Sean Moudry, Real Estate Coach | What Should Realtors Do To Increase Their Business?

This week we are talking with Sean Moudry. He has the #2 team in all of Keller Williams, and is a successful real estate coach out of Colorado.

What does the journey to becoming the #2 team at KW look like? I started with a how to buy real estate book at age 19 and began door knocking. At 21 I was licensed and sold 72 transactions my first year. By the time I was 27 I was closing 140-150 a year, on the 30 under 30 lists, in ReMax HOF at 24, things like that. From that experience I went to the brokerage side with KW and became a Bold coach and a franchisee. I eventually left and started my own coaching company and brokerage. Recently I joined the Sarah Reynolds Network. I realized that the expansion team networks are the future of real estate brokerages.

20 years ago it was easy to dominate a market, there were only a few places to advertise and it was easy to outspend people. Now you have Zillow, RedFin, Trulia, realtor.com and others, you really can’t out spend them. But by pooling resources and centralizing services the marketing spend can be increased in a market, In Colorado this year we will spend more than $1 million on marketing.

Zoodealio has some recently added mega teams and their marketing in the $100k a month range. Most agents are happy to make $100k a month, let alone spend that on marketing every month. It’s kinda like racing a jet when you are on a bicycle and the average income for agents has been dropping dramatically over the past 5 years.

In ’06-’08 money was easy and it drove the prices up, and rent rates. Now the fear is that some institutional buyers have access to massive amounts of cash worldwide. Let’s face it If you are in an unstable market the U.S. residential real estate market looks like a pretty safe bet, if we hit a recession will these institutional buyers simply dump their inventory? That is a scary thought.

Maybe they will hole enough of the inventory that they can control the cycle? Many plan to hold thee for 7-10 years as income based assets, the rents over time have only gone up about 12% while appreciation was much higher. Now the speculation is that rents will increase 15-20% in a lot of markets … Is rent control coming?

What should REALTORs be doing to increase their business? It’s not a one size fits all thing. Not everyone should be calling FSBOs or expired. I use the MBTI personality profile to identify what someone’s strengths are, then create a coaching profile and plan based on that then we back out from their strengths.

What do you see coming down the pike? We are averaging about 10-15 appointments a week and converting about 25% of those on the first visit and about 50% in 2 weeks or so. The reason Eliot and I reconnected is we were looking for a way to convert some of that other 50%. How do we do that, some of the properties are not ready for market for whatever reason, maybe it just needs some work, maybe its a hoarder house, whatever, or maybe the seller just wants an offer. The iBuyers are advertising to change the way sellers are thinking of selling their properties and promoting an “I want an offer and I don’t want to show it” mentality. We have about 200 properties from last year that didn’t sign with us. If we had a product that we could go to them with and say we have a real cash offer in hand for you, that is an important piece.

When the important menu of options for things like instant offers, home trade in, or make my offer cash - or other things on systems and platforms for agents and teams? A lot of mega teams are generating a lot of buyer leads, many of those are 18 months out and the price of generating those leads is going up. Some teams are too buyer focused, they are writing 20 or 30 offers and not getting them accepted. So if you want to pivot to the listing side you have to have a niche and offer something to catch the sellers attention, and agents don’t want to embellish so them having a product where they have real buyers ready right now is key. Your job is basically to bring the best technology available to your clients.