.

(02:21:11):
Same kind of thing non-refundable. There it is. Okay.
Compensation. It's going to talk down here about how compensation is going to work.
So this compensation
is going to be
what is guaranteed to you.
whether it comes to you from the buyer paying you directly, or if the seller offers co-brokerages, it will be counted against whatever amount is there up to the total amount that is there anything that exceeds that?

(02:21:41):
We'll go back to the seller.
Well, because the
the listing agreement has a total amount of compensation that's agreed to
right.
If the listing agent doesn't use that advertising budget up.

(02:22:02):
it's not due to the listing agent
that's earmarked
for another agent. If the other agent doesn't use it.
then it's advertising expense. Basically, that wasn't consumed. So
purchase or exchange. So, guys.
they give you 2 options here, dollar amount or percentage
or dollar amount or percentage plus this.

(02:22:24):
what do you think that's for
transaction fee brokerage fee. If there's an an extra fee.
that's how you would take and represent it. So if it's going to be dollars plus dollars or percentage plus dollars. If you, if your the business you work for has a fee like that, that's the correct place to represent it. Okay, it's not going to be over here and then down here. It's going to be one of these 2, plus down here. If that's the way that they do business all right. Lease. Why would we have something in there for lease? Because sometimes guys, they get frustrated, they can't find a place, and they decide to rent for a while

(02:22:59):
should you get compensated if they decide to rent and you help them? Well, as it turns out, yep, there you go.
all right.
It says. Right here. It's going to be credited towards
the amount due broker for the purchase. So whatever that is is going to be credited to us.
based upon whatever the seller pays. All right.
So

(02:23:23):
lease option is the other option. That's up there, guys who here's done a lot of lease options.
Exactly.
It's there. If you run into one
where you're going to take and figure out what you want to put in there, guys, where you're going to take and have that conversation
at? Yeah. Oh, man, you guys are paying attention paying that most expensive bill in real estate

(02:23:43):
some some ways to get paid.
Who? Here is a fan of getting paid
this side of the room over here. I don't know. I'm not getting the buy-in over here. They are very much about getting paid over there.
All right. So guys, look at this nice, gigantic resource they have for you down here on Miami's website. All right.

(02:24:04):
We could take and get a commission. Has anybody ever heard of this thing called commission?
I know right, who knew was a thing
we can agree to amount that will be repaid regardless of price. A flat fee.
Now here's the weird thing
on the seller's side.
A commission makes sense, doesn't it?

(02:24:28):
Why?
Because the higher the sale price
the greater the amount of compensation
to the listing agent.
But on the buyer's side.
isn't it kind of counterintuitive?
It is because theoretically we, the buyer wants to pay as little as possible, but the less they pay

(02:24:50):
the less we make, so the buyer might be more inclined to look at one of these other models charge a retainer fee
charge per house shown you could charge like an attorney for billable hours.
Cafeteria plan where you say, hey, look I'm not going to show you houses, but I will do the contract for you whatever they could pick services off the list. That's a way you could go, or you could say, you know what. Not. Only do I like them picking what they want, I want them to be able pick from a bunch of these other ones to go as well.

(02:25:22):
And if your broker, it says, celebrate it's a typo. If the broker, if your broker allows it potentially, you could even come up with a financing option for them to finance the compensation on the back end. Because folks, if the seller's not paying it.
it's going to come out of
cash.
the limited amount of cash that most buyers have in order to purchase. Does that make sense

(02:25:45):
all right? Protection period?
So
if the buyer buys a property
so many days after term termination.
call to the consumer's attention.
call to the consumer's attention by broker. Any other person found by consumer

(02:26:06):
during the term of the agreement. So a fisbo, whatever, wherever
alright consumer's obligation of paid broker-free ceases, though, upon consumer entering into a good faith, exclusive buyer brokerage agreement with another broker after termination date. So after this is over or
it gets terminated.
Okay.

(02:26:27):
to let's take a look at termination. Shall we? Conditional termination?
At consumer's request, broker may agree to continue conditionally terminate the agreement. If the broker, if your broker agrees.
the conditional termination at this agreement consumer might must enter a written agreement, the effect to pay cancellation fee of

(02:26:48):
whatever. What does this look like?
The listing agreement? This is this, this is like the exact same thing in our listing room, so nothing.
nothing new.

Elizabeth Soto | Associate Legal Counsel, MIAMI REALTORS (02:27:00):
Nothing right.

David Garcia (02:27:01):
Broker may void conditional determination
pay the fee stated in the compensation paragraph, less the cancellation fee, if from the early termination, date to the termination a plus the protection period, if applicable, consumer contracts to acquire
any property which, prior to early termination, was found by consumer

(02:27:22):
or call. The consumer's attention by broker or any other person.
What does that mean
if they terminate early
your termination date plus the protection period
to them? Not buying? So this is a question was asked earlier. They can't buy something else that you showed them

(02:27:43):
are brought to their attention without owing you compensation. So if they sign with somebody else.
and want to buy in something that you brought to their attention.
Now, what is the disreputable thing that you might do?
You might send them every property in the universe
to take and try to make this kick in.

(02:28:05):
That's a business decision.
not telling you to do it. I'm not telling you not to do it.
I'm telling you that a cell phone might go off, though.
because this is a very important idea.
dispute resolution, a pink posting note.

(02:28:25):
So if the agreement ends.
if the agreement ends up here.
so brokers ceases. Wait, consumers, obligation to pay broker's fees upon consumer entering a good faith exclusive by a brokerage agreement with another broker after termination. So after after termination, so when this terminates naturally because it's it's over

(02:28:47):
when they enter into a new buyer brokerage agreement. This goes away.
Okay? So the reason why it exists, the way that it does is to keep you from cutting them cutting you out. So I take, and I find her property, and I'm I'm the buyer. Say, hey, look!
I'm going to go cancel this agreement with my agent
so that you and I can work a deal out, and we'll split the savings between us, you know. Right? With that

(02:29:11):
she's right. Look at that. She didn't give me the explosion. I wasn't ready for that.
Just high end. High. 5 action right there.
So this is to keep them from doing that, guys. That's what the conditional termination section is there to protect from. So even if they enter into an agreement after they've terminated.
that still doesn't let them off the hook.

(02:29:33):
Okay, this protects you.
If the consumer contacts, contracts, and acquires any property that you brought to their attention dispute resolution. I think you guys are okay with this. This is a consent to arbitration. We're used to this our assignment periods, or assignment. This allows people the the broker, to assign them brokerage relationship. This is going to identify your brokerage relationship. This particular one. Here is a transaction brokerage agreement.

(02:29:59):
This is one of the things that we're gonna have to think about guys because we have an implied transaction brokerage relationship agreement with everyone.
One of the things we're going to talk about in a second, we get to the listing agreement side is as the listing agent.
What happens is if the buyer approaches me
and doesn't want to sign a bio brokerage agreement with me.

(02:30:19):
How does that work? We'll look at that in a second. Oh, wait! We can't forget. Section 14. Everybody's personal favorite.
Everything is fine until we get
to right here. However, like guys, we thought we were to the signature page last. What could be in the last sentence.
however, consumer agrees that broker may receive separate compensation from owner of the property for services rendered to the owner by broker, for which consumer will not be responsible.

(02:30:52):
So, Josh, I thought you said the limit of the co-brokerage was whatever was disclosed.
We can negotiate whatever the buyer brokerage agreement said.
yes, with
co-brokerch.
This guys is their special caveat they put in there to help you. And this goes against the the guidance that I was given. They actually changed this very recently for you.

(02:31:16):
for the developers
because the developer is not the other broker guys. The compensation that you're talking about before is coming from the other brokerage. This is coming directly from the seller. Okay, notice it says, not from the broker, but from the owner of the property. So you have a developer that's offering you an accelerated amount of compensation.
They can still pay you that because it's not actually Co-brokerage commission, it's an actual benefit directly from the seller.

(02:31:43):
Oh, some people are very happy about that.
Now, guys.
that creates a little bit of moral hazard that has always been in our business, doesn't it?
When that developer offers accelerated compensation to try to get you to put your thumb on the scale for your buyer and make a decision for them over what's in your customer's best interest.

(02:32:06):
Guess what you have
a business decision to make.
I thank you guys. I just put that out there.
Tell you guys to think about it.
Will you do what's in their best interest, always business decision. This is the easy part to explain.
This is where the action happens. This is the signature section. All right guys. So what I'm gonna call, let's talk about what won't happen.

(02:32:30):
They will not have to pay me without knowing it.
Really, the signature lines.
Oh, for completeness. Okay, I get it totally. So those, okay, okay, okay.
There's some very distressed people. They want the full set.

(02:32:50):
Are you good?
Like, if I had to pick the slide that I thought nobody would want a picture of.
All right.
This is some of the important stuff to explain to them upfront what's not going to happen is that you ever have to pay me without knowing it.
You're going to know whether or not that property offers Co-broke Bridge commission.

(02:33:15):
You're going to know it up front
right now. That being said, we could see it, and then we can still go back.
and we can now negotiate on the contract for the seller to offer co-broker sufficient to pay for the amount of brokerage representation fee on your buyer brokerage agreement. If what they're offering is insufficient.

(02:33:37):
I know that before we couldn't do that because of our code of ethics, you're right. As an agent or as a broker. We can't negotiate with the other side to offer more compensation. But now, because we have a buyer brokerage agreement signed.
it is not us negotiating. It is
the buyer that's negotiating for them to pay their real cost

(02:34:01):
to close. Does that make sense?
All right?
I want to tell them if you don't buy unless there's a retainer. If you don't buy.
you don't pay me.
I want them to understand you're not on the hook to pay me. If you decide not to buy.
These are things they could care about.
This agreement will not last till the end of time.

(02:34:24):
Would the buyer potentially care about that?
Yes, I'm going to take and explain this to them up front.
all right.
if I'm no good.
do they have the ability to cancel?
I feel like we just covered this
they could cancel with me totally a thing
that I won't move heaven and earth
to make sure the other side
contributes the full amount of the Co-brokeverage Commission. Now, that last line is a business decision.

(02:34:49):
Will you roll over? What are you going to do? How you're going to represent them?
These are all guys things that are important for the buyer to understand the agreement that they're going to care about. Could I anticipate that they're going to care about this.
Well, if I have the empathy, yes, and I'm gonna try to pre negotiate these things. So let's call it the right thing, guys. I don't typically call it a contract.

(02:35:09):
I don't call it an agreement.
I'll call it paperwork.
Why? Because paperwork is easier to get signed than contracts.
It's totally a thing.
Do I have permission to work with them
without the signed?
No.
so

(02:35:29):
to me it's my permission. Paperwork.
If they ever come in and want to audit me like, why you work with this guy. Here's my. This is where I have permission to work with these guys who here intends to take and use this to defraud customers. If you do, don't raise your hand. By the way.
it's like a totally a bad call.
so does your buyer need to be terrified of this agreement.

(02:35:54):
Does your buyer need to be afraid of the agreement?
No, it's it's not guys. It's like the listing agreement. It's not super scary. If you're trying to do the right thing they shouldn't be scared. So should you make it seem as unscary as you can, because if they're worried about it. They're more worried about than they probably should be. Does that make sense?

(02:36:15):
All right.
guys, if you're on trial for murder.
do you walk in and say, All right. Who's the cheapest lawyer we could find
a line I like is, do you really want the spirit airlines of real estate agents.

(02:36:45):
Delta? All day long over here, Delta. All day long. There's there's only one choice.
What's that?
How did we get on airlines? Because there's a big airplane, the screen, Josh, it's totally your fault.
guys I'm gonna give you. I'm gonna share a line with you that I love very much.

(02:37:06):
If you think it's expensive to hire a good agent. Wait till you see what it costs to hire a bad agent.
If an agent is willing, if the way the agent needs to compete is on price.
What does that say
about the quality of product that you can probably anticipate on market

(02:37:31):
business choice? It's a conversation
that we have
with the seller. And here's the cool thing. If you've done what I've suggested, which is to have a very strong conversation upfront.
You've just juxtaposed what they're going to get with somebody else versus what you bring to the table.
You like that one
just for you. I do these things

(02:37:53):
all right, guys. It's a little bit faster now, quite a bit faster. Actually, let's talk about the listing side.
Did he be ready? This will bring objections from the seller that are misinformed. So
I'm not even going to give you guys the time to take a look at this. Let's just take assume that there's going to be quite a few
Co brokerage has always been what I said it at the beginning. It has always been a seller's contribution to buyers. Closing costs

(02:38:18):
correct.
It is a way for buyers to finance the cost of their representation into their debt, which leaves them money left aside to do more. It's a way to incentivize the most agents possible. Also to show the property right. It offers an incentive without Co. Brokerage that exact same house

(02:38:40):
as at a massive market disadvantage, for fewer buyers can actually afford it.
because it's going to take more cash up front to buy it.
Also, it's more expensive, potentially for a buyer than a nicer house down the street. The house down the street's got an extra bedroom and an extra cargo space, an extra 3 car garage instead of a 2, and I need less cash. Yeah, the mortgage payments higher.

(02:39:04):
But I have enough cash to get into that one. I don't have enough cash to get into this one.
And the other thing is, guys, if they're tapping in to that money
that they have by making them pay a hundred percent of their representation out of cash, it reduces their cash that's left available. And have you ever noticed you ever noticed that they want to take and fix the kitchen?

(02:39:26):
They want to change the windows to impact windows in southeast Florida. I'm amongst my people. I can talk about impact windows. I go to Montana. They're like you're out of your mind. What do you mean? We know impact windows. They want to take and make these upgrades right?
California impact windows is a thing
big deal over here.
All right. Here's the other thing, guys, is the home, not offering co-brokerage a more valuable home.

(02:39:51):
Then the home that is
so I want you to imagine there are 3 homes that closed all closed for 500,000, and our seller is on the market for 500,000, and let's say all 3 homes offered a $10,000 credit
to the buyer

(02:40:12):
in order to pay for prepaids and closing calls. So like commission. But now we're not talking about commission. We're talking about another seller. Contribution, just like Commission is
if
the home that is our seller is selling is not offering. That
is that home more valuable or less valuable?

(02:40:33):
It's less valuable because it's offering 10,000. It has 10,000 less of an incentive.
So what is the appraiser going to do? Well if these 3 are at 500, netting 490 for the seller, what's the appraised value of this home? That's not offering the compensation, going to be the sorry, not the compensation, the

(02:40:54):
the the buyer credit. What's the value of the house?
4 90.
So the seller, thinking
that they're gonna get more money
by not offering. It, does not understand that just like the appraiser always has. Raise your hand. If the appraisers ever called you to take and confirm the details on. On a sale.
Yeah, it's a thing right? And what do they always ask? Was there at least any seller contributions.

(02:41:17):
Why?
Because, if it there are, it reduces how much the net was to the seller which makes the house actually
for sales comparable purposes, purposes less valuable.
The actual asset?
What is the value of a $10,000? Credit?

(02:41:37):
$10,000.
I felt like that. You guys were expecting a trick question. I think
so. Appraisers will ask, and they're going to lower the value of the properties.
not by more than the compensation, just by the amount of the compensation, it's going to say, Hey, look, you didn't offer this credit, everybody else did. Therefore your home is that much less valuable because the seller was always netting less than these other homes. So therefore, your home is not more valuable than theirs.

(02:42:06):
unless it's a cash deal and a cash deal guys.
the appraiser doesn't necessarily get involved. So if it's a cash deal with no appraisal.
this doesn't affect. Does that make sense to everybody
cool? Cool?
So what am I saying?
I feel like that's pretty concise.
I'm not. Gonna so it says, stupid guys are bad agents

(02:42:27):
would do this, and I'm not looking to discourage any business model. I'm just saying the agent is putting the seller in a position where it's going to be harder to sell their home
right? It's putting in a disinvade disadvantage in market. The agent is literally showing you
how they will hurt the seller
just to get the listening.

(02:42:49):
We've never seen that before agents that intentionally overpric.
Just to get a listing on the books.
Things like that. It's a business model guys not discouraging it.
Oh.
you mean, oh, my God, that's very controversial! But you mean to tell me that on a listing
the seller might want more for the house than the market will pay.

(02:43:16):
I have a bunch of classes on that. I
I have to stop me right now, because I so want to tell you like 50 things on that
different conversation, though. So.
but I'm with you all right.
all right. It's going to allow the buyer to pay more for the house guys, because here's the thing they have most have a limited amount of cash.

(02:43:38):
and if a big chunk of that cache is now being used for representation.
the amount they have left that will allow them to qualify for mortgages, and how much they can spend will be reduced.
It's not every buyer. But how many buyers do I want on this house that I'm trying to sell
as many as I can get.
because that provides negotiating leverage for me as the age, and I can go show my seller

(02:44:01):
just how good I am at what I do. Oh, when I can play people off against each other.
it's good stuff, all right. It makes the home less desirable to buyers, and it gives you a competitive advantage if you're the one offering it, and nobody else is, it gives you a competitive advantage in that market. Your home now is easier for people to buy.

(02:44:21):
and in, Mr. And Mrs. Seller, it's not going to hurt your neck except on a cash deal, because the appraiser is going to take and ding you. So these are the things I'd be talking to the seller about
alright.
Even commercial deals almost always, even though they were never required to. They must always offer co-properage.
And we're the reason why I'm bringing that up, guys, if they're doing it, they had to be doing it for a reason

(02:44:44):
after all these years. Why do commercial deals still offer it? Because it's in the seller's best interest to do it right? So that would be one more bullet in the gun to bring up with a seller. That's being difficult on this point.
Okay.
what about doing both sides?
If you're the listing agent and you want to receive compensation, and you know your seller is offering co-broadage compensation, guess what you need in order to get the buyer's side of that co-broke bridge compensation.

(02:45:12):
You need to sign by a brokerage agreement.
Now, what about an open house. What do we do on an open house? How do we show the property guys? You can show the property without a buyer brokerage agreement as a service you're providing for the seller.
So, and my role as the listing agent, I am showing these buyers

(02:45:32):
this house for my seller.
What if?
What if
what if
the buyer
doesn't want to sign something with you?
Well, you're going to face another business decision.

(02:45:52):
Well.
here's the thing
you are supposed to submit
all offers.
So maybe you don't have a choice
business decision. But one of the things that I would very seriously take into consideration is making sure to represent to them
what you will and won't be doing for them.
It's a very important idea that we need to get our head wrapped around. So this is where, if you're not going to represent them at all, if that's the choice that you make, you want to have something that you give them something like the no brokerage agreement form, because what's the the expectation is

(02:46:26):
transaction brokerage.
Right? If you're if they're specifically saying that I'm not going to pay you, and you sit there in your head and say, well, you know what slavery was outlawed in the United States, and like the 18 sixties. I don't have to work for anybody for free.
And you're not going to take and provide any services that you want to take as guys just like an attorney does.

(02:46:46):
They're gonna take and give you. If they're not working for you, they're gonna give you the 4. And that says, Hey, look, I'm not doing any of this for you, and I wanna make sure that we are clear that I'm not doing any of this for you.
We want to be in the same position
to take and protect yourself. Go point forward so that the customer says, Oh, well, they're a real estate agent. So I thought they were whatever. Okay.
So just keep it clear. Should the buyer have a choice to work with who they want to guys

(02:47:10):
absolutely, should they be able to negotiate the price they're going to pay for services
totally.
Would you want to be told what to? Who to work with, or what to pay?
No, all right. So none of this is a big thing in practice. Open houses we talked about, and the buyer approaches you directly.
We now know. What do we need. If I want to take and have access to the Co-brokeage commission that I know my seller is offering.

(02:47:34):
I'm going to need a Bba to be signed.
We okay.
making sense
cool.
We already talked about this making sure that you've thought this through. And you have a policy. Where are policies figured out.
You guys were way better the last time

(02:47:55):
you're getting worse with time. I'm getting worried about you. It's going to be happening in our broker's office.
I understand you're 3 h in, understand? I started at 9 30 guys. So it's a long day for all of us. All right, last little bit working with agents. You're gonna have to ask up front.
The phone call that isn't available is going to be followed by, are you offering co-broker's compensation? How much is it?

(02:48:17):
There's forms that you have. There is a form for that. Oh, yay! Another form, all right.
There is a buyer broker, or there's a seller's broker or a buyer's broker compensation form. This is a form
that you are going to take and submit to the other side where they're going to verify this. Typically guys, you're not going to take and send this on every property you show.

(02:48:38):
That would be a bit of a pain in the neck
business decision you could
alright.
What you're going to do with this usually is, if you're going to put an offer in. This is where you're going to secure the compensation that they've already taken, and let you know
that you can expect to get. Are we okay with that is making sense.

(02:49:05):
This is the buyer. This is the seller's broker to buyer's broker compensation form. There is also a seller
to buyers, broker compensation form as well. So some compensation, if it's a physical. For for instance.
seller to buyers, broker compensation form. This is the form that I would get the
this boat to sign with me.

(02:49:25):
are we? Are we? Okay, ish.
Josh? I'm ready to explode with questions. All right.
The cool thing is, we can now, with our buyer brokerage agreement form, signed guys, as I mentioned to you before, we are allowed to negotiate
for the buyer on the agreement that the amount of compensation they've offered us

(02:49:46):
be paid as one of the terms of the agreement. In other words, I needed a seller to give us 5 days for inspection. Just one more term, the agreement they could scratch out, and we can counter and go back and forth. We can call each other names. All the fun stuff we normally do.
Nothing different. We okay.
awesome.
Hi.

(02:50:06):
be aware, compensation, if any, is fully negotiable and not set by law.
All right, think carefully about what you're charging.
because you're stuck with whatever you wrote in the agreement guys. The only exception to that is that piece where the seller.
so not your customer.

(02:50:26):
agrees to offer it extra the next time that happens with a normal seller. That's not a developer.
They're like, you know, what, Josh, I really like you. Here's an extra 10 grand for selling my house
from my non customer.
Yeah, it doesn't happen, guys. So this is specifically for your buyer brokerage agreement. The amount you agreed to

(02:50:47):
is it? If you decide you're gonna do your business. And you're gonna put, you know, a super low amount, thinking that now, whatever the seller offers, you're gonna get
the way it works is the limitation is the amount that you agree to in that agreement.
Okay, so understand, it's fully negotiable. And guys, you are totally allowed to work for free if you want to.

(02:51:08):
All right, here's the good news.
Go ahead.
No, no, I put it back just for you.
total and for them, you and them all right.
The good news is
the number of in the agents of agents in this industry is going to decrease because the number of agents guys who completely zoned out

(02:51:32):
when I started talking about making the case, for you
are going to be the ones that have a really hard time
unless you're insanely good looking.
which is not a problem I've ever suffered from.
Well, I just learned, you know. You gotta trade in what you got for me. I'm gonna have to make a case. I guess. Alright.
the number of agents is going to. It's the herd's going to thin a little bit guys.

(02:51:54):
The number of transactions isn't going anywhere. In fact, if these rates soften up.
watch the number of transactions start to go up.
What does that mean
more transactions, fewer malice to fade
alright.
more deals spreading between fewer agents.

(02:52:15):
The agents that figure this out will make money.
and they'll make more money. This is going to be an opportunity, guys.
if you're comfortable with that, sit down in the room, eyeball the eyeball with that customer and say, let me show you everything I've brought to the table to make sure
that when you work with me I reward you for that decision in every phase of this.

(02:52:38):
That's where I think the real case is all right.
You need to commit to learn guys.
these objectives. The objectives are going to come in hot and heavy they are. They're going to hit you with them. I told you guys, as soon as I heard this was coming down I wrote a whole book on it. I'm not going to lie. I totally used a little. AI help!
No, I. And here's the. This is the right way, I think, to use AI. When it comes to this kind of stuff. I went to AI, and I said, Give me the best objections

(02:53:05):
to signing a buyer a brokerage agreement.
and then I took every one of them. I wrote because I'd heard them all I wrote down on how they would be expressed.
and what you say to get around them. All right.
I want you guys anticipating this stuff, don't wait for them to bring it up, because
that's how you lose business. That's how you you lose a deal you otherwise could have closed. If you just

(02:53:26):
thought ahead, guys, I don't want to see you guys. I want the agents not in here to be the ones that leave
the industry. I want you guys to be the ones that are reaping the benefit
of a thinned-out herd.
That's what I want for you. And that's why I put this together.
I'll thank you guys all right.
So we're not going to talk about. That's the mastermind stuff. Here you go!

(02:53:47):
There it is! Her hand was by far the fat. There was a sound beer barrier that was broken as you got your hand up.
Is there a list on your phone? You're literally looking at right now?
Crap! All right, let's go.

(02:54:09):
It is due at time of so an execution. Now you're gonna ask, when do you get paid?
At signing?
At the signing of the agreement? The execution of the agreement is when it's signed

(02:54:33):
so at the beginning, so like an attorney.
I'm going to have a consultation with you
if we're going to go any further.
So I'm going to take you out for coffee is what it's saying. If you want to start dating.
I use a lot of dating analogies. I'm sorry.
Alright. I'm gonna get her next one. So just so I can start working. Yes.

(02:55:00):
say that again
by mutual consent.
All right. So if you can get them that
you're stuck, you're you're right. If I go to my buyer and say, Hey, look! They're offering extra.
Would you allow me to get it? And they say, Yes, we can modify the agreements.

(02:55:20):
The modification guys, modification of any agreement by mutual consent is always allowed. I'm coming to her, and then we'll circle back. Yes.
Whoa! Whoa! Whoa! Whoa! Whoa!
No numbers! No!

(02:55:43):
All right, rephrase it. I'm gonna come to you. Who we got anything over here. What do you got?
Sort of? Said again.

(02:56:06):
then the differential will be the responsibility of the buyer.
Right?

(02:56:27):
So if this, if the seller has agreed to the Co. Brokerage amount on their listing agreement that is going to be disclosed to you by the listing agent.
If.
if if you're saying it's like later on, the transaction, we have to contribute to get the deal done like we sometimes maybe have to do guys by mutual consent. We can do anything.

(02:56:54):
You you can't put a range in your buyer brokerage agreement, the amount that you have there is the amount that you have there. You can always say, you know what guys they're offering less. I'll take less on this deal.
But you're gonna you're gonna but you you can absolutely, with your brokers, consent. You can modify absolutely how many you dear.

(02:57:18):
a co-brokerage commission.
Then you will need a buyer brokerage agreement signed by that buyer
in order to get
here's here's the thing
you would be do the listing compensation side.
but the co-broke side you would not have access to, because that buyer has the right

(02:57:42):
to know how much they're paying you for your service, and to negotiate that amount.
The what?

(02:58:03):
So
the seller's contribution. So what? What was the last part of what you said?
The person that the person that comes to the open house doesn't have to sign anything
right? Because you're you're functioning as an employee of the seller. But if they're if they they're interested, and they want to work directly with you.

(02:58:24):
If you, as an agent, are comfortable, if your business model says
I don't need any extra compensation, I will just go with the listing portion. I don't need the buyers. Bro, you have the right to do that.
You could potentially, or you could sign the buyer brokerage agreement. And you could 10 then have access to that. Yes.

(02:58:47):
Oh, okay, I'm sorry. Yeah, no, it's it's not live. So she's saying basically, if
if they approach you, and they don't sign a via brokerage agreement, you're basically losing access as the agent. If you agree to work that way which you're allowed to. It's negotiation.
You would lose access to the Co-brokerage commission that that seller was offering, because that buyer is basically unrepresented.

(02:59:15):
What it's not if you want to work for free
totally.
No, you're allowed to, guys. I'm not saying it's
I don't know about that.
it. The retainer is not mandatory. That is a business decision as well. That is a conversation for you and your
broker

(02:59:38):
totally, possibly a thing. What do you have? So she was asking about? I'm I'm gonna try to give you guys the mic. Let me see if I can do this.
Let's let's do it this way.
It's gonna require a lot of walking.
What do you got? How can I protect myself if I get a virus agreement with a person? And then they want to buy to an Llc. Or you know another company that, because the protection period protects you from

(03:00:06):
it requires you to. It requires them to to behave in good faith, so them trying to circumvent it by buying it in an and an entity
would not be behaving in good faith.
All right, coming to you coming to you?
The Yellow Jacket wins.
except I don't know you are. You are like isolated on an island here.

(03:00:30):
Yesterday rock the market?
No, no, because
on a search
there are

(03:00:50):
okay.
I do not have guidance for you on that. If there's seller contribution, if they have found that as a way to potentially
workaround.
Yeah, yeah, yeah. Yeah, no. Totally a thing, because it's not specific to our compensation. It could be a seller contribution. I'm hitting here, then there, and then back to you, Carlos.

(03:01:14):
So, as a listing agent, I don't need to police the buyer's agent and ask them. Do you have an agreement I am like
I'm not going to show you the house, or whatever it is. Has a buyer agent ever asked you if you have a listing agreement with your seller.
Same deal
coming to you.
Yes. I was wondering how many buyers agreement can a buyer sign? Is there a limit?

(03:01:38):
Well, if they sign with an agent in Orlando because they're looking in Orlando. They sign one with somebody that's in date and knows only working in date. I mean, they can sign as many as they want, but if they're overlapping.
if they're overlapping, they could be due to pay compensation to multiple agents.
When does the seller pay the compensation?

(03:01:59):
When does the seller pay the compensation?
There's several issues for a loan you could do up to a 3 does not account. It does not count against that. The seller's contribution has been specifically excluded from all the major lenders from the credit that they have so like. Fha! You, Max, out at 6.
The cup

(03:02:22):
conventional. It's 3 fha is usually 6. Maybe it's change. But whatever whatever the maximum amount of contribution is the Co brokerage compensation, the buyer paying the compensation does not count against that from the seller. It is not
alright. Alright! Hang on! I'm moving. I'm moving around sorry for asking again, but he he did sign. The buyer did sign with me to show 10 properties.

(03:02:48):
Can he go to see other properties with other agents? If you haven't brought it, if you haven't brought it to their attention.
if you haven't sent them the properties or anything like that. Yes, they can see another with another agent.
It's potentially a problem. Alright. So it's properties that you've called to their attention. It's that's where your responsibilities. I have a scarf in the back I've already got. I'll I'll catch you on the the flip side.

(03:03:13):
Yeah, and bum BA bum
badam bump, banner. I'm coming up up. She had the scarf. I'm I'm going for the scarf.
a fan of scarves.
What do you got?
What do we do with our listings now that we have, you know. And and an agreement of 6% 3, 3. What do we do with those listings?

(03:03:35):
What we do is what we do is all right. Yeah, guys, the question is a good one.
We have a listing.
What do we do?
Nothing.
Nothing's changed.
It's just not in the Mls.
You have a seller that's offering and compensation the other side, which is a seller's contribution.

(03:03:55):
They're going to contact you and say, Hey, is your seller offering this particular contribution? You're going to say, as it turns out, yes, they are.
That's it.
Fantastic. If the sell. So, Mr. And Mrs. Seller, fantastic, you want to make your home less desirable and less viable by buyers. Sure, if you want to make it harder to sell and fewer people able to buy it, you're totally able to do that

(03:04:26):
co-brokerage hasn't gone away.
We're gonna do the exact
same.
Thank you. We're going to negotiate as we always have. Whatever your policy, whatever your broker does.
That's what you're going to do.
Nothing different.

(03:04:50):
Real quick, says
Center.
That's net that's never been in the Mls. All you're gonna have right now. And that's what I understand. And if what they're saying to me is correct, there's gonna no, there's never been a place where in the Mls. It's ever disclosed. How much the listing side was receiving
that has never been in the Mls.
Yes, those are for the 3. Those 3 different boxes are for the 3 different types of brokerage that exists.

(03:05:14):
and that is going away.
Now they're saying that there may be a box for seller contribution. That's it can be. Yes, no box.
That's that, and that's going to be a seller's concessions. It's not going to be specific to comp to agent compensation.
I'm moving on.
I think her hand was up, and then I'm coming to you.
Come, see me at the end, and I'll okay.

(03:05:34):
I almost forgot my question. I'm sorry, so we need to know the sellers. If the seller offers co-broker's compensation before having the buyer sign the buyer's procurement. No, we signed the Buyer brokerage agreement before we show property one.
We don't show them a property until we have that agreement signed. That is going to say I am going to work for you. This is the amount of compensation that I'm due. Whatever the seller does

(03:05:59):
is going to take an effect. How much of that money is coming from them, and how much of that money is coming from the seller.
Correct. But that's before we go to show a property before we show a property. We're getting the agreement signed. All right. Now, I'm going to look at properties for you and help you to try to find the properties.
Okay, this property right here we called. They're offering this much compensation, which is this much less than you've agreed to pay me. Do you want to see it, anyway? And we can try to negotiate with them, to pay more? Or do you want to not see it? Or what do you want to do? It is going to be the buyer's choice, based upon all the information that we provide to them.

(03:06:40):
Timeline as you meet them.
correct. So the compensation is not going to be based upon what the seller's offering
it's going to be. The compensation is going to be based upon whatever you're going to work for them for.
That's going to be agreed to a negotiated beforehand.
All right.

(03:07:02):
She's she's asking. She's asking. Her question was.
do we need to find out what they're offering before we do? The buyer brokerage agreement. And the answer is, no, we're agreeing ahead of time how much we're going to work for.
And then, regardless of what they're offering. That's what we're working for.

(03:07:24):
Yeah, buy a brokerage agreement.
Yep, yep.
okay. My question is regarding the compensation offered by the co-brokeer. So that compensation is higher that
what I agreed on my initial buyer agreement
that my understanding is that that
extra amount to go back

(03:07:45):
to the buyer. But you stated that that should go back to the seller.
It can go, guys, it's going to be.
It's going to be a question of
it can go to the buyer. It can potentially go back to the seller. It's going to depend upon
how the agreement is is sorted out all right. So if it's
the seller is offering a co-brokerage compensation. And the agents, the buyer's compensation is this, if the buyer is disclosed that the buyer's agent is disclosed that they know that hey? They didn't need that full or not. Yes, what's your question

(03:08:17):
on the 1st date? Would you do percentage
me? That's a conversation I can't have with you in this room because it's a mixed bag.
That's a business decision. That's a conversation with your broker. Absolutely. I got hands over here, did I miss hands over here. Alright. I got sent over here. She sent me over here. So I I'm just I'm just listening to what I was told.

(03:08:37):
Wow.
all right, guys, this is an impressive log jam you had created here.
Wow, wow, wow, yeah.
yeah, it is a little. It's like, Tetris.
all right.
So I just want to clarify. You said that if I'm the listing agent
and I have X amount, I negotiated X amount of commission, and then the the compensation.

(03:09:04):
and the the buyer comes to me. But he'd also want to sign the commission agreement. The buyer's agreement then. I have to present all the offers.
Okay? And then, so that
whatever X amount goes back to the seller
again, there's no proof it's being paid

(03:09:27):
you're and and whether or not you prepare. The offer is a business decision for you.
Now, having the Bro. A buyer, brokers agreement, something that is an obligation for all realtors, or you so have it signed, or you don't, or you work for free if you want. Can a follow realtor say I'm not going to have them sign it
and us. We have to sign it that that takes leverage from us

(03:09:52):
as a realtor.
You are.
It is an obligation for all realtors to not show property without having an agreement sign that stipulates compensation upfront absolutely. So we're going to need to take and do that
upfront. That being said, non non
brokers do run the risk

(03:10:15):
of now being named in that lawsuit
and being liable, because now the behavior they're engaging in has already been deemed to be antitrust behavior. All right. There's already a court case saying that behaving in that manner
is anti-trust
does make sense.

(03:10:35):
Well, here's the thing I would say to a customer if it was me. Look, any agent that's going to take and show this to you without this
is behaving in a way that the court has already said
is illegal
is against the law. So that is the conversation that I would have with them with my buyer who's on the fence with that. But frankly, I find, guys

(03:10:57):
the stronger my conversation is upfront. What I spent so much time with you guys upfront trying to help with the stronger that is, the less of those objections that I tend to hear one of the big ones that I do. When I train agents guys.
my train agents were the big objections that I hear from new agents
is people ask them all the time. How long have you been doing this?

(03:11:19):
Now?
When was the last time you guys got asked that question
like, nobody ever asked me that question anymore. Why? Because the way I conduct myself negotiates that off the table. Does that make sense.
This is what I'm suggesting to you guys as strongly as I can. I gave you a class on what the rules are. I also tried to give you a call class. Looking ahead

(03:11:40):
to what the best steps to take are to negotiate as much of this pushback that we're worried about off the table. I want them to say, Okay, yeah, sure, no problem. What do you mean to sign?
That's what I want the ending of that to be, if I can, so I frankly feel to build a stronger case. A lot of these are going to go away.
His hand has been up.

(03:12:03):
You're handling a commercial deal.
Do you need commercial was not part of it, and leasing is not part of it is residential purchasing. You're okay. You're the commercial guy you. You just sat through 3 h or something. You didn't need it absolutely. I will. I will let me take him, Jascon.
about the showing instructions because they're not gonna be no more. Go and show them right.

(03:12:26):
I don't know. I've heard no guidance that the showing instructions are going to change.
If you have a buyer.
Actually, you are not supposed to go without conf the other part, the sellers, agents confirming that you have to buy a broken agreement. No, no, no!

(03:12:47):
As a listing agent, I don't need to confirm anything. If you're doing the wrong thing. How is that my problem?
I don't care. The worst case scenario is you don't get paid. That doesn't affect me or the seller.
I'm here to look out for the seller. Yes, I love the sparkles. Yeah. Oh, okay, thank you. So I have 2 questions. One is, does this a plea apply to our rentals?

(03:13:13):
Rentals are not part of the settlement? Doesn't commercial rentals, not part of the settlement. This is residential real estate, only
that being said, guys getting something signed with everybody. Make sure that you get paid and your your 8, your
tenants ghosting on you
potentially gets cut back as well. So that's a thought to maybe weigh in on that question.

(03:13:37):
Question. Number 2. So I'm working with a buyer that may end buying new construction. Right? And I put, I put there 3%. Let's say, wait.
Excellent. I'm do make an example X amount right? Then, if developer pays 7, 7 because of the bottom line.

(03:13:57):
what? XX, okay. XX, then will I will. I
would I be able to get compensated that rest.
So you saw section 14,
that last section there is the seller. So with the developer, it's the seller directly compensating the buyer's agent an additional amount.

(03:14:22):
That is what's specifically excluded. They did that guys for you
to take and get the developer start. Yeah, no, I'm I'm no down here. Everybody is very excited about that.
I don't know whether they're going to pull the the lease compensation off or not. I mean? If I was them, you probably would, just because, like, do you really want to? They already told you the one thing is no good. Do you really want to file. The other thing is no good.

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