Salt Lake Realtor – October 2018

Salt Lake

REALTOR Magazine October 2018

When Not to Text p. 24 Got Flood Insurance? p. 18

When Emotions Run High

p. 22

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Table of Contents Will iBuyers revolutionize the real estate transaction or do they make transactions more complicated? p.12

Features 10 Habitat Homes Dedicated 12 When You’re Selling to an Algorithim

Carolyn Schwaar 18 FEMA Urging Utah Residents to Prepare for Floods

David Maurstad

20 Why RPAC Fundraising Matters Matt Clewett 22 When Emotions Run High in the Workplace

Lee Nelson

24 Moments When Clients Don’t Want You to Text

Mandy Ellis

Columns 7 Last Chance to Apply for a Service Award

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: ©Johnny/ Adobe Stock Photo left: ©Markus Spiske/ Adobe Stock

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

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October 2018 volume 78 number 10

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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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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 Summit Sotheby’s International

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 Wise Choice Real Estate 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 Katie Steckler Patrick Witmer Office Administrator Cynthia Bell Snow Office Assistant Jessica 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.

Last Chance to Apply for a Service Award

D

o you know a member that deserves to be nominated for a Realtor® service award? If so, please take the time to apply at www.slrealtor.com/awards.

The deadline for nominations has been extended for a few more days.

In 2018, the Salt Lake Board of Directors adopted a new and improved way of conducting the Annual Awards event. In past years it was a challenge to look at and judge the hundreds of different types of Realtor® business models and then attempt to place them into only a few awards categories.

With the difficulties associated with this process, the Board adopted a forward thinking and more inclusive direction with awards. The awards will be broken down into two separate events – (1) the Holiday Social / Service Awards event in December, and (2) a Realtor® 500 Awards luncheon with the top 500 producing Realtors® to be held in January of the following year.

Four awards will be given at the December Holiday Social: Realtor® of the Year, Affiliate of the Year, Good Neighbor, and Distinguished Service. This is a great opportunity to be recognized before an audience of nearly 1,000 of your peers.

Award winners will also be recognized in The Salt Lake Tribune and Deseret News.

Realtor® of the Year – This prestigious award is determined by a committee comprised of the past five recipients of this award. It is an award that is not based on sales volume but rather focuses more on an individual Realtor® who has given to the real estate profession and community.

Affiliate of the Year – This award is selected by the past five recipients of the awards. It focuses on outstanding affiliates who give back to the industry. The recipient of this award will appear in the local newspaper.

Good Neighbor – This year, not one, but three individuals will be selected as Good Neighbor Award winners. As some of you know, the National Association of Realtors® selects five Good Neighbor Recipients each year. We are mirroring this approach with our awards. There are so many Realtors® who do tremendous work in the community and we want to recognize as many as possible each year going forward.

Distinguished Service Award – As in the past, recipients of this award earn Distinguished Service by (1) obtaining 50 points throughout the given year for Board participation, or (2) by being a major RPAC investor ($1,000). One change this year will be that all Sterling RPAC major investors ($1,000) will automatically receive this award and will not have to apply online. Those wishing to receive this award by investing in RPAC must have their investment made no later than Nov. 15, 2018.

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

October 2018 | Salt Lake Realtor ® | 7

Happenings

In the News

Aloha to Paul Rudd

Paul Rudd of Utah Select Realty was the winner of the RPAC Hawaii giveaway contest. Paul won a Hawaii vacation for two valued at $5,000.

He invested $100 to RPAC when paying his annual membership dues. He is a newly licensed agent who lives in Sandy. Members who donated a minimum of $15 to RPAC when paying their 2018 membership dues were entered into the Hawaii contest. The winner was selected by a random number generator.

Fun Shoot for RPAC Realtors® and affiliates enjoyed a fun shoot event in August that raised nearly $18,000 for the Realtors® Political Action Committee (RPAC). Thank you to all of the members that participated. RPAC promotes the election of pro-Realtor® candidates across the United States. The purpose of RPAC is to raise and spend money to elect candidates who understand and support Realtor® interests.

8 | Salt Lake Realtor ® | October 2018

Student Loan Debt Delays Home Buying Consumers drowning in student loan debt say that it is delaying their purchase of homes—a concern most often faced by women and millennials, according to the sixth annual NeighborWorks America at Home report, a survey of about 1,000 U.S. adults.

Rising costs has prompted overall student loan debt to climb 130 percent since 2008.

Student loan debt has surpassed $1.5 trillion and now makes up 42 percent of all consumer debt, according to the report. Of that, women carry about two-thirds of the total debt at nearly $900 billion.

Twenty-nine percent of women say they are “burdened” by student loan debt compared to 23 percent of men. Minority women have nearly double the amount of debt than white women. Further, 38 percent of women say they know someone who has delayed buying a home because of student loan debt, according to the survey.

Millennials are also facing heavy debt from student loans.

Fifty-seven percent of millennials surveyed say they are burdened by student debt, and 59 percent say either they or someone they know has delayed purchasing a home because of that debt.

The report points to financial counseling through nonprofit housing groups or down payment assistance programs to help those who are struggling with student loan debt but want to buy a home.

A separate study from 2017 by the National Association of REALTORS® found that 83 percent of non-homeowners cited student loan debt as the chief factor delaying them from buying a home.

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Habitat Homes Dedicated

T

wo new Salt Lake Valley Habitat for Humanity homes were dedicated in September at the Field of Dreams Eco Community in Kearns. Members of the Salt Lake Board of Realtors® Charity Committee volunteered many hours in building the homes and decorating children’s bedrooms. The Salt Lake Board of Realtors® sponsored two build days where Realtor® and affiliate volunteers helped in construction. The Board gives special thanks to Art Gayler, chairman of the Charity Committee and a broker with Venture West Real Estate, who organized and helped.

The Board also thanks Julie and Gavin Krushensky, Sophie and Tony Reece, and Julie Bentley for their many hours of service. Windermere Real Estate Utah donated $3,000 to Habitat as part of the Board’s corporate build days.

10 | Salt Lake Realtor ® | October 2018

Photos: Dave Anderton October 2018 | Salt Lake Realtor ÂŽ | 11

©sheelamohanachandran/ Adobe Stock

When You’re Selling to an Algorithim Despite iBuyers’ claims to revolutionize the real estate transaction, some agents are finding their transactions are neither quick nor seamless.

By Carolyn Schwaar

E

rica Ockey, an agent with Signature Real Estate Group in Las Vegas, officially left her comfort zone the day her clients expressed interest in selling their home to a tech startup.

Opendoor, one of a host of emerging players known as iBuyers that are shaking up traditional business models by promising to streamline transactions with quick all-cash offers to sellers within hours, is drawing the attention of real estate pros and stirring as much intrigue as handwringing within the industry. But when her clients fell in love with a home owned by Opendoor—and the only way to get it was to sell their current home to the company—Ockey forged into this unfamiliar terrain.

She couldn’t easily banish the thought that she was working with a company that boasts that homebuying and homeselling is faster and easier without listing agents or buyer’s agents. She’d seen the ads; they were everywhere on TV and radio: Get an offer with the click of a button, skip the showings, sell on your schedule—but there had to be a catch, she thought.

Among the questions Ockey had about these iBuyers: How much below market value are their

12 | Salt Lake Realtor ® | October 2018

offers? What are the fees and conditions, and are they transparent to sellers and buyers? What kind of customer experience did they offer? She went online to Opendoor, Offerpad, and others in the Las Vegas market and entered the details on her client’s home. The instant offers varied widely, with one more than $60,000 below the estimated market value. But when Opendoor came back with a reasonable initial offer on her clients’ home, Ockey and her clients cautiously went ahead with the transaction.

How It Works

Opendoor, which launched in 2014, says it’s not a house flipper. “We aim for fair market offers, making money on the fees we charge, not the profit on resale,” said Jim Sexton, head of Opendoor’s broker development. The company said it sells 800 homes a month across its 11 markets, with plans to expand to 50 markets by the end of 2020.

Currently, it has nearly 3 percent market share in Las Vegas.

Opendoor eyes markets with ample volume, size, and liquidity, said Sexton, who added, “We’re looking for markets that don’t have many

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barriers to entry, such as hefty transfer taxes or other local or state regulations that make a transaction difficult.”

An Opendoor competitor, Offerpad, operates in eight markets with plans to expand, while Zillow, one of the newest entrants into the direct buying niche with its Instant Offer program, has been successful in Las Vegas and Phoenix, where it expects to buy and sell up to 1,000 homes by year’s end. The new Redfin Now program is available in two California test markets, and Knock, operating in Atlanta and in Charlotte and Raleigh, N.C., enables “trade-in” clients to buy a new home before their existing home is listed.

These companies all claim to speed up and simplify the real estate transaction while removing uncertainty and inconvenience for sellers and buyers. The appeal of the marketing spiel is easy to understand, but how applicable is this model for most consumers? And how likely is it that these companies will become significant players in many markets?

“The market is really driving this model,” said real estate consultant Victor Lund, founder of WAV Group. “The convenience factor, along with an alignment of circumstances are contributing to the growth of iBuyers. Consumers have built up a lot of equity in their homes since the recession, interest rates are low, days on market are low, prices are up, and there’s lots of competition, which puts cash buyers in a better position to buy.” These circumstances create the optimal environment for iBuyers to thrive. Lund believes that once prices slip and homes generally take longer to sell, consumer interest in iBuyers will fade.

Among agents who have interacted with these models, what are they finding? Despite iBuyers’ claims to revolutionize the real estate transaction, some agents are finding their transactions are neither quick nor seamless. For example, after Ockey’s clients accepted the Opendoor offer, the next step was the inspection. A team of five Opendoor contractors—one for electrical, one for plumbing, one for foundations, and so on— went through the house with a magnifying glass, said Ockey. “They asked us to fix everything you could think of. They wanted bathtubs and toilets replaced if there was even the slightest blemish.

They wanted showers retiled and regrouted. It wasn’t little projects; they wanted to remodel the home, and they wanted the seller to pay for it.”

The requested repairs came to about $16,000 on a $300,000 home. Ockey spent weeks negotiating that figure down, which added time and worry to the transaction. “Having representation saved my clients thousands of dollars, but in the end, they made about $10,000 less than they would have selling to a traditional buyer. It’s not horrible, but it’s a lot of money when you only have $20,000 or $30,000 in equity.”

14 | Salt Lake Realtor ® | October 2018

In the Atlanta market, Knock said its “local license experts” are modernizing how consumers buy and sell houses by helping them efficiently trade in their old home for a new one. Jodi Hough, an agent with Berkshire Hathaway HomeServices Georgia Properties, recently helped clients sell their home to Knock. “The most challenging part of the sale was all the different people involved,” said Hough. “One agent did the showing, another agent negotiated the offer, and another did the final walkthrough. As we moved along the transaction, there were a lot of missed loops and extra follow-up needed to make sure everything was going smoothly for our sellers.”

Despite the lack of consistency on the back end, Knock made the highest and cleanest offer on the property, said Hough. “The attractiveness to our seller was that there was no financing contingency, and Knock even waived the appraisal.”

The automated aspects of working with Offerpad didn’t faze Kellie Parten, an agent with HomeSmart Realty in Phoenix, who helped her clients buy a home from the company in May. “It was robotic, but in a positive way,” said Parten.

“You can tell that they’re a little bit of a machine, but I didn’t mind because they were very responsive and organized. I never had to ask for something twice.”

Although Parten wouldn’t hesitate to bring a buyer to an iBuyer home, selling to one is a different story. “Offerpad and Opendoor offers on a couple of properties I’ve listed seemed exciting at first, but after you factor in the concessions they request and the additional credits in lieu of repairs after inspections, the net is usually too low and the deals never came together,” she said. One iBuyer recently offered $750,000 on a home that Parten later sold to a traditional buyer for $900,000.

For these reasons, Parten is no longer worried about iBuyer competition for listings in her area.

“At first, I was nervous about the convenience they advertise, but there’s still a demand for the traditional sale. Even though [traditional] listing is less convenient, stressful, and everything else that the iBuyers sell against in their advertising, when a sale puts that much more money in your pocket, I find most sellers think it’s worth it.”

In fact, Parten encourages her sellers to check out iBuyer offers to underscore how much less they’ll net in the transaction, she said. “When sellers look at the commissions and fees on the socalled ‘easier alternative,’ they realize that there’s great value in what we do.”

Carolyn Schwaar is a contributing writer for Realtor® magazine and editor of Realtor® AE magazine. She can be reached at cschwaar@realtors.org. Reprinted from Realtor® Magazine, September-October 2018, with permission of the National Association of Realtors®.

Copyright 2018. All rights reserved.

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FEMA Urging Utah Residents to Prepare for Floods Just one inch of water in an average-sized home can cause more than $25,000 in damage.

By David Maurstad

T

his year’s wildfires carry a one-two punch for residents in Utah. Beyond the immediate destruction of land and property, wildfires dramatically alter the terrain, making it less able to absorb water. These conditions cause an increased risk of flooding during a storm, and as snow and ice melt in the spring months. Due to this increased risk, FEMA is urging residents of Utah—and across the U.S.—to protect their home and property from flood risk by purchasing or renewing their flood insurance policies.

Even light rain can lead to devastating flash flooding and mudflows in flood-after-fire environments. Impacted areas remain at an increased risk of flooding for several years after a wildfire.

Whether your clients live in a high-risk flood zone or not, flooding can be unpredictable. In fact, more than 20 percent of flood insurance claims are for properties in low to moderate-risk flood zones.

Floods are the most common and costly natural disaster in the U.S. Just one inch of water in an average-sized home can cause more than $25,000 in damage. And most homeowners and renters policies typically do not cover flood damage.

18 | Salt Lake Realtor ® | October 2018

Flood insurance isn’t just another monthly payment that comes along with owning or renting a home or property. It’s an investment in the well-being and resiliency of households, families, and communities. After a disaster, it also allows policyholders to recover quicker and more fully than their uninsured neighbors. FEMA’s National Flood Insurance Program (NFIP) is working to help protect individuals, businesses, and communities from financial hardship before flooding occurs.

The most important step your clients can take to protect the life they’ve built is to purchase flood insurance before a flood happens. Remember, most policies take 30 days to go into effect.

Talk to your clients about renewing or purchasing a flood insurance policy by calling their insurance agent or learning more at FloodSmart. gov. The NFIP Help Center can also field questions about flood insurance at 1-800-427-4661.

David Maurstad is the chief executive of the National Flood Insurance Program with the Federal Emergency Management Agency (FEMA) and Lee dePalo is the Regional Administrator for FEMA Region VIII.

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Why RPAC Fundraising Matters

By Matt Clewett

T

wo months ago, I gave an account on what happens after a candidate is elected to office.

I also discussed the advocacy process that takes place each and every day by Government Affairs Director Marcus Jessop and myself at the Salt Lake Board of Realtors®. In this month’s edition of “What is RPAC?” I will go into some detail about why fundraising matters and how contributions to your local Realtor® Political Action Committee are used to support the real estate profession as a whole.

As you have no doubt seen by now, fundraising for RPAC has been a crucial part of the mission of the Salt Lake Board of Realtors® this year. In the Education Department, we have had countless

20 | Salt Lake Realtor ® | October 2018

presentations to new member orientation classes, Code of Ethics classes, and we (the Government Affairs Committee) have even hosted a few classes ourselves with the purpose of educating our members about the political happenings in Salt Lake County as well as educating members about RPAC. During dues, we brought back our highly anticipated $5,000 Hawaii trip giveaway which was won by Paul Rudd (I know what you are thinking: it was not the actor).

For the first time ever we also put on sporadic drawings open to the entire membership that gave away prizes such as front row tickets to a PINK concert, free gas for a year, and a Las Vegas super

car experience. Lastly, we continued to host fun events such as the annual RPAC Golf Tournament, a World Cup watch party, and a plethora of RPAC Major Investor events.

A question you may be asking right about now is: why go through so much trouble, send us so many emails, and constantly ask for our money to support RPAC? The answer to that question is simple: we do it because it helps our membership.

Utah is quite unique compared to the rest of the country. We are privileged to live in a state where there is an inherent culture of supporting private property rights and real estate transactions.

The current governor of Utah was the President of the Utah Association of Realtors® and many other Utah elected officials are Realtors®. Quite simply put, when you support RPAC by either donating directly, entering a contest, or attending one of our events you are helping ensure that you are able to conduct your business unimpeded by government intervention and can rest easily knowing that many of the state’s elected officials understand the needs of individual Realtors® or are indeed Realtors® themselves.

Your donations don’t just assist in supporting Utah policy however. For every dollar you donate, $0.70 stays in Utah while $0.30 goes to the National Association of Realtors®. This helps the entire Realtor® community in every city and town from across the nation have their voce heard by our leaders in Washington, DC.

If you take away nothing else from this article remember this: your support matters. In fact, without it being a Realtor® would be synonymous with paying high taxes jumping through a million hoops just to do your job and build your business.

In next month’s final edition of “What is RPAC?” we will go through some of the key successes that can be attributed to RPAC at a local, statewide, and federal level. If you would like more information about how you can support your business by contributing to RPAC, please call or email me at (801) 542-8875 or matt@slrealtors.com.

Matt Clewett is government affairs assistant at the Salt Lake Board of Realtors®.

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When Emotions Run High in the Workplace Learn how to identify healthy and unhealthy emotional reactions to business stresses and personal situations.

By Lee Nelson

I

n “A League of Their Own,” Tom Hanks’ character, Jimmy Dugan, loudly told one of his professional female baseball players, “There’s no crying in baseball.” That could hold true for most workplaces—at least on the surface. Many people think showing emotion can affect their reputation negatively, especially if they’re caught doing it on the job.

But the reality is real estate professionals deal with emotions on a daily basis. Whether it be juggling sensitive clients or managing stressed agents, shedding a few tears is more commonplace than you may think.

A recent survey by Accountemps shows that 45 percent of workers admit to crying on the job.

About the same number of CFOs—44 percent— said shedding tears is acceptable as long as it’s not an everyday occasion. “Crying shouldn’t be a death sentence for anyone at work,” said Michael Steinitz, executive director of Accountemps. “It’s

22 | Salt Lake Realtor ® | October 2018

natural. But many people don’t want the crying to impede their performance or be criticized for their emotions.”

Handling Emotions as a Manager

As the broker or manager of your company, you want to get the most out of your agents and staff, but you also need to be sensitive to the different personalities you’re dealing with, Steinitz said. For instance, you want to deliver criticism without making your team feel deflated, he said.

The most effective way to create an emotionally healthy workplace is to instill a culture that breeds trust and genuine interactions. “This will go a long way in dealing with the emotions that inevitably come up in real estate,” Steinitz said.

Ideally, when a problem arises in an agent’s business or personal life, he or she should feel comfortable sharing with you the reason they’re

not at the top of their game or why they’re having trouble keeping their emotions in check. Steinitz also suggests having certain events outside of the office, such as lunches or work outings, to make agents feel more comfortable with one another.

If you do see someone crying at work, it’s alright to ask them what’s going on. “Ask them if they need time or if there is anything you or the company can provide for them,” Steinitz said.

When Crying Is Healthy— And When It’s Not

Barbara Wichman, national speaker and executive coach in Naperville, Ill., vividly remembers working in a human resources department a few years back, when about 20 people came into her office to tell her that a woman was crying at her desk. Wichman approached the woman and asked her if she’d like to go someplace and talk. She found out that the woman’s mother had just unexpectedly died.

Stereotypes persist when it comes to showing emotions. If a female is crying, people may surmise that she’s an emotional person. On the other end, when people see a man tear up, they may assume something must be terribly wrong with him. Put those assumptions aside, Wichman implored. Crying is a natural, healthy human reaction to many emotionally charged situations.

“Having emotions is being a human,” she added.

When an agent is having an emotional moment, Wichman suggested asking him or her out for a cup of coffee. Sit down and talk, even if it’s about a few light-hearted topics. Put forth a comfortable atmosphere to help them relax. Try to match their mood by expressing concern in a low-

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key tone, and validate their concerns. Wichman said that the worst thing you can ask is “What’s wrong with you?” It’s also important to respect the person’s need for space, she said.

However, if you have someone in your office who has longer-term issues, it’s best to recommend they get some assistance. If they are crying on a regular basis, and it’s disruptive to people around them, you have the right to say, “I think you need to get some help. We really care about you, but it is beyond what we can do to help you,” Wichman suggested.

Sometimes, the level of stress or the intensity of the situation is too great for a person. If one of your agents is leaving the office under heightened emotional conditions, make sure you tell them that you don’t want them to be so upset when they get in their car and drive, Wichman recommended. “That could lead to an even more serious situation.” Ask them to take a few moments to breathe outside before they go.

Calming Your Own Emotions When Wichman coaches people who are facing stressful situations, she tells them to put their phone or computer down, stand up, go outside, and walk around the building two or three times. Breathe the air, look at the sky and trees, and get yourself into nature.

“Real estate is a hard profession to be in. You are always fighting for the deal, fighting to close the deal. You have so many things you are up against, and tears may fall,” she said.

Reprinted from Realtor® Magazine Online, September 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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October 2018 | Salt Lake Realtor ® | 23

©Bits and Splits / Adobe Stock

Moments When Clients Don’t Want You to Text Communicating with your customers may be faster and simpler via text message, but there are certain times during the transaction when they need to hear your voice.

By Mandy Ellis

S

ending a text to a client might have more consequences than you think. Clear communication is the cornerstone of any relationship, and usually, the more detailed you can be in your message, the less chance there is for misunderstanding between you and your customer. So brief texts—which might inadvertently strike the wrong tone during a serious moment in a transaction—can easily lead to disgruntled clients and lost business.

“Texts can be misread and misunderstood because they’re to the point and can be taken out of context,” said Nicole Bunbury Sjowall, brokerowner at Bunbury & Associates, Realtors®, in Madison, Wis. Although texting may be good for providing quick updates to clients, she adds, it can come off as a cold and detached form of communication.

“We lose the communication and connection to our clients by using a tool that’s easy for us,” said Debbi Jacob, associate broker at Nothnagle, Realtors®, in Pittsford, N.Y. “Be sensitive to your client’s needs, and respect the fact that they need a

24 | Salt Lake Realtor ® | October 2018

personal touch.” When a phrase, abbreviation, or even an emoji can strain your client relationships, it’s critical to know the situations when it’s not appropriate to send a text.

When you’re first establishing a relationship. After an initial consultation with a prospect, a follow-up by text rather than a phone call or in-person meeting can downplay the emotional connection you made. Turning to texting this early in the introductory period shows a lack of individual attention and a disregard for that one-on-one connection.

“If you don’t maintain that good connection— which is with a phone call—you haven’t created a relationship that, in real estate, is more important than one transaction,” Jacob said. “They’ll say, ‘She made me feel like one of 500 because she only texts,’ or, ‘She won’t take my calls, but when I text she answers.’ What does that say? You’re not important enough to take a call.” Because the process of buying or selling can be fraught with Texting (continued on page 30)

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26 | Salt Lake Realtor ® | October 2018

REALTOR® Connections Bill Heiner • 2010 President of the SaltLake Board of Realtors® • Realtor® with Cannon & Company How long have you been an agent?

Since 1977 Advice for being a successful agent: Persistence, tenacity and resilience.

On being a professional: Always be on time, respond to listing agents’ requests for feedback and return calls and messages in a timely manner.

What has helped you grow in the business? Being involved on committees and networking at Board events. Getting to know agents and affiliates before you do a transaction goes a long way. This is a relationship business.

Editor’s Note: Salt Lake Realtor® magazine will begin to spotlight Realtors® who have served as past presidents of the Salt Lake Board of Realtors® and ask them what qualities and issues they feel are important.

On the Move Exit Realty welcomes the following Realtors® to its office: Creighton Hart, Gerald Sayles, Greg King, John March, Julie Colledge, Sarah Billingsley, Stacy Fife, Tracy Brown, Travis Bryant, and Tyler Wissler.

According to a study by Smart Asset, the 10 most affordable places to live in Utah are: 1. Roy 2. Harrisville 3.

Clinton 4. Enoch 5. Price 6. Stansbury Park 7. North Ogden 8. Plain City 9.

Hyrum 10. Kearns. In Roy, the average annual mortgage payment is $7,236 with a median income of $64,349. The rankings took into account annual property taxes, homeowner’s insurance, average annual mortgage payment, and median income.

Image licensed by Ingram Image

Celebrating a 45-Year Career in Real Estate

Darlene Dipo, a Realtor® with Windermere Real Estate Utah, was recently honored for her 45-year career in real estate. Darlene received her real estate license in 1972 and went on to start her own brokerage.

She is a former director of the Salt Lake Board of Realtors and the 2009 Broker of the Year award recipient. In honor of Darlene, Windermere started the Darlene Dipo Maraki Award Scholarship, a $5,000 education endowment to be awarded annually to new Windermere agents.

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 ® | October 2018

Northshore Fireplace surveyed 2,000 people to learn more about how people envision their dream homes in 2018 and to see if millennial’s are finally ready to start buying homes. Here’s what they found: On average, the typical American dream home would cost $1.3 million, have 7.5 rooms with an average square footage of 2,195 sq. ft. Twenty percent of millennials get anxiety at the thought of owning a home, however 60 percent plan to own a home within the next five years. While two-thirds of millennials don’t have anything saved for retirement, they would be willing to spend on average $1.5 million for their dream home. Sixty-four percent of Americans believe they will be able to obtain their dream home within their lifetime.

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Texting (continued from page 25) emotions, a text could lead to tension before the agent-client relationship has a chance to grow.

When your client’s offer is rejected.

Sjowall believes texting is never the appropriate communication tool to break bad news. A rejected offer is “harsh news for clients,” she said, “A further explanation on why it wasn’t accepted helps them move forward while giving you the opportunity to discuss next steps.” Your clients need to hear in your voice that you share their frustration—something a text can’t achieve. Then a conversation is necessary about a possible counteroffer and next steps, Sjowall said.

“Give them the respect of a phone call versus a text because it’s something they felt good enough to make an offer on,” said Anthony Gibson, ABR, owner of Austin Properties Group at Keller Williams Realty in Austin, Texas.

When your client’s contract is accepted. This is a much happier moment in the transaction—but one that still requires more recognition than a text. Winning a home means the hard work you and your client put in together paid off, and hearing the excitement in your voice is paramount to the customer experience.

Texting during the tense waiting period for a response to your client’s offer can also pose hazards, which Lindsay Katz, a sales associate with Redfin in Los Angeles, learned the hard way.

“I was texting a client, and he said, ‘Let me know if you hear anything.’ Then, without seeing his text, I put my phone down since I was with other clients. I later texted him, ‘You got it,’ meaning I’ll tell you as soon as I hear. He wrote, ‘I can’t believe we got it; I’m so excited!’ This was an eye-opener.

He thought he got the house, and I had to call to say he didn’t.”

When you need to relay important feedback to your client. “If there are issues like inspection, financials, closing, or title, you need to call the client first,” said Joey Tucker, GRI, associate broker at Coldwell Banker Upchurch Realty in Athens, Ga. “The professional way is to talk by phone to relay everything and make sure they understand the issues.”

Katz adds that during these types of conversations, clients may have questions they would rather not ask in a back-and-forth text exchange. And because tone can be lost in text, making it difficult to get to the heart of what the client wants, speaking by phone or in person strengthens your relationship while ensuring your client’s preferences are recognized.

When you need to save face after a bad text. If you texted something your client

30 | Salt Lake Realtor ® | October 2018

misunderstood—or worse, took offense to—pick up the phone and apologize. “Say, ‘I know this text came off the wrong way, and this is what I actually meant,’” Tucker said. “If [it’s a particularly] bad situation, have your broker call or mail a personal note apologizing.”

Gibson said you can also sit down with clients to address and validate their concerns. By listening to them and confirming that you won’t make the same mistake again, you can keep misconstrued words from sinking a sale.

Mandy Ellis is an Austin, Texas-based freelance writer focusing on real estate, food, travel, and health.

Reprinted from Realtor® Magazine Online, July 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.

Statement of Ownership, Management and Circulation 1. Location of known Office of Publication: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 2. Location of known Headquarters of General Business offices of the Publisher: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 3. Publisher: Mills Publishing, Inc., 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 4. Editor: Dave Anderton, Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 5. Owner: Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 6. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None.

7. Extent and nature of circulation: Average No. Copies Each Issue During Preceding 12 Months

Copies of Single Issue Published Nearest to Filing Date

8,380

8,500

1. Mailed Outside-County Paid Subscriptions

1,914

1,919

2. Mailed In-County Paid Subscriptions

6,182

6,112

3. Paid Distribution Outside the Mails, including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS

0

0

4. Paid Distribution by Other Classes of Mail

0

0

C. Total Paid Distribution

8,096

8,031

D. Free or Nominal Rate Distribution

0

0

1. Free or Nominal Rate Outside-County Copies

0

0

2. Free or Nominal Rate In-County Copies

0

0

3. Free or Nominal Rate Copies Mailed at Other Classes through the USPS

50

50

4. Free or Nominal Rate Distribution Outside the Mail

125

125

E. Total Free or Nominal Rate Distribution

175

175

F. Total Distribution

8,271

8,206

G. Copies Not Distributed

109

294

H. TOTAL

8,380

8,500

I. Percent Paid

97%

97%

A. Total Numbers of Copies Printed B. Paid Circulation

8. I certify that all statements above are correct and complete.

Dan Miller, President of Mills Publishing, Inc.

UTAH

POWER FU L PERFOR MAN C E

MY WHY ?

21

OFFICES

342 AGENTS

18.5

*

AVERAGE RESIDENTIAL TRANSACTION SIDES PER AGENT*

$

159,787

*

AVERAGE COMMISSION EARNINGS PER AGENT

I believe symbols are powerful. Take the RE/MAX balloon.

It represents ambition that’s in constant motion like a freight train. And when people see it, they see me.

It tells them I go nonstop. Because I do.

Why RE/MAX? The brand is my why.

Find your why at joinremax.com/southwest

*As of year-end 2017. ©2018 RE/MAX, LLC. All rights reserved. Each office independently owned and operated. 18_300466

6,340

*

TOTAL RESIDENTIAL TRANSACTION SIDES

Congratulations to Darlene Dipo, the recipient of the 2018 Darlene Dipo Meraki Award, an award named in her honor for demonstrating mastery, love, and passion for our profession.

meraki THE DARLENE DIPO

AWARD 2018

A $5,000 endowment will be awarded in Darlene’s name to be used as a resource for Windermere agents.

Watch a video highlighting Darlene’s career that started in 1972 and is still going strong at winutah.com/meraki

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

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