Do People Really Live On Boats In Seattle? – Lee Jennings
On this episode of The Closing Table, we sat down with Lee Jennings!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Lee Jennings…
The conversation began with a this or that icebreaker on solar panels, seller financing, and more. Lee then reveals more about himself beyond his involvement in real estate. As a dad, Lee’s primary focus lies on his family. However, he is also passionate about outdoor pursuits, constantly seeking new adventures in activities such as skiing, climbing, and pack rafting. It was partly this love for outdoor exploration that led him to enter the real estate industry, as it provided the flexibility to pursue his passions.
Lee operates as an agent in the Metro Seattle market, situated in a tech-rich city. Geographically, Seattle is limited due to its location on two peninsulas that converge in the middle, with water surrounding the city from various directions. This geographical constraint makes the real estate market in Seattle comparable to that of the San Francisco Bay Area, where available land for development is scarce, resulting in highly expensive properties. In terms of average pricing, Lee highlights that single-family homes in the Seattle market typically have a mid $800k price range. Housing costs are notably high in this area, despite its natural beauty with mountains and water in close proximity. The limited availability of buildable land poses a challenge for those interested in constructing homes, particularly due to the hilly terrain and associated excavation costs.
Kevin then directed his questions towards houseboats, and Lee expressed his knowledge of exceptional agents who specialize in this unique market. Although he occasionally receives inquiries from curious individuals about houseboats, Lee’s personal encounters with them primarily occur during his runs around Lake Union. He describes the houseboat community as homeowners associations with gated and private properties, where the houseboats themselves are essentially giant floating houses. When discussing the cost of houseboats, Lee paints a vivid picture for people, explaining that they should imagine the price of a single-family home and then double it. Additionally, he emphasizes the significant maintenance expenses associated with this niche lifestyle, emphasizing that it operates on a completely different level compared to traditional housing options.
Transitioning to a different topic, the conversation shifted to eXp Realty’s growth in volume and sales during 2022, a year marked by declining existing home sales. Kevin inquired about the strategies or factors that enabled eXp Realty to achieve increased closed transactions and sales volume. In response, Lee shares his personal experience with eXp and highlights the culture of collaboration within the company. He mentions that 38 out of 50 states now have the top individual agents in those states affiliated with eXp Realty. These agents, as servant leaders, willingly share their knowledge and expertise with others in the brokerage, contributing to increased sales volume nationwide. Lee emphasizes that one must be a part of the eXp Realty brokerage to truly understand and appreciate the level of collaboration and support that exists among its agents. Comparing it to his past experiences with other brokerages, which he considers outstanding, Lee emphasizes that the level of collaboration and willingness to help others at eXp Realty is unparalleled.
Considering eXp Realty’s recognition as a “big winner” among relatively newer brokerage models, the question arises as to why agents and their transactions are gravitating towards these models that allow them to retain a higher portion of their commission. In response, Lee highlights the unique structure of eXp Realty as a cloud-based brokerage, eliminating the need for physical offices and reallocating the funds saved towards agent education and collaboration. He emphasizes that eXp Realty strives to be the most agent-focused brokerage in the industry.
To illustrate a comparison, Lee mentions a prominent brokerage brand in Seattle with numerous offices throughout the city. He explains that when starting with this brand, agents face a compensation plan that begins with a 50-50 commission split and a $33,000 cap. Agents only reach a 100% commission after paying the company $33,000. This can be a daunting hurdle, particularly for new agents who have yet to complete a transaction. While such a brand may provide the advantage of having their name associated with one’s business, it also means that half of the agent’s earnings go to the brokerage until the substantial fee is met. In contrast, eXp Realty’s compensation plan is far more agent-focused, providing better benefits and incentives. Lee believes that this agent-centric approach was at the forefront of the company’s vision when it was established.
Next, the two talked about the specialization in investment properties and actively seeking partnerships with real estate wholesalers, the question arises regarding the benefits of real estate agents collaborating with wholesalers. Lee admits that, throughout his 18 years in the business, he initially failed to comprehend the dynamics between the retail and wholesale aspects of real estate. He had previously witnessed a prevailing belief that these two worlds should be kept separate without much collaboration. However, through his experience in property management, working as a loan officer and mortgage broker, and his tenure at a title company, Lee gained a comprehensive perspective of the industry from multiple angles. This broader view led him to recognize the significant role played by the wholesale segment, which he believes will remain a vital part of the industry.
Thus, he decided to embrace this aspect and collaborate with wholesalers. Lee believes that it’s beneficial for real estate agents to have a tool like wholesaling in their skill set and engage in their own deals within that realm. While acknowledging that some agents may harbor fear or reservations about this side of the business, Lee asserts that it will continue to exist and it’s better to learn and collaborate with wholesalers rather than shy away from it. Through this collaboration, Lee has expanded his knowledge of creative financing, wholesaling, and other related areas. It’s important to note that not every deal he is involved in revolves around wholesaling, but he is open to and actively engaged in this aspect of the business.
Washington Governor’s recent signing of a new law to legalize duplexes and fourplexes in most neighborhoods sparks discussions on how this change will impact housing supply and affordability in the state. Regarding this matter, Lee expresses optimism about the development, albeit acknowledging that it may be overdue by a decade or even two. He believes that this step forward will help increase the housing supply, a crucial need given the shortage of inventory not only in Washington but also across the country. Seattle, in particular, faces severe inventory shortages, with certain areas experiencing less than one month’s worth of inventory—a situation that keeps prices high and exacerbates the overall issue of housing affordability.
However, Lee emphasizes that to truly address the problem, more red tape must be eliminated, as the current permit process in King County remains overly difficult for builders. As a first-time homebuyer, Lee understands the daunting nature of the Seattle housing market, with limited options for those with limited financial resources. Additionally, he notes that even as a renter in Seattle, the high cost of rent poses challenges for young families. While the legalization of duplexes and fourplexes will help alleviate the situation, it is not a complete solution due to the significant underbuilding that has taken place.
The conversation wraps up with Reflecting on his personal journey, Lee shares key lessons he has learned about himself, the real estate industry, and the importance of serving others. He often emphasizes that knowledge is not the primary factor lacking in the industry but rather motivation. This realization contributes to the high failure rate among agents. Lee has personally sought help from and offered assistance to other agents, recognizing the value of mentorship and guidance. In a competitive industry focused on achieving high volumes and goals, Lee stresses the significance of giving more and serving others.
These lessons significantly shape Lee’s future goals and aspirations as a real estate entrepreneur. Initially, he did not want to have a team, as he had previous experiences managing people in other businesses. However, his enjoyment in helping others within the industry has led him to question that decision. Lee appreciates the opportunity eXp Realty provides, where he can recruit agents to his group and support their growth without the day-to-day management responsibilities. He acknowledges the gratitude he feels towards those who have helped him grow and is committed to paying it forward to others in the industry.
Check out Lee Jennings:
Facebook: https://www.facebook.com/lee.jennings.3152
Facebook Business Page: https://www.facebook.com/8000mrealtor
Instagram: https://www.instagram.com/leejenningsrealtor/
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