Real Estate Fight Club

Episode 09: EXTRA ROUNDS - What Are the Top Reasons Agents Fail?

In Episode 09 BONUS EPISODE, join us as real estate heavyweights have a chance to go into the extra rounds to discuss the top reasons agents fail. If you are interested in becoming a featured heavyweight, please reach out to us through the Toe2Toe Podcast Facebook page.

Episode 09: What Are the Top Reasons Agents Fail?

In Episode 9 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over what they each think are top reasons agents fail. Learn Jenn’s ideas about why the industry needs to increase its barrier to entry, and hear why Monica thinks many agents are looking at everything all wrong. This episode will help you identify roadblocks to your success to ensure that you don’t fall into common pitfalls in the industry. 

 

Episode Highlights: 

• What are the two biggest reasons agents fail?
• On the internet you'll often see the stat that 75-85% of agents will get out of the business within their first five years.
• Jenn thinks the biggest reason people fail is because there’s not a training program in real estate.
• We need an apprentice program where you cannot be an agent until you understand business.
• This could look like spending 2-3 years under a high producing agent where prospective agents get training and in exchange they have to share part of their commission on the leads that they find.
• Monica wonders how that would work in terms of finding top lead agents willing to participate in such a program.
• Jenn argues that what the industry has been doing isn’t working.
• Monica asks how much the local MLS might shrink with new barriers to entry.
• Jenn imagines it would be about 1-5% its current size.
• As a profession they need to learn how to run a business, how to do math, and how to sell.
• The other reason Jenn thinks many people fail is because they don’t start on time.
• When you have a job you have to get there on time because it sets the tone for the rest of the day. Start at the same time every day.
• When you wake up to your alarm and don't press snooze, don't you always feel better? 
• Monica mentions a popular video about a military leader who encouraged graduates to make their beds first thing in the morning.
• Monica believes that real estate agents have the wrong notion of exactly what it is they're doing in real estate as a realtor.
• The language of real estate is so inward-facing and it sets a really negative mindset.
• Monica describes the difference between a transactional mindset and a relational mindset.
• Jenn thinks the apprenticeship program could address some of this mindset problem.
• The other reason Monica thinks people fail is because they’re not 100% attached to the reason they want to succeed.
• In any goal, if you don't have emotional clarity on what your business will do for your family, your future, and your life, then every single day when you don't feel like doing it, you don't.
• Many people don’t care enough and they are too comfortable.
• Jenn and Monica discuss how they perform when something absolutely has to happen.
• When surveyed, many respondents said agents fail because of fear, especially fear of success.
• Another reason commonly cited in the survey is that people fail because they don’t have a plan.
• Jenn strongly feels an apprentice program would help the industry.
• Monica believes people fail in this business because they’re looking at it wrong.
• Most of the time people are buying or selling a home because something else happened. We are lucky enough to be able to help them with their transition.
• They want to do business with you because you know what you're doing and you actually care about them.

3 Key Points:

1. Many agents fail because there’s no real training program in real estate.
2. Many agents fail because they have the wrong mindset and focus more on transactions than relationships.
3. Show up as a human and fly your real estate flag.

Resources Mentioned:

• Jenn Murtland LinkedIn | Facebook
• Monica Weakley LinkedIn | Facebook
• Toe 2 Toe Podcast Facebook Page
• Navy SEAL encourages graduates to make their beds (video)

Episode 08: Should You Price Your Listing at a Flat, Even Number?

In Episode 8 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over whether realtors should price their listings at a flat, even number. Learn Jenn’s ideas about the psychology behind pricing with nines and hear why Monica insists on using a flat, even number. This episode will help you rethink your pricing strategy for your next listing.

 

Episode Highlights: 

• When talking about pricing strategies, do you go with the 299,900 or do you go with the 300,000 even? Is the hundred dollar difference important?
• Monica believes firmly in using the flat number.
• What we know when we study search engines is that most of them have searches that start and stop on even numbers. 
• When you price your house on that number, on 400 even, you're actually doubling your exposure for the house.
• Monica will price it where scientifically, and digitally, it makes the most sense to get the most eyes on it.
• At 399,900 buyers will miss the house in search results and it could have been perfect for them.
• Jenn argues that McDonald’s sells everything on the 99 mark. There must be something there.
• She’s sure there’s science around people thinking they’re getting a deal at the 99 mark.
• Jenn argues that she’s priced at a flat number before and that when they reduced it to the 9, they received higher traffic. But she’s also seen it go the other way.
• If you’ve got the house priced inaccurately, it doesn’t matter.
• Buyer’s perceived value is price + condition. 
• If within 10-12 showings you haven’t received an offer, you’ve probably priced it too high.
• It’s more about actually getting the price right.
• Jenn says that in their market, if you price a house right you'll get around 95-97% of the asking price. If priced wrong you'll only get 88%.
• Jenn and Monica roleplay a pricing discussion with a seller who wants to overprice their home.
• Jenn would tell them that she's aware that they're saying you can always come down and it's more difficult to come up.
• Monica says she tells them she wants to bring them something to say no to.
• Jenn would rather say no to an offer than not have anyone to work with.
• Price the home where the buyer will see it as a great value.
• Jenn would explain how the seller can get more money for their home if it is priced accurately. 
• Monica identifies that agents don't have the confidence to have these conversations with their clients. 
• It's fear that keeps you from being honest. That's not fair to your clients.
• When it’s not right, just walk away.
• In the survey Jenn and Monica conducted, 85% of realtors said they choose flat numbers for home prices.
• Monica reiterates the importance of getting people to see the listing in search results.
• Jenn still feels people have a psychological response to the 99 mark.

3 Key Points:

1. Pricing your client’s home on a flat number increases its likelihood to show up in online search results.
2. Pricing with nines may have a psychological effect.
3. The most important thing in pricing strategy is to price the home accurately. 

Resources Mentioned:

• Jenn Murtland LinkedIn | Facebook
• Monica Weakley LinkedIn | Facebook
• Toe 2 Toe Podcast Facebook Page

Episode 07: Should Realtors Stock up on Designations?

In Episode 7 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over whether realtors should stock up on designations. Learn Jenn’s alternative vision for how to learn what you need to know to run a successful real estate business and hear Monica’s advice about how to use your time in a way that will best serve you. This episode will help you ask the right questions before signing up for another course.

 

Episode Highlights: 

• Should realtors stock up on designations?
• Jenn doesn’t like it. She thinks some realtors stock up on designations instead of doing work.
• Jenn has never lost a deal because she didn’t have a designation.
• We learn that Jenn has an MBA.
• Our hosts discuss the Certified Residential Specialist designation.
• Monica encourages you to ask yourself why you’re seeking a designation.
• She feels that if you are interested in a specific skill set or marketing approach, then fine, go for it.
• Monica feels that homeowners don’t really care about extra designations.
• Jenn feels realtors would be better off taking business classes or getting an MBA.
• Get into a class that actually teaches sales skills and selling scripts.
• Monica feels that most agents don’t have a plan for what they want to do with designations.
• Jenn published an article on an apprenticeship program for realtors.
• Jenn feels you’d be better off learning how to run a business.
• Could you be using your time in a better way?
• Realtors polled on this question were split 50/50.
• One realtor expressed that receiving designations helped her become a better realtor in her first three years on the job.
• Another realtor said that the general public does not care about designations.
• Monica gives designations a soft no.
• She asks you not to proceed without analyzing why you want the designation.
• Don’t hide in the classroom or behind the computer. Get out there and sell.
• Jenn is much more aligned with doing training before practicing real estate. Take a business course or a sales course.
• Another alternative to obtaining a designation is to hire a coach for a short period.

3 Key Points:

1. Before acquiring a designation, ask yourself why you’re doing it and have a plan.
2. Consider business classes or an apprenticeship as an alternative to receiving a designation. 
3. The general public likely does not care about the alphabet soup after your name.

Resources Mentioned:

• Jenn Murtland LinkedIn | Facebook
• Monica Weakley LinkedIn | Facebook
• Toe 2 Toe Podcast Facebook Page
• Why Realtors Need a Legit Apprentice Program (article)

Episode 06: When is the Best Time to Ask Your Clients for a Referral?

In Episode 6 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over when to ask your clients for a referral. Learn Monica’s smart system for making commitments that will earn referrals and hear how Jenn leverages excitement. This episode will help you set your standards on when to ask for client referrals that will help you build your business.

 

Episode Highlights: 

• When is the best time to ask your clients for a referral?
• Monica thinks you should ask for a referral when you’re establishing your expectations for the relationship.
• She makes three commitments in terms of service and asks clients to commit to referring business to her if she meets those commitments.
• Check in with your clients throughout the process about the promises you made them.
• You get their agreement to offer a referral upfront.
• Jenn asks what to do if you know they’re upset during an update.
• Monica suggests approaching problems directly.
• Making things right can only improve your credibility.
• Monica’s expectation is that her clients will send her referrals and she will do all she can to earn them.
• Jenn feels that the best time to ask for referrals is when clients are excited.
• Generally this is when they sign a listing agreement or a buyer’s agreement.
• Jenn prefers talking to people she doesn’t know.
• Her referral rate is 40%, but it could improve if she became more direct about asking for referrals and following up on that request.
• Jenn also consistently asks for referrals at the end of the transaction.
• She lets clients know that she needs them to replace themselves.
• Checking in about referrals could become a part of every update call.
• Monica reminds us that we are business owners that need to cultivate new business.
• Ask your clients if they would feel comfortable recommending you if they heard someone talking about real estate.
• In today’s poll, many agents responded that they ask for a referral somewhere in the middle of the process.
• Lauren Taylor said "I ask at the superhero moment. There's always a moment when you are viewed as a superhero." That's what she goes in for the referral.
• Monica reminds us that a real estate transaction involves a mutually beneficial relationship.
• Deliver results and then ask for a referral.
• Find language that matches your personality and don’t be afraid.

 

3 Key Points:

1. One good time to ask for a referral is when you outline expectations with clients at the beginning of your relationship. 
2. Another good time to ask for a referral is when you know the client is excited.
3. Meet your clients’ expectations throughout the process and then don’t be afraid to ask for their referral. 

 

Resources Mentioned:

• Jenn Murtland LinkedIn | Facebook
• Monica Weakley LinkedIn | Facebook
• Toe 2 Toe Podcast Facebook Page