The Residential Specialist, March/April 2021

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

IN DEEP WATER Reassuring buyers when it comes to homes in high-risk areas

26

See listing articles on pages 6 & 18

Creating compelling listings 18 + + A rise in new home construction 22 + Keeping your business afloat when relocating 31

CRS-056

MAR/APR 2021

Bear Printing

New PermaFlyer Riders Get One FREE Today!

TM

Regular Price as low as $20 Each

PermaFlyer Riders The solution to Empty Flyer Box Syndrome Printed onto eco-friendly sign material and designed to be used as a name rider below your main company sign replacing or augmenting your existing flyer box.

Save time, save paper, save money!

FREE PermaFlyer Offer!

TM

To Get A Free PermaFlyer Rider, Just Enter “pfr-promo” at Checkout (Free PermaFlyer offer limited to one per customer, up to a $20 value, shipping/delivery not included)

1 Sided Flyers - $.25 Small Postcards - $.15 No Mail • $.54 First Class Mail 2 Sided Flyers - $.30 Large Postcards - $.27 No Mail • $.66 Marketing Mail • $.79 First Class Mail Phone (503) 244.4738 ~ www.bearprinting.com ~ info@bearprinting.com

Mar/Apr 2021

1

Vol. 20, No. 2

Cover art: iStock.com/vicnt

18 22 26 31

FEATURES 18 Irresistible Listings: Agents who fail to make their listing a powerful one may miss out on the full value of the homes they’re selling.

By Michelle Huffman

22 Meet Your New Niche: New home construction has become an enticing option for buyers—and right now the market is surging.

By Andrew Conner

The Residential Real Estate Council crs.com

26 Disastrous Disclosures: Agents need to know and plan for what's required of them with regard to natural disaster disclosures.

By Matt Alderton

31 Making Moves: Millions of Americans relocate every year for a variety of reasons—and agents can still perform even if they're the ones moving.

By Kathleen Hagan

2

7

Mar/Apr 2021

CONTENTS

Vol. 20, No. 2

4 Aerial View Alex Milshteyn, CRS

6 Digital Channel: Online classes, tools listings and resources available from RRC. article

Market Pulse 8

9

ersonal Perspective: Akino Hayakawa, P CRS, Coldwell Banker Realty, Honolulu, Hawaii ideo Marketing: Agents should look V to YouTube to enhance their video marketing campaigns.

By Myrna Traylor

9

12 Sales Hurdles: Advice on how agents can better market homes that may be difficult to sell.

By Kathleen Hagan

16 A t This Stage: How to retain the best performers on your team.

34 Market Values Insights from industry data.

Specialized Knowledge

16

48

36 C ouncil Classroom: Learn to be a power lister with these tools.

38 I nnovations: The best software for agents to improve efficiency and increase profits.

40 Wide Angle: The new tax rules for 2021 that affect real estate.

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

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

EDITOR Kimberly Cure kcure@crs.com 800.462.8841

Advertising Manager Jim Beckwith 312.321.4447 bd@crs.com The Residential Specialist is

ASSISTANT EDITOR published for Certified Residential Amelia Garza Specialists, general members and agarza@crs.com subscribers by the Residential Real CONTRIBUTING WRITERS Matt Alderton Andrew Conner Kathleen Hagan Michelle Huffman Myrna Traylor 2021 BOARD OF DIRECTORS President Alex Milshteyn, CRS President-Elect Holli Woodward, CRS First Vice President Pam Ruggeroli, CRS Immediate Past President Richard Waystack, CRS Members Kim Cameron, CRS Sandy McRae, CRS Bruce Myers Greg Waldhour, CRS John Young, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny

Estate Council.

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

The Residential Specialist is published bimonthly by the Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices.

Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to RRC at the above address.

The Residential Specialist (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

PUBLICATION address changes to: MANAGEMENT The Residential Specialist,

c/o Residential Real Estate Council, 430 North Michigan Ave., Suite www.glcdelivers.com 300, Chicago, IL 60611-4092.

Publishing Manager COPYRIGHT 2021 by the Phil Malkinson Residential Real Estate Council. All Art Director rights reserved. Printed in U.S.A. Ivette Cortes

45 RRC Connect: Expand you network.

48 B alancing Act: How to harness your hobbies to generate leads.

crs.com

Exclusive deal for RRC Members: 50 FREE Lead Verifications Learn more at www.referralexchange.com/live/crs

Top Producers Don’t Have Time For Cold Calls.

You develop relationships. We introduce them.

Convert more clients with LIVE by ReferralExchange

REAL

READY

RIGHT

Using our proprietary lead verification system, we will determine if a lead is real and able to be connected to you

Our licensed team will contact your clients instantaneously, then nurture those clients until they are ready to move forward

We will connect you when the client is ready to talk, then you determine if they are a good fit

$795

ONE TIME

50 FREE leads verifications Lifetime personal referral network MONTHLY

$95 Per month $3 per lead verification

4

Mar/Apr 2021

Aerial View

From the desk of Alex Milshteyn, CRS, 2021 RRC President

It’s Easy to Find a CRS

“

I invite you to check out Find a CRS, update your profile, join one of the available groups and start utilizing all of the new features.”

The Residential Specialist trsmag.com

Photo: Scott Stewart

I

know members have Building a strong referral network proa strong interest in vides the opportunity to generate substantial building a reliable income. The referrals I sent out last year referral network. When generated a five-figure income for me. I’m I refer a client to a CRS, located in a college town, so I receive a lot of I know they will be in referrals from other college towns. For outgogreat hands with someing referrals, I tell all my friends throughout body who has taken the the country, "If you’re ever moving, please let same coursework as I me know so I can put you in touch with have and built a successa real estate agent in that local market." ful business.

A good friend of mine just moved for the The CRS designation seventh time since I’ve known her. Every is one of the most coveted time she moves, she calls and says, “Alex, designations available, I’m going to be relocating—who do you have with an unsurpassed at my new location?” I’ve reminded people educational program. As to think of me when they think of real a result, the Find a CRS estate, no matter where they are located. tool has been incredible Then I’m able to put them in touch with for my business because I’m able to easily somebody I trust. You don’t need too many find like-minded real estate agents throughfriends like that to make it very worthwhile. out the country who can assist my clients.

Another friend reached out and said: To further enhance the ability of RRC “Alex, we’re moving to a city in Oregon. members to assist their clients, we need Do you know anybody there? We’re not sure to continue to build a successful referral if we’re going to rent or buy. We’ve never network. So I am happy to share that been to the city; our employer is relocating significant enhancements and modifications us there.” I was able to find a great CRS, have been made to Find a CRS. and she gave them a tour of the community The new robust features that are integrated without any guarantee they were going to into the Find a CRS tool include: buy a house. She went above and beyond f Communication: A message center, notibecause she got the referral through Find fications, posts and feeds will enhance a CRS. But because she did such a good job many aspects of incoming and outgoing promoting her community, not only did communication, including announcements they buy a property, but they’ve decided no and updates from RRC. matter what, they’re staying there for good. f Community Groups: A community landing I prefer to refer to REALTORS® who have their CRS designation, are motivated and page will show posts from the active will treat their clients in a way that’s similar groups a user is associated with. Users to how I treat my clients. It’s a service that can view updates from a group as well you’re able to provide to your clients—to as share an update or post a referral. know that you can put them in touch with f Skill Endorsements: A Recommendations somebody you trust. and Skills section will list a user’s skills I invite you to check out Find a CRS, and endorsements and enable other users update your profile, join one of the available to endorse existing skills. groups and start using all of the new features f Badges and Ribbons: Badge icons appearthe enhanced tool provides to CRSs. TRS ing on the user’s profile page will include an RRC Certificate, awards, RPAC donations, state and national leadership roles and more. Ribbons will show attendance at Sell-a-bration, member endorsements and past leadership posts.

EXPAND YOUR REFERRAL OPPORTUNITY PLACE YOUR ONLINE DIRECTORY ORDER TODAY!

Purchase additional city listings, featured agent listings and banner ads today and increase your exposure on the number one place where CRS Designees find their referrals – the FIND A CRS Directory at CRS.com.

ADDITIONAL CITY LISTINGS Each CRS Designee is provided one complimentary listing in their office city, but you can dramatically increase your odds of being found on the online directory by ordering additional city listings for $35 each.

FEATURED AGENT LISTINGS Feature your agent listing at the top of city search results for $275. You may purchase multiple cities where your featured agent listing will appear.

BANNER ADS Be a featured agent for a specific city search with a banner ad. Create and upload your own banner for $275 or choose from a number of options already created by RRC for an additional $99.

PLACE YOUR ORDER TODAY! Log into your account at CRS.com and select My Dashboard at the top right.

Go to Advertising and choose Online Directory. There, you can make your purchases from the three options.

For questions or to place your order over the phone, call Customer Service at 800.462.8841 or email at crshelp@crs.com.

6

Mar/Apr 2021

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

Discover Essential Listing Strategies

T

he 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.

Check out the Council’s best-in-class education—visit CRS.com/learn to view the many available eLearning courses, including courses on preparing, pricing, marketing and selling your listings.

RRC eLearning Listing Strategies

Listing Strategies

Listing Strategies

Marketing and Selling Your Listing

Pricing Your Listing

Pre-Listing Preparation Examine the key elements associated with the listing process, and apply the best practice techniques associated with pre-listing preparation.

Credits: 4

Credits: 4

Credits: 2

Pricing:

Pricing:

Pricing:

$

100 Non-Member $ 80 Member

100 Non-Member $ 80 Member

$

50 Non-Member 40 Member

$ $

The Residential Specialist trsmag.com

iStock.com/PeterSnow

Employ the principles of targeted marketing, engage in internet marketing and create an effective listing description. Learn essential elements about the marketing and selling process, including communicating, providing feedback and countering seller objections.

Discover a variety of pricing strategies, competitive market analysis, absorption rates and techniques for collaborating with your seller to achieve effective market positioning and increase sales.

Mar/Apr 2021 2021 Mar/Apr

PERSONAL PERSPECTIVE Akino Hayakawa, CRS, is known for her positive optimism and describes herself as a “lifelong learner” who reads as part of her morning routine and listens to podcasts while driving.

In 2021, she is doing a deep dive with Tony Robbins courses.

PAGE 8

Market Pulse TRENDING HEADLINES AND IDEAS

Photo: Marco Garcia

STAY TUNED Your YouTube channel can archive your videos and make them easier for search engines to find.

PAGE 9

The Residential Real Estate Council crs.com

OVERCOMING OBSTACLES

RETAINING TOP TALENT

Sales hurdles can present opportunities if you think outside the box.

A robust onboarding process is key to retaining the best talent.

PAGE 12

PAGE 16

7

MARKET PULSE

8

Mar/Apr 2021

Personal Perspective

Profiles of people to watch

Akino Hayakawa, CRS

Coldwell Banker Realty, Honolulu, Hawaii

“

I know how important it is for people to gain knowledge of their industry to be successful.”

What prompted you to get your CRS Designation?

I became a REALTOR® in October 2014. I found out about the CRS Designation while attending the regional meetings here in Hawaii. While networking at the meetings, two brokers I highly respect, Lorna Gagnon and Jack Tyrell, shared the value of CRS with me. Lorna said, “Akino, the one designation you should strive for is the CRS,” and Jack said, “CRS has the best training, and the national convention, Sell-a-bration, is a game changer.”

I became a member right away in 2015.

What areas have you focused on with RRC?

Akino Hayakawa, CRS, achieved the CRS Designation in 2017.

She can be reached at akinoh@cbpacific.com or 808-226-7645.

chapter, I want to create an at-a-glance sheet for all new agents describing all the designations: CRS, CRB, CIPS, HIREC [Hawaii Real Estate Commission], SRES [Safe Routes to School], etc. The alphabet soup was mind-boggling as a new agent.

I always share the amazing training content CRS provides to its members and the power of the network for referrals. When I came back from my first Sell-a-bration in 2017, my BIC gave me an opportunity to present what I learned during our business meeting.

Many who heard it became members or earned their designation right away.

How's your

I started volunteermarket? ing for RRC in 2015 I am on Oahu, and because I liked the we get to assist an education it provides. array of clients: local When I changed buyers and sellers, careers and went transplants who are into real estate, I moving from other made a point of states or back to signing on with a the mainland, and brokerage that had international clients the best training who are mostly from programs. That was Asia and Canada. important for me.

Just like the rest As the incoming of the U.S., it is a president of the state seller’s market for

single-family homes.

Because Hawaii is a vacation destination, many condos in Waikiki are sitting on the market longer due to the pandemic.

Right now, of the 2,300 condos listed in the state, 700 are in Waikiki. For anyone who has always wanted to own a property in Hawaii—especially Waikiki—right now is a great time to buy; the current sale price to list price average is 93%. We have short-term rental condos that rent as frequently as daily, just like a hotel.

Investors buy them because of the maximum rental income potential. Buyers purchase second homes because of the maximum rental flexibility that allows them to generate rental income and utilize them for personal enjoyment between bookings.

What was one of your favorite recent RRC activities?

I was the education leader for 2018–2019, and in 2020 I spearheaded the Pau Hana, the happy hour event we have each year for all REALTORS® on the island during which we bring in sponsors and special guests.

This year was our

first virtual Pau Hana, and Howard Hughes, a developer, offered virtual tours of the new luxury condo developments in our area.

For 2019’s Pau Hana, I hired the owner of a Mexican restaurant to cater the food for the event. Being a transplant from California, I know how hard it is to find good Mexican food here. I was excited about connecting him with other REALTORS®.

Everybody loved it.

Are you involved in other activities?

I was the parent representative for the school community council for my younger daughter’s elementary school.

I connected the school with a local business, a boba teashop, Teapresso.

The shop set up a booth at the school carnival, and there was quite a line!

Teapresso got its name out to people in the community, and the school got a percentage of the proceeds. The principal told me that the owner has come by with free drinks for the teachers several times since the carnival. I love connecting people and giving back to the community. TRS

The Residential Specialist trsmag.com

Business solutions Video

Marketing

Stay Tuned

By Myrna Traylor

S

ocial media platforms have played an ever-larger role in how REALTORS® conduct business. One platform, YouTube, has become a real game changer for many.

Although REALTORS® are increasing their use of video on Facebook and Instagram, those posts can be limited in scope and duration. It is also difficult for potential clients to search for content or names they do not already know. In contrast, a REALTOR’s® YouTube channel acts as a video archive. And videos that are tagged with names, locations or other keywords are discoverable through search engines, such as Google.

iStock.com/daboost/Akrain

Jenna Koontz, CRS, uses videos to feature local businesses and to present real estate listings and information about her area.

The Residential Real Estate Council crs.com

The content question

REALTORS® who have capitalized on this valuable platform have created videos that suit their businesses and personalities.

Jenna Koontz, CRS, with Howard Hanna Real Estate Services in Youngstown, Ohio, serves up a variety of videos for different purposes. One set is directed toward people who might not be familiar with her area. “I like to feature our small businesses. It’s just been hard this year,” she says. “We tried doing some live events with masks and social distancing, and it just doesn’t have the same warm approach, so our videos emphasize real estate listings and are sales-heavy.”

Another set of videos focuses on common client questions. “For instance, my partner and I tackled, ‘Is it a good time to buy?’

Mar/Apr 2021

“

9

[ Video] has been really helpful in new construction because we can showcase all of the past properties that we’ve done.”

—Jenna Koontz, CRS

MARKET PULSE

10

Mar/Apr 2021

Video Marketing

Business solutions

Mario Romero promotes arts and entertainment nonprofits in his videos, and he provides tips on the Phoenix market.

“

We consider ourselves relocation experts, so we end each video asking viewers to call us to get more information on relocating to the area. We have a concierge service, and we’ll help them with whatever they need to relocate.”

and ‘Is it a good time to sell?’ says Koontz.

"We’ve tried to keep up to date with what’s going on in our area. Plus, if a prospect calls with a question and we have the answers in video format, we send that over to them as quickly as possible to get them the information they want.” Koontz also points out that these videos have legs; even if a viewer isn’t currently in the market, they remember the information—and Koontz’s name—when they are ready to buy or sell, or they pass a link along to a friend.

Mario Romero, a 30-year veteran agent in Phoenix with the Melcher Agency, likes to promote arts and entertainment nonprofits in his videos, as well as provide tips on the Phoenix market. Also, he finds YouTube to be a great way to tap into a younger buyer base. “Younger people tend to do video,” he

says. “I don’t mean people dismiss emails, but they will click on the video. Also, video gives an insight as to who you are. I’ve heard many agents say they think they look horrible on video, and I ask, ‘Are you going to surprise [the client] when they meet you?

You look how you look.’”

Flint Adam, CRS, broker with Beacon Real Estate in Nolensville, Tennessee, has an edge when it comes to his YouTube videos: He was a broadcast journalist for nine years before moving into real estate.

“I have a professional discipline from the news world of shooting video and crafting a story,” he says. “I put a little bit of a different spin on the videos for special properties and something more basic for a neighborhood house, but the intention is always to guide the viewer through the home. I make it more than just pictures and music because you’re introducing somebody to a home, a lifestyle and a community.”

Adam says his videos are a standard offering to his sellers. “I create a video for every listing regardless of the price point or the house. I’m sharing them across every social media channel I can, but YouTube is very important because it’s the No. 2 website in the world. It’s part of my value proposition for sellers; I’m going to put something together for you that’s going to be unique, professional caliber and shared everywhere.”

iStock.com/michal-rojek/Akrain

—Missy Yost, CRS

To introduce viewers to a home, lifestyle and community, Flint Adam, CRS, puts together unique videos with a professional polish.

The Residential Specialist trsmag.com

Mar/Apr 2021

11

MAKE YOUR SPECIALTY THE STAR

Another advantage for REALTORS® using YouTube to reach potential clients is the ability to focus on a specialization you’ve mastered. Kim Ward, CRS, at Horizon Real Estate in San Diego, started handling probate sales in 2005 and launched her YouTube channel in 2018. With the goal of posting one video every week, Ward keeps a list of topics she wants to cover for any potential clients, from understanding probate timelines to living trusts to making window valances. “I give them to my daughter, who’s my social media help, and she comes up with the keywords.

Then I write what I’m going to talk about, set up my

iPad in my home office and record. Then I send my raw video off to my editor in the Philippines.”

Ward has a second YouTube channel for REALTORS® who want to learn how to help clients with probate sales. As she says, “the riches are in the niches.”

Kim Ward, CRS, creates videos on niche topics each week and gets help with social media keywords and video editing.

and it’s like you hear crickets coming back at you. Nobody can call you, they won’t text you, they might email you, but for some reason these videos have really resonated to the point where we have people contacting us via email or calling us on a daily basis.”

Adam concurs. “At the end of the day, videos are just a great opportunity to show professionalism and expertise. When people see them, they remove that first hurdle of speaking with a stranger.”

“My very top tip is to be authentic,” Yost says. “Don’t be gimmicky. Tell the good, the bad and the ugly because that’s how people learn to trust you, that’s what gets them to call you and that’s what converts into sales.” TRS

Missy Yost shows off gated communities in her videos to demonstrate that type of lifestyle.

She finds videos often resonate with potential buyers more than other modes of communication.

A winning formula

Missy Yost and her team, the Yost Group at eXp Realty in Hardeeville, South Carolina, have had great success attracting clients with their YouTube videos. Her market is brimming over with gated communities, so her videos have a lifestyle approach that shows potential buyers what life would be like in the Bluffton communities near Hilton Head.

“First, we show the location we’re talking about on a map, then we break down what there is to do in the gated community,” says Yost. “We’ll show the lifestyle amenities and social clubs available to homeowners.

Then we’ll go into floor plans or the resale value of the homes.

“At this point we have about 17,000 views.

We have sold so many properties through these videos that they have completely replaced all of our paid advertising, including our paid Zillow ads,” Yost adds. “I think a lot of it has to do with the fact that we’re very authentic, and we don’t try to be salesy—we are just your next-door neighbor telling you about the community.”

The familiarity factor

“It’s all about getting people to like, know and trust you. When they watch the videos, we are able to make them feel like we’re approachable,” Yost explains. “I cannot tell you how many times in the past I have sent out emails or just tried to attract business, The Residential Real Estate Council crs.com

Check out the Council’s YouTube page at youtube. com/residential realestatecouncil.

MARKET PULSE

Mar/Apr 2021

Sales Hurdles

Strategies to find buyers

Overcoming Obstacles

By Kathleen Hagan

W

hen it comes to selling a home, REALTORS® may face a variety of challenges—from outdated design, infestation and street noise, to a seller’s quirky collections and unwillingness to invest in staging. And while these sales hurdles can be daunting, they also present opportunities for CRSs who are willing to think outside the box and go the extra mile to get the job done.

Here are six strategies to achieve a sale on a hard-to-sell home.

1. Don’t hide potential dealbreakers.

If a home’s design is outdated, reflect it in your listing photos. “If the kitchen was last redesigned in 1975, we’re not going to hide that,” says Thomas J. Nelson, CRS, with Big Block Realty in San Diego. “We don’t want people coming to the house, seeing the outdated kitchen and then immediately turning around and walking out the door because they wanted something more updated. We want them coming to the house knowing the kitchen is in that condition and wanting to see it anyway.”

Many buyers will want to make updates to a property with outdated design, so a savvy CRS should write a listing that highlights the opportunity for buyers to make the space their own. Additionally, the asking price of the home should reflect the fact that some work needs to be done.

2. Put on your creative cap.

If a property isn’t selling, sometimes all it takes is a little outside-the-box thinking.

Nancy Shaw, CRS, with Keller Williams Realty in Albuquerque, New Mexico, was

iStock.com/retrorocket/bortonia/appleuzr

12

The Residential Specialist trsmag.com

Mar/Apr 2021

13

A savvy CRS should write a listing that highlights the opportunity for buyers to make the space their own.

If you find these tips helpful, follow us on Instagram @thisisrrc for more helpful strategies on thinking outside the box when it comes to your business.

The Residential Real Estate Council crs.com

MARKET PULSE

Mar/Apr 2021

Sales Hurdles

Strategies to find buyers

NO BUDGET FOR STAGING? NO PROBLEM

“

Telling the seller that the dead deer on the wall is offensive to some people will not elicit a positive response.”

— Nancy Shaw, CRS

able to close a sale on a house that had been on the market for more than a year with another broker—without lowering the list price—by finding a creative solution to a problem that was puzzling potential buyers: a house with two front doors.

“Neither one was a great front door, but I had to make a decision and then commit to my solution,” Shaw says.

She got three large potted plants to close off the front door that led into the home’s dining room. Then she had her landscaper add two stone steps—for a grand total of $100—to make the front door that opened up into a small bedroom the primary entrance to the home. She then staged that bedroom as a foyer.

Even though this solution resulted in the home losing a bedroom, it turned out to be a good one: The house went under contract that weekend, and the seller wrote a glowing Yelp review.

3. Make small investments.

Minor improvements and fixes can go a long way toward closing a sale. “I always recommend buyers do a pre-MLS inspection,” says

If sellers do not want to invest in staging, Nancy Shaw, CRS, with Keller Williams Realty in Albuquerque, New Mexico, recommends inexpensive solutions for REALTORS® to make a home more appealing to buyers: f Put fresh or plastic flower arrangements on the kitchen counter. f Hang towels in the bathroom. f Utilize a small water feature that can create background noise for properties located on busy streets.

For homes that are filled with a seller’s quirky possessions—like taxidermic animals or extensive figurine collections—Shaw advises a gentle approach to making the space more attractive to buyers. “Gently remind the seller that that dead deer will look great in their new home, and packing it up ahead of the first showing will only move things along,” she says. “Telling the seller that the dead deer on the wall is offensive to some people will not elicit a positive response.”

Nelson. That way, when red flags come up, he is able to strategically evaluate what his sellers should repair and what they should leave for the buyer before putting the house on the market.

“I look at what kinds of fixes will have the biggest impact on property value and what makes the most sense to fix for any buyer—issues that scream broken or unsafe—versus things that only some buyers might want to fix,” Nelson says.

4. Set the stage.

Staging is critical—especially when a home is vacant and might have unique features or an odd layout. Potential buyers sometimes struggle to envision how a space can be used. Investing in expert staging can help eliminate this hurdle.

For example, Nelson had clients who were trying to sell a condo—in stunning condition and in a popular San Diego neighborhood—but they weren’t getting any offers after three weeks on the market. The problems, he decided, were that the condo was vacant, had an odd-shaped polygonal floor plan and one wall was painted bright The Residential Specialist trsmag.com

iStock.com/retrorocket/Chinnasorn Pangcharoen/appleuzr

14

Mar/Apr 2021

15

blue. Nelson recommended that his clients property makes a huge difference,” she says. pull the property from the market, paint “I can talk to the positive attributes of the the wall a neutral color and stage it. “At property, and that helps people overcome first, they were hesitant to spend the extra their reservations.” money [on staging],” he says, “so I told them What’s more, Shaw notes that she pays I would pay for these extra expenses if it close attention to what she wears and didn’t go under contract.” what kind of car she parks in the driveBut Nelson’s advice made all the differway when potential buyers show up. ence, and the sellers received multiple offers “All of these little details play a role in within a week after putting the staged the overall experience,” she says. condo back on the market. “Sometimes you just have to call an audible while you’re on 6. Listen to feedback. the market and put your money where your “Even the most seasoned REALTOR® mouth is,” he says of this experience. needs to listen to feedback to realize what little things might be tripping you 5. Show up for showings. up with a particular listing,” Shaw says.

“You get feedback very fast once you get In Shaw’s market, it’s common for her as on the market. If the property isn’t the listing agent to meet potential buyselling, you need to listen and make ers and their agents for showings. “In my adjustments accordingly.” TRS experience, being there while they see the

MARKET MOMENT In its Q4 2020 U.S. Home Affordability Report, ATTOM Data Solutions reported that median home prices of single-family homes and condos were less affordable than historical averages in 55% of counties. Median home prices in Q4 2020 were up at least 10% from Q4 2019 in 79% of the counties included in the report.

Rising wages and falling mortgage rates helped keep median home prices close to affordable for average wage earners. But home price appreciation outpaced average weekly wage growth in the fourth quarter of 2020 in 92% of the counties analyzed in the report. With prices rising faster than earnings, major homeownership expenses consumed 29.6% of the average wage—above the 28% benchmark lenders prefer.

Todd Teta, chief product officer, ATTOM Data Solutions, says: “Home prices have continued rising throughout 2020, and the housing market has remained remarkably resilient in the face of the brutal economic fallout from the coronavirus pandemic.

The future remains wholly uncertain, and affordability could swing back into The Residential Real Estate Council crs.com

positive territory. But for now, things are going in the wrong direction for buyers.”

A low supply of entry-level homes along with low mortgage rates have driven prices higher. The S&P CoreLogic Case-Shiller Home Price Index is nearly 25% higher than its previous peak in 2006.

“Housing affordability, which had greatly benefited from falling mortgage rates, is now being challenged due to record-high home prices,” writes Lawrence Yun, Researchers found chief economist at NAR, in a recent that owning a home was report on existing-home sales. less affordable than the “That could place strain on some potential consumers, historical average across 55% particularly first-time of the 499 counties analyzed. buyers.” TRS

That is up from 43% of these counties last year and 33% three years ago.

Percent of counties analyzed

iStock.com/Aleutie

Are Homes Affordable?

60%

Source: Market Watch

50

%

40% 30% 20%

33%

43%

55%

10% 0%

2018

2019

2020

MARKET PULSE

At This Stage

Mar/Apr 2021

Business solutions for CRSs at all stages of their careers

Retaining Top Talent

H

ave you just launched your own business and need an advanced team to help you grow? Perhaps you have been an independent broker for some time but are eager to revamp your staff. Well, there are a few things to keep in mind when it comes to hiring talent.

You not only want to make sure you are hiring the best fit for your business, but that you have a robust onboarding process in place to retain them once they say yes.

According to Craig Wilburn, CRS, CEO and team leader of Team Dynamo in Gainesville, Florida, to not only recruit but also retain the best talent, you must first know what you are looking for.

Make sure when you hire someone, they match your business’s vision, mission and core values.

One way to do this is to utilize the DISC profile, a behavioral assessment that focuses on four personality traits: dominance, inducement, submission and compliance.

Many companies have implemented this test to better learn the characteristics and work habits of their employees and candidates, and to make it easier to assess the behavior of their potential customers.

Another important aspect is: Do not compromise. Do not hire someone simply to fill the position the fastest. Take the necessary time to weed through your applicants to ensure you find the best fit.

Wilburn attributes his success and growth to the meaningful relationships his team has built among clients and within the community. According to Wilburn, here are eight tactics to keep top talent: The Residential Specialist trsmag.com

iStock.com/LeoWolfert

16

Mar/Apr 2021 1. Know Your People Discover your employees’ values and goals.

Have them create vision boards and help them put plans in place that will lead them to success.

6. Always Add Value Offer opportunities outside of work. This can be education, volunteering, you name it! See your staff as more than just REALTORS®.

Appeal to their interests outside of the office.

2. Set and Keep Expectations Clarity is power. Communicate clearly and early what an employee's role is, so there is no confusion once they get to work.

7. Reward Behavior and Performance Employees need to know they are appreciated. Go the extra step in acknowledging a job well done when you see it. Also, put bonus incentives in place. This makes completing tasks that much more enjoyable.

3. Create, Maintain and Enhance Culture “Culture is the glue; it literally keeps us together,” says Wilburn. A good company culture has been proven to keep a happy employee from leaving, regardless of pay and growth. Work to perfect your business culture to properly suit you and your team’s vision.

8. Be More Than Just the Job! Focus on the whole human. As a boss, you must learn how to navigate the life and leadership balance wheel. Do not be seen as someone who just signs the paychecks. Let your team get to know the human inside the suit. Be someone they can trust and rely on.

4. Run Your Business on Systems Better systems equal less stress and confusion, and they can offer everyone accessible solutions.

It is all really quite simple. To keep top talent, you must look at your employees as people with their own goals and desires.

“Most top-talent individuals have dreams 5. Promote Accountability bigger than just making money,” says Have weekly check-ins with your employees Wilburn. “Therefore, find ways to add value during which you engage, assist and assess to their lives and dreams, and you will retain hardworking, ambitious top talent their work. This keeps them on task and who will push your business forward.” TRS addresses issues—if there are any—early.

17

Key to Success According to Neal Oates Jr., CRS, president & CEO of World-Renowned Real Estate, every business should have its own pillars of success that align with its values and mission statement, and are embodied in its agents and company.

The Pillars of Success 1. Excellence 2. Service 3. Leadership 4. Growth These pillars help set clear expectations for an agent, aide in recruiting, cut your work in half with proper onboarding, and help create and shape your company culture.

WHAT DOES DISC MEAN?

The DISC behavioral assessment measures interpersonal behavior and classifies how people interact in terms of four personality styles.

ACTIVE

iStock.com/filo

DOM

NESS S U TIO

CONSC IEN REFLECTIVE

f Outgoing f Enthusiastic f Optimistic f High-spirited f Lively PEOPLE FOCUS

STEADY

ST

f Analytical f Reserved f Precise f Private f Systematic

DY

CONSCIENTIOUSNESS

D I C S

TIA L

TASK FOCUS

IN

INFL U

ANT

EN

f Direct f Results-oriented f Firm f Strong-willed f Forceful

INFLUENTIAL

EA

DOMINANT

f Even-tempered f Accommodating f Patient f Humble f Tactful Source: Disc Profile

The Residential Real Estate Council crs.com

The Council has multiple resources for retaining top talent and other independent broker challenges—check them out at CRS.com/careers/ rrc-human-resourceconsulting.

Mar/Apr 2021

IRRESIST

By Michelle Huffman

Your listing is your first showing.

Agents who fail to make it a powerful one may miss out on the full value of the homes they’re selling.

“Many agents rely on someone else’s standard, set by templated flyers, brochures and websites, and it becomes a sea of consistency,” says Michael Repka, CRS, CEO of Palo Alto, California-based Deleon Realty. Buyers zip through listings that all look the same, dimming a home’s attraction and shortchanging its potential.

But CRSs who get creative with listings say these homes attract attention and sell for more than originally imagined. You don’t have to be a poet or graphic designer to write and package a stunning listing. You need an anchor.

“When I go into a property, I’m looking for the anchor point, the crown jewel of the property. That’s where I’m going to plant my flag and then circle outward from there,” says A.J. Heidmann, CRS, at McEnearney Associates, Inc. in Arlington, Virginia.

The anchor can be something particularly spectacular, but it doesn’t have to be. It could be a unique-for-its-market feature, an underappreciated use for the property or the home’s distinctive story.

Here are four different approaches that utilize an anchor to build a listing that signals a home’s real value.

The Residential Specialist trsmag.com

iStock.com/Jag_cz/bortonia

18

Mar/Apr 2021

19

IBLE listings

iStock.com/Alex_Bond

1

UNIQUE underscore THE ANCHOR

Sell a standout feature or unique aspect of the property.

This approach works best with homes that have an obviously unique feature, particularly one that you can highlight visually and make unforgettable enough to build your marketing around.

This is Repka’s expertise: With his high-quality film production, Repka films sweeping panoramas and tightly focused details, and then splices them together with something that is eye-catching that will highlight the property.

For example, in one listing his focus is on the distinctive indoor pool. He shows a mermaid swimming in the pool, her bright red tail reflecting the loud colors that accent the furniture and walls of the otherwise muted home. The video isn’t about the mermaid moment, but it sticks out and so does the home.

Similarly, when selling a Joseph Eichler home, he zeroed in on the architect’s cult following to sell the home, building a contact base from fan groups and interviewing a leading Eichler expert about the home’s finer details. He could have sold it as a lovely, slightly retro home, but this move brought more fervent buyers, one of whom paid $1.3 million over the asking price.

The Residential Real Estate Council crs.com

 Michael Repka, CRS, uses creative strategies to highlight eye-popping features of his listings. In the top photo, he swims with a mermaid to highlight a home's indoor pool. In the bottom photo, he harnesses the cult following of famed architect Joseph Eichler to find a fervent buyer base.

20

Mar/Apr 2021

2

DIAMOND in the rough THE ANCHOR

Find the best and highest use of the property, and highlight it over the usual fare.

 This home in Vista, California, doesn't seem like anything special at first glance. But Melanie Hurwitz, CRS, was able to highlight the property's unique zoning, acreage of flat land for future construction projects and multiple garages to find the perfect buyer.

 A.J. Heidmann, CRS, likens the art of real estate listings to storytelling.

While some aspects of this home may be inconvenient, he calls attention to this Centreville, Virginia, property by accentuating the beautiful outdoor space.

THE ANCHOR

S tring together the elements of a property that tell the home’s story— one that appeals to a specific buyer.

Heidmann compares this listing-writing approach to writing for an online dating service (which is how he met his wife).

“You don’t write your ad to appeal to everyone; you write it to appeal to the kind of person you want to be with,” he says.

He starts by considering the most likely buyer for each property and how he can craft a listing description that will ignite

that person’s interest. So, a quiet, suburban home becomes “perfect for reading books with your windows open.”

In one listing, Heidmann’s anchor is the backyard. The owners put $600,000 into it, but the investment pushes the home above the neighborhood’s average price point, a challenge because the commute to Washington, D.C., is over an hour. So, Heidmann puts the backyard—the “jewel” that lies behind the “quiet facade”—out front and walks buyers through the “commanding view of the expansive grand terrace,” before going into the interior layout that “provides the ultimate in flow on a daily basis.”

He creates a romantic picture of a home that has “so much space and so many entertainment options, you may never leave,” selling the entrepreneur, consultant or executive who has gone permanently remote on the home’s luxurious living space, functional office and entertainment venue all in one.

The Residential Specialist trsmag.com

iStock.com/Jag_cz/Evgeny Gromov/Alex_Bond

3

LOVE connection

Mar/Apr 2021

Sometimes, polishing a hopelessly little to make it seem worth the bland or problematic property $800,000 they wanted for it. into something beautiful may be So she pitched the property’s a lost cause. Instead, CRS agents “endless possibilities” created by like Melanie Hurwitz with its unique zoning, flat five acres, Allison James Estates & Homes multiple garages and view. The in Vista, California, talk with buyer, who paid the hefty list homeowners, dig around properprice, owned a car and video ties and dust off county records. business, so the garages and One of her listings featured outbuildings for storing video “a big house, but they didn’t equipment were perfect.

Hurwitz has done similar keep it clean,” she says, and things with other properties. the homeowners wanted to do

4

21

Rather than hiding a home’s Pepto Bismol pink color, she featured it, transforming the medicinal color into “breast cancer awareness pink,” and donated part of her commission to the Komen Foundation. For another listing, she discovered a dilapidated home was part of a three-lot parcel. It became the “fix me or burn me” property, and the listing focused on the value of the lot.

elevated MAKEOVER THE ANCHOR

I nvest in minor upgrades to elevate a bland home or fixer-upper that needs work and generate a major payoff.

This approach is for those homes you otherwise wouldn’t quite know how to pitch, but you know they have high potential for upscaling. Scott Furman, CRS, broker/owner of the Scott Furman Realty Group outside Philadelphia, tackles these listings through prep work so thorough that “most of the marketing is done before it even goes on the market.”

Furman relies on highly qualified stagers who really understand how to thread a mood across multiple rooms, deep cleaning in and out, appropriate landscaping, excellent photography, 3D tours and floor plans, and an assistant who can translate his walkthrough notes into the right description.

To create the narrative, he walks through the home as if he’s an excited buyer. Those details show up in the listing, where Furman imagines “cold winter nights soaking

 Scott Furman, CRS, has had success marketing even the most mundane homes. For this Radnor, Pennsylvania, property, he chose to highlight the incredible deck area and imagined what homebuyers could look forward to as owners.

in the hot tub on the multilevel deck while stargazing and sipping wine.”

What the total package brought to the table was an extra $125,000. Based on his original assessment of the home and market data, he expected to list it between $325,000 and $350,000. But the home went on the market at $472,500 and sold for $475,000.

With these creative listing approaches that flow from anchor features or concepts, you may find your homes selling for more than you thought possible, and your reputation in the community growing. TRS The Residential Real Estate Council crs.com

For more effective and efficient ways to sell, check out the course Creating Listing Abundance at crs.com/learn.

22

Mar/Apr 2021

MEET YOUR

new The Residential Specialist trsmag.com

Mar/Apr 2021

By Andrew Conner

“There has always been this desire for new homes,” says Shawn O. Reilly, CRS, agent at Better Homes & Gardens Real Estate in Alexandria, Minnesota.

“It might cost you more money, but being able to create something from the dirt is a really cool process. That’s one of the most compelling things about doing new construction: seeing the structure rise from nothing.”

The new construction market is surging, as marketing research firm Zonda reports that 90% of builders raised prices on new construction homes between September and October 2020. If you’re an agent with little experience in the new construction space, you might be wondering how you can break in. Here are some tips to help you succeed in this market segment.

Make time to meet

The biggest hurdle to developing a successful business selling new construction homes is creating meaningful relationships with builders.

“The first and easiest thing you can do is pick up the phone and start calling,” says Mark Ewell, REALTOR® and builder representative at Maximum Elevation Realty in Colorado Springs, Colorado. “As a builder rep, if somebody gives me a call or comes into my office, whether it’s a new or established agent, and they say, ‘I want to get to know you,’ I love that. I’ll take 30 minutes or an hour out of my day to talk with them.”

niche The Residential Real Estate Council crs.com

“

It might cost you more money, but being able to create something from the dirt is a really cool process.”

— Shawn O. Reilly, CRS

iStock.com/Feverpitched/cnythzl

Even before the coronavirus pandemic put unanticipated stress on the housing market by reducing inventory and increasing prices, new home construction was an enticing option for many prospective homebuyers.

23

24

Mar/Apr 2021

SWITCHING PERSPECTIVES

90

%

of builders raised prices on new construction homes between September and October 2020.

Source: Zonda

regular schedule. “What you gain is an office with office hours,” says Ewell. “You might also be working as an employee with benefits. Maybe your lifestyle is changing and you need to be home at 6 p.m. and not have to answer the phone.”

On the other hand, Ewell says that for agents who like to “be their own boss,” it may not be a good fit. “You have regular hours and benefits, but you have to do things like request time off. As an agent, you have more control over

April Neuhaus, managing broker at Neuhaus Real Estate in Loveland, Colorado, echoes Ewell’s comments. “You need to stop in and visit them, and drop off chocolates or some other type of treat,” she says. “It sounds like a silly thing, but you want them to know your name and see it on a regular basis. If the builder looks at you as someone who is active, has buyers and understands the value of new construction options, that is a benefit to them as well as to you.”

“I have had very positive experiences with all of the builders I work with, and, for me, it’s because I love to market their product for them,” says Michael Bondi, CRS, with Urban Nest Realty in Las Vegas. “If I’m able to establish a good relationship with the builder by giving them free exposure on my website, that’s a positive experience for both of us. And then when I bring them buyers, not only am I getting paid, but I’m showing that I can produce results.”

Know the details

To work with buyers and market new construction homes as Bondi suggests, you need to know the details of the community in which you’re working.

When introducing himself to a new builder, Bondi always asks for detailed information, such as plot maps, measurements and subdivision layouts, among others.

“I’ll ask permission to take and use pictures and video on my website,” says Bondi. “I’ve had builders tell me they will go on my site to look at the competition because I have

your schedule than you do as a builder’s rep.”

Ewell also notes that larger builders often require builder reps to “put their license on ice” if they have one, which means you aren’t able to act as a REALTOR® while working as a builder’s

rep. “This is frustrating if someone who comes to your office is selling a house,” he says. “But builders try to avoid any appearance of competition or conflict of interest.”

access to information other people don’t have. And, obviously, I’m doing this to generate clients, but I also want to be seen as the expert in that area. It’s so that I know what I’m talking about and I can say to clients, ‘I’ve walked these models.’”

Neuhaus suggests putting together as much information as you can when you first start to take an interest in a particular community. “It takes some digging,” she says. For example, she recommends agents collect standard inclusion lists, lot maps, floor plans, incentives lists and preferred lenders, and organize them together in a folder and other electronic formats. “You have to educate yourself, and if you take the time upfront to do that, you will be an invaluable resource to your clients.”

Show your value

In addition to educating yourself about the new construction communities you want to do business in, it’s also important to educate your clients. Neuhaus explains that many buyers won’t immediately understand why an agent is needed for a new construction home.

“It is absolutely a myth that buyers will get a better deal if they work with the builder without an agent,” says Neuhaus. “The basic reasoning that I find gets through with my buyers is: A builder is constantly trying to raise their prices. As their inventory sells and they have a base of sold properties showing an established price point, they automatically increase prices since they can The Residential Specialist trsmag.com

iStock.com/Feverpitched/cnythzl

Mark Ewell, REALTOR® and builder representative at Maximum Elevation Realty in Colorado Springs, Colorado, says that being a builder rep has advantages and disadvantages. Key among the advantages is a more

Mar/Apr 2021 have appraisers factor in appreciation and don’t do is go to the structural and electrical ultimately get loans approved for the higher walkthroughs. I’ve always been fascinated amounts. So if a buyer thinks a builder is by construction, and I love taking photos of going to give them a better deal and knock the dirt and the studs. The clients not only down their price without a real estate agent, get a good historical record if they want to they’re out of their mind.” eventually sell the house, but I’ve also had Beyond negotiating for better deals from clients refer to the photos for stud and wirbuilders, another way Neuhaus demoning placements when doing other work.” strates her value to clients is through her engagement in the process. For example, Leverage your as part of her usual process, she recently connections suggested a client get an independent Breaking into the new professional home inspection done before construction space can be closing—the builder said it was unnecessary intimidating, and more so because the city already inspected the propif you do it alone. Neuhaus erty. The buyer paid for the independent recommends taking inspection and the inspector found a slew advantage of colleagues and connections in of issues, including an attic that wasn’t fully the industry. “If anyone is thinking about insulated. “That’s something we wouldn’t branching into this and is scared, there’s have seen on a walkthrough,” she says. “And nothing wrong with partnering with it’s that kind of thing that a good buyer’s someone in your office who has experiagent will do—push for their clients’ rights.” ence,” she says. “Start a relationship with Being engaged with your client doesn’t a mentor to help get you through your have to solely take the form of protecting first couple transactions, and after you do their rights. For Shulanda Franks, CRS, that you’ll feel more confident doing the qualifying broker at IXL Real Estate North legwork yourself. Give the mentor a cut for Central in Mobile, Alabama, it also means participating, and you will never regret it.” constantly staying abreast of what is hap“I’m training a new agent right now, and pening at the property.

I told her: You need to think outside the box,” says Bondi. “Don’t just copy exactly “Don’t leave your client in the hands of the what I’m doing because it may not work builder or the builder’s rep,” says Franks. for you. I suggested she find a brand new “You should be actively involved. When a community and introduce herself to the house is under construction, I’ll check in sales agent and ask, ‘Hey, can I do a video for with the builder at least every few weeks, as you? Can I do a blog for you? Can I do this or well as with the buyer. I’ll also stop by and that?’ Because at some point when that blog take photos to send to the buyer. Even if the or video gets attention, the client isn’t going buyer is riding past the house daily, they’re to call the builder, they’re going to call you.” probably not always thinking about capIf you don’t have an industry connection turing the moment, such as when the roof to help you through the process, Reilly is being installed. If you’re not in constant suggests taking on a transaction or two contact, it can be very easy to basically serve and learning the process at your own speed. your buyer up to the builder and just show up for the paycheck. You want to stay on the “Start small,” he says. “Start with a boutique builder that only does one home a year or a scene and stay relevant, so you can show semi-retired builder, or work with a family your value.” Franks notes this is also a good member who wants a new construction strategy for referrals. When your buyers home and go through the process that way.” see you’re engaged, they are more likely to If you are interested in getting into new recommend you to others. construction, Neuhaus summarizes the Similarly, Bondi goes the extra mile appeal: “You will be able to joyfully leave the for his clients by documenting the entire world of ridiculous bidding wars and frusprocess. “They get to see, over that six-totrated buyers and just sit down and pick out eight-month period, something rise from a lot, floor plan and color preferences, and the dirt into an actual house,” Bondi says. have an exciting, happy experience.” TRS “Something I do that a lot of other agents The Residential Real Estate Council crs.com

“

25

It is absolutely a myth that buyers will get a better deal if they work with the builder without an agent.”

— April Neuhaus, managing broker

For a deeper dive into the new construction niche, The New Construction Game webinar is available at CRS.com/learn.

26

Mar/Apr 2021

By Matt Alderton

When you live in southeast Texas, it feels as if Mother Nature is your best friend.

The warm weather is a constant hug, the gorgeous Gulf of Mexico a loyal companion and the spectacular beaches a bottomless source of entertainment. But even the best of friends fight sometimes, says local REALTOR® Julie Sanders, CRS, broker associate at SETX Properties in Nederland, Texas.

Sanders and her husband established their brokerage, The Neil & Julie Sanders Team, in 2007, just two years after Hurricane Rita ravaged the area in 2005. Then came Hurricane Ike in 2008, Tropical Storm Harvey in 2017 and Tropical Storm Imelda in 2019, after which was yet another local disaster: a chemical plant explosion in Port Neches, Texas.

“It was Thanksgiving, so we left a raw turkey and two cooked pies in the refrigerator and went to Houston,” recalls Sanders, who was evacuated along with 60,000 of her neighbors. Homes near the plant, she says, suffered

cracked swimming pools, downed fences, caved-in ceilings, smashed windows, broken rafters, loose bricks, blown-out doors, split Sheetrock and more.

Residents were still recovering in summer 2020 when two more hurricanes struck southeast Texas in rapid succession: Hurricanes Laura and Delta.

“It seems like there’s just constant construction here because of disaster relief.”

It’s a lot for one region to take.

Still, people continue to live in southeast Texas because of its many treasures. Like residents, the real estate market is resilient.

Defiant, even. But it is not naïve. Among the many reasons homes in southeast Texas continue to sell, Sanders suggests, is because local REALTORS® have what it takes to reassure risk-averse buyers: education and ethics.

The Residential Specialist trsmag.com

Mar/Apr 2021

27

“

You really only have to put on the seller’s disclosure what you know to be factual.”

iStock.com/tiero/GreenTana

— Kasey Rabar, CRS

The Residential Real Estate Council crs.com

Mar/Apr 2021

Disclosure do’s and don’ts

Digital Dilemma: Should Real Estate Websites Show Disaster Risk?

Because they make home searches easy and informative, homebuyers flock to real estate websites like Redfin, Trulia and Zillow. Citing inaccurate home valuations and incomplete, out-of-date listings, however, many REALTORS® worry that they’re more hurtful than helpful. Now, there’s a new reason to either love or loathe some real estate websites: In August 2020, Realtor.com® became the first major real estate website to publish information about flood risk for the homes that appear on its site.

“Historically, determining a property’s flood risk was an onerous process,” Realtor.com® senior vice president of product Leslie Jordan said in a press release. “By surfacing this You can see a home's on information upfront, consumers potential flood risk the Realtor.com® app. can avoid surprises and have all the information they need to make informed decisions and feel confident about the homebuying process.”

But the same information that can help buyers could hurt sellers by devaluing their homes, critics worry. In fact, a 2020 study by the National Bureau of Economic Research found that flood risk reduces property values by an average of 2.1% nationwide.

It estimates that there are at least 3.8 million floodplain homes in the United States that are discounted by 0.6% to 4% because of their flood risk.

It might sound counterintuitive—humans’ first instinct is to hide flaws rather than expose them—but fibbing about a home prone to disaster is like putting lipstick on a pig: Sooner or later, buyers will see it for what it really is. So you might as well tell the truth from the start, Sanders says.

In fact, you should assume that you’re legally bound to do so, advises New Yorkbased real estate attorney David Reischer, CEO of LegalAdvice.com. “It is necessary to fully disclose all information important to the sale and that may affect a buyer’s decision to purchase,” he says. “Real estate professionals have a duty to disclose hazards, defects and other various factors or otherwise risk facing a lawsuit for damages.”

Exactly what must be disclosed and when varies by state, according to Reischer, who recommends consulting local and state real estate associations to determine requirements in individual markets. In California, for example, all sales must include a Natural Hazard Disclosure Report that lets buyers know if a property is located in an area that’s prone to flooding, earthquakes or wildfires, among other things. North Carolina on the other hand, is a “buyer beware” state in which sellers can elect “no representation” on their seller disclosure form, which means sellers don’t have to disclose hazards or defects, although real estate agents are required to do so if prospective buyers ask. For that reason, REALTOR® Kasey Rabar, CRS, stresses the importance of disclosing material facts up front and encourages strict adherence to the ethics guidelines of the North Carolina Real Estate Commission and the National Association of REALTORS®.

“A seller doesn’t have to disclose that their home flooded unless a buyer specifically asks,” explains Rabar, who sells homes in North Carolina’s hurricaneprone Outer Banks as a broker associate with The VanderMyde Team at Coldwell Banker Seaside Realty in Kill Devil Hills, North Carolina. “As an agent, though, I will still disclose it—typically in the broker’s notes—because that’s usually the first question we get.”

The Residential Specialist trsmag.com

iStock.com/deepblue4you/hudiemm/krungchingpixs

28

Mar/Apr 2021

29

The Riskiest Spots in the U.S. Hurricanes. Earthquakes. Tornadoes. Wildfires. Everywhere has something . But some markets have more disaster risk than others. Is yours one of them? For more details on the types of disasters by region, see Market Values on pages 34–35.

Very low risk

Low risk Medium risk High risk

Very high risk

Source: CNN/RealtyTrac

Generally, the only information that doesn’t have to be disclosed is information about which sellers are ignorant. “A seller does not need to disclose risks that are unknown,” Reischer says. “In a lawsuit alleging that the seller failed to disclose a defect, the buyer will have to prove to the court that the seller knew or should have known about the problem. As such, the level of disclosure will vary depending upon the facts and circumstances.”

This is where things can get tricky, according to Sanders. Technically, sellers aren’t obligated to report information that pre-dates their ownership of a home.

In her area, for instance, there might be homes that remained dry during Hurricane Harvey, but which flooded nine years prior during Hurricane Ike. “You really only have to put on the seller’s disclosure what you know to be factual,” she explains.

“If you didn’t own your home during Ike, you don’t have to disclose that it flooded because you didn’t witness it. But if you The Residential Real Estate Council crs.com

know it did—because a neighbor told you, or because every house in your subdivision flooded—you should. It’s the ethical thing to do.”

Turning disasters into dividends

Like any real estate challenge—small closets, a bad location or a dated kitchen— disaster risk can be overcome with the right sales strategies. Here are a few worth trying: Play up the positives: If susceptibility to disaster is a home’s biggest challenge, its readiness for disaster can likewise be its biggest asset. Because flooding in her market is such a routine occurrence, for example, Rabar markets it loudly and proudly when a home is located in a favorable flood zone. “If a home is in a [low-risk] flood zone, it goes in the header on the primary listing picture and high up in the listing notes, because that’s a huge plus for buyers in our area,” she says.

Mar/Apr 2021

“

I urge sellers to get their windows and roofs windstormcertified, making it easier for buyers to obtain affordable windstorm insurance.”

–Julie Sanders, CRS

If you live in an area prone to natural disasters, learn how you can help your community when they happen with the free RRC webinar recording "Bring Relief and Build Community During Natural Disasters."

After Hurricane Harvey, REALTORS® in southeast Texas similarly emphasized in listings when homes survived the storm without flooding, according to Sanders, who says positive performance during a recent disaster can be a huge comfort to buyers.

But what if a home is in a high-risk flood zone, or didn’t fare so well in a recent storm?

Although you have to disclose hazards and defects, you don’t have to market them, points out Catherine Bierwith, CRS, a REALTOR® at Windermere Real Estate in Alameda, California. After all, a good school district is still a good school district, and a spectacular yard is still a spectacular yard. “I like to answer questions before they even come up, and I do that in the disclosures package that people receive before they even see a house,” Bierwith says. “In the marketing, though, it’s all about how pretty the home is or what a great location it has.”

Make insurance easy: You can’t eliminate risks, but you can make them more palatable by helping buyers find and obtain insurance. When she sells homes that are located in floodplains or fire zones, for example, Bierwith always includes in the disclosures package a quote from a local insurance broker.

Sanders has done the same, and also urges sellers in her market to get their windows and roofs windstorm-certified, which sweetens Gulf Coast real estate deals by making it easier for buyers to obtain affordable windstorm insurance.

Emphasize mitigations: Rabar says disasters can raise awareness to mitigate future damage. That’s because homeowners typically make investments afterward that make the home more resilient to future events.

In North Carolina, for example, flood-prone homes are typically built on stilts with reverse floor plans; after a flood, homeowners often reconstruct lower levels for “easy cleanup”—installing laminate vinyl flooring and other flood-resistant materials that are cheap and easy to replace.

“There are certain construction techniques that can help protect a home, so I try to highlight those for buyers,” says Rabar, who sometimes calls in a general contractor to walk prospective buyers through existing or potential disasterproofing improvements.

In California, Bierwith furnishes information about advancements in firefighting, which similarly increases buyers’ comfort and confidence. “There now are wider roads and more firebreaks in fire zones,” she says.

“Things get better after every fire season.”

Ultimately, what’s most needed is patience, persistence and a positive attitude, according to Sanders. “Our community is weary,” she says of southeast Texas, “but we can make the process better by providing documentation and being informed. Pretty much all properties are sellable. It just comes down to pricing them appropriately and giving potential buyers the details they need to make informed decisions.” TRS The Residential Specialist trsmag.com

iStock.com/imagedepotpro/krungchingpixs

30

Mar/Apr 2021

making

MOVES

By Kathleen Hagan

As of October 2020,

8.93

million people in the U.S. had relocated since the start of the coronavirus pandemic.

Source: NAR

iStock.com/rudall30/Sergei Cherednichenko

Millions of Americans move every year— for new career opportunities, to take care of aging parents or new grandchildren, for monetary reasons or even just for a change of scenery.

According to the Bureau of Labor and Statistics, 37% of the U.S. population can do their jobs remotely. And with more and more companies making remote work a permanent option for employees, moving has been all the rage lately. According to the National Association of REALTORS®, as of October 2020, 8.93 million people had relocated since the start of the coronavirus pandemic— an increase of nearly 94,000 compared to the same time period in 2019.

So what happens when a REALTOR® decides to jump on the bandwagon and relocate? “Don’t let somebody tell you that you should just refer,” says Alison Wisnom, CRS, associate broker with Coldwell Banker Realty in Annapolis, Maryland. “There are lots of options for transitioning out of a market.”

The Residential Real Estate Council crs.com

31

32

Mar/Apr 2021

CONSIDERING MARKET NORMS

When relocating to a new real estate market, Shannon Harrington, CRS, principal broker/owner at Blue Ridge Fine Properties in Staunton, Virginia, learned firsthand just how much market norms can vary. Before making a move, it’s smart to research and get up to speed on these aspects of a new market:

f Pace. Is it a slow or fast-moving f Home inspections. Do potential market? Is it urban or rural? Are buyers need to ask for repairs, preapproval letters expected? or can they walk away? f Lead time for showings. When f Real estate contracts. Read setting up a showing with potential through the standard contract buyers, is a day or two of notice used in the market and ask quespreferred? Or is it OK to schedule tions if you’re unsure about it. something for the same afternoon?

Partnering from a distance

Just because you physically leave a location doesn’t mean your business there has to end.

It’s possible for REALTORS® to stay active and work in the same market even after they move away. But, oftentimes, it means changing roles and finding a trusted business partner who can be there in person.

Take Wisnom, for instance. After working in Hawaii for four years, she didn’t want to leave all of her hard work behind when she moved to Maryland in 2017 due to a change in location for her husband’s job. Instead, she took proactive steps to retain her business and continued to work with clients in Hawaii.

“I really didn’t want to start all over again in Maryland,” Wisnom says. So she took

stock of her business and figured out how she could work nearly 5,000 miles away from her team. “The first thing I did was switch to a national brokerage [Coldwell Banker] instead of a local one [Hawaii Life] so I could be with the same brokerage in both locations,” she shares. This change provided Wisnom with a larger support network and peace of mind.

Next, Wisnom looked at her team to examine what holes her physical absence would leave. “I determined I needed a business partner—an experienced equal I could trust and rely on—to be in front of clients,” she says. “My role needed to become more strategic, supportive and administrative. I keep things moving in the background and write up offers while my partner is out and about.”

After vetting and finding a trusted partner, Wisnom says letting everyone know you are a package deal is key. “Our marketing has both of us on all of the materials,” she says.

“We always represent ourselves together— both of our email addresses are in each of our email signatures, we are both featured on property flyers, and we tell clients they can talk to both of us.”

Starting over

Not all CRSs who relocate decide to continue their existing business. Others choose to transition out of their old market completely and enter a new one. “The change can be jarring,” says Shannon Harrington, CRS, principal broker/owner at Blue Ridge Fine Properties in Staunton, Virginia, who previously worked in two other markets: Richmond and Charlottesville, Virginia.

“Just know that it’s going to be weird and different for a minute, but then you’ll be fine.”

Because every market has its unique features, Harrington recommends keeping an open mind about market norms and being willing to adapt. “I’ve seen people move markets and think their way of doing things was better,” she says. “But to succeed in a new market, you need to adjust to their ways. Having a good mentor to guide you along can help ease the transition.”

Additionally, it’s important to have a plan for handling referrals from your old market.

At first, Harrington co-listed with another agent to ease the transition for sellers. For buyers, she simply referred.

The Residential Specialist trsmag.com

Mar/Apr 2021

Bringing in business

When switching markets, one of the biggest— and most daunting—questions is: How do you generate new business? Besides traditional relationship-building methods like getting involved in the community and networking, a tactic that worked for Harrington was reaching out to for sale by owner (FSBO) sellers. “Chat with them and explain what you do and why you do it,” she advises. “A lot of times they are leaving money on the table and will hire you to represent them.”

For REALTORS® who are new to a market, Harrington also stresses the importance of featuring their listings on third-party sites like Zillow. “That’s where people go first when they’re looking at houses these days,” she says.

“It gives you extra exposure, which is especially helpful when you’re new to a market.”

Getting prepared

Whatever changes relocating brings to your real estate business, it’s important to start preparing as far ahead of time as possible.

For Harrington, that means cultivating your online presence and making sure your website and profiles on third-party sites are up to date. “Reach out to past clients and get them to write a good public review before you move,” she suggests. “That way people can see you may be new [to this market], but you’re not new to real estate.”

Wisnom recommends building up content about your new location as far in advance as you can. “You can always blog and post about your new location before getting there,” she says. “You can even offer house-hunting tips and share your own journey—people can relate to that.” TRS

Top 5 Cities for Real Estate Agents* Rank 1

City Virginia Beach, VA

Average Salary $68,180

Jobs 1,830

2

West Palm Beach, FL

$64,970

2,060

3.23

102

46

3

Austin, TX

$69,380

1,790

1.73

98

57

4

Fort Lauderdale, FL

$61,660

2,620

2.96

97

61

5

Wilmington, NC

$70,430

300

1.78

102

65

1

Location Quotient Cost of Living Score 2.15 106 43

5

3 2

33

Redefining Your Real Estate Role Moving to a new physical location while continuing to work in your former market is possible, but it’s often necessary to diversify your business plan and redefine your role when you’re no longer physically present. A few opportunities that can be executed from a distance include:

f Real estate instructor f Real estate rehab f Transaction coordinator f Referral marketing

4

* Based on median salary, cost of living and a location quotient.

Source: ValuePenguin.com

HINDSIGHT IS 20/20

With her relocation experience in the rearview mirror, Alison Wisnom, CRS, associate broker with Coldwell Banker Realty in Annapolis, Maryland, says there are a couple of key lessons she learned in hindsight.

1. “Starting over” in a new location wasn’t as difficult as she originally feared. “Once I started selling in Maryland, I realized I wasn’t set back to zero—I still had all of my years of real estate experience,” Wisnom says. “So while

I didn’t have the local business, I was much closer to generating it than I realized thanks to the skills and reputation I’d already built.”

2. Keeping her new physical location a secret initially may

The Residential Real Estate Council crs.com

have resulted in missed referrals. At first, Wisnom was wary of letting other agents know she had moved away from Hawaii because she didn’t want them to start talking to and potentially poaching her clients. “But I think I misjudged that

a little bit, because successful people don’t really have time to worry about what I’m doing,” she reflects. “Now that I’m selling in Maryland, I’m marketing to the agents I knew in Hawaii and they have been a great source of referrals.”

Visit crs.com/ webinar to watch “You CAN Take It With You! How to Move Your Business” and earn 1 CE credit.

34

Mar/Apr 2021

Market Values

states most at risk for

Insights from industry data

NATURAL

Top 15 states for natural disasters by region Hurricanes and flooding continue to be key causes of natural disasters, and wildfires made a bigger impact over the last five years than during the previous period.

Flooding

Earthquakes

Land & mudslides

Wildfires

Snow storms

Tornado Alley*

The financial impact of natural disasters hits hardest in Texas, where annual costs have averaged $ per household over the last five years.

1,478

Source: ValuePenguin

California’s 2020 fire season is considered the worst in the state’s history.

Source: MoneyWise

Since 1953, Florida has seen more disaster declarations from fires (65) than from hurricanes (45).

Source: MoneyWise

The Residential Specialist trsmag.com

iStock.com/Ig0rZh/chokkicx/fonikum/GreenTana

Source: ValuePenguin

Mar/Apr 2021

DISASTERS Drought

Blizzard

Monsoons

Hail

Tornadoes

Winter storms

■ Washington

Wildfires, floods, mudslides, landslides, earthquakes

Hurricanes

Tropical storms

■ Nebraska Tornadoes

■ Oklahoma

■ Oregon

Tornadoes, wildfires, floods, winter storms

■ California

Wildfires, floods, tornadoes, hail, winter storms, hurricanes

Wildfires, floods, mudslides, snowstorms, drought, earthquakes Wildfires, earthquakes

■ Nevada

Wildfires, floods, snowstorms, drought, earthquakes

■ Arizona

Wildfires, floods

■ Colorado

Blizzards, wildfires, floods

■ New Mexico

Monsoon-style rains, floods, mudslides, wildfires

■ Texas

■ Louisiana

The Residential Real Estate Council crs.com

Try moving to Minnesota or Montana.

RealtyTrac reported that 23% of homes were located in medium-risk counties while 22 % were in lowor very-low-risk counties.

Source: CNN Momey

■ Michigan

Rainstorms, floods, tornadoes

■ New York

Floods, blizzards, tornadoes, fires, hurricanes

■ North Carolina Hurricanes, tropical storms

■ Florida

Wildfires, hurricanes

* Tornado Alley is a loosely defined area of the central United States

Source: NOAA.gov

Want to avoid all of these natural disasters?

Hurricanes, rainstorms, floods

Source: MoneyWise, ValuePenguin

where tornadoes are most frequent. Although the official boundaries of Tornado Alley are not clearly defined, the main alley extends from northern Texas through Oklahoma, Kansas, Nebraska, Iowa and South Dakota. States such as Minnesota, Wisconsin, Illinois, Indiana, Missouri, North Dakota and Ohio are sometimes included in Tornado Alley.

35

For more information about natural disaster risk and disclosure requirements, read Disastrous Disclosures on page 26.

Between 2010 and 2019, California’s Butte County had the largest numeric and percentage decline in housing units of any county in the United States, down 9,629 or

10%.

Source: U.S. Census Bureau

SPECIALIZED

36

Mar/Apr 2021

Council Classroom

KNOWLEDGE

Strategies from the industry’s top educators

Kim Knapp started her real estate career in 2000 after moving to Florida from upstate New York. She has closed almost $500 million in volume by helping more than 2,000 buyers and sellers achieve their goals. Kim is a CRS and Florida REALTOR® Instructor, and a two-time NAR speaker. She was awarded REALTOR® of the Year and Educator of the Year by her local board and is the founder of one of the largest RE-BAR Camps in the country.

Today, Knapp manages the Coldwell Banker Vanguard office in Fleming Island, teaches and serves on her local MLS Board. She loves real estate and the people in it.

So, You Want to Be a Power Lister

W

e all have goals for our business. If you want to improve your ability to capture and convert leads, I am going to share some key skills with you during a brand-new course being rolled out at the Council throughout the year called “Be a Power Lister.” This course will give you a purposeful plan to obtain sellable listings through an effective, repeatable process.

This three-hour class dives into the nuts and bolts of how to convert a potential client.

It’s important to remember that you’re not just having another conversation with your potential seller. You have to extract the right information from them while you plant the seeds for your services. Your call is about building confidence and helping them see you as competent and professional because you have a plan that will work for them.

How to approach your lead

The beginning of the course quickly covers sources for lead generation; then it goes right into building rapport from first contact. From initial contact, one of your main objectives is to overcome any objections they might have in advance—even before the potential client can bring them up.

The more objections you can overcome in advance, the easier it is to get to yes. Incorporate as many soft closes as possible as part of your process, because the more they say, “OK, sure, that sounds good,” then by the time it gets to the actual decision, they have already made it.

The course will show you how to build rapport using actual scenarios. We’re going to talk about things that happen during that first call that could preclude you from The Residential Specialist trsmag.com

Mar/Apr 2021 even getting to a discussion of their house. a seller who’s on board with showings, the For example, when they ask you things like, home’s condition and the positioning in the “Hey, I’m interested in listing my house and market, now you have a sellable listing. The I was just curious—what’s your commisalternative is taking the listing, and the sion?” You shouldn’t let them shop based client or you becomes aggravated, it takes on price when they have no idea of the two or three months until you get it right, value of what they would be getting. I will and at that point, everybody loses because give you actual scripts and dialogue that the seller is going to realize far less than if will show you how to overcome that and everyone had done it correctly right out of other objections (see sidebar below). the gate.

If you do a two-step appointment, we’ll discuss what things you definitely want Tools to take away to cover and what questions you need Another benefit of this class is that whether answered on that first listing appointment. you take it in-person or virtually, I will We’ll also cover the things you can provide share a packet of documents with support to get buy-in from the seller and get them materials, including sample confirmation committed to your process before they’ve emails and how to conduct a survey with even said they’re going to hire you. the seller in advance to garner information even before the first appointment. There Setting expectations with the seller are forms that guide you through creating Most sellers have only sold a couple of a pre-listing presentation, a home seller houses in their life, so their expectations preparation checklist and how to prepare are either going to be made up or based on a vacant house. the last experience they had. You will want You will be able to take everything you’ve to set expectations on how you and the learned and personalize it so you can make seller will work together as early as possible. it your own and say it in your own voice.

You’ll need to convey that the seller is a criti- These editable materials will allow you cal part of the team, and that you need their to use your own branding and instantly implement them in your business, instead cooperation with preparation work and of creating everything on your own. staging if they want to get the best price.

All of these tools are designed to make you You want them to be on board as you stand out among your competition. Claim guide them in strategically positioning your power! TRS their home on the market. When you have

37

This course will give you a purposeful plan to obtain sellable listings through an effective, repeatable process.

LEARN TO OVERCOME COMMON OBJECTIONS LIKE THESE

Can you handle homes in our price range?

We need someone more experienced than you.

You don’t have very many listings.

The Residential Real Estate Council crs.com

You’re too busy! You have so many listings—we want someone who can give us attention.

Be sure to check the education catalog regularly at CRS.com to see when new classes like "Be A Power Lister" are scheduled throughout the year.

SPECIALIZED

38

Innovations

Mar/Apr 2021

KNOWLEDGE

Tech solutions for real estate

CRS Top Software Picks

Y

Evaluate your technology and develop a plan to maximize your return on investment with RRC's special Technology eLearning bundle available in the education catalog on CRS.com.

ou are rushing from one property to the next, answering phone calls at all hours and spending weekends at open houses—you do not have time to waste on doing things manually.

In an industry like real estate, time and productivity are everything, and there is a lot of software out there to help simplify your business and maximize profit. We have rounded up four programs that CRSs say are their favorites.

Cloud CMA is the easy way for agents to write more offers and win more listings with beautifully branded, customizable reports called Comparative Market Analysis reports.

Cloud CMA is user-friendly, and agents particularly like the ability to go directly from property pages in the MLS to cloud CMA with the selected properties.

They also like the ease with which users can modify values and customize the final PDF or printout.

For many agents, it is included in your MLS membership; there is also a free trial.

1

Pricing starts at $ 45 a month.

Revaluate helps agents and brokers generate seller leads using predictive analytics based on artificial intelligence algorithms. Based on consumer, demographic and social media data, the software identifies homeowners who are likely to move within the next few months. Check out Revaluate if you want to buy fewer leads, and save time and energy by increasing the success rate of cold calling potential sellers.

Revaluate does not publish pricing information. The company bases the price for its service on the number of contacts in the agent’s database.

2

The more contacts, the higher the price.

The Residential Specialist trsmag.com

Mar/Apr 2021

Outlook is part of Microsoft 365’s suite of products and is a contact database system that many agents like for one reason: In one convenient location, they can see all of their emails, their calendar events and their contact database—and they all sync together and can be merged with the drag-anddrop function.

For some, it may be just an email system, but there is also Outlook Customer Manager, a customer relationship management (CRM) application within the Microsoft Outlook email client.

Outlook Customer Manager essentially turns Outlook into a smart sales inbox.

3 4

39

In an industry like real estate, time and productivity are everything.

Outlook usage plans start at $5 a month.

Several real estate agents are moving from typical marketing platforms to InTouch.

InTouch Systems is a content marketing software that builds brand awareness through personalized email and social media by providing valuable homeowner information to an agent’s contacts not only when they buy and sell, but all the years in between. InTouch content marketing produces a digital footprint that improves SEO and helps the public find you.

Prices are listed as $39 a month or $399 annually.

iStock.com/artvea

App or Software: What is the difference?

The term “app” is an abbreviation that describes a type of application software that performs a single function.

Application software, by contrast, is usually designed

to tackle multiple tasks. Applications are a form of software, but not all software is an application. Desktop and web applications often have broader functionality, although web

The Residential Real Estate Council crs.com

applications can still perform on mobile devices. Mobile applications are generally more user-specific. They are usually delivered via the app store that's associated with your device’s

operating system. Mobile apps can be delivered directly to your desktop, but they are designed specifically for use on mobile devices. TRS Source Tateeda.com

SPECIALIZED

40

Wide Angle

Mar/Apr 2021

KNOWLEDGE

Legal and financial focus

Untangling the Latest Tax Rules reduction, and this could be under attack to help raise tax dollars in the near future.

Donations and improvements

Dale Carlton, CRS, has been a REALTOR® for more than 20 years, and as a broker during that time, he generated sales of more than $3 billion and personally sold over $250 million. Carlton served as the 2015 national president of the Residential Real Estate Council and he is an RRC national instructor.

T

he ever-changing tax law implications on real estate and real estate agents require constant review to monitor changes that impact real estate. Consider the following when planning for 2021 taxes.

Standard deductions

Check out the "Top Legal Issues: Don’t Be Blindsided" webinar hosted by Dale Carlton, CRS, at CRS.com/learn.

As a result of the Tax Cut and Jobs Act of 2017 (TCJA of 2017), many tax filers are now taking the standard deduction instead of itemizing their deductions. This is a result of the increased standard deduction, which goes up in 2021 to $12,550 for single filers and $25,100 for joint filers. For real estate agents, do not confuse business deductions with personal deductions when filing the standard deduction. Business deductions may still be deducted from business expenses for 2021 tax filings. Along with the increase in the standard deduction, the personal exemptions were eliminated and are no longer deductible. However, the Child Tax Credit was increased to $2,000 per child (for children under 16 by the end of the year), and income qualification limits were raised so more filers will qualify. There is a possibility of a smaller $500 credit for children who are 17–18 years old or full-time students under 24 who are dependents. The state and local tax (SALT) deduction remains limited to $10,000, which hurts filers in states with higher state taxes or high real property taxes.

The real estate interest deduction on acquisition debt is limited to the interest on a mortgage of up to $750,000 (a reduction from $1,000,000 starting in 2018 after the TCJA of 2017). This is an area to watch closely, as there are rumblings of a future

To encourage donations to nonprofit organizations, the CARES Act in 2020 allows for filers to take up to $300 in cash-type donations to nonprofits in 2020.

In 2021, it gets better for joint filers who can take up to $600 in cash-type donations to nonprofits. This deduction is allowed even if the filer does not itemize deductions on the tax return.

Many real estate agents will be able to take advantage of an expanded definition of investment property improvements under Section 179. In the TCJA of 2017, improvements such as HVAC equipment, roofs, fire protection and security systems may be deducted in the first year. Speak with an accountant about any improvement to an investment property to determine which improvements may qualify and are no longer required to be depreciated over their life.

Depreciation and QBID

Bonus depreciation also allows additional opportunities for qualifying new and used property to be increased from 50% to 100% with the TCJA of 2017. This generally applies to business assets when the recovery period is less than 20 years.

One final thought is the rather significant Qualified Business Income Deduction (QBID), which began with the TCJA of 2017 and allows up to a 20% deduction in taxable business income. This amount may be limited to a filer’s taxable income if the taxable income is less than the taxable business income for pass-through businesses. This deduction has saved significant tax dollars for many real estate agents. It has some limits on higherincome earners, so it is important to work with an accountant throughout the year to determine the best methods to help ensure the deduction is maximized. TRS The Residential Specialist trsmag.com

If you don't have time to do it yourself, it's infinitely better than what you're not sending and posting currently. One lost transaction is ten-to-twenty times more than what you'll pay for InTouch Systems for one year

Schedule a personal demo with Pat Zaby at InTouchSystems.com!

Automated Email

Automated Social Media

Automated Landing Page

Automated Import / Update

Outlook is a registered trademark of Microsoft Gmail is a registered trademark of Google

DESIGNATION

42

NATION

Your Own Council

Mar/Apr Mar/Apr 2021 2021

News and updates

NEW

certifications

G

etting certified is a great way to show that you went the extra mile to stay educated and specialized in certain niches—to better market yourself and serve clients with specific needs. The Council is rolling out two new certificates this summer:

Inside Sales Agents Certificate.

Visit our certificates/ certifications page for more updates: CRS.com/learn/ certificates.

ISAs may be the key to unlocking up to five times more income for your real estate teams than just relying on your standard sphere of influence. In an increasingly virtual world, ISAs can use powerful tools to create a steady sales pipeline for your business. Mastering the skills that ISAs bring to your team and spending time focusing on inside sales at your own brokerage will allow your business to bloom. The courses within this certificate will help you hire and work with your own ISAs, as well as discover vital tools for your own sales pipeline.

Real Estate Investing Certificate.

Real estate investing is one of the best ways to diversify a financial portfolio, and the RRC Real Estate Investment Certificate is great for agents looking at investing to grow their business. From classes on working with real estate investors to becoming an investor yourself, agents will gain expert knowledge on becoming an investing powerhouse. Whether you are looking to become familiar with 1031 exchanges or buy your first investment property, these courses will hone your mastery of real estate investments. TRS The Residential Specialist trsmag.com

Mar/Apr 2021

Find a CRS Enhancements We know how important referrals are to the real estate business, and that our CRSs and members refer to each other to ensure clients are well taken care of. We brought the Find a CRS referral platform in-house to streamline updates and make the system more user-friendly. One year after the new application became live, we are excited to announce that even more enhancements have been implemented.

Based on research and numerous member suggestions, the Council has added the following features: f Agent recommendations f Enhanced communication options—community and individual groups and direct messaging f Recognition—badges and ribbons for specific achievements like completing designation maintenance, holding a leadership position, etc. f Skill endorsements f And much more!

Download the app now and start exploring: find. crs.com/#/crs TRS

The Residential Real Estate Council crs.com

43

SELL-A-BRATION RE-CONNECT

virtual

Hundreds of top producers in residential real estate came together online in February for a one-day virtual event called Sell-a-bration Re-Connect Virtual—the virtual component to the Council’s annual Sell-a-bration conference. The day was full of insights and lessons from top agents on how to take your business to the next level. CRS speakers included Rich Sands, Addie Owens, Kim Cameron, Kelly Catallo, Monica Neubauer and Alexis Bolin. Attendees not only enjoyed top-notch education, but also a nice mix of vendor information, keynote speakers, contests and networking opportunities.

Don’t forget to register for Sell-a-bration Re-Connect Live, which is scheduled to take place in person at Harrah’s Lake Tahoe Aug. 17–18! More information can be found at crs.com/events. TRS

The brightest leaders in the industry come together and share like no other group in the industry.

Rich Sands, CRS

Kim Cameron, CRS

Monica Neubauer, CRS

Addie Owens, CRS

Kelly Catallo, CRS

Alexis Bolin, CRS

DESIGNATION

44

Q

Mar/Apr 2021

&

Ask a CRS

Advice from your peers

What do you do when you want to bump your business up to the next level?

You will first need some new goals. Just wanting to do more business rarely leads to actually doing more business.

If you have a driving force and a reason why you need to do more business, you are far more likely to make it happen.

Do you have a goal board with photos of the things you want to have or experience?

That is a great place to start!

Set an ambitious goal for next year—I’ve had my best year ever in 2020. I set a goal to double my business, which was down from the previous two years. I did $21 million. I added a business mentor, so I’m working on my business as much as in my business. I also brought on an assistant in January. The biggest thing I can point to is my intention, and spending more time on the phone talking to my database.

And being open to opportunities.

Sam Miller, CRS

Gladys Blum, CRS

The Sam Miller Team, Mount Vernon, Ohio

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

NATION

Frank Vento, CRS

Intero–A Berkshire Hathaway Affiliate, Pescadero, California

Now is the time to finish up (or completely do) your business plan, so perfect timing! Set your goals and then realistically put a plan in place to reach them (hint, you need to know your numbers to do this— where are your clients coming from?). I am 28 years in and do a lot of rinse and repeat every year (if something is working, I keep doing it, maybe even expand it). Then I add 1–2 new things to “bump it up a level.”

Beth Jaworski, CRS

Shorewest Realtors, Wauwatosa, Wisconsin

Add designations to my resume and get involved with multiple associations and committees.

Get a coach who will make you accountable and take you out of your comfort zone.

Ed Eakin, CRS

Kimberly Ann Zuponcic, CRS

Eakin Group, Dallas, Texas

Get on the phone and talk to your past clients!

Blum Real Estate, Salem, Oregon

Ninja program worked a lot for me. Next year, I am working for more videos.

Andrea Bezulle Ferreira

The Keyes Company, Weston, Florida

Kimberly Zuponcic REALTOR®, Naples, Florida

Dig deep and remember what it’s like to not be able to pay your bills. And remember our business is only as strong as the amount of meaningful conversations we have with people daily about real estate.

Robert Little, CRS

The Little Group-Las Vegas Real Estate, Las Vegas, Nevada

The Residential Specialist trsmag.com

RRC Connect

Mar/Apr 2021

Expand your network

45

CONNECTION PERFECTION

Nurturing a Relationship

A

fter I presented on a panel at the Las Vegas Sell-a-bration in 2019, I met Mishell Kneeland, CRS, and Justine Smith, CRS. They came to me asking questions and we hit it off right away.

We stayed connected through social media and personal cards after our initial meeting.

Mishell visited Honolulu and we connected once again over breakfast and had a great conversation. The relationship continues to flourish, and when I have a referral, I try to send it her way!

One of the best reasons to be a part of the RRC community is the incredible connections you make with so many amazing CRSs on a national level at conventions or even on social media. It is important to nurture a relationship, especially when an initial connection is made. A first-time meet-and-great is just the spark to the beginning of a long-time standing relationship, but it must be attended to. To keep the connectedness, it takes effort, but it is worth it! Writing personal notes, sending special

SOUTH

Texas

Hawaii Tricia Nekota, CRS

surprise treats/gifts, a text or engagement on social media certainly builds and strengthens this special bond.

Referrals will naturally be exchanged just from the ongoing and nurtured relationship. TRS —Tricia Nekota, CRS, Vesta Hawaii Real Estate, Honolulu, Hawaii

SOUTH SOUTHEAST FLORIDA Weston, Pembroke Pines, Miramar, Hialeah, Miami Lakes, Hialeah Gardens, Miami Beach, Miami, Miami Springs, Doral

YOUR NEW ORLEANS RESOURCE

2021 Florida RRC President Major Investor Crystal R BA - Florida International University Fluent Spanish ~ Hablo Español

CARMEN L. DUNCAN CRS, ABR, HHS, MBA

Vivian Macias, CRS, GRI, SRS Broker - REALTOR® 305-300-4425 vivian@principalproperties.com vivianmacias.realtor

“Your Real Estate Resource” Direct: (504) 452-6439 carmenlduncan9@gmail.com RE/MAX N.O. PROPERTIES 8001 Maple Street New Orleans, Louisiana 70118 (504) 866-7733 Licensed in Louisiana. Each office independently owned and operated.

33 years of Experience, Commitment, & Professionalism

The Residential Real Estate Council crs.com

Mishell Kneeland, CRS Justine Smith, CRS

Reach more than

30,000 CRS peers with your ad here.

Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127

DESIGNATION

46

Mar/Apr 2021

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.

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

The Residential Specialist trsmag.com

Mar/Apr 2021

WEST

WEST

WEST

WEST

MID-ATLANTIC

BEN & CAROLE HEINRICH

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

Carole, CRS, CFP® Ben, CRS & CRB RSPS & SRES CRS NorCal chapter past president

www.TheHeinrichTeam.com 831.915.7415 Team@TheHeinrichTeam.com

Ben BRE License #: 00584641

Carole BRE License #: 01069022

WEST CALIFORNIA’S MONTEREY PENINSULA A trusted name 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

925-200-8495

Ask about Lake Wildwood near Grass Valley!

DRE# 01005829

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

MAUI al Estate

www.JoanneFoxxe.com

PACIFIC 808-385-2918

PACIFIC

HAWAII

jofoxxe@Maui gmail.com Director-Certified Residential Specialists

nne xxe

SRES e-pro

S director

Joanne Foxxe 808-385-2918 CRS, GRI, SRES, e-Pro, RSPS

...sharing Aloha through excellence and experience...

cell and direct line

Search all Maui properties on my website

www.JoanneFoxxe.com Quality isn’t expensive, it is priceless.

Top 100 Hawaii Realtors 2017.

Oh by the way, I am never too busy for your referrals.

Keller Williams Maui Luxury Real Estate Kapalua  Lahaina, HI 96761

The Residential Real Estate Council crs.com

Reach more than

30,000 CRS peers with your ad here.

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

Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127

47

DESIGNATION

48

Mar/Apr 2021

Balancing Act

NATION

Practical strategies for restoring balance

Harnessing Hobbies for Lead Generation

R

EALTORS® know they need to be open-minded when looking for new buyers or sellers. From outside-the-box marketing campaigns to leveraging personal relationships, creative thinking is key when attracting new clients.

But why not try combining work and leisure time to grow your business? Agents should consider looking at translating their hobbies or interests into customer growth.

Many people view working out as a social activity, so while you’re spotting someone on the bench press, strike up a conversation in between sets.

1

Community presence Whether it be chess, sailing or stamp collecting, you can probably find a group of like-minded individuals to join or start a club in your community. Weekly or monthly meet-ups can expand your network. If you’re less interested in those types of activities, finding a consistent community service group could be the right move for you. Fundraising, feeding the needy or even picking up trash are all great ways to make your community a better place and enhance your brand or public image. While it may be more difficult to meet in person due to the pandemic, many clubs are meeting virtually. Don’t abandon your groups; just switch to Zoom so you can continue to build relationships.

2

Workout plans Staying physically fit is something many of us strive for. But instead of wearing headphones and staring blankly ahead while on a treadmill, get to know people at your local gym, especially post-pandemic.

Many people view working out as a social activity, so while you’re spotting someone on the bench press, strike up a conversation between sets.

If you prefer larger group activities, try joining a pick-up sports league. Whether you come into the

league with a preset team and interact with other squads, or join solo and bond with your new teammates, meeting new circles of people can generate leads. Not only can you have fun doing something you love, but making new friends and acquaintances can pay dividends down the line with referrals, as well.

3

Search social groups and forums As society becomes more digital, online forums can be a great place to connect with people. People from all over the world converge in internet groups and forums to share stories and give advice on everything from healthy eating to race cars. You may already be a member of real estate forums, but try to expand past the profession to other areas of interest. Odds are that any hobby you may have—no matter how obscure— has some sort of community on Facebook or LinkedIn. Keep in mind that some message boards may be local and some may operate on a wider scale. Forums in your immediate community may be helpful in the present, but national or international forums could still be useful. Maybe you connect with someone in a different state who’s looking to buy or sell a home— pass their name on to someone you met at an RRC event in the past. They’ll appreciate the business and keep your name top of mind the next time they hear of a potential listing in your area.

Regardless of which avenues you take, tact is important—avoid coming on too strong while participating in activities that are supposed to be leisurely or fun. As you grow within the community, people will naturally want to know more about you and your life.

Even subtle hints that you’re a real estate professional and have extensive and successful experience in the market could lead to business dealings, not only from those you met during the activity, but from their extended networks as well. TRS The Residential Specialist trsmag.com

PARTNER WITH THE LEADING HOME INSPECTION COMPANY

25 98

%

YEARS IN BUSINESS

2.5+

CLIENT RECOMMENDATION RATE

FULLY E&O INSURED

MILLION HOME INSPECTIONS

REPORTS PRINTED ON-SITE FOR FASTER CLOSINGS

✔

CHOICE OF HOME INSPECTION PROGRAMS & SERVICES

Ensure confident home ownership for your client.

Find a local inspector or book an inspection today. pillartopost.com