residential
may + june
B US I N E S S I N TELL IGE N CE FOR THE CR S PROFE S S IONA L
2017
THE
SPECIALIST ALSO IN THIS
ISSUE
THINK
FRESH 30 ripe ideas to add flavor to your marketing recipe
Better outdoor living spaces How to win a bidding war When boomers downsize
Put your office on autopilot Sell that luxury property Return of the teardown
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contents
May 20 June 17 vol. 16, no. 3
features 18
THINK FRESH
30 tips to empower your marketing efforts every day. By Donna Shryer
24
ON THE INSIDE, LOOKING OUT
Owners and buyers look to increase value, livability with improved outdoor spaces. By Megan Craig
28
BATTLE OF THE BIDS
Increasing the odds of coming out on top in a bidding war. By David Tobenkin
HONEY, I SHRUNK THE HOUSE 32 Baby boomers are downsizing en masse. For enterprising CRSs, their appetite for small homes represents a big opportunity. By Matt Alderton
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May June
contents
departments
May 20 June 17 vol. 16, no. 3
6
4 VANTAGE POINT
By Leigh Brown, CRS
5 SHORT LIST
Quicker searches for homes; aging in place; gear up for summer; best date to list; agents are still wanted.
14
9 COOL STUFF
Products to upgrade your closet space.
10 SMART SOLUTIONS
5 simple ways you can use technology to operate your office more efficiently. By Gwen Moran
12 INSIDE TRACK
9
5 trends in luxury home marketing. By Gayle Bennett
14 WINDOW OF OPPORTUNITY
Tearing down, building up—what homebuyers do when they can’t find the features they want. By Daniel Rome Levine
inside CRS 39 NEWS FROM THE COUNCIL
16 PEER TO PEER
Debbie Reynolds, CRS, Berkshire Hathaway HomeServices PenFed Realty, Clarksville, Tennessee
New CRS products, a new consumer webpage and a new requirement for the CRS designation.
42 LEARN FROM THE BEST
Employ these marketing solutions to ensure past clients return again and again.
36 WORK + LIFE
Mastering Civility: A Manifesto for the Workplace by Christine Porath
+
10
By Pat Zaby
Reviewed by Allan Fallow
43 CRS CONNECT
Dinner Delivered Popular meal delivery services
52 ASK A CRS
What would be your superpower?
52
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.
TOP 10 COUNTIES WITH HIGHEST PROPERTY TAXES How does your county compare?
5 WAYS TO GENERATE LEADS WITH FACEBOOK And how are other agents using the platform?
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 Challenge of Ethics CRSs offer their perspective on the biggest ethical issues REALTORS® face today, and how they addressed specific challenges. Do’s and Don’ts of Listing Presentations Learn how CRSs created their listing presentation, how it became the finely-tuned pitch, what they ditched to arrive at their winning formula—and how it helps them beat the competition.
EDITOR Michelle Huffman mhuffman@crs.com 800.462.8841 CONTRIBUTING WRITERS Matt Alderton Gayle Bennett Megan Craig Daniel Rome Levine Gwen Moran Donna Shryer David Tobenkin BOARD OF DIRECTORS 2017 President Leigh Brown, CRS 2017 President-Elect Gary Williams, CRS 2017 First Vice President Michael Burkhard, CRS 2017 Immediate Past President Janelle Pfleiger, CRS At-Large Member Shawn Cunningham, CRS At-Large Member Michael Selvaggio, CRS At-Large Member Mark Shepherd, CRS At-Large Member Stephen Stewart, CRS At-Large Member Vinnie Tracey, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny PUBLICATION MANAGEMENT
ADVERTISING MANAGER Chuck Gekas Director of Business Development, CRS 312.321.4443 cgekas@crs.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 2017 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.
Convert More Online Leads Learn how CRSs are crafting plans to follow up with online leads to convert as many as possible.
PLUS:
Learn about new apps or systems that can enhance a real estate agent’s success. 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 2017 editorial calendar online at crs.com.
WHO ON YOUR
TEAM could benefit by receiving a personal copy of The Residential Specialist?
STAY INFORMED
www.glcdelivers.com
The Council of Residential Specialists provides
Publishing Manager Phil Malkinson Art Director Scott Oldham
Managing Common Pain Points What are the most difficult parts of a real estate transaction for the buyer or the seller, and what solutions do REALTORS® offer to close the sale?
superior education, exceptional networking opportunities and critical resources. The Council’s
crs.com
flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business. 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 Leigh Brown, CRS, ABR, CIPS, SRES 2017 president
GOING THE
extra mile Ø
Photo: Mike Anderson
YOU HAVE TO STAY VIGILANT ON THE BIGGER ENVIRONMENT AROUND OUR INDUSTRY EVEN WHILE YOU’RE CRUSHING IT.
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Is it just me, or does life move faster when you’re in real estate? I believe that every CRS I’ve spoken to has expressed how grateful they are to be helping clients in the spring market. It’s easy to get tunnel vision when you’re in the middle of those transactions, though! You can barely get all the showings completed, all the phone calls made and all the clients tended before you collapse at midnight—I get it! However, you have to stay vigilant on the bigger environment around our industry even while you’re crushing it. Now is the time for you to consider making that investment in your industry. With tax reform remaining a key topic in state capitals and in Washington, D.C., REALTORS® have to remain at the forefront of those discussions so we can protect all of the busy springs to come! Our initiative this year is to create the Complete REALTOR®—the CRS who is engaged not only in being profitable, but also in the local community and in the future of the industry. We are the leaders in education. We are the leaders in production. We are the leaders in volunteer service. Now it’s time for us to be the leaders in advocacy as well. It’s easy to get involved with the REALTOR® Party. Your annual contribution of $1,000 (or more) is your insurance for your business. All you have to do is ping me so I can connect you to your state representative. Let’s all showcase to our consumers that they want a REALTOR® who is #MoreThanHouses. Consumers are already hearing the call of the #OneHour and the #MoreThanHouses hashtags, and asking for THAT kind of REALTOR®. The best. The CRS who is something extra. Join me. Our profession needs YOU.
[short list]
+ industry headlines + statistics + trends
THE SEARCH IS
narrowing
Ø
The amount of time it takes to find a home is decreasing, though still elevated over a decade ago, and online search is largely to blame. Back in 2001, it took just seven weeks to find a home, but by 2013 that time had almost doubled to 12 weeks. But per a recent NAR report, Real Estate in a Digital Age, that number now rests at 10 weeks. The average number of homes viewed was also 10—which was the same number they saw in 2013 when the process was a bit longer. Consumers use of the internet seems to lengthen the process for the consumer, but not necessarily for the agent. Fortyfour percent of all consumers started their search online (up from 38 percent last year), and that figure increases as the buyer gets younger—and younger buyers make up larger swaths of the overall buying population, according to NAR data.
Another unavoidably dominant trend: 72 percent of buyers are using their mobile device to find properties (though most aren’t using that device to find an agent)—up from 57 percent last year and 48 percent two years ago. Online, property photos and detailed information were naturally what buyers are looking for most, but 50 percent of respondents also said they found virtual tours very useful—up from 42 percent the year before and 40 percent two years ago. That figure is followed by neighborhood information and interactive maps at 44 and 41 percent. While virtual tours are gaining steam, drones aren’t. Fifty-six percent of REALTORS® say they don’t use them, and only 18 percent say they plan to in the future. Only 3 percent personally use them.
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[short list]
REMAKE/remodel Ø The most popular specialty remodeling project: Aging in place. More than 41 percent of contractors reported an increase in revenue from aging in place projects, according to the Joint Center for Housing Studies of Harvard University. The study also indicated that remodeling is only gaining in popularity among homeowners 55 and older. Among those 35 to 54, who used to dominate the remodeling market a decade ago, and those under 35, home remodeling is dropping. The JCHS predicts that trendline will continue for another decade. The second and third most popular specialty projects have been gaining steam for some time: Energy efficiency and home automation are becoming more popular among homeowners. One-third of owners reporting projects to the JCHS remodeling report said energy efficiency was a motivation for their expenditures. “Ongoing concerns about environmental issues have also boosted demand for sustainable home improvements, including projects that improve water conservation and that use products that are
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rapidly renewable or recycled/ reclaimed,” the report says. Many remodelers report that home automation is the fastest-growing project area. According to the report: “While the housing industry has tried to make homes more connected for decades, home automation products are finally catching on with consumers. Wireless technology has made it easier for households to manage smart devices in their homes, and growing consumer interest coupled with increased competition has served to lower prices.” Outdoor living (see p. 24 for more on that), like the addition of decks, porches and patios, is also an increasingly popular project, followed by multigenerational housing. There is an overall growth in the home remodeling industry, caused by owners spending more, not more owners spending. The average owner is spending nearly $3,000, which is about $300 less than the peak of remodeling expenditures in 2007. However, only 30 percent of homeowners are reporting any spending at all—a figure that has remained steady for more than two decades.
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GEAR UP FOR SUMMER
With warm weather approaching, it’s important that homeowners and sellers make sure these features, on full display during this season, are tuned up. It’s also helpful for homeowners to make sure their homes are properly maintained throughout the year.
Air conditioner
ÄÄ Inspect the unit to make sure it’s in good working condition. ÄÄ The A/C must be leveled and free from obstruction.
Deck
ÄÄ Maintain your deck by ensuring it’s stained or painted on a regular basis. ÄÄ Check the overall structure. ÄÄ Ensure there are proper footings to prevent sinking. ÄÄ Proper guardrails should be at least 36 inches to 42 inches tall.
Garage
ÄÄ Ensure the entrance has a working firerated door with auto closure. ÄÄ Check safety lasers on automatic door openers are aligned and operational. ÄÄ Use a wood block to test door closure for pressure. ÄÄ Rodents/pest prevention: ÄÄCheck for common rodent entry points, including open gaps in the exterior. ÄÄAnother common entry point is where the A/C lines enter the house. This article was provided by Pillar To Post home inspectors. For more information, go to pillartopost.com.
spring FEVER
Ø
The best time to put a house on the market, specifically, is a Saturday in early May. Homes listed between May 1 and May 15 sold nine days faster and for 0.8 percent more than any other time of the year, on average, according to a Zillow study that surveyed the best time to list in 25 different metro areas. In general across the U.S., the best day of the week to list is a Saturday, when homes get 20 percent more views, followed by a Friday, when properties receive 14 percent more views. Of course, all real estate is local, so markets vary. In
Seattle, homes listed in the ideal window, May 1 to May 15, sold for 2.5 percent more, the highest average sales premium. In that market, the ideal day is a Thursday. The lowest premiums occur in New York/northern New Jersey and the Miami/ Fort Lauderdale area, which only see a 0.7 percent bump. Additionally, plenty of markets have slightly different ideal two-week time frames. Miami’s ideal time is as early as March 1 to March 15, while San Francisco’s is as late as May 16 to May 31, and several markets’ ideal times are also in April, including Washington, D.C., Atlanta and Baltimore.
BEST DATES TO LIST A HOME, BY METROPOLITAN AREA Metro Area
Ideal Time Frame to List Home
Days Sold Faster than Average
Average Sales Premium (%)
Average Sales Premium ($)
Ideal Day of the Week to List
United States
May 1–15
9
0.8%
$1,500
Saturday
New York/Northern New Jersey
May 1–15
7.5
0.7%
$2,600
Saturday
April 16–30
15
1.0%
$5,600
Friday
Chicago, IL
May 1–15
12.5
1.3%
$2,500
Friday
Dallas-Fort Worth, TX
May 1–15
9
1.3%
$2,400
Saturday
Philadelphia, PA
May 1–15
9.75
1.0%
$2,000
Friday
Washington, DC
April 1–15
15
1.2%
$4,500
Thursday
Miami-Fort Lauderdale, FL
March 1–15
8
0.7%
$1,500
Saturday
Atlanta, GA
April 1–15
19
1.4%
$2,200
Friday
Boston, MA
April 16–30
13.5
1.2%
$4,500
Wednesday
San Francisco, CA
May 16–31
5.5
1.3%
$10,200
Friday
March 16–31
17.5
1.5%
$1,900
Sunday
Riverside, CA
April 1–15
15
1.1%
$3,400
Friday
Phoenix, AZ
April 16–30
14.5
0.8%
$1,700
Saturday
Seattle, WA
May 1–15
15
2.5%
$9,300
Thursday
Minneapolis-St Paul, MN
May 16–31
6
1.4%
$3,200
Friday
San Diego, CA
April 1–15
13
1.3%
$6,200
Saturday
St. Louis, MO
May 1–15
10.5
1.3%
$1,800
Saturday
Tampa, FL
March 1–15
10.5
0.9%
$1,500
Saturday
Baltimore, MD
April 1–15
21.5
0.9%
$2,300
Saturday
Denver, CO
May 1–15
8
1.7%
$5,600
Friday
Pittsburgh, PA
March 16–31
17
0.9%
$1,100
Saturday
Portland, OR
May 1–15
16.5
2.0%
$6,300
Friday
Charlotte, NC
May 1–15
12.25
1.1%
$1,700
Saturday
Sacramento, CA
April 1–15
17.5
2.0%
$6,600
Saturday
San Jose, CA
May 1–15
9
1.6%
$14,900
Wednesday
Los Angeles-Long Beach-Anaheim, CA
Source: Zillow
Detroit, MI
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[short list]
CONSIDER THE source
Ø
Despite fears that the increasing availability of real estate information to consumers would eventually erode the role of the real estate agent, the reality is the opposite: Agents are as valuable as ever. Buyers and sellers continue to seek out the help of a professional, according to NAR’s Home Buyer and Seller Generational Report 2017. Nine out of 10 sellers worked with a real estate agent to sell their home. And agents are doing a good job of getting sellers what they want: The final sales price of a home was a median 98 percent of the listing price, and the homes were on the market a median of four weeks. There is no shortage of buyers looking to work with an agent, either: 88 percent do, and that figure is even higher with younger buyers
+ industry headlines + statistics + trends
100% 80%
60%
(those younger than 36), at 92 percent. They primarily want agents to help find the right home (50 percent) but are also looking for help to negotiate the terms of the sale and with price negotiations. For those under 36, help in understanding the buying process is key (74 percent). Trust is paramount when selecting an agent. Finding an agent that is trustworthy and honest was the most important factor for buyers. That was followed by agent experience and the reputation of the agent. And all that helps with referrals, which are increasingly important to buyers, sellers and agents: 52 percent of younger buyers found their agent through referral from friends, neighbors or relatives, and that number is growing—it’s up from 46 percent last year. Among those 37 to 51 years old, 39 percent found their agent through referrals. On the sales side, 64 percent of recent sellers used a referral or the same agent they used in the past, and that number jumps to 74 percent for home sellers 36 and younger. The typical seller recommends their agent at least twice, and one-third of sellers recommend their agent three or more times.
INFORMATION SOURCES USED IN HOME SEARCH, BY AGE
40%
(percent of respondents) All buyers 36 and younger 37 to 51
52 to 61 62 to 70 71 to 91
Source: National Association of REALTORS® Home Buyer and Seller Generational Report 2017
20%
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WARDROBE
[cool stuff]
A trip to the closet and picking out what to wear is a part of your daily routine. Upgrading your closet and the way you store your clothes with easy fixes can make this everyday task a better experience.
upgrade
acquisitions on a theme
GET ORGANIZED AND INSPIRED
Free
The ClosetSpace app by Stylitics is the perfect tool to help with both closet organization and style inspiration. Simply upload photos of the items in your closet, then catalog them by style, brand and/or color. Assemble and plan your outfits ahead by syncing to Google calendar. And for last minute outfit inspiration, browse photos from 135+ bloggers based on the weather, temperature and occasion.
89.99
Keep your shoes organized without taking up all the floor space in your closet with the IKEA STÄLL Shoe cabinet. Its sleek and narrow design allows it to stand close to the wall above the baseboard to take up minimal space. Holds about eight pairs of shoes.
itunes.apple.com
ikea.com/us/en
DISPLAY IN STYLE
Your collection of scarves and ties can take up a lot of drawer space. Instead, organize and keep them on display in your closet or from a hook with the Umbra Triangle Pendant Organizer. The geometric shape in gold or rose gold offers a modern, simplistic look. Plus, the metal won’t snag any delicate fabrics.
14.99
$
containerstore.com
$
SLEEK STOWAWAY
KEEP IT FRESH
Varies
LIGHT IT UP Adding lighting fixtures is an easy way to upgrade your closet space. Rather than searching for clothes in dim lighting or under stark fluorescent lights, Kichler’s LED Linear lighting options offer a cost-effective alternative. The small, sleek designs will add a warm glow to your wardrobe and make getting dressed a more pleasant experience. Lighting can even be added to drawers to illuminate specific items, such as jewelry and other accessories. kichler.com
Storing clothes properly also means keeping them smelling fresh by eliminating any unwanted odors. The airBOSS Charcoal Deodorizer neutralizes odors with its unique plant-based charcoal, which naturally absorbs moisture and unpleasant odors. Its small, slim design is perfect for fitting into any size closet, and it will gradually shrink to let you know when it’s time to replace it.
$
5.99
containerstore.com
SHRINK AND STORE Varies
When storage for clothes is lacking, Ziploc® Space Bags® are a great solution. The vacuum-sealed storage technology reduces the volume of your wardrobe items by up to 75 percent, while protecting them against insects, dust, mildew, moisture, odors and discoloration. Space Bags® are able to hang in the closet or slide under the bed for easy access. The bags are also reusable so they can be used season after season.
ziploc.com
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[smart
solutions]
streamlining your business through technology
ENGAGE THE
autopilot Ø
If it seems like there aren’t enough hours in a day to do all that you need to do, claim some of them back. While the word “automation” might make you think of tools and systems designed for big businesses, there are a number of tools that are perfect for REALTORS®, By Gwen Moran says Matthew Rathbun, CRS, executive vice president of Coldwell Banker Elite headquartered in Stafford, Virginia. “I wanted to figure out where I could automate that would free up my stress, my anxiety of having this overwhelmed feeling and pending doom all the time,” he says. By integrating a few automation tools, he and his team were able to alleviate much of their stress. So, what areas can you automate?
5 simple ways you can use technology to operate your office more efficiently.
Bookkeeping
Easy-to-use, affordable bookkeeping 1 platforms like Quickbooks and FreshBooks, make it easy to handle everything from processing invoices to tracking spending in key categories. Automate recurring invoices and invoicing. You can also easily run reports and determine whether you’re meeting financial goals. And they can make tax time a
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breeze—or, at least, breezier, Rathbun says. Lilli Rachel Stevens, CRS, a REALTOR® with Island and Resort Realty in Fort Lauderdale, Florida, embraces the way it automates transactions. “Keeping track of receipts can be a pain, so I use Quickbooks online and hook it up to my business bank account and credit card. I don’t have to enter any data, I just go into the system to refresh it every few days, and all of my charges are there. Plus, they have a phone app that I can use if I need to access any information when I am away from my home office,” she says.
Expense Recording
Travis Waller, CRS, a REALTOR® with Fried2 berg Properties & Associates in Englewood Cliffs, New Jersey, uses his smartphone to automate expense tracking. He uses MileIQ—which he calls “the best non-crashing mileage app”—and Spent, which helps him calculate his business expenses. MileIQ runs in the background on his phone and keeps track of the miles he travels. He can designate them as business or personal miles. Spent links to your bank account and credit card and lets you process payments right on your phone. Swipe left for personal expenses and right for business expenses. “I remember years ago, keeping receipts, and then every quarter trying to go through receipts, and keeping a profit and loss statement for my accountant,” he says. “These apps save me hours and hours, especially around tax time.”
Social Media Posting
Stevens also saves time by automating her social media posts. She set up Google Alerts, a free service that sends you an email of stories based on keywords, to give her daily email alerts on the different cities in which she works. She can then post those updates to social media accounts, making her a virtual news source about the area. “People comment when they see me that I always seem to know what’s going on,” she says. She also uses a program called HootSuite, which allows her to schedule posts across different social media accounts in advance. “I sometimes schedule my daily posts for a week in advance to make sure I am posting actively. I can spend an hour, schedule several posts for an entire week, and then not have to think about it for the rest of the week,” she says.
3
Email Management
Make sure your email program syncs to both 4 your smartphone and desktop, so that when you delete or respond to messages, you have access to them from both devices, Rathbun says. Another smart trick he uses: Have pre-written email messages. If you have various email messages that you use repeatedly, such as introductions or thank-you emails to clients, save them as signatures in your email program. Then simply choose that signature, customize it and hit send.
Meeting Scheduling
The back-and-forth of scheduling meetings 5 can be a hassle and take too much time. Tools like TimeBridge integrate with Google Calendar or Outlook and let you designate times you’re open for meetings or calls. You designate the
NO BOT’S BUSINESS
While automation is an important part of running an efficient office, there are two things it can’t—and shouldn’t—replace, says Matthew Rathbun, CRS, executive vice president of Coldwell Banker Elite headquartered in Stafford, Virginia. ÄÄ Relationship-building. Real estate businesses are built on personal relationships. While automation can free up rote duties like bookkeeping and scheduling, “You need to reach out personally to clients and prospects to build those relationships,” Rathbun says. ÄÄ Hiring help. Automation can help your team operate more efficiently, but it’s not a replacement for getting good virtual or in-office assistance. Hire the right people and teach them how to use these tools so they can also better focus their efforts on tasks that matter. people who have access to your calendar and they can pick the meeting time that’s best for them. Alternatively, you can keep your calendar private and send a few possible meeting times to meeting participants. TimeBridge coordinates the best time for everyone without a flood of email messages. It can also work for scheduling appointments with clients. By adopting a few simple tools and approaches, you can take many routine and mundane For more tasks off your plate. Reclaim detailed inforthat time and devote it to more mation, check high-impact activities and you’ll out Matthew Rathburn’s soon see the benefits of applywebinar “The Art ing simple automation to your of Automation” at CRS.com/ workday.
education/ courses/ on-demand/ art-automation.
Gwen Moran is a freelance writer based in Wall Township, New Jersey.
GADGET INSPECTOR
HP SPROUT PRO G2: AN UNFORGETTABLE EXPERIENCE
The latest version of the HP Sprout Pro computer offers an interactive experience with dual multitouch displays along with 2-D and 3-D scanning. Its design is sleeker and meant to be fuss-free with a system that integrates multiple technologies and an Intel® Core™ i7 processor. While you may not need a 3-D scanner, the Sprout Pro G2 is the ultimate workstation. Pricing and availability is expected to be announced this year. Visit www8.hp.com/us/en/campaigns/sprout-pro/ overview.html for details.
THE NORTON CORE KEEPS THE BAD OUT
WiFi routers are susceptible to attack by hackers and cybercriminals, but the Norton Core will keep your entire home network secure. The app-enabled router protects your laptops and smartphones, along with smart TVs, security cameras, WiFi thermostats, baby monitors, etc., with its comprehensive data encryption and real-time software updates. Plus, the Core doesn’t look like the typical router. Its simple, sleek design will blend in easily anywhere in The price starts at $199.99. Buy your home. The Core will begin one at us.norton.com/core. shipping in summer 2017.
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[inside track]
what’s trending in real estate
top
OF THE LINE
5 trends in luxury home marketing. By Gayle Bennett
Ø
Successful CRSs are by definition marketing mavens, no matter the market they work in. But for agents in the luxury housing market, staying current on the latest marketing tactics is critical. Luxury home buyers and sellers expect a particularly high level of service—and all the latest bells and whistles. So what’s the latest and greatest in luxury home marketing? CRSs heavily involved in their local luxury markets identified the following five marketing trends they currently encounter. As in the fashion world, real estate trends often filter down from the top of the market, so this list might preview what’s to come for agents working in all price ranges.
1
High-Tech Tours
Matterport and other 3-D tours are fairly standard these days, and now virtual reality tours are starting to take
upgrade upside
Michael Caruso, CRS, founder of Caruso Real Estate Group in Dana Point, California, learned a lot about construction early in his career. Therefore, he’s able to offer a service few other agents in his coastal area of Orange
May June
12
County can: renovation management for a higher sales price. If he can identify property upgrades that would lead to a higher sales price, he tells his sellers about them. Then he asks them if they want to
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off. Offering an interactive, 3-D BY THE NUMBER S house tour (no travel necessary!) caters to today’s busy homebuyer. In 2016, sales of homes priced above $600,000 But be careful when employing in 40 high-end counties these tools. Tami Simms, CRS, in 16 states increased with The Simms Team in St. by more than Petersburg, Florida, points out that these technologies can show more than you’d like. “All of that 3-D imagery shows every dust over the previous year, bunny,” she says. “It’s unforgiving according to a study by in terms of the little things.” research firm John Burns Simms has also started incorReal Estate Consulting. porating drone photography and Source: “Luxury Home Sales in U.S. Continue to Rise,” Wall Street Journal, Dec. 9, 2016 videography into her listings to offer potential buyers a broader perspective on the property and its neighborhood. She’s found, however, that the drone operators in her area are not necessarily good video editors. So she hires professional editors to create top-notch videos using the drone footage—an extra but necessary expense.
invest their money and his time to complete that work. “If the answer is ‘yes,’ it’s similar to when I work with a refurbish-and-return-tomarket entity,” Caruso says. “I’ll identify where we can improve the property, bring in
10
the proper team and the seller takes care of those bills.” But if the answer is no, he doesn’t try to talk them into it. “I put the house up for sale just like any other agent,” he says. Caruso estimates that out
%
of $40 million in sales in 2016, about 30 percent came from properties where he oversaw upgrades before putting them on the market. “We’ve developed a little reputation for doing this,” he says.
2
Professional Mini Movies
Luxury home marketing is all about lifestyle marketing. Property photos and videos used to focus only on the property, but the latest trend is to include people in these visual marketing tools to better convey how a home can enhance its owners’ lives. Production companies now create such a video using professional actors working from scripts. Simms is hiring a production company to shoot a video for an upcoming luxury listing, though she will be using the homeowners and some of their friends instead of professional actors. “It used to be if you put a wine bottle and a couple of glasses on the table in a picture, that was conveying a lifestyle message,” Simms says. “But now it’s about perhaps having people toasting with a wine glass.”
3
Construction and Design Details
Michael Caruso, CRS, founder of Caruso Real Estate Group in Dana Point, California, covers much of the Orange County coastal area. With his background in real estate development and custom home construction, he often works with investors and sellers involved in heavy remodels or new construction, helping them source construction, architecture and design professionals. This gives him a deep level of insight—from the foundation to the finishes— that he can pass on to potential buyers when he lists these homes and they hit the market. “In the luxury home market, you have to deliver a turnkey, move-in-ready product that is architecturally forward-thinking with high-tech design,” Caruso says. The ability to properly convey these details to potential buyers is critical. Roberta Orlandino, CRS, with Coldwell Banker Residential in Boston, also works with developers on both new construction and in the refurbishing or conversion of old brownstones. She helps them make construction and design decisions based on the type of buyers she thinks the property will most appeal to. “When you are marketing a luxury home, you really have to consider who your buyer is and who you are catering to in the concept,” Orlandino says. She recently worked with a developer on a property in Back Bay that could have been either two bedrooms or three bedrooms. She advised going with the three-bedroom layout
TOP OF THE TOP The top five luxury markets in 2016:
1
San Francisco, California
2
Brooklyn, New York
3
Los Angeles, California
4
Manhattan, New York
5
because she knew that would appeal to buyers moving in from the suburbs and looking to downsize—but not too much.
4
Staging 2.0
Of course, a luxury property needs to be staged to the hilt. Orlandino often brings in original art that fits the space and appeals to the luxury buyer. “You have to mirror back the reflection of the person who could live there,” she says. If for whatever reason she can’t stage a property or room for the photo shoot, she has the rooms digitally “staged” by a local architect or the company Neoscape, both of which can insert furniture into the photos. “It’s very clever and it used to cost a lot of money, but it’s much more affordable now,” she says.
5
Magazines Still Matter
Caruso stresses the importance of comprehensive advertising in the luxury market—and for him, print continues to make the cut. “Magazines are still the hot thing for me, not just because the seller wants to be in the magazines, but because the buyers pay attention to it,” Caruso says. He advertises in magazines that focus on real estate (Dream Homes Magazine) and publications that focus on all things luxury, from jewelry to yachts (DuPont Registry). “Magazine advertising, as expensive as it is, still serves a purpose,” Caruso says. The marketing budget for any real estate agent is an investment in success. You really do need to spend money to make money, and this is doubly true in the luxury market. “It’s important when approaching luxury marketing to be cognizant of what you are going after,” Simms advises, “and make the investment, both financially and in terms of your time and follow-through.” Gayle Bennett is a freelance writer based in Washington, D.C. To get the latest information on the luxury market, check out the course listings on p. 46 for the Luxury Home Sales or the Certified Luxury Home Marketing Specialist training.
Santa Clara, California Source: Realtor.com Luxury Home Index
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The Council of Residential Specialists
crs.com
May 13 June
[window of opportunity]
strategies to grow your business
BENT ON
destruction Tearing down, building up—what homebuyers do when they can’t find the features they want.
By Daniel Rome Levine
Ø
In many parts of the country, a shortage of newer, larger homes and available land to build on is leading some buyers to purchase properties just so they can demolish them and start from scratch. Teardowns were all the rage in the 1990s and early 2000s as the term McMansions became part of the real estate vernacular. The housing crash put an end to that as many of these luxurious properties turned into foreclosures. Now teardowns are skyrocketing.
BY THE NUMBER S
8 Almost
%
of all single-family housing starts in 2015 were from teardown-related construction. Source: National Association of Home Builders (NAHB)
May June
14
Older Houses, Younger Buyers
For each of the last three years, Paul Emrath, vice president of survey and housing policy research at the National Association of Home Builders (NAHB), has asked his members how many of the new homes they built were teardowns. Last year, the answer was 92,000, or nearly 12 percent of all single-family housing starts, up 67 percent from the year before and up 87 percent from the 32,000 teardowns reported in 2014, a figure Emrath says should actually be higher.
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Emrath says teardowns are a popular option in places where buildable land is scarce because of geographic or other constraints, such as municipalities where stringent local regulations limit building. Another factor driving teardowns, he says, is a desire to replace older houses that don’t appeal to today’s younger buyers. “The median age of existing housing units keeps going up,” Emrath says. Indeed, that median age increased to 37 years in 2015, up from 31 years a decade ago. “This housing stock aging trend signals a growing market for remodelers, as older structures normally require additional remodeling and renovations. It also implies a rising demand for new construction over the long run,” according to an NAHB report. Coral Gundlach, CRS, hardly recognizes her own Arlington, Virginia, neighborhood anymore. Since she moved to the Washington, D.C., suburb 15 years ago, most of the early 1950s single-story ranch, or rambler style, homes that populated the area have been torn down and replaced with much larger, high-end homes with layouts and design features coveted by today’s buyers.
“These new construction homes are changing the whole landscape of the neighborhood and the way streets look,” says Gundlach, an agent with Century 21 Redwood Realty. “And the pace is only picking up.” Gundlach herself moved into one of these newer homes two years ago and says the neighborhood’s transformation is being driven by a scarcity of buildable land and buyers who want more space and features, such as attached garages, spacious master bathrooms, ample closet space and open family rooms. “People are living differently than the way they did when these houses were built,” she says. “They just don’t have the floor plan or the features that buyers really want, and people who can afford more, want more.”
Paying Up to Tear Down
In Northern Virginia, Gundlach says, builders are typically purchasing teardown properties for $650,000 to $900,000 and then turning around and selling their new, larger houses for $1.6 million to $2 million. Individual buyers are also eager to snap up these older properties. Gundlach says she is always on the lookout for potential teardowns that don’t yet have a “for sale” sign in front. When she has a buyer who is interested in one, she sends out a personalized, carefully thought out letter to the homeowner expressing interest in the lot. “Homes that are not yet on the open market are great opportunities for buyers who want to tear down,” she says. A year ago, Gundlach represented a couple who worked with her to put their 1950s ranch house on the market with the clear understanding that it would be demolished. “They knew they were sitting on valuable land and this was a great opportunity for them,” Gundlach says. “They didn’t have to do any improvements, staging or showings. We marketed it as land, a
“ HOMES THAT ARE NOT YET ON THE OPEN Lightbulb Moment In Menomonee Falls, Wisconsin, a Milwaukee sub- MARKET urb, Brad Posnanski, CRS, owner of Bradley Realty, relied on his experience handling about a dozen ARE GREAT teardowns over the past five years to recently help a client make their dream home a reality. OPPORTUNITIES The couple he helped had been looking for a new home, but were continually frustrated FOR BUYERS because they either couldn’t find a large enough parcel of land—they wanted at least an acre— or if they did, the properties were not what they WHO WANT TO were looking for. One day, Posnanski took them to see a rundown, TEAR DOWN.” teardown.” A young couple who was looking for a new, larger house bought it within the first week it was on the market for $835,000, nearly 5 percent above the list price, and tore it down to build their own custom home.
one-and-a-half story, late-1940s house that sat on an acre of land. The selling agent insisted it was perfect for a renovation, but Posnanski knew the house was beyond rehabbing. He talked to his clients and suggested they buy it for the land, tear it down and work with a builder to put up their own home. “It was a lightbulb moment for them,” he recalls. “People don’t typically think of teardowns as an option.” Posnanski carefully walked them through what a teardown would entail and the estimated costs and municipal requirements, and helped them research the feasibility of the project. They bought the property for $92,500 and are about to finish a custom-made, 2,400-square-foot ranch-style home. “As a REALTOR®, it was my job to help them get all the answers they needed so they would have a foundation of knowledge, and they could move forward and build their dream house,” Posnanski says. “Helping make that happen is always the best part of my job.”
10,600
Midwest
8,100
For more data on teardowns, go to eyeonhousing. org/tag/ teardown.
Daniel Rome Levine is a freelance writer based in Chicago.
DESTINATION: DEMOLITION West
— Coral Gundlach, CRS
Number of teardowns by region in 2015
Source: National Association of Home Builders (NAHB)
South
Northeast
28,600
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The Council of Residential Specialists
8,000
crs.com
May 15 June
Berkshire Hathaway HomeServices PenFed Realty, Clarksville, Tennessee
DEBBIE REYNOLDS, CRS
How and when did you get started in real estate? I always liked home styles and my husband and I had built two homes. It seemed like a natural fit. I entered the business in 1980 just as my daughter was entering first grade. What attracted me was being able to flex my work time so I could be available for her busy after-school activities. I quickly learned that it wasn’t as flexible as I had originally imagined. I had to employ “mom car-pooling” and her dad’s help to make it all come together. What do you like the most about being a REALTOR®? Every day is different and I literally can make business happen just when I need it. When you love what you do, the energy oozes onto others and they get excited, too. What do you like about being a CRS? The education is the best in the real estate industry. It is like taking master-level classes and reaching into a deep knowledge and understanding of professionalism. After I earned the designation, I felt extremely well-equipped to raise my business to the next level of service for my clients.
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You also do a lot of blogging on the platform. How do you come up with ideas to blog about that will also help your SEO value? I want to be known as the real estate expert in my community. I share what is happening in my town, the real estate market and the neighborhoods I serve. I regularly answer the questions my customers and clients ask. I also share situations that come up that can serve as a good learning experience for my readers. Keyword choice is important, and choosing good titles.
What do you like “ I love it when I have about Clarksville? someone who remembers What makes serving the Debbie Reynolds movies this community unique? and asks me if I sing and I like that Clarksville is a dance. I tell them I will be big, little town. It has grown extensively over the last glad to sing and dance for 10 years and is now almost a them after the closing.” bedroom community to Nashville. People are friendly in the South. Clarksville is home to Fort Campbell and a huge military population, and it is a joy to help these military What kind of trends You are a prolific We gotta ask—do families, get them settled are transforming ActiveRain user. you think your quickly and show them how real estate How do you suggest name has helped glad we are they are part of businesses for people use the your career? Do our community. agents and how do platform? you have fun with you stay on top of It is the largest real estate the connection to Tell us a little about such a changing blogging site anywhere the late actress? yourself. What field? because the membership do you do in your Buyers are becoming more provides real-life experiences That is a question I get asked a lot. It hasn’t hurt, for sure. spare time? and more sophisticated and and tips on how to be more What it does more than anyI love to read, garden and coming to the transaction professional and proficient in thing is give a familiarity to cook when I’m at home. I have knowing what they can and the real estate industry. The a small kitchen garden and can’t do. They don’t want to network also serves as a mar- me. People think they know me or have previously met me grow herbs and vegetables. It be rushed. This is challengketing platform to broadcast gives me great satisfaction ing because they don’t want listing and selling information. because of the name. It tends to stick. I love it when I have to create dinner using fresh agent interaction early on. I get tremendous SEO value someone who remembers the pickings from my backyard. On my website, I provide from blogging about my Debbie Reynolds movies and I love to travel. Part of the plenty of information such as areas of expertise and the asks me if I sing and dance. travel aspect is exploring and community and neighborhood communities I serve. It all I tell them I will be glad to learning more about our coun- details, home-selling tips comes from my ActiveRain try’s history. My husband and and an easy search tool blogs. This translates to more sing and dance for them after the closing. I are on a mission to visit all to help them get the data clients and sales. the presidential home places they need. My goal is to be Debbie Reynolds, CRS, achieved her and museums across the there as the person with CRS Designation in 1999. She can be reached at 931-503-8000, ext. 730, country. We are 60 percent the answers when they are or dreynoldsrealestate@gmail.com. complete. finally ready to take action.
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Photo: Kristina Krug
[peer to peer]
profiles of people to watch
Debbie Reynolds, CRS, is one of the developers of Terraces of Hearthstone, a neighborhood with about 100 homes. She developed this home, and through another aspect of her business, Hearthstone Partners, she also helped design many of the homes.
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super
marketing
[feature]
hink ESH
30 tips to empower your marketing efforts every day. By Donna Shryer
Ø
Marketing your brand involves a variety of strategies, from automatic, consistent emails to memorable face-to-face strategies. Here are quick looks at some of today’s most influential marketing practices. However you choose to market your brand, do it with gusto. “For me, the big takeaway is consistency and frequency,” says David D. Gilmore, CRS, broker with Coldwell Banker Morris Real Estate in Bend, Oregon. “If you aren’t dedicated to your marketing program, the door is wide open for your competition to move in.” Ü
May 19 June
[feature]
super marketing
EMPOWER
Your Emails Build permission-based email lists to increase email visibility with subscribers. Permission begins with someone sharing his or her email address with you in writing. (No, handing over a business card does not count.) Without permission, people are more likely to report your emails as spam, which triggers spam filtering or blacklisting and may make it impossible for legitimate subscribers to receive your emails. Written permission is usually gained at your website with a pop-up box, a sign-up form under the contact menu tab or a link within your e-newsletter that takes the reader to an opt-in form.
Invest in email marketing automation software. Digital Commerce 360, which covers e-trends, reports that 33 percent of new email subscribers who receive a welcome message are more likely to become long-term fans. However, responding to every new lead is time-consuming. Perfect the process by filtering new leads through a marketing automation platform, which flows leads into your CRM and email marketing software.
Optimize your email campaigns for mobile devices. 2016 stats from the email analyst Litmus report that around 55 percent of emails are first opened on a mobile device. In addition, 75 percent of email subscribers are “highly likely” to delete emails that do not present well on mobile devices. Add a GIF or other interactive element to your emails for a higher conversion rate. Interactive emails encourage users to engage with your email, such as clicking a dropdown menu for navigation to your website, taking a short quiz or enjoying an animated GIF. According to Email Monks, an email design and HTML coding company, emails with an animated GIF have a 26 percent higher clickthrough rate and a 103 percent higher conversion rate.
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Provide prospects with valuable information by emailing monthly market reports. “All past clients want to know what their house is worth,” says James Daniel, CRS, senior broker associate at Coldwell Banker Residential in Cambridge, Massachusetts. “What you need to do is have an automated monthly email report sent to your clients, which keeps your name in front of them.” One app is Cloud CMA, which CRS recently teamed up with to help REALTORS® generate CMA reports.
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FORTIFY
Your Listings
Stay on top of leadingedge trends that can generate homebuyer interest. Rely on builders, remodelers, architects and interior designers for cutting-edge listing content before trends hit the mainstream. For example, yesterday’s energy-conscious homebuyers looked at appliances and HVAC systems. Today’s homebuyers have new energy-wise buzzwords, from an attic thermal energy shield to solar glass roof tiles that provide passive heat gain.
Take advantage of “coming soon” listings. Two days before going on the MLS, Lori Fontyn, CRS, associate broker, Coldwell Banker Residential Brokerage in Arvada, Colorado, pre-markets listings on Zillow and Trulia as “coming soon.” It works on the premise that homebuyers typically search online with fewer musthaves than they tell their REALTOR® about. During the two-day period, buyers see listings that their REALTOR® isn’t looking for, and once on the MLS, the REALTOR® won’t highlight these listings because of missing requisites.
super marketing
[feature]
CLIMB The Social Ladder Invite your sellers to get personal with their home listing. A Zillow study cites that a personal story tucked into a listing’s content increases views. Going beyond traditional listing text, a “What I Love About This Home” paragraph might mention space for the in-laws, a detached garage/ workshop combo for “big-boy toys” or an artist’s dream studio flooded with natural light. Focus on using professionalquality cameras for listing photographs. With better-than-ever smartphone cameras, it’s tempting to point-and-shoot. However, according to Redfin, a professional camera is still best for wide-angle shots, sharpness and light. Redfin reports that homes priced between $400,000 and $499,999 sold three weeks faster when photographed with a professional camera.
Find your sweet spot for listing photographs. Point2Homes, an online real estate marketplace, reports that a listing with 10 to 15 photos has the best chance of generating leads. Too few photos won’t hold a potential buyer’s interest and a flood of photos may decrease incentive to contact the listing agent.
Write a killer social media bio. According to social media marketer Social Media Examiner, 90 percent of all marketers say their social media efforts generate more exposure for their businesses. When someone clicks “About” on your professional Facebook page, your “Story” needs to ring with authority, experience and knowledge.
Post a weekly two-minute video about your community. Mary Beth Eisenhard, CRS, REALTOR® and owner of The Eisenhard Group, Long & Foster REALTORS® in Gainesville, Virginia, posts a weekly video called Monday Business Spotlight on her business Facebook page and YouTube channel. “In the video, I introduce myself and ask the business owner a few questions,” Eisenhard says. “The business owner and my colleagues share the video on their Facebook page. My goal is to promote business owners, so they in turn will keep us in mind for referrals.”
Choose a social media management tool for consistent and strategic postings. Managing daily Facebook, LinkedIn, Twitter, Pinterest and Instagram posts are a time-gobbler, which is largely why RISMedia, a content management strategist for the real estate industry, reports that a mere 32 percent of real estate professionals devote quality time to social media—even though 95 percent consider social media essential. Social media management tools, such as Hootsuite, Buffer and SproutSocial, enable you to schedule all posts in one place.
Go Live! A major trend in video marketing is live-streaming, which lets you communicate via video with homebuyers in real time on Twitter, Facebook and Instagram. Consider live-streaming a virtual open house. Or, consider a live Q&A session for first-time homebuyers. Trending live-streaming apps include Periscope and Meerkat (both available on Google Play and the App Store), as well as Facebook Live.
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The Council of Residential Specialists
crs.com
May 21 June
[feature]
super marketing
TAKE ACTION
ADD
That Personal Touch
With Videos
Post video presentations on your company website, business Facebook page and always on your personal YouTube channel to improve search rankings. Google owns YouTube, so the search engine tends to see YouTube videos faster. Also, YouTube is the second-largest search engine after Google, with almost 5 billion videos viewed every day.
Invite home shoppers to take a web-based, virtual tour of the neighborhood. Today’s homebuyers are as interested in a property as they are with the surrounding community. When planning a video shoot, step outside the property’s boundaries and zoom in on local hot spots. Roll the camera as you stroll through the neighborhood—perhaps illustrating why the community consistently earns a high walking score. If possible, ask passers-by why this neighborhood is a great place to live.
Eliminate geographic issues with virtual reality (VR) headsets. If your listing is in San Diego but your client is in New York City, a virtual reality headset closes the 2,760-mile gap. The headset, often paired with a smartphone, is worn as you would a pair of goggles.
Handle all visual listing presentations in one fell swoop. HouseLens (houselens.com), a provider of real estate visual marketing services, unveiled an online marketplace where real estate agents can hire photography, video, 3-D model and drone tour providers from one central online hub. This allows REALTORS® to connect directly with local talent, request project quotes, put shoots out for bid and download content as its produced.
BOOST
Increase facetime with your clients. Never underestimate one-on-one engagement, says Anthony Clark, CRS, owner/ broker of Clark Partners Realty Group in Fayetteville, Arkansas. “Long after a transaction ends, I stay in touch with clients by inviting them to join me for a cup of coffee, lunch or happy hour,” Clark says. Try the drop-in. Eisenhard likes to tie client appreciation into holidays. “I pop by at least 50 homes the week before Mother’s Day and deliver flowers to our favorite moms.”
Your Website s Power Add a chat feature to your website. It feels like everyone wants immediate feedback, which makes a live-chat website feature worth considering. Forrester Research reports that the number of U.S. online shoppers who look for and use live chat hovers around 58 percent.
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Ensure your website is mobilefriendly. If you don’t have a website specifically designed for smartphones, it’s time to consider one. According to the National Association of REALTORS® Real Estate in a Digital Age 2017 Report, 72 percent of home shoppers search for information at some point on a mobile device.
Set yourself apart with old-world, snail-mailed personalized cards. The SendOutCards website and app make it easy and fast to select a template
super marketing
online, write a personal message and then hand the project over to SendOut Cards, which prints, stuffs, stamps and mails everything for you.
Tie customer appreciation gifts to unusual holidays. There are a lot of wacky holidays out there, such as National Pancake Day or National Ice Cream Month. Send client gifts commemorating these holidays. You’ll stay top-of-mind while also enticing a smile from your clients. Check out holidayinsights. com/moreholidays
for bizarre, unique, special and otherwise different holidays. Send past clients new listings in their neighborhood. People are always curious about new homes that go for sale nearby. “When I see a new listing pop up in the MLS in a client’s ‘hood, I send it to them personally,” Daniel says. “Then in the email, I ask how they’re doing. Real estate is a people business, not a tech business. The personal touch will always be important.”
[feature]
PROSPECT
For Gold
Tap into expired listings. Look for underserved markets, treat them with the best possible customer service, and they’ll be loyal for life, says Mark Frye, CRS, REALTOR® with RE/MAX Whatcom County, Inc. in Bellingham, Washington. “I personally call expires and FSBOs in my market. These are people who’ve expressed an interest in selling, but aren’t getting it done. And my competition in these areas is little to none.” Gilmore finds “tremendous opportunity” in the absentee owner niche. “These property owners rarely have an existing relationship with active brokers,” he says. “I reach out to them primarily through print direct mail, and listings follow.” Meet with other agents to market your listings and buyers. Ginny Ollis, CRS, broker associate, with Woods Real Estate Service in San Diego, prospects by strengthening ties with her peers. “I started a weekly meeting for REALTORS® in 1983—and we still meet today. We pitch our buyers and sellers, discuss industry news and sometimes have a speaker,” Ollis says. “To help our businesses and our clients, we built a team bigger than any one brand.”
Join social networks specific to your area. Look for Facebook groups and Google groups specific to your market. Also check out Nextdoor (nextdoor.com), a private, localized social network. Present yourself as the source for local knowledge, real estate answers and current market data. It’s a strong opportunity to promote free, local events you sponsor—just be careful to not spam these social networks with advertisements.
Host happy hours for homebuyers. To leverage their sphere of influence, Skye Michiels, CRS, principal REALTOR® with Keller Williams Realty in Philadelphia, and his team regularly host happy hours for homebuyers. Invitations are emailed, posted on social media, phoned in and sent by snail mail. “We deliver a brief presentation on the homebuying process and answer questions—which gives us an opportunity to generate leads and strengthen client relationships,” Michiels says.
Foster relationships with new businesses sooner rather than later. New, local, small businesses are always in need of wordof-mouth marketing, and as a REALTOR®, you know a lot of community members. In exchange for word-of-mouth recommendations, ask the business owner if you might offer clients a discount along with your recommendation. This way, you stay top-of-mind with clients, clients get a good deal and the business owner Donna Shryer is a freelance gains customers. writer based in Chicago.
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The Council of Residential Specialists
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dwelling
points
[feature]
Ăœ 20 17
The Council of Residential Specialists
crs.com
May 25 June
[feature]
dwelling points
Ø
When spotlighting trends in home projects for the coming year, the National Association of Home Builders’ Best of American Living awards pointed to intimate outdoor gathering spaces. With outdoor fireplaces or fire pits and comfortable seating, small gathering spaces are poised to overtake larger backyards as the most sought-after way to spend time outside while staying at home. But the best way to incorporate outdoor living into everyday life depends on the homeowner, says Brad Allen, CRS, ABR, a managing partner with The Art of Real Estate in South Carolina. Young families, for example, BY THE NUMBER S might still want those wide-open The biggest returns on spaces for running and other cost for outdoor upgrades activities, whereas millennials lean all revolve around toward outdoor fireplaces with improving lawns, with sitting areas for lounging. upgrading to seed lawn By Megan Craig
bringing the highest return at
417 % Source: National Association of REALTORS® Remodeling Impact Survey 2016
Making the Outdoors Marketable
Because outdoor spaces have to be tailored to the needs of the buyer, it’s important to find out what
PATIOS In the most recent National Association of REALTORS® remodeling impact report on outdoor features, adding a new patio or deck ranks high on the list of projects likely to add value to a home for resale. But which to choose—patio, porch, or deck—is largely
May June
26
OR
dependent on the home’s location and the preferences of the homeowner or the buyer. For some buyers, patios are more popular than decks in upstate New York, says Sharon Breslau, CRS, an associate broker with Westwood Metes & Bounds Realty, Ltd.
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When considering outdoor improvement projects, pools might seem attractive, scoring a perfect 10 on the Joy Scale of NAR’s most recent survey. But REALTORS® estimate only recovering about 50% of the installation costs when it’s time to sell.
your client wants before showing the client something that’s trendy, rather than useful, says Sharon Breslau, CRS, an associate broker with Westwood Metes & Bounds Realty, Ltd. in upstate New York. In her area, situated snugly in the Catskill Mountains two hours north of New York City, outdoor areas tend to focus on the view and streams for second-home buyers. But that doesn’t mean every buyer wants the same view. “It’s a series of questions I ask up front when I have a buyer,” Breslau says. Many buyers are going for the trendy intimate spaces, Allen says, particularly if they come with any kind of added entertainment area. That can mean a deck with a great dining setup, or it could mean a pool, depending on the buyer, says Mary Lane Sloan, CRS, a partner/broker who works with Allen.
PORCHES That’s because homeowners want to be on the same level or close to the level of the ground, enhancing the indoor/outdoor connection by allowing them to step right out into nature without several stairs in the way, Breslau says.
OR
DECKS
In warmer climates like South Carolina, however, covered and screened porches are more desirable simply because they provide shade and protection from mosquitoes and pop-up thundershowers, says Mary Lane Sloan, CRS, a partner/broker with The Art of Real Estate.
?
“The trend I’m seeing lately is outdoor fireplaces, either on a porch or freestanding,” Sloan says. “In our climate, a screened back porch can serve as a large family gathering space for most of the year, which is another reason they are so desirable.”
dwelling points
Bringing the Outdoors Inside
The outdoor space itself isn’t the only way to experience the outdoors—how the inside interacts with the outside matters, too, Breslau says. “Windows and doors are the eyes looking out of the house, so what do you see when you look out? Do you see a bush, or do you cut that bush down and suddenly you can see the yard and a nice hill or meadow?” Breslau says. “When you do an initial listing appointment, you want to talk about how the inside and the outside correspond, because the seller really wants people to like both.” In general, outdoor spaces have to go way beyond curb appeal, allowing multiple spaces around the outside that interact with the inside. Breslau encourages buyers to look for open space directly around the house—being able to walk all the way around a house without running into an obstacle is ideal—because this allows more light inside.
Investing Outdoors
A 2016 National Association of REALTORS® report on the impact of remodeling outdoors showed the importance the outdoors is playing in the way buyers see the indoors. According to the report, outdoor remodeling projects add value to a home on resale, while also making homeowners who plan to stay in their homes happier. Allen tells homeowners to make major changes outdoors only if they’re going to love those changes and find the revamped outdoor space useful, since a dollar-for-dollar recovery upon selling isn’t likely. “However, a nice outdoor living space will most likely make the home more appealing to buyers, which could cause a buyer to purchase the home when compared to a house without an outdoor living space,” Sloan adds.
Year-round Outdoor Living
In warm climates, outdoor spaces can be used all year without issue. Allen currently is working with a new-construction buyer who plans to install a 14-foot-wide accordion-style sliding door that will open her basement recreation room straight onto her patio and pool. And outdoor kitchens or fireplaces on porches are useful in all warmer-weather climates as long as they’re covered to protect from rain, Sloan says. In places like New York, though, warmth isn’t a guarantee for most of the year, so homeowners have to think outside the box to get more use out of their outdoor spaces, Breslau says. Three-season screened-in porches allow people in colder-weather areas to enjoy the outdoors for at least a little longer in the spring and fall, but to make those spaces yearround, all they need is some insulation and a gas heater to bump up usage in the winter season.
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private world
Outdoor areas are great for having fun and relaxing, but if neighbors are too close by, they can also invite unwanted guests into the activities. Privacy concerns are leading some homeowners to find creative ways to keep their outdoor areas out of the public eye, especially in areas where zoning regulations restrict fencing. “A lot of people use bushy trees like giant green arbor vitae or Leland cypress,” says Brad Allen, CRS, ABR, a managing partner with The Art of Real Estate in South Carolina. “I have also seen sellers install lattice-style screens on the sides of their decks and porches.” Sharon Breslau, CRS, an associate broker with Westwood Metes & Bounds Realty, Ltd. in upstate New York, also suggests having landscapers plant anything that grows big, “things that are hedgy and easy to pop in that add a little more privacy,” including rose of Sharon or jasmine, or anything viney on a trellis that can shield the sight of any neighbors. “Privacy means something different to every person who you ask,” Breslau says. “So, I always ask: If you’re standing on your deck at your new house, can you see the neighbors? Are they off in the distance, or are you totally alone and can’t see anyone at all?” Breslau also suggests using fountains to mute noises, especially a busy road in the distance. That adds another level of privacy.
“People love them, especially if they’re right off the kitchen,” Breslau says. “Again, it’s that connection from the indoors to the outdoors. People love having the ability to step outside and feel like they’re still at home—they feel that they’re getting more use out For the complete outdoor of their house.” Megan Craig is a freelance writer based in Chicago.
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remodeling report, go to NAR.REALTOR/reports/ remodeling-impact-reportoutdoor-features.
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perfect
practice
[feature]
Increasing the odds of coming out on top in a bidding war. By David Tobenkin Dear Mr. and Mrs. J, My name is Lily and I am a 13-year-old who loves animals, “elbow room,” playing clarinet and horseriding. I love your house because it has the “elbow room” that I love while still being close to the middle of town. A few other reasons I like it is the space to keep our chickens, the apple trees, and room to have friends over. Thank you for reading my letter. Lily
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By the time Lily’s two sisters and brother and their parents had written their own letters to the seller about why they wanted the house in the face of a competing bid—all before they had presented their offer—they had edged out the competition, says their agent, Cherie Kukhahn, CRS, a broker at RE/MAX Whatcom County, Inc. in Lynden, Washington. “When I sat down to present the offer, by the time I finished reading the five letters from my buyer, the seller’s wife was
teary-eyed and wanted my buyers to purchase their home—and they had not even heard our offer!” Buyers’ agents say that in a bidding war, it is not always the buyer who offers the most cash who walks away with the house keys, and that there are a variety of strategies for how buyers’ agents can improve the odds for winning a bidding war.
Tugging at Heartstrings
Buyer letters, videos and other ways that connect sellers to buyers were cited by many CRSs as a key strategy in multiple-offer situations. “Had my clients not written those letters, and had I not gone personally to present the offer with the letters, I don’t believe that my buyers would have the home they fell in love with,” Kukhahn says. Houses become tied up with memories in the minds of many sellers, particularly longtime owners, such that sellers want to know that buyers will take good care of their house and continue to invest their experiences and meaning in it, she says. (See p. 31 sidebar for additional buyer testimonial ideas).
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The Council of Residential Specialists
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May 29 June
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perfect practice
“ When I sat down to present the offer, by the time I finished reading the five letters from my buyer, the seller s wife was teary-eyed and wanted my buyers to buy their home and they had not even heard our offer!” —Cherie Kukhahn, CRS, a broker at RE/MAX Whatcom County, Inc. in Lynden, Washington.
SALE PRICE COMPARED WITH LISTING PRICE 3%
10% 10 % 14 % 26 % 37 %
Deciphering the Data
Ira Serkes, CRS, a Berkeley, California, agent affiliated with Pacific Union/Christie’s International Real Estate, was a research engineer at Chevron with two patents before he turned to real estate sales—and it shows. Looking at Serkes’ graphs establishing correlations between key sales data points can help buyers win a bidding war, Serkes says. First, such research can help establish the critical negotiating datum of the ultimate likely sales price. “We can estimate probable sales price based upon list price, current market conditions and
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NUMBER OF TIMES ASKING PRICE WAS REDUCED 6% 3
%
■ Less than 90% ■ 90%-94% ■ 95%-99% ■ 100% ■ 101%-109% ■ More than 110%
buyer demand,” Serkes says. Such research also highlights some effective bidding strategies and some to avoid. “We sometimes hear buyers say, ‘It can’t hurt to make an offer,’ Serkes says. “But it actually can. We’ve found from our research that sales prices are very dependent upon how many buyers make an offer, even more than recent sales prices. As more buyers submit offers, the final sales price increases, which means the next seller lists their home for a higher price than they otherwise would have set. That means there are times when writing an offer works against the buyer.”
10% 22%
59%
■ None ■ One ■ Two ■ Three ■ Four or more
The Listing Agent: Oracle, Not Adversary
Many agents note the importance of establishing a good relationship with, and deriving as much key information as possible from, the listing agent. The first key is to know if there are multiple offers on the property, and after that, the seller’s situation, needs and wants, says Kim Ratliff, CRS, managing broker at Everett, Washington-based Windermere M2 LLC. “Call the agent and ask, ‘What would the seller like? What would make this easiest on the sellers?’” says Lori Fontyn, CRS, an associate
Source: 2017 National Association of REALTORS® Home Buyer and Seller Generational Trends
BY THE NUMBER S
perfect practice
broker at Coldwell Banker Residential Brokerage in Westminster, Colorado. “As a listing agent, I’m always amazed at how many agents send over an offer to me without even a phone call.” Then there are the preferences of the listing agents, Ratliff notes. Sometimes a little accommodation goes a long way in getting the inside track: “Give the listing agent what they want so you are not negotiating with them as well as the seller,” Ratliff says. “For example, let them choose the title and escrow companies they like to work with.”
Thinking Outside the Box
Sometimes sellers have particular needs, and if the buyer can satisfy them, it can distinguish their offer. “I try to find other ways to stand out besides throwing thousands of dollars at it and paying the highest price,” Fontyn says. “I sometimes advise buyers to offer a “free” rent back to the seller, which they may want if they are waiting to close on a new house. I have found that offering to rent back the property can be much less costly to the buyer than going over the list price, which in our market could involve adding $10,000 to $15,000 to the offer.”
Showing Them You Mean Business
Agents advocate a wide variety of techniques to show the listing agent and sellers that their client is the safe, secure choice, even if it’s not the highest offer, including by
demonstrating that both they and their clients are fully prepared. “I have my client prepared—I know exactly how high they will go,” says Therese Jenkins, an agent at Beautiful Homes Realty of Charleston in South Carolina. “I also build a great rapport with the listing agent. I let them know how efficiently I work and how prepared I am.” Sweetening the pot on the front end through an increased down payment and more earnest money can sometimes avoid having to do so on the back end through a higher offer, some say. “If the homebuyer really wants the house, we provide a large amount of earnest money when the house goes under contract to show financial strength,” says Bob Gordon, CRS, a Boulder, CO-based agent at Berkshire Hathaway HomeServices.” Others similarly say that shortening timelines and avoiding contingencies can impress sellers and sellers’ agents. “I actually schedule the home inspection before I submit our ‘final and best’ so I can indicate we move quickly— I don’t ask for extras such as a home warranty, and I offer a large escrow deposit and a quick close,” Jenkins says.
Escalate
Ratliff says a mistake some agents make is capping escalation clauses too low or by overly limiting the amount of escalations. “When you escalate, go up enough above another offer to make it worthwhile for the seller to go with your buyer and make sure and use a high maximum number so that you stay in the running,” Ratliff says. “The maximum number will only go as high as it must and may never get anywhere near the number you fill in.” There are a variety of effective strategies for outbidding your competitors, without necessarily
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WINNING TESTIMONY
If you are going to use your buyers to tug at sellers’ heartstrings, do it the right way. Cherie Kukhahn, CRS, a broker at RE/MAX Whatcom County, Inc. in Lynden, Washington, says a recent testimonial by the kids of (ultimately successful) homebuyers featured letters that were handwritten on lined paper and that, while neat, did look like those of kids, warts and all. A cleaned up, typewritten version of the letters likely would have been less authentic and had less emotional appeal, she notes. When a buyer’s agent pays attention to clues in the home, these observations can be helpful with the letter-writing strategies of prospective homebuyers. “Sometimes we’ll play detective during the showing,” says Bob Gordon, CRS, a Boulder, Colorado-based agent at Berkshire Hathaway HomeServices. “For instance, with my buyer Alec, we noticed travel photos in the master bedroom. Alec wrote a letter to the seller talking about his recent visit to Italy and how the condo felt “Italian in style” to him. We ended up beating out a better-priced offer.”
defaulting to a higher offer. Intangibles often carry more weight with a seller than the amount being offered. David Tobenkin is a freelance writer based in the greater Washington, D.C., area. For more negotiation tips and strategies, check out a Win-Win Negotiation Techniques course near you.
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The Council of Residential Specialists
crs.com
May 31 June
Honey,
Baby boomers are downsizing en masse. For enterprising CRSs, their appetite for small homes represents a big opportunity.
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I shrunk the house
By Matt Alderton
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Mary Jo Ochylski, CRS, admits that when her kids were young, her 3,000-square-foot house sometimes seemed small. Now that they’re grown, however, her home of more than 20 years feels a lot larger. Maybe too large. “My husband and I are living in a house that used to support five people,” says Ochylski, a real estate agent at Coldwell Banker Caine in Greenville, South
Carolina. “Now there’s just two of us.” Although they’re not yet ready to move, the couple would like to spend the next chapter of their lives in a new, smaller home. And they aren’t alone: 51 percent of retirees 50 and older say their most recent move was into a smaller home, according to a 2016 survey by Merrill Lynch. That number will likely keep growing, as the number of Americans ages 65 and older will more than double from 46 million today to over 98 million by 2060, predicts
the Population Reference Bureau. Many of those seniors will be potential homebuyers, according to Freddie Mac, which in 2016 reported that 40 percent of homeowners ages 55 and older would like to move at least one more time in their lives. If you’re a residential real estate agent who recognizes the trend, small homes could be big business. That is, if you understand what downsizers want and how to reach them. Follow these four steps to ensure that you do:
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The Council of Residential Specialists
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May 33 June
trade winds
[feature]
DOWN
1
SIZING
Understand the Urge to Purge The first step to attracting and serving downsizers is understanding why clients downsize in the first place. Merrill Lynch found that 64 percent of those over 50 downsized to lower their housing costs, 44 percent to reduce home maintenance, 18 percent because family members have moved out and 16 percent to access home equity. If you ask Margaret Rome, CRS, however, the No. 1 reason people downsize is because their home no longer suits the life they want to live. For that reason, she calls it rightsizing instead of downsizing. It’s not about what homeowners give up: square footage. Rather, it’s about what they gain—a space that better suits their needs. “I prefer the term rightsizing because it’s about moving into a home that has spaces you are going to use,” says Rome, a broker/owner at HomeRome Realty in Baltimore. Consider, for example, a 70-year-old woman who lives alone in a three-story townhouse. When she moves into a full-service condo, she exchanges her kids’ vacant bedrooms and a staircase she can no longer climb for an updated kitchen, a guest room, a large master suite and a balcony—all on one level in an elevator building that has a doorman and a concierge. “It’s not necessarily about moving into a smaller space,” Rome says. “It’s about moving into a different kind of space.”
2 Sell the Small-Home DOWN
2
SIZING
Lifestyle
If step one is understanding why downsizers want to leave a bigger home, step two is understanding what will attract them to a smaller one. For baby boomers, the answer usually boils down to lifestyle, according to Keller Williams REALTOR® Carol Marra, CRS, of Destination Realty Group in Bradenton, Florida. For exactly that reason, when her team launched a website targeting buyers in Lakewood Ranch, a masterplanned community that’s popular among retirees, they made sure homebuyers could use it to search for a home based on their preferred lifestyle, using terms such as “boating,” “golf,” “tennis” or “equestrian.” “Clients in this age group really seem to know what they want, and what they want is often a maintenance-free home that gives them more time to enjoy leisure activities,” Marra says.
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BAGGING A BOOMER
Real estate agents are going gaga over millennials. And for good reason: They comprise approximately a quarter of the U.S. population and have approximately $200 billion in purchasing power. There’s just one catch: Many of them don’t want to buy a home yet. A 2016 survey by Forbes, for example, found that purchasing a home was the highest financial priority for only 19 percent of millennials. For real estate agents, therefore, “tried and true” might be more lucrative than “shiny and new.” “There are about 66 million baby boomers, and they control about 70 percent of American wealth,” Lee Barrett, CRS, a national CRS instructor based in Las Vegas, Nevada, says. “We’re a big part of the marketplace.” A big market can yield big benefits for your business—provided you understand what boomers want. According to Barrett, their wish list includes: ÄÄ High quality: “Boomers are used to living in nice homes and quality neighborhoods, and they want to continue doing so even when they downsize to a smaller home,” Barrett says. ÄÄ Facebook friends: Boomers are among the largest and most active groups on social media—especially Facebook, according to Barrett. ÄÄ An active lifestyle: Barrett says boomers want to live in communities where they can be physically, socially and even civically active. ÄÄ Sound advice: Real estate’s impact on their retirement means boomers seek agents who can connect them with expert resources—financial planners, estate planning attorneys, etc.—and objective advice. “Their biggest challenge is understanding when the real estate cycle is perfect for them,” Barrett concludes.
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SIZING
Make Moving Easier Of course, wanting to downsize is one thing. Actually doing it is another. The third step to succeeding with downsizers, therefore, is facilitating the transition for them with valueadded services. For example, Cathy Kelleher, CRS, makes it easier for her clients to imagine a better life in a smaller home by delivering to them much-needed retirement- and estate-planning tools. “I market to homeowners who are 60 years and older in a geographical area, then I put together a seminar that includes myself, a traditional lender, a reverse mortgage lender, an estate attorney, an estate accountant and a home organizing specialist, all of whom get together to deliver a presentation on retirement-age real estate,” Kelleher explains. Getting her Senior Real Estate Specialist® (SRES®) designation from the National Association of REALTORS® helped her understand more clearly how she could make moving into a smaller home easier for her older clientele.
4
DOWN
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“SRES® designees are uniquely qualified to assist seniors in housing sales and purchases,” Kelleher says, adding that the designation gave her training in the physical, emotional and financial concerns that seniors face when they move to a new home, which has differentiated her among downsizing clients. One of those concerns, for example, is the condition of the client’s current home, which they have to sell, and all the possessions inside it, which they also have to downsize. “Some of the things that hold clients back from downsizing are physical, like what to do with a house full of possessions they’ve spent their entire life collecting,” Kelleher says. “I like to give them solutions, then line up those solutions for them. I will bring in people to do estate sales, for example. I will bring in people to pack things up and take them to Goodwill, then give the client receipts for tax purposes. Whatever it takes.”
SIZING
Keep Your Eye on the Prize Working with downsizing clients has many advantages. For example, they already have experience with the homebuying process and know what to expect from it. Likewise, they typically have a good idea what they want, having lived in their current home long enough to know what they like and dislike. Downsizers could also experience unique challenges, however. For instance, they’re typically very discerning, according to Marra, who says downsizers often have a long wish list and—because of their retirement planning— little give in their budget. As a result, home searches may take longer than usual. “They know exactly what they want and they know exactly how much they can spend. I just have to find it,” Marra says. One of the most common challenges is adult children. “If a buyer is beyond age 70, there’s a higher chance they’ll have other family members in the picture helping to make the buying
decision,” Ochylski says. “When that’s the case, you have to find out at the very beginning who the real decision-maker is—the parent or the child.” Given these and other potential hurdles, the final step toward succeeding with downsizers is keeping in mind how and why you’re helping them. If you do, you’ll be inspired to serve them with creativity and commitment— both of which can stimulate word-of-mouth referrals that turn a single downsizing client into a thriving downsizing specialty. “Baby boomers have been very good to me,” Marra concludes. “I find it very fulfilling to help them start a new phase in their lives.”
For even more information, check out the webinar Building a Profitable Seniors Business, with Sandy Borman.
Matt Alderton is a freelance writer based in Chicago.
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The Council of Residential Specialists
crs.com
May 35 June
resources for learning & leisure
GOOD READS
SHE SEES
rude people
What do leaders and organizations lose— both morally and in market share—when they allow rudeness to run rampant? By Allan Fallow
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Mastering Civility arrives at a particularly coarse moment in American political and business culture, with the 2016 presidential campaign having pushed vituperaMASTERING CIVILITY tion and vitriol to A Manifesto for the new heights—new Workplace depths?—and accuby Christine Porath sations of sexual Grand Central harassment and Publishing assault toppling 230 pages, $25.00 several pillars of the entertainment and media worlds. Indeed, when author Christine Porath—a management professor at Georgetown University’s McDonough School of Business— conducted her 2016 Civility in
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America survey, 95 percent of respondents told her they believe “we have a civility problem in America.” And 70 percent believe it has reached “crisis proportions.” But why should this matter to anyone other than preschool teachers, hotel concierges and career diplomats? Isn’t the brash, hardnosed businessperson a revered national trope? Not if you want your enterprise to flourish, Porath’s research reveals. In addition to the moral imperative of simply treating people better, money still talks for most organizations, says Porath. That’s why her lifetime crusade is “to show that incivility hits bottom lines hard.” According to the American Psychological Association, workplace stress saps the U.S. economy of $500 billion per year. Meanwhile, OSHA reports that workers under constant duress on the job cost insurers and health care providers 46 percent more than their less-stressed colleagues. Porath devotes much of her book to gauging the scope of the civility epidemic, yet Mastering Civility is no mere policy primer. She decided to subtitle the work “a manifesto,”
she explains, after two decades’ work in the field persuaded her that incivility is metastasizing by the day: “All of us desperately need to change this reality, for the sake of people and organizations.”
Boorish Bosses
Indeed, whereas Porath’s credentialheavy résumé might tempt you to assume she dwells in an ivory tower, she too has had her share of workplace run-ins with boorish bosses. Some—like the holidayparty encounter where “a powerful professor” loudly accused her of having published a book with a “f***ing stupid title”—left her shaking with doubt and mortification. Others woke her to the reality of just how systemically enfeebling and counterproductive rudeness can be. Early in Porath’s career, for example, she landed her “dream job”—helping a global brand set up a sports academy—only to discover that crassness and bullying were the order of the day: The actions of a narcissistic, dictatorial boss trickled down through the ranks. Employees felt disconnected and disengaged. Some intentionally
sabotaged the organization. … Many took out their frustrations on others, barking orders at colleagues [and] making snide remarks to customers. … Many talented people left, with some joining competing businesses. I was one of them.
Civility Fundamentals
So what can managers do to guarantee they are treating others in a civil manner? Those subjects are tackled in Parts 2 and 3 of Mastering Civility, where Porath makes the case that how well we treat others translates directly into how influential and effective we are. First she invites us to take a “civility quiz” she designed. But Porath isn’t trying to cast you as the “jerk in the office,” she maintains; she simply wants to illustrate her conviction that “incivility usually arises not from malice but from ignorance.” So be prepared that her 32-question assessment (titled “Do you ever do any of these?”) may reveal that, yes, you do have a tendency to rely on email when a face-to-face chat would have been the more humane way to deliver the information in question, or that, no, you’re not truly listening to colleagues if you’re in the habit of checking email during meetings. It’s a start—a way to determine if something about your body language or tone of voice could stand some tweaking. But quiz results alone cannot help you master the two behavioral traits—warmth and competence—that account for more than 90 percent of the positive or negative opinions we form of those around us. And those two behaviors are fundamental to success, says Porath: When “people see you as warm and competent, they’re more inclined to trust you, build relationships with you, follow you, and support you.” Some of the “seven simple strategies” she offers for homing in on any blind spots in your
comportment make sense: Work with a coach, solicit 360-degree feedback and teach yourself how to read others’ emotions. Others sound impractical: Who among us has the time to collect “positive examples of [our] best behavior” (or “most respectful self”) from 10 coworkers, friends or family members? Who among us is part of a work team that could withstand having “an open discussion about how and when you and your teammates are less than civil to each other?” That said, it strikes me that Porath’s Strategy #7—“Take Care of Yourself”—should be required reading for anyone in sales who has ever seen their performance suffer by stinting on exercise, sleep, nutrition or meditation. And call it what you will (“reset,” “refocus,” “reflection”), some sort of mindfulness practice is a documented safety valve for staying calm when you’re flustered: One hour of yoga a week, the Duke University School of Medicine discovered, decreased the stress levels of Aetna employees by one-third. It also cut their healthcare costs by $2,000 per year, on average. Oddly for a book that delves so deeply into personal interactions, Porath’s final part, “Handling Incivility If You’re the Target,” merits a mere 13-pages. Yet it’s here that anyone who’s been on the receiving end of an episode of professional disrespect should start reading. Porath counsels us to cultivate a sense of thriving, for it can serve as both buffer and balm to the toxic effects of incivility: “It may not be realistic for you to ‘toughen up,’ ” she writes, “but you can choose not to worry about what was said or done to you. … Don’t let someone make you a smaller version of yourself.” Wise words from a civil tongue.
YO U M I G H T A L S O L I K E …
UNSHAKEABLE by Tony Robbins [Simon & Schuster] 256 pages $ 15.60/hardcover Best-selling author Tony Robbins offers a step-by-step resource of how to transform your financial future. HIT MAKERS by Derek Thompson [Penguin Press] 352 pages $ 14.64/hardcover A groundbreaking investigation into pop culture and why we like what we like. RISING STRONG by Brené Brown [Random House Trade Paperbacks] 352 pages $ 9.75/paperback This New York Times Bestseller looks at the defining stories of people who chose to get back up after a fall. THE UPSTARTS by Brad Stone [Little, Brown and Company] 384 pages $ 19.23/hardcover A look at the new generation of Silicon Valley and how it’s using technology to disrupt entire industries and change the way we live.
Allan Fallow is a magazine editor in Alexandria, Virginia.
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The Council of Residential Specialists
crs.com
May 37 June
G U E S S W H AT ’ S C O M I N G T O D I N N E R
resources for learning & leisure
DINNER DELIVERED
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After a busy day, it’s easier to order takeout than head to the grocery store. But with fresh, pre-portioned ingredients and recipes delivered right to your door, meal delivery services make it simple to prepare a home cooked dinner. Here are few of the most popular options:
$
8.74+ per serving
$ 12 per serving
Blue Apron
The goal of this well-known subscription service is to build a better food system by focusing on high-quality, sustainable ingredients. Recipes feature no GMOs, seafood recommended by Seafood Watch®, and meat with no added hormones and antibiotics. You may choose between the 2-Person Plan or Family Plan, pick your meals for the week and opt for delivery days that work with your schedule. Plus, you can cancel at any time. It even offers a separate wine program.
Plated
blueapron.com
plated.com
Plated lets you choose the exact recipes you want so you can cook from twice a week to every night. Each week, choose from 11 recipes, including dessert, that focus on fresh, seasonal ingredients. An added bonus is that dishes range from quick and easy to ones that are culinary adventures. Meal plans are available from two to four servings per night on the days of your choice. You can skip weeks or cancel at any time.
9.95 per serving
CRAFT COFFEE Price varies craftcoffee.com
Craft Coffee recommends one of its flagship blends based on your favorite brand of coffee, and matches the price.
MISTOBOX Price varies ❘ one.mistobox.com Set your preferences, such as roast level and coffee type, and MistoBox will send a 12 oz. bag from one of its 30+ artisan coffee roasters.
$
Home Chef
Home Chef has a large variety of meals, including breakfast, with 10 options to choose from each week. Like others, you choose how many meals and servings (a minimum of two for each) you want to receive each week, and you pay per serving. In addition to meals, one smoothie recipe and a bag of seasonal fruit are available as add-ons. Home Chef also recommends meals based on your eating habits and desires. homechef.com
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COFFEE SUBSCRIPTION SERVICES
12.50 per serving
$
May June
YO U M I G H T A L S O L I K E …
The Residential Specialist trsmag.com
PeachDish
PeachDish is the meal delivery service with a Southern influence. The eight options offered each week highlight the Southern farms and food artisans from which PeachDish sources the food. And while you can sign up for a subscription, you may also order individual meals (the minimum order is $45, which includes two servings). PeachDish also has a separate store with desserts, jams, spice blends, flavored salts, meats, cookbooks and more. peachdish.com
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CREMA.CO Price varies ❘ crema.co Learn about the farmers, regions and roasters attached to each coffee, then create your own brew list.
inside
NEW PRODUCTS & SERVICES FROM CRS
A lot of new benefits are coming your way this year. We just launched a brand new ‘Find a CRS’ tool powered by Agentdesks, which provides CRSs a more detailed look at each agent, including current listings, and makes contact information easier to find. We have a new consumer-focused webpage that features fresh content designed for consumers, and a brand-new “Why Use a CRS?” page that easily
explains the designation and the benefits of finding a CRS. And don’t forget to look for the new CRS Print Portal, where you can order CRS-branded materials and customize them to include your name and logo. Finally, we are launching new designation requirements in 2018, which require members to take at least two hours of CRS education within a calendar year to maintain the high standards.
CRS news from the council
GET ON THE MAP Find a CRS gets a big upgrade.
Ø
In case you haven’t noticed, ÄAbility Ä to send a referral through Docusign “Find a CRS” looks a little ÄÄDashboard to track your referrals different these days. The online Your new “Find a CRS” is available online at find.crs.com referral and networking directory or through crs.com under the CRS Referral Network button, is now powered by technology inno- and can be accessed on mobile by downloading the Agentvator Agentdesks, making referrals easier with more agent desks mobile app in the App Store or Google Play. You must information and better connectivity. sign up for Agentdesks with your CRS email address to get “Find a CRS” now offers the following new features: customized access for CRS Designees. ÄAvailable Ä on mobile with a messaging tool In addition, as a result of the Council’s partnership with ÄÄ Enhanced search to include desigAgentdesks, all CRS Designees get the If you have any questions, nees in a broader radius of any city Agentdesks Professional plan for free please reach out to our searched (a $180 value). The plan includes a customer support team at crshelp@crs.com or call ÄÄ New public profiles mobile first CRM and access to exclu800-462-8841. For any ÄÄ Sleek new design sive CRS regional groups, as well as a product-related questions, you ÄÄ Includes your public active listings 25 percent discount on the Agentdesks can also reach Agentdesks at crs@agentdesks.com. ÄÄ New Referral Management capability team plan.
20 17
The Council of Residential Specialists
crs.com
May 39 June
inside
CRS news from the council
NEW PRODUCTS & SERVICES FROM CRS
AT YOUR DEMAND
If you have been looking for business cards, listing folders, sign riders, thankyou notes or consumer flyers that promote your CRS Designation, the Council now has a quick and easy way to make them. CRS has partnered with Lake County Press to offer you an exclusive, designee-only portal where you can customize and order a selection of printed materials with the CRS logo. Using the Print Materials Portal, you can customize these materials with your own logo and business information and order the amount you need, delivered directly to you. Currently available CRS-branded materials include: ÄÄ CRS notecards ÄÄ Business cards ÄÄ Sign riders ÄÄ Listing presentation folders ÄÄ Consumer flyers
Access the print portal at CRS.com/ resources/ marketing/ print-portal.
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The Residential Specialist trsmag.com
20 17
NEW PRODUCTS & SERVICES FROM CRS
ADDED value
New consumer webpage explains value of working with a CRS.
Ø
CRS has a new consumer-facing webpage that clearly illustrates the value of a CRS and offers snackable, shareable content about buying and selling homes. You can find the new site at crs.com/best-real-estateagents or at the For Home Buyers/Sellers tab on the top right side of the CRS homepage. The new page has a feature section, “Why Work with a Certified Residential Specialist?” that breaks down the best reasons to work with a CRS. It educates consumers on how much more advanced education, training, experience and measurable success is required to become a CRS compared to the average REALTOR®. The article includes a graphic that spells this out:
The new page also has informative articles divided into categories for buyers and sellers with content on home upgrades. CRSs are encouraged to share these articles on their own websites and social channels. The articles include titles such
as “5 Mistakes to Avoid When Selling Your Home” and “7 Reasons to Stop Renting.” The articles circle back around to the benefits of using a CRS and guide consumers to use the “Find a CRS” search tool to find a CRS in their city, state or ZIP code.
DESIGNATION WITH DISTINCTION CRS Designees will now be required to take two hours of CRS education within a calendar year, in addition to paying their dues, to maintain their designation standing. This change was approved by the Board at the Annual Meeting as a measure to help differentiate
the CRS designation. The new requirement will take effect for the 2018 renewal period. CRS Designees will have the entire 2017 calendar year to earn the two hours of education credit they need prior to renewal. The two hours can be fulfilled by taking any
CRS classroom, eLearning course, live or recorded CRS webinar, or by attending Sell-a-bration®. Find a list of more than 15 free webinars online that you can download and listen to anytime at our Free Webinar Library (crs.com/ free-webinar-library).
Titles include “Best In Tech: Really Cool Real Estate Apps to Simplify Your Business,” “Build a Powerful Niche with Residential Real Estate Investors,” and “Communicating Effectively with Buyers and Sellers.” You can also tune in during CRS Week, Sept. 11–15, for free,
20 17
The Council of Residential Specialists
live webinars. The CRS Designation is the most recognized and prestigious professional designation in the industry, and this new continued learning requirement is designed to help reinforce the value and distinction of the CRS Designation.
crs.com
May 41 June
learn
from the
BEST strategies from the industry’s top educators
SIMPLE AS
1-2-3
Employ these marketing solutions to ensure past clients return again and again. when they’re buying and selling, but all the years in between. A powerful message is that “I help people be better homeowners not only Nine out of 10 buyers and sellers are satiswhen they buy and sell, but all of the years fied with the service they received and say in between. I want to be your REALTOR® they’ll use the agent again and refer business to for life.” them. Unfortunately, the reality is that less than 3. Market Your Message. Once the market 15 percent actually do. The median agent has and the message have been identified, it must been in real estate for 12 years, with 12 transacbe delivered consistently through all forms of tions a year. Doing the math indicates that there media. Direct HTML mail and social media are at least 11 lost transactions a year over the are by far the most efficient and easiest to 12-year period for each agent. automate. Even though this will probably Just because you sold them the home doesn’t make up the bulk of the communications, mean you’ll be their next agent, and it’s not for in-person and phone contacts are still a necthe reason you may think. essary part of top-of-mind awareness. Doing a good job is the foundation, but As Zig Ziglar said: “If you help enough people obviously it isn’t the determining factor. Mainget what they want, you’ll get what you want.” taining top-of-mind awareness is what will earn Helping people be better homeowners is very repeat and referral business. Inconsistency and much like continuing education. It includes a inadequate marketing costs agents much more variety of topics like maintenance, remodeling, money than they can imagine. saving money, energy efficiency, financing, Content marketing provides information that taxes and other day-to-day responsibilities of consumers consider valuable. The challenge is homeownership. delivering relevant and interesting content that Instead of the basis of your message being, spans the years between when they buy and sell. “Do you know of anyone who wants to buy or It needs to help your contacts and differentiate sell a home?” your focus is on providing easily yourself as their personal voice of real estate so digestible nuggets of information that will help they’ll not only use you next time, but refer you them now or in the future. This will keep your to their friends. name front and center as their source of real The solution is as simple as 1-2-3. estate information. 1. Determine your market. NAR research The best part of this solution to maintain top shows that 64 percent of sellers and 53 perof mind awareness is that it can be automated. cent of buyers select an agent based on Whether you use an assistant or get assistance, a relationship: past customer, friend or a it needs to be a system to ensure consistency. referral from someone they know and trust. The information can be a combination of creThe most valuable market is the people ated and curated content. It’s all about branding you’ve done business with in the past and the message so they think of you when they the people you know. Your database is critthink of real estate. ical to your efforts and should be given the Pat Zaby operates InTouch, a product that priority it deserves throughout your career provides automated content marketing in real estate. through personalized email and social 2. Determine your message. The chalmedia. For more information, go to PatZaby.com/CRS. lenge is being valuable to them not only By Pat Zaby, CRS
Ø
CRS INSTRUCTOR
Pat Zaby began his career with a bachelor’s degree in real estate from the University of North Texas and earned the CCIM, CRB and CRS designations. He’s been involved with CRS since its inception and an instructor since 1983.
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The Residential Specialist trsmag.com
20 17
YOUR CRS
network
SOUTH
expand your network
Ø
In 2015, James Brockway, CRS, broker-owner of Brockway Realty, LLC, was contacted by Bill CONNECTION Kuhlman, CRS, of Keller Williams Boston South West. PERFECTION Bill had a client moving to League City, Texas, where James is based. Bill viewed biographies of the agents in the area through “Find-a-CRS,” and he felt that James’ firm would be the best fit based on the profile. “Bill interviewed me on the phone to make sure his client would be taken care of,” James says. “We talked about CRS and how it benefited us, and discussed how we determine who we will refer to, based on the profiles on crs.com and phone call interviews. We both commented on the success we’ve had with CRS.” The client moved to Texas, James showed homes and closed a transaction. He kept Bill up to date on the process so he would know his client was in good hands. It was a successful CRS transaction—and a good reminder to make sure your CRS profile is up to date and robust.
SOUTH
SOUTH
SOUTH Book now for Spring and Summer
KENT REDDING
Choose from over 11 CRS classes!
BROKER, GRI, CRS, ABR
ABR, CRS, SRES, GRI, CDPE
The Kent Redding Group Berkshire Hathaway
Serving Northern Virginia and the Dulles Tech corridor Re/Max Premier offices in
Ashburn, Fairfax and Leesburg
Direct: 703-999-6535 Office: 571-207-7010
lisacromwell@remax.net www.LisaCromwell.com
SOUTH
CRS
connect
Texas Realty
512.306.1001
AUSTINTEXAS Kent@CallKent.com www.CallKent.com
MikeMyCoach.com
4 5590 (302) 58
WEST
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 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
20 17
The Council of Residential Specialists
crs.com
May 43 June
CRS
connect
CRS
expand your network
CLASSROOM COURSES
CRS classroom courses earn either eight credits (for 100-level, oneday courses) or 16 credits (for 200-level, two-day courses) toward the CRS Designation. At press time, the CRS courses listed below were scheduled for 2017. For more up-to-date listings, visit crs.com.
CRS 103—Mastering Your Time to Achieve Your Goals June 13—Columbia, Maryland [Maryland/D.C. CRS]
CRS 120—Converting Leads Into Closings June 28—Tallahassee, Florida [Tallahassee Board of REALTORS®/Florida CRS]
CRS 121—Win-Win Negotiation Techniques June 27—Amarillo, Texas [Texas CRS]
850-224-7713
Instructor: Dale Carlton, CRS
443-812-8271
Instructor: Kim Knapp, CRS
512-791-4240
WEST
Craig Zager Selling Lake Tahoe since 1989 Over 700 million in Tahoe sales
Instructor: Mike Selvaggio, CRS
Sell Sell phone: phone: 775.901.4663
Continued on page 46 }
craig@CraigZager.com
www.LakeTahoeAgent.com
WEST
WEST
WEST
COLORADO
CALIFORNIA’S MONTEREY PENINSULA
A trusted name on the Monterey Peninsula for nearly 50 years!
Joan M. Pratt
MS, CRS, CLHMS, CDPE, CARI
Dedicated to delivering exceptional service to you and your clients.
DenverMetroReferrals.com
720-506-3001
“Elevate Your Expectations”
Serving the Portland Metro Area
w w w. l a n e r e a l t y w o r k s . c o m
WEST
Sotheby’s International Realty 831-236-7251 terry.mcgowan@sothebyshomes.com www.terrymcgowan.com
Lori Lane, CRS, Owner (503) 703-7544 lori@lanerealtyworks.com
RE/MAX Professionals
« « « « « Voted Five Star Agent for Overall Satisfaction for 5 Straight Years!
Terry McGowan CRS, GRI, ABR, SRS, e-Pro, SRES Cal BRE# 01126129
WEST
Specializing in helping You reach Your Real Estate goals since 1991!
WEST
MAUI Real Estate
www.JoanneFoxxe.com
DEREK MIYANO CCIM, CRS, GRI, ABR, CNE Broker/Owner
Service with a Smile
808-385-2918 jofoxxe@gmail.com
Joanne Foxxe CRS, GRI, SRES e-pro Maui CRS director
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The Residential Specialist trsmag.com
20 17
702-315-6100
dmiyano@yahoo.com 4604 W. Sahara Ave. #3 Las Vegas, NV 89102
CasaLasVegas.com
Reach more than
30,000 CRS peers with your ad here.
Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127
WEST
WEST
Clients moving to Portland Oregon?
WEST
COLORADO
Licensed and Serving the entire Portland OR / Vancouver WA Metro area!
MARK COOPER
Thom Butts
ABR, CRB, CRS, e-PRO, MRE
Former Denver Bronco No. 63
CRS, ABR, e-Pro Real Estate Broker
25+ Years Real Estate Experience
Cell/Text
971-998-6309
303-843-1545
afccoop63@gmail.com
thombutts@remax.net I specialize in making your home sale or purchase the easiest and most stress-free that I can!
www.thombutts.com
WEST
www.come2colorado.com WEST
WEST
Your Connection to the Oakland Bay Area Alameda & Contra Costa Counties
san francisco
Delores “Dee” Johnson
Patrick Lowell Broker Associate PatrickLowell.com 415 971 5651
Broker Associate, CRS, SRES, BPOR, CHS, CCRM, SFR, e-Pro
510-418-3007
deloresdjohnson.com djohnson33@sbcglobal.net “Serving you with an Attitude of Gratitude”
Lic 01372286
BRE # 01351847
WEST
NORTHEAST
CANADA
Your referral source for the greater
Pittsburgh
area
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
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The Council of Residential Specialists
crs.com
May 45 June
CRS
connect
CRS CLASSROOM COURSES
expand your network }Continued from page 44
CRS 123—Mastering Relevant, Consumer-Focused Marketing May 24—Corpus Christi, Texas [Texas CRS] 512-791-4240
Instructor: Frank Serio, CRS CRS 125—Zero to 60 Home Sales a Year (and Beyond) May 23—Corpus Christi, Texas [Texas CRS]
CRS 202—Effective Buyer Sales Strategies May 22—Pembroke, Massachusetts [Northeast Region CRS & Plymouth and South Shore Association of REALTORS®] 781-839-5506
Instructor: Jackie Leavenworth, CRS June 7—Denver, Colorado Denver Metro Association of REALTORS® 303-756-0553
Instructor: Rich Sands, CRS
512-791-4240
Instructor: Frank Serio, CRS CRS 128—Luxury Home Sales June 5—Fairfax, Virginia [Virginia CRS]
June 8—Spokane, Washington [Washington CRS/Idaho CRS/Spokane Association of REALTORS®] 360-901-0307
Instructor: Frank Serio, CRS
804-2489-5722
Instructor: Gee Dunsten, CRS CRS 166 & 167—Certified Luxury Home Marking Specialist Training, Parts I & II June 20 & 21—Incline Village, Nevada [Nevada CRS] 214-485-3000
Instructor: Tami Simms, CRS CRS 201—Listing Strategies for the Residential Specialist May 18—Hartford, Connecticut [Connecticut CRS] 203-214-6115
Instructor: Jackie Leavenworth, CRS June 6—Hasbrouck, New Jersey [Eastern Bergen County Board of REALTORS®]
CRS 206 —Technologies to Advance Your Business May 23—McAllen, Texas [Greater McAllen Association of REALTORS®] 956-682-4119
Instructor: Mark Porter, CRS June 13—Edwards, Colorado [Vail Board of REALTORS®] 970-766-1029
Instructor: Rich Sands, CRS CRS 210—Building an Exceptional Customer Service Referral Business May 23—Chattanooga, Tennessee [Greater Chattanooga Association of REALTORS®/ Tennessee CRS] 423-702-7423
Instructor: Gee Dunsten, CRS
201-288-5000
Instructor: Gee Dunsten, CRS June 20—Gray, Tennessee [Northeast Tennessee Association of REALTORS®] 423-477-0040
Instructor: Robert Morris, CRS
May June
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The Residential Specialist trsmag.com
Elective Courses Elective courses vary in length and credits earned toward the CRS Designation. Please visit the CRS website for details at crs.com.
20 17
PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS
EDIT
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 M AY/J U N E 2 017
Tips and tre nd s for homeow ners, buyers and sellers
ROI IS KING Ø
Every smart homeowner knows that major—or even minor—remodeling projects should be undertaken with one eye on design and the other on the ROI. You want to be comfortable with whatever return on investment you receive for upgrading your home because, unfortunately, many upgrades won’t entirely recoup their cost upon sale. But the use you get out of the home with the upgrade might still make the construction worthwhile, regardless of the ultimate selling price. Here’s the top 10 remodeling projects that provide the best return on investment nationally.
COST RECOUPED
AVERAGE JOB COST
RESALE VALUE
Add a family room
69.3 percent
$89,566
$62,055
Finish the basement (cost estimate includes bar area, main room and bathroom)
70 percent
$71,115
$49,768
Add a two-story addition (cost estimate includes adding a family room, bedroom and bathroom)
71.1 percent
$176,108
$125,222
Add a wood deck (cost estimate includes built-in bench and planter)
71.5 percent
$10,707
$7,652
Replace the siding
76.4 percent
$14,518
$11,093
Replace the garage door
76.9 percent
$1,749
$1,345
Complete a minor kitchen remodel (cost estimate includes new cabinet fronts and hardware, new energy-efficient appliances, laminate countertops, mid-priced sink and faucet, dingy floor replacement and wall paint)
80.2 percent
$20,830
$16,699
Install a manufactured stone veneer (instead of vinyl siding)
89.4 percent
$7,851
$7,019
Replace your entry door with a steel door
90.7 percent
$1,413
$1,282
Add fiberglass attic insulation
107.7 percent
$1,343
$1,446
RANKING
10 9 8 7 6 5 4 3 2 1
PROJECT
PORCH OR DECK?
Despite some homeowners’ desire for a nice outdoor eating space, decks have fallen in popularity in newly built homes. Meanwhile, the number of homes being built with porches is climbing. A decade ago, 54 percent of new homes had porches, while now almost 64 percent do, according to the National Association of Home Builders. In 2008, deck popularity peaked at about 28 percent, and now it is down to 24 percent. But, of course it depends on your market. In states like Kentucky, Tennessee, Mississippi and Alabama, nearly 90 percent of homes are built with porches, and in the mountain states, 75 percent have porches. In the northeast, 70 percent of homes are built with decks, so homeowners in that area certainly aren’t embracing the porch trend. In Texas, only 5 percent of homes have decks. Want to know the specifics of your area before adding an outdoor space? Talk to a Certified Residential Specialist REALTOR® today.
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
DO YOU KNOW SOMEONE WHO IS THINKING ABOUT BUYING OR SELLING A HOME? PLEASE MENTION MY NAME.
LS!
ER OV
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.
EQUAL HOUSING
OPPORTUNITY
Tips and trends for homeowners, buyers and sellers
Ø
safer selling
You’ve decided to sell your home and naturally you want to sell it quickly, profitably and smoothly. To maximize your success, here are are five common and costly mistakes to avoid when selling your home.
MISTAKE #1 Overlooking repairs Making repairs before selling is a must. These include electrical issues, water damage, rotten or chipped flooring, or a leaky roof. Consider getting a pre-inspection to uncover necessary repairs that might spook buyers and cause them to lower their offer or back out of the deal.
MISTAKE #2 Overpricing your home Buyers are going to compare a sale price to other homes in the area, so your home should be priced competitively. Make sure your REALTOR® provides a comparative market analysis to help establish a competitive price and has their own system for helping you price your home.
SAY YES TO CRS
MISTAKE #3 Over-sharing with buyers Another costly mistake is having too much communication with potential buyers. You don’t want to give away too much information to potential buyers, which could be used later during a sale negotiation. Either make yourself scarce during showings or think carefully about what you disclose to buyers.
MISTAKE #4 Poor staging Both a cluttered home and an empty home will be unappealing to buyers, so proper staging and curb appeal are important. A majority of buyers are shopping for homes online these days, so consider bringing in professional staging and photography services.
MISTAKE #5 The wrong attitude This includes both patience and setting expectations too high. Not every prospective buyer will submit a bid—some are just window-shopping or are interested in a nearby home. Remembering that browsers are part of the home-selling process will help keep disappointment at bay.
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.
R E A LT O R S ® P O L I T I C A L A C T I O N C O M M I T T E E
Invest
IN YOUR
We’re so very proud to have a serious representation of Certified Residential Specialists in the RPAC Major Investor category. They’re listed here. Is your name missing? We want to help you achieve the level of the Complete REALTOR®, too! Michael Aid Bruce Ailion Amy Albright Honey Bee Anderson Nancy Anderson Jean Andrews Francisco Angulo Ennis Antoine Brian Anzur Char Atnip Ken Austin Diana Ayers Colleen Badagliacco Deborah Baisden Justin Baker Karen Baker Lana Baldus Christina Banasiak Sonda Banka David Barber Angela Barner Paula Beasley Michael Becker Cami Beckley Pat Beech Mary Begier Sandy Benson Sharon Benson
Bradley Bentz Tom Berge, Jr. Lucio Bernal Teresita Bersach Cynthia Biggs Margaret Billinger Cynthia Birge Margaret Bishop Annie Blatz Rosemarie Bogosian Dale Bordner Claude Boring Dorothy Botsoe Lisa Bourgoyne Sharon Bowler Ann Bracci Mark Brace Ginny Brandau Diana Braun Patricia Brewer James Bringhurst Danny Brock Audrey Brodie Brett Brown Jessica Brown Leigh Brown Steven Brown Patricia Buck
Vickie Burgess Michael Burkhard William Burton Scott Caballero Mary Jane Cambria Anthony Canizares Gary Cannon Timothy Cannon Thomas Carnahan Sue Cartun Otto Catrina Betty Chan Eddie Chang Gayle Chapel Lori Chapman Allen Chiang Philip Chiles Carolyn Chodat Walter Christensen Dale Chumbley Ken Clark Lorraine Clark Christina Clauss Colleen Clavesilla Christina Clemans Patricia Coan Shannon Cobb Evans Bradley Cohen
Catherine Cole Anita Colletti Alvin Collins Cathy Colvin Brian Copeland Steve Coram Michelle Crabtree Sally Crain Meri Crandall Denise Creswell Karen Crowson Bethany Culley Ben Cushing KC Cyga Patrick Dalessandro Sandy Darling Susan Davis Barbara Davis-Hassan Kimberly Dawson Chris Dean Mark-Allen DeCastro Julie DeLorenzo Martha Dent Lois Ann Disponett Margaret Dixon Paul Dizmang Harriette Doggett Candis Dorsch
20 17
Carolyn Dozois Barbara DuDeck Elizabeth Duenas Allen Duhe Shelly Duncan Laura Durham Mary Dykstra David Alan Earls Ryan Eashoo Dan Easton Erin Eker Bruce Elliott Robyn Erlenbush Bill Evans Bonzie Everson Carey Farmer Gloria Farrar Sherry Farrell Don Faught Angelina Feichko Patricia Fell Linda Fercodini Caroleen Ferrell Drew Fishman Patricia Fitzgerald Beth Foley Claire Forcier-Rowe Linda Fosdick The Council of Residential Specialists
Bikel Frenelle Karen Frisone Teri Frye Amanda Fulford Keith Fuller Vicki Fullerton William Furst Wendy Furth Greg Galli Anthony Gamber Amy Gamble James Gamble Ralph Garrow, Jr. Vickie Gartley Debra Gisriel Michael Godfrey Brenda Gooslin Wes Graham Judith Grammond Lynn Grimsley Matthew Grohe Dale Gross Glenda Grow Robert Hackney Berton Hamamoto Terri Hardee-Romere Lauren Harkins Wiuff David Harman
Ü
crs.com
May 49 June
Invest Rick Harris Margaret Hartman Gail Hartnett George Harvey Cynthia Hawks White Ann Hayes Sally Heimbrook Lynn Heintz Dorcas Helfant-Browning Glenn Hellyer Kristy Henry Febra Hensley Jaime Hensley Gregory Herb Rosa Herwick Connie Hettinga Jan Hicinbothom M. Scott Hillman Karalyn Hoefer Tana Hoffman Judy Holland Lisa Hollister Tom Hormel Carole Horn Thomas Hough Carol Housen Harold Huggins Michael Hunstad Tim Hur Dana Hybl Michael T. Inman Karen Irace Meg Irwin Paula Jackson Bob Jacobs Jason Jakus Kay Jefferies Mary Ann Jeffers Terri Jeffries Cecelia Jenifer Jo Jenkins Anna Johns Dennis Johnson Janene Johnson Ulrike Johnson Michael Johnston W. Johnston Joan Jolly Clark Jones John Joynt
May June
50
IN YOUR
Sandy Kaplan Sharon Keating H. Fred Kendrick Jo Kenney Barbara Kennon David Kent Ilene Kessler Daniel Kijner Sari Kingsley Ryan Kirkham Janice Kirkner Charles Kitchen Amy Kite Bess Kline Kevin Knight Mimi Kopassis Sarah Korczynski Darlene Kovarik Joan Kuptz Timothy Kuptz Connie Kyle Vonda Lacey Barbara Lach Laurie LaDow Claire Larson Mark Leaders Price Lechleiter Dennis Ledford David Legaz Jan Leighton Craig Lelis Joyce Leonard Jack Levine Rob Levy Patrick Lieuw Mary Lindgren Margaret Lindsay Emily Link Rollie Litteral Christopher Little Eva Loken Dorrie Love Laurie Lowson George Lucas Velda Lueders Kaki Lybbert Cindy Lynch Susanna Madden Jim Maddox Kimbee Mahle
The Residential Specialist trsmag.com
Mary Manatos Lori Manning Alexander Manos Leslie Manzone Michael Marcus Cindy Marsh Tichy Helen Marston Eloise Martin Jerry Martin Lance Martin Scott Matthias R. Brian Matza K.C. Maurer E. Michael McAleer Michael McAleer John McArdle Tim McBrayer Alice McCain David McCarthy Marsha McConnell Terriann McGowan Jenel McGrath George McGraw Michael McGrew Jewell McKinney Bruce McKinnon Robert McMillan Linda McMorrow Mary McNaney Stephen Medeiros George Mees Gonzalo Mejia Michael Mendicino Byron Menke Jolaine Merrill Rebecca Merwin DeAnna Miller Kathleen Miller Paula Miller Sandra Miller Terry Miller Jay Mitchell Gene Mock Judi Monday Judy Moore Maia Morrison Veronica Mullenix Trish Myatt Judith Myers Deda Myhre
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Maura Neill Jeffrey Nelson Kenneth Neufeld Helen Nicholas Melanie Norris Vickie Noyola Al-Souki Lynda Nugent Smith Norman O’Grady Patricia Ohmberger Allen Okamoto Michael Oldenettel Brenda Oliver Myra Oliver Robert Oppenheimer Piero Orsi Heather Ozur Deanna Palmer Michael Pappas Axay Parekh Gregory Pawlik Sandi Pfister A. Janelle Pfleiger Ronald Phipps Joan Pike Cameron Platt Bruce Plummer JoAnne Poole John Powell Jean Powers Sher Powers Marie Presti Myra Pruit Melinda Randall Dianne Rath Sulinda Ready Pamela Reese Ellen Renish Linda Rheinberger Donna Rice Nancy Riley Gail Rizzo Doreen Roberts Bonnie Roberts-Burke David Robison Krystal Rogers Jolon Ruch Pam Ruggeroli Caroline Russell Terry Ryan Tracey Saizan
Jon Salvador Eva Sanders Leonard Sarvela Susan Savage Leroy Schaeffel Karen Schweinfurth Don Scordino Christine Seidel Mark Shepherd Morrie Shepherd Milton Shockley Charlene Singley Thomas Skiffington Sue Ellen Slagel Janice Smarto Donna Smith Leslie Smith Sherry Smith Darlene Sodano Rick Southwick Wynona Squires Cindy Stanton Sheila Stanush Patricia Steele David Stevens Stephen Stewart Hagan Stone Sarah Stovall Richard Strahm Lisa Suarez Tamara Suminski Christopher Suranna Nancy Suvarnamani Carl Tackett Betty Taisch Guy Tamashiro Jennifer Tasto Maurice Taylor Christopher Tenggren Fiona Theseira Devon Thomas Brenda Thompson Cecily Tippery Jack Torza Linda Trevor Vincent Truong James Tsighis Roger Turner Vicky Turner Raziel Ungar
Angela Uttecht Nancy VanValkenburgh Richard VanValkenburgh Janice Vasquez Michael Verdone Donna Villar Quincy Virgilio Sharon Voss Ray Wade Stephanie Walker Stephen Walker Michael Wallin Adam Watkins Kay Watson Jeannette Way Jim Weaver Doyle Webb Carolyn Webber Katrina Wehr Scott Wendl Catherine Whatley Thomas Whatley Phoebe Whealdon Alan Whisenhunt Steve White Colleen Wiginton Robert Wigton Brenda Wild Watkins Wild Bruce Williams Melvin Wilson Paul Wilson Bradley Winget Pam Winterbauer Kay Wirth George Wonica Denny Wood Jack Woodcock Judie Woods Robert Wright Therese Wunderlich Doyle Yates Arleen Yobs Kamyar Zargari Shea Zimmerman Only members of NAR and their families may contribute to RPAC.
OPEN FOR BUSINESS With more than 60 approved merchants like the ones below, the CRS Vendor Marketplace offers great deals on products and services that can help improve your business and enhance your personal life. Whether you are looking for a new CRM system, a tablet device or car rental, you will find something to help you save time, enhance client relationships, and build your personal brand or future sales as well as referrals.
Available exclusively for CRS members, explore product categories such as education, travel, marketing and more. Or search for a specific product or service by name like HotelStorm which has arrangements with over 700,000 worldwide properties that can save you 10 - 55% over other travel sites.
Even add your own reviews and ratings. To find out more, just visit crs.com and click on the Vendor Marketplace link at the top of the home page.
ask a
CRS advice from your peers
Q:
NOT A BIRD, NOT A PL ANE
If you could choose any superpower, what would it be and how would it help you with your business?
“ The Light side of The Force! Making sure all transactions close on a positive note, and both buyers and sellers walk away happy.” —Claire Hellam, Island Realty Group, Ewa Beach, Hawaii
“I don’t know if it is considered a superpower, but I would go with Wonder Woman’s invisible jet. That would just be an awesome way to show properties!” —Kurt Thompson, Keller Williams Realty–North Central, Leominster, Massachusetts
“Experience with types of people, and knowing and understanding how they process information and make decisions. I have found this to be extremely important. I use a “Life Value System” as to types of people. There are seven types. When you know what and who they are and how they communicate, you’ll not be a super hero. ... You have to step into their value system to communicate with them. ... That is the power.” —Lane Mabray, RE/MAX Westside REALTORS®
—Kimberly Cameron, Better Homes & Gardens Preferred Properties, St. Louis
—Dawn Leahy, Pacific Sotheby’s International Realty, San Diego Next issue’s topic: What are some of the most outrageous inspection repair requests you have ever seen as a listing agent, or had to submit on behalf of your buyer?
May June
52
The Residential Specialist trsmag.com
20 17
“If I could have any superpower it would be this ... As I work with buyers and sellers to have the power to know what they are really thinking. And with that power I would be able to better help them move through the sale and/or purchase of a house to make a home. It is my goal to serve my clients’ needs and this power would be very helpful … The power is really already there in each of us as we seek to understand our clients’ needs.” —Laura Filip, RE/MAX UTOPIA, Whitesboro, Texas
“Not sure if reading minds is a superpower, but if it is, that’s my choice. If it’s not, flying so I can avoid traffic!” —Brian Teyssier, RE/MAX Advanced Realtors, Pittsburgh, Pennsylvania
“FLYING, FOR SURE.”
“I would choose omnilingualism ... nothing would be better than to be able to speak, read and understand both my clients and other REALTORS® from around the world. I focus on building my business not just locally, but throughout the U.S. as well as internationally. I love being a CRS and having colleagues around the world that share the same passion I have for real estate. Seamlessly referring or personally helping a client from another country using their unique language would be priceless.”
MOST POPUL AR POWER
“Mind reading, so I know what clients are thinking but not saying.”
“ I would be invisible… J” —Sonja Seidl, J. P Weigand and Sons, Inc., Wichita, Kansas Have a great story to share? Email social@ crs.com or look for discussions happening online at our Facebook, Instagram, LinkedIn and Twitter pages.
—Pat Tasker, Shorewest REALTORS®, Menomonee Falls, Wisconsin
Stop Chasing Leads. Start Making Money. Referral Maker® CRM is built by REALTORS® for REALTORS and is powered by Buffini & Company’s highly-effective Referral System.
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