Sl realtor oct 2014 by Mills Publishing Inc.

Salt Lake

REALTOR

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Top Cities Searched By Global Buyers p. 20 Utah’s Biggest Brokerage Contributing to RPAC p. 14 Customer Retention p. 24

Dave Grant

801-400-4051 | grantteam1@gmail.com

I believe it was a fantastic step forward joining the nationally renowned brand of Berkshire Hathaway HomeServices. As a top producing agent, I’m thrilled to belong to such a respected brand and company. Berkshire Hathaway HomeServices has provided me with all the tools necessary ensure my business’ continued success.

Dallas Eichers/Craig Vogeli 801-541-2485 deichers@gmail.com / 801-201-3344 craigvoegeli@gmail.com We are delighted with the support, professionalism and amazing marketing presence demonstrated by our new brand. The provenance behind the name Berkshire Hathaway gives us huge credibility in our marketplace and has helped us build on our past success. We are proud to represent Berkshire Hathaway HomeServices and believe it will continue on its unprecedented trajectory of growth.

Ashlee Lane

801-647-4597 | alane@bhhsutah.com

I am so lucky to wake up each day and get to work in the ever changing real estate industry as part of the new Berkshire Hathaway HomeServices. The opportunities and progressive technology I am able to offer my clientele is second-to-none. Berkshire Hathaway HomeServices Utah Properties helps me provide clients with the type of quality service they need.

The Sign of Confidence. Get to know us at: BHHSUtah.com © 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.

Salt Lake Realtor® Magazine welcomes information on new agents, brokerage happenings, awards, certifications and professional accomplishments. p. 28

Table of Contents Features 10 REAL Soccer and Private Property Rights

12 Why Every Agent Should ‘Own’ Their Marketing – Literally Jennifer Snyder

14 Protecting Private Property Rights Dave Anderton 20 Where are Global Buyers Searching in the United States? The National Association of Realtors®

22 Not Going It Alone

Lynn Olson

24 Repeat Business: Why Your Clients Really Stick By You

Melissa Dittmann Tracey

Columns 7 Realtors® Committed to Clean Air Angie Domichel Nelden – President’s Message

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

On the Cover: Central Park in New York City Photo: Image licensed by Ingram Image Photo left: Zion National Park Image licensed by Ingram Image

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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October 2014 volume 74 number 10 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

Copy Editor

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

At Home Realty

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

Sales Staff Chief Executive Officer Paula Bell Bryan Kohler Karen Malan Paul Nicholas

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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.

Realtors® Committed to Clean Air

recent report by Homefacts, a U.S. housing market tracking company, ranked Salt Lake City as the No. 7 “Most Polluted Housing Market” in the country. The report called attention to Salt Lake’s poor air quality, especially noticeable in the winter months when inversions trap dirty vehicle exhaust within the Wasatch Front mountain range.

The Homefacts report considered air quality, the presence of superfund sites, and the total number of environmental hazards per square mile in determining the markets with the worst man-made pollution. Air quality was measured by the average percentage of days per year, since 2008, in which levels of carbon monoxide, ozone, nitrogen dioxide, particulate matter, and other toxic substances were above a certain threshold. Salt Lake City, according to the report, showed hazardous air quality conditions during nearly 12 percent of the year. Other cities to make the Polluted Top 10 list included: St. Loius, Mo., Baltimore, Md; Hudson County, N.J.; Essex County, N.J.; and Denver, Colo. Environmental factors do play a role in determining where people buy homes. What many Realtors® may not realize is the Salt Lake Board of Realtors® is taking a proactive approach when it comes to clean air. This past summer the Board in partnership with the Utah Transit Authority gave away nearly 6,000 RideClear passes ($50 value each) to the public and to Realtors® that were good during the month of July on UTA bus, TRAX, FrontRunner and streetcar. The free passes were part of our commitment to improve air quality by sponsoring RideClear Summer. Based on actual users of the distributed passes, more than 14,000 vehicle equivalent cars were taken off Wasatch Front roads. Our commitment to RideClear Summer was made possible by a $25,000 grant from the National Association of Realtors®. Realtors® are making a difference when it comes to helping their communities. Thanks to all who participated in this important campaign.

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® October 2014

Happenings Median House Size is on the Rise

The U.S. Census Bureau recently released new data on the characteristics of newly built single-family homes in 2013. The report noted the median floor area of completed single-family homes in 2013 across the U.S. increased to 2,384 square feet, up 3 percent compared to 2,306 square feet in 2012. The median house size has increased 56 percent since 1973, the year the Bureau began tracking house sizes. In 1973 the median home size was 1,525 square feet. Of the 569,000 single-family homes completed across the country in 2013, less than half (44 percent) had four bedrooms or more. One in 10 home buyers of newly constructed single-family homes in 2013 paid cash.

Utah Ranks 14th Highest in Foreclosures In August there were 116,913 U.S. properties in some stage of foreclosure, an increase of 7 percent from the previous month but still down 9 percent from a year ago, according to the RealtyTrac U.S. Foreclosure Market Report. The report showed one in every 1,126 U.S. housing units with a foreclosure filing during the month. “The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,” said Daren Blomquist, vice president at RealtyTrac. With one of every 1,105 units in foreclosure, Utah ranked 14th highest among all states in foreclosure properties.

Utah Home Sales Down 2% Home sales (all housing types) across Utah fell to 4,033 closings in August, a 2 percent drop compared to 4,131 sales in August 2013. The statewide median home price in August increased to $220,000, a 2 percent rise compared to the same month last year. One in three homes sold across Utah by Realtors® in August were located in Salt Lake County. Utah County captured the next biggest share of closings with nearly one in five home sales.

Salt Lake Realtor® October 2014

In the News New Measures to Protect Realtors® Responding to the kidnapping and murder of real estate agent Beverly Carter, the Arkansas Realtors® Association has formed a safety task force headed by former association President Karen Crowson, a broker for Crye-Leike Real Estate Services in Benton. “We are going to be really working on specific things that we can put into place in Arkansas now and hopefully take it nationwide,” Crowson tells KTHV. Ideas being considered include not allowing agents to show homes alone, and having them vet clients by photographing their license plates and driver’s licenses. Carter’s death has sparked calls for the industry to implement uniform standards. “MLSs and Realtor® associations should work closely with broker members to create a set of agent-consumer ‘rules of engagement’ for their marketplace,” industry consultant Travis Wright wrote in a Sept. 29 Inman News guest piece. “Those rules could include standardized protocols for the identification and registration of all parties interested in property listings – before they go see homes with an agent.” Commenting on another, unrelated incident, last month broker J. Philip Faranda said in a guest piece that not only do brokerages “need to adopt safety procedures and policies, and strictly enforce them,” but that a public relations push is needed to “explain to consumers why we need to know if they are qualified before we meet them at a home. The public needs to understand why we can’t meet them on a moment’s notice just to earn a possible commission.” The Salt Lake Board of Realtors® is planning to host a course in agent safety later this month. Look for details at www. slrealtors.com.

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REAL Soccer and Private Property Rights The Salt Lake Board of Realtors® held its fourth annual Score for RPAC with REAL Salt Lake event on Saturday, Sept. 6th. The night included soccer, food and fun. More than 300 members supported the cause raising more than $30,000 for the Realtors® Political Action Committee (RPAC). Pictured (at left): Tony Ketterling (Equity Real Estate Advantage), Alisha Varela-Flores, Heather Roxburgh (RE/MAX Associates), Bill Heiner (Cannon and Co.) and Fernando Varela-Flores. Below: Chris McCandless (CW Real Estate Services), Curtis Bullock (CEO of the Salt Lake Board of Realtors®), Justin Allen (government affairs director for the Salt Lake Board of Realtors®), Angie Nelden (president of the Salt Lake Board of Realtors®) and Wayne Niederhauser (Utah Senate president). Opposite page (top clockwise): Bank of Utah representatives included: Scott Roberts (left), Julie Gallegos, John Gonzales, and Shane Gonzales. Claire Larson (D.R. Horton) shares a smile with Jake Anderton. Mandy and Curtis Bullock (CEO of the Salt Lake Board of Realtors®). Fred Larsen (Pillar to Post) at the buffet. Charlie Nelden with his sons Nick and Johnny. Corry Sue and Doug Cutler (front row). Zach, Cheryl Acker, Matt Ulrich (Ulrich Realtors®), and Conner Cutler.

Salt Lake Realtor® October 2014

Salt Lake Realtor速 October 2014

Why Every Agent Should ‘Own’ Their Marketing — Literally Relying on your broker may be convenient, but it could cost you business By Jennifer Snyder I believe that owning your own marketing is critical to being a successful Realtor®. By marketing, I specifically mean the tools and materials that you use to promote your real estate business. By owning your own marketing, you are not at the mercy of your broker or other platforms to earn your business. You are also branding yourself as a Realtor® and not your broker when you own your own marketing. Finally, you appear more professional and come across as more of an expert when you brand yourself differently than other Realtors®. I can think of no better examples of owning your own marketing than taking a look at websites, email marketing and social media. Your website Let’s say you join XYZ Real Estate Firm and they provide you with a template, their template, to use as

Salt Lake Realtor® October 2014

your website, and they do this for free. Great, you don’t have to spend a dime! Now you have plugged in your information to this template and all of a sudden you start getting a lead here and there. This is great, you think — “I love my website!” But the problem is, it isn’t your website. What happens when you decide to part ways with XYZ Real Estate? Well XYZ Real Estate keeps your website along with the leads that you have been receiving every month. The other issue with using XYZ Real Estate’s website: Who are you branding, you or XYZ Real Estate? When you own your own website, it is a custom website about you and one that is designed to bring value to your clients. You can create the content, the look and you can make all the changes you would like to on your website. Having your own custom website makes you stand out from the crowd, makes you look different than your co-workers and

shows that you are a professional Realtor® who has a true expertise in the local market. Now you can take your custom website and your leads with you, wherever you may go. This is why it is better to own your own website instead of relying on your broker to build one for you or using someone else’s template. Email marketing In the same vein as your website, you sign up for XYZ Real Estate’s email newsletter to be sent to your clients. You are happy because you don’t have to lift a finger and your email marketing is done! Now again the question has to be asked, who are you branding: your company or yourself? To present a professional image to clients, one of expertise, you have to show that you are invested in your business, and customizing your marketing tools is one way to accomplish that. When you own your own email newsletter, you can make the content unique and really brand yourself (as a Realtor®) and your message. Even better, if you do leave your company the only thing you have to change is the logo on the email newsletter. Social media I think one of the biggest cases for owning your own marketing comes from social media. Social media is important for marketing and, yes, it is something every Realtor® should use to grow their business. However, it shouldn’t be your main source of growing your business. Why? Because you really have zero ownership over the business you build on social media. It is someone else’s platform and you are at the mercy of them changing the rules whenever and however they see fit.

Let’s take a look at Facebook, for example. A few short years ago, you could build a Facebook page for your business and at that time, if someone liked your page, your posts would always show up in their news feed. You could also do something called “likegating,” asking people to like your page in exchange for a free report or e-book. Then Facebook began to change the business pages. First came the elimination of “like-gating.” Then came the Follow and Get Notifications buttons on the pages. In order to have the possibility of having your posts show up in news feeds, your likers had to select the Follow button and finally the Get Notifications buttons — and even then, it isn’t guaranteed. Now if you own your own website, own your own email marketing list and are getting leads from these two marketing mediums, these Facebook changes didn’t hurt you. For many people, that wasn’t the case! Building your business on someone else’s platform can really devastate your business when the platform owner changes the rules on you! To be successful in real estate you must invest in your business and own your own marketing. Don’t be at the mercy of your broker or a social media platform to get your business for you. By owning your own marketing, you can use tools that ensure you can get business wherever you are, and it shows that you are a true professional dedicated to your business. This is what will help make you a successful Realtor®! Jennifer Snyder is the owner and chief marketing consultant at Automated Marketing Inc. This article was reprinted in Salt Lake Realtor® Magazine with permission of Inman News.

Salt Lake Realtor® October 2014

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Protecting Private Property Rights Utah’s biggest brokerage takes a stand in fighting burdensome regulations affecting the real estate profession by donating $1 to RPAC for every closed transaction By Dave Anderton

Brady Long

Salt Lake Realtor®

Utah’s largest brokerage is making a big contribution to the Realtors® Political Action Committee (RPAC). And it’s all tied to an increasing market share of closed home sales. In 2012, Sandy-based Equity Real Estate made a formal commitment to contribute $1 to RPAC for every sales transaction its agents closed. With 9,000 real estate transactions in 2013 and a projected 12,000 sales this year (throughout its 10-state region) the momentum is building. “We are very supportive of RPAC,” said Brady Long, president and founder. “If we don’t have someone making sure our industry is protected it will be attacked. It’s ridiculous to think people aren’t willing to contribute pennies on a dollar to guarantee that tomorrow and the next day we have a way to enjoy this great profession.” Equity was the first brokerage in Utah that annually writes a check to RPAC. With 2,400

Realtors® (1,800 in Utah), the company ranks No. 1 in the most number of agents in Utah. “Equity was a pioneer in this regard,” said Justin Allen, director of government affairs for the Salt Lake Board of Realtors®. We now have several brokerages which are considering direct RPAC investments or are in the process of establishing ways for their agents to give directly to RPAC with every transaction.” Long likens RPAC contributions to an insurance policy, protecting the profession against taxes, fees and burdensome regulations. He points to a never ending battle in fighting proposed taxes on commissions, restrictive sign ordinances and changes in licensing requirements. Then there are the big issues, like the national push to eliminate the mortgage interest deduction. On a local level, transfer taxes imposed by states, counties and municipalities on the transfer of the (continued on page 18)

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Protecting Property Rights(continued from page 14) title of real property are taking a big chunk of home seller profits. In Washington state, for instance, home sellers must cough up nearly 2 percent of the sales price of a home to pay an excise and local option tax. On a $300,000 house sale, the tax amounts to $6,000. Fortunately, Utah is one of only 13 states with no transfer taxes, according to the National Conference of State Legislatures. However, bills to enact such taxes surface in Utah nearly every Legislative session, according to Curtis Bullock, CEO of the Salt Lake Board of Realtors®. “When such legislation is proposed, RPAC is what enables us as an association to kill the bill,” Bullock said. “Realtors® are on the front lines when it comes to taking action on private property rights.” For those who don’t think RPAC is important, Long recounts the “regulatory nightmare” the mortgage lending industry recently experienced and believes every Realtor® has an obligation in giving to RPAC. “One of the easiest and most insidious ways for bureaucrats to control the U.S. economy is through the banks, directing who gets – and who can’t get – loans and other essential banking services,” William M. Isaac, former chairman of the Federal Deposit Insurance Corp. and global head of financial institutions for FTI Consulting, recently told American Banker Magazine. “That’s happening today, and it ought to alarm and frighten all of us.” According to the National Association of Realtors,® “the purpose of RPAC is to raise and spend money to elect candidates who understand

Salt Lake Realtor® October 2014

and support Realtor® interests. The money to accomplish this comes from voluntary contributions made by Realtors®. These are not members’ dues; this is money given freely by Realtors® in recognition of how important campaign fundraising is to the political process. RPAC doesn’t buy votes. RPAC enables Realtors® to support candidates that support the issues that are important to their profession and livelihood. The cost of making the Realtors® voice heard at the national, state and local levels grew dramatically with the Citizens United vs. Federal Election Commission Supreme Court ruling in 2010. Now that unlimited soft dollars can be used when communicating with the public to influence voter opinions, competing in today’s new political landscape is more challenging – and expensive – than ever.” In 2002, Long founded Equity from the basement of his home. The brokerage operates on flat-fee model of $499 per transaction. “The fee is the same if you sell a mobile home or if you sell a multi-million dollar home,” Long said. The company has 14 branch brokerages in Utah from St. George to Ogden. Long’s goal is to reach 100,000 agents across the country in the next 10 years and create a national brand name in real estate. “At the end of the day RPAC helps all of us,” Long said. “We want to take care of real estate agents. RPAC is the way to do it.” Dave Anderton is the director of communications for the Salt Lake Board of Realtors®.

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Where are Global Buyers Searching in the United States? Top 10 U.S. Cities Searched by International Consumers for August 2014 By The National Association of Realtors® Data from realtor.com® shows the countries from which consumers were most active on realtor.com® and realtor.com® International in August 2014. It also shows which U.S. cities they were most searching during that month Canada: Las Vegas, Detroit, Los Angeles, New York, Fort Lauderdale Australia: Los Angeles, New York, Detroit, Las Vegas, San Francisco United Kingdom: Los Angeles, New York, Orlando, Houston, Beverly Hills Brazil: Miami, Orlando, New York, Los Angeles, Kissimmee Germany: Los Angeles, New York, Miami, Colorado Springs, Cape Coral

Salt Lake Realtor® October 2014

France: Los Angeles, Miami, New York, Miami Beach, San Francisco Mexico: San Diego, San Antonio, Laredo, Miami, El Paso India: New York, Los Angeles, Chicago, San Jose, Houston Italy: New York, Miami, Los Angeles, Miami Beach, Detroit Spain: Miami, New York, Los Angeles, Miami Beach, Fort Lauderdale Russian Federation: New York, Los Angeles, Miami, Chicago, San Francisco Switzerland: Philadelphia, Miami, Los Angeles, New York, Chicago Turkey: New York, Los Angeles, Miami, Beverly Hills, Chicago Netherlands: Los Angeles, New York, Miami, Fort Lauderdale, Las Vegas

Service Directory

Sweden: Los Angeles, New York, Miami, Beverly Hills, Fort Lauderdale Japan: San Diego, Honolulu, Los Angeles, San Antonio, Jacksonville Ireland: New York, Los Angeles, Orlando, Dallas, Chicago South Korea: Los Angeles, New York, Orlando, San Diego, Irvine Philippines: Los Angeles, Las Vegas, San Antonio, Southgate (MI), San Diego China: Los Angeles, San Francisco, New York, Seattle, Houston

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Top 10 U.S. Cities Searched by International Consumers for August 2014: Los Angeles, CA Miami, FL Orlando, FL Las Vegas, NV New York, NY Detroit, MI Houston, TX Fort Lauderdale, FL San Francisco, CA Chicago, IL

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Top 10 countries searched on Realtor.com International (excluding U.S.) for August 2014: Italy Jamaica Mexico Dominican Republic Costa Rica Spain Canada France Bahamas Greece

Salt Lake Realtor® October 2014

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Not Going It Alone Nationally, 25 percent of buyers are single and often depend on practitioners for emotional support as well as transaction knowledge By Lynn Olson For Marianne Guenther Bornhoft, green, SRES, working with single women—40 percent of her clientele—was a natural fit. “I’ve learned that it’s easy to work with people you can identify with and who can identify with you,” says Bornhoft, a sales agent with Windermere Real Estate in Spokane, Wash. “I bought a house on my own when I was divorced, so I know that market intimately.” Nationally, 25 percent of buyers are single, according to the latest Profile of Home Buyers and Sellers from the National Association of Realtors®, with nearly twice as many single women as men (16 percent vs. 9 percent) purchasing homes. Though the share of homes bought by singles has been stifled in recent years, first by the recession and then by tight lending conditions, many practitioners are finding success serving single clients, regardless of their own marital status. The bond between those real estate

Salt Lake Realtor® October 2014

pros and their single clients can be especially strong. “Buying and selling real estate and moving is already a highly emotional process. If you’re doing it alone, it can be scary and stressful,” says Tiffany Stevens, gri, sales agent with Phyllis Browning Co. in San Antonio. “I keep that in mind when working with my single clientele, so that they never feel like they are completely alone in the process,” she says. Unmarried people may, in fact, have more frequent real estate needs than couples and families because they tend to be more mobile. Between 2012 and 2013, 12 million never-married and 3 million divorced people moved homes compared with 9.9 million marrieds, according to Census Bureau data. Christopher Mills, sales agent with Keller Williams Capital Properties in Washington, D.C., says many singles who buy homes in the District’s hot H Street Corridor change jobs or need to move within five

years. For them, the issue is finding a home that can transition to a rental property easily.

Rising Purchasing Power The rising purchasing power of single women suggests they’ll be an important demographic for decades to come. Currently, six out of 10 college graduates (whose incomes are typically far higher than those of high school grads) are female, according to the U.S. Department of Education. Income parity is also improving: Among workers ages 25 to 35, women’s hourly wages in 2012 were 93 percent those of men, compared to 84 percent for women of all ages, according to a Pew Research Center study. To reach single women, community involvement is key, according to Bornhoft, who has worked with more than two dozen nonprofits in her area. She serves on the board of Visit Spokane, a local visitors’ bureau, and targets her advertising within the tourism industry, where a lot of women happen to work. “I’ve sold a lot of properties to single clients who are successful professional women,” Bornhoft says. Many of her clients end up being lifelong friends as well as repeat -customers—in fact, one client has purchased seven homes from her. “You have to be a confidant, a financial adviser, sometimes a parent, and a friend.” Social media can play a powerful role in strengthening contacts. Stevens reaches singles on Fridays by posting local events on Facebook. “Someone who’s single is likely trying to get out there and meet friends,” she -says “[My posts] can make them feel I’m more connected and really know the community.” She has found single women to be a powerful referral sources. “If you’re really there for

them, they rave about you to everyone they talk to. You didn’t just get their house sold; you took care of them,” Stevens says. “They won’t forget that.” Conversely, if the customer is unhappy, her friends will likely know that as well. This article was reprinted from Realtor® Magazine Online, September 2014, with permission of the National Association of Realtors®. Copyright 2014. All rights reserved.

Statement of Ownership, Management and Circulation 1. Location of known Office of Publication: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 2. Location of known Headquarters of General Business offices of the Publisher: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 3. Publisher: Mills Publishing, Inc., 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 4. Editor: Dave Anderton, Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 5. Owner: Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 6. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None. 7. Extent and nature of circulation: Average No. Copies Each Issue During Preceding 12 Months

Copies of Single Issue Published Nearest to Filing Date

6,364

6,550

1. Mailed Outside-County Paid Subscriptions

1,256

1,271

2. Mailed In-County Paid Subscriptions

4,859

4,904

3. Paid Distribution Outside the Mails, including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS

A. Total Numbers of Copies Printed B. Paid Circulation

4. Paid Distribution by Other Classes of Mail

C. Total Paid Distribution

6,115

6,175

1. Free or Nominal Rate Outside-County Copies

2. Free or Nominal Rate In-County Copies

3. Free or Nominal Rate Copies Mailed at Other Classes through the USPS

4. Free or Nominal Rate Distribution Outside the Mail

110

E. Total Free or Nominal Rate Distribution

140

D. Free or Nominal Rate Distribution

F. Total Distribution

6,255

6,315

G. Copies Not Distributed

108

235

H. TOTAL

6,363

6,550

I. Percent Paid

98%

8. I certify that all statements above are correct and complete.

Dan Miller, President of Mills Publishing, Inc.

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Salt Lake Realtor® October 2014

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Repeat Business: Why Your Clients Really Stick By You The reason your clients decide to use your services multiple times can run much deeper than just because they thought you did a good job By Melissa Dittmann Tracey The key to customer retention: Keep your clients satisfied with your services and they’ll keep using you again and again. But satisfaction isn’t always at the core of why customers return. Some customers may return for other reasons, and in some cases, those reasons can even backfire for your business. Clients sometimes “lock in” to service relationships over the long term not because they’re necessarily satisfied with the service provided but rather out of a feeling of obligation or even a perceived nuisance of having to find someone else, according to research by Mary P. Harrison, assistant professor of marketing at Birmingham Southern College, and Sharon E. Beatty, professor of marketing at University of Alabama. In the study, Harrison and Beatty conducted indepth interviews with customers who felt locked in — both in positive and negative ways — to service relationships (real estate was among the industries analyzed). Becoming aware of why clients may be sticking by you through transactions can help you foster more positive, loyal relationships with your repeat clients. The insight may even make you more competitive, too, by knowing why other clients may be latching onto your competitors and how you may be able to offer your services to those who are being loyal due to the perceived

Salt Lake Realtor® October 2014

barriers of switching agents, the study suggests. It’s also important to become aware of those clients who may be locking in to you for the wrong reasons, Harrison says. After all, you may be assuming your repeat clients are among your most loyal and raving fans. But repeat clients who are with you because they feel obligated or because they think finding another real estate professional will be too difficult can be detrimental to your reputation around town. “We were aware of these obligation factors at the surface, but we often don’t realize how strong those factors are and what role they can play in keeping your client base,” Harrison says. That begs the question: Do you sometimes need to give your clients permission to leave? How Strong Is Your Repeat Business? Repeat business can be a big chunk of a salesperson’s customer base. It’s the reason why most salespeople implement customer retention, keep-intouch marketing systems via marketing newsletters, postcards, and regular personal contact. Research has long pointed to the benefits of using marketing aimed at boosting customer retention. Repeat clients tend to spend more money over time, offer more customer referrals and word-of-mouth recommendations, make fewer demands on service professionals, and can even lower your business costs since they’re cheaper than acquiring new customers, writes author Frederick F. Reichheld in The Loyalty Effect (Harvard Business School Press, 1996). But how many customers actually come back? The average real estate professional earned 21 percent of his or her business from repeat clients and customers, according to the 2013 National Association of Realtors® Member Profile. For Realtors® who have been in the business 16 years or more, their repeat clients often make up a bigger portion of their business: about 40 percent of their client base, according to the survey. Why Clients Lock In Locked-in clients are what most business professionals seek. They are clients who feel bonded to you and are unwilling to go anywhere else for their present and future real estate needs. In Harrison and Beatty’s research, they found that clients often feel locked in to service providers due to four main reasons: 1. Relational benefits and satisfaction (in other words, they’re happy with the job you did thus far); 2. Perceived switching costs (they believe it would be too big a nuisance to find anyone else); 3. Obligatory factors (possibly a family and friend referred you to them and now they feel obligated to use you); 4. Personality factors (they may be resistant to change or even may want to avoid the discomfort in hurting your feelings by using someone else). (continued on page 30)

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Housing Watch Salt Lake Home Sales Drop 8% in August; Davis County Reports Rising Sales Nationally, existing-home sales are expected to be stronger in the second half of the year behind improved inventory conditions, continuously low interest rates and slower price growth. Overall, Lawrence Yun, NAR’s chief economist, forecasts existing-homes sales to be down 3.0 percent this year to 4.94 million, compared to 5.09 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and 4 and 5 percent next year.

Home sales (all housing types) in Salt Lake County fell 8 percent in August to 1,340 units, down from 1,461 units sold in August 2013, but pending sales in August showed a 9 percent rise. “There is a consensus among economists that mortgage interest rates will begin to rise in March 2015,” said Angie Domichel Nelden, president of the Salt Lake Board of Realtors®. “With the anticipated rate hikes, we should see an increase in home sales in the last quarter of this year and into the first quarter of next year as home buyers rush to beat the rising interest rates.”

According to NAR’s Profile of Home Buyers and Sellers, 81 percent of first-time buyers in 2013 who financed their purchase obtained a conventional or FHA loan. Overall, first-time homebuyers have been less prevalent from the housing recovery, representing less than a third of all buyers each month for the past two years.

The median price of homes and condominiums sold in Salt Lake County during the month of August increased to $239,717, up 3 percent compared to a median price of $232,500 in August 2013. The cumulative days on the market for homes sold in August in Salt Lake County increased to 32 days, up from 23 days a year ago.

Yun says first-time buyer participation should gradually improve despite tight credit conditions and the inevitable rise in rates. “The employment outlook for young adults is brightening and their incomes finally appear to be rising,” he said. “Jobs and income gains will help repay student debt and better position first-time buyers, setting the stage for improved sales growth in upcoming years.”

In Davis County, home sales in August witnessed a 7 percent increase at 460 sales compared to 431 sales a year ago. The median home sales price in Davis County in August increased to $227,300, up 3 percent compared to $219,900 last year.

Sales (all housing types) Year-Over-Year (down 8%)

1,461 26

Salt Lake County

Salt Lake Realtor® October 2014

1,340

Salt Lake County Median Price (all housing types) Year-Over-Year (up 3%)

$232,500

$239,717

2 - C OL OR

Salt Lake County Days on Market (all housing types) Year-Over-Year (up 39%)

Sales $ Davis County Median Price (all housing types) Year-Over-Year (up 3%) $227,300

$219,900

Salt Lake County

Pending Sales (up 9%)

1,460

1,338

Sales

Davis County Sales (all housing types) Year-Over-Year (up 7%)

460

431

Salt Lake Realtor速 October 2014

REALTOR® Connections Q&A: Dave Anderton Dave Anderton is the director of communications for the Salt Lake Board of Realtors® and the managing editor of Salt Lake Realtor® Magazine. He is a former journalist. Q: Can I contribute news items or articles to Salt Lake Realtor® Magazine? A: Yes. Salt Lake Realtor® Magazine welcomes information on new agents, brokerage happenings, awards, certifications and professional accomplishments. Article submissions relevant to the real estate profession also are welcome and are published at the discretion of the Salt Lake Board of Realtors®. Please include photos (high resolution jpg images) with submissions. News information can be sent to dave@slrealtors.com. Q: Do my dues dollars pay for the magazine? A: No. All costs of production, printing and distribution of Salt Lake Realtor® Magazine are entirely paid for by advertisers in this magazine. The magazine is mailed monthly to roughly 6,500 members of the Salt Lake Board of Realtors® and is the official magazine of the Board. You can help support the magazine by advertising. For advertising rates please contact Mills Publishing at 801.467.9419. Q: Can I find the magazine online? A: Yes. The current issue of the magazine is at www.slrealtors.com. At this time there are no electronically archived editions of Salt Lake Realtor® Magazine. Some members have expressed environmental concerns over a printed magazine. The paper used in this magazine comes from trees in managed timberlands. These trees are grown specifically to make paper products and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

Tech Summit Draws 250 People

Pictured above: Emily Norris, director of operations for the Salt Lake Board of Realtors®; Angie Nelden, president of the Salt Lake Board of Realtors®; and Jason Eldredge, vice president of sales at Property Landing.

The Salt Lake Board of Realtors® held its annual Tech Summit on Sept. 19 at the Realtor® Campus. Classes included topics on Google apps, Facebook, the MLS, paperless transactions, and the iPad. A Genius Bar was also available offering members 20-minute one-on-one help from tech instructors. “The attendance at this year’s Tech Summit was the highest ever,” said Kelley Anderson, director of education and compliance for the Salt Lake Board of Realtors®. “We look forward to continuing to expand the event.”

Salt Lake Realtor® October 2014

On the Move Coldwell Banker Residential Brokerage announced that it has named veteran Realtor® Tami Fowers managing broker of its Bountiful-South Davis office. Fowers has enjoyed a successful 20-year real estate career and has received numerous awards with Coldwell Banker Residential Brokerage as a top-producing agent. In her new position, she will oversee a sales team of 35 real estate professionals in the South Davis County area. Over her 20-year real estate career, Fowers has focused on new construction. Her long list of awards includes the Lifetime Salesmaster Award from the Northern Wasatch Association of Realtors®, Coldwell Banker’s International President’s Elite Award, and top listing, selling and closing agent in the North Davis office of the company. Equity Real Estate welcomes the following new Realtors®: Mary Roe, Caroline Prince, Greg C. Smith, Debbie Monroe, Lindsay Millett, Merritt Taylor, Tammy Nakamura, Wesley Call, Connie Strang, Pedro Balcazar, Edwin Morillo, Jennifer Spear, and Wesley R. Brown. Utah’s nonfarm payroll employment for August 2014 grew by an estimated 3.5 percent, adding 44,700 jobs to the economy as compared to August 2013. Utah’s current employment level registers 1,332,900. August’s seasonally adjusted unemployment rate registered 3.6 percent, no change from the prior month’s rate. Approximately 51,100 Utahns were unemployed in the month and actively seeking work. The national unemployment rate was virtually unchanged, dropping by one-tenth of a percentage point from July. “Utah’s job growth continues at a strong and steady rate,” reported Carrie Mayne, chief cconomist at the Department of Workforce Services. “Although the household survey has shown a decline in Utah’s labor force volume, expansion in the job market shows strong hiring activity. Many employment opportunities exist across the state for Utah workers.”

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Repeat Business(continued from page 24)

Interestingly, Harrison and Beatty’s research notes that customers often feel locked in not just by one of these factors but by a combination. Salespeople may want to take note of what may be the strongest pull for their repeat clients. In the study, 93 percent of the 44 customers interviewed mentioned being satisfied with core services or the relationship benefits for why they stuck with a service provider. But 82 percent of the time, customers also mentioned obligatory factors for sticking with the provider; similarly, 82 percent also mentioned switching barriers for why they also chose to use the provider again. When Clients Stick by You for the Wrong Reasons “You don’t want a relationship that is strictly obligatory,” Harrison says. “You want them to stay because of satisfaction and the positive benefits they perceive with staying with you.” Dissatisfied clients who stay can lead to both negative emotions in working together as well as negative word-of-mouth about your business. “Clients may feel like hostages and advise others to go elsewhere,” the researchers note in the study. But how do you know your clients’ motives for returning? One way to know: Ask them. You can do this by surveying them after closing to gauge their satisfaction. The surveys may cue you in to how they feel post-closing and why they decided to use you in the first place. It may give you more perspective on your relationship. Several companies can help you do this, such as the Realtor® Excellence Program or RealSatisfied, among others. For example, Quality Service Certification’s Realtor® Excellence Program sends post-closing surveys to buyers and sellers to ask them to rate their satisfaction with your services in several areas, such as negotiating skills, communication, and thoroughness. It also asks how likely they are to use your services again and whether they’d refer you to their friends. The survey also asks what their primary reason was for selecting you, such as a friend’s recommendation, because they already knew you personally, your reputation, or other factors. Besides surveying your clients, you can also look for subtle cues that may show you that your clients may not be as into you as you once thought. “Oftentimes in relationships, it becomes obvious when a person is dissatisfied in some way,” Harrison says. “They start by letting us know subtly by getting really silent or not returning our calls anymore. If you realize a client is dissatisfied with a service and for some reason feel like they can’t leave and you don’t think you can repair the relationship, you may need to allow them to explore other opportunities as their needs change. You have to consider whether this relationship is beneficial to both of you.”

Salt Lake Realtor® October 2014

Locking in Clients for the Better Clients who are returning because they are satisfied with your services are key to building positive locked-in relationships. But never take their repeat business for granted. They could be tempted to go elsewhere, particularly if their real estate needs change. Through subtle gestures, you can instill greater loyalty among your satisfied clients. Harrison and Beatty suggest the following four methods: Remind them about your history. Draw a client’s attention to the length of time that you’ve been working together, such as recalling successes in your last transaction together. Your history can be a powerful, yet subtle motivator to keep them coming back. Value reciprocity. The feelings of “I owe you” and “you did something great for me” can be powerful influencers. “You want to stay with someone who helped you in the past,” Harrison says. “There is a strong reciprocity effect, if you’re willing to do something and go out of the way for someone else. Often, people will respond and feel obligated to stay with you and refer you to their friends.” This can be something seemingly small, too, such as recommending a contractor or painter or offering up a small token of appreciation like a gift during the holidays. “After receiving a benefit, people feel a deep-rooted psychological pressure to reciprocate,” according to a 2009 Keller Center study on gratitude by Robert W. Palmatier. “The failure to repay obligations can lead to guilt.” Thank them. Don’t forget to thank your clients for their business and long-time commitment to you. “People respond to gratefulness,” Harrison says. Some real estate professionals say thanks verbally or with a handwritten card; others host parties to thank their past customers, like holiday gatherings or customer appreciation cookouts. For example, Diane Cardano with Cardano Realtors®, in Abington, Pa., hosts a themed holiday party each year at her home for 350 of her “raving fan clients” — her past clients who have introduced her to other people in need of real estate services during the year. It serves as a way to thank her past clients and keep in touch. Show them you’re already in tune with their needs. Remember their preferences, stories, and important life events. Make notes in your contact management system, and weave them into your interactions. “If an agent understands her clients’ personalities and can incorporate this insight into segmentation activities, then she can take steps to encourage her clients to stay,” according to Harrison and Beatty’s research. “For example, an agent could offer support to make changes easier, or avoid introducing new technologies to her clients who are resistant to change.” This article was reprinted from Realtor® Magazine Online, July 2014, with permission of the National Association of Realtors®. Copyright 2014. All rights reserved.

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