Josh Barker Real Estate Podcast #31

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Transcription of the Podcast Episode #31

The transcription is auto-generated by a program and may not be accurate to the conversation. To ensure you get all the information from the video properly, you must watch the video.

Joey: Okay.

Josh: I'm ready.

Joey: Okay. It's June.

Josh: It's June.

Joey: 2024. Halfway through 2024.

Josh: Yeah.

Joey: This is crazy man. Time is it, it just.

Josh: Is it crazy that June, June comes after May? Does it just blow you away?

Joey: It's just crazy that like months are just like, the calendar's just flipped. This is like a movie.

Josh: It is like a movie.

Joey: Where it's like they just want to fast forward 12 months. So they just shoot the angle on the camera.

Josh: We're both, we're both 50 or close to it. And I say.

Joey: Oh, I'm over.

Josh: Time. Okay. I didn't want to, you know, have to confess that today. But the speed at which time goes by now is just unbelievable.

Joey: It is. It is. And a lot of stuff is going on right now in real estate. There's a lot of stuff going on.

Josh: Yeah.

Joey: In the Redding market.

Josh: Yeah.

Joey: We're seeing inventory.

Josh: Yeah.

Joey: Has changed a lot. Like in the last, what, 45 days?

Josh: Yeah. We had a big jump. A couple of months ago, it was about 30% lower than today. We're sitting around 650, 660 on the market today for homes for sale, and it's plateaued, though. That rate of acceleration and inventory was exciting to watch. We were hoping it would continue to do that just for the buying side of our clients because they need homes, but the inventory is starting to plateau again.

Joey: Well, I mean, every year, usually spring is the bring your home to market, right? When discussing March, April, and May as your big three?

Josh: Yeah. It starts picking up mid-March, and then it's consistent through the end of June.

Joey: Okay.

Josh: You know, where inventory is coming to market at a higher rate than it does any other time of the year, and it started that way this year too. It was exciting to see, but it's starting to stall slightly. The inventory's not growing, and our sales need to be more on the charts. We never really got our spring rush this year.

Joey: Well, interest rates are. What are interest rates right now?

Josh: Interest rates are sitting around seven and a quarter percent, so that kind of does serve as a wet blanket to the overall market right now for sure.

Joey: You know, it's funny, I hear people, these are like the same kind of meme type thing, statements are made over and over, 'cause when I bought my first house in 2001, my interest rate was seven and a quarter percent, oddly enough.

Josh: Yeah.

Joey: And at the time, that wasn't, I didn't think it was bad or good, but the first house we bought in Redding, I think we paid 112,000 and my salary was 60,000. That's the other thing. Like, I had my house cost less than two years.

Josh: Yeah.

Joey: Of salary. So, seven and a quarter percent was doable. Now, the average salary in Redding is what, like the mid-50s, would you say?

Josh: Yeah.

Joey: Low 60s, something like that.

Josh: I think right now it's about three times the salary for a combined family.

Joey: Really?

Josh: Yeah.

Joey: I thought it had to be. You had to say it was higher than that.

Josh: No, I mean, and the side of the City of Redding right now, I think that the average probably between a husband and wife working or, you know, two people household working, you probably have somewhere around 100,000 in combined income. And that person probably owns a home, around 300,000. So it's about three times now, but to your point, it used to be two.

Joey: It's, yeah. It's still, that's more than, and it may not seem like a lot, but that is that whole one.

Josh: It is a lot.

Joey: That's a lot.

Josh: Yeah. And our absorption rate has climbed, too. Right now, we're sitting at about three and a half month's supply of homes for sale.

Joey: Which is a?

Josh: Well, for our listeners, it's a, you know, zero to three months traditionally it's considered to be what we call a seller's market, meaning they have more of the advantage in the market. Then, four to five months' supply is normally a neutral market, and nobody has the advantage. And then six months or more is what we consider to be a buyer's market, where again, the buyer has the advantage, and we're sitting around 3.5, so very, very tail end of a seller's market. Still, I say that in a general term because it's dependent on price range, too, you know. If you get into the upper end, it's a buyer's market.

Joey: Yeah, totally.

Josh: You know. And as you come down, it starts to swing that pendulum more and more and more towards a seller's market.

Joey: Well, it's just like those projections on the appreciation rate on housing; it always leans heavily towards the lower end of the market. The upper end of the markets usually sees less than 7%.

Josh: That's right.

Joey: 8% increase, but the house is at 300, they have to go up 7%.

Josh: That's right.

Joey: Yeah. And so, markets, that's another thing. It's like we've talked about it before. When people talk in real estate, everything's so generalized. The national market, Austin, Texas, is not Redding, California.

Josh: That's right.

Joey: $350,000 houses are not $950,000 houses. So, markets and segments. And I still mean Redding. You don't have any inventory replacement.

Josh: No.

Joey: There's no building going on.

Josh: No, you're absolutely right. It's, I mean, we hear, and it's not, it's a fair argument or a fair question to ask. But I mean, buyers in today's market are thinking, you know, well, we'll just wait for the market to go down. Like, okay, well, what has to take place in the market for the market to go down? And, usually, it would have to start from a supply side. You'd have to increase the inventory relative to demand. It has to increase faster than the demand increases for you to have prices to the point where they start to go down significantly, or at least to the way that people are hoping, very unlikely. Even if you look at the foreclosure market right now, around 40% of all people own their homes, which is fair and clear.

Joey: Oh, wow.

Josh: Yeah. It's a high number.

Joey: That is a very high number.

Josh: Yeah. And then, if you look into how many of them in the country are in some form of foreclosure or foreclosure, it's only one-quarter of 1%. So, historically, there's not a lot of foreclosure activity. Right now, it's likely that anybody who bought a home in the last two years and didn't put a lot of money down is not sitting on a lot of equity. And so that would be about 4800 or so homes sold in the last two years, and then you've got maybe, let's say, 40% of those had large down payments, 60% didn't. So you're probably sitting somewhere around 3000 properties out of 48,000 with little equity. That's a small deal.

Joey: No.

Josh: And when you look at the foreclosure market right now, there are only 199 properties in the entire county that are in some form of foreclosure. And the reality is that if 25% of those will ever even hit the market, it would mean 50 of them, right? And it wouldn't all hit at once. That would be spread out over a year, which means you're looking at what, I don't know, four per month. And if you look online at homes and foreclosures, that's about what you must see. So it's not a, the foreclosure side does not have to create inventory for us. What's more likely to happen? And did you watch the feds this week?

Joey: No, I didn't.

Josh: Okay. Well, the Federal Reserve came out this week, and when they came out, they said that inflation month over month was zero. And they're excited about that and want to see it for another couple of months. After that, they must have some confidence to cut the rate. And most experts right now are projecting interest rates to be cut at least once this year. Now, between now and the end of the year, likely at the end of the year. But here's what's interesting. If you listen to what some of these experts are saying right now, going into next year, they think the economy has to cool down. They think the inflation has to cool down. Now we're starting to hear talks of up to one and a quarter percent, one and a quarter percent interest rate reduction in 2025. And so if rates right now are, let's say, roughly seven and a quarter, we might be in the high fives by the end of 2005 or 2025.

Joey: This is why we've been saying you marry the house and you date the interest rates.

Josh: That's right.

Joey: You date the loan. When that happens, Redding prices should start tracking inversely to interest rates. So, as the interest rate goes down, prices have to start going up because more people have to be able to buy. And we've already said we don't have a system to replace inventory.

Josh: No.

Joey: We don't. I don't know if you know the latest numbers, but they're builder permits, you know, being pulled for buildings, but they're tiny.

Josh: Yeah.

Joey: It's fractional.

Josh: Yeah.

Joey: Now that could swing fast, I guess, but even if it does, it takes a while. You do not have to see inventory for over a year if a bunch of permits were pulled today.

Josh: That's right.

Joey: It's have to take a while.

Josh: Yeah.

Joey: The markets that people have looked at and said like, oh, look at these markets that are using reductions, that's what happened in Austin, Boise, where there was just a ton of new building, and they overbuilt. But that's not here.

Josh: No.

Joey: Yeah.

Josh: No. No. It's interesting. Yeah, you're right. I mean, I think Texas has a lower housing regulation, Idaho has a lower housing regulation, and Nashville, Tennessee, Tennessee, Florida. And it's no wonder why they're receiving so many, you know, people moving to those areas right now. It's because there are enough homes there at affordable prices that are drawing in a lot of people. California has a very challenging home-building policy; people can argue about it all they want. But the reality is, and the proof is in the fact we only build a few homes.

Joey: Yeah.

Josh: So the City of Redding through April built them, had 30 permits pulled last year, seven through April, you go back a year before that, it was 70.

Joey: Yeah.

Josh: So, you know, that is a huge change.

Joey: Huge.

Josh: And we need a lot more homes for us to replenish the housing supply now. So, I don't, I'm very optimistic about home appreciation going forward. It's just there's no other way to solve this. As rates go down, we have to see home values likely moving up, and then that'll give room for home builders to build and be able to offer a product to the market at the prices which they need them to be, for them to make some kind of a meaningful profit.

Joey: Yeah. I don't. I think about how much bringing a house to market in Redding would cost. I can't imagine that you can build a house and take it to market for under $400,000. How could you?

Josh: Well, DR Horton right now, you know, and then we're representing them on some properties currently, and, you know, we have stuff that's in the low, mid fours, and I think, and that's them doing everything they can to provide an affordable product to the market.

Joey: And they are such a massive builder. They have economies of scale.

Josh: Oh, they sure do.

Joey: The average builder doesn't have to be able to match them. They build, I can't remember how many thousands of homes a year across the United States. They have, they own their supply chain. They don't go down to Home Depot and get screws. They own their entire supply chain. So.

Josh: That's right.

Joey: Yeah. They should be able to undercut everybody's price.

Josh: Yeah. Their.

Joey: From how big they are.

Josh: Their core efficiencies across the line are hard to match, and the product is a cool good product for what you're getting. I mean, these houses are great for that price and what they're offering. The challenge is that we need more home appreciation in the market to build, to give some room to builders so they can start building homes at some meaningful level, and to help increase the housing supply.

Joey: And that'll probably come when interest rates go down.

Josh: Oh, yeah. Yeah. As interest rates go down, it has to add to that. And, you know, there'll be more participation on the existing home market side, too. So, as the rates come down, sellers that might have already wanted to move for various reasons as the rates come down, it gives them room to be able to sell and then buy the next home and be willing to accept that rate that might be in the high fives by the end of next year. So we have to start to see some activity. 2025 is likely a better year than 2024 regarding the volume of homes sold.

Joey: And so when we talk about the volume of homes, I don't know if you know any of these numbers, but like, how is it compared to, say, this time last year?

Josh: Oh yeah. We're down by roughly 15 to 20% volume-wise.

Joey: I thought it was have to be bigger than that. Honestly, I thought you had to say that.

Josh: The year before that was 15 to 20 also, though, and the year before that was, so we're down roughly 40%. So if you go back to 2021, we had, you know, roughly 325 to 350 homes selling in a month; in this last month that we just had, we had 189 to 210.

Joey: Wow.

Josh: Yeah. So, there is a significant reduction in the volume, making it interesting in the industry. We're watching real estate offices here shut down locally. They're beginning to consolidate. Cloud-based brokerage seems to be, if I have a real estate office with many agents and I don't want to have an office anymore, I shut my doors. And then my agents join a cloud-based brokerage somewhere, which, unfortunately, that's where the industry's going right now.

Joey: We've seen a lot of changes in the industry. We've got the NAR settlement, the DOJ is involved, and just interest rates. There's just a lot of flux and change in real estate in general. And as such, you've been pivoting the company because, I mean, you're steering the ship.

Josh: Yeah.

Joey: You've made some big changes here at Josh Barker Real Estate.

Josh: We have. It has been some tough changes, you know, really heartfelt, what's the direction we want to go? You know, you and I talked about this, about, you know, the advent of the cloud-based brokerage and how companies were collapsing in, closing down, and joining cloud-based brokerage. And I'm seeing how many agents are gravitating in that direction. I've had all those companies come to me trying to get us to do that. Then, I evaluated where I thought the customer would want, and I was. I look at the customers I have to work with, and I can only speak for some people's clients, but for the clients that we work well with they're looking for a consultative approach. They're looking for a company that knows their stuff, that is, you know, entrenched in getting better all the time. And so, knowing that that's not everybody's forte, we just got clear on who we were.

Josh: And so, you know, we've made some decisions not to grow the company going forward. We decided that I would have to step back into production personally and pivot back towards what we were before I had taken that year and a half off. And you know, me being actively involved in the business and then the agents that I'm working with, I'm actively involved in what their business looks like. And, you know, if you will micromanage, you know, and be close to all the customers in our company. And that's not a good fit for all of our company because some of our agents want to do their own thing, and we appreciate that, but for us, it's that; that's who we are. And I had to be truthful with myself, and my wife and I talked through it, and we're like, you know what? We felt better about the company in that environment than what, rather than growing it and doing these things, you know, having a hundred-man office or whatever. We just want to be a good company that likes how we're running it.

Joey: You know, I've been working with you for some time, and one of the things I've seen is that you have a very high-quality assurance. I mean, you, the mechanisms you put in place, are in this, which I don't see often. You don't see it a lot in business. Still, you don't see it a lot in real estate, or at least I have yet to see it where many mechanisms are built into quality assurance. Everything is very customer-centric and very, very customer value-focused.

Josh: Yeah.

Joey: It's not just lip service.

Josh: Yeah.

Joey: I mean, that's like the beginning of any good, you know, business book, you know?

Josh: Sure, yeah.

Joey: But the truth is, and I remember when you and I first started working together, you made certain statements, and I thought, oh, okay. He's quoting, you know, this book, and he's quoting that book. But then I, as I watched, no, that's really how it's done.

Josh: Yeah.

Joey: It's like, Hey, if you'll provide better value to the marketplace.

Josh: Yeah.

Joey: You will do better.

Josh: Yeah.

Joey: If you put the customer first and everything revolves around that, then your service will be superior to the people who are all about the dollar.

Josh: Right.

Joey: And so that's kind of what I'm hearing is as we've seen the industry change and there are big industry changes, both, like from a legal standpoint, like we said, I keep coming back to NAR, DOJ 'cause I think it's huge, and we still haven't seen the extent because it, like we said, it kicks in August. But also, just inventory changes, interest rate changes, our economy changing, and real estate's a lot different in the summer of 2024 than in the summer of 2020, which seems like yesterday.

Josh: I know. And.

Joey: It seems like yesterday.

Josh: And it's night and day difference. It's a total night and day difference. And in a lot of ways, we're going back to what we were probably in the, you know, 2010 to 2017 range. You know, that's what this feels like for me. And it's, we'll see how things go, but I'm confident that we successfully ran the company in a particular way in the past. And we know that even though we're, you know, by far outselling all of our competitors right now, I'm not proud necessarily of that. I would be much more proud just knowing that, you know, we're taking close, paying close attention to just serving our clients in each transaction and each deal, making sure that we did the best we could go through it.

Joey: And I think companies that approach it that way, as we go through this transition, as we see what the next 12 months and how things shake out in the industry, I think the companies that put their emphasis on their customers, they have to see success. The companies that are constantly looking to cut expenses are just. I don't know. We discussed how this started in America, where everything stopped from production and growth to optimization and trimming and trimming and outsourcing and trimming and outsourcing and trimming. And to me, it brought a cheaper, inferior product or service to the market.

Josh: Yeah.

Joey: And I think that's what a lot of people are complaining about today.

Josh: I think so too. I mean, the verdict will be out. We are still determining which way or which model, if you will, will win. But I will tell you one thing: I have to sleep well at night knowing that we're doing it the way we're doing it.

Joey: Yeah. So that's a good transition. Let's talk about the NAR. We've discussed the NAR settlement, which kicks in in July, and there's been no.

Josh: August.

Joey: August?

Josh: Yeah.

Joey: Oh, okay. So they kicked it back a month. It was supposed to be July, wasn't it?

Josh: Yeah. There was something about, you know, several months ago, something that didn't get filed or approved at a certain point, but now it's mid-August.

Joey: But so the NAR, which is a, oh, what do you call it? A professional.

Josh: Yeah. Trade organization.

Joey: Yeah. Trade organization. Thank you. Trade organization. It's not the government.

Josh: Yeah.

Joey: NAR is a trade organization. Right. So they said, okay, look, we have to make some changes. But now, the Department of Justice is taking a step up. The government's getting involved, right?

Josh: Yeah. So, it's interesting, but you touched on it. The National Association of Realtors is a good trade organization. It offers a lot of things. People listening to this wouldn't understand this part very much because you don't see it daily. But they're one of the country's largest advocates for home ownership rights. And they spend a ton of money and time legislatively lobbying and everything else to protect homeowner rights. So, I just want everybody to know that NAR, the National Association of Realtors, is a big deal.

Joey: Yeah. It is huge.

Josh: For me to be a realtor, I would have to be a member of NAR.

Joey: To use the term realtor, it's trademark.

Josh: That's right. And in Cal.

Joey: Otherwise you're a real estate agent.

Josh: Exactly right. In California, we have CAR, a subsidiary of NAR, and the California Association of Realtors. And so when NAR got sued, they had that settlement, and two big rules emerged. One rule is that they will require an agent to sign a buyer-broker agreement with their buyers before showing a home, which is great because it has to memorialize a relationship. It has to say, Hey, Joey, before I go out and look at this home today, I want to talk to you about what our scope of services have to look like. I want to talk to you about how we get paid, and I want to talk about how long this relationship will last. Right?

Joey: Yeah.

Josh: And so no different than if you hired an attorney or hired a CPA. You have an engagement letter for a financial advisor, and that's what this is. Their second role was that a homeowner or agent would no longer be able to advertise buyer broker commissions on the multiple listing service. So right now, the way it works is I go out and meet with you to list your home, Joey, you and I talk about what I have to do to sell your home, and I tell you, I have to charge you two and a half percent or 3% for my fee. Then, you and I discuss whether or not you want to incentivize another buying broker. Right now, most sellers do, and we usually offer them about the same, two and a half or 3%, right? So for a total of 5 or 6%, we list the property, we go to the market, and I advertise on the multiple listing service two and a half or 3%, and buying broker to incentivize them to want to go and show that home. So, the buying agent knows that if they bring a buyer to that house, their commission has already been negotiated, and it's protected, and that's how the industry has worked for a long time.

Josh: Well, this rule that they're giving us is saying we can no longer publish that commission to the multiple listing service so that the buying agent won't know. They can call an agent and say, Hey, is your seller willing to pay your buyer broker commission? We've had that discussion, or we have it with the seller, but they have to ask. What the DOJ is doing right now is that they're going in and saying, Hey, we have to go one step further. We want to make it so that a seller, not agents, that a seller is not allowed to make offers of compensation to a buying broker in any way of advertising. If they do that, it effectively helps enforce that rule that the National Association of Realtors came up with, but it makes it the rule of the land because it now puts that rule on the sellers themselves. Does that make sense?

Joey: It does. But do you think that's good for the industry? Is that good for the market? Is that good for home sellers and buyers?

Josh: I thought through that scenario a little bit, so imagine this for a second: let's say that the National Association of Realtors rule that you cannot offer any buyer broker compensation on the multiple listing service. Right.

Joey: Got it.

Josh: So I can't do it, I'm a realtor, can't do it. Right. But all of a sudden, there are little websites that pop up where sellers can just go online and receive buyer broker commission.

Joey: Facebook Marketplace.

Josh: On Facebook Marketplace.

Joey: It doesn't matter.

Josh: And offer it there, so now they're able to advertise a buyer broker commission 'cause it's the seller.

Joey: Got it.

Josh: But no agent could do that. Do you see what I'm saying?

Joey: Yeah, it seems. Yeah.

Josh: That's the challenge with it. By DOJ going in and saying, hey, putting the burden on the sellers, the seller will not be allowed to make compensation offers in any form, such as any advertising to a buying broker, that levels the playing field. Because right now, I have to follow a rule starting in August that nobody else, if you're not a realtor, would have to follow, so that's where DOJ is trying to do these fair business practices across the entire country.

Joey: I just wonder if, 'cause it has to be how they word it, because I'm wondering if they say, Okay, well, you can't advertise it, but if a buyer's agent walks up and says, Hey, I've got these buyers, can the seller then just like you said.

Josh: They can, and they've already said you can.

Joey: Okay, good.

Josh: So my understanding, reading everything I've been reading on this, is that DOJ is saying they're not preventing a buyer broker from being paid by the seller.

Joey: Got it.

Josh: They're saying that you can't make offers of compensation through advertising.

Joey: Got it.

Josh: And so I think that it will work out fine. We've been doing this in the commercial real estate space for years. I've written offers on commercial properties where there was no compensation for any advertising when I made the offer. I just negotiated the fee in the offer, which wasn't a big deal.

Joey: In commercial real estate, has that. Whether it's right or not, it involves higher professionalism. It's less emotional; it's more of a business entity versus residential, and it has more of that emotion. For the buyers, the average residential buyer is less educated on real estate than the average commercial buyer, right?

Josh: A hundred percent, which is where this conversation is going full circle. You have an industry that needs to be fixed.

Joey: Yes.

Josh: The agents are becoming less and less educated, and the consumer now has to have the burden of actually being a little smarter. You know what I mean?

Joey: Yeah, exactly.

Josh: In order to negotiate a deal properly.

Joey: Agreed.

Josh: And very challenging. This is, again, why we're pivoting so hard, and we know these rule changes are coming. We want to pivot from being a large real estate company to being more of a professional, service-orientated company. I think that by doing that, and I'm not saying it's the answer for all the agencies, I'm saying for our agency being true to who we are, that's what we're about, just true consultative relationships with customers, and us trying to learn everything we can all the time to offer that to people.

Joey: I wonder how that all has to shake out because we got, it's getting implemented in August, so I mean, have you already seen, have people preemptively started doing it where they're not, there is no buyer's compensation offered at all? Are we certain because that's? Isn't that the thought that we think has to happen is more and more sellers have to be like, I'm not paying anybody anything.

Josh: There's been a few cases recently. We've even tried it. We've had sellers say, Hey, we'd like to put our home on the market and not offer buyer broker compensation. Within a week of not getting a lot of activity, they quickly pivot because the reason is, do you want to price reduce or just offer buyer broker compensation and see if that's your problem? And that's what most of them have elected to do, so the folks that have come out initially trying not to offer it reversed course and started offering it, and they sold. But that's right now because you won't have the option in August anyway.

Joey: Exactly.

Josh: It won't be advertised on the multiple listing service anymore and so. We will still be having the discussions, though. Every seller I sit down with, I have to explain that roughly 60 to 80% of all buyers will need some form of assistance to purchase the home, or they can't buy it. And so if a seller chooses not to offer compensation during that negotiation, which is in their right to do, they simply couldn't work with that buyer so that you would take a market of 100% of buyers. You narrow it down to roughly 20 or 30% of buyers, which always harms price.

Joey: Well, rule number one in business is supply and demand, and what you just basically said is the seller has to reduce their demand.

Josh: If they go that way.

Joey: Yeah, because yeah, 60. What did you say? 60%, 80% of demand, i.e., buyers do not have to be in the market to buy their home now.

Josh: That's right.

Joey: So if demand is lower for the product that you're bringing to supply, you have to get a lower price, that's the first thing, economics, the first lesson you learn.

Josh: I totally agree. What's more likely to happen is that we'll list a property. We may or may not offer a buyer broker compensation in advance, but the discussion will have been memorialized. The seller would certainly know that that's something that they need to be prepared for. Offers will come in, and depending on each offer and what the offer is, the seller will decide how it has to go.

Joey: And you could see it being property-specific. There are just certain properties that hit the MLS the minute they hit the market. Do you know what I mean? The minute the neighbor knows it's for sale, there's a bidding war. And then there's properties, I won't say. I was thinking of an address I heard this morning. There are those properties. Good luck getting anybody to come out here. This does not have to be easy, man. We've got to incentivize, whether lowering your price or offering something financially. And it's also. I think it's so important with all these changes that the rise of the influence of real estate agents needs to go away. Real estate is way more than marketing and sales. There's so much legality. This is such a huge purchase, this is such a big deal, this is arguably the biggest purchase that most people ever make in their life, you know what I mean, their home is, you can't, you can't. Don't try to cut corners.

Josh: No, I totally agree. And now that I'm personally pivoted back into to sell, I don't know, I mean, I'm back in it now.

Joey: Oh, you're back in it.

Josh: Oh yeah. Now I'm out there going on listing appointments all the time again.

Joey: Are people shocked that Josh is showing up now?

Josh: I don't know, I don't know how much they thought one way or the other before, but going out there into the field regularly again, first of all, I love it, I missed it. Now I'm doing it.

Joey: Right on.

Josh: But I recognize now what experience does mean for the customer, 'cause. People don't hire me today to sell their homes. They hired me because of the 7000 homes I sold over the last 25 years and the experience from that, the problems I've had to learn to solve, the issues I've learned to avoid, and how to make things go smoothly. That's why they're hiring us.

Joey: Yeah. You should get toothpaste with lead if you have to go with a discount brokerage. That's what I was thinking. I could say.

Josh: I don't know if I'd go that far.

Joey: Drink bottled water. What are you doing?

Josh: But making a smart decision with a real estate agent, though I would say this, is that it's the difference between losing money on the sale of your home or making some profit on the sale of your home.

Joey: I have a. We all have horror stories, but I have some friends. I remember a couple of years ago, I can't say any names, but they went with this discounted brokerage, and they honestly lost 8% on the house. It was just it. Do your math, do your homework, do your homework. You get what you pay for, guys. You do not have to get a Ferrari for a used Kia price. It's just not, you're not. And this stuff matters. It does.

Josh: Well, and I don't see companies as being a discount or not. Your fee is your fee. I don't care about that. The question is, what's the service that you're receiving?

Joey: That's what I mean.

Josh: And are you getting what you could have netted if you picked a good person, a good agent, a good—somebody with some experience?

Joey: I think a reasonable person should see that, though, that the discounted price has to. Discount has to come from somewhere. Someone can't say, hey, I have to give you the Ferrari experience. But you just have to pay the 10-year-old used Kia price tag. That should be a red flag, like, no, you're not. I'm sorry. That's the beginning of scams. So, if you don't need that, that's okay, but the average person should realize the gravity of buying a home.

Josh: Oh yeah. Hiring a good agent will cost a little, but hiring a bad agent will cost you a fortune.

Joey: I like it.

Josh: Yeah.

Joey: I'd say if you think education is expensive. This is how much it is. Was it? I already messed it up. I already messed up the quote. Man, I wish I would have paid for that education. I would know how to finish the sentence.

Joey: Well, hey, Josh, thanks. It's been. It's June 2024, getting ready for the summer, and as you said, inventories level out a little bit, so we'll see how this plays out in a month.

Josh: It sounds great. Looking forward to seeing it.

Joey: Thanks, Josh.

Josh: Thanks.

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