Kentucky ®
FALL 2016
A publication of the Kentucky Association of REALTORS®
How to Create Customers for Life Communication with an Appraiser 5 Tips for a Better Policies & Procedures Manual kar.com
CONTENTS Volume 9, Number 2, FALL 2016
A publication of the Kentucky Association of REALTORS® President C. Lamont Breland, Greater Louisville Association President-elect Mike Becker, Northern KY Association Treasurer Steve Cline, REALTOR® Association of SKY Treasurer-elect Rip Phillips, Greater Louisville Association CEO Steve Stevens sstevens@kar.com KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers. All articles represent the opinions of the authors and do not necessarily represent the opinions of Kentucky REALTOR® or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting matters by KAR or Kentucky REALTOR® and its authors.
Reproduction prohibited without permission. Copyright© 2016. Kentucky Association of REALTORS®, Inc. All rights reserved. Address letters and inquiries to: Kentucky REALTOR® 2708 Old Rosebud Road, Suite 200 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com
IN THIS ISSUE
0 How to create customers for life 1 12 Communication with an
appraiser
20 5 tips for better policies & procedures manaual
REGULAR FEATURES
4 KAR News 5 6 8 14 19 22 24 25 26
President’s Message Tools You Can Use Legal Update Legislative Update Education Local Association News By the Numbers Housing Stats How to really reach today's real estate consumer 28 CEO Message 30 A Day in the Life of...
ON THE COVER Cover photo submitted by John Black, with Bluegrass Partners Trust Realty in Lexington. The shot was taken at a well-known “park” in the downtown Lexington area. Go to the KAR Facebook page (facebook.com/kentuckyrealtors) – please like the page if you haven’t already – locate the cover photo and comment with the name of the “park” for a chance to win a free online course with Jason Vaughn, courtesy of the Kentucky Real Estate Education Foundation (KREEF). If you would like to submit a photo for the magazine cover contest (Spring 2017 issue), send photographs to kar@kar.com. Photos must be high resolution and be Kentucky specific – landmark, destination, etc. SPRING 2016 | Kentucky Realtor® | 3
KAR NEWS Lend a hand to the Appalachian Rebuild Project October 5-8 As part of KAR’s commitment to community service, the Association is participating in an Appalachian Immersion Trip to eastern Kentucky. The trip is in cooperation with Hand in Hand Ministries, an organization, based in Louisville, whose mission is to help empower individuals and families living in poverty. We are coordinating a group of up to 35 member volunteers who want to participate in the trip to eastern Kentucky to help make a difference right here in our home state. The KAR team of volunteers will travel to eastern Kentucky to repair homes for those most in need. Repairs range from building wheelchair ramps for the disabled to replacing floors, roofs and plumbing in family homes. After a hard days work, volunteers will stay at The Auxier Center, a renovated school building that also serves as a community center for the region with a library, computer lab, food pantry and sewing center. You do not have to have construction skills to participate in the trip. Details of the trip: • Dates are Wednesday, October 5 - Saturday, October 8. Arrival will be later in the day on Wednesday, working 2.5 days and leaving on Saturday afternoon. • Cost is a minimum contribution (payment made out to Hand in Hand) of $125 for the first 25 members, $250 for the remaining 10 members (more would be appreciated). Members can pay themselves or raise donations to cover the contribution. • Participation includes lodging, most meals, building materials, tools and a volunteer t-shirt. • Transportation to Auxier is on your own and transportation to the work sites may need to be made in personal vehicles. To confirm your spot on the trip, visit bit.ly/ekyrebuild. For more information regarding this project, please contact KAR at 800.264.2185.
Partnership with the Boys & Girls Clubs of America
NAR and the Boys & Girls Clubs of America (BGCA) have joined forces so America’s kids continue to have a bright future. As the premier youthserving organization in the U.S., BCGA has doors open to youth in communities across the country, serving as a “home away from home” for nearly 4 million kids each year during the critical time after school and in the summer. If you, your brokerage or Association is looking for an organization to be involved with and/or to help through volunteering or financial support, we are encouraging you to consider the BGCA. You can learn more about the partnership and make an online donation at www.realtor.org/BGCA. On the site, you can also locate a club in your area as well as learn the different ways you can lend your support.
Seller Disclosure of Property Condition Form (SDF) receives updates
Effective in May 2016, the Seller’s Disclosure of Property Condition Form (SDF) was updated with enforcement started on September 1, 2016. You can find copies of the updated form on the KREC website (krec.ky.gov). The updated SDF requires a new disclosure for methamphetamine contamination, it also updated the terminology for “flood plain” to “special flood hazard zone”, along with some other formatting changes. The updated regulation (201 KAR 11:350) also provides a definition for “singlefamily residential real estate dwelling” that is stated as: “[A]ny: (1) Duplex, triplex, fourplex, condominium, townhouse, or residential unit; (2) Manufactured home permanently attached to land; or (3) Residential unit otherwise conveyed on a unit-by-unit basis, even if the unit is part of a larger building or parcel of real estate containing more than four (4) residential units.”
OUR AFFINITY PARTNERS Contact GEICO for a free quote on auto insurance to see how much you could be saving. Mention your KAR affiliation, you could qualify for an exclusive member savings opportunity on auto, homeowners, renters, motorcycle insurance and more! Through this special auto insurance program, you will save up to $500 with special rates on your auto policy even if you already have Nationwide as your carrier. In addition to auto insurance, Nationwide can also provide you with other products such as home/renters, boat and RV insurance as well as identity theft protection.
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KAR members can save up to 30 percent on UPS shipping. Members currently enrolled in the UPS Savings Program must re-enroll to take advantage of this new exclusive offer. KAR members can now save over 40% on tickets to Kings Island, a 364-acre amusement park located 24 miles northeast of Cincinnati in Mason, Ohio that has won Amusement Today’s Golden Ticket Award for having the “Best Kids’ Area” in the world for fourteen consecutive years (2001–2014). The park features over 80 rides, including 14 roller coasters and a 33-acre water park.
Provided to you and your family & friends to help lower your prescription drug costs. Your FREE Prescription Drug Card can save you up to 75 percent (discounts average roughly 30 percent) at more than 54,000 national and regional pharmacies. KAR members can now join the UKFCU and enjoy all the benefits offered like free online banking and bill pay, great rates on mortgages and other savings and loans and over 30,000 free ATMs nationwide. With many different ‑financial products and services, from checking and savings accounts to auto loans and money market accounts, UKFCU can meet your needs and serve you for life. And, you receive $50 just for joining.
PRESIDENT'S MESSAGE
Start with Why. I Did.
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s a write this article, I’ve just finished up two meetings for KAR. One was for strategic planning and the other for finance & budget meeting, both in Lexington. At these meetings, I was not alone. I was joined by 20 or so fellow REALTORS® from around the state that volunteered their time, talent, and treasure to help make KAR better for its members. But WHY? That’s a question that I am often asked. “Why do you do it? Why do you take time away from your family, friends, business, etc. to help KAR?” In his book, “Start with Why,” Simon Sinek’s main premise is: People don’t buy what you do, they buy why you do it. In other words, most people can smell a fake, but if you’re truly “all in” to what you are doing, they will feel it and choose to do business with you or your organization. So, whenever I consider most anything, I ask myself, “why am I considering doing this?” Is it ego, pride, others expectations, etc. or because I truly believe I can make a difference, am uniquely equipped to add value or some other noble reasoning? I’m going to talk to you like you’re a first time home buyer when it comes to KAR (please don’t be offended), because if we’re honest, most members don’t have a clue what KAR is or does, and many think we are KREC (Kentucky Real Estate Commission). KAR has three main “pillars,” the things we do best. They are: 1. Advocacy, or politics (the REALTOR® Party), making sure our elected officials at the local, state and federal level know what issues are important to REALTORS® and we fund many of those elected officials that support our issues, no matter their party affiliation. 2. Education, through yet another acronym, KREEF (Kentucky Real Estate Education Foundation), we develop and deliver educational opportunities for REALTORS® across the state. It was once said, “the more you learn, the more you earn!” 3. Professional Standards, KAR supports associations across the state with their professional standards process, specifically relating to ethics violations and binding arbitration.
LAMONT BRELAND 2016 KAR President
Of our three pillars, advocacy, it has been said many times over, is what we do best and adds the most value to our members. You’ve probably heard it said “if you’re not at the table, you’re on the menu,” and that is true as it relates to the real estate industry. During any given legislative session in Kentucky, for instance, hundreds of bills will be filed. KAR’s Quick Response Team (QRT) meets via conference call at least weekly for an hour or more to receive updates from our lobbyists on these bills (usually 30 or so at any given time) that may have an effect, positive or negative, on our business. In addition, each Senator and Representative at both the state and federal levels have a State or Federal Political Coordinator (SPC or FPC) assigned to them. These are volunteer REALTORS® from their district that have a personal or professional relationship with the legislator and can keep them informed on the issues important to us and reasons why KAR either supports or opposes certain legislation. Not unlike the real estate business, advocacy is very much a relationship business and it’s critically important to our future as practitioners in the industry. KAR is sort of hidden between your local and national association (NAR), and we have been for the most part, a silent partner. The local and national associations are kind of like the industry’s engine, but KAR is the oil that keeps it running strong, smooth and for the long haul. So there it is - that’s WHY I spend my time volunteering. Because it’s important, it makes a difference and, truth be told, it can be a lot of fun. I’ve met some amazing “best friends forever” (BFF, last acronym, I promise) from around the state and the country. But we need your help. We need some new blood, new ideas, fresh energy to keep the Association running! So get involved, come to a meeting (try the Convention starting on September 19), sign up for a committee, make a donation to RPAC (if you want). Do something for your industry, you’ll be glad you did.
SPRING 2016 | Kentucky Realtor® | 5
TOOLS YOU CAN USE 9 neighborhood features that bring down home values Certain neighborhood features near a home could drag down a home’s price. To calculate which have the most impact, realtor.com® analyzed home prices and appreciation rates in ZIP codes of the 100 largest metro areas across the country where a specific so-called “drag-me-down facility” was present. They then calculated the potential discount by comparing the median home price of the ZIP codes with that facility with the median price for all homes in the same county. The following neighborhood features emerged as the ones that could potentially drag down home values by the greatest amounts: 1. Bad school: -22.2% (translation: home owners near a bad school received 22.2 percent less than an average home in the same county could get) 2. Strip club: -14.7% 3. High renter concentration: -13.8% 4. Homeless shelter: -12.7% 5. Cemetery: -12.3% 6. Funeral home: -6.5% 7. Power plant: -5.3% 8. Shooting range: -3.7% 9. Hospital: -3.2%
Get your Gmail inbox organized Google Apps for Work is a popular communications platform for many real estate companies as well as individual brokers and agents due to the plethora of add-ons, extensions, and tools. Get your Gmail inbox organized and stay on task with these free solutions: • Send From Gmail - Default to your Gmail account from Chrome • UglyEmail - Know which messages in your inbox are being tracked by the sender • Any.Do - Manage to-do lists online • StayFocusd - Great tool for time management, set up time-block restrictions on certain websites where you find yourself wasting hours • Checker Plus for Gmail - Lets you read or listen to new email messages without opening Gmail. • Pushbullet (Android only) - Allows you to text from your computer and also lets you make and receive calls, open and share files with your phone, and handle notifications you receive on your phone from your office computer.
Take the KAR Survey of the Month Each month, KAR is asking members to respond to a question about the real estate industry. The feedback received is used to gather insight on a topic trending in the industry. The information will be used to develop articles, create education and is shared in newsletters, social media and the magazine. To see the latest question, visit kar.com > members. 6 | kar.com
7 benefits of a home's outdoor space The Outdoor Power Equipment Institute (OPEI) shared seven reasons why it pays for owners to have an enjoyable backyard. While it's common today for backyard space to be used as an extension of a home's livable space, it’s also a benefit when it comes time to sell and offers many health benefits. 1. Children’s stress levels fall within minutes of seeing green spaces. Knowing and experiencing nature makes us generally happier, healthier people. 2. Getting dirty is good for you! Mycobacterium vaccae in soil mirrors the effect on neurons that Prozac provides. 3. Residing near living landscapes improves mental health. Research found that people moving to greener areas experiences an immediate improvement in mental health. 4. Children gain attention and working memory benefits when they are exposed to greenery. Exposure to natural settings may be widely effective in reducing attention deficit/hyperactivity disorder (ADHD) symptoms in children. 5. Walking or running in nature, rather than a concreteoriented, urban environment, resulted in decreased anxiety, rumination and negative affect, and produced cognitive benefits and increased working memory performance. Grass can be 31 degrees cooler than asphalt and 20 degrees cooler than bare soil thanks to the process called evapotranspiration. 6. Living landscapes help kids and pets be healthier. Playing outdoors increases fitness levels and builds healthy, active bodies. 7. Your lawn produces lots of oxygen - 50 square feet of lawn generates enough oxygen each day for a family of four - and reduces the code red effect since grass removes pollutants from the air we breathe.
Good schools can boost home values Home values can get a big increase from having a highly rated school nearby. According to the new ATTOM Data Solutions 2016 Schools and Housing Report, homes in ZIP codes with at least one good elementary school have values about 77 percent higher than in ZIP codes without highly ranked schools close by. Researchers looked at home values and price appreciation against 2015 average test scores in nearly 19,000 elementary schools across 4,435 ZIP codes. They considered a “good school” to be one that had an overall test score that was at least one-third above the state average. The research found that out of 1,661 ZIP codes with at least one good school, the average estimated home value was $427,402 – 77 percent more than the home value of $241,096 in 2,774 ZIP codes without any “good schools.” Home owners living near at least one good school have gained, on average, $74,716 in value since purchase — an average return on investment of 32 percent, the study found. On the other hand, home owners in ZIP codes without any good schools have gained, on average, $23,311 in value since their purchase, an average return on investment of 27.5 percent.
Facebook Live: the next big thing Facebook Live is one of the hottest growing facets of Facebook and is taking the world by storm! Here are 10 tips for getting started with Facebook Live (from Katie Lance - www. katielance.com/fblive/). Note: Once you are live, you can choose to save the live stream to your mobile device. You may choose to do this if you plan on repurposing the video and adding it to YouTube. The video will then stay on your profile (or wherever you choose to broadcast from) until you delete it. 1. It doesn’t have to be perfect. 2. You can go Live on your Facebook Personal Profile, Event, Group or Business Page. 3. Be prepared. 4. Authorize access to your camera phone and microphone. 5. Have an attention grabbing headline! 6. Tell people what is in it for them. 7. Introduce yourself. 8. The more you ‘go live’ the better you get. 9. Engage with the audience. 10. Don’t worry about how long your live broadcast is.
Online love for real estate According to research unveiled by Google, Americans spend an average of 55 minutes per online visit with real estate apps on their phones. Sixty-nine percent of respondents Google surveyed call “shopping for real estate fun” from their phone and online. In fact, Americans are so addicted to home shopping online that 64 percent say they keep checking out houses and home values even after they purchase a home. The Google study also finds that people start hunting on real estate sites three years before they buy on average. Also, only one in five (20%) of the people checking out homes on real estate apps and websites are actually in the current market to purchase a home, the study found.
TIP OF THE DAY If you use an iPhone, check out Gboard (or Slash for Android)
Speed up your iPhone on the quickness What happens when your iPhone’s quickness is jeopardized by a slow operating system? When, all of a sudden, your apps won’t open as fast as they should, or items won’t sync as quickly as you would like? Usually, the solution is by manually quitting each app, restarting the phone, or, in some cases, doing a hard reset of the phone. These methods may work, but they seem outdated compared to a little known trick that completely flushes your iPhones RAM. The first thing you need to do to speed up your iPhone, is to hold the power button until “Slide to Power Off” appears. But do not turn the power off. Instead, press and hold the Home button for a few seconds, until it takes you back to the Home screen. Voila! Your phone’s RAM has been cleared. This secret technique is easy, reliable and less timeconsuming than the aforementioned methods, and is guaranteed to have your phone operating like it has just been turned on, refreshed and quick. Note: when you double-tap the Home button after you perform this, the apps you were running before you flushed the RAM will still appear in the carousel, but when you click one, it will relaunch as if you were launching fresh.
Follow KAR on Facebook and Twitter KAR has posted its Twitter feed and Facebook page link on the home page of its website (kar.com) so members and consumers can follow all the things going on with the association. Keep up with all things KAR on a real time basis – legislative updates, industry news, business tips and much more! Or you can visit the pages directly: facebook. com/kentuckyrealtors or twitter.com/kyrealtors.
FALL 2016 | Kentucky Realtor® | 7
LEGAL UPDATE
Selling a Condo? You need documentation.
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efore selling a condominium unit (hereinafter referred to as “unit”), the seller and the listing agent should make sure they have all the documentation they need to complete the transaction. The Kentucky Revised Statutes mandate that the seller of a unit must furnish certain documents to the purchaser before a contract for sale is executed. These documents are listed in KRS 381.9203, which states, “a seller shall furnish to a purchaser or purchaser’s agent before the execution of any contract for sale of a unit,…a copy of the declaration,…a copy of the bylaws, and a certificate, current to the date of issuance and signed and 8 | kar.com
dated by the association’s manager or authorized agent…” The association referred to within the Statute, is the Condo Association in charge of managing the Condominium. The Certificate is the main focus of this article, as delay or failure to obtain the Certificate can have serious consequences to the sale of the unit, including allowing the purchaser to void the contract for sale. The Certificate contains a host of pertinent information that must be provided to the seller by the Association. That same statute provides that once a unit owner has requested the Certificate, the Association has ten days to provide this information.1 The Certificate must contain certain information, which is set out in KRS 381.9203. First, the Certificate must include a statement disclosing whether there is a right of first refusal or any other restraint that may affect the sale of the unit.2 The Certificate must also include the amount of the monthly common expense assessment, as well as the
amount of any outstanding assessments that are due, and if there are any other fees that may be assessed to the unit owners.3 There must also be disclosure of the capital expenditures anticipated by the Association, the amount of any reserves for capital expenditures, and if any portion of the reserve is designated for a specified project.4 The Certificate must also contain certain financial documents from the Association. These documents include the most current balance sheet, income and expense statement, operating budget, and the financial report prepared pursuant to KRS 381.9197.5 The Association must also disclose whether there are any unsatisfied judgments against it, the status of any pending suit in which the Association is a defendant, and the status of any pending suit in which it is a named party, if the amount in dispute is more than $10,000.00.6 The Association must further provide a statement describing the insurance coverage it maintains as well as a copy of the certificate of insurance that was issued to the Association.7 Lastly, the Association must disclose if any portion of the condominium is situated upon a leasehold estate and if so, provide a
statement specifying the remaining term and any provisions regarding extension or renewal of the term for the leasehold estate.8 The Association may charge a fee for preparing the Certificate, but KRS 381.9167 provides that the fee cannot be more than the lesser of $225.00 or 80% of the current monthly assessment fee. Therefore, the fee will depend upon the current monthly common expense assessment on the unit for sale, but the most the seller will pay for this Certificate is $225.00. Further, if the Certificate is merely an update from a previously requested Certificate from that same year, the Association may only charge a $50.00 fee for preparing the update.9 Although the Association has ten days to provide the information once requested, 10 the listing agent should urge the seller to request the Certificate as early in the selling process as practicable. Unfortunately, some Associations have not been diligently complying with requests for these Certificates. While, neither the seller nor listing agent is liable for the Association’s failure to provide the Certificate in a timely manner, this delay can still pose serious problems for the seller. 11 The listing agent must advise the seller that any contract for the
sale of a unit is voidable by a purchaser up until five days after the Certificate is provided to them.12 Therefore, even if the seller timely requests the Certificate, the Association’s delay may prove detrimental to the transaction. If the Certificate is not provided to the purchaser before a contract is executed, the purchaser may back out of the contract. The contract remains voidable by the purchaser up until five days after receiving the Certificate. Therefore, it is imperative to request the Certificate from the Association as soon as possible. Once a listing agent is contracted to sell a unit, they should immediately advise the seller to request this Certificate, if it has not already been requested. The Certificate must be obtained before entering into a contract with a purchaser to avoid the purchaser’s right to void the contract after receipt of the Certificate. Due diligence on the part of the seller and listing agent can help to avoid the detrimental consequences of delay or failure to obtain the Certificate. 1 KRS 381.9203(2) 2 KRS 381.9203(1)(a) 3 KRS 381.9203(1)(b)-(c) 4 KRS 381.9203(1) (d)-(e) 5 KRS 381.9203(1)(f )-(h) 6 KRS 381.9203(1)(i) 7 KRS 381.9203(1)(j) 8 KRS 381.9203(1)(k) 9 KRS 381.9167(1)(I)(1) 10 KRS 381.9203(2). 11 KRS 381.9203(3). 12 Id.
Jason Vaughn is a lawyer with Vaughn & Smith, PLLC in Louisville and serves as legal counsel to KAR. The attorneys at Vaughn & Smith, PLLC constantly monitor the real estate industry as a whole, as well as any and all changes in the law that may affect it. They have intimate knowledge of commercial and residential real estate transactions and can utilize this base knowledge when representing their client's interests. This discussion should not be viewed as legal advice. Please consult your attorney. FALL 2016 | Kentucky Realtor® | 9
How to create customers for life
BY SETH PRICE
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et’s be honest, there may be no such thing as a customer for life. As marketers and salespeople, we’re competing for attention with 250 million other websites many of which are offering the exact same products and services that we’ve claimed as our own specialties. Consumers are emboldened, empowered and fickle, choosing to spend more and more of their buyer’s journey online. In fact, right now, only 20 percent of today’s customer journey is happening in real life, making it harder to keep their attention and their loyalty. But that doesn’t mean you shouldn’t try. There’s huge value in focusing on your true fans. With the cost of acquiring a new customer coming in almost 500% more than it does to keep current ones, this strategy is probably the most effective thing you can do from a business and marketing perspective.
ZERO IN ON YOUR TRUE FANS Over the course of your professional life, you’ll work with a sea of customers, but amongst those will be a group who truly appreciate your skills, value your approach and genuinely enjoy working with you. These are your true fans. Rather than try to turn each and every client into a repeat customer or brand 10 | kar.com
advocate, focus on the individuals who rave about your products or services and happily recommend you to family and friends. How can you spot a true fan? Let’s say you are an artist or a musician. In those cases, “A true fan is defined as someone who will purchase anything and everything you produce. They will drive 200 miles to see you sing. They will buy the super deluxe re-issued, hi-res box set of your stuff even though they have the low-res version. They have a Google Alert set for your name. They bookmark the eBay page where your out-of-print editions show up. They come to your openings. They have you sign their copies. They buy the t-shirt, and the mug, and the hat.
They can’t wait till you issue your next work. They are true fans,” according to The Technium. If you’re not a rockstar, don’t fret, most businesses won’t be able to gain a groupie’s fanaticism, but the sentiment is the same. Be so good that your customers adore you. Start by focusing on the customers in your base. Then identify those willing brand advocates and intentionally cultivate and nurture your list of a 100, then 1,000, true fans. These true fans will become your promoters, cheerleaders and the number one source of all your referrals. But how will you keep in touch with them? Read on.
CREATE A COMMUNITY FOR THE FANS, NOT FOR YOU Once you’ve identified your 1,000 true fans (or have begun the process), you’ll need to think about how you can create a true fan community. This may seem easy - put together an email list, start a private Facebook group - but nurturing a group of this size does take time and intention. Writer Jeff Goins says, “If you want to reach other humans, act like one. Simple, right? Hardly. A lot of people turn into robots when they get on the Internet or step into the spotlight. Either they become complete jerks or turn into formal ambassadors of snobbery. You can be different - talk like a real person, be accessible and show your scars (don’t be afraid to be a little vulnerable).” In addition to being authentic and reachable, it’s also critical to ask your fans what they want. While you are working with them to market your business, at the core, it should be about what they get from the relationship. Actually poll your best customers to ask them what they like and what they can’t stand. Ask how and when they prefer to be contacted. Find out what information is most valuable to them. Goins advises, “When you make your platform about other people, they’ll make it about you.”
TURN FANS INTO FRIENDS So you’ve identified your 1,000 true fans and you’re working hard to create a community they love belonging to, but how can you take that true fan and bring them closer to being a customer for life? Well, start by treating them less like a fan and more like a friend. In a piece for Duct Tape Marketing, Rachel Daley explains, “Your customers are your friends. Okay, maybe not exactly, but this is what I mean: Friendships take work before, during, and after you
become friends. Customer relationships take work before, during, and after a sale.” With that in mind, Daley says there are several things you can do to show your clients the same consideration you’d show a friend: • Keep in touch • Show gratitude • Go out of your way for them • Know them on a deeper level • Respect them as human beings In 2016 there are more ways to keep in touch than ever. Acknowledge major life moments they share on social media, invite them to exclusive events, send thoughtful gifts and snail mail notes for special occasions. Make them the hero of your story. And always respect their feedback and requests. When you start acting like a friend, you’ll get one (or 1,000) in return.
TURN FRIENDS INTO LEAD GENERATORS The power of the 1,000 true fans, who are now friends, is when they become your primary source of lead generation. Think about it. When a company, service or individual person is recommended to you by a family member or a friend, you value that recommendation more, right?
motivated prospect arrive in your office than someone sent there by a raving fan.” If your 1,000 true fans are willing to help promote your business, how can you best leverage that goodwill? Lewis offers a few expert tips: • Create a sheet with your core value proposition and a handful of example clients and results • Provide instructions on how to go on Google, Yelp (or any industry-specific review site) to post a review • Let your tribe know you cherish their referrals and will treat them like gold If you really want to kick it up a notch, invite your true fans to participate in the content you create. Film their testimonials, write a profile on what makes them special, share their story on your website, highlight them on social. If you give your true fans a reason to take time out of their day to help you, they will continue to do so. When you prioritize making them look good, it shows you value their time, their friendship and their endorsement.
CUSTOMERS FOR LIFE
Turning your existing customers into megaphones for your business not only makes sense, it’s more profitable. On average, loyal customers are worth 10x as much as their first purchase. In fact, the average repeat customer spends 67% more in their 31st - 36th month of their relationship with a business than in months 0-6.
Creating customers for life takes work. It requires you as a business owner or salesperson to embrace a customerfirst mindset and prioritize customer satisfaction above short-term gains. By focusing on your most valuable customers to nurture those relationships actively, you’re making a commitment to go above and beyond a simple “hello” or “happy birthday” on Facebook, and really thinking about what matters to them and how to deliver on those expectations.
It’s undeniable that satisfied customers are your best resource for uncovering new leads. In a column for Forbes, Kern Lewis explains, “You cannot have a more
If you are able to focus, be intentional, create a community and make your tribe the hero of your story, your customers will surely be yours for life. n
Seth Price is the keynote speaker at the 2016 KAR Convention & Expo on September 19-22 (register now at www.kar.com). He is the Chief Instigator @Placester, marketing speaker & host of the Craft of Marketing and Marketing Genius podcasts. He is a 20+ year content and digital marketer, a personal branding believer and social influencer. He helps businesses make digital content that inspires people to act. Seth is a perpetual explorer, an aspiring chef for friends and family, a former restauranteur, a gardener and martial arts junkie. He has been called a “gift to the industry” by Brad Inman of Inman News. Follow Seth Price on Twitter: www. twitter.com/sethprice FALL 2016 | Kentucky Realtor® | 11
Communication with an appraiser
versus
BY LARRY DISNEY
EXECUTIVE DIRECTOR, KENTUCKY REAL ESTATE APPRAISERS BOARD
“I was told that I cannot communicate with the appraiser who appraised a residential property for a mortgage loan, is that correct?” This is a question frequently received at the Kentucky Real Estate Appraisers Board office. Although the short answer for the above question is NO (because you CAN communicate with the appraiser), a reason for the confusion is due in part to the following federal law.
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In an effort to ensure that a lending crisis, similar to that of 2008, never happens again, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010. Language within the act includes prohibition of “any attempted violation of appraisal independence by attempting a bribe, intimidation of a person, appraisal management company, firm, or other entity conducting or involved in an appraisal, attempt to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to be based on any factor other than the independent judgment of the appraiser.” While the language prohibited the above listed exploitations, it also included the following recognition that communication between real estate professionals and other parties is not only REASONABLE but often ESSENTIAL, “the requirements shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, consumer, or any other person with an interest in a real estate transaction from asking an appraiser to undertake one or more of the following:” “(1) Consider additional, appropriate property information,
including the consideration of additional comparable properties to make or support an appraisal.” “(2) Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.” “(3) Correct errors in the appraisal report.” Recognizing the need for Kentucky licensed/certified appraisers to communicate with others, when considered necessary, the board added the following language in Kentucky administrative regulation 201 KAR 30:030: “A registrant shall not prohibit communication between a Kentucky licensed or certified real property appraiser and any person from whom the appraiser believes the information is relevant in the performance of an appraisal assignment.” (Registrant - Appraisal Management Company registered by the board to do business in Kentucky.) In an effort to clarify the above exceptions for real estate agents and brokers, the following MYTHS versus FACTS have been published by The Appraisal Foundation, based in Washington, DC and Authorized by Congress as the Source of Appraisal Standards and Appraiser Qualifications (more information can be found at www.appraisalfoundation.org):
MYTH — Real estate brokers are prohibited from communicating with appraisers. FACT — Brokers are permitted to communicate with an appraiser and to provide them with additional information as long as the communication is not intended to unduly influence the outcome of the appraisal. The exchange of relevant information – including terms of the sale, relevant sales of other properties, and home improvements – can help an appraiser develop a more credible opinion of value.
MYTH — Nothing can be done if a broker has concerns or questions regarding a completed appraisal. FACT — If there are questions or concerns with an appraisal, there are concrete steps brokers can take through the lender, like submit additional comps for the appraiser to consider, request the appraiser correct errors in the appraisal report and ask the appraiser to provide further detail to explain his/her conclusion.
MYTH — Appraisers request copies of the purchase agreement from real estate brokers and agents simply so they will know how much to appraise the property for. FACT — Appraisers are required to review the purchase agreement (if available during the ordinary course of business) to fully understand the terms of the transaction. Appraisers don’t simply look at a pending sale price to try to “justify” the transaction. They perform research and analyses to provide their own opinion of sale.
The above information is intended to provide clarity in the form of accurate information for an often discussed misunderstanding. Should additional questions arise, please contact the Kentucky Real Estate Appraisers Board at 859-623-1658. n
SPRING 2016 | Kentucky Realtor® | 13
LEGISLATIVE UPDATE State Update: Legislative Agenda: Over the summer, we reviewed opportunities from the previous legislative session, perennial legislative issues important to the real estate industry and started looking at the horizon for new opportunities. As KAR members, you are the boots on the ground and we welcome and strongly encourage all of you to send us issues that need to be addressed at the state level.
82.3%
The number of REALTORS® currently registered to vote. If you’re not registered to vote, you cannot vote for candidates who support REALTOR® issues or in favor of public policies that promote home ownership. In Kentucky, 89.15% of REALTORS® are currently registered to vote. If you know that you ARE NOT REGISTERED, and would like to REGISTER TO VOTE, it has never been easier. Just go to www.RealtorVotes.com and register. It’s that simple.
In preparation for the upcoming Legislative Session, KAR will soon roll out our Legislative Agenda to all members and address the agenda in meetings across the state to educate state legislators about the key priorities and important issues to the real estate industry. We greatly appreciate the work of our State Political Coordinators who utilize their strong relationships with legislators communicating our agenda of promoting homeownership, protecting private property rights and encouraging economic growth. Stay up to date on our advocacy efforts by checking out the website at www.kar.com > Advocacy.
Election date is November 8 The Kentucky General Elections for statewide offices will take place on Tuesday, November 8 with polls open from 6:00am until 6:00pm local time. For voting information, sample ballots and to find out where you vote visit elect.ky.gov. The last day to register to vote in the general election is October 11. Get involved, get out the vote and make sure the REALTOR® voice is heard on Election Day.
Governor Bevin, KAR CEO Steve Stevens and KAR President Lamont Breland snapped a selfie after the Governor addressed attendees at the Kentucky Society of Association Executives breakfast in Frankfort.
Kentucky’s Red Tape Reduction Initiative backed by KAR Governor Bevin recently announced the Red Tape Reduction Initiative, which will cut through the red tape of excessive and complex regulatory burdens that are a hardship for many business owners and will reduce the amount of government bureaucracy affecting Kentucky businesses, thus making the Commonwealth more employee-friendly. The governor’s office projects that more than 4,500 business regulations will be evaluated as part of the initiative, and Bevin has directed cabinet secretaries to comb through all the business regulations on the books to weed out outdated or inefficient requirements. Bevin has also called on state employees, businesses and individuals across the state to assist his administration by identifying what they consider burdensome regulations. A website, www.RedTapeReduction.com, has been created to collect feedback and ideas directly from the public and the state’s business communities. The initiative has the support of many business organizations throughout the state, including the Kentucky Association of REALTORS®. KAR wants to encourage members from across the state to provide assistance to this initiative as burdensome and unnecessary regulations can hinder economic development and decrease home sales across a region. If you have experience dealing with a regulation that proved to be burdensome, share it on the KAR blog found on the home page of the website, or better yet, visit the Red Tape Reduction website and report it using the online submission form.
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Federal Update: HR 3700 – the Condo Bill – signed into law In July, H.R. 3700 – the “Housing Opportunity Through Modernization Act” – was signed into law. NAR hailed the development as a “significant step” in eliminating barriers to safe, affordable mortgage credit for condos. NAR has long been an advocate of the bill, testifying before Congress and lobbying for its passage. Additionally, nearly 140,000 REALTORS® across the country voiced their support for the legislation during the NAR call for action. The bill was approved first by the U.S. House and later by the Senate. The bill will make Federal Housing Administration’s recertification process “substantially less burdensome” and will lower FHA’s owner-occupancy requirement from 50 percent to 35 percent while also requiring the FHA to replace an existing policy on transfer fees with a less-restrictive model that has already been in place at the Federal Housing Finance Agency. This legislation will help offer to relief to well-qualified potential home buyers who have been facing tight housing inventories, rising home prices, and strict mortgage credit underwriting guidelines. “Condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income home buyers,” Salomone said after the Senate approved the bill. “Overly burdensome restrictions on condo financing have for too long put that option out of reach for many creditworthy borrowers. This legislation meets those restrictions head on, putting the dream of home ownership back in reach for more Americans.”
30644
The number to text the word REALTOR to 30644 to sign up for the REALTOR® Party Mobile Alerts. This texting platform, offers REALTORS® a way to stay connected directly from their cell phone or tablet. Get information on finding your polling locations, election and primary voting day reminders and participate in calls for action. Of the 9,615 members of KAR, goal is 13% at 1,250 participants. Currently, KY has 1,034 participants at 10.75% so we need another 216 to take this step.
This legislation solves a number of concerns regarding FHA’s condo rules: • Reduces the FHA condo owner occupancy ratio to 35%, unless FHA takes alternative action within 90 days. • Directs FHA to streamline the condo re-certification process. • Provides more flexibility for mixed use buildings. • Mirrors the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending. • Provides permanent authority for direct endorsement for approved lenders to approve Rural Housing Service (RHS) loans. • Makes reforms to federally assisted housing programs to streamline the programs.
‘Know Before You Owe’ helps agents and consumers Since the October 2015 implementation of the Consumer Finance Protection Bureau’s ‘Know Before You Owe’ mortgage initiative, REALTORS® have raised red flags over challenges in gaining access to what’s known as the mortgage “closing disclosure” form, or CD. The CD is delivered to homebuyers in advance of their closing and contains important financial information related to their purchase. Unfortunately, many lenders have chosen to withhold this document from real estate agents since ‘Know Before You Owe’ went into effect, despite a longstanding tradition of sharing similar information.
Kentucky delegation met with Congressman Hal Rogers in his Somerset office to discuss national real estate issues that impact Kentucky home buyers and sellers.
Earlier this year, the CFPB announced that it was considering changes to ‘Know Before You Owe’ - also known as the TILARESPA Integrated Disclosure, or TRID - including a clarification FALL 2016 | Kentucky Realtor® | 15
LEGISLATIVE UPDATE of the rules regarding sharing the CD. In July, the CFPB made good on that promise when it announced a proposed rule on TRID, and stated in their announcement that “the Bureau understands that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents.” The National Association of REALTORS® believes this announcement marks significant progress for consumers, as well as for its members. Giving REALTORS® access to the CD would strengthen consumers’ understanding of their mortgage and home purchase by helping agents continue to provide expert advice to their clients. “Realtors® have reported challenges gaining access to the Closing Disclosure ever since TRID went into effect, despite a long history of access to the substantively similar HUD-1 that is replaced.” Stated NAR President Tom Salomone. “The CFPB acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers and their real estate agents.
NAR guidance on DOL’s new overtime rule NAR’s Legal Affairs Department has developed new guidance to assist with members’ businesses that may be affected by the Department of Labor’s (DOL) new overtime rule (visit www.realtor.org and search “overtime” for the document). Effective December 1, 2016, DOL revised the requirements under the Fair Labor Standards Act (FLSA) regarding the minimum salary threshold for employees to be considered exempt from overtime. The final rule raises the annual salary threshold to $47,476, up significantly from $23,660, and will increase automatically every three years, starting in 2020. Unless specifically exempted, workers are guaranteed time-and-a-half pay if they work more than 40 hours in any given week if they make less than $47,476, including up to 10 percent of the standard salary requirement with nondiscretionary bonuses, incentive payments, and commissions, provided these forms of compensation are paid at least quarterly.
FAA finalizes rule for commercial drones Using a drone to capture listing photos and videos or inspect properties is about to become significantly easier now that the federal government has finalized its long-awaited regulations over the commercial use of unmanned aerial systems. The final rule issued in June by the Federal Aviation Administration paves the way for people who obtain a remote pilot certificate to operate drones that weigh less than 55 pounds, as long as the aircraft remains within visual lineof-sight. Earning the certificate will involve passing a test of aeronautical knowledge at an FAA-approved testing center — 18 | kar.com
but it will not require applicants to have formal flight training. The FAA has, until now, required people wishing to operate drones commercially to obtain a so-called Section 333 waiver, and the agency has limited those waivers to people with a pilot’s license. That constraint has stood in the way of real estate professionals and others wishing to use drones in their businesses, despite the growing availability and decreasing cost of lightweight, remote-controlled aircraft equipped with cameras. While the new FAA regulations, which took effect in August, eliminate the requirement that drone operators hold a pilot’s license, they contain a host of restrictions intended to protect people on the ground. Beyond requiring the operator or another visual observer to be able to see their drone while it is in operation, the regulations prohibit flying inside buildings or flying over people who are not connected with the flight. In addition, drone flights will be permitted only during daylight or twilight hours, drones must not fly faster than 100 miles per hour, and operators must be at least 16 years old. For more information about drones and the specific regulations, visit www.realtor.org and search for drones.
NAR’s Corporate Ally Program for Brokers The Corporate Ally Program (CAP) has launched two new categories of investor opportunities in 2016 – real estate brokerages and real estate technology business partners. NAR Corporate Investor Council Vice Chair, Jim Imhoff, kicked off the real estate brokerage soft money campaign in March with a bang, securing $160,000 in investments from some of the nation’s largest real estate brokerages. In partnership with NAR, 8 state REALTOR® Associations have recently launched their own CAP broker soft money fundraising campaigns. CAP soft dollar investments, made by corporate entities, can be used for
independent expenditures to help elect REALTOR® Party champions to public office, as well as to help advance issues members care about at all levels of government. For more information on how to become a Corporate Ally Investor, please contact Paula Martino, Director of Corporate Fundraising, at 202-383-1156 or pmartino@realtors.org.
RPAC Hall of Fame The REALTORS® Political Action Committee (RPAC), a national bipartisan grassroots-based political advocacy organization, added four Kentucky brokers to its Hall of Fame (HOF). The Hall of Fame recognizes dedicated members whose RPAC investments total an aggregate of at least $25,000. Members are inducted at the NAR Legislative meeting in May in Washington, DC. RPAC is a voluntary political action committee whose membership consists of REALTORS® and affiliates interested in actively and effectively protecting the real estate industry and the dream of homeownership by participating in government affairs at the local, state and federal levels. Kentucky Honorees: $25,000 level
Jerry McMahan and Ann McDonald
RPAC Report: as of August 2 2016 Current: NAR Funds: $60,420 Major Investors: 35 President’s Circle: 12 Participation Rate: 49% 2016 Goals: based on 9,549 members Triple Crown: NAR Funds: $44,379 Major Investors: 78 President’s Circle: 8 Participation Rate: 37%
$50,000 level
John Weikel
Charlie Murphy
HUD Secretary Julian Castro attended and spoke at the Wendell Ford Dinner in Louisville. He took a few minutes to meet with Steve Stevens, KAR CEO, and Lamont Breland, KAR President.
SPRING 2016 | Kentucky Realtor® | 19
Get Your Ducks in a Row: 5 Tips for a Better Policies & Procedures Manual BY TRISTA CURZYDLO, J.D.
A
few years ago, I was approached by a client to assist them in reviewing their policies and procedures manual. The brokerage had recently merged with another smaller brokerage and had new leadership at the helm. It was, as the broker/owner said, “time to get our ducks in a row.� 20 | kar.com
After blowing the dust off the policies and procedures manual that had been sitting on a shelf over their copier for a few years, I began to read an extremely wellwritten manual. As I started on the third page of disclaimers, I realized the reason I felt the manual was so well-written was that it had been drafted by an attorney to be enjoyed by other attorneys. This is a common mistake made by many brokers and it’s one of five missteps I identified for this client: 1.) Write your policies and procedures manual in a language everyone can
understand. 2.) Keep your policies and procedures manual current by doing annual reviews and revisions. 3.) Retain flexibility for management within the policies and procedures manual. 4.) Provide adequate training on the policies and procedures of the manual and encourage questions. 5.) Enforce the policies and procedures described in the manual.
It is important to work with the legal counsel of the brokerage or a qualified human relations attorney in drafting the manual, but it is equally important that the manual reflect how you want the office to operate. Leave out the heretofore, whereas and therefore clauses and focus on writing a manual that anyone could read and understand. Avoid turning to the internet for a boilerplate policy and procedures manual: every state has its own set of laws regulating the real estate industry and your manual should reflect this. A manual that was not drafted with your individual brokerage in mind may also have unexpected legal ramifications, such as committing you to providing benefits you hadn’t planned on providing or treating some of your staff as employees when you view them as independent contractors. A one-size-fits-all manual will also fail to incorporate the culture of the brokerage. The policies and procedures manual sets the tone for the operation of the brokerage and it’s vital that its “personality” is a reflection of the brokerage’s culture. The brokerage I mentioned above was extremely active in several non-profit housing related organizations and yet the policies and procedures manual didn’t include any mention of their philanthropic endeavors. Part of the culture of the brokerage was community involvement and this should have been highlighted.
may not have an adequate section on the use of social media by agents or staff. A broker can’t shy away from new technology or new trends in the real estate industry, the policies of the brokerage need to address social media or whatever the new big thing is. A well-drafted policies and procedures manual will make it clear that the broker is the ultimate decision maker and will include the appropriate flexibility for management of the business. I consider this the “may vs. shall conundrum.” When the manual says you shall do something, you’re committed to that course of action. When the manual states the broker may do something, it provides the broker with flexibility to determine the course of action. When drafting each section of the manual, ask yourself if that section calls for flexibility in management or for clear cut expectations of behavior. If you’ve ever found yourself in a conversation where someone is saying “But, my understanding is that…”, there is most likely a misunderstanding between the parties. The most effective way to
avoid misunderstanding in your brokerage is to spend time training your agents, management team and office staff on the policies and procedures described in the manual. You probably already have a section in your independent contractor agreement that calls for the contractor to agree he or she has received and read the manual; take this a step further and ensure the manual has been received, read, and understood. A policies and procedures manual can only be effective if everyone understands what the manual says. To be effective, a policies and procedures manual must be enforced. Agents and office staff talk and frequently they are talking about the broker. Often those conversations are quick to focus on how the treatment one person received was unique from the treatment of others. Consistently referencing a policies and procedures manual allows a broker or manager to approach situations in a fair and rational manner. n
The laws regulating the real estate industry are in a constant state of change - brokers have a responsibility to themselves, their agents, and their clients to remain abreast of these changes. Your REALTOR® association has a phenomenal staff devoted to tracking the actions taken at the local, state and national level that impact your practice. Take advantage of this resource and build on the information they provide to revise your policies and procedures manual on an annual or asneeded basis. For example, a policies and procedures manual that was drafted two years ago
Trista Curzydlo, JD, is a graduate of Washburn University, School of Law and will be a featured speaker at the 2016 KAR Convention & Expo. Her extensive legal experience includes serving as Assistant Legal Counsel to a governor and as an Assistant District Attorney assigned to the Consumer Fraud division. Trista is the former Government Affairs Director and Legal Counsel for the Wichita Area Association of REALTORS® and the South Central Kansas MLS. Trista now speaks nationally on topics related to real estate law and ethics. This article is reprinted by permission of Trista Curzydlo and C4 Consulting, LLC.
FALL 2016 | Kentucky Realtor® | 21
LOCAL ASSOCIATION NEWS Local boards/associations are encouraged to submit information for this section. Pictures must be at least 300dpi. Send all association news to hcooper@kar.com.
Heart of Kentucky Association HKAR, along with WQXE radio station, co-sponsored the 21st Children’s Fair in June at Freeman Lake. With over 30 local businesses and groups participating, it was estimated there were over 800 children in attendance. All giveaways were free, along with having lots of games, a magician, balloons and a mascot contest. HKAR set-up a tent and provided face painting while spreading the message about the importance of using a REALTOR® when buying or selling a home. In addition, HKAR held a Derby Hat contest for RPAC during the May membership meeting. The winner, Lydia Drexler, received a restaurant gift card and RPAC raised $2,085 in conjunction with an auction held at the same time. Also attending the meeting were several local officials.
Northern Kentucky Association
Murray Calloway County Board The Murray Calloway County Board was excited to get in involved in a project to enhance the Amphitheater Performing Arts Pavilion. The effort was to construct a permanent structure covering the stage area of the amphitheater and placing 4 permanent benches at the facility for visitors to sit and enjoy the park and live events. The Board sought and was awarded a Placemaking Grant through NAR, in addition to $1,500 of additional Board funds, to help the efforts of the Rotary Club of Murray and the Murray Parks System. Government Affairs Chair Brian Stedelin spearheaded the Board’s part of the project and KAR’s Advocacy Coordinator Leslie Wilson helped facilitate the Placemaking Grant proposal.
Old Kentucky Home Board
The NKAR/NKMLS debuted the Real Agent Guard safety app they are now providing to all their members becoming the first Association/ MLS in the country to do so. The response was overwhelmingly positive and appreciative from the membership as safety is one of their biggest concerns. In addition, the Florence Police Department attended the debut and applauded the Association for putting safety as a top priority. The app is a mobile-enabled personal security service that provides real-time monitoring of agents for the purpose of providing both monitoring and deterrence from potential personal attacks.
Greater Louisville Association GLAR has developed at new 11-part video series for its members. These short 2-3 minute videos are not only funny, but members learn something too. They cover topics the NAR Home Buyers and Sellers Profile reported as the top things that buyers and sellers want from their agents. Topics included in this series are Agent to Agent Communications, Understanding the Process, Professional Cooperation, Client Communication, Marketing, Negotiations and more. 22 | kar.com
After celebrating our 50th year as a Board in 2015 with a big community cookout, OKH decided it was such a big hit with the public that they wanted to make it an annual event. So in June, they held the 2nd annual OKH Board Appreciation Cookout. With the help of leadership, especially Board President Dennis Rust, and the excellent cooperation of all our members, the cookout was, once again, a huge success! Good music, good food, good weather and hundreds in attendance showed the Board this was a great way to express appreciation to Affiliates, member clients and the community. Since 2014, OKH has embraced access and understanding of the REALTORS® Property Resource (RPR) and its applications and offers that to all members. To that end, Steve Bagby, a member of the Board, became a certified instructor for RPR as well as a trainer for Transaction Desk and Authentisign. Since his certification, they have launched a campaign to get every single member of our board set up to use RPR by holding classes at individual offices as well as several classes at the board office. In addition, the Board now holds Tech Tuesdays at the Board office to offer business resources for members. Most recently, OKH held an RPAC fundraiser/networking event in Bardstown last week at the 3rd Street Tap House. The gathering consisted of about 25 committed REALTORS® that came together to raise funds to help elect government leaders who will work to protect the rights and promote the interests of homeowners on the local, state and national level. The casual setting allowed for very interesting and cordial political discussions.
Several Kentucky cities named “most playful” In its 10th year, KaBOOM!, a national non-profit dedicated to bringing balanced and active play into the daily lives of all kids, announced the 2016 Playful City USA communities. This year, 257 communities from across the country were recognized for pledging to integrate play as a solution to the challenges facing their communities. Kentucky saw nine cities named to the list with Murray being named for its ninth year in a row, the most for any Kentucky city. The remaining cities were Beaver Dam, Henderson, Hopkinsville, Murray, Owensboro, Pikeville, Simpsonville, Tompkinsville and Williamstown.
Somerset Lake Cumberland SLC Association held its Annual Community Fundraiser Auction in May. A great crowd attended which resulted in the auction raising $10,200. This year, the Association gave the local Relay for Life $5,100 and Hospice of Lake Cumberland received $5100. In August, the Association continued its community outreach by hosting over 100 local law enforcement officers for a BBQ luncheon to show appreciation and that Blue Lives Matter to the Association. The Association, and auctioneer Rick Barker, also raised an additional $1,000 for the 23rd Annual Master Musicians Festival by auctioning a commissioned festival painting.
Kentucky a “best state” for homeowners Owning a home is considered part of living the American Dream and, according to a 2016 study by SmartAsset, Kentucky ranks 14th in the country for homeowners. SmartAsset ranked the best states in America for homeowners with consideration to nine different factors. All 50 states were ranked based on factors including foreclosure rates, burglary rates and property tax rates. They also looked at the median listing price per square foot, the annual change in home prices (per square foot), home affordability and the annual cost of property taxes and homeowners insurance.
Two Kentucky cities named as “best run” WalletHub’s analysts compared 150 of the largest cities according to how well they are managed by their leaders. In order to make such a comparison, we examined each city’s performance on six key indicators, including financial stability, education, health, safety, economy as well as infrastructure and pollution. They combined these categories to construct an “Overall City Services” ranking against which they measured the cities’ total per-capita budgets in order to reveal their budgeting efficiency. Lexington came in on the list with an overall ranking of 6th and Louisville came in at 26th.
2015 KAR Good Neighbor Award Winner, Bobby Hunton, with the REALTOR® Association of Southern Kentucky, continued this year with the Stuff the Bus project that was the focus of his award. In 2015, the project received 15.5 tons of school supplies, filling five buses. This year, in July, the project took in 16.5 tons of supplies and filled six buses. According to Hunton, the $500 that was given by KAR as part of the award went a long way in purchasing supplies for the kids in the local area.
USA Today names Lexington to bucket list Many of the country’s most recognizable monuments and landmarks can be easily visited – and enjoyed without crowds – says photographer Blaine Harrington III, who has worked around the world. Harrington, who just opened an exhibit at The Wildlife Experience museum in Parker, CO, shares some of his favorite monuments and landmarks with USA Today and here is what was said about Lexington on the list of the “10 Best U.S. Monuments and Landmarks:” While the region’s famed bluegrass isn’t exactly blue, it still makes for unforgettable scenery, Harrington says. “In spring it’s very green and you contrast that with the horses in the fields, and the fence lines going hill and dale. It’s beautiful country and (has) such a deep heritage.” The limestone-rich soil is said to be responsible for the distinctive taste of Kentucky bourbon and for the speed and strength of its thoroughbred racehorses. You can see farms by driving country roads outside the city. Guided tours are also available. Bucket list tip: Time a spring or fall visit to see thoroughbreds in action at Keeneland Race Course, a National Historic Landmark.
Bowling Green area invests in local economy SmartAsset announced that Warren County ranked No. 1 in Kentucky for its annual national study on counties receiving the greatest amount of investment in their local economies (up from No. 4 in 2015). The company ranked performance across four categories: business establishment growth, GDP growth, new building permits and municipal bond investment. Warren County ranked second in the new building permits category - up from ninth in 2015. GDP growth remained steady for Warren County, coming in at No. 5 in the state again this year. Nationally, Warren County ranked in the top three percent (3%) for counties receiving the greatest amount of investment in their local economies.
Kentucky scores big with new projects and job creation Area Development’s annual Gold and Silver Shovel Awards recognize states for their achievements in attracting high-value investment projects that will create a significant number of new jobs in their communities. Kentucky was given a Silver Shovel in the 11th annual awards for the three to five million population category. Are Development collected information from all 50 states about their top-10 job-creation and investment projects initiated in 2015 (only those projects that actually had monies invested, “broke ground,” began an expansion, started new hiring, etc. were considered). SPRING 2016 | Kentucky Realtor® | 23
BY THE NUMBERS A study shows the average premium added to the sales price for homes with solar panels. That represents 3.74 percent more than the average sales price, according to the study from The Appraisal Journal, a professional publication for appraisers.
According to eMarketer, people are spending way more time watching digital video than ever before. The time adults spend watching digital video each day has increased from 21 minutes in 2011 to one hour and 16 minutes in 2015.
NAHB’s Housing Preferences of Boomer Generation study found that 75 percent of baby boomers and 88 percent of seniors say they want a single story, one-floor living home. However, fewer than half of millennials, 35 percent, and Generation X, 49 percent, say they prefer a one-story home. Overall, a greater number of two or more story homes are completed than one-story homes – 58 percent compared to 42 percent.
The Quicken Loans National Home Price Perception Index shows the average appraisal was 1.69 percent lower than home owners’ estimated value.
$14,329
25% 1 hour and 16 minutes
63.1% One vs. Two Story Homes
$1,874
1.69% 88%
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One in four, or about 25 percent, of people ages 25 to 29 are living with a parent, up from 18 percent 10 years ago, according to the Pew Research Center. What's more, 13 percent of Americans ages 30 to 34 are living with their parents, up from 9 percent a decade ago. Young adults aged 18 to 34 are more likely to live with a parent than in any other arrangement for the first time since 1880. In fact, around 50 percent of adults ages 18 to 24 live with their parents, up from 46 percent a decade ago.
As of the second quarter of this year, the percent of households that were homeowners. The homeownership rate has fallen to a 50-year low.
Bankrate surveyed up to 10 lenders in 50 states and Washington, D.C., in June to gather loan estimates for a $200,000 mortgage for a singlefamily home with a 20 percent down payment. Kentucky was one of the lowest states in the country with closing cost averaging $1,874 – the national average was $2,128.
The average user spends 88% more time on sites with video, according to what Kristi Kennelly of realtor. com shared with attendees at the Inman Connect SF event.
HOUSING STATS
Homes keep selling and records are broken The first half of 2016 has been good to the housing market in Kentucky. Total sales reached 24,753 for the first six months of the year, compared to 22,883 in 2015, an increase of 8.2 percent. Median home prices rose slightly to $120,833, and increase of 1.9 percent over the $118,538 that was tallied in the first half of 2015. In the latest monthly figures, June saw a record 5,390 homes sold, the most in any month. Compared to last year’s June tally of 5,356, the monthly record prior to this year, sales were up a statistically insignificant .06 percent. Median home prices in June recorded the first month over month drop since 2013, going from $131,686 in 2015 to $127,538 this year, a 3.1 percent decline. Total volume for the month of June reached $1,003,168,481, the first time in Kentucky history that over a billion dollars of real estate was sold in a single month. Total volume year to date is $4.2 billion putting the state on track to hit the $8 billion threshold which would make it the first time in history to accomplish that as well.
“The market is still very active as reflected in the number of homes being sold,” stated Lamont Breland, 2016 president of KAR. “And they are selling quickly, with days on market being just 122 for June 2016. That’s the fastest pace since back in 2007.” The national median home price rose 4.8 percent in June to $247,700. June’s price increase marks the 52nd consecutive month of year-over-year gains and surpasses May’s peak median sales price of $238,900. Comparatively, Kentucky’s median price of $127,538 demonstrates just how affordable the real estate market is in the state. Sitting at just over 51 percent of the national median price, and with interest rates continuing to be floating near all-time lows and the job market sustaining growth, consumers are hungry for inventory. “We are still hearing reports from members all around Kentucky that we have an imbalance in the supply and demand of properties,” said Breland. “Even with the low supply, homes continue to sell with Kentucky sitting in a seller’s market with inventory at a low 4.1 months. More homes to sell would make it a more comfortable market for buyers and consumers and, ultimately, help with the inventory shortage problem that is being faced in the Commonwealth and across the country.”
To view housing statistics for the state, visit housingstats.kar.com. 1ST HALF 2016 VS 1ST HALF 2015 Board/Association
# Sold 2015
# Sold 2016
Sold %
Median Price 2015
Median Price 2016 Median Price %
Region One Greater Owensboro Association 656 730 11% 113533 124775 Henderson-Audubon Board 191 214 12% 111856 117792 Hopkinsville-Christian Board 209 214 2% 119404 117133 Kentucky-Barkley Lakes Board 169 212 25% 104175 97392 Madisonville-Hopkins Board 220 233 6% 102213 102133 Mayfield-Graves Board 134 151 13% 76808 87035 Murray Calloway County Board 182 162 -11% 136125 126667 Paducah Board 402 369 -8% 123742 129517
10% 5% -2% -7% -0% 13% -7% 5%
Region Two Central Kentucky Association 261 288 10% 102542 105717 Heart of Kentucky Association 985 1172 19% 130458 132867 Old Kentucky Home Board 284 300 6% 114925 126667 REALTOR® Association of SKY 1060 1138 7% 134433 139904 South Central Kentucky Association 146 186 27% 108283 116925
3% 2% 10% 4% 8%
Region Three Greater Louisville Association 7485 8134 9% 151875 156063
3%
Region Four Lexington Bluegrass Association 5555 6234 12% 143650 152150
6%
Region Five Northern Kentucky Association 2820 3212 14% 136917 153442
12%
Region Six Ashland Area Board 494 446 -10% 96375 87258 Eastern Kentucky Association 249 222 -11% 102542 105717 Madison County Board 564 567 1% 128325 138892 Pennyrile Board 157 138 -12% 107542 111879 Somerset-Lake Cumberland Board 387 446 15% 104810 100375
-9% 3% 8% 4% -4%
Totals
2%
22610 24768 10% 118538
120836
SPRING 2016 | Kentucky Realtor® | 25
How to really reach today’s real estate consumer
S
ince the inception of the industry, real estate practitioners have relied and built their business on a collection of marketing techniques that focused on oneto-one relationship building. Some of these techniques included phone blitzing, canvassing an area and knocking on doors, direct mail and print advertising most of which are defined as mass marketing, which means one message broadcasted to a large, often untargeted, group of people.
I am not here to tell you those strategies should not be used any more, but I am definitely going to preach that if you have not done so already, you need to start implementing some “new school” techniques. In fact, any marketing expert will tell you that to succeed in today’s real estate world, you need a mixture of “old school” and “new school” techniques. But the scary fact is, despite the fact that numerous studies each year show that 92% of consumers use the Internet in their research process, 89% of leads in real estate involve the Internet, and so on, many REALTORS® continue to not have a website or use the Internet to try and promote/ build their business. So when it comes to the “new school” marketing, there are many options. I always say it is best to pick the marketing option that aligns with your personal marketing goals. So let’s take a stroll through technology lane so you can decide which ones suit you best:
Your Website = Home Base Most marketing experts subscribe to what is called the Hub & Spoke strategy. This means that at any time, you might 26 | kar.com
have several different forms of marketing going on, but you should choose one to be your Hub or Home Base that all of your other marketing vehicles link or tie back to. And your website makes the most sense to be that hub as it is a pretty inexpensive way to promote yourself, your own listing inventory, the local IDX property search, educational content & tools and much more. Plus, your website URL is easy to insert into any form of marketing or communication.
Brand Equity or Top of Mind Awareness (TOMA) = Banner Advertising If your challenge is that you are new and no one knows your name or maybe your company is currently #6 in the market and you would like to try to get to #4, then banner ads (animated graphic ads) are your best option. They are very similar to buying a billboard, just on the Internet. And while many people find them annoying at the time, they are remembered positively after the fact. But, the key is you have to do banner ads on a site people go to everyday for a long period of time like a local news or a community oriented site (don’t ever do banner ads on real estate sites as people don’t typically go to them often enough to be effective). A newer spin on banner advertising is called ReTargeting where a cookie (a file that allows a website to track your activities once you leave their site) is dropped on a user’s computer and that user is shown your banner ad on multiple other websites they go to from that point on. So essentially, your ad follows them around the Internet and gives them the impression that you are a big player and are everywhere.
Lead Generation = Real Estate Portal Sites If your goal is to get more leads (phone calls or e-mails) then your best option is to purchase some of the upgrade options on the major Real Estate Network Sites (Zillow/Yahoo Real Estate, Trulia, Realtor. com, Homes.com). With over 70% of the
total real estate traffic going to these top 5 sites, they have the traffic & demand to drive leads your way. Some of the options they offer include Featured Property, Featured REALTOR®, Listing Display Enhancement and Unclaimed Leads.
Traffic = Pay Per Click (PPC) Ads on Search Engines or Social Media If you have a good website and your goal is to drive traffic to it, then you need to explore pay per click (PPC) ads on search engines like Google or Bing. This can be a highly effective method because it is the only form of advertising in which you, the advertiser, have complete control of all aspects of your ad campaign. For example, you can pick the exact keyword phrases you want your ad to show up on. You then can determine the cost of your overall ad campaign budget and bid how much you are willing to pay for every transaction or cost per click (CPC) of your ad. In other words, you don’t pay every time your ad shows up in the search results, only for the clicks or traffic to your site from the ad. There are no projections or guesswork; pay per click is the only form of advertising where you know your results before it even starts. And you can even add demographic, geographic, device and time settings to it. For example, not only could you buy Milwaukee, WI Homes for Sale, you can have it only served to females over the age of 50 within a 300-mile radius of Milwaukee and only have it served to mobile devices, Monday through Friday 8AM to 5PM. It is by far the most precise form of advertising available. The key is to be sure to do research and pick smart, cost effective keywords (ones with good traffic and low CPC) and
that your website has good related content and lead capture capabilities. If you do that, it can be highly effective. Another avenue to explore with PPC is on social media sites, specifically Facebook advertising. While it has many of the principles of traditional pay per click, one of its differentiations is the fact that Facebook not only knows a lot about your personal likes and interests, but also your friends. So you can apply this data to your ad campaign and an invaluable bit of information that they track, especially for real estate, is someone’s relationship status. In the real estate world, if you know someone was in a relationship and is now engaged, or was married and is now changing their status to single, you know they could be preparing for a real estate transaction. Similarly, if someone announces they are about to have a baby, it could mean they need to upsize their property and so on.
Relationship Building / Long Term Client Acquisition = Social Media If you are looking for a new way to network, build relationships that will lead to potential clients, don’t ever forget the value of social media. It is free, and if done right, easy to do and not time consuming. Just realize each site has its own demographic/personality and pick the site that is right for you, your personality and the client you are trying to reach.
Education = Video/YouTube YouTube is not only the #1 video website on earth but also the #2 search engine behind Google. So it’s not just a bunch of videos of cats playing pianos, there are millions of people looking to learn things through YouTube and real estate is a business that requires a lot of education. If you have a lot of knowledge in a certain area, create videos on the topic and post them to YouTube for free. And, if you are thinking about posting videos of properties, you definitely should because a recent study from Postling showed that 73% of homeowners expect their REALTOR® to shoot video of their property and only 12% are doing it. Another study showed that 86% of buyers watched a community video before moving to that area. Shooting video is easier than ever and posting it online is simple because anything that deals with video these days has upload to YouTube built into it.
Manage your online reputation Here are some great tips & tools available to help you manage your reputation in the digital age: Google yourself and see what shows up. You will then know what you are up against - you know your prospective clients will. Set up Google Alerts – enter any keyword or phrase and receive an e-mail newsletter of links to web pages or articles anytime those words are mentioned online. Be sure to set one up for each of your active listings so that you can monitor and hopefully detect a potential listing scam on a site like Craigslist or Backpage. Set up a profile on SocialMention.com to monitor your personal name. Monitor the mentions & direct messages on social media sites or use aggregation tools like HootSuite.com to consolidate this effort. Create a defined presence for yourself online. Everything you have online (your website, blog, social media profiles, etc. should be similarly named (NameChk.com) and linked to each other (AddThis.com). If you want to take it a step further for Google, create an account at Klout.com that will also track your online activity. If you are going to choose one social media site to create a profile on, make it LinkedIn as it is typically the first thing that shows up when someone searches for your name. Check how you are faring on customer review sites like LinkedIn, Yelp, Zillow, REALTOR.com, RatedAgent.com and HomeAdvisor.com. When it comes to Yelp, you may also want to check out the list of affiliate vendors (plumbers, electricians, etc.) you typically recommend to your clients to make sure they make you look good because if a client has a negative experience with one of your referrals, it can reflect negatively on you. Consider enlisting a product like Reputation.com or Brand.com to help you in all aspects of reputation management (similar to credit monitoring services) including assistance in removing unwanted information (slanderous posts, bad reviews, legal records, etc.) off the internet.
Retention/Repeat Business = CRM System Follow Up (Email, Phone Calls, etc.) Another area to consider on how you can retain or get future business out of your past clients is your very own database. A recent study showed that 82% of consumers forget their REALTORS®’ name within two years. Additional studies have shown that content based drip e-mail campaigns are also becoming increasingly less effective. So the trend is how can you personalize the marketing and have a more meaningful touch to your client base.
Niche Targeting for Farming = Direct Mail Direct mail has always been a great way to farm a local area, but has struggled from a tracking standpoint. Well now there are a few vendors who are combining data, predictive analysis, direct mail and online tracking to be much more effective than traditional post cards blanketing a neighborhood.
promote yourself in the digital world, you just need to figure out which one matches up with your marketing needs. But the key is, if you haven’t done so yet, take the plunge and start shifting some of your marketing dollars online and you will be happy you did as the waters are full of your potential clients! n Craig Grant is the CEO of RETI.us, the industry’s online home for technology, and the Real Estate Technology Institute. He is a national speaker on all aspects of technology, marketing and risk management as well as a top consultant for REALTORS® looking to run their business more productively and cost efficiently using technology. To learn more about these and many more marketing techniques and the tools to do it yourself, be sure to catch Craig’s sessions on Tuesday, September 20th at the 2016 KAR Convention & Expo. For more information, Craig can be reached at 352-400-4857 or by email at Craig@RETI.us.
As you can see there are many ways to FALL 2016 | Kentucky Realtor® | 27
CEO'S MESSAGE
Get on board! The train is leaving the station! STEVE STEVENS, CCE, IOM Chief Executive Officer
MY VISION for helping the Kentucky Association of REALTORS® become the best version of itself, which I believe to be job one of a CEO, is to first be sure we understand you – our members. I’ve been in the association management business for more than a quarter century now and if there is one thing I’ve come to understand during that time is that members own (or should own) their organization. As a stakeholder, however, you must help us shape the organization to be one that serves you best. That occurs only through your input and engagement. KAR is one of, if not THE, State of Kentucky’s largest trade associations. With nearly 10,000 members and a strong, active Political Action Committee, the voice of this organization should be the strongest of all business associations in Frankfort, as well as making our presence felt in Washington, D.C. Although many of you provide regular support to our advocacy efforts, I believe we still have even greater potential to engage more of our membership and become an even higher performing organization. I look forward to improving our horsepower and success and our team of volunteers and staff are already at work making that happen.
ECONOMIC CYCLES are mountains and valleys of feast and famine – especially for REALTORS®. The indications for continued prosperity, however, is very good. With unemployment rates below 5% in most places in Kentucky and the housing market up by over 8% from a year ago, optimism should be running high. It’s been said that people usually don’t buy houses if they expect to lose their job and that is seemingly less likely now than in recent times. So the big question is – how can we prolong this trend as long as possible so more of you can continue to prosper in your business? Hopefully, the answer to that question is by continuing to reduce barriers and costs to businesses while allowing the continuation of growing jobs, wages and investment by companies through a strong business climate. Economists forecasted a 2.4% GDP growth in the 2nd quarter of 2016 and perhaps beyond. Talk to your lawmakers to ensure that continues. Provide input into initiatives like Gov. Bevin’s Red Tape Initiative to which KAR is a partner and help our governments know what problems you
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are having with government regulations in Kentucky (check the website at www.kar.com for more information). We want to make this the best state to buy and sell real estate in the nation!
RELATIONSHIPS MATTER. KAR is fortunate to already have many friends and allies and it will be important to build on these and reach out to even more. Much of what you do as REALTORS® is done through relationships, and for our organization, it is the same. It is highly unusual to win an issue – either legislative or otherwise – alone and without the help of a supporting cast. We want to ensure we keep our existing relationships strong and continually build new ones with new natural and strategic allies. IMPROVING OUR INFRASTRUCTURE must also continue to be a priority for us as we evolve as an organization. By press time, it is my hope that we will have moved into our new headquarters in Lexington where we will improve our operations. We’re on the way to the next level of service to you through our newly hired Education & Training Service Director and are moving down the road with our task forces that are looking at a new committee structures and board governance. We are also creating more dynamic and impactful statewide meetings for you to attend, starting with this year’s Convention on September 19-22.
MY FIRST FEW MONTHS as your CEO have been exciting. I have been hard at work learning our issues, policy positions, important people and places. It’s been energizing making my way north and south from Florence to Somerset, and east and west from Paducah to Prestonsburg, as well as many places in between, to visit and speak to our local boards and members. I have so much appreciated the way in which you’ve welcomed me and I look forward to continuing to make my way to all parts of our Commonwealth. If I haven’t seen you yet, be patient, I’ll get there! Together, I am confident that we can make the Kentucky Association of REALTORS® even stronger and more effective than ever! Lots of exciting work is at hand as we make your organization the best it can be. Keep moving forward and come along for the ride!
EDUCATION Online education: new selection of courses to meet your needs www.kreef.org > Online Education
KREEF offers a wide selection of online education, with both local and national instructors. You will find courses covering both law and elective CE, ethics and even the Core course. The newer courses are video based putting the instructor right in front of you – it’s just like being face to face. Courses are available to you 24/7 and can be taken at your pace – all you need is a computer and internet access. The deadline for receiving credit is December 31 so sign up now and complete before the end of the year.
GRI – start on your designation journey today! www.kreef.org > GRI
The program has been redesigned to meet the needs of today’s real estate professional including one day courses and a full year’s worth of CE per course. The courses also count for broker credit and PLE credit. With GRI, you can build your business and expand your knowledge through courses that offer specific training in key areas of real estate. And, you will increase your network of real estate professionals that can assist in generating leads and referrals from across the state. Get started now on the most popular national designation in real estate.
Get started in real estate with an online course www.kreef.org > Pre-licensing
In order to meet the needs of today’s student, KREEF is offering the entire 96-hour pre-licensing program entirely online. All the materials and resources needed to get started in real estate are included in the $599 price. In addition, the license law portion of the course was written by the highly respected and often requested attorney and real estate instructor Virginia Lawson and provides a comprehensive look into the Kentucky statutes and regulations applicable to all licensees.
Professional Standards scholarship winners to attend training in Chicago KREEF is pleased to announce the 2016 recipients of the Professional Standards Training Scholarships. Sue Ann Collins, a member of the Northern Kentucky Association (NKAR), and Jonah Mitchell, a member of the Lexington-Bluegrass Association (LBAR) were selected to attending the NAR Professional Standards Seminar in Chicago, IL, at The Gwen. As part of the scholarship, each winner receives up to $1,500 to cover meeting expenses. NAR has conducted this seminar at least once a year for decades and the program has been overwhelmingly well received by all who attend. “It seems that our current society is redefining many gold standard institutional values. It is my goal to ever be an advocate for current and effective real estate professional standards. I believe that by attending the Professional Standards Conference I will be exposed to the latest interpretations and most expedient methods of reaching a proven compromise and receive new tools for solving today’s complex real estate issues.” — Jonah Mitchell, Jonah Mitchell Real Estate Nicholasville “As a REALTOR®, we are held to a higher standard of professionalism. Over the past few years so many changes have taken place. There are a lot of new guidelines that we need to keep up with. Agents tend to get in a hurry and inadvertently make mistakes. In going to the seminar, I hope to learn how we can stay up to date and more knowledgeable on keeping it legal. I serve on the Professional Standards committee and feel with this training, I can do an even better job.” — Sue Ann Collins Teamwork Real Estate Florence
KREEF scholarship recipients
Baker
Davis
Ervin
The KREEF Trustees award scholarships on an annual basis as a way to meet its mission – to enhance real estate professionalism and knowledge by providing quality educational services and programs for the real estate industry and the public. KREEF makes scholarships available to members who want to obtain the GRI designation as well as provide scholarships to Kentucky residents (members and non-members) who wish to pursue a career in real estate. Scholarship winners for 2016 were: > GRI Scholarship Lori Kimble, Owensboro William Baker, Danville Robin Roseberry, Foster
Falireas
Kimble
Roseberry
> College Scholarship Zachary West, Louisville (Not pictured) Olivia Davis, Louisville
> Pre-license Scholarship Jonathan Lee Ervin, Auburn Mackie Falireas, Vine Grove
SPRING 2016 | Kentucky Realtor® | 29
A DAY IN THE LIFE OF...
a Leader with the Women Council of REALTORS® (and more)
Elizabeth Monarch, MBA, CAI, GRI, PMN, Louisville How many years have you been in real estate? 15 years What did you do before real estate and how did you make the change? I attended Transylvania University as an undergraduate. When I received my real estate license, I was in school at Bellarmine University getting my MBA. I thought after I received my MBA, I would get a “real job”…but I soon realized I had a career in the greatest industry in the world: real estate. I also became a licensed auctioneer at the age of 19. What was the one thing that helped propel your real estate career forward when you first started? It wasn’t just one. The things that helped the most was making personal phone calls, taking education courses and building a strong database. What are a few of the highlights you’ve experienced since you started in real estate? Hitting the Hall of Fame before I was 30 years old, doing my first $2 million auction, participating with my father, Miller Monarch, in the largest auction in the state of Kentucky and taking the CEO position at Keller Williams Realty Louisville. You are heavily involved with the Women’s Council of REALTORS®. What is your role in that group and how does it benefit you and your clients? I am a past president of the Greater Louisville chapter of the Women Council of REALTORS® (WCR), past Kentucky Governor of the WCR and currently serving as the Region 1 Vice President of the National Association of WCR (one of only eight in the country), overseeing five states. This involvement has made me a better leader and, in turn, follower. I have become more organized with my time and had the opportunity to take specialized education classes to better my business. You were part of the 2008 LeadershipKAR class. Has that program had an influence on your career and what should other agents know about LKAR? LKAR helped me become more familiar with the Kentucky Association of REALTORS® (KAR) and, ultimately, I learned how important it is to be involved in our Association and industry. This is where the 30 | kar.com
decisions of our livelihood are made. Understanding the role politically that KAR has on our real estate industry has been the most fascinating aspect of my involvement. In addition, I have recently been involved in opening an office in Owensboro, Kentucky and it is through the friendships and relationships I developed in LeadershipKAR that made this possible. I am forever grateful to this program. You have a radio show in Louisville. How did that come about and what topics do you tend to focus on? I have been on the radio for over 13 years when I was approached with the idea and loved it. I still can’t believe they let me on air every week but I love talking about real estate and real estate related topics. Over the years, I have had numerous guests and love focusing on the benefits of using a REALTOR®. In a sense, I feel I am representing all of us and the public needs to know the facts about why REALTORS® are so important to the home buying and selling process. Real estate has many areas of practice and you seem to have expanded into many of those areas. What specialties do you enjoy most and why do you diversify? Diversification is the key in any market. When the market is shifting, you must, as a business owner and entrepreneur, always be looking for opportunities. The auction business is what I LOVE – it’s my passion and I look forward to expanding this division over the next 10 years. What’s the next goal you hope to achieve? To have the choice to retire in 3-5 years. Even though I don’t think I will ever retire, I would like to be in the position to have that choice. I love having the opportunity to help agents “Fund the Life They Deserve,” while I can continue to change my family’s life. Outside of business, what is your favorite pastime? Playing golf and spending time with my family. I do like hosting parties as well. What is the best advice you have ever received? You are only one great hire away! n
A generation of opportunity. Right at your fingertips. Discover the advantages of NAR’s Seniors Real Estate Specialist® designation. Build your real estate business with specialized knowledge of the wants, needs and expectations of home buyers and sellers aged 50+. By earning your SRES® designation via the 2-day course, you gain familiarity with these unique buyers and sellers, and connect with a specialized referral network of more than 15,000 REALTORS®. Tap the potential of an SRES® designation. Visit seniorsrealestate.com to learn more.
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