What Millennials Want From Real Estate Agents featuring Kristin Messerli & Dave Savage

What Millennials Want From Real Estate Agents featuring Kristin Messerli & Dave Savage

What’s up REsource nation?! We’re here
with Kristin Messerli and Dave Savage. Hey! We’ve got a treat for you today. We’ve got two superstars and one gray
haired man interviewing some awesome people. We’re at the Hyatt in Seattle
at the lender’s one conference. Appreciate you guys carving out
time for theREsource – this is huge. This is huge. I can’t believe this
show you guys put together here. Somebody asked us earlier “how long
you guys been doing this?”. I was like, a pretty long time… 10 years. And they were shocked and I wasn’t sure
if I should be offended or like “Oh, thank you!” I don’t know.
But yeah, 10 years, man. Yeah, well you guys do a great job
and this is next level. You know, just a podcast video. Very cool. We keep trying to evolve again.
We’ve been doing this 10 years. So this year we started the masterclass
series and now we have the podcast show. So relatively new, but again, I
don’t,I don’t want to be a dinosaur, so we gotta continue to evolve. So that’s how you roll,
man. You’re always changing. I’m trying! Always growing. Yeah, RC and Aaron continuedto push us in the
right direction and I’m the old dinosaur like pulling us down. So anyways, I got
you guys for a short amount of time. We’re about to get kicked out
of this really cool space. And so you just got done, you’re on stage speaking about breaking
into new markets. Is that what, how’d that go? It was great. Yeah, it was fun. How would you rate yourself? I mean I felt, I brought
my A-game, so yeah, I’m don’t mind to say I
crushed it today! But yeah, we had an urban planner and a
policy analyst on the panel as well. So it was cool because we had I think, a different conversation
than these typical panels. What were the big takeaways real fast
before we get into our conversation from that conversation, Big takeaways were that we need to bring
all the stakeholders in a community to the table and really work together. Like it’s not enough just to say
I’m going to go after this market, or these new markets or
minority markets or whatever. It’s you really need to understand the
policy issues and local community issues. And the influencers and work together
to improve the community and bring more people into the market. That’s awesome. So that’s
kind of right up your alley, you’re with cultural outreach, you speak to underserved communities
and millennials and, and really it’s, it’s a space that’s interesting
that nobody’s really owned
and you kind of moved into that and I love it. I want to pick both of your brains though
about that’s a challenge that we just talked about and there’s so many
challenges facing our industry right now. We’re going to get into some of them with
some of the new mergers with Realogy, you know, Amazon and
Quicken. You know, Dave, you just rolled the new advice engine
and financial literacy continues to be a challenge at which if you’re a lender
you definitely gotta hook up with savages team and check it out. It’s really,
really cool. Um, our adoption rates as, as a industry guys are low with
this type of stuff. And you know, Dave has been providing value at a
super high level for the industry for so long, which I appreciate and
we definitely need to be that. That’s another challenge.
Financial literacy, I’m sorry, but the CD and the LD alone are
enough. But that’s not my question. But if you had to pick one of them, all the things that are
happening in real estate, cause we have realtors that watch
and lenders real estate and lending. What would you guys say
is our biggest challenge? I know that’s tough because there’s
so many happening right now, but if you had to just like pick
one right now, what would it be? Who wants to go first? Oh, I guess I’ll go first. So, so I think we are at this point where
it’s very clear to everybody that they need to change. They need to upgrade, how, how they deliver a consumer
experience, how they leverage video. And so it’s just changing
behavior. You know, I think that is the single
biggest challenge people have. Um, when I talk about the advice engine, I’ll, I’ll speak to what I think
we need to do as an industry. What companies need to do,
what individuals need to
do, give some ideas. But I, I just think, you know, rising our skills to deliver the consumer
experience that consumers expect. The mortgage industry, if you look
at how we’ve been quoting rates, it hasn’t changed in 40
years. You know, we’ve, we’ve innovated with how we take an
app now, you know, point of sale. So that’s innovative. But how we
actually, you know, educated consumer, how we deliver rates and fees hasn’t
changed. And that’s just one example. There’s lots of them that have changed. That’s a really good point. Yeah. I really think that education and how
lenders are educating consumers through their marketing and in their
communities is the biggest challenge. I think there needs to be education
to lenders and loan officers, on how to reach those markets and how
to provide the customer experience. But to your point about financial
literacy, I mean, in, in our experience, in working in those markets,
there’s just such a, a lack of financial literacy
in millennials and this
generation and a lot of the communities that you’re trying to,
that lenders are trying to reach. And so I think that, you know, people don’t even realize how much we
use lingo that people don’t understand. And, um, how important it is to be providing
education in order to allow people to connect with you. I was guilty of that. I said LE and CD
for consumers watching or maybe realtors, that’s a loan estimate and the
closing disclosure. I know we get, I actually preached, so
I just broke my own rule. Like nobody knows what an LOE is.
So we call a borrower and be like, I need an LOE. That’s a letter of
explanation. We’re trying to explain X, Y, and Z. So I just broke my own rule.
Thank you for calling me out on that. But if you’re a consumer
watching a realtor or lender, I mean there’s more to your loan. It’s 30 years of your life that
you’re giving a commitment. It’s more than just two pieces of paper,
three pieces of paper, which is where, you know, Dave’s technology comes in, but
you’re right. I mean, this is where I, I don’t want to fight the evolution of
the industry. Uh, I don’t know that. And we just had a show called the one
stop shop for real estate lending. I think some of it works
in different spaces. I don’t know that it’s going to work
with, you know, buy, sell, finance, insurance all in one space.
But today’s point, yes, we could have a POS that’s faster. Yes we could deliver the
education piece better. It’s really interesting that nobody’s
really pushed on that. I mean you have, but um, there’s not a huge push out push out
side of that to deliver and educate the consumer better. And this is my point, we’ve been kinda conditioned
to Amazon-ize, everything, push button, you know, get whatever.
And we, so we sign things all the time. And this is the bad thing about DocuSign. We don’t really know where we’re
clicking on or attesting to. And that’s because that’s how we
bought stuff on eBay or Amazon. Maybe even how we bought a car. But we
need to pump the brakes in my opinion. You guys, I’ll ask if you agree, disagree.
When it comes to, I mean, housing, it’s not, it shouldn’t be. Just
because we can doesn’t mean we should, it’s not push button. Sorry. Quicken.
Not calling you out but get mortgage. There’s more to it.
Agree, disagree am I off? Yeah, totally agree. Yeah. I think consumers really,
I mean this is a mortgage coach, you know, mission, but I, I think consumers really want to
understand what they’re signing and what they’re getting into, but they often either they just trust the
professional that they’re working with or they have so much fear around it that
they step back and they hesitate a lot about getting into the
marketplace. Like we, we just hosted a millennial event
home-buying event in LA and we had 40 millennials come out and so many of them
said that they had started the search online, they’d started looking into things and
then just got extremely overwhelmed and didn’t know what they went to trust or
who to trust and they didn’t feel like they could reach out to someone because
they knew they’d get sold to if they did that. And so if they’re able to actually
clearly see these are my options and be empowered with that information, then
they know that they’re making that, that decision for themselves. Yeah. And you said a word that I
think is so important options and, and I’ve watched your show for years
and I don’t know if you use this term extreme transparency, you know, I
mean, consumers need transparency. Consumers need options and then
they won’t feel sold to, you know, it’s all about giving them options
in every aspect of that. You know, just simple things like someone’s
thinking about buying a home down payment options, you know, purchase price
options, you know, they don’t want to be, you know, they don’t want what
they can search on Google and get, and if you give them one option, they feel like you’re pushing
something or they don’t feel informed. So you’re talking about
millennials and I know, again, that’s a space that you filled quickly,
which was awesome because so many, it’s like millennials became a term
and then they became mysterious. We don’t know how to handle them and we
don’t talk to them. We don’t hire them. So it’s still funny to
me that that’s a mystery. But I appreciate you kind
of filling that void. But so for lenders and realtors
watching or any entrepreneur really, um, you talked about millennials
kind of being, you know, kind of had like this mindset when they
got overwhelmed. Um, I think everybody, uh, mistakenly just believes
that while they’re young and
they want to just leverage technology to the max.
But can you speak to that? It doesn’t sound like
that’s what you were saying. You’re saying they went maybe
wanted more of a conversation. Definitely. We’ve been pretty surprised that we’ve
been surveying millennials across the country for awhile now and hopefully
we’re gonna release a report on this next year. But, uh, but basically just wanting
to hear directly from people what, what is your thought process? And
so many people are saying that they, they really want to talk to someone.
They, they feel like what they read, um, doesn’t tell them what
their situation is like, which again is a great thing about
mortgage coach is giving something that’s personalized, customized to their, um,
what, what is true to them. You know, and so I think, um, in a lot of people that we talked to
say said that they felt nervous that if they talked to someone that, that they would get sold to or they get
laughed at or they, you know, they just, they should know some things before
going there. Um, and, but I think yeah, there’s just, they don’t know
who to reach out to and um, and there’s just a lack of trust. So I’m gonna throw you guys a curve
ball, cause I was just thinking, I wonder if this applies in real
estate, so mortgages complex, right? There’s a lot of money on the line and
yet we should do some homework when we have, you know, we’re taking on a $300,000
loan. There should be a conversation, but I wonder, you mentioned earlier, and I think the stat is still nine out
of 10 people find their house online. Do you guys think that that same
conversations had in real estate or do you think they’re, they’re comfortable
buying a house, you know, filling out a contract, like with the Redfin style
strategy or Zillow style strategy, which is just kind of fill in
the address and purchase price? Or do you think this will
apply in real estate as well? I mean, what I’m hearing is people are very
comfortable filling things out online and, and they don’t realize, they have no clue at what complexity
goes into the actual, you know, contract negotiation and the
whole, the whole transaction. So I think realtors need to do a little
bit better job in a lot of cases of explaining what their role is in
that process. Um, and so yeah, I, when I sold my home, I, I chose to not use a realtor and my, the person buying didn’t have a realtor
either. And it was just a total mess. And I just, I wish I interviewed
a bunch of realtors and I’m like, why didn’t any of you tell me how hard
this is going to be? So, um, and then, you know, but I do think that in competitive
markets that also people are getting overwhelmed with the process of looking
for a home and then losing out to, to another bid. Um, and so there it becomes a higher demand
for realtors in those markets too. Yeah. The realtors are screaming at the screen
when I started that question cause they’re like, there’s more to it Ryan,
than just filling that out. Yeah, I understand. I got your back.
I’m trying to fight back for your, for all these changes. But I think that’s the assumption that
it’s just filling out an address and a purchase price. And you’re right,
there are so many of those situations. It’s not the first time I heard
that things always go wrong. And it’s even just having a third party, a disinterested or interested third
party in there trying to, you know, between you and the seller at the very,
very least as needed. But you’re right, there’s so many variables that can happen. And I think other outside of traditional
real estate are trying to diminish it to where it’s just like a DocuSign
and there’s more too. And I mean Dave, you worked with everybody in the
industry on, on the lending side, but do you agree on the real estate side? Are you or do you feel like that’s going
to be a continued challenge for realtor moving forward? Well, no, I, I think in both spaces the best teacher
will always have a seat at the table. So if you could be an educator and I do
think if you’re local referral based, the stakes have changed. You know
like the digital mortgage, the ibuyer, you know, technology coming in and its
ability to execute the transaction. Yeah. You know like whether it’s
real estate or mortgage, we have justified a lot of
our compensation and spend
a lot of our time on the transaction being a problem solver,
you know, and, and the transaction, you know, by 2027 it will be
unrecognizable on both sides. And so all the differentiation needs to
happen in the education experience and the advice experience. And I, I would put a challenge out to realtors
and to mortgage professionals that your advice experience needs to
be so tangibly valuable. People would cut a check for it. Like, I would pay you $1,000 to sit down and
help me pick the right mortgage and I’ll go get my transaction over here. You
know? And I just made that number up. But there needs to be that type of
tangible value and you need to be able to explain yourself, you know, to the point, like the realtors were
not able to convince you. You not only need to deliver
that education experience, you need to be able to articulate that
at the point of sale in a way that’s unique and different on both
sides. Absolutely. And, um, and really the two commodities I think
that every realtor and marketer needs to work on is leadership. We need to be
better leaders. And marketers, you know, like that’s your thing. Like a great marketer will
always have a seat at the table, right? And a great marketer in this
market is educating constantly. And I think there’s so many people that
are realtors and loan officers who are waiting too long to really put that
brand forward that they’re going to be an educator and advisor.
And um, and so, you know, one millennial home buyer that I recently
talked to was saying that she realized halfway through the transaction that she
was so she wasn’t gonna shop around for another loan officer or whatever, that she had chosen a great guy
because he would constantly, he would answer her questions and she
could trust him. But, uh, you know, it’d be great if earlier on she knew that
he had laid out the whole process and you know, responded to, I dunno, created a custom plan for her that way
she understood that right away and wasn’t rate shopping, you know, from there. Yeah. You Dave are saying their advice should
be so good that somebody would write a check. I don’t know if you guys know, but Northwest MLS was the first
MLS to change a huge change. We just talked about it with Brian
Steven from national real estate post, but they changed and it’s,
it’s very, very new. And, and that scenario will happen very
quickly because the change is no, is the buyer side commission factored
in just automatically on a listing. And so the changes, if there is, it’ll be noted on like the Redfin
or Zillow listing on the MLS feed, it’ll show buyer’s commission is X. So it’s going to bring that
conversation to light quickly. And the other changes, they
don’t have to factor that in. So you may see houses only listed
with the listing commission, which is only 3% so what
you said is very, very true. You’re going to have to say, Hey, there’s no commission in here for me to
sell this house. So as my advice is my, you know, is my education
worth, like you said, $1,000, cause they may have to write that, Well it has to be thousands of dollars,
you know what I mean? But, but, but it needs to, you need to
have tangible, obvious value. And one of the keynotes that I’m doing
right now is just all like how to be the obvious choice. You know, I think that
should be the bullseye for every realtor, every mortgage professional,
how can I be the obvious choice? So when you really look at the
companies that are killing it, Amazon, they’re are the obvious choice and,
and, and, and, uh, buying anything. Uh, you know, everybody’s
got a big bank app. So while they may not be the
obvious choice in the mortgage, I mean everybody’s got one of their apps.
You look at, you know, Uber, you know, um, Netflix, you know, they, they’ve all figured out how to create
a business model of convenience, of transparency, right, of advice, where they’re the obvious
choice and we need to do that. And we can do that as a local
provider. I do believe, um, for the for those that change and
create an obvious choice platform, I think the best years are ahead. Yeah. The, the big takeaway just listened to
both of you today is so many realtors and lenders get so frustrated and they, they will yell at the screen if they’re
watching something on social and be like, that’s not what real estate
is. That’s not what, you know, you don’t diminish mortgage to
quicken only, okay to your point, she didn’t know guys. Like that means that we got to do a
better job at creating content collateral and educate the consumer. Like that’s
on us. There’s a million realtors, there’s a a hundred thousand
independent mortgage bankers. We can put out some really good content.
So that’s a huge takeaway for us. Again, if you’re upset about
the narrative, take that
narrative back. Control, educate, we’re getting chased out cause we have a
really cool spot here in Seattle and so we’re going to have to cut
our interview short. But guys, I thank you so much for your time. If
you have questions for Dave or Kristen, hit us up in the chat log below just
tag them and thanks for watching. We’ll see you guys next week!

One thought on “What Millennials Want From Real Estate Agents featuring Kristin Messerli & Dave Savage

  1. Don't miss our next Masterclass Series Interview with real estate and mortgage industry leaders and experts: http://theresource.tv/masterclass-series-interviews/

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