welcome to the Epic Edge Podcast

I'm Angie Davis I'm Hayden Edmondson

and we've got a good show for you today

today as we record this episode

it's actually Election Day

so I'm aware that by the time this episode airs

in fact we may or may not know the results

of the presidential election

hopefully it's just behind us

and we have answers on who is actually going to be

and hope for good economy for the future

the topic for today it's kind of because of the season

because of the election

because of the just the the season that we're in um

it's been a crazy year for real estate

and definitely right now

with the uncertainty of the election and the economy

it's it kind of LED us to talking about fear and um

I thought that was a good topic for today

so stick around you're gonna wanna hear like if you're

if you're having any kind of fear or anxiety

as an agent

you're gonna wanna listen to today's episode

so our local market like we're in the Memphis

Tennessee

West Tennessee market and our local market is

is pretty slow

I did the numbers for October um

just for the 30 days 31 days of October

and we're down about 12% in the number of units sold

versus this time last year

which was you know a slower year also

um however

what happened to average sales price

it went up a lot

a lot what's so what does that tell you

you know

in a in a economy where you like buyers and sellers

you know oh

I don't know what's gonna happen with the economy

almost the only thing not to do is to not do anything

because if you wait to buy a house in

in our market

and I'm pretty sure it's reflective of this

in most markets if you wait to buy a house

you're missing out on an equity gain by waiting

and who's to say you can even get that house

and historically too after the you know

the election um

every it's a good economy right

so in the first year regardless of who wins

um the economy always goes up

real estate prices go up and guess what

interest rates are most likely going to go down

so now instead of you having one or two people

you're trying to win a house against

you're gonna have a lot more

you're gonna be in multiple offer situations

you're not gonna get as much per dollar per house um

I mean yes

I understand that

there's a lot of negativity in the world right now

there's always gonna be negativity

that's right that's right

and you're like you're

very rarely

do you get on the news and see something positive

regardless of what's going on in the world

it's very hard to find but you know

the main the main thing to realize is is

you know regardless of who wins the election

regardless of what happens economic wise

people still got to have houses

you know and that's the main thing to focus on

unless people stop having babies

getting married getting divorced

dying whatever

it's all the D's yeah

diapers divorce

there's something out of four of them yeah

there's like 4 million

but unless those life events stop happening

and by the way they're not

it doesn't matter who you have in

as the president in office

it's not gonna stop your baby from being born

if you're expecting a baby

it's not gonna stop you getting married

or getting a divorce there's still gonna be

you know

like the four days are always gonna happen regardless

now I do think that in a different kind of weird

over weird economy the ones that are just tire kicking

are going to fall out a little bit

for sure uh

I think you'll see a lot more serious buyers now

the ones that are actually looking

are the ones that are actually having to move

even if you just take it election out of the play

the economy out of the play

like during from September to January range

like historically that's a slower time period right

people go back to school people have holidays

they have fall festivals

they have trick or treat and trick or treating

they have you know Thanksgiving

they have Christmas they have New Years

there's so many things going on

like those are your serious buyers

those are your opportunities not even to mention

you know

with stuff being on the market as long as it is now

I think the average on day for our association is like

83 for a listing and that's incredibly long

compared higher than it's been in quite some time

yeah which tells you a lot about the current sellers

and the current buyers yeah

and sellers are probably like

from what I've seen just with

with my business a little bit unreasonable

wouldn't you agree with

the real expectations are a little bit unrealistic

yes I then you know

for an example I just put a list uh

Flip House on the market and I priced it perfectly

I put it right at where it needed to be

and it was gone in two weeks

um I think more than important

you know

the most important thing that you can get from that is

is yes sellers

I always understand

you won't get the most of your money

but also to like

understand at listing $60,000 over your list price

what that's gonna do to your listing um

that and it's the same thing it was in in covid

covid times

when we had hundreds of people walking in the door

if you list it too high you lose an initial excitement

and most likely

you're still going to come down anyways

if you don't right

so I think the

most important thing that you can have

from a conversation standpoint

with your seller is hey Mr Seller

we can list it at $200,000

two 200,000 over list price

but we're still gonna have to knock it down

and when we knock it down

now you've got 160 days on market and people are like

what the heck's wrong with this house

and there was nothing wrong with it

other than you just missed the price

you were just unrealistic

typically you're

your most serious traffic

and the most traffic

comes during that first 4 weeks on the market

yep um

I walked away from a listing

I was just telling you about this this week

I walked away from a listing

they wanted $150,000 more than what

on paper their house would bring

I mean I just could not look at it any other way

and I even asked them what what

I'm just curious what

how did you get this number

I I just can't see this on

on on comparables and they had no reason

they just wanted that number to want that number um

I think that there's probably a shortage of agents that

in this in this market that will do what I did

which was walk away I

I I don't want to be the one that they're

they're mad at six months from now

whenever I've been telling them

you know every week we're too high

we're too high we've got to come down

you've got to educate the sellers

that the market will quickly

the market will quickly respond to your price

it may respond with complete silence

which means you're overpriced

or even if you get like one or two bad offers

but you're getting some offers

you know

you're in the ball part of where you need to be priced

if you have multiple offers

you know you've hit the sweet spot yet

but like even like on a like 150 over ask her process

unrealistic in almost all aspects right

but if they're coming in a 40 50 60 over list price

like it's

it's extremely worth having a conversation of saying

hey

I agree to sell your home

and I agree to list your house at x price

but in your and your special stipulations

or whatever you want to do

like I have it wrote up already saying hey

after 2 weeks of no traction or 3 weeks of no traction

whatever is negotiated

I don't have to come back to you and get

automatic price reductions

that way you can show them and like

we're not doing this out of spite

but it is kind of powerful

when you go back to the seller

and you have two or three weeks of no showings

all of a sudden you drop it 20

and you get it to that window

where you thought you should be

and all of a sudden

you all of a sudden have listing or showings

I think so much of it in this

this current real estate market

especially whether it be sellers or buyers

just managing those expectations on the front end

I think a lot of agents got in that reflex during covid

of just when the phone rang

they ran out they may have had

a couple of hours versus days to shop

write an offer

I mean you're working in such a reflective like yeah

just reflex

you're working at on reflexes based on like

buyer demands we've got to get back

and I think the agents who are succeeding now

at a high level are the ones who understand how to

like slow the cadence down

and set those expectations as a good foundation

and even like still with the seller side

like understanding

like the appraisal continued or the appraisal process

like putting those expectations into play

and you have a high demanding seller

which is always going to be a case

like one side or another

like it and you can get them on either side

but when you've hit that high purchase price and

you know you're pushing an appraisal value

like go ahead and you know

I'm always up up front with my clients and I'm saying

hey guys like

I want you to know

comps are most likely gonna come back in one 81

90 a square and we're at $202 a square

like I'm gonna go ahead and tell you like

we're probably gonna be five to ten thousand dollars

off uh

had that conversation this week

and I'd be gas tank if we didn't come back $5,000 low

and I was like well

it's not a big deal

I warned you about this two weeks ago

we we hit the we've done everything we can

we're going we're going to give comps to try to

support the higher purchase price

but if we can't get it

I warned you about this two weeks ago

um

and that's just a management of expectations you know

telling your client

and having great communication with what you're doing

um it's gonna make almost every transaction you do

as seamless as it possibly can be

there's always gonna be hiccups

there's always gonna be headaches

but you can manage those expectations

and mitigate a lot of those problems

for sure you really can't and

and you should it we were talking earlier

like

I think what defines this next season of real estate

is the agent who's willing to like

dig their claws in and do the work

like how tough are you because I mean

we'll be the first to admit that

it's not so easy selling real estate right now um

you got if you're a new or a seasoned agent

overcoming a buyer or seller's fear

because of political changes

economic changes

like any number of things that they talk about on

on the news that do cause buyer concern

or seller concern that's hard to overcome

it's hard to overcome somebody in fear

I think what I'm seeing so much of is like

agents going through the same thing

like agents are scared

and so really the best thing that an agent can do

that the only thing that you can do

in a situation where you're scared

maybe your pipelines dry what do I do

you've got to take massive action

because nothing's gonna happen in fear

if you

just sit back

and look at how much negativity has been in the market

for the since 2023 2024

um like I I hate to say it this way

but don't be the one to pay attention to nothing

but the social media the the news outlets

you know we had

we had so much negativity about the north settlement

in reality

all it was was an adaptation to your business

a couple extra forms uh

I think it's right now we have roughly three thousand

uh active listings in our association

I would be I have not looked at this

but I would be willing to bet that out of the

all those listings

less than 5% of those don't give buyers

agents commission

yeah I mean

we've run into a few but it's for the most part

sellers are still offering to pay yeah

the buyers company

because they understand that the buyers

agents bring the buyers to their house

they understand that that contributes to their sales

price level but again you know

like that

if you looked at the news for the last two years

that's that's going to decapitate real estate

and I have someone that I look up to

that I have a lot of respect for in this industry

and he went as far as to say

this is the death of the real estate agent

clearly and that like

there's no way for us to know the future by any means

right but as of right now

that one settlement

has cost us one extra piece of paper

and that's it

like it cost us a lot of gray hairs and bond

a lot of agents

I mean I talk to a lot of agents every day and YouTube

a lot of agents tell me I'm tired

I'm burned out

and some of it is from this angst regarding the non

settlement I think

but you can only give it some energy

at some point you just have to pivot move and

and

it literally comes down to your fundamental

daily activities um

in a in a weird economy

when people are scared and like

people are talking about getting out of the business

you go back to your fundamental activities

do the things that you've done for 10 years

five years two years

one years

and you found success in it might be hustling fizzles

it might be hustling expireds

and let me tell you something with the

with the daily average on market being 83 days now

there's gonna be a lot of opportunities

opportunity coming up for expired listing agents

so that

that would be automatically should be part of your plan

you are probably one of the best I've ever met

I've seen whenever like the sky is absolutely falling

you don't look at the sky falling

you're looking underneath the rubble

to see what the opportunity is out of it

I've always said this and I

Covid is a terrible example of this

but it really is probably the most accurate

accurate here recently

Covid I mean

killed a bunch of people and I

I'll send my condolences on all that

but I also want to say Covid has made

has gave me so many opportunities to put us

to where we are today um

it's truly up to you there's only one thing in life

that I've come to realize

it's not an opportunity and that's death of your death

your personal death um

now that's an opportunity for someone else right

because

there's always an opportunity for someone to step in

and build shoes

it is it is

that's right but like Covid

you know ruined so many people's lives

but you know what when I was there and I'm

I'm selling real estate I'm working on rentals

I'm doing all my jobs at once

it was an opportunity and I

instead of me paying attention to the negativity on

on the news outlets me

paying attention to the negative

political stuff that was going around me

I've kept my head down

and I've done what I knew what to do

and I just worked my butt off

and that's just an example

and that's what we need to imply

or apply to the future

of what we're gonna do next year

like right now what we're doing today

is what's working for January and February um

we're putting the footprints and the foot

and the ground work in for January and February closes

we took some of our agents through the business

planning workshop where they set goals

and we said today is actually February 4th

90 days ahead is where

you're gonna see the results of the activity

that you're doing today

that's right

so guess what if in October

if you were sitting at home and eating all your candy

when you went trick or treating hey

I'm happy for you

I hope you had a lot of fun but guess what

your January is gonna be pretty dry you know

so your attitude

and your daily actions is what's gonna tell me

what you're gonna do for the years to come

agent who this may be this

this may end up being a controversial episode

that's okay sorry guys

we like all the comments we like engagement

we don't care whether whether you agree or disagree

we want to hear from you um

but I think like

this is gonna separate the men from the boys

as they say this market this this next economic season

regardless of who's in office

it almost doesn't matter

unless people stop having babies

expanding their families getting married

getting divorced unless those things stop happening

there's an opportunity

there's an opportunity one way or another

the agent to find those opportunities

and put blinders on

and put your head down and go to work

adding value to your clients

adding like giving them the information

one of the things that

that we coach our agents on just early on is okay

I understand how you're feeling

I understand what you're hearing is going on

I understand what you

what you're looking at your pipeline

the way it the way it may seem

get out of your emotion and get into the numbers

when you look at the numbers

how many contacts have you made today

how many people have you actually reached out to

and talked to about real estate

had a conversation today with a girl on the team

she's getting down on the team

getting negative because she hadn't got any deals

and I'm like okay

well tell me what your daily actions are

and the conversation literally comes down to well

you're not consistent in your actions

that's the first problem but secondly alright

and let's see where the shortcomings are

you don't have a deal right now

you got stuff working down the road alright

we've got a lot of leads coming in every single day

get those leads get those conversations

show those homes statistically

for every hundred homes you show

with the lead services we use

three to five deals come from it

that's an easy conversation

now take the emotions take take the name of the

the mental

instabilities and the mental games out of it

because that's what's gonna define you down the road

it's literally a numbers game

it is everything

it's all numbers

and numbers will pull you out of the emotion

yep like when nothing else will

when you when you focus on the numbers

there's no emotion in numbers numbers

that's right just numbers

that's right some can do them better than others

personal dig we all have our skill sets and I

we would agree that numbers is not mine

that's right and it happens to be yours

which I think is why you pick on me a little bit

that's right that's okay

I don't mind getting picked on every now and then

I'd be interested to see what uh

like in the higher price points like the

the Arizona's the Cali's the Florida's the New York's

I would love to hear some comments about

to see actually what their average purchase price is

how many days on market are their prices going up

are their prices going down

are they increasing 45% like they are in Memphis

um comment below like what's the activity

I'd love to see that and how's your personal business

like is your business up is it

is it slowed down considerably

or about like normal this time of year

and what a pet peeve too when you ask an agent hey

how's your business doing this year

well it's okay

well what's your numbers

like how did you do well

I I

I don't keep up with how many transactions grow

what like

what is your accountability and what you do every day

I are you you're literally just spinning your wheels

like if you have a goal to do

I highly encourage anybody

in any business to have a set of goals

of what you're trying to hit

it doesn't matter what it is

and it doesn't matter how small or how big

because there's you know

numbers apply for everything

but if your goal is to do five deals

and you're not keeping up with it

and you don't know how many you've done

like that's your first mess up

because like

you're literally just spending your wheels

yeah

it's here and now is the season to be reflecting on hey

what worked this year you want to replicate that

that's right what didn't work this year

you don't want to replicate that

or maybe you did it wrong

maybe there's a flaw in your execution

maybe it was a great idea

and you weren't consistent in your execution

fine on those lead services that don't work

cut the cut the fat

turn the fat get real lean

lean on your spirit

influence and past clients and those people

you know

to refer you business like teach them how to refer you

I think that's a good spend of everyone's time

right now this is gonna happen tomorrow morning

we will wake up and you know

and we probably we're we probably still won't know

like it takes I

I was watching a thing today and they're saying

we probably won't know by Saturday

and I'm like man

like that's a lot of unrest to pin up for five days

I mean but it's

it's like the there's actually

there's a thing called election anxiety

oh I believe it the thing where you know

there's just I literally had a conversation 5

5 minutes ago with a great buddy of mine

and the conversation went like this

it doesn't matter and it and again

applies to everything

it doesn't matter if you need a new truck

and it's funny that people say

I'm waiting on the election to see what happens dude

you're still gonna need a new truck on on Monday

so like if you need a good truck

go buy a truck but for sure

but like it's truly incredible how much that this

this day has held like for almost the entire year

it has held up real estate

it's creating like secondary

tertiary backups in the market

I I truly believe this is my personal opinion

I'm not

I'm not very educated in the entire learning process

but hear me out I truly believe this is doing nothing

but pinning up demand for next year

even higher yes

so I and this is my personal opinion

there's a lot of people that have said like

if you I have 15,000 people in my database

I could go to a couple hundred leads right now that say

they're waiting on political

political rain to figure out what happens

so that and nobody's saying

you know who they're voting for anything like that

but I'm gonna make an argument with you that and there

we probably won't find out

who the president is until five more days right

so now all of a sudden

we're 15 to 20 days away from Thanksgiving

nobody's gonna be shopping

very little will be shopping

like the ones that have to the four days right

if you're listening to this

and you have a house on the market

and someone's showing it that's a motivated buyer

yeah but those are serious

they're not just kicking tires guys uh

but like I truly believe like in January

it is going to be a open floodgate

well we're forecasted

out to have a 25 basis point reduction in rates

so that's gonna

pull

some of those people that have been on the sidelines

that I think I agree with you

I tend to think that they're like

two or three rows deep of reasons why they're on the

sidelines at the moment

so that's gonna pull a flood of people into the market

like you need to be well poised

and like going on

and having those conversations to know who's jumping

when they're jumping why they're jumping

and at what point are they in

and buyers like right now

and yes it's not the most convenient time to move

and I'll openly say that cause the holidays

you know school and stuff like that

but I'll openly tell you I truly believe

we're poised to have a really good sales

sales number next year and with that being said

when there's that many deals

that means there's that many more buyers

and with that being said

instead of you buying a house and you having your time

you'll have a two hour walkthrough time

and you can lollygag around

and look in the cross space

and do what you want to I truly believe

I don't think we'll go back to Covid

but I do

I do believe that there will be a very increase

very big increase in numbers

especially when they start trickling right down

buyers are thinking that

they're gonna be able to ask for the moon

yeah the way they have this year

and they've got a week to think on it and sleep on it

that they're gonna get disappointed

that's that's right

so the the point of the story is guys

you're gonna get a lot more bang for your buck

and probably a lot better deal um

in the next three months

than you will for the majority of next year

so if it if you find the right house

and the Christmas tree is already up

celebrate it all together

pick up that Christmas tree

yeah yeah

two families combined yeah yeah

yeah that's all I can envision

is like the Grinch pulling the Christmas tree up

the fireplace yeah

okay well

that is all for us a lot of unknowns

that's right guys

as we record this so

there may be some clarity as you're listening to this

because we'll be on the other side of Decision 2024

but put on the positive by next week's podcast

we will have the answers most likely should

if we don't my goodness

tell us what you think tell us what your thoughts are

I love to hear people's opinions

and their take on the market

the political climate all of those things

please don't start a political debate in our form

yeah yeah

maybe not that just tell me what you think and why

that's alright thanks for listening

we'll see you next time

bye guys bye