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May 2014 March 2012

Budgeting Smart p. 12 Overworked? Quit Complaining p. 22 Stopping Patent Trolls p. 24

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The future is now.

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The Sign of Confidence. © 2014 BHH Affiliates, LLC. An independently owned and operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.

Real estate disruption may not be what you think it is

Table of Contents

p. 18

12 Build a Smart Budget

Features Kristoffer C. Burnett Realtor® Magazine

18 Real Estate Disruption May Not Be

What You Think It Is Brad Inman Publisher, Inman News

22 ‘Work/Life’ Balance Isn’t Your

Employer’s Problem – It’s Yours Jessica Levco Regan.com

24 Three Ways That Congress Can Help Stop Patent Trolls

Steve Brown President of the National Association of Realtors®

Columns 7 Are Home Price Gains Too Much? Angie Domichel Nelden – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch Q1 28 Realtor® Connections 28 On the Move

On the Cover: Photo: Dave Anderton Photo left: Dave Anderton

This Magazine is Self-Supporting

Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

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May 2014 volume 74 number 5 The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

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President Directors Managing Editor Angie Domichel Nelden Dave Anderton Cheryl Acker Coldwell Banker Residential

At Home Realty

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M. Brock Andersen First Vice President Georgia Cuthbert Prudential Utah Real Estate Dave Robison Communications Committee Jared Booth Robison & Co. Coldman Banker Lori Lee – Chairwoman Annie Hedberg – Vice Chairwoman Tom Colemere Second Vice President Colemere Realty Publisher Troy Peterson Inc.Linda Geer Equity Real Estate Mills Publishing,Coldwell Banker Residential www.millspub.com Shirley Jacobson President Sales StaffReal Estate Treasurer Windermere Miller Paula Bell Adam Dan Kirkham Lisa Jungemann Kirkham Real Estate Bill LinesReal Estate Windermere Office Administrator Karen Malan Cynthia Bell Snow Tony Ketterling Paul Nicholas Past President Equity Real Estate Art Director Don Nothdorft Dave Frederickson Mike Morgan Jackie Medina Keller Williams Keller Williams Administrative Assistant Magazine Designer ChloéMichael Herrman Rowe Erin Tripp CEO Prudential Utah Real Estate Office Assistant Curtis Bullock Graphic Design SharonSnow Spratley Jessica Prudential Utah Real Estate Erin Tripp Ken Magleby Patrick Witmer Advertisinginformation informationmay maybe beobtained obtainedby bycalling calling Advertising (801)467-9419 467-9419ororby byvisiting visitingwww.millspub.com www.millspub.com (801)

Managing Editor Directors President DeAnna Dipo Dave Anderton Cheryl Acker Distinctive Properties

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First Vice President Publisher Jillinda Bowers Purdential Utah Donna PozzuoliMills Publishing, Inc. Daniel Christensen Prudential Utah www.millspub.com Coldwell Banker

Second Vice President President Sarah M. Colbert Dave Frederickson Dan Miller Summit Sotheby’s Keller Williams Art Director Tom Colemere Treasurer Jackie Medina Colemere Realty Charlotte Thomas Kim Farber-Lynch OfficeEquity Administrator Graphic Design Keller Williams Real Estate Cynthia Bell Snow Leslie Hanna Lisa Hyte PastKen President Magleby RE/MAX Canyons Office Assistant Bill Heiner Patrick Witmer JessicaJacobson Snow Shirley RE/MAX Associates

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Administrative Assistant Fred Law Kyrsten Holland Law Real Estate Angie Domichel-Nelden Coldwell Banker

Troy Peterson Equity Real Estate

Salt Lake Board: (801) 542-8840 Salt Lakee-mail: dave@saltlakeboard.com Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy ® for the equal housing opportunity the nation. We The Saltachievement Lake Board ofofREALTORS is pledged to thethroughout letter and spirit of U.S. policy encourage and support the affirmative advertising throughout and marketing for the achievement of equal housing opportunity the program nation. Wein which thereand are support no barriers obtaining advertising housing because of race, color, religion, encourage thetoaffirmative and marketing program in sex, handicap, familial or national origin. which status, there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions ® persons quoted in articles are their own and do not necessarily expressed by writers is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions The Salt Lake REALTORand reflect positions of theand Saltpersons Lake Board of REALTORS expressed by writers quoted in articles®. are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles well and photographs this issue, provided proper is given to The Salt Lake REALTOR®, as Permission will beingranted in most cases, uponcredit written request, to reprint or reproduce articles ® as any writers and photographers whose names appear withtothe andREALTOR photographs. , as well andtophotographs in this issue, provided proper credit is given Thearticles Salt Lake While unsolicited original manuscripts and photographs related to the real estate profession as to any writers and photographers whose names appear with the articles and photographs. are welcome, no payment is made for their in the publication. While unsolicited original manuscripts and use photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake ® ® not necessarily by theand Saltadvertising Lake Board content of REALTORS REALTOR Views andare opinions expressedendorsed in the editorial of the. However, The Salt Lake advertisers do not make publication of this magazine so consideration products and necessarily endorsed by the Saltpossible, Lake Board of REALTORS®.ofHowever, REALTOR® are services listed greatly appreciated. advertisers doismake publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

Are Home Price Gains Too Much?

teep price gains are starting to take a bite into housing affordability, particularly in the West, according to a report from the National Association of Realtors®. Here, in Salt Lake County, singlefamily home prices increased 7 percent in the first quarter to a median price of $245,000 yearover-year. Over the past two years, the median price has increased 29 percent. Nationally, the median single-family home price rose in 73 percent of the markets, or 119 out of 164 metro areas, in the fourth quarter of 2013, with 26 percent, or 42 of those metros, posting double-digit gains. According to Lawrence Yun, NAR’s chief economist, the price increases are helping a vast majority of home owners who have seen significant gains in equity over the past two years. This is also helping the economy through increased consumer spending. However, Yun cautions that home prices have been rising faster than incomes and are beginning to hamper housing affordability. In Salt Lake County, home sales fell 4 percent in the first quarter, suggesting that buyers are beginning to pull back. It was the first time in five years that home sales witnessed a decline in a first quarter year-over-year. The national median existing single-family home price in the fourth quarter was $196,900, up 10.1 percent from $178,900 one year earlier. NAR’s Housing Affordability Index, calculated on the relationship between median home prices, median family incomes, and the average effective mortgage interest rate, dropped to 175.8 in 2013 from a record high of 196.5 in 2012. The higher the index, the stronger household purchasing power is, according to NAR. In Salt Lake County, home price gains this year will moderate to 5-7 percent, down from the double-digit gains of 2013. Rising interest rates also will curb rising home prices.

Angie Domichel Nelden 2014 President

OFFICIAL PUBLICATION OF THE OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®® SALT LAKE BOARD OF REALTORS REALTOR is a registered mark which identifies a professional in real estate who subscribes ®

® . toREALTOR a strict®Code of Ethics asmark a member of the NATIONAL ASSOCIATION REALTORS is a registered which identifies a professional in realOFestate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.

October 2005

Salt Lake Realtor® May 2014

Happenings Housing Market Featured on KSL-NBC

Pictured: Richard Piatt, KSL reporter, and Angie Domichel Nelden, president of the Salt Lake Board of Realtors®.

Angie Domichel Nelden, president of the Salt Lake Board of Realtors®, talked about Salt Lake County’s residential real estate market in an exclusive story on KSL-NBC that aired on April 30. Nelden noted that home sales in this year’s first quarter dropped 4 percent. Home prices, she said, increased 7 percent over the past year rebounding to the same levels they were before the recession. New listings increased to 5,247 homes in the first quarter, up 16 percent compared to 4,535 new listings a year ago. “Buyers have more homes to see, which is nice. They’ve got more to choose from,” Nelden said. “And I’m seeing that people are taking their time a little bit more.” Single-family prices have surged 29 percent over the past two years to a median price of $245,000 in Salt Lake County.

Salt Lake County Mayor Visits Realtor® Campus Major investors to the Realtor® Political Action Committee (RPAC) were recognized at a special luncheon on April 23 at the Realtor® Campus. Salt Lake County Mayor Ben McAdams was the featured speaker at the event. McAdams noted that Salt Lake has all the amenities of a thriving metropolitan area, but still feels like a small town. “It’s an exciting time for Salt Lake County and it’s a challenging time,” McAdams said. “The population of Salt Lake County today is roughly 1.1 million people. By 2050 Salt Lake County will have another 700,000 people, roughly an 80 percent increase in our population. That growth is exciting and also a little bit daunting.” Major investors donated a minimum of $1,000 to RPAC last year. Many investors donated Pictured: Russ Booth (left), Ben McAdams, and Jared Booth. $3,000 to $5,000.

March Home Sales Down 6% Home sales (all housing types) in March fell to 1,070 units, down 6 percent compared to 1,142 sales in March 2013. The median price increased to $227,500, up 9 percent from a year ago. The median cumulative days on the market for a listing in March climbed to 46 days, up from 31 days a year ago.

Salt Lake Realtor® May 2014

In the News Pending Home Sales Rise in March After months of stagnant activity, pending home sales (under contract) rose in March, marking the first gain in the past nine months, according to the National Association of Realtors®. The Pending Home Sales Index, a forwardlooking indicator based on contract signings, rose 3.4 percent to 97.4 from an upwardly revised 94.2 in February, but is 7.9 percent below March 2013 when it was 105.7. Lawrence Yun, NAR chief economist, said a gain was inevitable. “After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers,” he said. “Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy.” The index in the West increased 5.7 percent in March to 91.0, but is 11.1 percent below March 2013. Although home sales are expected to trend up over the course of the year and into 2015, this year began on a weak note and total sales are unlikely to match the 2013 level. Existing-home sales are expected to total just over 4.9 million this year, below the nearly 5.1 million in 2013. However, with ongoing inventory shortages in much of the U.S., the national median existing-home price is expected to grow between 6 and 7 percent in 2014.

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Build a Smart Budget Tracking revenue and expenses is only the beginning of ensuring a healthy future for your brokerage. By Kristoffer C. Burnett Realtor® Magazine

1. The Operating Budget

Purpose: to forecast and track revenues and expenses. Operating budget is what most people think of when they hear the word budget: a forecast of sales, or revenue, and an estimate of expenses based on that forecast. Breaking the components of your operating budget down by relevant detail—rather than forecasting one revenue and one expense figure for the entire year—will pay off. So resist the urge to go with lump-sum projections. Here are 5 steps for creating your operating budget. 1. Estimate the number of transactions you expect to close each month. Because the amount you’ll earn from sales depends on home prices, revenue can vary greatly. It’s easier to forecast if you break closings into manageable segments. In the chart, the estimated closings for each month are broken down into four quartiles: (I) under $150,000, (II) $151,000 to $225,000, (III) $226,000 to $300,000, and (IV) greater than $300,000. Add all those numbers to get a yearly total forecast. 2. Use your forecast to estimate monthly transaction revenue. Determine the average revenue per closing for each quartile, and multiply that by the number of closings you expect in each month.

Salt Lake Realtor® May 2014

3. Calculate fee revenue separately. For a broker, fee revenue usually includes agents’ desk fees and referral fees. Desk fees are fairly predictable, but referral fees can be erratic, so look back at historical receipts in order to forecast. 4. Calculate your cost of sales and subtract it from total revenue to determine your gross profit. With a rough revenue budget in place, you can calculate cost of sales (COS)—that is, the expenses directly tied to making those sales. Commissions and outgoing referral fees fall into this category. Since outgoing fees are typically the first paid after a closing, they should be the first addressed. Franchise fees are pretty straightforward. A common example is 5 percent of gross closing revenue after referral fees. But as with referral fee revenue, referral fee expenses can be hard to forecast. Again, use historical data as a starting point. Once you’ve addressed fees, estimate agent commissions. There are many types of commission arrangements; a common example (used for purposes of the chart) is 65 percent of gross closing revenue after fees. And if there are other expenses within your brokerage that fall into this category, estimate them in the same manner as commissions and fees and total them. The

brokerage’s overall strategy? (or, if you’re an agent, with your individual business strategy?) Are your forecasts optimistic? If you don’t meet them, what will it mean to your net income? Remember, budgeting is not an end in itself; it is meant to provoke thought and to spur action if needed.

2. The Capital Budget

Purpose: to plan for major expenditures that will provide a return to the business over the course of several years. Significant spending—such as the purchase of office equipment or a commercial rental property— should never be pursued on a whim. By conducting an objective analysis, you can compare potential investments and determine which are likely to have the greatest value for your business.

total cost of sales is then subtracted from total revenue to determine gross profit. 5. Subtract general and administrative expenses, interest, and taxes. GA expenses include every other cost that isn’t directly tied to sales. Some examples are advertising, salaries, benefits, payroll taxes, rent, utilities, and maintenance. For the table at right, GA expenses are lumped together, but like the COS, they should be itemized in your budget. Refer to your records to ensure that all expenses are accounted for. Some will be fixed and, therefore, easy to forecast, while others will be seasonal. Subtract GA expenses from gross profit to get an estimated operating profit or loss for each month. To estimate interest expenses, refer to recent loan statements and use an online amortization table if needed. Don’t forget to account for additional interest expense if you’ll be borrowing money to pay for a capital project or for other needs. Taxes are subject to many variables; it’s wise to consult with a qualified tax professional on this aspect of your budget. Once you’ve subtracted interest and taxes from your operating profit, you’ll have a wellthought-out estimate of net income for the coming year. Now, review the operating budget as a whole. Does it correspond with your

Tools That Ease the Budgeting Burden If developing a budget is time-consuming, tracking the numbers month in and month out can be killer. Software tools, such as Intuit QuickBooks and Plan Guru, make it easier. With these programs, you can track and categorize your spending to stay on budget. Some can automatically sync data from your bank and investment accounts, eliminating time-consuming data entry. Often, you have the ability to search for specific transactions in your data and store attachments (such as a receipt image to a purchase record), eliminating uncertainty and aiding in auditing. Advanced financial software solutions hosted in the cloud enable staff and outside accountants to view, manage, and approve budget information online from anywhere—even a mobile device—simultaneously and securely. Online tools such as Xero enable you to track data online and import real data into tools such as Excel and Microsoft Office 365 to improve your forecasting. To help you track expenses on the go, many of these programs have mobile versions. Other mobile apps can cut down on the time you spend adding up receipts. ProOnGo from QuickBooks not only scans your receipts but also files them in custom templates and syncs the data to your QuickBooks budget. —By Carolyn Schwaar Consider two examples: Project 1 requires a $10,000 initial cash outflow and offers decreasing cash inflows over the next five years totaling $15,000 ($5,000 in year one, $4,000 in year two, $3,000 in year three, $2,000 in year four, and $1,000 in year five). Project 2 requires a $50,000 initial outflow and provides steady cash inflows of $15,000 per year over the five-year period totaling $75,000. It’s easy to compare the two projects using an online calculator. Try the “Net Present Value and Profitability Index Calculator” at the Web site Calkoo

Salt Lake Realtor® May 2014

Purpose: to forecast cash flow so that you don’t come up unexpectedly short.

addresses the most essential asset—cash. A shortfall in cash, even if only temporary, could cause an otherwise healthy business to become insolvent. As might be expected, the financial budget begins with your beginning cash balance. Some guesswork may be needed if the first period of the budget is in the future. After that, the beginning balance will, of course, be the previous month’s ending balance. Next, estimate cash collections for each month by referring to the revenue in your operating budget. Most closing revenue will be collected immediately, though this may not be the case with fee revenue. Referring to historical data should shed light: Examine the typical collection time for fees, and don’t forget to take into account the percentage that are never collected. For example, you might assume that 75 percent of fee revenue will be collected in the month it’s earned, 20 percent will come in the following month, and 5 percent will be bad debt. Because of the erratic nature of receipts, the cash collections schedule could look quite different from the budgeted revenue. Now estimate cash disbursements for each month. Like collections, disbursements refer back to the operating budget—the expense side. The timing of expenses will depend on their nature. For simplicity, you might decide that expenses are all paid as soon as they’re accrued, so they affect the operating budget and the financial budget in the same month. And remember to include quarterly income tax payments in your financial budget. Past percentages of total revenue can provide a useful starting point for quarterly payments. With a picture of incoming and outgoing cash from operations, you can address existing and potential financing. Outflows for existing loans should be easy to figure since they’re typically the same amount every month. The financial budget may uncover the need to borrow additional money to cover temporary shortfalls or to pay for capital projects. With a picture of your business’s cash situation in mind, you might want to go back and revisit some of your previous assumptions. Do you need to rethink how you’ll cover potential shortfalls? Will you need to bring in more sales in lackluster months? Will expenses or projects have to be scaled back? Or will your brokerage have extra cash? And if so, what will you do with it? Hire staff? Take on another profitable project? Invest it? While creating these three budgets will require considerable time, they’ll provide valuable benchmarks for how well you’ve adhered to your overall strategy for the year. But don’t assume that every detail must be accounted for in order for the analysis to be meaningful. Just taking time to dedicate critical thought to the annual budget process provides substantial benefit.

The final piece of the budgeting phase is, in some ways, the most important. The financial budget is critical to a brokerage’s well-being because it

“Money doesn’t guarantee happiness, but the ability to manage what you have can provide a windfall of security during uncertain times.” (www.calkoo.com). Unless you’re versed in finance, some terms on the calculator may be unfamiliar, starting with “discount rate.” That figure determines how much future cash flows are worth today. The higher the rate, the more conservative your analysis. Leaving the discount rate at the default 10 percent and changing the investment period to five years, input what you’ll spend initially in the “Individual Investment/Cash Out” column. Then input what you’ll get back in the first five years in the column headed “Cash-In” (don’t use commas in your numbers). The net present value is calculated automatically on Calkoo. The NPV represents the value of each project today, and it’s determined by factoring in the size of the initial outflow and the amount and timing of subsequent inflows. The timing of inflows is important because the sooner they’re received, the more valuable they are (because of inflation and the potential returns that could be earned elsewhere). If the NPV is negative and you’re sure your inputs are correct, then you probably shouldn’t pursue the project any further. In the examples above, Project 1 and Project 2 both have a positive NPV ($2,092.13 and $6,861.79, respectively). Therefore, you could justifiably pursue both projects because both are expected to add value. Usually, however, companies don’t have this luxury due to limited resources. So how do you choose what to invest in? Frequently—as in these examples—the project with the bigger initial investment has a bigger NPV. But, does that make it a better choice? Not necessarily. That’s where the profitability index comes in. This figure (also calculated automatically on Calkoo) compares the NPV to the initial investment amount. The larger the PI, the better. In the examples, Project 1 has a higher PI (1.2092 versus 1.1372). Still, after projects have been analyzed, you must review them through the lens of common sense. Buying new artwork for your office may be costlier than upgrading to the newest iPad, but only you know how to assess the importance of one over the other. It could well be appropriate to accept a project with a lower NPV or PI. Don’t rely solely on the quantitative analysis.

3. The Financial Budget

Salt Lake Realtor® May 2014

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Real Estate Disruption May Not Be What You Think It Is By Brad Inman Publisher, Inman News When I was a journalist in the 1980s and 1990s, I penned 1,500 bylined articles that appeared in metro newspapers around the country. Last year, I resolved to use my old dry clippings to start fires in my woodburning stove. Today when I reached for an old newspaper, I came across the June 6,1993, edition of the business section of the Los Angeles Times, where I wrote weekly about economic policy. On the cover of that section — not my article — was a story with this headline: “Wayne’s World: Blockbuster’s Huizenga Dominates Video Rentals, but Technology Threatens to Erase His Lead.” This was four years before Netflix was founded. At its peak, Blockbuster was sold in 1994 to Viacom for a staggering $8.4 billion. But just 16 years later, the video rental company filed for bankruptcy.

Salt Lake Realtor® May 2014

Another classic story of disruption, caused by technology innovation. Lately, I cannot get my mind off the obvious disruption unfolding in real estate. Already, printing companies have been disrupted by technology; newspapers have lost their hold on real estate advertising; and now MLS organizations and brokers face a looming threat to their traditional livelihood as search portals now dominate the consumer lead industry and soon, I predict, the data business and the agent’s CRM experience. I have never believed that real estate disruption comes from consumers selling their own houses. Individual real estate agents are here to stay. They provide an invaluable service that most of us need and want. Instead, it is the enterprises that have traditionally

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“I have never believed that real estate disruption comes from consumers selling their own houses. Individual real estate agents are here to stay. They provide an invaluable service that most of us need and want.” recruited, partnered and supported the independent agents that are challenged by technology’s disruptive forces — brokers mostly, but also MLS organizations and even franchises. Important lessons can be gleaned from industries outside real estate that are being disrupted. Look what’s going on in personal transportation. Uber is an app-powered on-demand car service provider for smartphones. It has created a highly successful marketplace for suppliers (drivers) and users (passengers who need cars instantly to get around). Uber provides an addictive experience that includes driver ratings and GPS tracking and that is supported by a friction-free digital transaction when you exit the cab. Uber is disrupting an industry that often disappoints the consumer. Ready to leave a party, a friend of mine recently called her longtime car service. The back-and-forth process of communicating with the dispatcher and figuring out the address and the timing was painful to watch. Worse, her car did not come for 30 minutes. The arcane role of the dispatcher — an old-school middleman — is what mucked up the process. Then consider the taxicab companies who deploy a business model that does a lousy job of screening drivers with no rating or ranking service for the passenger. Plus, there is not an easy way to order a cab, and the payment pain at the end is always yucky. All of this compromises the customer experience creating a tension between the company and their suppliers and between cab drivers and their passengers. The parallels to real estate are uncanny. Similar tension has been rampant in real estate for many years. The traditional broker business model centers around recruiting more and more, often not very carefully screened, agents, which dilutes the quality of real estate services generally. This is aggravated by the opportunity for the broker to get better splits from poor-performing agents who create a reputation problem for the industry. At the heart of the real estate disruption threat is the value proposition. Already, top-producing agents get a better economic cut because they are providing the most value, which infers something about the diminishing value of the broker. Where does disruption come in real estate? For now, we do not have an Uber, but one is either already in the making or coming soon.

Fast-growing and well-capitalized platforms like Zillow, Trulia and realtor.com are already delivering better and better consumer experiences that far outpace what most brokers are capable of. Plus, they are building tools and relationships directly with individual agents at a furious pace. Visit the sophisticated Zillow call center in Irvine for proof. ZT&R are already incorporating agent CRMs into their platforms. Just like Uber, they become the go-to platforms for growing an agent’s real estate business. Tools like DocuSign and dotloop are making one-on-one contract signing easy and simple for the agent, and it is only a matter of time before Zillow, Trulia and realtor.com add these services and integrate them into their lead machines. When confronted with Uber’s success, cab companies were late to the game with their own poorly created apps, and they have attempted unsuccessfully to use their regulatory specialness to fend off services like Uber. Brokers often tout their role offering Realtors® protection from legal liability, but this too could give way to the power of a new marketplace and technology innovation. The real test will be what new agents do on these new portal platforms. Thousands of new drivers have built thriving new businesses around Uber — all new car services with Uber as their platform and engine. Many new upstart agents and small real estate companies are hitching up to one or all of the portals as their business launch pad and primary partner. When the portals figure out how to appeal to home sellers, the link with the portals will be inseverable. Uber provides a level of protection and service for the drivers. It is essentially a new car service broker. It is out innovating existing brokers through a better experience that empowers the consumer and driver, and Uber gets out of the way. Also, many traditional car service companies are reorienting their business around Uber to survive. The question for real estate brokers is do they: • Let Zillow/Trulia/realtor.com become that new layer — de-facto broker? • Redefine themselves so that ZT&R can’t compete on whatever that differentiator is? • Completely reorient their business and value proposition around the reality of the portals. (Note: ZT&R promise not to disrupt the brokers, but the ultimate outcome will be driven by the actions of those who create the most value — the agents). Smart brokers, I believe, should spend more time figuring out choice No. 3. Real estate’s Uber may be out of the garage, already. What do you think? Where will the real estate value chain be disrupted, if it all? Brad Inman is the founder and publisher of Inman News. This article was reprinted in Salt Lake Realtor® Magazine with permission of Inman News. Copyright 2014. All rights reserved.

Salt Lake Realtor® May 2014

Image licensed by Ingram Image

‘Work/Life’ Balance Isn’t Your Employer’s Problem—It’s Yours Quit complaining! Put your life first. Then, go start your work. By Jessica Levco Ragan.com ‘I hate the phrase “work/life” balance. For starters, it doesn’t even make sense. You’re basically saying, “I work first and then, if I have time, I have a life.” It sounds like you’re trying to contain work from overtaking your life. Where’s the balance in that? What I hate even more is when people complain that they have no “work/life” balance at their job. Oh, c’mon.

Salt Lake Realtor® May 2014

If you feel like you need to be connected and plugged in 24/7, that’s your choice. When everybody else is working a solid 40 hours a week, why do you feel the need to do 168? It’s probably because you don’t have a life to begin with. Well, I’ve got news for you: Your job as a person should be to get a life. Your employer’s job is to give you money to afford the life you want.

Service Directory “When everybody else is working a solid 40 hours a week, why do you feel the need to do 168? It’s probably because you don’t have

or book signings. But even when I lived in middle-of-nowhere Florida, I still made time for myself, even if it was as simple as walking around a nearby lake.

Stop working so hard

I’m an advocate of a “life/work” balance. Here’s how I swing it:

Figure out how you can delegate some tasks. I know we all have a lot of work to do, but isn’t that what interns are for? Sometimes, you have to let it go. Plus, when you free up your workday from menial tasks, you’ll have more time for strategic thinking and bigger projects.

The work will always be there

Think in themes

a life to begin with.”

Maybe I have too much of a Zen-like mindset about my job, but here’s how I feel: I wasn’t hired to get all my work done in a day, a week, or a month. The work will always be there. It will never get “done.” Even when I work for 15 hours a day on this website to “get ahead,” there will always be another story to write, an article to plug, or something to tweet about the next day. It really just doesn’t matter how hard I work—just as long as each day, I show up and work. Each day adds up over time.

Don’t be at the mercy of your job I think sometimes people like putting themselves at the mercy of their job. You teach your employer and your co-workers how to treat you. If you show up every day at 7 a.m. and stay until 7 p.m., that’s what everybody will come to expect. Don’t be surprised if you find yourself with more and more projects.

Dealing with email

Don’t respond immediately to emails you get from people, unless it’s an emergency. Emailing back and forth can be a major time suck. When you let an email simmer in your inbox for a few hours, you’re basically telling the person, “I’m really busy.” If you respond instantly, you’re saying, “I’m free! I’m around! Talk to me!” Play it cool. It’s like being in high school—if you picked up the phone on the first ring every time someone called you, that’d be weird.

Get a life during lunch

If you feel like you can’t have a life after work, the least you can do is try to carve out some time during your day for lunch. Especially if you live in a city, this can be relatively easy. In Chicago, I’ve stopped in for some architecture lectures, jazz concerts,

Try to think about each day in themes. Before you go into the office, decide the major things you want to accomplish. Today, all I wanted to do was to write this story—so I put everything else on the backburner. Put the bigger projects first, and then take care of the little stuff along the way. It’s also important to work as efficiently as you can. Don’t squander those eight hours. Stop checking your Facebook, your Fantasy Football scores, your GChat. The best way to think about the workday is this: The Internet is always there to distract you, but you can control it. Work for a solid two hours and then take a 10-minute mental break to go look at Etsy. Treat it like a treat.

Do something after work

I can’t really give blanket statements on how you can live your life, but the best thing to do to make sure you get out of work mode is to sign up for something. Take a cooking class, learn Japanese, get a personal trainer, do improv, learn ballroom dance—get a hobby that requires you to be there at least once a week. Don’t just think: “Oh, my friends/ family and I do stuff every once in a while after work,”—that’s not enough to sustain you. Besides, those plans change all the time. You’ll be less likely to back out of something, especially if you’ve paid for it and your coworkers expect you to leave at a certain time. Some of you might be thinking: “This isn’t possible. To get ahead, to get that corner office, I need to put in 12-hour days so I can keep advancing in my career.” Sure, go ahead and do it. But you’ll be missing out on your life. Reprinted in Salt Lake Realtor Magazine with permission of Ragan’s Health Care Communication News (www.healthcarecommunication.com). Copyright 2014. All rights reserved. ®

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Three Ways That Congress Can Help Stop Patent Trolls In 2012, patent trolls sued more non-tech companies than tech companies, costing the U.S. economy $80 billion in litigation costs. By Steve Brown President of the National Association of Realtors® Who would have thought that everyday business practices like scanning documents would be the target of patent lawsuits? In 2012, patent trolls sued more non-tech companies than tech companies, costing the U.S. economy $80 billion in litigation costs. Now is the time for comprehensive patent reform, not just for tech but for Main Street businesses too. The real estate industry, for example, was caught off guard in 2011, when CIVIX-DDI sued the Multiple Listing Service for infringing its patent on “systems and methods for remotely accessing a select group of items from a database.” As a result of this patent infringement lawsuit, a number of MLSs have been required to pay millions of dollars in licensing fees to the patent holder. Litigation is disruptive at a minimum and a downright disaster in other cases. Businesses are making choices to not offer certain features or products, and the expense of the litigation–a single lawsuit can easily cost tens of thousands of dollars or more to defend–means displacing other activities like hiring people, research or expanding. With the economy still slogging its way to recovery, now more than ever, we all have a stake in patent reform. We can’t afford not to. Patent trolls are harming the ability of small business to evolve and innovate and are in turn stifling their ability to compete and succeed. Congress must stop patent troll abuse by passing comprehensive common sense patent reform legislation – now. There are several courses of action that Congress can take to end the billions of dollars of waste caused by patent trolls: Congress should require “demand letter transparency,” which makes it illegal for patent assertion entities to hide behind multiple shell corporations. That way, businesses will know what they’re up against when they receive a demand letter. Congress should create a cheaper, swifter alternative to litigation by allowing the Patent Office to review business method and software patents when evidence substantiates that the plaintiff is a troll. Patent trolls are able to exploit low quality and overly-broad patents because there are few ways to challenge them without litigation.

Salt Lake Realtor® May 2014

“Litigation is disruptive at a minimum and a downright disaster in other cases.”

Congress should create disincentives for trolling behavior. If a court declares a lawsuit is frivolous, the patent assertion entities should pay court fees. They should also be prevented from suing end users who are easy targets, and instead go after the intermediary manufacturers and producers. Patent trolls, once the bane of the tech industry alone, are now antagonizing any business that adopts emerging technologies to improve customer services and transactions, and especially the small business owners who lack the resources to defend themselves. That includes Realtors® in every city and state. Fortunately, there is a solution. Congress must pass comprehensive patent reform that protects innovators and main street businesses from broad claims of patent infringement. Published in Forbes. Reprinted from Realtor.org, March 2014, with permission of the National Association of Realtors®. Copyright 2014. All rights reserved.

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Single-Family Home Sales Decline in First Quarter; Prices Climb to Pre-Recession Levels Sales of single-family homes in Salt Lake County fell 4 percent in the first quarter, the first time home sales showed a decline in five years in a first quarter (year-over-year), according to the Salt Lake Board of Realtors®. In the January through March period, 2,158 single-family homes were sold by Realtors®, 100 less homes sold compared to the same quarter in 2013 (2,258). The first quarter decline follows a robust 2013 selling year. Single-family home sales in Salt Lake County in 2013 were the best on record in seven years. More than 11,700 homes were sold during the year, a 6 percent increase over sales in 2012. Home sales fell in a number of cities including: the Avenues (84103) down 16 percent; Canyon Rim, down 3 percent; Draper, down 11 percent; Herriman, down 11 percent; Kearns, down 6 percent; Magna, down 32 percent; Riverton, down 15 percent; Sandy (84070) down 9 percent; South Jordan, down 13 percent; and Sugar House (84105) down 22 percent. “The dip in home sales is a reflection of

higher home prices,” said Angie Domichel Nelden, president of the Salt Lake Board of Realtors®. “The median home price in this year’s first quarter increased to $245,000, a 29 percent rise compared to a median price of $190,000 two years ago. Higher home prices have made home buying less affordable.” Home prices in the first quarter ($245,000) increased 7 percent compared to a median price of $228,450 in the first quarter of 2013. This year’s first quarter median home price of $245,000 is the same median price as the first quarter of 2007, prior to the start of the Great Recession. Sales of condominiums in Salt Lake County climbed to 559 in the first quarter, an increase of 4 percent compared to 537 sales in the first quarter of 2013. During the same period, the median condo price in Salt Lake County climbed to $172,500, up 11 percent compared to a median price of $155,000. New listings increased to 5,247 homes in the first quarter, up 16 percent compared to 4,535 new listings a year ago.

UtahRealEstate.com

Home Sales Graph Report

Home Prices Per Quarter (Salt Lake County)

Search Criteria: State is Utah, County is Salt Lake, Property Type is Single Family

Prepared By: Dave Anderton Salt Lake Board of Realtors 801-542-8840

This report was generated automatically by the Wasatch Front Regional MLS on 04/30/2014 at 09:46 AM

Home Sales Per Quarter

Search Criteria: State is Utah, County is Salt Lake, Property Type is Single Family

Salt Lake Realtor May 2014 ®

This report was generated automatically by the Wasatch Front Regional MLS on 04/30/2014 at 09:47 AM

$400,000

6.67%

-31.03%

n/a

S.L. CO

84044

MAGNA

-31.52%

$150,000

7.18%

66.67%

S.L. CO

84047

MIDVALE

37.50%

$223,000

25.63%

166.67%

-78.60%

$204,500 -2.95%

292

8.96%

1.12%

$112,500

40.80%

128

1.59%

0.00%

$204,000

21.18%

130

-10.34%

-38.60%

S.L. CO

84065

RIVERTON

-14.85%

$305,200

9.04%

S.L. CO

84070

SANDY

-8.89%

$215,600

5.69%

108.33%

$207,347

29.19%

25.67%

-22.12%

57.14%

$153,719 -1.59%

123

-0.81%

-23.33%

S.L. CO

84081

WEST JORDAN

-7.53%

$250,000

8.98%

S.L. CO

84084

WEST JORDAN

-22.58%

$207,000

12.13%

0.00%

$158,950 -12.66%

144

0.70%

-2.94%

0.00%

$150,000

11.11%

176

6.02%

S.L. CO

84088

WEST JORDAN

-19.05%

$238,000

2.81%

-60.00%

21.54%

$168,000

31.25%

166

50.91%

18.92%

S.L. CO

84091

SANDY

n/a

-2.50%

n/a

% +/- CHANGE

19.48%

-11.01%

2014 Q1 AVERAGE CDOM

$171,450

% +/- CHANGE

DRAPER

2014 Q1 NEW LISTINGS

COPPERTON

84020

% +/- CHANGE

84006

S.L. CO

2014 Q1 CONDO MEDIAN SALES PRICE

% +/- CHANGE

2014 CONDO # SOLD

% +/- CHANGE

500.00%

2014 Q1 MEDIAN SALES PRICE

% +/- CHANGE

2014 HOUSE # SOLD

CITY

ZIP

COUNTY S.L. CO

235

S.L. CO

84092

SANDY

15.52%

$424,900

27.50%

100.00%

$260,500

0.19%

146

39.05%

S.L. CO

84093

SANDY

4.17%

$317,750

8.54%

200.00%

$269,900 -5.43%

117

44.44%

125

S.L. CO

84094

SANDY

-4.48%

$240,950

13.39%

-33.33%

$195,500

40.75%

128

16.36%

0.00%

S.L. CO

84095

SOUTH JORDAN

142

-13.41%

$350,000

11.46%

4.65%

$196,000

2.62%

500

40.06%

-12.96%

S.L. CO

84096

HERRIMAN

108

-11.48%

$301,500

8.84%

162.50%

S.L. CO

84101

SLC

S.L. CO

84102

SLC

S.L. CO

84103

SLC

S.L. CO

84104

SLC

S.L. CO

84105

SLC

S.L. CO

84106

S.L. CO

-25.45% 104.92%

$187,487

17.18%

331

49.77%

-22.89%

200.00%

$125,000 -10.65%

-40.00%

$200,000

0.00%

-14.29%

-72.40%

0.00%

$222,000

$160,000

6.74%

-15.91%

4.47%

-48.00%

0.00%

115

-8.00%

$358,000 -8.84%

11.11%

$173,250 -34.99%

136

9.68%

115

-4.96%

2.27%

$125,000

11.16%

100.00%

$59,112

39.09%

16.67%

4.76%

-22.08%

$312,500

17.04%

n/a

109

-1.80%

0.00%

SLC

-11.76%

$274,210

17.81%

-21.21%

$160,000

28.00%

204

4.62%

-3.00%

84107

MURRAY

17.78%

$215,000

0.47%

31.25%

$127,300

39.13%

149

7.97%

0.00%

S.L. CO

84108

SLC

14.63%

$399,000

7.87%

9.09%

$288,500

64.86%

102

9.68%

-38.36%

S.L. CO

84109

SLC

-3.12%

$305,000 -3.48%

20.00%

$166,250

14.66%

109

-0.91%

19.28%

S.L. CO

84111

SLC

-13.33%

$194,000

-37.50%

$195,450 -5.81%

-1.67%

-43.45%

4.86%

S.L. CO

84115

S SLC

24.44%

$177,875

4.69%

18.18%

$189,000

82.61%

106

-15.87%

29.69%

S.L. CO

84116

SLC

9.76%

$158,600

13.29%

20.00%

$126,250

83.10%

2.38%

-29.25%

S.L. CO

84117

HOLLADAY

2.78%

$359,000

5.74%

11.76%

$127,250 -5.21%

133

7.26%

-5.75%

S.L. CO

84118

TAYLORSVILLE/ 144 KEARNS

-5.88%

$158,600

12.84%

900.00%

$218,129

64.01%

222

1.83%

26.87%

S.L. CO

84119

WVC

-12.16%

$152,250 -0.98%

-47.06%

$122,823

16.42%

187

37.50%

-40.21%

S.L. CO

84120

WVC

12.05%

$172,000

12.42%

-28.57%

$159,244

1.30%

182

16.67%

-2.82%

S.L. CO

84121

COTTONWOOD

19.23%

$312,500

11.91%

-4.55%

$209,500

13.24%

S.L. CO

84123

TAYLORSVILLE/ 41 KEARNS

-14.58%

S.L. CO

84124

HOLLADAY

S.L. CO

84128

S.L. CO

84129

197

11.30%

-22.02%

$215,000 -3.04%

25.00%

$112,500 -5.66%

132

36.08%

30.56%

83.33%

$197,000

7.39%

107

32.10%

116

36.47%

15.07%

-29.87%

4.35%

$382,825

23.00%

WEST VALLEY

-4.76%

$180,700

TAYLORSVILLE

S.L. CO TOTALS

50.00%

2158

-4.43%

3.85%

50.00%

$134,000

120

17.65%

$184,650 -5.19%

33.33%

$129,000 -5.56%

101

26.25%

$245,000

7.24%

559

4.10%

$172,500

11.29%

5247

15.70%

$270,000

23.85%

42.11%

$135,000

8.87%

185

31.21%

103

0.00%

$157,950

11.23%

37.04%

18.75%

DAVIS CO

84010

BOUNTIFUL

-17.65%

DAVIS CO

84014

CENTERVILLE

7.69%

$233,500 -4.30%

DAVIS CO

84015

CLEARFIELD

196

10.11%

$168,000

6.84%

DAVIS CO

84025

FARMINGTON

31.43%

$282,250

0.84%

-6.67% 550.00%

10.53% -7.87%

$119,900

21.73%

363

20.20%

6.67%

-25.00%

$190,250

20.79%

113

10.78%

-19.27%

DAVIS CO

84037

KAYSVILLE

-16.88%

$298,221

19.29%

60.00%

$190,605

0.97%

159

-5.36%

-11.54%

DAVIS CO

84040

LAYTON

-7.81%

$269,628

9.38%

-16.67%

$169,500

21.51%

141

9.30%

107

-15.75%

DAVIS CO

84041

LAYTON

110

-15.38%

$193,000

4.16%

12.50%

$136,500

8.80%

211

6.57%

102

10.87%

DAVIS CO

84054

N. SALT LAKE

-22.64%

$229,000

4.09%

0.00%

$171,900

20.21%

151

51.00%

102

24.39%

DAVIS CO

84075

SYRACUSE

-7.69%

$244,400

12.37%

n/a

$164,400

n/a

133

-2.21%

122

62.67%

DAVIS CO

84087

WOODS CROSS

-44.90%

$224,000

1.82%

100.00%

$185,257 -4.23%

-2.60%

7.59%

713

-8.00%

$220,000

5.39%

101

34.67%

$165,900

1605

100

6.38%

DAVIS CO TOTALS

16.01%

14.07%

Salt Lake Realtor速 May 2014

REALTOR® Connections Q&A: Kevin Larsen Kevin Larsen is the Branch Broker for Coldwell Banker Residential in Salt Lake City. He was the winner of the Good Neighbor Award at this year’s Best of 2013 Awards event for his 16 years of service on the Brighton Ski Patrol. Q: What is the Good Neighbor Award? A: The Good Neighbor Award is presented annually to a Realtor® or an affiliate member who has made exceptional contributions to his or her community during the year. Nominees for this award have made a significant contribution of personal time as well as money, materials and other resources. Q: What is the Brighton Ski Patrol? A: The Brighton Volunteer Ski Patrol consists of 100 dedicated individuals ranging in age from 21 to 85. We have doctors, lawyers, engineers, surgeons, business owners, students, life insurance executives, paramedics, medical students and Realtors® who donate hundreds of hours each year to the patrol. We buy and maintain our own ski equipment and clothing, pay for our own medical supplies, and provide our own vehicles to get to the resorts on mornings before the canyon roads are plowed. Q: What are some of the demands of the job? A: Over the 16 years I’ve served as a patroller, I’ve treated almost every injury or medical condition that can occur. We treat 30-40 injuries on a typical weekend. We treat minor injuries, but often encounter life threatening injuries that require us to use all the skills and incident management skills we have. We interface with ambulance crews, paramedics and air medical crews to transport these patients to more advanced care. Our training is similar to an emergency medical technician medical course (12 weeks) followed by hundreds of practical tests and onthe-mountain training to learn how to transport patients from technical terrain. It takes a new patroller about 18 months before they are allowed to work an accident as a qualified emergency medical technician.

Past Presidents Honored

The Women’s Council of Realtors® honored its past presidents in March at a special luncheon held at the Realtor® Campus. Past presidents recognized included (pictured): Vicki Fulkerson, left, (2008), Lisa Jungemann (2011), DeAnna Dipo (2010), Patti Florence (2001), Eunice Jones (2007), Claire McHugh (1996), Joan Rushton-Carlson (1983), Jacki Nicholl (1981), Cindy Wood-Perchon (2005), Sophie Reece (2013), and Joan Pate (1979).

Salt Lake Realtor® May 2014

On the Move Alta Title welcomes Martin Page to its team. As Alta Title’s marketing representative, Page’s duties include maintaining the current account base and developing new clients. He will draw upon his 11 years of experience with Coldwell Banker Residential sales and nearly 20 years in business to business advertising sales to meet clients’ needs. Equity Real Estate welcomes: Angela Johnston, John Salazar, Kami Christensen, Mary Kirby, Lolita Lamm, Kim Rowland, Ryan Kirby, Kenneth Thomas, Maria Knudsen, Gene Atkinson, Jay Carlton, Taylor Smith, Michael Baird, Miguel Gonzalez, Bruce Welller, Diane Keating, Ronald Stoker, Debra Phillips, Jennifer Taylor, Michael Burdette, Jeff Tabish, Luisa Giles, Julie Lyman, Silvia Castro, Dale Gunderson, Tobin Gunderson, Jason Chapman, Horacio Marchitelli, Casey Katherine Farr, Joseph Darger, and Marissa Reyes. Lehi is exploding. On the edge of Salt Lake and Utah counties, companies are adding a potential 3.5 million square feet of office space, or almost twice the size of the Empire State Building. Firms are racing to attract employees from the north and south. What used to be an empty space at the Point of the Mountain is becoming Utah’s largest concentration of technology companies. It’s a far cry from what Thanksgiving Point looked like before it first opened in 1996. In the last six years, Lehi had a 15.1 percent increase in employment, compared with 3.9 percent state-wide.

29TH ANNUAL Salt Lake Board of Realtors®

CHARITY

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Benefiting The Road Home & The Christmas Box International Salt Lake Marriott Downtown City Creek 75 South West Temple

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Friday, June 27 Sponsor’s Reception 5:30 p.m. Silent Auction 6-7 p.m. Dinner & Live Auction 7 p.m. Tickets available at slrealtors.com $75.00 early purchase by June 1 $85.00 after June 1

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