Salt Lake Realtor – September 2017 by Mills Publishing Inc.

Salt Lake

REALTOR

Â®

Maga zine

slrealtors.com

September 2017

Dave Robison is $50K Major RPAC Investor

FSBOs Net Lower Profits p. 14

Three Ways to Resolve an Ethics Dispute p. 30

THE BEST OF CITY & MOUNTAIN LIVING FOR THEM $500 CITY CREEK GIFT CARD FOR YOU Start showing your clients the magic of City Creek Living today with a sparkling creek running through canyon-like walkways, doorstep access to world-class shopping and Salt Lakeâ&#x20AC;&#x2122;s best entertainment, including the new Eccles Theater. Living here is perfect for carefree lock-and-leave travel, no yard work and less driving. As our thanks, receive a $500 City Creek gift card upon closing when your client goes under contract by December 30, 2017.

Tour designer models by appointment Chris Corroon | 435.901.0444

Bonnie Shepherd | 801. 815.7744

Corrooncl@CityCreekSLC.com

Shepherdb@CityCreekSLC.com

CityCreekLiving.com

Kickoff the season with up to $40,000 in prizes. The lucky winner will receive one of the following: Dream Adventure for Two, New Home Down Payment, Vehicle Purchase or Lease Option, Home Project Makeover or Cash.

Put your clients in the Red Zone to score on this amazing sweepstakes. Have them enter online at snmc.com/win

Turning Houses into Homesâ&#x201E;˘

NO PURCHASE NECESSARY TO ENTER OR WIN. Open to legal residents of the United States (excluding NY, RI, AK) or DC, 18+ years of age as of the date of entry. Not open to employees of Sponsor, their subsidiaries and affiliates and their immediate families. Void outside the U.S. and wherever prohibited by law. Starts 12:00 AM ET 03/15/17 and ends at 11:59 PM ET 5/31/18. Odds of winning depend on the total number of entries. *Approximate retail value of prize pool is $51,400. For Official Rules visit www.snmc.com/win. All organization names and logos are trademarks of respective owners who do not provide, sponsor, endorse or have connection with this flyer. Sponsor: SecurityNational Mortgage Company.

Table of Contents Features 10 Technology, Inventory and

Competition Among Firms’ Top Challenges National Association of Realtors®

14 Study: FSBOs Net Significantly Lower Profits

16 Report: Short Supplies Pummel Home Sales

National Association of Realtors® 18 Are You Worthy to Help People Realize the American Dream Curtis A. Bullock

20 Don’t Let the Age Gap Damage Your Business Relationships

Pamela Dittmer Mckuen

30 Three Ways to Find a Resolution for an Ethics Dispute Holly Robbins

Columns 7 Demand for Housing to Accelerate Troy Peterson – President’s Message

Departments Half of brokerages expect competition to increase in the next year from non-traditional market participants. p. 10

8 Happenings 8 In the News 26 Housing Watch

28 Realtor® Connections 28 On the Move

On the Cover: Dave Robison recently achieved $50,000 in RPAC investments over his lifetime. He is the third member of the Salt Lake Board of Realtors® to achieve the milestone. Photo: Dave Anderton Photo left: © pressmaster / Adobe Stock

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.

Salt Lake

REALTOR slrealtors.com

Maga zine

September 2017 volume 77 number 9 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.

LETâ&#x20AC;&#x2122;S TALK INVENTORY From Weber to St. George, Ivory Homes has 300 available homes waiting to be sold! Ivory Homes is the right move for any buyer. We love paying realtor commissions!

IVORYHOMES.COM

CONGRATULATIONS To Citywide CEO

Teresa Whitehead for being recognized in Utah Business Magazine’s Women in Business Feature Under her guidance, CITYWIDE has grown from 100 employees to over

800 employees

And the company is thriving.

496%

GROWTH in

VOLUME since 2011

370%

GROWTH in

UNITS since 2011

Learn more at: citywidehomeloans.com 9785 South Monroe Street, Suite 200 • Sandy, UT 84070 Citywide Home Loans NMLS #67180 • Equal Housing Lender

Salt Lake

REALTOR

® ®

Maga zine

slrealtors.com slrealtors.com

President Troy Peterson Equity Real Estate

Directors

First Vice President Adam Kirkham Summit Sotheby’s International Second Vice President Scott Robbins Coldwell Banker Residential Treasurer J. Scott Colemere Colemere Realty Associates Past President Cheryl Acker Utah Key Real Estate CEO Curtis A. Bullock

M. Brock Andersen Berkshire Hathaway Kimberly Farber-Bowen IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Alicia Holdaway Equity Real Estate Mike Morgan Realtypath Mary Olsen Utah Key Real Estate Jodie Osofsky Utah Key Real Estate Steve A. Perry Realtypath Michael Rowe Berkshire Hathaway Randal Smith Equity Real Estate Matthew Ulrich Ulrich Realtors®

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Jessika Huhnke Ken Magleby Patrick Witmer

Office Administrator Cynthia Bell Snow

Sales Staff Paula Bell Karen Malan Paul Nicholas

Administrative Assistant KellieAnn Halvorsen

Office Assistant Jessica Snow

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.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 achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which 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 expressed by writers and persons 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 and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and 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 REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

Demand for Housing to Accelerate

surge in Salt Lake home prices is the result of the strongest seller’s market ever before. Demand is strong, household formations are proliferating, and many people are moving to Utah in search of better economic opportunities. Many people have asked me if today’s high prices indicate there is a housing bubble. Of course, in order to have a housing bubble you need excess housing inventory, something that is in short supply along the Wasatch Front. This year more than 28,000 new households will be created, according to the University of Utah’s Kem C. Gardner Policy Institute. Yet, Utah home builders will only complete 21,000 new homes. It will likely take years before the gap is eliminated. Furthermore, a new study indicates that Utah’s population is projected to increase to nearly 6 million people over the next 45 years. All Utah counties will see a surge in their populations. Utah County will experience the largest numeric increase, adding more than 1 million new residents. “This means nearly four of every 10 new Utah residents will live in Utah County,” the study said. “Salt Lake County is projected to remain the most populous in the state, reaching nearly 1.7 million people by 2065.” James Wood, Ivory-Boyer Senior Fellow at the Institute, believes the coming wave of new residents will only accelerate demand for housing and will increase prices in the housing market going forward. Home prices already in Salt Lake County have reached an all-time high. In the second quarter, the median single-family home price climbed to $330,000, a 29 percent increase compared to the previous peak reached in 2007 when prices topped $256,000. Even after adjusting for inflation, home prices today are 10 percent above the previous pre-recession peak price. Home builders and elected officials have an obligation to ensure more housing options are available to meet Utah’s future staggering growth. Failure to act will result in more severe housing shortages, which will drag the economy. In California, a study revealed that the lack of housing costs the Golden State $143 billion to $233 billion annually. “Just how hard is it to buy a home in California? Hard. Really hard,” The Mercury News reported. “The median California home is now priced 2.5 times higher than the median national home. Just over half of California households own their homes – the third lowest rate in the country, and the lowest rate within the state since World War II.” Utah must do better. Now is the time to plan ahead. Strongholds on new housing development could lead to more challenging problems down the road. Just look at California.

Troy Peterson 2017 President

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

September 2017 | Salt Lake Realtor ® | 7

Happenings

In the News Davis County Realtor® Elected to Board of Directors

Media Feature Stories on Rising Wasatch Front Home Prices Troy Peterson, president of the Salt Lake Board of Realtors® and owner of Equity Real Estate Solid, was recently featured in several local media stories on rising home prices along the Wasatch Front. KSL-TV, ABC 4 News, KSL Radio, The Salt Lake Tribune, Utah Business Magazine, and Deseret News each ran stories highlighting Wasatch Front home prices climbing to their highest point ever before. In the second quarter, the median Wasatch Front single-family home price reached $300,000, up from $275,000 a year ago. In Salt Lake County, home prices increased to $330,000, a 10 percent rise year-over-year and a 29 percent rise over the past 10 years.

Realtors® Account for 60% of New Homes Sold in Daybreak More than 500 Realtors® and other professionals attended the recent Daybreak Parade of Homes brunch. The event featured six new Parade models. A delicious brunch and lunch were served, courtesy of Daybreak Communities. Several prizes were given away including a $500 Nordstrom gift card to Nikole Andersen of Berkshire Hathaway Home Services, one year of free MLS dues to Jodie Osofsky of Utah Key Real Estate, and a two-night stay to The Grand America Hotel to Mary Orton of Utah Key Real Estate. Within Daybreak, year-to-date, there have been 282 new homes sold and 198 resales. Realtors® account for 60 percent of all new home sales in the community, according to Barbara Breen, manager of marketing outreach for Daybreak Communities.

8 | Salt Lake Realtor ® | September 2017

Sophie Reece, a Realtor® with Berkshire Hathaway Home Services, was elected to the Davis County position on the Board of Directors of the Salt Lake Board of Sophie Reece Realtors®. Sophie has been a full-time Realtor® for 11 years. She has served on the Christmas in July and Shrimpfest committees, and in leadership positions on the Women’s Council of Realtors®.

Home Prices Rising Too Fast Listings in July typically went under contract in under 30 days for the fourth consecutive month because of high buyer demand, but existinghome sales ultimately pulled back as large declines in the Northeast and Midwest outweighed sales increases in the South and West, according to the National Association of Realtors®. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 1.3 percent to a seasonally adjusted annual rate of 5.44 million in July from a downwardly revised 5.51 million in June. July’s sales pace is still 2.1 percent above a year ago, but is the lowest of 2017. Lawrence Yun, NAR chief economist, said the second half of the year got off on a somewhat sour note as existing sales in July inched backward. “Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” he said. The median existing-home price for all housing types in July was $258,300, up 6.2 percent from July 2016 ($243,200). July’s price increase marks the 65th straight month of year-overyear gains.

Collaboration is not an option. It’s a promise. –

When we work with Homebuyers, we build homes around their lives not the other way around. The same is true when we work with you. At David Weekley Homes, we work hand-in-hand with you and your Team to ensure that your Clients’ path to homeownership is as seamless and fulfilling as possible – and so is your experience in helping them get there. That’s The Weekley Way. At David Weekley Homes, we love taking care of you and your Clients by: • Encouraging you to register your Clients with us – we promise it will be easy • Paying you complete commissions based on a home’s full sales price, VISIT US IN ALL OUR FINE COMMUNITIES not just the base price • Making you look good by guiding your Clients through the building process and beyond

S A LT L A K E C I T Y 215

Great Salt Lake 80

SLC International Airport Lincoln Highway

1. Holladay Town Center Court

Salt Lake City

S. 700 E.

201

Belt Route

From the $625s, 800-240-7487 Call for Appointment

From the $470s, 801-810-2564 7392 South Canyon Centre Parkway Cottonwood Heights, UT 84121

215

Holladay

West Jordan

E. 10600 S.

151

South Jordan

W. 11400 S.

175

Jordon River Parkway

The Villas at Daybreak From the $290s 801-810-2564 The Enclave at Highland Park From the $290s The Bungalows at Highland Park From the $360s 801-810-2624

4. Holbrook Farms The Estates From the $440s The Villas From the $295s 800-240-7487

Creekside Village 60' From the $380s 801-810-2574

E. 12300 S.

154

3. Daybreak

Cottage Courts From the $280s

W. 10400 S.

Bungalows From the $385s Cottages From the $500s Estate From the $550s 800-240-7487

untain View Corridor Mo

Union Boulev ard Fo r t

a Wa s

E. 5600 S. Belt Ro ute

215

From the $590s Call for an appointment 800-240-7487

2. Deer Run Preserve

4. Daybreak 10451 South Abbot Way South Jordan UT 84095 801-810-8574 Cottage Courts From the $280s Creekside Village 60’ From the $370s Lake Village 60’ – Close out! From the $485s The Villas at Daybreak NOW OPEN! 800-240-7487 From the $280s The Enclave at Highland Park The Bungalows at Highland Park Coming Soon! 800-240-7487

W. 5400 S.

3. Deer Run Preserve Bungalows From the $385s, 801-810-2620 14122 S Deer Arch Lane Draper, UT 84020 Cottages From the $500s, 800-240-7487 Estates From the $570s, 801-810-2575 986 E. Deer Heights Court Draper, UT 84020

E. 1700 S.

The East Bench 266

Bangerter Highway

2. Canyon Centre Court – Close out!

E. 400 S.

1. Holladay Town Center Court

Homes from the $280s to $590s+ in the Salt Lake City area 800-240-7487

an d ghl Hi

Bangerter Highway

ve Dri

5. Holbrook Farms COMING SOON! 800-240-7487 Lehi UT 84043

4 W. 2100 N.

See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements. Copyright © 2017 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLCA90299)

Technology, Inventory and Competition Among Firms’ Top Challenges Half of firms expect competition to increase in the next year from non-traditional market participants. By The National Association of Realtors®

eeping up with technology, maintaining sufficient inventory, competition from nontraditional participants and profitability are among the biggest challenges for real estate firms, according to the National Association of Realtors® 2017 Profile of Real Estate Firms. Conversely, for a third year in a row, the survey found the vast majority of firms have an optimistic outlook for the future of the industry’s growth. Although expectations have slightly decreased from last year’s survey, firms remain confident and expect profitability from all real estate activities to increase or stay the same over the next year. “Real estate firms continue to have a very positive outlook on the state of the industry. As the survey found, 90 percent of real estate firms expect net income to increase or remain the same over the next year,” said NAR president William E. Brown, a second-generation Realtor® from Alamo,

10 | Salt Lake Realtor ® | September 2017

California and founder of Investment Properties. “But for the second year in a row, low inventory and high prices have led to a slight decrease in real estate firms’ sales volume.” The report is based on a survey of firm executives who are members of the National Association of Realtors® and provides insight into the business characteristics and activity of firms, benefits and education provided to agents and outlook for the future. Real estate firms are sensing strengthened competition this year, as 50 percent of firms expect competition to increase in the next year from non-traditional market participants, up from 43 percent in 2016. Half of firms expect competition during the same period to increase from virtual firms (up from 47 percent in 2016), while only 15 percent expect competition will increase from traditional brick-and-mortar firms.

Congratulations to Julia Borst for being named one of MPA’s Elite Women of 2017

“

We are growing! We are passionate about service to our customers and our loan officers. We want to disrupt the industry with innovation driving an exceptional client experience. As a Team, we are clear on what success looks like and how we are going to execute at a high level.”

Mortgage Professional America has recognized Guaranteed Rate’s Julia Borst as one of 75 Elite Women in the industry, a prestigious honor that cements her place among the best of the best in the business. The path to the top starts with a proven platform. Your path from good to GRATE starts here!

If you want to learn how to be the best of the best, contact me today!

Julia G. Borst SVP, Divisional Sales Manager 6900 South 900 East, Suite 150 • Midvale, UT 84047

O: (801) 890-7660 x7660 C: (801) 362-7159 Julia.Borst@rate.com Rate.com/juliaborst

Julia G. Borst NMLS ID:275440, LO ID# UT - 5495305 - 7495184 • NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) • Utah - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions

“There is no doubt that the real estate industry is rapidly changing, and with it comes growing competition,” said NAR CEO Bob Goldberg. “To stay ahead of this evolution and succeed in a more competitive market, NAR is establishing a new Strategic Business and Technology group to focus on business and technology solutions that ensure the role of the Realtor® is essential to the consumer.” According to the survey, 60 percent of commercial firms expect profitability from all real estate activities to increase in the next year, compared to 64 percent in 2016. Residential real estate firms are more optimistic compared to commercial firms; 62 percent of firms expect profitability to improve, compared to 65 percent in 2016. The typical residential real estate firm’s brokerage sales volume was $6.2 million in 2016 (down from $6.3 in 2015), while the typical commercial real estate firm’s brokerage sales volume was $4.0 million in 2016 (down from $4.5 million in 2015). The survey found that the size of the firm has an impact on sales volume. Firms with only one office, typically with two full-time licensed agents, had a median brokerage sales volume of $4.3 million in 2016, compared to $4.5 million in 2015. Large firms, those with four or more offices and typically with 81 full-time licensed agents, had a median brokerage sales volume of $235.0 million in 2016, compared to $203.8 million in 2015. The survey states that 43 percent of firms reported they are actively recruiting sales agents in 2017, down from 47 percent in 2016. This is more common among residential firms (49 percent) than commercial firms (29 percent) and

Service Directory Home Inspection

The NAR 2017 Profile of Real Estate Firms was based on an online survey sent in July 2017 to a national sample of 165,598 executives at real estate firms. This generated 6,073 useable responses with a response rate of 3.7 percent. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

CRITERIUM-BERNHISEL ENGINEERS 801-466-0931 Scott Bernhisel, PE, MBA Professional Engineer

• Comprehensive Inspections • Expert Testimony • Diagnostics • Structural Repair & Design • Electrical, Mechanical, Rooﬁng • Maintenance Planning • Environmental Assessments Exceeding ASHI Standards

12 | Salt Lake Realtor ® | September 2017

more common among firms with four offices or more (84 percent) than firms with one office (36 percent). Real estate firms typically had 30 percent of their customer inquiries from past client referrals, another 30 percent from repeat business from past clients, 20 percent from their website or social media, and 1 percent through open houses. Firms also predicted the effect different generations of homebuyers would have on the industry. Fifty-two percent of firms are concerned with Gen Y/millennials’ ability to buy a home, 34 percent of firms are concerned with millennials’ view of homeownership, and 32 percent of firms are concerned about the recruitment of millennial and Gen X real estate professionals. The survey also asked about professional volunteer work and supporting the local community. Eight out of 10 firms encourage their agents to volunteer in the local community (similar to 2016): 43 percent at the local association of Realtors®, 25 percent at the state association of Realtors® and 18 percent with NAR. According to the study, residential firms (82 percent) are more likely to encourage agents to volunteer compared to commercial firms (79 percent).

Marty Nordin Owner

Meth & Radon Testing • Available 24/7 Licensed & Insured • ICA Certiﬁed Supra Key Access • Exceding ASHI Standards

801.232.0835

brickbybrickinspections@gmail.com

www.BrickByBrickUtah.com

The Coronado

RICHMOND AMERICAN LOVES REAL ESTATE AGENTS! Let us help you give your clients a streamlined homebuying experience.

Register on RichmondAmerican.com to stay up to date on grand openings, new communities and agent events, including our upcoming Agent Appreciation Night!

Create your agent account today to: Enjoy easy online client registration | Save communities and floor plans that meet your clientâ&#x20AC;&#x2122;s criteria View our latest quick move-in homes* | Sign up for our free guides | And more!

*Closing dates are subject to change and cannot be guaranteed. Homebuyers may be limited in the structural changes, options and upgrades which can be made to homes. Actual homes as constructed may not contain the features and layouts depicted and may vary from image(s). ÂŠ2017 Richmond American Homes, Richmond American Homes of Utah, Inc. (866.400.4131).

Study: FSBOs Net Significantly Lower Profits Overall it is clear that FSBOs have a low probability of selling, and if they do they will likely net the same or less after closing issues.

or-sale-by-owners tend to sell their homes for lower prices than homes sold through traditional agents via the MLS, and in many cases below the average differential represented by the prevailing commission rate, according to a new study by Collateral Analytics. The study examined the price differences between homes sold through traditional agents versus those sold by FSBOs from 2016 to the first half of 2017. Some homeowners may be tempted to try to avoid commission costs to a broker and try to sell the home on their own. But that can backfire and turn into a much lower sales price, the study found.

14 | Salt Lake Realtor ® | September 2017

Even successful FSBO sellers achieve prices “significantly below” those from similar properties sold more traditionally via Realtors®, the study found. “This makes a strong case for hiring an agent, considering that agents allow homeowners to reduce the work, risk, and time of selling a home,” said Dr. Michael Sklarz, the CEO of Collateral Analytics and a co-author of the study. “Overall it is clear that FSBOs have a low probability of selling, and if they do they will likely net the same or less after closing issues, plus they are more likely to screw up on disclosures which may lead to lawsuits after the fact, when buyers discover material facts not disclosed,”

added Norman Miller, who produced the study with Sklarz and is a real estate professor at the University of San Diego. The authors found that the differential in selling prices for FSBOs when compared to MLS sales is “remarkably close to average commission rates.” A FSBO sale, on average, nets nearly a 6 percent lower price than an MLS sale for a similar property. “Assuming that both buyers and sellers pay the commission, one might have expected something less than this average,” the researchers noted. “It appears that many sellers are avoiding commissions while netting home prices less than they would with an agent-represented MLS sale. They are avoiding commissions at any price, even one that exceeds a commission rate.” Source: “Saving Real Estate Commissions at Any Price,” Collateral Analytics Research (Aug. 16, 2017) Image licensed by Ingram Image

September 2017 | Salt Lake Realtor ® | 15

Report: Short Supplies Pummel Home Sales The West was the only major region of the U.S. to see an uptick in pending July home sales.

ontract signing mostly stalled last month as housing shortages across the country continued to hamper home sales, the National Association of REALTORS® reported. The West was the only major region of the U.S. to see an uptick in pending July home sales. Overall, NAR’s Pending Home Sales Index— a forward-looking indicator based on contract signings—dropped 0.8 percent to a reading of 109.1 in July. The index is now 1.3 percent lower than a year ago. It has fallen on an annual basis in three of the past four months.

Regional Outlook Here’s a closer look at readings from NAR’s Pending Home Sales Index across the country: • Northeast: Pending home sales dropped 0.3 percent to an index reading of 97.7 in July. Pending home sales are still 2.4 percent above a year ago. • Midwest: Pending home sales fell 0.7 percent to 103.3 in July, and are now 2.8 percent lower than July 2016. • South: Pending home sales declined 1.7 percent to an index reading of 123.1 in July and are now 0.2 percent below last July. • West: Pending home sales increased 0.6 percent in July to an index reading of 102.3, but sales are still 4 percent below a year ago. “With the exception of a minimal gain in the West, pending sales were weaker in most areas

16 | Salt Lake Realtor ® | September 2017

in July as house hunters saw limited options for sale and highly competitive market conditions,” said Lawrence Yun, NAR’s chief economist. “The housing market remains stuck in a holding pattern with little signs of breaking through. The pace of new listings is not catching up with what’s being sold at an astonishingly fast pace.” In the past five years, the national median sales price has increased 38 percent. Hourly earnings, on the other hand, have increased by less than a third of that (12 percent), Yun noted. Affordability is becoming a growing problem in many markets, as more consumers are being priced out of housing, Yun added. Nevertheless, buyer traffic continues to be higher than a year ago, Yun notes. The typical listing has gone under contract within a month since April, and inventory at the end of July was 9 percent lower than last July. “The reality, therefore, is that sales in the coming months will not break out unless supply miraculously improves,” Yun said. “This seems unlikely given the inadequate pace of housing starts in recent months and the lack of interest from real estate investors looking to sell.” Yun is projecting that existing-home sales will close out 2017 at about 5.52 million, a 1.3 percent increase from 2016’s 5.45 million. He predicts that the median existing-home price will increase by about 5 percent. Source: National Association of REALTORS®

As a Realtor® are You Worthy to Help People Realize the American Dream of Homeownership? By Curtis A. Bullock CEO, Salt Lake Board of Realtors®

re you running your business in the most professional way possible and representing the Realtor® brand the best way you know how? Exceptional Realtors® have been providing their clients with a world class buying and selling experience for over 100 years! That is the reason this industry has had such success and longevity. It is our job to continue in that direction! Here’s my top 10 list of questions we should periodically ask ourselves: 1) Do I return phone calls, texts or other messages promptly? 2) Do I call before showing (if required) and follow other listing instructions? 3) Do I understand the REPC and other complex forms and contracts such that I could use them in almost any situation? 4) Do I stay up to date on what’s going on in

18 | Salt Lake Realtor ® | September 2017

the industry? 5) Do I live by the Code of Ethics? 6) Do I invest in my industry by giving to RPAC? 7) Am I kind to my clients? 8) Do I talk respectfully to and about other Realtors®? We are all in this together. 9) Would I do whatever it takes to provide my client with a world class buying or selling experience so that they would refer me to their friends? 10) Am I positive? You can get so much farther in life and in business by simply being positive! Let’s all raise the bar of our profession and continue to help people successfully make the largest investment of their lives.

We grow our business by helping you grow yours

w ww. in sideaplus .co m Become a real-estate community celebrity

339 West 13490 South, Draper, UT 84020 | 801-233-3700 Corp NMLS #3113 | Corp Lic: UT #5491140-MLCO | MAC817-1448272

Don’t Let the Age Gap Damage Your Business Relationships Frustrated by generational differences with your clients? Here are six challenges where practitioners skillfully bridged the divide. By Pamela Dittmer Mckuen

roviding attentive customer service is the mark of a high-quality real estate pro, but what that means to a specific prospect or client varies, often depending on the generation that someone hails from. When the age gap between real estate practitioners and their clients is a couple of decades or more, forging a productive connection sometimes can be challenging. What’s more, missteps in communication and expectations can lead to battered feelings, conflict, and even lost sales. With four adult generations engaging in the marketplace at the same time, chances are good you’ll be interacting with clients other than your peer group. According to the National Association of

20 | Salt Lake Realtor ® | September 2017

REALTORS®’ 2017 Home Buyer and Seller Generational Trends Report, the breakdown of last year’s buyers was millennials, 34 percent; Generation X, 28 percent; baby boomers, 30 percent; and the silent generation, 8 percent. Each generation tends to be instilled with its own sensibilities and priorities, based on life experience and social influences. They often differ in expectations of service, preferred modes of communication, technology and social media adoption, and mental and physical hardiness—all of which can affect how and if a transaction comes to fruition. Of course, not all preferences and personality traits can be ascribed to age, but it’s useful to keep

in mind how generational issues might play a role in your business dealings and how to address potential pain points. Here are insights from real estate practitioners around the country who’ve successfully tackled those tests. Challenge 1: No common ground Marianne Bornhoft, 49, spent a frustrating day showing homes to an introverted 28-year-old man, a recent widower who was also raising kids on his own. The client was relocating from Portland, Ore., to Spokane, Wash. The conversation dragged on hour after hour, but nothing clicked. They had no shared interests. The last home they toured was so outrageously decorated, Bornhoft sneaked away to take a few pictures to send via Snapchat to amuse her daughter. The buyer caught her. Bornhoft feared he would be perturbed by her irreverence. Instead, he was delighted she was versed in the smartphone app. He suddenly became her huge fan. “That was his ‘aha’ moment,” said Bornhoft, a sales associate with Windermere Real Estate Manito in Spokane, Wash. “He realized I could engage on his level. I would not have kept him as a client if I hadn’t been snapping.” For the duration of their relationship, they communicated via pictures rather than words. She sent him photos and videos of homes and features he might like. Just to make him laugh, she also sent some she knew he wouldn’t. Eventually, he found a home he liked. “You have to meet clients where they are at, no matter where they are comfortable,” she said. “If they are a millennial and into technology, you have to be there. If they are a senior, and you have to talk more slowly, do it. That’s how you create long-lasting relationships for your life and your business.” Challenge 2: Don’t distress the client Before she launched her real estate career, Joleen Rose, 60, had been a hospital respiratory therapist for 26 years. The skills and knowledge she gained at that job carried over into one recent transaction. The client was a 92-year-old woman who was moving to Arizona to live with a son. The seller was charming and lucid in the morning but confused, irritated, and borderline hostile by late afternoon. Rose recognized the personality change as “sundowning,” an early sign of dementia. “If people aren’t cognizant of these types of issues, they think their clients are nuts,” said Rose, sales associate with ERA Key Realty Services in Millis, Mass. “They’re not. They just need a different kind of attention.” Rose’s solution was to schedule her visits early in the day. She also made the selling process as

stress-free as she could. Because, like many older people, the client did not want her furniture rearranged or possessions handled, Rose skipped the staging. She marketed the home as-is, knowing that this would be the most comfortable arrangement for her client. Because the thought of buyers and agents coming and going through her home made her client uneasy, Rose eschewed a lockbox and scheduled showings only when she could be present with her client. She occupied the seller with tea, cookies, and conversation to keep her calm while strangers toured the home. “We don’t want to create disturbances to their comfort zone,” Rose said. “It’s the last part of their being in control.” Challenge 3: You’re too young Sarah Taylor, 33, grew up in the popular retirement town of Port St. Lucie, Fla., where she was surrounded by older people. When she started selling real estate nine years ago, she thought specializing in 55-plus communities was a natural fit. But not everyone did. “I know I lost business because people thought I was too young,” said Taylor, GRI, broker-associate with RE/MAX Masterpiece Realty in Port St. Lucie. During those first years, she used the internet to play up her strengths and attract a following. She built a website focusing on a popular nearby active-adult community, with links to properties for sale along with her contact information. Her profiles on LinkedIn, realtor.com®, and other digital platforms played up her previous experience working for a mortgage lender and her familiarity with the area. To overcome people’s skepticism about her youth, she’d “overprepare and overresearch” properties that were coming onto the market. Before showing a home she’d never seen before, Taylor called the listing agent to get lots of details about the property and its setting, so she could add those to her repartee. “What I lacked in years of experience, I made up for by being a native in my hometown. I responded to my clients with whatever they needed when they needed it,” she said. “That’s been my work ethic from the beginning.” Gradually, the calls came in. Sticking to her chosen niche, Taylor mostly handles resales and the new—construction community of AV Homes’ Vitalia at Tradition. No one questions her age anymore. “Use what you know as a credibility factor,” she advised industry newbies. “Think long-term and build your personal brand from the very beginning.” Challenge 4: Tech-savvy or not? Technology know-how might appear to be a great differentiator between generations, with the young ones way ahead of everyone else, but

September 2017 | Salt Lake Realtor ® | 21

it’s a growing skill across the board. About half of all adults were online in early 2000, which is when Pew Research Center began tracking Americans’ internet usage. Today, roughly nine out of 10 American adults are online, according to Pew’s 2016 data. When broken down by age group, internet users comprise 99 percent of adults ages 18 to 29; 96 percent of those ages 30 to 49; 87 percent of those ages 50 to 65; and 64 percent of those ages 65 and over. Social media use among Americans has soared from 5 percent in 2005, when Pew first tracked the trend, to 69 percent today. Eighty-six percent of 18- to 29-year-olds are social media users. So are 80 percent of 30- to 49-year-olds, 64 percent of 50- to 64-year-olds, and 34 percent of 65-year-olds and over. “You can’t stereotype,” said Christian Klueg, 35, broker-owner at CMK & Associates Real Estate in Amsterdam, N.Y., and five more locations. “I’ve seen a few millennials say, ‘I gave up my cellphone and Facebook and moved to a rural area upstate,’ ” he said. “And I know plenty of grandparents who are on Facebook to keep up with their grandchildren.” Klueg, who said he checks his email about every five minutes, learned the hard way that some

22 | Salt Lake Realtor ® | September 2017

people check theirs once a week. On a couple of occasions, he emailed offers to sellers with instructions to call him to discuss. When several hours went by with no response, Klueg called, only to learn the emails hadn’t been opened—and the annoyed sellers didn’t know to expect them. “I got into the habit of asking at the beginning, ‘How do you want me to communicate with you?’ ” he said. “Is it email? Texting? Do you want me to leave messages? Home phone or cell phone? Sometimes they want me to call their spouse. Sometimes they want everything through the mail. But you have to ask.” Challenge 5: Selling a client on digital Sales associate Tim McMullin, 27, an enthusiastic proponent of digital marketing, embraces all the ways that the internet can boost real estate transactions. He takes pride in educating skeptical clients about its power. The key is showing, not telling, he said. “Show a virtual tour on your iPhone, rather than expecting someone to click on a YouTube link,” said McMullin, an agent with Coldwell Banker Previews International in San Francisco. This spring, he was guiding a client in his 70s through selling one home and downsizing to a

smaller one. When McMullin explained his marketing plan, which included social media and an email campaign, the client wanted direct mail and newspaper ads. “It was challenging to convince him that his house won’t sell if we stick solely to traditional marketing methods,” he said. McMullin won the client over by making a return-on-investment comparison: If he sent 1,000 mailers or spent $500 on a newspaper ad, how many people could he guarantee looked at them? Impossible to tell. But if he posted the listing on various online platforms, he could readily see the number of views and shares, and for less money. “When I can say to somebody not even in the digital marketing world that 600 people viewed the website of a property today, and they clicked to see the photos, it’s captivating,” he said. Challenge 6: Keeping up with the millennials Over the years, Konnie Warburton, 69, a sales associate with Sereno Group in Santa Cruz, Calif., has incorporated email, electronic signatures, and other technology into her work. Her younger clients have pushed her to do more. For example, many prefer to interact through instant messaging. Warburton was reluctant to thumb-type at first but soon came to see the benefits. “I now have a won-

24 | Salt Lake Realtor ® | September 2017

derful record of our communication that I never would have had with a phone call,” she said. Last December, a couple of first-time buyers in their 30s pushed her even further. They wanted to join in on the property search. They also wanted real-time access to new listings that matched their criteria—and immediate responses from Warburton. She consulted with her company’s tech team about how to best accomplish the couple’s desires. They recommended RealScout.com, a listing alert and home search platform, which she had never used. She learned quickly. Every time a property came on the market, Warburton and the couple, who had separate accounts, were notified. When either one looked at the listing, she got an email. Sometimes she suggested they visit the property. Other times, she went on her own, made a video on her smartphone, and sent it to them. “At the end of the whole thing, [the client] said, ‘You’re the best. You honestly surprised me with the technology,’” she said. “We’re already talking about an investment plan over the years that will help them grow their financial well-being.” Reprinted from Realtor Magazine Online, July 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.

Housing Watch Rising Prices, Falling Sales

ome sales across Salt Lake County fell in July due to rising home prices and falling inventory. During the month, 1,582 homes (all housing types) were sold, down 3 percent compared to 1,639 sales a year earlier during the same month. In the first seven months of 2017, Salt Lake home sales are down 2 percent compared to the same January through July period in 2016. More than half (52 percent) of July’s home sales were homes that closed under $300,000. Thirty-six percent of closings were homes priced at $300,000 to $499,999. The median home price in July climbed to $295,000, up 8 percent compared to $272,900 a year ago. In the second quarter, the median price of a single-family home in Salt Lake County hit an all-time high of $330,000, up 29 percent compared to the previous peak reached in the second quarter of 2007. In Davis County, home

Salt Lake County Sales (all housing types) Year-Over-Year (Down 3%)

1,639

26 | Salt Lake Realtor ® | September 2017

1,582

prices in July increased 12 percent to a new median price of $280,000. The cumulative days a listing was on the market in Salt Lake County fell to nine days in July, down from 10 days last year. Nationally, July’s sales pace was 2.1 percent above a year ago, but the lowest of 2017. Lawrence Yun, NAR chief economist, said the second half of the year got off on a somewhat sour note as existing sales in July inched backward. “Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” he said. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”

Salt Lake County Median Price (all housing types) Year-Over-Year (Up 8%)

$272,900

$295,000

2 - C OLOR

Salt Lake County Days on Market (all housing types) Year-Over-Year (Down 10%)

Davis County

Median Price (all housing types) $280,000 Year-Over-Year (Up 12%)

$249,250

Pending Sales (Down 2%)

1,643

1,685

Sales $

Salt Lake County

Sales

Davis County Sales (all housing types) Year-Over-Year (Down 0.4%)

474

476

September 2017 | Salt Lake Realtor Â® | 27

REALTOR® Connections

On the Move Sutherland Title announced that Terrie Lund has joined the company as sales manager for the Murray and Draper locations. Terrie will be teaching Terrie Lund continuing education classes and making sure that Sutherland Title stays top of mind by creating “Friendship through Business.”

Cannon & Company Celebrates New Office Cannon & Company recently celebrated the opening of a 4,000 squarefoot office in West Jordan. The brokerage opened five years ago, but in the past eight months the office has tripled its number of agents. “Our business plan is built on educating our clients and in showing gratitude and being charitable to our community and in giving back to the real estate profession,” said Gary Cannon, principal broker and owner. Cannon and his wife Sheridyn, also a Realtor®, have more than 45 years of real estate experience and have been business and property owners in West Jordan City for nearly 20 years. Cannon is a former president of the Salt Lake Board of Realtors®. Sheridyn currently serves on the Grievance Committee. Both are major RPAC investors.

Davis County Realtors® Donate $12K Davis County Realtors® recently donated more than $12,000 to the Bountiful Food Pantry and the Safe Harbor Crisis Center. The money was raised from a recent golf tournament and then equally divided between the charities. Michael Gray, broker for RE/MAX Metro in Bountiful and president of the Davis County Agents Association, thanked all the Realtors® and affiliates who made the golf tournament a success. “The community is very important to us and we want to give back to the people that support us,” Gray said.

28 | Salt Lake Realtor ® | September 2017

Century 21 Real Estate LLC announced that Nick Bailey, formerly of the Zillow® Group, has been appointed president and chief executive Nick Bailey officer. “We are excited to welcome Nick Bailey to the Realogy family,” said John Peyton, president and chief executive officer of Realogy Franchise Group LLC. Realogy is the parent company of Century 21 Real Estate LLC. “Nick brings a unique mix of leadership experience and industry insights to our company and we are eager to see him lead the Century 21® brand into the future.” Bailey has over 20 years of real estate industry experience as a leader in franchising, brokerage, management, and technology, and he is also a licensed broker. He is known as a revenue-generating operations leader who increases margins while mitigating the impact of economic change. Equity Real Estate is pleased to welcome the following individuals to the team: Jeffrey Chapman, Becky Westover, Misty Julander, J. Fenton, Marne Buckner, Kayson Spendlove, Kadee Anderson, James Harwell, Michelle Dickey, Mark Stephens, Maria Anderton, Steven Elliff, Michelle Tychsen, Dane Bollwinkel, Gary Norris, Caren Conner, Scott Oldroyd, Kristine Oldroyd, Inez Allridge, Thomas Williams, Eric Roberts, Marnie Beacham, Cade Mower, Bradley Workman, Rhea Anderson, Gaylene Bullock, Darrell Reed, Donna DenellPouch, Shelley Wolsey-Layton, Dave Bemis, Jeremy Pack, Kristen Eldredge, Stacia Barton, Christopher Fetterman, Gavin Ryan, Amanda Crane, Kory Mortimer, and Caitlin Barney.

Three Ways to Find a Resolution for an Ethics Dispute By Holly Robbins

ealtor® members pledge to maintain a higher standard of fairness and professionalism in their business practices to all as outlined in the Realtor® Code of Ethics. Here at the Salt Lake Board, we do everything we can to maintain high professionalism amongst our members by enforcing the Code of Ethics, but enforcing this standard absolutely requires the help of fellow Realtors®. We cannot rectify a situation that we were not informed of. A common misconception is that in order to file a complaint regarding the ethics of a board member, it requires significant time and effort, and this is simply not the case. Check out these new programs the Board offers in lieu of a formal ethics hearing. These processes take only a few minutes of time to enact, and significantly help us here at the Board to enforce the Code of Ethics amongst our members. Ombudsman Program The Ombudsman program is an informal attempt to resolve a complaint without both parties having to go through the process of a formal ethics hearing. Upon request, a representative of the Professional Standards Committee communicates with both parties in a dispute in an effort to mediate and resolve the

30 | Salt Lake Realtor ® | September 2017

issue. By offering a voice of reason, Ombudsman are able to resolve most cases before they turn into formal complaints. So long as an issue is not legally complex, the Ombudsman Program is a great fit for most disputes. Citation Program This program is designed to expedite the process in resolving complaints regarding Articles 1, 3 or 14 of the Code of Ethics. If the Board’s Citation Panel feels there is adequate information provided by the complainant showing a violation of any of these articles, a citation, much like a traffic ticket, is issued and sent to the responding party. This program is most often used in cases involving unauthorized access of a property or misuse of the Supra key and lockbox. Mediation Mediation is a voluntary alternative to arbitration when disputing a commission. Unlike arbitration, any settlement reached at mediation requires the acceptance of both parties; either party being able to walk away from the mediation table at any time if they are not satisfied with the resolutions being made. If the parties cannot come to an agreement, the mediation will be terminated and forwarded on to an arbitration hearing. Arbitration hearing decisions are final, and may not be appealed. Holly Robbins is the professional standards administrator and can assist you with finding the perfect mode of resolution for your ethics or arbitration dispute. Please contact her directly at 801.542.8856, or holly@slrealtors.com .

LEADER MOTIVATOR NAVIGATOR

GROUND BREAKER You don’t stretch limits. You shatter them. So why stay somewhere that restricts your business and withholds the independence you’re entitled to? We broke ground with our business model over four decades ago and we’ve never looked back. Find yourself at RE/MAX.

joinremax.com

THINKER

WINDERMERE’S INDUSTRY LEADING PRODUCTIVITY SYSTEM

NEIGHBORHOODNEWS THE BEST WAY FOR CLIENTS TO STAY CONNECTED TO WHAT’S HAPPENING IN THEIR NEIGHBORHOOD REAL ESTATE MARKET

EXCLUSIVELY FOR WINDERMERE AGENTS

See homes that are for sale

Find out if home sales in client neighborhoods are trending up or down.

See what homes around clients are currently selling for.

For more information about Windermere, contact our principal broker, Grady Kohler, at 801-815-4663.