The Residential Specialist, September/October 2020

B USINE S S INTE LLIG E N CE F O R THE R RC PRO FE SSIO NAL

SEPT/OCT 2020

ESCAPING URBANITY City dwellers are trading in high-rises for sprawling suburban space

28

+ Adapting to the “new normal” 20 + Soft skills can drive success 24

CRS-052

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Sept/Oct 2020

1

Vol. 19, No. 5

20

24 28

Designation Maintenance Article Cover art:  iStock.com: Brankospejs

FEATURES 20 The New Normal

24 Confide Confidently

The rapid and unexpected spread of COVID-19 affected a vast number of industries, and the real estate industry was not immune to change.

By Andrew Conner

The Residential Real Estate Council crs.com

Few consumers are fond of the hard sell, but in real estate—perhaps more than in other industries— soft skills are the way to the customer’s heart.

By Michelle Markelz

28 Urban Exodus City life has become synonymous with cramped quarters that make social distancing and remote work more difficult, so housing priorities have shifted.

By Kathleen Hagan

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Sept/Oct 2020

CONTENTS

Vol. 19, No. 5

4

Aerial View

6

igital Channel: Online classes, tools and D resources available from RRC.

Richard Waystack, CRS

Market Pulse 8

ersonal Perspective: Tricia Tialdo, CRS, P Strano & Associates, Belleville, Illinois

9

ot So Different After All: CRSs can N bring their usual high level of service to clients with special needs or disabilities.

By Myrna Traylor

* 12 I n the Weeds: RRC education on the effect of expanding marijuana legalization.

By Scott Mason

18

12

15 F ollow-up Secrets: Following-up with prospects and former clients is one of the most important traits of any successful salesperson.

By Rene Ryan

18 A t This Stage: RRC offers practical strategies so new agents can be successful in the competitive real estate market.

34 M arket Values Insights from industry data.

Specialized Knowledge 36 C ouncil Classroom: Creating a stressfree real estate experience for clients.

38 I nnovations: Leveraging video and livestreaming strategies can be beneficial.

39 W ide Angle: Legal perspectives on the fight for fair housing practices.

48

40 Coaches Corner: How to become a master real estate agent.

Designation Nation 42 Your Own Council: RRC news and updates.

44 Ask a CRS: Advice from the country’s top agents.

EDITOR Kimberly Cure kcure@crs.com 800.462.8841 CONTRIBUTING WRITERS Andrew Conner Kathleen Hagan Michelle Markelz Scott Mason Rene Ryan Myrna Traylor

Advertising Manager Peter Glowacki Chief Learning Officer 312.321.4447 pglowacki@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 2020 BOARD OF tools they need to be exceptionally DIRECTORS successful in buying and selling President residential real estate.

Richard Waystack, CRS President-Elect Alex Milshteyn, CRS First Vice President Holli Woodward, CRS Immediate Past President Michael Burkhard, CRS Members Kim Cameron, CRS Maura Neill, CRS Dan Steward Greg Waldhour, CRS Jen Ward, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny

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 (USPS0021-699, ISSN 1539-7572) is distributed to members of the Council as part of their membership dues. Nonmembers 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 PUBLICATION advertising represent the opinions MANAGEMENT of the authors and advertisers, not the Council.

www.glcdelivers.com Publishing Manager Phil Malkinson Art Director Ivette Cortes

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 2020 by the Residential Real Estate Council. All rights reserved. Printed in U.S.A.

45 RRC Connect: Expand your network.

48 B alancing Act: Your choice of clothing may directly impact your business.

crs.com

* Designation Maintenance Article The Residential Specialist trsmag.com

Reach your peak.

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4

Sept/Oct 2020

Aerial View

From the desk of Richard Waystack, CRS 2020 RRC President

M

“

As members, we have a responsibility to share with our peers the value of what the Council offers.

ost CRSs were inspired to get the CRS Designation by somebody they knew—either a broker, a respected peer or a mentor.

For me, it was my father, who was a broker and early CRS Designee. He tapped me on the shoulder and said, “You need to get your CRS Designation if you want to take the business to the next level.”

What hooked me was the first RRC class I took. The excellence of the education offered made me realize I had to get this designation because it was the best education I had seen in real estate. I drove home and immediately told my peers about the exceptional information in the class. Contact with peers is the circumstance that gets you acquainted with what the organization offers, and the quality of the education makes the difference for your professional career.

Due to the pandemic, this year we provided fewer in-person classes, but we offered a lot of virtual training. Some has been provided for free by the Council, including assistance with the PPP and EIDL programs, which allowed some members to take advantage of those programs. It was by far the best education available. I spoke with other

REALTORS® about these particular programs, and they responded very positively.

We reached out to our colleagues in the industry who are not yet RRC members and provided this information to those who needed it. And they said, “This is excellent information—how can I get it?”

Being a member exposes you to many other professionals in the industry. The personal inspiration to become a member is the basis of the RRC family and the important work we do on a peer-to-peer level to inspire REALTORS® to grow professionally and personally.

As a CRS Designee, we know why this is important for our careers. As members, we have a responsibility to share with our peers the value of what the Council offers—that’s how professionalism in our industry rises.

It’s imperative that we work together to extol the value of the CRS Designation.

I’ve been involved in this organization for more than 25 years and I know what it has done for my career. So many of the personal relationships I have today are through RRC. It has given me the opportunity to meet, to know and to love some exceptional REALTORS ® who are doing incredible things in their community.

When someone asks me why they should become a member, I come back to the basic value proposition of RRC membership: Being part of the RRC family will help you grow, not only as a professional, but as a person. That’s an incredible value that is inherent in joining RRC. TRS

The Residential Specialist trsmag.com

Photo: Chris Cook

Inspiring Peers to Pursue a CRS Designation

6

Sept/Oct 2020

RRC strives to provide value to members in the digital space.

Each issue of The Residential Specialist highlights classes, tools and other member resources available online.

Digital Channel

Online resources for RRC members

Photofy your business

T

he Residential Real Estate Council is dedicated to helping CRSs succeed and connect with their clients in today’s social world. To assist, the Council has partnered with the National Association of REALTORS® and the Photofy content creation tool to create a version of the app dedicated to CRS-branded content.

The app allows you to easily personalize the social media graphics with your photo or logo and contact information, and then share them on your social media accounts.

It’s pre-loaded with ready-to-share videos and graphics with suggested copy to accompany them. The app is available for iOS and Android devices.

2

YOUR LOGO

Your Brand: Add logos or artwork assets to enhance your brand and messages across marketing platforms.

1

Templates: Choose from hundreds of templates.

3

Share: Photofy has the connectivity to share your content via social network, text and email.

 Customizable digital assets to help CRSs build their brand and their businesses.

HOW DO I REGISTER? CRSs will register through NAR and then click account, and switch over to RRC. Go to photofy.com/nar and enter your contact information and NRDS ID. Only NAR members can sign up to receive the NAR version of the app.

You can then download the app from the Apple App Store (for iOS devices) or Google Play (for Android devices).

The Residential Specialist trsmag.com

Sept/Oct 2020 2020 Sept/Oct

PERSONAL PERSPECTIVE Tricia Tialdo, CRS, speaks about her time as president of the Illinois RRC chapter and how she helps to serve her community.

PAGE 8

Market Pulse TRENDING HEADLINES AND IDEAS SPECIAL NEEDS: Learn how to best

Gary Luttrell Photography

provide service to clients with disabilities or special needs. PAGE 9

RRC EDUCATION: Marijuana legalization in the U.S. means agents should be familiar with its impact on the real estate industry. PAGE 12

The Residential Real Estate Council crs.com

CLIENT COMMUNICATIONS: Proper follow-up with clients can strengthen relationships and provide leads for the future. PAGE 15

AT THIS STAGE: RRC offers practical tips and strategies to the Young Professionals Network for successfully growing a business. PAGE 18

7

MARKET PULSE

8

Sept/Oct 2020

Personal Perspective

Tricia Tialdo, CRS Strano & Associates, Belleville, Illinois

What is interesting about the “Metro-East” market in southern Illinois near St. Louis?

Tricia Tialdo cheered on her alma mater, Clemson University, as it finished its basketball season in March—right around St. Patrick’s Day.

Tricia Tialdo, CRS, achieved CRS Designation in 2013.

She can be reached at tricia.tialdo@strano. com or 618.593.2983.

This is a charming community. We have fascinating local features, like the National Shrine of Our Lady of the Snows, Pere Marquette State Park and the Skyview Drive-In. This is also home to Cahokia Mounds—the largest pre-Columbian Native American city north of Mexico.

My main focus is to help people with single-family homes, condos and villas.

Condos and villas are popular with people who don’t want to do a lot of maintenance, are downsizing or want to be on one level.

Others like the personal touches they can put on a single-family home.

Plus, despite the pandemic, our stats show that residential home sales have rebounded well after a dip in April, and in St. Clair County, our days on market dropped 11.4% in June.

I have to say, I love what I do.

Profiles of people to watch

“retired” stuffed animals, and we have a professional carpet cleaner who cleans them so they can We concentrated be gifted to children on increasing awareEvery day I get to at holiday time. ness of the CRS help people have a Also, I am curDesignation and great homebuying rently vice-president the Council itself. or home-selling and on the board We helped educate experience. Seeing of the Belleville people about the people achieve the designation and how Area Humane American dream is Society. I am a big to achieve it. Some so great. No two days animal lover—my people didn’t realize are the same; it’s current dog is a how close they were always changing. rescue dog. I chair to qualifying for it. the Race for Rescue We spoke about the 5K each year and try benefits of having Are you active the CRS Designation, to motivate people with CRS? to adopt the shelter including sharing Yes. I was president animals. A couple knowledge and the of the Illinois RRC of years ago we were chapter last year, and referral opportuniable to transform ties that come when now I’m the immeone of our buildings you network with diate past president. into the cat building. other CRSs. We We couldn’t do it The cats have much had a good turnout this year because of more room to run for our classes. Our COVID-19, but every around, and out back sponsors stepped up, May the Illinois they have a “catio.” chapter of RRC hosts and we were pleased with the level of a pre-conference member participaparty at the state Tell us about the tion. A great team conference for the firms you have Illinois REALTORS® effort made it work. worked with.

Association held I worked with my in Collinsville. parents for 15 years Are there other That is a great netuntil they passed ways you serve working event for away. I have been at the community?

REALTORS® from Strano & Associates I was in the real for a year. When all over the state. estate business with I was with my parEveryone is invited: my parents, who ents, we were a CRSs, those in started their comteam. When I went training and those pany in 1981. They to Strano, I had to who are interested. were committed to rebrand as an indiThe other bonus giving back to the is that our raffle community and so is vidual, but I wanted generates money my current company, to maintain my family’s real estate for the Illinois Strano & Associates. legacy. Our family REALTORS® Relief In our office, we business motto was, have food drives and Foundation to help “We deliver dreams,” adopt a family in state residents and now that I am need. We also have who have been working as an india program called affected by tornavidual, my tagline is, “Tired Teddies.” We does, floods or other “I deliver dreams.” TRS accept donations of catastrophic events.

What was it about your term that you are most proud of?

The Residential Specialist trsmag.com

Individual accommodations Special

Needs

9

Sept/Oct 2020

Not So Different After All

By Myrna Traylor

B

eing a REALTOR® means facing certain realities. Buyers usually come prepared with a list of musthaves that the agent must do their best to secure in a home at the right price point.

Dealing with that list is only slightly different when the client has physical disabilities or other special needs. CRSs can bring their usual high level of client service to match this particular group of buyers with the right homes.

iStock.com: RealPeopleGroup

The extra miles

“When dealing with someone who has special needs, you let them set the tone. They’ll tell you what they need,” advises Al Cannistra, CRS, of Texas Premier Realty in San Antonio. He has had several clients with special needs, most of whom have been referred by other clients. One such client was a woman who had been in a bad accident and was walking with the assistance of two canes. “I filled in for a REALTOR® friend of mine who became ill and couldn’t help this woman,” Cannistra says. Once he and the client were The Residential Real Estate Council crs.com

working together, it was time to start visiting properties. When the client explained that she couldn’t drive, Cannistra offered to pick her up—a drive that was more than 30 miles each way. “We’d go to two or three houses; she couldn’t do more than that,” he says.

“And then I would take her home. And at the end of the week, she bought a house.”

Researching the right questions

Going the extra (30) miles is nothing out of the ordinary for CRSs. Nicki Conway, CRS, of Fine Properties in Sarasota, Florida, says that her experience working with special needs clients has taught her to ask a lot of questions. “The moment my client told me she had a handicap, I started asking questions. ‘How wide is your chair? Do you have a portable chair for touring homes? Do you want to go in my car or follow me in yours?

Will your husband or a caretaker be with you? Tell me what I need to look out for while finding your next home,’ and so on.”

Diana Galavis, CRS, of Watson Realty Corp. in Jacksonville, Florida, says she

26%

in the U.S. are living with a disability.

13.7

%

have serious mobility issues.

For more information on working with clients with disabilities, visit nar.realtor/ on-common-ground/ people-withdisabilities-are-notinnately-vulnerable.

MARKET PULSE

Special Needs

Sept/Oct 2020

Individual accommodations

doesn’t do special marketing to the disabled community. She, too, acquires clients through referrals and her own community activities. “I research resources such as schools, therapy centers or other programs,” she says, to prepare herself for whatever her clients might need. “Understanding, kindness and attention to detail allow the

What to look for in a wheelchairaccessible home ❶ Entry: Should have an entrance ramp. ❷ Doors and Hallways: The minimum

recommended door width is 32 inches.

Pocket doors are a plus. In the floorplan at right, the circular wheelchair symbol demonstrates the clearance needed to turn the wheelchair, generally 60 inches.

Kitchen: Cabinets with pull-out drawers. An accessible sink has a single lever faucet and is less deep than a regular sink.

Closets: The closet rod is at a lower level for easier access.

Flooring: Hard floor, no rugs.

Bathrooms: Sinks are lower with single-lever or a touchless faucet. The mirror and medicine cabinet are hung low. The toilet has grab bars. The shower has a curbless roll-in entry with multiple grab bars.

Outlets and light switches: (Not pictured) Electrical outlets should be raised and light switches lowered.

❸

❹

❺

❹ ❺ ❻

❼

Source: Room Sketcher

❸

❷ ❶

❻

customer to feel empowered and comfortable throughout the transaction.”

Accessibility needs

Of course, finding a home with the right accommodations can prove to be a challenge. People who use wheelchairs will be looking for accessibility in everything from thresholds to the width of doorways to hard flooring. In addition, lower counter heights in the kitchen and no-lip showers in the bathroom will make maneuvering safe and easy. The best feature set might be found in customizable new construction.

Cannistra worked with a client who was relocating to Texas. They worked with a national homebuilder who tweaked certain features at no cost, like widening the pantry entrance and making sure windows could be operated from his wheelchair. “When he relocated again—to Florida—he convinced me to get a real estate license in Florida so I could help him there,” reports Cannistra.

“He liked working with that builder so much he bought his Florida home from them, too.”

“Keep in mind there may be things about any home that need to be changed for your client,” Conway adds, “so you may need to provide vendors who can help make the home perfect. Make sure you get the home at a good price to allow for these changes.”

“When working with customers with special needs or accommodations, it is important to be receptive,” Galavis says. “Be aware of sensitivities, but treat them as you would treat any other customer.”

Conway agrees. “Treat your client with respect, and ask a lot of questions. Don’t give any indication you feel sorry for them. Your client is excited about finding a new home.

Your goal is to find the right home.” TRS

SELLING A HOME WITH ACCESSIBLE FEATURES

When it comes time to put a home with special features on the market, Diana Galavis says that every transaction is unique. “For instance, if a bathroom was modified with a standing tub, and the potential buyer would like a bathroom without the accommodation, the buyer may want to negotiate the conversion. They may want to have it remodeled back to the original bathroom or ask for concessions to have it done after the sale is complete,” she explains. “If the accommodation is necessary for the owner of the property while they are in residence, then a conversion prior to sale may not be an option. The key is to identify these potential objections, discuss them with the seller and suggest optional solutions upfront.”

The Residential Specialist trsmag.com

iStock.com: HYWARDS

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Sept/Oct 2020

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 Using Matterport 3D tours, prospects can explore properties. Share and promote a unique link for your 3D capture on any website, social media channel or email communication.

MARKET MOMENT

A Virtual Win Like everything else, the move to social distancing is changing how the real estate market operates, and some changes will probably stick even after the pandemic. Like all interactions in the age of COVID-19, home tours are going online. The trend toward virtual tours was already underway, but the pandemic has accelerated the acceptance of virtual open houses.

Matterport, which provides a 3D platform, recently polled 1,000 property buyers and 1,000 property sellers and found they would overwhelmingly opt for a more immersive experience. Nearly 80% of all respondents would switch to a real estate agent offering immersive 3D tours of listed properties.

From a list of 12 features of real estate websites, virtual tours were the fifth-highestrated feature among buyers who use the internet, according to NAR’s Home Buyer and Seller Generational Trends report for 2020. Averaged across all age categories, 42% of respondents found virtual tours to be a very useful website feature.

As the ability to see a home virtually gains popularity, NAR has distinguished between the following related terms: Virtual Tour: Prerecorded media (slide show, video, or other media) hosted online and available to watch at any time.

The Residential Real Estate Council crs.com

CNBC reports that

Zillow saw a 191% increase in the creation of 3D home tours in the first part of March 2020 compared with the average number created in February.

Redfin saw a 494% increase in requests for agent-led video home tours from early March to mid-March.

In late March, 18.9% of Redfin.com tour requests were video-chat tours, up from 0.2% at the beginning of March.

Virtual Open House: Real-time (live) scheduled event conducted virtually via live stream.

Virtual Showing: Real-time (live) scheduled property showing conducted virtually via live stream (or similar delivery) for a customer or client. TRS

From early March to late March, Zenplace saw a 293% increase in interest for its smart automated lockboxes and self-serve tours, and a 278% increase in its video, online and 3D tours.

MARKET PULSE

12

RRC Education

Sept/Oct 2020

Knowledge is power of RRC] was putting together a course on marijuana and the effects it was having on the real estate industry. He asked me for my input as I’m from Colorado, one of the forerunners on marijuana legalization for both medical and recreational use,” he explained.

So Burkhard and Carlton taught the class a few times together, and Burkhard has since taught the class himself, most recently for a virtual session in June with attendees based in Boston.

Burkhard went on to discuss some of the issues he touches on in his classes.

Dispensing knowledge

By Scott Mason

I NAR® takes a deep dive into how marijuana is affecting residential real estate. Visit nar. realtor/reports/ marijuana-and-realestate-a-buddingissue to learn more.

t has been a long time coming, but jurisdictions throughout the U.S. are beginning to change their tune on marijuana. While California was the first state to legalize cannabis (albeit just for medicinal use) in 1996, there are now 39 states that have some form of legalized marijuana on the books.

As marijuana legalization becomes more prevalent across the country, agents must educate themselves on potential issues that may be related to the homebuying or selling process to further assist clients.

Michael Burkhard, CRS, immediate past president of RRC, recognized that these new challenges are only growing in number. “Dale Carlton [another past president

All-cash issues

One major challenge that REALTORS® may have to address is the impact on the lending/mortgage side of transactions.

Since marijuana is still illegal at the federal level, financial institutions forbid the depositing of any cash earned through cannabis transactions. Any bank assisting with cannabis-related transactions can be charged with money laundering. This creates a hardship on buyers who work in the marijuana industry and makes loan approval more difficult.

Mortgage requirements may be more flexible in states that already have an The Residential Specialist trsmag.com

iStock.com: Ganna Bozhko

In the Weeds

While experts were unsure of how marijuana legalization would affect various industries, Burkhard said that the residential real estate market has stayed relatively stable. “I don’t think the problems that people expected have been as large or as great as anticipated,” he said. “The challenges for commercial [real estate] have definitely been more difficult than for residential.”

The community agrees with Burkhard, as residential property values seem for the most part unaffected. Results from a National Association of REALTORS® survey in September 2019 showed 8%–27% of those surveyed said they’ve seen property values near marijuana dispensaries decrease. However, 7%–12% of respondents in that same survey say that residential property values have actually increased.

From these results, it’s difficult to see a direct effect that legal dispensaries are having on the market, which may be good news for agents hoping for stability.

Sept/Oct 2020 established and thriving marijuana industry, like California or Colorado.

A well-documented and stable revenue stream will be required, and even that may not be enough to receive approval.

But buyers shouldn’t give up, as there are a few other ways to achieve the dream of homeownership: ff Co-borrowers or co-signers: Seeking the assistance of friends or family who can vouch for you financially may be a good route to take. While a co-borrower receives legal ownership rights for the property, a co-signer is not given any form of ownership. ff Alternative lenders: Local credit unions may be more likely to provide a loan than a national, FDIC-insured institution.

But be aware, interest rates are usually higher when compared to big banks. ff Cash: While it may seem daunting, saving up enough cash to purchase a home outright may be the simplest solution for buyers in the marijuana industry.

For REALTORS® assisting with these unorthodox purchases, it’s always advisable to consult an attorney to further help and educate your client on the risks and requirements involved.

Interior considerations

States that have legalized marijuana often allow for plants to be grown inside of a

property as well as outdoors in a garden or greenhouse. However, the risks to the property increase as the crops are brought indoors.

Marijuana plants need extensive light and water to grow properly, so an owner may create their own lighting and irrigation systems for their crops. However, many of these projects are not performed by professional tradesmen, resulting in red flags during inspections.

“I had one property where [the owners] were growing six marijuana plants in their garage, with plastic surrounding the plants to create a mini-greenhouse,” Burkhard said. “All good and fine, except that mold had gotten in and climbed up the wall in the garage. When the inspector looked at the property, he determined the mold had gone all the way up the wall and was now in the attic.” Burkhard said the buyer still bought the house, but not before expensive remediation from the sellers.

He also mentioned an example where a homeowner, evidently without the work of a certified electrician, rerouted wires throughout the house to provide increased power for marijuana lighting in the basement. “That was a huge red flag,” Burkhard said.

If an agent knows that the previous owner is growing cannabis, a thorough inspection of these components is necessary to provide buyers with a full and clear picture of the

HIDDEN DANGERS

13

REALTORS® need to educate themselves on issues surrounding the growing legalization of marijuana.

Designation Maintenance Article Meet your Designation Maintenance requirements today! Read this article and “Urban Exodus” on p. 28, take a 10-question quiz and earn 2 credits. Go to CRS.com/trs-quiz to get started.

iStock.com: SLRadcliffe

As former marijuana grow houses can harbor unseen structural or maintenance issues, REALTORS® need to arrange for detailed inspections of such homes and properly inform potential buyers of the home’s history. However, these grow houses may have been operated illegally, thus lacking disclosure of what modifications were made by previous owners.

The Canadian Real Estate Association released a report documenting the warning signs REALTORS® should look for when identifying a former marijuana grow house: ff Modified ductwork that doesn’t seem to make sense. ff Circular holes in floor joists or roof trusses from venting (look for holes that have been patched). � C hunks of brickwork on the exterior that have been replaced. � B rown stains in soffits, created by external venting, or brand-new soffits. � N ew plumbing to provide water supply and drainage.

ff Stains on basement floors caused by containers that sat unmoved for long periods of time, or stains in laundry tubs. f f Modified wiring and electrical panel.

Sometimes live wires can still be in the insulation. f f Foundations and concrete walls cored or breached to get wiring around the hydro meter. f f Warped/rotted wooden structures due to excessive moisture.

The Residential Real Estate Council crs.com

MARKET PULSE

RRC Education

Sept/Oct 2020

Knowledge is power

DIFFICULTY SELLING A GROW HOUSE

f fAmong residential members who had sold a grow house in states where medical marijuana is legal, 29% had a difficult time selling a grow house. f fIn states where marijuana was legal the longest, one-quarter of members who sold a grow house had a hard time selling the home.

Percent Saying it Was Not Hard to Sell a Grow House

Source: NAR 2020Marijuana and Real Estate: A Budding Issue

80 % 60 % 40 %

75%

73%

71%

Both Recreational & Prescription Legalized Before 2016

Both Recreational & Prescription Legalized Since 2016

Only Prescription is Legal

20 %

0

health of the home. In addition, buyers should note that average utility costs for a property may be significantly skewed as a result of the increased water and electricity use.

Knowledge is power

Burkhard points out that with legalization growing across the country, some people are specifically moving to states with the intent of taking advantage of these new permissions—and they have questions.

“Agents are being asked questions about marijuana in these states, so here in Colorado, we put together a pamphlet listing all the things a homeowner can and can’t do,” he said. Similar information distributed to a potential client is useful for building a trusted relationship.

And while REALTORS® may think they have everything under control, Burkhard stressed the importance of continuing education on the subject. “[As an educator], it always comes down to how we can help CRS agents be the best they can be.” TRS

MARKET MOMENT

A First Time for Everything The number of first-time homebuyers is on the rise. And according to NAR’s 2020 Home Buyer and Seller Generational Trends Report, more millennials became first-time homebuyers compared to any other age group category—88% of younger millennial homebuyers and 52% of older millennial homebuyers were first-time homebuyers.

Based on a report from NAR—Down payment Expectations and Hurdles to Homeownership—the most significant obstacle for buyers in 2019 was the down payment.

According to 26% of first-time buyers, saving for the down payment was the most challenging aspect in the homebuying process.

“The down payment is always difficult to save up for first-time homebuyers, especially in times of fast home price appreciation in excess of income growth. Higher standards placed on down payments will therefore hold

back homeownership opportunity,” says Lawrence Yun, chief economist for NAR. “More inventory is needed to assure home prices do not outpace income growth. There will be even fewer listings during the pandemic period, but it is hoped that more listings pop out once the economy reopens,” adds Yun. “Student debt has been a lingering factor in delaying the entry time of first home purchase by younger adults. And this issue will continue in the future. On the positive side, mortgage rates are and will remain at historic lows, and that may bring to the market people with secure employment to take advantage.” TRS The Residential Specialist trsmag.com

iStock.com: ilyakalinin/PeopleImages

14

Staying connected Client

Communications

Sept/Oct 2020

Joy Carter, CRS, broker/associate with Keller Williams

Follow-up Secrets

By Rene Ryan

F

ollowing up with prospects and former clients is one of the most important traits of any successful salesperson. And while the strategies may differ from industry to industry, characteristics like personality, persistence, smarts and sheer determination are key.

For real estate agents, following up is a no-brainer. According to the National Association of REALTORS®, 64% of buyers and sellers use an agent they previously worked with or a referral from a friend or

family member. A statistic like that makes it reasonable to assume that if you fail to follow-up with one prospect, you will miss out on more down the road.

But what’s the best way to follow up and stay top of mind with your clients, especially in the midst of a global pandemic?

Two RRC members, Joy Carter, CRS, broker/associate with Keller Williams, and Michael Lee, CRS, broker/associate with Realty One Group Feature, shared their tips and modifications.

Q

&

iStock.com: utah778/WestLight

Q: How valuable is the follow-up in real estate?

Carter: I’ve been in the business for 35 years and started with 3-by-5 cards in an indexing box, with the days of the month and the year written on them. I would make a call and rotate it to the next suggested day to call.

The longest I ever followed up was seven years. And yes, that person did buy from me. That is why following up is valuable.

Lee: One of the biggest reasons to stay in touch with past clients is the potential for getting referrals to the client’s friends or family. But you don’t want to just ask about The Residential Real Estate Council crs.com

referrals every time you contact a client. That’s such a turnoff.

When a client says “Thank you,” it’s easy to respond with, “You’re very welcome, it was my pleasure. I was wondering if you know anyone else who could use my services.” But the problem is that saying “anyone” doesn’t bring up specific people and faces in your client’s mind.

I suggest adding something like, “How about someone at work or someone who you golf with?” That will help jog their memory.

Michael Lee, CRS, broker/associate with Realty One Group Feature

15

MARKET PULSE

16

Client Communications

Sept/Oct 2020

“

I’ve bought at least 20 cars to date and never had a salesman contact me afterward to check on my purchase. That’s why I’ve never bought a car from the same person twice.”

—Michael Lee, CRS

Staying connected

Q

&

Q: COVID-19 has presented new challenges in terms of staying in touch with clients and potential clients. How have you been reaching out to them during the pandemic?

Lee: COVID-19 has made potential clients much more skittish and uncertain, requiring unique follow-up systems to cut through the noise. I’m hosting Zoom meetings with past and potential clients, virtual showings for potential clients and video recordings. But I’m also trying to be an additional resource for clients. For instance, I let my elderly clients know when senior shopping hours were at local stores, and I offered free toilet paper, paper towels and masks when they were in short supply. I even went grocery shopping for a few of my older clients who were afraid to leave their homes during the pandemic.

Carter: During the COVID-19 lockdown, we are making “care” calls to check on our past

clients and the ones who were considering a sale or purchase. We’re staying in touch even more than we usually do. I called one client who never answers the phone. I worked with her on her home purchase 27 years ago and I call her twice a year. She never picks up. This time, during the pandemic, she answered, and we had a very nice conversation. We even started sharing books on CD. She is elderly and has been in the same home since she purchased it three decades ago. By keeping in touch and being of service, I will likely get a listing opportunity from her.

Q

&

Q: How do you stay organized when following up?

Want to dive deeper into follow-up strategies? Check out the recording of “How to Follow Up with Your Clients” at CRS.com/ catalogsearch.

Carter: We haven’t advertised in years and the majority of our business is from referrals. Because of that, I rely heavily on my CRM for reminders and details of past clients’ transactions or experiences. If you don’t keep in touch, how will they remember you? It’s not like you are their neighbor

Lee: My CRM system helps me keep track of all of my clients and when I last contacted them. While I’m building relationships with my clients, I find out details about their lives, which enables me to reach out to them on their birthdays and anniversaries.

Now, during the COVID-19 pandemic, I’ve increased my level of contact with my clients because many of them are very afraid of what’s going on. I reassure them that I’ve gone through many crises before and we’ll get through this one. I offer to be of help by providing referrals to painters, contractors, landscapers and other tradespeople.

The Residential Specialist trsmag.com

iStock.com: mphillips007/adempercem/cnythzl

who they see all the time. By staying organized, I keep up with memorable moments and know what’s going on with their lives. This relationship building has led some of my client’s children to become clients of mine.

17

Sept/Oct 2020

Q

&

Q: What attributes are critical for a successful follow-up strategy?

Lee: A key to a solid follow-up strategy is that you have to build trust, be authentic and show you’re different. I send potential buyers a pre-buying packet with my bio and a manual explaining the homebuying process. Then I send them a home-viewing checklist so they can rate each house they see. I send along local market statistics, locations of parks and playgrounds, school scores, etc.

Carter: Authentic is the easiest way to be with prospects and clients because it is your truth.

If you live a lie, you always have to remember which lie you told—and that doesn’t instill trust in anyone. TRS

MARKET MOMENT

37

%

A Moving Experience Millions of Americans relocated this year because of the COVID-19 outbreak.

About 1 in 5 U.S. adults (22%) say they either changed their residence due to the pandemic or know someone who did, according to a Pew Research Center survey conducted in June 2020.

The likelihood of knowing another person who moved was partly dependent on one’s education and income—those with more education and higher incomes are more likely to know a pandemic-related mover. And young adults (10%) are the most likely to say someone moved into their household for coronavirus-related reasons.

But survey respondents provided a variety of reasons for relocating: “I am traveling and am now blocked from returning home.”

“Needed more space to work from home.”

“Recalled to active duty for military’s COVID response.” TRS

of those ages 18 to 29 say they moved, someone moved into their home or they know someone who moved because of the outbreak.

Who moved due to COVID-19?

Percent who say they moved permanently or temporarily for reasons related to the coronavirus pandemic.

9%

10 % 8% iStock.com: EtiAmmos/Tatiana_Stulbo

6% 4%

3%

4

3%

2%

2%

1

6

%

7%

%

2%

%

Source: Survey of U.S. adults conducted June 4-10, 2020. Pew Research Center

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As ian

ic an

k

te

+

ac Bl

hi W

Hi sp

AGE

65

64 45 -

-4 5 30

18 -2 9

To ta l

0

MARKET PULSE

18

At This Stage

Sept/Oct 2020

Business solutions for CRSs at all stages of their careers

N For the cover story of the next issue of TRS we will spotlight our members under 40 who are making a difference in the industry and their communities.

To be considered, email kcure@crs. com and share a story about a time you went above and beyond as an agent, the unique ways you serve your community and how you make an impact on the industry.

umerous television shows, like Love it or List It and Million Dollar Listing, glamorize the art of selling real estate. It’s no wonder that it’s been an increasingly attractive field to want to be a part of. Many young real estate agents expect success straight away, but experienced agents know firsthand that selling real estate is more work than most people ever imagine, especially as they get started.

“I think one of the biggest challenges for our younger generation is the fact that many don’t feel like doing the things valuable for success—the in-class courses, the networking and the face-to-face involvement—and it is extremely important and necessary,” says Holli Woodward, CRS. Woodward’s son is a member of the Young Professionals Network (YPN) and a CRS. Joshua Woodward heeded his mom’s advice and has reaped the benefits. “My journey with RRC taught me the importance of

involvement and engaging with members both locally and abroad, and made me passionate about seeking involvement with other organizations,” Joshua says. “Through the knowledge I gained through RRC education courses, Sell-a-bration and other RRC events, I was able to assist with the inception of my state’s YPN and with RRC leadership for Oklahoma. With RRC, not only have I been able to enrich my business, but I’ve also received more insight into groups that I am proud to work with at the local, state and national levels.”

Although there are some successful YPN agents like Joshua, there are many who struggle just to make ends meet or to maintain success once they get a taste of it. The Council breaks down some practical tips and strategies to use when tackling the competitive real estate market to help YPN agents get set up for success and longevity in residential real estate.

The Residential Specialist trsmag.com

iStock.com: LightFieldStudios

Tips to Help Newbies Set Up for Success

Sept/Oct 2020

Continuous education {CRS.com/learn/ young-professionals}

Being successful in real estate relies on a continuing intake of knowledge of trends or developments in the field. Real estate professionals need to constantly learn and grow to stay competitive in this busy marketplace. If you are interested in enhancing your knowledge and skills, the Council has three key courses that would be valuable to young professionals as a start: ff Pre-Listing Tips ff Conducting Your Presentation ff Leads to Listings

Find your niche {CRS.com/learn/ certifications}

The prestigious CRS Designation may be just a little far out of reach at first, but there are other options to help you stand out and develop your professionalism. From a customer’s perspective, distinguished professionalism can be the difference between hiring an agent or moving to the next one.

Certifications are an excellent way to showcase your skills to potential clients and develop your niche market. Consider Residential Listings, Digital Marketing: Social Media, and Negotiations Certifications to better serve clients and stand out from the competition.

Build relationships

iStock.com: ilyaliren/HearttoHeart0225/Opka

{CRS.com/local-rrc}

There are numerous ways to develop a network—join organizations, churches or clubs—but it’s also beneficial connecting with your local REALTOR® community of like-minded agents, or “finding your tribe.”

The industry can be isolating, and finding a supportive network is crucial not only for referrals and business, but also as a resource to learn from and be encouraged by when the going gets tough. TRS The Residential Real Estate Council crs.com

19

PRE-LISTING HOME INSPECTIONS

A home in good condition can command a better price than one in need of extensive repairs or system upgrades. That’s where a pre-listing home inspection comes in. The home inspector can identify issues that the seller may choose to address, from recommended electrical upgrades to making sure the attic is properly insulated.

Making the investment to improve the home’s condition can be well worth it for them—and for you.

The information from the prelisting inspection provides sellers with the opportunity to make repairs, updates or replacements as needed.

By addressing these issues before the home goes on the market, you can list a home with greater knowledge of its condition, and for a better price. Having well-informed sellers and buyers works to everyone’s advantage.

Be sure the home inspection is comprehensive and that the report will be generated immediately upon completion of the inspection.

A digital copy should be emailed as well. If issues indicated in the report are addressed or repaired prior to listing, be sure sellers have documentation available as proof that the work was done.

Copies of any required permits should be available for buyers to view 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. TRS

This article was provided by Pillar To Post Home Inspectors. For more information, go to pillartopost.com.

On another professional note, please be assured that Pillar To Post Home Inspectors is committed to the health and well-being of our clients and homeowners, as well as our inspectors, especially during this time of COVID-19. We remain focused on providing the highest-quality home inspection while adhering to the strict safety and cleanliness guidelines provided by the CDC and local governments. While our processes may have changed, our commitment to ensuring confident homeownership has not.

Sept/Oct 2020

NEW

The

By Andrew Conner

iStock.com: RicardoImagen

20

ď ľ VirBELA is a virtual online meeting space where users can create avatars and interact with colleagues remotely.

The Residential Specialist trsmag.com

NORMAL

Sept/Oct 2020

21

The rapid and unexpected spread of COVID-19 affected a vast number of industries in innumerable ways, and the real estate industry was certainly not immune to these changes.

Since March, REALTORS® have been thrust into a brand-new environment—one where buyers, sellers, agents, attorneys, inspectors and all the other people involved in a transaction now posed a very real existential threat to each other.

While attempting to continue serving clients in an atmosphere of pandemic panic, agents came up with a variety of solutions to the problems presented: drivethrough closings, videoconference

The Residential Real Estate Council crs.com

meetings and consultations, virtual open houses, and new cleaning and sanitation processes, among others. REALTORS® stepped up to get their jobs done safely. And now one of the big questions on many agents’ minds is: How many of these news ways of doing business are here to stay?

Remote control

“If you and I were working for the same company and we had a group of people we wanted to get together, we could get a team room and people could sit around a table, and stand up and give presentations,” says Barry Hoey, CRS, broker associate at eXp Realty in Southwest Florida. You might think he is describing his office, but Hoey is actually talking about eXpWorld, a virtual online meeting space used by Hoey and his colleagues at eXp. EXpWorld is powered by VirBELA, a company that describes its technology as providing an “enterprise-scale 3D world that leverages immersive technology to support … collaboration, events, education or training goals.” In eXpWorld, Hoey, his colleagues and guests can create avatars and move those avatars through a virtual space. Think of it as creating a character in a video game, except instead of building fortresses or killing monsters, you’re meeting in a conference room or giving a presentation in an auditorium. “This is something we already had, but it was only when COVID-19 hit that we realized the importance of it and how it could be utilized in so many ways,” says Hoey. “We actually had a shareholders meeting virtually. We had people from

Around

47

%

of Americans surveyed aren’t always putting on pants, skirts, shorts or other bottoms during their workdays at home.

Source: Cnet

Sept/Oct 2020

Apps like Zoom and transaction management system dotloop have made connecting with clients and completing their paperwork possible during the pandemic.

27 or 28 different countries and support. “I think [the paneveryone went in as avatars, and it demic] has caused a lot of was almost the same as a physical people to have more trust meeting. It was very successful in technology,” she says. and that’s definitely going to continue.”

“But sometimes you have to provide tech While 3D meeting spaces may not be the support. We’ve had to help people set up right fit for every agency, Hoey and eXp email addresses so they can sign documents Realty were not alone in finding new ways electronically. Whatever we have to do to to work due to COVID-19. If you’ve been accommodate, we’re happy to do it.” working remotely, you’re probably familiar with the videoconferencing app Zoom, In real life and you won’t be surprised to hear that While Zink encourages clients to use techREALTORS® are taking advantage of it. nology when they can, it can’t replace every aspect of an agent’s job. Earlier this year, “I personally have a team of four people and we worked in an office space,” says Jody Zink made the difficult decision to continue Zink, CRS, with RE/MAX Preferred Associ- open houses during the lockdown—legally, as real estate was determined an essential ates in Toledo, Ohio. “Things changed very business in her state. quickly when schools closed: Two members “I was concerned about safety and the of my staff were now also teachers in addiperception of people driving by the house tion to all of the other things we do on who saw my name on the sign, but we did a daily basis. So the first week we were it in a way that was very controlled,” she quarantined, I said, ‘Let’s figure this out.’” explains. “We had one group at a time, everyone had to wear masks, and all of the doors were open and light switches were on.

Groups would exit through a different door than the one they used to enter. I was concerned people were going to be upset due to the limitations, but they were very patient.

The experience was good and all of the properties we have shown are under contract—and 90% of them had multiple offers.”

Another way Zink minimized exposure for sellers and buyers was to do home staging consultations virtually. She works with a home stager who usually goes through the entire house with a client, room by room, offering advice on how to best showcase the room. “We’re now doing that virtually and it works well,” says Zink. “And it’s not putting her or my clients at risk.” While Zink doesn’t necessarily see all of the steps she has taken to make open houses safer Zink explains that apps like Zoom and continuing forever, she thinks they will be transaction management system dotloop around for the foreseeable future, and some have made connecting with clients and may become permanent fixtures of open completing their paperwork possible during houses in the future. the pandemic. She feels that the transition For Mike Inman, CRS, with Coldwell out of office spaces and toward remote work Banker McMahan Co. in Lexington, is one that will stay. “I’m still paying rent at Kentucky, holding open houses during the the office and I’m wondering, once this blows pandemic was more difficult. “The list of over, will I need all this space?” says Zink. restrictions is very onerous,” he explains.

Zink also makes an important note for However, he has taken other steps to be agents who are using technology in larger, able to show houses while still keeping his more important ways: Prepare for tech The Residential Specialist trsmag.com

iStock.com: Graffizone/AndreyPopov

22

Sept/Oct 2020

iStock.com: Peacefully7

clients safe. “Even before the pandemic, we were focusing on taking higher-quality pictures and including a video in every listing. For my rural properties, we usually do a drone video, and those have actually done better than the 3D videos. The other thing I do is if someone is leery about seeing a house, I’ll use FaceTime or Zoom to take them through the home.”

Inman intends to continue doing this for all properties going forward. However, the biggest trend he sees is an increase in sight-unseen home purchases. Many agents have seen this activity increase over the past few years, as technology has made it easier to view houses remotely, but Inman says what he is seeing during the pandemic is new.

“I’ve done sales in the past where the buyer doesn’t see the house before closing, but this is a radical difference,” he says.

“I had one buyer [during the pandemic] who submitted three offers and didn’t get them—with one we had offered $10,000 over the asking price and we still didn’t get it. Houses regularly sell within one day on the market. That buyer did end up getting a house, which sold the same day it went on the market, and our offer was $6,000 over the listing price.”

Inman sees this trend only increasing as demand rises and inventory can’t match it. “We thought 2020 was going to be the year of baby boomers selling houses and downsizing, but that’s not happening,” he says. “Empty nesters who have a kid in college are now choosing not to downsize because they now have their children living with them again. I think people who would sell are now seeing the extra space as a positive, and people in general are scared of selling a house in this environment.”

With all of these factors, Inman sees a big demand for new construction, especially in his market, and he hopes that will help meet buyers’ needs. Until then, he expects more quick decision-making and sightunseen homebuyers.

Connecting with clients

As people spend more time in their homes on their devices, reaching them online remains a top priority for REALTORS®, and that won’t be going away. “I think an online presence is more important now than it’s The Residential Real Estate Council crs.com

23

ROI BENEFITS OF USING CRM SYSTEMS

74

%

65%

Improved customer relationships

Increase in sales quota

50% 40%

Improved productivity

Labor cost reduction

Source: Finances online

ever been,” says Rob Levy, CRS, with Keller Williams Realty Professionals in Portland, Oregon. “When you look at the big picture, if people aren’t moving as often and your business depends, at least partially, on repeat clients, you could be losing a lot of business. All of a sudden, you need to find new ways of staying in touch. For all of my clients—both buyers and sellers—I send an e-newsletter as well as automated CMAs twice a month, plus the usual snail mail postcards, magnets, calendars and things like that to keep my face in front of them.”

Similar to Levy, Hoey has found that his company’s CRM is becoming more and more of an important tool. The CRM sends out automated property alerts to buyers based on many variables (such as demographic information, price points, online behavior, etc.). “We find that to be effective, and it’s almost like having another person employed,” says Hoey. He points to a recent buyer who received one of these messages, and within a day Hoey was showing the buyer a property.

The increasing importance of technology has been a common theme in the real estate industry for years, and the COVID-19 pandemic is only accelerating that trend.

As Hoey says, speaking of the real estate industry in general, “We all need to be a little more creative and not afraid of using technology.” TRS

To stay ahead of the curve, agents should learn to adapt for the longterm. Check out “How to Become a MASTER of Virtual Real Estate” at CRS. com/catalogsearch.

24

Sept/Oct 2020

confide

CONFIDE

By Michelle Markelz

Few consumers are fond of the hard sell, but in real estate— perhaps more than in other industries— soft skills are the way to the customer’s heart.

A 2020 survey

by Wakefield Research (commissioned by Century 21) found that 73% of home sellers believe their real estate agent is as valuable as a therapist, and 64% of homebuyers say their agent knows them better than their next-door neighbor. Considering that about 40% of Americans say buying a home is the most stressful event in their life, and one-third of homebuyers report that the process brought them to tears, it makes sense that buyers would seek out trusted advisors to shepherd them through the journey to homeownership.

With great trust comes great expectations. Homebuyers and sellers today are looking for agents who can literally help them realize their dreams—a feat not easily achieved without the diligent work of laying a personal foundation. While it may seem uncomfortable or unconventional to mix business and personal relationships, REALTORS® who can strike a balance between professionalism and empathy find that a periStock.com: BRO Vector/Frank Ramspott/LEOcrafts/PROFA sonal approach resonates with The Residential Specialist trsmag.com

THE SELLER, NOT THE SALE

NTLY

The Residential Real Estate Council crs.com

Sept/Oct 2020

25

Sept/Oct 2020

Sometimes people feel silly or ridiculous for having an emotional attachment to a house. I let them know it’s normal to feel this way and provide some tips for how to deal with that.

—Jenny Smithson, CRS

clients and elevates the client experience Decision-making process from that of an online service.

Mark Handlovitch, CRS, associate broker Jenny Smithson, CRS, managing broker of REMAX Real Estate Solutions in Pittsburgh, Lippard Realty in Enid, Oklahoma, says she counsels clients to factor in their plans for regularly uses her master’s degree in counsel- the future. “There have been many past ing psychology and 17 years of experience as clients who have mentioned to me in a a school counselor to help her clients through conversation that they took my advice and the emotional processes of homebuying and didn’t realize until years later how much selling. Especially for sellers, letting go of a it paid off,” Handlovitch says. He recalls home can be emotionally fraught. one client who wanted to back out of a sale “People always think selling a house is a because he didn’t believe that his ex-spouse, happy experience, but when people have a who was owed child support, would use the divorce or death, it’s good to know how to money for their children. Handlovitch advised make them feel better,” Smithson says. “You him to go through with the sale and show can sense when someone is grieving and his children that he did all he could help put them at ease with what they’re to support them. doing. Sometimes people feel silly or ridicu- “Three years later lous for having an emotional attachment to we spoke, and he a house. I let them know it’s normal to feel thanked me and said this way and provide some tips for how to it was one of the best deal with that.” choices he ever made,” Smithson suggests that sellers take phoHandlovitch says. tographs of a house or keep an item from Homebuying can be the property that gives the seller comfort— just as emotional as such as flowers that a loved one may have selling. As the Wall planted. Just be sure that the seller gets Street Journal reported consent from the buyer before removing in 2016, many factors anything from the property. can cloud buyers’

iStock.com: william87

26

The Residential Specialist trsmag.com

Sept/Oct 2020

27

CREATIVE CONNECTIONS DURING COVID-19

iStock.com: Flavio Leão/JakeOlimb

Face-to-face interaction is a huge factor in building a trusting personal relationship. Speaker and body language coach Carol Kinsey Goman writes in Forbes: “In face-to-face meetings, our brains process the continual cascade of nonverbal cues that we use as the basis for building trust and professional intimacy. … Most interesting, in face-to-face encounters the brain’s ‘mirror neurons’ (the neural mechanism that fires when we perform an act

or see another perform that same action) mimic not just behaviors, but sensations and feelings as well.”

While social distancing to slow the spread of COVID-19 limits the means for building relationships, agents are finding other ways to nurture personal bonds.

“I sewed fabric masks for my buyer and seller clients, so they would have some sort of personal protective equipment available,” says Jen Ward, CRS,

with Cummings & Co. “One of my clients posted on social media that I was her therapist who kept her calm and positive.”

“I took care packages to 17 of my families and incorporated a game with stones to help the kids understand they are not alone,” says Lilly Garcia, CRS, broker and CEO of Lilly Garcia REALTORS®.

“Buyers and sellers want to better understand exactly what the process is, how to best

decision-making. They may become fixated on small details, like the length of the driveway, that they believe will have an outsize influence on their happiness with the home, while overlooking big, immutable details, like location.

Smithson says that when she used to help students through big decisions, such as choosing a college, making a list of pros and cons was a helpful way to bring some objectivity back to the process. Sometimes with clients, she is the voice of reason when a sale is just not a good fit.

“I’ve talked people out of buying a house because I recognized that they weren’t ready to part with [their] house,” Smithson says. “Maybe it’s not always best for my pocketbook, but it’s best for their life.”

Emotional challenges

When it comes to negotiation and hammering out the minutiae of give and take, simply acting as a buffer from the details of the The Residential Real Estate Council crs.com

navigate it and what expectations buyers and sellers should have,” says Mark Handlovitch, CRS, associate broker REMAX Real Estate Solutions.

“I do enjoy taking the time to break down the process, so our clients are able to comfortably move forward and not have any surprises. I use tools such as BombBomb, Facebook Messenger, Instagram and other platforms, depending on the client, to reach out and walk each person through the processes.”

process that can stir up emotion is another way Smithson advocates for her clients.

Elizabeth O’Conor, CRS, with Coldwell Banker Ana Ochoa & Company in Laredo, Texas, shares the sentiment.

“When it gets tough in a market or in a transaction, I feel that’s when I can best serve my purpose,” O’Conor says. “I never thought of myself as a salesman. I help people move forward in their lives. I tell them to put their stress on me because my job is to help lift it.”

Though not everyone has the benefit of formal training, Smithson says that all REALTORS® can support their clients by demonstrating an understanding of the emotional challenges they face, even if it feels uncomfortable. “Some people don’t want to get involved [in clients’ personal challenges]. They want to keep things at a business level,” she says. “But I think even if you’re not getting involved, you can still be sympathetic.” TRS

It’s as important to foster relationships with REALTORS® as it is with customers.

Follow the private CRS group on Facebook to connect and engage with other RRC members at facebook.com/ groups/WeAreCRS.

28

Sept/Oct 2020

Annual population growth within primary cities vs. suburbs within major metropolitan areas, 2010–19.

■ Primary Cities ■ Suburbs 2010-11

1.07% 0.91%

2011-12

0.92%

1.17%

2012-13

1.04% 0.92%

2013-14

1.02% 0.98%

2014-15

1.03% 0.95%

2015-16

0.85% 0.95%

2016-17

0.59%

2017-18

0.38%

2018-19

0.31%

0.86%

0.70

%

0.65%

urban

E

X

O

D

Source: William H. Frey analysis of Annual Census Bureau estimates, July 2010–July 2019.

The Residential Specialist trsmag.com

MOBILE HOMEOWNERS

29

Sept/Oct 2020

By Kathleen Hagan

Designation Maintenance Article

In the early 2010s, many cities across the U.S. experienced growth as the economy began to recover from the Great Recession.

Major corporations moved their suburban offices to downtown areas, and much was written about how millennials, now the largest living adult generation in the country, preferred an urban lifestyle.

As recently as late last year, cities were best known for their vibrant cultures, robust arts-and-entertainment districts, one-of-a-kind restaurants and shops, and walkability. But as the new coronavirus began to spread in early 2020, city life became synonymous with high COVID-19 case counts, cramped quarters and shuttered businesses.

As a result, housing priorities have shifted among buyers and renters alike. Many real estate markets across the country have seen an uptick in city dwellers—across all demographics, but with millennials who have young families in particular—ditching their high-rise apartments, cramped condos and tiny lots for more spacious homes in the suburbs, or even significant amounts of land in more rural areas.

It’s not just more space that is appealing to urbanites old and young. As REALTORS® across the country can attest, there are a number of reasons why people are choosing

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%

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US

Meet your Designation Maintenance requirements today! Read this article and “In the Weeds” on p. 12, take a 10-question quiz and earn 2 credits. Go to CRS.com/trs-quiz to get started.

of Americans said the COVID-19 pandemic makes them want to live in a rural area that is more than 21 miles from a major city.

Source: The Harris Poll COVID-19 Tracker, May 10, 2020.

Sept/Oct 2020

Marketing to What Buyers Want During this time of urban exodus, buyers are looking for: ffMore indoor square footage ffA dedicated home office ffA bonus room ffLarge lots ffOutdoor space (yard, patio, deck, balcony, etc.) ffPrivacy ffPeace and quiet ffEasy access to nature (parks, trails, green space) ffVacation homes Adding these keywords to your marketing or advertising materials can let buyers know that a property has these highly soughtafter amenities, or that you are ready to help them find a new home that can check off these boxes.

to leave life in the big city behind. Suburban and rural living offer myriad benefits that have become more important during this time of continued change.

The affordability factor

Americans who have been laid off or furloughed in recent months may find they can no longer afford their monthly mortgage or rent payment in a city, forcing them to find a less-expensive place to call home. For

GREENER PASTURES

Within the last five years or so, Sherry Anderson, CRS, independent broker/owner in Colorado Springs, Colorado, has noticed a trend—especially among younger buyers—of people wanting to be more self-sufficient. “People are looking for properties where they can raise chickens and grow their own food,” she says.

REALTOR® Magazine reports that Google searches for backyard coops to raise chickens has increased since the beginning of the COVID-19 pandemic. Homeowners want better access to fresh eggs at a time when visiting the grocery store has become riskier.

Kevin Burgess, CRS, broker/owner of Values Driven Realty Inc. in Plainfield, Indiana, is seeing this trend play out in his market as well. “People want to have animals and be more self-reliant,” he says.

“A homeowners’ association can hinder that, so people are moving out of neighborhoods where there are covenants and rules and into more rural areas.”

some, this could mean a move to a nearby suburb, where real estate and property taxes are typically less expensive.

In the country’s largest metro areas like New York, San Francisco, Los Angeles and Chicago, this shift has already been happening. Michele Chiles-Hickman, CRS, with Berkshire Hathaway HomeServices New Jersey Properties in Montclair, New Jersey, first noticed more buyers and renters looking to move out of New York City about five years ago. The reason was straightforward: The cost of living was getting too high.

“After the 2008–2009 financial crisis, as the market started to rebound more, it became less affordable for people to live in the city,” explains Chiles-Hickman, whose firm is located just 13 miles outside of Manhattan. “People began moving to the suburbs due to the lower cost of living, and they also saw other benefits like more space, lower noise levels, more privacy, better parks and green space, and, in some cases, better-rated schools.”

Kevin Burgess, CRS, broker/owner of Values Driven Realty Inc. in Plainfield, Indiana,

Both Anderson and Burgess have helped buyers find homes on “hobby farms,” where food production is intended for recreation and self-sustaining purposes rather than for income. “People have romanticized the idea of living in the country,” Anderson says. “But it really makes sense. You’re able to provide for yourself and you don’t have to be as dependent on the grocery store—which is becoming especially important during our current times.”

However, while the benefits of being able to grow your own food and raise chickens are great, Burgess notes there are some drawbacks to rural life. “Depending on how far out you go, you might not be able to get high-speed internet, reliable cell service or other modern conveniences,” he says. “You also should consider that there are fewer contractors you can hire to help when your HVAC system goes out, for instance.”

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Sept/Oct 2020

making moves

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As more and more people look to move out of downtown areas, CRSs can make calculated moves to capitalize on the urban exodus trend. They also have a unique opportunity to create win-win opportunities by educating themselves on what’s at the core of the desire to move to the country or move to the suburbs. Here are three steps CRSs can take to get a leg up:

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3

Highlight your listings’ best assets.

“It’s always important to know who your buyer is and to be able to see through the buyer’s eyes,” says Sherry Anderson, CRS. “This must translate into the photos, verbiage and marketing.”

Show that you’re still Anderson always uses a professional in business—and being safe and smart about it. home stager and photographer for her listings, and she makes sure she’s onsite “I have been purposeful when photographs are taken. “It’s my during COVID-19 to add Network with other real estate job, as the listing agent and expert in several Instagram and agents. Some city dwellers may conthis particular niche, to tell the photogLinkedIn posts showing tact the REALTOR® who helped them rapher what is important to show we are open and how find their downtown condo and ask if in photos as selling points,” she says. we are doing business,” they know anyone who can help them In particular, Anderson makes sure Chiles-Hickman says. find their dream home in the suburbs. her listing photos show off: “People need to know Building and having strong relationships we are working because f fThe yard with urban REALTORS® can help subur- they want to move now!” f fThe house from a distance (to show ban CRSs get referrals and leads when the space around it) Buyers and sellers alike urbanites decide to move out. Likewise, want to know that you’re f fTrees urban REALTORS® can benefit from f fAny outbuildings, including chicken taking precautions. a referral when there are not as many houses, inside and out Being transparent—and buyers moving in. f f Outdoor play areas for children vocal—about the steps “I was invited, and joined as a guest, f f Outdoor entertaining spaces you’re taking to ensure a Business Network International group the safety and well-being f f Fruit trees and gardens, including for the city [Manhattan],” says Michele of all involved can any photos from the owner that Chiles-Hickman, CRS. “It’s a chance show the fruits and veggies help people feel more to get in front of agents from that area comfortable working ff Nearby parks, ponds, lakes, hiking who can send leads.” areas and open spaces with you.

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“

I have been seeing urbanites seeking to move to housing that affords outdoor spaces.”

—Amy Schultz, CRS

Sept/Oct 2020

THE NON-FACTOR

“

The amount of time people have been spending at home [due to COVID-19] is making them reevaluate the kind of space they want, and they can’t get that kind of space in the city.”

—Michele ChilesHickman, CRS

When buying a home, assessing the commute to work traditionally has been an important factor for many buyers. And for good reason: Studies show that people who have commute times of less than 30 minutes have higher levels of happiness. But as telecommuting has become more normalized during the COVID-19 pandemic, some buyers are no longer making their commute a priority.

Michele Chiles-Hickman, CRS, with Berkshire Hathaway HomeServices New Jersey Properties in Montclair, New Jersey, says clients used to ask about a home’s proximity

notes that in his market just outside of Indianapolis, most people typically have stayed closer to town because of easy access to city amenities. But that is changing. “There are homes in rural areas that qualify for a USDA-backed loan that allow a buyer to purchase a home with some acreage for very little money—but the agent must also make sure the buyer qualifies for the USDA loan type,” he says.

Spaced out

As Burgess notes, proximity to the action is a big draw of urban life. Many amenities— grocery stores, retail stores, restaurants, bars, fitness centers, public transit—are located right outside the door or within walking distance. “Being close to certain amenities is still important, but it’s not as much of a priority at the moment for my clients,” says Chiles-Hickman. “The amount of time people have been spending at home [due to COVID-19] is making them reevaluate the kind of space they want, and they can’t get that kind of space in the city.”

Widespread telecommuting and remote learning have increased homeowners’ desire for more square footage and a dedicated office space in their home. “I have a client who is upgrading within his current [suburban] community and moving into a bigger rental,” says Peter Cagnassola, CRS, broker/ owner of Bedminster Hills Realty Inc. in Pluckemin, New Jersey, about 35 miles west

to the train that would take them into New York City. Now, “not everyone is coming to town saying, ‘I need to see where the train is,’” she says.

“I’ve also seen more properties being sold in towns that aren’t your typical commuter towns.”

Kevin Burgess, CRS, broker/owner of Values Driven Realty Inc. in Plainfield, Indiana, also notes that he has had buyers who simply are willing to sacrifice their commute time for the freedom that living in the country allows. “But if people are going to be working from home now,” he adds, “that’s not as much of a problem.”

of Manhattan. “He doesn’t expect to go back to work at his office in Manhattan anytime soon, so he wants to have room to set up a home office. He also needs more space for his college-aged daughter to come back and live with him for a while.”

Cagnassola also speculates that people might be looking for different floor plans.

The open concept, which has been popular in recent years, is not very practical when multiple family members have video calls scheduled at the same time. A closed floor plan can offer separate rooms for each family member to escape to find peace and quiet.

As health care professionals stress that the risk of contracting COVID-19 is significantly lower when outdoors, having a private yard, outdoor patio or deck to host gatherings where attendees can practice social distancing is becoming a bigger priority among buyers as well. “I have been seeing urbanites seeking to move to housing that affords outdoor spaces,” says Amy Schultz, CRS, with Ebby’s Little White House in Dallas, Texas.

For young families, having a backyard and space for kids to run around and play is paramount when parks are closed or access to them is limited. For pet owners, having a fenced-in yard is also important. “If you have a nice-sized lot and install good-quality perimeter dog fencing, the property becomes more sellable because of all the buyers these days who want their dogs to have room to run,” says Sherry Anderson, CRS, independent The Residential Specialist trsmag.com

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Sept/Oct 2020 broker/owner in Colorado Springs, Colorado.

“I think the trend is not only for people looking to live more healthy and sustainable lives themselves; they want the same for their pets.”

Anderson adds that in addition to more space, her clients also appreciate that suburban and rural properties are much quieter and more peaceful. “They really enjoy being away from all of the hustle and bustle of the city,” she says.

Accelerated timelines and shifting priorities

While many buyers and renters have been looking to escape city life for at least a few years, Chiles-Hickman has noticed that COVID-19 is speeding up the timeline in her market. “Families that were considering a move in the fall pushed up their timeline

to the summer. People who were on the fence about moving are getting off the fence.

The [population] density of New York City makes it very hard to live there during the COVID-19 pandemic,” she says.

And based on the phone calls she’s been having with potential clients, Chiles-Hickman expects this urban exodus trend to continue and pick up even more.

“Moving is a big decision to make,” she says.

“Even if you’re scared [about getting sick from the coronavirus], you can’t just decide to move in two weeks’ time—there is a lag with all real estate.”

“I think it’s going to be a new world when this is all said and done,” adds Cagnassola.

“COVID-19 is going to have a huge impact on how people satisfy their housing needs moving forward.” TRS

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Building Partnerships

As buyers move away from the city, Kevin Burgess, CRS, broker/owner of Values Driven Realty Inc. in Plainfield, Indiana, is seeing more of a demand for new construction in the suburbs. In his market just outside of Indianapolis, existing home inventory is tight, land value is rising

and builders can’t keep up with the demand for new homes.

In light of this trend, Burgess and his agents are seizing the opportunity to help buyers work with builders to purchase properties in brand-new neighborhoods. “I think there’s an opportunity

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right now for REALTORS® to work with builders and buyers,” he says.

“Most sales reps for the builder appreciate a professional real estate agent because it makes their job a little easier.”

For buyers, it’s about making them aware of the value of using a REALTOR®

to help navigate the process of purchasing new construction. “I don’t think enough buyers understand we can help them, and that it doesn’t cost them any extra to work with a real estate broker because it’s already built into the marketing cost for the builder,” Burgess explains.

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 A vacant lot in a new subdivision near Indianapolis, Indiana, is ripe for new construction.

To learn more about current real estate market trends, visit realtor.com/ research.

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Sept/Oct 2020

Market Values

Insights from industry data

THE BAD AND GOOD ABOUT SHELTERING

During Corona Difficulties Sheltering at Home

“I need a new kitchen!”

In April, realtor.com asked 1,300 consumers about the primary difficulties they encountered while sheltering at home during the pandemic.

2%

■ Work-life boundaries (working early/ late, never disconnecting)

12

■ Lack of comfortable/dedicated work space

5% 4%

%

8%

■ Being out of work/furloughed ■ Entertaining and/or ■ Too much family or roommate time/ lack of privacy

3

■ Separation from extended family and friends

5% 6%

Female

9%

homeschooling kids

%

17%

16%

3%

■ My neighborhood is noisier

3%

than I realized

3%

■ Feeling trapped/unable to leave ■ Cooking in an inadequate kitchen ■ Sharing a bathroom or living space

6%

13%

with extended family or visitors

A larger percentage of women than men would update the kitchen.

15.3% (women) vs 10.5% (men)

8%

6% 8%

5%

■ Lack of fresh air/outdoor time ■ Constant reminder of homeimprovement or around-the-house projects

■ Finding ways to relax/de-stress ■ Other

Male

9% 4%

4%

16%

4%

6% 12% 3%

The Bad Men found work-life boundaries, a lack of dedicated work space, and sharing living space with extended family or visitors more challenging.

Women found the reminder of existing home-improvement projects more difficult.

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Sept/Oct 2020

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% of consumers are

virus

cleaning closets and garages, gardening and painting walls.

“I need more space!”

Best Aspect of Sheltering at Home ■ Female ■ Male 19%

12%

18%

Extra down time/catching up on TV shows

15%

14%

Don’t have to shower/get dressed up every day

15%

17%

Time to take up a hobby/learn something new

14%

More time with family

12%

6% 9% More free time due to reduced work schedule

10%

8% 6% Keeping up with friends/family virtually

No commute

8% 9%

4%

Taking more time to go out on walks/runs

4%

Exercising at home

The Good

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Down time ranked at the top for both men and women.

For women, not having a commute and not having to get dressed for work outranked the same benefits compared to men. Keeping up with friends and family virtually was also ranked higher by women compared to men.

For men, a larger share valued having time for a new hobby or pursuit, as well as extra time with family.

Source: Realtor.com

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A larger share of men than women wanted more space.

21.5% (men) vs 16.7% (women)

To read more about the survey results, go to realtor.com and search for “Top Consumer Home Features During Coronavirus.”

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Council Classroom

Sept/Oct 2020

KNOWLEDGE

Strategies from the industry’s top educators

All Systems Are Go

By Debbie Yost, CRS

S Debbie Yost, CRS, is broker/co-owner of Yost Realty Group at RE/MAX Casa Grande in Arizona, as well as a certified life and business coach. One of the RRC courses she teaches, “Systems Will Set Your Free,” is highly regarded and a perennial offering from the Council.

uccess comes to those who get in front of the inevitable.” This is one of the quotes that I live by. I am celebrating my 40th year in real estate and 25 years co-owning my own company. In my mind, that demonstrates our company’s ability to anticipate shifting markets and trends, and remain relevant and trusted advisers for our clients, staff and community.

How can we prepare ourselves to be “in front of the inevitable”? No one could have anticipated the specific COVID-19 situation and the disruption it has brought to the entire globe, let alone our industry. Yet every business must be prepared for disruption and have the ability to shift strategies and operations. While the way we do some specific physical things may have shifted as a result of COVID-19, our service and level of communication with our clients has

not—and thankfully our business continues to maintain pre-pandemic levels.

On the scale of life stressors, buying or selling a home ranks as more stressful than divorce, but less stressful than the death of a spouse or child. As REALTORS®, we want to make clients feel that their buying or selling experience is as stress-free as possible. It’s critical that you set realistic expectations and ensure clear, timely and proactive communication with your team and your clients.

Creating leverage

To provide exceptional client service while maintaining a satisfying personal life, we want to scale our business by

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Sept/Oct 2020

creating leverage. We create leverage with three things: people, systems and technology. Systems and technology can be easily and effectively managed, as long as they are updated regularly. Hire the right people, put them in roles that play to their strengths and let them run your systems with technology. Many agents forget how important effective communication is for everyone involved. As many of us have shifted to working virtually, communication is now more important than ever.

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The secret sauce

All members of the team need to understand their roles, and the roles support the systems you put in place. As an example, when we take a listing, whether we drop off a physical file, email a scanned file or send an electronically signed file to the listing manager, we know exactly what’s going to happen next. According to the options we’ve discussed with the seller, we know when the sign, lockbox and photographer will be scheduled because we have a system for handling these routine tasks. The difference in our service (our team’s secret sauce) comes as a result of how we treat each individual client. With these systems in place, we can truly listen to the client’s needs, understand their motivation and then provide options for them to consider. When all the typical tasks in each transaction are handled efficiently, we have more time to truly understand the client’s specific desires and support them without wear and tear on ourselves or our team members. When we provide information proactively, the client can relax and trust the process. While we’ve handled thousands of transactions, this is the client’s only transaction at this moment.

Prepare your client

We want our communication with the client to be proactive and positive.

We take the approach that if the client calls us with a question, we’ve failed because we should have provided information on the next step in the process before The Residential Real Estate Council crs.com

they even realized they had the question.

And I believe that’s what the industry is about today. It’s not about selling: it’s about listening to the client’s needs, analyzing data and providing options to solve their problems or meet their desires. Our job is to be proactive problem-solvers.

I like to use this analogy: If we’re on a plane and the pilot tells us to expect some turbulence and keep our seatbelts on, we are prepared. If we didn’t have any warning, we’d be alarmed with the bumps and the jolts because we didn’t expect them.

So, a big part of our job is providing that communication for clients: “Here’s what’s going to happen next.”

Team work

How do we use systems to make sure that the client feels cared for? One important way is to make sure everyone on the team knows all the important details about the client in a listing datasheet or on a contract summary document. Why are they moving? Will there be a trailing spouse? Who watches the house when the seller is not there? Is there a pool, and if so, who services it? Did we make any special promises outside of our typical service? We put all of that information into our systems so the seller doesn’t have to repeat it to every team member, and so we don’t drop any balls. Skipping this step might leave clients with the impression that the team is disorganized.

When you have a strong team, great systems, utilize great technology and represent calm clients, you are free to concentrate on your negotiating skills to support the best long-term interests of your client. TRS

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On the scale of life stressors, buying or selling a home ranks as more stressful than divorce, but less stressful than the death of a spouse or child.

Yost teaches a System Series to help agents build efficient and effective systems—search for her series on the education catalog at CRS.com/ catalogsearch.

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Innovations

Sept/Oct 2020

KNOWLEDGE

Tech solutions for real estate

Getting in Focus

By Marki Lemons Ryhal, CRS

Marki Lemons Ryhal, CRS, is a licensed managing broker, avid volunteer and author of The Modern Real Estate Professional’s Guide to Success. Lemons Ryhal holds a B.S. in management from Chicago State University, an MBA from Saint Xavier University, and over 50 real estate-related licenses, certifications and designations.

I

n the age of social media, we’re bombarded with changes in trends and technological advancements. Video content is nonnegotiable.

While a professional video is popular (and advisable, when possible), remember that at their core, your videos must serve the needs of your audience. Create content daily for the people you want to attract.

Video content doesn’t have to be a lesser version of a faceto-face conversation. Having mobile phones means people have the chance to connect via the instrument that’s frequently in the palm of their hands. We have to get comfortable with creating and delivering video content to achieve this connection, and we have to force ourselves to do this until it becomes a habit.

If we take the camera-first approach, interacting with people in real time and allowing them to get to know us and our expertise, we can ultimately convert people from consumers to clients and turn social activities into business outcomes.

Videos are still the most engaging form of content on the internet and will continue to be for the foreseeable future. When you don’t have all the answers on a topic, make a video about it and interview experts in your community. And stop worrying about how you look in your videos. Instead, ensure your content serves the needs of your audience.

HOW TO PLAN AND PROMOTE YOUR LIVESTREAM

Facebook Live allows REALTORS® to broadcast to the most massive audience in the world using the camera that’s right in their pocket; it connects REALTORS® with the consumers, customers and clients who are interested in buying and selling real estate. There are four different places on Facebook where you can use Facebook Live: ff Personal Profile ff Business Page ff Facebook Group ff Facebook Event

Post a one-day notice before going live and promote your livestream video. Allowing people to plan and schedule your video into their day will help you grow your audience. Your followers can receive advanced notifications about when you will go live, so they can tune into your broadcasts and engage with you in real time.

Create a photo with Canva to announce your Facebook Live broadcast. Then resize the photo so it is compatible with the platform where you plan to share the photo. f fTell people the date, time and subject of your video, and provide a link to the page where they can find your broadcast. f f Email this same information to your database. f f Promote your broadcast on Twitter using the photo you created with Canva. f f Pin the photo you created in Canva to Pinterest.

2

Ensure you have a robust and reliable Wi-Fi connection. Facebook won’t let you go live until it can determine that you have a reliable internet connection. A reliable Wi-Fi connection is essential for

ensuring a continuous and uninterrupted video experience—for both you and your audience.

3

Charge your batteries! Streaming video will drain your device’s battery. Charge your device and your additional batteries if you plan to use Facebook Live while on the go. Place your phone in airplane mode (Wi-Fi enabled) to eliminate any possible interruptions such as notices, updates and phone calls.

4

Check the lighting. Good lighting is essential for a good livestream experience and will help show off your properties’ best qualities.

5 Stabilize your device. Use a tripod or selfie stick to stabilize the camera. Keep the device as level as possible so your audience will have a comfortable viewing experience.

6

Engage your audience. You are creating livestream videos to benefit your audience, so why not use them to help you! Ask your audience questions and encourage them to participate. TRS The Residential Specialist trsmag.com

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Legal and financial focus

Wide Angle

Sept/Oct 2020

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The Disparate Impact Standard of the Fair Housing Act

By Joseph F. Nery

T

he Fair Housing Act of 1968 (the “Act”) generally prohibits discrimination in the “sale, rental, or financing of dwellings and in other housing-related activities on the basis of race, color, religion, sex, disability, familial status, or national origin.” In 2020, many people feel the open and intentionally discriminatory practices of decades past no longer exist. Yet policies and procedures that render discriminatory results, even without discriminatory intent, remain in various areas of housing, such as a city preventing affordable housing in certain geographic sectors. To address such situations, the U.S. Department of Housing and Urban Development adopted the legal doctrine known as the Disparate Impact Standard in 2013, which states that a policy may be considered discriminatory if it has a disproportionate “adverse impact” against any of the aforementioned classes.

The failures of HB 4050

In September 2006, Illinois enacted the Residential Real Property Disclosure Act Predatory Lending Database Pilot Program (hereafter referred to as “HB 4050”). The stated goal of this law was to curtail the elevated rates of predatory lending and foreclosures in 10 specific Chicago ZIP codes.

Generally speaking, consumers looking to purchase residential homes in the particular ZIP codes had to undergo certified credit counseling if their credit scores fell below 620. The cost of the credit counseling was $300 and was to be incurred by the lender/ mortgage broker. HB 4050 applied only to loans issued by Illinois-chartered originators or mortgage brokers.

Although HB 4050 was created to address the foreclosure problem, it was a law without teeth and created more issues than it resolved. First, the law resulted in a more burdensome and expensive process for homebuyers and sellers in the selected ZIP The Residential Real Estate Council crs.com

codes. Second, it failed to identify and punish the predatory lenders preying on consumers in the target areas. Third, lenders feared that if they didn’t follow the law’s precise requirements, their mortgages and notes would be unenforceable in default cases.

After studying the demographics of the 10 ZIP codes, I realized they were overwhelmingly African American and Latino neighborhoods. So I sued the state of Illinois because the negative effects of the law were disproportionately affecting racial groups in violation of the disparate impact doctrine. I never had my day in court—the law clearly had an adverse impact in the selected ZIP codes and was suspended by former Governor Rod Blagojevich in January 2007. HB 4050 made me aware of how valuable a disparate impact argument is in a seemingly nondiscriminatory scenario.

The disparate impact argument

Unfortunately, this invaluable tool is under attack as the Consumer Financial Protection Bureau seeks to amend the doctrine by creating a higher burden for plaintiffs filing suits alleging disparate impact. The proposed rule changes would require, among other things, that a challenged policy or practice be arbitrary, artificial and unnecessary— an incredibly difficult burden to prove.

If approved, the revisions would make the disparate impact standard inapplicable in most cases, which would be a travesty when housing-related discrimination is not always blatant and is oftentimes obscured.

This valuable tool must be preserved in its current form to ensure fair housing continues well into the future. TRS

Joseph F. Nery Attorney/Member Nery & Richardson LLC

 Members and supporters of the NAACP picket outside of the Open Occupancy Hearing at Cobo Hall in Detroit in 1963.

Walter P. Reuther Library, Archives of Labor and Urban Affairs, Wayne State University

For information on how agents can offer equal professional service to all in their search for real estate, check out nar.realtor/ fair-housing.

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Coaches Corner

Sept/Oct 2020

KNOWLEDGE

Leverage your skills

5 Steps to Achieve Mastery

W

e all want to fulfill our potential, grow into our strengths and perform at our peak—in other words, we want to be masters! However, mastery is a process that won’t happen overnight. To become a master, you must be willing to set a course, stay on that path and make a lifelong commitment to honing your skills, regardless of the challenges you will undoubtedly encounter. Follow these steps to journey toward mastery in your real estate business.

1

Seek an instructor If you want to master a skill, it’s vital to find a good mentor or coach who can offer you expert advice and guidance. The best real estate coaches will help agents become more focused as they make meaningful progress in their lives. Your real estate coach should hold your feet to the fire, but also cheer you on and celebrate your achievements.

2

Practice constantly Practice makes perfect! It’s not glamorous, and sometimes it will seem like there are no visible signs of improvement. But if you commit to this spirit of always learning and practicing, you will continually clear the obstacles on your pathway to mastery.

Consider a real estate training program to continually build your business skills.

3

If you’re dedicated to learning, growing and achieving mastery, consider jumping into real estate coaching with Buffini & Company. Our real estate coaches are trained to guide you toward mastery—see how Buffini & Company One2One Coaching can change your game with a free business consultation.

Visit buffiniand company.com for more information.

4

5

Surrender Often we are so afraid of looking like fools, we resist surrendering to the process.

But to become a master, you must surrender yourself to your teachers and to the demands of your discipline. Remember, there are no experts, only learners. Have a beginner’s mindset, set aside your ego, give your whole self to the process and learn to relish the journey.

Be intentional What does mastery look like to you? Be intentional about conjuring thoughts, images and feelings associated with success. Visualize your goals, master your vision and have a clear picture of what you want to achieve. Filter out negativity and focus on motivational media that gets you closer to your goals, while also associating with people who lift you up.

Commit to self-improvement Becoming a master is a journey—you must be open to growth along the way. Don’t be afraid to fail, because your shortcomings can become your assets. Lean into your real estate coach as you push yourself to the next level. It’s easy to resist change; but to achieve mastery, you must commit to the journey, develop a support system and establish a strong mental and physical fitness routine to give you energy. TRS The Residential Specialist trsmag.com

iStock.com: Enis Aksoy

Follow these steps, and each day you’ll get closer to mastering real estate.

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DESIGNATION

42

NATION

Your Own Council

Sept/Oct 2020

News and updates

Need a New Way to Stand Out?

GET CERTIFIED!

Learn more about RRC’s two new certifications, Luxury Homes and Negotiations, at crs.com/ learn/certifications.

The Residential Specialist trsmag.com

iStock.com: Olivier Le Moal

T

he Council has launched two new certifications: Luxury Homes and Negotiations. They are being added to our Certifications page at crs.com/learn/certifications. These certifications combine existing courses with some new-for-2020 content and allow agents to focus on honing specific skills. The Negotiations certification can be obtained in multiple ways, including through eLearnings, recordings and face-to-face courses. It will also incorporate an upcoming class that Dale Carlton is developing for Sell-a-bration 2021.

The Luxury Homes certification comprises several recordings and the Succeeding in the Luxury Home Market face-to-face course. It will include an exciting opportunity for those who achieve it to receive one-on-one sessions with Jack Cotton to discuss their specific luxury market. TRS

43

Sept/Oct 2020

RRC Solo(k) Retirement Solution

iStock.com: MStudioImages/flyzone

Education on the Go “RRC Now” is a new premium podcast from RRC. Each month we will be providing valuable real estate information from presenters located around the world, focusing on topics such as technology, business development, marketing, taxes and more. Subscribing to the premium podcast will expand your library of content, adding several additional episodes a month to your podcast feed.

Visit rrcnow.libsyn.com to subscribe today! TRS The Residential Real Estate Council crs.com

The TAG & Transamerica Retirement Plan Exchange® Solo(k) Solution is a retirement plan solution for business owners and their spouses who are receiving compensation from the business.

The Solo(k) Solution allows you to maximize your annual pre-tax and after-tax retirement contributions while reducing your administrative burden, transferring certain risks and potentially reducing costs. We understand that sponsoring and maintaining a retirement plan, particularly for small businesses, can be challenging. This program brings together a team of professionals on your behalf so you can focus on running your business—not your retirement plan. For more information, visit CRS.com/membership/ benefits/solok. TRS

75

%

of workers at small companies expect to rely on retirement accounts— 401(k)s, 403(b)s, IRAs—as a source of income in retirement.

They say their top financial priority is saving for retirement.

Source: Nonprofit Transamerica Center For Retirement Studies®

DESIGNATION

NATION

44

Sept/Oct 2020

Ask a CRS

Q

&

What is the one thing you do within your business that brings you the most leads?

Advice from your peers

My team offers quarterly clientappreciation events. So many awesome and fun options!

Referrals and social media are my cash cow.

I wear m y H elp s t o n a me t a g e v er y star t th e c o n v e w h e r e!

Sean M r s a t ion.

R E / M A X . D o u g h e r t y, CRS, A llia nc e , F or t C o

llin s , C o

lora do

Deborah Walker Severson, CRS, Realty Executives Cooper Spransy, Columbus, Wisconsin

Amy Schultz, CRS, Ebby Halliday Realtors, Dallas, Texas

I have a second business: an online marketing agency. I have been buying Facebook leads, and I’m winning!

I take care of the clients who give me the most business by giving them gift cards ($75 to $150) every time they refer someone, and they keep referring.

A monthly newsletter that I write with real estate news, stats and fun stuff, which I email to all my clients. I know some read it because they send me questions.

Rise’ Johns, CRS, Keller Williams Realty—Lake Travis, Lago Vista, Texas

Maria Walker, CRS, Windermere Manito LLC, Spokane, Washington

Have a great story to share? Email social@crs.com or look for discussions happening online on our Facebook, Instagram, LinkedIn and Twitter pages.

Pay Zillow— the ROI is astounding.

Brad Pratt, CRS, RE/MAX on the Charles, Waltham, Massachusetts

My CRS network of friends!

Also, my calendars keep me in front of past clients who tell me they see me every day on their desk.

Janis Smith, CRS, Coldwell Banker Residential, Plano, Texas The Residential Specialist trsmag.com

iStock.com: Tetiana Garkusha/Magnilion/saovadee/adenmas/oleksii arseniuk/designer29/khonkangrua

Thuy Tran, CRS, Ferrari-Lund Real Estate, Reno, Nevada

RRC Connect

Sept/Oct 2020

Expand your network

45

CONNECTION PERFECTION

PENSACOLA

Alexis Bolin, CRS

Lots of Facilitating

GAINESVILLE

Craig Wilburn, CRS

iStock.com: miniature

F

or many years, I have been driving to Jacksonville, Florida, from Pensacola, Florida, to volunteer at the REBarCamp.

About six years ago, Kim Knapp, CRS, asked me to be a facilitator for the event. I met Craig Wilburn, CRS, there, as he was also asked by Kim to facilitate. We kept in touch over the years and would always connect at Sell-a-bration and other industry events.

Craig recently called me with a client who wanted to buy a waterfront home in Pensacola and asked if I could help. He said the buyer would be in Pensacola in two days, so I immediately started researching what was on the market. We looked at three homes, but they didn’t fit all the criteria the buyer wanted. So I suggested we look at lots instead.

I looked at websites like Trulia and found a waterfront FSBO lot in the neighborhood the buyer wanted. After negotiating a professional fee with the owner and looking at the lot, the buyers decided to purchase it. The deal was relatively quick—all things considered with inspections on waterfront properties. I decided to search outside the MLS for lots, went above and beyond, and it was a winwin for all parties. TRS Alexis Bolin, CRS, Pensacola, Florida

SOUTH

SOUTH

Bradenton~Sarasota Florida Just Another day in paradise! Who do you know?

SOUTH

Serving Greater Miami Coconut Grove, Coral Gables, Pinecrest, South Miami, Palmetto Bay

★ ★ “Trust, Values, Commitment to Excellence, Friendships & Living Life Abundantly”

I’m available via email, text, telephone and in person.

Geri Kenyon

CIPS, CRS, GRI, PMN, RSPS, SFR

941-725-4374

❤ I Love Referrals

Geri@GeriKenyon.com

The Residential Real Estate Council crs.com

Adam Levy Broker-Associate The Levy Group - BHHS EWM Realty

MiamiHomesAndLand.com | 305.389.3959

DESIGNATION

46

Sept/Oct 2020

RRC Connect

NATION

Expand your network

World-Class Education The Residential Real Estate Council offers life cycle, agent-to-agent learning, spanning the career of the residential real estate agent. The Council’s education is recognized as the best in the industry and includes live classroom courses, self-paced eLearning, live and on-demand webinars, videos and articles.

WEST

WEST

Selling Lake Tahoe Since 1989

Check out all of the RRC learning opportunities at crs.com/learn.

WEST BEN & CAROLE HEINRICH

Over $1 Billion in Closed Sales

Local real estate experts in Carmel, Carmel Valley, Pebble Beach, Big Sur, Monterey & Pacific Grove for over 30 years.

Refer to me for RESULTS!

Craig Zager • The Zager Group Carole, CRS, CFP® Ben, CRS & CRB RSPS & SRES CRS NorCal chapter past president

www.TheHeinrichTeam.com 831.626.2434

www.CraigZager.com DRE# 01005829

Team@TheHeinrichTeam.com

Ben BRE License #: 00584641

Carole BRE License #: 01069022

The Residential Specialist trsmag.com

Sept/Oct 2020

WEST

WEST

YOUR GREATER LOS ANGELES REFERRAL SPECIALIST

47

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

650•504•0219

MID-ATLANTIC

Specializing in helping You reach Your Real Estate goals since 1991!

MID-ATLANTIC

PACIFIC

MAUI Real Estate

www.JoanneFoxxe.com

808-385-2918 jofoxxe@gmail.com

Joanne Foxxe CRS, GRI, SRES e-pro Maui CRS director

PACIFIC

MIDWEST

MIDWEST Your Columbus Ohio Real Estate Connection

HAWAII ★ ...sharing Aloha through excellence and experience...

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 Celebrating 27 years yearsassisting assistingclients! clients!

Celebrating 25

The Residential Real Estate Council crs.com

ALISON BUCKLEY 312- 6 1 3 - 0 4 1 5

AlisonBChicago.com Lakefront Chicago de & North Si

Creating “Clients For Life” Since 2001 Buyer, Seller & Luxury Rental Expertise

I will personally handle your referrals!

34+ Years of Experience

Rick Wright 614-327-8081 RickWright@REMAX.net

DESIGNATION

48

Sept/Oct 2020

Balancing Act

NATION

Practical strategies for restoring balance

Dress for Success

Y

ou may not realize it, but opening your closet or dresser when you wake up can greatly influence your mind. What you wear not only leaves an impression on those you interact with, but also how you personally think and feel throughout the day. In a 2012 study published in the Journal of Experimental Social Psychology, Adam Galinski and Hajo Adam coined the term “enclothed cognition”—or the psychological impact of someone’s choice of clothes. The authors of the study found that specific articles of clothing (and the connotations or perceptions associated with those outfits) can evoke certain feelings or actions, in turn causing the wearer to behave in different ways, depending on their wardrobe choices.

Let’s explore a few ways in which choice of attire may influence your everyday activities and interactions as a REALTOR®.

Be vibrant Catching the eye of a client is paramount as a REALTOR®, so finding a way to stand out from the pack and be memorable is a great strategy for agents

Business-casual kindness At the other end of the spectrum, comfort is key when socializing is necessary. According to a study published in Public Personnel Management on clothes and workplace habits, respondents relayed that they felt the least friendly and creative while dressed in formalwear. Some REALTORS® may not feel like they can be themselves when dressed more formally, and that’s just fine. Making sure you feel comfortable and personable is extremely important when agents are vying for the trust of clients. Business casual is a great middle ground for agents to take with a dress code, as you still look professional, yet don’t come off as stiff or stuffy.

Confidence under wraps Of course, what you wear on the outside may be skewed toward how others perceive you. But what about the articles of clothing that people don’t get to see? Yes, even the undergarments you choose can have a positive impact on your mood and performance. Maybe you’re feeling playful and choose a pair of superhero-themed socks from your drawer. Perhaps you choose underwear that makes you feel strong and confident. The way you feel on the inside will come out as you address your clients’ homebuying or selling needs. Astute clients will sense your confidence level, and that extra pep in your step may make or break your ability to close a potential sale.

when courting buyers or sellers. But remember, subtlety is necessary.

Don’t wear an outlandish outfit just for the sake of bringing attention to yourself. But do consider adding a bit of flair to your wardrobe.

chooses to wear can also be professionally beneficial. Research published in the Annual Review of Psychology showed that bright, vibrant colors are often subconsciously associated with happiness

Maybe a tie or pocket square with an interesting pattern, or a unique brooch or necklace.

Something that isn’t distracting can spark a conversation and keep a client interested.

The colors an agent

and cheerfulness, while darker, moodier shades represent sadness or dreariness. Try wearing an outfit that has a bright color palette to make clients feel warm and happy to be working with you. TRS

The Residential Specialist trsmag.com

iStock.com: shorenated/Hein Nouwens

When it suits Everyone feels more powerful in business or formalwear, and people tend to show more respect to someone who is dressed up. That’s why agents should dress to impress when meeting important clients or when big money is on the line. Not only do business clothes increase confidence levels, but according to a study in the Journal of Experimental Psychology: General, these outfits also stimulate hormone production in the wearer to better display dominance, a skill that REALTORS ® may find helpful. The result is an enhanced ability to think outside the box and improve negotiating skills.

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