The Residential Specialist, May/June 2021 by The Residential Specialist

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

+ T he art of curb appeal 18 + A dd investor sales to your portfolio 26 + It pays to connect with rental tenants 30

ABOVE AND

BEYOND Help buyers stand out from the competition

CRS-058

MAY/JUNE 2021

See buying/ selling articles on pages 9, 18, 22 & 26

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May/June 2021

Vol. 20, No. 3

N G /S E

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2021 BU

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over art: C iStock.com/ wildpixel

18 22 26 30

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FEATURES 18 Think Outside the Box: Due to the pandemic, outdoor space has become an attractive feature for agents to market to potential buyers. By Megan Kramer

22 The Competitive Edge: Because inventories are shrinking, agents need to find creative ways to make their buyers’ offers stand out. By Andrew Conner

Residential Real Estate Council crs.com

26 How to Be an Investor’s No. 1 Agent: Nurturing relationships with investor buyers can prove to be a lucrative proposition for agents. By Michelle Huffman

30 The Achievable Dream: More people are beginning the transition from renting to the world of homeownership—and a good agent can help. By Chasity Cooper

7 2

May/June 2021

CONTENTS

Vol. 20, No. 3

4 Aerial View

Alex Milshteyn, CRS

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

Market Pulse 7 9 buying/ selling article

ersonal Perspective: Kelli Phillips, CRS, P Kelli Phillips Realty Group, Marietta, Georgia eality Check: How to guide first-time R buyers through a particularly tough real estate market. By Kathleen Hagan

12 Relocation Renaissance: An extraordinary number of people have relocated since the start of the pandemic.

By Matt Alderton

16 A t This Stage: Counseling someone who is considering a career in real estate.

34 Market Values Insights from industry data.

Specialized Knowledge 36 C ouncil Classroom: Buying real estate is a great investment for REALTORS®. 38 I nnovations: Some technology tools that were adopted during the pandemic will continue to be helpful post-pandemic. 40 Wide Angle: Three onboarding strategies you need now.

Designation Nation 42 Your Own Council: RRC news and updates. 44 A sk a CRS: Advice from the country’s top agents. 46 RRC Connect: Expand you network. 48 B alancing Act: Becoming a better communicator can help in both your professional and personal life.

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 Chasity Cooper Kathleen Hagan Michelle Huffman Megan Kramer

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 pub2021 BOARD OF lished bimonthly by the Residential DIRECTORS Real Estate Council, 430 North President Michigan Ave., Suite 300, Chicago, Alex Milshteyn, CRS IL 60611-4092. Periodicals postage paid at Chicago, IL, and President-Elect additional mailing offices.

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

Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to RRC at the above address. The Residential Specialist (USPS0021-699, ISSN 1539-7572) is distributed to members of the Council as part of their membership dues. Nonmembers may purchase subscriptions for $29.95 per year in the U.S., $44.95 in Canada and $89.95 in other international countries. All articles and paid advertising represent the opinions of the authors and advertisers, not the Council.

POSTMASTER: Please send address changes to: PUBLICATION The Residential Specialist, MANAGEMENT c/o Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092.

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May/June 2021

Aerial View

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

Celebrating Together

“

T he reason I’m serving in a leadership role within the organization is because of my experience attending that first Sell-a-bration.”

I built up the confidence to make the call. The conversation was positive and uplifting, and I realized I should have called months or years earlier. We spoke about their real estate plans to move out West and we’ve scheduled a follow-up for early next year. My second priority is to better educate buyers on how to approach today’s competitive market. After seeing a home, I often hear my buyers say, “Well, we’re going to sleep on it and get back to you when it’s a competitive situation.” But based on what I heard a CRS suggest at Sell-a-bration, I recently responded: “You can sleep on it, but the other people are probably going to sleep in it because they are going to make a decision now, and they’re going to be the first ones there.” And my buyer said, “That’s hilarious, but it makes total sense. Let’s move forward.” It’s those small things you pick up at a conference that can seem insignificant, but it helped me get a sale. My third priority is to make more extensive use of virtual reality technology. There was much discussion about virtual reality at Sell-a-bration because due to the pandemic, many buyers don’t want to visit properties, or they want more information before they see a property. Soon a buyer will be able to place a device over their eyes and do a complete walk-through of a property without actually setting foot in it. Sell-a-bration also offered a valuable reminder about old-school marketing techniques, like mailing postcards. COVID-19 did not kill old-school approaches. They still work, and I found it helpful to be reminded of that reality. It was also wonderful to visit with other CRSs at the virtual happy hour held at the end of the conference, and the experience at the August event will be even richer and more rewarding. I look forward to seeing you there for Sell-a-bration 2021 Re-connect on August 17–18 in Lake Tahoe! TRS Photo: Scott Stewart

ased on the tremendous experience at the virtual Sell-abration held this past February, I am especially excited about the upcoming Sell-a-bration Re-connect event in Lake Tahoe in August. At that event there will be an emphasis on networking, returning to our roots of building businesses and figuring out what post-COVID-19 business looks like for the real estate industry. I was so inspired by the very successful virtual Sell-a-bration in February, which was a way for me to recharge, especially in this pandemic year. It reminded me of my first Sell-a-bration several years ago, and how I left that event feeling enthusiastic about the industry, being a member of RRC and my CRS designation. Looking at my personal production and sales at that time and how I grew my team, you can see something very positive happened that year—and it was definitely Sell-a-bration. The CRSs I met at my first Sell-a-bration have continued to be close friends who I can call on today. I ask them questions about my business and get their professional perspective. Looking back, I couldn’t have asked for anything better, and the reason I’m serving in a leadership role within the organization is because of my experience attending that first Sell-a-bration, meeting the people who were also leaders and thinking, “I want to be just like them one day.” By the end of our virtual 2021 Sell-abration, I had accumulated seven pages of notes based on the dynamic exchange of ideas shared by CRSs. I reviewed my notes and set my priorities. My first priority is to reconnect with colleagues, customers and friends. I reached out to a client that I haven’t spoken to in years. I was embarrassed that it had been so long since we spoke, but

The Residential Specialist trsmag.com

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May/June 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

Member Perk

he Council provides its members with an exclusive bi-monthly benefit—the Your Home newsletter. A new PDF and customizable Word version of the newsletter is available at TRSMag.com with every issue of The Residential Specialist. Your Home covers topics of interest to homebuyers and sellers. RRC members can send a standard version to their clients by email or mail, post it on their website or customize the Word version by adding their own stories that cover topics specific to their location.

If you mail the standard newsletter, it should be folded in a trifold with the mailing panel facing outward. Postal regulations require two tabs be placed at the top—at the positions indicated by the asterisks. Access the current issue of the Your Home newsletter at CRS.com/resources/your-home-newsletter. View previous issues of the Your Home newsletter at CRS.com/resources/your-home-newsletter/all-issues.

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May/June2021 2021 May/June

PERSONAL PERSPECTIVE Kelli Phillips, CRS, became a real estate agent as a second career and is looking forward to assisting clients in her soonto-be-finished office.

PAGE 8

Market Pulse Photo: Scott Lowden

TRENDING HEADLINES AND IDEAS FIRST-TIME BUYERS

REFERRALS

AT THIS STAGE

Working with first-time buyers is never easy, but new challenges emerge when home inventory is tight and prices are high.

With relocations on the rise due to the pandemic, agents can create a nationwide networking strategy.

For agents who are just joining the industry, preparation and research can be invaluable.

PAGE 9

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Residential Real Estate Council crs.com

MARKET PULSE

May/June 2021

Personal Perspective

Profiles of people to watch

Kelli Phillips, CRS

Kelli Phillips Realty Group, Marietta, Georgia

“

I was extremely impressed with the RRC instructors in terms of the quality and relevancy of what they were teaching.”

How did you get involved in real estate?

I came to it as a second career. I had been in sales and marketing for more than 20 years and was staying home with my three sons. My best friend lived in a new master-planned community and her neighbor needed someone to do some real estate marketing for them. So, I thought, “I’ve got 20 hours a week—I can do some postcards and marketing.” Fast forward six months and I had negotiated a fulltime position with a salary, and I loved it. A few months later, I received my license and earned Rookie of the Year in my Keller Williams office.

How did you learn about the CRS Designation?

Kelli Phillips, CRS, achieved the CRS Designation in 2019. She can be reached at kelli@kelliphillips realtygroup.com or 770-315-2063.

I’ve always been somebody who believes in education. I joined the brokerage I am with because they stress education and technology. At my local association, I chaired the education committee for

several years, and I started learning about all the designations that were available. As I became more involved with the state level association, people asked, “Why don’t you have a CRS Designation? Are you going to Sella-bration?” I made it one of my goals to earn the designation. I was extremely impressed with the RRC instructors in terms of the quality and relevancy of what they were teaching. They weren’t recycling the same information from five or 10 years ago. My next CRS goal is to become an instructor.

What is going on with your market?

Limited inventory, multiple offers and properties selling at a price dramatically over list is common here in northwest metro Atlanta. The pandemic only exaggerated the low inventory we were already experiencing. My agents are working much harder to get an offer accepted. Currently, I am training on techniques and

tactics to craft a well-structured offer and how to win the bid.

What is your go-to method for communicating with clients?

Video. It has been the biggest game changer for us. And it’s not just videos to market a listing— although we create phenomenal videos! We use video for client (and agent) communication. I’m so used to talking to somebody on camera versus just chatting—it has become my norm. My coach told me four or five years ago that you’ve got to get out of your own head and start doing videos. Now I’ll pick up the phone and shoot a video message as a response to someone. My team uses video email to communicate emotion and authenticity. People relate better when they can experience tone and see emotion. I can talk and shoot a video response faster than I can type.

How have you and your team handled working through the pandemic?

Georgia REALTORS® were very blessed. We

were deemed essential workers early in the shutdown. My team had a couple of closings that were totally virtual, but we have been doing that for a few years. Virtual closings, online sales and virtual staging weren’t new for our team. We’ve had a Zoom account, completed 3D Matterport tours, held virtual open houses and toured homes via FaceTime for clients. We were happy that we didn’t have to learn to use new tools on the fly, so we focused on improving communications and taking time to streamline systems. Today, we are scaling for the growth expected in 2021. It was a challenging year, but I think it was a good one. When you look at the numbers, we came out ahead of where we had projected we would be. But the team grew in a big way—more than just the transactions. The biggest thing I want to celebrate from last year is we came out on the other end of it as better humans. We learned to connect more, listen and ask better questions. We learned to slow down so that we could be intentional in what we wanted to accomplish. TRS

The Residential Specialist trsmag.com

When home inventory is tight

First-Time Buyers

May/June 2021

Reality Check By Kathleen Hagan

iStock.com/akinbostanci

ccording to the National Association of REALTORS® 2020 Profile of Home Buyers and Sellers, first-time buyers made up 31% of all homebuyers in 2020, a 2% dip from 2019 and the lowest percentage since 1987. The reasons behind this drop? Lack of inventory, high home prices and lack of financial leverage during the COVID-19 pandemic could all be factors. But if Congress passes a proposed first-time homebuyer tax credit, the number of firsttime buyers may increase again in 2021, making the inventory shortage worse and driving up home prices even further. So how can a CRS assist first-time buyers in a tough real estate market? Here are three areas to focus on when working with this special subset of buyers today.

1. Help bridge the gap between fantasy and reality.

According to Rich Sands, CRS, with Rich Sands Seminars in Aurora, Colorado, one of the biggest challenges of working with first-time buyers is Residential Real Estate Council crs.com

resetting their expectations about the homebuying process and explaining the realities of the current market. “When people go to buy their first home, they often have an idea in their head of what it’s going to be like,” he says. “But no matter the market and no matter how prepared the buyer is based on research or advice from family and friends, there is still this smack upside the head once they begin the process.” The best way to bring first-time buyers back to Earth? Send them out to start looking at homes in person as soon as possible, Sands advises. “None of what you tell them means anything until they get out there and start seeing properties,” he says. Mark Given, CRS, of Mark Given Seminars in Roanoke Rapids, North Carolina, says many first-time homebuyers have difficulty adjusting to the fast pace of today's market. “Agents need to prepare buyers for the fact that they’ll need to be ready to move very quickly once they see something they like,” he says.

“

No matter how prepared the buyer is based on research or advice from family and friends, there is still this smack upside the head once they begin the process.” —Rich Sands, CRS

MARKET PULSE

May/June 2021

2020 Profile of Home Buyers

of first-time buyers said the primary reason for purchasing a home was the desire to own a home of their own.

First-time buyers who financed their home typically financed

First-Time Buyers When home inventory is tight 2. Don’t treat all first-time buyers the same.

3. Stay in touch.

After closing the sale, Given recommends In today’s low-inventory market where sending regular updates about what’s going multiple offers are common, Sands on in your real estate market and offering emphasizes the importance of listening ideas and tips on how to maintain, improve to buyers to understand their unique and upgrade a home. needs. “The agent who is going to be suc“Agents do their buyers a disservice if they cessful with first-time buyers is extremely don’t help them understand what happens patient and has excellent communication after they close and how to take care of skills,” he says. “They are knowledgeable the property,” he says. “You should also about their market and the process, so share periodic market updates that show they can act as an educator, counselor how their property is appreciating to help and coach. They are also tech savvy, part reinforce what a great decision they made psychic and part saint.” in buying it.” “You need to understand your buyers indiWhen you take the time to connect with vidually and not just as a niche,” Given adds. and build relationships with first-time buyers, “It’s such an emotional transaction, so you the results can be fruitful. “You never know when a buyer is going to refer you to their need to take their temperature regularly to see how they’re feeling, if they have friends or family, or when you might get questions and what their anxiety points are.” repeat business from them,” Given says. TRS

of their home compared to repeat buyers at 84%. Source: NAR

Curious to learn more? Attend the Council's eLearning on Working with First-Time Homebuyers at crs.com/learn.

Many of today’s first-time buyers are of the millennial and Gen Z generations, and the internet is often their first stop to find out more about the homebuying process. “But they’re not going to go to Google to search for a REALTOR® to help them,” says Rich Sands, CRS, with Rich Sands Seminars in Aurora,

Colorado. “Instead they're asking questions about the homebuying process, the real estate market and how to compete. The first-time buyer is going to be attracted to information—blogs, websites, social media, podcasts and videos.” Agents who want to work with first-time

buyers should make sure they offer this kind of content online. “That way, when first-time buyers ask these types of questions, they are more likely to find you via search,” Sands adds. Mark Given, CRS, of Mark Given Seminars in Roanoke Rapids, North Carolina, suggests

including testimonials from other first-time buyers on your website as another digital marketing strategy. “Today’s first-time buyers don’t care how many transactions you’ve done. Instead, they care much more about third-party testimonials,” he says.

The Residential Specialist trsmag.com

iStock.com/AzmanL

MARKETING TO FIRST-TIME BUYERS

May/June 2021

MARKET MOMENT

Home Prices Don’t Lumber Along

In February, lumber prices topped $1,000 per thousand board feet for the first time, according to the March lumber futures market. Simultaneously, single-family housing starts dropped by 12% compared to December 2020, according to the U.S. Census. That price had doubled from just three months earlier, CNBC reports. While homebuyers are seeking more affordable homes, builders are finding it increasingly more difficult to deliver newly built, affordable homes due to the spike in

lumber costs. The price increase in lumber has corresponded with a drop in housing starts in January 2021. “Builders report concerns over increasing lumber and other construction costs, and delays in obtaining building materials,” said Robert Dietz, chief economist at the National Association of Home Builders (NAHB). “Rising interest rates will also erode housing affordability in 2021, as inventories of existing homes remain low.” The number of single-family homes that have received building permits but have not yet started building has jumped 28% higher than a year earlier, as building material costs increase and delays slow some home building, says Dietz. In March, NAHB Chairman Chuck Fowke said, “High lumber prices remain the No. 1 issue facing and threatening home builders.” Strong housing demand, low-interest rates and a boom in home remodeling continue to push prices higher. Fowke warns that, “The long-term effect of these sustained high prices could be devastating for home builders and homeowners. This is about the attainability of the American dream of homeownership for an entire generation.” At some point, however, the basic reality of affordability could potentially slow some of the growth in home prices. TRS

iStock.com/gwycech/akinbostanci

WHAT EXACTLY IS GOING ON? When states issued lockdowns in spring 2020, U.S. sawmills across the nation closed, reports Fortune. com, resulting in a falling lumber supply. Simultaneously, those quarantining at home realized it was a perfect time to tackle home renovations or DIY projects, resulting in a rising demand for timber. “Prices started to drop in the fall of 2020, hitting $550 per thousand board feet in early November,” Fortune.com reports. “It looked like the correction was starting. However, the U.S. explosion in COVID-19 cases in the final weeks of 2020 saw sawmill production slow down, particularly in areas cutting California redwood. That helped push prices sky-high again.” Source: Fortune.com

Residential Real Estate Council crs.com

Current lumber prices are adding $

24,000

to the price tag of a typical new single-family home. Source: NAHB

MARKET PULSE

May/June 2021

Referrals

Turn relocations into revenue

The Residential Specialist trsmag.com

May/June 2021

Relocation Renaissance By Matt Alderton

OVID-19 has changed the way Americans think about health and hygiene. It’s changed how they socialize and where they travel. It’s changed their shopping, dining and even grooming habits. Mostly, though, it’s changed how they work. And as a result, where they live. In fact, the National Association of REALTORS® reported in December 2020 that 8.9 million people had relocated since the start of the pandemic. Some people have moved for financial reasons, like unemployment. Others because they wanted to reduce their risk of contracting the virus. Many, however, have moved for the simple reason that they can. Thanks to remote working, fewer companies are requiring employees to be in the office. That means workers who no longer have to commute can live on the other side of town. Or if they choose, the other side of the country. “COVID-19 has taught us all the importance of reconnecting with family and friends, and of being in a community. That is causing a huge shift in our population,” says Shelley Watkins, CRS, an associate broker See page 34 to find at LAH Real Estate in Birmingham, Alabama. Workers’ increased flexibility opens up a new out where people world not only for individuals and families, but are coming from who also for REALTORS®, who can exploit the workmove into your county. from-home revolution by using the following strategies to build a nationwide referral network that turns relocations into revenue.

iStock.com/hudiemm/Bet_Noire/leonello

Find your feeder markets.

Building a relocation-focused 1 referral network requires knowing who’s moving to your market, and from where. Start with the U.S. Census Bureau, which publishes state-to-state, county-to-county and metro-to-metro migration datasets. A Google search for “Census Bureau migration data” will lead you to them. You also can purchase data from the U.S. Postal Service’s National Change of Address (NCOA) database. Although a license can be prohibitively expensive for individuals, a third-party NCOA processing service can help you obtain and parse data at a more affordable price point. In fact, NAR used NCOA data to inform its aforementioned analysis, from which it created free tools Residential Real Estate Council crs.com

that show the top feeder markets for every state and county in the country during the first eight months of the pandemic. Websites like Redfin and Trulia also publish migration data based on users’ searches. A DIY approach can give you a good albeit less precise feel for potential feeder markets. Using Google Analytics, for example, you can see where people are located who visit your website; if a lot of people are browsing your listing from a certain state, that’s a good indicator that people there are relocating to your market in solid numbers. You can use Google Ads’ Keyword Planner tool with similar success, suggests Pierre Calzadilla, vice president of growth at Local Logic, which provides geospatial data to customers in the real estate industry. Using the free tool, for instance, you can enter “moving to Chicago

Workers’ increased flexibility opens up a new world not only for individuals and families, but also for REALTORS®.

MARKET PULSE

Referrals

May/June 2021

To get wind of corporate relocations and expansions, keep your eye on your local business journal and the business sections of local, regional and national newspapers.

Grow your community and referral network by visiting find.crs.com.

Turn relocations into revenue

from” and see the top Google searches, which suggest strong interest in the Windy City from New York, Boston and California. Still hungry for intel? You could always solicit anecdotal assessments from moving companies, corporate recruiters and other in-the-know professionals.

Maintain relationships with happy transplants.

Befriend out-of-market real estate agents.

Because transplants are like ants— where there’s one, more almost certainly will follow—staying in touch with former transplants you’ve helped can be lucrative as they lure friends, family and colleagues to join them in your market. For example, Watkins says one of her first real estate clients in Birmingham was an executive from Chicago who was looking for a high-end rental. Although luxury rentals in her market were scarce, she found one for him and subsequently received 51 referrals over the course of three years as his company imported out-of-state recruits.

When it’s safe to congregate in person, REALTOR® Katherine Waters-Clark regularly connects with fellow agents at live industry events. “I’m meeting agents from all over the country and getting to know who vibes the way I vibe,” says Waters-Clark, an agent at Compass Boston in Winchester,

Massachusetts. “When someone impresses me, they become part of my referral network. So when I have a client who’s selling their house to move to San Francisco, I can say, ‘I know three amazing agents in San Francisco who I was just with in April. Let me connect you.’ And those agents will do the same. In fact, I sold a $3 million house this summer to buyers who moved to Boston from Berkeley, California, who were handed to me by another Compass agent.” Out-of-state agents also are a lucrative referral source for Delinda Crampton, CRS, based in Las Vegas. As team leader of The Crampton Team at Berkshire Hathaway HomeServices Nevada Properties, she gets approximately 20% of her business from agents she meets at industry gatherings. To build and maintain relationships with those agents, she conceived the novel idea of a “referral road trip”: In 2019, she flew to California—one of the largest feeder markets for Las Vegas—rented a car, then spent a week driving from Northern California to Southern California, treating local agents to meals, coffee and cocktails. “I saw about 125 REALTORS® during that week,” says Crampton, who had to cancel a follow-up trip to Los Angeles and Orange County because of COVID-19; instead, she sent a gift and listing brochures to the agents she’d hoped to meet. “It’s all about deepening relationships.”

Ingratiate yourself with educators and employers.

Every market has institutions and employers that are magnets for relocation. In Birmingham, for example, there is the University of Alabama at Birmingham (UAB), which is constantly attracting new students and employees from across the country The Residential Specialist trsmag.com

iStock.com/turbodesign777

May/June 2021 and around the world. Watkins offers her services to hiring managers there free of charge. “I say, ‘Listen: I know you’re hiring a lot of people who are not from the South. Let me help you tell them about Birmingham,’” explains Watkins, who often takes prospective employees on free tours of the city on behalf of UAB. “That’s been a very effective tool because I’m building a reputation for Birmingham, for UAB and for myself just by being an ambassador for my town.”

iStock.com/Angelina Bambina

Read the business section.

Just as companies recruit out5 of-state employees, cities and counties recruit out-of-state corporations. The resulting corporate relocations often transplant dozens, hundreds or even thousands of workers. To get wind of corporate relocations and expansions, keep your eye on your local business journal and the business sections of local, regional and national newspapers. Waters-Clark, for instance, receives news alerts from The Boston Globe. When Amazon recently announced plans to expand its offices in Boston, creating 3,000 new jobs, she heard about it right away. An even better source of business intelligence can be commercial real estate agents. “My local commercial agents can be a good source of incoming business because they know what’s about to happen before it hits the business journal,” says Watkins, who recalls one lucrative lead in particular. “We found out that State Farm was going to relocate a large group from Atlanta, so we contacted agents there and made a trip to Atlanta to meet with them. We offered to host an informational lunch about Birmingham for the people who were about to move, and that turned out to be a great source of referrals.” TRS Residential Real Estate Council crs.com

MARKET MOMENT

Homeownership Gaps Minority homeownership lags behind the national rate, with Black Americans facing the biggest hurdles, according to the NAR Snapshot of Race & Home Buying in America report. The 42% homeownership rate for Black Americans is nearly 30% less than the 69.8% rate for white Americans. The overall U.S. homeownership rate is 64.2%, with a rate of 60.7% for Asian Americans and 48.1% for Hispanic Americans.

Home affordability: 43% of Black households can afford to buy the typical home compared to 63% of white households, 71% of Asian households and 54% of Hispanic households, according to the study. Wide variances in affordability exist from state to state. Student loan debt: Black households (43%) are more than twice as likely than white households (21%) to have student loan debt. Mortgage loans: Black applicants were rejected for mortgage loans at a rate 2.5 times greater than white applicants— 10% vs. 4% , respectively. “The residential housing market’s strong performance during the pandemic helped homeowners enjoy a significant increase in wealth via approximately $1 trillion in additional home equity over the last year,” says NAR chief economist Lawrence Yun. “First-time homebuyers, many of whom are minorities, are being priced out of owning a home because of rapidly rising home prices resulting from historically-low housing inventory. For Black Americans, in general, the greater likelihood of having student loan debt, combined with lower household incomes and accrued savings when compared to the national average, adds to the challenge.” TRS

MARKET PULSE

At This Stage

May/June 2021

Business solutions for CRSs at all stages of their careers

How to Start Out Right

f there’s one thing successful real estate agents can agree on, it’s this: There are a lot of misconceptions about becoming a real estate agent. Whether it’s the old stereotypes, like the sunglasses-wearing agent driving an expensive car, or perceptions created by real estate TV shows in which the agent is little more than a deferential tour guide, real estate has an “easy money” reputation. Nothing could be further from the truth. Successful agents like CRSs understand exactly how much work it takes to build

a career. So when counseling someone who is thinking about a career in real estate, CRSs want them to know the truth. “As we know, there is a relatively low threshold for entering real estate in most states,” says Paul Rich, CRS, with Rooftop Realty in Henderson, Nevada. “There is a large gap between the required coursework and practical application.” RRC polled CRS agents about the advice they would give to agents who are just starting out, and this is the sound advice that they offered:

This isn’t a side hustle

Because the entrance threshold is low, the industry overflows with part-time agents. While a long-time agent can handle part-time work, newbies need the fulltime experience. The early learning curve is steep. “Do right by your client. Never try and do real estate part-time,” says Sam Turgeon, CRS, with Sunlight Realty in Zephyrhills, Florida. “Real estate is most families’ largest asset and they need a professional.”

Shadow a top agent

Connect with a top agent so you can observe firsthand how an effective business is run and absorb all the small details only a seasoned pro knows. “Observe and adopt the mindset, habits and work ethic of successful brokers,” says Rob McGuirt, CRS, with Charlotte Select Properties in North Carolina. “Success leaves clues.” John Young, CRS, with RE/MAX Excellence Realty outside Washington, D.C., suggests working for a top agent for free for the first three months of your career (because you won’t make any money in that time anyway, he says). The knowledge you’ll gain is unparalleled.

The Residential Specialist trsmag.com

May/June 2021

Build a solid foundation

Those first years are crucial to establishing your business. You’ll reap the rewards of the work you do on day one—if you do it right. “It takes time, persistence and effort to grow your business,” says Peggy Wester, CRS, with Realty Executives Integrity in Cedarburg, Wisconsin. “Getting your license does not equal the phone ringing off the hook with requests from family and friends to assist them with buying or selling a home.” You have to let them know, first. Call, email, catch up over coffee and announce it on social media. And track all this in a database. “Put systems in place to help manage your clients either by an automated or manual system,” says Tracey Fiorelli, CRS, with Janice Mitchell Real Estate outside Boston.

Establish a consistent system to reach out to these contacts multiple times a year. Get involved in your community so people get to know you. Join the Chamber of Commerce, local networking groups and clubs that align with your interests, Wester adds. Finally, farm a certain area or neighborhood, consistently and patiently, with a service like Every Door Direct Mail.

When counseling someone who is thinking about a career in real estate, CRSs want them to know the truth.

iStock.com/ra2studio/visualspace/fizkes/Sadeugra/LeManna/shapecharge

Treat it like a business

Get your finances in order

“First, know that it takes money to make money,” Wester says. “You are now selfemployed, and you have to invest in your business in order to grow your business.” You’ll need money for living expenses, to support yourself while you get on your feet, and money to invest in start-up costs— like branding, marketing and promotion. Rich suggests focusing on net profit, tracking expenses and income, as well as understanding your basic business metrics (cost per lead, for example).

“I talk with many people who consider a career change and explain they are not getting a real estate license—they are starting a new business,” says Kim Cameron, CRS, with Better Homes & Gardens Real Estate Preferred Properties in St. Louis. “You would not open a retail store without reserves and a business plan, yet so many dive into real estate with neither.” You are a business owner and entrepreneur, maybe more than you are a real estate agent, and you need to think like one. TRS

Just breaking into real estate? Learn how you can strategically grow your business with the webinar recording Creating a System for Success in 2021. Visit CRS.com/ learn/recordings.

Residential Real Estate Council crs.com

May/June 2021

think

The Residential Specialist trsmag.com

May/June 2021

By Megan Kramer

When we think about home enjoyment, much of the focus is on the inside: How big is the kitchen? How many bathrooms? Is the basement finished or unfinished?

iStock.com/Johnrob/Nubenamo

ut as the pandemic keeps people at home, even the houses we love can start giving us cabin fever. The solution? Stepping out into the backyard. People are leaning on their own outdoor spaces to get fresh air and sunlight, and perhaps to socialize in a more distanced way than they can inside their homes. This is one of the big reasons people are moving out of cities and urban areas—where they might not have much of a yard, or a yard at all—to suburban areas. “The market here is super-hot right now, like in most areas throughout the country,” says Steve Rath, CRS, broker at Better Homes Realty in Sacramento, California. “If you’ve got a great property, it’s selling in a week or two. One of the reasons is that there’s been an exodus out of the Bay Area because of COVID19. People are figuring out they can work from home, so they’re coming to areas like Sacramento, where they can get a lot more home, space and land than in the Bay Area.” But not all yards are created equal, and homes still need curb appeal to attract buyers. Whether a homeowner is looking to sell quickly, or they want to enjoy their outdoor space until they’re ready to sell, there are some things REALTORS® should keep in mind when advising their clients.

Residential Real Estate Council crs.com

May/June 2021

An appealing curb can be simple

Want to learn how you can boost your curb appeal? Check out the Home & Garden section of This REALTOR® Life blog at CRS.com/ resources/thisrealtor-life-blog.

Whether potential buyers are viewing a property in person or online, the front yard is important in attracting their attention and making a good first impression. Without curb appeal, buyers might pass on an otherwise great home. “I’ve had clients pull up and change their minds about wanting to view the inside due to poor exterior maintenance,” says Lisa Wozniakowski, broker/owner at Blue Ribbon Realty LLC in northwest Indiana, who has been a REALTOR® in her market since 2004 and is working toward her CRS Designation. “They think if the current owner

can’t maintain the lawn or exterior paint, or keep garbage out of the front yard, what are they doing to take care of the furnace, plumbing, electric, etc.?” While a front yard attracts buyers, backyards are what hold their interest. This exterior space offers the cleanest slate for buyers to envision their lives there because there are fewer personal touches than inside the home. “It’s easier to visualize a backyard cookout because there usually aren’t pictures of someone else’s family hanging on the walls of the backyard,” Wozniakowski says.

With all this pressure on the front yards and backyards, it might seem like homeowners need to create extravagant spaces in order to sell. But making yards appealing can be as simple as:

Upgrading the roof Planting mature/shade trees

Installing a new door or window frames

Power-washing the exterior of the home Installing or upgrading outdoor lighting

Pruning shrubs Adding fresh mulch to flower beds and planting fresh flowers

Installing stone walkways

The Residential Specialist trsmag.com

iStock./com/Johnrob

Keeping the grass freshly mowed

May/June 2021

PRETTY AND PURPOSEFUL

Planting flowers, shrubs and trees adds a pleasant aesthetic to front yards and backyards, but if done purposefully, homeowners can also make a positive impact on the environment. Choosing plants, grasses and flowers that are right for a homeowner’s climate zone can support local wildlife, particularly pollinators like bees. Planting based on climate zone reduces the yardwork homeowners have to do because the plants have natural cycles. “We’re learning that there’s a different kind of curb appeal,” says Kris Kiser, president and CEO of the Outdoor Power Equipment Institute (OPEI) and the TurfMutt Foundation. “People, especially younger generations, want something that’s purposeful. Nature can be tailored to your needs, and there’s a lot of plant material that doesn’t take much work. The key is buying what’s appropriate for the region.”

Support Bees by Planting These

Lavender

Sage

Cilantro

iStock.com/firina/A_M_Radul/DirkRietschel/Antonel/t_kimura/DaveBolton/Nubenamo

Add useful amenities While a simple, natural outdoor space can suffice to attract buyers, people may be looking for backyards to act as an extra living space because many indoor and outdoor venues remain closed or restricted due to COVID-19. Adding amenities to the exterior space of a home can help homeowners spread out and add value when they go to sell—as long as the amenities are useful. What someone finds useful can vary from person to person and depend on where they live; however, there are some amenities that have historically been favored by homeowners and buyers alike: f Outdoor heaters f Outdoor kitchens or fire pits f Patios or pergolas f Pools f Sheds “When you add something like a fire pit or an outdoor kitchen, you’re extending your living space, but it’s cheaper than doing an addition to your house,” notes Tracy Jones, CRS, broker associate at RE/MAX Platinum in Sarasota, Florida. “You’re not adding square footage to your house, but you’re adding space you can enjoy, so you don’t feel as cooped up.” Residential Real Estate Council crs.com

Buttercup

Crocus

Sunflower

Some features have also become more popular due to the pandemic; for example, sheds that were once used for extra storage are now being used as dwellings for family members, work-from-home offices or quiet spaces to escape.

A note of caution If a homeowner plans on living in their home and enjoying their outdoor space for a while, it’s important that they tailor it to their needs and preferences. However, they should be warned: upgrades and additions might not get them dollar-fordollar resale value. “I had a seller who invested $80,000+ in the backyard and even though she wasn’t planning on moving, she was still upset that it didn’t add that much to the value of the home,” Wozniakowski says. Homeowners should instead focus on what they want their yard to do—create a safe space for children and pets to play, an entertainment spot or a quiet reprieve—so they can enjoy it, and the right buyers will come when they’re ready to sell. TRS

Who Decides What’s Useful? There are many outdoor features that entice buyers, but it’s important to know what sells in your region or market. For example, while pools are practically a given in hot and humid climates like the South, they are a bust in more temperate climates. “Over the years, we’ve filled in several pools,” says Jay Buerger, CRS, managing broker/owner at Buerger and Company Real Estate in Denver. “Our summers last maybe five months, and pools are relatively expensive to maintain and come with liability costs. I would say 30% of buyers will disqualify a house because it has a pool.” Likewise, while water features seem like wasted space in some areas, depending on their price point, Buerger has seen Denver buyers covet features like waterfalls.

May/June 2021

COMPETI

the

By Andrew Conner

ER F OF

The Residential Specialist trsmag.com

May/June 2021

TIVE EDGE Even before the COVID-19 pandemic hit in March 2020, residential real estate agents were seeing inventories shrink and increased competition for homes.

iStock.com/ssnjaytuturkhi/Novruzova

The coronavirus only exacerbated these trends. Realtor.com reports that national inventory dropped by 42.6% in January 2021 compared to January 2020. In that same time period, the inventory of newly listed properties dropped 23.2% nationally and 17.3% in large metropolitan areas. With that in mind, you might be thinking about how you can make your buyers’ offers stand out to listing agents in a sea of other offers. Talking to agents across the country, there are a number of ways you can make your offer more attractive to sellers.

Residential Real Estate Council crs.com

May/June 2021

Crafting an appealing offer

When it comes to making your offer more competitive, the first thing that comes to mind is increasing the price. And, of course, this often works. But if you’re in an extremely competitive market and you need to go beyond offering additional money, or if your buyer isn’t interested in going over the list price, there are other ways you can make your offer more appealing.

“

If you see a house you like, you need to decide immediately whether to make an offer because it could be gone in the next hour.”

A clean contract: A good starting point is ensuring your offer is clean. “A clean contract is one without errors or blanks and with solid terms. This shows the listing agents that you are detailed and your clients put their best foot forward,” says Therese Jenkins, regional broker at Sentry Residential in Charleston,

LISTENING IN

—Cindy Ulsrud, CRS

One tip Lynn Fairfield, CRS, with RE/MAX Suburban in Libertyville, Illinois, has for buyers and their agents who want to make a good impression with a seller is to remember that you never know who might be listening to you as you view a house. Particu-

larly in these socially distanced times, sellers likely won’t be in the same room as you, but they could be listening through an Amazon Alexa or Google Home, Ring doorbell, or even a home security system. “This is anecdotal, but I had some buyers

who talked about how wonderful the house was during the showing,” says Fairfield. “It was a very popular house; there were three cars lined up right after us. But we were successful and the listing agent told me the seller said, ‘We want the people

who came in at 10 a.m. with the RE/MAX agent,’ because they heard us talking and thought the house would be perfect for my client. Whether it’s an Alexa or a Ring doorbell in the driveway, I always tell my clients to be careful about what they say.”

The Residential Specialist trsmag.com

iStock.com/ssnjaytuturkhi/rambo182

May/June 2021 South Carolina. “As a listing agent, I once fees for appraisals when time is a factor: received a contract with 13 errors and/or “It usually costs a couple hundred dollars, blanks! My clients chose to proceed with and that is always money worth spending.” this one, and as I suspected, the buyer’s Include a cover letter: agent was extremely disorganized, and the Additionally, Cristanelli deal was difficult from day one.” includes a cover letter Pre-approval: Another key in every offer she sends. aspect of an attractive “I summarize the terms offer is loan pre-approval. and conditions of the offer In a competitive market, and include a brief summary of who the a strong, clear prebuyers are,” she says. approval from a lender is almost a necessity. When a seller has a pile Getting buy-in from buyers of offers and one doesn’t have pre-approval, All of the above strategies will help your it is easy to remove it from consideration. offer stand out to a seller. However, if you “To be in the best possible situation to have can’t get buy-in from your buyer on using an offer accepted, the buyer must be prethese strategies, they are useless. approved with a lender,” says Doris LaBeau, Coaching clients: “I think CRS, broker/co-owner with RE/MAX coaching clients is Masters in Flat Rock, Michigan. “And be really important,” says aware that the pre-approval process is Cindy Ulsrud, CRS, with subject to things like verifying credit scores Ferraro Real Estate/ or employment. I always recommend going eXp Realty in Madison, through the pre-approval process with Wisconsin. “We have an initial consultation someone on the lender side who will verify with most of our clients, and during that information and confirm they completed conversation we talk about what the proa preliminary search.” cess looks like, from the prequalifying stage A quick close: For Roseline to closing.” Cristanelli, CRS, broker/ In a competitive market, this is even more important. “If you see a house you like, you owner with Reliance First need to decide immediately whether to Realty in Tempe, Arizona, one advantage she provides make an offer because it could be gone in the next hour,” says Ulsrud. “For first-time for her buyers is a quick homebuyers it can be overwhelming. They close. “If I know we have to compete for the see a house they fall in love with, and then offer, immediately on my way home from everything happens so quickly.” the showing I’m on the phone with the Lynn Fairfield, CRS, with RE/MAX seller’s agent asking them what the most Suburban in Libertyville, Illinois, views this important terms for the seller are because type of consultation as essential to managsometimes price is not it,” she explains. ing expectations with clients. Cristanelli has a local lender she works “I look at it as an educational process,” with who, when approved by her clients, can says Fairfield. “You have to prepare the be relied on for closing within 21 days. This buyer by explaining they will have a gives her buyers an edge when the seller is competitive edge if they do things like motivated to sell quickly. accept the home ‘as is.’ The market has Cristanelli also uses other techniques to shave time off of the transaction. “For some changed, and as REALTORS® we need to change with it, giving a different level of clients, we’ll waive the appraisal contineducation to and advocacy for the buyer. gency,” says Cristanelli. “Usually people With limited inventory and the pandemic, order the appraisal after the inspection, but the whole dynamic has changed. You have we’ll do both at the same time. That way, to understand what’s going on and make even if the appraisal comes in low, during sure your buyer understands that if you the inspection period there are many things you can do for your buyers to cancel.” want to buy a house, you have to play by these rules.” TRS Cristanelli also recommends paying rush Residential Real Estate Council crs.com

In January 2021, in the 50 largest U.S. metro areas, the typical home spent 60 days on the market, and homes spent 12 fewer days on the market, on average, than in January 2020.

Areas that decreased most: f The South and West, where the typical property spent

2 weeks less

time on the market compared to last year. f The Midwest

12 days less

f The Northeast

11 days less

Source: Realtor.com

For more effective and efficient ways to increase your inventory, check out the course Creating Listing Abundance at CRS.com/learn.

May/June 2021

HOW TO BE AN INVESTOR’S

No. 1 Agent N G /S E ING

Adding investor sales to your portfolio can be a lucrative move for residential real estate agents—but investors come with some unique quirks.

Investor sales differ from standard residential sales in many ways, but one stands out above the rest: They’re not about emotion. Buyers don’t have to fall in love with a house, picture themselves living in it or see their kids growing up there. “Investing is strictly about the numbers,” says Lisa Candella-Hulbert, CRS, associate broker with Berkshire Hathaway HomeServices Fox and Roach in Princeton, New Jersey. “Do the numbers work? Because if you can’t sell them on the numbers, investors will walk away, even if the property is phenomenal and in a great location.” Becoming an investing expert comes in three stages: 1. Starting out 2. Staking your claim on an investor’s team 3. Building your investor base

The Residential Specialist trsmag.com

iStock.com/PeopleImages/LumiNola/StarLineArts/Tanakan Wirawanlerd

2021 BU

By Michelle Huffman

May/June 2021

Investors in the Rental Market Number of rental housing units:

48.2 million Percentage of rental properties with 1–4 units:

49%

How to get started with investors f Become an investor yourself. “There’s no experience like life experience,” says Nelson Zide, CRS, with ERA Key Realty Services in Framingham, Massachusetts. By investing in property, you learn about renovation costs, property management tricks and how to ignore standard-issue advice and take an investor-specific perspective. “When I look at a home, I think like a landlord,” says John Baker, CRS, Tumbleweed Real Estate, Inc. in Sunriver, Oregon. “Let’s say the house has marble countertops. They look beautiful, but Tommy Tenant with a hammer can do thousands of dollars in damage.”

Residential Real Estate Council crs.com

f Attend investor meetings. If you’re not ready to become an investor, immerse yourself in the investor lifestyle by attending investor meetings like the Real Estate Investment Association (REIA), which is how CandellaHulbert got her start. “I started volunteering to sit at the front desk and help with the meetings and created relationships with a couple of new investors,” she says. She learned alongside those early investors.

Percentage of 1-to-4-unit rental properties owned by individual investors:

73% Source: 2018 Rental Housing Finance Survey (released in 2020)

May/June 2021

“

—Lisa CandellaHulbert, CRS

How to get on an investor’s trusted team Once you’ve established yourself as an investor-worthy agent, the next goal is to become a trusted resource and join an investor’s informal “team” of specialists. In this way, investors can be extremely lucrative through repeat and referral business. To get on an investor’s team, investors want to see some specific qualities.

Here’s a rundown: f Know your numbers. While investors will typically have run their own numbers, you need to be able to do the math, too, and find the investment property sweet spot in your local market. “The lower the price, the better the ratio becomes, but you can’t go down into the junk area, so you have to know the zone,” Baker says. You also need to be able to do a simple cash-flow analysis and understand the return rate.

Sharpen your relationship with investors by attending the course Understanding the Residential Investor Needs at CRS.com/learn.

f Be the resource they need. There’s a lot you need to know to be a successful agent for a real estate investor, says Veronica Woods, a CRS candidate with the Daniel Woods Real Estate Company in Chester, Pennsylvania. This knowledge goes beyond the real estate and rental market: Knowing investmentrelevant tax codes, understanding nonbank or nontraditional financing and having familiarity with how to set up an investment business like an LLC or corporation can be important in differentiating your services. “If you’re not bringing that to the table, you’re left as a transaction manager,” Woods says.

f Demonstrate your superior market knowledge. Knowing the residential sales market, as well as the residential rental market, is key. Investors sometimes make generous assumptions about what kind of rent rate or resale value they can achieve, and they base a deal on these invalid notions, Woods says. Sometimes investors get tunnel vision and try to make the lowest offer possible. You have to be able to stand up to your investors based on real market data and your experience, she adds. f Access to hard-to-find deals. Because MLS data is so readily available, investors are expecting you to find deals nobody else has access to, Woods says. This may mean talking to a FSBO seller, campaigning with sellers to find a house that meets investors’ demands and networking with other agents to get the right property. f Speak the language. “Learn to speak their language,” says Candella-Hulbert. “Be able to talk about ARV (after repair value), cap rates, buy-and-holds vs. fix-and-flips, financing and the language of numbers— and have market knowledge.” The Residential Specialist trsmag.com

iStock.com/PeopleImages/StarLineArts/undefined undefined

If you can’t sell them on the numbers, investors will walk away, even if the property is phenomenal and in a great location.”

May/June 2021 After becoming a seasoned investor’s agent, the best way to build your client base is to become the expert. Regardless of where you focus—segments like multifamily, single-family, fix-and-flip and buy-and-hold, or niches like property management or renovation—you want to own that space. While that will provide you with word-of-mouth clients, you can also actively drum up more business. � Develop an eye for what makes a good rental or flip. You want to bring properties to your clients. That’s why being able to run the numbers and securely command the investor’s prospective market knowledge will win you more transactions. “When a property comes on the market that I think will make a good deal, I do a video preview of the property or a FaceTime walkthrough,” Candella-Hulbert says. “I jump on it immediately.” Having that eye for the right property for the right investor will create deals.

How to build a client base

f Create new investors yourself. “I do a lot of prospecting calls, and one of the questions

I ask a lot of the people is about investing,” Zide says. “For example, I may talk about investing for your children’s college and discuss the 529 [savings plan], but also try to sell them on the positive cash flow of a long-term investment property.” f Educate others on investing. “There’s not a lot of investor education that’s run by licensed professionals,” Woods says. This can mean running classes, but it can also mean creating YouTube videos or podcasts. Candella-Hulbert appears on podcasts for investors as a subject-matter expert. Working with investors can provide you with a whole new revenue stream that will supplement your standard residential business, especially during quiet months. “There’s no season to investing,” Woods says. “Investors are always on the hunt for deals.” TRS

Top 5 Markets for Investor Demand 1. Austin 2. D allas/Fort Worth

3. N ashville 4. C harlotte 5. B oston

for Development/Redevelopment 1. Raleigh/Durham 2. Charlotte 3. Northern New Jersey

4. Austin 5. Phoenix

PROSPECTS FOR RESIDENTIAL PROPERTY TYPES IN 2021 Excellent

f Single family—moderate/workforce f Master-planned communities f Manufactured-home communities

Source: Emerging Trends in the United States and Canada, Urban Land Institute (p. 35)

Residential Real Estate Council crs.com

Fair

f Single family— high income f Vacation homes f Senior housing

Resources for you or your clients This resource and education site is a go-to for new and growing investors and can help you network for clients. BiggerPockets.com

A comprehensive real estate investing information site. GetRichEducation.com

This membership site and podcast offers education, support and networking specifically for women investors. TheRealEstateInvest Her.com Monthly landlord/ property management groups: These local groups can provide a lot of insight for your clients and potential new clients for you.

May/June 2021

THE

ACHIEVABLE dream By Chasity Cooper

The Residential Specialist trsmag.com

May/June 2021

Like many sectors, the real estate industry has experienced its own challenges since the coronavirus pandemic began last March.

Social distancing and shelter-inplace orders nationwide brought Americans to the realization that they needed more space for their families, friends and pets to thrive. With low mortgage rates, more people became interested in purchasing homes for the first time—some leaving behind the hustle and bustle of big-city life for quieter and calmer pastures.

iStock.com/Cecilie_Arcurs/mustafagull/Gebbi Mur/JuliarStudio

FUTURE buyers Even as the number of homeowners has increased, it hasn’t changed the fact that inventory is still extremely low—even for rental properties. Generally speaking, some real estate professionals choose not to work with renters simply because the financial compensation is lower than. But despite the extra steps that may be required, some REALTORS® believe that working with renters can help potential buyers gain the confidence to one day achieve their slice of the American dream. In Tucson, Arizona, veteran real estate broker Michael Mulvena, CRS, has worked with a range of clients— from retirees who want a seasonal rental to escape the winter cold of their hometowns to young couples who are looking to build their family’s first home. His brokerage firm, Wildcat Country Real Estate, aims

Residential Real Estate Council crs.com

to help customers who are not only selling, buying and building, but also renting. “Right at the very beginning of the process, we always ask every prospective tenant, ‘Are you planning on buying?’” Mulvena says. “If so, we offer them an opportunity to do a deep dive into their finances so that they can get a better understanding of what is possible. We take a look at areas where they can save money and apply that savings to pay off some debt. It may take one to two years, but over time, most will eventually qualify to buy a home.” According to Apartment List’s January 2021 National Rent Report, the national rent index increased by 0.1% month over month, which represented the first time that rents had seen a boost nationally since August 2020. While many big cities like San

“

Right at the very beginning of the process, we always ask every prospective tenant, ‘Are you planning on buying?’”

—Michael Mulvena, CRS

May/June 2021

“

I find that many people don’t know that they are close to being in a position to buy.”

Francisco, Chicago and New York City have experienced dips in rent since the start of the pandemic, this rent growth in other areas shows the market is beginning to stabilize. Brenda Stone, CRS, a real estate agent in Alexandria, Virginia, is used to seeing the real estate market in the Washington, D.C., metro area fluctuate due to the number of military and government employees that are always in and out of the city on assignment. “In my experience, most tenants don’t know they can use a REALTOR® to help

them find a rental home. I know a lot of REALTORS® dismiss working with tenants, but I think that is a mistake,” Stone says. “The whole point of our business is to build relationships. Whether these clients turn into future buyers or great referral sources, they need our expertise as much as anyone else. A lot of tenants don’t know they can negotiate on the terms of the lease or the rental price. Being an advocate for renters shows them your skills, compassion and professionalism, which will translate to future business.”

—Michele ChilesHickman, CRS

TURNING RENTERS INTO HOMEBUYERS

To stay up to date on the latest news for consumers, follow us on Facebook. com/ThisIsRRC.

Encourage them to budLet them know that it is possible get and save to prepare for the buying process “I find that many people don’t know that they are close to being in “When speaking with renters who a position to buy,” says Michele wish to buy in the future, I have Chiles-Hickman, CRS, Montclair, them speak to my lender,” says New Jersey. “They’ve heard Brenda Stone, CRS, Alexandria, Virreports that you must put 20% ginia. “My lender provides guidance down, which isn’t always true.” to help put them in the best position From showing homes in potenfor purchasing when they’re ready.” tial neighborhoods to offering From checking their credit to helping resources to assist with a down them find any errors on their credit payment, allowing renters to see report, a lender should always be the possibility will bring them the first step in purchasing a home. closer to a dream come true.

Always remain in constant contact with rental clients There are several ways to remain in touch with clients, even after they have moved into their new homes. “Maintaining good relationships is the key to success in this business,” says Michael Mulvena, CRS, Tucson, Arizona. “Even if your client isn’t ready to purchase a home, they may refer you to someone else who may be ready to take that step.”

The Residential Specialist trsmag.com

May/June 2021

STAYING PROACTIVE WITH

communication

When it comes to working with renters, Stone maintains consistent communication, even after she has placed them in a rental property. “Once they move in, they go into my database so they can receive updates from me,” she says. “Then, I’ll check in with them about three months prior to their lease termination. This is when I have a conversation about potentially buying, extending their current lease or other plans they might have.” Consistent communication may seem overzealous, but it ensures that your services for the client are always top of mind. “I’ve worked with tenants who have expressed a desire to buy a home, but who feel insecure about not having enough money for a down payment,” Mulvena says. “In that event, I’ll refer them to local resources and grants that can help with securing the funds.”

iStock.com/anyaberkut/Gebbi Mur

SEEING delays In Montclair, New Jersey, real estate agent Michele Chiles-Hickman, CRS, says that since the start of the pandemic, rentals haven’t moved as quickly as they have in years past. “This could be due to the fact that people weren’t moving as much because of COVID-19 or the low interest rates on homes turning more renters into buyers, but we still have so many buyers and not enough inventory,” she says. Chiles-Hickman works with a lot of landlords regularly and through the process, learns more about renters’ habits and when it’s the right time to approach them about potentially buying. “From my experience, the time frame for turning a renter into a buyer could take between two and four years,” she says. “But given the pandemic, we certainly shouldn’t be discouraged if every rental we placed in the last two or three years is not buying this year.” Stone says that sometimes there isn’t a specific timeline, but it can depend on the client’s financial situation. “For a lot of people, they come to our area and rent because they want to make sure they are Residential Real Estate Council crs.com

going to like their job and the city. After a one-year lease term, they are ready to buy,” she says. “Other clients come to the area thinking it will be a short stay and after a few years, they realize that renting doesn’t make financial sense as their job or family is going to keep them here long term. That is why keeping in touch with them through their lease term is crucial.” Overall, REALTORS® who work with renters are not only creating a pathway to homeownership for more clients, but they are helping people improve their lives. “I would just encourage agents to be open to working with renters and to have a system when working with them,” ChilesHickman says. “It can take almost as much paperwork as the sale of a house, but we should look at the whole picture and view renters as part of the pipeline of potential homebuyers.” TRS

National Rent Index Shows Largest Monthly Jump Since 2019 Rents fell by 1.2% nationally from March through June 2020, but rents are now just 0.1% lower than they were last June. Rents Decline in Hard-Hit Markets Top 10 Largest YoY Rent Declines 1. San Francisco -26% 2. New York -21% 3. Seattle -20% 4. Boston -17% 5. Oakland -15% 6. Washington, D.C. -13% 7. Arlington -13% 8. San Jose -13% 9. Chicago -12% 10. Jersey City -11% Rents Continue to Rise in Hot Markets Top 10 Largest YoY Rent Increases 1. Boise +14% 2. Fresno +11% 3. Gilbert +10% 4. Bakersfield +9% 5. Greensboro +8% 6. Memphis +8% 7. Chesapeake +8% 8. Albuquerque +8% 9. Glendale +7% 10. Tucson +7% Source: Apartment Lists

Market Values

May/June 2021

Insights from industry data

8.9 Million People

MO KY WV MD DE NAR collected United DC KS StatesAR TN VA NC UT ® Postal Service SINCE THE BEGINNING OF THE PANDEMIC OK change-ofLA MS AL SC Net Migration by State During the Pandemic address data from March to GA TX NET MIGRATION Net Migration Moves during March–October 2020 October 2020 FL for each county Blue2,032 States = Red States = -2,847 Migration Gains Migration Loss across the Expect similar United States. Source: NAR

Net Migration FL

OUTFLOWS: Top destinations

-2,847

migration patterns for 2021

2,032

INFLOWS: Who’s moving in TEXAS

� A rkansas ....................... 15.6 � F lorida ........................... 12.9% � N ew Mexico ..................... 9.4% � C alifornia......................... 5.4% � A rizona ............................. 5.4% %

� A rkansas ....................... 37.4% � C alifornia..................... 20.4% � Illinois...............................6.5% � N ew York ......................... 5.3% � K entucky........................ 4.8%

NEW YORK � N ew Jersey ................. 54.7 � C onnecticut .................. 12.1% �Florida............................. 8.0% � Tennessee ........................ 7.8% �Massachusetts ................2.5% %

� F lorida .......................... 33.3% � N ew Jersey ................. 24.6% � Illinois............................ 10.3% � C onnecticut .....................5.9% � N orth Carolina................ 4.7%

NEW JERSEY � F lorida .......................... 36.5% � N ew York ..................... 30.5% � P ennsylvania................ 18.3% � D elaware......................... 5.0% � I owa..................................2.9%

� N ew York ......................74.9% � F lorida ........................... 14.1% � P ennsylvania................... 8.1% � Illinois............................... 1.3% � Texas ................................. 1.1%

SOUTH CAROLINA � N orth Carolina .............72.7% � O hio ............................... 10.9% � Indiana .............................6.3% � G eorgia............................ 5.0% � A labama........................... 5.0%

� N orth Carolina ............. 77.2% � G eorgia............................ 9.3% � Texas ................................ 9.2% � O regon.............................. 1.1% � W isconsin ........................0.8% The Residential Specialist trsmag.com

May/June 2021

Relocated NET MOVES 3/20–10/20

Top 10 States with the Most People Moving

›››››››››››››››› IN & OUT ›››››››››››››› New Jersey South Carolina Maryland

2,032

-2,847

1,439 1,035

-2,681 -1,114

679

Iowa Connecticut

New York Texas District of Columbia

-905

545

-726

North Carolina California

Nevada

416

-421

Pennsylvania

Arizona

386

-400

Illinois

New Mexico

338

-188

Ohio

334

-141

West Virginia

Mississippi

282

-102

Florida

Minnesota

50 More than

of those who left New York moved to New Jersey.

GROSS MOVES BY COUNTY (3/20–10/20)

MOST GAINS

iStock.com/filo

3,832

Number of people who moved to Williamson County, Texas. Residential Real Estate Council crs.com

MOST LOSSES

-10,200 Number of people who moved out of New York, New York.

Be informed on the latest real estate data by visiting NAR.realtor. For more information on using relocation data to enhance your referral network, read Relocation Renaissance on page 12.

SPECIALIZED

Council Classroom

May/June 2021

KNOWLEDGE

Strategies from the industry’s top educators

What Is the IDEAL Investment? Pat Zaby, CRS, has taught investments for RRC since 1983 in every state. He successfully developed software that, over 10 years, became one of the leading agent productivity packages, with over 20,000 users. His contributions to real estate as a national speaker, author and developer have earned him recognition as one of the industry’s authorities.

have been teaching this course for REALTORS® since 1993, and even though it has been consistently refreshed to keep all pertinent tax information up to date, the basic premise is as sound today as it was two decades ago. REALTORS® who are looking to make a good investment should consider purchasing real estate. It makes sense to invest your money in something about which you have detailed knowledge and over which you can exert some control. Investing in companies through the stock market means you are relying on other people’s decisions about whether or not you’ll make money. In addition, as a REALTOR®, you can make your investment purchase at a discount. Even better, you can see the best opportunities, sometimes even before they’re listed. Real estate has been called an “ideal” investment, which sounds like it is describing the perfect investment. In this case though, “IDEAL” is used as an acronym to explain why rentals are such a good investment.

the investment to realize the profit. With a 20%–25% down payment, coupled with the low interest rates on mortgages and high rental rates, rental investments regularly have a positive cash flow. Depreciation is a tax benefit that is strictly for rental real estate, and it’s one of the few tax shelters that are still part of the IRS tax The Residential Specialist trsmag.com

iStock.com/filo/iconsimo

Income. Rental real estate generates income when the rent is more than the expenses, and there is a positive cash flow. Income on a stock is one that pays a dividend. The interest earned on a savings account is income. However, many investments don’t have income and the investor must wait to sell

May/June 2021 code. It is a non-cash deduction from taxable income for wear and tear on assets. Equity buildup results from the amortization of the mortgage. The P&I payment pays the interest due plus an amount to retire the principal of the loan. Each payment applies less toward interest each month and more toward principal. As an example, I have a rental property purchased with a 15-year loan that I’ve owned for about 11 years. The total payment on the property is $2,300, but last month $1,100 of the payment was principal reduction on the loan. That is like an additional cash flow. It didn’t go into my savings account and it’s not as liquid as cash, but it’s still part of my increased equity. Appreciation. Most real estate properties go up in value over time. During short periods of time, however, home values can fluctuate and even decrease, for example, due to natural disasters, economic events such as changes in interest rates or when a housing bubble bursts as it did in 2009. The properties we’re concerned with are primarily owner-occupied residences in areas with good resale. On a national basis, according to National Association of REALTORS®, annual price growth over the last 10 years has been 6.4%. In the last five years, it has grown at 7.3% annually. Research is readily available to see what kind of appreciation a specific property has received, and based on supply and demand, an investor makes a determination on what can be reasonably expected. Leverage. When borrowed funds are used to control an investment, it can actually increase the yield. A simple example would be the purchase of a property for $100,000 cash. If you rented out Residential Real Estate Council crs.com

the property, paid the expenses and had $10,000 left, it would generate a 10% return ($10,000/$100,000). If you put an $80,000 mortgage on the property at 5%, you’d owe $4,000 in interest and would only have $6,000 left. However, you now only have $20,000 in cash in the property and the yield would increase to 30% ($6,000/$20,000). The use of borrowed funds, called leverage, increases the yield. There is another investment characteristic that is not addressed in the IDEAL formula, and that is risk: the uncertainty of knowing the outcome of an investment. Any careful investor will compare available alternatives and weigh them with their personal knowledge of each, since familiarity can help lessen the risk. Having your money in a savings account is guaranteed by the Federal Deposit Insurance Corporation (FDIC). There is very little risk, but there is also not much reward. Today’s rates are between 0.35% and 0.5%. The next option might be a 10-year Treasury bond that pays 1.55%. The concern might be committing your money for 10 years at a rate less than anticipated inflation. The stock market might be an alternative that looks good, especially in light of the new record highs, but many people can’t handle the volatility and may not have the expertise to understand all of the nuances that could make or break their investment. Since homeowners are familiar with the operation of a home and its related components, like insurance, taxes, maintenance and other things, operating a rental home is not a far stretch. Similarly, since a typical residential agent’s business is owneroccupied homes, and it is these same homes that are being used as rentals, the agent’s understanding of rentals should be greater than for many other types of investments. Agents can share their knowledge and experience with potential investors while also investing for their own accounts. They benefit in several ways: Clients will usually buy additional properties once they start making money, and they have a tendency to tell their friends about the real estate professional who helped them with their investments. It is easy to understand why so many people think rentals are the IDEAL investment. TRS

It makes sense to invest your money in something about which you have detailed knowledge and over which you can exert some control.

Pat Zaby, CRS, received his CRS Designation in 1977. He can be reached at Pat@PatZaby.com or 214-850-7308.

SPECIALIZED

Innovations

May/June 2021

KNOWLEDGE

Tech solutions for real estate

Time to Tech Up

A %

of millennial and

of Gen X home shoppers seek health and wellness technology in a new home. Taylor Morrison, homebuilder and developer 2020 survey

2. PROPERTY MARKET ANALYSIS

Discover how you can propel your business into the future by attending the course Technology and Plans for Success at CRS.com/learn.

For REALTORS® who work within the property investment niche, look for technology that’s specifically created to guide informed real estate investments and provides a data analytics platform that’s constantly refreshed as information evolves. Mashvisor (mashvisor.com) is one app that delivers deep property market analyses to significantly simplify and speed

4. DESKLESS STAFF MANAGEMENT/ COMMUNICATION

With remote working predicted to shift from a temporary solution during the pandemic to a permanent and strategically advantageous way of life, it’s time to investigate collaboration software platforms to help you seamlessly communicate with and manage your deskless staff. One option is Connecteam (connecteam. com). The platform delivers communication features such as group and private The Residential Specialist trsmag.com

iStock.com/BadBrother

40 % 35 Nearly

s the pandemic brought a halt to business as usual, it was often technology that stepped up to keep things moving. Specific to REALTORS®, many of these apps and software platforms are being tagged as “keepers” post-pandemic. It turns out that the technology not only served an immediate need, but also provided additional benefits. Here are several tech developments that may prove important as you propel your business into the future. up the ability to identify and analyze a 1. CLOUD rental property’s profitability, including whether a property is projected to perSTORAGE With the work form better as a traditional rental vs. an from home Airbnb lodging. (WFH) concept predicted to play 3. CLEANLINESS a major role in AND MINIMIZING America’s new THE SPREAD OF normal, the benefits of cloud storage tech- GERMS nology cannot be ignored. After all, how Moving away from many REALTORS® have space in their the agent’s office, let’s home office to file the mountain of paperexplore the homework associated with even one property buyer’s evolving wish sale? However, before signing up with list—because a few new desirable technola service, try an online search for “best ogies may deserve emphasis in a property’s business cloud storage and file sharing marketing materials. Topping the homeproviders” and see how many times the buyer's list is technology that enhances a same provider lands on a top 10 list. home’s cleanliness or helps prevent the Egnyte (egnyte.com), repeatedly pops up spread of germs. That includes touchless on 2021 lists. Reviewers credit the service’s and voice-enabled tech, such as smart locks, multiple onboarding resources for new motion-sensored and touchless kitchen and and existing cloud storage users, includbathroom faucets, and indoor air purification ing live training, demos and webinars. It’s systems to filter out harmful germs. Nonalso referred to as a “mature” cloud storage toxic building materials that result from and sharing platform, meaning it’s been tech-advanced manufacturing procedures deserve a marketing plug, as well. around the block and has had time to develop rock-solid security.

May/June 2021

Among home sellers who did not consider virtual home tours as necessary before the pandemic, 69% now consider them essential, according to a September 2020 report from the real estate marketing firm Mosaic Design. The same survey found that 82% of homebuyers find 3D tours to be a more accurate representation of a home than photos alone. And the online livestreaming industry has grown 99% between April 2019 and April 2020, according to techjury.net.

chat, real-time push notifications, searchable digital libraries of every form, and a sharable, searchable contact list. To delegate and coordinate with fellow deskless professionals, REALTORS® can use the platform’s task management feature to create one-off tasks, assign tasks with built-in reminders and receive a notification once the task is complete.

5. VIRTUAL TOURS AND LIVESTREAMING

A fully immersive, unforgettable virtual viewing experience isn’t a new concept, but the technology certainly gained traction in 2020. Moving forward, even as in-person home viewing slowly reopens, buyers will likely continue to expect an extraordinary digital home shopping experience. With open houses and in-person showings continuing to be a challenge in many markets, Realtor.com has worked collaboratively with MLSs across the country to build out a function on its site to showcase these events, supporting several platforms for livestreaming open houses. Residential Real Estate Council crs.com

6. LIVE CHAT

Live chat lets clients— and potential clients— connect with you instantly through a live chat window that pops up on a website or mobile app. Chat can also include an AI bot that responds to initial questions from potential clients, then turns the inquiry over to a real estate agent to respond with more specifics. Freshchat (freshworks.com) is a modern live chat software program created to help acquire, engage and support customers on whatever device or communication channel they are using. Leads get an instant response to questions, either from an AI-programmed bot or from someone assigned to cover lead inquiries. The software includes a wide range of additional features, but it always comes back to immediate and intelligent customer engagement. As the number of vaccinated Americans continues to increase and a return to normalcy is more than wishful thinking, there’s no denying that tomorrow’s normal may look different. And that will include moving property technology front and center. Many of the apps and software platforms recently marketed to keep agents, brokers, homebuyers, home sellers and property investors safe, connected and productive proved their mettle. TRS

Chat-based support requests increased by about

in 2020, implying that a need for a quick and targeted client response is at an all-time high.

Zendesk 2021 Customer Experience Trends Report

36.2 million Americans will be working remotely by 2025, which is an

increase from pre-pandemic levels.

Upwork’s Future of Workforce Pulse Report

SPECIALIZED

Wide Angle

May/June 2021

KNOWLEDGE

Legal and financial focus

Three Onboarding Strategies You Need Now By Lisa Marshall

Lisa Marshall, Chief Marketing Officer at RRC Before Lisa transitioned her career to marketing and sales, she was an HR professional with over 10 years of experience. She holds a master’s degree in Business and Human Resources, and she has provided HR consulting services to The Chicago Community Trust, Peggy Notebart Nature Museum and Paylocity.

uilding a strong workforce begins with onboarding. What many organizations overlook is that the employee onboarding process starts before a new hire enters the door of your organization. A smooth and thorough orientation to your organization and culture is important to create a smooth transition for your new hire. A documented transition plan will assure the organization that you have met all compliance requirements for your new hire while simultaneously decreasing employee turnover and fostering a positive work experience. To be sure you have a compliant onboarding process, here are three key objectives that should be included in your onboarding plan to ensure that your new hire has the support and resources to succeed.

Objective 1: Foundation Matters

Do not delay! Make sure your new hire’s legal paperwork is handled on the first day. The majority of HR compliance forms

that are required for new hires must be completed within the first few days of their start date. Some of these legal documents include: f Employee f W-2s Handbook f I-9s f Employee Payroll f Benefits Setup Forms Enrollment f NDAs Completing and processing these legal forms are a must-do step on your hire’s first day. This step not only protects your organization from various risks, but ensures that your new hire is prepared for a successful first week and reduces any confusion or delays caused by paperwork being processed late. Recommendation: A great way to streamline all the legal paperwork is to implement an HR onboarding platform into your organization. If you are unsure how to find a system or need assistance with identifying the required paperwork for your state/local region, RRC Broker Solution Consultants are available to help you align your needs

The Residential Specialist trsmag.com

May/June 2021 with the systems and forms required to get compliant and stay there.

iStock.com/metamorworks

Objective 2: Set the Standard

Company culture means something different to every organization. However, there is one thing that remains constant for every employee hired: If a new hire does not respect or support the company culture, they will not be successful. A well-defined onboarding process creates an opportunity for the hiring manager to provide a brief history of the organization, review the leadership of the organization and go in-depth with the new hire about the roots of the organization and the unique culture in which they are now a part. We call these meetings culture briefings, and they give your new team member the opportunity to connect to the organization’s mission, vision and core values. Building that connection early in the new member’s employment will help them connect to the organization. Recommendation: During the onboarding period, assign your new hire a buddy or mentor who will work closely with your new hire and help them navigate through onboarding, check in with them daily and report any concerns to the supervisor/manager. A mentor/ buddy helps the organization respond to concerns and issues in a timely manner

rather than waiting until the full onboarding process has been completed. If serious concerns are raised during the onboarding period, do not wait to respond. The key to new employee success is not letting your new hire go without the support and resources they need during the onboarding process.

Objective 3: Service Over Speed

The hiring market has experienced permanent change since COVID-19. These changes have created new challenges for almost all industries during the hiring process. Now, more than ever, organizations may feel tempted to take the shortcut of training an employee quickly. Do not fall victim to that temptation. The average onboarding plan should take up to 90 days and be accompanied with clear expectations and goals. Do not rush through training. Make sure that your new hire understands how to do their job, and create key milestones for their success as they evolve during their onboarding. Recommendation: Take your time and be patient during the onboarding process. Ensure that your new hire has everything they need to do their job, and do not let the need to fill the position force you to miss important steps throughout the process that can lead to employee and organizational success. TRS

Onboarding— the Foundation for Success f Onboarding is a critical part of any hiring process. f Compliance risk can be reduced through a good onboarding plan. f Employees who understand the culture will assimilate faster. f Assign a new hire partner to check in during the onboarding period. f HRIS platforms can streamline the hiring process and ensure that compliance objectives are met. f Take your time—there are no shortcuts in onboarding.

RRC Broker Solution Consultants are available to help you align your needs with the systems and forms required to get compliant and stay there. You can contact an HR consultant at CRS.com/ broker-solutions.

Residential Real Estate Council crs.com

DESIGNATION

NATION

Your Own Council

May/June May/June 2021 2021

News and updates

 A service for Independent Broker Owners

To learn more about Broker Solutions, visit: CRS.com/ broker-solutions.

Broker Solutions

he Council proudly announces Broker Solutions. Broker Solutions came from the idea that independent broker/owners should have access to the same enterprise-level tools and resources as major franchises and corporations. The Council worked with an advisory board comprising well-respected independent brokers from around the country to identify and develop key partnerships, resources and services designed to provide independent broker/owners with a platform that allows them to compete. Broker Solutions has one goal: Creating a competitive advantage specifically for independent broker/owners to compete in this market and the market of the future. Starting April 8, 2021, Broker Solutions launched its first cohort, Agent PLAN.

Agent PLAN is designed to help REALTORS® of all skill levels hit the ground running on their personal and professional real estate goals. This 12-week journey of achievement and networking accompanies each agent with a dedicated virtual coach to help them reach their full potential. The best brokers know that good agent training is the foundation of growing sales and reaching a higher tier of excellence. Broker Solutions has experts standing by to help in the area of human resources. A great brokerage knows that a compliant office manual, targeted recruitment and onboarding shape the success of an office. Our expert consultants are available to help create custom solutions while fostering a relationship with every owner in moving their business forward. TRS The Residential Specialist trsmag.com

iStock.com/fizkes/fonikum/MariuszBlach

Broker/owners should have access to the same enterpriselevel tools and resources as major franchises and corporations.

May/June May/June2021 2021

Mentorship Program

he Council is excited to announce that the RRC Mentor Program is officially underway. Whether you are a mentor, mentee or both, we invite you to participate to share experiences and learn. The RRC Mentor Program gives members the opportunity to make connections to gain knowledge of skill sets or career experiences. Matches are based on areas or interests, goals, experience and challenges. For potential mentees, this is a great opportunity for you to connect with a mentor who can offer you insight, advice and opportunity—and help you navigate the next stages of your career. For potential mentors, this is a great opportunity to give back, become a better leader and refine your own skills and networks. To sign up or for additional information on this program, please email community@crs.com. TRS

MEET US AT LAKE TAHOE!

The Council will host its annual conference, Sell-a-bration Re-connect Live, at Harrah’s Lake Tahoe Hotel Aug. 17–18. Join hundreds of top-producing REALTORS® who are seeking to improve their business and increase their referral networks. Build new connections and learn fresh strategies that will have an immediate impact on your business. Registration is now open for both in-person and virtual attendance. More details regarding the event schedule and safety protocols can be found on the Council's website. Visit CRS.com/events/sell-a-bration to learn more!

Residential Real Estate Council crs.com

Interested in adding more to your Sell-a-bration experience? Join Dale Carlton, CRS, at his Pre-Conference Course Next Level Negotiations on Aug. 16.

DESIGNATION

May/June 2021

I’ve been in this industry for 20 years. Knowing the agent on the other side of the transaction … priceless. Dawn Stevens, CRS, Broker at Presidio Real Estate Salt Lake City, Utah

Ask a CRS

Advice from your peers

When communicating with potential clients, how do you differentiate yourself from other agents? Anyone can get a house sold, but I can sell it for the highest and best value with the best terms. I educate clients on the pitfalls of being a seller and their legal obligations, and keep them out of real estate jail. And I go over my prelisting services for contractors and inspectors, help pick new finishes and guide them in the process. My job starts way before the sign goes in the yard and ends long after the offer gets signed. Beth Avery, CRS, Residential Real Estate Broker at RE/MAX Northwest Realtors, Kirkland, Washington

Using a pricing strategy that will generate multiple offers, and then evaluating the offers, financing and agent to discern which have the greatest likelihood of achieving the seller’s idea of success. George Belleville, CRS, Head for Home Team of Keller Williams Integrity, Ellicott City, Maryland

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

Local knowledge and service. I had a buyer this week who had been searching with another agent for months but couldn’t find what they wanted. Their agency agreement expired, and they contacted me. I found them a house that wasn’t on the market but that met all their needs, and we had them under contract three days later. Michael Kearns, CRS, Realty ONE Group Premier, Denver, Colorado

It isn’t about getting offers—it is about helping to ensure the offer that is accepted gets to the closing table. I tell people I am a highly skilled professional with knowledge and the ability to see around the corners. I vet the buyer’s approval letter and lender through a series of specific questions. I vet the broker and look up their license, any discipline actions and how many deals they have done in the past year. I understand the importance of the contract terms, what they mean and how to time the deadlines so we don’t fall out of contract due to delays. Colorado is one of the most litigious states for real estate, and we are a protective barrier between the seller and the lawsuit. Andrea Lard, CRS, Distinct Real Estate LLC, Denver, Colorado The Residential Specialist trsmag.com

iStock.com/Feodora Chiosea/fonikum/LeshkaSmok/dit26978/Vectorios2016

NATION

DESIGNATION

May/June 2021

RRC Connect

NATION

Expand your network

CONNECTION PERFECTION

Use Constant Communication

past client called me to ask if I could help his mother find a home to purchase in the Phoenix area. She had recently lost her husband of many years to COVID-19, so needless to say, she was sad and vulnerable, yet ready to move near her family. I contacted Karen Schwartz, CRS, with Prime Residential Brokers in Lakewood Rand, Florida, to list my client’s home. Karen stayed in constant communication with me during the process as well as after the transaction was closed. We worked together to ensure this was a seamless transition for our client. I have attended RRC conventions so I can meet referral partners all over the country. I feel confident when I refer a client to a CRS agent because I know they will be happy and satisfied. I am truly humbled when I receive a referral and do my very best to meet the standard and expectations of the other agent. When you refer another CRS agent, you are going to get 100% service because the agent is educated, professional and, most of all, the agent will love your client as much as you do! TRS

A past client of Julie Schoppaul, CRS (right), asked her to find a home for his mother, Susan Smith (left), in Phoenix. Schoppaul was gifted a card and bracelet (below) as a thank you.

MAUI Real Estate

—Julie Schoppaul, CRS, Realty One Group, Glendale, Arizona

www.JoanneFoxxe.com

PACIFIC

HAWAII

PACIFIC 808-385-2918

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

CRS, GRI, SRES e-pro Maui CRS director

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

Celebrating 27 years yearsassisting assistingclients! clients! Celebrating 25

SOUTHEAST FLORIDA

jofoxxe@Maui gmail.com Director-Certified Residential Specialists

Joanne Foxxe

Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com

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

Joanne Foxxe 808-385-2918

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

CRS, GRI, SRES, e-Pro, RSPS

cell and direct line

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

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

33 years of Experience, Commitment, & Professionalism

The Residential Specialist trsmag.com

May/June 2021

WEST

MID-ATLANTIC

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

Ask about Lake Wildwood near Grass Valley! Specializing in helping You reach Your Real Estate goals since 1991!

WEST

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

925-200-8495 DRE# 01005829

www.TheHeinrichTeam.com 831.915.7415 Team@TheHeinrichTeam.com

Ben BRE License #: 00584641

SOUTH

Carole BRE License #: 01069022

Reach more than

30,000 CRS peers with your ad here.

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

Residential Real Estate Council crs.com

DESIGNATION

May/June 2021

Balancing Act

Practical strategies for restoring balance

speaking—repeat what they’ve said in your own head and come up with potential follow-up topics or questions to show you’re interested and engaged.

Be confident in the way you speak

Um, uh, like. We all naturally insert these pauses or transitions into conversation as our brains are processing how to move from thought to thought. You can cut down on these filler words by slowing your speech patterns and, as a result, sound more confident in what you’re saying. If you’re worried your vocabulary may not be up to snuff for a certain conversation, practice using strong active verbs (like you would when creating a job résumé) to show the other party you’re intelligent and thoughtful.

Find common ground

Become a Better Communicator

hether you are in an important meeting with clients or at home with friends and family, strong communication skills are necessary to ensure your message is clear and concise, and that you’re presenting yourself in an appropriate manner. Some people are just born with the gift of communication, while others may find they need to put in extra work. As a REALTOR®, the ability to express yourself and process what others are saying is extremely important. Here are a few tips to improve your communication skills.

Listen up

Maybe the most significant way to improve your communication abilities is to learn how to become an active listener. Paying attention to and truly understanding what your conversation partner is talking about can be invaluable. Don’t just nod along and stare blankly back as they’re

Determining a shared interest or opinion with another person is a great way to open up fruitful dialogue. Ask engaging questions to encourage the other party to share more about themself. Once you find common ground, conversation tends to relax and a sense of trust is built. This also can be extremely useful in any tense negotiations or personal disagreements. Having established a positive topic to fall back on can help if things get too heated, allowing for everyone to cool off, recalibrate and refocus.

Assess body language

Be mindful of not only the words you’re saying, but also your physical presentation while speaking. You could be telling people you’ve finally found the meaning of life— but if you do so in a less-than-confident way, others may not be so keen to believe or trust you. Try to recognize any negative physical habits you may have, like slouching or fidgeting, for example, and work to eliminate them when you’re engaged in an important conversation. This can be difficult to accomplish, but with keen awareness, you can at least make strides to correct the behavior. Conversely, pay attention to the body language of the person you’re speaking with. If they seem unengaged or distracted while you’re talking, try to adjust your approach to get him or her locked back in and focused on the conversation again. TRS The Residential Specialist trsmag.com

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