#627: Real Estate Market Changes with Brian Mayer

John Kitchens Coach Podcast | Life. Coaching. Real Estate

#627: Real Estate Market Changes with Brian Mayer

In this episode, real estate industry expert Brian Mayer joins John for an insightful conversation on the challenges and opportunities facing real estate agents today. As the market undergoes significant changes, from increasing house prices to new commission structures, agents must adapt to survive and thrive.

Key Topics Covered:

1. Market Transition & Real Estate Industry Challenges John and Brian start by discussing the two major issues affecting real estate: declining affordability and the NAR lawsuit. Home prices have risen significantly, and affordability is at its lowest in decades. The NAR lawsuit has resulted in a shift in how buyer-agent commissions are handled, moving from being part of the listing agreement to the time of offer. This shift requires agents to rethink their approach and articulate their value more clearly, especially when working with buyers.

2. Adapting to the New Commission Structure The new rules mean buyer agents will now have to negotiate their commissions at the time of offer. This change presents a challenge for many agents who are used to receiving their commission from the seller’s side. Brian and John emphasize the importance of having a well-defined value proposition. Agents must be able to explain how their services benefit buyers and justify the commission they are asking for.

3. Articulating Value & Building Trust A critical theme throughout the episode is the need for agents to focus on their value. The real estate market is becoming more transactional, and buyer agents will need to offer more than just showing homes. John and Brian recommend adopting a consultative approach—one that focuses on understanding the buyer’s needs, their financial situation, and their long-term goals. Agents who can provide a higher level of service and demonstrate their expertise will have a competitive edge in this new environment.

4. Focusing on Motivated Sellers In a shifting market, agents must concentrate their efforts on motivated sellers—those who need to sell due to life circumstances such as divorce, job relocation, or financial distress. John and Brian discuss how agents can identify motivated sellers by using data and targeting marketing efforts. By working with clients who are more likely to need their services, agents can create a more stable business.

5. Listing Agents vs. Buyer Agents The episode highlights the benefits of being a listing agent in the current market. With fewer transactions and high competition, listing agents often have more control over their compensation and can secure commission agreements upfront. Brian and John urge agents to shift their focus toward listings, where there is less uncertainty and more potential for predictable income.

6. Creative Solutions for Buyer Agents For those working as buyer agents, John and Brian suggest becoming more entrepreneurial. Agents must find creative ways to structure deals, including finding solutions to ensure they get paid. Negotiating commission as part of the purchase price or exploring financing options are just a couple of strategies that agents can use to adapt to this changing landscape.

7. Leveraging Data & Technology Both hosts agree that data and technology are vital tools for today’s real estate professionals. Accessing motivated seller data and using technology to streamline processes can give agents a significant advantage. Furthermore, leveraging tools like CRM systems and marketing automation can help agents connect with more potential clients and close more deals.

8. Mindset & Professionalism John stresses the importance of mindset in navigating the current market. Agents need to adopt a CEO mindset, focusing on running their business like a true professional. This includes setting goals, staying organized, and continuously improving skills in marketing, sales, negotiation, and leadership. The hosts also emphasize the importance of getting a coach or joining a team to stay on track and improve one’s business strategy.

9. Positioning for the Future John and Brian remain optimistic about the future of real estate for those who are willing to adapt and evolve. They foresee a divide in the industry, with agents who focus on providing high-value services and leveraging technology thriving, while others may struggle. The key is to stay committed to learning and improving, becoming not just an agent but a trusted advisor.

10. Higher-End Market & Motivated Buyers A crucial part of positioning for future success lies in focusing on higher-end clients and motivated buyers. Brian advises agents to focus on those who have to move due to specific reasons and those who have the financial ability to act in the current market. Working with financially capable and motivated clients will result in more successful transactions.

11. The Future of the Real Estate Industry Despite the challenges, both John and Brian agree that the real estate industry will continue to be an essential part of the economy. However, there will be a thinning of the herd, as only those agents who adapt and adopt a professional, value-driven approach will survive. Agents who position themselves as experts and trust-builders in their communities will continue to see long-term success.

Call to Action:

If you're a real estate agent feeling the pressure of today's market changes, don’t wait. Whether you need help refining your value proposition, want to shift focus to motivated sellers, or are ready to leverage technology to gain an edge, now is the time to act. Visit JohnKitchens.co to learn more about how you can take control of your real estate career, work with John, and gain access to tools and resources that will help you succeed in this evolving industry.

Keep following the John Kitchens Podcast for more expert advice, and stay ahead of the curve in real estate!