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WESTWORDS JULY 2021

FOURTH OF JULY WISHING EVERYONE A SAFE & HAPPY

I AM

I AM ALICIA OWENS I AM ATTENTIVE I AM LOYALLY ETHICAL I AM INDUSTRIOUS I AM CAREFUL I AM IMPORTANT I AM WEST USA

HIGHLY RECOMMENDED

WHAT PEOPLE ARE SAYING Alicia is not only a happy person to work with but also caring and is very patient. She is not your typical REALTOR®. She got us the house we were looking for. She went above and beyond to accommodate us by getting us a suitable place to stay for a week while were looking to purchase a home. We highly recommend her. Alicia Owens has a gift for helping families find their “dream home.” She did just that for my family and I eleven years ago. Since then, Alicia has helped me find a second home and a “forever home” for my parents. Alicia has tremendous knowledge of the real estate industry, she takes pride in the work she does, makes her customers feel valued, and has a great “bubbly” personality. Thank you, Alicia, for your commitment and respect to my family and me. I will forever be grateful for the moment our pathways crossed. I came to know about Alicia Owens from a Real Estate Agent that highly recommended her to listing my Surprise AZ property. We met and my experienced with her has been a unique one. Her knowledge, abilities, recommendations, suggestions, patience, and guidance made the sell of my property a great success. Alicia's delightful personality combined with her Negotiations Skills were paramount in this. But from start, in between and continue till now is that she is my REALTOR®️ and most of all my "friend".... Would love to connect or work anytime again!

BROKER BLOG WITH BOB STEPHENS

TENURE

expanded to Ahwatukee, Mesa, Surprise, Goodyear, Chandler, Scottsdale, and Utopia (North). AND, along the way we had offices in P.V., 16 th St., 32 and Bell and Beardsley Rd. So, I did weekly sales meetings in all these offices and got to know the people very well. Many of them, still remain here including entire families that work together. I can recall many very good stories and have written about them. These people became friends of ours and have impacted "each other" in many very good ways. They share their knowledge and experience with each other. Our company was put together by Clay Fouts and his family that embraces all, that place their trust in our I have been with West USA management for services which allows people to put together about 32 years. So, TENURE of the agents is their own styles of being a CEO and collect so very important to me. I even invented my the fruits of their visions for their real estate own job as the number of agents increased and the offices expanded into 8 that Corporate business, in the 100% concept of having their earnings paid to them. We BROKER their West USA now owns and manages. Many of efforts and lend any needed expertise to guide the orginal agents that started with West them. We realize that this is not a 9-5 business USA, are still here as well as the WUSA staff and so we offer our services of assistance, that originally served them and this fact, early and late to them as well as holidays. demonstrates tenure very well! Tenure is the #1 Factor to consider when I began by doing a weekly sales meeting at the Corporate 28th Dr. office which we closed choosing a real estate firm to be operating your business from! and moved to larger Arrowhead. Then we If I were trying to make a decision for a brokerage to work at, where do I start? All brokerages will tell agent prospects the advantages of working at their brokerages and would probably start with the buyer and seller leads they have access to, referral possibilities, high commission splits, team demands for agents, as well as training in all aspects and fields of real estate and national recognition for their marketing efforts etc. This is all normal soliciting for agents. However, I have a different way of viewing a good place to work from and it is called tenure of current agents and the company staff that serves them.

QUESTIONS, CONTACT: Managing Broker, Bob Stephens 602-942-4200

I JUST WANT TO BE

ACCEPTED!

BY RYAN WRIGHT, REGIONAL SALES LEADER - ONEGUARD HOME WARRANTIES

Hey West USA family! I am going to test your real estate knowledge, any idea what these numbers represent? A.10,662 B. 8,656 C. 7,450. Likely these numbers seem very arbitrary, unless you’re dialed into the Cromford reports. These number represent the listings under contract, in order of appearance, for Monday, January 18th, 2021, 2020 and 2019. The Year Over Year (YOY) increase from 2020 to 2021 is more than 23%! You may be more familiar with active listings stats over the past several years. On January 18th, 2021, there were 9,945 active listings on the market. On that same day in 2020 there were 16,104 active listings. That’s a 62% YOY decrease in active listings! In the eight years I’ve been in the industry, I have yet to see a market where listings under contract outpace the prior year while simultaneously experiencing a massive reduction in inventory! Demand remains high while supply hoovers at unprecedented lows! The result is a dog fight for buyers’ agents, the likes of which we haven’t seen since Maverick was battling it out with Viper in the summer of 1986! If you don’t get the Top Gun reference don’t worry, there’s a new one coming out this summer! Insert hands up celebration emoji here.

market, I would caution you in doing so for fear of leaving your buyer in a tailspin. At OneGuard, more than 38% of our members utilize the home warranty in the first 30 days! This can result in costly repairs for the buyer very soon after closing, a time when many buyers are most financially vulnerable. Obviously, we would never submit an offer that could cost us the deal because it included a home warranty; however, it is worth making your clients aware that they can purchase a home warranty after closing. OneGuard allows the purchase of a warranty up to 60 days after close of escrow for clients going through a real estate transaction. Purchasing the warranty after closing can be an excellent alternative for ensuring your clients are protected while mitigating your exposure as an agent. It goes without saying that breakdowns in the home can go a long way to determining the buyer’s level of satisfaction with the purchase. The buyer’s satisfaction with their purchase can determine whether you’ve earned a referral. Referrals are the golden ticket in this market of barrel rolls, figure eights and any other strategy you can employ to get your offer accepted.

My chief aim is to add value to your business. With the stakes so high and competition fierce, buyers’ Understanding how often people utilize their warranty, even within the first 30 days should be enough agents are left to perform every maneuver in their evidence to suggest there is value in having the arsenal to get the offer accepted. Submitting offers protection even if the seller doesn’t pay for it. If you over asking price, waiving the appraisal contingency and reducing the inspection period are just a few tactics ever have home warranty questions or concerns you being used in today’s historic market. Another strategy have my full permission to “buzz the tower." I hope to I’m seeing is foregoing the home warranty. While hear from you soon! deploying this strategy may make sense in a seller’s

4 OLD SCHOOL LEAD CONVERSION TIPS

THAT STILL WORK IN A DIGITAL WORLD BY WISE AGENT The way people make purchasing decisions is continuing to evolve, so it’s vital that agents continue to re-evaluate their sales strategies. The key is to find the perfect balance between persuasion but not being overbearing. Let’s take a look at four old-school lead conversion tips that still work in a digital world. Be Real In the digital age, you can be whoever you want to be online. When it comes to selling real estate, be real and genuine in the sales process. It’s important to convey to clients that you value their business and not just earning a commission check. Coming off too robotic or calculated may deter clients, but keep in mind it pays to be prepared. It is okay to gather info and have answers in mind for every question they ask, but just remember to let your client know you care about their best interest. Network Attend events and network within the real estate community to find leads. Talk to people face to face and really put your name out there. Before LinkedIn, Twitter, and Facebook, networking took place in person and not online. There are so many real estate events all over the country for agents to attend to network and find leads. Nowadays, you can even take networking from the event online using these social media platforms to expand your reach and continue the conversation. Take business cards and contact people the old school way – via phone.

Know the Lead Do the legwork and get to know the key decisionmaker who will determine if you make a sale or not. Research them on social media, find out about previous jobs they’ve held, find out where they went to college, etc. This information is a conversation starter and people are more likely to do business with someone they can make a personal connection with. Even if you feel you have nothing in common with the lead, just being a quality listener who asks questions can be just as impactful in terms of getting to know the lead to eventually turn them into a client. Put the Prospect First Don’t begin the conversation by telling them all about your services and how you will find them the perfect home or help them sell their home. Find out exactly what the prospect is looking for and harvest this information to explain how your business is unique from competitors. Tailor your sales approach to meet your prospect’s needs and you will find that you can help them achieve their goals by putting them first. In the digital age, you can give prospects vital information by utilizing newsletters, email campaigns, and by sharing blog posts on social media. Take a closer look at all of the features Wise Agent offers on our website and contact us to get started using our CRM. We can’t wait to partner with you to enhance your real estate business.

HOW TO PROTECT YOUR COMMISSION

WHEN WORKING WITH BUYERS WITH TODD MENARD

The real estate market has been on fire since January 2020. Unit sales have increased more than 51% while dollar volume has increased over 100%. This basically means that an agent’s annual income should have increased the same amount. WOW! How about you? In today’s real estate market agents must write multiple contracts on multiple homes to achieve an accepted offer. Many of these resale listings are reducing the amount of compensation to cooperating brokers. Buyers who are interested in new home construction must deal with lotteries and the lack of materials and products to complete the home. All this while a handful of builders are opting to eliminate compensation to buyer representatives. So how does an agent navigate the process ensuring that their efforts result in the receipt of compensation? The answer? The AAR Buyer Broker Exclusive Employment Agreement “BBEEA”! I can already hear you scoffing at this! However, if this could protect your income, make you more income, and or force the new home builder to compensate you, would it be worth it? An agent has a fiduciary responsibility to the client to show properties that are relevant to the buyer request. Failing to do so is considered failing to be “obedient” to the needs of your client. In fact, an agent cannot decide which home to introduce/show to their client based solely on the amount of cooperating broker compensation offered in the MLS. We all know what happens if there is no written contract between the buyer and buyer’s agent… the buyer’s agent receives the cooperating broker amount identified in that listing, and only has a right to those monies’ contingent upon a successful close of escrow.

In fact, did you decide how much you want to earn or did the listing agent do that for you! LOL. Contingent means that if it doesn’t close you don’t get paid! Period. So basically, the agent isn’t certain how much they are going to earn until the buyer writes the offer on a specific property. How does all that change if the buyer IS subject (has signed) a BBEEA. The agreement establishes the services to be performed, and the amount of compensation the buyer will compensate to the broker, and the time frame in which the parties are obligated to one another. Let’s take a look at how the BBEEA protects you and your earnings: Line 15-18. Property Viewings: Buyer agrees to work exclusively with Broker and be accompanied by Broker on Buyer’s first visit to any Property. If Broker does not accompany Buyer on the first visit to any Property, including a model home, new home/lot or “open house” held by a builder, seller or other real estate broker, Buyer acknowledges that the builder, seller or seller’s broker may refuse to compensate Broker, which will eliminate any credit against the compensation owed by Buyer to Broker. Line 19. “Due Diligence: Once the acceptable property is located, Buyer agrees to act in good faith to quire the property…” Line 28-31. “… or the compensation Broker receives from seller or seller’s broker, whichever is greater…. which shall be credited against any compensation owed by Buyer to Broker pursuant to this Agreement...” Line 32-34. “Buyer agrees to pay such compensation if within _ calendar days after the termination of this Agreement, Buyer enters into an agreement to purchase, exchange, option or lease any Property shown

to Buyer or negotiated by Broker on behalf of Buyer during the term of this Agreement…” Line 35-36. “If completion of any transaction is prevented by Buyer’s Breach or with the consent of Buyer other than as provide in the purchase contact, the total compensation shall eb due and payable by Buyer.” NAR Code of Ethics Article 1, SOP 1-13 (3) “When entering into buyer/tenant agreements (“BBEEA” or similar), REALTORS® must advise potential clients of: (3) the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties.” So now let’s revisit the initial example above. The listing agent is no longer determining your compensation the BBEEA does. If the Buyer defaults under Lines 1518, 19, 32-34, and or 35-36 you are still owed the agreed compensation. The final perspective is on new home builders who are no longer paying compensation or are paying reduced compensation. If properly explained to the Buyer, the Buyer can take this Contract out at the first visit to the builder, or at the time of writing the build contract, and negotiate that they will not purchase the home unless the builder is willing to offset the compensation due the buyer’s broker. Historically, each time builders stop paying commissions to buyer agents, this document has achieved great results and the builders don’t have to, however probably will pay the compensation. Try it. Of course, this Agreement is used to establish the rules of engagement and is more of an instrument to keep an honest person honest. Learn how to properly present this document to the buyer. They will sign it.

JUNE MARKET STATS

CONGRATULATIONS

DONNA

LEEDS

OUTSTANDING KIWANIS

ADVISOR AWARD West USA Realty & West USA Cares would like to take a moment and give a huge congratulations to Donna Leeds who is the Ahwatukee Office Manager and Chairperson for West USA Cares Committee.

with disadvantaged youth, making hundreds of PB&J sandwiches or preparing for a baby shower for foster youth, Donna will show up with her bright smile, positive attitude and we will have fun.” Donna also helped with collecting one of the largest donations of “plarn” (which is plastic bags made into yarn) to help make plastic mats to benefit Plarn Mats for the Homeless Project.

Donna earned the 2020-2021 Outstanding Kiwanis Advisor Award by the SouthWest District Key Club International, which consists of Nevada, New Mexico, and parts We are so proud of everything she does for of California and Texas. She was recently recognized in the Ahwatukee Foothills News the communities and we want to send her a for her accomplishments and someone wrote big CONGRATULATIONS! “whether it is shopping for back to school

M O N DAY

T U E S DAY

W E D N E S DAY

T H U R S DAY

JULY 2021 F R I DAY

Facebook Basics for Real Estate Professionals w/ Keith Flynn 10:00am - 11:00am / Webinar

ALL OFFICES CLOSED Independence Day

Prostart Training Session 1 9:00am - 4:00pm / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

Broker Round Table w/ Dean Becker 10:00am - 11:00am / Zoom

Prostart Training Session 1 9:00am - 4:00pm / Zoom

Company Wide Office Meeting 10:00am - 11:00am / Zoom

West USA Agent Orientation 10:30am - 12:00pm

FREE REMOTE CE CLASS Disclosure and the Law 3Hrs Disclosure Law 9:00am - 12:00pm / Zoom

Prostart Training Session 2 9:00am - 4:00pm / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

Broker Round Table w/ Kyle Fouts 10:00am - 11:00am / Zoom

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

Let’s Talk About Biz - Open Discussion to Create & Motivate your Real Estate Business 2:00pm - 3:00pm @ Arrowhead Bullpen

26 Prostart Training Session 3 9:00am - 4:00pm / Zoom

Donuts with Damon 10:00am - 11:00am @ Kierland or Via Zoom

West USA Headshot Day 10:00am - 12:00pm @ Surprise Office

Coffee with Justin 10:00am - 11:00am / Zoom

ARMLS Training - Searching & Mapping 1:00pm - 2:00pm / Webinar

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

Instagram Intermediate for Real Estate Professionals w/ Keith Flynn 10:00am - 11:30am / Webinar

Protect Your Privacy & Security on Social Media w/ Keith Flynn 10:00am - 11:30am / Webinar

Prostart Training Session 1 9:00am - 4:00pm / Zoom

Appraisal & Underwriting Lunch & Learn 11:00am - 12:30pm @ Mesa

Prostart Training Session 2 9:00am - 4:00pm / Zoom

FREE REMOTE CE CLASS Secrets to Unprecedented Growth and Referrals 3Hrs RE Legal Issues 9:00am - 12:00pm / Zoom

West USA Weekly Webinar 9:00am - 10:00am / Webinar

Dominate Your Local Farm with Local Facebook Groups w/ Keith Flynn 10:00am - 11:30am / Webinar

West USA Realty Surprise Happy Hour 5:00pm - 7:00pm

27 Prostart Training Session 3 9:00am - 4:00pm / Zoom

FREE REMOTE CE CLASS Mastering the Residential Purchase Contract 3Hrs Contract Law 9:00am - 12:00pm / Zoom

FREE REMOTE CE CLASS High Fiduciary Representation 3Hrs Fair Housing Law 9:00am - 12:00pm / Zoom

Canva Intermediate for Real Estate Professionals w/ Keith Flynn 10:00am - 11:30am / Webinar

Don’t Do Dat w/Broker Bob Stephens 2:00pm - 2:30pm / Webinar

• CE- Continuing Education Renewal Training • Luxury Division Event

• Commercial Division Event • Office Meetings