The Residential Specialist, November/December 2022

18 Facing Disasters, CRSs Step Up: Highlighting CRSs who’ve gone above and beyond to assist their communities hit by devastating disasters.

By Amelia P. Garza

FEATURES

22 2023 Market

Predictions:

As the real estate market shifts, expert agents share what the industry will look like heading into 2023.

By Caroline Heller

26 Double Duty: Dual agency, or representing both the buyer and seller in a transaction, can result in both efficiencies and challenges for agents.

By Regina Ludes

30 Now You See Them:

Dealing with clients who own pets can present unique chal lenges for real estate agents and their marketing efforts.

By Shaila Wunderlich

Woodward, CRS

Channel:

resources available from RRC.

Market Pulse

Perspective: Melissa Lundgren, CRS, Better Homes & Gardens–Leaskou Partners, Palm Springs, California

Full House: Advice on how to market and sell to clients who plan on living in a multigenerational home.

By Steve Hendershot

Real Estate’s Path Forward on DEI: Real estate professionals are working tirelessly to increase diversity and inclusion within their ranks.

By Matt Blake

Pro

Content: Provided by

Living: Use the SMART method to help achieve

in

from

Knowledge

Designation Nation

EDITOR

Kimberly Cure kcure@crs.com 800.462.8841

ASSISTANT EDITOR

Amelia Garza agarza@crs.com

CONTRIBUTING WRITERS

Matt Blake Caroline Heller Steve Hendershot

Regina Ludes Shaila Wunderlich

2022 BOARD OF DIRECTORS President Holli Woodward, CRS

President-Elect Pam Ruggeroli, CRS

First Vice President Tricia Nekota, CRS

Immediate Past President Alex Milshteyn, CRS

Members Sandy McRae, CRS Bruce Myers

Addie Owens, CRS Kurt Thompson, CRS John Young, CRS

Chief Executive Officer

Tristano

Liaison Patricia Stodolny

PUBLICATION

Advertising Manager

Juan Quintero bd@crs.com 312.321.4410

The Residential Specialist is published for Certified Residential Specialists, general members and subscribers by the Residential Real Estate Council.

The magazine’s mission is: To be a superior educational resource for CRS Designees and members, providing the information and tools they need to be exceptionally successful in buying and selling residential real estate.

The Residential Specialist is pub lished 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 advertising represent the opinions of the authors and advertisers, not the Council.

POSTMASTER: Please send address changes to: The Residential Specialist, c/o Residential Real Estate Council, 430 North Michigan Ave., 4 th Floor, Chicago, IL 60611-4092.

COPYRIGHT 2022 by the Residential Real Estate Council. All rights reserved. Printed in U.S.A.

Publishing Manager

Mason

Director

Ivette Cortes crs.com

A podcast produced by RRC

Industry news made simple.

The Real Estate Real Talk podcast is hosted by leading agents that can help you cut through the noise and grow your knowledge and expertise.

An Honor to Serve

Within every market, and despite shifts in political, social and economic climates, the Council’s focus has remained on providing top-tier, relevant and timely education that sets our RRC members and CRS designees apart locally, nationally and globally. As I traveled this year, I found many members had no idea how many benefits their RRC member ship provides. First and foremost, superior industry knowledge, including tools to help you grow your business and access to the best referral network in the industry. A few highlights include 12 free webinars annually, access to Photofy, marketing and promotional templates, customizable newsletters, the award-winning magazine, The Residential Specialist, an Inman Select subscription, discounts for leading indus try events such as Sell-a-bration® 2023 in Atlanta and more. Our membership team is always researching what other valuable benefits to bring to members.

If you haven’t had the opportunity, visit CRS.com and sign up to earn our newest NAR-approved RRC certifications on Cryp tocurrency, NFTs and Blockchain, as well

as Divorce and Probate. Take advantage of our Personal Branding e-learning course to build your brand from start to finish. Thinking of making a change? Broker Solutions may be the answer you need to start your own brokerage or take your existing one to the next level.

Tune in with the other 4,500-plus listen ers to the Council’s own “Real Estate Real Talk” podcast to hear from Council and industry leaders. The Council will continue to push forward with TikTok, Instagram Reels and other social media strategies that have proven successful to raise industry and consumer awareness.

If you are not utilizing the Find A CRS app, you should be. It is the best place to find CRSs to assist with your referral needs. If you are a designee, make sure that your profile is updated so you don’t get overlooked. Our CRS family will continue to expand on a global scale—stay tuned to learn more about upcoming trade missions in 2023.

In the words of Maya Angelou, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” I have truly felt the love and support from our RRC family throughout this incredible year. I must rec ognize my incredible #RRCTeam22, who have not only been “game on” in 2022 but have gone into overtime to ensure all the wins for our members. For that, from the bottom of my heart, I thank each one of you.

I encourage those of you considering getting involved with your state and region to do so. We need you, but most importantly we want you to take part. It will change your life and your career. If you are unable to volunteer with RRC, please give back in your local communities. You are the difference.

As we close out an incredible 2022 and ring in 2023, I am very excited to welcome a new CEO, as well as the first fully memberelected leadership team and BOD in the Council’s history. I hope to see you all in Atlanta for Sell-a-bration in February.

It has been an honor to serve as president this year. Your voices matter, your leaders are listening and the future of the Council is bright.

Aerial View From the desk of Holli Woodward, CRS,

RRC

Photo: Adam Murphy

I have truly felt the love and support from our RRC family throughout this incredible year.”

RRC strives to provide value to members in the digital space. Each issue of The Residential Specialist high lights classes, tools and other member resources available online.

Digital Channel Online resources for RRC members

RRC Commits to Increased Diversity

Visit the new landing page and continue your diversity and inclusion journey today at CRS.com/ about-us/diversityand-inclusion

At RRC, we appreciate the impor tance of creating an environment in which all our employees and members can feel valued, included and empowered to bring great ideas to the

table. To assist in this mission, CRS.com now has a dedicated diversity and inclu sion landing page to help those seeking to understand these tenets and implement them within their own business practices.

The page includes RRC’s mission points for both staff and members along with a list of resources available for members to tap into. Webinar recordings offered by the Council that discuss diversity and inclusion include:

Elevating the Discussion: Diversity and Inclusion

Fair Housing: 1866 to 2020

How to be an Inclusive Leader

Elevating the Discussion:

Continuing the Conver sation Around Diversity, Equity and Inclusion in a Post-COVID Society

RRC also offers links to third-party resources for members to continue striving for a more inclusive industry.

The Residential Specialist

PERSONAL PERSPECTIVE

MULTIGENERA -

TIONAL CLIENTS

Learn how to cater to clients who plan on hous ing multiple generations.

TRENDING HEADLINES AND IDEAS

INDUSTRY DIVERSITY

Ongoing efforts to make the real estate industry more inclusive.

SMART LIVING

Using the SMART approach can help agents work toward goals this upcoming year.

Personal Perspective Profiles of people to watch

Melissa Lundgren, CRS

Better Homes & Gardens–Leaskou Partners, Palm Springs, California

How did you get involved in real estate?

RRC events are such great networking opportunities to learn and grow as a REALTOR ® and as a leader, and I meet referral business partners organi cally as a result.”

I’m originally from Southern California, but I was living in Nashville, Tennes see, and working in film production for many years.

At one point, I was living in historic East Nashville and started working for a top-producing agent who was completing about 100 deals a year.

As an assistant, I was handling the listing and media presentations (my film background was helpful), open houses and more and started learn ing the business that way. Our broker said, “If you want to take the CRS Designation classes, I’ll pay for half.” So, I did. I took all my CRS classes and had the production in 2004 to become a desig nee. I couldn’t have had a better start.

but I moved back home to California and Palm Springs, where I’ve been since 2017. I got my license here and now I have 20 years collectively under my belt.

and La Quinta/ Coachella. Any where there is midcentury architec ture is desirable here.

What kinds of marketing efforts work in your market?

website so people can see and feel the home.

What are some of your current RRC activities?

Melissa Lundgren, CRS, achieved the CRS Designation in 2004. She can be reached at melissa@ melissalundgren.com or 760-668-2544

My broker and the REALTOR® association in the Nashville market really understood the value of edu cation. It was a great real estate community there,

What is the market like in Palm Springs? We get a lot of people coming from outside the area—not only retirees, but a lot of full-time, workfrom-home residents now. There are still many second-home buyers from what I call “cold country”— Oregon, Washington, Canada, the Mid west, as well as the west coast. Sellers are still selling, and buyers are still buying, but the inventory is still low, and the demand is high. There are a lot of cash buyers, and even though we aren’t having 20-plus multiple offers on every list ing, we may still get three or four offers per sale, which is, quite honestly, a lot more manageable for everybody. Still, it’s a hot destination market from Palm Springs all the way to Rancho Mirage

I love technology and embraced it early on. I love doing media presentations and photography, and capturing “the vibe” of a home or event helps when I share it on social media. I put things out there about my life and the desert lifestyle, and poten tial clients say, “I love what you posted about your dog, your family or Palm Springs homes or community events,” and so on. That just seems to work for me—being myself! When I set up a listing, I always go with professional photos, whether it’s a $100,000 home or a $2 million home. I believe how you do anything is how you do everything. Each seller deserves to have a first-class presentation. Every listing gets a video, a 360-degree tour, sometimes a drone video and a property

I enjoy any excuse to bring people together to do some thing for the good of the community, to learn, to have fun and to connect with other CRSs. We do a lot of that with RRC in California. We have such a great leadership team— we organize regional events, happy hours and educational meetings for our members. I’ve been the communica tions director for a couple of years with the California RRC, and I’ll get to be co-membership director in 2023.

I will be going to Sell-a-bration® and the upcoming NAR Winter Meetings in Orlando, Florida. RRC events are such great networking opportunities to learn and grow as a REALTOR® and as a leader, and I meet referral business partners organically as a result. At the same time, we’re making lifelong CRS friends.

Full House

By Steve Hendershot

Multigenerational living arrange ments are growing more popular, as more people choose to live alongside either adult children or their elderly parents. According to a new report from the Pew Research Center, the number of Americans living in multi generational homes quadrupled over the last half-century to 18% of the population, and that trend accelerated during the pandemic, according to research from the National Association of REALTORS®

“It’s become a much larger part of the market, and it’s just continuing to expand,” says Steve Rath, CRS, a REALTOR ® and owner/broker of Rath Real Estate in Roseville, California.

As people consider these arrange ments, they’re looking for homes that can accommodate extra adult residents

while also providing the space and privacy needed to alleviate relational stress. Those priorities can mean that multigenerational buyers value features such as separate entrances, quarters with mini-kitchens that are set off from other bedrooms, separate living rooms or even separate structures. Rath says he’s seeing a surge in the number of small, second homes located on the same lot as the primary home.

“It’s a great selling point if you’ve got it, and adds a lot of value,” says Rath.

Learning from experience

Rob Hundley, a REALTOR ® with Asher Chaim Real Estate in Phoenix, Arizona, experienced that value firsthand two years ago when he and his wife moved from Denver to Phoenix to move in with

Source: Pew Research Center

Finding homes

fit multiple generations

of people living in multigenerational homes cited financial pressure among their major reasons, and 33% identified caregiving as a major factor.

Rob Hundley, REALTOR ® with Asher Chaim Real Estate in Phoenix, Arizona, knows firsthand the joys and challenges of multigenerational living—he and his wife live with their son and daughter-in-law. Here are his tips for mar keting to this unique and growing segment:

Multigenerational Clients Finding homes to fit multiple generations

AN INSIDER’S SCOOP ON MULTIGENERATIONAL LIVING

Group participation. Get every resident to share what they value in a living space, and work to accommodate those desires—especially if this is the first time the generations will be living under the same roof. Continue to engage each of these stakeholders throughout the process.

Culture accommodation. In many cultures, mul tigenerational living is the norm. Ask if there are other cultural elements that need to be included or planned. For example, the Hundleys’ kitchen has an area dedicated to prayer.

their son and daughter-in-law—a concept that was new to Hundley but a cultural norm for his daughter-in-law. Moving into a small, secondary home on the structure, commonly called a “casita” in Phoenix real-estate parlance, enabled the elder Hundleys to enjoy being close to their children “without feeling the pressures of rubbing or chafing that can come with living more closely together,” says Hundley.

Breathing room. Whether it’s a standalone structure, a separate entrance or an additional living room, look for secondary living spaces that provide separation and privacy, rather than just a bedroom count that matches the total number of residents.

Find the right title company. Because multigenerational home purchases may involve a pooling of finances, the transactions can be more complex than other home sales. A title company with experi ence in multigenerational home transactions can be an asset.

Gain insight into the different attitudes, behaviors and needs of different genera tions of homebuyers and sellers with the recording “Tribal Marketing” at CRS.com/webinars

Now, Hundley is taking what he’s learned and beginning to evaluate properties through the lens of a multi generational buyer. He says it’s crucial to meet with all of the stakeholders within those families—not just the pri mary purchaser—to ensure that everyone will be satisfied with the outcome.

“As an agent, you’re not a family coun selor, but still there’s something to

listening to each of the sub-units, and to what each person is saying and not say ing, to determine the living-space needs beyond just the bedroom and bath. People don’t always think through those ques tions fully, or they think it won’t be that big of a deal—but it is, and it’s something to keep in mind,” says Hundley. “You’ve got to work through the process, almost like an architect on a custom build: ‘Tell me all of your wants, and then let’s come back together and figure out how many of them we can accomplish.’”

Multigenerational buyers driven by finances and health

The Hundleys moved in with their kids because living together was a cultural value, but there are other forces at work for many other people living in multigen erational arrangements. According to the

aforementioned Pew study, 40% of people living in multigener ational homes cited financial pressure among their major reasons, and 33% identified caregiving as a major factor.

Financial dynamics can play a key role in cases where fam ilies pool their resources to acquire more attractive prop erties, especially in areas with sky-high prices. Those buyers may become more numerous as interest rates climb.

“When you combine your buying power, it makes a big difference and can really enable you to find nicer prop erties that way—as long as you get along with your parents,” says Rath.

Debbie Murray, CRS, a REALTOR ® with Dallas, Texas-based Allie Beth Allman & Associates, first experienced multigenerational living when she sold two homes, then helped the sellers move into a single home with a multigenerational, senior-friendly floor plan.

When she picked up a listing for a five-bedroom, $2.6 million home that had been listed and unsuccessfully marketed twice before, she scoured the floor plan and determined that a large game room could instead be marketed as the centerpiece of a secondary living suite. The house sold in just a few days.

“Pay attention to the floor plan, because if it can be used in a multigenerational way, you can attract a different set of buyers,” Murray advises.

Multigenerational buyers bring a different set of needs and priorities to search for a new home. By recognizing and catering to those needs, agents will not only drive bet ter outcomes for their clients, but also tap into a growing segment of the market.

MARKET MOMENT

Low Credit Scores Lead to Higher Mortgage Payments

Elevated mortgage interest rates are causing issues for potential homebuyers who have lower credit scores. According to a recent study by Zillow, buyers with a “fair” credit score could end up paying up to $288 more in mortgage payments per month when compared to those with “excellent” credit scores. Doing the math, these “fair” credit-score owners could end up paying an additional $104,000 over the course of a 30-year mortgage— a number that is no laughing matter.

The study went further to break down what each FICO ® credit score bracket may see in terms of average interest rates and total loan costs.

Rate

30-year

analysis, visit bit.ly/credit-scoremortgage-rates

Loan Cost

a typical U.S.

costing $354,165 with a 20% down payment)

between

according to Zillow.

home

Industry Diversity Efforts to make real estate more inclusive

Real Estate’s Path Forward on DEI

By Matt Blake

of the country’s white households are homeowners, compared to just over

% for Hispanic households and

% for Black households.

Source: NAR

Nancy Metcalf, CRS, with Coldwell Banker Realty in Honolulu, Hawaii, was vexed.

The real estate agent has spent her 31-year career amid Hawaii’s racially diverse population.

So, when she took the National Asso ciation of REALTORS ® fair housing simulation test, in which agents navigate through the Sims-like town of Fairhaven, Metcalf expected the training to wrap up in 60 minutes.

Instead, it took over two hours. “I was kind of stunned at how poorly I was doing,”

she recalls. “In my mind, I was very fair housing-focused. But I realized that our industry needs to keep learning.”

Metcalf learned she might have a bias in assuming where her clients would like to live. She has since grown more resolute in ensuring prospective homebuyers see different neighborhoods including lis tening intently to her clients’ preferences and changing what she shows once the process begins.

Other CRS agents described them selves or a colleague with biases in not understanding specific obstacles for

minority real estate agents, or being reluctant to respect the rights of trans gendered colleagues.

Though these agents brought differ ent perspectives to the subject, they each agreed REALTORS® made progress the last two years on diversity, equity and inclusion. But there is a long way to go.

Wake-up call

“We had a real wake-up call postGeorge Floyd,” says Fara Captain, CRS, broker at Captain & Co. Real Estate in Memphis, Tennessee.

Specifically, it was five months after Floyd’s death that agents reckoned with real estate’s fraught past and uncertain present. In November 2020, Charlie Oppler, then the president of NAR, apologized for the organization’s prior support of racially restrictive covenants and opposing the 1968 federal Fair Housing Act.

“I have to give credit to NAR for provid ing awareness on the issue,” says Gonzalo Mejia, CRS and agent at Watson Realty in Jacksonville, Florida. “2020 was a very important year for opening conversations.”

One conversation is why there are not more real estate agents of color. The U.S. population is 13% Black and 18% Hispanic, according to the U.S. Census Bureau’s 2020 numbers. Yet, just 6% of real estate profes sionals are Black and only 9% are Hispanic, according to the census.

“We need to mirror what our demograph ics look like,” Captain says.

First steps for brokerages

The average real estate agent is a 56-yearold, white female, according to a July 2022 NAR survey. To make real estate more racially diverse, brokerages must “recruit where no one is recruiting,” Captain says.

Also, Captain believes that the indus try is stuck on the “diversity” of diversity, equity and inclusion, and not providing equity in the form of specific resources to help minority agents.

For instance, a Spanish-speaking agent should receive Spanish brochures, be connected to a Spanish-speaking mortgage lender and be given an introduction to the nearest chapter of the National Association of Hispanic Real Estate Professionals.

We had a real wake-up call post-

George Floyd.”

—Fara Captain, CRS

 NAR has made a strong effort to advocate for fair housing practices across the U.S.

NAR

For more resources on diversity, equity and inclusion, visit NAR.realtor/ diversity

Industry Diversity Efforts to make real estate more inclusive

Brokerages should also partner with the National Association of Real Estate Brokers (NAREB), the oldest trade group focused on Black professionals in the country. In 2021, NAREB introduced a program to provide $5,000 in benefits to new minority agents plus a mentor who works with the agent 5–10 hours a week for one year.

Other financial inducements should be looked at, Captain says, including scholar ships for agent training.

Mejia added another requirement for brokerages: Discussing race, gender iden tity and sexual orientation with agents. At Watson Realty and in his work on the LGBTQ Real Estate Alliance, Mejia says he is sympathetic to agents suffering from “identity anxiety,” where “they feel the pressure to do everything right.”

“It’s okay to say, ‘I don’t get it,’ and then go ask somebody,” he says. “Don’t let a lack of knowledge become fear.”

DEI and home ownership

Diversity, equity and inclusion is not just important for its own sake. It is intended to help close a gap in which north of 70% of the country’s white households are

homeowners, compared to just over 50% for Hispanic households and 40% for Black households, according to both census and NAR data.

Mejia sees the racial home ownership gap as something of a chicken-egg problem. “The lack of diverse agents correlates with low home ownership rates, because some minorities don’t see real estate as a viable opportunity,” he says.

On the positive side, brokerages who help boost Black and Hispanic home owner ship rates could spark a pipeline of diverse agents to the profession.

To do this, agents must be aware of any present bias. Metcalf advises brokerages to create fair housing training, or at least use NAR’s and local associations’ resources. Another step is specific training over gender identities, and making clients feel included.

For Captain, that means, in part, having her agents put their pronouns on the com pany’s website.

Progress on diversity, equity and inclusion is an evolving path, CRS members say. It can involve the aforementioned steps. But it most requires flexibility and openness.

“Education is very big to me,” Metcalf says. “Sometimes, you just have to relearn.”

Specialist

Source: U.S. Census Bureau

PERCENTAGES OF MINORITY AGENTS LAG BEHIND TOTAL POPULATION NUMBERS

U.S. MINORITY POPULATION MINORITY AGENTS IN THE U.S.

We need to mirror what our demographics look like.”

—Fara Captain, CRS

SPONSORED CONTENT

This article was provided by Rocket ProSM Agent Insights

Helping Clients Navigate Higher Rate Environments

Rising inflation and the Federal Reserve reeling back sup port have led to quickly rising interest rates. Here’s how you can help clients navigate this new environment.

What’s happening in the market?

There are three main factors affecting the current market: higher mortgage rates, low inventory and higher prices. Let’s explore these challenges.

f Higher mortgage rates — According to Freddie Mac, the average 30-year fixed mortgage rate is up more than 2% since the year’s start. This rise is expected to continue as the Federal Reserve has pushed the federal funds rate up by 0.75% since March and began selling its portfolio of mortgage-backed securities.

As the Fed backs away from the market and investors may start demanding higher yields to buy mortgage bonds, buyers must adjust.

f Low inventory — Sellers hold the cards right now. As of April 2022, existing home inventory has fallen 10.4% since last year. At the current sales pace, all existing homes in the market are expected to sell within 2.3 months, much faster than a balanced market’s typically anticipated six months.

f Rising prices — Rising rates are typically followed by falling prices, or at least a leveling off. But with such an imbalance of supply and demand, prices continue to rise. The median price of an existing home is up 14.8% since last April, while the median new home price is up 21.4% since last March.

This is also reflected in the S&P Case-Shiller index, which looks at home prices across 20 cities in a rolling 3-month average. Pre-seasonal adjustment, prices have risen 20.2% since last April.

What should you tell buyers?

There are five big themes you can touch on with clients to help them understand that, with proper planning, today’s market difficulties aren’t insurmountable.

f Get preapproved — Getting preapproved is in both your and your buyer’s interests. It helps clients know how much they can afford and lessens the chance that an offer will fall through.

f Lock their rate — With rates rising, encourage your clients to lock their rate as soon as possible to avoid paying more.

f Consider an ARM — Adjustable-rate mortgages (ARMs) offer lower initial rates over their fixed period than many other loan options and may even be able to increase your client’s preap proval amount.

To mitigate the risk of rising rates, have your client budget carefully and advise them to put extra money toward their mortgage balance. This means lower payments when rates adjust.

f Budget mindfully — Remind clients the difference between what they can afford and what they can afford comfortably. Have your client consider their lifestyle and future goals to avoid sacrificing retirement or emergency savings funds.

f Preach patience — What goes up must come down. If your client is struggling to find the right house at the right price for them, there’s no shame in waiting until there’s more inventory or more clarity on how prices are impacted by higher rates.

What about sellers?

Selling may be easier than buying right now, but there are still some things for sellers to consider.

f Is it the right time to sell? — Your clients may never get more return on investment back for their home than right now. Just be sure to warn clients who need to find a new home that the homebuying process is difficult right now.

f Competitive market analysis — A competitive market analysis (CMA) can be imperative for stay ing on top of the market and better advising clients amidst a rapidly changing environment.

f Pay attention to time on market — Be aware just how long your listings are on the market and don’t shy away from appropriately adjusting your pricing strategy.

The bottom line

Your counsel can be an incredible asset in uncer tain times. Now that you have a game plan, go help some clients!

 To get connected, visit RocketPro. com/RealEstate

The median price of an existing home is up 14.8% since last April, while the median new home price is up 21.4% since last March.

Smart Living Tactics for professional growth

Getting SMART in 2023

As 2022 wraps up and a new year is around the corner, have you thought about your goals for 2023? Many resolu tions don’t pan out as people hope or expect because they’re vague and without a path to achieve them.

The SMART approach can help ensure your goals are meaningful and attainable while enabling you to measure progress along the way, helping you stay engaged and motivated.

THE SMART ACRONYM REPRESENTS THE CRITERIA A GOAL NEEDS TO MEET:

Specific Dreaming of achieving some thing but not taking action can nega tively affect your self-esteem. By having a clear idea of your goal, you’ll be more determined to achieve it.

Measurable

By tracking your progress over time, you’ll feel good about yourself and

work harder toward the objective.

Attainable Balance between unrealistic and easy. You want to set a goal that will chal lenge you, but an easy goal might not give you the sense of accomplishment.

Relevant

Achieving a goal should bring you closer to your

big-picture purpose. Make sure the goal is useful to you in the future, other wise you’re more likely to lose focus and give up on it.

Time-based Deadlines create a sense of urgency and time limits guide you through completing your goals and enable you to keep track of your progress.

It’s easy to feel overwhelmed and not know where to start in a constantly-fluctuating market. Here is a sample of a SMART goal for real estate agents:

“By March, I will orga nize two free webinars with people from the real estate industry. We will discuss the current problems and challenges in the market and explain what makes our job interesting. This will help develop contacts with people in my field and better answer questions from potential clients.”

The goal is specific: stating when, with whom and why. The result can

be measured by keeping track of what changed after the webinars were aired. The goal is achievable and doesn’t take too much of your time while still being slightly new and out of your comfort zone. The goal is relevant because it helps you build relationships and better serve clients. The goal is time-based as it must be organized by March.

By implementing the SMART approach you’ll be able to improve your skills and enjoy the pro cess of becoming a better agent, growing and having more success.

For the full, essential guide on creating SMART goals—including more examples—visit smartsheet.com

FACING DISASTERS, step

The Residential

CRSs up

By Amelia P. Garza



Lisa Paffrath, CRS, went above and beyond for her community of Flagstaff, Arizona, after it was rav aged by fires and flooding.

CRS designees are not just the best real estate agents in the industry, they are also pillars of their communities.

This year, we are highlighting CRS designees who helped their communities bounce back when unexpected disasters struck, and how the extended CRS family was there for them when they needed support the most.

· WINNER ·

Lisa Paffrath, CRS, is a broker/owner at Better Homes and Gardens Real Estate Grand View North in Flagstaff, Arizona. Her community, known for its beautiful mountains and ponderosa pine forests, is now in recovery after experiencing two forest fires this past spring, followed by a summer of floods because of monsoon rains.

Having had a drier than normal winter, resi dents of Flagstaff feared that the harsh winds they were experiencing in the months of April through June would have severe effects.

We know any natural disaster is destructive, but when you actually see it happen in your backyard, it makes you realize that you really can’t take for granted what we have here.”

—Lisa Paffrath, CRS

Arizona: Fires and Flooding

Lisa Paffrath, CRS

“We all knew that all it would take was one spark [to cause a] catastrophe,” reflects Paffrath. “In the 20 years I have lived here, this was the first time seeing the loss of homes from a forest fire.”

The first fire, caused by intense winds, started on April 7 and burned for three days. The second fire was two months later, on June 12, and caused by an ember from a bonfire. The fires engulfed over 45,000 acres of land and consumed 33 homes and structures. Animals ranging from dogs and cats to horses and alpacas were displaced.

As an active volunteer in the real estate community, Paffrath immediately reached out to all her contacts to see what services could be provided to those in need.

Paffrath is grateful for the connections she’s gained through her involvement in RRC and appreciates being surrounded by agents who share similar values. “It’s just this amazing network of people who have that same kind of heart and mind that you do, [which is] to do whatever you can to help the community.

“I was aware of the relief funds available to our [real estate] community through the REALTOR® Relief Foundation,” says Paffrath. “I advised our local REALTOR® association and provided materials and resources to put in for these funds, which the associa tion was successful in obtaining.”

She also started a local fundraiser to assist Flag staff’s local humane society volunteers who had taken in all the animals displaced by the fires. In less than two days, the fundraiser garnered $1,800 in donations, which she matched. The support she received from her past clients and fellow CRS family was instantaneous.

“It was as easy as going on Facebook,” says Paffrath. “Within 10 minutes, I had raised $800. Hearts are good as gold, and I’ve been really lucky. A lot of my clients have been clients for life; their hearts are just amaz ing. I had friends in Phoenix that offered places down there and travel trailers for people to come if they had to. The community here really does come to bat when we have anything like this [happen].”

Paffrath also got her hands dirty to fill sandbags that were desperately needed to protect residents’ homes, as fires will remain an issue in this community for years to come. Her final mission was reaching out to her state association to add wildfirerisk.org to their Buyer’s Advisory and Seller’s Disclosure to prepare future residents of the potential risks associated with living in Flagstaff.

“This event made us realize that we’re not invincible up here,” says Paffrath. “We know any natural disas ter is destructive, but when you actually see it happen in your backyard, it makes you realize that you really can’t take for granted what we have here. And it really makes me want to do more.”

· RUNNERS

f Angi Cline and her husband, Steve, both CRSs, are very involved with RRC.

On December 10, 2021, western Kentucky was struck by a series of tornadoes, includ ing one string of storms that stretched from Tennessee to southern Indiana (possibly the longest in history). Nine communities were hit, particularly the cities of Mayfield, Benton, Princeton, Dawson Springs and Bowling Green.

Angi Cline, CRS, is a resident of Bowling Green, Kentucky, and recalls the night in harrowing detail.

“Late that night, reports started coming in. The far western part of our state was under fire,” says Cline, a sales agent at Berkshire Hathaway HomeService. “Tornadoes on the ground staying for long periods of time, towns being ripped through, homes, build ings and huge factories being destroyed. We knew it was heading our way, but there was little time to prepare. In the dark of the night, you can’t see what’s coming. You simply have to brace for it.”

About 155 miles away in Lexington, Kentucky, was 2022 President of Kentucky REALTORS® Association Mike Inman, CRS, a sales agent at Coldwell Banker McMahan Co. As the incoming president at the time, Inman and the rest of his asso ciation immediately sprang to action.

The Residential Specialist

Angi Cline, CRS

His association organized numerous relief efforts from boards across the state and collected supplies donated by their local members and members of neighbor ing states. In the greatest act of generosity, REALTORS® from Florida and New Jersey drove to Kentucky to drop off supplies for those in need.

“The fact that I had just completed NAR’s Leadership Academy helped immensely as it gave me access to REALTORS® in a num ber of states,” says Inman. He helped receive these donated items and assisted volunteers and staff in loading trucks for the trip to west ern Kentucky.

For Inman, this experience highlighted how important it is to be involved. “You’ve just got to know people in your commu nity, if you’re going to be able to pitch in and help. Otherwise, you’re going to spend days that can’t be afforded figuring out how to help.”

Back in Bowling Green, Cline was equally blown away by the gratitude she was receiv ing from her extended CRS family.

“My husband and I attend all the CRS meetings and we’re very involved with RRC. Those were the friends that reached out first to see what they could do,” says

Cline. “Just to know that we had support from across the nation and that they were concerned about [our community] ... it means so much.”

While Inman was receiving goods and supplies, the Kentucky REALTORS® staff submitted a request to NAR for a grant to assist in paying for temporary lodging and mortgages for those displaced by the tornadoes. The request was quickly accepted, and Kentucky received the largest grant in NAR REALTORS® Relief Foundation history—$1.5 million. As of September 2022, they have received nearly 400 applications for relief.

“To date, we have given over $630,000 to assist families in need in Kentucky,” says Cline. “Our state association has worked tirelessly to form a 501(c)(3) for a relief fund for future disasters for ourselves and possi ble assistance across our nation should that opportunity arise.”

It’s been nearly a year since these unex pected tornadoes struck. According to both Cline and Inman, communities are still recovering, and many were changed forever.

Although nothing can undo the damage and pain felt from these disasters, Cline is grateful for how her REALTOR® and CRS families pulled together in times of crisis.

“[This experience shows] how strong we are, the bond we have and the power that we possess to do good things in this world.”

For more ways to get involved in the REALTOR® community, visit NAR.realtor/ outreach

Mike Inman, CRS

Kentucky: Tornadoes Kentucky received the largest grant in NAR REALTORS® Relief Foundation history— $1.5 million



Mike Inman, CRS (right), stands with members of the Kentucky Association of REALTORS® on a mountain overlooking Whitesburg, Kentucky—an area hit hard by tornadoes in late 2021

2023 market predictions

By Caroline Heller

2022 marked the beginning of the end for what was an unprecedented seller’s market.

Mortgage interest rates climbed from around 3% to above 5%, and by June 2022 inflation had reached its highest annual rate since November 1981.

“We saw one of the craziest markets on record over the last couple of years, but it did a U-turn in the span of a quarter,” says Timothy J Kinzie, CRS, founder and CEO of Montlor Luxury Realty in Denver, Colorado, and Cary, North Carolina. “We went from record highs in appreciation to a 20-year low in mortgage demand.”

Although the market has cooled down in some regions, agents and experts across the country don’t foresee a crash or drastic downturn in 2023. Rather, many see a return to what it was prior to 2020—a normal, healthy market.

The

Abulkhanov/ Anatolii Shcherbatiuk

Prepare for 2023 by registering for the free member-benefit webinar, “Creating a Gameplan for 2023,” presented by Christy Murdock, at CRS.com/webinars

Here are a few predictions CRSs have for 2023’s national housing market outlook:

2023 WILL SEE A RETURN TO A SLOWER, BUT STILL HEALTHY MARKET

“The headlines are going to say how drastically different 2022 has been from last year. But I always take that with a grain of salt,” says Brooke Miller, CRS, an associate broker at Long & Foster Realtors in Fredericks burg, Virginia. “This is because the last two years were highly unusual and fueled by interest rates that we will probably never see again.” Instead, she has been comparing the first half of 2022 to the last normal real estate year of 2019. “Our market in Virginia is performing better than it did in 2019—and that was a great year,” Miller says. Don’t compare 2022 or 2023 to 2021 or 2020 because that’s unreal istic, Miller says. What agents should expect in 2023 is that things will slow down in terms of time. It will take a bit longer to sell and pricing adjustments will happen, but home values will still rise at a normal rate of 3% to 7%.

SEASONAL FLUCTUATIONS WILL RETURN

“My prediction for this next year is that the seasonal adjustments are coming back, which we haven’t experienced in two years,” says Miller. July and August are the slowest months in her Virginia market in addition to the typical slowdown around the end of the year.

Mark Handlovitch, CRS, an associate broker at RE/MAX Real Estate Solutions in Pittsburgh, Pennsylvania, predicts a similar phenomenon. “I live in a market in Pittsburgh where it’s seasonal. We have our ebb and flows based on the time of year. However, that was gone for a few years with how crazy the market was,”

Handlovitch says. “We’re starting to see a little bit of that feeling come back. June 2022 felt like a normal June where things started to slow down a bit because every one went on vacation after school got out.” 2023 will be like years before 2020 in terms of seasonal cycles, and agents should prepare and educate their clients accordingly.

ABOVE 5% INTEREST RATES WILL BECOME THE NEW (AND OLD) NORMAL

REALTORS® who have been in this business for a while can remember a time when 5% and 6% interest rates were normal. Some can even remember the high interest rates of the 1980s.

When Michael Marcus, CRS, an associate broker at Cold well Banker Realty in Denver, Colorado, first bought his home in 1982, he was able to assume a VA mortgage at 13%. “And I was

very lucky,” Marcus says. “My friends were getting new mort gages between 18% and 20%.”

Millennials, who continue to make up the largest share of homebuyers, are used to seeing rates below 4%. But REALTORS ® predict that once people realize that above 5% interest rates are the new normal, their impact on the market will be minimized.

The Residential Specialist trsmag.com

Aliyev/PeterSnow/turk_stock_photographer

Miller predicts that loan assumptions are going to be a big trend for the next decade. A loan assumption is when a seller who has a VA or FHA loan can have their loan assumed by a qualified buyer. “The process takes longer—but it saves the buyer a ton a money,” Miller says.

IT WILL BE A MORE BALANCED MARKET

TOP 3 TIPS REALTORS® HAVE FOR NEWLY LICENSED AGENTS

One thing is clear: the anomalous situation of the U.S. housing market in 2020 and 2021 will likely not be coming back in 2023. This requires REALTORS® to return to the fundamentals when it comes to selling homes. Here are some tips REALTORS® have for newer agents as they navigate this unfamiliar territory.

Educate yourself on lending and offers when working with buyers. “There are so many creative things you can do when structuring an offer. It’s not just about price,” says Timothy J Kinzie, CRS, founder and CEO of Montlor Luxury Realty. Negotiate figures for your buyer that allow for closing cost concessions, prepaids and favorable occupancy.

Invest in yourself and in your marketing. “Don’t pull back because you think the market is going to slow down,” says Michael Marcus, CRS, an associate broker at Coldwell Banker Realty. Mark Handlovitch, CRS, an associate broker at RE/MAX Real Estate Solutions, seconds this tip. “When times are tough, you should be marketing, marketing, marketing. When times are good, you should be marketing, marketing, marketing. Never stop marketing yourself,” Handlovitch advises.

Supply is still relatively low across the country, but interest rates and inflation will put the ball back in the buyer’s court when it comes to closing cost help, inspec tion and repair negotiations, and below initial asking price offers—things that were thrown out the window during 2020 and 2021.

M. Paula Di Mauro, CRS, broker and owner of Urban Key Realty in Miami, Florida, predicts a neutral market. “We’re slowly moving away from the seller’s market,” says Di Mauro. “I think we’ll have more of a balanced market for 2023.”

“Do your own research and advise clients based on facts, not by how you’re feeling” is what Brooke Miller, CRS, an associate broker at Long & Foster Real tors, tells her own team. There are a lot of influencers and things on the internet that seem real, but aren’t based on facts, Miller says. One place to start doing your own research is the Multiple Listing Service (MLS). “The MLS has great monthly reports. You just have to print them out and learn how to understand them,” Miller says.

ASSUMABLE LOANS MIGHT BECOME A MORE POPULAR OFFERING DUE TO HIGHER INTEREST RATES

DOUBLE

The

“It comes up at least once every few years,” says Kerbis, broker with @properties Christie’s International Real Estate Brokerage in Chicago, Illinois. While dual agency has its place, Kerbis says she prefers to work with other agents.

“I believe it’s a better experience for buyers and sellers as well as for agents,” she explains.

Ask any real estate agent their feelings about dual agency, and you’ll likely get a range of responses—from enthusiastic support to anger and distrust. Some agents say it’s a boon for their business and creates a smooth transaction experience for all parties, while others say it’s a conflict of interest. Despite the controversy, dual agency isn’t going away any time soon. Agents who understand their state’s requirements can determine if dual agency is beneficial for their client and for their business.

DISCLOSE AGENCY STATUS

According to the Consumer Fed eration of America, 55% of consumers do not understand the different agency types in real estate. Dual agency occurs when one agent represents both the buyer and the seller in a transaction. In some states, dual agency might also refer to one brokerage or real estate team representing both parties. The critical component is disclosure. In most

In her 25 years in real estate, Kim Kerbis, CRS, says she acts as a dual agent every now and then.

DUTYBy Regina Ludes

states, dual agency is legal as long as it’s properly disclosed and the buyer and seller agree to it.

Several states have banned dual agency or put strict limitations on it. Since each state has its own disclosure laws, agents should become familiar with the require ments in their state.

Jane Boles, CRS, says dual agency is nor mal business practice at her firm RE/MAX Boone Realty in Columbia, Missouri. Her broker requires any transaction between two agents in the company to be handled

as dual agency. “My broker believes dual agency creates less liability for the com pany,” says Boles.

She says most clients accept dual agency as standard practice and don’t ask many questions. Only once in her 33-year real estate career had a client refused dual agency. In that instance, her broker advised that the client assign Boles as a designated agent. “The agency still represented the client, but everything in the client’s file had to be kept separate and confidential during the transaction,” Boles explains.

REMAIN NEUTRAL

In Durham, North Carolina, Susan Richter, CRS, broker associate with Berkshire Hathaway Home Services, says dual agency comes up several times a year. “Often it happens when a buyer calls to inquire about a home of one of my sellers,” Richter says. “If they tell me they are not working with an agent or have not contacted one, I’ll move ahead with the transaction as a dual agent.”

Most sellers are more open to the idea of dual agency than buyers who need to be educated about it. “I won’t show any listings to a buyer if they tell me they are against dual agency. In that case, I tell them they need to find their own agent since I’m work ing with the seller,” Richter says.

To remain neutral during these trans actions, Richter says she provides only the material facts about the property, such as comp sales and pricing analyses, and she is careful about providing advice. “When I ask the buyer what they want to offer on the home, I give that offer to the seller without comment. I offer no advice about what the buyer should offer or what the seller should accept,” Richter explains.

USE WITH CAUTION

Dave Pautsch, CRS, broker with RE/ MAX Integrity in Albany, Oregon, vowed never to act as a dual agent after an early-career deal soured him on the idea.

He had served in the Navy for 23 years before becoming a licensed real estate agent. One of Pautsch’s first clients was a couple who he knew from the Navy who wanted to sell their home. He brought an offer from a buyer, who later backed out when they found another house they liked better.

KNOW THE PROS AND CONS

One positive of dual agency is that it can create a pleasant and seamless trans action for all parties. “With one less person involved, the agent has an over arching view of the transaction,” Kerbis says. “There’s more direct communica tion and no game of telephone tag.”

There are some downsides, however, including the potential to unknowingly and unintentionally provide advice to one or both parties. It is especially tricky when working with first-time buy ers, Kerbis says. “You naturally want to give advice and educate them, but dual agency rules prevent this,” she says. “There’s a fine line between educating someone and giving advice. That’s where agents can make errors.”

Another drawback is that the buyer or seller might feel the agent is representing the other party more than them selves, Richter says. While that situation has never come up in her own business, Richter says if it did, she would back out and appoint two other agents to handle the trans action, one for the buyer and one for the seller.

“I don’t want anyone to feel they’ve been cheated, and I don’t want them to think I was siding with the other party,” Richter says.

“I had to go back to the sellers, people whom I knew, and explain that the buyers would be able to keep their earnest money as the termination was within the contract timeline. The wife was upset and stated, ‘If you weren’t working for them, I’m sure you’d be working harder for us to keep it,’” Pautsch recalls. From the look in the wife’s eyes, Pautsch knew he had lost the couple’s trust. “I decided never to work as a dual agent again,” he says.

While the state of Oregon requires a discussion of dual agency in the first sub stantive contact with clients, Pautsch also makes it clear to clients that he does not work that way. He sees this as a strategic advantage that he touts in his marketing. “Always 100% on your side and never a dual agent,” he tells clients.

By not practicing dual agency, Pautsch believes he has created more trust within his relationships with clients as well as with other real estate professionals.

While Pautsch avoids dual agency, he sees no reason why it should be banned.

“There are plenty of agents who practice dual agency with no problems,” he says.

ADVICE FOR AGENTS

Whether agents practice dual agency or not, they have an opportunity to educate clients. “Most people don’t understand what they’re giving up when they agree to it,” Pautsch says.

Boles says agents who are considering dual agency should take classes to understand it better or consult with their broker who can clarify what confidential information they cannot pass on to each party.

Most important, since dual agency is a hazy concept for most people, agents should educate their clients early in the process. “Agents need to explain dual agency up front so by the time an offer is written up, it won’t be the first time they’re hearing about it,” Boles says.

For more ways to take your brokerage to new heights, check out the offerings from Broker Solutions at CRS.com/brokersolutions

55 % of consumers do not understand the different agency types in real estate.

Source: Consumer Federation of America

now you

The

see them...

By Shaila Wunderlich

Fern Kulpreecha has moved six times over the past 14 years.

The RRC member and REALTOR® with Berkshire Hathaway HomeServices NorCal Real Estate in Granite Bay, California, always insisted on generous square footage, primary bedrooms on the main floor and quiet lots with plenty of space between neighbors. Yet even the properties that checked all these boxes could not earn her bid if they did not accommodate her three dogs and five cats. “I’m very particular about my fur babies’ well-being and whether they’re going to be happy and safe,” she says. “They’re my top concern when looking for a new home.”

On the flipside, you have the experience of broker Carrie Ives, CRS, with RE/MAX PRO in Amarillo, Texas. She’s discovered an overwhelming number of homebuyers who not only don’t want pets but prefer to see no evidence of them whatsoever in the homes they are viewing. Ives’ son, also a REALTOR®, recently worked with buyers who requested to view only properties that never housed animals. “Never until I became a REALTOR® did I realize how many people are either allergic to or deathly scared of pets,” Ives says.

According to Zillow’s 2021 Consumer Housing Trends Report, 46% of current homeowners have at least one dog, and 34% have at least one cat. NAR’s 2020 survey, “Pets in the Home Buying and Selling Process,” reported 43% of homeowners would be willing to move solely for the purpose of accommodating their pet.

Against such polarized, potentially deal-breaking preferences, how do REALTORS® walk the line? How does any given agent know whether to high light—or hide—a property’s pet-related amenities?

of REALTORS ® recommend their clients remove pets before showing a property.

of current homeowners have at least one dog, and 34% have at least one cat.

Source: Zillow

1st

presume no pets

Generally speaking, the pet-loving side comes from a place of preference, while the pet-avoidant side comes from a place of safety and health. Because of this, it may make sense to initially cater to the latter. Supporting this strategy are the whopping 80% of REALTORS® who recommend their clients remove pets before showing a property. “Chances are good any buyer is a pet owner, but that doesn’t mean they want to smell or see signs of someone else’s pets,” says Addie Owens, CRS, principal broker with RE/MAX Touchstone in Florida’s Lake and Sumter Counties. “When showing a home that has pets, it’s less about what you see and more about what you don’t see.”

“If possible, remove the pet from the premises completely,” Ives says. “Even putting them in the kennel or backyard can be an issue. I’ve had several buyers who refused to even enter a room or yard if a pet was in it.”

SOME OTHER ADVICE ON HOW TO PREPARE A HOME FOR SHOWINGS INCLUDE:

of homeowners would be willing to move solely for the purpose of accommodating their pet.

Source: NAR

Scrubbing floors, baseboards and walls. “My best staging advice to pet owners is clean, clean and clean some more,” Owens says. “So many pet owners become nose-blind to the smell of their animals—I know I do,” says Ives, a pet owner herself and wife of a veterinarian. “You may not detect that pet bed, but a nonpet person can smell it right when they walk in the door.”

Replacing or cleaning stained or smelly fabric. That includes carpets, drapes and upholstered furniture. Preferably remove or replace them. If that’s not possible, have them professionally cleaned. “As long as the buyer has noted any stains, another option would be to offer the buyer credit to have it cleaned or replaced themselves,” says Kulpreecha, who’s also a certified animal consultant.

Removing food bowls, leashes, pet beds and toys. “Store them in a shed or garage, which tend to have better ventilation than the interior of a home,” Ives says.

Ventilating. Open windows, if weather permits, and frequently check HVAC filters of listed houses, replacing if necessary.

Residential

nd

prepare to pivot

Once the agent discovers a client in fact desires pets (whether on the disclosure form or by talking to them), they can shift gears to highlighting the home’s prime pet amenities. “I find that when you are dealing with a pet owner, they will usually bring it up within the first few minutes of talking to them,” Kulpreecha says. “Otherwise, I simply ask.”

This opens up a whole menu of selling points, which can be cherry-picked according to each property and each buyer’s preferences.

SOME OF THOSE SELLING POINTS INCLUDE:

Flat, fenced-in backyards. This was top of mind for Kulpreecha, as well as the most cited in NAR’s survey. “Be sure the fence is in decent condition, too,” she says. “Not falling down; no rust or gaps. You never want a potential buyer to look at something and consider it a potential repair.”

Single-level or ranch-style homes. Small dogs, in particular—especially those who like to stick at their owners’ heels—have difficulty navigating and staying safe on steep or excessive stairs.

Carpet or textured flooring. “Tile and laminate are popular, but their slick, shiny surface is hard for dogs and cats to walk on—they can slip and hurt their backs” Kulpreecha says. “It’s a personal preference that will differ from buyer to buyer.”

Pet-friendly zoning and HOAs. Most homeowner associations (HOAs) have rules and fees surrounding animals, including how many are allowed. The average annual association per-pet fee is $300, and many permit no more than two or three per residence. Rules regarding fencing and gates are also common.

consider the safety risks

Many of the things that pose risks to kids’ safety are interestingly also hazardous to pets. They include:

f Water. Unsecured pools, ponds or land scaped water features pose drowning risks. “Pools should have fences to pro tect kids and pets,” Kulpreecha says.

f Exposed drains, wires or electrical equipment.

f Dangerous landscaping. Sharp edges, tiny crevices and poisonous plants are red flags to conscientious pet parents. “Hydrangeas and certain lilies can be toxic and even fatal to both humans and animals,” Kulpreecha says.

f Lead paint and asbestos. “Asbestos is as harmful to fur babies as it is to humans,” she says. “Check the seller disclosure and inspection reports very closely. If

there is question regarding any of the materials, or if the house was built before 1974, I’d recommend enlisting a certified contractor to come and inspect on top of the general inspection.”

Regardless of the buyer or the property, Kulpreecha says the most important thing is to listen and adjust accord ingly. “My favorite thing to do is make note of all the ‘extras’ in pet amenities a home has to offer—things like doggy doors, covered patios and pet-proof insect screens—and be prepared to either high light or downplay them according to the buyer’s tastes.”

Service animals are becoming more prevalent—get more guidance for your clients at ada.gov

When showing a home that has pets, it’s less about what you see and more about what you don’t see.”

—Addie Owens, CRS

recent home

said it was very important that their new neighborhood be convenient for vet access and/ or has outdoor space for

ANIMAL HOUSE pets in the homebuying and selling process

of U.S. households that would be willing to move

change their living situation

accommodate their

of agents who consider themselves animal lovers

annual

for

of agents who volunteer for an organization that helps animals.

of agents who advertise their animal-loving tendencies.

the prevalence of pets, REALTORS ® must be equipped to advise their clients regarding their pets throughout the buying and selling process.

information, access

House: Pets in the Home Buying and Selling Process” report at

For more on the Council’s numerous certifications, visit CRS.com/learn/ certificates

Preparing for a Digital Future

By Megan Craig

The future is digital. And soon, many real estate transactions will be, too— at least according to some experts in cryptocurrency and blockchain technology.

REALTORS® have been talking for years about how the blockchain technology central to Bitcoin and other cryptocurren cies could revolutionize the way real estate transactions are completed.

A new certification through RRC, “Cryptocurrency, Blockchain, DeFi & NFTs,” will give CRS designees the opportunity to learn the fundamentals of cryptocurrency, non-fungible tokens, smart contracts, blockchain transactions, investing in on-chain technologies and, most importantly, advising their own clients about using the technology in real estate transactions.

Breaking down blockchain

Kathleen Ryan, CRS, with RLAH Real Estate @properties in the Washington, D.C., area, is a former senior engineer, so when she learned about decentralized currency, she was immediately drawn to the possibilities. After years of classes and securing her own crypto investments, Ryan is one of several CRSs creating the crypto-focused certification.

Attendees will start with the basics, since many people still don’t know much about blockchain or cryptocurrency, Ryan said.

“What we don’t want to happen is buyers or sellers coming to you and saying, ‘I have Bitcoin,’ and your first question is, ‘What is Bitcoin?’ That’s not going to work,” Ryan says. “You have to be ready and prepared.”

Strategies from

This certification course will help mem bers do just that, she says.

The initial e-learning opportunity will introduce basic concepts around crypto and decentralized finance, then focus on how crypto is being used in real estate now and how it’s likely to be used in the future. Experts will also cover advising clients through crypto transactions and market ing your expertise in crypto to the right potential clients.

That information will be broken down into terms even someone with no crypto knowledge will understand, says Andrew Daniels, a REALTOR ® with RE/MAX Alliance Group near Tampa Bay, Florida. Attendees will learn the lingo associated with these specialized transactions— DeFi, Web3, DEX, NFT, hashing, mining, node—and understand how those ele ments of blockchain fit into the real estate landscape.

“At the introductory level, it is a hard concept for people to understand, so we’re going to take it bit by bit,” says Daniels, who is also helping to craft the new CRS certification.

The second e-learning session will offer information on crypto real estate investing, including how to make investments in the space and decide whether a crypto invest ment is the right choice.

Finally, attendees are expected to learn how crypto fits into the National Asso ciation of REALTORS’® Code of Ethics and about potential legal implications of using blockchain technology in real estate transactions.

The future is now

The certification comes at a time when blockchain transactions are already becoming more common in the real estate market. In 2017, an Austin, Texas, home closed using only Bitcoin, and in 2021, the most expensive penthouse in Miami Beach sold for $22.5 million in an entirely blockchain-dependent deal. But that’s just the tip of the iceberg, Daniels says.

Earlier this year, Redfin reported that nearly 12% of first-time homebuyers surveyed said selling cryptocurrency contributed to their home purchase, up from only 5% in 2019.

“There are more and more clients inter ested in this space, so it’s a place to go for real estate agents,” Ryan says. “So, if you can be on the edge of technology—maybe I’ll even say, a futurist—that’s critical, because both you and your clients benefit.”

It’s not just about the actual currency, though. Blockchain captures all parts of transactions, from digital money to smart contracts and other documents. It will allow more people to make real estate investments and will also turn real estate into more of a “liquid asset”—an asset that can be purchased or sold quickly, with completely digital paperwork, at less cost and without having to wire any money, Daniels says.

Ryan says she can envision a future when many real estate agents live on their laptops, selling physical real estate or in the metaverse, using all digital documents and crypto funds.

It’s only a matter of time before this knowledge becomes less optional and more vital to agents’ everyday business, Daniels says. If you plan on staying in the real estate industry, then you need to under stand the basics of cryptocurrency and blockchain. “It’s already being used heavily, so if you don’t want to learn it, I would say you should probably retire in the next five years,” Daniels says.

In 2017, an Austin, Texas, home closed using only Bitcoin, and in 2021, the most expensive pent house in Miami Beach sold for $ 22 . 5 million in an entirely blockchaindependent deal.

Join Matthew Rathbun, CRS, on January 4, 2023, as he discusses which tech tools and apps will become more prevalent in 2023, available at CRS. com/webinars

Out With the Old

The world we live in is digital, and the real estate industry is no exception. But it seems that as fast as new technology appears, the old technology fades away. Technology has an expiration date and even our favorite gadgets from years past get pushed to the side. Here are a few devices that real estate agents may need to con sider retiring before 2023, if you haven’t already:

3G-connected devices — In 2022, wireless carriers started shutting down their 3G data networks to make room for the new and improved 4G and 5G services. This not only impacts phones, but all devices that rely on the 3G data, like home security devices, driving assistance systems and more. Stay ing connected is part of a REALTOR® ’s job, so check with your wireless provider to see when your device will be affected and make the switch over to 5G.

Dashboard-mounted GPS devices — Dash board GPS units have faded away, but the technology is still crucial when it comes to navigating, especially if you’re a busy REALTOR® on the go. GPS navigation is now available in both smartphones and vehicles’ consoles. If you’re using your smartphone, popular navigation apps include Waze, Google Maps and Apple Maps.

BlackBerry — In January, BlackBerry finally said goodbye to its handset software. This means anyone who still uses the operating system and software will no longer be able to send texts, make calls or access data. Some people love the physical keyboard, and while it’s still possible to purchase devices, the BlackBerry we once knew is officially obsolete.

Wired audio devices — “Where did the head phone jack go?” You may have said this as you opened that new iPhone and went to listen to music. With the popularity of Bluetooth comes the demise of headphones and speakers. As more wireless products pop up, people are ditching their corded devices—which can look cleaner in homes and involves less detangling on the go.

External hard drives — These days, it’s all about the cloud. Though you may prefer a hard drive or thumb drive, for many they end up just lying around the house or office. Cloud storage of your documents, photos and videos on platforms like Google Drive, iCloud or Microsoft OneDrive allows you to access your content from anywhere, whether you’re in the car or at an open house. Another bonus to cloud storage is not having to worry about device crashes or malfunctions.

Point-and-shoot digital cameras — From the convenience of being able to take a quick selfie, to the seamless integration of endless editing apps, smartphones are an obvious choice for everyday photography. Many models can take high-resolution photos, and manufacturers have been developing more features for photog raphy every year. No matter how good your camera phone is, it will never have the versatility of a digital camera—but when it comes to convenience, ease of use, time-savings and price, it may be the better business choice for agents.

Passwords — While the practice of typing in your password won’t vanish, it’s becoming outdated. Many computers and phones are using biometric recognition to confirm an identity, which tends to be faster and easier. The traditional use of passwords will likely fade further as more devices use two-factor authentication codes.

Vasylchenko/Bulgac/StockPhoto/David

Issues of Importance

Highlighting timely industry updates

with appraisal gaps, giving the buyer the ability to terminate the contract of sale in the event the house doesn’t appraise, rather than being obligated to still close and pay the difference in cash at closing. Also, with the recent mortgage rate hike, many buyers who have been house hunting for a while are no longer able to afford homes they were previously able to, forcing them to walk away from a sale they might otherwise pursue once denied via a mortgage contingency.

How can sellers and buyers protect themselves?

Home Sale Cancellations

By Elizabeth Perez Barletta, Ligris + Associates

60,000: Deals that fell through in June 2022

Source: Redfin

When buyers or sellers terminate their home sale contract, either justifiably or for no cause, it affects all parties involved. According to a Redfin report, around 60,000 deals fell through in June 2022—14.9% of all homes under contract and the most in any month since the pandemic’s early days. To provide further context, this number is well above the more typical 11.2% cancellation rate from a year earlier, and the third-highest on record behind March and April 2020, when COVID-19 lockdowns forced a wave of cancellations.

After feeling the pressure of a sellerdriven market the past two years, buyers are finally feeling what a more balanced housing market looks like—and using it to their advantage.

Why do buyers terminate contracts?

Following a prolonged seller’s market where contingencies were being waived, today, more offers are being accepted with contingencies. Sellers need to understand that it’s simply the state of the current market and accept the fact that time may pass and they may need to return the buy er’s deposit. Some sellers may feel that the appearance of these contingencies places them at a disadvantage. However, this is what a normal market looks like. Having all contingencies waived and contracts written as completely seller-sided is not typical in the real estate market. The inclusion of these contingencies has now balanced the market from a seller’s market to a normal market.

Conversely, if a seller backs out of a con tract for no cause, the buyer has the option to sue. There are several ways to go about this, depending on the buyer’s goals, such as: f Trying to force the sale based on “spe cific performance,” which means the court can order the sale to continue and transfer the title to the buyer regardless of sellers’ wishes.

To successfully represent and satisfy customers, and to prevent sales from falling through, brush up on your negoti ation skills with the classroom course

“Win-Win Negotiation Techniques,” available at CRS.com/learn

Homes are sitting on the market longer, giving buyers more room to negotiate after inspections. In a seller’s market, homebuyers often settle for any home they can get despite its flaws. Now, without the worry of a bid ding war, buyers are able to write inspection contingencies into their terms, giving them the power to terminate the contract if the property has any unacceptable conditions.

Other factors that affect a buyer’s decision to terminate include appraisal and mortgagerelated issues. Today, there are fewer offers

f Trying to receive monetary compensa tion by suing for damages, which means the court may force the seller to pay for certain costs the buyer paid because of the situation, which can include legal fees, inspection costs and more.

Because of the changing economic conditions, home sale cancellations are beginning to occur more frequently.

Despite the trend, buyers and sellers need not fret. While the increase in home sale cancellations seems sudden, it indicates that the housing market is slowly making its way back to normal.

The REALTOR ®’s Role in Affordable Housing

The shortage of afford able housing is on everyone’s radar, and across the country, real estate professionals are stepping up to be the solution for their clients and communities.

In her recently released whitepaper, EXIT Realty Corp. International’s co-chair Tami Bonnell shines a spotlight on four of the key areas where real estate professionals are making a positive impact on the housing crisis: service, volunteering, education and advocacy.

“Because real estate profes sionals are in the trenches every day, collectively we have one of the strongest voices for change,” Bonnell says. “As members of the National Association of REALTORS®, we are part of a well-respected and impactful organization championing change across the U.S. This organization is a major policy influencer, so keeping abreast of and joining its advo cacy efforts are key.”

In addition to participating in organized real estate, Bonnell believes real estate pro fessionals have a responsibility to advocate for and inform their clients about vari ous options available, including creative financing. For example, baby boomers own the majority of real estate in the U.S. But because many are living on fixed incomes and with the rising cost of living, many find themselves house rich and cash poor, threatening their ability to continue to own a home as they age and take on extra costs like in-home care. One option to free up cash and make home ownership more affordable for this group is a Home Equity Conversion Mortgage (HECM) for seniors.

HECM loans are not your grandmother’s reverse mortgages. They are backed by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD) and are only available

Council

through an FHA-approved lender. These loans are available for people aged 62 and older for their primary residence. The bor rower can refinance their home or purchase another with a 40%–60% down payment and never make a monthly mortgage payment. The borrower and their heirs will never owe more than the home’s value when the loan matures and the home is sold.

Here’s an example of how someone might benefit. The homeowner is living in Mary land but her family lives in Florida. Her primary income is Social Security and she wants to live near her family. Her home is worth $600,000, she sells it and clears $350,000 because she had a $250,000 mortgage. She puts her $350,000 down on a house in Florida (representing a 40%–60% down payment). She qualifies for a HECM loan for the balance and now she has no monthly mortgage payment and enjoys a better quality of life in a house she can afford near her family. HECM loans can help free up inventory and help seniors enjoy a more affordable way to live.

Talking about problems expands the problems. Talking about solutions expands the solu tions. For more inspiration and useful resources, download the full whitepaper at exitrealty.com/ whitepapers .

This article was provided by EXIT Realty Corp. Agent Insights

Your Own Council News and updates

Introducing RRC’s New CEO

Jeff Hornberger was selected as the Residential Real Estate Council’s next CEO, effective November 1, 2022.

Hornberger is a seasoned global business development executive with more than 20 years of experience with an emphasis on general manage ment, sales, marketing, public relations and operations in both the private and association sec tors across a variety of industries.

Jeff Hornberger, CEO

With the new appointment, Hornberger will be working in Chicago in the REALTOR® building, a place of familiar ity that feels much like home as he most recently served as the CEO and executive vice president of the Women’s Council

of REALTORS® —which occu pies the same floor as RRC.

Hornberger joined the Women’s Council in 2015 after a 16-year tenure with the National Asso ciation of REALTORS® (NAR).

Serving as their director of global alliances, he traveled to over 40 countries on behalf of NAR and organized real estate.

He was also the managing director of the NAR Commercial Real Estate Division and worked closely with NAR’s Commercial Institutes, Societ ies and Councils.

Hornberger has held the REALTOR ® Certified Executive (RCE) designation since 2007, and in 2016 he earned his Certified Association Executive (CAE).

Be a Crypto Pro

The crypto-technology wave has hit the real estate industry and, like in other markets, it shows no signs of slowing down.

RRC INTRODUCES THE KNOWLEDGE HUB

Gain access to a curated library of timely and downloadable content from experts and vendors in the real estate industry. The RRC Knowledge Hub provides instant access to white papers, guides, ebooks, reports, case studies, industry analysis and much more.

Explore the Knowledge Hub at hub.CRS.com

Coming late November, the Cryptocurrency Certification will teach REALTORS ® the basic information of NFTs, crypto and how to advise clients using these transactions. The training will bring a competitive edge to agents looking to be a leader in their market’s real estate tokenization efforts. RRC will be one of the first organizations to have a crypto certification designed for residential agents.

For more information, visit CRS.com/ certificates

The Residential Specialist trsmag.com

SELL-A-BRATION® IS COMING!

Join us for Sell-a-bration® 2023 on February 8–10, 2023, at the Atlanta Marriott Marquis in Atlanta, Georgia!

The year’s event will mark the Council’s 35th

Sell-a-bration. All the popular bundle registra tion options are back, and a pre-conference course, “Succeeding in the Luxury Market,” is all you need to jumpstart

your career in the luxury home market.

The opening keynote is wrestling champ turned international speaker, Ben Kjar. And the closing keynote is Jia Jiang,

author and owner of Rejection Therapy, a website that provides inspiration, knowledge and products for people to overcome their fear of rejection.

More details on speakers and the schedule can be found at CRS.com/ sell-a-bration

Statement of Ownership, Management and Circulation

The Residential Specialist (USPS# 021-699, ISSN# 1539-7572) is published (bimonthly) six times a year by the Residential Real Estate Council. Five issues were mailed in 2022. The annual subscription price is $29.95. The mailing address of both the publication and the publisher is Residential Real Estate Council, 430 N. Michigan Avenue, Suite 300, Chicago, IL 606114092. The publisher is the Residential Real Estate Council, and the Editor is Kimberly Cure. The owner of the publication is the Residential Real Estate Council.

There were 23,966 copies of The Residential Specialist published in September/October 2022; the average for the preceding 12 months was 24,248. The paid/requested outside-county mail subscriptions for the September/October issue were 23,866 [domestic + Canada]; the average for the preceding 12 months was 24,123. 10 free copies were distributed by mail in September/October and the average number of free copies distributed during the preceding 12 months was 11. Twenty copies of the September/October issue were distributed outside the mail (to classes, membership kits, etc.), and the average number of free copies distributed outside the mail for the preceding 12 months was 40. Sixty copies of the magazine were not distributed in September/October (office use, leftovers), and an average of 55 copies were not distributed from issues in the preceding 12 months. The percent paid/requested circulation in September/October 2022 was 99.5%, and for the preceding 12 months it was 99.4%.

When you hear the phrase “work your sphere of influence,” what does that mean to you as an agent?

Staying in touch. There are many ways to do that, like phone calls, pop-bys, newsletters, cards or a comparative market analysis, so they know their value. Those are a few of what I have done and had referrals from clients for 15 years.

Terry Simmons, CRS, Utah Key Real Estate, West Jordan, Utah

Read “The Seven Levels of Communications” by Michael J. Maher. That book gives the best answer to this question.

George Belleville, CRS, Keller Williams Select Realty, Ellicott City, Maryland

Get in front of your people. The people that, if given the opportunity, would work with you or refer business to you. Don’t hide behind your keyboard, cell phone or postcards. Face to face and voice to voice.

Greg Brockman, CRS, Coldwell Banker Mid-America, West Des Moines, Iowa

I think of scheduling coffee or lunch dates with people who

I haven’t been in touch with recently—with the genuine intention of catching up.

Kelli Greentree Hillmar, CRS, Long and Foster Columbia, Columbia, Maryland

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

Let them know you care about them, that you are there. It’s easy to sell a home or property. But are you there for the long haul? Are you a trusted advisor?

Service to others is what we are here for, and the most rewarding job in the world is helping people with their living spaces and their financial fitness.

Marta Paulson, CRS, A V West Real Estate, Boise, Idaho

I just think of it as a reminder to keep lines of communica tion open with friends, family and the people you have business relationships with already. Find something you can do to help them.

Anne Meczywor, CRS, Roberts & Associates Realty, Inc., Lenox, Massachusetts

Vetting For Success

When I suggest a CRS referral to a friend or family, I vet agents in several ways. I look at their experience, current listings, activity over time, online reviews and I call them. First, I am hoping that they actually pick up the phone, as I do. If I get a voicemail, I email or text—I look for a same-day response if not sooner, as that is what clients have come to expect.

So when my longtime friend asked for a referral in our hometown, Batavia, Illinois, I took to the CRS membership and reached

out to three REALTORS® in the western suburbs of Chicago.

Linda Price, CRS, with RE/MAX Naperville, immediately met all my prerequisites and more. She is engaging, extremely hardworking, cares about her clients and has vast experience and knowledge in the real estate industry. I am certain that she is the only REALTOR® that could have closed what turned out to be a very challenging transaction.

The home was purchased then unoccu pied for 10 years because the seller moved to an assisted living facility shortly after buying it. The seller deeded 1% owner ship to another party who had filled the home with everything and anything for a decade. It took weeks to clear, and after some refreshing, Price got it listed and quickly received an acceptable offer.

I am so thankful for all her efforts to sell this home. She went above and beyond to get it done. If all CRS referrals were agents of her caliber, we would all be grateful REALTORS®

WEST

Neighborhood expert with 30 years of experience. Melodee buys and sells as an investor and understands the Denver Market! First time buyers, move up sellers, and investors small and big are her specialty!

Tina Strasser, CRS, RE/MAX Realty Pros, Brookfield, Wisconsin

MO

Tina Strasser, CRS

Linda Price, CRS

The Benefits of Making a Vision Board

As we head into the new year, a fresh set of goals and resolutions may be topof-mind. Instead of simply making a list, try getting a bit more creative. A fun and stress-relieving way to visualize your goals and intentions for the new year is by creat ing a vision board. For years, people have been creating these boards to help them stay focused on what’s important to them. Here are five reasons why you should make a vision board this winter.

Helps you to prioritize your goals

While you’re making your vision board, think about the goals that you consider most important. That way, you’ll be sure that you’re tackling tasks that will have the most positive impact on your life.

Makes you more productive — Along with keeping you motivated, your vision board will ultimately help you become a more productive person.

Keeps you motivated — Constantly seeing a visual of the things that you’re working hard for can help you keep your eyes on the prize. You can check in on your board throughout the year to see how much progress you’ve made and what’s yet to be achieved.

Boosts your morale — Vision boards help to make your dreams feel much more tangible and attainable. You’ll feel better about your life circum stances when you know that change and elevation are truly possible.

Allows for reassessment — If in 6 months you look at your vision board and realize you haven’t been making the progress you had hoped for, you can reassess and refocus.

Now that you know why, here’s how to make your vision board.

1. Gather a poster board and physical copies of any images or words that represent your goals and dreams. You can cut out pictures from magazines and newspapers or search online and print out the images. Whatever works best for you—there’s no right or wrong way to get it done.

2. Glue these images onto your poster board and adorn it however your see fit.

3. Once you’ve finished and your board has completely dried, you’ll want to place it somewhere that you’ll view on a regular basis. This will help serve as a constant reminder that there’s still work to be done.

Gladyisheva/lemono

The

With

HOW MUCH ARE YOU WILLING TO SPEND?

on