Episode #36 - Answering Objections Part #1

Introduction

• Bob Mangold shares his favorite way to handle objections: live interactions
• Emphasis on the importance of scripting and practice

Purpose

• Record a podcast series based on live Q&A sessions
• Provide real-time answers to common objections in real estate

Participation

• Audience participation via Zoom
• Participants must consent to being recorded

Key Topics Covered

1.     Importance of a Solid Presentation

• Addressing objections before they arise
• Tailoring presentations to cover crucial points: highest price, quick sale, minimal hassles

2.     Handling the "Not Ready to Sign" Objection

• Asking what concerns remain
• Importance of follow-up with useful resources like books or information pieces

3.     Commission Objections

• Addressing commission concerns upfront
• Using terms like "compensation" or "fee" instead of "commission"

4.     Effective Follow-up Strategies

• Sending additional helpful information after the initial meeting
• Maintaining communication to stay top of mind

5.     For Sale By Owner (FSBO) Approach

• Using text messaging for initial contact
• Creating pattern interrupts to engage FSBOs effectively

6.     Presenting Value to Clients

• Explaining how professional processes can net sellers more money
• Discussing how to create competition among buyers

7.     Handling Specific Objections

• Addressing objections about interest rates and selling
• Discussing debt analysis and effective interest rates

8.     Unique Selling Points

• Emphasizing how to protect clients' equity
• Using effective interest rate discussions to demonstrate value

Practical Tips for Agents

• Developing a comprehensive listing presentation
• Utilizing various communication methods to follow up with potential clients
• Addressing objections with confidence and clarity

Encouragement for Agents

• Understanding the importance of being prepared
• Recognizing that objections often stem from incomplete presentations
• Viewing objections as opportunities to improve

Closing Remarks

• Importance of continuous improvement and practice
• Invitation to join the Real Estate Asset Advisor Network for more resources and support

Links and Contact Information

• Join the Facebook group: Real Estate Asset Advisor
• Schedule a call: www.brainstormwithbob.com
• Webinar registration: www.creaoverview.com

Final Note

• Remember: If you list, you last. Go out and take some listings!
• If you can't click the link for some reason, just ask me to give you the link only, and I will help.

Join our Facebook Group at: https://www.facebook.com/groups/realestateassetadvisors

Visit our website to watch replays of our Wednesday "Elevate Business Briefings" at: www.RealEstateAssetAdvisors.org

Download a copy of my book, "If you list, you last!" at www.IfYouListYouLast.com

Transcript

The purpose of this today is actually to be a podcast, or it could be a series of podcasts, depending on how many questions we have, how long it goes. If you've ever seen me do this live on stage, it's my favorite thing to do. I have a blast with it. Doesn't mean I don't like doing it on Zoom, but at the end of the day, it's part of the reason that I like it is it really does prove the point  that when you can take and  script yourself, because basically everything I'm going to do with you today. 

The difference is I've practiced it and done it so many times that it just seems all natural.  When you can get yourself to that point,  then you're going to see that you'll change your business. So one of the things I need everybody to do, because I will use this as a podcast. I'm not using it to sell anything or anything like that.

It's literally, I could record a podcast and write down, Hey, here are the objections I hear and answer it. But to me, it's a lot more entertaining if we do it live with people asking real questions. One of the things I just want you to do is type in the chat box for me and everybody's got to do it is that you understand I'm recording this and I'm going to use it for another purpose.

So come on, I'm going to use that and people are going to see you. So just type yes, in the chat box that lets me know it's okay to do that for you.  If not, you could still stay, but  you just.  Can't ask a question that could be on screen. 

So at the end of the day, my goal is pretty simple is to just let you guys fire it out. What I'd like to do is have you  put your base question in the chat box and then I'll go through and unmute. I think I've unmuted everybody. So you have the ability to control your, your ability to talk. Just do me a favor.

Don't jump in when I'm doing this with somebody else. So I'm going to let you ask your question  and then I will. But you can unmute yourself and I'll role play that with you.  And then when I'm done with you, if somebody else has something that they want to add or throw something out or whatever that is, we can do that afterwards.

But just don't interrupt that person. So basically I'll let you throw out the objection, uh, role play that answer with you and then anybody else who's got, has comments or wants to add things to it. We'll do that after each one. So cool. All right. So it looks like I got everybody that said yes. So we're good.

All right. So put in the chat box for me, the objections that you get or that you struggle with,  and then I'm going to answer it. I'll just take them in order as they come in, to be honest. 

So throw it in the chat box. I have nothing prepared, right? And none of you guys have pre sent me anything. So I always joke that, Hey, I'm doing this live on the wire, right? There's no net. I don't have anybody here to catch me. Don't have any resources I can utilize. I'm just going to answer these. So what kind of headaches are you having? 

So we really aren't prepared to sign anything today. Dick, is that a listing? You should be able to unmute yourself, Dick.  So is that a listing agreement or a buyer's agreement? Historically, that'd be more of a listing agreement. Of course, buyer agreement is going to be coming up to pike here real quick too.

Okay. So one of the things that I'll, I'll tell you in this folks is that in my opinion, the best  objection is the one that never comes up.  So in your presentation,  you cover the things that people really need to understand,  then you really don't get the objections.  So  if they're not prepared to sign a listing, my answer would be, Hey Dick, I totally get it. 

And I don't have any problem in doing that, but let me just ask you this real quick. What is it that you're most concerned about? And what did I not cover that would answer your question  for you?  And then it's going to be whatever it's going to be. We just, we always have to think about it. We have to pray about it.

We have to do all those things, right?  What I can tell you that that happens to you.  It means you need to work on your presentation  because you didn't cover something in it. Right? So let's just take it from a listing perspective. Typically sellers want three things and here's what it sounds like when I talk to a seller.

As I say, folks.  I want to find out what's important, but typically in my experience, I found that really three things are critically important. I assume you want to get the highest price that you net the most amount of money when you walk away. Right. And they go, sure. And you'd like to get this done fast because the process pain in the butt.

And they go, yep, absolutely. And three, gosh, you really want to figure out a way that you don't have all the hassles and headaches of showings and things like that.  Is there anything else that. Important to you that I need to know about  in my experience, guys, they say, no, that pretty much covers it. Now they may go something like, we want to get this done so that we get the kids in school by September or something like that.

That's just a question of fast.  So when they say that, it was like, great. If, if we could take a couple of minutes and let me take each one of those things in a progression so that I can show you how we get the highest amount of money for your house by creating competition among a large number of buyers. 

How we're able to take and get this done in 14 days.  And then how we eliminate the hassles and headache. Would that work for you?  No, sure.  Then I walked through those three steps and how my process eliminate those things.  Because at the end of the day, if I eliminate those things, there is nothing else to talk about. 

And if I do it in a unique manner,  then I've addressed those issues.  And so you typically wouldn't have that come up.  The one that usually precipitates the, Hey, we're not ready to sign today. What do you think the number one reason for that is? 

Dick, why do you think that happens? You're right. In that you didn't answer questions in the presentation itself, but it could be they don't like you or they have, they know somebody else too, or have a family member or some other kind of right.  So if your process is powerful enough and good enough, that it doesn't matter. 

But the number one reason usually is commission. They just don't want to tell you that.  So here's how the commission sounds the way that I talk.  I would just go, Hey Dick, let's get the elephant out of the room. What were you thinking about offering in terms of compensation for an agent?  Oh,  six, five would be great.

If we can do less than that'd be an awesome day. So how about if we do three, will that work?  Three? Yeah. Yeah, we'll do it for three.  Now, if we have another agent that does bring a buyer, because we want to market to those other agents, because my job is very simple, it's create competition for your listing,  we need to pay them to do that, but it would be, would it be okay if I had the buyer pay their agent instead of you, would you be okay with that? 

Absolutely. Cool. Don't know how you do that, but absolutely. And so my job now is to walk through how we do that.  Right. Okay.  And so if you can answer the commission generally will come up generally, we'll just need to be prepared for it. So if you bring it up in the process,  we do that.  And so now commission's out of the way.

And  the way in which I did that, I just said, Hey, what were you thinking of offering? Notice I didn't say, Hey, my compensation is, or the commission is, I never use the word commission. But one of the things you guys need to understand, the words matter when you talk to people.  They don't like paying a commission,  so I don't use the word comp commission.

I use compensation  or fee. Hey, my fee to do this is 3%,  so we don't use the word commission, especially if you're talking to a fsbo. Number one reason they did the, they went the for sale by owner route is they didn't wanna pay a commission. So don't say.  Would you be willing to pay a 3 percent buyer's commission  because you set yourself up at that point for failure.

Had a couple of you folks come in late.  So do me a favor. This is being recorded. So Claudia Rich, Roger Tan, Diamond, I need you to put in the chat box that you understand that, and it's okay that I'm recording this and I'm going to use this as a podcast. So put in the chat box for me. Yes.  So at the end of the day, if we understand,  if we're proactive in our presentation, we don't get a lot of these objections,  but if they're not ready to sign, let's talk about that for, for whatever reason, let's assume for a minute that you did a great presentation.

What do you do from there? What happens? What's the followup plan? They say, no, let's say I talked to a physical, I'm not ready yet. What do you do? You just stop.  I already asked the question. Let's say that it's just at that point that they did that.  What do you do? Do you just stop doing anything? Do you have any kind of follow up system in place? 

Do you have? So  for me, Dick, here's what I would say. Hey Dick, I totally appreciate it. Let's just do my, I've done all these objections. Can't get past it. Doesn't happen very often. I'll be honest with you, but let's say that it did.  Hey Dick, would it be okay if I sent you a book? It's about 40 pages.  And it's the different secrets and hacks that real estate agents use to get the most amount of money for their home.

Hey, if you're still thinking of selling it on your own, we'll give you some tips on how you can get the most money. Would you be okay if I sent that?  Sure.  Now, I can send them a hardcover book. I could send them an ebook. I could send them a PDF. I could do different things.  But at the end of the day, I don't want to just not follow up with them.

The likelihood of them reading the book? 50 percent maybe.  But what do you do after that then? What do you have in place?  So give you an example. We just finished writing, uh, probably be two or three pages when it's done.  How professional photography will get you more money for your home. Something like that. 

And then, at this point, Marissa's designing it and things like that. That would be another follow up piece that we could send.  That now starting to separate us.  From the competition to say, Hey, this is what we do, right? We could send the listing launch blueprint. Hey, here's everything that we do. We have a process.

We have a system.  The reality of it is I generally, let's say it was an expired listing. I would have sent that in advance.  A FISBO, I would not us.  So at the end of the day, it's being prepared for those questions and having a process. But one of the things.  For those of you that don't have a process, my question for you is real simple.

Why does it, and I know a bunch of you on this call know this, so there, we've got some people who don't know that, so put it in.  Why does, can a real estate agent always sell a home for more money than a, a buy owner, a private seller? Why?  See what happens is most of the gurus and everybody teach you the answer to that objection is, well, really, you know, folks, um, uh, a home sold by an agent, uh, gets 13 percent more money.

That's why.  And it's a fact,  but at the end of the day, it comes from NAR. So they go, where did you get that statistic from? Well, national association of realtors. Of course, they're going to say that.  So it doesn't give us a lot of credibility.  So the question becomes, why can we do that? And the answer is, Oh, it's some of my people, competition and exposure.

The minute I put it into MLS. So I'm going to just use Maricopa County. We have 5, 000 agents in Maricopa County, give or take. Okay.  And let's say that every one of them has a 500 person database sphere of influence, things like that would be 27, 500 potential buyers.  that I could expose your property to that you will not be able to get access. 

Let's agree that a small percentage of them, let's say 1 percent of those people might be interested in a home in your price range size, things like that's 2, 750 people that I marketed to  try and create competition amongst those buyers. If I could get four, five, six, eight, 10, 12 buyers,  competing for your property. 

And I give them a process  where they can pay whatever they need to pay  to beat out all the other buyer  that would ensure you get the highest market value at that given time.  As a for sale by owner, what are you doing to create massive competition amongst buyers? What's that look like for you?  And then be quiet and let them answer the question. 

Now, the reality of it is any agent can put a house in MLS. That's why they're an agent.  Is that enough to create the competition? And the answer is hell no, it's not.  So what is your process look like  and how do you explain it?  So I'm shocked over the last few years as I've built my team more than a thousand agents in 44 states, five countries.

I've talked to literally thousands of agents and  I haven't sat there and checked off each one. But I will tell you about 80 percent of real estate agents do not have a listing presentation.  Now that doesn't mean of that 20 percent that do. They've downloaded something, they literally go into somebody's house and they walk them through this PowerPoint. 

And they talk about the same things that every other agent talks about. Let me tell you about my family and how long I've been into business and this is why people like me and my company's been around for this and that.  Folks, how did that help you answer those three questions? How are you going to get me the most money?

How are you going to do it quick? And how will you eliminate my hassles and headaches?  If your presentation and your discussion does not revolve around, that is when you're going to get objections. But if you solve that problem for people,  can we agree that You'll get a lot less objections. 

And that's really the key to doing this. At the end of the day, if you're job right, you'll eliminate the objection.  But let's say I was talking to a FSBO and they go, Hey, I'm just not ready to do it yet. Yeah, what you said was compelling, but just not ready to do it yet.  Is that okay?  Yes,  stay in touch with them. 

Everybody thinks, oh, I have to have the answer and I have to close them right then and there. So let me give you an example of what we say or how we approach a FSBO. How many of you guys hate cold calling? Put it in the chat box for me. How many absolutely hate  cold calling?  Go ahead, put it in the chat box.

I know that they're, that you do. And if you're listening to this on the podcast, I know that 99 percent of you do.  So what if we did this? What if we send a text like this? The first text that goes out, good morning. My name's Bob. I'm a local agent. I had some questions on your home, but it looks like it's fold already. 

Dick, why would I say that? That's throw them off balance.  Everybody else calls. Hey, my name is Bob. I'm a realty. Hey, if I had a buyer for your house, are you willing to pay a 3 percent finder's fee for 3 percent commission?  It's a pattern interrupt. Right. Totally what everybody says. Right? So think about that.

I'm with a real estate company. Will you pay me 3 percent  commission?  We call it a finder's fee when we talk to them, not a commission. What happens when they say, Hey, I had some questions on your home, but it looked like you told already. It's called pattern interrupt. Right. They go, no, it's available. Like where's that?

It's like the next text would be, Oh, I'm sorry. Are you currently negotiating with any potential buyers by chance?  And so now I have them discombobulated. The reason I asked that question folks is because a couple of minutes down the road when they said, I'm working with a couple of buyers already,  no, I already took that out because well, the reality was they're not. 

And they go, well, no, not really.  Text number three is in all honesty, I probably don't have a buyer today,  but I do have a process where I'm able to get four or five, six, or even 10 buyers  competing to make the offers in the next 14 days, and then to give them a process to outbid each other, guaranteeing you the highest market value for your home.

If I could do that,  are you open to offering the standard 3 percent finders fee to an agent?  Folks, if you've never called Fizbo's, you'd realize that they're open to pay that, right? Now, some of them will say two, some of them will say three. They're going, no, I'm not paying three, but I would,  it doesn't matter because I'm going to get my three. 

And they generally are going to say yes, or they'll go 2%.  The next test text is fantastic.  Can we jump on the phone real quick? I can learn a little bit about your house  and then you're going to talk to him. And then you're going to set up a zoom presentation later on when both people, let's assume you got husband and wife.

Or two people that own the house that they're both available. When you do your listing presentation, by the way, we do ours on zoom.  We don't go to their house.  Why would I go to their house and spend all that time  when I don't even know if they're serious or maybe their house, let's say is worth 400, 000 and they want 475 and they're like, I ain't selling her for a penny less than 475.

Do you really want that listing?  Remember, if it's okay for them to say no to you, it's okay for you to say no to them, isn't it?  So if you had a for sale by owner that got that text, how many of you think, so you can put it in the chat box for me, how many of you guys think that they would respond favorably to that? 

Cause we do know the number on it. It's over 90%.  What happens folks is when they answer, yes, I'd be willing.  They're saying, Hey, it's okay for give me a listing presentation. They're not coming right out and saying it that way, 

but that's what they're doing.  So we can take away these objections by handling things differently.  So  only one person answered. How many guys think  that nine out of 10 for sale by owners would respond favorably and say, yes, I'd be open to that 

90%.  If they're not open to that.  Guess what? You don't have to waste your time.  It's cool. Right?  So  at the end of the day, folks, the objections you get are a result of your presentation. So what I can tell you is if you get that,  Hey, I want to think about it, or I'm not ready to sign right now,  you missed something in your presentation. 

And the way that you do that is so you'd go, Hey, I totally understand. They get it just to clarify  when would be a good time to follow back up with you. So I'll make a note that we can do that. 

I'll go a couple of days.  What happens is you're letting them off the hook. They're like, Oh, cool. I blew this guy off. Thank God.  And then the next statement is so that  I can be ready for you.  What are the things that you're considering  that are holding you back so I can put that information together and have it ready for you on Tuesday when we talk again? 

Whatever they say, folks, that's their objection. I  have another agent. I don't. Usually it would be I have another agent that I'm interviewing.  So how many of you guys actually have a sheet  that says here's what most agents do?  Here's what I do.  Right. And you have all the little checks that they do. And then you have this long list of things that you could do.

If  you don't have something like that, you should,  because now you're taking out all the competition. Yeah. Yeah. Yeah. They do this. Every agent says the same thing, right? Hey, I uploaded 300 websites that you've never heard about. 

Professional photography is one, right? A lot of them don't  look in your MLS. You'll see pictures.  What do they do? What do you do?  But the real question is.  Mr. and Mrs. Seller, when you do meet with that person, I don't have any problem that you do. Not offended by that. I believe you should.  There's really one main question you have to answer  is what are they going to do to create massive competition  to get four, five, six, eight, ten buyers competing for your house? 

What is their process look like  to be able to get those buyers to pay more money than what they're planning to do so that you net the most amount of money Clothing.  And then how long will that process take? 

For me, I'd actually have that written down and say, you know what, here, let me just text those three questions to you,  because if you went through what we went through, we generally don't get that.  Like Robert, and I think I got you unmuted on a, like Robert, when you hear that, Hey, I don't, I'm not ready to sign yet, or I'm not ready to,  there you go.

I just unmuted you. I'm not ready to put it in the MLS yet.  What are you telling them? I'd ask him why?  I think the only thing to ask, number one, I asked him, are you ready to get started? And if they were to say, I don't want to put in the MLS yet. I just asked a simple question. Why? 

And generally they're going to tell you folks. So it's not like this massive. Objection busting thing. It's just a simple question. I'm just curious. Why not?  And what you said about the asking the questions in advance, our presentation that you mean Marissa put together and that available to everyone is we're answering the questions before they even come up.

So it's, there should be very minimal questions at the end. Yeah. Here's the good news guys. Real estate's an easy business.  If we know that the only three things and guys, we've got what, 19 people on here now.  In your experience.  Have people said to you,  other than those three things, here's what's really important to me. 

Highest price, fast, minimum headache and hassles.  And again, like I said, you'll hear, we don't want to do any fix up to the house. That's not an objection, that's what they want. Or we need to get this done by September so the kids are in school. That's not an objection, that's a statement.  Because if you can sell the house fast, then you got that problem solved. 

The question is, what does your process look like?  And for those of you that don't work with us, then you're going to have to sit down and figure out what that process is. And when I say sit down, yesterday, I went to a library so I could have peace and quiet. And I worked on some presentations that I was doing.

You need to go into the library, a hotel, take a plane flight,  and figure out in your presentation, what does your listing process look like that allows you to get the most amount of money fast, eliminate headaches and hassles.  Once you do that, you'll see your results change, you'll see your objections change. 

Alright, next objection. 

Yep, most are, hang on, I've seen somebody who said, what did you make a correction,  the truth, yes.  Bruce said when you make a no statement the list listener will always correct you with the truth, which is well Oh, it looks like your home's not available anymore  And you can tell who's defensive now the coolest part guys when you actually do that But the most fun is that  to do it. 

Yeah, no worries, Robert All right So next one seller said I'm seeing on the news that you're making too much money in that you lost a lawsuit He's a client and doesn't want to pay 5%  So she just said, fast forward. I got the listing, but he asked several times to give him 4%. I answered, no. Um,  what do we say to that?

Cause while that's an issue right now, Hey, I think you make too much money. So  here's how I start that.  Our value, our listing, call it your elevator speech, right? What do you say in 15 seconds?  Hey, if part of my process to help my clients build personal net worth,  My first priority when we sell your home  is to protect your equity  with my no hassle process  that gets you the highest market value guaranteed in only 14 days  paying half the cost of an old fashioned listing. 

What jumped out to you guys the most in there? 

14 days no hassle. Okay, or most.  Half the cost.  Part of helping you build your personal net worth,  protecting my equity and the word protect 

what agent says, I'm here to protect your equity.  Again, remember the word matter. 

I'm here to help build your personal net worth. So my overall value statement buyer seller doesn't matter. They go, well, what the hell are you talking about? Build my personal net worth.  I would just go, Margaret, the number one  asset  that provides wealth for the average American  is the home that they live in. 

If we could take and make a couple tweaks to your mortgage  so that we could pay it off in seven to 10 years.  And let's say you're buying a 400, 000 house and I'm using 400 because quite honestly, I have the numbers memorized.  If I could show you how to do  things  that would get that house paid off.  In under seven years,  save you  402, 000 in payments and interest  that you could use to set up a retirement fund that at the end of 30 years,  you would have 1.

1 million in cash  and you would still own your home that if it appreciates at 4 percent over the next 30 years will be worth tad shy of 1. 3 million.  You would have a personal net worth of 2. 5 million  by working with me. 

Are you open to having a discussion around how that would work and how we could work together? 

Can you say no to that, folks?  Can anybody say no to that?  Here's the good news. I've been using that for literally 30 years,  and neither I or anyone that I've worked with that has ever heard a no.  You might hear, oh, that sounds good to be true. We do hear that.  And I just simply go, Margaret, I do hear that a lot,  but the good, it's simply math. 

If I can show you the math  on how that would work,  is that something you'd be open to implementing in your financial life?  Cause I don't want to do that.  Let's say I don't want to do that. No, I wouldn't be interested in doing that. Who would say that?  And if they did, I don't want to work with them 

because everything I just said was true. So when I down with a seller, Hey, I just talked to him and say,  this is what I do. This is what I'm known for. Right? So I created a group called the certified real estate asset advisor. When people go, are you, uh, you're at a party and people go, what do you do? You go on a realtor. 

Don't say that.  Say I'm a real estate asset advisor. I  go, Oh, what's that? Well, I help people do blah, blah, blah, blah, blah. I don't, at that point, like if I was at a party, I would, would you be open to having a conversation around that?  I just say, that's what I do. And then I stop and they go, how do you do that? 

It's a party take, you know, maybe 30 minutes walk through it. That looks like, right. And if you're  want to have a conversation around it, we can jump on a zoom call.  I have a digital business card  on zoom. I guess it doesn't like it. And I just have them scan my business card. It'll take you to my zoom link.

You can schedule a call. We could talk.  I could do that on an elevator, right?  So when I'm talking to people, even in a listing presentation, I'll talk to them about that. Hey, my main goal folks is when you work, or I'm sorry, when you work with us, we need to sell your house, highest money, 14 days, least amount of hassles and headaches, but when you go to buy another house,  this is what I want to help you accomplish. 

Are you open? Being how that works.  When you ask the question in that way, it's, are you open?  Not a trapping question. I'd look at it. Sounds true, but yeah. Okay.  So see how, if we do the right things in advance, we don't get these objections.  So Karen says I'd like to move, but I don't want to sell my house and lose my 3 percent interest rate.

That's just stupid. We do hear that a lot now. Don't we folks.  So there's two things that I want to do. I'll answer the objection for you, but I also want you to understand, do not, do not let that inhibit you. Here's why. If you go back and listen to one of the podcasts, I don't remember what, which episode I did one on how to get a 3 percent mortgage. 

What you have to understand folks is people might be paying 3 percent on their mortgage rate, but guess what? Over the last few years,  they've run up their credit card debts to ridiculously high rates. If they bought a car, they're not paying 3 percent or 4 percent on the car. They're paying 8, 9, 10%. What is their blended interest rate?

So I did a whole podcast. I have a whole class on how that works. So I'm not going to do the class here,  but when you actually put all their debt together,  their blended interest rate, meaning what's the actual interest rate they're paying on all their debt.  It could be 7, 8%.  Now here's the difference. You have a credit card and you may or may not think this crazy. 

I see people all day long, right? Cause we have a mortgage side of the business that have 30, 40, 50, 000 in credit card debt at 35%. 

That's not an unusual thing. Remember  credit card debt is not tax deductible, is it? So if people refinanced  their property, even if their rate was 7 percent now,  they lowered the interest they're paying on that 50, 000 down to 7%.  And it's tax deductible.  So let's just round it out because the math is easy.

And let's say they're in a 30 percent bracket.  30 percent is seven is 2. 1. They're effectively paying 4. 9 percent interest now.  And one of the podcasts, and I have a video that I did with an actual client  that took their debt. They wanted to buy a bigger house. They were going from like 450 or 500. I don't remember the numbers now to 700. 

They had a 3 percent rate. We took them up to seven and a half.  And when we use that, because they were thinking, Hey, I'm going to put 30, 40 percent down, whatever the number was,  we said, no, let's just put 20 percent down and use that other 20 percent to pay off all this other debt. When we did that, they actually picked up a little bit more than 1, 200 a month in extra cash flow, not including the tax deduction. 

So when you, again, the conversation Margaret and I had when we were starting, Hey, when these new kids come into the business, do they understand this stuff? And the answer is they don't.  The sad part is many experienced veteran  don't.  So at the end of the day, that's another conversation to have.  The care goes, what if they don't have any credit card debt?

I still don't care  because here's the thing. If I can help you get your home paid off and let's call it five to seven years.  Your effective interest rates. So let me, let me do this. Let me get the conversation I have with people. And it's more from the mortgage side, right? When people call your mortgage person and go, Hey, what are your rates today? 

And the rates are whatever they are. And guess what guys, they all have the same rates.  So my answer is I actually work a little different than the average real estate agent and mortgage person that I focus a little bit differently on different things. Now you're focused on the note rate that you would pay on your mortgage, right?

The six or seven or 8%, whatever it's going to be.  I would suggest to you, that's not the most important thing for you to focus on. You should be focusing on the interest dollars that you pay. Let me give you an example. If you buy a 400, 000 house, you put 5 percent down.  At the end of 30 years, you would have paid 479, 000 in interest on that property.

You'd have had to pay the 400, 000 back, plus the 479, 000. So the actual house cost you 879, 000.  If I could help you reduce that 479, 000 down to, let's call it 100, 000 or 120, 000,  and we use the difference to start funding your retirement plan for you, you could accumulate A million dollars or more.  Would that be a better financial path for you to explore? 

When somebody calls on the mortgage side, I go, today's rate would be seven.  There's two types of loans that I work with 30.  There's two types of interest rates. Most people aren't aware of. There's what we call a consumer rate loan today, 7 percent or whatever it is today.  And there's what we call the bank rate loan.

That would be about one and a half.  Which one do you guys want to talk about folks? Consumer Rate Loan or the Bank Rate Loan? Throw it in the chat box for me.  Consumer Rate Loan, 7%. Bank Rate Loan, 1. 5%.  Yeah, nobody ever says the Consumer Rate Loan. What did I just do guys? I started a different conversation with you than what you thought we were going to have.

I did a pattern interrupt.  The way that works is called Effective Interest Rate.  Effective interest rate is the amount of interest dollars that you paid. Can we agree if you were going to pay 479 and let's say you paid 100,  it lowers the effective interest rate? That's what we're going to do. 

That's all it is.  And so I can have that conversation even with a seller  and I don't do that in the very beginning. I go through how we sell a property. If I get into objections, let's talk about when you're buying a house and then we go through this process.  If I sat there and could show you and I can do it right, I have a software program.

I can literally log into somebody's at somebody's house and do it  and I can save them, call it  400, 000 in payments and interest.  Do you think they're worried about what I'm going to get paid? Do 

you think I'm worth the money?  Let's say it's a buyer in today's world and the seller says, hell no, I'm not doing it. The buyer really wants this house for 3 percent and they're going to pay me 3%. They're going to pay me 12, 000.  If I could take and save you 400, 000, 400, 000, turn it into 1. 1 million in cash, and you'd have a free and clear house worth 1.

28 million at the end of 30 years, how many of you guys would be okay paying me 12, 000?  Put it in the chat box for me, uh, at least.  Relay this. So people listening to this can hear it. How many guys would be okay? Paying me 12 grand, 

anybody, nobody. 

Yeah. All would it all in how we present this stuff. Now you may go, yeah, but they couldn't afford the house and whatever. Here's where real estate agents, I think, miss the boat where I actually think this is a really exciting time in real estate right now.  Did 12 grand upfront?  What if, and I haven't done the math on it, right?

Cause I told you I'm flying without a net. So I haven't prepared in advance. What if I said to you, Wendy.  I think you have the ability to, to unmute and get unmuted.  Wendy, here's the good news.  I get that you don't have the 12, 000 that would prevent you from buying that.  What if I just took my fee  in monthly payments over the next three or four years, and the payments would be X, call it 300 a month. 

The first thing I would say is, okay, it's 300 a month. What is the interest on that money? What is their cost to me?  I'm not going to charge you any interest, Wendy. Oh, wow. Okay. I like that. I always buy. I always go to Home Depot. And the reason I go to Home Depot instead of  Lowe's is because Home Depot always gives me one year interest free. 

So here's the thing. Could I charge interest? I could. You  might want to pre plan that in advance for your conversation, right? But at the end of the day, let's say you had 20 clients this year that you did this with and you had them all paying you 200 a month for the next three or four years, or whatever the math worked out. 

That would be 6, 000 a month for the next four years, three years, whatever it was.  How many people would hate that?  And then the next year you did the same thing with another 20 people. And next year you did that with another 20 people.  See, everybody's freaking out in our industry about the commissions and how it works,  who said you couldn't do it this way, 

but you got to do it in a way that it's a value proposition.  It's in their best interest  to do this. 

Another option that I've put out there,  and I'd love to tell you that I thought of this, I didn't. I had a good friend of mine 25 years ago did this.  He simply took a retainer fee up front. I think back then it was like 500 bucks. Average purchase price in Phoenix then was probably 125, 130.  And he took 500 bucks up front.

He charged 175 an hour to show houses. Anything related to showing was 175 bucks an hour. I'm looking for listing 175 bucks an hour. I get in my car to drive there, show you a property 175 bucks an hour. We're at the house for an hour, 175 bucks an hour.  When it got to writing the contract, the negotiations, the legal stuff, it was 400 bucks an hour. 

Let's say that his total hourly fees were, call it, 4, 000, and the commission was fixed.  He would rebate the two back,  and he would simply get paid 4, 000. Why would I want to do that? Today's buyer's aid commission, that's not a bad thing. Number two, guys, let me ask you this. How many of you guys have ever had somebody say, Hey, can I go look at this house?

I don't think I like it at all. I mean, looking at the pictures, I hate it. But you know what? Let me go look.  And it's a half hour, 45 minutes away for you. So you got an hour to an hour and a half just to get there and back. You guys, how many of you guys have had that happen to you?  We all have. 

And all I have to do is go, Hey, Wendy, I just want to remind you, don't have any problem with it, but  that's probably going to take us about two hours to do, and that's just 350  that I won't be rebating back  another option would be for you guys to just drive out, check out the house, check out the neighborhood, and then if you're interested, then we can come out and do that. 

What do you think they'll do?  See when it's their money, they won't spend all that time on you. They don't make you do those things.  He used to be able to work with 10, 15 buyers at a time.  Did he make less money per transaction? Absolutely did. But back then guys, he's making like a half a million bucks a year  because those people weren't wasting his time  and his net when he did it.

And again, I'm working from memory quite a long time ago. I want to say his minimum or his average hourly rate was like 322 bucks. If I remember, right.  How many guys would work 40 hours a week for 322 an hour? Just call it 300 is 12, 000 a week. How do you guys would do that? 48 grand a month.  I would. 

And then I'm in control.  Cause then the other thing is if it was me doing that now, and I don't think he did this, if you wanted me to go out and show a home on a Sunday, it was overtime. It was tight. It was double time.  No problem. I'll do it  up to you.  So we're getting all wrapped up in all this buyer's agent commission.

I actually think this thing is a gift to us. 

So see how, if we're prepared, we don't really get these objections.