Colorado REALTOR Magazine - April 2018

c o lo r a d o

April 2018

REALTOR Official Magazine of the Colorado Association of REALTORS®

®

MAGAZINE

How to Make the Housing Crunch Worse...14 Drones in Real Estate...8

MEET COLORADO'S 30 UNDER 30 WINNER... 20

PLUS: LEADING THE WAY... 10 Photo: Mike Laughlin, Vantage Point Imagery, LLC

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c o lo r a d o

APRIL 2018

REALTOR

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c o lo r a d o

MAGAZINE

The COLORADO REALTOR® is published by the Colorado Association of REALTORS® 309 Inverness Way South Englewood, CO 80112 (303) 790-7099 or 1-800-944-6550 FAX (303) 790-7299 or 1-800-317-3689 EDITOR: Lisa Dryer-Hansmeier, V.P. of Member Services lhansmeier@coloradorealtors.com DESIGNER: Monica Panczer, Event Marketing Specialist monica@coloradorealtors.com The Colorado Association of REALTORS® assumes no responsibility for return of unsolicited manu­ scripts, photographs or art. The acceptance of advertising by the Colorado REALTOR® does not indicate approval or endorsement of the advertiser or his product by the Colorado Association of REALTORS®.

The Colorado Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy or completeness of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Colorado Association of REALTORS®.

This is a copyrighted issue. Permission to reprint or quote any material from this issue is hereby granted provided the Colorado REALTOR® is given proper credit in all articles or commentaries, and the Colorado Association of REALTORS® is given proper credit with two copies of any reprints.

REALTOR

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MAGAZINE

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DRONES IN REAL ESTATE

IN THIS ISSUE:

4 Don't Miss the CAR Spring Summit 10 Leading the Way 13 Reduce Your Risk on a Daily Basis 14 How to Make the Housing Crunch Worse

Photo: Mike Laughlin, Vantage Point Imagery, LLC

COLORFUL COLORADO - A LOOK AROUND THE STATE

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16 CAR's Proposed Dues Increase 17 We Hear You 18 Wildfire Season in Colorado 23 Growth Limits on Housing 22 NAR's SMART Initiative 24 Mid Session Update 26 Housing Market Snapshot 27 The Run-a-Round 32 It's a Tough Market for Homebuyers 34 It's Game On 38 RPAC Investors

FEATURES 20 30 Under 30 Winner

The term “REALTOR®” is a national registered trademark for members of the National Association of REALTORS®.

The term denotes both business competence and a pledge to observe and abide by a strict Code of Ethics. To reach a CAR director who represents you, call your local association/board.

See how Christie Wilbur Duggar achieves success as a young REALTOR.®

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Let Technology Run Your Business Learn how some apps can help you run your business more smoothly.

36 Five Magic Questions of Recruiting

Asking questions is the key to recruiting.

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FROM THE CEO

Don't Miss the

CAR Spring Summit

T

he CAR Spring Summit is geared towards REALTORS® who want to become more involved in the REALTOR® association. Packed with new ideas, new products, networking, and fun, Vail is the place to be this April 24-26, 2018 at the Four Seasons Resort.

This year the Summit features two dynamic speakers and our very own talented Scott Peterson presenting “10 Things – Legal Session,” for two continuing education credits.

By: Tyrone Adams President/CEO, Colorado Association of REALTORS®

Save the Date for the CAR Fall Forum September 26-28, 2018 in Broomfield, Colorado.

Our first Keynote speaker is Tina Sampson, Vice President of Sales for Vail Resorts speaking on “Leadership for Innovation.”

Today’s leadership requires understanding how to successfully navigate change and how to continue innovating for growth. With the recent growth Vail Resorts has seen, Tina will share how they use leadership development to successfully integrate new resorts and new leaders. She will take us through a real leadership development experience to show us how Vail Resorts re-imagines their business for the future. You can see Tina on Tuesday, April 24 at 12:00pm. Lunch is included with your registration for this session.

Elizabeth Mendenhall

The following day, NAR President Elizabeth Mendenhall will be speaking on “Own it! REALTORS® into the Future”.

Elizabeth will share where the REALTOR® brand is headed and discuss how NAR’s 2018 priorities focus on issues uniting all REALTORS®, enabling our association and our industry to move faster. We can sit back and react to change, or we can own it.

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When: April 24th-26th, 2018 Where: Four Seasons Resort, Vail Cost: $90 registration available through April 16th, 2018.

During the CAR Strategic Think Tank, from 1:00pm – 2:00pm, a presentation will be given by Anthony Meisner with Land Title on the growing trend of blockchain technology and cryptocurrency and its impact on the real estate industry. There are already examples of real estate transactions being conducted with this new technology. What would you say if your buyer or seller asked about this technology?

and we encourage you to attend.

Last but not least, CAR would like to thank our sponsors for this event. CAR is able to bring these quality events to our members at an affordable price only through the help of our sponsors. If you have a chance, please thank them yourself or by giving them your business. Our sponsors this year are: FirstBank, Colorado Tax Coach, Heritage Title Co, Sharkey, Howes and Javer, REcolorado, Xcel Energy, Exodus Moving and Storage, Brightwood Real Estate Education, JuvoRep, and Realtor.com.

For more information and to register, please visit www. coloradorealtors.com/car-spring-summit-2018/

Also Included with your registration is the Opening Reception hosted by REALTOR.com and several opportunities to network and engage with your peers from across the state.

See you soon!

On Wednesday evening, I encourage you to attend the RPAC Drinking for Diamonds event at l, 2018 NAR President 5:00pm. A $25 investment gets you into the reception and one complimentary drink. For only a $99 investment, you are entered in the drawing for a diamond. I've been to several RPAC events over my career and I can tell you the Drinking for Diamonds event is always a fun way to support RPAC. Our summit ends on Thursday morning with our District Forums followed by the Board of Directors meeting at 9:30am. We have several topics on the agenda this year

Members at a round table discussion during the CAR 2017 Spring Conference.

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SPRING SUMMIT APRIL 24-26, 2018 | VAIL

Professional Development Sessions geared towards those hoping to become more involved at CAR and in leadership roles.

Networking

Fun

Grow your network of professional contacts around the state and see how it benefits your career.

There will be plenty of time to kick back, enjoy Vail, and have a good time with friends and colleagues.

ABOUT THE SUMMIT The 2018 CAR Spring Summit is geared towards REALTORS® who want to become more involved at CAR or in the REALTOR® association. Packed with new ideas, new products, networking and fun, The Summit is Vail is the place to be April 24th-26th, 2018 at the Four Seasons Resort in Vail. a $330 value Included with your registration is: • Keynote Luncheon on “Leadership for Innovation,” featuring Tina Sampson, Vice President of Sales for Vail Resorts for only $90.

• “10 Things - Legal Session,” presented by Scott Peterson, CAR General Counsel (2 CE) • Keynote “Own it! REALTORS® Into the Future,” Speaker Elizabeth Mendenhall, 2018 NAR President • CAR Strategic Think Tank and MORE!

Be inspired by great speakers.

Network at breaks and meetings.

www.ColoradoRealtors.com/events THANK YOU SPONSORS

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Enjoy the Opening Reception.

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TECHNOLOGY

Drones can take your listing to new heights...

Just Be Mindful Of The Regulations Surrounding It As competitive as things are in Colorado, REALTORS® across the state are always discovering new and innovative ways to market their listings. One of these marketing techniques is the use of drone technology to photograph homes and properties. Those of you who haven’t dipped your toes into the world of drones may be asking, “what are the benefits and restrictions of using drone technology?”

some of the advantages that come with utilizing drone photography.

“The main reason to consider an aerial photoshoot to a traditional photoshoot is to show the property from a different perspective. It shows the scale of the house, the different wings, the different additions, and it really showcases how impressive the architecture is,” said Laughlin.

Using aerial photography showcases a different side of the property that traditional photography is unable to capture, and it can be useful in marketing various types of properties. Drone footage can be beneficial when trying to showcase high-end properties, mountain homes, or vacant land. Kelli Anderson, a REALTOR® in Evergreen, Colorado, recently used aerial photography to better market a land listing. “I felt it was important for that particular listing and I would do it again,” said Anderson.

Mike Laughlin, the Director of Operations for Colorado Virtual Tours - a photography company that specializes in drone technology for real estate properties - spoke on

Laughlin also discussed how using a drone can speed up the process of a photoshoot by flying throughout the property rather than walking it. Aerial photography can show a potential buyer the proximity of the listed house to a river that runs close to the property, a complex layout with multiple features, or the topography of the land.

Clearly, there are many benefits of using drone technology to photograph property, but what are the restrictions?

Photo by Mike Laughlin, Vantage Point Imagery, LLC

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Photo by Mike Laughlin, Vantage Point Imagery, LLC

According to Business Insider, recent data shows that the market for commercial and civilian drones may grow at a compound annual growth rate of 19% by 2020. The use of any new technology usually (if not always) results in regulations by federal, state, and local governments.

prohibit drone operators from flying under the influence of drugs or alcohol.

Tye Stockton, a REALTOR® with LIV Sotheby’s International Realty in Vail, Colorado, uses drone technology in his listings and spoke to the legal obligations that REALTORS® need to consider.

According to the Federal Aviation Administration (FAA), a drone must be:

“There are more and more restrictions on where you can shoot and how you can shoot,” said Stockton. “We make sure that our photographers and videographers have all of the proper permits and paperwork in place to be able to do that.”

• Registered • The operator must fly the drone within eyesight • Cannot be flown within controlled airspace • Cannot be flown higher than 400 feet • Avoid flying near people or structures

Due to the many regulations that mandate how drones can be operated, you may want to consider using a professional before you “Click to Buy Now” that drone off of Amazon. This new technology boasts many benefits for a unique and engaging marketing technique, but as always, it's your responsibility to ensure you (as well as any company you hire) are in compliance with laws and regulations where you live.

If the drone is to be used for commercial purposes, like photography for real estate, the operator must be a licensed pilot through the FAA. Colorado laws are similar to the federal regulations except Colorado encourages drone operators to insure their equipment. Local counties and municipalities have specific laws regarding drones as well. Some ski resort towns prohibit any flying near the slopes, other counties prohibit flying above city property like parks or golf courses, and other counties

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LEADING THE WAY

A wealth of knowledge can be obtained from these REALTOR® leaders. In this two part series, some of CAR's past Presidents will share their secrets to a long and successful career in real estate.

Gail Lyons

Boulder Real Estate Services, Ltd. CAR President 1986, CAR ROTY 1994 How long have you been a REALTOR®? Since 1973.

What areas do you primarily serve? I'm more or less still active in Boulder County...not actively looking for business but definitely willing if someone asks for assistance.

Gail Lyons is honored as the CAR ROTY in 1994.

How did you first get involved in the REALTOR® Organization? A REALTOR® friend suggested I might be "good at being a REALTOR®". I started serving at BARA and became president there. I continued by joining and chairing several CAR committees and eventually served as CAR President in 1986. I really enjoyed serving at all levels.

How has becoming involved with the REALTOR® organization helped your career? Everybody seems to know me from my involvement. Of course, a part of that is the amount of teaching that I've done, the books I've written, and the designations I've earned. But it all comes back to the face-to-face interaction I have had with people.

What is your best way to stay in front of your clients?

Face-to-face interaction was the best way I stayed in front of my clients.

What classes or resources do you use to stay on top of the latest real estate trends, laws, and techniques? Again, just take as many courses as possible on all topics so you can be well-rounded.

What is your best advice for someone who is newer to the business? Take as many courses as possible, and get (and stay) involved with your local or state association or in your community.

Additional comments: My best advise to have as much social contact as possible. I don't do social media at all and feel you can be successful in finding your own niche.

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Chris McElroy

The Group Inc., Fort Collins CAR President 1994, CAR ROTY 2000

How long have you been a REALTOR®? Since 1976.

What areas do you primarily serve? Fort Collins and Northern Colorado.

Chris McElroy (left) with other leaders at a recent Region XI conference.

Tell us about any unique or less common things you do to either attract new business or retain existing customers: I love to stay in touch with 6”x 9” postcards. My licensed assistant, who happens to be my favorite youngest daughter, creates postcards with interesting information that a client might put on their bulletin board or refrigerator.

Around 2006, I sent a cute postcard to my client list and neighborhood. Ten years later, I received a phone call from a neighbor whom I had not met. He had kept the postcard and wanted to downsize. It resulted in two sales. You never know.

How did you first get involved in the REALTOR® Organization? A REALTOR® member of the Fort Collins Board asked if I would serve on the Finance Committee. I enjoyed the interaction and camaraderie. As the years went by, I continued to have mentors who showed me the bigger picture. I discovered that my involvement made me betterorganized and focused in my business.

What is your best way to stay in front of your clients?

Several years ago I took an idea to NAR about REALTOR® ethics. As a result, The Little Blue Book: Rules to Live by for REALTORS® was launched. Since then, three more books have been published: safety, green rule, and international rules.

Currently I am working with NAR on The Little Black Book which will cover staying in touch with clients, #relationships.

For those of you who have heard Larry Kendall speak or have taken Ninja Training, you understand the power of staying in touch with your client list. The personal thank you note is the easiest yet most overlooked method of connection.

What classes or resources do you use to stay on top of the latest real estate trends, laws, and techniques? I love to learn about all subjects. I am part of a book club where we tend to read historical non-fiction. I attend state and national conventions where new ideas emerge. I receive daily e-newletters from trade groups, real estate companies, health and wellness. Currently I am involved with committees where we are discussing the future of real estate: block chain transactions, artificial intelligence, the REALTOR® as a Trusted Advisor.

What is your best advice for someone who is newer to the business? Another Ninja principal: get in the flow (and make sure you have business cards). Be visible and involved in your community. Volunteer, go to a concert, meet clients at a coffee shop, take advantage of your local board’s social activities, or start a meet-up group. Especially in Colorado, we exist in FRAMILY groups. Our friends are our family. Contribute to RPAC. It is the insurance that keeps you in business as a REALTOR® and protects your livelihood.

Additional Comments: Social Media is a terrific tool for some people, but I don’t fall into that category. I am old school. I rarely go on Facebook, I spend my time face-to-face. I love people. I love the connection and interaction.

How has becoming involved with the REALTOR® organization helped your career? It is an honor to be involved with an amazing group of people, the REALTOR® FRAMILY, across the country. Through networking, the exchange of ideas, education, conventions and conferences, we become better at our craft. We experience those individuals who are hungry for knowledge and to be at the top of their game. If you love your profession, get involved.

You will love it even more.

Chris McElroy (left) at the 2017 REALTOR® Day at Capitol.

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Vicki Burns

Brass Key Realty, Craig CAR President 2002, CAR ROTY 2005 How long have you been a REALTOR速? Since 1973. Thirtythree years and counting! I am currently the Chair-elect for the Craig Board of REALTORS速, Director on the CAR Foundation, and serving on State Legislative & Professional Standards Committees.

Vicki Burns (Center in black/white) and Dennis Johnson (behind Vicki) at a 2014 CAR Past President Reception.

What areas do you primarily serve? Craig and Moffat County, as well as parts of Routt County.

What is your best advice for someone who is newer to the business? Listen to what your potential clients are saying. There is never a dumb question to ask, and if you are not sure, ask an experienced broker or your managing broker. Most likely they have dealt with the same issue at some point. Always be responsive and return phone calls and emails. Leave your personal issues and opinions at home and always be professional and kind. Basically, treat others the way you wish to be treated. Respect goes a long way!

How did you first get involved in the REALTOR速 Organization? Shortly after being licensed and joining the local board, I volunteered to be the board secretary/ treasurer. Since we are such a small board, there was not an AE. Thus the adventure began. After meeting members from around the state and several in leadership at that time (Ron Myles, Mary Ellen Marks, Ted Bryant to name a few), I knew it was something I would love to be a part of and would thrive at. It's all history from there. My family was very supportive and we never looked back. I wouldn't trade the years of involvement and friendships for anything. Giving of ones self and helping others achieve their dreams has become life's mission for me.

How has becoming involved with the REALTOR速 organization helped your career? A hundred times over and over.

Tell us about any unique or less common things you do to either attract new business or retain existing customers: If a client or customer or one of their family members gets acknowledged in the local paper for something, I clip it and maybe frame it and send it to them for a keepsake.

What is your best way to stay in front of your clients? In my community that's not as hard as it may be for others. I am involved in so many other non-profit activities and my church along with the local board activities and that helps enormously. I send out Christmas cards, seasonal sport schedules, calendars, and seasonal newsletters as well. I take out a 1/4 page ad three or four times a year and thank my many customers, clients, landlords and tenants.

What classes or resources do you use to stay on top of the latest real estate trends, laws, and techniques? I try to take as many new classes as I can to keep up to date and on top of new issues and topics.

Additional comments: Being an active member of your local and state association has so many benefits. But most of all, the lasting friendship you make are priceless.

Vicki Burns with her children at the 2001 CAR Inaugural dinner.

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Dennis L. Johnson

Paffrath & Thomas Real Estate, Breckenridge CAR President 2000, CAR ROTY 2007 How long have you been a REALTOR®? Since 1981.

What areas do you primarily serve? Breckenridge, Dillon, Silverthorne, Keystone, and Frisco.

Dennis Johnson (center-purple) at the 2007 CAR Inaugural Dinner

How did you first get involved in the REALTOR® Organization? I desired to give back to the Organization that was giving me so much! Also, Mary Ellen Marx encouraged me once when we were at a golf tournament!

How has becoming involved with the REALTOR® organization helped your career? I have met some AWESOME REALTORS® that give me great motivation and great referrals with the upmost care and concern, especially when it comes to ETHICS!

What is your best way to stay in front of your clients?

Monthly mailings, eUpdates, calendars, and community involvement. I also send them a copy of their Settlement Statement from the previous year for their taxes.

Additional comments: It is all about ETHICS as a REALTOR®!

What is your best advice for someone who is newer to the business? Get involved in your community in whatever interests and excites you...church, schools, civic groups, town government, etc!

Reduce Your Risk on a Daily Basis RICHARD WILLIAMS, CPCU Williams Underwriting Group All CAR members should be trying to reduce their risk of loss on a daily basis. One of the primary ways is to be sure you are adequately documenting all of your communications on a regular basis. Documentation should include all paperwork, emails, texts, and phone call confirmations with clients or other real estate agents, banks, appraisers, and inspectors. Proper and consistent documentation will go a long way to proving what you have done. Remember, if it is not documented, it is almost as if it did not happen. It's almost impossible to have too much documentation.

Come claim time, it is amazing how often your memory of what happened will differ from the person who is making the claim against you. Having proper and consistent documentation is critical to the defense of any claim. Often, the truth is what you can prove. It's important that all your files are consistently documented. This will increase the credibility of the documentation of the file in question.

Finally, try to document activity in real time as much as possible. I know that is not easy with all you have to do, but it is easy to say you will do it later and not get it done. Sufficient documentation will not only make the life of your defense counsel much easier but it will yours as well. A little extra work now will save you grief and stress if you ever find yourself in the unfortunate situation of having an Errors and Ommissions claim. Click here to learn more about Williams Underwriting Group.

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How to Make the Housing Crunch Worse Limited Local Growth Ballot Initiative 66 Colorado’s economy has grown rapidly in recent years, fueled by a strong job market and an enviable quality of life that defines the Colorado experience. A potential statewide ballot initiative proposes placing arbitrary limits on growth that could cripple future economic prosperity and create new growth burdens on the already low inventory of housing available to Colorado consumers. This initiative would have a very significant detrimental effect on affordability of housing in Colorado. We cannot increase affordability of housing by decreasing the supply of housing.

If residential development is capped at 1% in this market, lack of availability will be magnified by constraints on development that will continue to drive up prices as we have seen it do over the last several years. There are numerous studies that have looked closely at this approach in other markets and it has not worked. A cap would not only push Denver’s housing market further from balance, it would most certainly have the direct opposite effect on inventory and affordability. In this scenario, not only will prices not come back down, they will continue to rise.

The proposed Limited Growth ballot initiative #66 would:

According to the Denver Post, a housing study from Shift Research Labs estimates that metro Denver faces a shortfall this year of about 32,000 homes and apartments due to inadequate construction.

• Limit new permits for the total number of all housing units in each of the 10 most populous counties (Front Range) to 1% in both 2019 and 2020.

• Allows every Colorado City, Town, or County statewide to vote for housing growth moratoriums.

“That shortage is driving up home prices and apartment rents above income gains, fueling inflation and straining finances. Households making under $50,000 a year are collectively spending $2 billion more a year than if supply and demand had stayed in balance, the study estimates,” wrote the Post.

• Prohibits permits between the election in November 2018 and January 1, 2019.

• Voters would not be able to reconsider or alter the initiative in any manner if voters approved until at least 2021.

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Please tell your friends, colleagues, and neighbors not to sign the petition to put arbitrary housing limits on the ballot in colorado!

After CAR’s Economic Summit & REALTOR® Day at the Capitol concluded in February of this year, the Denver Post’s editorial board came out against Ballot Initiative 66. In short. Their editors wrote, “…there’s one obvious answer to what shouldn’t happen. A proposed ballot measure to cap home and apartment construction along Colorado’s Front Range would make the recovery from this housing crunch take even longer. We believe homebuilders who said at the Colorado Association of REALTORS® Economic Summit on Wednesday that the ballot measure would have devastating consequences in an already constrained market.”

sprawl. It also gives young people the chance to purchase rather than rent, allowing them to begin building valuable home equity.

A lack of affordable housing near employment centers pushes workers farther from their jobs, forces them to commute longer distances, puts undue strain on local roadways and public transportation, and dis-incentivizes workers and their employers to locate in Colorado.

The supply of affordable housing is a vital component to a regional economy. The availability of affordable housing is critical to retaining a skilled workforce, keeping local business competitive, and reducing urban

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CAR NEWS

CAR PROPOSES $5 MEMBER DUES INCREASE FOR ISSUES MOBILIZATION We need your help to defeat damaging initiatives and amendments and to ensure housingfriendly initiatves are passed.

SPENDING ON BALLOT INITIATIVES IS RISING

In the Fall of 2017, CAR leadership organized and facilitated the RPAC Task Force. The Task Force was charged with reviewing CAR’s current RPAC fundraising strategy and recognition practices.

Through Task Force discussions, it became clear that local boards across Colorado need additional support from CAR in the form of Issues Mobilization funds. The Task Force made several recommendations, one of which was a member dues increase. ballot initiative The proposal is to increase membership dues for $5 for the sole

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purpose of issues mobilization.

$450K $400K $350K $300K $250K $200K $150K $100K $50K $0 towards

ballot THE PROPOSED $5 INCREASE initiative 5

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ballot initiativeIssues

The entire proposed increase of $5 is to go 1998 2000 5 $10 per member, which is used Mobilization funds, currently 5 solely on ballot issues and education.

THE SPLIT

5

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5

5

Ballot initiatives are BIG in Colorado, and spending on ballot initiatives rises every year. In order to defeat initiatives damaging to the housing industry and REALTORS® in Colorado, we expect to need to spend more issues mobilization money on ballot initiatives at the state and local level.

$450K $400K $450K 2010 2004 $350K 2008 2015 2018 $300K $400K $350K $250Kfunds total local total state funds $200K $300K $250K $150K $200K $100K $150K $50K $100K $0 $50K

1998$02000

1998 2000

5

If approved, $15 of each member’s dues 5 5 would go towards Issues Mobilization. Of the $15 per member, $5 goes to the member’s local board, and $10 would stay with the state to fight or champion $950,000 statewide initiatives.

NAR FUNDS

2020-2030

2004 2008 2010 2015 2018 2020-2030 2004 2008 2010 2015 2018 2020-2030 totaltotal local funds total statefunds funds local funds total state

CAR also used issues mobilization funds for Colorado Project Wildfire, the First Time Homebuyer Savings Account legislation, and construction litigation reform advocacy. The potential $5 increase will be voted on by the CAR Board of Directors on April 26th during the BOD meeting in Vail.

CAR FUNDS

$950,000 NAR FUNDS

$950,000

CAR FUNDS

CARSPENT FUNDSon ballot initiatives in NAR FUNDS WAS

colorado in 2016.

WAS SPENT on ballot initiatives in colorado in 2016.

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WAS SPENT on ballot initiatives in

We Hear You!

Here's what you have been sharing @coloradorealtors

Find us @

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ColoradoRealtors

@COREALTORS

ColoradoRealtors

@ColoradoREALTORS

@COREALTORS

WILDFIRES

Is Colorado in for an Active Wildfire Season?

How you can help your clients properly mitigate against wildfire In the months of April, May, June and July, Colorado and other states in the West/Northwest could see above normal wildfire activity, according to the Wildland Fire Potential Outlook provided by the National Interagency Fire Center.

The overwhelming majority of counties across the state of Colorado appear at heightened risk throughout the wildfire season.

near historical minimums over the mountains of southern Colorado, and above average large fire activity (especially June) is highly correlated to years with very low spring snowpack. JuneAugust core fire season acres burned is forecast to be above average for the first time since 2012.�

Colorado Project Wildfire: Colorado REALTORSÂŽ, in partnership with other like-minded fire prevention organizations across our state, have been working to bring education and awareness, as well as access to resources for residents in Wildland Urban Interface (WUI) areas.

For the state of Colorado, the outlook predicts: “Continued drought and predicted temperature and precipitation patterns during the spring, above average fuel loading, and increasing cases of warm, dry and windy patterns through May are also expected to exacerbate the above average fire risk. Above average fire risk is predicted to expand across the remainder of southern Colorado into central Colorado for the May, and especially the June-early July period due to drought and persistent warm and dry forecasts overall. Snowpack is

You can help homeowners take steps to protect their property and help alleviate the spread of wildland fires.

Many Coloradans living in the foothills in ponderosa and lodge pole forests or in arid grassland communities need to consider the fire-prone nature of these ecosystems.

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How to protect your property: 1. Create Defensible Space Around a Home 2. Reduce the Structural Ignitability of The Home 3. Use FireWise Practices Due to Colorado’s arid climate and firedependent forests, many homeowners and landowners may be particularly vulnerable to wildfires. As a REALTORŽ, you can help educate them on FireWise practices when buying or building a home.

By creating wildfire-defensible zones, homes are less vulnerable from this naturally occurring phenomenon and the chance of spreading wildfires is greatly reduced.

Make Your Home Fire Resistant Create an Action Guide

For more information and tools you can share with clients, visit http://www. coloradorealtors.com/projectwildfire/

Create Defensible Space

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REALTOR® NEWS

30 UNDER 30 Fort Collins REALTOR® Christie Wilbur Duggar Honored as one of REALTOR® Magazine’s 30 Under 30 Christie Wilbur Duggar

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uccess is the result of hard work, perseverance, and loving what you do. REALTOR® Magazine makes it their mission to recognize the top 30 Under 30 across the country each year. This group of young professionals illustrate their love for the job and the dedication they hold for their clients and in the quality of business they conduct daily. The Colorado Association of REALTORS® would like to recognize and congratulate Colorado REALTOR® Christie Wilbur Duggar for being an honoree of 2018’s 30 Under 30!

friends, and pups, or traveling to the beach!

WHAT YOU DO What are your success habits?

I would say following the systems I have in place for my business. When I get busy, it is easy to forget things or neglect the tasks that I have scheduled to maintain my buyer/seller pipeline. I have checklists for every aspect of my business (new buyers, new listings, buyer/seller under contract etc.) as well as weekly and monthly checklists to keep me on track and make sure all my clients are getting the same level of excellent service. By using these, I know my clients’ needs are being met, and I remember to focus on the activities that grow my business (CMA’s to past/ prospective clients, frequent contact with my database, being “The Source” of Real Estate information).

WHO YOU ARE I grew up just South of Denver and attended Colorado State University to major in Business Administration with concentrations in Real Estate and Marketing. During college, I worked as a Real Estate assistant and became licensed in 2012 once I graduated. I began my involvement with the Fort Collins Board of REALTORS® early on in my career, volunteering on several committees and eventually becoming YPN Co-Chair and Director on the Board.

This experience proved to be extremely valuable, helping me learn so much about the industry as a whole and how much work NAR/CAR does on our behalf.

How do you push through tough moments in your career?

I feel extremely lucky to be surrounded by incredible mentors and an amazing support system. When I am having a tough day, or am working through a difficult transaction, I consult my partners or managing broker for advice and my family for moral support (my husband is also a REALTOR®). They have usually been through something similar or have words of wisdom to pass along to put the challenges in perspective. I also try to remember that as much stress as I am feeling on my end, my number one priority

My husband and I are both Partners with The Group Inc. and feel so lucky to live and work where we do! When we are not working we enjoy spending time with our family, 20

is to make sure my clients are taken care of and limit the stress they feel. Keeping them in mind helps me remember to be grateful for their trust in me and push through those tough moments.

prove myself to some extent since I was so young when I was licensed, and even to this day often get questioned about my age and experience. It took me a long time to realize that my age isn’t something I needed to be embarrassed about or even something I had to overcome. As long as I worked hard, spent time investing in my education, and treated my clients as I would want to be treated during such an important transaction, success would follow. I spent many days in my managing broker’s office working towards the realization that my age did not have to matter… to me or my clients.

What is the best career decision you’ve ever made?

I believe joining The Group Inc. was the best decision I have made. I think it is so important to work at a company that shares the same values as you do, and somewhere you feel comfortable with the people and systems in place. You spend so much time working and investing in your career, you want to make sure the people around you are rooting for you to succeed and willing to help each other out. I can honestly say the people I work with are like a second family, and from the day I started, they have been willing to help me, educate me and support my young career, which I think can be difficult to find.

What do you attribute your success to?

Hard work and not being afraid to ask for help and advice!

One thing I knew right from the beginning, was that in order for me to be successful, I needed to surround myself with people who are great at what they do. When I started out, I didn’t know how much I had to learn! Asking for advice, taking other brokers out to lunch or coffee, attending networking events, and joining my local association were all ways that I learned and grew as a REALTOR®. I know I probably would have never made it in this industry without the help of my partners and mentors.

What is one tool, website, or service that you utilize that makes your job smoother or life less stressful?

My checklists! I think I would constantly be lying awake in the middle of the night trying to remember if I sent out a closing calendar to my buyer that afternoon without them. They give me so much peace of mind!

What is one piece of advice you could give to those just starting out in their real estate career?

Get organized. Create a database, develop systems that work for you and your personality and use them! In this business, it is easy to get overwhelmed if you don’t start out right.

What has been the biggest challenge of your career so far?

I believe my situation is fairly unique in the sense that I have known I wanted to sell real estate since I was in college. I went to Colorado State and majored in Business Administration with concentrations in Marketing and Real Estate and was a real estate assistant for a couple of years in college, so once I graduated I knew what my career of choice would be. Because of this, I started selling real estate when I was 22. I have always felt a sense that I had to

Christie with Husband Brent 21

NATIONAL

NAR’s S.M.A.R.T. Budget Initiative NAR Proposes $30 Dues Increase A letter from NAR Leadership:

The budget will be presented at the NAR Board of Directors meeting on May 19th. Over the next seven weeks, we look forward to discussing with every member, and state and local AE about why this budget and these S.M.A.R.T. Initiatives are essential to position REALTORS® for success in an era of change and disruption. CLICK HERE to view a PDF about this proposal.

Elizabeth Mendenhall, President John Smaby, President-Elect Vince Malta, First Vice President Tom Riley, Treasurer Kenny Parcell, Vice President of Government Affairs Colleen Badagliacco, Vice President of Assoc. Affairs Bill Brown, Immediate Past President Bob Goldberg, Chief Executive Officer

With the same determination of Churchill, the 2018 NAR Leadership Team is not flinching from our responsibility to move the National Association of REALTORS® into the future. This past week at NAR's Budget Review meeting, we passed a budget with $35 million in new programming, which we are calling the S.M.A.R.T. Initiatives: Strategic Measures Advancing REALTORS® to Tomorrow. In an effort of complete transparency, we are excited to share all of the thinking that went into developing this budget, and why we believe the accompanying proposed dues increase is the best option to continue to serve NAR's 1.3 million members.

The budget includes dollars to: • Define measurable increases in professionalism • Increase influence in an uncertain legislative, regulatory and political environment • Take the management of real estate data to the next level • Ensure the role of the REALTOR® is essential to the consumer When we took office last November in Chicago, each of us was cleareyed about the tough decisions that lay ahead. After all, we didn't accept the mantle of leadership to kick the can down the road. The 2019 NAR budget is perhaps the most shining example of your NAR leadership team living up to our collective "Own It" moment.

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don’t sign the petition for arbitrary growth limits on housing Housing is already too unaffordable for many Coloradans!

We cannot increase affordability of housing by decreasing the supply of housing.

The proposed Limited Growth ballot initiative #66 would: • Limit new permits for the total number of all housing units in each of the 10 most populous counties (Front Range) to 1% in both 2019 and 2020.

• Allows every Colorado City, Town, or County statewide to vote for housing growth moratoriums.

• Prohibits permits between the election in November 2018 and January 1, 2019.

• Voters would not be able to reconsider or alter the initiative in any manner if voters approved until at least 2021.

Potential Loss in New Construction Over 2 Years

46%

A lack of affordable housing near employment centers pushes workers farther from their jobs, forces them to commute longer distances and dis-incentivizes workers and their employers to locate in Colorado.

This initiative would put undue strain on local roadways and public transportation.

The availability of affordable housing is critical to retaining a skilled workforce, keeping local business competitive, and reducing urban sprawl.

Educate yourself before you sign a petition!

Please tell your friends, colleagues, and neighbors not to sign the petition to put arbitrary housing limits on the ballot in Colorado!

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GOVERNMENT AFFAIRS

2018 Midsession Review Needless to say, this has certainly been a very different type of legislative session.

Election years are often tumultuous and can be emotional as partisan message bills give rise to heated rhetoric and potentially narrow the ability for legislators to find bipartisan compromise. Moreover, tensions have run high as the pace of the calendar increased and legislators in both chambers deliberated on once-in-a-century expulsion decisions of their fellow members related to sexual harassment claims.

When the dust settled after these discussions, the House expelled one of their members and that member changed his party affiliation, which allowed the House Republicans to appoint a new member by vacancy committee and the new member just started his tenure last week. This week the Senate deliberated on an expulsion, but ultimately they were split in a tie vote, therefore leaving their colleague in place as a member of the state Senate. All 100 members of the Colorado Legislature took their gargantuan decisions very seriously and professionally and should be commended for giving these discussions the respect they deserve.

By: Elizabeth Peetz VP of Government Affairs, Colorado Association of REALTORSÂŽ

given the legislators a 1.3 Billion dollar surplus to divvy up between important competing priorities that have been underfunded for several years, including transportation, education, and PERA. Once the House and Senate finish their balanced budget as required by law, we will find out how much discretionary money is left over for regular bills with appropriations.

In terms of legislation, CAR is very happy to report that one of the critically important issue areas that CAR engaged in with supportive testimony is also one of the major bi-partisan compromises of 2018 that was recently signed into law by Governor Hickenlooper. Funding for rural broadband (SB18002) and the first right of refusal (HB18-1099) will become legally effective later this summer.

Additionally, on April 3rd the sunset fix (HB18-1227) that gives the Division of Real Estate statutory authority to promulgate rules that allow calendar license renewals instead of anniversary date renewals, and fixes the problems of continuing education for transitioning licensees, passed through both houses. It is now headed to the Governor’s desk. Under the final version of the legislation, there will be no requirement for a transition course. Rather, licensees will

Now with less than six weeks to go in the 2018 legislature, we are in the middle of the budget debate and there are some very big compromises at stake. This year the success of the Colorado economy and the federal tax cuts have

CAR has been tracking the affordable housing legislation and the squatter prevention legislation.

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Now with less than six weeks to go in the 2018 legislature, we are in the middle of the budget debate and there are some very big compromises at stake...

be required to complete two annual update courses and fulfill the remainder of their required continuing education hours with elective courses.

Despite the short time frame, several bills have met an early death but there are still multiple bills working their way through the legislative process. The attempt to roll-back construction litigation reforms passed in 2017 has finally surfaced. House bills 1261 and 1262 both take a broad swipe at arbitration as an alternative dispute resolution method. Although these bills have been marketed as simple transparency and disclosure changes that remove bias from the process, they are actually more of a disguised attempt to make arbitration compliance requirements so cumbersome that it would be very difficult for any individual or organization to be able to comply with the overly strict and overly broad disclosure requirements. This legislation passed out of the House on a party-line vote and we will be watching to see what the Senate does when they review the two bills.

Squatting, or trespassing by unauthorized occupants of properties, poses a real menace to real estate when an unauthorized occupant moves into a vacant apartment or house without the consent of the true owner. Frequently, houses targeted by unauthorized occupants are foreclosures or properties undergoing renovations, but they can also be homes offered for sale by owners. In some egregious cases, families have returned home from a vacation to find unauthorized occupants living in their homes. SB18-015 is the proposed legislative solution to this problem. The bill would allow a rightful property owner to remove an unauthorized person from a residential property within 24 to 72 hours based on an affidavit from the true property owner. The rightful property owner is subject to the penalty of perjury if the information they report on the affidavit is inaccurate. This bill has passed the Senate and is currently being considered by the House.

Finally, CAR has been tracking the affordable housing legislation and the squatter prevention legislation. The 2018 Document fee bill (SB18-006) died in Senate State Affairs Committee in the first 60 days. The low income housing tax credit reauthorization to 2024 (SB18-007) passed the first two committee of reference and is now waiting in appropriations for the completion of the budget. Another creative approach to increasing the supply of affordable housing waiting in appropriations is HB18-1195. This bill creates a tax credit for individuals or organizations that make philanthropic contributions to nonprofits or housing authorities that will build affordable housing at the 120% of average median income or lower level.

CAR remains vigilant in protecting your industry as the voice of real estate. Stay tuned for the recap of the legislative session in June and we hope to see many of you at CAR Spring Summit and Mid-Year Meetings in Washington, D.C.

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Real Estate SnapShot S TAT E O F C O L O R A D O - M A R C H 2 0 1 8

Median Sales Price

Single Family and Townhouse/Condo

Single Family Home $380,000 $352,200 MAR 2018

373,048 $345,000

MAR 2017

YTD 2018

8.0%

$290,000 $262,750

YTD 2017

MAR 2018

8.1%

16,018

MAR 2017 - Total Market

20,861

MAR 2018 - Single Family

12,462

MAR 2017 - Single Family

16,159

MAR 2018 - Condo MAR 2017 - Condo

3,436 4,635

$290,000 $255,000

MAR 2017

YTD 2018

10.4%

Inventory Active Listings MAR 2018 - Total Market

Average Days on Market

Townhouse/Condo

YTD 2017

-9.6%

YTD 2018= 51 YTD 2017= 56

13.7%

-8.9%

Sold Listings

-23.2%

-22.9%

MAR 2017 - Total Market

-7.2%

9,461

MAR 2018 - Single Family

6,732

MAR 2017 - Single Family

7,153

-25.9%

New Listings Total Market

8,780

MAR 2018 - Total Market

MAR 2018 - Condo

2,044

MAR 2017 - Condo

2,308

MAR 2018= 12,800 MAR 2017= 13,652

-5.9%

-11.4%

-1.5% Pending / Under Contract

Single Family Condo

MAR 2018= 11,348 MAR 2017= 10,795

5.1%

$400000

YTD 2018= 27,641 YTD 2017= 26,896

$300000

$200000 Mar 2016

-6.2%

YTD 2018= 30,876 YTD 2017= 31,357

Historical Median Sales Price By Quarter $500000

MAR 2018= 47 MAR 2017= 52

2.8% June 2016

Sept 2016

Dec 2016

Mar 2017

June 2017

Sept 2017

Dec 2017

Mar 2018

Months Supply Overall

Percent of List Price Received

Current as of April 5, 2018. Percent changes calculated using year-over-year comparisons. All data from the multiple listing services in the state of Colorado.

Powered by 10K Research and Marketing.

For more data visit ColoradoREALTORS.com 26

99.83%

99.4%

MAR 2018

YTD 2018

MAR 2018= 1.7 MAR 2017= 2.2

-22.7%

the

Run-a-Round For CAR member, past president, and ROTY Greg Zadel, his hobby of running has turned into a sort of art form. Greg bought a Garmin Forerunner 920 XT (but he says any GPS watch will work) and started planning out his runs to make fun maps.

Often, these maps depict REALTOR® or real estate-related symbols. After his run, he just uploads it to Strava. Strava is a free site/app that tracks runs, walks, bike rides or swims. We caught up with Greg recently and asked him a few questions.

Explain briefly how you plan your “REALTOR®” runs: First, I look at a map and sometimes draw it out to see if the design I have in mind will work (no buildings in the way and open area to create the shape). Then, I plan the direction to go. It is like an Etch-A-Sketch since you go in a continuous line. I don’t know how it turns out until after the run when I download it from my Garmin.

Best tip for someone getting into running: Get good shoes, take it at your own pace, and just do it!

What is you favorite brand of running shoes? Asics Gel Kayano.

How many miles per week do you usually run? 18-20 miles per week.

What are your most memorable runs? Trail runs, running in different cities, it’s all good.

Any big goals for 2018? To just keep going.

If you want to see Greg's latest maps you can follow him on Facebook. Do you have an interesting story you would like to share? Email monica@coloradorealtors. com.

Greg Zadel on one of his fun runs.

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AROUND THE STATE

Colorful Colorado

A look at Pueblo and the Royal Gorge Area In the next few issues of the Colorado REALTOR® magazine, we are going to feature different areas of our state in articles written by our very own Colorado REALTOR® members.

rado City, to the quirky and friendly mountain community of Beulah.

Our economy is fueled by all types of business with all types of employment needs. We have heavy and light industry, Colorado State University Pueblo, Pueblo Community College, three hospitals, and several urgent care centers. Small businesses of all types are alive and well here. And we have some of the best Mexican restaurants anywhere.

PUEBLO Pueblo, Colorado - city and county – is a great place to live, work, and play in Colorado. If you don’t already know that, then you don’t know what you're missing.

The art scene is populated with many local artists whose works are displayed and sold here and in places like Taos, Santa Fe, and at our expanding Convention Center, and the Historic Arkansas Riverwalk Project. We have an active Arts center complete with a delightful children’s museum.

Pueblo’s low cost of housing will delight potential buyers from larger urban areas. We have affordable older and newer homes, historic homes in old established neighborhoods, city lofts, and brand new modern homes displayed every year in our Parade of Homes. You can choose from neighborhoods that range from charmingly conventional to new and modern, and everything in between. Choose from the city of Pueblo, or the country/suburban Pueblo West, to real country living on the Mesa, to mountain developments in Rye and ColoBy: David S. Anderson, CRS, SRES RE/MAX Pueblo West

With a semi-arid climate similar to New Mexico, you can golf, bike, walk, run, fish at Lake Pueblo, camp, boat, and just enjoy the sun 300 days per year. Annual festivities include the State Fair, the Chile Fest, the National Hot Rod show, baseball, and soccer tournaments.

However, Pueblo’s friendly people are its most important feature. So if this is all news to you, come and visit Pueblo, the Home of Heroes.

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ROYAL GORGE The Royal Gorge Area is composed of the Colorado counties of Fremont and Custer. The counties are physically separated by the Wet Mountains which run east to west between them. Custer County is By: David Madone, back-dropped by the Sangre de CRS, ABR, CNE, ePro River Street Real Estate, Cristo Mountains while Fremont Ltd. County hosts the Arkansas River and the famous Royal Gorge Park and Bridge. Both counties are considered small rural counties by population, which gives the residents a laid-back lifestyle and wide open spaces.

The major cities located in the Royal Gorge Area are Cañon City, Florence, Penrose and Westcliffe. Let’s take a quick look at Cañon City. Cañon City is the Fremont County seat and is nestled at the foot of Fremont Peak to the West, the Wet Mountains to the South, Mt. Pisgah to the North and Pikes Peak to the Northeast. The unique location of these protective mountains diverts most of the severe weather around the city making Cañon City the “Climate Capital of Colorado.” Cañon City sports an average of over 250 sunny days

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per year. Cañon City’s biggest asset and creator of our cityowned Royal Gorge Park is the Arkansas River which runs through the center of the community. As it travels through the canyons to the West, the river provides some of the best fly fishing and rough water river rafting in the world. In town, it provides the residents with some of the best recreation and solitude that a person’s feet can find.

The community has developed a seven mile stretch along the river known as the Arkansas Riverwalk. At the West end is Tunnel Drive, an old water supply route that makes its way through a couple of hard rock tunnels and then travels the seven miles through town. A person can board the Riverwalk from one of the many locations along the way for a walk, run, bicycle ride, or just find a shady spot by the side of the river. The Riverwalk has exercise stations, rest areas, and photo opportunities the entire way. Many residents make it a daily trek whether by themselves or with another two legged or four-legged companion.

How good is your arm? Can you hit the other bank of the river with a rock? When residents yearn for big city life it is easily found with a quick trip to Colorado Springs, which is 45 minutes away and Denver is only 2 hours away. Having some of the most affordable housing in the state, a mild climate, and other recreational amenities makes Cañon City a unique and rewarding place to settle down.

TECHNOLOGY

Let Technology Help You Run Your Business There are thousands of websites and applications that can help manage the day-in and day-out tasks that come with running a small business. Reduce stress, streamline operations, and become more efficient by incorporating these tools into your daily business operations.

Hootsuite™ is a website that allows you to manage all social media accounts in one easy-to-view dashboard. The website has many different features and platforms that will enhance your social media presence and reduce the time spent managing all accounts. You can pre-schedule posts, monitor what is trending on different media platforms, and have access to content creation to name a few of their features. Hootsutie™ offers a variety of tiered price plans with a free plan as an option. Visit the website here: https://hootsuite.com/

Canva is a website that allows anyone to create stunning and professional looking flyers, posters, and logos with many other design templates available. The process is easy and user-friendly and most importantly, free! Just be sure to swap out the photos that come pre-generated in the template. Creating open house flyers has never been easier. Visit the website here: https://www.canva. com/

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TripitÂŽ is an app that can be downloaded on any cell phone for free.

It organizes travel details like flight, car rental, and hotel into one master itinerary. Some of the key features include: syncing travel plans with your calendar, the ability to share your travel plans with others, and easy access to all of the details of your travel plans on your phone or tablet. There is an option to upgrade which would allow other features such as real-time flight alerts and locating alternate flights in the event yours get cancelled unexpectedly.

Go to your app store to download today.

youcanbookme is a website that helps organize your schedule and allows clients to book appointments with you. You create your site and when a customer or client would like to book you for an appointment, they will be able to see what days and times you are available and reserve a spot.

This frees up your time by eliminating the back-and-forth phone tag to settle on a time when you’re both available. Features include confirmations, reminders, customization in how booking events appear in your calendar, and automated follow-up emails.

There are different tiered plans with a basic free plan available. You can visit the website here: https://youcanbook.me

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LENDING CORNER

It’s a Tough Market for Colorado Home Buyers

Here’s How You Can Help

By: Daisy Perez, Director – Consumer Loan Operations, FirstBank

Interest rates are still historically low but expected to rise over the coming year. As a result, home buyers are feeling motivated to start their search for a house – asap. And with an increasingly competitive real estate market, buyers need to be more prepared than ever.

bers provided by the Colorado Association of REALTORS®, there is only a month’s worth of inventory available in the City of Denver compared to the metro’s 1.3 months.

Prices are Soaring. While the metro area is also shattering record median prices, rising 6.2 percent overall since 2016, Denver still outpaces it by nearly 10 percent. Zillow also reported that 39.5 percent of all Denver homes last year sold above the original asking price compared to 24 percent nationally. Prices in Boulder and Longmont are also increasing. For singlefamily homes, the median sales price increased 11 percent in Longmont and 1.2 percent in Boulder between 2016 and 2017. Boulder may have seen a less extreme increase, but the price differentiation between the two cities is large.

As the 2018 buying season heats up, here’s how you can help your clients find the right home for their family and financial situation.

MANAGE EXPECTATIONS BY MAKING SURE THEY KNOW THE FACTS. Competition is Fierce. According to a 2018 report from LendingTree, Denver is the third most competitive market for homebuyers in the nation. It was surpassed only by San Francisco and San Jose. When a Colorado city places in the same class as an area full of Silicon Valley billionaires, your clients need to be primed for a tough market.

GET THEM BID-READY BEFORE THE FIRST SHOWING. Credit score, loan and down payment? Check. In a seller’s market, it’s probably no surprise that your clients need to position themselves as the most appealing buyer. Three things make a homebuyer more competitive: 1) obtaining a loan before shopping for a home, 2) putting a lot of money down, and 3) having a high credit score. It’s worth noting that Den-

Inventory is Low. The cause for this fiery competition? Lack of inventory. Denver, for example, hit a new record low of active listings in December, with only 3,854, compared to a historical average of 14,000 homes for sale. According to num-

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EASE THEM ACROSS THE FINISH LINE.

ver came in first among U.S. cities in terms of pre-purchase loan shopping, with a whopping 65 percent of homebuyers obtaining a mortgage ahead of time. So stress to your clients the importance of lining up a mortgage partner and locking down a rate before the search begins.

Find an excellent home inspector. You know that the home inspection can be a make-or-break process for home buyers, so be careful about who you recommend for inspections and vet them thoroughly. Your reputation may be impacted by the quality of your recommendations. Let your clients also know if they need additional inspections, including radon, mold, water, lead paint, etc. These are all potential stumbling blocks that could cause issues in the sale.

What’s more, the average down payment in Denver is 16 percent with 56 percent of homebuyers having credit scores above 680.

Helping ensure clients can get above these thresholds could make a big impact.

The bigger, the better. In the Colorado real estate market, a smaller down payment can put your clients at a disadvantage.

Let them know if they borrow more than 80 percent of the value of a home, they will typically have to pay private mortgage insurance (PMI) and will be subject to higher interest rates, costing them hundreds each year. While this may seem impractical given the rising prices, it’s important to educate them on this and ensure they know the risks and rewards.

Assist buyers in monitoring their loan commitment. Make sure clients understand they need to maintain their current financial situation and credit status. The pre-approval they got for their home purchase is a fragile thing, based on information given to the lender during the pre-approval request. Any changes to their financial situation (a depleted savings account or increased credit use) could make it impossible to get the loan or reduce the amount the lender makes available. Make sure your clients know they should avoid any large purchases and not take out additional loans/credit lines before they close on a home.

Mock monthly budgets. Explain to your clients the value of creating a mock homeowner budget that includes monthly utilities, HOA fees, mortgage payment, property taxes and home insurance. In the excitement of the moment, it’s easy for home buyers to overlook some of the costs associated with owning a house.

Being knowledgeable ahead of time will help them focus on the right price points. You can recommend that your clients use a “rule of thumb” estimator available on Nerdwallet.com.

There is no perfect science to home buying, and for both clients and REALTORS®, it sometimes comes down to luck and timing.

But having a plan of attack and sharing information about key factors can improve your clients’ odds. Putting in this extra work can help you save your clients a lot of time and money – and that will, in turn, help you build referrals and grow your business.

Advise on must-have features. You know that granite countertops, tricked out basements and flashy backsplashes don’t add a lot of value to a house, so help your clients understand which features really count. Remind them of the importance of quality school districts, property views and amount of land. Furthermore, providing insights into which neighborhoods may provide great resale based on land, schools and development projects is key. If driving clients from house-to-house is the biggest service you’re providing, they may say ‘sayonara.’

Daisy Perez is the Director of Consumer Operations for FirstBank, Colorado’s second largest bank and one of the largest privately-held banks in the country. FirstBank is recognized as one of the best performing banks in the nation and ranked a top bank for customer satisfaction in the state by industry and business publications. If you have questions about this article or would like to contact Daisy for more information, she can be reached at (303) 239-5135 or daisy.perez@efirstbank.com.

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PROFESSIONAL DEVLOPMENT

It’s Game On for the Real Estate Industry Ready for a new twist in continuing education? Domino’s uses it to help new employees quickly and accurately learn how to top all of its pizzas. HP leverages it to show workers the different ways that their interactions influence its brand. And NTT Data utilizes it to help future leaders explore new management subject areas, collaborate, and get recognition for their efforts as potential leaders.

What do all three of these organizations have in common? Each one uses gaming to engage and educate constituents for various different reasons.

These organizations aren’t alone in their realization that fun and work really do mix. In fact, gamification dates back to the 1800s and can be described as the “concept of applying game mechanics and game design techniques to engage and motivate people to achieve their goals.”

According to Gamification in Business: The Ultimate Game Changer, it is the process of taking something that already exists (like a website, an

application, an online community) and integrating game mechanics into it to motivate participation, loyalty, and to foster engagement.

Gamification is the science of converting tasks into games.

Research is showing that we not only enjoy games, we retain far more information from them.

Gamification- A Growing Market According to Research & Markets, the gamification market is estimated to grow to $11 billion by 2020, up from $1.65 billion last year. Key drivers of this 46% annual growth rate include the increasing need of gamification solutions and applications in consumer and enterprise

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brands. The research firm says gamification solutions are increasingly being adopted in various verticals, such as media and publishing, entertainment, and ecommerce. Professional industries have taken a hard look at gamebased learning (GBL) as a means to help increase retention, engagement, and to maintain importance in students’ very busy lives. The concept of GBL balances subject matter with game play to increase retention for an improved learning experience and a number of companies that have incorporated GBL into their training include the Army, Cisco, Deloitte, Google, and Microsoft—all with positive results.

Click here to learn more about Interact CE classes available for Colorado REALTORS®.

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REAL ESTATE TRENDS

FIVE MAGIC QUESTIONS OF RECRUITING How do you articulate your value proposition to a prospective sales associate?

At a recent recruiting workshop with top managers and owners, I observed them focusing on their traditional value attributes, such as brand, technology, marketing, training, market share and commission program.

I heard a lot of, ‘Well, I tell

By Larry Kendall, them XX,’ as if preaching their Chairman emeritus of company’s value will make a The Group, Inc. difference. I didn’t hear them asking any questions. Questions are the key when recruiting.

are a great way to start the connection and continue it when you meet again.

Family/Friends: Ask about their family and look for common friends Occupation: How’s business?

Recreation: What are you doing for fun?

Dreams: Ask any questions about the future—what are your plans for the holidays?

2. Pain Question. What is the biggest challenge in your business right now? For top producers, I usually hear that they are working too many hours or can’t get to all the business they have right now. Occasionally, they will comment on a frustration they’re having with their current company—perhaps technology, staff or a manager. This question reveals what they are praying for. Now you need to provide an answer to their prayers. Do this in a Socratic manner by asking questions such as, ‘Would it be helpful if XX?’ versus ‘Let me tell you XX.’

RECRUITING SHOULD BE AN INTERVIEW, NOT A PRESENTATION. Knowing your value proposition and continually looking for ways to improve it is important in recruiting. However, before you can be the answer to someone’s prayers, you need to find out for what they are praying. You find out with questions. Here are my five favorite recruiting questions.

3. Pleasure Question. If you could wave a magic wand and have your business just the way you want it, what would it look like? Tell me more about that. They will often offer the solution to their pain question.

1. Start with F.O.R.D. questions. Always start your conversation with connection questions. You really can’t recruit someone until you connect with them. F.O.R.D. questions

If you could wave a magic wand and have your business just the way you want it, what would it look like?

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4. Environment Question. Do you feel you are in the environment you need to be in to make that happen? Here’s where you connect your value as a solution to their pain and pleasure.

husband and daughter.

On the environment question, she looked at me, and with tears welling up in her eyes, she said “If I stay there, it will be groundhog day won’t it? It will be the same as it ever was.”

5. Value Clarification Question. Do you believe your income is fixed regardless of your company, or do you believe you have a range of income that is influenced by the environment you are in, the people you work with, and the systems available to you? Many sales associates have not thought about this question. They assume they will make the same income per hour regardless of where they work, so they look for a company where they can pay less. This question opens their thinking (and belief system) about their possibilities.

On the value clarification question, she never thought about it and said, “Do you think I can have the life I dream about if I come to your company? Can you help me increase my per-hour income, so that I can have a life?” I assured her we could and showed her how our systems would help her.

She joined us and increased her income by 45 percent the next year. More importantly, the first sales meeting of the new year, she came bounding down the stairs, gave me a big hug and said, “It’s true! It’s true!” I said, “What?” She said, “I attended every one of my daughter’s events, we took six vacations, my husband and daughter are happy with my career change, and I have a life again!”

Two years ago, I was interviewing the top producer of another company and one of the top associates in our market.

I like to use the word interview versus recruiting because, again, we are asking questions versus telling and selling.

Here’s what she said:

Would she have joined us anyway? I don’t think so if our recruiting approach had been telling and selling instead of interviewing. The five magic questions are the key.

On the pain question, she said she was a “gerbil on a wheel” working 24/7.

This article originally appeared in the March 2018 issue of the REAL Trends Newsletter and is reprinted with permission of REAL Trends, Inc. Copyright 2018.

On the pleasure question, her magic wand was to have a least one day off a week, so she has time with her daughter after school and to take four extended vacations with her

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Colorado Association of REALTORS® RPAC MAJOR INVESTORS 2018 NAR Presidents Circle

($1000 min. to RPAC and $2000 to national political parties or NAR-selected federal candidates)

Tyrone Adams, Colorado Association of REALTORS® Barbara Asbury, Pikes Peak Assoc. of REALTORS® David J. Barber, Aurora Association of REALTORS® Gary Bauer, Denver Metro Association of REALTORS® Piper Bruner, Denver Metro Association of REALTORS® Michael Burkhard, Grand Junction Area REALTOR® Assoc.

Dale Carroll, South Metro Denver REALTOR® Assoc.

Amy Dorsey, Vail Board of REALTORS® Karen Frisone, Denver Metro Assoc. of REALTORS® George Harvey, Telluride Association of REALTORS® Ann Hayes, Grand Junction Area REALTOR® Assoc.

Jay Kalinski, Boulder Area REALTOR® Association Keith Kanemoto, Longmont Assoc. of REALTORS®

Michael Labout, Pikes Peak Assoc. of REALTORS® John Lucero, Denver Metro Association of REALTORS® Melissa Maldonado, South Metro Denver REALTOR® Assoc.

Michael Marcus, South Metro Denver REALTOR® Assoc.

Scott Matthias, South Metro Denver REALTOR® Assoc.

Chris McElroy, Fort Collins Board of REALTORS® Larry McGee, South Metro Denver REALTOR® Assoc.

Ron Myles, Denver Metro Commercial Assoc of REALTORS® Jason Peck, Denver Metro Association of REALTORS® Todd Schuster, South Metro Denver REALTOR® Assoc.

Bonnie Smith, Summit Association of REALTORS® Linda Romer Todd, Grand Junction Area REALTOR® Assoc.

Kay Watson, South Metro Denver REALTOR® Assoc.

NAR Corporate Ally Program

(Multiple Listing Services voluntarily investing in RPAC)

IRES Geoff Lewis, RE/MAX, LLC

Pikes Peak REALTOR® Service Corp REcolorado

Platinum R - Annual Investment of $10,000+

Pikes Peak REALTOR® Service Corp Pikes Peak REALTOR® Service Corp

REcolorado REcolorado Boulder Area REALTOR® Association Gary Bauer, Denver Metro Association of REALTORS® Colorado Association of REALTORS® Pikes Peak REALTOR® Service Corp Linda Romer Todd, Grand Junction Area REALTOR® Association Pikes Peak REALTOR® Service Corp REcolorado REcolorado

Golden R - Annual Investment of $5,000+ Dale Carroll, South Metro Denver REALTOR® Assoc.

Amy Dorsey, Vail Board of REALTORS® George Harvey, Telluride Association of REALTORS® Keith Kanemoto, Longmont Association of REALTORS® Michael Labout, Pikes Peak Association of REALTORS® Michael Marcus, South Metro Denver REALTOR® Assoc.

Scott Matthias, South Metro Denver REALTOR® Assoc.

Chris McElroy, Fort Collins Board of REALTORS® Larry McGee, South Metro Denver REALTOR® Assoc.

Ron Myles, Denver Metro Comm. Assoc. of REALTORS® Bonnie Smith, Summit Association of REALTORS® Kay Watson, South Metro Denver REALTOR® Association

Crystal R - Annual Investment of $2,500+ David J. Barber, Aurora Association of REALTORS®

Updated March 20, 2018

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Sterling R ~ Annual Investment of $1,000+ Tyrone Adams, Colorado Association of REALTORS® Monica Anderson, Grand County Board of REALTORS® Barbara Asbury, Pikes Peak Association of REALTORS® Richie Averill, Denver Metro Assoc. of REALTORS® Ann Bagwell, Aurora Association of REALTORS® Sunny Banka, Aurora Association of REALTORS® Erin Bassett, Glenwood Springs Assoc. of REALTORS® Piper Bruner, Denver Metro Association of REALTORS® Michael Burkhard, Grand Junction Area REALTOR® Assoc.

Linda Buzzalini, Durango Area Assoc. of REALTORS® Natalie Davis, Fort Collins Board of REALTORS® Shane Dawson, Durango Area Assoc. of REALTORS® David DeElena, Aurora Association of REALTORS® Amanda DiVito Parle, Denver Metro Assoc. of REALTORS® Molly Eldridge, Gunnison Country Assoc. of REALTORS® Bob Fullerton, Glenwood Springs Assoc. of REALTORS® Micah George, Grand Junction Area REALTOR® Assoc.

Jace Glick, Denver Metro Association of REALTORS® Nancy Griffin, Aurora Association of REALTORS® Heather Hankins, South Metro Denver REALTOR® Assoc.

Lauren Hansen, Colorado Association of REALTORS® Ed Hardey, Aurora Association of REALTORS® Ann Hayes, Grand Junction Area REALTOR® Assoc.

Toni Heiden, Grand Junction Area REALTOR® Assoc.

Ken Hotard, Boulder Area REALTOR® Association Dennis Johnson, Summit Association of REALTORS® Janene Johnson, Grand County Board of REALTORS® Jay Kalinski, Boulder Area REALTOR® Association Justin Knoll, Denver Metro Association of REALTORS® Dave Kupernik, Denver Metro Assoc. of REALTORS® Bob LeGare, Aurora Association of REALTORS® Karen Levine, Denver Metro Association of REALTORS® Alan Lovitt, Pikes Peak Association of REALTORS® John Lucero, Denver Metro Association of REALTORS® Kevan Lyons, REALTORS® of Central Colorado Stew Meagher, South Metro Denver REALTOR® Assoc.

Kristin Miller, Denver Metro Association of REALTORS® John Mitchell, Aurora Association of REALTORS®

Jill Moneypenny, Vail Board of REALTORS® Josette Montgomery, Mountain Metro Assoc. of REALTORS® Kelly Moye, Boulder Area REALTOR® Association Jarrod Nixon, Durango Area Association of REALTORS® Jason Peck, Denver Metro Association of REALTORS® Elizabeth Peetz, Colorado Association of REALTORS® Scott Peterson, Colorado Association of REALTORS® Linda Philpott, Aurora Association of REALTORS® Hank Poburka, Pikes Peak Assoc. of REALTORS® Preston Porter, Pagosa Springs Area Assoc. of REALTORS® Veronica Precella, Boulder Area REALTOR® Assoc.

Amy Reid, Pikes Peak Association of REALTORS® Randy Reynolds, Pikes Peak Assoc. of REALTORS® Jamie Richards, Colorado Association of REALTORS® Albert Roer, Telluride Association of REALTORS® Gretchen Rosenberg, Denver Metro Assoc. of REALTORS® Crissy Rumford, Vail Board of REALTORS® Ulrich Salzgeber, Steamboat Springs Board of REALTORS® Todd Schuster, South Metro Denver REALTOR® Assoc.

Lynn Snyder Goetz, South Metro Denver REALTOR® Assoc.

LaDawn Sperling, Denver Metro Assoc. of REALTORS® Ron Thorne, Mountain Metro Assoc. of REALTORS® Mark Trenka, Denver Metro Assoc. of REALTORS® Darrell Wass, Pikes Peak Assoc. of REALTORS® Dean Weissman, Pikes Peak Assoc. of REALTORS® Greg Zadel, Denver Metro Association of REALTORS® Sandi Zimmerman, Denver Metro Association of REALTORS®

Updated March 20, 2018

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