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Table of Contents Why’d They Pick You?

p.18

Features 10 Introverts vs. Extroverts:

Who’s Really Better at Sales? Melissa Dittmann Tracey

14 Home Buyers Continue to Rely on Realtors® Despite Tech Advances 18 Why’d They Pick You? Graham Wood 22 10 Cities with High Ownership Rates for Low-Income Families

24 Survey: Majority of Real Estate firms Remain Optimistic, But Cite Challenges

30 Professionalism Matters Holly Rawson

Columns 7 The American Dream Grant

Scott Robbins – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover:

Aaron Morgan, left, Scott Colemere, and Curtis McDougal recently climbed to the top of Mt. Kilimanjaro. The team made it to the 19,341-foot summit on Jan. 23. Colemere and McDougal are members of the Salt Lake Board of Realtors®. Photo: Will Peterson. Photo left: Image licensed by Ingram Image

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

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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.

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O: (801) 890-7660 C: (801) 362-7159 julia@rate.com Rate.com/juliaborst

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Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google Inc. 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. Sample rates, LTV, and down payment amounts are provided for illustrative purposes only and are not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. This information is for industry use only and is not an advertisement for the extension of credit to consumers. Julia G. Borst NMLS ID: 275440; CA - CA-DBO275440, IL - 031.0038963, TX - 275440, UT - 5495305 | Keith Sargent NMLS ID: 273045; UT - 5494346 | Brent Maddox NMLS ID: 258349; UT - 6637741 • 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 • Utah - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions

Salt Lake

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® ®

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President Scott Robbins Summit Sotheby’s

Michael Morgan Realtypath LLC

The American Dream Grant

Scott Colemere Colemere Realty Associates

First Vice President Alicia Holdaway Summit Sotheby’s

Jodie Osofsky Utah Key Real Estate 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.

omeownership matters. That is why the Salt Lake Board of Realtors® this year is giving away four $5,000 down payment housing grants. This is just one way for us to give back to our community. These grants will target different individuals like first responders, school teachers, single parents and veterans. We are calling this program the American Dream Grants. The grants help to accomplish the dream of homeownership by providing needed down payment assistance to those in our community who deserve it most. The first grant is being offered to a Wasatch Front school district employee. The deadline to apply for the first grant is April 16 and will be awarded on April 30. Those who apply must meet certain qualifications. These include: a minimum credit score, household income limit, use of a Salt Lake Realtor®, the purchase of an owner-occupied home, the completion of a first-time home buyer program, and the ability to close on a home within 90 days. Members of this year’s Salt Lake Board of Realtors® Charity Committee will choose the winner of the grant at random from a list of all qualified applicants. For more details or to apply visit: www.slrealtors.com. Funding for the grants is made up mainly from the Utah Association of Realtors’ Housing Opportunity Fund (UARHOF). In 1998, the Utah Division of Real Estate amended an administrative rule to allow brokers within the state of Utah to earn interest on their trust accounts if that interest was used for affordable housing purposes. UARHOF was established to distribute those monies. UARHOF revenues also come from the purchase of Realtor® license plates, and private donations. Please tell your clients, friends and family about this opportunity. We would like to thank the Charity Committee for their work in making these grants possible.

Scott Robbins President

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.

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

March 2019 | Salt Lake Realtor ® | 7

Happenings

In the News Young Buyers Trust Recommendations above All Else Friends and family are the number one way younger millennials and Generation Zers learn about brands, outpacing Google, social media, Amazon, retail stores, and television, according to a recent study of 18- to 29-year-olds by Swift Prepaid Solutions, a payments technology provider.

Past Presidents Recognized Former presidents of the Salt Lake Board of Realtors® were recently recognized for their service and dedication to the real estate profession. Each president served a one year term and was elected to the position by the 16-member Board of Directors.

As digital natives, members of this group of emerging buyers are highly techsavvy, and, like their older counterparts, prefer to browse online before making a purchase. However, because brand loyalty among these buyers is largely driven by opinions of people they know and trust, it’s crucial for real estate pros to build strong, lasting relationships with their clients in order to attract more business. Here are three ways to provide high quality customer service to strengthen your brand reputation and build loyalty among your clientele. 1. Reply to emails and phone calls immediately. When a prospective client reaches out for the first time, and doesn’t hear back that same day, they may very well move on. Today’s clients are looking for fast responses to questions from someone who cares.

©Konstantin L/ Adobe Stock

Buyer’s Market? More sellers may need to tweak their asking price, as more than one in five homes on the market nationwide posted a price drop in the last month, according to Redfin. That bodes well for buyers, who may find they have more negotiating power than in recent years, when the market favored sellers. Last month marked the largest February rate for home price drops in at least a decade, the report noted. Many sellers listed their homes late last year, just as rising prices and mortgage rates were starting to price out their core pool of potential buyers. Meanwhile, some buyers are starting to think that waiting to purchase a home could pay off, especially as listing inventory continues to rise.

8 | Salt Lake Realtor ® | March 2019

2. Exercise unparalleled transparency. The more transparent a real estate professional is when working with a client, the more trust they will gain. “There’s no excuse for neglecting to disclose anything,” said San Diegobased real estate investor and educator Than Merrill. 3. Focus solely on your clients. Customer service consultant, speaker, and trainer Micah Solomon suggests getting to know clients on a personal level, like a bartender, doorman, or hairstylist would. Work on remembering details like the names of their children or pets. True personal service will differentiate your brand.

Congratulations

FROM DAVID WEEKLEY HOMES

WE LOVE OUR REAL ESTATE AGENTS! We are fortunate to partner with incredible and knowledgeable members of our Million Dollar Club, including: Jeff Stricklin

Charles Tucker

Jamison Lunnen

Maura Powers

Dave Robison

Scott Miller

Durven Wilson

Derek Johnson

Jill Saddler

Cheryl Lyon

Carolee Mecham

Julie Holmes

Mindy Fung

Ronna Christian

Kathleen & Daniel Granderath

Jonathan Winfree

Adam Frenza

Adam Willis

Brett Sellick

Robert Thompson

Brian Babb

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Dave Aughey

Thank you for your dedication and hard work as you enhance the lives of your Customers!

LEARN MORE ABOUT OUR MILLION DOLLAR CLUB 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 (SLCA105357)

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Introverts vs. Extroverts: Who’s Really Better at Sales? There’s almost zero correlation between extroversion and sales performance, according to research published in the Applied Psychology Journal. By Melissa Dittmann Tracey

ou don’t have to be a “people person” to succeed in sales. If your natural tendency is to be more quiet and reflective rather than talkative and outgoing, you can be just as successful in real estate—maybe even better, said Andy Johnson, a licensed counselor and author of Introvert Revolution. Johnson’s work has centered on debunking common myths about introverts in the workplace. People with extroverted personalities have long been assumed to be the most wired for sales jobs. Networking, prospecting, selfpromotional marketing, and face-to-face meetings tend to come easier for social butterflies than wallflowers. But don’t underestimate the introvert; their quietness and introspection can offer distinct advantages in a real estate career.

10 | Salt Lake Realtor ® | March 2019

Are You an Extrovert, Introvert, or Ambivert? Not sure which side of the spectrum you fall on? Take the Myers-Briggs personality test for a $50 fee, or opt for a free online assessment at PsychologyToday.com. There’s almost zero correlation between extroversion and sales performance, according to research published in the Applied Psychology Journal. Those who are most successful at sales tend to be people who are a hybrid of introverted and extroverted personalities, or “ambiverts,” according to the Psychological Science Journal. Ambiverts engage in flexible patterns of talking and listening and are able to express assertiveness while also being reflective, the studies found.

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Luckily, most people fall in between being introverted and extroverted, said researcher Adam Grant, a best-selling author on workplace success and a professor of psychology at the University of Pennsylvania. Grant said it’s beneficial for workers to learn where they fall on the introversion-extroversion spectrum so they’re aware of their tendencies. “Many people may not be aware that their personality traits are flexible,” he said. “I think of personality more like an anchor, with a freedom to pursue new possibilities without drifting too far.” Breaking Down Each Personality Source: Journal of Personality and Social Psychology

PERSONALITY TYPE

STRENGTHS

WEAKNESSES

Introverts

• Talks less and listens more, an important communication style when serving clients. • Reflective in nature, which enables anticipation of potential questions and objections.

• Perceived as shy, secretive, and antisocial. • Makes weak sales pitches. • Less confident when prospecting, networking, and negotiating.

• Engages easily in small talk. • Energized by collaboration. • Strong prospecting and networking skills. • Appears optimistic, confident, and friendly in face-toface meetings.

• Perceived as egotistical or rude. • Assertiveness can seem pushy or overconfident. • Talks more than listens. • Overexcitement can be seen as trying to influence decisions.

Extroverts

Making Your Personality Work in Real Estate Whether introverted, extroverted, or ambiverted, you can carve your path to success in the industry. Identify your personality traits, and learn which skill sets come more naturally to you and which ones you may need to adopt in certain situations. Here’s how to improve on your shortcomings. Introverts: What kinds of situations do you avoid because you feel you need to be extroverted to be successful? Is this jeopardizing your business in any way? Introverts can rehearse sales pitches or common customer objections to gain confidence and prepare for real-life encounters. If your introverted tendencies are standing in the way of growing

12 | Salt Lake Realtor ® | March 2019

your business, consider teaming up with an extroverted agent. Your teammate can attend networking mixers while you develop online marketing campaigns, delegating work you each excel at, Johnson said. Extroverts: Do you dominate conversations? Are you building deeper relationships with clients? Are you truly listening or just thinking of how you plan to reply? Extroverts may need to pay more attention to how much they’re talking in a conversation and remind themselves to ask questions and listen more. Play to your strengths. For example, networking is crucial to build your business, but you can do other activities than attending mixers if that doesn’t fit your personality, Johnson said. Introverts tend to be better at written communications, so they can concentrate on blogging and social media when it comes to client outreach. “Know the different set of skills you bring, and don’t hide them,” Johnson said. Extroverts, on the other hand, may be more successful at hosting buyer and seller seminars or sponsoring community events. Don’t fake it. Introverts, in particular, may feel the need to conform to extroverted expectations in the workplace, Johnson said. But that can backfire and won’t work over the long term. “We can adapt behavior in the moment, but pretending to be someone else can be very exhausting. And why would someone want to hire a real estate professional who is not their authentic self?” Johnson said. “It’s all about embracing and reframing your strengths as either an introvert or extrovert.” Opposites make good teams. Extroverts may bring lots of ideas to the table and talk out loud as they brainstorm. Introverts may bring inquisitive, reflective ideas to help spot solutions. Together, they can make powerful teams. Brokers should be careful not to overlook the skills of an introvert in hiring decisions. Reassess hiring and training processes to maximize the investment in potential sales leaders, according to research from Baylor University’s Keller Center for Research. “Your personality matters, but your ability to adapt matters much more,” Grant said. “You need to tell yourself, ‘I’m not going to be a slave to my traits just because I was built with these tendencies.’” Melissa Dittmann Tracey is a contributing editor for Realtor® Magazine. She can be reached at mtracey@ realtors.org. Reprinted from Realtor® Magazine Online, December 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

Our Passion

PHILANTHROPY Our passion for real estate is only matched by our passion for our community. At the close of every escrow, our sales associates and our firm voluntarily donate a portion of earnings to a 501(c)3 that we call Summit Sotheby’s Cares. Through this program, the team at Summit Sotheby’s International Realty is able to participate in giving back to the Park City, Salt Lake, and Southern Utah communities in which we live. 70+ non-profits were presented with over $100,000 in donations at our annual Summit Sotheby’s Cares presentations in Park City and in Salt Lake. With donations since 2010 closing in at nearly $1,000,000 this program is not about real estate, it is about gratitude and social responsibility. Thank you to our sales associates and clients — without you Summit Sotheby’s Cares would not be possible.

For more information on our 501(c)3, Summit Sotheby’s Cares, please visit our website or connect with a Summit Sotheby’s International Realty Sales Associate.

summitsothebysrealty.com ©MMXIX Sotheby’s International Realty Affiliates, Inc. All Rights Reser ved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Oppor tunity Company. Each Office Is Independently Owned And Operated. Copyright© Summit Sotheby’s International Realty 2019.

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Home Buyers Continue to Rely on Realtors® despite Tech Advances in the Home Buying Process Finding the right property was ranked as the most difficult step in the home buying process.

onsumers retain the internet as a critical tool during their home buying process, while buyers continue to utilize the knowledge and expertise of a real estate agent, according to the National Association of Realtors®’ Real Estate in a Digital Age report. The report examines the process home buyers go through in the initial online search and the role Realtors® play connecting with customers in the digital space.

14 | Salt Lake Realtor ® | March 2019

“Consumers have the ability to do more home buying research online than ever before. Still, Realtors® present tremendous value to buyers from every generation and every background. While consumers have more technological tools at their fingertips, Realtors® continue to be a large part of the home buying and selling equation,” said John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty.

The report found that finding the right property was ranked as the most difficult step in the home buying process. Since the internet is now the first place many people go for information, it is not surprising that 44 percent of buyers looked for properties online as a first step in the home buying process (the same as 2017). However, 87 percent of buyers in 2018 purchased their home with assistance from a real estate agent, a share that grows higher for millennials at 90 percent.

All buyers typically spent 10 weeks looking for a home, whereas millennials, members of generation X and the silent generations typically spent 8 weeks looking for a home. Younger and older boomers typically searched for 10 weeks. The Real Estate in a Digital Age report also found greater technology use by Realtors® and real estate firms to serve the needs of clients. Realtors® prefer to communicate with their clients via email (93 percent) as well as text messages (92 percent) and instant messaging (37 percent). Over 90 percent of Realtors® are also using e-mail, laptops/desktop computers, and smartphones daily.

While 99 percent of millennials and 90 percent of older boomers used online websites in their home search, only 70 percent of the silent generation - those ages 69 to 89 years - did the same. Older boomers used a mobile device at over half the rate of millennials (21 percent compared to 58 percent).

“Realtors® continue to find ways to make home buying and selling more efficient and accessible for their clients. As technology use continues to transform and modernize the real estate industry, Realtors® are focused on adapting to and remaining at the forefront of this change,” said Smaby.

When it comes to website listing features, photos and online property information were more important to millennials, while virtual tours and direct contact with a real estate agent were more important to baby boomers. Despite visual content growing in popularity and importance, older home buyers found virtual tours more useful than younger buyers. NoDownPayment-realtormag.pdf

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Social media continues to be popular with Realtors®, with 76 percent of females active on social media compared to 72 percent of males. Facebook and LinkedIn are the most utilized

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social media platforms among Realtors® (at 97 percent and 59 percent, respectively) compared to Instagram at 39 percent. The top technology tools that provide the highest quality of leads are social media (47 percent), MLS suite (32 percent), a brokerage’s website (29 percent) and a listing aggregator site (29 percent), according to the report.

Realtors® found that the three most valuable technology tools used in their business, excluding email and cell phones, were local MLS websites/apps (64 percent), lockbox/smart key devices (39 percent), and social media platforms (28 percent). Nearly 50 percent of all real estate firms cited keeping up with technology as one of the biggest challenges they face in the next two years. For commercial firms, 46 percent cite keeping up with technology as a challenge, while 51 percent of firms with three or more offices said the same. The report looked at the use of drones in real estate and found that 5 percent of Realtors® personally use drones, while 23 percent hire a professional, and 17 percent said that someone in their office uses drones. National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

16 | Salt Lake Realtor ® | March 2019

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Why’d They Pick You?

The traits that matter most to consumers. By Graham Wood

ou may be adept with your snazzy 3-D video camera or have encyclopedic knowledge of local market data, but are these traits enough to get clients to commit to you? According to the National Association of Realtors® Profile of Home Buyers and Sellers, consumers generally say they value your guidance in the home-search process, your marketing skills, and your negotiating prowess. But you have to delve deeper to uncover the specific challenges individual clients want you to solve. Here, three consumers recount the ups and downs they experienced in the sale or purchase of their home and explain what they valued most in their agent. Hands-on Help to Move On Julie Johnson was dealing with one of the toughest periods of her life when she decided to put her home on the market a year ago. She needed a quick sale not because she was upsizing, moving closer to friends and family, or relocating for a job—the three most common seller motivations, according to the NAR report. After being laid off from her job of 25 years as an advertising executive and going through two years of medical treatment for breast cancer, Johnson, 65, had trouble keeping up, both physically and financially, with her fourbedroom house in Oakland, Calif. She had been living off her savings for more than a year, an unsustainable plan. But leaving the home she had lived in for 16 years was difficult for Johnson to accept. She remembers the two-level house with an expansive deck as her place of Zen, where she practiced Buddhism and taught friends and family chants for world peace. “My home was a very happy one. There was so much love and joy—so many wonderful memories,” Johnson said. “I really wanted a family to move in. But I just needed help because it was really hard for me.” The transaction was her first as a seller, which added to the anxiety she felt. When she was looking for a real estate agent, Johnson remembered that she had met Cameron Platt, CRS, broker-partner at Abio Properties in Oakland, through a friend some time before.

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She bonded with him over their professional backgrounds. “In talking with him about his business, I realized our sales philosophies were similar: Take care of the customer, and the rest will fall in place,” Johnson recalled. She called Platt for a listing consultation and decided to hire him after he presented a thorough plan for getting her home market-ready, a task Johnson found particularly daunting. She needed to focus on moving in with friends and looking for an apartment, not tending to home repairs. So Platt and his team managed the process, bringing in painters, contractors, and inspectors. The cost of the repairs totaled close to $20,000, but Johnson paid only onethird up front, covering the rest with proceeds from the sale. “They brought in staging that was beautiful and ordered inspections for mold and water damage—things I had never thought of,” Johnson said. “It was so valuable to me that they were problem-solvers.” “We pride ourselves on providing concierge-level service, which is important to people like Julie who are in stressful situations,” Platt said. “We project-manage our listing prep to a very high degree, and once we laid out what we could do for her, she placed her trust in us completely.” After getting 10 offers on her home, Johnson, who is now cancer-free, sold in April 2016 for $100,000 over her $545,000 asking price—a great value in her high-priced area given that the buyer took responsibility for removing termites and replacing the property’s sewer system. Johnson was so impressed with Platt’s attentiveness that she’s now talking with him about buying a condo. “For me, it was ‘selling a house for dummies’ because I knew nothing, and he took me every step of the way,” Johnson said. “It was just pure customer service.” Better Than the Internet When Zach Henault, 28, of Austin, Texas, was looking to purchase his first home in 2015, the last thing he wanted to do was research the homebuying process. Unlike the 86 percent of buyers who say the internet was their top source of information when searching for a home, Henault didn’t have time outside his 60- to 80-hour work week as a client retention specialist with social media management firm Sprinklr to investigate items such as lenders and financing options. So it was important to him that his real estate agent, Chloe Elyse Chiang, srs, a sales associate with Twelve Rivers Realty in Austin, was a longtime friend—someone he could trust implicitly, who understood his lifestyle and could

present clear options within his budget. “Doing that research is a full-time job in and of itself,” said Henault, who closed on a three-bedroom, three-bathroom bungalow in April 2015. Chiang compiled an extensive homebuying checklist of items Henault needed to complete, and “60 to 70 percent were things I didn’t even know were part of the process,” he said, such as getting prequalified for a mortgage and saving for an earnest money deposit. Chiang also made a spreadsheet of the three financing options that would work best for Henault’s situation, with bullet points on how to qualify for each. “She made it as simple as possible for me and relieved me of a lot of work on my end,” Henault said. “It’s not that I couldn’t have gotten this information for myself. But having someone who not only does the work for you but then is able to explain what it all means is invaluable.” Chiang, who specializes in working with millennials, said many of her clients rely on her as the gatekeeper of information they need to know. She’s learned to present data concisely and visually so they can more easily understand what she’s saying. “My clients like Zach get overwhelmed with their options, and they’re skeptical of things they read online,” Chiang said, adding that they often double-check information with her to make sure it’s accurate. “When I earn a client’s trust, they tend to put more faith in me to handle the details of the process.” Making a Personal Investment Mary Swafford and her husband, David, both 59, owned four rental properties in their hometown of Norman, Okla. Their two daughters lived in the rentals when they were in college; the couple and also rented out properties to their kids’ friends. So when the couple decided to diversify their portfolio earlier this year and purchase an investment property in Rosemary Beach, Fla., where vacation rental prices are soaring, they had a fairly developed idea of what they wanted in an agent. “Sometimes, it has felt like I’m doing all the work as the buyer, and all the agent is doing is unlocking the door,” Swafford said, adding that many pros suggest properties they—not the client—think are good investments. “I needed somebody who would really listen to what I was looking for, not tell me what they thought I should be looking for.” While living in Oklahoma, the Swaffords began working with Beau Blankenship, a sales associate with Engel & Völkers in Destin, Fla., who is also a family friend. They would look at listings from afar and travel to Florida for in-person showings.

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help make their transitions easier—have left much to be desired. When the couple, both in their early 30s, moved to Evans, Ga., in 2015, the agent they worked with to buy a home wasn’t attentive, Callaghan said. “She knew she was going to get business no matter what because there was so much military turnover there, so it didn’t seem like we were a high priority to her.” In emails, the agent would refer to the couple as Hannah and Chad. “She couldn’t even get my husband’s name right,” Callaghan said. Now with a 4-month-old son, Graham, the Callaghans are moving from Georgia to Eldersburg, Md., where Kyle has been stationed. So they wanted an agent with stronger communication skills who would show more concern for their best interests. When another military family they know recommended Lisa Kittleman, a sales associate with Keller Williams Integrity in Ellicott City, Md., they were immediately attracted to her warm personality.

Blankenship said he has intimate knowledge of the inventory in his area so he can make the process speedy for his investors. “Once you know what they’re looking for in an investment or second home, you can narrow [their choices] down pretty quickly,” he said. Swafford said when she didn’t like a property, Blankenship didn’t try to change her mind. “I am not one of those people who need a lot of handholding,” Swafford said. “I can walk in a house and know within five minutes if I even want to go upstairs.” The Swaffords closed on a 2,700-square-foot four-bedroom, four-bathroom house in February. Now, Swafford said, Blankenship is helping them find painters and contractors to spruce the home up for renting. “That’s huge that he can help me through this from five states away,” she said. “We don’t have time to waste, and I appreciate that he’s right there with me.” Long-Distance Connection Hannah Callaghan and her husband, Kyle, an active military member, have lived in four different states in the last eight years because of his career. But some of their experiences with real estate agents—whom the couple hoped would

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Since the Callaghans were conducting their search online from Georgia, Kittleman regularly held consultations and even home tours with them over FaceTime. “She truly made us feel like we were her only clients, even when we weren’t there,” Callaghan said. Callaghan particularly appreciated that Kittleman’s property suggestions were tailored specifically to her family’s situation. Kittleman recommended looking at homes that were recently renovated or flipped because their resale value should hold up if the Callaghans have to move again on short notice. “A lot of young buyers think about resale value, but it’s definitely a bigger concern for military families who might be in the home for only two years,” Kittleman said. “When I found a property I knew would fit their needs, I drove to the house the day it came on the market and FaceTimed with Hannah and Kyle. They loved it and wrote an offer that day.” The Callaghans closed on their recently flipped three-bedroom Colonial in March. “It was so nice to work with someone who is professional but also someone you can talk to as a friend,” Callaghan said. “Lisa wants her clients to feel appreciated, and we hadn’t felt that way with other agents. She wanted us to have what we wanted.” Graham Wood is senior editor for Realtor® Magazine. He can be reached at gwood@realtors.org. Reprinted from Realtor® Magazine Online, May 2017, with permission of the National Association of Realtors®. Copyright 2017.

LOOKING GOOD, FEELING GOOD, & MAKING MONEY WHILE I DO IT. 6322 S 3000 E, Suite 110 Cottonwood Heights, UT 84121 Phone: 801-948-2501 Managing Broker: Mark Handy

10 Cities with High Ownership Rates for Low-Income Families Salt Lake City ranks No. 7 on the list

inneapolis may offer the most possibilities for low-income households to become homeowners. The city has the nation’s highest homeownership rate among households in the bottom 25 percent of income at 57.7 percent, according to a new analysis from Redfin of the 50 largest metros. Pittsburgh and St. Louis followed on the list, also having homes that tend to sell for less than the national median of $285,000. “Homeownership allows people to share in the prosperity of their communities and gain wealth through home equity,” according to Redfin Chief Economist Daryl Fairweather. “In many expensive metros, low-income residents aren’t able to access the benefits of homeownership because of a lack of affordable starter homes. But in areas like Minneapolis and Pittsburgh,

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low-income workers are still able to get their foot in the door on the American dream of homeownership.” The following are the metros with the highest homeownership rates for low-income households, according to Redfin’s analysis: 1. Minneapolis • Homeownership rate among households in bottom 25% of income (2017): 57.7% • Median sales price: $255,000 2. Pittsburgh • Homeownership rate among low-income households: 55.8% • Median sales price: $149,000 3. St. Louis • Homeownership rate among low-income

households: 55.5% • Median sales price: $173,000 4. Detroit • Homeownership rate among low-income households: 55% • Median sales price: $122,000 5. Tampa, Fla. • Homeownership rate among low-income households: 54.4% • Median sales price: $220,000 6. Louisville, Ky. • Homeownership rate among low-income households: 54.2% • Median sales price: $181,000 7. Salt Lake City • Homeownership rate among low-income households: 53.8% • Median sales price: $319,000 8. Nashville, Tenn. • Homeownership rate among low-income households: 53.7% • Median sales price: $284,000

9. Charlotte, N.C. • Homeownership rate among low-income households: 53.1% • Median sales price: $230,000 10. Philadelphia • Homeownership rate among low-income households: 52.6% • Median sales price: $190,000 Louisville, Charlotte, and Nashville saw the largest uptick in low-income homeownership from 2012 to 2017. Meanwhile, some metros— particularly the pricey coastal markets—saw some of the lowest amount of low-income homeownership (bottom 25 percent of income earners in 2017). Those metros are Los Angeles (31%); New York (35%), San Diego (37.6%), Las Vegas (39.7%), and Columbus, Ohio (39.8%). Source: “Minneapolis, Pittsburgh, and St. Louis Top Metros With Highest Homeownership Rates for LowIncome Families,” Redfin (March 4, 2019). Reprinted from Realtor® Magazine Online, March 2019, with permission of the National Association of Realtors®. Copyright 2019.

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virtual firms to increase in the next year and 43 percent expected the same from non-traditional market participants. “It is clear that the real estate industry is rapidly changing, and with that comes growing competition in the market,” said NAR CEO Bob Goldberg. “NAR continues to stay ahead of the evolving trends in technology as we work with market disruptors to best serve our members and ensure they have the resources needed to be successful.”

Survey: Majority of Real Estate Firms Remain Optimistic, But Cite Challenges Sixty percent of real estate firms expect profitability from all real estate activities to increase in the next year.

he evolving technological landscape, competition from nontraditional market participants and housing affordability continue to be among the biggest challenges facing real estate firms in the next two years, according to a report by the National Association of Realtors®. NAR’s 2019 Profile of Real Estate Firms found that commercial real estate firms were more likely than residential firms to cite local or regional economic conditions as the biggest challenges, while residential firms were more likely to mention competition from non-traditional market participants and virtual firms. The survey found that the vast majority of firms have an optimistic outlook for the industry’s future growth. Although expectations have slightly decreased from last year’s survey, firms remain confident and expect profits from real estate activities to increase or stay the same over the next year. “Real estate firms continue to look optimistically toward the future, with a majority expecting profits to increase in the next two years. These trends are positive signs, particularly in our constantly evolving industry,” said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty.

Firms also predicted the effects different generations of homebuyers would have on the industry. Fifty-eight percent of firms were concerned with Millennials’ ability to buy a home while 46 percent experienced similar heartburn with Millennials’ view of homeownership. Firms typically had 30 percent of their sales volume from past client referrals and 30 percent from repeat business from past clients. Fifty percent of current competition came from traditional brick and mortar large franchise firms. The most common benefit that firms offered to independent contractors, licensees, and agents was errors and omissions/ liability insurance at 40 percent. Thirty-five percent of senior management received errors and omissions/liability insurance, 15 percent vacation/ sick days, and 10 percent received health insurance. That survey states that over 80 percent of real estate firms had a single office, typically with two fulltime real estate licensees, down from three licensees in the 2017 report. Eighty-six percent of firms were independent non-franchised firms, 11 percent were independent franchised firms and 82 percent of firms specialized in residential brokerage. Thirtytwo percent of brokers of record were CEOs, presidents or owners, and 64 percent were regional managers or regional vice presidents. Firms with only one office had a median brokerage sales volume of $4.2 million in 2018 (down from $4.3 million in 2016), while firms with four or more offices had a median brokerage sales volume of $100 million in 2018 (down from $235.0 million in 2016). Thirteen percent of all firms had real estate teams, with a median of three people per team.

The report is based on a survey of firm executives who are members of NAR and provides insight into firm activity, the scope of benefits and education provided to agents and future market outlooks.

Real estate firms with one office had 18 real estate transaction sides in 2018 (down from 20 in 2016), while firms with four or more offices typically had 478 transaction sides (down from 550 in 2016). Firms usually received 30 percent of their sales volume from past client referrals and 30 percent from repeat business, while 50 percent of current competition came from traditional brick and mortar large franchise firms.

The report shows that almost 60 percent of firms expected profitability (net income) from all real estate activities to increase in the next year. Fortyfour percent of firms expected competition from

The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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REALTOR® Connections

On the Move

Advice from a Past President Robert Farnsworth 2003 President of the Salt Lake Board of Realtors® Associate Broker RE/MAX Associates Draper Q: Why do 91 percent of sellers use a real estate agent when buying or selling a home? A: If the other 9 percent knew what services the professional Realtor® provided the other 9 percent would do it as well. Every survey I have seen indicates that consumers will pay extra for good service. Q: What makes a Realtor® valuable? A: The first thing we bring is market knowledge. We have the transaction knowledge to guide a home buyer or seller through the process. Q: What can Realtors® do to increase their professionalism and value? A: The No. 1 thing is communication. The buyer and seller want to be informed. The best service we can provide to our clients is to keep them informed of the transaction. It’s hard to report to a client when there is no activity on a listing or no update to the transaction. That’s the most important time to give them an update.

Staying Safe

Ari Theodore, a professional firearms and defensive tactics instructor from Salt Lake City, recently addressed Realtors® at the Realtor® Campus on safety issues. The recent murder of Salt Lake Realtor® David Stokoe has pushed safety concerns to a No. 1 priority. The Department of Labor considers real estate sales and leasing a “hazardous” occupation. Ari has instructed military, law enforcement, private military contractors, and civilians for over 15 years.

Salt Lake Realtor® Magazine welcomes announcements on new Realtors®, affiliates, awards, office openings and professional accomplishments. Send your news to dave@slrealtors.com. News received is published at the discretion of Salt Lake Realtor® Magazine. 28 | Salt Lake Realtor ® | March 2019

Windermere Real Estate Utah recently announced the listing of the Hope Gallery property, also known as the historic Tracy Loan and Trust Co., in downtown Salt Lake City. The 103-year old building was designed by prominent New York City architect Walter J. Cooper. The 15,000 square-foot building reflects a neo-classical revival style, yet offers modern structural and mechanical systems. It was newly renovated in 2006. The building features walnut panels, marble floors, and a stained glass ceiling. It is among the finest historic structures in Salt Lake City and currently is the home to a distinctive collection of works by old Scandinavian and European masters from the 16th to early 21st centuries. Thomas and Camilla Fowler, commercial Realtors® with Windermere Real Estate, are the listing agents.

Mark Handy

Signature Real Estate Utah welcomes Mark Handy as managing broker, and the following agents: Jodie Osofsky, Jolene Lehman, Alyssa Taylor, and Rene Moss.

Professionalism Matters

Take the Time to Explain to Clients How a Real Estate Transaction Works By Holly Rawson, Salt Lake Board of Realtors® I referenced Article 1 last year but would like to bring it up again due to the volume of ethics complaints we receive citing a violation of this article. More specifically, part of Article 1 of the Realtor® Code of Ethics requires Realtors® to protect and promote the interests of their client. This all-encompassing article should not be taken lightly when it comes to representing the public in a real estate transaction that for most, especially first-time home buyers, is the biggest purchase of their lives. There is so much that goes into purchasing a home. The public relies on a knowledgeable agent to be there to represent their best interests and get them through the home buying process. Article 1 can be violated in many ways, although I know it may not always be intentional. Some common issues that pertain to this article that have been brought through the Salt Lake Board of Realtors® ethics process by members of the public have included not explaining contracts, not meeting contract deadlines, and not explaining multiple offer situations. Take the time to explain how a real estate transaction works, know your deadlines and ensure that things run smoothly to promote a positive experience for all involved. 30 | Salt Lake Realtor ® | March 2019

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