REALTOR® Review Holiday 2015 Issue

realtorreview 速

A publication of the Raleigh Regional Association of REALTORS速 I holiday 2015

realtor ®

holiday 2015, Vol. 7, No. 2

features

6

project angel treee 2015

review

congratulations 2015 award 13 rRAR winners!

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3 Things Agents Should Always Remember About Bad Online Reviews The Internet is becoming a bastion of anger and misplaced assessments of business

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NAR Approves $12M/Yr zipLogix Deal to Offer Free Online Transaction Management to All ® Realtors Proposal passes after vigorous debate

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12 thank-you notes Guaranteed to Generate Real Estate Leads A handwritten card still packs the biggest punch

Raleigh Regional Association of REALTORS® 111 Realtors Way, Cary, N.C. 27513 Phone: 919-654-5400; Fax: 919-654-5401 www.rrar.com RRAR Board Officers Harriette Doggett: President Mark Parker: President-elect Mollie Owen: Past President Tom Gongaware: Secretary/Treasurer Steina DeAndrade: President, REALTOR® Foundation of the Triangle 2015 RRAR DIRECTORS Dianna Braun Gina Miller Eddie Brown Player Murray Anne Cain Steven Norris Brenda Carroll Mindy Oberhardt Frank DeRonja Teresa Pitt Diane Donnelly Zach Shabot Bill Fletcher Renee Smith Van Fletcher Tom E. Smith Lewis Grubbs Margaret Sophie Linda Kolarov Glenn Weeks Tim McBrayer Leslie Williams realtor® foundation of the triangle OFFICERS President: Steina DeAndrade President-elect: Jose Serrano Secretary/Treasurer: Gina Miller REALTOR® Foundation Service Committee Chair: Harrison Tulloss NCAR Regional Vice Presidents Linda Trevor and Jose Serrano NAR Directors Linda Trevor and Asa Fleming triangle realtors® leadership academy dean Scott Hoyt REALTOR® Review staff: Trish Gregory Rand, editor, trishr@rrar.com Sandee Washington, managing editor, sandeew@rrar.com Shelly Beck, graphic designer, sbdesign@cox.net

departments 3

President’s Message

4

REALTOR® Foundation Service Committee

5

10 Member Services 18 Local Market Update 21 RRAR Events

Member Spotlight

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Members are cautioned that the inclusion of a name, specific commercial product or service in an article, or in this publication does not imply endorsement by the Raleigh Regional Association of REALTORS®. All advertisers in this publication wholly support the Fair Housing Act and fully promote equal opportunity housing.

Copyright 2015 by the Raleigh Regional Association of REALTORS®.

All rights reserved.

rrar.com

Preliminary Identity Colors

For editorial contributions and ad inquiries, please contact Trish Gregory Rand at trishr@rrar or (919) 654-5400.

holiday 2015

You Are Cordially Invited to Join

Mark Parker

on the Red Carpet at the 92nd Annual Raleigh Regional Association of REALTORS速

Inaugural Ball Friday, January 8th Pre-Party Begins at 6 pm Brier Creek Country Club 9400 Club Hill Drive, Raleigh

$50 Per Person

Black Tie Optional

Please RSVP by January 2nd as seating is limited.

To Register Online, please visit RRAR.com To reserve a table for 8 or 10, please contact Vicki Buckholz at 919-654-5400 or vickib@rrar.com Host Sponsor: REALTOR Review 速

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president’s message

Past President… actually sounds pretty good!

However, several folks have asked me ‘aren’t you glad your year’s about over’ Harriette H. Doggett and while I can say ‘yes’ in answer to that question, it is with mixed emotions that I do so, because you see, I’ve really enjoyed my year as President.

Seems like it was almost yesterday that we were at my Inaugural and how excited I was to be looking forward to this year and now I find myself looking back on my year and reflecting on how it was terrific. We’ve accomplished a lot, but mind you, it wasn’t me doing those things, it was a team effort!

My Executive Committee worked tirelessly on many projects as did the Finance Committee, the Bylaws Committee, the Government Affairs Committee and the RPAC Committee. My gratitude goes to each member of those committees for all their efforts, countless volunteer hours given and dedication to our Association. And we’ve had fun doing most of the things we’ve accomplished. I think back to our “Dancing with the R’s” event we had in the spring and how successful that was for RPAC. And we realized that we really do have some ‘talented’ REALTORS® in our Association. While I can’t necessarily say that the complete review and rewrite of our Bylaws and Policies was necessarily fun, we

did enjoy the challenges presented by such an enormous task.

We have so very many avenues of involvement here at our Association including the Leadership Academy, all of our Councils and Committees and our REALTOR® Foundation of the Wake County that I share my heartfelt gratitude and thanks to all our REALTOR® volunteers. Special thanks to my Executive Committee and my Board of Directors. We’ve had such a good year and all have participated in the decision making process for the betterment of our Association. I thank each of them for their service.

Also, I am very grateful to our staff. We are so very blessed to have such dedicated folks at our Association. They constantly work behind the scenes to make sure that all of our meetings, events and the business of our association happens each and every day without us having to worry about whether something is going to get done.

Things just happen and we have our dedicated staff, headed by our CEO See president’s message on page 4 REALTOR Review ®

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MISSION STATEMENT The Raleigh Regional Association of REALTORS®, the area’s voice of real estate, promotes the highest ethical and professional standards and cooperation among its members; provides products, programs and services to meet the evolving needs of the real estate industry and consumers; and serves as a leading advocate of private property rights and community involvement.

VISION STATEMENT “Anticipating and meeting the opportunities and challenges of our industry.”

Council & Committee Chairs Communications & Public Relations Chair – Laurie Donofrio Women’s Council of REALTORS® Chair – Steven Norris Triangle International Council of REALTORS® Chair – Grayson Hodge REALTOR® Foundation Service Committee Chair – Harrison Tulloss Governmental Affairs Committee Chair – Margaret Sophie Diversity Committee – Chair – Leslie Williams The REALTOR® Foundation of the Triangle President – Steina DeAndrade Top Producers Council Co-Chairs – Brendan Carroll and Gracie Goins Property Management Council Chair – Richard Millender Young Professionals Network – Co-Chairs – Ginger Vereen and Shruti Desai Small Brokers Council Chair – Ken Smith RRAR STAFF DIRECTORY Main Office (919) 654-5400 Fax (919) 654-5401 www.rrar.com RRAR Company Store, (919) 654-7253 Chief Executive Officer Tessa Hultz, Ext.1022, tessah@rrar.com Association Services Director Betsy Ramsey, Ext. 1004, betsyr@rrar.com Association Services Associate Vicki Buckholtz, Ext. 1027, vickib@rrar.com Communications Director Trish Gregory Rand, Ext. 1026, trishr@rrar.com Communications Associate Sandee Washington, Ext. 1023, sandeew@rrar.com Education Director Cara Mottershead, Ext. 1006, caram@rrar.com Education Associate Sonya Yankoglu, Ext. 1024, sonyay@rrar.com Executive Assistant Brendan Bailey, brendanb@rrar.com Facilities Manager Mary Rachel Bowling, Ext. 1016, maryrachelb@rrar.com Governmental Affairs Director Christopher MacDonald, Ext. 1025,

christopherm@rrar.com Information Associate Shelia Clark, Ext. 1001, sheliac@rrar.com Store Manager Yukari Powers, Ext. 1028, yukarip@rrar.com TMLS STAFF DIRECTORY Vice President of Operations Rachel Wiest, Ext. 1019, rachelw@trianglemls.com Communications/Data Asset Manager Christy New, Ext. 1008, christyn@trianglemls.com Compliance Director Letitia Pennington, Ext. 1014, letitiap@trianglemls.com Compliance Associate Dontez Ward, Ext. 1020, dontezw@trianglemls.com Data Distribution Director Carol Hamrick, Ext. 1007, carolh@trianglemls.com Membership Associate Kristina Faison, Ext. 1005, kristinaf@trianglemls.com MLS Systems Director Kathy Matheson, Ext. 1012, kathym@trianglemls.com MLS Technical Support Associate Luke Bollenbaugh, Ext. 1009, lukeb@trianglemls.com MLS/Realist Support Associate Jennifer Horton, Ext. 1010, jenniferh@trianglemls.com Technical Operations Director Matt Nagy, Ext. 1017, mattn@trianglemls.com Training Development Manager Allan Nielsen, Ext. 1003, allann@trianglemls.com CTC/MLS Training Manager Lynne Brid, Ext. 1015, lynneb@trianglemls.com RRAR/TMLS MEMBERSHIP/ FINANCE DEPARTMENT Membership/Finance Director Randi Clodfelter, Ext. 1021, randic@trianglemls.com Finance Associate Magen Ferrell, Ext. 1018, Magenf@trianglemls.com Finance Associate Jill Pressley, Ext. 1011, Jillp@rrar.com Membership Associate Kelly Hunsucker, Ext. 1013, kellyh@trianglemls.com Christy Robertson, Ext. 1037, christyr@rrar.com

president’s message

continued from page 3

Tessa Hultz, to thank for all that they do each and every day and do so with a smile on their faces!

It’s been my honor and privilege to have served our Association as President in 2015. My inaugural speech was entitled “Proud to be a REALTOR®” and that’s been my theme throughout this year and I can truly say that based upon the actions of those that I’ve been involved with this past year at our Association and all that’s been accomplished by our team, I truly am “Proud to be a REALTOR®” and a part of the greatest Association around!

Brenda Carroll, 2014 recipient of the President’s Award

Love the Angel Tree Project featured on pages 5 and 6 of this issue?

Want to join your fellow REALTORS in giving back to others?

Join the REALTOR Foundation Service Committee! ®

®

By Vicki Buckholtz

The REALTOR® Foundation Service Committee (RFSC) was formerly known as the Community Service Committee. The RFSC is made up of nearly 100 service-minded RRAR volunteers who act as the “boots on the ground” for the REALTOR® Foundation of Wake County (RFOWC). Our goal is to help the Foundation fulfill its mission of “Improving Lives, Improving Communities”.

We work on a wide variety of outreach efforts all year long, assisting children, families, REALTOR Review ®

seniors, veterans and more. In as little as a couple of hours, you can make a big difference!

Make new friends working elbow-to-elbow with your peers, all while enhancing the image of REALTORS® in our area and helping those in need. We meet on the third Tuesday of each month from 11:30 AM-1:00 PM at RRAR, 111 Realtors Way, Cary. We’d love to welcome you to our next meeting on January 19th. To attend or for more information, please email Vicki Buckholz at vickib@rrar.com. l 4 l holiday 2015

member spotlight

I am a REALTOR

®

An interview with RRAR member Laurie Deatherage

by Trish Rand

REALTORS® are always working behind the scenes to help the community. RRAR members collected hundreds of gifts again this holiday season through Project Angel Tree. Whether it is a small or large donation of time or money RRAR members stand ready to help the community. One such member, Laurie Deatherage deserves the spotlight for devoting a tremendous amount of time and effort organizing a fundraiser to fight cancer.

This November, Deatherage led a group of volunteers in planning and implementing the Red Sword Guild Soiree Chefs & Champagne at the recently renovated historic 214 Martin Street and Market Hall in downtown Raleigh. The aim of the soiree was to raise awareness and support for cancer research in the Triangle. The final numbers are still being tallied but at print, more than $50,000 had been raised for the American Cancer Society through the event. Red Sword Guild events, including “Raleigh Roundup” gala, raised nearly $3 million since 1996.

Chefs & Champagne featured: • Chefs for a Cure cuisine featuring top dishes from local chefs and “Best Dish” competition • Live music from Bad Daddies • Champagne and cocktails • Silent Auction • WRAL Mix 101.5 Morning Show Stars Gene & Julie as emcees.

Congratulation to Deatherage for a job well done!

To hear more about our members efforts in the community visit our youtube (https://www.youtube. com/user/RaleighRealtors/videos) page to view our I’m A REALTOR® Videos.

REALTOR Review ®

About The Red Sword Guild The Red Sword Guild is a volunteer organization established in 1996 to help find a cure for cancer through local fundraising and service. Red Sword Guild members work year-round to present the annual events benefiting the American Cancer Society. Raleigh Roundup brings some of the area’s largest corporate and medical organizations together with the community to raise funds and support for cancer research, education, and patient services in our region. The Red Sword Guild directly contributes to the nearly $24 million in research grants effective in North Carolina through the American Cancer Society. For more information about the Red Sword Guild and how to join our efforts, visit redswordguild.org.

About the American Cancer Society The American Cancer Society is a global grassroots force of 2.5 million volunteers saving lives and fighting for every birthday threatened by every cancer in every community. As the largest voluntary health organization, the Society’s efforts have contributed to a 20 percent decline in cancer death rates in the U.S. since 1991, and a 50 percent drop in smoking rates. Thanks in part to our progress, 14.5 million Americans who have had cancer and countless more who have avoided it will celebrate more birthdays this year. We are determined to finish the fight against cancer. We’re finding cures as the nation’s largest private, not-for-profit investor in cancer research, ensuring people facing cancer have the help they need and continuing the fight for access to quality health care, lifesaving screenings, clean air, and more.

For more information, to get help, or to join the fight, call us anytime, day or night, at 1-800-227-2345 or visit cancer.org. l 5 l

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project angel tree 2015

The REALTOR® Foundation Service Committee is partnering with Friends of Wake County Guardian ad Litem to sponsor the program. For the 15th year and in the spirit of the season, RRAR members help to provide for children in need.

“ REALTOR Review ®

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The REALTORS® adopted more than 800 “angels” this year (which represents the wish lists of 232 children). REALTORS® have held their own Project Angel Tree for many years, joyously adopting and fulfilling the holiday wishes of thousands of Wake County’s at risk children.

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—RRAR CEO Tessa Hultz

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3 Things Agents Should Always Remember About Bad Online Reviews The Internet is becoming a bastion of anger and misplaced assessments of business A few years ago on a trip into the Grand Canyon, a 21-year-old guest asked why the company I work for didn’t have any YouTube videos about its trips.

“That’s the first thing I look for, so I wasn’t sure we were going to book with you. But then I went to Yelp…”

Reviews help consumers judge quality As Teke Wiggin pointed out in this article, more consumers — especially millennials — use the Internet’s array of rating websites and apps to judge the quality of everything from India pale ales (Untapped) to Cohen Brothers’ films (rottentomatoes.com).

The latter has become a powerful influencer in the $40 billion dollar global movie industry.

How long will it be before a website has similar pull on the real estate industry? (Zillow doesn’t count.)

Rankmyagent.com is working toward that goal.

Reach150 helps agents use testimonials as a platform for proactive marketing campaigns. RealSatisfied does the same and recently announced a partnership with Spacio, a popular open-house

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automation application.

Realtor.com will begin curating customer feedback into agent profiles from several online sources.

The upshot for realtor.com is that it will have that much more content to help consumers make real estate decisions. Agents do stand to benefit, however.

Provided the reviews are positive.

Reach150 and RealSatisfied are both driven by the desire to share positive feedback with potential customers, as any business should.

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by Craig C. Rowe

The Internet is a place where meritless rage can rise to the top of a feedback forum like foam from a fresh tap.

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However, our businesses live on the Internet, a place where meritless rage can rise to the top of a feedback forum like foam from a fresh tap.

How should agents handle it?

Is it fair to the consumer to delete it?

To what extent should real estate agents sacrifice transparency for the benefit of marketing?

Many hate-filled rants about customer service are so egregiously unwarranted that the only response is to delete it. Or laugh it off and move on.

Is it fair to consumers to delete negative feedback?

The Internet holds petabytes of proof that many people are well beyond rational discussion.

There are cases, though, where a negative review could very much be truthful and well-documented. We all screw up sometimes.

Bad reviews are often a terrific opportunity to earn new customers — or at least give the disenchanted a reason to reconsider.

It’s important to remember that you’ll never lose by being honest, especially when you’re wrong.

When the fish is already in the cooler, you have no choice but to tote it back to the dock, slap it on the cleaning table, and let the innards fall where they may.

If you missed an important email that delayed a closing and the seller shared that in a fair, cogent online review, an agent’s best course of action is to own it.

“Yes, it was my fault your closing was delayed, and your frustration is justified. Please know this is the only time this has happened and

I’ve installed multiple safeguards to prevent it from happening again.

If you have further concerns and feedback about my services, I’m interested in hearing it. It will make be a better agent. Thank you.”

3 things to remember when faced with a bad review When faced with a bad review from a customer, remember these three things: 1. The Internet loves honesty.

This is why Snopes.com is so popular. The faster a silly Facebook news meme can be ripped asunder by the truth, the sooner we can get back to reminding our relatives that we’ve already seen it on Imgur.

Point is, be upfront and honest.

Nothing shortens the life span of a bad review faster than an honest response.

It’s best to not base your book of business off of what people say about you online.

2. You’ll never win a fight with the Internet.

Again, the Internet knows who’s being honest. If a ticked-off customer is ranting merely for the sake of being vindictive, your supporters will call him or her out.

However, if you react emotionally to a bad review, you’ll land like a grape in a wine press. Don’t respond right away.

Let the insults and untruths sit a day. Gather your thoughts. Consider typing a response in a separate email to express your anger, then deleting it.

3. Defend your brand.

When the situation does arise REALTOR Review ®

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for you to prove it really was the customer’s fault, do so factually and directly.

Have your facts straight when you respond, and request a response to your facts. This more often than not reveals the reviewer’s opinion as unmitigated conjecture.

Far be it from me to advise against interjecting some witty sarcasm, but this takes a delicate hand. Use too much, and you give doubters a reason to judge.

Don’t base your book of business on reviews Despite all your efforts to put on a good Internet face, there will always be those who fear overly positive reviews are somehow nefarious or bloated.

I think it’s best to not base your book of business off of what people say about you online. Prove your mettle in the marketplace. Then let it tell your story organically.

Use your reviews as support for your services, not its platform.

Takeaways: • Far too many business owners over-react to negative feedback.

Unless handled terribly, a few bad reviews have never led to a company collapsing.

• More websites are emerging to rank and review real estate agents against one another.

Some sites may favor advertisers.

• The best policy in all cases of negative public criticism is honesty.

member services

Wake County Unveils

Transit Plan

by Christopher MacDonald

On Tuesday, December 8th Wake County officials unveiled a $2.3 billion ten year transit plan at the Raleigh Convention Center. Wake County featured model trains, bus mock-ups, videos and maps at the open-house from 4-8pm yesterday.

The plan incorporates both bus rapid transit (BRT) and a 37mile commuter rail (CRT) which will travel from east Garner all the way up to Durham Research Triangle Park to connect to the future Durham light-rail project.

The Wake Transit Plan will satisfy both the demand for frequent, day-long bus service in Raleigh’s fastgrowing urban center and for regional connectivity in outlying towns which have little to no transit infrastructure. All 12 Wake County Municipalities will have connectivity and service.

The plan quadruples the miles covered by existing frequent bus services (buses that arrive every 15 minutes) in the most densely populated parts of Raleigh and Cary from the current 17 miles to 83 miles over a 10-year period.

The cost is estimated at $2.3 billion over the first 10 years. This includes $1.6 billion for capital investments (new buses and train cars, shelters REALTOR Review ®

and other infrastructure), with the remainder in operating expenses and fund balance allocations.

Funding will come from: • A half-cent sales tax increase, which must be voter approved • Increased vehicle registration fees of $10 per car; • Existing vehicle rental tax revenues • Federal and state contributions • Existing local revenues that fund current transit services; and • Bus and train fares.

Next Steps: 1. Three governing boards need to adopt the plan: Wake County Board of Commissioners, GoTriangle Board of Trustees and Capital Area Metropolitan Planning Organization (CAMPO) Executive Committee. Expected in spring of 2016.

2. Wake County Commissioners also will need to take necessary actions to place the 1/2 cent sales tax authorization on the November 2016, ballot for voter approval. l 10 l holiday 2015

12 thank-you notes

Guaranteed to Generate Real Estate Leads In a world blurred by emails, texts and hasty voice mails, a handwritten card still packs the biggest punch

by Richard and Beth Witt

One of my very first and most wonderful trainers was Tom Hopkins. I found him at a seminar (35 years ago) and instantly felt blessed to have done so. I learned many valuable things from Tom, but the one thing that resulted in my generating more business than anything else he taught was that handwritten thank-you card. In fact, Tom even wrote “thank you” on all his business cards.

thanking you for listing your home with them, or someone takes the time to handwrite you a note in a lovely thank-you card and mails it to you. Which one makes you feel special?

I love thank-you notes so much that we at Re/Max Wittney Estates provide them free

of charge for all of our agents with the samples that follow (in case they don’t know what to write), and we also pay for the postage. The return on our investment is great, and our agents are sold on sending thank-you cards to as many people as they can.

k n a h T you

I generated more business from sending thank-you cards (my goal was 10 cards a day) than any other activity. I could write a book on the business I generated from these cards… for now I will just encourage everyone to start sending these muchloved and very appreciated notes to anyone and everyone. I promise that doing so will generate business.

Just think about this a second: Someone sends you an email

See 12 Thank you notes on page 12 REALTOR Review ®

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12 thank you notes

you should find need to employ a professional real estate firm, I would appreciate the opportunity to show you all the excellent benefits we have to offer.

continued from page 11

Happy Anniversary — It’s with great pleasure that we wish you a happy anniversary. It was just one year ago you let us serve you in finding your new home. We are proud to have you as one of our satisfied clients and hope you will enjoy many happy years in your home.

12 “Thank-You notes” guaranteed to generate leads Thank You After Giving Listing Presentation — Thank you… for giving me the opportunity to discuss with you the benefits of allowing me and my company to service your real estate needs. We believe that quality blended with excellent service is the foundation for a successful business relationship.

Thank You for the Listing — Now we’ll go to work… in serving you to get happily moved. You can be assured that my company and I will do everything possible to consummate a successful sale for you.

Thank You After Not Getting the Listing — Thank you… for taking the time to analyze my service. I regret being unable at this time to prove to you the benefits we have to offer. We keep constantly informed of new developments and changes so I will keep in touch with the hope that in the years ahead, we will be able to do business.

Thank You to Buyer After Showing — It was my pleasure… meeting you and having the opportunity to show you homes.

You can be assured that I will do my best to help you find the perfect home and get you happily settled.

Thank You After Purchase — Nothing excites me more… than helping someone find their new home. I am very happy for you and feel confident we will have no problem getting you happily settled.

Please call me if any questions arise.

Buyer Thank You After Close of Escrow — It’s been my pleasure… helping you get settled in your new home. We are sure you will enjoy many happy years in our community, and hope you will call me if I can be of service to you or any of your friends For Sale By Owner Thank You — Thank you… for showing me your lovely home. I sincerely wish you the best of luck in selling it. If REALTOR Review ®

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Referral Thank You — Thank you… for referring the Smiths to me. You can be assured that I will do my best to help them and justify your confidence in me.

New On the Market Card — Guess what your neighbor just did? They’ve selected us to sell their home. If you have a friend or relative looking for a nice home in this area, please give me a call.

Thank You to Anyone Who gives You Service — Thank you…

It is gratifying to meet someone dedicated to doing a good job. Your efforts are sincerely appreciated. If my company or I can serve you in any way, please don’t hesitate to call.

Telephone Contact — Thank you… for talking with me on the telephone. In today’s business world, time is precious. You can rest assured that I will always be respectful of the time you invest as we discuss the possibility of a mutually beneficial business opportunity.

With each card we suggest that you include your business card… with “Thank You” handwritten on it.

Happy Day! The Witts are broker/owners of Re/Max Whittney Estates in Long Island, New York.

s n o i t a l u Winners! ratAward Co2015ngRRAR

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NAR Approves $12 Million a Year zipLogix Deal to Offer Free Online Transaction Management to All Realtors ®

Proposal passes after vigorous debate

by Andrea V. Brambila

SAN DIEGO — After vigorous debate, the board of directors of the National Association of Realtors® approved a proposal Monday to provide the trade group’s 1 million-plus members transaction management software from Realtor®owned firm zipLogix at no cost to members.

NAR’s three-year agreement with zipLogix charges the trade group $10 per member for the first two

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years and increases the rate by no more than the increase in the federal Consumer Price Index in the third year, according to NAR CEO Dale Stinton.

The deal is estimated to cost between $11 million and $12 million per year from NAR’s reserves. NAR’s membership count stood at just under 1.17 million at the end of October.

Starting in the first quarter, agents and brokers will have free access to the firm’s zipForm Plus software, transaction forms specific to their area, document storage through zipVault, and zipLogix’ transaction management system, zipTMS (formerly known as relay).

ZipLogix is a joint venture between the National Association of Realtors® and California Association of Realtors® subsidiary Real Estate Business Services Inc. (REBS). As of the end of 2013, NAR owned an approximately 30 percent interest in zipLogix, carrying a value of $4 million.

“The core root reason that we’re taking this direction is to keep our members at the center of the transDale Stinton action,” Stinton said at NAR’s annual conference last week.

“The Internet is the world of permanent fighting. You never win. You just temporarily win a battle and go on to the next one.

The transaction space — there’s no question in anyone’s mind that that’s where the next battle will be fought,” he added.

Giving Realtors® both forms and a transaction platform will allow them to have an electronic contract to close in one place and provide direct value to their clients on their behalf, Stinton said.

“We think this is going to be a tremendous recruiting tool,” he added. “We think out of those million licensees out there that aren’t members, we’re going to be getting some of them back.”

Debate: the cons The proposal was approved by a vote of 455 to 217, but not until after a spirited debate ensued among board members. Several dissenting members — though not all — were from Florida, where the state association has its own forms company, Form Simplicity.

Budge Huskey, a NAR director from the Orlando Regional Realtor® Association and president and CEO of Coldwell Banker Real Estate, spoke against the proposal. Most Realtors® seem to be satisfied with their transaction software provider, and zipLogix already has deep penetration, he said.

service…we’re going to have to pay to contribute to our competitor,” he added.

“This is a space which is currently being served adequately though other means. It seems to be a solution in search of a problem,” Huskey said.

Stinton told state association executives yesterday the trade group hopes that state associations can

“Quite frankly, the comments I get is ‘Isn’t this five years too late?’

It seems we’re spending money we don’t have…on people who don’t do business.”

According to Stinton, some 600,000 Realtors® currently use zipLogix’ transaction forms software, and NAR expects to add 100,000 more to that figure with this deal.

One director noted that his own 9,000-member association currently pays $11 per member and thought NAR should be able to do better.

“I see it as a guarantee of a dues increase in the near future and a lack of competition in the forms area,” he said.

Another director said his biggest biggest concern was selling the product as “free” when it’s not free.

NAR’s agreement with zipLogix does not include the broker version of zipForm Plus, zipForm Mobile, zipFormMLSConnect, or e-signatures from zipLogix Digital Ink or DocuSign (a company in which NAR has invested).

“Any member that gets this free service is going to have to pay an upgrade for e-signature, for mobile,” he said.

“The states that are providing these forms already as a profit REALTOR Review ®

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When a director asked how much zipLogix’ mobile and e-signature solutions would cost, zipLogix President and CEO Joel Singer said, “We’ve been advised by counsel not to discuss prices.”

See NAR Approves $12M on page 16

Takeaways: • The board of directors of the National Association of Realtors® approved a proposal to provide the trade group’s 1 million-plus members transaction management software from Realtor®owned firm zipLogix at no cost to members.

• NAR’s three-year agreement with zipLogix charges the trade group $10 per member for the first two years and increases the rate by no more than the increase in the federal Consumer Price Index in the third year, according to NAR CEO Dale Stinton. The deal is estimated to cost between $11 million and $12 million per year from NAR’s reserves.

• Some board members who weighed in said this was a waste of association resources; others said it was a valuable step for the industry to take.

continued from page 15

cover the cost of the mobile and e-signature products using savings from the deal.

Matt Farrell, a NAR director from the Chicago Association of Realtors®, said the transaction management startup Move Inc. recently purchased, Reesio, was a superior product even though zipLogix had had many more years to develop.

“My concern is we’re going to put our money in the last horse in the race,” he said.

Another NAR director from Florida, Summer Greene, said the deal did not “pass the smell test” for her.

“State associations have provided superior solutions. Nothing is free,” she said.

“Zillow just bought dotloop, so is this a kneejerk reaction [to that]?

I really don’t know what y’all are thinking.”

Debate: the pros But several Realtors® spoke up in favor of a response to Zillow’s acquisition to dotloop, some of them members of the California Association of Realtors®, which partially owns zipLogix.

“Realtor.com years ago, because of our hesitancy, allowed competitors like Zillow and Trulia to gain a foothold,” said John Wong, a NAR director from San Francisco.

A director from Tennessee spoke in favor of the proposal, noting that “we beat ourselves up for being late to the game” and that “maybe we ought to look forward.”

Ted Loring, a NAR director from

California’s Humboldt Association of Realtors®, called the proposal “brilliant.”

“Any director that’s been around for awhile remembers the competition for the search space. It is brutal.

What’s just starting is the competition for the transaction space. And NAR is promising to move in a timely manner there,” he said.

Zillow purchased dotloop not to make agents more efficient, but to acquire their data, Loring added.

“I don’t want them to have that data. I want Realtor® data to remain in Realtor® control and this is the best possible move to make that happen,” he said.

“

“The listings battle has shifted to the transaction,” Stinton added. “We all have to be moving forward in the same direction or they’re going to get us.”

NAR is prepared to fund the zipLogix offering “in perpetuity” from NAR’s reserves, Stinton said, though the current agreement with zipLogix is for three years.

The trade group hopes to create “one, Realtor®-friendly platform” by integrating with other initiatives under the Realtor® umbrella, possibly including realtor.com, Upstream, Advanced Multilist Platform (AMP), and companies that are part of NAR’s REach tech accelerator, Stinton said.

“

NAR approves $12M

Our no. 1 competitor is beginning to look more like a trade association than a business.

Leading up to the vote, NAR leaders made clear — without actually naming their opponent — that the deal was also to counter what they see as encroachment from media and technology behemoth Zillow Group. The company acquired transaction management firm dotloop over the summer, raising concerns about Zillow Group’s role in the industry.

“I actually have a theory that our no. 1 competitor is beginning to look more like a trade association than a business,” Stinton told state association executives Sunday.

“The difference is they are asking people for a lot more money than we are.”

REALTOR Review ®

l 16 l holiday 2015

“There is absolutely no doubt in my mind … that there will be plugins, places to symbiotically create even more member benefit,” Stinton said.

“Everything will be done in a way that they can all play together.”

ZipLogix’s zipForm software is already integrated with NAR-owned database Realtors® Property Resource (RPR), NAR-backed moving app Updater and REach participant Deductr.

joel singer

ZipLogix also has integrations with DocuSign, NuOffer, Offer Runway,

BackAgent and SkySlope. The latter two are transaction management platforms. Singer said the company would continue to support such integrations.

“We recognize that we’re not going to be the only transaction platform on Day One,” he said.

“We already power a lot of transaction platforms with zipForms.

We are unlikely to power dotloop, but very likely to power [Move Inc.owned] Reesio.”

which those forms are completed and communicated with the other necessary parties in the transaction are not,” Russ russ cofano Cofano, former senior vice president of industry relations for realtor.com operator Move Inc., told Inman in an email.

Singer, who is also CEO of CAR, emphasized zipLogix’ Realtor®friendly credentials when speaking to association executives at the conference.

“In many cases, once an offer is submitted, the transaction takes various forms of analog and digital work product through disparate systems. This causes great inefficiency, and where there is inefficiency in today’s world, there will be innovation to solve that pain.”

“This company is 100 percent Realtor®-owned. Our design and our goals are to increase Realtor® profitability,” he said.

Electronic, standardized forms are often mentioned as one of the top benefits of belonging to a Realtor® association.

“Quite frankly, that limits what we can do. We have this amazing data.

We will never sell that data to the detriment of our members.

“With this announcement, it is clear to me that NAR, through its state and local organizations that vend forms, does not want the forms value proposition to members to be diminished,” Cofano said.

“We recognize that it is the intellectual property that so many of you spend so much time on when it comes to creating those standard forms. That intellectual property is sacrosanct.”

Making digital transactions the ‘industry norm’ Competition between NAR and Zillow Group may benefit the real estate ecosystem in general.

A seamless digital transaction is harder to achieve when the agent on the other side of the table isn’t on the same platform, or on any platform at all.

“Moreover, it’s an acknowledgement of the importance of a common platform to begin the sale process so that downstream digital collaboration on the actual transaction can become an industry norm.

There is a lot of work to do but this is a giant first step in the right direction.”

Singer told Inman he hoped local associations would take this opportunity to digitize the forms they currently only have paper copies for, such as noise disclosures.

ZipLogix would charge a one-time fee for the digitization, he said.

Competition and innovation Cary Sylvester, vice president of industry development at Keller Williams, commended NAR for adding value to members, but also encouraged associations to continue to offer and support multiple platforms for forms.

“That’s the surest way to drive innovation, encourage competition and create opportunities for brokers and cary agents to differentisylvester ate themselves in the market,” Sylvester told Inman in an email.

Keller Williams’ eEdge platform is powered by dotloop.

Singer noted that funding from NAR will allow zipLogix to expand its product development in an environment where competitors are funded by venture capital.

“We’re going to be able to compete with more scale and increased and accelerated development,” he said.

ZipLogix is currently in talks with Form Simplicity, a rival owned by Florida Realtors®. Singer said he hoped the negotiations would “come to a positive conclusion” by the end of the conference, but did not elaborate on the content of the talks.

NAR will give credit to all three tiers of the organization — local, state, and national — for the new member benefit, Stinton added.

“The virtuous benefit is that we’re all on the same platform and we don’t have the cost of duplicating all those others,” he said.

“I do understand the short-term pain, but I hope they’ll see the long-term gain.”

“While the actual [transaction] forms are standardized in given markets, the digital platforms on REALTOR Review ®

l 17 l

holiday 2015

Local Market Update – November 2015 A RESEARCH TOOL PROVIDED BY TRIANGLE MLS

Wake County

+ 4.8%

- 2.2%

+ 13.0%

Change in New Listings

Change in Closed Sales

Change in Median Sales Price

November

Year to Date

2014

2015

+/–

2014

2015

+/–

New Listings

1,280

1,341

+ 4.8%

21,164

22,324

+ 5.5%

Closed Sales

1,227

1,200

- 2.2%

15,999

17,318

+ 8.2%

Median Sales Price*

$230,000

$260,000

+ 13.0%

$230,723

$249,520

+ 8.1%

Average Sales Price*

$270,897

$299,590

+ 10.6%

$272,365

$285,987

+ 5.0%

Total Dollar Volume (in millions)*

$332.2

$359.5

+ 8.2%

$4,357.2

$4,951.7

+ 13.6%

Percent of Original List Price Received*

96.6%

97.4%

+ 0.8%

96.8%

97.5%

+ 0.7%

Percent of List Price Received*

98.1%

98.6%

+ 0.5%

98.1%

98.5%

+ 0.4%

Days on Market Until Sale

60

48

- 20.0%

56

47

- 16.1%

Inventory of Homes for Sale

4,408

3,832

- 13.1%

--

--

--

Months Supply of Inventory

3.0

2.5

- 16.7%

--

--

--

* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.

2014

November 1,341

1,280

1,227

+ 4.8% New Listings

2015

2014

Year to Date 21,164

1,200

22,324 15,999

+ 5.5% New Listings

- 2.2% Closed Sales

2015

17,318

+ 8.2% Closed Sales

Change in Median Sales Price from Prior Year (6-Month Average)**

All MLS

b

Wake County

a

+ 15%

+ 10%

+ 5%

0%

- 5%

- 10% 1-2008

7-2008

1-2009

7-2009

1-2010

7-2010

1-2011

7-2011

1-2012

7-2012

1-2013

7-2013

1-2014

7-2014

1-2015

7-2015

** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. | Current as of December 10, 2015. All data from Triangle Multiple Listing Service, Inc.. | Powered by 10K Research and Marketing.

For further information regarding TMLS Market Trends and Analysis please visit: www.TriangleMLS.com

REALTOR Review ®

l 18 l holiday 2015

Local Market Update – November 2015 A RESEARCH TOOL PROVIDED BY TRIANGLE MLS

Entire Triangle Region

+ 6.8%

- 1.0%

+ 9.6%

Change in New Listings

Change in Closed Sales

Change in Median Sales Price

November

Year to Date

2014

2015

+/–

2014

2015

+/–

New Listings

2,369

2,530

+ 6.8%

40,404

42,255

+ 4.6%

Closed Sales

2,160

2,138

- 1.0%

28,400

30,886

+ 8.8%

Median Sales Price*

$206,295

$226,000

+ 9.6%

$205,000

$219,000

+ 6.8%

Average Sales Price*

$243,768

$266,759

+ 9.4%

$244,294

$256,561

+ 5.0%

Total Dollar Volume (in millions)*

$525.8

$570.1

+ 8.4%

$6,929.5

$7,917.4

+ 14.3%

Percent of Original List Price Received*

95.6%

96.5%

+ 0.9%

95.8%

96.6%

+ 0.8%

Percent of List Price Received*

97.4%

98.0%

+ 0.6%

97.5%

98.0%

+ 0.5%

73

59

- 19.2%

67

59

- 11.9%

Inventory of Homes for Sale

10,834

9,374

- 13.5%

--

--

--

Months Supply of Inventory

4.2

3.4

- 19.0%

--

--

--

Days on Market Until Sale

* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.

2014

November

2015

40,404

2,530

2,369

2,160

+ 6.8% New Listings

2014

Year to Date 42,255

2,138

28,400

+ 4.6% New Listings

- 1.0% Closed Sales

2015

30,886

+ 8.8% Closed Sales

Change in Median Sales Price from Prior Year (6-Month Average)** Entire Triangle Region

a

+ 10% + 8% + 6% + 4% + 2% 0% - 2% - 4% - 6% - 8% 1-2008

7-2008

1-2009

7-2009

1-2010

7-2010

1-2011

7-2011

1-2012

7-2012

1-2013

7-2013

1-2014

7-2014

1-2015

7-2015

** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. | Current as of December 10, 2015. All data from Triangle Multiple Listing Service, Inc.. | Powered by 10K Research and Marketing.

For further information regarding TMLS Market Trends and Analysis please visit: www.TriangleMLS.com

REALTOR Review ®

l 19 l

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MOBILE CLOSINGS

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116 N Person Street Raleigh, NC 27601 P: (919) 346-7499 F: (919) 346-7490 contact@capitalcitylawnc.com www.capitalcitylawnc.com REALTOR Review ®

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RRAR RRAR

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2016 RRAR Calendar RRAR Calendar REALTOR Review 速

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