The Mindset & Skills to Take More Listings & Crush the Shift with Aaron Novello (Part 1)

Welcome back to Real Estate Business Builders. This is Lars Hedinburg, the founder of Real Estate B School. This is going to be awesome. A two part series from our recent Business Growth Digital Summit. Aaron Novello kicked us off in style. Aaron has sold over 2,000 homes in his real estate career and he's a top agent and the skills that he brings to the game of working with sellers, he went through the Great Recession, many agents have never been through, you know, what we're going to go through in the next two or three years. So Aaron takes us through all of the mindset, all of the skills, all of the scripting, his exact listing presentation that he's using to list 10 to 15 plus homes per month even as the market is shifting. And he talks about price improvements and the psychology of all of it. So stay tuned. Again, it's two parts so make sure you consume both parts. And if you're looking to grow your business during the shift, my only sell here is to grab a copy of the Real Estate Business Growth Navigator. It's realestate Business growth dot com. That's realestatebusinessgrowth dot com and here we go, part one of Aaron Novello mindset and skills to crush the shift on the listing side.

Welcome everybody to another episode brought to your boy Lars. There's actually two people in this room named Lars which is kind of unbelievable. So what I find really wonderful about kind of jumping in and listening to your guys conversation is we're talking about, as Lars teaches us about, is attract, convert, deliver. And what was just focused on is an attraction mechanism on how to get people to raise their hand and eventually you're going to have to speak to somebody. Yep, you are. I know. Jessica, you're going to have to speak to somebody. Madeline, Spencer, Lori, eventually you're going to have to talk to somebody. Right. So how do we need to be speaking to them? Not just in an environment that's rapidly changing, which our environment is because here we are talking about Mr. Beast on a real estate platform, Right. Also market dynamics are shifting and changing. So there I was, I was kind of nine months into my real estate career having got my real estate license and I was trying to, trying to figure this thing out on my own and I made a whopping $13,000. Jeanine. Yes. That is not something people would put you on a panel on to talk about. It is not something people put you on a podcast, right, Anthony, to be like, hey, how did you do that? And it's definitely not something that people would coach you to train them on. Okay? And I was trying to figure this thing out on my own, and clearly I was not doing a good job. So what I did is I made a strategic decision. I decided to partner with one of the top agents in the geographic area where I started my real estate career, which was Gainesville, after graduating from the University of Florida. Go Gators. And that was very helpful for me for two reasons. The first one is it got me access to some instruction, which we're here to gather to get instruction. It also got me access to leads. And probably one of the most important things it did is it got me an up close, up front seat with the difference between working with buyers and working with sellers. Okay? Now, that was very helpful for me because here I was trying to figure out and schedule all these things and trying to schedule appointments and going. And the lockbox doesn't work right? And the keys don't work. And the agent's not returning my calls. Janine. And here, the listing agent was chilling at the office online, waiting for offers to come in. And I said, look, guys, I don't know what the way is, but I'm gonna either find a way or make the way. That's what I wanna be doing, okay? Cause that's where all the leverage is. That's where all the money's at. I'm hearing some heads, not seeing some heads, not. Yes, that's where all the money is. That's where all the leverage is. So what's also true is that our game has radically changed since I started selling real estate in 2006. And what's radically changed it is this thing called the Internet. Because again, going back to the conversation you guys were having before I hopped on, you're talking about these different highways. Because YouTube is a highway. Instagram is a highway. TikTok is a highway. And those highways need traffic, and they need to be pointed in a specific destination. But having roads with no traffic is stupid. And it's expensive. So I need traffic and I need a place to put it. Right. What's also true is that because of the Internet, all of these very sharp, elbowed, highly capitalized competitors have pushed into our space, and they're all taking money off the table, right? Zillow, Redfin, Home Light, Ideal Agent. Now, all of these platforms, they need one thing, like oxygen to breathe. Without it, they will literally die. Go ahead and drop in the chat what you think they actually need, like, oxygen to breathe. Agents, agents, data boots on the ground. Attention. Okay, interesting. Well, the person who said they need agents, but they need a specific type of agent. And they do need data. Replace the word data with listings. Because without listings, what happens, Marion? They all die instantaneously. They need it like oxygen to breathe. So if I can continue to be a prodigious provider of data, which is what I see myself as a top producing listing agent, listing 10, 12, 15 homes a month, then I will continue to be disproportionately rewarded for my efforts. Because I promise you, if they could get rid of you for providing data, would they? 100%. Now I'm curious, do they need buyer agents? We're already starting to see that what's happening on the buy side? They're getting, what, less and less and less money. That's because the system doesn't need them. They can pay somebody to do that, a salary or something of that nature. Or you could be on a team and get 20 splits with your team lead, right? So it needs data, it needs listings. Once I realized those things right, I spent the last 16 years obsessively and obnoxiously studying sales, persuasion, neuro, linguistic programming. I spent 10,000 hours in role playing practice, gone on thousands of listing appointments so I could perfect the conversations that are needed in order to sell property in high volume. Pre qualify, present, handle objections, right. Price reductions and presenting offers. Those are the conversations somebody needs to master if they want all this property in high volume. And what that's provided myself and my family with is a very good lifestyle. I've sold 2,000 homes in my career, 100 a year, for the last 12 years in a row. And I believe that everybody on this call, if you chose to, if you chose to really dive into that particular skill set, you could produce the same outcomes, if not better. Okay, so what I'd like to do over the next 30, 45 minutes of time that we have here is I want to talk to you about how technology has changed people's access to information. Would we all agree on that? For those I can see, shake your head, yes, if that's true, yes. It's changed people's access to information. And as such, the way we're presenting said information needs to change. If you're still presenting it in a way that is authoritative, as though I know and you don't, that is silly. And you're going to be met with lots of friction and you'll be met with combativeness. And then you'll walk away and be like, you know, I swear, Renee, I thought I had that listing. And they're going to list with somebody else. Okay, so we're going to talk about that, and then what I'm going to do is I'm going to run through an actual listing presentation, and I'm going to talk to you specifically about what I'm doing and why, as we're doing it. Because again, guys, over the last 18 to 20 months on calls like this, we've been able to spend a lot of time in the clouds. You know what I mean by clouds? Systems, processes, procedures, SOPs, technology. Right. And is all that stuff important? Yes. Now, as the marketplace is changing, do you know what we have to spend more time in? Dirt. You know what dirt is? When a seller says, hey, how come you didn't do an open house? How come it's not selling? Or they say, how, How. How come you're not. How come you didn't send flyers out, Diane, before the open house? I didn't. I didn't. Like you. You didn't put too many signs out, or is there anything else we could do to market the home? Dirt is handling objections. Dirt is overcoming pricing concerns. Dirt is presenting offers that are less than the asking price. Okay, drop in the chat if you had an offer that was less than the asking price over the last two months. Yes. All of them. Dirt is overcoming where they're like, madeline, this is way less than what you told us. I'm a little disappointed in your efforts. That's dirt. So now, like, yes, we can spend time in the clouds, but we have to spend time in the dirt because otherwise stuff's not going to move. Right. So that's what we're going to be doing today. Drop in the chat if you're ready for that. Say, let's go. Yeah. Lfg. Little Tom Brady in the house. Let's go. All right, so there was a time, guys, I don't know if you know this, 30 plus years ago, where consumers had absolutely zero access to any information regarding real estate. None. They didn't know what their neighbor's home was listed for unless they personally talked to them. They didn't know what's sold in the neighborhood. Nothing. Okay, Now I'm curious. Does that time still exist now? No. Are they looking at that information more than you look at it? Yes. Every day, Diane. Every day they're on Zillow or Redfin looking at the price of their home. Why? Because 90% of Americans have 90% of their net worth tied where to their house. So they're studying this stuff all the time. So if we're going in and saying, well, Anthony, you know, I study homes and prices every day. Therefore I assume you'll list with me at a price, it'll cause it to sell. That's dumb. Because they're looking at this information all the time. Okay, so because our technology has changed the way we think, it's changed our expectations. So if we separate it from real estate. Let's think for a moment. Let's say you're interested in a product or a Service. Paul, in 2022, is the first thing that you do do you pick up the phone, Zachary, and you call somebody. Is that what you do in 2022? Look, he's smiling. He's like, that's ridiculous. Who would do that? That's dumb. No, you don't do that. What do you do and where do you go? Google, typically. And then how do you make decisions about who gets your money? What are you looking for? Drop in the chat, what you're looking for. So you go to Google, the person I like the most. Okay, Reviews. Yes. So digital assets, reviews, website videos. Then you either put your credit card in and you buy it or you pick up the phone and you call somebody. Right? And Zach, if they don't say something stupid, then you pay them. That's how that works. So now put that into the context of presenting to homeowners about, you know, what's going to actually get their home sold. Because let's be honest, guys, if you took a property that was priced properly and you disappeared off planet earth, would it still sell? Oh, hey, do you notice the energy in the room? Everybody's like, well, I don't know, my marketing is special. And when, hey, just the secret, we all use the same photographers. Just telling you. Yep. Nothing special about that. Okay. We all do the same thing for the most part. So now that in the environment's changing, we got to get really skilled at presenting price. And if we're doing it in a manner that is authoritative, you're screwing it up because it's not in, in the environment that we live in anymore. Okay? So because technology has changed access to information, we need to be changing our approach with the way that we're presenting it. And if you're taking notes, there's three methods of presenting information, okay? And where I got this from is a book called On Being Mortal. And it actually has nothing to do with selling real estate. This is a guy who is a like super high level physician. And you know what's interesting about the medical world? They went through the same transition we did because I'm curious. 20 years ago, Renee, did WebMD exist? No. And when you went to the physician, they just told you what you needed to know, and that was it, Period. They'd be like, what's wrong, Galena? And you're like, my head hurts. They're like, okay, we'll take this. See you later. Have a nice day. Boop. Gone. Now you come in, you're like, well, I've done extensive research on WebMD, and I can tell you that I think it's this. Now, keep in mind, your homeowners are doing the exact same thing. Okay? So the first way of presenting is what's called paternalistic, authoritative. I know you don't. Right. Like, I'm the guy or gal, and I'm gonna tell you what you need to know. And are you prepared to list your home with me today at my price? Right. I believe. I think the market can deliver. Which, by the way, do you have any control over any of that? No. Were you posting? We sold it for $50,000 above the asking price over last year. How many people did that? Don't lie. Are you posting now, Renee? We had to reduce it three times to sell it. No, you take credit over here, Richard, but over here. No, no, no, that's not my fault. That's the market. But this one, that was me. Have nothing to bro. They're both the same thing. They didn't have anything to do with either one of you both times, okay? So paternalistic. I know you don't. Trying to lead with authority. Can you imagine if you went into the bakery and they were like, hey, Zachary, are you familiar with the techniques that I use to make bagels? I don't know if you know this. I'm kind of a big deal. You see that award over there? I'm the best bagel maker in this little town. If somebody actually said that to you out loud, Justin, what would you do? Would you, like, you look at your person? You're like, this guy, kid. Is this guy serious right now? Is this real? Like, I just want a bagel, bro. Like, what are you doing? And yet we do this as an industry. It's kind of ridiculous. Okay? So paternalistic. The second way is informative. An informative way of presenting is like, hey, here's all the information. You decide, okay? Now, what's interesting about that form of presenting is over the last 18 months, you've been able to get away with that because, Liam, you would go on an appointment, and they're studying their stuff all the time on Zillow. And Redfin. And they're like, well, you know, Aaron, I want to list it for 650. And you're like, okay, it seems a little high. And then they would get 700. And they thought they were a genius, Jessica, and they're not. Write this down. Most humans confuse luck with skill. Most humans confuse luck with skill. Okay? Now, as the marketplace shifted and changed since March of last year, we went from 3% interest rates to 7% in nine months. Somebody who was approved for a million bucks is now approved for like 750,000. Anybody besides me have listings that are sitting on the market, not selling? I remember in April, some of my coaching clients are, oh, my God, it's been on the market a week. It hasn't sold yet. Aaron, what's going on? I'm like, oh, you thought that was normal? That's not. No, that's not real estate. That's an auction. You thought you were so skilled in negotiating. Where is there any negotiating when it's at price or over, Removing all contingencies. There's no skill in that, guys. Okay? Informative. The third way, which is the sweet spot, is interpretive, because that's actually what we want. Think about it. When you're doing all of your research, let's say you're going to make a big purchase. Renee. Right? A big purchase. You're going to buy, spend five, ten thousand bucks on something. You are definitely going to do some research on that. Correct. But then you're going to speak to a professional and you want them to help you to interpret the information so you can make the decision that you feel is best. Correct. That is the exact same thing here for us, guys. So interpretive would sound something like, you know what, Rene, I'm aware that you've probably done a little bit of research and you went online and looked at some of these sites that give estimates of value. So I want you to be clear that my intention today is to help you to get as much as you possibly can. I'm also the mindset. I want to earn your business with integrity, being honest and straightforward about what's reasonable and realistic versus promising you something I know is not going to happen and not be able to deliver. So we're going to review this information together as a team, and what we're going to see come to the surface is not a pinpoint to the penny in terms of price. Instead, what was it's going to be is a tight, realistic range as to what's reasonable. And then from there, it'll Come down to strategy, and we'll go over the strategies that you have, because I want you to feel comfortable with the one we end up choosing. And whatever you decide, I'm going to support you 100%. Fair enough. Now, being on the receiving end of that drop in the chat, how would you feel? Do you feel like you're in control? Do you feel like you're part of the process? Do you feel like this is a collaborative conversation? Yeah. Versus, well, Rene, I'm the neighborhood specialist and I study homes and prices every day. Therefore, I assume you'll listen to me to prices, causes. So I believe it's this. Are you prepared to list your home with me today at my price? How would you feel if somebody approaches you that way? Drop in the chat. Yeah. By controlled, defensive. Yeah, yuck. Thank you. That's exactly what would happen, guys. So we have to be very, very clear that technology has changed people's access to information. And as such, the way we're presenting said information needs to change. And if you do not change this, I am telling you with 1000% certainty, you will be met with combativeness. You'll be met with kind of disagreement, you'll be met with argumentative. How many people besides me have ever gotten to a conversation with somebody and noticed like, hey, we're arguing with each other about this. This is silly. It's like, wait a minute, I'm trying to earn your business, Richard, And I'm arguing with you like, yeah, how's that going to go? Not well. So we have to be clear on this. And for those people who understand this, they understand people's access information and they change the way that they're presenting to a more interpretive approach versus an. A paternalistic approach and versus an informative approach. Because now can you get away with letting them decide where they want to list the property at? No. Janine's like, oh, I wish that was the case. But no, because if you do, you know what's going to happen? How many people have properties that they listed in April that aren't selling? That's what's going to happen. Because you're going to list it and then it's not going to move, and then you're going to have to go in back and get adjustments. Okay, good. So now what I'd like to do is I'd like to go over with you the actual framework of the listing presentation. Okay. And again, this is a presentation that I've used to list over 100 plus properties a year for the last 12 years in a row. It's very specific. It's very defined. It leads to a very clear, purposeful destination. What I'm also going to do is I'm going to stop while I'm doing this and tell you why I'm doing it, because I think that's more informative. And again, what I'm aware of is, guys, this is the dirt of our business. There's nothing wrong with clouds. It's all awesome. And. And. And we need clouds. But you also need dirt. Otherwise, stuff's not moving. Okay, I don't know if you know this. There was a statistic by the association of Realtors. It was the first six months of the year. It's like, out of 1.7 million agents, 1.3 million had sold less than four homes in the first six months. Ta da. Hey, write this down. When times get tough, only the skill get paid. Times get tough, only the skill get paid. Look, see my T shirt skills pay what the bills they do, okay? So what we're going to do is we're going to, you know, show up 15 minutes early, dress fresh, like a million bucks, ready to rock and roll. Showing up early is a demonstration that I value your time, okay? You don't want to run up all hurried and frantic and rushed, right? You want to be cool, calm, and collective. We knock on the door. We knock on the door. You know what we have to remember to do? Smile. I remember when I first started doing this. So serious, like, here to do business, right? Smile. And then when they walk me, when they offer me to come in, I'm like, great. Do you want me to take my shoes off? Just respectful. This is your space. If you want me to take my shoes off, I will. And then immediately, somebody needs to be in control, guys. And if you don't take control, you're going to end up on the couch all scrunched up with a little dog in your lap. Like, what the hell's going on? Anybody was. Renee's apparently been there, right? You're like, how the hell did this happen? What the hell's going on right now? Right? So you want to take control right out of the gate. And it's like, okay, so what I'd like to do is just take a quick look around the property. Would that be okay? And they're like, yeah, that's fine. Now we're going to say something like, hey, you know, I'm noticing that the home is really tastefully furnished. So when we have offers come in. Renee, are we going to Be including the contents or do you want to take that with you to your next destination? Now what am I doing there? That's an assumptive. What close? When who has offers? We have offers. I'm telling you, your boy's good at this. There's more to come. Okay, so when we have offers, right, they're going to be like, no, you know, we don't want to take it with us, or yes, we want to take it. Okay, cool, I'll make a note of that. And then as they continue to walk me through, it's like, okay, great. And if I remember correctly, Chris, in preparation for connecting, you shared with me that you're not interested in kind of putting any meaningful capital into the property prior to me starting to bring buyers to you just want me to help you to sell it as it is where it is. Is that right? Assumptive. Close number two. Hey, by the way, have we talked about anything yet? Price, commission, marketing? No. So then after we take a look around, it's like, okay, great, we can go ahead and take a seat here in the kitchen. And again, you need to be directing the where we're going, okay. Because somebody needs to be in control and if you leave it up to them, you're going to end up in some weird, you know, situation. I also want to position myself at the head of the table where I can speak to both people or I'm the focal point. If I'm speaking across from somebody, it creates an adversarial dynamic, like it's me versus them. Okay, then when we sit down, we're going to begin with, first and foremost, I just want to begin our time together just by saying thank you. Smile, mean it, because they're about to share a lot of their money with you. Thank you. And they're sharing some of their time on planet Earth that they're never going to get back. One hour, however long it is. And we only get about 75 years. In the industrialized world, women have a tendency a little bit more than men. That's what's average. So they're going to share some of that time with you and that's pretty remarkable. And they're going to share money with you. Pretty cool. So when you say thank you, mean it.

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