residential
sep + oct
B US I N E S S I N TELL IGE N CE FOR THE CR S PROFE S S IONA L
2016
THE
SPECIALIST ALSO IN THIS
ISSUE
Hot-selling design trends The lowdown on college towns Is it time to hire an assistant?
Fill your digital toolbox with these top 16 work-saving gadgets.
CRS-020
Boosting your search results Pros and cons of virtual staging Do you need a succession plan?
You can depend on HomeTeam for a faster, more efficient home inspection every time. While onsite, each team member focuses on his or her own area of expertise—which helps us cover every area, from the ground up. With our systematic approach and detailed reports you can rest assured that you have the information you need.
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contents
Sep 20 Oct 16 vol. 15, no. 5
features
tech
16
19
tips
IT’S TOOL TIME
The latest technology can help you find buyers, market to sellers, organize your office and maybe even lower your blood pressure. The cutting edge has never been so sharp. By Matt Alderton
24
SUCCESS BY DESIGN
Spanning generations and price points, 2016 home trends spotlight functionality and livability over glitz and glamour. By Donna Shryer
28
LEARNING CURVE
College towns generally offer stable real estate markets, but with some quirks. By Gayle Bennett
32
HELP WANTED
How to find an in-house or virtual assistant who’s right for your business. By Megan Craig
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Sep Oct
contents
departments 4 VANTAGE POINT
Sep 20 Oct 16 vol. 15, no. 5
10
14
By Janelle Pfleiger, CRS
5 SHORT LIST
A tight housing supply makes selling more attractive; homeownership rates hit a 20-year low; appraised valuations are down; and how to prepare your home for winter.
9
9 COOL STUFF
36
New wearable tech is hitting the market.
10 SMART SOLUTIONS
To stay at the top of their game, REALTORS® need to expand their SEO with new tools and capabilities.
41
By Donna Shryer
12 INSIDE TRACK
Digitally added furniture takes center stage. By Michelle Huffman
14 WINDOW OF OPPORTUNITY
A succession plan protects the value of your business. By David Tobenkin
16 PEER TO PEER
Allen Okamoto, CRS, and Allen Chiang, CRS, of the Asian Real Estate Association of America.
36 WORK + LIFE
Smarter Faster Better: The Secrets of Being Productive in Life and Business, by Charles Duhigg Reviewed by Allan Fallow
16
inside CRS 38 NEWS FROM THE COUNCIL
A year later, the CRS Qualified Consumer Leads program has generated thousands of leads; CRS members can now access a free robust CRS tool.
41 LEARN FROM THE BEST Why you should develop your new construction business.
48
42 CRS CONNECT 48 ASK A CRS
CRSs have encountered the strangest things at showings.
ON LY A T TR S MAG. C OM THE RESIDENTIAL SPECIALIST ONLINE Visit the website at trsmag.com to access the digital edition of The Residential Specialist.
NEED HELP? How much should you pay your in-house or virtual assistant?
THE TREND IS YOUR FRIEND Learn more about how to research home design trends.
Coming Next Issue ... B US I N E S S I N TE L L I GE N C E F OR TH E CR S PR OFE S S I O NA L
A Scary New Scam Threatens Busy Agents A new scam hijacks the closing funds your client wires after perpetrators who have hacked into your email account send your client bogus wire instructions. Making Money Through the Side Hustle Learn how REALTORS® are leveraging their real estate skills to earn additional revenue beyond their main real estate business.
EDITOR Michelle Huffman mhuffman@crs.com 800.462.8841 2016 ADVISORY PANEL Moderator: Clark Niblock, CRS Co-Moderator: Marylea Todd, CRS 2016 ADVISORY PANEL MEMBERS Paula Angelopoulos Urbinati, CRS Sarah Delphine Coleman-Lee, CRS Lois Cox, CRS Rosemarie Doshier, CRS Barbara DuDeck, CRS Dionne Housley, CRS Michael Klinger, CRS Bradly MacLay, CRS Joseph Mathews Colleen McKean, CRS Lynn Morris, CRS Vivian Pike, CRS Jacob Sanders, CRS Beverlee Vidoli, CRS CONTRIBUTING WRITERS Matt Alderton Gayle Bennett Megan Craig Michelle Huffman Donna Shryer David Tobenkin OFFICERS 2016 President Janelle Pfleiger, CRS Chief Executive Officer Lana Vukovljak 2016 President-Elect Leigh Brown, CRS 2016 First Vice President Gary Williams, CRS 2016 Immediate Past President Dale Carlton, CRS
PUBLICATION MANAGEMENT www.glcdelivers.com Publishing Manager Phil Malkinson Art Director Scott Oldham Advertising Manager Michael J. Mrvica M.J. Mrvica Associates, Inc. 856.768.9360 mjmrvica@mrvica.com The Residential Specialist is published for Certified Residential Specialists, General Members and Subscribers by the Council of Residential Specialists. The magazine’s mission is: To be a superior educational resource for CRS Designees and Members, providing the information and tools they need to be exceptionally successful in selling residential real estate. The Residential Specialist is published bimonthly by the Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices. Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to CRS at the above address. The Residential Specialist (USPS-0021699, ISSN 1539-7572) is distributed to members of the Council as part of their membership dues. Non-members may purchase subscriptions for $29.95 per year in the U.S., $44.95 in Canada and $89.95 in other international countries. All articles and paid advertising represent the opinions of the authors and advertisers, not the Council. POSTMASTER: Please send address changes to: The Residential Specialist, c/o Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. COPYRIGHT 2016 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.
Managing Know-It-All Clients Today’s buyers are more educated than ever. REALTORS® offer stories about know-it-all clients and tips for working with them. How to Build a Referral-Based Business Some CRS members are basing their business income more on referral commission and less on buying and selling. Learn how to set up an effective referral program and maintain it.
PLUS:
ADA website compliance is coming. Here’s everything you need to know about keeping your website up to snuff. Would you like to be a source for a future story in The Residential Specialist? Send an email to mhuffman@crs.com to be added to our potential source list. To see a list of the topics we’ll be covering, check out the magazine’s 2016 editorial calendar online at crs.com.
WHO ON YOUR
TEAM could benefit by receiving a personal copy of The Residential Specialist?
STAY INFORMED The Council of Residential Specialists provides superior education, exceptional networking opportunities and critical resources. The Council’s flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business.
crs.com
To subscribe for yourself or a colleague, call 800.462.8841. Note: Members of the Council of Residential Specialists receive the magazine as part of their member benefits.
[vantage point]
from the desk of A. Janelle Pfleiger, CRS, CLHMS, GRI, CDPE 2016 president
TRUST AND
technology Ø
“ CRS IS YOUR PARTNER BEHIND THE SCENES, SO YOU CAN GO OUT AND DO WHAT YOU DO BEST: WORK FOR YOUR CLIENTS.”
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Our industry, like many others, is in a constant state of evolution. Technology, the highlighted topic of this issue, is pushing real estate in new, exciting and uncertain ways. The internet continues to irreversibly change the home buying and selling process, conveying a serve-yourself style of real estate transaction where more buyers and sellers are questioning the value we provide. That, coupled with a number of unqualified and untrained agents that these consumers sometimes encounter, means clients start to challenge our commissions (and if you need more convincing, check out NAR’s Danger Report). Yet we know the value of what we offer: significant experience, market and regulatory knowledge, and skills and tools to get our clients what they want, whether they are selling or buying. We know real experience and expertise pays off through earning higher sales prices or scoring that dream house for a client at the best price. The CRS Designation signals to consumers and other agents that you are a highly-qualified, trustworthy agent. It’s more vital now than ever to emphasize this next-level knowledge to every client (or potential client) that comes your way. No matter how the tide turns, no online technology can replace the value of having an educated, experienced advocate in your corner who knows how to maneuver to a successful close. And CRS is your partner behind the scenes, so you can go out and do what you do best: Work for your clients. In this issue, we report on 16 tech tools to help you get the job done smarter, faster and easier. Soon, we’ll be offering two new initiatives that will help take the back-end burden off you: Agentdesks, a mobile-first customer relationship management (CRM) tool, streamlining your interactions with clients and providing you with reminders to boost your follow-up game. We’ll also be offering a virtual assistant service that can deliver a helping hand, assisting you with your daily real estate activities. Both of these new opportunities are being rolled out now, so watch for your CRS emails and check the website for the latest updates. With a freshly updated arsenal of tools at your disposal, our goal is to help free up your time to develop those knowledge-based skills that consumers are demanding, providing that invaluable insight your clients need.
[short list]
+ industry headlines + statistics + trends
SELLING
spree Ø
It’s a great time to sell, but not to buy, according to a Fannie Mae survey. The catch, of course, is that many people need to do both at the same time. The number of respondents to Fannie Mae’s Home Purchase Sentiment Index who report that now is a good time to sell has reached a record high of 52 percent. Meanwhile, those reporting that it’s a good time to buy has reached a record low of 60 percent, down from nearly 70 percent two years ago. A tight housing supply has led to renewed strength in home price appreciation, making selling more attractive, according to the report. The flip side of that, of course, is buyer frustration. Low inventory markets mean limited choice, bidding wars and inflated prices. Despite this competitive environment, shoppers are still keen to buy. More and more consumers believe that home prices will go up in the next 12 months. Less than 44 percent of respondents believed that in February, but the figure has since risen to 48 percent. Most also believe that interest rates will rise, though that figure is waning, according to the survey. Stagnant wage growth has been putting the pinch on buyers as well. Job security is generally not a concern, with 86 percent of respondents saying they are not concerned about losing their job in the next year; however, only 27 percent say their income is significantly higher than it was a year ago.
52%
Americans who say it is a good time to SELL a house:
2016
49% 2015
66 % 2015
Americans who say it is a good time to BUY a house:
60% 2016
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[short list]
ON T
do H wn E wa rd
homeownership rates among Gen X have fallen the most, and stand at 4 to 5 percent below rates among same-aged households 20 years ago. Buyers also face a myriad of problems that continue to erode the homeownership rate. Millennial renters are more cost-burdened, meaning they spend more than 30 percent of their income on rent, than generations
before them. Renters with student loan debt are also increasing, jumping from 30 percent in 2004 to 41 percent in 2013, according to the study. Diminished or stagnant household income across the board is another key factor, coupled with restricted access to financing. Lenders are reluctant to lend
REMODEL BEHAVIOR $9 , 67 6
5
4 ,0 4 $6
$6
,14 0
0
1 ,5 0 $6
$6
,8 5
9
25 $7,
$7,
59
0
With growing home prices and rising home equity, homeowners are increasingly remodeling their homes. However, just as the housing recovery has impacted the housing market across the country unevenly, the remodeling boom is also more prevalent in certain pockets.
to borrowers with less-than-stellar credit. Social and economic policy think tank The Urban Institute estimates that from 2001 to 2013 there was a 37 percent drop in home purchase loans among borrowers with scores between
Spending per home on improvements to owneroccupied housing: 2016
,27
Ø
Homeownership has hit a 20-year low, falling for the eighth straight year, and there are no signs of it turning around. And it’s not just the slow-to-start millennial generation deflating those rates, according to Harvard University’s Joint Center for Housing Studies’ State of the Nation’s Housing 2016 report. The falloff
is evident across all age groups, particularly Gen X, which bore the brunt of the housing bust and has yet to recover. When the market crashed, younger Gen Xers were in their prime first-time homebuying years and older members were at the stage where households tend to trade up or make significant (often equity-funded) improvements to their homes, according to the study. The downturn left them with little equity to weather the storm, and as a result,
$6
+ industry headlines + statistics + trends
DC MA CT NJ MD CA HI VA CO NY NH WA RI AK MN ND IL OR UT TX KS VT DE GA AZ PA WI FL WY NE NC MT OH ME MO IA MI
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2004 Peak U.S. Homeownership:
Home price perception index (percent difference between estimated home value and appraised value)
69%
+3%
2015
Bottom Three
Cleveland
Chicago
Detroit
Current U.S. Homeownership:
63.7 %
+1%
-1%
Top Three
slo pe
-3
Dallas
Ø
$5
,0 7
2
$5
,7 7
2
8 ,8 9
San Francisco
GREAT expectations
660 and 720, compared with a 9 percent drop among borrowers with higher scores.
$5
Denver
%
SD OK ID LA NV NM TN SC IN AL KY AS MS WV
Sellers may be slightly disappointed in the appraised value of their homes, unless they live out West. Appraisals on average are coming back nearly 2 percent lower than what homeowners expected, according to Quicken Loans National Home Price Perception Index. Western cities bucked this overall trend though, appraising significantly higher than homeowners thought they would. The highest difference between perception and reality was in Denver, where appraisals came back 3.28 percent higher than homeowners expected. San Francisco, Portland, Los Angeles, San Diego and Seattle all appraised out better than expected. On the opposite end of the spectrum, homes in Detroit, Philadelphia and Baltimore all appraised more than 3 percent lower than what homeowners expected. It’s not all bad news for homeowners and agents who find themselves outside the hot West. Nationally, appraised values are still growing, according to the Quicken Loans Home Value Index (which is based on appraisals, not sale prices). Home values rose nearly 0.8 percent since spring, but have grown a healthy 4.36 percent year over year—though again there are regional discrepancies. The West saw 6.21 percent growth, while the Northeast had just 2 percent growth. “Demand for housing coupled with a lack of choice for buyers pushed home values up yet again,” Quicken Loans chief economist Bob Walters says. “This is a narrative we have heard for quite some time. Many owners aren’t moving on from their current homes, which is holding back available inventory for both first-time and move-up buyers. With values on the rise, this could prove to be an ideal For the latest survey and time to sell—especially in the hot more information, go to quickenloans.com/ markets where owners could get press-room. more than they expected.”
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Sep Oct
[short list]
+ industry headlines + statistics + trends
AUTUMN
inventory
Ø
As fall sellers prepare their homes, it’s important to encourage them to ensure that their home has been properly maintained to avoid surprise issues as colder weather arrives. Here’s a brief checklist to note or share with sellers.
INTERIOR
❑C heck ceilings and surfaces around windows for evidence of moisture. ❑C heck caulking around showers, bathtubs, sinks and toilet bases. ❑V erify ceiling areas beneath bathrooms have no leakage.
1 2
HEATING AND COOLING
3
ELECTRICAL
❑C heck fan belt tension and listen for unusual noises. ❑F or boiler systems, check water level and shut-off valve for leaks. ❑P eriodically check for exposed wiring and cable. Replace as necessary. ❑C heck all lamp cords, extension cords and receptacles for wear.
DOORS AND WINDOWS
❑L ook for loose or missing glazing putty. ❑C heck caulking for deterioration at the openings and joints between dissimilar materials (e.g., wood and masonry). ❑C heck weather stripping.
4
PLUMBING
5
❑C heck all faucets, hose bibbs and supply valves for leaking. ❑C heck for evidence of leaks around and under sinks, showers, toilets and tubs. Check all joints for adequate grout.
ROOF
❑C heck for any missing, loose or damaged shingles. ❑L ook for open seams, blisters and bald areas on flat roofs. ❑C lean gutters, strainers and downspouts. Make sure downspouts divert water away from the foundation. ❑C heck fascia (board or roof trim) and soffits (connecting the roof overhang and the side of your building) for deterioration and damage.
6
FOUNDATION AND EXTERIOR
❑C heck foundation walls and floors for cracking, heaving, spalling, deterioration or efflorescence. ❑ I nspect chimney for loose, deteriorated or missing mortar or bricks. ❑C heck all wood surfaces for weathering and paint failure. For more information, visit ❑ I nspect all decks, patios, porches, stairs and railings for www.pillartopost.com. deterioration.
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GARBED IN
[cool stuff]
acquisitions on a theme
gizmos
EVERY EFFORT COUNTS
The MYZONE platform measures heart rate to track the effort you put into each workout, $ 149.00 according to its website. All that data is collected into a point system called MEPS (MYZONE Effort Points). Unlike other wearable wristband fitness trackers, however, the MYZONE is a chest strap, which the company says gives its device greater accuracy (99.4 percent accurate compared to a medical-grade EKG machine) when counting exercises. You can also see a live display of data through a smartphone app. The water-resistant module can be used for swimming. myzone.org
Wearable technology like the Fitbit and the Apple Watch really exploded last year—in 2015, 39.5 million U.S. adults used wearable devices, more than doubling use in 2014, according to digital researcher eMarketer. The company expects that number to double again in 2016, and with so many new products featuring a variety of uses hitting the market, it’s easy to see why jumping on the bandwagon could bring big benefits.
QUELL CHRONIC PAIN
Quell is a device that provides intensive nerve stimulation to help users manage chronic pain without medication. Designed for people experiencing arthritis pain, nerve pain, and leg, foot and back pain, it works by tapping into your body’s natural pain control system to block pain signals. The small device slips into a band with an electrode and is worn just below the knee. It is activated by clicking a button. Users can wear the band during the day while active, or at night while sleeping. The device connects to a smartphone app, which allows the user to control therapy dosage.
249.00
$
quellrelief.com
SOUND THE ALARM
TRACKING FIDO
SENSING SLEEP
Athena is a personal safety device designed specifically to keep women safe. The device $ 79.00 is a pendant that can be worn as a necklace or clipped onto an article of clothing. By pushing a button for three seconds, Athena sends a message to pre-determined friends and family. The message includes a map showing the user’s location, directions and the option to call the user or 911. It also activates a loud alarm—the same decibel level as a freight train—though that feature can be disabled for situations where discretion is warranted. The device only reports your location when you activate it, so you are not being tracked constantly. The company is working on a model that will directly alert 911 as well.
The Kokoon sleep-sensing headphones function partially as headphones and partially as a sleep tracking device. They connect to a mobile app with an audio library that plays sounds to help you nod off and adjusts the audio as you fall asleep so you’re not disturbed. The headphones also include an intelligent alarm that identifies an appropriate point in your sleep cycle to wake you up. Using EEG brainwave sensors, the headphones also track your sleep—such as when you are in deep sleep, light sleep, awake or dreaming—and helps you identify bad sleep habits to better understand what helps you sleep. The head$ phones also include triple-layer 229.00 noise protection, combining noise cancelling, isolation and white noise technologies.
Nuzzle is a GPS collar that ensures your pet doesn’t get lost again. The Nuzzle attaches to a collar and has a built-in GPS that connects to a smartphone app so you can track your dog wherever it goes, and you can also check in on your pet while you’re away. The app will tell you if your pet is actively exploring the house, playing or resting. The device is waterproof so sloppy drinkers won’t ruin it. Fully charged, the battery lasts up to five days. Nuzzle is available for pre-order, but won’t ship until November.
roarforgood.com
kokoon.io
hellonuzzle.com
169.00
$
THYNC GOOD THOUGHTS
Thync is a wearable that intends to energize or relax you through Vibes, or low-energy waveforms that stimulate nerves on your head and neck. The company claims that these sessions can lower stress, improve sleep and raise your overall mood without any pills or drinks. The device sits on your forehead and is attached to strips that are placed on the back of your neck. It then connects to a smartphone app that runs programs, typically about 10 minutes long, which are aimed at changing your mood. Not sure what to think? A 30-day trial costs $1. 199.00
$
thync.com
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[smart
solutions]
streamlining your business through technology
SEARCH
me!
To stay at the top of their game, REALTORS® need to expand their SEO with new tools and capabilities. By Donna Shryer
The search for homes has gone digital. The National Association of REALTORS® 2015 Profile of Home Buyers and Sellers reports that 42 percent of buyers begin their home hunt online, and only 14 percent first contacted a real estate agent. The report adds that 54 percent of homebuyers kick off their web-based hunt on a mobile device. In fact, Google recently announced what many suspected: “More Google searches take place on mobile devices than on computers in 10 countries, including the U.S. and Japan.” That means the majority of homebuyers are shopping the latest listings at any time, any place and from the palm of their hand. The ease of online browsing explains why more than 90 percent of real estate agencies today host websites. But is your website receiving the web traffic it deserves?
Today’s SEO paths twist, turn and overlap to the point where a refresher course, a professional expert’s help or both is a good idea. “I began implementing SEO several years ago,” says Theresa Walters, CRS, of RE/MAX Trinity in Brecksville, Ohio. “It remains a top priority, and to stay ahead of the competition with new SEO tools, I just invested in education so my videos and online ads work to help me land on Google’s first page—sometimes ahead of Zillow and Trulia.”
Making Memories
SEO has evolved. Search engine software programs, called “crawlers,” “robots” or “spiders,” now have juiced-up memories. Content remains king, but today, search engines remember how often a website crosses its path. The more linked digital properties you have, the more often a search engine sees and remembers you. “It’s just one missed opportunity after another when you have orphaned profiles across a multitude of social networks,” Humber emphasizes. “Connecting, or A Steeper Learning Curve linking, all your digital properties and continually promoting Once upon a time, the inclusion of keywords within your these properties—particularly through blogs—positively website’s content was enough to put you on a search engine’s impacts your search engine rankings.” first page. That about covered search engine Humber explains how to flip missed opportuoptimization, or SEO. nities into connections. “If you upload a video to BY THE NUMBER S However, in today’s search landscape the level YouTube that promotes a listing, you need a link of sophistication has increased significantly. that goes to a blog post about that listing. As part “The path to conversion is not a straight line of the blog, you need a link that points back to anymore. You need to follow—and connect— the video content on YouTube. And everything multiple paths to land on a search engine’s first links to your website. It’s a continuous circle.” of homebuyers begin page,” explains Chris Humber, head of search at searching for houses online. Search engines remember these circles. So Catalyst, a digital performance marketing agency when a search engine encounters links to your The National Association of REALTORS 2015 headquartered in Newton, Massachusetts. Profile of Home Buyers and Sellers website content via Facebook, LinkedIn, Twitter,
42
% ®
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YouTube and blogs, your visibility surges and your search engine ranking jumps. Jodi Bakst, CRS, and owner of Real Estate Experts in Chapel Hill, North Carolina, agrees. “Today, I use strategies to boost my brand for leads that are focused on building better content,” Bakst says. “I am also implementing strategies through social media to give visibility to my brand, my listings and open houses.”
match the end user’s content and location. Promote your website, social media and blogs properly, and those results will likely be your website!”
A Few More Mobile Points
It’s important to note that most search engines favor smartphone-friendly websites—as opposed to websites designed for desktops and merely downsized for a smartphone’s Connecting the Dots There are two ways to command top billing in search results. small screen. It may be time to While your website is where You can go for “organic search results,” which rely on SEO best investigate a website designed spehomebuyers find the most robust practices. Organic search results cost you nothing—it’s a matter cifically for mobile devices. information, blogging is an essenof you feeding search engines what they need to see. However, Here are additional mobile SEO tial way to get homebuyers to your with SEO’s new capabilities, you may want to invest in classes best practices to lighten the search site, emphasizes Jason Fox, SEO or a website expert. engine’s load and boost your rankexpert at Jason Fox Real Estate Your other option is to go with pay-per-click (PPC) advertiseing for homebuyers on the move. Marketing. “I believe the most ments, which guarantee a top spot in search results. These ads ÄÄForget about popups that block important task when building good are clearly labeled as ads, and today’s savvy web surfer knows site access without first doing real estate SEO is blogging about you didn’t earn that top spot. For that reason, Jason Fox, SEO something, like downloading neighborhoods and communities.” expert at Jason Fox Real Estate Marketing, says the results you an app or supplying contact This is the best way to connect with get from PPC can be quite different than results from SEO. information. your local audience and drive more Organic vs. PPC search results get two different reactions, ÄÄLose the Flash elements, such traffic to your site—the more clicks, Fox adds. “I explain it as the difference between a lead and a as banners, videos and audio. the higher your site will be ranked referral. PPC is a lead, and leads are OK. But what we all really Mobile devices can’t typically on the search engine results. want are referrals. When people contact you via organic top support Flash, and its very presHubSpot, a software developer placement, they are contacting you because they feel they ence lowers your rank in search for inbound marketing, supports know you and trust you. You earned that top spot.” results from mobile devices. Fox. In a recent report, HubSpot ÄÄ Set up the bi-directional cites that companies with active blogs generate 55 percent redirects between your mobile and desktop sites. If your more site visits and 97 percent more links to their websites, mobile site sends a visitor to your desktop site for a video, and their pages get indexed 434 percent more often. make sure the link works. ÄTighten Ä your mobile site’s content, but the message on On the Move both your mobile and desktop sites has to be consistent. The new hot topic in search engine optimization is mobile SEO, which is specific to searches performed on mobile Check It Out devices. Mobile SEO is similar to general SEO, although Analytics also play a vital role in today’s empowered SEO there are differences worth noting. capabilities. Analytics tell you whether your digital presence A vital difference comes down to location, location, location. is working for or against you. Fox suggests registering your In other words, smartphones track your movements and when site with Google Webmasters and Google Analytics. “These someone searches on a smartphone, the smartphone shares services track how many clicks your site is getting, what keyyour location with the search engine. The search engine words are ranking and how many pages are being indexed.” delivers results relevant to both content and location. When your website is doing its job, invite home sellers to “You’ve got a couple in the market for their first home, and check it out. Walters says by doing they’re driving around a neighborhood,” Humber says. “As so, “You show potential sellers you Want more tips they’re driving around, they’re also on their smartphone have the tools to make their propfor SEO? Log into CRS.com performing searches. Maybe they want information about erty appear on Google’s first page and search schools in this district; is it a walkable neighborhood; how’s and gain optimal exposure. That’s “SEO” for a bevy of blog posts, the public transportation? If a particular REALTOR® has how you can win the listing almost Inman Select blogs that speak to these common searches and the search every time.” articles and relengine sees that the couple is in this particular REALTOR®’s evant webinars and classes. neighborhood, the search engine responds with results that Donna Shryer is a freelance writer based in Chicago.
ORGANIC VS. PPC
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BEFORE
[inside track]
what’s trending in real estate
A virtually staged room engages viewers more than an empty room—at a fraction of the cost of traditional staging.
AFTER
PICTURE THE By Michelle Huffman
Ø
As with most computer-generated graphics, virtual staging has come a long way in a short time. The best companies can seamlessly blend computergenerated furniture into the photograph of a room. “There’s a big difference; if you look at the work we did when we started, it was good, but it’s not what it is today,” says Jay Bell, of Atlanta-based Virtual Staging Properties, a pioneering staging company that first rolled out virtually staged photos in 2008. “We’ve learned a lot and the work gets better literally every day.”
Virtual Staging Moves into the Spotlight
Most agents will agree that a staged room is superior to an empty one. “When you look at a virtually staged room, even though it’s all digital furniture, compared to an empty room, there’s
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no question which is better,” says Grace Uhlhorn, CRS, with Keller Williams Realty in Memphis. “A staged room evokes emotions you just don’t get with a blank room.” Uhlhorn’s husband is a builder, so staging was a clear fit with her business model. But she, like many agents, grappled with whether or not the cost and effort of staging was worthwhile. With virtual staging, the cost-benefit equation changes significantly. The obvious plus-side to virtual staging over traditional staging: It’s far cheaper. Prices fall between $225 and $400 for three to five rooms, though it depends on the vendor, and you tend to get what you pay for, agents say. That’s about 10 percent of the cost of traditional staging, according to figures provided by agents and stagers. Oak Park, Illinois-based CRS Roz Byrne, an agent with RE/MAX in the Village, says the cost is so cheap, it’s easy to get the sellers to foot the bill. Virtual staging also reduces the risk of damaging the property during the move. It can also be used for homes where traditional staging isn’t feasible, like a third-floor walkup,
Photos: Provided by Grace Uhlhorn
possibilities
Digitally added furniture takes center stage.
5 TIPS FOR USING VIRTUAL STAGING Vet the virtual stager. Processes can differ from stager to stager; some are DIY and others do it all for you. Ask to see recent samples, understand the process and figure out what raw photos the stager needs.
Prepare the shot ahead of time. Bell says the best height to take a shot is between four and five feet from the floor, with a good mix of ceiling and floor.
Imagine the furniture. Shoot in a way that would best capture the room if the furniture was in it, so take a picture that would show a whole bed in a bedroom or the entire dining room table in a dining room.
Reveal reality. Many agents make it clear that the virtually staged photos are not what the buyer can expect at a showing.
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Remind buyers of the possibilities. Many agents think it’s helpful to offer printouts of the virtually staged property as buyers are touring the empty rooms.
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Photos: Provided by Deborah Rutter, Stephen Barling Photography
and with homes that are not empty, but have empty or under-utilized spaces, such as a finished or BEFORE partially finished basement, to give buyers a sense of the room’s potential. But not all agents feel it compares to the real thing. Carl Medford, CRS, with Keller Williams Realty in San Francisco’s East Bay, owns his own staging company, The Next Stage, and employs the traditional method with gusto. He feels virtual staging is deceptive and impractical. “Since I’ve worked with so many buyers over the years, I know what they want to see when they show up—especially millennials. They are so visually oriented; they need the AFTER actual furniture to be in the room when they visit so they can fully experience the home in its best light,” he says. Because the reality of what buyers see at a showing does used to avoid any hint of misrepA staged room shows a room’s potential, without not match expectations, buyers get disappointed and frusresentation. He watermarks all the risk of damage from trated, setting the stage for a fail, Medford says. the virtually staged photos with moving real furniture. his website address, asks clients Controversy Continues, but Agents Adapt to reinforce in the listing that the Deborah Rutter, CRS, associate broker with Nest Realty in photos are staged and never edits any property features, such Charlottesville, Virginia, says that her clients don’t care if the as the color of the walls or the view from a window. room is empty or not. Many agents also provide both a staged shot and the empty “I have to believe the controversy around it now is not room shot in the listing. Byrne will write something like “picabout the staging itself and not about the fake furniture, it’s ture the possibilities” with the photos of staged homes. She the deception around how it’s used,” she says. “It’s such a also sets up photos of the staged rooms at showings. reasonable tool to use, but like everything else, it’s all about “My team and I have purchased a few of those digital application. It’s all about making sure the public has a clear picture frames,” Byrne says. “You plug them in and the vacant understanding of what they can expect.” ‘before’ and virtually staged ‘after’ photos run continuously Most buyers and REALTORS® have experienced that sinkin the digital picture frame, which also serves to refresh the ing feeling of walking into a property and quickly realizing buyer’s memory.” the house wasn’t nearly as good as the listing photos, so The return on investment for agents is mostly anecdotal, agents using virtual staging should try hard to avoid missimilar to traditional staging, but most believe that a virturepresentation. She compares the use of virtual staging to ally staged home moves much faster. employing a powerful wide-angle or fish-eye lens or using “If I look at other properties that have been on the photo-editing software—common tactics today. market for as long as my new listing, but mine is virtually Bell encountered this concern early on, but says it’s staged, mine tends to get more tapered off over the years. The trick to avoiding buyer disapshowings and go more quickly,” For more beforeand-after pointment at showings is to make it clear that the homes are Rutter says. examples of virtually staged. virtual staging, go to TRSmag. Bell, who also owns a traditional staging company, is Michelle Huffman is publications editor for com. very clear with his clients about how the photos should be The Council of Residential Specialists.
[window of opportunity]
strategies to grow your business
SECRETS OF YOUR
succession By David Tobenkin
Sep Oct
14
Ø
Jim Lubinsky says he used to tell his wife he didn’t want to be 66 years old and still selling real estate. Three years ago, when he turned 66, Lubinsky, CRS, says his wife reminded him of his vow. He responded by selling his Columbus, Ohio-based business to his son, John, for a five-figure sum payable under a 10-year payment plan, and an agreement for Lubinsky to stay associated with the business as a commercial sales agent. Lubinsky says the arrangement allowed him to profit from the continuing value of his business while helping to ease the way for his son by setting him up in a profitable venture. Preparing and executing successful succession plans like Lubinsky’s has allowed many REALTORS® to pass on their businesses in a manner that enabled them to reap financial benefits from their labors and stay active in a less demanding role. A succession plan is at its heart something every REALTOR® and agent is familiar with: a transaction between a willing buyer and a seller to convey property, in this case a business, at an agreed-upon price, says Jeffrey Grieff,
A succession plan protects the value of your business.
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a Seattle-based attorney, who has assisted REALTORS® and other professionals with succession plans. On the other hand, some REALTORS® and consultants note that such transactions often come intertwined with other non-financial goals, including a desire to see the enterprise they created continue after they leave and to help family, employees and clients.
The Time Frame
A first step in planning a succession is examining the goals for the succession and whether they are realistic. That often begins with working with a financial planner to determine how much an owner needs from their business to satisfy their financials needs or goals, says Scott Yoder, vice president at New York Citybased investment bank MidCap Advisors, which provides succession and exit planning advice to middle-market companies. In addition, it is critical that professionals have a realistic value expectation about how much money a succession transaction may bring, Yoder says, noting that paying off existing debts and taxes can take out a large bite from the proceeds. Generally, the longer the time frame for the succession planning, the better, experts say. A longer time period allows time to plump up the
Creating Value
“ A succession plan is at its heart something every REALTOR® and agent is familiar with: a transaction between a willing buyer and a seller to convey property, in this case a business, at an agreed-upon price.” —Jeffrey Grieff, a Seattle-based attorney, who has assisted REALTORS® and other professionals with succession plans.
business to sell at the best price, to groom and test employees or affiliated contractors to take over the business, and to allow timing flexibility to avoid having to execute such a plan in the depth of a real estate trough, when the odds of success may be greatly reduced. For many sole proprietors and small partnerships or brokerage companies, a better price often can be realized by selling the practice to employees or family members. Ann Buchanan, CRS, a Hendersonville, Tennessee-based REALTOR®, has told her team and family that she plans to retire in 2020. Buchanan says she assumed that a longstanding listing agent affiliated with her was her logical successor. But when approached, the listing agent expressed no interest in assuming the business. Now Buchanan is grooming a younger buying agent who joined the team a year ago, but admits that the jury is still out. Sometimes merging with another practice may be a viable alternative. In January, Deborah Arends, CRS, based in Seattle, executed a merger of her business with the independent business of her husband and his business associate after Arends’ long-time administrative employee and assumed possible successor left to pursue another interest. The transaction, which Arends says required $12,000 in accounting and legal advice and trademark fees, established Arends, her husband and his associate as equal partners and allots them revenues based upon three factors: sales commissions, management fees and a share of overall profits. The arrangement allowed Arends to cut her time commitment to her business in half since last spring, she says.
THE LIKELY BUYERS
It helps to keep in mind who likely buyers would be for a real estate practice. The likely suspects, says Scott Yoder, vice president at New York City-based investment banking firm MidCap Advisors, which provides succession and exit planning advice to middle market companies, include: ➊ Direct residential sales competitors in the market ➋ Complementary businesses like a commercial practice looking to add a residential practice ➌ Other senior employees or the management team ➍ A younger generation of employees or affiliated contractors ➎ Family members. While selling to direct competitors might seem like the most straightforward approach, that is not always the case, says Jeffrey Grieff, a Seattle-based attorney, who has assisted REALTORS® and other professionals with succession plans. Generally, such competitors in the marketplace will expect a significant discount to buy a competitor, as they will weigh the acquisition cost against the cost of simply ramping up their own existing operations, he says.
Beyond realistic goals and examining likely buyers, accurately valuing the business being sold is a critical element of success. Generally, the larger and more successful the practice, the more likely it will be salable, taking the pressure off the reputation of the departing agent to make the sale worthwhile. Among the assets that can create value for buyers are real estate, accounts receivables, business forms and systems, computer software, client lists and databases. One measure, which Lubinsky says he used to help determine the price at which he conveyed his practice to his son, is to determine the percentage of new business that typically derives from his database or contacts. Other valuation formulas include a valuation based upon commissions, such as valuing the business at 2.7 times the amount of commissions, and valuations based on multiples of net profits or gross receipts, Grieff says. A variety of professionals can help with succession planning, including attorneys, certified public accountants, financial planners and succession planning consultants. There is considerable overlap among these different classes of professionals in providing succession-related services, so it is important to ask what services they do and do not provide and the professional’s qualifications to provide them. Such services include the following: ÄÄPersonal financial planning ÄÄBusiness valuations ÄÄIntroductions to potential buyers ÄÄEstimations of transaction tax implications ÄÄBusiness accounting for the successor organization ÄÄDrafting of transaction documents such as a definitive agreement that describes the transaction and non-compete clauses or agreements for employees and the seller. Yoder notes that sole practitioners may only need limited input from such professionals given the smaller profile and cash potential for their transaction plans. David Tobenkin is a freelance writer in the Washington area.
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T. Okamoto & Co, San Francisco, California
ALLEN OKAMOTO, CRS
[peer to peer]
profiles of people to watch
Pfleiger: Tell me how you got started in real estate. Okamoto: Well, my father started in the business in 1946, right after World War II. He returned to San Francisco after he was in the Japanese-American internment camps. He started in insurance, and he got into real estate after the Japanese population started to grow because they needed housing. In 1965, I got into the business and the rest is history. Chiang: My story is a little more interesting than his. I was really unhappy with my real estate agent when I purchased my first house and I thought, ‘I can do better.’ So I got my license and I’ve been doing real estate since. From that day [in 1986], I’ve been trying to make our industry better. Okamoto: Just to give you some background on Mr. Chiang, he now currently has five offices, 400–450 agents, making him the owner of the largest ethnically owned, independently owned real estate office in the U.S.
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Pfleiger: It’s safe to say you did better than your real estate agent, Mr. Chiang. What prompted you to seek your CRS Designation, and why does CRS stand out from other designations? Chiang: CRS is really the root of the real estate industry. The other designations are shining your license, but CRS is really root knowledge and it can move the majority of the industry to a higher level of achievement and make a standard across the board. Everything else is a specialty, but CRS is the real standard. Every time I make a referral, I look for a CRS so it’s someone I can trust. Okamoto: I don’t have 13 designations like Mr. Chiang, but I have my GRI, SRES and CRB. AREAA went to the CRS office in Chicago to see if we could work together and collaborate. Before that, I never thought about getting my CRS because I got my CRB, but as I got to know the organization, I realized it
Photos: Eric Millette (left) and Steve Anderson (right)
Allen Okamoto and Allen Chiang are two founders of the Asian Real Estate Association of America (AREAA), one of the fastest-growing real estate networking organizations in the U.S. Okamoto, known as “the Godfather of AREAA” and Chiang, who Okamoto calls the “Jackie Chan of AREAA,” spoke with CRS President Janelle Pfleiger about their organization, the importance of the CRS Designation and the future of our industry.
Presidential Real Estate, Irvine, California
ALLEN CHIANG, CRS was the one I probably should have gotten first because CRS education programs are so superior. Pfleiger: Tell me how AREAA came to be. Okamoto: The story of AREAA goes back more than the 14 years of our existence. I was the president of the San Francisco Association of Realtors in 1990, and in preparing for my position, I looked at all the committees and board members. I wanted to see the involvement of Asians and people of color, and I wanted to have gender equality in the association. I was shocked to find out that I was not only the first Asian president of the association, I was the first elected Asian board member in its history. So I made it my goal to bring more people of color into the association. In being involved in associations and committees over the years, I met a lot of people and I saw there was a definite need for a national Asian real estate association. Due to a lot of hard work by people like Mr. Chiang and others, we were able to get it started. Now we have 34 chapters and 15,000 members. Over 14 years, that’s amazing growth. Chiang: My story is much simpler than his. I was forced to join by Allen. Eventually, Allen asked me to step in for the national treasurer, and in 2009, I was the national chair,
when we started to see the markets crash. Then there was this real need for the networking and the people holding up their education and their knowledge to get through this difficult time. I decided to stay in the organization, where we are not only growing here, but we are also expanding our international network. Pfleiger: What obstacles do you see for our industry and for our organizations? Okamoto: Bill Chee, the first Asian president of the National Association of REALTORS®, gave this famous speech and referred to ‘the lions coming over the hill.’ He was talking about Microsoft and some of the big computer companies coming in and taking over the real estate industry and almost eliminating the agent because, through technology, the consumer could just get on a computer and do the real estate transaction. Just recently, Joel Singer, the CEO of the California Association of REALTORS® gave a talk saying that is no longer the case. We’re not worried about the internet now because the internet is helping the agent. While transactions are initiated by the consumer getting on the web, the real estate agent is the actual negotiator and consummator of the transaction. continued on next page Ò
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Allen Chiang got into real estate in 1986, after a bad experience with his agent. He now has five offices and nearly 450 agents.
[peer to peer]
profiles of people to watch
Chiang: Everybody needs to look into their future, 10 years into the future, and see if you’re going to drop out or if you’re going to continue, because the new generation is coming and you need to adapt. In the next five to 10 years, we won’t need you to drive the car to the house. We will have comfortable massaging chairs in our offices, and you will just go from property to property and the agent will just operate a computer for you. So not only is the technology going further, but because of that, agents are criticized for making too much commission, so the consumer starts to put pressure on the commission. So now you may have to lower commission, but find a way to do less work. The younger generation will come out and do that best. They say “knowledge is power,” but now I would say trust is power, and the key factor for the next 10 years. People can do everything on the internet, but they’re still missing that trust. They have to have that trust in real estate. And that’s something the younger generation coming up still needs. They have the technology piece, but not always the trust. An 18-year-old kid can operate a virtual tour to show a house, but are you going to a buy a milliondollar house through him?
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Real estate was the family business for Allen Okamoto. He later became the first Asian president of the San Francisco Association of REALTORS® in 1990.
Both sides of the transaction need to have that trust that you can’t just find on the internet. Trust will be the one thing you need in the next five to 10 years with all the new technology. Pfleiger: What’s the most exciting
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thing about being a REALTOR® as well as a CRS or AREAA member today? Okamoto: Initially when I got into the business, the money was the motivating factor. I thought it was a great profession where I could make money, but now
I’ve been in the business so long, it’s the people that motivate me. Chiang: I think CRS is
knowledge and AREAA is culture. Put those two together and it’s a formula for trust.
Allen Chiang achieved his CRS Designation in 2003. He can be reached at 949-3373388 or at allen.chiang@presidentialinc. Allen Okamoto achieved his CRS Designation in 2011. He can be reached at 415-931-6290 or at allen@tokamoto.com.
Tool technological
superiority
[feature]
It’s
tech
16 tips
The latest technology can help you find buyers, market to sellers, organize your office and maybe even lower your blood pressure. The cutting edge has never been so sharp. By Matt Alderton
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Although they don’t have much in common with software developers, residential REALTORS® are running their businesses more and more like Silicon Valley startups. “Real estate agents are a diverse group of people, and a lot of them have adopted technology early and done great things with it,” says Alexander Coon, founder and CEO of Piper Crane, a Brooklyn, New York-based residential real estate brokerage that specializes in technology. “You still have some brokers who are low-tech, but overall there’s a generational shift taking place in real estate; more young people are entering the profession, and as a result, real estate is becoming more wired.”
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[feature]
technological superiority
tech
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Real estate’s generational shift encompasses not The implication is clear: To keep pace with their tips only agents, but also their clients, according to the clients and competitors, REALTORS® of all ages must National Association of REALTORS®, which says miltreat technology not as a toy, but as a business tool. lennials—more than half of whom search for homes on their Of course, anyone who wants to leverage the best tools phones, NAR reports—have constituted the market’s largest must first assemble the best toolbox. Here are 15 technologroup of recent homebuyers for three years running. gies that belong in yours.
1
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Realtyjuggler.com
2 TERRITORY MANAGEMENT Along with his CRM, Roque uses Spotio (spotio. com, free), a territory-management application that he leverages twice a week when he goes door-knocking. Using a smartphone or tablet, users put pins on a map embedded with notes about where they’ve been and who they’ve met. You also can assign team members to geographic territories for prospecting.
Spotio.com
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CRM software is the one piece of technology Jorge Roque, CRS, can’t live without. “My CRM allows me to remember everything,” says Roque, a broker with Miami-based America’s Real Estate Force Corp. “One of the main complaints people have about REALTORS® is that we don’t communicate enough. That doesn’t
Agentdesks app
VIDEO MARKETING
If a picture is worth a thousand words, a good video is worth a million. Matt Fagioli agrees, which is why he recommends BombBomb (bombbomb.com, $39/month) for delivering video messages that can be pre-recorded and emailed directly to clients, prospects or employees. “If you were to get a lead from Zillow or Realtor.com, that could trigger a BombBomb video to be emailed to the prospect saying, ‘Hey, I got your message and I can’t wait to talk to you. I’ll call you back soon,’” says Fagioli, founder of the Xplode Conference, an event series that introduces real estate agents to the latest technology. Animoto (animoto.com, $22/month) is a fantastic video editor, he adds. With Facebook Live (live.fb.com, free) and Periscope (periscope.tv, free), you also can broadcast live video straight from your smartphone. “You can essentially FaceTime a home tour with somebody,” Coon says.
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happen with me because my CRM software reminds me to call clients every 10 days, send them a written report every week and mail a handwritten card on their birthday.” Roque’s CRM of choice is RealtyJuggler (realtyjuggler. com, $99/year). Coon recommends Agentdesks (agentdesks.com, $15/ month).
MightyText app
4 TEXT MESSAGING Clients increasingly want to communicate via text. To accommodate them, Roque uses MightyText (mightytext.net, $3.33/month), a texting application for Android devices that allows you to compose and schedule individual or group texts from your computer or tablet. “Let’s say I have an appointment with you a week from today, and I want to send you a text reminder an hour beforehand. I can write it ahead of time and schedule it to go out automatically,” Roque says. “I use it all the time.”
technological superiority
5
Google Chromecast
Screen-sharing technology makes it easier than ever to browse the MLS with buyers or present written offers to sellers. Roque uses Screenleap (screenleap.com, free), which allows you to share your computer screen with others by sending them a viewing link by email or text message. Vicky Santana, CRS, also utilizes screen sharing thanks to an Apple TV (apple.com/tv, $149) in her conference room. “We’ll take our Mac devices in there and use the Apple TV to mirror our computer on the big-screen TV to show clients listings or to conduct trainings with our agents,” says Santana, owner and broker at NextHome Santana Real Estate in Vero Beach, Florida. Google’s Chromecast (chromecast.com, $35) offers a similar capability for Android users.
SCREEN SHARING
7
[feature]
6
SCHEDULING
Even a circus performer would have a hard time juggling a REALTOR’s® calendar. Tools like ShowingTime (showingtime. com, variable pricing) simplify your life by streamlining the process of scheduling showings; its 24/7 appointment center will schedule and confirm showings on your behalf, or you can do it yourself using the desktop software. Showing Suite (showingsuite. com, $39.95/month) and Centralized Showing Service (showings.com, variable pricing) offer similar services. ShowingTime app
VIRTUAL REALITY
Although it’s still in its infancy, virtual reality is brimming with real estate potential, according to Santana, who last year purchased a Matterport Pro Camera (matterport.com, $4,500 plus $49/ month for model processing) that she uses to create 3-D scans of homes that can be shared as virtual tours. 3-D models can be viewed on the web or, for an immersive, 360-degree experience, through a virtual reality headset. Currently, only Samsung Gear VR goggles (samsung.com/
GearVR, $99.99) are supported, but support is expected in the future for alternative devices like Google Cardboard (vr.google.com/ cardboard, $15) and Oculus Rift (oculus.com/rift, $599). “It really elevates the homebuying experience,” Santana says. “It’s not just watching a video; you feel like you’re actually in the property because you can interact with it and walk through it as slowly or as quickly as you want.” Floored (floored.com, variable pricing) provides a similar service
Floored.com floor plan
fast fact using computer-aided design (CAD) files to create immersive tours of spaces that have not yet been built. Meanwhile, virtual tour specialist Obeo (obeo.com, variable pricing) is one of several companies offering virtual staging and virtual styling. The former allows you to populate pictures of empty rooms with virtual furnishings, while the latter allows you to doctor photos of poorly decorated spaces to show what homes will look like stripped of the previous owners’ specific tastes.
Approximately a quarter of agents (27 percent) and brokers (21 percent) spent between $501 and $2,000 on technology in the last 12 months.
Virtual staging from Obeo.com
Samsung Gear VR goggles
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technological superiority
[feature]
RoomScan Pro app
tech
16 tips
9
8
Floor plans can help buyers visualize themselves and their possessions in a home—and you no longer need a tape measure to create them. For example, check out RoomScan Pro (locometric.com, $4.99). Once you download the iOS app, all you need to do is walk around the room and hold your device on the wall to automatically create a digital floor plan to share with buyers.
3-D PRINTING If you’re selling a home that hasn’t been built yet, or one that will require extensive renovations, you’ll need to help potential buyers visualize the end product. Floor plans and virtual reality can help, but for the most imagination-challenged buyers, consider a 3-D printed model. You can print one yourself by acquiring the CAD files for a new or renovated home, then printing them on a desktop 3-D printer like the MakerBot Replicator (makerbot.com/replicator, $2,899). MakerBot Replicator
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DIGITAL FLOOR PLANS
The Residential Specialist trsmag.com
fast fact The three tools REALTORS® plan to purchase or replace most often in the next year are their iPad (16 percent), smartphone (15 percent) and digital camera (12 percent).
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MILEAGE TRACKING
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PREDICTIVE ANALYTICS
Travis Waller, CRS, spends a lot of time—and money—in the car. One of his favorite apps, therefore, is MileIQ (mileiq.com, $5.99/month), which uses your phone’s GPS to automatically detect and log tax-deductible business mileage. “At the end of the month you receive a PDF of your business and personal drives. I send that to my accountant every month, which last year saved me $5,000 on my taxes,” says Waller, of Friedberg Properties & Associates in Englewood Cliffs, New .Jersey.
It can take a lot of time and experience to guess when homeowners might move and then to effectively target those on the verge of packing boxes. Predictive analysis services can take some of the guesswork out of the process and help streamline your direct marketing in SmartTargeting app the process. Companies like SmartZip and RealAgile will predict when consumers are ready to sell their homes and send automated marketing campaigns to those most likely to sell.
technological superiority
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bSafe app
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E-SIGNATURES Regardless of size or type, there’s at least one thing every real estate transaction needs in order to close: signatures—lots and lots of signatures. An eSignatures app can help you get them from buyers and sellers quickly and easily, according to Waller, whose app of choice is HelloSign (hellosign.com, $13/month).
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fast fact
SAFETY
Their jobs can sometimes send REALTORS® into unsavory neighborhoods and situations. To ensure his own safety and that of his team members, Roque uses bSafe (techsafety.org/bsafe, free), a personal safety app that allows users to create a “social safety network” of people who receive your GPS location and a call for help in case of an emergency.
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HOME SEARCHING
You’ve heard of Big Data. Now, solutions exist to help you leverage it for real estate, according to NAR Director of Member Engagement Nobu Hata. Case in point: RealScout, a cutting-edge home search platform that aggregates and analyzes hundreds of data points for every listing to help buyers find properties with hard-to-search-for features, such as remodeled kitchens, natural light, high ceilings or big backyards.
hellosign.com
[feature]
RealScout [SIDEBAR] Fast Facts: REALTORS® and Technology
9 in 10 REALTORS® use social media.
TRANSACTION MANAGEMENT Cloud-based services are ideal for transaction management, according to Sheila Moylan, CRS Candidate, who uses Google Calendar and Google Drive for exactly that purpose. “Every transaction has its own Google Calendar that I use to track all the activities and appointments for my buyers and sellers,” says Moylan, of Century 21 Commonwealth in Westwood, Massachusetts. “Same thing with Google Drive: Every transaction gets its own folder where I put all relevant documents, emails and pictures so I can always access them.” In addition to keeping her organized, the tools keep her clients informed. “Instead of me calling my sellers every single day, they can look at Google Calendar whenever they want to see how many showings I’ve done and find out what’s next in the selling process,” Moylan continues. Transaction management app Road to Close (roadtoclose. com, $49/transaction) is another option, allowing brokers to map and manage every step of the home purchase or sale— from contract to close—so clients know what is supposed to happen, and when.
Snap drone
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DRONES
For now, the Federal Aviation Administration (FAA) generally prohibits the commercial use of drones by real estate agents, unless they have applied for and received what’s known as a Section 333 waiver. However, regulations are expected to loosen in the future to allow more widespread use of drones, which could be utilized for taking aerial photos of properties and giving remote showings via live video. “I’m waiting to see what happens with the regulations, but I’ve already pre-ordered my own drone,” says Santana, who expects to receive her Snap (vantagerobotics.com/snap, $1,295) flying camera this fall.
A Final Tip
Finding useful tools is easy. The real challenge is determining which ones are worth using. To decide, think “high-touch” instead of “high-tech,” advises Hata. “The one thing every broker and agent should ask themselves before they start using a new piece of technology is: Will this make my clients’ lives easier?” he says. “If it will make your clients’ lives easier, it will make your life as an agent easier, as well.”
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Spanning generations and price points, 2016 home trends spotlight functionality and livability over glitz and glamour. By Donna Shryer
“Form follows function.” That’s how David Pekel recaps today’s home trends in updating, remodeling and new construction—regardless of generation. As CEO of Pekel Construction & Remodeling, Inc., in Wauwatosa, Wisconsin, he hears clients requesting that everything thoughtfully serves its intended purpose. That doesn’t mean austere or lacking in luxury, but it does mean the end of just-forshow extravagance. Understanding this principle gives REALTORS® a heads up as to what buyers want and what must be emphasized at a showing. It also helps REALTORS® be the hero when boomerang clients ask for recommendations about what to update or renovate. Being ready with advice is essential, says Diana Emrich, CRS, managing broker and co-owner of Weichert, Realtors-Towne & Country, in Lexington, Kentucky. “I just got a call from clients who closed nearly four years ago. They wanted me to assess their kitchen renovation plans.” What’s fascinating, Emrich adds, is that millennial first-time homebuyers want the same things as their downsizing baby boomer parents. Both generations top-rank two home characteristics, which play right into the “form follows function” premise. They seek a move-in ready home, with renovations as a choice—not an immediate necessity. They also want a great space to entertain. “People today are more inclined to host parties, whether it’s a big family holiday gathering, a small get-together with friends, or playtime with the kids or grandkids,” Emrich says. Here are several home trends attracting both millennials and baby boomers.
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dwelling
points
[feature]
An Open Floor Plan
“Architecture is about the kitchen, dining room and family room flowing into one open space,” says Scott Urquhart, CRS, broker associate with Century 21 Troop Real Estate in Camarillo, California. “Everyone wants to be part of the party and not locked in the kitchen away from the action,” he says. Accomplishing an open floor plan doesn’t demand additional square footage, Urquhart says. “It’s more about repurposing space. If you rarely use your formal living and dining rooms, repurpose them to create a larger kitchen that opens into a family room.”
Keep an Open Mind If a client says, “This is our dream home—except for the floor plan,” never let them walk away without first calling in a trusted contractor to discuss opening things up. “Non-load-bearing walls are inexpensive to remove. If it is a load-bearing wall, you can install a support beam or pillars,” Urquhart says.
ROI The percentage of value recovered from the cost to open up a home’s floor plan is tough to pin down because construction issues affect final costs. However, a survey by Harris Poll for Trulia reports that 46 percent of today’s homebuyers, regardless of generation, want an open floor plan.
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Kitchen Storage with Personality and Purpose
According to a National Association of Home Builders (NAHB) survey, 79 percent of remodelers cite kitchen overhauls as the second most popular renovation project in 2016. As for the most popular color palette, “quintessential elegance is the white kitchen,” says Robi Kirsic, president of TimeLine Renovations, Inc. in Manhattan. Soft grey, he adds, is the most common accent color, although those looking for a dramatic twist are going with deep charcoal or another rich color. To creatively interrupt a wash of white, dark-wood cabinetry and furniture pieces spice things up. For storage, homeowners want options that serve a purpose. They’re choosing more and deeper drawer banks, eliminating the need for pricey pullout cabinet baskets that make deep base cabinets functional. There’s also a strong emphasis on the kitchen island, which provides additional storage, helps anchor an open floor plan and gives homeowners a spot to express their personal style with creative finishes and countertop materials.
A Personally and Environmentally Superior Bathroom
In a 2016 NAHB study, 81 percent of those surveyed give bathroom renovations the top spot for most common remodeling project. A strong bathroom trend is replacing that enormous whirlpool bathtub—so popular in the 1980s—with an oversized walk-in shower. It’s another nod to “form follows function,” because many Americans prefer showers to long soaks. Bigger tiles on bathroom walls and floors are another trend, from 12 by 24 inches up to square or rectangular extra-large tiles measuring 40 by 120 inches. “Large tiles eliminate grout lines for a cleaner look and less to maintain,” Kirsic explains.
Keep an Open Mind
ROI
Replacing the tub with a shower is not recommended in a one-bathroom home. “When it’s time to sell, young couples with a baby or thinking about starting a family need a tub. Without it, they’re out the door,” Kirsic says.
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Bathroom renovation: 58 percent*
Keep an Open Mind “The No. 1 sin in kitchen updates is installing a new granite countertop to dress up an otherwise completely outdated kitchen,” Emrich says. “Buyers won’t pay for a new countertop when the entire kitchen needs to be rehabbed.”
ROI Kitchen update or renovation: 67 percent*
* 2015 Remodeling Impact Report, a joint study from the National Association of the Remodeling Industry (NARI) and the National Association of Realtors® (NAR
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GET SMART? There’s no denying that the smart home is gaining attention. By definition, this refers to a home equipped with lighting, heating and electronic devices that can be controlled remotely by smartphone or computer. Kirsic feels that buyers aren’t ready to pay the steep price for a fullyautomated residence, which means a poor ROI. However, Kirsic adds, “I predict that smart homes will be far more desired within the next 10 years.” In the meantime, new product innovations are bridging the gap between a fully automated home and smart ways to add specific and economic smart-home features. Here are just a few examples hitting the market.
Cozy up to Smaller, Specialty Rooms
While the open floor plan rules, smaller rooms that serve specific purposes remain important. In the basement, once relegated to storage or a makeshift playroom, there’s the well-built man cave, which furthers the entertainment trend. Up on the main floor, entryways are being transformed into legitimate mudrooms, Pekel says. “Kids today have backpacks, sports equipment, laptops, hats, coats— and the mudroom for families with school-age kids is essential.”
Keep an Open Mind Never underestimate the value of even a few square feet. A comfy chair slipped into a sunny niche creates a quiet reading nook. A covered front porch becomes an outdoor family room.
ROI
The Nest Learning Thermostat and Ecobee3 can both be controlled manually and via smartphone, tablet or computer. Both also “learn” the homeowner’s temperature preferences throughout the day—automatically heating up or cooling down right on schedule.
The Cree Connected LED bulb allows homeowners to dim or brighten a room’s lighting and remotely turn lights on or off. The system requires a bulb, compatible hub, mobile device, Wi-Fi connection and the desire to lower electricity bills.
The August Smart Lock remotely controls a door’s deadbolt, making keys a thing of the past and added security a thing of the present.
A Soft Spot for Hardwood Flooring
“Wall-to-wall carpeting is on the way out. Homebuyers want hard floors, with hardwood being the most popular and large format tiles gaining ground,” Urquhart says. Wood flooring is the top choice largely because it cleanly unites multiple living spaces in an open floor plan.
Keep an Open Mind
ROI
If grungy wall-to-wall carpeting has your clients turning away from an otherwise fabulous home, Emrich offers this advice: “Don’t reject the property without pulling out floor vents and checking for hardwood flooring under the carpet. You have no idea how often it’s there—covered from day one and never even walked on.”
New wood flooring: 91 percent* Refinished wood flooring: 100 percent*
Finished basement: 69 percent* Donna Shryer is a freelance writer based in Chicago.
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L Left: University of Florida campus; inset: housing in downtown Gainesville. Gainesville offers strong gross annual rental yields for investors. According to Trulia, the median rent increased 11 percent from August 2015 to July 2016. Photo: McCory James
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The largest employer in Gainesville is the University of Florida (UF). So it’s not surprising that Betsy Pepine, CRS, broker-owner of Pepine Realty, estimates that 75 percent of her clients are affiliated with the university. But unlike handling the real estate needs for new employees of a large corporation, where one HR department handles all recruiting and hiring, UF is decentralized. “Every department has its own process for recruiting, hiring, onboarding and relocating,” Pepine says. “So once you’ve made inroads into one department, it doesn’t help you get into another department. That’s unlike a large company, such as Nationwide Insurance, which is also located here. Once you are in Nationwide, you are in every department.” UF’s decentralized nature isn’t unusual for an institution of higher learning. And that can make being a REALTOR® in a college town a bit of a challenge. But college towns also offer an upside: a more stable market; the additional client base
Photo: Douglas Green
earning College towns generally offer stable real estate markets, but with some quirks.
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of parents and investors; and often inflated rents, which makes homeownership an even better proposition than it already was.
How to Get in with the College
BY THE NUMBER S According to Realtor.com, these are the five most expensive college towns in the United States: 1. Berkeley, Calif., above (University of California, Berkeley) 2. Santa Cruz, Calif. (University of California, Santa Cruz) 3. Boulder, Colo. (University of Colorado, Boulder) 4. San Luis Obispo, Calif. (California Polytechnic State University) 5. Cambridge, Mass. (Harvard University and the Massachusetts Institute of Technology)
UF doesn’t allow departments to endorse any one REALTOR®, Pepine explains. But departments assemble lists of REALTORS® who give community tours to faculty candidates, and she wants to be on as many of those lists as possible. Therefore, she works to get to know the administrative staff person responsible for putting together the agenda when job candidates come to town. “If you can establish a great relationship with him or her, then when candidates come in, you get on the recruiting schedule and you market yourself as part of the recruiting team,” Pepine says. After the community tour, Pepine and her team write a thorough report for the hiring manager on how the tour went, offering added value to the department. “Often the candidates will reveal to us obstacles that might be in the way of them relocating that they don’t feel comfortable sharing with the hiring manager, but it’s something the hiring manager could address.” Sean Moore, CRS, with RE/MAX Boone Realty, works in Columbia, Missouri, home to
KNOW YOUR CLIENT BASE
College towns often have robust arts and cultural offerings that draw faculty, staff and other community members. In Davis, California, CRS Claire Black Slotton and her partners are adding to the local arts scene—and gaining clients in the process. When Slotton and her partners opened up shop three years ago, they remodeled an office bungalow in the heart of Davis. They decided to make the conference room and reception area an exhibit space for artists. “We have rotating art exhibits by local artists,” Slotton says, “and the Davis Downtown Association sponsors 2nd Friday ArtAbout,” a monthly self-guided art walk through galleries and businesses. Slotton cooks for the 50 to 70 people who come to
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the University of Missouri’s flagship campus and the smaller Stevens College and Columbia College. He’s on the referral list for surgical residents who are matched to the University of Missouri’s medical center. “It started with a resident who was referred to me from an out-of-area REALTOR®, who then got hired after completing the residency in the ER department,” Moore says. “It just spreads.” This year, he estimates that he and his team handled a dozen transactions from residents. Word of mouth has also helped Claire Black Slotton, CRS, with First Street Real Estate in Davis, California, become the go-to REALTOR® for multiple departments at the University of California, Davis. “I get people who come to me and say, ‘I asked three different people, and every single one of them gave me your name.’ I have several departments where that happens on a regular basis.”
Working with Parents
College and university faculty and staff might be the greatest proportion of college town buyers, but depending on the market, parents and investors can be large client sources as well. In Columbia, rental rates are inflated by 25 to 50 percent because landlords are renting by the bedroom instead of by the building or unit, Moore explains. “That’s why up to $250,000, it is cheaper to purchase in Columbia, Missouri, than it is to rent,” he says. “I tell the parents, ‘Let me put your kids in a house for four years and you will make money. Not only will your kid live for free, and you’ll make money off their two or three roommates, you’ll make a little bit of money in four years when you sell it.”
an exhibit in her office, and she books local musicians to play. While Slotton loves to cook and hang out with large groups of people, the art exhibits have helped her build her client base of University of California, Davis, faculty and staff. “Over the years I’ve become friendly with the head of a particular department [at UC Davis], which is hiring extensively now, and all the new hires have been using me,” Slotton says. A typical house within the East Acres neighborhood in East Davis, California. UC Davis ranked No. 8 on a list of the top 10 most expensive college towns in the country, according to Realtor.com.
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beginning coursework
Marketing 101
Don’t neglect internet marketing. That’s how parents, investors and new hires who go it alone will find you.
Microeconomics Intro to College towns aren’t generally Relativity boom towns, but that means they don’t tend to experience busts, either.
Beyond semester start times, rental market practices can dictate purchasing times. For example, in Davis, California, September leases must be signed in March.
Political Science
Get involved with college- or university-related planning and community groups to stay on top of zoning changes and college construction plans.
However, that math doesn’t work out in Davis, Investors Also in the Mix which a 2015 Realtor.com article ranked No. 8 If a college market is a good investment for on the top 10 list of most expensive college a parent, then it’s likely on the radar of nontowns. Therefore, Slotton doesn’t see many parent investors. Pepine deals with a lot of parent or investor clients. investor clients. According to National Real As clients, parents tend to be in a hurry, Estate Investor, Gainesville offers strong gross because many are driving in from hours away annual rental yields. to see properties. “They are almost like a reloca“Investors don’t even need to see the property,” tion buyer,” Moore says. “They are in, they buy, Pepine says. “It’s totally a numbers game. If you they are out. They trust my expertise.” can show them the financials, and usually they Pepine says her parent clients don’t always want a 10 percent return, they are fine. It’s a visit the property, relying on their child to select very different sale.” it. “You are doing Facetime or Skyping with the Jackson enjoys working with investors, but parents, showing them what they are purchashe notes that the rental market in Columbus is ing,” she says. in flux right now. The university has mandated Joe Jackson, CRS, with The Jackson Team, that all sophomores, in addition to freshmen, works in Clintonville, a neighborhood in Colum- live on campus. “The university built about bus, Ohio, north of the Ohio State University. 3,800 more housing units,” he says, “so the When dealing with parents, he’s learned to manrental cycle this year has been very soft.” age their expectations of the purchasing process. But even though college or university deci“Because they are out of town, they don’t under- sions can affect the real estate market, the stand the fact that if you want to come and look stability of a large entity that’s employing and at houses on Saturday, I need to know Tuesday bringing in hundreds or thousands of new to get things set up. And, no, you can’t look at a people every year is a boon for REALTORS®. property that’s a [current] tenant rental on Satur- “People are buying and selling at a more rapid day morning at 9 a.m. because the tenant isn’t up.” rate,” Moore says. Also, most of Clintonville’s housing stock was “One of the downsides of being in real estate built in the early 20th century, so two baths and is the fluctuation of income,” Pepine says. “But a renovated kitchen aren’t the norm. “We have being in a university town provides some proparents and students coming from suburban tection from that.” housing. They want to duplicate that at the university, and they can’t,” Jackson says. Gayle Bennett is a writer and editor based in Washington, D.C.
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Social Studies
Attend college or university events to network on the department level.
“ INVESTORS DON'T EVEN NEED TO SEE THE PROPERTY. IT'S TOTALLY A NUMBERS GAME.”
—Betsy Pepine, CRS
Want to set up an investor income stream? Check out Dale Carlton’s downloadable webinar How to Increase Your Income by Working With Investors at CRS.com.
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HELP
WANTED How to find an in-house or virtual assistant who’s right for your business.
By Megan Craig
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After 30 years running a successful office, Mia Patch knew she needed help growing her real estate business. Patch, CRS, and managing broker with S&P International Realty in Miami, felt overwhelmed by the day-to-day administrative functions of running the office. “I got to a place with my business where I was surviving, but I couldn’t do any more without help,” Patch says. “I was in this total panic mode, and I didn’t know where to go or what to do.” So she decided to hire an assistant to take care of those overwhelming tasks. Patch says it’s “one
of the best things I ever did for my business. My assistant takes care of everything so that I can focus on the business of selling real estate.”
Benefits of Hiring an Assistant
Even if you don’t feel ready to make the commitment, hiring an assistant could completely change your business, says Michele Bailey, CRS Candidate, a REALTOR® at ResortQuest Real Estate in Florida. During her third year selling resorts and second homes, Bailey decided to hire an assistant when she became overwhelmed with leads and wanted to prevent mistakes. “I was running around like a crazy person. I felt like I was drowning,” Bailey says. “There’s
no denying what getting some things off my plate did for me.” Her business increased 40 percent in her first year after hiring an assistant—a huge bump she attributes to having found the right assistant for her business. According to the 2015 National Association of REALTORS® Member Profile, 18 percent of REALTORS® use at least one personal assistant, and 43 percent of those assistants work full-time. “The trick is in creating efficient processes so the work mainly goes on auto-pilot with little management needed by the REALTOR®,” says Rachel Shattuck, marketing manager for virtual assistant company RealSupport, Inc., based outside Chicago.
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5 STEPS : HIRING
A VIRTUAL ASSISTANT Think a virtual assistant fits the needs of your office? Follow a few simple steps to hire the perfect assistant from afar.
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Decide what tasks you want your assistant to perform. Is your assistant going to take over customer-facing aspects of your business? Offer administrative support only? Work on projects, like creation of a new website or marketing materials? Be sure you have a plan so you’ll know when the person with the right skills comes along.
2
Hire when you’re not in “crunch time.” Hiring when you’re desperate to fill a position is a sure way to get the wrong candidate, says Bobbi Howe, CRS, a REALTOR® with Keller Williams in St. Joseph, Missouri.
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Tell everybody you’re looking to hire. Take in as many applications as possible, Howe says, so you have a larger pool from which to choose. You never know where the right assistant will come from.
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Consider using an established virtual assistant company. You may not want to be stuck with just one virtual assistant, but using a company means you can instead get a cross-trained team of assistants with a variety of specialties for to-do lists that need more than one area of expertise.
5
Use the “three-deep” method for references. No matter who you’re looking to hire, call their references and ask for three more references from each of those references and call them as well. You’ll have to make a lot of calls, but it will be worth it in the end to be sure you’ve found the right person for the job, Howe says.
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In-house or Virtual Assistant?
Once you’ve decided you need some help in the office, you’ll have to choose what kind of assistant you need—in-house or virtual. In general, virtual assistants are self-employed administrative professionals who work remotely. They can be based locally, nationally or internationally, depending on the needs of the REALTOR®, with work hours ranging from a few project-based hours a week to full-time. Virtual assistants are able to do many of the same duties as in-house assistants, says Bobbi Howe, CRS, a REALTOR® with Keller Williams in St. Joseph, Missouri. In addition to administrative tasks, these assistants are capable of scheduling inspectors, writing property descriptions, preparing flyers and other digital and online marketing duties: “Anything that you use a computer to do, a virtual assistant can do for you,” Howe says. But virtual assistants aren’t the right option for every office. Patch tried to hire two virtual assistants—one in the Philippines and one in the U.S.—before realizing she needed someone live in her office to communicate face-to-face with her and her clients. In some cases, REALTORS® use a combination of virtual and in-house assistants. That shared effort works best for Sven Andersen, CRS, a RE/MAX agent in New England, who has several assistants, some outsourced and some in-house. He says he uses in-house assistants “on the client-facing level,” because he wants people with knowledge about the local landscape for those positions, but he has an inside sales assistant who works remotely. He also outsources all marketing for his team.
“I use two full-time, in-house team members—one person to help on the listing front, managing day-to-day calendar and appointments, and a second person as our closing manager, to make sure the transaction process goes smoothly for the client,” Andersen says. “I have an inbound sales team (which I outsource) that qualifies and handles inbound internet sales leads, and hands these leads off to my outside sales agents. I have also outsourced my marketing efforts to a company that helps with all aspects of my marketing. Finding the correct assistant or company to take something off your plate is extremely important, as it allows more face-to-face interaction with your clients. Hire the correct folks and put them in the right seats within your organization.”
NEW BENEFIT!
Need a virtual assistant? CRS is here to help. Coming soon, CRS will be offering our members a unique program: Specially-trained virtual assistants who are standing by, ready to help your growing business. The program will be rolling out soon, so keep your eyes on emails from CRS.
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COMPARING COSTS HOW FAR AWAY IS TOO FAR FOR A VIRTUAL ASSISTANT?
As with any job, real estate assistants are paid based on several factors. According to research from payscale.com, the average real estate assistant makes about $14 per hour, but pay ranges anywhere from $10 to $20 per hour. Some assistants make commission and bonuses, while others are only given their hourly wages. In the internet age, many barriers to working remotely have disappeared. People can work from anywhere in the world, as long as they have access to a working computer and a phone. But when working with people in the Philippines or farther, you may encounter bad reception, language barriers, power outages and time-zone issues, warns Mia Patch, CRS, S&P International Realty. Virtual assistant Kim Hughes suggests only working with overseas virtual assistants when you have a system in place for them to follow, with specific tasks set forth—and when little communication is needed.
And if you’re just getting used to the idea (and cost) of an assistant, using a virtual assistant service means you can ease into the process. “A benefit of utilizing virtual services is that you only use us when you need us. That means you don’t have to pay for a full-time assistant when you might not have full-time work,” Shattuck says. “You are not responsible for training, restaffing or any of the other overhead of hiring an in-house assistant.”
What to Look for in an Assistant
Your assistant’s qualifications and qualities will vary depending on your specific needs, but the most important quality in all assistants, both in-house and virtual, is their ability to work independently on assigned tasks while also being able to take direction, Howe says. Obviously, the candidate’s skills also have to match the jobs you have planned for your assistant— whether database management,
listing marketing services, updating websites, creating print materials or blogging, the assistant should either already know or be ready to quickly learn how to perform the needed tasks.
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Agents should find out what previous work experience a candidate has and decide how important an assistant with real estate experience is to the business. Sometimes it helps to get someone in the job who has an outside perspective and no real estate experience, Howe says. But in other cases, and especially if the tasks assigned to the assistant will require a lot of real estate knowledge, experience is key to the new hire’s success. “They have to have the initiative to want to make things better,” Howe says. “When you’re bringing on an admin, it’s important to find the right fit where they can grow within your operation to make it better than you ever had it before. You don’t want to have to micromanage every little task they do.” Megan Craig is a freelance writer based in Chicago. For a deeper dive on hiring virtual assistants, download the webinar Get the AdVAntage: Working with Virtual Assistants at CRS.com.
o f REALTORS® use at least 18 one personal assistant ® % of REALTORS use two 2 or more assistants of personal assistants are 46 % licensed of personal assistants are 57 % employed part time of personal assistants work 64% exclusively for one REALTOR® %
SCORING THE ASSIST Source: 2015 National Association of REALTORS® Member Profile
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resources for learning & leisure
THE PRODUCTIVITY paradox A New York Times reporter sets out to determine what separates merely busy people from those who are genuinely productive. By Allan Fallow
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Charles Duhigg’s previous book was all about habits— how they are formed, and how they can be changed. This time out, he says, he wanted to investigate an even simpler notion: productivity. And it wasn’t just idle curiosity that put him on this path. SMARTER FASTER After graduatBETTER ing from Harvard THE SECRETS OF BEING Business School PRODUCTIVE IN LIFE and going to work AND BUSINESS as an investigative by Charles Duhigg reporter at The New Random House York Times, Duhigg $ 380 pages, 28.00 began to witness broad changes in our society and economy—and had an ideal platform from which to comment on them. Duhigg informs us in
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his newest work of behavioral psychology, Smarter Faster Better, that in 1980, more than 9 in 10 American workers reported to a traditional boss. But now, three-and-a-half decades later, an astonishing 35 percent of the American workforce labors as contractors, freelancers or in otherwise provisional arrangements. In Duhigg’s eyes, this means it’s never been more important to understand what drives professionals to perform: “The workers who have succeeded in this new economy,” Duhigg writes, “are those who know how to decide for themselves how to spend their time and allocate their energy.” But first, he wants us to understand that boosting our productivity is not merely a question of being able to cross more and more items off our to-do lists. Rather, it’s linked to our very
quality of life: Productivity, writes the author, is simply an umbrella term for our very human attempts to figure out the “best uses of our energy, intellect, and time as we try to seize the most meaningful rewards with the least wasted effort ... It’s about getting things done without sacrificing everything we care about along the way.” With the internet having dramatically accelerated communications, research, banking and even product delivery, it makes sense that we’re feeling more pressure than ever to optimize the way we get things done. Toward that end, Duhigg examines the eight big ideas he deems essential for making us smarter, faster and better.
Have a Sense of Control
He kicks things off by examining what spurs us into action: Motivation, Duhigg claims, is a skill not
unlike writing or reading, in that it can be learned and perfected. Behavioral scientists have recently established that a sense of control over one’s actions and surroundings is essential to making people work harder and pushing themselves more. They’ve also found that we use choices and decisions— no matter how seemingly trivial these might be—to persuade ourselves that we can exert autonomy over a given situation. How might you put these findings into practice in real life? Duhigg suggests courses of action in four everyday scenarios: “If you are struggling to answer a tedious stream of emails, decide to reply to one from the middle of your inbox. If you’re trying to start an assignment, write the conclusion first, or start by making the graphics, or do whatever’s most interesting to you. To find the motivation to confront an unpleasant employee, choose where the meeting is going to occur. To start the next sales call, decide which question you’ll ask first.” Anyone who has ever tried to engineer group productivity will find some thoughtful takeaways in Duhigg’s discussion of teams— specifically, those that have managed to succeed within notoriously fractious Google; in hospital wards where routine mistakes have disproportionately large results; and on the infamously tension- and rivalry-ridden set of Saturday Night Live. Duhigg’s case studies make clear the urgency of creating a sense of “It’s okay to speak up and take risks” within your team. The goal is to foster an atmosphere of “psychological safety”—a sort of nonpunitive, judgment-free zone where team members aren’t afraid to display their enthusiasm for a shared goal and, critically, their support of one another. At Google, writes Duhigg, so highly do some
team leaders prize giving people control that they “make checkmarks next to people’s names each time they speak, and won’t end a meeting until those checks are all roughly equivalent.”
YO U M I G H T A L S O L I K E …
FASCINATE by Sally Hogshead [HarperBusiness] 352 pages $ 19.02/hardcover
Make Mental Models
Although he wraps it up in some fancy social-science language—“cognitive tunneling”—the author’s look at focus as another facilitator of productivity contains some useful tips for how we can all survive the automatic systems that are increasingly infiltrating our “airplanes, cars, and other environments where a misstep can be tragic.” If you want to sharpen your focus and ward off distractions on the job, Duhigg advises, build detailed mental models of the workday ahead: “Cultivate the habit of imagining, as specifically as possible, what you expect to see and do when you get to your desk.” The payoff could be far more concrete than a mere exercise in visualization—people who learn to master their attention and routinely construct “robust mental models tend to earn more money and get better grades.” In later chapters, Duhigg sketches out the productivityenhancing benefits of setting goals, managing others, making decisions, innovating and absorbing data. In my opinion, the book’s grandiose title oversells the outcomes reported here. By the end of Smarter Faster Better, however, Duhigg had me convinced that productivity rises in lockstep with our willingness to recognize and make the sort of hard choices that others are content to overlook: “Productivity emerges,” he concludes, “when people push themselves to think differently.”
The New York Times best-selling author leads you through the science of fascination and how popular brands use it to make themselves irresistible. SHOE DOG by Phil Knight [Scribner] 400 pages $ 17.40/hardcover The Nike founder tells how he decided to follow an unconventional path and created one of the most iconic brands in the world. THE RISE AND FALL OF NATIONS by Ruchir Sharma [W. W. Norton & Company] 480 pages $ 18.52/hardcover Sharma guides you through today’s global economy as he provides a look at the post-crisis age and the factors that will shape the future. EGO IS THE ENEMY by Ryan Holiday [Portfolio] 256 pages $ 15.00/hardcover In an egocentric modern world, this book takes a look at fascinating figures from history who reached the highest levels of power and success by conquering their own egos.
Allan Fallow is a features editor in Washington, D.C. You can follow him on Twitter @TheFallow.
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MAKING
matches
CRS Qualified Consumer Leads: One year later
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One year has passed since the introduction of the CRS Qualified Consumer Leads program and the stats are pretty impressive: ÄÄNearly 40,000 leads distributed with an average home price of $300,000 ÄAlmost Ä 500 leads closed ÄÄMore than $2.3 million in commissions earned And that’s with 10 percent of CRS Designees participating so far: Those numbers are ready to explode. For those who have used the Qualified Consumer Leads program powered by ReferralExchange, the results have been worthwhile—especially because CRS members are already eligible and can enroll for free through their CRS accounts.
How it Works
The Qualified Consumer Leads program is different from other lead-generation programs because the clients are seeking agents rather than properties. The program relies on online and search engine advertising
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to funnel clients through their consumer-facing website such as TopAgentsRanked.com or AgentMachine.com. Consumers complete and submit a form requesting agents, and are then qualified by trained reps to ensure they are serious buyers or sellers. Consumers are then matched with three
qualified agents based on location, agent characteristics and specific housing needs. That’s where you come in. Once you are matched to a prospect, you will be notified via phone, email and text alerts. You can then decide whether or not you want to accept the referral. If you accept, quickly contact these leads and explain who you are and how you were referred to them. If selected by the client and your deal eventually closes, ReferralExchange will charge you a standard referral fee of 25 percent of commission earned.
How to Sign Up
While non-CRS agents need to qualify for the program, CRS Designees do not, thanks to their advanced education and transactional experience. So if you want to sign up, simply go to CRS.com, log in using your username and password, hover over the CRS Referral Network bar near the top right of the screen, and click on Consumer
➊ ➋
Leads in the dropdown menu. That will take you to a sign-up form. After you complete the form, you’ll be receiving leads in no time. It’s that easy!
What CRSs Are Saying
Patrick Lilly, CRS, broker with CORE in New York City, is a longtime user of the service. “It’s one of my most consistent lead sources,” he says. “I close five or six deals a year.” He gets leads at least twice a month in his high-volume New York City marketplace. For those he accepts, Lilly submits proposals, pitches to them and ultimately lands about half. And these are not paltry deals, he says. Sixty-five percent are listed at more than $1 million and he’s had several priced at more than $2 million. Lilly recommends quick responses to leads—within an hour—and valuable follow-up that offers real market insight. “We send out a proposal, as I’m sure everybody else does, but we also do a lot of follow-ups. We immediately let them know what their competition looks like and other sales we’ve done in their neighborhood, usually within a day,” he says. “We follow up with more information than what’s required.”
➌
(1) After logging into crs. com, hover over Referral Network and click on Consumer Leads. (2) Select the ZIP code areas where you want to receive referrals, and indicate if you want to receive a text for each new referral. (3) Complete your profile, which can be viewed by prospective referrals. It’s important to maintain an up-to-date, complete profile.
Kim Cameron, CRS, with RE/MAX Properties West in St. Louis, has also found success with the program. Her first lead was a listing 10 minutes from her office, which sold quickly and then led to more business. “This $275,000 lead resulted in $970,000 in total transactions— my market’s average is closer to $200,000,” she says. Over the past two years, she has received 42 leads, closed four and has two currently listed, along with 17 prospects in the hopper. Since ReferralExchange partnered with CRS to create the Qualified Consumer Leads program, the number of leads have increased, she says. She too feels follow-up is key and recommends that CRS Designees who sign up have a system in place they can activate as soon as they receive their first lead. “What we often fail to realize is conversion can often occur after the fifth attempt to reach a lead, about the same time many of us give up,” she says. “We don’t stop calling until they respond. These prospects are invited to our client parties, receive holiday cards, monthly market snapshots—anything we can do to connect until they give us a reason to stop.”
TIPS FROM CRS USERS
ÄÄ Spend some time with your profile. CRS Designees have had better luck with an up-to-date, complete profile. ÄÄ When you get a lead, respond quickly, within hours, and provide a proposal. ÄÄ Remind buyers and sellers that they filled out a form at TopAgentsRanked.com or requested to hear from top local agents, and you are one of those agents. ÄÄ Tout your CRS credentials. Tell consumers that you are a Certified Residential Specialist, meaning you have more education and experience than most other agents. Make sure they understand how this separates you from the other agents who may be calling. ÄÄ Follow-up is key. Some consumers are in the early stages of the process and may not list or purchase for months. Be patient and have a plan for follow-up that involves sharing valuable information.
While some agents report instances where a seller already has an agent and is looking for a second opinion, or buyers who are not far enough along in the process to commit, Lilly says that in his experience, Do you have tips for maximizing 90 percent of the leads the potential are qualified and ready of the Qualified Consumer to move, and Cameron Leads program? says that patience is Share them on our CRSConnect the key to higher conFacebook page. versions.
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inside
CRS news from the council
NEW BENEFIT
NETWORKING
at your fingertips A robust customer relationship management tool with extensive networking capabilities is the latest member benefit for CRS members.
Sep Oct
40
Ø
The Council will soon be offering a free subscription to Agentdesks Professional for CRS Designees, and launching an exclusive CRS networking group within the mobile platform. Agentdesks is a multi-pronged new member benefit tool. It’s a collaborative, mobile network of real estate agents, powered by a robust customer relationship management (CRM) app. The CRM allows you to organize your clients, properties and communications in one place while you’re on the go. With each contact, you can track your communication history. For buyers, you can upload requirements and see listing matches based on those requirements. For sellers, you can add properties and notes. The app also keeps track of to-do’s associated with each client, reminding you to respond and follow up in a timely fashion. The tool also helps you manage your calendar, sends automated emails to client groups and offers a single inbox for all communications. The second part of Agentdesks is its fantastic networking capabilities. You can network with your contacts and join the private, exclusive
The Residential Specialist trsmag.com
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CRS networking group, which shows the activities of other CRS agents. It also allows you to match your buyers with properties and increases the reach of your listings, meaning you can close deals through the network. In areas where Agentdesks is widely used, the company averages five high-quality matches generated per agent per day. Users can also generate referral leads through the network. Beyond these features, CRS Designees also have access to other Agentdesks Professionallevel features: ÄAn Ä analytics dashboard ÄWorkflows Ä ÄCustom Ä e-mail templates ÄDirect Ä property feed from MLS/IDX CRS members also receive a 25 percent discount for Agentdesks premium and team levels. This member benefit is rolling out now in select markets. To see if Agentdesks is available in your area and to sign up, contact CRS Customer Service at 800-462-8841 or email crshelp@crs.com.
learn from the
I BUILT THAT
BEST
strategies from the industry’s top educators
5 reasons to develop your new construction business. By Mike Selvaggio, CRS
After thousands of new home sales and managing many new-home accounts in Delaware, Pennsylvania and Maryland, I understand the personalities, needs and opportunities associated with new construction sales. And I can sincerely say it is a tremendous way to generate income. Here are five reasons you should consider turning your attention toward the newhome builders and developers in your area.
1
Reason
An influx of buyers (you don’t need to prospect)
The good news is there may be a stream of buyers who arrive at your model home. The bad news is there may be a stream of buyers who arrive at your model home—at the same time. You may not have the luxury of spending all the time you need with every buyer, so it is important to learn “knock out” questions to identify the tire kickers. One great script for this is to say, ”Folks, as you can see, we are very busy today and I want to make sure I meet everyone’s needs. So, who is here to buy a house today?” As the salesperson, you do not need to generate the leads, since that is generally the builder’s responsibility. Your real job is to get the deposit, and that is where you earn the big bucks.
2 Reason
Easy seller leads
Sure, you get paid for selling the houses on a new-home site, but that is only the beginning. Sooner than you might think, these buyers may be moving again, so stay in touch with these contacts. Additionally, a large percentage of new-home buyers, especially in a move-up community, need to sell their existing house. The nice thing
is that they are usually motivated to sell and will most likely price their current house that way.
3
Posted hours
4
One seller, many listings
Reason
When is your quitting time? Bet you don’t know. Well, a new home site has hours, so sometimes you are open and sometimes you are closed. It’s a nice change of pace from the all-day hours of most residential real estate. Reason
Usually, if you have 10 listings, you interact with 10 sellers; not in new construction. Although the builder may be demanding at times, remember he or she is the only seller you have to deal with. That person can represent hundreds of current and potential sales. Exceeding expectations is the rule: Over-serve your client.
5 Reason
CRS INSTRUCTOR
Own properties yourself
Think about the benefits of owning one or more properties and the security it can bring. As a builder representative, you might even experience the opportunity to buy one of the builder’s products, and possibly at a preferred price. No matter what the price, you know where the market is heading. For a deeper dive on new construction, including how to collaborate with builders and developers, find land and broker the deal, research and plan the product, market and show the homes at varying stages of completion, and farm the community to capture resale opportunities, check out the new CRS course, Turning New Homes Into Ongoing Revenue at crs.com/education/courses/ turning-new-homes-ongoing-revenue.
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The Council of Residential Specialists
Mike Selvaggio, CRS, is a Certified CRS Instructor and broker/owner of Delaware Homes Real Estate in Wilmington, Delaware.
Mike@Selvaggio.com Twitter: @MikeMyCoach MikeMyCoach.com
crs.com
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Sep Oct
CRS
connect
YOUR CRS
network
expand your network
WEST
Barbara Dervan, CRS, broker with Fox Residential Group in Manhattan, received a call referring a couple relocating to New York City from the West Coast. Dervan was grilled by the referring agent, the buyers’ financial advisor and the clients. The reason: The buyer was a famous sports figure. The couple’s wish list included a four-plus bedroom apartment, private outdoor space, new construction and a building that would allow a purchase through an LLC. Realizing the client was recognizable, Dervan created an alias, and advised the couple to arrive at appointments wearing hats and glasses. After a four-month search, she located the perfect property, but it was offered only as a rental, and the “owner” had not even closed. With moments to spare before her clients left for a trip overseas, the parties reached an agreement and closed. The deal was great for Dervan, and the referring agent received a $100,000 referral check. CONNECTION PERFECTION
WEST
WEST
HAWAII ...sharing Aloha through excellence and experience...
Nancy D. Metcalf, CRS REALTOR®, Vice President RB-16599
CRS of the Year, 2003 Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com Celebrating 25 years assisting clients! 1991-2016
WEST
Seattle & the ‘Burb’s Serving Seattle, Bellevue, Kirkland, Redmond, Bothell, Duvall, Lynnwood & Woodinville
Barb Avery
Managing Broker, CRS, GRI, I-Pro, SRES, WCR
RE/MAX Northwest Realtors
888-255-2272 (Call-Barb) 206-226-2879
Craig Zager
SeattleSuburbs@yahoo.com www.SeattleSuburbs.com
Relocation, city-wide to world-wide. Seniors Specialist/Estate Specialist Voted Best in Client Satisfaction multiple years —Seattle Magazine
WEST
WEST COLORADO
Hawaii?
www.JamesHawaii.com
Joan M. Pratt
29 years of “Experience You can Trust”
DenverMetroReferrals.com
720-506-3001 RE/MAX Professionals
“Elevate Your Expectations” « « « « « Voted Five Star Agent for Overall Satisfaction for 5 Straight Years!
Sep Oct
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James E. Lewis (R) CIPS, CRS, GRI, SRES® Cell: 808.225.0569 RB-14807 Email: J.Lewis@Realtor.com Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker® and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.
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Over 700 million in Tahoe sales
Sell Sell phone: phone: 775.901.4663 craig@CraigZager.com
www.LakeTahoeAgent.com
WEST
Thinking
MS, CRS, CLHMS, CDPE, CARI
Selling Lake Tahoe since 1989
Reach more than
30,000
Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127
CRS peers with your ad here. WEST
WEST
WEST
CALIFORNIA’S MONTEREY PENINSULA
A trusted name on the Monterey Peninsula for nearly 50 years!
(925) 251-2536
Terry McGowan CRS, GRI, ABR, SRS, e-Pro, SRES Cal BRE# 01126129
25% Referral Fee!
Sotheby’s International Realty 831-236-7251 terry.mcgowan@sothebyshomes.com www.terrymcgowan.com
KRISTY PEIXOTO & COMPANY Estates, Ranches and Land Realtors... EstatesandRanches.com
CalBRE #01256255
NORTHEAST
Specializing in helping You reach Your Real Estate goals since 1991!
MIDWEST
Your referral source for the greater
CANADA
Serving the Greater Cleveland, Ohio Area for Over 15 Years
Pittsburgh
Jackie Collesi, CRS
REALTOR ®
area
Office: 216.751.8550 Cell: 216.780.8607 I help clients make the Wright move Nancy Wright, ABR, CRS, GRI
RE/MAX Realty Brokers 5608 Wilkins Ave. Pittsburgh, PA 15217 OFS: 412-521-1000 x170 CELL: 412-508-0040 nancywright@remax.net
SOUTH
RE/MAX Hallmark Lind Group Realty Ltd., Brokerage Aurora Ontario Canada
Quality Service Award Top 3% Company Wide
Toll Free: 1-888-727-8223, ext. 228
Email: jackiecollesi@howardhanna.com Website: www.jackiecollesi.howardhanna.com
SOUTH
www.hallmarklindrealty.com
Fax: 905-727-2230
E-mail: lenard@hallmarklindrealty.com
SOUTH
Sandra Jean LaBarbera
Kent Redding BROKeR, gRi, CRs, ABR
RELOCATION SPECIALIST “Succeed with Sandra Jean” Certified Real Estate PRO
the Kent Redding group Berkshire Hathaway
Broker,ABR,CLHMS,CRS, SRES,REALTOR, Since 1984
texas Realty
512.306.1001
DIRECT: 919-418-2400 Serving: Raleigh, Durham, Chapel Hill, Research Triangle Park, Wake Forest & Surrounding Counties, North Carolina
Austin, texAs
www.FindRaleighHomes.com Email:sandra@sandrajean.com
Kent@CallKent.com www.CallKent.com
RE/MAX United, 9131 Anson Way, Raleigh, NC 27615
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CRS
connect
PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS
expand your network
SOUTH
SOUTH
EDIT LEADING THE WAY IN SOUTH FLORIDA REAL ESTATE GARY LANHAM
Group Leader Associate Broker CRS, CIPS, ABR, ePRO
954.545.5550 (office) 954.695.6518 (cell) gary@garylanhamgroup.com www.GaryLanhamGroup.com
SOUTH
SOUTH NAPLES, BONITA SPRINGS, ESTERO, FT MYERS—FLORIDA
Marie Pimm
ABR, CRS, SRES, GRI, CDPE
PA Realtor® CRS, CIPS, e-PRO, GRI
Cell: (239) 770-3383
Serving Northern Virginia and the Dulles Tech corridor
Email: mpimm@comcast.net www.MariePimm.com
Re/Max Premier offices in
Ashburn, Fairfax and Leesburg
Direct: 703-999-6535 Office: 571-210-SELL
lisacromwell@remax.net www.LisaCromwell.com
MariePimm.com
SOUTH
24201 Walden Center Dr. Bonita Springs FL 34134
SOUTH
THE DS TEAM DEFINES MIAMI BEACH LUXURY REAL ESTATE
DI N A G O L DE N TAYER | SL ADJA STANT IC Estate Agents
305.799.7697 | sladja@onesothebysrealty.com The Only Number You Need for Your Miami Beach Referrals
MikeMyCoach.com
www.
TheDSTeam.com
Sep Oct
44
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(302) 584 5590
Leave YOUR HOME as is, or personalize the newsletter by adding your photo, logo, address and phone number to the mailing panel.* You can also substitute any article in the newsletter with one of your own. Edit the newsletter e lectronically by downloading the Microsoft Word version at crs.com/ yourhomenewsletter. PLEASE NOTE: The images featured in the YOUR HOME newsletter may only be used within the PDF version of the newsletter. These images may not be reproduced or republished elsewhere outside of this newsletter format. CRS members are free to re-use the text of the articles contained in the newsletter, however.
REPRODUCE
Do it yourself with your office copier, or take the newsletter or electronic file (in addition to your photograph and any information you want inserted) to a printer who can prepare and reproduce the newsletter for you.
DISTRIBUTE
MAIL. If you photocopy YOUR HOME or use it “as is,” please note that it is designed to be folded in a trifold with the mailing panel facing outward. Postal regulations require that trifolds have two closures (tabs or tape) on top. For your convenience, we have placed asterisks (*) where the closures should be. Be sure to check with your local mailer or post office to make sure you have prepared your mailings properly. ELECTRONIC FILE. Attach the customized newsletter file to an email to your clients or create a web link to the file on your website. Consult your webmaster or technician to make sure the file is prepared correctly for these purposes, since these basic instructions will vary by person and system. * This newsletter is for the exclusive use of CRS members.
your
home S E P/ O C T 2 016
Tips and tre nd s for homeow ners, buyers and sellers
fall fixes Yes, it’s true: Fall is here, and that means winter is just around the corner. The changing of the seasons is always a good time to invest in a little home maintenance so your abode is running smoothly and you catch any potentially large (and expensive) problems before they get out of hand. Follow this checklist and you’ll be in good shape for the winter. Checklist provided by Pillar To Post Home Inspectors.
INTERIOR
PLUMBING
HEATING AND COOLING
ROOF
ÄCheck Ä ceiling and surfaces around windows for evidence of moisture. ÄCheck Ä caulking around showers, bathtubs, sinks and toilet bases. ÄEnsure Ä all stairs and railing do not have any loose sections. ÄTest Ä all fire and safety systems, including carbon monoxide detectors. ÄClean Ä or change furnace filters. ÄKeep Ä area around heating and cooling equipment clear. ÄFor Ä boiler systems, check water level and shut-off valve for leaks.
ELECTRICAL
ÄPeriodically Ä check for exposed wiring and cable. Replace as necessary. ÄCheck Ä all lamp cords, extension cords and receptacles for wear. ÄTrip Ä circuit breakers every six months and ground fault circuit interrupters monthly.
DOORS & WINDOWS
ÄLook Ä for loose or missing glazing putty. ÄCheck Ä caulking for deterioration at the openings and joints between dissimilar materials. ÄCheck Ä weather stripping. ÄCheck Ä for broken glass and damaged or missing screens.
ÄCheck Ä all faucets, hose bibbs and supply valves for leaking. ÄCheck Ä for evidence of leaks around and under sinks, showers, toilets and tubs. ÄInspect Ä lawn sprinkler system for leaky valves and exposed lines. ÄCheck Ä the main water shut-off valve for operation and leakage. ÄCheck Ä for any missing, loose or damaged shingles. ÄLook Ä for open seams, blisters and bald areas on flat roofs. ÄClean Ä gutters, strainers and downspouts. ÄCheck Ä flashing around all surface projections, sidewalls and protrusions. ÄTrim Ä back all tree limbs and vegetation away from the roof.
FOUNDATION AND EXTERIOR
ÄCheck Ä foundation walls and floors for cracking, heaving, spalling, deterioration or efflorescence. ÄInspect Ä chimney for loose, deteriorated or missing mortar or bricks. ÄVerify Ä basement and crawlspace has no moisture or leaks. ÄInspect Ä all decks, patios, porches, stairs and railings for deterioration. ÄCut Ä back and trim all vegetation from structures.
BROUGH T T O Y OU B Y Y OUR A GEN T, A MEMBER OF T HE C OUNCIL OF RE SIDEN T I A L SPECI A L IS T S
IL
*
*
EFER R
A
LS!
ER OV
EQUAL HOUSING
DO YOU KNOW SOMEONE WHO IS THINKING ABOUT BUYING OR SELLING A HOME? PLEASE MENTION MY NAME. This newsletter is for informational purposes only and should not be substituted for legal or financial advice. If you are currently working with another real estate agent or broker, it is not a solicitation for business.
OPPORTUNITY
Tips and trends for homeowners, buyers and sellers
TREND Ø
report An open floor plan. Forty-six percent of today’s buyers, regardless of generation, want an open floor plan, according to Trulia. You don’t have to add space to get the open concept going though. Call a contractor to see how your existing floor plan can be opened up.
With rising home prices that boost home equity, many homeowners are opting to remodel rather than move. But any savvy homeowner knows that renovation without an eye on return on investment isn’t a smart move. So stick with remodeling projects that will really increase the value of your home. Here’s five top home-design trends.
Update the bathroom. The National Association of Home Builders (NAHB) says this is the most popular trend, and the ROI is up to 58 percent.* Strong design trends include a walk-in shower and bigger tiles on the walls and floors.
More purposeful kitchen storage. The NAHB says that this is the second most popular renovation project of the year. Think more and deeper drawer banks, and adding a kitchen island and pantries. The ROI is about 67 percent.
Specialize a room or area. Entryways are transformed into mudrooms and basements are being converted into man caves and playrooms. Even a sunny niche can be turned into a useful reading nook.
Embrace hardwood flooring. Homebuyers definitely want hardwoods and they’ll pay for it. The ROI for new hardwood flooring is more than 90 percent, and it’s 100 percent for refinishing existing wood floors.
* All ROI figures from the 2015 Remodeling Impact Report
SAY YES TO CRS
Buying or selling a home can seem like an overwhelming task. But the right REALTOR® can make the process easier—and more profitable. A Certified Residential Specialist (CRS), with years of experience and success, will help you make smart decisions in a fast-paced, complex and competitive marketplace. To earn the CRS Designation, REALTORS® must demonstrate outstanding professional achievements—including high-volume sales—and pursue advanced training in areas such as finance, marketing and technology. They must also maintain membership in the National Association of REALTORS® and abide by its Code of Ethics. Work with a REALTOR® who belongs in the top 3 percent in the nation. Contact a CRS today.
CRS
CLASSROOM COURSES
CRS classroom courses earn either eight credits (for 100-level, one-day courses) or 16 credits (for 200-level, two-day courses) toward the CRS Designation. CRS courses listed below take place from September–October 2016. For more up-todate listings, visit crs.com.
CRS 120—Converting Leads Into Closings Sept. 20—Tulsa, Oklahoma [Greater Tulsa Association of REALTORS®]
CRS 122—Building a Team to Grow Your Business Oct. 19—Honolulu, Hawaii [Hawaii CRS]
918-663-7500
Instructor: Chandra Hall, CRS
Instructor: Chandra Hall, CRS Oct. 3—Gresham, Oregon [Oregon CRS and East Metro Association of REALTORS®] 360-901-0307
Instructor: Mike Selvaggio, CRS Oct. 10—Dallas, Texas [Texas CRS] 214-455-2908
Instructor: Rich Sands, CRS Oct. 11—Santa Fe, New Mexico [New Mexico CRS] 505-610-5025
Instructor: Sandra Hall, CRS CRS 121—Win-Win Negotiation Techniques Sept. 13—Ocean City, Maryland [Maryland Association of REALTORS®] 800-638-6425
Instructor: Robert Morris, CRS Sept. 19—Tulsa, Oklahoma [Greater Tulsa Association of REALTORS®] 918-663-7500
Instructor: Chandra Hall, CRS
808-371-8708
Oct. 21—Hilo, Hawaii [Hawaii Island REALTORS®] 808-935-0827
Instructor: Chandra Hall, CRS CRS 200—Business Planning & Marketing for the Residential Specialist Sept. 7—Baton Rouge, Louisiana [Greater Baton Rouge Association of REALTORS®] 225-761-2000
Instructor: Lee Barrett, CRS Sept. 19—Lexington, Kentucky [Kentucky Real Estate Education Foundation] 800-264-2185
Instructor: Robert Morris, CRS Oct. 5—Charleston, South Carolina [South Carolina CRS]
Instructor: Chandra Hall, CRS Oct. 17—Council Bluffs, Iowa [Nebraska CRS and Southwest Iowa Association of REALTORS®] 520-382-8848
Instructor: Rich Sands, CRS Oct. 18—Fort Walton, Florida [Emerald Coast Association of REALTORS®] 520-382-8848
Instructor: Gee Dunsten, CRS Oct. 27—Helena, Montana [Montana CRS and the Montana Association of REALTORS®] 520-382-8848
Instructor: Chandra Hall, CRS CRS 201—Listing Strategies for the Residential Specialist Oct. 4—Sarasota, Florida [Sarasota Association of REALTORS®] 941-952-3404
Instructor: Gee Dunsten, CRS
Oct. 6—Tucson, Arizona [Arizona CRS]
Oct. 5—Walla Walla, Washington [Washington CRS and the Walla Walla Association of REALTORS®]
Instructor: Mark Given, CRS
520-382-8848
Instructor: Chandra Hall, CRS Oct. 10—St. Charles, Missouri [Missouri CRS]
907-663-7500
520-382-8848
Instructor: Richard Hatch, CRS
Oct. 11—Dallas, Texas [Texas CRS]
Oct. 12—Albuquerque, New Mexico [New Mexico CRS]
214-455-2908
520-382-8848
Instructor: Rich Sands, CRS
520-382-8848
843-297-1836
Oct. 6—Anchorage, Alaska [Alaska CRS] Instructor: Robert Morris, CRS
Oct. 17—Honolulu, Hawaii [Hawaii CRS]
Instructor: Chandra Hall, CRS
866-556-5277
Instructor: Mike Selvaggio, CRS Oct. 12—Dubuque, Iowa [Iowa CRS and East Central Iowa Association of REALTORS®] 563-543-8199
Instructor: Mike Selvaggio, CRS Oct. 20—Savannah, Georgia [Savannah Area REALTORS®]
Oct. 24—Chattanooga, Tennessee [Greater Chattanooga Association of REALTORS®]
Oct. 5—Columbia, Maryland [Maryland/DC CRS]
423-702-7423
Instructor: Pat Zaby, CRS
Instructor: Robert Morris, CRS CRS 202—Effective Buyer Sales Strategies Sept. 28—Bismarck, North Dakota [Bismarck/ Mandan Board of REALTORS®]
410-627-5961
Oct. 10—Atlanta, Georgia [Georgia Institute of Real Estate and Georgia CRS] 404-252-6768
Instructor: Chris Bird
Oct. 5—Edwards, Colorado [Vail Board of REALTORS®]
CRS 205—Financing Solutions to Close the Deal Oct. 19—Indianapolis, Indiana [Indiana Association of REALTORS®]
970-766-1028
800-742-4067
Oct. 18—Savannah, Georgia [Savannah Area REALTORS®]
CRS 206—Technologies to Advance Your Business Oct. 10—State College, Pennsylvania [Suburban West REALTORS® Association and Pennsylvania CRS]
701-255-0712
Instructor: Chandra Hall
Instructor: Lee Barrett, CRS
912-354-1513
Instructor: Mike Selvaggio, CRS CRS 204—Buying and Selling Income Properties Sept. 12—Cupertino, California [California CRS] 949-766-2901
Instructor: Christopher Bird, CFP Sept. 21—Bow, Washington [Washington CRS] 360-901-0307
Instructor: Dale Carlton, CRS Sept. 29—Bow, Washington [Washington CRS] 360-901-0307
Instructor: Dale Carlton, CRS Sept. 29—Morristown, New Jersey [North Central Jersey Association of REALTORS®] 973-425-0110
Instructor: Pat Zaby, CRS
Instructor: Pat Zaby, CRS
610-569-4801
Instructor: James Nellis, CRS CRS 210—Building an Exceptional Customer Service Referral Business Sept. 28—Austin, Texas [Texas CRS and the Austin Local Networking Group] 210-363-9292
Instructor: Robert Morris, CRS Oct. 18—Clarksville, Tennessee [Clarksville Association of REALTORS®] 931-552-3567
Instructor: Robert Morris, CRS Oct. 25—Charleston, South Carolina [South Carolina CRS] 803-348-7780
Instructor: Mark Given, CRS
912-354-1513
Instructor: Mike Selvaggio, CRS
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Sep Oct
ask a
CRS advice from your peers
Q:
STR ANGER THAN FICTION
“Wallpaper in a half bath that was all nude women. Needless to say it was ‘unforgettable!’ And my clients, eight years later, still laugh about it. The in-floor hot tub made perfect sense after that. #canyousaybachelor”
What is the weirdest thing you’ve ever seen during a showing?
“ I SAW A FLOOR MADE OF PENNIES. THAT WAS A FIRST.”
“A red fox inside the house. It was new construction, almost completed, but had a makeshift garage door of plywood. It was winter and Mr. Foxy moved in!” Patty Newell Mortara, CRS, Coldwell Banker, Flemington, New Jersey
“ I was showing a house that Jenny Meers, CRS, Murray Bell Real had eight huge Holli Woodward, CRS, McGraw Estate LLC, Lutz, televisions REALTORS®, Owasso, Oklahoma Florida around the rooms in the “This reminds me that I once showed a condo where the 65to 70-year-old owner insisted on being present. Smoking, he house. All of proudly showed us his collection of Playboy magazines piled them were haphazardly in the main closet. Had to be 25 or 30 years’ Judy F. Smith, tuned into worth ... And no, he was not Hugh Hefner. Maybe a wannabe.” CRS, RE/MAX Professionals, Bill Kuhlman, CRS, Keller Williams the same Omaha, Nebraska Boston South West in Needham, Massachusetts channel. Playing on all of “Without any heads up from the listing office when the the screens was appointment was made, an associate and I went to show a house that was identified as vacant. That was true if it was a documentary referencing human beings. After the alarm went off because “I HAD CALLED TO LET THE about serial no instructions were given regarding an alarm, we quickly disSELLER KNOW I WOULD SHOW killers. You just covered we were at what appeared to be an abandoned exotic zoo. We encountered four caged, agitated monkeys. Though THE HOME AT 5 P.M. THAT can’t make this that took us off guard, we found it very interesting, until the AFTERNOON. WHEN I ARRIVED stuff up. We left tour escalated. Being near the garage entrance we decided WITH MY BUYERS, WE FOUND to look there next, and what greeted us? A caged six-foot and never went Komodo dragon! Quickly getting out of the garage, we headed A POOL PARTY WAS GOING back.” into the main part of the house, empty and quiet. We talked about how crazy this was and continued the tour, only to find more than 20 glass aquariums loaded with turtles, lizards and exotic snakes, including pythons and rattlers.” Kim Knapp, CRS, Coldwell Banker Vanguard, Fleming Island, Florida
Sep Oct
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The Residential Specialist trsmag.com
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“I once had a listing where the buyer’s agent asked after the showing if we were charging extra for the lady under the bed. It turned out that Mrs. Seller had tried to hide under the bed for the showing. The buyer thought there was a pillow sticking out and tapped it with his foot and it moved.”
ON WITH 10 NUDE GUESTS. IT WAS A SURPRISE FOR ALL!”
Karlene Schulba Westfall, CRS, Better Homes & Gardens/ Ventura, San Jose, California
Chris Schilling, CRS, Turbo Realty, Houston, Texas Go to Facebook.com/ CRSConnect to join in the fun.
FEBRUARY FEBRUARY 9-10, 9-10, 2017 2017 ARIZONA ARIZONA GRAND GRAND RESORT RESORT && SPA SPA PHOENIX, PHOENIX, AZ AZ
In In 2017, 2017, the the brightest brightest stars stars in in residential residential real estate will head to Phoenix, real estate will head to Phoenix, AZ AZ on on February February 9-10 9-10 for for 22 days days of of unparalleled unparalleled networking networking opportunities, opportunities, business business building building strategies, and the chance to hear insights strategies, and the chance to hear insights from from top-producing top-producing agents agents and and industry industry leaders. Invest in the future of your leaders. Invest in the future of your business business and and register register today! today!
REGISTER REGISTER NOW NOW CRS CRS members members Non-members Non-members
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Early bird Early bird pricing pricing ends Nov.15 ends Nov.15
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$549 $549 $613 $613
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FOR ONLY $549! crs.com/sell-a-bration crs.com/sell-a-bration
Regular Regular price price
$649 $649 $699 $699
Don't forget to for preDon't forgetone-day to register register foronour our preconference course Feb. conference one-day course on Feb. 88 CRS CRS members members Non-members Non-members
REGISTER REGISTER BY BY NOVEMBER NOVEMBER 15 15
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$130 $130 $160 $160
EARLY EARLY BIRD BIRD SPECIAL SPECIAL ENDS ENDS NOVEMBER NOVEMBER 15 15
This is home. It’s a place called confidence. It’s home because your clients feel positive and sure about the choice they’ve made. In partnering with you, they place their trust in your advice, counsel, and expertise to lead them there. Our commitment is to always be there for you, and them, on this journey home.
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