“20 Minutes of Successful Niche Secrets – EPISODE 44”,
Where Glenn McQueenie talks about what really happened in Real Estate in 2017 & How to have an Amazing 2018!
“20 Minutes of Successful Niche Secrets – EPISODE 44,”
Where Glenn McQueenie talks about what really happened in Real Estate in 2017 & How to have an Amazing 2018!
Glenn: Hi! It’s Glenn McQueenie. How are you? Just wrapping up for the 2017th season. What a crazy year it has been! Just hoping I can get a few minutes of your time. Just indulge me before you all go away for a great holiday and take some time off and get ready for an amazing 2018. I just wanted to do a bit of a year in review for 2017 and also, if you’re open to some mini coaching advice, set you up to have the best 2018 ever.
So let’s look at 2017. I mean, it really started in November and December in Toronto of 2016, because that’s when they brought in the stress test for people putting down payments under 20%, and that really caused that big push in the market that we normally don’t see in November-December. That lifted prices when they normally fall in those months, so that we almost started January of 2017 already up much higher. And then, of course, you recall the pandemonium that happened over the next three months where we started to see prices up 8-13%, and finally up almost 30-40% by March 31st, 2017. Then, of course, the provincial government came in with their hammer, with their 16 different things they wanted to do to try to cool the market. And I think you’ll probably agree that the final blow was that on top of all the other things, the federal government was really trying to push our market down (whether it be by tightening mortgage qualifications, shortening amortizations, and different rules that they were bringing in). And you saw in April how the market just shifted. It’s so funny, because from January to the end of March, I was telling all of our agents “Don’t take bully offers. You’ll always get more on the offer date.” And then, of course, as you get to April and May, if a bully comes in, just jump over it. I have the great pleasure of also working in our Keller Williams London office, and I was also teaching in Windsor, so I was able to almost see this wave ripple out. The first quarter in London, nothing really happened, and then the second quarter, all of a sudden it was crazy multiple offers which they weren’t used to (or in Windsor). Then it’s like, now you shift, and I remember teaching about the hacks to beat multiple offers. Then I was watching the Toronto market cool down in late spring, and London keep running all the way until almost the end of summer before it started to cool down, and then watching Windsor, that didn’t really get going until June or July, keep running almost right up until today. So it’s been really interesting just watching what’s happening in the market.
So here’s my first thought: Markets change. Markets move. It’s not what happens in the market; it’s really just your reaction to the market. You can fight it, you can deny it, you can say it’s not fair, but what your customers are really looking for is your leadership when a market shifts, so that you’ll be able to just say, “Okay, listen. The market has shifted. Here’s where it’s going. Here’s our new strategy.” And this is where we’re adding value in the real estate transaction.
Fast-forward into fall of this year when the federal government said, “I don’t care how much money you’re putting down. You still have to qualify under the new B-20 stress test rules.” Effectively, whatever you were qualified for in a mortgage, it just knocks you off about 20%. Now, will there be a corresponding drop in prices? I don’t know, because it’s not the only factor. We’re still in a booming economy. We’re at full employment, basically. We’ve got more jobs than ever. We’re still really, even in light of the two rate increases, at really historic low rates. I remember starting in real estate in ’89 and watching them go to 16%, where every home that we sold had a condition, and the condition was on the seller crediting the bank $20,000 to buy down the mortgage rate from 15.9% to 9.9% just so people could qualify. So it’s a different game, but to me, these are pretty historic low interest rates, and that’s a big deal for your clients.
So we’ve got the stress test, which could have an impact. We’ve also still got a pretty good economy and a great, roaring stock market. We’ve still got a land shortage. We’ve also got migration and immigration. Let’s face it: Ontario’s really where the majority of our new immigrants arrive, but we’ve also got this net migration where people are moving from all across the country to either Toronto or Montreal or Vancouver, either for corporate reasons or to get better jobs or whatever it is. There’s a pressure that just keeps on building. So I have no idea what’s going to happen to prices. There are banks and super smart people that employ lots of MBAs, and they’re researching this 24 hours a day (thousands of them), and they really don’t know where the market’s going. So I really don’t know. All I know is, when the market shifts, you shift with it. And if you don’t, then you’re just going to be falling behind.
So anyway, here are some of my thoughts for 2018:
- The most important is: your skills are your security. Not the brokerage you work for. Not the broker you work for. Not the manager you have. They’ll all leave one day. I would encourage you for 2018, the real focus is just keep getting better for the sake of getting better. I’ll tell you, in the 29 years I’ve been doing this, if you took everything I had away from me, I would have the skills to rebuild it just because my skills are the security; not the company that I work for.
- There’s been a lot of muss and fuss about the recent TREB decision (the recent loss to the competition bureau). I’m just going to tell you: it’s not going to mean a thing. We were one of the few jurisdictions that wasn’t releasing sold prices. Around North America, they’ve been doing this for years, and it has had no effect. If you think your only value is providing sold data, then I think you’ve already missed the game. It has nothing to do with that.
- The last 30 yards of the real estate transaction I don’t think is ever going to be digitized. I think we’ve already given up the first 70 yards to the Internet. We put all of our listings online now, when we used to control the inventory. Or we put all of our best practices. Google loves it when we come out with this stuff on our blogs or websites (over the last 15 years) about “The 10 Ways to Stage Your House” or “The 10 Ways to Win at Multiple Offers.” We’ve been giving them a lot of content. But the asset’s still so high that I just can’t see them digitizing the last 30 yards. Think about the billions of dollars that have been raised to get rid of agents. None of them have worked so far. The only ones making money are the people who are controlling lead generation, because they figured out that model. The more money they spend, the more leads they get. But none of them want to get into the brokerage business because they know it’s not about the leads; it’s about the skill and the lead conversion. That’s where all the skill is. I would even argue that all of the hard work of the real estate industry is in lead conversion, not in lead generation.
- The best lead generation activity you can do at this time of the year (and here we are in December), is just go visit your friends and your past clients and your sphere of influence. I wouldn’t walk in with your business card on your forehead, but this is where you get to reconnect and show gratitude. They’ll be asking you how the market is, and this is really where your focused lead generation is.
- What I’ve learned in real estate is that your enthusiasm will cover up for most of the deficiencies you have. You show me an enthusiastic agent who’s ready to go and just keeps going, and I’ll show you someone that people will follow. Remember: your enthusiasm will cover up for a lot of your deficiencies.
- If you keep talking about clients as deals – “I want 5 deals this month,” “10 deals,” “50 deals,” “I want to do 300 deals this year” – and you count deals instead of counting them as human beings and a relationship, don’t be surprised when it comes time for them to sell their house again if they count you as just a deal and not as a relationship. I really think in this new era where everyone’s so connected with their social media or whatever, people are still feeling very alone. The more that we can connect and serve our clients, and really come from, “I’m building relationships and I’m building a tribe of great relationships” instead of “I’m just trying to get as many deals done” – I think that’s going to be a winning formula for 2018.
- Success in real estate is really about your EI (emotional intelligence), not your IQ (intelligence quotient). I’ve seen a lot of smart people come to this business and try to leverage technology to cipher so they only get these super-qualified people, and it never works out for them. Your success in real estate is your emotional intelligence – your ability to bond with clients. You show me an agent that’s got their inner game together and also plays well with others, and I’ll show you a very successful real estate agent who really does well and can build a really big business.
- Your business right now is just a reflection of your current mindset. The mindset that got you to this level of production this year is not the same mindset that you’re going to need if you want to double it. You’re going to have to be working on your models and systems and skills, but most importantly, what’s between your ears – and that’s your mindset. I would really encourage you in 2018 to adopt the mindset of high-achievers. Adopt a growth mindset rather than a scarcity mindset, because you’ll find that when you have a growth mindset and you live in abundance and you’re very grateful and you live in gratitude, people are attracted to that much more than a scarcity mindset of “I’m just going to get a deal.”
- The reason I wrote the book “The McQueenie Method” and the reason I talk about niche markets all the time is that the whole purpose of your niche market is to attract other clients away from “we do everything” agents. There’s no value in an agent that runs around and does everything, like, “Sure. You want to look in Brampton? Yeah! Great. Newcastle? Love Newcastle! Barrie? Hamilton?” There’s no value. They know it. You know it. If you look at all the most successful long-term agents in this business, they’re all usually in one neighbourhood or in one niche market, or they’re doing one thing almost all the time. So get into a niche market, find out who the perfect customer avatar is that you’d love to work with, and just build a great tribe around them. Bring who you are and your natural abilities to a target market, and I’ll guarantee you’ll build a great tribe of really happy clients.
- Nobody says no to their own goals. When you can find out and deeply listen to the real goals and what’s really being said by your buyers and your sellers, then your whole purpose is just to help them reach those goals. It’s not about your goals. It’s not about a deal. It’s about deeply listening and understanding what’s really important to them, and then just laying the framework so that you become the easy button for their real estate transaction.
Just two more to go!
- There’s a difference between an amateur agent and a professional agent. An amateur talks like a pro and pretends to be a pro, but a pro agent just knows what to do. They’ve failed forward enough and they weren’t afraid to fail. They’re willing to fail their way forward to a success. I’ve noticed that the difference between amateurs and pros is not only the income you make, but the size of the scoreboard that people perform under. So just make 2018 the year where you become the top pro in real estate.
- Finally, I would just say count your wins in 2017. Ignore your losses. Stay in gratitude. Set bigger goals than you ever have before, without the fear of you not hitting them, and not focusing on the gap of what you didn’t hit. Even in 2017, you might not have hit your goal completely, but you’re way ahead of last year. How about in 2018, we just agree that we’re going to dream forward, set bigger goals, and measure backwards at our progress in gratitude instead of looking at the gap of what you didn’t get done?
Wishing you all the best in 2018! Have a great year! Bye!