Client Stories: The Tyler's Home

We were considering selling our house by owner, but are glad we didn't. Mike has really exceeded our expectations and his advice has literally been worth $1,000s. What I like most are his negotiating tactics. He negotiates just like I would... fair, but strong enough to get us the best deal. - Brodie Tyler - March 2017

I first met Brodie Tyler many years ago through a marketing group where entrepreneurs come together to learn and strategize ways to improve our marketing skills for our businesses.

Brodie has been a natural born entrepreneur his whole life. Even when he was in school, it was evident that he was thinking differently than his fellow students who were hoping college was going to land them a good job. Brodie saw college as a place to explore his interests, but he already knew he could create his own job.

Recently, I interviewed Brodie for my podcast/radio show called Idaho Speakeasy. Brodie talked about his interesting backstory and his latest entrepreneurial adventure called ReviewJump.com. He took an idea and figured out a way to create software and a company to help serve a great need for businesses. You can hear the full interview with Brodie here: http://idahospeakeasy.com/brodie-tyler.

After the interview Brodie and I went to lunch, and that is when he told me about his dream of building a home. He told me how he and his wife Lindsey loved their current home, but there were a few things they would love to change, and how he had always craved going through the process of designing his own home and creating something that would be uniquely theirs.

This conversation led to meeting Lindsey and Brodie at their home in Star, as they wanted to get my opinion on what they could sell their home for.

Before we discussed the pricing of their home, I explained our documented approach to maximize client profits by following our system called the Listing Triangle™ and how we leverage a “Value Driven Approach” versus a “Price Driven Approach.” We discussed what needed to happen to maximize the sale price of their home.

Maximum value doesn’t ‘just happen,’ it must be purposefully engineered every step of the way.
I also went over our different commission fee structures. They elected for my Consultant Based Fee Structure, which would help them save thousands compared to what most real estate agents charge.
Brodie said he was committed to doing what they could to maximize what they would net from the home, so they could apply as much as possible to their next home. We came up with a list of tasks and a timeline to get the home on the market.

I find that when presented with a clear path to success, my most committed clients are more than happy to do what they can to put themselves in a position to win.

The Tylers had a significant punch list of items to do prior to listing the home. Having four kids at home made these tasks extra difficult, but they persevered and made it happen.

Weather over the winter caused some delays in getting their home painted, but it wasn’t long before I got a text from Brodie saying, “We are ready, schedule the photographer.”

When I came out to their home to meet the photographer, I could see instantly that Lindsey and Brodie had worked very hard to get the home ready. Lindsey was picking up the kids from school and Brodie was running around finishing up some last minute clean up tasks before the photographer showed up. I jumped in to give him a quick hand by finishing the vacuuming of the upstairs bedrooms.

My photographer Rusty arrived just in time. The house looked transformed from when I first saw it and I knew we were going to be able to maximize the sale price of their home. Had the Tylers skipped doing their punch list to get the home ready to sell, I know for a fact their home would have sold for $15,000 - $25,000 less than it should have.

During that visit I explained what would happen next. I take the professional photos through a special editing process (it’s one of my secret weapons that attracts 3-4 times more buyers to my listings compared to other competing homes). The pictures of the home help tell the story of that home, so we work very hard to get that story right. We also discussed our initial marketing plan that is designed to create a sense of urgency for buyers to want to see the home as soon as possible, which is all part of our Visibility strategy for our listings.

We launched the listing on a Thursday morning and immediately had a request for a showing. I followed up with the agent right after the showing and he told me how much they loved the home. I told him that we had other scheduled showings that day and a few other strategic comments to further build urgency about the property. My goal was to get them to submit an offer that same day.

Later that afternoon there was a second showing on the home. I called the agent after the showing and he also told me his buyers really liked the home. I told him I anticipated an offer from the other buyers and other details to further amplify the urgency for the home.

We got an offer from the first buyers at 6:30pm. It was full price, just what we were looking for. I was so excited for the Tylers. As it is with all sellers, there is a lot of anxiety that builds up prior to listing a home. To see the plan unfold exactly as we were hoping was a great feeling. As I was typing up the email to send to Lindsey and Brodie, I saw a second offer come in. It was a full price offer, too!

It was so much fun to tell them the good news. They were so excited. I remember Lindsey saying, “Wow, this is really happening.” I told them based on my read of the buyers that I believed I could negotiate even better terms for them.


The end result was that we were able to negotiate an offer for the Tylers that was $5,000 above their asking price, plus the ability to rent back their home for up to 60 days after closing! An amazing outcome, for which I give credit to Lindsey and Brodie. The home would have sold for a lot less if they had not been so willing to follow the game plan we designed. The Tylers also saved close to $6,000 of traditional real estate fees by electing for our Consultant Based Fee Structure.

List Price: $297,900
Sold Price: $303,500
Days on Market: 1
Net Results: $5,600 over asking price
Commission Savings: $6000 (using our “Consultant Based Fee Structure”)





Congratulations Brodie and Lindsey! I’m looking forward to seeing Brodie following his dream and the Tyler family having a new home they can cherish for many years to come.
By treating your home as an investment like a business with a stock price versus a home with a sale price – there are unique ways to manipulate the perceived value of any home on the market. For a more in-depth discussion on we maximize homeowner profits, request your free copy of my book, The Value Driven Approach to Sell Real Estate.
Or if you would like me to come diagnose the best solution for you to net the most out of your home, just reach out to me personally anytime. My cell phone: 208-340-8399.
Cheers,
Mike Turner

Forget the TO-DO-LIST, do this instead…

Time is the ultimate equalizer. We all have the same amount of physical time each day. Doesn’t matter who you are, we are all bound by the 24-hour clock. 

Managing my daily productivity level is one of my greatest struggles as a business owner, but it is also one of my biggest strengths. I’m not naturally an organized person. My mind tends to want to jump around from one task to another and my day is full of interruptions, which doesn’t help.
I’ve been able overcome a lot of these challenges by making a consistent effort to work on improving my productivity.  I often re-read books on the subject every year and listen to podcasts and audio books in my car around this topic because I can instantly see my daily productivity go up when I take time to learn or remind myself about strategies to get the most out of my day. 
If you have seen any kind of training regarding being more productive, I’m confident the advice you received included something about using To-Do-Lists. 
If you are not currently making lists of what you want to accomplish during the day, week, month, or year, then I agree with this advice. You need to have some sort of plan. 
One lesson I’ve learned is that To-Do-Lists are really depressing…
There is so much going on in business and life that I almost never complete the to-do list for the day or week, which kind of sucks. It often makes me feel like I can’t enjoy personal time with my family and guilty about taking time to exercise because I have important stuff on my list that isn’t finished yet. 

This of course, leads to unhealthy habits of not spending enough quality time with loved ones and ultimately poor health.

The Solution:To-Do lists by themselves are just not the answer. The missing ingredient is pairing your list with your schedule. If it’s scheduled, it has a way better chance of getting done. It also helps you see when your To-Do-lists are too big, which in turn will help you set more realistic expectations for your day and plan better for the week and month. 
Designing a schedule that you can stick to is a topic for another day, but I would highly recommend you begin assigning specific times on your calendar for everything on your to-do list. By doing so I’m confident you’ll see an instant uptick in what you can accomplish with your limited time. 
Cheers!
Mike Turner
Mike Turner is the founder and CEO of Front Street Brokers Real Estate, host of a weekly radio show and a podcast, author of Value Driven Approach To Sell Real Estate and Agent Entrepreneurs. When not traveling on overseas adventures with his family, Mike lives with his wife and two daughters in Boise, Idaho.

Getting Uncomfortable


A Letter From Mike Turner
(Feb 25-2017)


One of my first jobs as a kid (like many) was mowing lawns. My Dad was a teacher at the local college and had extra time in the summers. One summer he took over a friend’s landscaping business.  

This was more than just a side job; he had a bunch of equipment and a sizeable list of customers to serve. Naturally, he looked to me to help him out and he paid me well for my help.

It wasn’t long before I found myself mowing the lawns all by myself. I don’t know if that was my dad’s plan all along, but if it was, it was a pretty good plan.  

I lived in a small town and my truck was highly recognizable all summer long as I had two mowers and plenty of grass clippings packed into the back.  

My friends would often stop when they saw me out working to heckle me. Not the mean kind of heckling, more of the typical banter between friends. I knew even then they were just bored or had nothing better to do.

At times I did envy their freedom. Especially on the beautiful days when they were going out on their boats (many teenagers in Sitka, Alaska save up to buy a boat instead of a car), headed out fishing or camping.

If there was a girl that I liked, she and her friends would always seem to pull up when I was green with clippings, covered from head to toe in grass.  

I didn’t love that job. In fact, there were many days when I hated it. However it did pay well, and it taught me skills far beyond how to make your front lawn look amazing.  

That job taught me how to keep a schedule, to track my work, to be accountable to others, that if you’re going to get paid for a job you do it to the best of your abilities every time without exception, how to manage bank accounts, receivables, invoicing, preventative maintenance on equipment, and how to lift a professional mower into the back of my pickup all by myself (that is an art).  

At the time I didn’t think about the fact that I was running my own business. It just kind of fell in my lap and I kept it going the best I could. It’s clear now how great it was learning those business skills at a young age.

One of the biggest lessons or keys to success I have learned throughout the many businesses I have been a part of is the necessity to get uncomfortable. In fact the more uncomfortable I get pushing my business, the more I find it leads me to more success.

As a parent, I hope to help my daughters have the opportunity to learn the skills of business. I was having trouble articulating this lesson on being uncomfortable, but yesterday we had a breakthrough.


My wife is homeschooling our daughters this semester. We are testing it out to see how it goes.  So far it’s going well. I have started taking my daughters to work with me on Fridays. They still have lessons they have to work on while at my office, but I am trying to include them in different aspects of my business, as well as help them develop their own ideas about business and entrepreneurship.  


Their latest idea for making money is to sell hot chocolate and coffee outside the front door of my office in downtown Boise. We’ve been talking about the costs, the equipment, and steps we need to take before we can start, because of course they want to start immediately.


I explained to them that one of the steps we needed to take was to go over to City Hall and speak with the City Clerk’s office to see if we need to get and pay for a permit to sell coffee and hot chocolate outside my office.  

Emilia and Ivy in front of City Hall after the meeting with the Boise City Clerk
At first they thought this task sounded exciting, so we bundled up in our winter jackets and walked over to City Hall. When we walked in I could see that we needed to take a number and wait our turn. Once I showed them that we were two numbers away from being called on, they got nervous.  


Suddenly they were back peddling on their idea. I don’t think they fully understood the situation or what would happen next, so they became uncomfortable. The easy thing for them to do would have been to change their minds about their business idea, to walk out of the room so they didn’t have to speak to some grown up about their business plan.


I would have let them leave, too. This was their idea; I didn’t want to force them into seeing it through. I did gently remind them about the business lesson of being uncomfortable. I told them that the fact that they were nervous or unsure about the meeting might just mean they were on the right track for great success.  


I could see the lightbulb going on in their minds. They got the lesson, and they rocked their meeting with the City Clerk employee who, by the way, was super supportive and great with the girls.  


Comfort is stagnation. Growth requires pushing into a state of discomfort.  


This important business lesson I’ve learned may be why I’m am always looking for ways to push and elevate my business. It is a habit now. But this year I’m really doubling down and making myself extremely uncomfortable.  


One of the biggest drivers of this is my Consultant Based approach to listing and selling homes. I’ve come up with a new way for homeowners to pay Realtor fees at a fraction of the traditional costs, because I’m giving homeowners the option to pay me and my team on an hourly rate, which leads to massive savings. Homeowners will still pay my fee at closing, just like you pay your accountants once they finish your taxes.  


I’ve written more extensively on why I’m doing this in past letters so I won’t get into all of that now, but I can say I have had two clients sign up for this new method of selling homes. Their homes will be listed next month. I’m estimating that they’ll save between $6,000 and $10,000 in Realtor fees.  


I am really hoping the word gets out about this new service, because for me to continue to be able to offer it, I’ll need more friends like you to help me spread the word. So if you know anyone thinking about selling their home this spring/summer, I’d love an introduction.  


My goal is to offer something that no else is willing to (which is extremely uncomfortable), but a mission that I believe could really make an impact for my clients and therefore have a positive impact on my business.  

At least these days, getting uncomfortable in business doesn’t mean smelling of moss and being covered in grass clippings.  


Here’s to finding success in uncomfortable places,  
Cheers!

Mike Turner

Another housing bubble in 2017? Not in Boise, see why





This post was shared from Mike Turner's Youtube Channel

Subscribe to my Youtube channel: http://www.youtube.com/c/MikeTurnerBoise 



Mike Turner examines the health of the Boise Idaho real estate market and looks for clues and warning signs that indicate another housing bubble is coming.



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Mike Turner is a Boise-based author, entrepreneur, and innovator of the real estate industry.  Father of 2 amazing daughters, married to a NY Times Bestselling Author - AK Turner (she is WAY cooler than Mike), owner of an award-winning real estate firm in Boise called Front Street Brokers and a Licensed consultant on real estate and marketing. His current addictions are eggnog, making his wife laugh, and world travel with his kids. 

Jan 2017 Boise Housing Market Analysis - NEW Boise Record




The Boise housing market has reached NEW record, but it's likely NOT what you would expect...Mike Turner of Front Street Brokers, breaks it down and explain what it means for you.

Contact Mike Turner anytime for details and questions about the Boise housing market. Mike@FrontStreetBrokers.com

If you would like to subscribe to my Youtube channel go here: http://www.youtube.com/c/MikeTurnerBoise 

Mike Turner is a Boise based author, entrepreneur, and innovator of the real estate industry.  Father of 2 amazing daughters, married to a NY Times Bestselling Author - AK Turner (she is WAY cooler than Mike), owner of an award-winning real estate firm in Boise called Front Street Brokers and a Licensed consultant on real estate and marketing. His current addictions are eggnog, making his wife laugh, and world travel with his kids.

Changing the Way Real Estate Is Sold -The End of 6% Fees


The year I bought my first home, my wife and I were living in the basement of a friend's house in California. Our friend, who was retired, decided that he was going to move to a senior living community and wanted to know if we would like to buy his home.

Having no idea if we even could, we asked another good friend of ours who was a real estate agent about it. She put us in contact with a lender and the rest is history. We bought our home with no money down and began remodeling it. Two or three years later, we found out our home was worth way more than what we paid for it! Woohoo! It felt like we hit the jackpot in Vegas.


This was our first home we bought in Benicia, CA
We called our Realtor friend and asked her to help us figure out what we would net if we sold the home. But when I reviewed the net-sheet she worked up, I felt like someone punched me in the stomach. Having never sold a home before, I didn’t realize how the seller pays for all the real estate fees and what the typical costs were. I was even more floored once I learned my agent was only getting half of what we were paying.

I felt like if we were going to pay all that money to sell the home, I’d rather our friend get the money than someone we didn’t know. We ended up deciding to keep the house, the fees associated with selling the home were high enough that it changed our minds about selling. Little did I know at the time, but the lesson I learned that day would change the course of my life. More on that in a minute.


Fast forward to today. I’ve been a real estate broker for well over a decade. I’ve written 2 books on real estate and I’ve been a top selling agent in my marketplace for the last 8 years.  


Things are going good, but starting in 2017 I’m going rogue. I’m going to totally flip my real estate business on its head and attempt to change the way real estate is sold.  


Seems rash, I know, but I see the real estate industry beginning to break at the seams. It may take another 10 years to fully unravel, but it will happen.  So I’m going to run an experiment in 2017, and attempt to sell homes an entirely different way than what is always done in the real estate industry.

Do you remember Borders bookstores? Do you remember when people made their travel plans through a travel agent? Do you even take Taxis anymore? Industries change, some quicker than others.


The traditional 6% (3% to the listing agent, 3% to the buyer’s agent) real estate fees have been around for 100 years. Some agents charge something different than that, but the vast majority of Realtors charge sellers 6% or something close to it. That’s what I’ve always charged in my career as a real estate agent, and for good reason. I know that when a seller picks me over another agent who is charging the same fee, that I will net my client more money. A lot more. In other words, I make sure I earn my fee and make sure that hiring me is always a good investment.


My New Mission

But like I said before, I’m about to go rogue and offer homeowners a new way to sell their homes in Idaho. Starting in 2017, I will give homeowners the option to sell their home through my Consultant Based Approach, which I have specifically designed to help them save thousands, often tens of thousands of dollars, on their real estate agent fees.


I’ll be offering the same services that already help my clients net tens of thousands of dollars more when they hire me over other agents in the area. (I explain in detail how I do this in my two books The Value-Driven Approach to Selling Real Estate and Agent Entrepreneurs.) I’ve even trademarked my documented method of selling homes called the “Listing Triangle” because it works so well when I have sellers who are willing to follow the plan we suggest for them.


The net savings homeowners should gain from selling their home through our documented approach, combined with the savings from my new consultant based fee structure, can have a compounding effect, equalling awesome results when someone sells their home.


For example, I just meet with a friend who wants sell their home this spring. I walked them through my recommended plan to help them get the highest price for their home, with which they were completely on board and ready to move forward. The top end for their home is about $289,000. I then shared with them that my new plans to offer sellers the option of a completely different fee structure, and laid out two examples for them: the traditional based fee structure vs the consultative based fee structure. They saw immediately that they would save between $3,000 - $8,000 in real estate fees choosing the consultant based approach.


Let’s address the obvious question? 

Why would I charge so much less, while offering the same services, when I’m already a very successful real estate agent?


The answer is twofold.  



Number 1: I consider myself a pretty savvy businessman, in-part because I’m a tenacious learner. I stay humble about it because I don’t pretend to know everything and I still have a lot to learn. However, I’m always looking at trends and shifts in the market. I do this on a much broader level than most and what I’m seeing is that the traditional model of selling homes in America is going to be seriously tested over the next decade.


The real estate industry has been tested before, and the traditional fee structure model has always won the war. But just like the music industry, the travel industry, the book publishing industry, taxi unions, new technology and shifts in consumer demand have proven they can turn an industry upside down. I’m already seeing the traditional model of selling homes beginning to shift in areas outside of the U.S.
Rather than waiting for change to be forced upon me at some point in the future, I want to get in front of it right now, which will ultimately put me in a dominate situation compared to my competitors. In other words, I’m playing the long game. I don’t want a thriving business for the next 3-5 years, I want a thriving business for the next 10-20 years.


Number 2: Here’s the second main reason WHY I am doing this.
(Note: it’s just me adopting this approach, not my whole brokerage, as most agents can’t absorb the risk of such a large cut on their income, and I don’t blame them. We all have to put food on the table and pay our bills. Every person in business has a right to charge what they want to charge for their services. It’s their business and their choice.)


I’m doing this because I’ve never really liked the traditional method of charging a set percentage of the sale price when a home sells.  


Remember my story when I first learned about how real estate fees were paid when a home is sold? That experience planted the seeds for me eventually getting my real estate license. Not so I could make those same fees other agents were making selling homes, rather, my initial reason for getting my real estate license was so I could avoid having to pay so much in real estate fees. I had started buying and selling investment properties and I figured being licensed would give me resources and knowledge to find other great investment properties.  


So even from the beginning of my career in real estate, I wrestled with how real estate fees were paid. Of course, agents who are very good at their job will earn their fee. But as we all know with real estate agents, homeowners don’t always get what they pay for. There are so many people having horrible experiences with the real estate agent they’ve hired to sell their home, yet those agents charge the same amount for their services as I do. Which has always bothered me.

There are over 5,000 agents in my marketplace where I work in Boise Idaho, nationally there is well over a million agents. Another way of saying that is you are in the minority if you don’t have at least one relative that is a licensed agent. The reason there are so many Realtors is because it is so easy to get your license, which has lead to a nationwide problem of having too many inexperienced, unprofessional, and unsupervised agents doing less than stellar services for homeowners, but with most of them still charging the same 6%.  This trend plus new technologies are slowly leading the demise of the traditional model of selling homes in the U.S.


Sales VS. Consultative Culture
Therefore, I want to attempt to change the way real estate is sold or at least give homeowners more options and add more transparency in the process of selling homes. I believe the process of selling homes should move away from traditional SALES culture, into more of a CONSULTATIVE culture.   


Do you look at your accountant as a salesman?

Probably not. Why is that?  


The difference is that you pay your accountant for his or her advice so that you can avoid spending more on taxes than you should. You pay your accountant to handle important tasks that you don’t want to do and/or don’t want the responsibility of screwing up which can lead to trouble with the IRS.


Do Accountants, Doctors or Attorney's, give you a sales presentation before you hire them?  None that I know.  They give you a consultation.  In most real estate offices around the country they teach Sales Scripts to agents to sell you on why you should hire them. They also practice scripts to get homeowners to lower their price. These Sales Scripts work, which is why they use them.  The problem of course is this breeds a sales culture rather than a consultative culture.


I despise using scripts, and have never recommend them to the agents I train. The first real estate office I spoke with when I initially got my license was a very large national company that should remain nameless at this point in this story, required that new agents spend dedicated hours each week learning and practicing scripts.  I couldn’t believe it. I was sure the scripts worked but that was not what I signed up for when I decided to start my own real estate business.


Scripts are used solely to sell, rather than to advise and consult.  Scripts are needed when you can’t think for yourself or provide advice.  


What if you found out that doctor had practiced sales scripts to get you pay for higher price medicine than you needed so he could benefit from it personally?  Yikes, right?  The thought of it is unsettling to me.  I know I wouldn’t trust anything else the doctor told me.


What if we paid accountants based on a percentage of the total you paid in taxes?
Suddenly it seems like a conflict of interest.
You might wonder how important it is for your accountant to save you money and to have your best interests in mind. In that situation you would still have honest and effective accountants, but you would also have others that weren’t. I know I would have a harder time trusting advice from an accountant under those circumstances.


A similar “conflict of interest” exists in real estate. How do you know you can trust the advice you are getting from an agent when they pressure you to lower your price. Is it good advice or is it because they are just focused on getting a quick commission?  


Why Change the Real Estate Fee Structure:
If the fee the Realtor makes is NOT based on the sales price, then I feel you could trust the advice of the real estate agent at a much higher level. It becomes more Consultative based, just like it is with your accountant.

Others have attempted to remove the sales price from the real estate fee structure (using a flat fee or some kind) but ultimately failed because they also reduced the services they offered to sellers and provided limited or even non-existent consultative support throughout the process. I studied these agents and brokerages and it clear to see they all had the wrong approach and sellers often lost thousands and endured many more months on the market rather than saving money.


In 2017 I will be implementing my Consultant Based Approach, but at the same time I will continue to offer the traditional model as well. I want to give home sellers options. My new approach will likely not appeal to everyone, but I believe it will to most. I already have one client who has opted for the new approach, and he said it was a “no-brainer.”


This is an experiment and one that I take very seriously.   I don’t know yet how it will be received, but I plan on reporting back on what I discover and learn along the way.  If you ever want to learn more about my new approach or get my thoughts about the state of the local housing market, reach out anytime.


I am so excited about this new year, this consultant based approach is one that I have wanted to try since I started my real estate career, and since today is my birthday, I figure why not go out with this year with a bang. I can’t wait to get started with it.


Here’s to the New Year, I hope you all have an amazing 2017!


Cheers!


Mike Turner