residential B US I N E S S I N TELL IGE N CE FOR THE R RC PROFE S S IONA L
jan + feb
2019
THE
SPECIALIST ALSO IN THIS
ISSUE
READY
TO ROCK? A tower of strength, 2019 RRC President Michael Burkhard is poised to provide steadfast leadership
CRS-041
Calculating maintenance costs Investing in multifamily rentals Emerging trends in 2019
Up your game with drones Is your buyer pre-approved? Grow with event marketing
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contents
Jan 20 Feb 19 vol. 18, no. 1
features
18
BACK TO BASICS
2019 President Michael Burkhard plans to strengthen the Council by reminding its members what they do best. By Matt Alderton
ON THE COVER
Michael Burkhard, CRS, photographed for The Residential Specialist by C2 Photography
30
WINDS OF CHANGE
Emerging trends, challenges and opportunities coming your way in 2019.
22 MAINTENANCE MATTERS When buyers take on homeownership, they’re not
By Matt Alderton
always aware of the full range of maintenance costs. By Michael Chazin
26 SEVEN FAMILIES
Tips to get multifamily rental properties to deliver investment benefits that single-family homes can’t offer. By Donna Shryer
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The Residential Real Estate Council
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Jan Feb
contents
departments
Jan 20 Feb 19 vol. 18, no. 1
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4 VANTAGE POINT
By Michael Burkhard, CRS
34
5 ENTRY POINTS
Industry Headlines, Business Technology, Ideas & Trends 6 SMART SOLUTIONS: Above and Beyond Take your marketing game to new heights with drone technology.
By Megan Craig
10 INSIDE TRACK: Seal of Approval
Navigating the differences between “pre-qualified” and “pre-approved.”
By Myrna Traylor
10
14 WINDOW OF OPPORTUNITY: You’re invited!
4 tips for growing your business through event-based marketing.
By Gayle Bennett
16 PEER TO PEER: David Fedeles, CRS
Of The Coldwell Banker St. Croix Realty, Christiansted, Virgin Islands
34 WORK + LIFE
Big Potential: How Transforming the Pursuit of Success Raises Our Achievement, Happiness, and Well-Being by Shawn Achor
Reviewed by Allan Fallow
+
Brain Power Challenging your brain with creative activities can improve memory and cognitive function.
36
inside RRC
6
37 NEWS FROM THE COUNCIL
2019 Sell-a-bration; 2018 Inaugural Awards and Member Welcome Reception; new tools for Customer Care; and meet our new designees.
41 LEARN FROM THE BEST
Help your clients locate a loan that works best for them.
42 RRC CONNECT 48 ASK A CRS
Advice from the country’s top agents.
48
ON L I N E R E S O UR CE S CRS.com is
your portal to news, education, referral and membership information. And you can still read the magazine online at trsmag.com.
WATCH PART OF SELL-A-BRATION 2019
General sessions at Sell-a-bration will be available to view at CRS.com/SABvideo following the event. You can catch CRS Talks, a group of TED Talks-style presentations, and Sound Bites & Opinions with Leigh Brown, even if you weren’t able to attend!
‘I AM A CRS’ VIDEOS
Need a quick way to explain the value of the CRS Designation to your clients? Use one of three handy videos to market your designation to clients. They’re available at CRS.com/market-yourself.
Coming Next Issue ... B US I N E S S I N TE L L I GE N C E F OR TH E R R C PR OFE S S I O NA L
The 1 thing I did that changed my business Reflecting over the years, CRSs consider the one thing that affected their careers more than anything else. They share the one moment or one insight that totally changed everything. Time for a business plan checkup CRSs assess how their 2019 business plan is going, whether they are on track and how they can pivot, if necessary.
EDITOR Michelle Huffman mhuffman@crs.com 800.462.8841 ASSISTANT EDITOR Stephanie Iannotta CONTRIBUTING WRITERS Matt Alderton Gayle Bennett Michael Chazin Megan Craig Donna Shryer Myrna Traylor 2019 BOARD OF DIRECTORS President Michael Burkhard, CRS President-Elect Richard Waystack, CRS First Vice President Alex Milshteyn, CRS Immediate Past President Gary Williams, CRS Members Kim Cameron, CRS Shawn Cunningham, CRS Maura Neill, CRS Dan Steward Jen Ward, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny PUBLICATION MANAGEMENT
ADVERTISING MANAGER Chuck Gekas Director of Business Development 312.321.4443 cgekas@crs.com The Residential Specialist is published for Certified Residential Specialists, general members and Subscribers by the Residential Real Estate Council. 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 buying and selling residential real estate. The Residential Specialist is published bimonthly by the Residential Real Estate Council, 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 RRC 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 Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. COPYRIGHT 2019 by the Residential Real Estate Council. All rights reserved. Printed in U.S.A.
www.glcdelivers.com Publishing Manager Phil Malkinson Art Directors Ivette Cortes Eliane Mangoubi Scott Oldham
Civic service that serves your business CRSs share how serving their community through a volunteer role can make a difference, and how it helps their business. How I’m dealing with my market Each market has its own unique challenges. CRSs explain how they’re dealing with them, and give advice on markets with limited inventory, lack of affordability and other challenges.
PLUS:
Buyers will make offers on a home sight unseen, creating a less complicated and faster transaction, but agents are cut out of the deal. Learn how it could impact your business and whether it’s a threat. 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 2019 editorial calendar online at crs.com.
WHO ON YOUR
TEAM could benefit by receiving a personal copy of The Residential Specialist?
STAY INFORMED The Residential Real Estate Council provides superior education, exceptional networking
crs.com
opportunities and critical resources. The Council’s flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business. To subscribe for yourself or a colleague, call 800.462.8841. Note: Members of the Residential Real Estate Council receive the magazine as part of their member benefits.
RESOLVE TO
[vantage point]
from the desk of Michael Burkhard, CRS 2019 RRC President
strengthen connections
TAKING A PROACTIVE APPROACH IN LIFE, BOTH PERSONALLY AND PROFESSIONALLY, IS THE BEST WAY TO ATTAIN, DEVELOP AND STRENGTHEN CONNECTIONS.
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The start of each New Year presents an opportunity to create a new path—one that will inspire us, challenge us and encourage us to set and achieve new goals—and one that will ultimately pave the way for success. So, how do we accomplish this? What can we do to remain steadfast and focused? What happens if we encounter obstacles? How do we ensure that we are making progress and moving in the direction we intended? There are many possibilities to consider. You can choose to go it alone. You can choose to quit in the face of adversity. You can choose to do absolutely nothing. If none of these options appeal to you, there is another one to consider. You can choose to strengthen connections. Taking a proactive approach in life, both personally and professionally, is the best way to attain, develop and strengthen connections. As residential real estate agents, Council members and Certified Residential Specialists, our connections—and our commitment to those connections—are what set us apart from other industry professionals. Although the ways in which we interact with each other have evolved—from face-to-face conversations, phone calls and emails to text and social media messages—one thing remains constant: connections are more vital now than ever before. How can we continue to build relationships in an industry and world that are both rapidly evolving? The answer is simple. Go back to the basics. Reach out to your fellow CRS peers for referrals. Make the time to network. Register for RRC courses. Attend a Council-sponsored or State RRC event. Be a mentor to a new REALTOR® or designee. Simply share your knowledge and passion for the profession with all those around you. When we consciously make the effort to connect and engage with others, when we set out to advance ourselves as individuals and when we foster a sense of community, our clients, our families, our friends and our careers will benefit the most. We will be stronger, wiser, confident and ready to face the path that lies before us. The path will certainly be long. There may be setbacks. There may be uncertainty. There may be some regrets. But in the end, the people you meet and engage along the way, the connections you nourish and strengthen throughout each year will be the foundation and the motivation that ultimately lead you to success.
[entry points] + industry headlines + business technology + ideas & trends
LESSONS LEARNED
CRASH COURSE
In the 1990s, market exuberance led people to purchase homes they couldn’t afford, with the help of lenders who offered easy financing. The result was the collapse of the housing bubble and the start of the Great Recession. A decade later, industry insiders reflect on the lessons that were learned.
Credit score
Then: FICO scores considered worthy of the best rates for conventional home loans were more than 100 points lower from 2004 to 2006 than they are today. Today: More attention is paid to a buyer’s credit score and there is generally more transparency in the financing process. The average FICO score for conventional loans for a home purchase in mid-2018 was 751. HOMEOWNERS WHO LOST THEIR HOMES
Homeownership rates 69.2 2004
62.9 2016
64.3
10 years later—how the housing market has changed since the crash
2018 Then: An estimated 10 million people lost their homes to foreclosure due to the crash. Homeownership rates peaked at 69.2 percent in 2004 and dipped to 62.9 percent in the second quarter of 2016, according to the Census Bureau. Today: Many Americans still aspire to own a home. Rates have slowly climbed over the past two years to 64.3 percent in the second quarter of 2018.
35 % have purchased another home
35
65 % didn’t come back
%
65 % Source: CoreLogic
Mortgages
Then: About one-third of all mortgages in 2006 were low or no-documentation loans or subprime loans, says Frank Nothaft, chief economist at CoreLogic in Washington. Today: Loan products that were prevalent before the crash have mostly disappeared. More documentation is required for a mortgage and a down payment is also usually necessary.
The housing market
According to CoreLogic, a global property analytics site, the housing market has generally recovered. Prices across the U.S. are now up more than 50 percent since hitting the bottom, though some markets are still below pre-recession levels.
Lenders and builders
In addition to homeowners, lenders and builders are also being more cautious. “That pain has left them more risk
Ten years after the start of the housing crisis, one trend has emerged: Homeowners tend to value the home as a place to live rather than an investment.
averse, so lenders are more cautious when providing financing to consumers and builders,” Herbert says. “At
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the same time, we’re seeing housing starts lower than they should be, which is a sign of risk aversion among builders.”
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[entry points]
ABOVE AND beyond Take your marketing game to new heights with drone technology By Megan Craig
Smart
The use of drones is rising in popularity. Since the Federal Aviation Administration started streamlining your business requiring licensing in August 2016, through technology more than 100,000 people have become drone pilots. Drones can capture high-definition aerial photography and video, so if you’re not using drone footage to market your listings, you may be missing out. “The drone work just immediately added to our videos due to the better visuals,” says Dan Erickson, CRS, president and managing broker of Town & Country Real Estate in Sequim, Washington. He started using drones last year in a series of videos to market not only his listings, but to highlight his unique area of the country. Think you’re ready to take your marketing to new heights? Consider this:
Solutions
1 Follow the rules
You can’t just buy a drone online, read the instruction manual and start taking videos of your listings. Anyone flying a drone for any
Drone pilots need an FAA remote pilot certificate.
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6
commercial purpose must be licensed under Part 107 by the FAA as a drone pilot. To use drone footage in your videos, you’ll have to either hire a licensed pilot or take the test to become one yourself. The test to become a certified drone pilot is thorough and includes detailed questions on weather, air density and air space, says Mark Fanning, managing broker for Alsted
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2
Prepare the property
Overhead footage can add flair to your listing videos, but from above, potential buyers will be able to see the entire property. That can be great—or terrible, if the property isn’t ready to be seen. “There are many situations where a seller thinks they can hide things in that rarely used side yard or behind the shed, but the drone will catch that,” says Drew Coleman, CRS, of The Drew Coleman Team at Hasson Company, Realtors in Lake Oswego, Oregon. Coleman suggests storing unused equipment and old furniture in the garage—along with your trash cans and cars, with the garage door closed. Adding mulch to your gardens or shrubbery will add color to the landscaping, and a wellwatered, recently mowed lawn will look fresh and welcoming. And don’t let the basics go by the wayside: “Sweep your decks, rake the leaves, coil up the hose and clean out the gutters,” he says.
Real Estate in Moses Lake, Washington. Fanning, who works with his business partner and wife Susan Fanning, CRS, on the company’s marketing strategies, became a licensed drone pilot in 2016 and has since used his skills to boost the duo’s listings. “Susan and I recognized very early that these drones are not toys and could be very dangerous without
proper diligence,” he says, noting that following the rules is what keeps people out of YouTube blooper reels. The licensing test isn’t the only hurdle—after that comes bi-annual renewals, waivers based on proximity to airports or other restricted airspaces, and constant monitoring for frequent changes to the many FAA rules surrounding drones.
3 Know when to drone
Not all properties are the same, so not all listings will benefit from drone footage or photos. “With homes in town, it sometimes looks from above like a house jammed into a neighborhood—it doesn’t seem to work,” Erickson says. “And with pieces of land, if it’s heavily forested, I don’t know that drone video will help.” A great use of drone technology? Empty lots. Erickson said he found it much easier to sell pieces of land in his beautiful area of the country—especially those on the waterfront— once he was able to incorporate images from high above. The technology also is useful in higher-density areas with high-rise condo developments, like those sold by Susan Polakof, CRS, associate broker with Coldwell Banker Residential Brokerage in Phoenix. “The sale of high-rise condos benefits greatly from elevated photos and views of rooftop pools and vast views taken from high elevations,” Polakof says.
GADGET INSPECTOR
Not all properties benefit from drone photography, such as tightly packed residential areas. Best in Class Logitech’s MX Master 2S mouse has highly customizable buttons and scroll wheels for quick access to various functions. It excels at high-precision tracking on almost any surface. The Logitech Flow system allows you to use it on three different computers simultaneously—and you can easily copy/paste from one computer to another.
Continued on page 8 }
Price: $71.20 logitech.com
TAKE IT TO THE NEXT LEVEL
The Apple Watch Series 4 offers a larger display and smaller bezel than previous models, a very fast response time and a louder speaker. Added features include high and low heart-rate detection, fall detection with an SOS trigger, and an FDAapproved EKG monitor. An independent review found it to be very accurate for counting steps and measuring heart rate accuracy, and the display has high readability in both bright sunlight and low light.
Almost any drone can capture high-definition aerial photography. But to make the most of this technology (and your marketing dollars), consider buying a circular polarizing filter for your drone, says Drew Coleman, CRS, of The Drew Coleman Team at Hasson Company, REALTORS® in Lake Oswego, Oregon. “They’re relatively inexpensive and will bring a ton of pop to your images by cutting glare off the vegetation, so all the greenery will appear greener,” he says. “It will also deepen blues in the sky.”
Price: Starts at $399 | apple.com
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[entry points]
ABOVE AND
AVOID COMMON MISTAKES
beyond }Continued from page 7
4
Highlight the area, not just the listing
Drones provide an advantage to market a listing highlighting that property’s unique features. Consider going above and beyond by flying over anything in close proximity to the property being marketed. “Aerials are the only shots that can give the buyer a sense of how close they are to beaches, shopping, schools, access to major highways, sidewalks where kids can walk, etc.,” says Lucia Fernandez, CRS candidate and REALTOR® with Coldwell Banker Vanguard Realty in the Jacksonville, Florida area. “Drones can help orient out-of-town buyer prospects who are not familiar with an area to get a better sense of the community.”
Drones aren’t right for every situation. Don’t pay so much for your drone work that it has to be used as the primary marketing tool. Instead, work with someone to take just enough footage that your drone visuals will be a nice addition to your videos, rather than the main focus, suggests Dan Erickson, CRS, president and managing broker of Town & Country Real Estate in Sequim, Washington. Try to limit drone footage to about 10–15 percent of a listing video. Pay attention to time of day. Sunrise and sunset aren’t the ideal times for aerial footage because they cause shadowing and shading, says Susan Fanning, CRS, of Alsted Real Estate in Moses Lake, Washington. To help determine the best time of day and amount of light to capture the listing, consider using an app like Golden Hour. This is not a roof inspection. Drones take footage from above, which means people are bound to see the roof of the home being listed. Don’t let your footage focus on the roof, Erickson suggests, since that’s boring and not the visual people want when they’re thinking of buying a house.
Megan Craig is a freelance writer based in Chicago.
Interested in more? Take our Drone Photography for Real Estate eLearning course.
GADGET INSPECTOR The audio quality of the beautifully designed Bowers & Wilkins PX wireless headphone has been described as a contender for best-in-class. The B&W Bluetooth headphone uses adaptive noise cancelling. Lift an ear cup to pause the music, remove and put headphone down to activate sleep mode. It lasts 20 hours on a charge and uses USB-C for charging. Use an app to control the headphone. Price: $399.99 bowerswilkins.com
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Turn a front door into a smart door with the August Smart Lock Pro + Connect (third generation). Using your phone, lock and unlock your door from anywhere, provide keyless entry to family and friends, or schedule access for home services without worrying about lost or copied keys. The lock attaches easily to your existing deadbolt, and you can use your existing key anytime. Use Alexa, Siri or Google Assistant to control your lock. DoorSense technology confirms whether your door is securely closed and locked. Price: $267.99 | august.com
Smart displays combine a smart speaker with a touchscreen. The second-generation, Alexa-enabled Amazon Echo Show features a better, larger display (10.1 inch, 720p HD) and improved sound quality. Smart Home controls are included in the main menu to provide easy control over connected Smart Home devices, including displaying the video feed from your smart doorbell or camera. The device is helpful for video chatting and cooking. Price: $229 | amazon.com
DOUBLE TAKE CONFLICT OF INTEREST
July 2017
$
$
$
828
230,411
937
MONTHLY MORTGAGE PAYMENT
HOME SALE PRICE
217,780
According to CoreLogic, the U.S. median sale price of a home has risen by close to 6 percent over the past year; however, the mortgage payment (principal and interest) on that median-priced home has increased around 13 percent. Moreover, while the CoreLogic Home Price Index Forecast suggests U.S. home prices will be up 4.3 percent year-over-year in July 2019, some forecasts indicate the mortgage payments homeowners will make then will have risen by more than twice that rate. The “typical mortgage payment” is a mortgagerate-adjusted monthly payment based on each month’s U.S. median home sale price. The typical mortgage payment is a proxy for housing affordability—it shows the monthly amount a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home. The U.S. median sale price in July 2018— $230,411—was up 5.8 percent year-over-year. During that same period the typical mortgage payment rose by 13.1 percent. The CoreLogic HPI Forecast suggests the median sale price will rise 1.8 percent in real terms between July 2018 and July 2019— or 4.3 percent in nominal terms. Based on these projections, the inflationadjusted typical monthly mortgage payment would rise from $937 in July 2018 to $1,003 by July 2019, a 7.0 percent year-over-year gain. In nominal terms the typical mortgage payment’s year-over-year gain would be 9.7 percent. While the inflation-adjusted typical mortgage payment has trended higher in recent years, in July 2018 it remained 26.8 percent below the all-time peak of $1,280 in July 2006. But in June 2006, the average mortgage rate was about 6.7 percent, compared with an average rate of about 4.5 percent in July 2018. And the inflationadjusted U.S. median sale price of a home in June 2006 was $248,426 (in 2018 dollars), compared with a July 2018 median of $230,411.
U.S. MEDIAN-PRICED HOME
$
Mortgage rates rise at twice the rate of home prices
July 2017
July 2018
+13.1%
July 2018
+5.8%
CoreLogic Home Price Index Forecast suggests U.S. home prices will be up 4.3 percent and monthly mortgage payments will rise 9.7 percent year-over-year in July 2019. 20 19
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[entry points]
SEAL OF
approval Inside Track what’s trending in real estate
Navigating the differences between ‘pre-qualified’ and ‘pre-approved’ By Myrna Traylor
There are so many dreams and wishes involved with buying a home, but it all comes down to brass tacks in the end—the buyer who has the money lined up and ready to go will have the best chance of succeeding. As competition for homes in hot markets becomes fiercer, buyers’ agents must help their clients be as prepared as possible. Part of that preparation is helping buyers understand the difference between being “pre-qualified” for a loan and being “pre-approved” for one. Generally, a buyer can be pre-qualified by a lender with a minimum of effort—the lender might not even ask for or be required
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to check the potential buyer’s credit report. A quick phone call between the two parties to discuss monthly income might be sufficient for the lender to say the buyer could qualify for a loan. Getting pre-approved for a loan, however, is usually a little more complicated. Mortgage lenders will want to have complete documentation from the buyer with proof of income, credit reports and a list of monthly expenses, and there is an application and fee involved. When pre-approval is secured, it is usually for a loan up to a specified amount. So, while it is no guarantee, a buyer who has a pre-approval is in a much better position to succeed with a seller, especially one who wants to close quickly.
Terminology confusion
pre-qualified
Realtors in Palm Desert, California, “and I used to ask them about the neighborhood they wanted to live in or details about the house they might be interested in, but now I talk first about the finances.” Schroeder says that it is often necessary to spend the first couple of hours talking to first-time buyers about financing and finding out where they stand. “Often a buyer will end up needing to regroup and bring their credit score up before they would be able to move from a ‘pre-qualified’ to a ‘pre-approved’ status,” she says. Lenders she works with are getting better about helping first-timers get credit assistance or loans with modified down payments. For Kit Eschner, CRS, of RE/MAX Urban Properties in Denver, a very competitive market makes it essential that buyers walk in with loan pre-approval. “Buyers often will be competing with as many as 10 other buyers for a good property at the entry level,” she says. “The listing broker is required to present all offers to the seller, and the decision can come down to small differences. A listing broker will likely tell the
pre-approved
Depending on the market that you are working in, however, those two terms might be used as if they are one and the same—sometimes even by lenders themselves, says Lilli Schipper, CRS, of Island Resort and Realty in Ft. Lauderdale, Florida. “It’s a problem that the terms are used interchangeably,” she says. “They’ve lost the meaning of what they should be. When I’m working for a seller and I get a letter [saying the buyer is approved], I always call the lender and ask questions such as, ‘Have you reviewed their tax returns? Pay stubs? Bank statements?’ Not all lenders will say yes. I have had some say that they have only run the buyer’s credit.”
Having ‘the talk’ with first-time buyers
“People call saying that they want to buy,” says TJ Schroeder, broker associate at Tarbell,
BY THE NUMBER S A FICO score in the lowest (620-639) range would pay $1,491 per month on a $ 250,000 loan. A FICO score in the highest (760-850) range would pay just $ 1,247 per month. That’s a difference of $244 per month or almost $3,000 per year.
Continued on page 12 }
THE LOCAL LENDER ADVANTAGE
A buyer’s lender should be as helpful as their agent, advises Lilli Schipper, CRS, of Island Resort and Realty. “I prefer for my buyers to have a direct relationship with a direct lender, where this is all they do, compared to a bank, which has many other services besides mortgages.” She also points out that different regions or communities might have unique conditions, such as condos that have minimum percentage down-payment requirements or other lending restrictions.
“Someone who knows the details for the local market, like the taxes, insurance estimates or appraisal issues, plays a very important role in the process,” Schipper says, “especially if the property is in an evacuation zone or flood zone. The buyer needs someone who’ll be a team player. Agents can guide the buyers with property issues, while lenders can guide buyers regarding financing education and concerns. Working together, the agent and the lender can help the buyer make the best decision for their situation.”
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[entry points]
SEAL OF
approval }Continued from page 11
seller that someone who is pre-approved is a stronger buyer. All the buyer’s criteria have been vetted by a lender, so they can close sooner and with more confidence.”
Go local
Once an agent has outlined the value to buyers of pursuing pre-approval, then it’s time for lender recommendations. Many buyers find online mortgage lenders to be very appealing—those lenders’ promises of speed and easy-to-navigate applications are hard to beat. But many agents feel that it is wiser to go with a local lender. Laura Shifrin, CRS, principal broker with Townsend Center Realty, Townsend, Massachusetts, has seen many buyers’ financing fall through and wonders what is behind it. “This may be a reflection of the qualifying mortgage officers—those who have very little experience,” she says. “As professionals, we need to be aware that our buyers may not be getting the best possible advice. Many buyers using
an online application process are thrilled when they are ‘approved’ by one company, but then they are refused by everyone else. Isn’t that a red flag?” Schipper agrees that you shouldn’t take everything at face value. “Because it is so easy to get a pre-approval online, most of them aren’t worth the paper they are printed on, which is why it is important as agents to follow up with the lender the buyer is using to discuss the extent of the pre-approval,” she says. When minutes can make the difference, having a local lender who the listing agent or seller can call directly is a big advantage. Eschner says that “an online lender might be in a different time zone, and if the seller has one afternoon to go through a stack of offers, the lender who responds quickly with reassurance about my buyer’s qualifications will help my buyer rise to the top and increase their odds of getting the property.” “My job is to help my buyers prepare their strongest offer possible within their parameters,” Eschner says. “Anything I can do to streamline that process, and make it easier for the broker/seller to accept my buyer’s offer— that’s what I do.” Myrna Traylor is a freelance editor and writer based in the Chicago area. Want to take the next step? Take our Creative Real Estate Financing eLearning course.
TIP SHEET
NO PLACE LIKE HOME
The National Association of REALTORS® 2018 Profile of Home Buyers and Sellers provides updated insights into the experiences of homebuyers and sellers. Here are highlights from the latest report:
First-time buyers 33 % made up 33 % of all homebuyers, a decrease from last year’s 34 percent. This figure has gravitated away from the historical norm at 40 percent of the market.
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63 % of recent buyers were married couples, 18 percent were single females, 9 percent were single males and 8 percent were unmarried couples. 1 2 % of homebuyers purchased a multigenerational home to take care of aging parents, because of children over the age of 18 moving back home and for cost-saving.
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8 7 % of buyers recently purchased their home through a real estate agent or broker.
87 %
90 % of buyers would use their agent again or recommend their agent to others.
90 %
The median household income of homeowners increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory, pushing out lower-income buyers.
LOOKING FOR TROUBLE
AVOID SURPRISES You invest a great deal of time, money and energy to market your listings and, of course, you want to get a good return on that investment. Don’t be caught unaware of problems that could seriously undermine your dedicated efforts to sell a home, or that could keep a property from selling at its highest potential price. One of the best steps you can take to avoid this is to recommend a professional home inspection prior to listing. A pre-listing inspection can uncover previously unknown problems— major and minor—allowing sellers the opportunity to make repairs, updates or replacements as needed or as they wish. Here are three tips for pre-listing inspections: Be sure that the home inspection is comprehensive and that you will ÄÄ get the report immediately upon completion of the inspection. This will allow your sellers to get the information they need right away, so they can decide on their next steps before the home goes on the market. Photographs should always be part of a professional report so that ÄÄ full documentation of conditions is available to both the sellers and potential buyers. If issues indicated in the report are addressed or repaired prior to ÄÄ listing, be sure to have documentation, receipts, etc., available as proof that the work was done. Copies of any required permits should be available for buyers to view as well, for added peace of mind. With a pre-listing inspection in hand, you can market your sellers’ homes with greater confidence—and at a higher price.
Married and unmarried couples have double the buying power of single homebuyers in the market and may be better able to meet the price increases of this housing market. Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase.
This article was provided by Pillar To Post Home Inspectors. For more information, go to pillartopost.com.
The number of weeks a buyer searched for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the homebuying process was just finding the right home to purchase. WEEKS
10
Increased prices are also impacting sellers. Tenure in the home had a slight decline to nine years from 10 years. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale.
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[entry points]
YOU’RE
invited! Career Night!
Client Appreciation Event
Neighborhood Block Party
Window
strategies to grow your business
By Gayle Bennett
There are many approaches you can take to grow your business. You can market to firsttime homebuyers, develop a niche market, add more agents to your team or increase client referrals. But one of the most effective— and sometimes overlooked—ways to build your client base is to use event-based marketing. But holding a killer event, be it a major block-party bash or a helpful homebuying seminar, is going to take time and cost money. Here are some planning tips from CRSs who have made event-based marketing a key component of their business growth.
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Home Sellers Seminar
4 tips for growing your business through event-based marketing.
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t h ly Mon er eb uy Hom p k sh o Wor
Target your audience.
1
WHO?
You might see event marketing fit multiple paths toward business growth. That’s great! But you’ll want to target each event to a piece of your business that you are looking to grow. One size doesn’t fit all, and it might make sense for you to focus your efforts. Betsy Pepine, CRS with Pepine Realty in Gainesville, Florida, holds seminars for homebuyers, home sellers and investors, and a Career Night to prospect new hires. But she really goes all out on client appreciation events, including a fall event at a corn maze with hay rides, raffles, country music and more; a tree-cutting event in December; and community Easter egg hunt in the spring—to name a few. “Seventy percent of our business comes from our past clients and sphere of influence,” Pepine says. “Instead of trying to chase internet leads and leads of people who don’t have an investment already, we’ve shifted our marketing dollars to focus on the 70 percent of our business who are already our fans.”
2
Spend money to make money.
HOW MUCH?
You don’t have to spend a fortune on an event, but you do want to ensure attendees get the most from it. For example, Don DeHanas, CRS, with DeHanas Real Estate Services in Waldorf, Maryland, holds monthly homebuyer workshops from 6 to 8 p.m. on a weekday. “We have food there since most people are coming on their way home from work,” he says. “We don’t want them wondering what they’ll have for dinner at 8 p.m.” If you are throwing a big bash, try to stand out. “Old standbys like sponsoring neighborhood block parties are great,” says Matt Stone, CRS, with the Matt Stone Real Estate
Set an attendance goal and market to meet it.
3
HOW MANY?
Facebook and Eventbrite, along with email blasts to your database, are still great ways to get the word out and track RSVPs. Stone also does sponsored posts by ZIP code on the Nextdoor app. “We’ve also gotten in with the different HOA boards,” he says, “so we’ll come up with an email for our block party for them to send out that says ‘sponsored by’ and has our logo.” DeHanas likes to keep his monthly homebuyer workshops to 12–15 people to ensure he gets enough one-on-one time with attendees. He knows a certain percentage of people will RSVP “yes” but won’t show, so he shoots for a “yes” list of about 25–30. If he’s not near that range two weeks out, he’ll invest in Facebook ads to broaden his marketing. “We’ve learned that roughly one-third will RSVP “yes,” and twothirds of those show up,” Pepine says. “So if you are trying to hit a number, you can work backward to hit it.”
Team in Charlotte, North Carolina. “But we make our block parties memorable with live music, food trucks, a bounce house for the kiddos and craft beer for the adults— some of whom get in the bounce house after a few beers!” Laura Dahl, CRS, with Music City Experts in Franklin, Tennessee, holds a monthly bus tour for local agents. “We rent a 40-passenger tour bus, and I select a variety of listings in various price ranges from one area of town,” she says. “We use it as a recruiting tool to hire agents, but also to train agents in the area about what they can get for the money and expose them to areas they may not sell in.” Lunch is provided and industry sponsors hold gift card drawings.
4
Have a follow-up plan.
TOUCH BASE!
Have a great time at your event, but get ready to hit the ground running once the last guest leaves. “You can put on a good party and have fun,” Dahl says, “but the work comes in the follow up, which is either, ‘I’m sorry we missed you at the event’ or ‘I’m so glad I got to see you,’ and ‘let’s schedule some one-on-one time.’ The event gives you the reason to call.” At the least, you want to capture attendee contact information to build your database. Whether you are holding smaller seminars or big blowouts, events demonstrate your value to potential clients and keep you front and center with past ones. “I would encourage people to make this a key tactic in their marketing plans,” Pepine says. “I think it’s important to have multiple events throughout the year consistently to keep yourself top of mind with your clients and agents.” Gayle Bennett is a freelance writer and editor based in Washington, D.C.
Meet your Designation Maintenance Requirement today! Read this article and “Once Upon a Time...” on p. 26, take a 10-question quiz and earn 2 credits. Go to CRS.com/trs-quiz to get started.
TIPS FROM THE PROS
Find a niche. Don DeHanas, CRS, with DeHanas Real Estate Services in Waldorf, Maryland, targets teachers in his area. “This past August, we had a presence at an orientation for new teachers coming into the county,” he says. He and his team then follow up by sending monthly gift baskets full of goodies, teacher supplies and information on his monthly homebuying workshops. Ask about venue rules early. Betsy Pepine, CRS, with Pepine Realty in Gainesville, Florida, holds numerous client appreciation events throughout the year. “One venue asked us at the last minute who was our licensed bartender,” she says. “We’d had numerous events with alcohol and had never been asked that. We didn’t even know you needed a license to bartend! You need to get the rules of individual properties upfront, so you know you are covered.” Have a bartender. Matt Stone, CRS, with the Matt Stone Real Estate Team in Charlotte, North Carolina, has increased his sphere of influence over the last year by holding neighbors-only open houses with wine and cheese. But after the first one, he has someone on his team pour the wine. “Some people got a little out of control pouring their own,” he says with a laugh.
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[entry points]
Coldwell Banker St. Croix Realty Christiansted, Virgin Islands
DAVID FEDELES, CRS
Peer to Peer profiles of people to watch
What appealed to you most about the CRS Designation? For me, it was about the referrals as well as the designation itself. The very first client who was referred to me came down and bought a home, and now that client has two other properties here. What are the special aspects of the St. Croix residential market that you help your clients navigate? It’s a small market of 50,000 people and 82 square miles. I have been in the real estate business here for over 30 years. I handle primary homes and secondary vacation homes—just about any residential property. I’ve been in the business so long that I have clients who I’ve put into condos, then into family homes and now I am handling their sales so they can go back stateside to live with their grandchildren. And the way some people come to me has changed somewhat. I have young buyers who want to buy remotely through my website, as well as traditional buyers who have visited the island and decide to purchase a vacation or primary home here.
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Do you network with other Council members or other REALTORS®? Sure. I have referral parties for the other CRSs working on St. John and St. Thomas, and they do the same for me. I only work on St. Croix, though. It’s expensive to get a seat on a seaplane to jump to the other [U.S. Virgin] Islands, nor do I know those market areas. Can prospective buyers get a good idea about a home or property just by looking at a website? It’s one thing to see a property online, but it’s really important for buyers to come down—even if they come for just two days. They need to feel the breeze—the breeze is everything down here—and experience the views. If their financing is good, I can find them a property and get a contract signed in two days.
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buyers from all socioeconomic strata. I understand the I hear that you high-end buyer; before I was in were the featured real estate, I worked in finance REALTOR® on for Fortune 100 companies, so an episode of I can read that kind of client “Beachfront Bargain well. I have a keener sense Hunt” on HGTV. of their needs and, frankly, How did that they can require a little more happen? work. But I treat all my clients I was interviewed by the prothe same, whether they are ducers and I shared the names looking for a high-end place of clients I had been working or a $250,000 condo. with. They chose a delightful One couple, who was view- young couple and their two ing my listings with me and kids from Chicago, who had their selling agent, were look- already purchased a place. ing to buy a luxury property. For purposes of the show, the They were prepared to make production company asked the a cash offer, and eventually I whole family to come down What do you like asked them how they had that here for a week so they could to do in your much cash. It turns out they shoot some footage of them spare time? had invested in bitcoin and enjoying the beach—kids in I am a big swimmer. I used were now bitcoin millionthe water, kids on horses and to swim competitively years aires! It was an interesting so forth. We also did some ago, but now I swim, snorkel experience because besides mock showings. Ultimately, and run for fitness. I used looking at the house and the the couple ended up with a to love downhill skiing, but views and so on, they were place across the street from I broke a femur skiing down asking me a lot of questions the beach and some additional an incorrectly marked run about the staff who would land adjacent to it so they in 2015, so now that’s out. be working on the property. have proximity to the beach I am also a very good chef It turns out they were crazy and unlimited view potential. and enjoy traveling. about the local goat stew and wanted to be sure they could David Fedeles, CRS, achieved his CRS Designation in 1992. He can be reached at get staff who could prepare david@fedeles.com or 340-690-4665. an authentic version.
Photo: Steve Simonsen Photography
“I ve been in the business so long that I have clients who I ve put into condos, then into family homes and Are your customers now I am handling their generally looking for luxury homes? sales so they can go back I work with a cross-section stateside to live with their of people. I am never tied to just one segment—I work with grandchildren.”
With an average temperature in the mid-80s and an abundance of beaches, St. Croix is perfect for water sports. David Fedeles swam competitively for many years, and he continues to swim and snorkel for general fitness.
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BACK TO BASICS 2019 President Michael Burkhard plans to strengthen the Council by reminding its members what they do best
Photos: C2 Photography
By Matt Alderton
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tk counsel
[feature]
In business, every road eventually comes to a fork. When it does, the question isn’t merely, “Left or right?” Often it’s, “Live or die?” For residential real estate, the time to choose is now. So argues Michael Burkhard. He knows because he’s seen it before. Prior to becoming a REALTOR® in 2002, Burkhard was a serial entrepreneur who owned several businesses that reached their respective forks, including video stores at the height of Blockbuster and a professional photo lab in the Kodak era. Although he exited each industry at the opportune time, many of his peers weren’t so lucky. Faced with new threats, they chose to resist change when the smart move was responding to it. The result: extinction. Burkhard—sales manager at Bray Real Estate in Grand Junction, Colorado—learned an important lesson from those early endeavors: The best way to avoid annihilation is adaptation. Continuing education through the Council has therefore been a cornerstone of his real estate career, highlights of which include obtaining his CRS Designation in 2006, becoming CRS of the Year in 2010 and serving as president of the Council’s Colorado state group in 2011. As the Council’s 2019 president, Burkhard is ideally positioned to help the Council foresee and prepare for the changes barreling toward its members. To ensure they rise with the shifting tides, he plans to spend his term evangelizing the one asset that he believes will keep CRSs relevant: their relationships.
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council counsel
How did you get into real estate?
I originally got licensed to sell real estate in 1982. It was right when we had a huge market crash in our local area because of oil shale. I tried for a couple of years to survive in real estate, but it didn’t go well. So I went and did other things. I opened up a photo lab. When video stores came out, I owned video stores. I did a bunch of things over the years, but I always had real estate in my blood. In 1995, I ended up at Winter Park Resort, where I helped build a motel. I did that until 2002, when I came back to Grand Junction and reinstated my real estate license.
“I m a good negotiator and salesperson because I like making sure everybody gets what they need.”
You said real estate was in your blood. What aspect of real estate appealed to you?
I never aspired to be a REALTOR®. I just really liked helping people. Everything I’ve always
done has been people-oriented. I’m a good negotiator and salesperson because I like making sure everybody gets what they need. That’s why people in my local real estate community call me the “Deal Doctor.” I know how to put broken deals back together when people are unhappy because I like being helpful.
What made you join the Council and get your CRS Designation?
I got highly involved in the Council in 2002 and got my CRS Designation in 2006. The education is what sucked me into it because the more I learned, the better I seemed to be as an agent. I’m the kind of person who wants to know everything that’s going on in the market. When you get your CRS Designation, you’re in the know, and that allows you to help people. Shortly after I got my CRS Designation, the market crashed. Because I had my CRS Designation I knew I had to roll with the punches
GETTING PERSONAL WITH THE PRESIDENT
Family: “My mom and dad are both still alive. My dad was a game warden for Colorado Parks and Wildlife, so I grew up in the outdoors on a farm. There are five of us kids, and we’re all still around harassing each other unmercifully. My wife passed away last year. I have two kids. Neither of them has children, but I have lots of grand-dogs. I’ve also got a dog named Bear and 20 free-range chickens in my backyard.” Fun: “I have a big yard full of flowers, so I’m an avid gardener. I ride fourwheelers. I have a Jeep I like to drive. I do a lot of fishing, hiking and hunting. I’m a Certified Master Photographer, so I’ve always got a camera in my hand. I’m an avid baker, too. When I first started, I had a following at my open houses because of my baking.” Nature: “Being an outdoorsman has taught me: You get back what you give. I never go into a campground, for instance, without cleaning it up because I’m a firm believer that you reap what you sow. In nature, and in everything else.” Education: “I wasn’t much of a school person, so high school was it for me. My education since then has been the school of hard knocks. I’ve taken every class I could along the way to become what I need to be.”
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council counsel
and change directions. So I made sure I understood short sales and foreclosures and all the things that were happening in the market. That allowed me to help other people so they didn’t have to go through the hard time of losing their home. I was able to coach them and counsel them. I helped clients get out of their houses when they lost them to foreclosure, and many of those same clients have now bought new houses. They all appreciate what I did for them and remember that I was there to help. That’s because of my CRS Designation.
You obviously enjoy helping others. How will you help fellow CRSs during your term as Council president?
I’m hoping we can bring back connecting, because I think that’s the biggest advantage that an organization our size has. The Council has an office in Chicago, and members and volunteers all over the country who are trying to help make the organization stronger. Sometimes we get lost trying to fit all those pieces together. What I really want to do in the next year is make sure that volunteers, members and staff in Chicago all feel connected to each other.
[feature]
In your opinion, what’s the best way to recognize and reward volunteers?
We can make shiny brass plaques, but the best recognition to me is just telling people, “Thank you.” I’m not at all opposed to calling 50 people and thanking each one individually. I’ll do that, because when somebody does that for me it really touches my heart. That’s what we’re missing in our society; I think we need more of that.
Real estate is at a fork in the road. What did you learn from your previous businesses about remaining relevant in the face of change?
I owned a photo lab in the early ’90s. When digital cameras started coming out, I saw the writing on the wall. Things were going to change dramatically. I’m seeing something similar in real estate right now. There are disruptors coming that threaten our way of doing business, and that is something we have to pay really close attention to. I think the biggest thing we can do in response is being personally connected to our customers.
“ Because there s so much information on the internet, customers needs have changed. What they re looking for from real estate professionals is somebody who s present, who knows what s going on and who can give them great guidance.” How will you facilitate those connections?
I think we need a solid method of communication. It’s hard when you send out 500 emails and three of them get opened. In this day and age, should we be texting instead? We’ve got to pay attention to feedback from our members in terms of how we can best communicate with them so they understand what we’re doing and how we’re trying to help them. Also, I think we need to do a better job recognizing and rewarding our volunteers and making sure they know they’re loved. There’s a quote I like that goes something like, “The single raindrop never feels responsible for the flood, yet it is.” It’s so important that each one of us individually understands how we make a difference for the whole.
It doesn’t matter whether you’re working in a bakery or selling real estate: The world revolves around relationships. Because there’s so much information on the internet, customers’ needs have changed. What they’re looking for from real estate professionals is somebody who’s present, who knows what’s going on and who can give them great guidance. It’s not enough to be transactional. You have to be an advocate for your clients and make sure they know you care about them. If you can build those relationships—if you’re sincere and honest and do the absolute best you can—your business will always move in the right direction.
There are many ways to connect with the Council. Start by joining our We Are CRS Facebook group at Facebook. com/groups/ WeAreCRS. Ask questions, get and give referrals and network with like-minded agents.
Matt Alderton is a freelance writer in the Chicago area.
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MAINTENA MATTERS
7
When buyers take on the responsibility of homeownership, they’re not always aware of the full range of maintenance costs that can be involved
8
By Michael Chazin
ďƒ˜
Buyers unfamiliar with home purchasing often register surprise when they uncover seemingly endless costs that fall under the maintenance category. Everything from replacing a roof to fixing a crack in the driveway counts as maintenance.
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COMMON MAINTENANCE CATEGORIES Here are some of the most common maintenance projects that homebuyers should be aware of, according to Harris
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Safier, CRS, Berkshire Hathaway HomeServices Hudson Valley Properties, Kingston, New York.
9
dwelling
points
ANCE [feature]
5
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1
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➊ Windows ➋ Walkways ➌ Driveways ➍ Roof
➎ Trees ➏ Pest Control ➐ Exterior Painting ➑ Gutters
➒ HVAC System ➓ Landscaping Appliance Repair/ Replace
Also account for items such as a deck, pool or whirlpool. Jeff Scislow, CRS, RE/MAX Results, Apple Valley, Minnesota, suggests buyers go online and search for “home maintenance checklist.”
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dwelling point
[feature]
“I try to instill in buyers that maintenance isn’t a one-time activity,” says Angie M. Garard, CRS, FC Tucker Company Inc., Indianapolis. It seems that with home ownership, there is always something that needs to be repaired or replaced. “The condition and health of their home is something that should be on their minds constantly,” she says. In older homes those events can happen more frequently. “The maintenance cost calculation varies substantially based upon property location as well as its age,” says Jeff Scislow, CRS, RE/MAX Results, Apple Valley, Minnesota. “I discuss having an older home versus living farther out with a new home,” says Karl Holub, CRS, Holub Realty & Management, Inc., in Houston. Living in an older home located closer to the city presents a different expense scenario than one farther out in the suburbs. The older home typically requires more maintenance. “You should budget 20 percent more for overages in an older home compared to maintenance costs for a newer home,” he says.
Los Angeles to $2,570 in Miami. Annual maintenance costs of $3,810 in Portland, Oregon, were the highest. First-time buyers typically aren’t thinking about maintenance costs. “They’re thinking about their mortgage payments, escrow and if they’re setting aside enough money for real estate taxes,” says Harris Safier, CRS, Berkshire Hathaway HomeServices Hudson Valley Properties, Kingston, New York. They might be thinking about utilities, but maintenance costs aren’t given a second thought. “REALTORS® have a fiduciary responsibility to inform and educate their clients,” Safier says. As he walks through properties with his buyers, he points out potential issues with appliance age, wear or appearance, and what that could mean in terms of upcoming maintenance needs. He says it is a good idea to take on a bit of a parental attitude. “If this were your kid buying his or her first house, what would you want to inform them about,” he says. In the case of appliances, age brings on functional obsolescence, Safier adds. Buyers need to consider best-case scenarios for when these items need to be replaced. Consumer Reports online is one credible source; however, it carries an expense. Appliance lifetime estimates are listed there and show, for example, that gas furnaces last 18 years, central air conditioners have a projected life of 15 years and 13 years is what to expect for the life of a refrigerator. 18 years
Appliance lifetime estimates Refrigerators
15 years
Central air conditioners Gas furnaces
13 years 5 years
10 years
15 years
What does maintenance cost?
Nationally, maintenance runs close to one-third of homeownership costs. MarketWatch reports that residential real estate costs in metropolitan areas, excluding mortgage, amount to $9,394 annually. Taxes, insurance and utilities come to $6,327, while maintenance runs $3,067. Maintenance costs vary from $3,400 annually in
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Info is readily available
Scislow, on the other hand, doesn’t discuss home maintenance costs with his clients unless asked. If asked, he doesn’t 20 years go into detail; instead he directs them to the internet where, he says, they can find volumes written on the topic of “home maintenance costs.” While he may not discuss maintenance costs freely with clients, a homebuyer’s packet made available to every client at the initial interview covers the topic. Packets describe the transaction process and associated costs, and include FAQs common to the homebuying process.
dwelling points
“The packet is a road map for the journey buyers can expect to travel with me and it includes statements suggesting homeowners create a fund to cover future home maintenance expenses,” Scislow says. Two approaches are commonly used to determine annual amounts for a maintenance savings plan. The first takes 1 percent of the home value (for example, $3,000/year for a $300,000 house); the other uses $1 for every square foot of living space (a 2,500 square foot house would equate to $2,500 in annual maintenance costs). Scislow averages these two values to determine savings plan amounts—$2,750 in this example. First-time buyers often have saved for a down payment, and Garard suggests that buyers continue to do that after they move into their new home. “I encourage clients to maintain that savings mentality that got them to where they were able to buy a house,” she says. Frequently, younger buyers have stretched financially to make a purchase and may not have reserves to cover unanticipated maintenance needs. “It is important these folks implement a savings plan as they might not be able to readily absorb a $5,000 replacement cost,” she adds.
A blueprint for repairs
The inspection should identify any defects, as well as point out which components might be nearing the end of their useful life. Findings can be crucial as they could lead to possible price concessions as well as prepare the buyer for any maintenance costs that might be incurred. The quality of home inspectors varies greatly. “Buyers need to do their homework to find a good inspector,” Scislow says. Agents should have a basic understanding of systems covered by the inspector, says Holub. As a fallback, he recommends developing relationships with one or two contractors who can be trusted. These experts conduct supplemental inspections to provide additional information. He might pay a small fee for their consultation, but their knowledge and experience makes all the difference. “They can tell you in five minutes whether there is a problem,” Holub says. “Otherwise you’re guessing in the dark.” No guesswork is needed to recognize that maintenance costs will arise. The only question is when. Money set aside on a regular basis yields a fund that provides buyers with a sense
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HIDDEN COSTS VARY DEPENDING ON WHERE YOU LIVE
Avoidable and necessary hidden costs of homeownership, U.S. and by Metro
■ Property Taxes ■ Utility Bills ■ H omeowners Insurance
■ H VAC Repair or Maintenance ■ G utter Cleaning and Maintenance
■ House Cleaning ■ F ull-Service Lawn Care ■ Carpet Cleaning ■ Pressure Washing
United States Atlanta, GA Austin, TX Baltimore, MD Boston, MA Charlotte, NC Chicago, IL Cincinnati, OH Cleveland, OH Columbus, OH Dallas, TX Denver, CO Detroit, MI Houston, TX Indianapolis, IN Kansas City, MO Los Angeles, CA Miami, FL Minneapolis, MN New York, NY Orlando, FL Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Riverside, CA Sacramento, CA San Antonio, TX San Diego, CA San Francisco, CA San Jose, CA Seattle, WA St. Louis, MO Tampa, FL Washington, DC
Source: Zillow Economic Research
0
$
5,000
$
10,000
15,000
$
$
20,000
$
Annual costs
of comfort when they face unannounced maintenance surprises. “The biggest surprise is when they don’t prepare for it,” Scislow says. Michael Chazin is a freelance writer based in the Chicago area. Stay in touch with your clients after the sale by sending them the Your Home newsletter on page 45. Editable Word and PDF versions are available on TRSMag.com.
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nce upon a time, there were
seven families who lived in a tree‌
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perfect
practice
[feature]
Tips to get multifamily rental properties to deliver investment benefits that singlefamily homes can’t offer By Donna Shryer
Apples or oranges? Peas or carrots? New York City’s hustle and bustle or the peaceful fine white sand of Kapalua Bay Beach on Maui’s remote northwestern tip? It’s all about personal choice. The same can be said as to whether you want to invest in multifamily residential properties or single-family dwellings. For some, it’s difficult to fairly assess the benefits of investing in multifamily properties. America’s obsession with HGTV’s binge-worthy shows that tout the financial value of rehabbing, renting or flipping single-family homes has pushed multifamily properties into the shadows. The obvious benefit of a multifamily versus single-family property investment is simple: more units equals increased opportunities for cash flow. However, with financial advantages come risks, including increased responsibilities, liabilities and need for capital reserves. You can neutralize these risks if you understand the big picture, perform due diligence and prepare for challenges, says Clark Niblock, CRS, broker/owner of San Antonio-based Niblock Co. Inc. Realtors. “If you go into multifamily investment properties with your eyes wide open, it can be very lucrative—but it’s not easy money,” he says. “If you don’t pay attention, it’s going to be a bumpy ride.” It’s advice you can bank on, since Niblock owns and manages several multifamily properties in the San Antonio area.
The ins and outs
Here are tips to successfully manage multifamily property investments, navigate the ins and outs, and turn potential risks into financial gains.
tudy federal and state landlord/ tenant laws. It’s essential that you become familiar with the Fair Housing Act and the Fair Credit Reporting Act. These federal laws affect all landlords and property managers, regardless of whether you choose to invest in a single-family or multifamily property. There are also landlord-tenant laws specific to your state and city, which focus on discrimination, lease documents, disclosures, safety and
maintenance, security deposit protocol, privacy, evictions and the list goes on. “If you don’t know the law, you’ll probably fail,” emphasizes Chuck Wilson, CRS, owner/broker of Real Estate of South Bay, located in Los Angeles. Wilson takes his own pearls of wisdom to heart, as he’s always on the lookout for wise property investments, and at this time has eight multifamily properties in his investment portfolio.
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ocument everything before a tenant moves in and out. Niblock snaps detailed photographs of a unit before and after renting. It’s a “visual history” of the unit’s condition. This is particularly handy when renting multiple units, Niblock says, since remembering every gouge in every wall or floor becomes increasingly difficult when managing multiple units. And be sure to protect your investment by vetting tenants. The time involved to vet tenants increases exponentially with the number of units you rent, but it’s time well spent says Neil Kugelman, CRS, REALTOR® with Philadelphia-based Elfant Wissahickon REALTORS®. “I run credit checks and make sure potential tenants have never been in landlord/
Closing the deal for a multifamily residential property requires less time.
Living in one of the units yourself may qualify you for owneroccupied financing.
In a nutshell: a fourplex equals one mortgage and one closing. Four single-family homes equals four mortgages and four closings. The math says it all.
If you invest in a multifamily building and live in one unit yourself, you may qualify for owner-occupied financing. Benefits may include more favorable financing terms, such as less money down and lower interest rates. When the owner occupies their investment property, renters may even cover your mortgage. In 1989, Philbrick purchased her first investment property—a duplex. “I rented one unit to a family and lived in the other,” she says. “After I collected rent, my monthly cost was $34. So I was able to pay the mortgage, live in a nice unit, save money and purchase a second property within three years.”
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tenant court,” he says, which keeps him busy as he currently manages two duplexes and four single-family homes. Nancy Philbrick, CRS, REALTOR® with Berkshire Hathaway HomeServices Verani Realty in New Hampshire, checks credit reports, although rather than pulling standard credit reports, she asks potential tenants to share their own Credit Karma report. “The reports are easier to understand and I’m not responsible for the reports,” she says. That, she adds, saves time and hassle, since she’s busy with her four condominiums and one duplex.
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ultifamily properties rarely have a zero cash f low. Unlike a single-family home, issues with vacancies are reduced with a multifamily dwelling. Put simply, when a single-family property is vacant, there’s no incoming cash flow. However, it’s highly unlikely that every tenant will vacate a multifamily property at the same time. That gives you at least some income.
Research rental property tax write-of fs. Rental property owners are entitled to significant tax deductions, including property mortgage, insurance, maintenance repairs, travel expenses, legal and professional fees, as well as property taxes. This area is complex, so it’s best to hire an experienced accountant.
perfect practice
Rehabber and REALTOR® make for a tough balancing act
Bottom line, Philbrick cautions, investing in property requires a certain type of person. “This is more than a business; you’re dealing with people’s homes,” she says. “If you don’t think you’ll have time to quickly follow up on tenant needs, this isn’t for you—or maybe you should consider investing in a single-family home with only one renter. On the other hand, if you take good care of your tenants and your properties, there’s every reason to believe that a multifamily property will bring a top return on your investment.”
When Kugelman invested in his first property— a duplex—he rehabbed both units, then moved into one unit while renting the other—and at the same time, he pursued a career as a REALTOR®. In fact, he did that a few times and then put down his hammer. “My real estate earnings suffered,” he says. “Sometimes, while I was busy rehabbing, I had no income. So I learned the hard way that my time is better spent listing and selling property, and hiring skilled tradesmen to do the rehab work.”
eep tenants happy so they want to stay.
Every landlord’s bane is turnover. Before welcoming a new tenant, the unit must be professionally cleaned and usually painted, and repairs of some sort often crowd the to-do list. Yes, that takes cash, but it also takes time. And if it takes 15 hours to
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prep one apartment for a new tenant, it takes 150 hours to prep 15 units. So the goal is to reduce tenant turnover. “Be as attentive as humanly possible to your tenants needs,” Kugleman says. “Your income relies on keeping your building filled to capacity. The name of the game is minimizing turnover.”
Donna Shryer is a freelance writer based in Chicago. Meet your Designation Maintenance Requirement today! Read this article and “You’re Invited” on p. 14, take a 10-question quiz and earn 2 credits. Go to CRS.com/ trs-quiz to get started.
Renting vs. A GROWING Owning PERSPECTIVE Tenant status holds new prestige. A 2017 report from the Harvard University Joint Center for Housing Studies finds that signing a lease has increased appeal for baby boomers and millennials who could afford to buy homes if desired.
Ages 55 to 64
20 18 %
15 12 %
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A cumulative increase of 2.9 million renters in this top income category.
Ages 65 and older
38 %
40 %
Bottom line: High-income
2017
5 2006
Rentals
C hoose to rent
0 Boomers and millennials earning $100,000 or more
households drove nearly 30 % of rental growth 30 % between 2006 and 2016.
Corroborating this trend, a recent Credit Sesame survey, geared specifically to renting versus owning, reports that 38 percent of those ages 55 to 64, and 40 percent of those ages 65 and older, said they can afford to buy—but choose to rent.
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Winds of
CHANGE Emerging trends, challenges and opportunities coming your way in 2019 By Matt Alderton
January is a time for transformation. Some people want to transform their appearance by losing weight. Some want to transform their health by quitting smoking. Others want to transform their career by getting a new job, or their mind by adopting a new outlook. Still others want to transform their relationship, their bank account or their passport. If you ask residential REALTORS®, however, there’s one thing they want to transform this year more than anything else: their business. “I think the industry in 2019 is going to struggle; it’s going to be a tough year,” predicts Michigan RRC President Ursel Mayo, CRS, broker/ owner at Mayo Real Estate Group in Shelby Township, Michigan. “The good news is: Brokers and agents can use that time to revamp.” Even if you don’t need to revamp your business, now is an ideal time to at least refresh it, as 2019 promises to usher in a host of changes whose impact could permanently alter the course of your local market. Like houses in a hurricane, the REALTORS® who survive the coming winds will be those who reinforce their business with supports that are strong enough to withstand them. The first step to buttressing your business is forecasting what opportunities and threats it will face in 2019. Here are five that every CRS should watch in the months ahead:
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Stagnant inventory
According to the National Association of REALTORS®, inventory has been trending downwards for the last five years and in 2018 reached its lowest level in a generation. Although there are signs of improvement, Dave Pautsch, CRS, expects the paucity of homes to persist. “What I’m seeing in the market now is basically a gridlock between the two most populous generations: the millennials and the baby boomers,” explains Pautsch,
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principal broker with RE/MAX Integrity in Albany, Oregon. Millennials, he says, are looking for the median-priced homes that many boomers own; boomers aren’t selling, however, because they want to downsize or relocate instead of increasing their debt by moving up. This conflict and competition for the same affordable homes is one reason for the present lack in inventory. Given this dynamic, Pautsch says he’ll spend 2019 preparing for the day when boomers eventually sell.
“The smart real estate agent will do what I’m doing, which is shifting my focus to seniors,” continues Pautsch, who is actively networking with senior service providers— elder law attorneys, financial advisors, in-home care providers, contractors who specialize in aging in place—and creating educational resources to help seniors transition to retirement. “Those relationships are going to build my business for the next 10 years as baby boomers downsize, relocate or move into assisted living.”
Maria Dargan, CRS, is similarly focused on seniors. To stimulate inventory in her local market, one of her goals in 2019 is lobbying for developers to build more senior housing. “If we can encourage qualified builders to start building more adult communities for seniors, that would really help the situation,” says Dargan, broker associate at RE/MAX Real Estate Ltd. in Brick, New Jersey. “Because baby boomers are retiring soon, lack of housing in these developments will be an issue.”
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Rising interest rates
Although they reached record lows in December 2008, when the Federal Reserve lowered its benchmark fed funds rate to 0.25 percent, interest rates have been inching upward since December 2015. By 2020, the Fed projects,
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LESS AFFORDABLE
the federal funds rate will reach north of 3 percent. While the Fed doesn’t directly set mortgage rates, its policies influence them. REALTORS® should therefore expect mortgage rates to continue rising in 2019, according to NAR, which expects rates to reach 5 percent this year. “With interest rates climbing, it’s a very difficult time for first-time homebuyers,” Dargan explains. Because rising rates might discourage some would-be buyers from entering the market, buyer education will be especially important in 2019, she says. “First-time homebuyers go into the process with a lot of fear. They worry: Am I going to be able to afford it?” says Dargan, who shows her buyers on paper what their resources are and what their costs will be—including mortgage interest, the impact of which is often negligible compared to the cost of renting. “They really need that education.” Joyce Tapscott, CRS, sees rising interest rates as helping the market instead of hurting it. After all, rising rates normally indicate a strong economy, and a strong economy is good for real estate. Take the thriving stock market, for instance. “People have made a lot of money in the stock market,” says Tapscott, a broker affiliate at Coldwell Banker Wallace & Wallace, Realtors, in Knoxville, Tennessee. “As it continues to grow, people are taking their gains and putting them in real estate.”
Housing affordability just fell to its lowest level in 10 years NAR Home Affordability Index
200 180 160 140 120 |
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|
Aug 2007
2010
2012
2014
2016
2018
3
3.1 %
in 2019.
Source: NAR Chief Economist Lawrence Yun
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100
Reduced affordability
Affordability will continue to be a major obstacle in 2019, according to NAR, which says affordability reached a six-year low in 2018. Along with low inventory and high interest rates, affordability is a function of new construction and wages, Mayo observes. REALTORS® who are concerned about affordability in 2019 should pay attention to both. In terms of new construction, builders are building fewer homes, including fewer upgrades, and charging more money, according to Mayo, who cites rising material costs and a shrinking labor pool as causes. “It costs more to build today, and it’s taking longer to complete projects,” she says, explaining that REALTORS® this year must respond by recalibrating buyers’ expectations around long-term value instead of short-term cost. “My goal is to remind [buyers] that they have to live somewhere—and that they might as well pay their own mortgage instead of someone else’s.” Then there are wages: According to the Pew Research Center, the real average wage—the wage after accounting for inflation—had about the same purchasing power in 2018 that it did in 1978. “That’s why we’re not seeing homes move,” Mayo says. “If home prices keep rising, but wages aren’t, people can’t afford to buy.” A bright spot is companies like Amazon, Target, Walmart and Costco, all of which announced plans last year to raise their minimum wage. REALTORS® who want to impact affordability in their market should spend 2019 urging local companies to follow suit, according to Mayo. “I’m trying to get my colleagues to start talking to their networks about the benefit of growing wages,” she says. “We need to let people know how paying workers more benefits the whole community.”
Sales in 2019 are forecast to increase to 5.4 million, a 1% increase, while home prices are expected to rise a modest
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Elections impact policies affecting the housing market
The mid-term elections may be over, but their effects remain to be seen as new local, state and federal lawmakers prepare to execute their agendas. “Any time there’s an election, there are going to be changes in the housing market,” Dargan says. Among the many issues that could impact REALTORS® this year are:
5
ÄÄTrade: NAR attributes rising home prices in part to the Trump Administration’s tariffs on Canadian lumber, which have driven up the cost of construction materials. ÄÄDeregulation: The Trump Administration in 2018 significantly decreased the authorities of the Consumer Financial Protection Bureau, which regulates the financial services sector. Efforts to continue or reverse deregulation could impact lenders and, therefore, buyers. ÄÄTax Reform: One of the most significant federal laws passed by the last Congress was the
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Tax Cuts and Jobs Act (TCJA), which placed new restrictions on the itemized deduction of property taxes. Further tax legislation could have similar consequences for homeowners, buyers and/or sellers. ÄÄImmigration: Foreign investment in U.S. real estate is falling, according to NAR, which attributes the decline not only to low inventory and high home prices, but also federal immigration policy; policies that curtail immigration, it reports, also curtail population growth and labor, which in turn impacts home prices and construction.
High-tech tools facilitate marketing, but high-touch drives client relationships
Technology will continue to make waves this year as it has every year in recent memory, CRSs predict. A major goal for Tapscott in 2019, for example, is investing more in digital marketing. “I have to continue to develop my online presence; that’s where I’m going to spend my dollars moving forward,” she says, adding that she’s especially bullish on video marketing. “Potential buyers and sellers are constantly moving, and they travel with their phones and laptops. The one thing that attracts their attention when they have downtime is video.” Virtual reality (VR) and augmented reality (AR) are likely to make big impacts on real estate in 2019. So is artificial intelligence (AI), according to Mayo, who cites as an example companies like REX Real Estate, which uses AI and machine learning to match sellers with buyers based on buyers’ internet search history. “Artificial intelligence would be a big asset for small brokers like me because with predictive analytics, your information goes directly to [likely buyers], which could help you cut your advertising costs,” Mayo says. Technology’s growing influence has persuaded Pautsch to double down on traditional business practices in 2019; in a high-tech world, he predicts, buyers and sellers will crave high-touch brokers. “If I’m concerned about anything, it’s that technology is going to take the place of customer service and personal relationships,” he says. “I think 2019 is going to be a great year for my business, and that’s because we are very relationship-oriented.” Of course, without a crystal ball it’s impossible to say what 2019 has in store for Need help navigating the winds of change? REALTORS®. One thing is certain, however: Council education can It’s going to be a wild ride. help. Go to CRS.com/ Matt Alderton is a freelance writer in the Chicago area.
learn for the latest education offerings.
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resources for learning & leisure
GOOD READS
MAY THE FORCE OF OTHERS
be with you
We obsess on “the power of one alone.” But what might happen if we prized “the power of one made stronger by others”? that other people are “the one thing that really predicts [our] long-term success and well-being.” Yet the If your work style is to beaver degree to which we now esteem away like a lone wolf, happisolo success, writes Achor, has ness guru Shawn Achor’s new book “gone into serious overdrive.” How may hold some uncomfortable did we arrive at this hypervaluation truths. If, on the other hand, you of individual achievement? tend to deflect credit and delight in collab- Myriad connections oration, Big Potential Two “significant shifts,” he writes, BIG POTENTIAL: will reaffirm your may explain why: HOW TRANSFORMING instincts; it’s likely First, the rise of technology and THE PURSUIT OF you already believe social media allows us to broadcast SUCCESS RAISES that the “more you individual accomplishments 24/7, OUR ACHIEVEMENT, help people find constantly feeding competition HAPPINESS, AND their light, the while stoking insecurity. WELL-BEING brighter you both Second, the astronomical presby Shawn Achor will shine.” sure and competition in our schools Currency/Penguin In a research career and companies in pursuit of higher Random House, at Harvard, then as a individual success metrics are 238 pages, $28.00 fully booked consuldriving longer days, less sleep and tant (“100 talks a year more stress. all over the world,” Fortunately, Achor says, a better he’ll have you know), and finally path has begun to emerge—one that through the writing of four previfirst became visible while he was ous books, Achor has concluded writing The Happiness Advantage: By Allan Fallow
Ø
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How a Positive Brain Fuels Success in Work and Life. Thanks to the recent advent of Big Data, combined with a new field called “positive systems research,” we are now able to quantify our interconnectedness—“the impact that each of us has on those around us, and in turn the influence [that] others have on us as well.” No longer restricted to asking onedimensional questions such as, “How hard do you work?”, we can now pursue more meaningful queries such as “How much does your drive become contagious within your team?”
Collaborative activities
Our greatest successes never occur in a vacuum, Achor’s research has revealed. Rather, “almost every attribute of your potential—from intelligence to creativity to leadership to personality and engagement—is interconnected with others.” (Even sales performance, he says, can be boosted by choosing to surround yourself with “high-potential people.”)
Before you dismiss (as I was iniUnless you EXPAND a leadership tially tempted to do) any of Achor’s role to everyone who has a stake obnoxiously boldfaced conclusions in your shared mission, the infinite as voguish success maxims (“When demands on your finite time and you work to help make others more energy will remain unmet. The successful, you take the invisible author calls this creating a system cap off your own success”), consider where people can “lead from some of the statistics he uses to every seat.” reach them. There’s the exploding One of the best ways to amount of time that employees ENHANCE your resources is to spend in collaborative activities, “democratize praise”—spread it for example: In the last two decades, around. Don’t become a “praise researchers at the University of miser.” Instead, become a “prism Virginia have discovered, it has of praise,” refracting light onto ballooned by 50 percent or more. Or everyone in your ecosystem, not there’s the proportion of an employ- just the top performers. ee’s day spent communicating with The author prescribes ways to colleagues and coworkers—now DEFEND against negative encouna whopping 75 percent, if the data ters, too. For example, you can scientists heading up Google’s Projbegin a business conversation on ect Aristotle (mission: to build the the phone with “It’s great to talk to perfect work team) can be believed. you” rather than “I’m swamped” or “What a week.” And don’t hesitate to Becoming a team player leave your problems behind every so As companies and systems are often: “People who take ALL of their becoming increasingly complex,” vacation time,” writes Achor, “have a writes Achor, “the achievements 6.5 percent higher chance of getting of individuals are becoming far a promotion or a raise than people less distinguishable—and thus far who leave 11 or more days of paid less important—than the overall time off on the table.” results of a team. From legal teams Finally, to SUSTAIN the gains to teams of software programmers you make as you maximize your and sales teams [emphasis added], potential, try reframing things. employees are being evaluated When asked what you do for a livindividually less and less.” ing, talk about the larger meaning Like many a biz-book author of your work, not just your daily eager to capitalize on our appetite duties. Vividly imagine the details for career advice, Achor has of your future successes. Or, for come up with a catchy acronym— one week, “pick someone in your SEEDS—to encapsulate his creed. ecosystem and celebrate them for Faithful to the ALL CAPS STYLE what they are doing right.” that Achor favors, it stands for Big Potential may drive you crazy SURROUND, EXPAND, ENHANCE, with the author’s big ego—did we DEFEND, and SUSTAIN: really need to know he’s friends To find the sort of positive peowith Oprah and Liz Gilbert?—but ple who will help you build your it’s hard to find fault with his argustrengths, Achor urges the reader ment that, “We need to stop trying to “SURROUND yourself with a to be faster alone, and start working Star System of Positive Influencto become stronger together.” ers,” both at work and in real life. The goal is to “Seek people who Allan Fallow is a freelance writer and book bring out the best in you, not the editor in Alexandria, Virginia. Follow him on stress in you.” Twitter @thefallow.
YO U M I G H T A L S O L I K E …
EQ APPLIED
by Justin Bariso [Borough Hall] 208 pages $ 16.95/paperback In this age of social media and constant distraction, a high emotional intelligence quotient (EQ) is critical. Bariso combines scientific research with personal stories to show how to make emotions work for you instead of against you.
THE MOTIVATION MYTH
by Jeff Haden [Portfolio] 288 pages $ 15.62/hardcover Haden, a columnist at Inc.com, presents a practical guide for finding and maintaining the motivation to achieve great things. He shows that success isn’t for the uniquely-qualified—it’s for any person who understands the nature of motivation.
THE LAWS OF HUMAN NATURE
by Robert Greene [Viking] 624 pages $ 18.00/hardcover
Greene distills ancient wisdom from essential texts to help readers understand people’s drives and motivations. He offers powerful tactics that drive success and self-improvement.
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E X PA N D Y O U R H O R I Z O N S
resources for learning & leisure
brain POWER
Odds are, your job as a REALTOR® keeps you physically and mentally on your toes. But how are you spending your time off? While we all like to binge watch Netflix once in a while, it’s important for mental health to keep your brain actively engaged throughout the day, especially as you age. Challenging your brain with new and creative activities can help improve cognitive function and memory, which in turn benefits your career. Here are some ideas to productively spend your leisure time, instead of zoning out in front of the TV:
Learn a new professional skill.
We’re living in a digital age, so it could be beneficial to learn a new computer skill. Whether you need to know more about specific software, such as PowerPoint or Photoshop, or coding for your website, there are online classes and tutorials available. Check out Linked-In Learning, which now owns Lynda.com, to gain access to thousands of courses. If computers aren’t really your speed, it can also be beneficial for your personal and professional life to learn a new language. Find courses at a local school, online or even through smartphone apps like Duolingo.
Find a new hobby and share it. Maybe there’s something you love to do, like reading or cycling, but have trouble committing time to it on your own. Talk to your family or friends about starting a group where you can all enjoy this activity together. If the people in your life don’t quite share your enthusiasm, online resources such as Meetup.com, Facebook groups or other social media communities can connect you with like-minded individuals in your area. And if you can’t find what you’re looking for, you can always start your own group or club.
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Take a creative class.
There are plenty of creative activities that can keep your mind and body active, such as dance, photography, cooking, acting or learning a new musical instrument. If you’re looking for something less physical, consider creative writing, painting or crafting. Just remember to keep an open mind and enjoy what you’re doing, rather than focusing on perfecting or excelling at it (that’s what your career as a REALTOR® is for!).
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RRC news from the council
sell-a-bration Last call to join us in Vegas
This is your final chance to participate in Sell-a-bration 2019, the premier annual conference in residential real estate. Join us Feb. 1–2, 2019, at the iconic and luxurious Caesars Palace in Las Vegas for unparalleled education and networking opportunities.
Sell-a-bration 2019 features:
Ä30-plus Ä education sessions with six breakout tracks ÄTwo Ä powerful keynote speakers: Steve Sims and Crystal Washington Ä50 Ä top exhibitors with tools and resources for residential REALTORS® ÄPower Ä Stages with Power Talks ÄA Ä 2019 Fiat Chrysler Automobile (FCA) Group vehicle on display at the Exhibit Hall ÄOn-site Ä registration for Sell-a-bration 2020 at the lowest price offered
Bonus add-on features:
ÄTwo Ä Pre-Conference courses: Digital Marketing: Social Media and Systems for REALTOR® Success ÄCRS Ä Night Out at the VooDoo Rooftop Nightclub and Lounge ÄVIP Ä Package Upgrade
DRUM ROLL, PLEASE The Council is pleased to announce that Donna Marsh, CRS, is the winner of RRC’s Grand Prize Contest from the 2018 National Association of REALTORS® Conference & Expo. Donna’s prize package includes: ÄÄ Two tickets to any Las Vegas area shows Courtesy of the Las Vegas Convention and Visitors Authority ÄÄ One Southwest Airlines Gift Card. Value: $100 ÄÄ Two FREE nights at Caesars Palace Las Vegas during Sell-a-bration 2019. Value: $430 ÄÄ One FREE Sell-a-bration 2019 registration. Value: $699 (members) & $749 (non-members)
To learn more about Sell-abration 2019 and to register for this incredible event, please visit CRS.com/ sell-a-bration or call 800-462-8841.
Congratulations, Donna!
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AND THE winners ARE …
RRC news from the council
Halloween on full display at the Member Welcome Reception The winners of the Member Welcome Reception Halloween costume contest.
The 2018 RRC Inaugural Awards and Installation Ceremony took place on Saturday, Nov. 3, 2018. Michael Burkhard, CRS, was installed as the 2019 President. Richard Waystack, CRS, and Alex Milshteyn, CRS, were installed as President-Elect and First Vice President, respectively. They also served as the evening’s emcees. Top: 2018 President Gary Williams, CRS, (right) hands the gavel to 2019 President Michael Burkhard, CRS. Bottom: From left to right: Richard Waystack, CRS, and Alex Milshteyn, CRS, are installed as President-Elect and First Vice President, respectively.
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The opportunity to network with top industry professionals, enjoy food and drinks, and participate in a costume contest was the highlight of the evening at the Halloweenthemed Member Welcome Reception held on Oct. 31, 2018. ÄEllis Ä Gardner, CRS, won first place dressed as a gladiator. His costume perfectly promoted Sell-a-bration 2019 being held at Caesars Palace in Las Vegas. Gardner received a free registration to Sell-a-bration and will be featured in a future Peer-to-Peer article in The Residential Specialist magazine. ÄSecond Ä place was awarded to Evelyn Arnott, CRS, who appeared as Wonder Woman. She received a free registration to Sell-a-bration. ÄShirley Ä Matlock, CRS, and Mary Jo Schaper tied for third place for their creepy clown and Flo from Progressive costumes, respectively. They each received a $100 gift certificate good toward any restaurant in Caesars Palace during Sell-a-bration 2019.
let’s talk ABOUT IT Customer Care rolls out two new communication tools
In order to continue to improve communications with our members and the residential real estate community, the Council recently launched two new customer care features: Queue Callback and Chat. These features will help streamline the process and seamlessly integrate all interactions through phone and email—and now chat—into one record for each member. Both features have been properly tested prior to the launch. The chat feature is currently being integrated on a trial basis. Here are the basics of how each will work:
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Chat
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Queue Callback
ÄSaves Ä your place in line when you call the Council’s Customer Care team. ÄProvides Ä estimated wait times based on the number of callers ahead of you. ÄCallers Ä can choose to be contacted at a different phone number other than the one used.
ÄLocated Ä on specific pages of CRS.com based on areas that receive the most questions. ÄOne Ä to two agents will be available on Chat from 10 a.m. to 5 p.m. CST Monday through Friday. ÄProvides Ä an immediate response to short, quick questions. ÄMembers Ä will receive a follow-up phone call for questions that require a full conversation. ÄAutomatically Ä sends a copy of the chat transcript to the email address provided in the chat box. To ensure quality service, all four agents on the Customer Care team are cross-trained to answer all questions and resolve issues. The staff also regularly receives continuous and updated training.
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The Residential Real Estate Council
Have a question about the Council’s website or tech? Go to CRS.com/ status for updates on the website, course rosters, customer care stats and more.
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RRC
MEET OUR NEW DESIGNEES
news from the council
Celebrate and acknowledge your peers in residential real estate who have recently earned the Certified Residential Specialist (CRS) Designation. Visit the “Welcome New CRS Designees” webpage at CRS.com/newdesignees where you can view the names and locations, along with links to Find a CRS profiles, of new designees. Congratulations on achieving this prestigious designation!
October
Regenia Andrews, CRS Vincent Arcuri, CRS Debra Atencio, CRS Julia Barnes, CRS Patty Bentley, CRS Carol Berry, CRS M Bettis, CRS Martin Block, CRS Heather Blodgett, CRS Tammy Borders, CRS Linda Bourgeois, CRS Christine Brett, CRS Sammy Brock, CRS Sharon Brown, CRS Brett Brummett, CRS Regan Buscemi Forrest, CRS Mary Butler, CRS Kim Byrd, CRS Carla Cain, CRS Lien Celi, CRS Rick Chapman, CRS Susan Checchio, CRS Cheryl Cook, CRS Coleen Cooke, CRS Sharon Cox, CRS Regina Cramer, CRS David Crosby, CRS Mike Crowley, CRS Maria Dargan, CRS Michelle DeKoekkoek, CRS Tiffany DeLucia, CRS Sue DeValdes, CRS Rocky DeVon, CRS Brianne Drake, CRS Irene Echenique, CRS Dawn Elias, CRS Shari Ellis, CRS Barbara Erker, CRS Juli Evans, CRS David Faber, CRS Colleen Fairbanks, CRS Sheri Firestone, CRS Carrie Fitts, CRS Deborah Garland, CRS William Giberson, CRS Charlen Glidden, CRS
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Svetlana Goletz, CRS Gavin Hall, CRS Bill Hamberg, CRS Kristina Harper, CRS Liz Harris, CRS Kim Harwood, CRS Marchele Hatchner, CRS Pamela Hill, CRS Matthew Hill, CRS Timothy Hock, CRS Sherri Hutson, CRS Cindy Jaeckle, CRS Meredith Johnson, CRS John Kagimoto, CRS Kim Kantrow, CRS Suzette Kattula, CRS Robert Keely, CRS Julie Kinnaird, CRS Sherman Kirby, CRS Eileen Knight, CRS Ellie Lambert, CRS Juliana Lanier, CRS Stephanie LeFew, CRS Lois Long, CRS Selena Lovejoy, CRS David Lucca, CRS Karen Manuel, CRS Ann Marcheschi, CRS Brittany Marchetti, CRS Yelena Martin, CRS Joshua Matthews, CRS Larry Maynard, CRS Samantha McHugh, CRS Katy McKinnon, CRS Ben Mikael, CRS Jean Mitchell, CRS Karen Moon, CRS Deborah Morgan, CRS Joanna Morris, CRS Diane Mosinski, CRS Leah Newth, CRS Binh Nguyen, CRS Yates Nobles, CRS Neal Oates, CRS Mary Ogle, CRS Roberto Ortiz, CRS Steven Ortolf, CRS
The Residential Specialist trsmag.com
Charna K. Parler, CRS Karen Parr, CRS Melissa Patton, CRS Heidi Pecora, CRS Mahealani Perkins, CRS Xan Pilgrim, CRS Teresa Poindexter, CRS Diana Power, CRS Ian Prichard, CRS Debbie Raines, CRS Marianne Raymond, CRS Justin Reesy, CRS Dan Rider, CRS Janet Robel, CRS Lisa Roberts, CRS Virginia Rogan, CRS Kate Rooke, CRS Rich Rowland, CRS Cathy Ryden, CRS Lana Sanders, CRS Kara Schell, CRS Demetria Scott, CRS Wendy Shiley, CRS Kent Simpson, CRS Charles Sirianni, CRS Russell Smiley, CRS Chris Smith, CRS Elizabeth Smith, CRS Angie Snyder, CRS Janis Stapleton, CRS Stefanie Stockberger, CRS Connie Strickland, CRS Tamara Taylor, CRS Jennifer Taylor, CRS Valerie Threlkeld, CRS Mary Timm, CRS Kristen Tomczak, CRS Scarlet Torok, CRS Wayne Toteff, CRS Sara Trautner, CRS John Vaughan, CRS Robert Vesci, CRS Roderick Walker, CRS Mike Wells, CRS Dana Weyl, CRS Cari Wilson, CRS Jennifer Wray, CRS
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Michelle Wunker, CRS Merrite Wyatt, CRS Sandra Wyrosdick, CRS Myra Yamada, CRS Janet Zerler, CRS
November
Renee Abbenante, CRS Barbara Abrams, CRS Anne Albimino, CRS Jan Alexander, CRS Carmen Andrew, CRS Diane Andrews, CRS Barbara Asbury, CRS Teresa Barba, CRS Leza Barnard, CRS Regina Befumo, CRS Chris Bennett, CRS Fran Bixler, CRS Andrea Sue Boeye, CRS Charlie Boon, CRS Tara Braithwaite, CRS Paul Bruce, CRS Nora Burrows, CRS Michael Carnahan, CRS Daphne Cawley, CRS Julie Cope, CRS Gale Cornelison, CRS Meagan Coscia, CRS Leah Courage, CRS Charles Cunningham, CRS Adina Daniel, CRS Alice de La Penha, CRS Marie Dickinson, CRS Michael Domeck, CRS Didi Doolittle, CRS Don Dorsey, CRS Sergio Duran, CRS Angela Durr, CRS Sandy Eagon, CRS Maggie Easton, CRS Nina Eizikovitz, CRS Robert Evans, CRS Julie Fleck, CRS David Fountain, CRS Kathleen Funk-Linton, CRS John Furrow, CRS
Amy-Noelle Gallo, CRS Lillianne Garcia, CRS Chris Garrett, CRS Michelle Glaves, CRS Bernadeta Godek, CRS Jorge Gonzalez, CRS Andrea Greenwalt, CRS Judy Guest, CRS Sunshine Hard, CRS Garry Harris, CRS Nicole Haun, CRS Brenda Hays, CRS Judi Heinz, CRS Janet Herzog, CRS Suzanne Holly, CRS Tina Houpy, CRS Kari Hull, CRS Heddy Humcke, CRS Odetta Jasper, CRS Kathy Jones, CRS Laura Kemble, CRS Jeff Kinion, CRS Amber Klingensmith, CRS Sue Koons, CRS Sierra Kovash, CRS Dorota Kundera, CRS Jared Labarga, CRS Hedy LeBlanc, CRS Boomer Lee, CRS Hope Leitner, CRS Jody Libed, CRS Shelby Lovecchio, CRS Leann Mahaffey, CRS Kate Marrone, CRS Sue Marsh-Shikiar, CRS Thomas McCallie, CRS John McCormack, CRS Rhoda McGlynn, CRS Beverly Michalek, CRS LaJuana Miller, CRS Monica Miller, CRS Susan Morris, CRS Robert Neitzke, CRS Mike Nugent, CRS Wendy Ann O’Brien, CRS Dorothy Ollier, CRS SaraBeth Owens, CRS
Cindy Penn, CRS Stephen Phillips, CRS Shalyce Pocock, CRS Mary Poillion, CRS Allyson Puentes, CRS Lynn Ray, CRS Pam Redden, CRS Karen Regan, CRS Cheryl Retterath, CRS Tara Riggs, CRS Cathy Rojas, CRS Sue Romens, CRS John Rupp, CRS Elizabeth Sachero-Perez, CRS Jamie Shea, CRS Ben Shelton, CRS Luisa Sipple, CRS Brady Smith, CRS Laurie Sonnenfeld, CRS Laura Soride, CRS Joshua Spotts, CRS Donna Staccioli, CRS Diane Stone, CRS Michelle Stowe, CRS Candace Strong, CRS Laura Sulborski, CRS Aaron Tangonan, CRS Helgi Thorhallsson, CRS Jennifer Tilghman, CRS Kevin True, CRS Sam Turgeon, CRS Lisa Turley, CRS Terri Turner, CRS Torrie Vann, CRS Jennifer Viger, CRS Beth Vogt, CRS Marilyn Vos, CRS Susie Waggoner, CRS Elizabeth Walker, CRS Kristin Walter, CRS Laurie Westheimer, CRS Susan Wilson, CRS Agnieszka Wyrzuc, CRS Hannah Yuhas, CRS Andy Zoda, CRS
know YOUR OPTIONS
learn from the
strategies from the industry’s top educators
Help your clients locate a loan that works best for them By Marki Lemons-Ryhal, CRS
IDENTIFY DOWN PAYMENT ASSISTANCE PROGRAM
As a REALTOR®, you want to ensure that the buyer has financing in place before you dedicate your time and effort searching for prospective properties. If the buyer is using bank financing, you will most likely request a pre-qualification or pre-approval letter from the financing institution. You can help guide your clients to the best loan options.
A November 2017 report from the Urban Institute indicated that 76 % of consumers are not familiar with low-downpayment programs.
Purchase rehab loan
The 203(k) program is HUD’s primary loan program for the rehabilitation and repair of single-family properties. It is an integral tool for community/neighborhood revitalization and for expanding homeownership opportunities. Many lenders have successfully used the 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. The 203(k) loan allows a borrower to finance the acquisition and rehabilitation of property into one loan. The total loan amount is based on the ARV (after-repair-value) of the property.
BEST
FHA requires the buyer to put down 3.5 percent of the purchase/rehab loan amount. For example: Assume that your client would like to purchase a home for $50,000 and the home is in need of repairs that cost $40,000. The purchase rehab amount is $90,000, and the buyer would need 3.5 percent of $90,000 ($3,150) for their down payment.
RRC INSTRUCTOR
HOW THE PROGRAM CAN BE USED The 203(k) can be used to accomplish rehabilitation and/or improvement of an existing one-to-four-unit dwelling in one of three ways: 1. To purchase a dwelling and the land on which the dwelling is located and rehabilitate it. 2. To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it. 3. To refinance existing indebtedness and rehabilitate such a dwelling.
Depending on the repair cost, FHA offers two renovation financing vehicles: FHA 203(k) Streamline and the regular FHA 203(k): FHA 203(k) Streamline: The Streamlined FHA Rehab loan is a newer product designed to save the homebuyer money by not requiring a consultant. A contractor can bid on the work if it is less than $35,000 and relatively simple. FHA 203(k): The regular (k) is used for renovation projects that exceed $35,000. However, it can be used for smaller projects as well, with a minimum of $5,000 in renovation costs.
Hard money lender
Hard money financing is available for some investors seeking financing for rehab projects. These loans can be beneficial to investors who are unable to obtain financing from other conventional sources. Hard money financing is intended to be short-term because of the higher interest rates and costs associated with the loans.
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The Residential Real Estate Council
Licensed Managing Broker, REALTOR®, avid volunteer and RPAC Major Donor, Marki Lemons-Ryhal is dedicated to all things real estate. With over 25 years of marketing experience, Marki has taught over 250,000 REALTORS® how to earn up to a 2,682 percent return on their marketing dollars.
crs.com
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Jan Feb
RRC connect
YOUR RRC
network
expand your network
Ø
I received a call from Cynthia Biggs, CRS, of #1 Properties in Cheyenne, Wyoming, with a referral. This couple purchased a home with me as the buyer’s agent in March 2016 for $215,000. We stayed in touch and they became very dear to me. Next, their daughter’s family decided to move to our area and they asked me to find them a home. They closed on a new construction home for $289,252. Then my sweet couple told me a home in their neighborhood was coming on the market and they were interested in it. We helped them close on this next home for $240,000. They listed the previous home again and it sold for $221,500! That’s $965,752 worth of sales volume and four closed units from one client who was sent by another CRS! CONNECTION PERFECTION
—Holly Rose, CRS, Allen Tate Realtors, Burlington, North Carolina PACIFIC
PACIFIC
HAWAII
www.JoanneFoxxe.com
808-385-2918 jofoxxe@gmail.com
Nancy D. Metcalf, CRS REALTOR®, Vice President
Luxury Property Specialist RB-16599
Hawaii CRS of of Year, 2003® Hawaii Association REALTORS REALTOR® of the Year 2018 Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com
Joanne Foxxe CRS, GRI, SRES e-pro
Celebrating 27 years yearsassisting assistingclients! clients! Celebrating 25
Maui CRS director
MID-ATLANTIC
MID-ATLANTIC
NORTHERN VIRGINIA
ARLINGTON, ALEXANDRIA, FAIRFAX, FALLCentreville, CHURCH, Aldie, Alexandria, Arlington, Ashburn, Burke, HERNDON, RESTON, STERLING Chantilly, Fairfax, Falls Church, Herndon, Reston, Sterling
CHESAPEAKE NORFOLK VIRGINIA BEACH
Cristina Dougherty CRS, ARB 703-969-0471 GetKeyedUp@gmail.com www.GetKeyedUp.com Northern Virginia Real Estate Specialist I live here. I work here.
CHARLEE@CHARLEEGOWIN.COM │ WWW.CHARLEEGOWIN.COM
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Your referral source for the greater
Pittsburgh
area
I help clients make the Wright move CRS, CRS, GRI, PMN Nancy Wright, ABR, GRI
RE/MAX Realty Brokers 5608 Wilkins Ave. Pittsburgh, PA 15217 x221 OFS: 412-521-1000 x170 CELL: 412-508-0040 nancywright@remax.net
MID-ATLANTIC
MAUI Real Estate
...sharing Aloha through excellence and experience...
NORTHEAST
13 Approved courses from which to choose! Let’s do a great class together!
Mike@Selvaggio.com (302) 584-5590
www.Mik keMyCoach. oach.ccom www.MikeMy yCoach.com www.MikeMyCoach.com C MID-ATLANTIC
RRC CLASSROOM COURSES
RRC classroom courses earn either eight credits (for one-day courses) or 16 credits (for two-day courses) toward the CRS Designation. At press time, the RRC courses listed below were scheduled for 2019. For more up-to-date listings, visit CRS.com/ education-catalog . To attend a class, please go to CRS.com/events-calendar, locate the date of the course you would like to attend and follow the registration prompts.
Top of Mind Techniques to Boost Your Brand February 6—Denver, Colorado [Denver Metro Association of REALTORS®] Instructor: Rich Sands, CRS
Power Up On Smart Home Technologies February 14—Tacoma, Washington [Washington RRC] Instructor: Matthew Rathbun, CRS
Tax Strategies for the Real Estate Professional February 8—Boise, Idaho [Idaho REALTORS®] Instructor: Chris Bird, CRS
Power Up On Smart Home Technologies February 15—Bellevue, Washington [Washington RRC] Instructor: Matthew Rathbun, CRS
Zero to 60 Home Sales a Year (and Beyond) February 11—Baxter, Minnesota [Greater Lakes REALTORS® Association] Instructor: Matthew Rathbun, CRS
WEST
7 Things Successful Agents Do Differently: A Proven Business System February 19—Clive, Iowa [Iowa Association of REALTORS®] Instructor: Dale Carlton, CRS Tax Strategies for the Real Estate Professional February 20—Clive, Iowa [Iowa Association of REALTORS®] Instructor: Dale Carlton, CRS
WEST
WEST CALIFORNIA’S MONTEREY PENINSULA A trusted name on the Monterey Peninsula for nearly 50 years! Terry McGowan CRS, GRI, ABR, SRS, e-Pro, SRES Cal DRE# 01126129 Sotheby’s International Realty 831-236-7251 terry.mcgowan@sothebyshomes.com www.terrymcgowan.com
DRE License #: 01111620
WEST
Specializing in helping You reach Your Real Estate goals since 1991!
WEST
WEST
Selling Lake Tahoe Since 1989 tural Resources Na ”
“One of Lake T
BEN & CAROLE HEINRICH
Over $800 million in Tahoe Sales
ah o
e’s
CZ
t. c o m
Local real estate experts in Carmel, Carmel Valley, Pebble Beach, Big Sur, Monterey & Pacific Grove for over 30 years.
oe ag en
Cr
ai g
e Z a ger | l a k
ta
h
Carole, CRS, CFP® Ben, CRS & CRB RSPS & SRES CRS NorCal chapter past president
www.TheHeinrichTeam.com 831.626.2434 Team@TheHeinrichTeam.com
DRE# 01005829
Ben BRE License #: 00584641
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The Residential Real Estate Council
crs.com
Carole BRE License #: 01069022
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Jan Feb
CRS
connect
CRS CLASSROOM COURSES
expand your network
Power Up On Smart Home Technologies February 28—Berlin, Maryland [Coastal Association of REALTORS®] Instructor: Matthew Rathbun, CRS Mastering Relevant Consumer-Focused Marketing February 28—Memphis, Tennessee [Memphis Area Association of REALTORS®] Instructor: Kim Cameron, CRS
7 Things Successful Agents Do Differently: A Proven Business System March 5—Dallas, Texas [Texas RRC] Instructor: Matthew Rathbun, CRS Digital Marketing: Social Media March 6—Austin, Texas [Texas RRC] Instructor: Matthew Rathbun, CRS
Converting Leads to Closings February 28—Anchorage, Alaska [Alaska RRC] Instructor: Chandra Hall, CRS
SOUTH
Building a Team to Grow Your Business March 1—Anchorage, Alaska [Alaska RRC] Instructor: Chandra Hall, CRS
Luxury waterfront specialist serving Longboat & Sarasota, FL for 35 years
Building a Team to Grow Your Business March 4—Colin County, Texas [Texas RRC] Instructor: Matthew Rathbun, CRS
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. RRC 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.
ABR, CLHMS, CRS, GRI, e-Pro
941.356.0437
DebraPitell-Hauge@michaelsaunders.com SarasotaHomes4Sale.com 440 Gulf of Mexico Dr | Longboat Key, FL 34228
Ad_CRS-040_LenardLind-Rev19_JF19_MP_112pv.pdf
1
SOUTH
CANADA
12/4/18
1:19 PM
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 RRC members.
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your *
home J A N / F E B 2 019
Tips and tre nd s for homeow ners, buyers and sellers
TIPS FOR HIDING MESSES WHILE SELLING A HOME
current
KITCHEN TRENDS
According to a survey from meal kit delivery company HelloFresh, 35 percent of millennials who own a home or are likely to purchase a home in the next few years said the kitchen is the most important room when it comes to the house hunt. But what features are trending? Here are some to look out for, in case you’re in the market to update your kitchen or are selling your home and hoping to attract more buyers: Stone countertops and tile backsplashes. While granite is still the frontrunner for countertops, marble and quartz are also growing in popularity. Meanwhile, interest in tile backsplashes has been growing steadily.
Stainless steel appliances. Perhaps unsurprisingly, stainless steel continues to be the most popular look for appliances and one of the most searched-for keywords in relation to kitchen features. Breakfast bars and islands. Sixty-four percent of respondents in the HelloFresh survey said that a big island is a must-have feature in their dream kitchen. Interest in breakfast bars has also been growing steadily. Entertaining extras. While they may seem extravagant to some buyers, extra amenities such as wine fridges, double ovens and outdoor kitchens are rising in popularity for those who like to entertain.
An important part of the home-selling process is showing it to prospective buyers. Unfortunately, that means tidying up even more frequently than you normally would, so buyers can focus on the house’s features rather than your household items. While it may not be possible to keep your home completely mess-free when you have children, below are some tips for keeping the chaos to a minimum: Under-bed storage. If there’s enough space under their beds, encourage kids to keep their rooms tidy with rolling plastic or rattan storage bins. Then, use an oversized comforter or quilt— or strategically placed blankets—to hide the bins from sight. Built-in storage. It may be impossible to keep things from leaving kids’ rooms and entering the living room. Utilize furniture with built-in storage, such as ottomans, or clear a drawer in the entertainment center specifically to tuck away any roaming toys, games and other items. Baskets and trunks. If you don’t have much built-in storage or discreet space to take advantage of, consider buying decorative trunks or baskets with lids that you can place around your home. Suitcases. If you need to store toys in the back of a closet, put them in suitcases that you can easily roll and move rather than bulky plastic bins. Suitcases are also a more discreet storage option than bins when buyers glance inside the closet to gauge how much space is available. Donation. While your kids may feel attached to every toy, stuffed animal or plaything they own, it might be time to downsize the collection. Suggest that they start a donation pile, so that their unused items can bring joy to other kids instead.
BROUGH T T O Y OU B Y Y OUR A GEN T, A CERT IFIED RE SIDEN T I A L SPECI A L IS T
IL
*
*
EFER R
A
LS!
ER OV
EQUAL HOUSING
DO YOU KNOW SOMEONE WHO IS THINKING ABOUT BUYING OR SELLING A HOME? PLEASE MENTION MY NAME. This newsletter is for informational purposes only and should not be substituted for legal or financial advice. If you are currently working with another real estate agent or broker, it is not a solicitation for business.
OPPORTUNITY
Tips and trends for homeowners, buyers and sellers
5 home features THAT
MIGHT BE A WASTE OF MONEY When looking for a home, there are always features seemingly everyone says you need. But by reconsidering those, you may save yourself a pretty penny. Here are five features to reconsider, especially if you’re trying to buy a house on a limited budget:
1.
Close access to mass transit. Regular commuters and people who don’t own cars might be vying for homes near public transit systems. But if you won’t be relying exclusively on these systems, you can save yourself a lot of money by living farther from these hubs.
SAY YES TO CRS
2.
4.
3.
5.
A big yard. All of that open outdoor space may look tempting at first glance. However, ask yourself how often you’ll really be using the yard. Do you have pets or children that will play in it? Will you do any outdoor entertaining? If not, the cost and time spent on lawn maintenance and landscaping may not be worth it. A top school district. Some parents will pay top dollar to send their kids to specific schools—and to live in the best school districts. If you don’t have or plan on having children while living in this house, you may want to do a little research into school districts during the homebuying process and avoid the areas where costs are higher.
Amenities you won’t use. Whether it’s a built-in wet bar or a double oven in the kitchen, the cost of these amenities are reflected in the home’s final price. Ask yourself if you’ll really take advantage of these features before committing to the purchase. More space than you need. While large living spaces and extra rooms are nice to have, will you really use them? Be honest with yourself—and save money on the price of a home, as well as on heating, cooling and cleaning costs, by buying a smaller home.
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.
ask a
CRS advice from your peers
Q:
ALL IN A DAY’S NETWORK
Sell-a-bration 2019 is almost here. What do you enjoy most about attending SAB?
SAB is great for meeting old friends and making new ones. —Christel Silver, CRS, Silver International Realty, Delray Beach, Florida
SAB allows us to reconnect with our friends. The education and energy from all the great attendees is another reason to go to this event. I’m looking forward to seeing everyone. —Waylon Chavez, CRS, ABQ Premiere Properties, Albuquerque, New Mexico
Sell-a-bration is about being together with many of the best and nicest agents in our business— to be able to focus on how we can do our job better and represent our clients better—and not caring what brokerage we are with. It’s not just about passing out business cards, but truly building lasting relationships with each other. —Jerry Moscowitz, CRS, RE/MAX Results, Plymouth, Minnesota
Starting Feb. 1, you can register for Sell-a-bration 2020 at CRS. com/SAB2020.
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My favorite part about Sell-a-bration is the ability to go to fun locations to do what I love—immerse myself in real estate. The first Sell-a-bration I attended was in Hawaii. I can’t wait for Las Vegas—it is always a great place to go! —Jim Paulson, CRS, Progressive Realty Corporation, Boise, Idaho
The opportunity to network with other agents at lunch, dinner and during the breaks is what I enjoy most. We develop relationships that may lead to referrals or better ways to approach our business. —Tim Burroughs, CRS, eXp Realty, Meridian Idaho
Sell-a-bration is about networking and gleaning great information from the top REALTORS® around the country. —Susanna Boyer, CRS, Classic Realty, Round Rock, Texas
The Residential Specialist trsmag.com
20 19
I enjoy the hugs and smiles from friends in our business, who work to serve their clients in like ways. —Fran Rokicki, CRS, Fran Rokicki Realty, LLC, Bolton, Connecticut
This is home. It’s a place called reputation. Whether your clients are buying or selling, Pillar To Post Home Inspectors is dedicated to ensuring confident home ownership. With over 3 million inspections completed and a 98% recommendation rate, we prove our commitment to excellence, and to you.
800-294-5591 Each office is independently owned and operated.
pillartopost.com