Issuu

Salt Lake

REALTOR Magazine August 2018

Outshine the Competition p. 20 Why Youâ€™re Worth Your Commission p. 14

FSBOs Net Less Money p. 10

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Table of Contents Features 10 The Cost of Selling Without a Real Estate Agent

National Association of Realtors® 12 Should You DIY the Sale of Your Home? Tonya Eberhart and Michael Carr

14 10 Skills You Have to Calm Commission Gripes

Salt Lake’s median home price in the second quarter climbed to $352,500. p. 26

20 Outshine the Competition During ‘Busy Season’

Kaycee Miller

24 How to Tell a Time-Wasting Client, ‘You’re Fired!’

Danielle Braff

29 2019 Board of Directors Nominees

Columns 7 Salt Lake is a Top Tech Talent Market

Adam Kirkham – President’s Message

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

On the Cover: Photo: Daybreak Community – Dave Anderton Photo left: ©zimmytws / AdobeStock Photos

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

August 2018 volume 78 number 8

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.

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Salt Lake

REALTOR

® ®

Maga zine

slrealtors.com slrealtors.com

President Adam Kirkham Summit Sotheby’s International First Vice President Scott Robbins Summit Sotheby’s International

Scott Colemere Colemere Realty Associates Kimberly Farber IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Tony Ketterling Equity Real Estate

Second Vice President Alicia Holdaway Equity Real Estate

Mike Morgan Realtypath

Treasurer Matthew Ulrich Ulrich Realtors®

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

Past President Troy Peterson Equity Real Estate

Steve A. Perry Realtypath Sophie Reece Berkshire Hathaway

Directors Cheryl Acker Utah Key Real Estate

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 Patrick Witmer Sales Staff Paula Bell Karen Malan Paul Nicholas

Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow Administrative Assistant KellieAnn Halvorsen

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.

Salt Lake is a Top Tech Talent Market

new report by commercial real estate firm CBRE ranks Salt Lake City No. 22 of the 50 largest tech talent markets in the United States and Canada. The scorecard used 13 metrics to measure each market’s vitality and attractiveness to companies seeking tech talent and to workers seeking employment. Salt Lake City’s tech talent pool is made up of nearly 32,000 workers. It grew by more than 5,500 people, a 21 percent increase, from 2012 through 2017. There are 5 million tech talent workers in the U.S. and 834,000 in Canada. “This relatively small labor force has an outsized impact on real estate markets and the economy,” the report noted. “The number of tech talent workers has increased by 16 percent in the past five years, adding 682,000 jobs to the U.S. economy at a pace more than three times the national average. They are fueling new innovation and adapting technology within non-traditional tech sectors to increase productivity and strengthen the national economy.” Salt Lake City’s overall ranking was higher than Vancouver, B.C., Los Angeles, Charlotte, N.C., Long Island, N.Y., and San Antonio, Texas. While large tech markets (those more than 50,000 tech workers) have a deeper pool of talent, small markets, like Salt Lake City, offer cost-of-living savings to businesses and workers, the report said. “Salt Lake City ranked as the eighth least expensive market in which to start a tech business, when taking into account rents and wages,” CBRE said. “When considering only U.S. markets, Salt Lake City has the fourth lowest estimated operating cost. This cost savings represents a significant advantage over markets which frequently compete against Utah for the formation and expansion of tech companies.” One area of concern was Salt Lake City’s brain drain. The Salt Lake area issued 17,840 tech degrees between 2011 through 2016. However, Salt Lake only added 5,550 jobs from 2012 through 2017. “This mismatch in the high number of local tech graduates to fewer tech job openings really represents more of an opportunity than anything else,” said Joseph Farrell, a research analyst and team lead in CBRE’s Salt Lake City office. “It tells tech employers looking to grow that even though Salt Lake has a low unemployment rate, there’s substantial local recruiting potential for new, quality talent—something they’d have to fight for (or bring in) in high target markets like San Francisco or Seattle.” The bottom line is top tech markets, like Salt Lake City, have a multiplier effect that positively increases economic growth and demand for real estate. This, in turn, means more jobs, more houses, more people, and more real estate transactions. This is a golden age for Salt Lake City’s real estate profession.

Adam Kirkham 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

August 2018 | Salt Lake Realtor ® | 7

Happenings

In the News

Limited Housing Inventory

©diyanadimitrova / AdobeStock

Two New Forms Focus on Solar Panels Have you ever sold a home or think you might sell a home that has solar panels on the roof? If so then you will need to be familiar with the new Utah Association of Realtors’® Solar Panel addendum to the REPC, and the updated Seller Property Condition disclosure form. The Solar Panel addendum to the REPC is very simple and should be used in situations where the solar panels are being included in the sale of a home, according to Curtis Bullock, CEO of the Salt Lake Board of Realtors®. The SPCD disclosure form has been updated to include more information about the solar panel system so buyers know what they are getting. Sellers will need to accurately fill this new section out. Solar panels are going to continue to become more and more common so check out these new forms on the UAR website at utahrealtors.com today and watch for them to be made available on your local MLS in the coming days.

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New Residential Construction is on the Rise While Utah housing inventory levels remain in short supply, a new report shows new residential construction is on the increase. In the first quarter, the number of new single-family homes permitted across the state increased to 3,042 units, up 24 percent compared to 2,444 units a year earlier, according to the Ivory-Boyer Construction Database. Permits for multifamily units climbed to 3,146 units, up 29 percent compared to the first quarter of 2017. Most new building activity is multifamily units. In 2010, single-family permits in Utah accounted for 72 percent of all new residential construction. Today, single-family homes make up 48 percent of new residential construction.

8 | Salt Lake Realtor ® | August 2018

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The Salt Lake Tribune reported that limited housing supplies on the Wasatch Front are stifling sales of single-family homes and pushing prices to new highs. The July 26 article went on to say that second quarter home sales fell 4.6 percent year-over-year, citing numbers by the Salt Lake Board of Realtors®. “Business and municipal leaders have launched a campaign to bring attention to deficient supplies of apartments, existing homes and new home construction across the state,” the article said. “A report commissioned by the Salt Lake Chamber has estimated that the number of dwellings built in Utah between 2011 and 2017 was about 50,000 below the number of new households formed.” Adam Kirkham, president of the Salt Lake Board of Realtors®, said in the article that rising home prices are impeding first-time home buyers from entering residential markets. “The region’s strong economy continues to attract thousands of people,” Kirkham added. “Net inmigration combined with household formations are creating a housing deficit that is likely to continue for several more years.”

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The Cost of Selling Without a Real Estate Agent

ou’ve heard of buyer’s remorse; but without your market expertise and sales skills to back them up, sellers who choose to sell their home on their own just may experience “seller’s regret” when they see how much less they get for their properties. FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent, according to the National Association of REALTORS®. Here’s the breakdown: · All agent-assisted homes: $250,000 (median selling price) · All FSBO homes: $190,000 · FSBO homes when buyer knew seller: $160,300 · With this kind of discrepancy, why would any seller choose to go it alone? Some may want to avoid paying an agent’s commission—but even factoring that in, FSBOs still stand to make less on their home sale. “Talk to an agent and find out what they suggest for the commission, and then do the math yourself,” researchers write on NAR’s Economists’ Outlook blog. “The closing price for the agent-assisted

10 | Salt Lake Realtor ® | August 2018

seller is likely going to be way above a FSBO. [But] in reality, homes sold by the owner make less money overall.” Homeowners seem to be hearing the message: Only 8 percent of sellers last year—an all-time low—chose to sell their home themselves, according to NAR’s 2017 Profile of Home Buyers and Sellers. That figure has been falling since 2004, when 14 percent of homeowners sold their own homes. Of the share of FSBOs last year, 38 percent of the homes were sold to a buyer that the seller knew, such as a friend, neighbor, or family member. The majority of FSBO transactions, however, were sold to buyers the owner did not know. “Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think,” National Association of REALTORS® Economists’ Outlook blog (July 9, 2018). Reprinted from Realtor® Magazine Online, July 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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It can be easy to assume that all real estate brokerages and sales associates are the same. The truth is, we’re passionate about being different – our unique qualities are at the heart of everything we do. For us, our responsibility goes way beyond assisting our clients in the purchasing and selling of real estate. We’re ambassadors of our community and of our industry. We look at each moment as an opportunity to bring irreplaceable value to our clients around the world, and in the process, redefine the real estate industry. Luxury isn’t tangible. It isn’t a price tag. Luxury is an experience and a commitment to going beyond the status quo. Being different isn’t for everyone, but to us, it is everything. summitsothebysrealty.com MMXVIII Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each office is independently owned and operated. Copyright© Summit Sotheby’s International Realty 2018.

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Sidebar Legal Tip:

Should You DIY the Sale of Your Home? By Curtis C. Bullock CEO, Salt Lake Board of Realtors®

or the last 16 years I have had the opportunity to help hundreds of Realtors® and many others with legal matters related to real estate transactions. One thing I’ve learned is that real estate transactions are very technical and complex. Even the “simple” transactions require some understanding. In just the last few days I have helped a couple seller friends get out of very difficult and complex real estate transactions that they had gotten themselves into. In both instances these sellers wanted to save some money and DIY the sale of their home - thinking that since it’s a hot sellers’ market what could possibly go wrong? Big mistake. In these two situations, purchase contracts with specific contingencies were signed by the seller who was not really familiar with what it all meant, who didn’t understand what deadlines needed to be met, and what the legal consequences were if

12 | Salt Lake Realtor ® | August 2018

those contingencies and deadlines weren’t satisfied. In both cases, large earnest money deposits were at stake and the risk of a lawsuit was high. The other problem beyond the legal issues that invariably come up with DIY’ing the sale of your home is that many sellers have a difficult time understanding market value. Setting an asking price for their home becomes difficult and sellers will often unknowingly leave tens of thousands of dollars on the table thinking they are saving money because they don’t have to pay a brokerage fee. This is another costly mistake. The best advice I have for my non-Realtor® friends is to hire a Realtor® for the largest investment of your life. It will be well worth it.

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10 Skills You Have to Calm Commission Gripes Nine out of 10 people who used the internet to search for homes purchased their home through a real estate agent. Here’s why your commission is worth the price. By Tonya Eberhart and Michael Carr

ven if you’re armed with vast amounts of knowledge of the industry, it isn’t very valuable without experience. To use a sports analogy, imagine that Michael Jordan had all the skills necessary to be a basketball phenomenon in his early teens but never put them to use. Would he be the hoops superstar he is today? Without the experience of playing the game, the short answer is no. You are no different. Without experience dealing with the ups and downs of the real estate market, you wouldn’t have the answers to the critical questions your clients seek. Is a certain obstacle to the transaction really a deal breaker? Why are certain homes selling faster than others in a particular area? Which marketing tools have been proven to work best to attract a specific customer? Which negotiating tactics are likely to

14 | Salt Lake Realtor ® | August 2018

move things to the closing table faster? Let’s look at how your experience supports your commission with tips drawn from our book, 31 Reasons Your Real Estate Agent Is Worth Their Commission. You’ve got tools your clients don’t have. You could pull your own bad tooth with a pair of pliers, but the dentist—who went to school to learn and practice the skills of dentistry—has all the right tools. And after the procedure, the dentist knows the next step. Similarly, when it comes to real estate, only you know all the rules, pitfalls, and expectations. Display confidence about your real estate skills in every conversation you have with potential clients. Back that confidence up with stories or data that demonstrate your skills. (continued on page 18)

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10 Skills (continued from page 14) You’ve got relationships your clients don’t have. You use the skills of your job as a real estate agent every day. You meet with buyers and sellers who are looking for the right property or opportunity. That means you form acquaintances and relationships that also prove invaluable over time. And you work to foster those relationships and stay on top of what matters to them. Many times, you will have a buyer in mind before you even attain a listing. Your prospects need to know this. You’ve turned objections into opportunities. You hear “no” every day. While buyers and sellers might think that is an absolute answer, you can see what is flexible and fixable. You can confidently navigate treacherous waters because you have overcome obstacles in transactions before, many of which your clients didn’t even know existed. Experience is often unveiled by answering questions your clients didn’t even know they needed to ask. You’re more efficient at solving problems. Most people are not aware of the time that can be wasted when issues arise, unnecessarily prolonging a closing. But they definitely feel the frustration when it happens. You, however, can see through 99 percent of those issues (many of which are simply excuses) and know how to circumvent them or bypass them completely, saving your clients time and often saving the deal. You bring education and modern technology. Strategy is paramount in real estate sales. Experience provides that extra 5 percent

18 | Salt Lake Realtor ® | August 2018

difference that often leads to the 26 percent better return on your client’s investment. You take continuing education courses every year to learn the latest guidelines, techniques, and tactics to do your job like a pro. Through your associations, you have access to every gadget or tool that gives your client’s property a competitive edge, and many of them are exclusive to your industry or brokerage. You’re loyal to a fault—and that’s priceless. Once your client contracts with you, you are not only required by law to look after their best interests but you also willingly offer them your loyalty. Take the story of Tenzing Norgay. When Sir Edmund Hillary became the first person on record to reach the top of Mt. Everest, Tenzing Norgay was the Sherpa who was pushing him while carrying his backpack. Even when you don’t receive the credit, you remain loyal and steadfast. And this loyalty wins you more than the deal—it wins lifelong customers. You act as your clients’ “broker.” “Broker” can be a noun that describes a person in a lot of industries—stock broker, franchise broker, mortgage broker—and it’s the definition most consumers think of. However, “brokering,” as it pertains to doing deals in real estate, is a verb that, by definition, describes why all real estate professionals are worth a commission. Just ask any investor whose agent was able to use their experience to navigate a multiple-offer deal by negotiating terms rather than price. The average buyer or seller may not realize how much your brokering experience can affect the bottom line of their investment. It’s imperative to communicate it early in the process.

You’re the first to know. You often get the first peek at properties that are off-market or hitting the MLS soon. You know about planning and development for your area, as well as the players who are making it happen. You know about market changes that can directly affect pricing, timing, and speed of sale. This edge can put your buyers and sellers in an advantageous position that they would never realize without your experience. Many times, agents have sold a property before it even hits the MLS because of this experience. You’re always accessible. Many of you are accessible seven days a week, 52 weeks a year. And most of you have your family trained to expect a little interruption on occasion. There are few industries where this accessibility is expected more than in real estate. Obviously, everyone needs down time and to properly prioritize, but one of the reasons you’re worth the commission is because you’re there when your clients need you. Most of you have sacrificed both professionally and personally at one time or another to meet this expectation. Your clients should know that access is invaluable.

The statistics are on your side. There are more than 500,000 active full-time agents and more than 6 million housing units sold each year in the U.S. That represents the vast majority of buyers and sellers who utilize and pay for an agent to help them navigate the highly competitive and complicated real estate process. In fact, 88 percent of buyers purchased their home through a real estate agent, but among those who used the internet to search for homes, that share goes up to 90 percent, according to the National Association of REALTORS®’ Real Estate in a Digital Age 2017 Report. Hiring someone with your experience can save your clients both time and money, a fact that has been proven time and again with sound statistics. Tonya Eberhart is the founder of personal branding firm BrandFace, LLC. Michael Carr is a former BrandFace client-turned-co-author and partner. They focus on helping real estate professionals become the face of their business and a star in their market. Learn more at BrandFaceRealEstate.com. Reprinted from Realtor® Magazine Online, June 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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Outshine the Competition During ‘Busy Season’ Your company needs a strategy that will help clients reach their goals in this heated market. By Kaycee Miller

ompetition in real estate is fierce on many levels. Low housing inventories are plaguing markets across the country, so buyers are having a tough time finding properties that suit their needs. However, home shoppers still have high expectations and are seeking updated, move-in– ready homes—which means the stakes are higher for sellers as competition rises. How does your company stand out among all the hullabaloo? What can your agents offer potential clients to set themselves apart from other practitioners in your area? Here are a few things you can do outshine them all: Know the market stats: Your agents need to have a deep understanding of the market, going beyond just knowing pricing and supply to provide predictions for the future. They should

20 | Salt Lake Realtor ® | August 2018

be able to share solid numbers with their clients to back up the transaction. The more confident people feel in their purchase or sale, the more apt clients are to refer your agent or use him or her in a future transaction. I encourage you to read the latest news that covers real estate trends and to keep a close relationship with the National Association of Realtors® to stay abreast of all real estate statistics. Spread your knowledge: Experience is powerful. Agents and clients alike can benefit from the wealth of information in your brain. Share your market insights often. We have so many ways to disseminate knowledge in the digital world, so take advantage of it. Start a company blog (I have some recommendations on this) and share on social media and in e-newsletters. Provide market

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insights that agents can distribute at open houses and events. Attend community functions and encourage your agents to join networking groups. I guarantee there will be people in those groups talking about the real estate market, which gives your agents the opportunity to be the smart one in the room. Teach the importance of urgency: Nothing will turn a client off faster than a missed phone call or message. In a culture and society that expects everything to be instant (or faster), it can feel like an eternity waiting for a return call or email—and no one is going to wait an eternity before moving on to the next agent. Talk to your agents about the importance of urgency and how critical it is to be there for leads and clients. Set up a system so that if an agent is unavailable, a trusted colleague can handle emails, calls, or showings. Go the extra mile: Does your company offer staging services? How about a moving van? While competition is fierce when looking for the perfect property for your buyers, it’s also fierce when vying for coveted listings. Your company and its agents need to take care of their buyers and sellers every step of the way to eclipse the

competition. This will also help you create buzz about your brand. Find a niche: If your agents are struggling, it might be because they’re attempting to be the Jack (or Jill) of all trades, master of none. Help agents be a master by working with a particular clientele, property type, or neighborhood. For instance, it might make sense to specialize in mixed-use buildings in high-demand areas or focus on out-of-town transplants. Your agents can become the go-to resource for first-time buyers, investment properties, retirement communities, or commercial properties. Then, teach those agents how to market their business around those niche neighborhoods or specialties so they’re better positioned to win over potential clients. Kaycee Miller manages marketing and media relations for Rentec Direct and shares industry news, products, and trends within the community. Learn more about Kaycee at www.rentecdirect.com and on Twitter at @thatrentergirl. Reprinted from Realtor® Magazine Online, July 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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22 | Salt Lake Realtor ® | August 2018

How to Tell a Time-Wasting Client, ‘You’re Fired!’ You aren’t necessarily suited to work with every buyer and seller that comes your way. When it’s time to end a business relationship, learn how to do it with finesse. By Danielle Braff reaking up is hard to do. B There are many reasons for calling it quits

with a client, though. Whether he or she won’t commit to a path forward for the transaction or stalls upon every request from a lender, appraiser, or contractor, you’ll likely need the skills to cut ties amicably with a time-waster at some point in your career. But while you’re accustomed to managing your clients’ emotions, you’ll also need to put a governor on your own in this sensitive and potentially contentious scenario.

24 | Salt Lake Realtor ® | August 2018

One buyer’s constant indecisiveness led to a breaking point last October between the client and Justin Paulhamus, MRP, associate broker at M Squared Real Estate in Washington, D.C. Paulhamus showed the buyer about a dozen homes that matched her exact criteria. Still, she discarded every one and refused to look at 50 other listings Paulhamus had found on the MLS. “I asked questions differently and listened intently to her needs,” but no amount of diligence made the relationship easier, Paulhamus said. “It was

mentally, physically, and emotionally exhausting. I never experienced anything like this before.” After numerous failed attempts to help the buyer find a home, Paulhamus lost faith that he could serve his client to her liking and decided it was time to end the relationship. But Paulhamus, who said his face is “very expressive” and sometimes betrays the neutral facade he endeavors to project with clients, found it difficult to manage his own emotions through the irritating ordeal. “Every time I met [the buyer], I had to consciously think about how I was carrying myself—thinking before speaking and ensuring my tone was as vanilla as possible,” he said. Maintaining professionalism—even with a maddeningly irrational client—is of the utmost importance, Paulhamus added. So when he felt like firing his buyer on the spot after she rejected the twelfth home he showed her, Paulhamus let cooler heads prevail, taking the evening to calm down. They met for coffee the next day, and he explained that he couldn’t represent her any longer. After providing referrals to other agents, Paulhamus wished her the best and left. “I could tell by her face that she was a little surprised,” he said. “I was completely honest with her, and I could see she began to understand my perspective. “Sometimes when you start down this path, you don’t realize how difficult a client may become. … That’s just real estate,” Paulhamus added.

In some cases, clients may be up front with you about their picky or overbearing proclivities. This can be an advantage for you, giving you insight into their personality and the ability to make a quick decision about what you will and won’t put up with before the relationship gets too deep. Michael Hausam, team leader of The Hausam Group at Shore Capital Corp. in Huntington Beach, Calif., recalls a startling and somewhat hostile disclosure one client made to him in the spring of 2008 right after signing a service agreement. “You can expect that every single thing you do will be subject to a microscopic evaluation, and nothing escapes my inquiry and notice,” Hausam recalls the client—an attorney—saying to him. “I don’t trust you, nor anyone else, and as a result, I’m going to make this entire process of working together an absolute nightmare.” The ink on the agreement hadn’t yet dried when Hausam suggested that he might not be the best agent to represent the client. He recalls couching the kiss-off like this: “You know what, I’m not sure that I’m the right fit for you. Thank you so much, but I think it might be better for you to find someone else who can give you exactly what you’re looking for.” Hausam said he didn’t specifically address the client’s attitude in an effort to avoid offending him and making an enemy who could possibly harm his business (continued on page 30)

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August 2018 | Salt Lake Realtor ® | 25

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July 2018 | Salt Lake Realtor Â® | 27

On the Move

REALTOR® Connections

Realtor® Day at the Parade of Homes Realtors® and affiliates enjoyed an afternoon of food and toured model homes at the Realtor® Day Island Party on Aug. 1 in Herriman. Members received a free Parade of Home ticket and had the chance to buy discounted Parade tickets. The activity was sponsored by Sage Homes, Security National Mortgage, Alair Homes, Hardrock Homes, Magleby Communities, Richmond American Homes, Salt Lake Parade of Homes, Lassig at Citywide Home Loans, and the Salt Lake Board of Realtors®.

Children’s Christmas Carnival Heather Nelson, principal broker at Utah Key Real Estate, and Chris McPherson, loan officer at Academy Mortgage, organized and hosted the Children’s Christmas Carnival in June at The Road Home shelter in Midvale. More than 70 volunteers took part in the day’s event. Volunteers and local businesses raised $20,000 to make the activity possible. Children were given a backpack filled with toys, clothes, and other living necessities. A live band and the Jazz Dunk Team entertained families. Apollo Burger provided lunch. More than 300 people at the shelter took part in the day’s activities.

28 | Salt Lake Realtor ® | August 2018

Friends and colleagues in June joined in a retirement celebration for Barbara Breen, manager of marketing outreach for Daybreak Communities (pictured above right). Barbara worked at Daybreak since 2004. She was instrumental in reaching out to Realtors® and went the extra mile in supporting the association with sponsorships, giveaways, and great ideas. Her dedication and approachable style made her a friend to all. She served as chairwoman of the Affiliate Advisory Board and was a tireless volunteer at many events. She received the 2016 Affiliate of the Year award from the Salt Lake Board of Realtors®. Barbara has lived across the world, including Mexico, Australia, England, New York and Colorado. However, Utah is where she and her husband, Aaron, plan to stay in retirement. The Salt Lake Board of Realtors® wishes Barbara the very best. Red Ledges, a private destination community in Utah’s Park City/Heber Valley region, announced record sales for the first half of 2018. Sales transactions (closings) in the first six months of 2018 were up nearly 30 percent over the prior year, while the total dollar volume of sales jumped 70 percent, to nearly $30 million. The sales at Red Ledges from January to June 2018 included a mix of homesites and existing structures. 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.

August 2018 | Salt Lake Realtor Â® | 29

Time Wasting Clients (continued from page 25) in the future. “What I wanted to say was, ‘You’re going to be a nightmare client from the darkest pit of hell, and I’d be a fool to work for you,’” he said. “I felt like I dodged a bullet.” Other red flags about a customer take time to develop, according to Seth Lejeune, a sales associate with Berkshire Hathaway HomeServices Fox & Roach, Realtors®, in Collegeville, Pa. When clients take days to return calls or emails, Lejeune takes it as a sign that they are noncommittal to the real estate process and cuts off the relationship. “It is quite possible they are too busy, but the marketplace doesn’t care about how busy you are,” Lejeune said. “If it takes you a couple of days to get organized enough to return an email, there’s no way you’re going to be organized enough to jump at a property in an hour’s time.” He keeps the split professional and puts it in writing, usually in a text. “This format allows me to keep it clear and concise,” Lejeune said. “In rare cases, I may have to leave a listing agreement, and that needs to be in writing.” Depending on the situation, he may also refer the client to another agent, explaining his workload and simply saying, “Good luck.” “I am fortunate to have built a book of business where I can choose who I work with, so firing clients [who aren’t productive to work with] is usually beneficial to my income,” he said. Though it may hurt initially, firing a client is often for the best for both parties. “At first, it’s a stressful thought to have because it’s a sale you don’t get,” said Katie Messenger, a sales associate with Keller Williams Realty East in Louisville, Ky. But she was relieved to let a client go in April 2016 who backed out of two offers at the last minute. The buyer eventually closed on a home with another agent more than a year later—after pulling out of numerous additional deals and spending thousands on inspections. “I ultimately came to the conclusion that the mental wear and tear, the gas money spent, and the potentially uncomfortable situations I would be in were not worth it,” Messenger said. “While you’re running yourself ragged for a client who doesn’t respect your time, your industry, or whatever else you may be going through, you could be missing opportunities to work with people who value you,” she added. “Once you learn that you have the ability to control your business and who gets to do business with you, it’s empowering.” Red Flags of Time-Wasting Clients Unless you’ve got a crystal ball, it’s often difficult to know up front whether a client is motivated and will bring you a successful sale. But there are a few signs that can help you determine whether the client will be worth your effort.

30 | Salt Lake Realtor ® | August 2018

“What I wanted to say was, ‘You’re going to be a nightmare client from the darkest pit of hell, and I’d be a fool to work for you,’” he said. “I felt like I dodged a bullet.” – Michael Hausam

• Insistence on delaying mortgage approval. Some buyers may push you to take them on showings or perform other actions as their real estate representative before they’ve spoken to a bank about getting preapproved for a mortgage. These buyers may say they know their financials are in good order and that they will have no problem getting approved. That’s a huge red flag, Lejeune said. They may be stalling because they’re afraid that, in fact, their financial profile isn’t good. “If they are worried about a slight ding on their credit, there’s no way they are prepared to make an investment in real estate,” he said. “I rarely show to people who haven’t at least spoken to a lender, as I see this as a huge indicator of motivation.” • Unwillingness to follow your advice. A seller, for example, who refuses to declutter or, most importantly, set a reasonable list price is showing you that they don’t trust your professional opinion. Clients who don’t trust you often make decisions that end up prolonging the sale and wasting your time, and in general, they can be difficult to work with, said Sterling Watkins, broker-owner of HelpU-Sell of Folsom in Folsom, Calif. • Refusal to abide by your service agreement. Agents commonly request that their clients agree to an exclusive service contract, meaning no other real estate professional can represent the client. Other typical clauses in a service agreement stipulate that the client should be preapproved for a mortgage or be able to show proof of funds before going out on showings, as well as live within a reasonable distance from the area in which they are looking to buy. Clients who balk at these rules may be likely to give you trouble in other parts of the business relationship. Danielle Braff is a freelance writer, living in Chicago with her husband, two daughters, two cats, and a dog. Learn more about her at DanielleBraff.com. Reprinted from Realtor® Magazine Online, July 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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