Salt Lake Realtor – April 2019 by Mills Publishing Inc.

REALTOR Salt Lake

Preventing Wire Fraud p. 14

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New Marketing Campaign p. 7

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Table of Contents Are we building the right kind of housing for the population we have right now? p. 22

Features 10

Email Subject Lines Your Clients Will Click On Adrian Fisher

Reducing the Risk of Wire Fraud Kurt Andrewsen

Lawsuit is a Misguided Effort to Undermine the MLS System Graham Wood

The Rise of the Accessory Dwelling Unit Karen Springen

Serving and Sightseeing in Nepal

Professionalism Matters: Disclose Matters Readily Apparent Holly Rawson

Columns 7

Marketing Campaign Focuses on Value of Realtors® Scott Robbins – President’s Message

Departments 8

Happenings

In the News

Housing Watch

Realtor® Connections

On the Move

On the Cover:

2019 Board of Directors Photo: Dave Anderton

Photo left: ©AleksandarNakic/iStock

This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

Salt Lake

REALTOR slrealtors.com

Maga zine

April 2019 volume 79 number 4

slrealtors.com

The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

Q: That Moment When...

A) You realize how much you paid your brokerage last year. B) Your friend from RealtyONEGroup telling you what they paid their brokerage last year. C) Your family realizes what you paid your broker last year instead of bringing it home. D) All of the above

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Guaranteed Rate is an Equal Opportunity Employer that welcomes and encourages all applicants to apply regardless of age, race, sex, religion, color, national origin, disability, veteran status, sexual orientation, gender identity and/or expression, marital or parental status, ancestry, citizenship status, pregnancy or other reason prohibited by law. Julia G. Borst NMLS ID: 275440; CA - CA-DBO275440, IL - 031.0038963, TX - 275440, UT - 5495305 | Danielle Young NMLS ID: 265241; UT - 5487909 - 7495184 | Cindee Stone NMLS ID: 273280; UT - 5490273 - 7495184 • NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) • CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residential Mortgage Lending Act Lic #4130699 • IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, 312-793-3000, 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 • TX - Licensed in TX: Licensed Mortgage Banker & Licensed Residential Mortgage Loan Servicer- TX Department of Savings & Mortgage Lending • UT - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions

Salt Lake

REALTOR

® ®

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President Scott Robbins Summit Sotheby’s

Michael Morgan Realtypath LLC Scott Colemere Colemere Realty Associates

First Vice President Alicia Holdaway Summit Sotheby’s

Jodie Osofsky Signature Real Estate Utah Mary Olsen Utah Key Real Estate

Second Vice President Matt Ulrich Ulrich Realtors®, Inc.

Sophie Reece Berkshire Hathaway

Treasurer Steve Perry Wise Choice Real Estate

Rob Ockey Century 21 Everest Dawn Stevens RealtyOne Group Signature

Past President Adam Kirkham Summit Sotheby’s

Brian Gottfredson Coldwell Banker

CEO Curtis Bullock

Tony Ketterling Equity Real Estate

Directors

Ryan Henderson Realtypath LLC

Michael Rowe Berkshire Hathaway Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Katie Steckler Patrick Witmer Office Administrator Cynthia Bell Snow

Sales Staff Paula Bell Karen Malan Paul Nicholas Chad Saunders Administrative Assistant Caleb Deane

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

Marketing Campaign Focuses on Value of Realtors®

e ready for spring! Typically the next three months are the busiest months in our market. During this time be ready for everything. Be aware of new listings. Be ready to show property at a moment’s notice. Be ready to negotiate with multiple offers, and be ready to show your value to your clients. Now more than ever, our clients need us. Be prepared this spring and I guarantee you will have tremendous success.

To further our spring efforts, the Salt Lake Board of Realtors® has launched an extensive marketing campaign promoting the value of Realtors®. The campaign includes billboards, bus wraps, podcasts, social media videos, sponsorships and media relations. Perhaps you have already spotted one of UTA’s Realtor® buses in the Salt Lake area. The UTA campaign includes several buses with full-sided messages that ask, “Why risk the biggest purchase of your life without help? Hire a Realtor®.” The ads receive 989,100 impressions per month, reaching about 75 percent of the Salt Lake County population. We continue to produce social media videos that promote hiring a Realtor®. Our latest video, “Realtors® don’t just let you into a house,” centers on how Realtors® are there for their clients through every step of the home buying process, from help with inspections, to negotiating a contract, to avoiding legal landmines, and pricing a home accurately based on current market data. In the coming weeks, the Board will begin a podcast series on current real estate trends and topics. The 20-to-30 minute segments will address themes on personal taxes, running a business, legal tips, market trends, and safety issues. This summer, the Salt Lake Board again will be a major sponsor of the Salt Lake Parade of Homes. The annual home show draws tens of thousands of people and brings together builders and Realtors®. In addition to our advertising and marketing efforts, the Board continues to reach out to the media with market data and the latest real estate trends. This spring, the Associated Press will run a national story centered on Salt Lake’s housing market that features comments from Salt Lake Realtors® and millennial home buyers. As the real estate transaction becomes more complex, home buyers and sellers rely more than ever before on the experience and market knowledge Realtors® bring to the table. This campaign tells that story. Work with a real professional. Have a real experience. Hire a Realtor®!

Scott Robbins President

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

April 2019 | Salt Lake Realtor ® | 7

Happenings

In the News Multi-Generational Homes Gain in Popularity One in six Gen Xers purchased a multigenerational home, overtaking younger boomers as the generation most likely to do so; with 52 percent of those Gen X buyers indicating that they did so because their adult children have either moved back or never left home.

Utah No. 3 in House Price Appreciation Utah home prices increased 9.80 percent in the fourth quarter of 2018 yearover-year, placing the state No. 3 in fastest growing home prices in the country, according to the Federal Housing Finance Agency. Idaho was No. 1, with prices there rising 11.93 percent. Nevada took the second spot with prices rising 11.20 percent. North Dakota was in last place with a 0.02 percent increase. Nationally, home prices increased 5.73 percent in the fourth quarter compared to the fourth quarter of 2017.

New Home Construction on the Rise Eric Allen, regional director for real estate research firm Metrostudy, addressed members of the Women’s Council of Realtors® in April on new home construction in the Salt Lake area. Allen said that Utah has been creating roughly 30,000 new jobs each year since 2012. To keep up with that growth, Utah should be building approximately 14,000 new homes a year, Allen said. Yet, new home construction has lagged. Last year 13,300 new homes were built, the first time in recent years that Utah’s new home starts approached equilibrium with job growth. In 2017, only 12,200 homes were built. In 2016, there were only 10,600 homes constructed. Image licensed by Ingram Image

8 | Salt Lake Realtor ® | April 2019

This is according to the National Association of Realtors®’ 2019 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers. The report also found that older millennials who bought a multi-generational home, at 9 percent, were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent). “The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents’ homes either out of necessity or an attempt to save money,” said Lawrence Yun, NAR chief economist. “While these multi-generational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents’ homes into homeownership, circumventing renting altogether.”

Collaboration is not an option. It’s a promise.

When we work with Homebuyers, we build homes around their lives – not the other way around. The same is true when we work with you. At David Weekley Homes, we work hand-in-hand with you and your Team to ensure that your Clients’ path to homeownership is as seamless and fulfilling as possible – and so is your experience in helping them get there. That’s The Weekley Way.

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Learn more about our Quick Move-in Homes by contacting 385-232-2999 See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements. Copyright © 2019 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLCA99514)

©Monster Ztudio/ Adobe Stock

Email Subject Lines Your Clients Will Click On If you want to improve open rates for your newsletters or promotional emails, use these tips for creating impactful messaging. By Adrian Fisher

he last thing clients want is another promotional email—unless the subject line is tantalizing enough to get them to open it. Since email marketing is one of the top technology tools that provide the highest quality leads, according to the National Association of Realtors®’ Real Estate in a Digital Age 2018 Report, you want to use subject lines that capture prospective clients’ attention. An unopened email can lead to a missed opportunity.

email marketing firm Litmus. That could be problematic because only the first six to eight words of the subject line show up on mobile devices. If the email subject line is too long, there is a good chance it will get cut off, and clients will never see it in its entirety. You should write clear and concise email subject lines to help get your message across. A short, impactful email subject line is likely to catch clients’ eyes as they scan their inbox.

It’s important to create engaging email subject lines to help them cut through the clutter and stand out in clients’ inboxes. Here are six tips agents can use to craft better email subject lines.

2. Evoke a sense of urgency. Whether it’s an email sharing a local event, a checklist, or market trends, an urgent subject line can make clients feel like they’ll miss out on something important if they don’t open the email. You can create a sense of urgency by using words like “hurry,” “won’t last long,” “fast,” and “don’t miss” to motivate clients to open their email. An email

1. Keep it short and sweet. Fifty-five percent of emails are read on mobile devices, according to the 2016 State of Email Report by

10 | Salt Lake Realtor ® | April 2019

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with the subject line, “new property – won’t last long” will likely get high open rates. 3. Ask intriguing questions. You can create instant dialogue with clients by asking them a question that resonates and piques their curiosity. Place the question in the email subject line. For example, you could ask, “Are you still looking in X neighborhood?” Even if your clients didn’t have this question in mind, you could get them thinking about it if the subject line is intriguing enough. Likewise, sending an email with the subject line, “How much are homes selling for in your neighborhood?” will likely get high open rates and plant a seed in clients’ minds who are interested in putting their home on the market. 4. Use emoji. Compared to text-only email subject lines, emoji appear friendlier and result in higher open rates, according to research from email marketing firm Return Path. Emoji are a creative, expressive way to create a more appealing email subject line, regardless of the target age range of clientele. You should select emoji relevant to the subject line and use them to convey emotion or emphasize an idea. Plus, there are plenty of property-related emoji to choose from, so you won’t have a hard time finding one that fits. 5. Take a personalized approach. When it comes to email marketing, emails with personalized subject lines have 26 percent higher unique open rates than non-personalized emails,

12 | Salt Lake Realtor ® | April 2019

according to Experian’s 2013 Email Market Study. Placing the recipient’s name in the email subject line has been a popular trend over the years, but there are other ways to show personalization. You can increase the level of personalization by segmenting email lists and taking the time to create different email subject lines based on where clients are in the buying process. No two clients are the same, so you should cater to individual clients’ needs and preferences when writing email subject lines. 6. Apply artificial intelligence. With today’s technology, you don’t even have to write your own email subject lines. You can rely on artificial intelligence tools designed to generate better email subject lines than humans. Persado and Phrasee are two options that help create engaging email subject lines based on data-driven insights. Remember to carefully consider the email subject line before clicking the send button. Is it engaging? Does it urge the client to open the email to find out more? Being able to write an engaging email subject line that motivates clients to open the email is critical for a successful email marketing strategy. Adrian Fisher is the founder and CEO of PropertySimple, a real estate technology software that allows agents to build their personal brand online. Follow him @adrian_fisher. Reprinted from Realtor® Magazine Online, March 2019, with permission of the National Association of Realtors®. Copyright 2019.

2019 OakwoodLife

©alexskopje/ Adobe Stock

Reducing the Risk of Wire Fraud Many real estate professionals rely on web-based email accounts such as Gmail, Yahoo! Mail, Outlook and AOL, but these unsecure accounts can be vulnerable to hacking. By Kurt Andrewsen Affiliate Advisory Board Member

cam. Swindle. Hustle. Racket. Whatever you choose to call it, wire fraud related to real estate transactions is on the rise. According to the American Land Title Association (ALTA), wire fraud scams were up 480 percent nationwide in 2016. And, this year in Utah alone, consumers have already lost more than $20 million to wire fraud. Unfortunately, anyone can fall victim to these sophisticated scams as a recent story on KSL. com highlighted. The scam typically begins with fraudsters hacking into an email account to watch for details related to a real estate transaction. They then use this information to send new wire instructions that appear to be from someone involved in the transaction, such as the real estate agent or title company. In some cases, they may even spoof an escrow officer’s phone number to

14 | Salt Lake Realtor ® | April 2019

text the new wire instructions to the buyer. Several organizations, including the FBI, Consumer Financial Protection Bureau and ALTA have launched campaigns to educate consumers about the risks, but real estate professionals can also play an important role. Talk about wire fraud risk. Make sure your clients are aware that wire instructions generally will not change and that new instructions sent via email or text should always be viewed with suspicion. If something seems strange, instruct them to call a verified phone number to confirm wire instructions before sending any funds. Avoid using web-based email accounts. Many real estate professionals rely on web-based email accounts such as Gmail, Yahoo! Mail,

Outlook and AOL, but these unsecure accounts can be vulnerable to hacking. To better protect yourself and your clients from hackers, consider establishing email accounts under your company domain name. What Else Can Be Done? This growing problem recently gained the attention of Congress after a member of the U.S. House Financial Services Committee discovered that banks and other financial institutions are not required to match the payee’s name and the name on the account before completing wire transfers. It remains to be seen how legislators will respond. In the meantime, the title industry has been actively working to help combat these scams. Just one example is First American Title’s Secure Portal that allows buyers and sellers to complete and e-sign opening paperwork, and send and receive secure messages, which lowers the risk of wire fraud attempts by reducing risky email communications.

Image licensed by Ingram Image

company. Accordingly, it’s more important than ever to educate consumers on how to protect themselves. But, with a little bit of vigilance and education, we can all work together to ensure our clients and their funds don’t become unwitting victims.

Because Utah’s Good Funds Law requires that funds be collected and cleared for cashier’s checks that are individually, or in the aggregate, over $10,000 before closing can take place (which can take several days), most parties in a real estate transaction wire their funds to the title NoDownPayment-realtormag.pdf

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Kurt Andrewsen is Salt Lake County Sales Manager for First American Title.

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KK & LEE CHAPLIN South Valley

EDWARD FEDOROV Salt Lake

LYNDA COLEMAN Sugar House

JILL ECKSTEIN Union Heights

CHUCK NEVE Sugar House

KYLE CHRISTENSEN Union Heights

MATT HAWKES Station Park

MAREN VAN VRANKEN Salt Lake

TONI CARTER Sugar House

ColdwellBankerHomes.com

©2019 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.

Lawsuit is a Misguided Effort to Undermine the MLS System By The Salt Lake Board of Realtors®

here has been considerable interest in the litigation (Moehrl vs. NAR) filed on March 6 challenging the Multiple Listing Service (MLS) system and the way that broker commissions are paid. The primary allegation is that home sellers are unfairly being required to pay the commissions of buyers’ brokers. The complaint alleges that these commissions are not subject to negotiations and they question the value that buyer brokers deliver in the home buying and selling process. It argues that the defendant brokerages are co-conspirators through their membership in the National Association of Realtors®.

The National Association of Realtors® and Salt Lake Board of Realtors® believe that the lawsuit is a misguided effort to undermine the MLS system, which has long served both home sellers and

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home buyers very well. In short, the MLS system is designed first and foremost with the buyer and seller in mind. In the best interests of consumers, NAR will aggressively and persuasively point out the merits of the overall system. Consider these 10 points. 1. The commission offered to the buyer’s broker is determined by the seller, not by NAR or the MLS. The commission can be a percentage of the purchase price or a fixed amount, as little as one dollar. And, contrary to what the class action law firms allege, the commission is subject to negotiation. The MLS system increases the efficiency of the market and thus serves the best interests of sellers and buyers alike. 2. Do listing brokers and buyer brokers conspire to keep commissions high?

The claim is patently false. Commissions established in a listing agreement are the result of negotiations between the seller and the listing broker. Because consumers have a multitude of choices in service and fee models, they also have great choice regarding payment for real estate services. Importantly, sellers have the ability to discuss and negotiate with their broker what fee they are willing to pay for their broker’s services and what fee they are willing to pay a cooperating broker for bringing a willing and able buyer to close the transaction. The plaintiffs cannot have data supporting their commission claim because, while the MLS displays a listing broker’s offer of compensation to a buyer’s broker, it does not track or record the listing broker’s commission nor the final amount paid to a buyer’s broker. Such information is required by law to be set forth in the final closing documents, which are not publicly available. 3. The lawsuit claims that the role of the buyer broker has been reduced over time, and therefore this broker does not deserve the same level of fees as enjoyed in the past. What’s NAR’s position on this? Again, this is absolutely false. Research

has shown that while the vast majority of buyers begin their home search online, they soon turn to the assistance of a broker to guide them through this infrequent, complex transaction. In fact, given the voluminous amount of information that buyers have available, the need to have a qualified, local professional help sift through this information and advise the client is crucial. Buyer brokers do that, as well as many other functions that are essential to the buying process. 4. The allegations by the plaintiffs are false. The fact is, when sellers have asked brokers to negotiate, brokers have reduced their fees more than 20 percent of the time. 5. Years of judicial precedents have upheld the benefits of the MLS system. Legal precedents have upheld the central tenets of the MLS system, and NAR is confident that the courts will once again affirm the pro-consumer, pro-competitive aspects of this system. 6. The MLS system works in the best interests of both buyers and sellers, and the way commissions are paid plays a key role in maximizing this benefit. The MLS system is pro-consumer and competitive.

PROTECTING YOUR PROFESSIONALISM As a real estate professional your reputation is everything. We are proud to be advocates for real estate practitioners including realtors, appraisers and mortgage licensees who are faced with industry licensing actions or criminal prosecution. Counseling includes, but is not limited to:

Left to Right: Matthew Cox, Amanda Mendenhall, and Richard Van Wagoner

Compliance with the law, rules, and ethical obligations Subpoenas and document requests from government agencies License and criminal investigations Notices of Agency Action (e.g. Division of Real Estate) Professional Standards Hearings at the UAR or local board Lawsuits arising out of alleged unprofessional conduct Criminal charges stemming from your role as a real estate professional

Contact Amanda Mendenhall 801.322.9258, Richard Van Wagoner 801.322.9168, or Matthew Cox 801.322.9182 | www.scmlaw.com

April 2019 | Salt Lake Realtor ® | 19

Image licensed by Ingram Image

It works in the best interest of buyers and sellers alike, as it results in a highly efficient residential real estate market. The system yields the maximum number of qualified buyers who may be interested in the seller’s property. 7. Brokers play a crucial role in helping buyers and sellers achieve their goals. As more information has become available through MLS and interactive real estate websites, it is more crucial than ever before to have trained, local brokers available to help consumers sort through information to arrive at the best possible decisions. In fact, 78 percent of homebuyers agree that their broker was an important source of information for buying a new home. 8. Home buyers are very satisfied with their home buying experience and home buyers are brokers’ best referral source. According to NAR’s most recent Homebuying Survey, 62 percent of home buyers were very positive about the home buying process, and almost 90 percent would recommend their broker to a family member or friend. 9. Do brokers try to keep their commission arrangements a secret from the home seller and home buyer? Absolutely not. Commissions are initially set by the seller with the advice of the listing broker on how much to offer as compensation to the

20 | Salt Lake Realtor ® | April 2019

buyer’s broker who successfully closes the transaction with a ready, willing, and able buyer. NAR believes that the most important part of an ethical negotiation with a prospective seller or buyer is transparency, which includes how commissions are calculated. NAR encourages brokers to have a conversation with their prospective clients about commissions at the very beginning of the relationship. Furthermore, many listing contracts explicitly state exact commission arrangements, which are then known by the seller before he or she signs the contract in the first place. 10. The MLS system was developed by local Realtor® associations. Realtors® have spent millions of dollars to develop Multiple Listing Services and other real estate technologies that make the transaction more efficient. In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first MLS was born, based on a fundamental principal that’s unique to organized real estate: Help me sell my inventory and I’ll help you sell yours. MLSs are a powerful force for competition. They level the playing field so that the smallest brokerage in town can compete with the biggest multi-state firm.

The Rise of the Accessory Dwelling Unit A third of the population is in one- or two-person households. We’re not building the right kind of housing for the population we have right now. By Karen Springen

hen Jeni Nunn, an agent with Intero Real Estate in Santa Clara, Calif., and her husband bought their 1,270-square-foot house, they planned to use its deep backyard to build a pool or playground. But they switched course when Nunn’s dad and mom (diagnosed with Parkinson’s) couldn’t find an affordable condo nearby. Instead, four years ago, they built a 640-square-foot, wheelchair-accessible, one—bedroom house, with room for their baby grand piano, for $160,000—a bargain in the Bay Area. “For us, it’s the perfect scenario,” said Nunn, who is also a mother of four. “I can send my three-year-old into the backyard. ‘Go to grandma’s house!’ ” Nunn’s own build-out put her at the leading edge of the movement to address one of today’s

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most vexing real estate problems: the need for affordable housing in areas with tight inventory. These secondary residences, known formally as “accessory dwelling units,” have become a popular alternative in high-demand areas of the U.S., from Washington, D.C., to Seattle. And local governments are increasingly passing measures that makes it easier for homeowners to build and rent out ADUs. The homes are permanent, with their own entrance, kitchen, and full bath. “It’s a self-contained dwelling on the same property as a standard single-family home,” explains Martin Brown, a researcher who co-edits AccessoryDwellings.org and rents out an ADU on his Portland, Ore., property. While much attention has been paid to the rise of tiny homes under 400 square feet, the emergence of compact ADUs has been similarly swift, if with less hype.

No one tracks the total number of ADUs, but Kol Peterson, author of Backdoor Revolution, creator of the “Building an ADU” online guide, and co-founder of AccessoryDwellings.org, estimates that the country is home to 25,000 to 100,000 permitted units and several million unpermitted ones. Since California loosened its restrictions in 2016, the number of applications in Los Angeles alone increased from 90 in 2015 to nearly 2,000 in 2017. With permits, cities make sure the units are safe and also capture property tax revenue. The idea behind accessory dwelling units is hardly new. “It used to be the case that it was quite normal to have someone living above the garage or in the basement,” said Patrick Quinton, CEO of Portland, Ore.–based Dweller, which builds ADUs in a factory so that on-site construction takes only 30 days. In fact, Thomas Jefferson lived in basically an ADU while Monticello was being built, said Eli Spevak, co-founder of AccessoryDwellings.org and an affordable housing developer in Portland, Ore. So-called mother-in-law units grew at a time when multigenerational living was more common, but in cities like Washington and Philadelphia, people replaced the little home in the back with garages. Interest in ADUs is rising at a time when the average family size has fallen to an all-time low of 2.6 individuals and people have become “overhoused,” said Rachel Ginis, executive director of Lilypad Homes, an education and advocacy group for ADUs in California’s Bay Area. ADUs fall under “in-fill housing”—ways to squeeze more homes into walkable, bikeable high—demand areas. “A third of the population is in one- or two-person households,” said Peterson. “We’re not building the right kind of housing for the population we have right now.” As ADUs become more prevalent, it’s important to consider how they may affect a transaction. “It’s like looking at a pool,” said Nunn. “There are people who love a pool and will give more money. There are people who [say], ‘I’ll never have a pool’ and see them as an invasion of privacy.” Nunn urges buyers to think about a property’s ADU potential even if it’s not a priority feature. “I encourage my clients to pay attention to the lot size of homes, especially if they have aging parents in the area. Even if they can’t afford to do an ADU immediately, I try to show them the value of having the option to do it in the future.”

for Housing Innovation at the University of California, Berkeley. “Sometimes they even look nicer than the primary residence.” For example, Kol Peterson and his wife live in an 800-squarefoot “dream house” ADU with a king bed, radiant in-floor heating, and a 10-foot movie screen. (They rent out their main house for $3,000 a month, which more than covers the $1,700 mortgage.) Some tips: Match the main home’s exterior. Cities typically require it, though places like Portland, Ore., and Seattle are relaxing those regulations. “Modern is in right now,” said Valley Home Development’s Steve Vallejos. But it tends to be more expensive and may not fit in as well in some neighborhoods. Many opt for a match to the main house. “Most clients are coming to us with the assumption that the ADU is going to be a miniature version of their existing house.” said Vallejos. Homeowner Lisa Fontes, whose primary house, a colonial, is dark brown with maroon trim, is building the ADU on her Massachusetts property to be lighter brown with maroon trim. Place windows as high as possible. They let in more light. “Use higher, not just bigger, windows and doors,” said ADU architect Ileana Schinder. “That brings light deeper into the apartment.” Consider vaulted ceilings. They create a spacious feeling. “The key is natural light,” said Schinder. Create open spaces. Avoid hallways. “Why waste square footage?” said Schinder. Put the laundry in the kitchen, and make closets for reaching into rather than walking into. Recess fixtures like medicine cabinets. Karen Springen is a Chicago-area freelance writer and faculty member at Northwestern University’s Medill School of Journalism. Reprinted from Realtor® Magazine Online, July 2018, with permission of the National Association of Realtors®. Copyright 2018.

What are the secrets to ensuring an accessory dwelling unit is not an eyesore? “A lot of people really take pride in their units,” said David Garcia, policy director of the Terner Center Image licensed by Ingram Image

April 2019 | Salt Lake Realtor ® | 23

Serving and Sightseeing in Nepal

licia Holdaway, first vice president of the Salt Lake Board of Realtors® and a Realtor® with Summit Sotheby’s International Realty, spent two weeks in Nepal serving the village of Guanshahar with CHOICE Humanitarian, an organization that helps rural communities where villagers live on less than $1.90 a day. Alicia spent half her time as a volunteer, serving the impoverished people of the village, and the other half as a tourist, exploring the incredible landscape of the Himalayas. “Seeing how the Nepali people live, work, worship and play was eye opening and inspiring,” Alicia said. “They do back breaking work every day just to survive and yet I have literally never met a group of people who smiled more frequently and genuinely.”

24 | Salt Lake Realtor ® | April 2019

26 | Salt Lake Realtor Â® | April 2019

REALTOR® Connections Advice from a Past President Debra Sjoblom 2005 President of the Salt Lake Board of Realtors® Realtor® Chapman Richards & Associates Q: Safety is a big concern for Realtors® as more practitioners come under attack. What safety advice do you have for agents? A: I think that we must be aware of our surroundings regardless of being “on the clock” or not. Whether walking down the street, in a parking lot or walking toward a home be cognizant of what’s going on around you and who is around you. Walk behind the client, not in front of the client. Q: Should Realtors® show listings at night? If so, what precautions should they take? A: I quite frankly think there is no reason not to show houses at night. Day or night we could face danger. I believe that you should never jump to show a house the minute someone asks. Always interview the potential client before meeting. If the potential buyer gets aggravated with your questions, then let it go. Again, the “can we see it right now” should almost always be “no.” In 42 years, I have felt leery two times. One time I took my broker with me, and he sat in the car. I received a call from the FBI the next day. Evidently the “buyer” unlatched a window and went back in and that was all the FBI would tell me! Another time, I showed a man two houses and stayed outside. We wrote an offer, he signed it and when I went to pick up earnest money the next day, his business address did not exist. Trust your instincts. Q: What about open houses? Should there be more than one agent at an open house event? A: I really do not feel an open house poses any more danger than any other showings. Leave the door open, open back doors, don’t follow people into the basement. Use common sense in all your business dealings, let someone know where you should be and when you are returning. My bottom line in all of this is trust your gut and if someone is a bit put off, then as my mother would have said, “So be it.” There is always another deal, but you only have one life.

Windermere Acquires Jess Reid Real Estate Windermere Real Estate Utah announced the acquisition of Jess Reid Real Estate in Park City. The acquisition includes three Jess Reid offices that will be rebranded with the Windermere name. Jess Reid will continue working in Park City as a Windermere branch manager. “Jess Reid Real Estate was founded in the early 1980s and has been serving Park City longer than any other brokerage,” said Grady Kohler, principal broker and owner of Windermere Real Estate Utah. “In looking to expand, the Jess Reid name offered us a tremendous opportunity to greater meet the real estate needs of Park City locals and international clients. With this acquisition, we now have five Windermere offices in Park City.” 28 | Salt Lake Realtor ® | April 2019

On the Move Greg Call, a Realtor® with Berkshire Hathaway Home Services, recently reached Hall of Fame status by investing a lifetime amount of $25,000 or more to the Realtors® Political Action Committee (RPAC). Greg has been in real estate since 1977. Hall of Fame members are installed at the May Realtors® Legislative Meetings & Trade Expo the following year. Among Hall of Fame benefits are name plaques on the RPAC Hall of Fame wall located on the National Association of Realtors’® Washington, D.C., building rooftop, personal plaque commemorating the installation and recognition pins with the Hall of Fame designation. ATTOM Data Solutions released its Q1 2019 U.S. Home Affordability Report, which shows that median home prices in the first quarter of 2019 were not affordable for average wage earners in 335 of 473 U.S. counties analyzed in the report (71 percent). “We are seeing a housing market in flux across the United States, with a mix of tailwinds and headwinds that are pricing many people out of the housing market, but also are creating potentially better conditions for buyers,” said Todd Teta, chief product officer with ATTOM Data Solutions. “Continually rising home prices in many areas do remain a financial stretch – or simply unaffordable – for a majority of households. However, quarterly wage gains have been outpacing prices increases for more than a year and mortgage rates are falling, which have helped make homes a bit more affordable now, than they’ve been in a year. Affordability may improve because of the simple fact that homes are out of reach for so many home seekers, suggesting that prices need to moderate up in order to attract buyers.”

Successful Realtors® Build Teams.

Have You Built YOUR Aﬃlate Team? Let us help!

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What we do: Abide by the Realtor® Code of Ethics | Commit to helping you ﬁnd the right services for your business model and clientele | Support The Realtor® Poli�cal Ac�on Commitee(RPAC) | Work to ensure a smooth business transac�on from start to ﬁnish

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Commi�ee Vice Chair Commerce Mortgage 801-755-4988 mviselli@sisna.com

Commi�ee Chair Stewart Title 801-918-9669 sandy.day@stewart.com

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KRUSHENSKY VERITAS FUNDING FIRST AMERICAN TITLE 801-688-0599 801-598-7391

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30 | Salt Lake Realtor Â® | April 2019

A VOTE OF CONFIDENCE FOR RE/MAX® AGENTS Congratulations to the talented Salt Lake City RE/MAX® agents who made the top 500!

Brandon Calton

RE/MAX Associates

Cathy J Maxfield

RE/MAX Associates

David E. Winters

Brett R Sellick

RE/MAX Associates - Draper

Laura Bangerter

RE/MAX Associates - Draper

Ryan E Hook

RE/MAX Associates

RE/MAX Associates - Draper

Kevin Strong

Melissa H Collings

RE/MAX Associates

Rebecca Harston

RE/MAX Associates

Scott Alexander

RE/MAX Associates

Spencer F. Passey

RE/MAX Complete

Nicole Cloward

RE/MAX Complete

James A Ellis

RE/MAX Masters

Matt Page

RE/MAX Associates

RE/MAX Masters

Steven C Johnson

Ricardo Martinez

Zac Eldridge

Susie Martindale

RE/MAX Associates RE/MAX Associates

Chris Ross

RE/MAX Associates

RE/MAX Masters RE/MAX Masters

Cari Moss

RE/MAX Metro

Melodie Waldron RE/MAX Metro

Sue Benson

RE/MAX Metro

Haley Peacock

RE/MAX Metro Layton

Blake Hansen

RE/MAX Results South Jordan

Doug Winder

RE/MAX Results South Jordan

Jeff Hutchings

RE/MAX Results South Jordan

Lisa Radke

RE/MAX Results South Jordan

Robert D. Green

RE/MAX Results South Jordan

Terry T. Bickmore

RE/MAX Results South Jordan

Troy Darger

RE/MAX Results South Jordan

The first annual Realtor® 500 event recognized the top 500 Realtors® by MLS production volume belonging to the Salt Lake Board of Realtors®. The Realtor® 500 represents the top 5 percent of members as measured by dollar volume. Sales not reported to the MLS (UtahRealEsate.com) were not counted. In addition, only Realtors® listed as the primary buyer’s or seller’s agent were given credit for a sale.

MY WHY? i

I want it all. A network and brokerage that’s on my level. High standards, high tech and high performance — a place that inspires my growth. For the first time, with RE/MAX®, I can safely say I don’t just like my job, I love my career and the life it allows me to live.

Why RE/MAX? The culture is why.

Find your why. joinremax.com

Statistics tell a lot. But we think a smile says more. Weâ&#x20AC;&#x2122;re happy to welcome Jess Reid Real Estate to our family, with 3 offices and 30 agents.

All in, for Park City.

Grady Kohler and Jess Reid

10+

Offices across Utah to serve you, and your clientâ&#x20AC;&#x2122;s needs.

For more information about Windermere, contact our principal broker, Grady Kohler, at 801-815-4663.

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