What’s More Important? Improving the Sales Process or Recruiting More New Agents?

The question that needs to be asked of every agent of their association is why are there so many agents? What’s more important, realtors focus on improving the sales process before its taken from us or recruiting more new agents?

Is the goal to keep the requirements and fees so low that everyone can be a real estate agent? If we keep the status quo, then at this pace there will soon be 2 million real estate agents, while there are not even 6 million homes sold each year.  As I watch the value and reputation of realtors continue to fall, my hope is we will actually “raise the bar” and decide to put the consumer first, which is improving the sales process and customer experience in line with the technology available today versus staying agent-centric.  Gosh, even if an agent sells 3 houses each year, it is questionable how good that level of experience can be? Let’s take a look…

The market or economy and the people in the world control how many home sales there are and this number remains relatively flat versus the agent population count, which I am counting on to improve the experience!

In my article written for Inman titled “Why Some Agents Hate the Team Model,” I was quoted saying:

“Home sales grew by 5 percent from 2013 to 2018, yet agent count increased by 30 percent during the same time period, according to a report from NAR. “

What Inman chose not to publish were the graphs which took away the impact. In today’s society, the impact is even greater due to the amount of cell phone internet usage that has changed society to be more affected by pictures or videos, versus the article. Let’s look at the charts from NAR Monthly Membership Report that demonstrate the severe climb in agent count over the past five years versus previous ten. The challenge to the population is a contradiction to the amount of homes sold, that is clear when seen side by side.

First, here is the Historic Report:

If the amount of homes sales were growing, more agents would be less impactful on the customer experience, except it’s barely ticking up so this is increasing the competition between those trying to help buyers and sellers, and adding to the empty promises that may occur due to more headbutting to win.  Unfortunately, the Agent Centric focus put pressure on the recruiting process making it juiced as brokers and teams have to pitch sunshine when recruiting instead of discussing the outlandish failure rate of 87% of new agents entering the business that the industry produces. It is clear we should be focusing on improving the home selling process like Zillow or Opendoor or Quicken, versus trying to identify more agents to start new. Check out the lack of increasing home sales over the past 7 years.

 

Here are the home sales from Trading Economics:

The point I want to emphasize is – why do we not focus on improving the process vs recruiting more agents?  Technology has advanced massively in showing homes. Opendoor and Zillow have demonstrated this with their focus on improving the pre-process by producing ready, willing buyers in the PA4 and flex model. Quicken has created a one-click mortgage to simplify the lending.  Why are our brokers not looking to improve the sales process?  We should be seeing more advancement from the major brokerage brands to advance the process. Except when an icon like Gary Keller improves the process, he is clearly focused on the agent, not the consumer which is where I think he is open to losing his leadership position as the world turns.  I think we should be focused on expertise and improving the process. I’m not saying we should not have new agents, there just should be better-required training. Expertise comes from doing something 10,000 times and our industry is creating the opposite.

Here is the chart overlapping:

The Agent Centric Model is set to ruin the status of realtors if we continue on this same path.  The Agent Centric model puts pressure on the system to not punish those, in fear or affecting the brand, instead of a focus on the client and upholding customer satisfaction and improving the process. The first crack has been made as customer satisfaction reviews were launched by Zillow, not the legacy brokerage brands.

I believe a renewed focus on the customer is the path forward.  We can make it a requirement of every broker to have customer satisfaction surveys and reviews with every transaction posted online, kind of like Yelp for every transaction.  This aligns the industry with the consumers and begins to transform the process. This would put the focus on training. Due to the heavy constant influx of new agents, brokers are forced to focus on risk reduction, not client service. Therefore, do we want the past average performers to teach the new? For goodness sake, the world has changed.  It is clear 99% of realtors do it the same way, but there is a better way to do it. If the industry can pivot, the best could train the rest who care to perform real estate at a higher level, who are best at serving the client.  The right compensation would bring this about. The training would be fee based and fund the system. Then agent population could provide unforgettable service along with improving the home selling process. Training actually focused on what the agents need to provide, superior client service, versus currently focused on the risks! Of course, if their performance is revealed by the clients, there will be less risky agents!  The time is now.

 

 

My Predictions on the Coronavirus Impact – My Record Shows You Should Believe Me!

The hardest thing to predict is the future during black swan events like the coronavirus. The key to positioning your business in the future during these world-altering events, potentially like the coronavirus outbreak, is based on your ability to sort through the facts and the reporting of the facts by the media. Media, in my broad definition of the word, is TV, newspaper, internet blogs, talk radio, and any news digitally transmitted through email & text alike. As you are having the feeling of being blasted with opinions from hundreds and thousands of so-called experts looking for their 15 minutes of fame or sometimes extend their place in the public eye, your real estate business relies on you determining which set of facts will prevail and the crucial steps that will guide you when economic impacts & recessions impact the World. The hard part is we search the web and look for clues, we watch TV for clues but most commonly these outlets are taking advantage of you through the sensationalism of real numbers in fear of you taking the impact too lightly!

It is no secret that bad news gets 10 times the number of clicks and views than good news. Let me give you an example from one of my favorite partners in real estate Zillow. Their goal is to stay atop of Google Search and feed buyers, sellers and realtors enough headline-grabbing bad news or more appropriately put headlines that serve what the consumer searchers are Googling while it shrieks fear through the crowds. Let’s the look back end of the last recession, what Zillow was predicting. I took a few screen captures back then knowing one day we would look back. Here is what they were saying in 2011 though 2012:

This piece was in their Phoenix Market Report section of the website during 2011:

ABC News following Zillow’s rhetoric guiding the world on the future display this news below:

I like to title this one as a popular phrases “The Masses are the Assess”. It’s hard as this is spoon-fed to our consumers, and because if you listened to the national media you, the entrepreneur, chose to hold off investing for another year or two. Here is what actually happened and why I want to share what I see now looking at the data, The same types of critical factual data helped my wife and I decide to invest $30K into a website in 2010 – 1 year before these reports were even published – a website that has dominated the Phoenix/Scottsdale Market catapulting our business 1700% over the past decade! Yes, I had two years on spending and investing in a recovering market while others waited due to this noise!

The recovery was well on its way in 2010, while people continue to search for the negative news and believe what was being printed.

Home prices soared in 2012 and 2013. Buyers were buying like crazy if you were buying leads in 2010, 2011 & 2012 knowing where we were headed. Google PPC was delivering thousands of buyer to my new website. My business grew by 300% during this time.

So we may be in the next possible recession, it looks likely for sure, but the question is what will the impact be on the real estate market. First, let’s look at what the national media is filling up the internet and TV with to catch every Google or news searcher in America.

Let’s be honest President Trump cutting off travel to US and encouraging self quarantining made the right move, certainly he has used the limelight to ensure his next election, but what is the source of the data on the web behind this crisis?

The media clearly uses big numbers to create shock and awe, so you continue to tune in!

There are many ways to report numbers, yet just because they are reporting doesn’t mean we don’t need to check their sources, let me show you what I mean:

Are you kidding me, this is the most BIAS, negatively looking chart you can find and yet we are all being suckered in. This chart only points up! When we measure the total without perspective, it always points up. But when you source the data reported you discover the source are validated only by the news station and reports. The national media is reporting 33% more deaths than the CDC because they are not being verified!

Check out the CDC:

Let’s look at the Chinese Comparison chart from the CDC to give us perspective:

As long as we self quarantine this will be over soon, so utilize this time right, and be sure to check your sources, worldometer has theirs:

Could it be true that a news outlet who is starving for attention, as TV falls out of fashion, is using this website’s information as its source?  Let’s look for the real source – the CDC. The CDC waits until a certain time of range each day to post where the other updated more frequently as media distributes. I pulled these both at the same point in time:

Please don’t take this as anything more then I believe where quarantines were kept best, we are close to the end of the crisis.

I have a few suggestion:

Self quarantine – especially if you are sick or have medical conditions, stay home and staff safe
Social distancing when in public
Wash hands and no touching

As for the Real Estate business. Yes, there will be some impact in the the majority of markets but likely only a few percent, unless you live in Las Vegas, Washington or New York or have buyers or sellers that work in travel related industries. Most impacts are due to the stock market dump affecting some buyers, more of a bump in the road then a correction similar to the last one.

It is clear there will be a more significant impact from lost jobs, stock market losses and revenue that will be felt more on the luxury market starting around the $800K price point in our market place, that is about 2.5x’s the average price point and only represents just over 5% of the transactions, yet nearly 20% of the volume. The key point is the effect on the appreciation yearly appreciation numbers as this is likely to keep growth in appreciation reported closer to 5 or 6% versus the torrid pace that we started the year making it looking like we were headed for double digit growth.

I will conclude with this, the biggest effect on the market remains to be the shortage of supply and the likelihood now for the Super Cycle predicted in my last post is now more likely, not less!

Buy Now or Forever Hold Your Peace

Welcome to the Real Estate Super Cycle, we know it’s here because no one predicted it.

The experts were trying to get ahead of the next downturn like an Inman article in late 2016 titled “Beware, warns Gary Keller, foreshadowing ‘shift’ in the housing market” but now it’s clear we have had the opposite of that happening as low inventory is afoot as many popular publications have noted such as:

www.washingtonpost.com
www.businessinsider.com
www.housingwire.com
www.forbes.com

Why could it be a Real Estate Super Cycle, 20+ years of housing appreciation? Economics 101, this is what happens when no one NEEDS to sell. This lack of sellers is stripping the needed available supply to match demand, supply is headed for all-time lows. The last time supply was this low in recent memory, we had EXCESSIVE DEMAND becoming evident in 2004, a glut of straw borrowers buying multiple houses due to an unregulated mortgage and appraisal process allowing no money down borrowers to own multiple houses.

This housing cycle is different because we have a LACK OF SELLERS! The cause of lack of supply is as follows:

1. New building is HALF of what it is was during the last cycle due to lack of labor and insufficient land and other regulations. This was first pointed out by Mark Fleming on First American: blog.firstam.com and by census.gov

2. During the recovery, wealthy cash ridden investors like BlackRock, empty nester’s & other savvy personal investors looking to expand their real estate portfolio, as well as other wall street money bought the short sales and foreclosure and rented them. Well, rents are on the rise due to the lack of supply! And wealthy investors don’t sell cash producing appreciating assets…. until maybe the cycle is at its end!

3. Zillow called it the Silver Tsunami, but unfortunately, it is FROZEN AT SEA! Empty nesters held through the downturn now pushing the average to 13 years they have owned their home but the reality is most of these homes are dated evidenced by the HGTV effect and the current seller is holding until their house is worth more net of fees than their 2005-2006-2007-2008 purchase or they perish. and frankly, medical services gains means they might live into the 90’s, not 60’s.

4. Interest rates are making owning cheaper than rising rents.

5. Millennials are ready to buy if they don’t get outbid.

6. Investors have found a new way to make money through Airbnb and VRBO.com taking hotel nights and turning them into investments for Millennials and other savvy investors.

Who knows how long this will last, but it sure looks like it’s got some legs. Oddly enough in the severe inventory stricken markets like Oregon, Arizona, and Florida, the possibility of some AIRBNB investors selling due to lack of travel & vacationers caused by the Coronavirus impacts may be a welcomed sight! For a while, I thought sharp appreciation caused by the severe lack of supply may squash this rally like the mid-last century but now the demand will be dampened by the Coronavirus outbreak and increase the likelihood we get to super cycle status!

Winning Through Expertise and Science Beyond Customer Experience

Real estate’s next wave is clearly swelling into how to grow in the consumer first real estate world. I run a team in Phoenix Scottsdale and iBuying has been here for 4 years and has found a comfortable place in our ecosphere at under 7% of the marketplace, it’s clear Rob Hahn is going to pay for a bunch of fancy dinners as iBuying’s roar has a larger impact than its bite, so let’s look at how to win for the other 93% of the consumers moving beyond the Digitization of the Industry. Let us first examine the focus most real estate people, who refer to the key to winning more clients in real estate is providing the best Customer Experience (CE) or best Customer Service (CS) and then present the new focus within CE and CS not yet emphasized, then we can talk about what will characterize the next wave. Using an analogy to clarify, we are going to compare selling real estate to attending a sporting event, both trying to attract clients through a great experience. I want to evaluate the CE at the time honored event of attending a baseball game, as these stadium experiences far past the other major sporting events.

Attending a baseball game at the professional level, there is significantly more to serve the consumer than just the quality of the players executing, similar to the transaction & escrow, but also there is a lot of non player involved time due to the pace of the game so there are lots of opportunities to improve the CE just like in real estate. Let’s take a look at Petco park in San Diego, what is considered to be the “best ballpark in baseball” (according to Fox5 in SD) and having visited last year that is hard to argue.

The CE at Petco park is defined by the quality of the food choices offered by the vendors. The quality & quantity of craft beers and soft drinks, but once in your seat, you have entertainment of the players warming up in between innings for enthusiasts, but beyond the actual game, for every else the CE includes the fireworks, Swinging Friar mascot on the jumboTron, the mustard, ketchup, and relish race between innings, 50/50 raffle, the spot lights of fans on the jumbotron, America’s finest whizzing by in near billion dollar aircraft and the national anthem being belted out by a local star to highlight the extent they go to provide a top level customer experience.

So as a real estate agent, what does our comparative CE look like, maybe we wash our fancy porsche Cayenne or rent a limo, we show up 10 minutes early to turn on the lights, we even serve delights and champagne at the high end to attract the agents and we hand show the house as the seller representation to explain every detail and our listings is a must have. When clients come to the office, we have a dedicated parking spot for them, we send them cupcakes on their birthday, we go to all lengths throughout the deal to outshine our competition, even bring toys to entertain kids at closing, while have already vetted the closing docs before their arrival and we should if we want more referrals, the levels of the best CE has been written on Inman for years, but today we define what is next wave to winning in real estate, and that is Expertise and Discipline, the knowledge of what is best for the Client & beyond!

Expertise and discipline in baseball for the offensive side is a professional batter hitting over .400, a feat last past by Ted Williams in 1941. He defined hitting excellence, his onbase base % was almost .500 and very rarely would he swing at balls outside the strike zone, for the delight of those watching. For defense, Pitchers, its defined by ERA(earned run avg) the elite give up under 1.7 runs/9 innings most recently done by the likes of Zach Greinke, Nolan Ryan, Doc Gooden and Jason Degrom. Expertise & discipline in real estate is harder to define but Customer Satisfaction surveys performed by Zillow is a step in the right direction to tell us if the client is happy with our service. My point is this, if Nolan Ryan & Doc Gooden were going to face Ted Williams and Babe Ruth along with the other elite sluggers. They wouldn’t need to serve beer or have races in between innings to fill the stadium. Now it’s time for real estate evolution to put an emphasis on Expertise and Discipline.

Homesnap was squeezed by the industry when they posted home selling stats years ago leading them to remove them, if the wanted realtor clients but doesn’t the consumer deserve to see how many homes we sell and what we sell them for, our true expertise? Or the percentage we listed vs sold in the past 12 months? How about broker’s sending reviews to everyone we sold houses in the past 12 months, and using them to help the agents provide a better client experience. It’s coming because the consumer always wins!

The next huge wave, I believe will be the evolution of Real Estate expertise & discipline at every phase of real estate. I am not talking about expertise in knocking on doors, cold calling as those are realtor benefits, I am referring to becoming expert home finders, being able to identify who in a neighborhood wants to move but is not listed to match up for a potential buyer who wants that neighborhood, a task that only being accomplish by the few. Realtors will evolve in to fixup experts in understanding return on investment and have contractors to perform. Yes, this is time consuming and will challenge the part time aspect of our heritage but let’s be honest with ourselves, Realtors have been selling houses for 100 years, why are we not House Experts, our product? After 500 inspections, we can see they wrapped the room with designer furniture and now it feels too small impacting value, or the AC on its last leg but the real expertise is know if its more profitable for seller to replace before listing or provide a credit during inspection in an HGTV world? This requires constant visitation to understand the impact between prices ranges and neighborhood and builders is why, but we are afraid to advise obviously as the average agent sells 5 houses a year, simply too much risk when you have 1000’s of them in your brokerage. Why can we not articulate that we understand prices better than the Zestimate, for goodness sake we actually visit the homes, don’t we. That the Zestimate is an average and we as professionals understand the functional obsolescence (FO) that keeps the house from reaching that valuation or sometimes lack of FO in which it then sells for more. Let’s stop using PPSF to define what houses are worth because that points out that the consumer knows as much if not more than us, assuming our potential seller has been in some of the neighborhood open houses. Expertise developed through repetition is the major advantage we have as the consumer still needs us to let them in.

It’s hard because the industry has been built on a model that encourages equality and opportunity for all, proven as the agent count continues to explode in relation to # of national home sales. Unfortunately, equality is lowering the bar to the point at putting our existence at risk, it’s time to join the wave that is rising to excellence!

I host a podcast with my business partner Phil called, the solution a real estate podcast, putting the consumer first in Real Estate, if you feel as passionate about rising with the next real estate, we would enjoy the discussion as we are launching season 3!

How Real Estate Teams are Supplanting Brokerages

There is a shift toward real estate teams winning the war of power for buyers and sellers against the top brokerages. Brokers aren’t going away, but it’s clear dominant broker brands are being displaced and are losing relevancy.

Teams have taken the main stage when it comes to marketing directly to consumers and now appear to have more influence in the living room, where brokers once ruled. The question is, why? Most brokers spend a dominant share of their marketing dollars and rhetoric focused on agent population and recruiting, not on the consumers on the web.

TEAMS MEETING THE CONSUMER NEEDS

Consumers no longer need to walk into a broker’s office to get advice. Old-school brokers lost the search process to tech companies like Zillow, Trulia, Homes.com, Yahoo and Redfin by losing focus on the consumer. Next wave tech companies, including Opendoor and Offerpad, figured out that some people just want a quick, convenient sale to move from one place to another at a fair price.

This move was followed closely by teams meeting the consumer needs, working their databases, and buying the leads and web presence from these search dominating aggregators. Teams have also created systems and tools for the team members, which may differ from the one their broker provides. Facebook and Instagram make hyperlocal marking on smartphones easy, and brokers now lack the impact and reach in the mobile world. This empowered agents to morph into teams, becoming more successful as entrepreneurial agents connecting with consumers seeking more influence.

BROKERS STILL HAVE VALUE

I think the broker has value, and the brokerage needs to control the education piece, including contracts, to protect the consumer to make sure all documentation is cleared and to make sure the disclosures are met — and more. This is vital, especially as we have many new agents entering the business. This part of the industry is where imbalance comes, with brokers forced to spend their entire time managing risk, and teams are focused on teaching agents how to market and grow.

The question remains how will the growth and role of teams in real estate influence broker models moving forward? Will brokers alter how teams operate inside their culture as the power struggle emerges? It is abundantly clear with the amount of Wall Street and Silicon Valley investment in new models of brokerages that we are on the precipice of significant change over the next couple years.

I believe they are several possible outcomes as change unfolds, similar to what happened with taxi drivers and travel agents. Maybe it’s something in between. Going forward, teams will look for compensation for their market share. Teams will continue to grow larger, leaving traditional brokers to adjust or permanently be left behind.

Agent Training

People Believe the Internet

I’m truly shocked that this is not understood more now that we’re in 2019. When I entered real estate in 2003 I was shocked even then about how little real estate agents knew about the internet. I guess it’s because real estate is an entrepreneurial led business based on relationships. Meaning for example, people often use realtor friends for their real estate transactions, but I believe this practice of using realtor friends is decreasing.

REAL ESTATE IS CHANGING

People Believe the Internet is changing the way real estate is being done. Nowadays, everyone basically has a search engine with them at all times. Whether you have an iPhone, a Galaxy, Droid or some other smart phone. Or if by chance you don’t have a smart phone, then you likely have a iPad or computer within arms reach during the day at home or at work. Since people are preferring less and less to ask unintelligent questions, they use the internet on their smartphone to search and then when they search they believe what they read, people believe the internet (PBTI). When someone searches your name they will believe what they read, whether you did or didn’t chose to put that information out there. So what do you need to do? The first step is to search the internet on a neutral device that is not your own, then search for yourself anonymously in incognito mode. You want the ability to search and see what other people see when they search for you. If they are using a phone, they can typically only see one item or two items, so you know then that you need to work on those items first.

WHAT DO PEOPLE BELIEVE

There are several things on the internet that people believe more than others. The first is pictures, the second is stars, next is written reviews. The beautiful thing about people believing the internet is you can control this and you have to work as soon as possible to control this.
Just like the consumer believes what they see, they also believe the opposite of what they don’t see. For example, if you say you have sold 200 houses and you only have one review, where are the other 199 reviews? Some realtors will respond to that question that they didn’t ask for reviews, but if you are good shouldn’t you receive some reviews without asking? I believe that reviews are now a very common thing to come by. So remember that people believe the internet, and they want to see pictures, stars and written reviews.

Agent Training

 

#1 Agent at My Home Group Interviewed by #1 Ranked Agent by the Phoenix Business Journal

On episode 90 of the Solution a Real Estate Podcast. Top agents and real estate team trainers Jeff Sibbach and Phil Sexton interview top team leader and #1 agent at My Home Group Jason Mitchell of the Jason Mitchell Group.

Phil Sexton:
Welcome to The Solution, a real estate podcast, where, you know, Jeff, it’s time that we put the consumer first in real estate.

So this is why we started the podcast, so that we can interview agents, we can talk to agents, we can talk to top producers, and figure out how they’re going about putting the consumer first in their business, what they’re doing to differentiate themselves, and today is a very special day.

Jeff Sibbach:
Well, do you mean ’cause it’s episode 90 of The Solution?

Phil Sexton:
Episode 90? Man! Time flies when you’re having fun.

Phil Sexton:
Jeff Sibbach, my co-host, Welcome to the program.

Jeff Sibbach:
Thank you. I am super excited to have our guest today, ’cause he is easy to exude in his leadership in the industry.

Phil Sexton:
I have no idea what that means, but what I do know is that his name Jason Mitchell. Let’s give him a round of applause!

Jeff Sibbach:
Thank you, sir. Thank you, sir.

Phil Sexton:
Welcome to the show.

Jeff Sibbach:
You know when it takes about five months to get somebody to come on, it’s a pretty important guy.

Phil Sexton:
Even though in our world, being the Phoenix, Arizona, real estate market, everybody knows his name, I just have feeling that there’s people out there that might not know that he closed … he and his group, the Jason Mitchell Group, last year, closed two hundred and ninety-two million dollars worth of residential real estate. It’s a lot of business. Jason’s team, you did seven hundred and seventy six transactions last year. The Phoenix Business Journal named you the Number 1 real estate team in the Phoenix Metropolitan marketplace. Right?

Jason Mitchell:
Last year.

Phil Sexton:
Last year. And if I’m not mistaken, the same Phoenix Business Journal named Jeff Sibbach the number one residential real estate agent?

Jeff Sibbach:
Right. All because they wouldn’t let Jason have two categories!

Phil Sexton:
So I’m sitting here with two Number 1 real estate agents according to the Phoenix Business Journal. This is wonderful.

Jeff Sibbach:
Hey-oh!

Phil Sexton:
Alright, alright. Wow! And my name’s Phil. I’m also here in the room.

Phil Sexton:
Alright, so Jason, you’ve been in the business 16 years. We know that you’ve got relationships, and that’s a big secret of your … or not secret, but, method of your success, and so we’re gonna get into asking you questions about that. But our viewers might be wondering, or our listeners might be wondering. They recognize your voice a little bit because they’ve seen, I don’t know, the TV show Selling Scottsdale.

Jason Mitchell:
Yup. That was a while back-

Phil Sexton:
Maybe they’ve watched HGTV, A Sale of Two Cities.

Jason Mitchell:
Yup. That was a fun one.

Phil Sexton:
Also featured on those and I think Jeff Sibbach named you The Best Looking Male Agent at My Home Group.

Jason Mitchell:
That’s right. At My Home Group!

Jeff Sibbach:
No, you’re doing just fine. You’re doing just fine.

Phil Sexton:
I’m going to self-proclaim that, that was the best intro I’ve ever given anybody. So let’s get into real estate talk and Jeff Sibbach, whaddaya got?

Jeff Sibbach:
So we’re gonna be going a little bit different way ’cause I know that … so I wrote a blog on AgentTruth.com talking about what I’m calling The Shift 2.0 and it is … Jason put an exclamation point on Number 4 and that’s talking about how relationships are losing to partnerships.

Jeff Sibbach:
So in the blog that I wrote, I was talking about how relationships, meaning companies, as larger and larger companies start to dominate the marketplace, where it used to be real estate brokerages did, but now we have Zillow, we have Realtor.com, Yahoo, we have HomeLight, and then we have Rocket Mortgage, and we have Opendoor, and we have Offerpad, as these companies have come in, those agents that have worked diligently to develop partnerships with them are getting the first crack at those deals, and now unfortunately, if you’re relying on your relationship and not worried about upping you game, now you’re competing against Jason Mitchell, a Number 1, 760 deal a year agent, competing against you, doing five deals or eight deals and hoping that Aunt Marge is gonna go with you, versus him, and as we’re making that comparison, so I think we should talk to him a little bit about … where did you get the vision?

Jeff Sibbach:
Now, you’re on top of the mountain with it, but tell us a little bit how-

Phil Sexton:
About the climb.

Jeff Sibbach:
Yeah.

Jason Mitchell:
Yeah, so I had an opportunity. You know, we have a lot of great partnerships and now-

Phil Sexton:
How many?

Jason Mitchell:
On a large scale, we probably have eight to 10 powerhouse relationships. Our biggest client is Quicken Loans, as everyone knows, and Rocket Homes, and I’ve been with them for a decade, and they were my first partnership, and they’ve become my biggest partnership. And I have some other great partnerships as well, but that happens to be our biggest client.

Jeff Sibbach:
Meaning you do the most amount of deals from them?

Jason Mitchell:
Yeah.

Jeff Sibbach:
Is the defining business.

Jason Mitchell:
Yeah. Yeah. Yeah. We do a lot. We’ll do over 500 deals this year with them alone.

Jeff Sibbach:
Awesome!

Jason Mitchell:
Last year we did 350. So a lot.

Jeff Sibbach:
Yeah.

Jason Mitchell:
And so we have a marriage with them, and it’s been phenomenal, but when I first had the opportunity to work with them, I was a solo agent, and I would get one or two leads a month, and I’d close one deal, then two deals. And then as I started to build more trust with them, they started trusting me with a little bit more business, so I hired a buyer’s agent and then I built the tech. Because to me, I saw an opportunity to where the only way I could harness agents out there and give them value was to be able to provide the ability to receive a high quality lead, instantaneously to their phone, start the communication process or prospecting, create a transactional experience, create a closing experience, and it took years. It took me over three years to build, and we still build it.

Phil Sexton:
Always a work in progress.

Jason Mitchell:
Correct.

Phil Sexton:
So when you say, “Build the tech,” describe what do you mean by that? What’s the tech?

Jason Mitchell:
So our proprietary system is called Camp. That’s what we call it. And I built it on the Infusionsoft platform. If you’re familiar, with any software, with anything that you start, you basically start from scratch and you gotta build it all out. Which was really, actually, one of the coolest things that I’ve done, because I built me. I built our entire system, and I built it … the girl I was building it with at Infusionsoft at the time, I ended up hiring her four years ago, and she now works for us. So she and I had built our entire system. So when I have to bring on a new partnership, relationship, a new funnel, a new campaign, she’s done it so many times.

Now we’re in multiple states so we have to do multiple applications for what we do but we got a sandbox where we just go and we plug away, but-

Phil Sexton:
So does that mean that your partners actually enter the opportunity into that tech campaign or do the-

Jason Mitchell:
Depends.

Phil Sexton:
Send it to you however they want to and you enter it into.

Jason Mitchell:
It depends. Some of it we parse and instantly go and Round Robin.

Jeff Sibbach:
Meaning they send you an email and you suck the data out of it.

Jason Mitchell:
Yup. Yup. Some of ’em and then some of ’em are manual but we’ll get a lead in. And we have a communications team, so we have three people there, who we call our Client Experience Team. One of ’em is basically the air traffic controller. So her job is to make sure that as we’re getting in leads, that they’re getting put into the right campaigns, the right lead sources, following up, making sure agents are identifying those, and then we have another guy. His name is Ryan. He follows up the day after, makes sure that they’re sitting in the right stage.

Phil Sexton:
So they’re all to touch base with your agent. So he is a corporate employee, for lack of a better phrase.

Jason Mitchell:
Yeah.

Phil Sexton:
That is then reaching out to the lead to make sure that your independent contractor is doing what they should be doing.

Jason Mitchell:
That’s right.

Phil Sexton:
I love that touch point.

Jason Mitchell:
Yeah.

Phil Sexton:
From the consumer standpoint.

Jeff Sibbach:
Yeah.

Jason Mitchell:
We do it from a consumer standpoint so the consumer feels taken care of like, hey, I have more than my agent looking out for me. But we also do it because we wanna make sure … you guys know this … it’s very difficult sometimes for agents to actually follow rule, and move stages.

Phil Sexton:
Wait a minute! Hold on! Hold on! We’re all agents here in the room.

Jeff Sibbach:
But no, no, no! What he’s … no, no, no, no … what he’s speaking to is why the growth of the team has emerged, is that agents are generalists at nature, and they’re used to going and doing a little bit of everything and kind of having a hard time staying focused, right? Because you’re really in charge of too many tasks as an agent, and he’s saying that he’s utilized the team much like we have and that’s getting someone to make sure that each point is covered to check every box along the way to make sure the client is satisfied.

Jason Mitchell:
That’s right, because if you get a lead sent to your phone. When you get a lead, it says, “You have a lead. Check your inbox.” We make ’em check their inbox because there’s more detail. Right? So they have to go and then they see the lead source. They see.

Jeff Sibbach:
Is there a little rocket on the text message?

Phil Sexton:
Tomorrow there will be. Tomorrow there will be.

Jason Mitchell:
[crosstalk 00:09:20] So it’ll tell them the lead source that sent us the file and then from there they’ll call and reach out and do whatever they need to do. However, that doesn’t necessarily mean they’ve gone into our CRM to move the stage to either Made Contact or Attempted Contact.

Jeff Sibbach:
Mm.

Jason Mitchell:
So we wanna make sure that our in-house team is doing that because once you start moving milestones, different messages get sent to the client. And so we’re trying to create that experience for the client but also holding ourselves accountable to ensuring that people are sitting in the right stages where they need to.

Jeff Sibbach:
Wow! I love that! I mean using Infusionsoft for about a year and a half. It’s such a complex thing but I know that, I’ve heard you speaking on other podcasts saying that, that is the key, the CRM, to your success.

Jason Mitchell:
No question. Listen, we’ll do, right now, this year, we have 342 new files this year already in 2019. I have two processors, I have an office manager, and I have an ops director and that’s it. We have 281 files in escrow right now for 107 million, right now, today. I just looked at it. I look at like a hundred times a day, probably, like you do. But my point is, because of the tech, because it’s constantly tell you when an agent does something and they move to a milestone. Whoever needs to touch the file can touch the file. So they get tasks and they get a trigger, and they know to go in, and once they’re in the file, they have check boxes that they have to check off. So we just kind of become an assembly line and that’s the thing is our staff does the same thing, every time, everyday. Right? So they’re just accustomed to it. They can do it in their sleep. So we can really just continue to grow because the system, the tech, no matter who we put in there it will alert who needs to be alerted at the appropriate time.

Jeff Sibbach:
Right. This brings up my second question ’cause it sounds perfect. Right? But I know that in dealing with agents ’cause this is just speaking to some of the larger teams that we have out there listening, or just in anyone sending leads to agents, our challenge in 2017 and 18 …well, it wasn’t a challenge, it was just a booming market and everything was great skipity-skipity, is that all of a sudden you get used to just, “Here’s another deal, here’s another deal!” and it almost becomes paralyzing to them.

Jason Mitchell:
It can be.

Jeff Sibbach:
We saw it happen, ’cause now as you start to see the shift or we saw a shift in the market. I’m wondering if you do, or only due to your partnership, maybe you’re not seeing the shift as much and that’s where the consumer is kind of … I don’t know if it’s pushing away, but almost, flat out lying to us. Being like, “I don’t need you. I’m good. I’m good. Until oh, no, I want you now, at the property, at 3:00 or I’m not gonna work with you.

Jason Mitchell:
So there’s two sides to where I see this. Where this comes into play with relationships and partnerships, the main thing that comes from it is quality. We get quality leads. We get quality consumers that we can work with. The higher top of the funnel you go, the less quality that lead becomes. And so we do buy top of funnel leads still. We do play that game. We scrub ’em out and then we’ll distribute. We never give our agents something that hasn’t been scrubbed but because of the partnerships, our average, if you take an aggregate of every lead that we ingest, we close 17% of those leads. So when you have, when you have partners that do a lot of that heavy lifting for you but rely you specifically for boots on the ground to close and be trusted-

Phil Sexton:
Yeah, that’s amazing!

Jason Mitchell:
It’s amazing how that ratio goes up and then, in turn, what that creates is a very low attrition rate. Because for our agents, free agents. Because our arbitrage is three and a half to one, so for every agent … now, some of ’em are higher and some of ’em are a little bit lower, but what I mean by that is, you will close an average of three and a half of our team leads with your one self gen, and I have some hitters on my team. And so, when you can exchange that kind of return, then people seem to follow the way that you want them to do things. Right?

Phil Sexton:
Yeah.

Jason Mitchell:
And then in exchange for that, as they grow their book of business and as … you know, I have agents with me for years and years and years, so now they have, you know, 200, 300 team leads that are closed … all the business that comes from that is all self gen business, which they get a higher split of.

Jeff Sibbach:
Right. Yes.

Jason Mitchell:
All that, when you bring all that back to why, why is this … because of quality. ‘Cause we have quality and quality cures up so many things on a team, as long as you have the ability to track everything, manage everything, quality cures a lot of problems. And so, that’s why, again, going back to our niche, our niche now is … we say, “Look, there’s no one that can you the visibility, the tech, the brand, the support, and the visibility of a trusted partner like we can because we’ve mastered that referral process-

Jeff Sibbach:
Sure.

Jason Mitchell:
And being boots on the ground.

Phil Sexton:
Right.

Jason Mitchell:
And so that’s my job now. That’s why I’m traveling the country like crazy, just meeting new partnerships, creating new relationships, so we can grow, and grow in different markets, too. So …

Phil Sexton:
I love it.

Jeff Sibbach:
Yeah.

Phil Sexton:
I’m curious and I know that you wanna continue down the relationship thing but…

Jeff Sibbach:
No, we’re done so we’re gonna move on to other things.

Phil Sexton:
… and real estate thing, what I’m curious on is, when you, you’re the visionary. Are you the visionary in your business?

Jason Mitchell:
Definitely.

Phil Sexton:
Absolutely. So when you look at Camp, there’s things that you’re like, “I wish I did this.”

Jason Mitchell:
Always.

Phil Sexton:
What’s the next level? What’s the big one where, with me right now, I’ve got I wish our system would do this or that.

Jason Mitchell:
Yeah.

Phil Sexton:
I’m curious.

Jason Mitchell:
Well, I’m always coming up with like, and you guys do the same thing, I’m sure, like you’ll wake up at two a.m. You’ll have ideas, right?

Phil Sexton:
Yeah.

Jason Mitchell:
So, there’s a lot.

Jeff Sibbach:
It’s usually 3:30 for me, but..

Jason Mitchell:
Which is even worse, right?

Jeff Sibbach:
And so I’ve got enough wine in me at two o’clock. I’m still asleep.

Phil Sexton:
My eight month old make it until 3:30.

Jason Mitchell:
I like that. No, there’s always, we’re always … whether or not we’re adding partnerships, whether or not we think of one of the things we’re doing right now, and the implementation becomes a little bit slower because we have multiple states that we have to ingest in all of these applications within.

Jeff Sibbach:
I’m just amazed that you can do it with so few people.

Phil Sexton:
Implementation always becomes slower the bigger you get.

Jason Mitchell:
Yeah.

Phil Sexton:
Right? That’s just the reality of the business.

Jason Mitchell:
Right. But the nice thing is like, right now we’re working on awareness stuff and so, well, there’s a lot of stuff we’re working on, but one of the things we’re doing right now is awareness, so when an agent gets a lead now, we’re … we have different incentive programs, we have different things, we’re creating visibility within when the lead gets distributed, who the lead source is, what the incentive is tied to. A lot of our partners are offering their own incentives. So that now it’s every lead that comes in, we’re making sure that our agents have full awareness on exactly what’s going on with that specific lead source, and then from there, it’s also building out like with our CET Team. Our Client Experience Team. We have to build out certain internal forms because we use automation. So what Sally does is different than what Brian does. And when they hang up the phone, different things trigger when you end that call. Right?

Phil Sexton:
Right.

Jason Mitchell:
Right, so, we’re constantly building out different messages based on the results of a conversation that they don’t have to send an email, you just click a button. And it-

Phil Sexton:
Gone!

Jason Mitchell:
Takes care of it, right?

Phil Sexton:
Yeah.

Jason Mitchell:
So, yeah, it’s just getting better.

Phil Sexton:
That was one of the cool things that I liked about Infusionsoft. Is and what you put on top of it is, their platform is so customizable, where some systems that you use, you can only communicate outbound from the person that’s assigned to them, where Infusionsoft it’s infinite. You can communicate outbound from you, even if you’re not the one that was assigned to that file and that was one of the pieces that I really liked about it.

Jason Mitchell:
You know, looking back, quite frankly, looking back, I mean, we’re at a place, we can’t go backwards now.

Jeff Sibbach:
Yeah.

Jason Mitchell:
We’re there now.

Jeff Sibbach:
Yeah.

Jason Mitchell:
But I should’ve did it on Salesforce. I really should’ve.

Phil Sexton:
Got it.

Jason Mitchell:
Because there’s so many different integrations, APIs, and as you know, we have Shebang, right? So our team-

Jeff Sibbach:
I thought Camp was Shebang!

Phil Sexton:
I thought Camp was Shebang!

Jason Mitchell:
No! Because ours is so custom. Shebang, you can build it and customize it-

Phil Sexton:
Got it.

Jason Mitchell:
But Shebang created from our Mitchell Group core. Right? From our-

Jeff Sibbach:
Right.

Jason Mitchell:
Right, from our Camp core.

Jeff Sibbach:
Well, be honestly. If you’re looking to sell a CRM, you can’t build it for Jason Mitchell doing 500, 700, 1000 deals, 1200 deals, right? Or you’re gonna sell one a year.

Jason Mitchell:
And Shebang now is on Salesforce. That’s our big announcement in a couple of weeks. So we move Shebang from Infusionsoft to Salesforce.

Phil Sexton:
Oh, wow!

Jason Mitchell:
And we did that because you are limited within the Infusionsoft platform for customization, being to tweak your emails with the licensing. There’s also API limitations. Like Salesforce, it’s unlimited what you can do.

Phil Sexton:
Yeah.

Jason Mitchell:
Reporting. So in Shebang 2.0 now in Salesforce, no matter what leads come in, we can identify the source and we can pull a report to tell you all your conversion ratios, how much money you’re spending, all within Shebang now. And so it’s really powerful what we’re building with Shebang and so because we had … and that’s the problem that I face now that … what we’ve built, in terms of our Camp is such a monster that to put it on Salesforce not only would it take a long time, it would cost a significant amount of capital.

Phil Sexton:
One, if you don’t need to license it to different people-

Jason Mitchell:
Right.

Phil Sexton:
Then you [crosstalk 00:18:53]

Jason Mitchell:
So we’ll actually, believe it or not, the product that’s … I don’t wanna say it’s … well, it is better. Shebang 2.0, in terms of efficiencies, in terms of interface, is certainly better than our Camp, but my own software, I won’t be using in Infusionsoft software.

Phil Sexton:
Yeah.

Jason Mitchell:
Because we built it out so massively, right, but anyways, yeah. But the tech was so important because the tech changes everything. It creates less overhead. It creates … and everyone uses it. We have all our training videos and everything that you need and we made it efficient because the minute you sign on, whether it’s Shebang or The Mitchell Group, all the content’s done. All the text messaging is done. All the emails are done. We don’t want our agents to get involved … let us … we’ve already taken care of everything. There’s no-

Phil Sexton:
Yeah. We know this gets a 37% response rate.

Jeff Sibbach:
Right.

Phil Sexton:
We’ve tested other messages that get less. We’re sticking with this one.

Jason Mitchell:
Even in the transaction, our transactional experience becomes critical too. So when someone goes into escrow they get a text and an email, “Congratulations!” Right. Three days prior to their inspection period, “You’re inspection period’s coming to an end. Please contact your agent should you have any information” blah, blah, blah. After the inspection period’s over, we foreshadow the remaining process. Then we survey.

Jeff Sibbach:
Right.

Jason Mitchell:
How are we doing? Then we introduce our concierge service, where we’ll transfer their bills, utilities. Some of our other partnerships, like ADT offering everybody gets a free ring doorbell when they close with us. Then ADT will discount their services. Our moving partners. Muscular Moving Men, giving them discounts with their move. So we’ll make these introductions as an added value play to what we do, at the appropriate time.

Phil Sexton:
Yeah.

Jason Mitchell:
So because you don’t wanna hit somebody like, “You’re going to escrow.” Next thing you know, “Hey, I’m from insurance.” “Hey, I’m the mover.” “Hey, I’m the whatever.” You have to be tactful.

Phil Sexton:
Yes.

Jason Mitchell:
With what you do.

Jeff Sibbach:
One of the other items I heard about. It’s interesting ’cause I have a question for you. I guess because of the amount of volume that he does, ’cause we go with Phil’s gonna write a book one day. It’s called PBTI- People Believe The Internet. But because … do you worry about reviews then? Do you still try and get that, or because you don’t really have to be as concerned about that because of the amount of volume you do? ‘Cause there is a benefit. We have a benefit of walking in, being with the amount of deals that we do, then you’re not as questioned as much. Right?

Jason Mitchell:
I think there’s pluses and minuses to the reviews and that goes back to your point on the timing, because we hit them the day after we clear the inspection report, we send a survey. And why do we do it then? Because typically, that’s a good point in the process. We just agreed on all repairs. We’re moving forward.

Phil Sexton:
Right.

Jason Mitchell:
Like if I sent that, and they’re going back and forth with the buyer and seller, it’s not gonna work.

Phil Sexton:
Right.

Jeff Sibbach:
Right.

Jason Mitchell:
An answer, right? So we try to be tactful when we send out and the timing on that. To answer your question, I’ll be honest. Guys, we like a lot of the stuff that you do and we pale in comparison in the way that you guys … when you go to Google, you guys have dominated Search. And I’m envious of it. Honestly. I really am. And so the review.

Phil Sexton:
Thank you.

Jeff Sibbach:
We got one win. Alright, good!

Jason Mitchell:
No. That’s amazing.

Phil Sexton:
No, but look it. We don’t have relationships.

Jeff Sibbach:
Yeah, we have to fight for every conversion. It’s still … even though there’s envy to us in that 17% ’cause we can’t generate that because we’re starting every relationship anew.

Jason Mitchell:
Totally.

Jeff Sibbach:
So we have to win them through videos and we have to win them through delivering reviews. We have to have reviews. We need more and more reviews because we’re not coming in from a trusted partner.

Jason Mitchell:
Right.

Jeff Sibbach:
And that’s why I talked about this, is that we’re still fighting uphill. Now, obviously, when you’ve got 700 Zillow reviews, that helps a lot but not necessarily against you. It helps against … that’s why I have item number three is, is when I’m competing against an agent that’s relying on a relationship, and I got six or 700 reviews or more importantly, 500 in their zip code-

Jason Mitchell:
Right.

Jeff Sibbach:
And they have one or two, they’re in trouble, whereas you may not be as in trouble because you came from their lender.

Jason Mitchell:
Well that’s the thing. There’s no better compliment than having somebody else give you that compliment. And so that just goes back to when someone tees you up.

Phil Sexton:
So the Quicken reviews matter to you more because that’s where … or the Quicken advertising creates that first level of trust. Then they’re able to transfer their trust to you.

Jason Mitchell:
Take Quicken or any other partner-

Phil Sexton:
Or whatever partner.

Jeff Sibbach:
Yes.

Jason Mitchell:
We’re getting business from, before we get to the consumer.

Phil Sexton:
Yeah.

Jason Mitchell:
They’ve already talked about us.

Phil Sexton:
Right.

Jason Mitchell:
You know, we work with one of the Number One teams in the country, they’re gonna be reaching out. They know what they’re doing, they’re great. And the consumer, because everyone’s so busy, they’re just waiting on that call. So they’re not really … they’re not shopping you … like, if I go online, the first person I see is you guys. So you’re gonna get the first call. The question is, the competition. Where does that come into play?

Jeff Sibbach:
No, they’re gonna, yeah, they’re gonna lie to us … ’cause that’s what they do first. No, I’m not really looking. Right. Like, you fill out five fucking forms over the last three days. You’re not looking? I know everybody in your family. And they’re like, “No, really. We’re not looking.” Right.

Phil Sexton:
This is just a public service announcement. There will be foul language used on this podcast. Thank you. Continue listening. Beep. Yeah. Wow!

Jason Mitchell:
Beep!

Phil Sexton:
I’m gonna start doing that.

Jeff Sibbach:
Alright. We gotta touch other topics. To me, here, it’s funny because as we were talking to a lot of friends from California, they were talking about how their grind is back and what we saw here locally that their sales were off in January by 10% and 8% in February. I think March is come back a lot stronger, but it doesn’t sound like you’re not as effected by the grind.

Jason Mitchell:
But it’s because of … listen. Right now suppression has worked to our benefit.

Phil Sexton:
That’s a big word.

Jason Mitchell:
But it’s true. Let me tell you. It’s very easy to figure out. It’s logical. As the amount of transactions may slowly start to … are slowing down right now, the partnerships are looking at all their relationships, right? And they’re saying, “Now, we gotta trim the bottom 20% because we need to put our clients in the trusted hands of people that can close them.” Right? So as they tighten up their network, we become the beneficiary of that because we’re on the top five percent in every marketplace for all of our partnerships, based on talent, based on tech, based on whatever. So because they’re tightening up, we’re actually getting more leads in because they know that we can close them.

Jeff Sibbach:
Right.

Jason Mitchell:
So it helps up. It helps us.

Jeff Sibbach:
Well, I mean, this feeds the theory that I have that teams are gonna win out over individual agents because they wanna send more leads to the better partners.

Jason Mitchell:
They have to. Because now, look, every partnership I have is tightening up their network. Every one of them. Literally, every one. The major ones. Right?

Phil Sexton:
Yeah.

Jason Mitchell:
And they’re doing it because it’s smart. They’re saying, “Look. I have a thousand leads here. Am I gonna give it to everybody?” What it also does too, is it builds more loyalty within your network. And I say that because … and I’ve helped Opendoor build their referral network. I’ve helped a lot of people build their referral network ’cause I know how to do it and it’s very simple. You gotta have loyalty within your network. How do you get loyalty within your network? How do you get it to where if I call-

Jeff Sibbach:
You serve donuts.

Jason Mitchell:
You could do that. That works. Sometimes. By the way, I’m opening a donut shop, I swear to God.

Phil Sexton:
What’s the name of it?

Jason Mitchell:
Buster George’s Donuts.

Phil Sexton:
Is it gonna be near Raintree and the 101?

Jason Mitchell:
No.

Phil Sexton:
Uh. Dang it!

Jason Mitchell:
It’s on Fifth and Roosevelt, downtown.

Jeff Sibbach:
Ohhhh.

Jason Mitchell:
I have a coffee business and so Smooth Brew, we’re opening up our Smooth Brew down there next door that we had open space. And I was in a magazine [inaudible 00:26:43] to go on a plane and I looked and it’s called The Dapper Donut. They franchise it, right? And I was like, “You know what?”

Jeff Sibbach:
I want one of those.

Jason Mitchell:
I want a donut shop. And we’re also gonna do a general store. So it’s gonna be called Buster George’s Donuts and General Store. ‘Cause we have our liquor license at the coffee shop so we can sell beer, wine, and then we’re gonna have ice cream, we’re gonna have…

Phil Sexton:
Have are we not doing the podcast from there?

Jason Mitchell:
It’s not open yet. Two weeks.

Phil Sexton:
Two weeks.

Jason Mitchell:
We’re gonna open in two weeks.

Phil Sexton:
We’re going to Salesforce and to the coffee shop.

Jason Mitchell:
Yeah, in two weeks. So the … I gotta tell you…the store is so funny because my parents had a pug and it passed away four or five weeks ago and he was 15 years old, and his name was-

Phil Sexton:
I’m waiting for the funny part-

Jason Mitchell:
No, his name was Buster George.

Phil Sexton:
Oh.

Jeff Sibbach:
Oh.

Jason Mitchell:
So the logo is Buster George’s Donuts and General Store but the logo is a pug just smashing a donut in his mouth, so I don’t know. So I’m super-excited about that.

Phil Sexton:
Wow! Entrepreneur.

Jeff Sibbach:
That’s what I’m saying is, is that, he accentuates the idea that I don’t know that agents have got the clue y yet, that they’re gonna have to up their game because now you’re dealing with entrepreneurs that are running their business and they’re insatiable about dominating.

Jason Mitchell:
Oh yeah.

Jeff Sibbach:
Do you not get the feeling from the guy, right?

Jason Mitchell:
Whoa!

Phil Sexton:
In a nice.

Jason Mitchell:
If there’s anyone in this country that I owe an apology to, it’s you. Believe me. Like..

Jeff Sibbach:
What?

Jason Mitchell:
When we went, well I just kind of crossed … I did some stuff I shouldn’t have done a few months ago and I was having a bad day and I made a comment that I shouldn’t have made, and I can say on this..

Jeff Sibbach:
I didn’t even remember. I have a short memory. I’m a salesman. Like I don’t remember past six weeks.

Jason Mitchell:
I know but … there’s just, you gotta be like, “Listen!” Also, friendships are important too in this business. So people talk well about somebody. And I always wanted to be the person with character, that ran their company with character, integrity, always did the right thing. Because we see it so many times, especially when agents are struggling, you know, or they have to win, but they win by trashing others. And that’s not how you win-

Jeff Sibbach:
Right.

Jason Mitchell:
You don’t win that way.

Jeff Sibbach:
Right.

Jason Mitchell:
You win by saying, “You know what? They’re great.”

Jeff Sibbach:
I’m just better. Yeah.

Jason Mitchell:
No, no. But no. If somebody came in and starting trashing…

Jeff Sibbach:
We always present your best is what I meant. I didn’t-

Jason Mitchell:
Yeah, yeah, yeah. Yeah. So, but I tell you this..

Jeff Sibbach:
You have to..

Jason Mitchell:
I don’t know how. I really don’t. I don’t know how the average agent makes it. I couldn’t imagine how how it was if you don’t have relationships.

Phil Sexton:
Because this hasn’t totally wiped it out. Because partnerships haven’t wiped out relationships, and when you think about the average agent … we talk a lot about this. Who’s really in trouble right now? In our perspective, when we first starting looking at it, we’re like, “Man, the part timers are gonna get run out of this business and the full timers are gonna be left.” And then, what’s you have?

Phil Sexton:
It’s the other way around. Right?

Jeff Sibbach:
The other way around. But what it is, is that the part time agents, because they have a secondary source of income will be able to survive. ‘Cause their spouse or their roommate or their partner, or whatever sexual preference it is, has income. So they can only do one deal every three years and still make it. So therefore they can keep that license. But if you’re making 70,000 or 80,000 or 90,000 dollars a year..

Phil Sexton:
As the breadwinner..

Jeff Sibbach:
As a breadwinner and you lose 25% of your sales because of these items, you now need go get a job.

Jason Mitchell:
That’s what I’m saying. It’s very true. And I don’t know … even take, open houses. I used to do open houses all the time. That’s how I built my book of business, right? Without partnerships. And it’s crazy now because I see my agents doing open houses. People will put up. They will be in front of an open house, where before, they had to walk in to check out the house.

Jeff Sibbach:
Yeah.

Jason Mitchell:
They’ll pull it up on internet and be like, “Nope! Not for us!” And they’ll just move on.

Jeff Sibbach:
Yes.

Jason Mitchell:
Like it’s so hard.

Jeff Sibbach:
Well, the skill of learning.

Phil Sexton:
We’re still open house believers.

Jason Mitchell:
No, I am too. Why not be.

Jeff Sibbach:
Okay, but the difference in our open houses, where we’re going is, is be the listing agent, ’cause then the buyer comes directly to the listing agent now, because they don’t need an agent. So therefore, you win by more listings. Listings beget listings, then, because you market your listing, the buyer comes in, ’cause they don’t wanna talk to anybody except for the listing agent-

Jason Mitchell:
Yup.

Jeff Sibbach:
Is what we started to see more and more and more as they target the … we do a lot of …we’re a good partner with Zillow. We love Zillow. We do a lot of business with them but a lot of those leads are a lot of people wanting to just call us because we’re the listing agent, and it’s putting a lot of pressure on that relationship because now their buyers in my house and then they call back for a second time for a second look, and then they’re like, “Do you know a lender?” And then, they’re like, “Oh, I wanna use my friend,” and I’m like, “The deal’s over. What am I supposed to do?”

Jason Mitchell:
Right. No, but even, take that aside. People will call and they’ll only want to talk to the listing agent because they feel as though they get some type of credit if you’re representing them as well. But the consumer’s wisened up in that process as well and understand now-

Jeff Sibbach:
Absolutely.

Jason Mitchell:
People are more aware that, oh, that’s just money in my pocket. If I use a listing agent, I can probably put more money in my pocket because now they don’t have to pay a buyer broker. I can do this on my own. Now there’s some technical difficulties with that. With dual agency, personally, but at the same time, it is what it is right now.

Jeff Sibbach:
I mean, you know, but as a team, you can be the listing agent-

Jason Mitchell:
100%-

Jeff Sibbach:
And then the other agency can represent the..

Jason Mitchell:
100%

Jeff Sibbach:
So teams can mute that, I believe, and still offer. Everybody can still have representation. ‘Cause I believe everybody should have representation but you still, ultimately, represent the seller. I represent the seller even though I’m in … ’cause I’ll have not met that buyer.

Jason Mitchell:
Yeah. But going back to your average agent, I mean, I don’t know how you survive. I literally sit back and I’m like, “Oh, my gosh-”

Jeff Sibbach:
Well this is where we have our commercial come in, because we’re gonna offer training from the … Agent Truth. No honestly, because they’re gonna have to up their game, they’re gonna need more training.

Phil Sexton:
I’m gonna make an attempt at our first commercial.

Phil Sexton:
This episode is brought to you by Agent Truth. It is a real estate agent coaching business. If you’re looking on how to survive as a part time agent or a full time business, go to AgentTruth.com. Again, that’s AgentTruth.com.

Jeff Sibbach:
But it’s training, not coaching.

Phil Sexton:
Didn’t I say training? I think I said training.

Jeff Sibbach:
It’s too regurgitated. I mean, I’m listening to podcast after podcast of people talking about the same … when is someone going to come up with something that’s innovative?

Jason Mitchell:
I’m so … I just tune that shit out. I’m so sick and tired of everybody being a coach and this isn’t me hating. This is me being honest with the fact that, dude, seriously. Stop your bullshit! Enough is enough. Everyone’s a coach now. Be a lion in a pack of sheep. It’s like, Dude are you seriously?

Jeff Sibbach:
Well, here’s what we learned. We learned that coaching in the industry is just defined as this … did you make your calls, did you set your appointments, did you … like that’s what they call coaching and to me, the industry’s gonna need more than just how many doors did you know on? You’re actually gonna have to improve the … what I was talking to you pregame about … not just the experience but making the ball plater better, right? Like making the agent’s gonna have to get better at their job. I mean, we’re seeing everything moved to off-market.

Jason Mitchell:
Listen, I dare somebody … what is working hard to you and then what is working hard to me, and maybe that’s where the coaching comes into play so you can actually see, “Oh, that’s real work.” Right? Seven days. Relentless. Now, granted, not everybody has dreams and visions of doing what necessarily we want to do, but at the same time, you still gotta work hard and you gotta work harder now because it’s harder to get to the consumer. But what is effort? How do you define effort? Showing up to the office at 9:30 and leaving at 3:30. That’s a six-hour workday. What are you talking about?

Phil Sexton:
Yeah, but Jason, you were in that business where part timers are still for real.

Jason Mitchell:
Not even part timers. Full timers.

Phil Sexton:
Full timers are still … some of them of 30 hours, 35 hours a week and they’re able to-

Jeff Sibbach:
It’s full time.

Phil Sexton:
I’s full.

Jeff Sibbach:
That’s what his argument is, isn’t it?

Jason Mitchell:
No, but that’s not … I know you’re right. Full-time is…

Phil Sexton:
We meet with them. We talk with them. And they’re able to make a decent living. This business though is still a little bit of an attraction for the entrepreneurs in this world that want to get into something that they can build on their own

Jeff Sibbach:
Right. I wanna be able to sleep in.

Jason Mitchell:
They gotta be able to do the work.

Jeff Sibbach:
Right? Get off work early.

Jason Mitchell:
They gotta be able to do the work.

Phil Sexton:
They gotta be able to work.

Jason Mitchell:
Because here’s the thing. They’ll sit there paralyzed. Like I know what I need to do, but if they don’t know how to do it, they don’t ask how to do it, but a lot of this stuff, like I was telling Ken, who runs our operations … you know, it’s funny because we were doing something and I’m like, I don’t remember how to do that. And he’s like, he’s sorry. He’s like you don’t and they were making fun of me ’cause it was something minute but they do it everyday. I just haven’t gotten involved with it, in years.

Jeff Sibbach:
Right. Right. Right.

Jason Mitchell:
And I turn back and I go, I go, I go…

Jeff Sibbach:
It’s always good to be the boss.

Jason Mitchell:
Don’t forget, I built this company.

Phil Sexton:
What word did you really use? You know like…

Jeff Sibbach:
So it wasn’t the input sheets?

Jason Mitchell:
Right. Right. Right. But the point is this, is that, even to this day-

Phil Sexton:
Do the donkey sign..

Jason Mitchell:
Yeah, like do the donkey sign. I don’t know. But the point is, is that, what I’m doing has evolved. Something different. But I’m still working…

Phil Sexton:
Yes.

Jason Mitchell:
As hard, if not harder now because now.

Phil Sexton:
Nah, you chase bigger deals-

Jason Mitchell:
Yeah, so they find themselves paralyzed sitting there like, “Oh, I don’t know what to do.” Well, figure it out! That was my point. I had to figure it out.

Jeff Sibbach:
Right.

Jason Mitchell:
It was just me.

Jeff Sibbach:
Yeah. They want more training than that. It’s tough.

Jason Mitchell:
So figure it out. Yeah but then it’s like, how hard are you really willing to work? Like, are you willing to work an 11-hour Saturday?

Phil Sexton:
Right.

Jason Mitchell:
Are you willing to work an 11-hour, 12-hour Sunday?

Phil Sexton:
Yeah.

Jason Mitchell:
And a lot of people are like, “But I worked on Sunday.” Listen, a nine to one open house isn’t a full day. It’s not. That’s not work. And you know what, for people that actually have a job that kind of sucks to go to … my next door neighbor’s redoing his roof. Those dudes are there at 5:30 in the morning and they’re working until like eight at night. Like you don’t see them saying, “Ah, I’m gonna go … I’ll be there from like 11 to two today.” They wouldn’t have a roofing business, you know what I’m saying? But in real estate, it’s acceptable that, I have a couple of meetings today, and then I’m gonna get some paperwork done, and I’m gonna work on a few things.

Jason Mitchell:
Well, what is work on a few things? I always see people say things like, “I’m working on that right now.” Well, what does that mean? What are you working on? How are you working on it?

Phil Sexton:
It’s a mental exercise that I do with myself.

Jason Mitchell:
Yeah! That’s what it is! Working on what?

Phil Sexton:
I’ll be done in a minute.

Jason Mitchell:
Working on what, man? It’s like, it’s just … but there’s so many things you can do in this business to make money, whether it be, again, going back to building relationships. Building relationships with agents to send referrals in different parts of the country. There’s just so many different ways to create revenue in this if you’re smart and you’re willing to do the work. The problem is that some people aren’t smart, but they’re willing to do the work. Others aren’t willing to do the work but they’re super smart. To find those people that have both: work ethic, drive, and are smart. That’s rare commodity.

Jeff Sibbach:
Right.

Phil Sexton:
So it’s odd that I have two Number Ones in the room? Is that what you’re saying? Like this is a rare commodity.

Jason Mitchell:
I would say so.

Phil Sexton:
That’s in the room right now, right? ‘Cause I think that to give you guys both credit, you’re obviously in the top of the game, right, and so you gotta have hustle. I know that you both have hustle. And you gotta be smart, which I know that you both are, but for, if you’re talking to agents that are chasing you right now. Right? ‘Cause if you’re Number One, that means everybody else in the marketplace is chasing you.

Jason Mitchell:
Mm-hmm.

Phil Sexton:
Right? What advice do we give them? So as we’re working on the podcast…

Jason Mitchell:
Don’t…

Phil Sexton:
Trying to help them put the consumer first…

Jason Mitchell:
Listen…

Phil Sexton:
‘Cause sometimes it’s easier to chase somebody.

Jason Mitchell:
Yeah.

Phil Sexton:
Then it is to lead the pack.

Jason Mitchell:
Well, it always is. It always is. But here’s the deal, in 2012, I wasn’t sitting there saying I’m chasing Walt Donnelly. I had to stay in my own lane. I wasn’t saying, “Hey-”

Jeff Sibbach:
I did.

Jason Mitchell:
No, I’m saying, at some, I want to pass Joppy or Walt, or whoever it was at the time. Right? Who I was saying, they’re Number One.

Phil Sexton:
Yeah.

Jason Mitchell:
My dream.

Phil Sexton:
It can be done.

Jason Mitchell:
Listen, my point is this. I wanted to surpass them but I knew it wasn’t going to happen in 2013 when I’m here in 2012.

Jeff Sibbach:
Right.

Jason Mitchell:
I had to be smart about-

Jeff Sibbach:
Yeah.

Jason Mitchell:
Where I am in my business and be strategic about the growth and be smart about it. And at some point, hopefully, I’ve grown the right way to where I can hopefully surpass them, but it’s not gonna happen next year. The problem with people is this, everybody wants instant gratification. Everybody thinks it’s so easy to make it in this business. They don’t wanna build a business. They’re transactional based. They care about that one transaction. And that’s not how you grow. You grow by building something. You grow by building your brand, your value proposition, everything. And if you’re not willing to put in … you said it.

Jason Mitchell:
I’ve been in this business 16 years. So for somebody that’s two, three years in the business, don’t compare you to me. That’s not fair. Aspire to pass me. Right? Hey, one day, I’m gonna do 300 million. I’m gonna do half a billion. I’m gonna do 7 Up. great. But you have to have the fortitude to want to build that and also the drive to say, and also the intelligence to sit back and say, “But it’s not gonna happen in 2020. In 2022, 23, I wanna hit 300 … if you’re doing 20 million this year, you’re not gonna do a hundred million next year. You’re not. It’s just not gonna happen.

Jeff Sibbach:
No, you’re right. You’re saying everything that I believe. Actually, I listen to Gary B. say the same message over and over again, this morning, is that it’s a long game. It’s not a short game. And unfortunately, it’s a lot of work to get there.

Jason Mitchell:
Totally.

Jeff Sibbach:
And that it is … unfortunately, was like, I remember the number for Walt Donnelly was like a 178 million but to your point, I was like, “Okay, so then, I need to do 300 million.” Right? Like, my path was not worried about him, just like, what was my path to 300 million and it was the lab, but we only did 223 last year, so we’re almost there.

Jason Mitchell:
That’s a hell of a year.

Jeff Sibbach:
Well, it was a good year but …

Jason Mitchell:
But my point is, you have to be, Lisa Robert’s an agent in town. She’s a great agent. I’m very close with her and she’s very young and she crushes it. And I talk with her a lot about be smart about growth, but also, you’re not gonna get there tomorrow. Just continue to do what you do, ’cause the path that you’re on is explosive.

Phil Sexton:
It’s a good one.

Jeff Sibbach:
Yeah.

Jason Mitchell:
Yeah. And it takes a killer like that, that now she’ll do 50, 60 million this year. Two years ago she was doing 15. 20. It takes time. And then, once you’ve built that and you have the brand, now you can bring on people to help you and support and od the little things. Have buyer’s agents. That’s something that can help you. If you’re doing 20 million, 30 million, and you’re hanging your own lock boxes. That’s just stupid. Like, shame on you. Invest in people-

Jeff Sibbach:
Well, I find that it’s the hardest thing for agents that want to grow is that they still want to do everything. Right? They can’t. To me, I use a rule that was I just was trying to find someone that could do it 80% as good as I could do it, meaning that, you just have to have that mentality. ‘Cause sometime you find people that do it. Like Phil’s done it better. Marisha’s done it better. [inaudible 00:42:19] each of their jobs, they’ve done better than I could, but you have to be able to accept that at the beginning, they’re only going to be able to do 70 or 80 percent of what you did, but eventually, they’ll surpass you. But I mean-

Jason Mitchell:
Know the real struggle. Well, first of all, people are control freaks, number one.

Jeff Sibbach:
That’s what I’m trying to say.

Jason Mitchell:
And you know what, okay, that-

Phil Sexton:
Who? Anybody seen one of them?

Jason Mitchell:
That’s fine but here’s the deal. My buyer’s agents … they’re much better than me.

Phil Sexton:
Right.

Jason Mitchell:
They do it six, seven times a month, constantly, over and over and over again. They’ve mastered it at this point. Right? My agents that’ve been with me for a while. But you know what, my epiphany was this … I started to get some high quality leads in. I hired one buyer’s agent who’s still with me. She’s my Number One agent. Her name’s Claire. And Claire did 26 million last year. Something like that. She did 98 deals and she’s just a monster. She’s a machine.

Jason Mitchell:
And so all of a sudden, I’m going, “Well, wait a minute. I have a $250,000 deal in Buckeye. Do I wanna go to Buckeye? No, I don’t wanna go to Buckeye.” But Claire will go. Claire wants to build her book of business. And then I was like, I got more of leads in. Now, I need another Claire. They’ll go out and do it. They’ll go out an hustle. You know, they’ll go out and grind.

Jeff Sibbach:
Yeah.

Jason Mitchell:
And then all of a sudden, now they’re servicing the client better because, why is it fair that if I don’t wanna do this, why is it fair that I’m representing that client? That’s not fair.

Jeff Sibbach:
Okay, so then, guys, one more thing. Only ’cause I heard this morning that the two hardest things for elite teams, so, you’re an elite team, is recruitment and retention. So how do you find the next Claire?

Jason Mitchell:
Well, we don’t recruit in Phoenix. We’re recruiting in other strategic marketplaces. We recruit when I know I have enough deal flow to add an agent. We don’t lead by agent count and I think that’s a massive … now listen, that’s not fair. There’s different business models that teams run, okay? If you’re doing training and coaching and all the other stuff, that’s a great value play. If you think you’re going to enjoy my team, you’re gonna get great training, you’re gonna see me once a month, like helping you, and we have great people to help you understand the tech and become a better salesperson.

Jason Mitchell:
But we’re not sitting there having daily training sessions and stuff like that. That’s not what we do, right? But there’s teams that do, do that. That’s a value prop. Great! But at some point, if you’re not providing leads, they’re going to leave you because they’re main goal is to build your book of business. And so, for us, I know in Phoenix, for example, I’m about where I can, capacity-wise until I add some more partnerships, and when I do that, then I’ll add [crosstalk 00:44:45]- So and that’s why our attrition is so low. Because once you’re in our team, like I said, our arbitrage is three and a half to one. That’s huge, you know. So once you’re in and you get the systems, and you get the point.

Jeff Sibbach:
For every three deals that they close from you, they have one of their own.

Jason Mitchell:
Yeah, it’s three and a half, so we close and a half Team Gen deals compared to everyone’s Self Gen deal. That’s our team average. You can’t leave that because that’s 40 deals a year. And even if it was 25, 30 deals a year, that we add to your book of business … A) that’s about 80-100 grand but B) the next year if you do the same number, now you have 60 people that you get self-generated business from because we’ve led it to you.

Phil Sexton:
Right.

Jason Mitchell:
But that’s where that longevity thing that I talk about in this business plays out. It takes time to build your business. So you gotta be willing to put in the time. It doesn’t happen overnight and a lot of agents aren’t. And I also say this, “Your first one or two years in the business. It’s supposed to be hard. Like it’s not supposed to be easy. Like you’re supposed to wake up and be like, ‘Shit, I have to go get a deal. I have to go eat.'” That makes you fight. My internship at [inaudible 00:45:51] Homes in 2002. I made eight bucks an hour. I was picking up cigarette butts and I was driving an hour and 20 minutes from South Detroit to North Rochester. I made zero money.

Jeff Sibbach:
Right.

Jason Mitchell:
But you know what? I had a goal. I wanted to get hired so I could get hired. And then I was trained for a year. Almost a full year in training, making 15 bucks an hour. So I put in 16 months of bullshit work when I was learning. Like hard work-

Jeff Sibbach:
Non, deal flow…

Jason Mitchell:
Right. Not to mention, four years of undergrad. Getting a masters. You put in your time. You put in the grind so you can reap the benefits down the road but even with Poulty, it wasn’t like, oh, you work at Poulty, go make 600 grand. Uh, no! You have a lot of stuff you have to learn. So that grind work is what people are afraid of, but if you’re sitting there and you’re gonna enter real estate, you need to have some savings or you need to have something that … we know how that roller coaster goes.

Jason Mitchell:
But where it works out is in Year Two, Year Three, all of a sudden you have 20, 20 closed clients and you’re constantly staying in front of them to give them a referral. Then you’re meeting with people. Now you build a name and you build a reputation. Then you can maybe add a buyer’s agent. This does not.

Phil Sexton:
Deals start to pop. You don’t even know sometimes a deal comes across the plate like you didn’t expect in your projections, and now you’re like, “I get it!”

Jason Mitchell:
Yes.

Phil Sexton:
It starts to build upon itself. The Compound Effect is one of the books that Dan Hardy wrote. Are you familiar with it?

Jason Mitchell:
I’ve heard of it.

Phil Sexton:
The concept is there, where, the real estate business, to me, is a big version of The Compound Effect, where as long as you stay in front of the people. I joke about it ’cause it’s kind of true, is our best listing strategy is to sell a buyer a house and then never let them forget about us.

Jason Mitchell:
That’s right. That’s right.

Jeff Sibbach:
‘Cause that’s essentially what you’re building for all your agents is as they’re representing the buyer, now they have a client as long as they take care of that client forever.

Phil Sexton:
In a house that they’re willing to sell, that they would like to have a listing in. And then in area that they would like to have a listing in.

Jason Mitchell:
Yup.

Phil Sexton:
Right?

Jason Mitchell:
Yup. And then if you take of ’em post close and you’re constantly staying in front of ’em and touch points, tactile touch points, stuff like that. We give that for our agents.

Phil Sexton:
Like brownie recipes, sports schedules … we used to do these car magnets that said, “I love Jason Mitchell” …

Jason Mitchell:
I would put like home recipes on there-

Phil Sexton:
Yes!

Jason Mitchell:
And someone would be like, “No, but people like that.” And you know what it comes out to. Honestly, a lot of this stuff. It’s not a matter of what you do. It’s just the fact that you do it.

Phil Sexton:
Yes.

Jason Mitchell:
You’re just there!

Phil Sexton:
Also, I’m a firm believer that people love to watch their rise. And so, if you have communications with these hundred people I your system from 2003-

Jason Mitchell:
Absolutely.

Phil Sexton:
And they see what it looked like then and they see what it looks like now, and they see, they appreciate the difference, they see. It’s more believable.

Jason Mitchell:
People love bragging about you. That was the one thing as I was coming up and as I made my way doing, personally, over a hundred million in volume over the past four years, and our team, now where we’re at, all of a sudden, now people wanna be around you. It’s like they want to say, “Oh, that’s my agent. Or that’s my buddy. Or that’s my thing.” You become…

Phil Sexton:
Or that’s my podcast guest.

Jason Mitchell:
That’s right. But you know what I’m saying, you become cool.

Phil Sexton:
Yeah.

Jeff Sibbach:
Yeah. Yeah.

Jason Mitchell:
You become cool because you’re successful. And that’s a great feeling. And people tell me all the time, “Oh my God, you’re so successful.” This and that. I don’t give a shit. I’m so unfocused about saying I’m successful. I’m focused. I have a goal of where I want to be-

Jeff Sibbach:
We can’t take too much of his time. We gotta let the guy go.

Phil Sexton:
Oh, I’m sorry.

Jeff Sibbach:
In conclusion, we wanna find out, what is your vision?

Phil Sexton:
While you think about what you wanna say, I can’t help but wonder if you’re gonna be the cool, successful kid in the donut world here soon.

Jason Mitchell:
I hope so.

Phil Sexton:
I can’t help but think that.

Jason Mitchell:
I’m gonna send you guys our first dozen donuts.

Phil Sexton:
Deal.

Jason Mitchell:
Buster George’s donuts.

Jeff Sibbach:
Nice!

Jason Mitchell:
And I’ll make sure you’ll be invited to come down.

Phil Sexton:
How’s that not fun for everybody? You said donuts. Named after a dog.

Jeff Sibbach:
Yeah.

Phil Sexton:
Named after a dog. It’s just cool.

Jeff Sibbach:
Awesome!

Jason Mitchell:
So yes. But listen-

Phil Sexton:
But yeah. The vision of it. Right?

Jason Mitchell:
Look, I’m gonna open up marketplaces across the country and have our trusted partners trust us to close those deals at a higher ratio than anybody else, while providing our agents great system brand technology in order to close more business than they ever thought possible.

Jeff Sibbach:
While taking the My Home Group brand with you.

Jason Mitchell:
Well, we’ll do it together.

Jeff Sibbach:
Of course.

Jason Mitchell:
But yes. My Home Group, when I launch, we open MHG and we open JMG. Typically, JMG leads the charge because I can instantly get business in the door because of our trusted partners.

Phil Sexton:
JMG leads the what?

Jason Mitchell:
We lead the charge … because I can open up the doors quickly and get deal flow in quickly.

Jeff Sibbach:
Yeah.

Jason Mitchell:
From our trusted partners-

Jeff Sibbach:
Sure.

Jason Mitchell:
As long as … what keeps me up at night is, Am I doing something wrong? Am I doing something to where I’m jeopardizing anything? And the answer is, for right now, everything is good. So I just have to keep improving so our partners can keep trusting us but we’re gonna take the same model. Right now, we’re gonna open Salt Lake next month and Dallas next month. And we’re gonna go onto Charlotte. And I’m gonna have 20 marketplaces plus, across the country with maybe eight to 10 agents, and we’re gonna just become an assembly line of deals in all these different marketplaces and be smart about our talent. ‘Cause I can hire talent when I keep it tight, I can hire talent…

Jeff Sibbach:
Right.

Jason Mitchell:
‘Cause there are gonna be so many high quality leads. If I expand it, I gotta be cognizant of the fact that, hey, look, I may lose some people. So I’m trying to do it strategically, and where my partners say, “If you go here, we got some good deal flow. Go get it!” So my goal is this. It’s very simple, by 2021, I wanna do a billion dollars. We’ll do over 500 million this year. But I wanna hit a billion in two years, and as long as, again, I can continue to create more relationships.

Jeff Sibbach:
You’re after Ben.

Jason Mitchell:
Who’s that?

Jeff Sibbach:
Ben Cavernieros. He’s the Number One agent in the country. He’s the first guy to do a billion dollars. But he does it through, from what I understand is that, he refers a deal to a builder and then they close it. You’re actually doing the deals. His numbers to me, I don’t now that they’re-

Jason Mitchell:
I don’t know.

Jeff Sibbach:
Referrals are not. I don’t count referrals.

Phil Sexton:
I think you’re just after Jason. Right? Your after to figure out what’s in your mind-

Jason Mitchell:
He’s after a billion dollars.

Phil Sexton:
A billion dollars.

Jason Mitchell:
Yeah, and that’s not like saying, “I wanna hit a billion.” It’s one of those things where I don’t know where it goes.

Phil Sexton:
Yeah.

Jason Mitchell:
I don’t know. But I know the model works.

Phil Sexton:
Right.

Jason Mitchell:
And I know I can scale it and I know from a perspective-

Jeff Sibbach:
We should work for him. I’ll take Utah.

Phil Sexton:
I like skiing.

Jeff Sibbach:
Okay. I could do Dallas.

Jason Mitchell:
Dallas is my favorite market. Well, here’s the thing. It’s more about state, so right now we started in Miami but now we’re open in Tampa next week and then we have Orlando two weeks after. Once you get into the state. Once you get the entities and everything set up now. That’s the hard part is like getting all that shit set up and then whatever, but, once you get good leadership in place and you states like Texas. So once we get established in Dallas, obviously, we’re gonna…

Jeff Sibbach:
MLS partner on our hands for … I’m coming out with … we found an agent certainty score, where we give the agent, ’cause I think that to try and differentiate the difference between … ’cause the National Association of Realtors has not really provided differentiation between an agent’s done one deal and you.

Jason Mitchell:
Oh yeah.

Jeff Sibbach:
Or me. Right.

Phil Sexton:
Stratification?

Jeff Sibbach:
Stratification? What’s that?

Phil Sexton:
I think that’s the word that I heard this week that I love. Because there’s no stratification for realtors. Everybody’s a realtor. And what we’re trying to do with it, in certainty scores, is to put a level of which are the agents are the ones that are believable.

Jason Mitchell:
I like it.

Jeff Sibbach:
Yeah. Yeah. We do love the MLS and we love our partner over in … Matt’s a great guy, but the reality is, is that it’s gonna threaten the realtor.

Jason Mitchell:
Yes.

Jeff Sibbach:
It’s because the value of the realtor is going lower and lower because they’re trying to make it equal for everybody but now that’s why the consumer doesn’t trust us, because they’re like, oh, you’re all the same.

Phil Sexton:
Yeah.

Jeff Sibbach:
I didn’t have a chance to articulate myself and you’re just casting me off as the same as the lady you talk to down the street. I don’t think that’s fair.

Jason Mitchell:
I don’t disagree with that whatsoever.

Phil Sexton:
As a thank you for coming on our show, we’re gonna provide you with your free agent certainty score, by going to AgentTruth.com. Is that where it is?

Jeff Sibbach:
Yes. Yes.

Jason Mitchell:
Sweet.

Phil Sexton:
We’ll send you yours. Yeah. Yeah.

Jason Mitchell:
Appreciate it.

Phil Sexton:
‘Cause it’s still a work in progress and it’s fun to get people’s reaction to it as we’re looking at-

Jason Mitchell:
Yeah, I’d love to see it.

Phil Sexton:
Different data points that we can see that helps us, I don’t know, differentiate you from-

Jeff Sibbach:
When you get an MLS score, you get a consumer marketing score, you get an Experian score. So we have five different categories of score. Meaning like, when you list a house, what is your original list price to sales price ratio?

Jason Mitchell:
Got it. Right. That’s cool.

Jeff Sibbach:
Well, to me is one of the things I struggle with, with traditional agents is, I’ve been in the business 25 years and I look and they’ve done 27 deals.

Jason Mitchell:
Right.

Jeff Sibbach:
And I’m like, I don’t … when you tell someone you’ve been in the business 25 years, I think that they’re expecting a level of certainty from you but if you only do one deal a year, it’s a different experience.

Jason Mitchell:
No, I love the idea. I love the concept of it for sure.

Jeff Sibbach:
Yeah.

Jason Mitchell:
No doubt. So awesome.

Jeff Sibbach:
Well, thank you so much!

Phil Sexton:
Jason Mitchell!

Jeff Sibbach:
Yeah! Wow!

Phil Sexton:
Spending an hour with us! We appreciate it! Yeah, absolutely.

Jason Mitchell:
Thank you guys.

Phil Sexton:
Absolutely. Thank you for coming in. You’re awesome!

Narrator:
Thank you for listening. Now more than ever, it’s important to put the consumer first. Check us out on all major streaming platforms like SoundCloud, iTunes, Player FM, Google Play, and Stitcher. For information about one-on-one coaching or Solution events, text 480-530-7972.

Photo Seduction

Photo Seduction is trying to entice buyers to get out from behind their computer, to leave work or home, to get out from their car, to want to come see the house in person. Currently I find, especially a listing with a lot of functional obsolescence , you need more people to come in the house.

Photo Seduction

Photo Seduction is the ability to get more traffic to the house. The more buyers you get to come look, the more buyers you get interested, thus increasing demand. Also, getting more buyers in the house will help educate your seller if the house is overpriced.

How to Get More People to Come See Your Listings

The key to Photo Seduction is making the house looks great, not the furniture. Too much furniture and accessories can make the house look small in listing photos. How many listing photos do you need? I think you need somewhere in the range of 7-15 photos for you average listing. The real estate industry continues to feel a need to demand more photos, but I have sold homes in all price ranges with only 3-5 listing photos. If you are going to have limited photos, what do you need photos of? Generally, a picture of the outside of the house and key components of the inside. Some key components are the kitchen and the master bathroom. It’s important to make sure photographed spaces are uncluttered, well lit and the rooms are freshly painted. The better the pictures look, the more likely buyers will desire to see more. The curiosity to see more creates seduction, thus bringing more buyers in the house and creating more demand for you seller!

Listing Strategies

Get Better at Selling Your Own Listings

It is easy for real estate agents to get complacent in the marketing of their own listings beyond the hundreds of relationships their brokers and the association have already concreted for them.  The past success of this is still winning new listings and sales. The majority of time in the recent past, another realtor would bring their client after the realtor emailed them the home or they found limited information online and contacted their agent to show them and get more details.  In years past, the buyer did not have the access to information the internet now provides, hungry for house details, more consumers would engage agents earlier in the home buying process relying on them to provide this information, allowing this old school marketing to reach all consumers. This is only one side of the new world of real estate.

Realtors now have more access to consumers in the home buying process but its going to require more effort to draw them out.  

Realtors have traditionally spent more time trying to attract other realtors because they were the one in charge of getting their client to come.  This model is weakening as the buying public is out in front of the search process exposing themselves to listing agents like never before.  This is very cool as next generation marketing methods are changing as we speak away from traditional models. This will cause further innovation in the world of real estate and what has encouraged us to come out with the Real Estate 2020 podcast, to discuss the evolution of the industry and what it takes to be successful.

The advancement of technology, the explosion of photography and the acceptance of realtors letting the consumer control the house finding has decreased the engagement of their traditional buy side agents and empowered the consumers to shop alone until ready to write.  

This approach is not exposing the consumer to portals to get their data.  This has also changed the influence that agents have on reaching the consumer directly through effective and enhanced market brought online.  This enables listing agents to reach their intended target consumer directly, the buyer, making it easier to sell the house versus selling through the agent.  The intent is not to cut out the buyer broker (I double dipped less 5% of my sales as I keep my reputation high) and often buyers have an agent they prefer to write the contract, but to get more traffic through your house in hopes of selling faster and for more money.  Your goal as a listing agent is to drive maximum traffic through your listings, which leads to faster sales for higher return for the seller.  Advertising directly targeting the consumer goes way beyond photos in MLS that are syndicated to agents and consumers, and now leading agents will win deals at massive rates when they understand how to leverage this paradigm shift.

Now that consumer friendly companies that are in control of the data, like Zillow, Trulia, Homes.com and Realtor.com, that have eloborated and expanded the offering gaining the trust of consumers.  I am talking about how realtors can leverage this versus selling against it.  These portals are accepting consumer contact information hand over fist.  It is best to get engaged with the portals, understand the offerings and benefits in hopes of luring their viewers to the homes you are trying to sell and this does not mean buying the leads. The best way to do this is clearly the open house.  We have seen spectacular results having 50% of our homes sell from open houses over the past 6 months, which amount to 4-5 sales per month.

Listing Strategies

Selling Challenges

Most sellers are unsentimental about their homes, instead they prioritize profits from the sale over concerns about the home’s future under a new owner. As reported in the Zillow Consumer Housing Trends Report, half of sellers say maximizing profit is the most important goal, while 38 percent of sellers prioritize selling within their target time frame, and 12 percent say making sure their home has a good next owner is the most important priority.

TIMING CONCERNS

Urban sellers are more concerned compared to suburban sellers about selling within their target time frame. Urban sellers are usually selling in competitive markets where they often get their list price or higher, so it’s little surprise that these sellers are less likely to say that maximizing profits is a top concern.

SELLING FOR THE RIGHT PRICE

When sellers reflect on the entire selling process, they are overall satisfied. Sellers who do face issues during the sales process say the top four they find difficult are timing the sale with the purchase of their new home, selling within their desired time frame and price range, and entering a competitive buyers market after selling. As expected, younger generations seem to experience slightly higher levels of difficulty than older sellers. All generations find most aspects about the process easy to navigate or deal with. Baby Boomers and Silent Gen sellers report breezing through some of the activities that Millennials and Gen Xers rate difficult. Yet, as crazy as the selling process can be, most of those sellers will still go on to buy another house, and find themselves back in the market as sellers in another decade.

Are you efficiently assisting your client through the home selling process ? WE CAN HELP…LET’S GET STARTED TODAY!