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M A K I N G T H E M O S T O F S O C I A L M E D I A PA G E 1 7

A PUBLICATION OF KELLER WILLIAMS REALTY, INC.

JULY/AUGUST 2009, VOL.6 NO.4

the

Sky’ s the

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PROFIT SHARE GAINS MOMENTUM PAGE 4

Script your way to success PAGE 14 Gaining ground with distressed properties PAGE 12

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July/August 2009 â&#x20AC;˘ Vol. 6 No. 4

Keller Williams Realty

Dear

Associates, Never before ha s Kel ler W i l l ia ms Rea lt y been so much i n t he spot l ig ht. First, there was the news in February that we are now the third-largest real estate company in the United States. Then, the 2009 RISMedia Power Broker Report and the REAL Trends 500 Report revealed that Keller Williams Realty had more brokerages on both lists than any other real estate franchise, and we outranked all others companies in terms of our growth in number of agents, number of offices and total number of closed transactions. We’re turning heads. The media and other agents in your market really want to know what it is that drives us to keep moving forward. Many of us are quick to cite education. We not only have the best training out there, no one else can match us as a company in our commitment to learning. And of course, our supportive culture is another huge factor that powers productivity and profitability – while making us very proud about the people we’re in business with. The importance of our education and culture cannot be emphasized enough, but it recently occurred to me that it’s our business model that’s at the core of our success. In fact, Jeremy Conaway, president and CEO of RECON Intelligence Services, Traverse City, Mich., a leading source of strategic ideas for the real estate industry, recently asserted that "the Keller Williams systems entry is powered by a 'Porsche' level quality engine that is in its 10th or 11th iteration. It has been engineered for today's marketplace and if driven

July/Aug. 2009 vol. 6 no. 4 OutFront is a publication of Keller Williams Realty, Inc. 807 Las Cimas Parkway, Suite 200 Austin, Texas 78746 (512) 327-3070 phone (512) 328-1433 Keller fax Williams Realty

correctly will perform to the highest profitability and productivity standards." Perfect comparison. Hearing that inspired me to pick up my marked-up copy of The Millionaire Real Estate Agent, and reread pages 119 through 205, which cover our four fundamental models. I can’t begin to count how many times I’ve read this book, and it never fails to spark new insights. The tide is turning toward Keller Williams Realty, and as we prepare ourselves to make the most of it, one of the most productive actions that we can take to prepare for it is to revisit and recommit to the foundational models that a successful real estate sales career is built upon. There is so much that is happening in this company that’s new, and I can’t wait for you to learn about it all at Mega Camp. At the same time, we need to always remember that everything that we create in this company is built upon our fundamentals. The more mindful you are of keeping your business aligned with the models that Gary Keller set forth in the MREA, the more successful you’ll be. Yours in following the model!

Letter from the CEO

We not only have the best training out there, no one else can match us as a company in our commitment to learning.

Mark Willis CEO, Keller Williams Realty

Marketing & Communications Director: Ellen Marks Editor: Lisa Wahlgren (outfront@kw.com) Marketing and Communications Coordinator: Laura Price Copy Editor: Jeff Ryder Design: Michael Balistreri | Travis Drake Contributors: Celesta Brown | Jill Dwyer | Jennifer LeClaire | Elizabeth Millard | Shelley Seale Cover Photo: Mark Blinch Advertising: Cristina Murphey (advertising@kw.com) Job Inquiries: (jobs@kw.com) July/August 2009 • Vol. 6 No. 4

OutFront is published by Keller Williams Realty, Inc. The entire document of OutFront is copyright© 2009 by Keller Williams Realty, Inc. No portion may be reproduced in whole or in part by any means including electronic retrieval systems, without the express written permission of the publisher. Editorial or advertising does not constitute advice but is considered informative. Copyright© 2009 Keller Williams Realty, Inc. All rights reserved. outfront 3

P RO F I T S H A R E

Building wealth while spreading the word Ta lent fol lows ta lent. T hat’s t he prem ise upon wh ich Kel ler W i l l ia ms Rea lt y was fou nded, a nd t he compa ny ha s g row n to be t he t h i rdla rgest rea l estate compa ny i n t he Un ited States. A not her key tenet : ever y t i me a ta lented a ssociate opens t he doors to Kel ler W i l l ia ms Rea lt y for a not her prom isi ng professiona l, t hey become sta keholders i n t he ma rket center ’s prof itabi l it y a nd g row t h. In 2008, 22,000 Kel ler W i l l ia ms associates received prof it sha re i ncome. Here a re t he stor ies of fou r of t hem. By Celesta Brown

On June 10, 2009, the day that the SHIFT 2: Overdrive tour came to Toronto, Gary Keller addressed a crowd of 900 agents, and Jamie Purvis, associate with the Toronto Centre market center, added the 17th person to his profit share tree. His profit share earnings for the month amounted to $1,481.63. And he’s just getting started. Purvis, who chairs the recruiting committee for the market center’s Associate Leadership Council, is enthusiastically spreading the word about Keller Williams Realty, every opportunity that he gets. Partnering with Carlo Sconza as The Real Estate Guys, Purvis explains that his approach is to not “overthink” his recruiting strategy. “In fact,” he says, “the less we talk about ourselves, the better things go.” In a market where people are struggling to hold on, agents are naturally drawn to people who are doing well. “We turn their interest in us back onto them. We ask how they are doing in the current climate. We pinpoint their needs and then match it to training opportunities that will introduce them to the Keller Williams culture.” The recent SHIFT tour proved to be the perfect opportunity to expose recruits to all that Keller Williams Realty has to offer, and Purvis leveraged it to the hilt – inviting 40 recruits to the event, and staying in touch with the ones who have yet to join.

STRONG START

With more than 28,000 registered real estate agents in the Toronto area, only 300 of whom are with Keller Williams Realty, Purvis sees a vast opportunity before him. In Toronto, Keller Williams Realty is still fairly new; there is tremendous room for growth. “We approach recruits through education, tapping our database of more than 1,200 agents to invite them to classes that align with a known need. We tell agents that we can help them get to the next level,” Purvis says. “We build relationships, invite agents to need-based training and follow - up with them through the year.” 4

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Often, Purvis observes, when they are ready to make the switch to Keller Williams Realty, they proactively pick up the phone and call him.

EDUCATION EDGE

For many years, the market was racing along with a momentum that swept everyone up in its fast-moving current. Now that the market has shifted, it’s clear to see agents who aren’t performing as well as they could be if they were with a company that supported them, says David Fogg, associate with the Burbank (Calif.) market center. Fogg says that even in this market, his own business is flourishing. Every time that he or a member of The Fogg Team of REALTORS® is asked how they are doing it, the answer is always the same: “Everything I’m doing, I’ve been trained to do at Keller Williams Realty.” Colleagues in the market can’t help but want to learn more. With a profit share tree that numbers 90 associates, Fogg’s approach appears to be working. He continues to build the infrastructure for his profit share tree to grow on its own, but he says that he seldom leads recruiting conversations with talk about profit. Fogg came to Keller Williams Realty because of the training and culture, and that is what draws in new recruits, he emphasizes, but he’s quick to add, “Profit sharing is a great piece of a fantastic pie!” When agents at other companies are skeptical about profit share or find it "too good to be true," Fogg helps prospects to see that there’s no mystery in the company’s compensation model. “What do business owners do? They build their businesses and in turn gain profit from the part of the business that they built. That’s what profit share is all about,” he explains.

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Keller Williams Realty

Jamie Purvis

PAYING IT FORWARD

David Fogg

Courtney Yates

Courtney Yates, associate with the NashvilleMurfreesboro market center, agrees that it’s education and training that sets Keller Williams Realty apart and sets its associates up to be successful – and she’s living proof. Her team has skyrocketed to No. 1 in the Murfreesboro marketplace, No. 2 in the Greater Nashville market, and No. 5 in all of Tennessee. Knowing the difference that Keller Williams Realty can make in a person’s life, she’s passionate about helping others to grow and succeed and has a tree that is now 58 associates strong. What goes around comes around, and Courtney is investing in others the way she says that others invested in her. She regularly gives away copies of SHIFT, and hosts lunches during which she encourages the exchange of productive ideas and freely shares her own business-building strategies. The turbulent market has led to an environment in which agents are far more receptive to moving their businesses, but even so, Yates isn’t out to try and talk anyone into joining the company. “I just tout the company in a way that makes agents feel like they don’t want to be anywhere but with Keller Williams Realty,” she emphasizes. She wants a prospect’s light-bulb moment to happen naturally. And she’s there to help them transition when it does.

Keller Williams Realty

Photo by: Ben Arnold

Photo by: Titus Bartos

Photo by: Mark Blinch

Photo by: Sarah Kerver

P RO F I T S H A R E

David Kupfer

MEGA MISSION

“Now is a great time to recruit,” says David Kupfer, associate with the Sonoran Living-Phoenix market center. Offices are closing and agents are looking for a change. With 240 associates in his tree, and another 184 in his wife Nikki’s tree, he says that the two plan to someday live off of their profit share income. Their profit share earnings since they joined Keller Williams Realty in 1999 have exceeded $128,876. Kupfer sites time blocking and staying informed about the Keller Williams difference as two of his keys to recruiting success. He also credits the Keller Williams learning-based culture. “Ten years ago, we didn’t know what we didn’t know,” he says, explaining that the company’s events, classes and hands-on training have made a world of difference. “That’s why my wife and I are big believers in Mega Camp and Family Reunion. We know that it will help those in our downline grow their businesses.” kw To help associates understand how to benefit from the profit share opportunity, Keller Williams Realty has developed a profit share class that is intended to be taught in every market center on a weekly basis. More information on profit share is available on KWConnect. Go to (kwconnect. kw.com) and enter “Come Grow With Us.”

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EN GTH L N E IA STR SOC R U YO IA MED IES TEG STRA

SHAR PEN YO U R FO CUS CLO ON SING M O R BUSI NESS E

LEA

RN F RO IND M UST LEA RY DER S AN P RO D U C D TO P ING AG E NTS

FT SHI R YO U S E T D MIN

MEGA C AMP

On Aug. 26 - 29, the real estate industry’s best and brightest will gather in Austin, Texas to learn how to get their unfair share of the market!

W H E R E W I L L YO U B E ? MEGA TECH | AUG. 26

MEGA AGENT | AUG. 27-28

MEGA LEADERSHIP | AUG. 28-29

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

RECRUITING COUP

Minnesota mega takes on

Twin Cities luxury market

By Jennifer LeClaire

Marty Rathmanner, associate with the North Suburban market center, spent the first 17 years of his real estate career with Coldwell Banker Burnet. He left the Realogyowned mega - firm to start a boutique brokerage called Real Estate Nexus with a group of friends. In May of this year, Rathmanner decided Keller Williams Realty gave him the best of all real estate worlds: the resources of a large firm with the culture of a small one, and the growth opportunities he craves in a real estate market he loves. "Five years ago, Keller Williams wasn't a factor in the Twin Cities. Today, it's a growing force and I want to help it become great," says Rathmanner. "During my time at Masterminds as a guest, I was impressed with how Gary Keller cares first and foremost about teaching REALTORS® how to grow their businesses. We can grow together." Rathmanner can see the tide turning toward Keller Williams Realty in the Twin Cities, believing that the company has what it takes to grow and thrive during challenging times. He appreciates the open culture of knowledge-sharing – and he also appreciates the profit sharing model. Connie Krum, team leader of the North Suburban market center in the Twin Cities, reached out to Rathmanner in March to test the waters with the superstar agent and cites him as one of the most respected agents in the Twin Cities, a veteran in the luxury home market. "Marty is bringing our market center a lot of attention," Krum says. "I have appointments scheduled this week with several agents who heard about Marty coming to Keller Williams and now want to learn more about the opportunity. I had talked with some of them before, but now that Marty is on board, they are eager to take a second look." Todd Butzer, regional director of the North Central Region of Keller Williams Realty, is bullish on the North Suburban market center's ability to attract more cappers now that Rathmanner is hanging his license there. "It took one day for Marty to attract a capper from RE/MAX. He walked into our North Suburban office and signed up on the spot," Butzer says. "Add that to the capper that came with him from his company and Marty has two cappers in his first level of his profit share tree already." Rathmanner isn't actively working to build his downline quite yet, but he is actively working to broaden his career. "There are two major competitors in the luxury real estate market here," Rathmanner says. "My goal is to help Keller Williams Realty ramp up in the luxury market. With a fresh start this year and the new tools available to me, our goal is to reach $35 million in sales." kw Keller Williams Realty

Marty Rathmanner

During my time at Masterminds as a guest, I was impressed with how Gar y Keller cares first and foremost about teaching REALTORS® how to grow their businesses.

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- Mar ty Rathmanner, Vadnais Heights, Minn.

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MERGER SUCCESS

The Lyon Company finds new home with Keller Williams Realty By Jennifer LeClaire Amidst one of the hardest hit real estate markets in North America, the Pembroke Pines/Miramar market center is landing record profits and attracting a steady stream of new agents. Agent count now numbers 162, and May of 2009 was the market center’s most profitable month ever. Key among the most recent achievements: a merger with The Lyon Company. Natascha Tello, operating principal, anticipates more roll-ins in the near future. “It’s always about finding a win-win,” Tello says. With Mark Lyon, his core group was a match. Our two companies’ cultures are basically identical, placing God, family and business at the forefront of our lives.” Lyon has been an active leader in the local real estate community since 1991 and formed The Lyon Company in May 2005, along with his wife, Monin, son, Mark Lyon Jr. and his daughter-in-law, Kristy. A long-time admirer of the Keller Williams culture, Lyon says it was the training programs that convinced him to join forces with Keller Williams Realty.

and his team to one of my business meetings,” Polit says. “When they came and saw the energy, the opportunity to talk more about Keller Williams Realty opened up.”

UPSURGE IN PRODUCTIVITY

“The first two weeks were a settling‑in period,” Lyon says. “But now, I am seeing agents beginning to write deals. In fact, they are writing more deals now than they were two months ago.” As Tello sees it, the energy level in the Pembroke Pines market center is higher than ever since Lyon and his team joined the company. She says Lyon jumped in feet first, participating in the June productivity contest and leading a worship study once a week. “Mark was a Keller Williams agent long before he was a Keller Williams agent,” Tello laughs. kw

COMMITMENT TO LEARNING “Keller Williams has the training, the culture and the values we need to advance in this industry,” Lyon says. “Keller Williams Realty offered us an opportunity to become part of a phenomenal winning team.” He appreciates the fact that agents are “a brand within a brand” at Keller Williams Realty. The culture, he says, puts great emphasis on the individual’s personal growth, which ultimately leads to long-lasting success. Among the 10 agents from The Lyon Company who followed Lyon to Keller Williams Realty, Dan Crispino says that it was the culture that attracted him. "The training and support is going to help me take my business to the next level. The transition has been seamless." Rita Polit, team leader, managed the transition by, first, meeting with agents individually. "I invited Mark 8

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

L U X U RY A N N O U N C E M E N T S

Interlocking network of support and expertise W i t h a s s o c i a t e s a c r o s s t h e Un i t e d St a t e s a n d C a n a d a , L u x u r y H o m e s b y K e l l e r W i l l i a m s h a s g a i n e d a s o l i d f o o t h o l d i n t h e l u x u r y m a rk e t i n No r t h A m e r i c a .

L U X U RY H O M E T R A I N I N G N OW OFFERED ONLINE!

Welcome new members of Luxury Homes by Keller Williams!* From top, left to right: Kate Carson, Central Coast (Calif.) market center Cynthia Naumes, Medford (Ore.) market center Tammy Pearcy, Heritage (Texas) market center Eric Pruitt, Palm Beaches (Fla.) market center Kendra Todd Group, Greater Seattle market center Dave Wilkinson, Mission Viejo (Calif.) market center Not pictured: Shakeh Grigor, Glendale (Calif.) market center Tierney Foster, Sarasota Lakewood Ranch (Fla.) market center The Jimenez Team, Mississauga NW (Ontario) market center Rhine McNeill, Houston Metropolitan market center Jose Maria Perez, Aventura (Fla.) market center

Great news! The Institute for Luxury Home Marketing has recently developed an online version of its Certified Luxury Home Marketing Specialist training course. This training, which is a requirement within the first year of joining Luxury Homes by Keller Williams, has received rave reviews from all of our members who have completed it, and has proven to be a significant boost to their business. We are thrilled the new members and prospective members will now have the opportunity to complete this 14hour course online – at their convenience! For more information or to register, please visit The Institute for Luxury Home Marketing’s new education portal: (www. luxuryhomemarketing.com/ online).The course is also accessible through the National Association of REALTORS® REALTOR University Website. I look forward to seeing all of our members Aug. 23-25 at our next annual retreat prior to Mega Camp at the Four Seasons in Austin!

Nancy Rondeau, Whitby (Ontario) market center Gary Segal, Blue Bell (Pa.) market center Cathy Whitaker, Houston Southwest market center *Applications accepted and approved during May and June 2009

Keller Williams Realty

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Dee Shultz, Director of Luxury Homes by Keller Williams outfront

S TA R P O W E R

Prime-time strategies for

successful staging By Laura Price

Than Merrill

Than Merrill may be new to Keller Williams Realty, but he’s no stranger to the world of real estate. After graduating from Yale University and playing for the NFL, Merrill’s passion for action turned to investment properties. Now one of the most successful real estate investors in the United States, Merrill’s résumé of real estate ventures includes owner of CT Homes, LLC, a multimillion dollar investment firm; founder of FortuneBuilders, a real estate investing educational company; and new agent at the Keller Williams Realty Trumbull (Conn.) Market Center. Perhaps what Merrill might be most known for, though, is his celebrity status as a host of HGTV’s hit show, "Flip This House." Indeed, Merrill’s investment intelligence and superstar status as a fanatic flipper is a winning combination that makes him an excellent resource when it comes to staging homes.

BEAUTY IS IN THE EYE OF THE BUYER

Market conditions aside, one of the most important steps any real estate agent must take to get a home from contract to close is to stage it. “It can be the difference between a home sitting on the market for eight days or 18 months,” Merrill says. His process is fairly simple and straightforward. “If you can’t afford to stage the entire home then start with the kitchen, dining room, bathrooms and smaller rooms.” Why smaller rooms? “Buyers find it hard to see how their furniture might fit in a tiny space – so we show them,” Merrill explains. That means, first, removing large or bulky furniture and second, keeping the clutter to a minimum, which then opens the home up to its fullest potential. That often means sellers have to take down sentimental photos and keepsakes. “Without insulting their homes, let them know what’s worked in the past and conceptually what buyers expect to see when they walk into their home.” “Appeal to all five senses,” he adds. “You’d be surprised just how many people buy on impulse. The way a house 10

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smells, the way it feels, the way it looks. We’ve all heard it from our buyers: ‘this just feels right.’”

STAGING MADE SIMPLE

“Properties that we’re staging, even during the market we’re in now, are selling in 21 to 35 days.” Homes that sit empty typically stay on the market well over 120 days, he notes. That’s a big difference, and often clients don’t understand that it actually costs them money to have a home sit on the market. For Merrill, investing a couple of thousand dollars in the home is an effective strategy. “We easily recoup that money when we sell it.” Admitting that the staging conversation can get tense, Merrill has a solid strategy for those hard-won sellers who don’t believe their home needs help. “You have to have a more difficult conversation upfront without coming across as rude,” he says. Easier said than done. But Merrill insists that facts and statistics are key to gaining clients' business and their trust. “I ask my sellers ‘Do you want to spend money now, or make three or four more mortgage payments?’ By showing them the pain of not staging – monetarily spelling it out – they immediately get it.”

MISSION CRITICAL

On the surface, getting clients to invest time and money in their home may seem simple, but the interesting fact is, many sellers aren’t doing it. In a market saturated with inventory, standing out among the crowd is essential. For agents who are not adept at staging, Merrill suggests they find a good staging consultant and “give clients options.” “Not every seller will want to go all‑out, but you have to do something. By allowing them to choose, you reduce any reservations or hesitations they might have had upfront.” kw

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Keller Williams Realty

A N E W L E AG U E

Commercial heavy hitters trade up to

KW Commercial

By Jennifer LeClaire

Tony Solomon needed a change. Even though he’s ranked in the top 2 percent of commercial real estate agents for most of his career and has won just about every top production award his former brokerage had to offer – Solomon felt like something was missing. So he reached out to KW Commercial to see how the fledgling division might satisfy his craving for a culture of growth.

Keller Williams Realty

“An old dog can always learn new tricks. There is always something worth picking up even if you’ve been in the business forever,” Solomon says. “If I have a question about something, I get on the phone or get involved in a Webinar. That’s very refreshing.” “I see a lot of unhappy brokers who are beating their heads against the wall of traditionalism with a tremendous drag on their net commission,” Solomon says. “They have no say in the direction of the company and services are being cut back. Keller Williams is in a great position to capture quality senior agents, and bring up junior agents and residential agents that want to break into commercial.” His advice to agents considering a leap into commercial real estate: talk to a CLC member in the market area and ask them about the day-to-day experience of a commercial real estate agent. “We’re shaping the future of the company now. It’s a great time to get on board.” kw

Photo by: Ron Murray

He held discussions with several major commercial brokerages before he and his six-member team settled on KW Commercial seven months ago, and he offers a laundry list of reasons for ultimately choosing Keller Williams Realty, including an open culture with a spirit of cooperation between brokers in Santa Monica and across the country. KW Commercial, he explains, isn’t leaving brokers to fend for themselves in a tough real estate climate. "From top to bottom, Keller Williams management and brokers are banding together in a unified front determined to see the entire company grow in a down market. “For a commercial agent who lives in the big city, it’s a tough time. There’s a lot of tough deals out there,” Solomon says. “It’s easy to lose faith in people. I took a leap of faith when I came here, and it took me a little while to realize that Keller Williams Realty actually lives by a giving‑and‑sharing philosophy from the team leaders to the operating principals to the senior executive team.” As a member of the Commercial Leadership Council (CLC), Solomon is involved in helping steer the direction of KW Commercial. He’s also actively working with ambitious residential agents who want to learn how to leverage referrals. “California has a history of rebounding stronger than almost any other place. We’re working together to prepare for the future,” says Solomon. “There is a great opportunity to get into commercial real estate over the next number of years, and it’s refreshing to have the opportunity to help Keller Williams associates throughout North America.” As a multifamily specialist – multifamily transactions have made up about 70 percent of his transaction volume over the course of his career – Solomon is leveraging the support from KW Commercial to expand his focus to other sectors, such as retail centers and office buildings. Indeed, the KW Commercial training platform was a key factor in his decision to join forces.

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Tony Solomon

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M A R K E T M OV E R S

Scaling the mounting REO Market By Elizabeth Millard

RICK HALE: "FIXING PROBLEMS" IN ATLANTA

house or a $5,000 house. With some homes, Hale loses money, which is why volume is the critical success factor. "I love fixing problems," he says. And there’s no shortage of problems in the REO realm. "The greater the volume, the more problems, and the more oddball stories. Every property has a story.”

Photo by: Ben Arnold

The operating principal for three market centers in the Atlanta area, Rick Hale focuses predominantly on REOs, and explains that he fell into the field somewhat by accident. A regional representative from Fannie Mae called on one of the offices about six years ago, and was so impressed by ANDREW MONAGHAN: the team's professionalism and responsiveness, that a MEETING THE MARKET IN PHOENIX relationship was quickly forged. REOs have been part of Andrew Monaghan's Since then, Hale has been steadily building his business since he started in the real estate industry in REO business, which accounts for about 95 percent 2002. He dealt with them while working at RE/MAX, of his production. Before the market shift a few years and continued when he joined Keller Williams Realty ago, that figure was closer to 70 percent, and he was three years ago, as an associate with the Phoenix/ selling 80 to 100 houses per year through traditional Glendale-Peoria market center. referrals. Now he has about 285 units, he says. "I'll be doing REOs until the day I leave real estate," In Atlanta, the recent trend is toward multiple offers he says. "Particularly now, when that's almost within 30 days of listing, which is a big switch from all there is, since most of the sales in Arizona are recent months, where properties tended to sit for 180 distressed properties." days. REOs and short sales account for roughly 95 "Some communities have held their value, percent of Monaghan’s production. While the recent while other neighborhoods haven't, so it's hard to moratorium on foreclosures has reduced Monaghan’s generalize about the market here," he says. "Still, I REO inventory from 250 to 100, he anticipates a sold a house for $5,000 a few months ago, and that's possible flood of foreclosures never happened to in the near future, as the me in my career." moratorium is lifted. He's The paltry gearing up for that potential amount of that sale change, but with a degree highlights some of of trepidation. "If all these the difficulties with properties hit the market at the distressed properties same time, we'll have a huge – primarily the very supply again and that could get thin margins. Also, frustrating for buyers. I didn't banks are shifting think it was possible for prices toward using thirdto get lower, but if the market party managers who floods, that could happen." ask for referral fees, Andrew Monaghan Monaghan is also noticing making margins even Rick Hale that there are many more thinner. homeowners in trouble recently. "People who've "What you need to do is keep up the volume," done everything right are now caught by the system," says Hale. "If I don't sell 20 houses a month, I'm not he says. "They might miss a payment, or run into making money." employment problems, and suddenly their house is at Another challenge is that associates can't "cherry risk." pick" the listings, he says, and instead have to take While waiting to see what the next few months will what banks offer. That might result in a $500,000 12

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

THE AND

PROGRAM

Coach!

Q: Why do you place so much emphasis on the way we think? Doesn’t our success depend on what we actually do?

Dianna Kokoszka President of MAPS Coaching, Author of BOLD

Ask the

A. Dianna Kokoszka: You will only have the money, success, health, relationships and prestige that match your level of thinking. That’s why you must work harder on yourself than you do on your business. In order to have more, you have to become more. For things to get better, you have to become better. In real estate, what you sell is YOU. You sell you, every day in every way. You are the walking brochure, the walking billboard for you and your business. Many people say, “If I had more money,

or if my relationships were happier, or if my health was better, or if my business was successful, then I would be the person I want to be!” We need to realize that when we get better, all the other things will get better. Everything in your life grows to the extent that you do, so the largest denominator that is holding you back is you – your limiting beliefs, your thought process, your image of yourself. As Gary Keller says, “Think BIG, Act Bold, and Live Large.” That’s what BOLD, the new program from MAPS Coaching is all about. To learn more, go to (www.mapscoaching.com.)

bring, Monaghan is trying to navigate the nuances of distressed properties, and particularly the overhead involved. On about 80 percent of his inventory, he's had to turn on water, gas, and electricity, as well as pay city fees and some liens. He usually carries about $100,000 in receivables, he notes, and reimbursements can be months in coming. "On my team, the most important hire was the bookkeeper, because utilities and city fees are major issues," he says, adding that with such tight commissions, managing expenses becomes crucial. Another major sales strategy for his team is simply to "follow the rules," he states. "If the city tells you that you need something, then do it, and be aware of the timelines, because response time is getting tighter." In general, though, Monaghan appreciates the challenges, noting: "There truly are so many opportunities with these type of properties, and it's up to me and my team to figure them out." kw

Keller Williams Realty

July/August 2009 • Vol. 6 No. 4

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F RO M T H E C H A I R M A N

Script Power By Gary Keller, co-founder and chairman, Keller Williams Realty

The most productive agents in our industry are constantly practicing and polishing scripts. They internalize them to the point that their scripts become a part of their self-talk, and as a result, they convey a much higher level of confidence and professionalism. Agents who have memorized scripts are better able to listen to what their clients are saying and focus on how they can help – rather than mentally racing ahead of the conversation, trying to figure out what to say next. It seems that early in their real estate careers, agents have a tendency to shy away from scripts – thinking that winging it or being “in the moment” is a lot more authentic. But from the client’s perspective, an agent who doesn’t take control of the conversation or is thrown off guard with a challenging question simply appears ineffective – not authentic. As agents progress in their real estate careers, scripts become less about handling objections and more about incorporating language into presentations that will head off the objections in the first place. Conversations get cleaner and crisper, as clients get on the path toward achieving their goals a lot quicker. I recently spent several hours around a table talking

about and testing out scripts with some of the topproducing agents in Keller Williams Realty: Kristina Arias, Martin Bouma, Michaelann Byerly, Doris Carlin, Brad Korn, Linda McKissack, David Norberg and Lesley Thomas. Also joining us were two of our industry’s scripting superstars: Dianna Kokoszka, MAPS president, and Tony DiCello, MAPS Coaching manager. All of us were in universal agreement that a powerful set of scripts can do a lot more than make or break a deal; it can make or break a career. Brad Korn emphasized that without scripts, he never could have made it to 120 transactions a year. Kristina Arias pointed out that her business in Phoenix, Ariz., tripled once she started role‑playing and mastering scripts. Committed to sharing our best scripts and dialogues, we started role‑playing with the camera rolling. Here are some brief excerpts of what we came up with. More scripts from this group on pricing, price reductions and staging will appear in the September/ October issue of OutFront. To view our entire conversation, go to (www.agentmountain.com), then click on "Video" then "Scripts and Dialogues Roundtable."

EXPIRED LISTING SCRIPTS: CLIENT WANTS TO LIST AGAIN WITH THE SAME AGENT Brad: Mr. and Mrs. Seller, I can appreciate that. You do want to get your house sold, right? I mean, what exactly is this agent going to do differently that they haven’t already done, or didn’t do from the very beginning? You know it really won’t cost you anything just to sit down with me. Let me show you a marketing plan that actually gets houses sold. In fact, we’ve sold XX houses since last January, so maybe we can show you something that you haven’t seen yet. Linda: Let me ask you, if you knew there was another agent out there who could net you more money in a shorter amount of time, with fewer hassles, would you choose your same agent again? Dianna (role‑playing the prospect): No, probably not. Lesley: Dianna, if I sold your home in the next 60 days, would that cause a problem for you? Dianna: Why, no! Lesley: Perfect. Then all we would need to do is simply get together, so I can share with you how we can make that happen. What works for you?

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

EXPIRED LISTING SCRIPTS: CLIENT HAS CHOSEN ANOTHER AGENT

COMMISSION OBJECTIONS SCRIPTS

Gary (as the prospect): You know I’d love to do business with you, but frankly, we were hoping to do it at a lower commission rate. Or … You know, Agent Z offered to list my home for a commission of X percent. If you could do it for that, I’d be happy to hire you.

Michaelann: I can appreciate that. You really want an agent who is going to protect your equity, right?

Doris: So, Gary, you said that Agent Z agreed to list your home for X percent? That really bothers me. May I tell you why?

Michaelann: Yeah. Interesting. And you said you have talked to another agent. Have you signed a contract yet?

Gary: Sure.

Gary: No. Not yet.

Doris: If he is willing to give away his commission that quickly, how hard is he going to fight for the equity in your home? When you get an offer, are they going to want you to give in right away and just take that offer? I’m committed to not leaving any money on the table when I’m negotiating on your behalf. Does that make sense to you?

Michaelann: OK, perfect. Well then I am so glad I called you today. I’m wondering if I could share with you a proven plan that would actually get your home sold, would you use it? Gary, I think you owe it to yourself. I mean, in this market, it is critically important that you take a look at different marketing options. You know what? I don’t care even if you don’t list with me. At least you’ll have a great agent’s opinion on what it’s going to take to get your home sold at this time. Does that make sense? I mean, I don’t mind coming over.

Gary: It sure does. I appreciate that. Michaelann: May I ask you, Gary, is it my commission that you’re concerned about, or is it actually what you’re going to net on the bottom line when you sell your home? What’s most important to you? Gary: Well, clearly what we net. I just assumed that a lower commission helps my net. Michaelann: OK. And if I could show you how we can net you what you need to net, plus still pay my full commission, would you be OK with that? Gary: Well, I don’t see why I have to pay it, when Agent Z isn’t going to charge that. Dianna: So are you saying, Gary, that all real estate agents are the same? Gary: Well, aren’t you? Dianna: That’s what a lot of people think, Gary, and frankly, I can appreciate that. The fact is, we’re not all the same. And you won’t find anybody who will work harder and more professionally for you than I will to get you the most money for your home. Gary: So you’re saying that you’re unwilling to list my home for a lower fee? Dianna: That’s what I’m saying because I’m worth it, and you know what, you’ll always be happy that you took action with me tonight. Gary: (as an agent): There is a cost of doing business, and when you ask professionals to do it for less, my experience is that they do less. You’re going to get what you paid for, which is less; and in this market, I have to ask you, is your goal to get your house sold? Keller Williams Realty

Gary: (role‑playing the prospect): Absolutely. Michaelann: Yeah, and you were on the market for six months before, is that right? Gary: Yes.

Gary: It does make sense. Michaelann: Perfect. Then let’s do the right thing and set up a time to meet.

EXPIRED LISTING SCRIPT: CLIENTS PLAN TO SELL THE HOME THEMSELVES BECAUSE THEIR PREVIOUS AGENT WASN’T ABLE TO Brad: I can appreciate that. You know a lot of times, throwing a sign in the yard, if it sells the first week, you may not have even needed a real estate agent to help you. But you’ve been on the market already, so that may or may not happen. I’ll tell you what, maybe I can just come over and show you a few things that we do to market a house. There might be some things you’ll pick up on that you can use to help you get the house sold. And we can go from there.

R O U N D TA B L E PA R T I C I PA N T S : Kristina Arias, associate, Integrity First Realty-Mesa/Gilbert market center Martin Bouma, associate, Ann Arbor market center Michaelann Byerly, associate, New Tampa market center Doris Carlin, associate and operating principal, Joplin market center Tony DiCello, manager, MAPS Coaching Gary Keller, co-founder and chairman, Keller Williams Realty Dianna Kokoszka, president, MAPS Coaching Brad Korn, associate, Kansas City-Eastland market center Linda McKissack, associate, Denton market center; regional operating principal, Ohio Valley David Norberg, associate, La Mesa/East County market center Lesley Thomas, associate, Atlanta-East Cobb market center

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President’s Perspective

Dear

Team, We launched our SHIFT into Prof it Sha re ca mpa ig n on June 1, a nd by ever y measure, it’s been a huge success. You obv iously get it.

Keller Williams Realty is outpacing the industry because of you, and other associates like you, who show up as the kind of person who other professionals want to be in business with.

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You get that the real estate industry’s attention is turning toward Keller Williams Realty like never before, and as a result, you have an extraordinary opportunity to strengthen the financial stake you have in this company. You also get that, in the current market, there is no greater gift that you can give to a colleague – to introduce them to all that Keller Williams Realty has to offer – than a copy of SHIFT: How Top Real Estate Agents Tackle Tough Times. The idea behind our SHIFT into Profit Share campaign was simple: give a copy of SHIFT to two promising recruits, pass their names and contact information on to your team leader, receive in exchange a free copy of the SHIFT audiobook, and be entered into daily drawings for awesome prizes. Of course the biggest prize was the passive income opportunities that you created for yourself in the process – an alternate stream of income that could sustain you during slumps in production, and ultimately, actually build wealth for you. It stands to reason that our profit share model is at the heart of who we are as a company. Keller Williams Realty is outpacing the July/August 2009 • Vol. 6 No. 4

industry because of you, and other associates like you, who show up as the kind of person who other professionals want to be in business with. You are the face of Keller Williams Realty in your market, reflecting everything that we stand for as a company. Your determination to do what it takes to power your career forward during a market when many others are feeling inclined to give up – is doing a lot more than fueling your own production. You are attracting talent and building your downline. The gift of SHIFT started thousands of conversations last month about our market‑leading technology, training and culture – which can launch a real estate career onto an entirely new trajectory. Untold seeds have been planted, and untold profit share trees have started to sprout or branch out in entirely new directions. We couldn’t be more excited about what lies ahead for you. Keep those conversations going!

Mary Tennant President and COO Keller Williams Realty

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SOCIAL MEDIA

The new face of lead generation By Lisa Wahlgren Blayne Vackar and Amy Dunlap, associates with the Houston Memorial market center, estimate that 70 percent of the last 18 transactions that they’ve closed stemmed from their Facebook page. In one evening, Dunlap set four appointments from Facebook contacts. As the real estate profession leaps forward into the new world of social media, how have Vackar and Dunlap, who head up the Move Texas Group, managed to stay ahead of the curve? Vackar cites an integrated approach, in which his blog, Facebook page, Website and Twitter posts all tie back to

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each other. His Website includes a link to his blog; weekly blog posts refer readers back to his Website. Every time he meets someone – whether through church, sports or family – he follows up almost immediately with a Facebook friend request. Any pertinent questions that he gets on his blog – that range from home renovation to first-time home buyer tax credits to his perspective on short sales – are immediately reposted to his Facebook page. With Facebook at the core of his social media strategy, Vacker runs a pay-per-click ad on stealth sites targeted toward interested home buyers. The monthly cost, which averages $40, has proven to be well worth it, he emphasizes. His advice for Facebook posts: “Take a professional approach, but you don’t want to be all about real estate, all the time. You want people to know that you are real. On the weekends, I might say that I’m going fishing, but by Monday morning, it’s back to business,” with information about the market in Houston, current activity within his own group, and his take on the market. Viewing Facebook as a multipurpose communications tool, the first thing he did after a condo deal fell through last month was to get the word out on his Facebook page. Within a few hours, he had several inquiries. Vackar’s friendly, positive style, mix of the professional and the personal, and steady stream of new content has created a solid foundation that’s working well. His next step is to get his professional referral network “up and running with social media.” Once that happens he says, “there’s no telling where this will go.” kw

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SOCIAL MEDIA

What Now? Optimizing your impact with social media Just bursting onto the social media/Web 2.0 scene? It’s a new realm for most real estate agents. Below, Keller Williams Realty’s in-house social media expert, Amber Presley, addresses frequently asked questions about the new medium and what you should be doing to optimize the new opportunities.

OutFront: What channels of communication are under the umbrella of social media? Amber: Facebook, Twitter, YouTube, LinkedIn and ActiveRain are the most commonly used social media channels. OutFront: If I’m just getting into social media, where should I start? Amber: It’s a big world – so start with one thing, and see how it works for you and for your business. I would suggest starting with Facebook. Jump in, make contacts and begin posting information about yourself and your local real estate market. OutFront: How can social media help me build my business and my “brand”? Amber: Build your business by reconnecting with old friends, old classmates, or clients you haven’t otherwise “touched” through traditional marketing pieces. Also, done right, social media can position you as an expert for those who are following you on Facebook, Twitter or your blog. OutFront: So then, what does “doing it right” mean across the various Web 2.0 channels? Amber: Well, everyone is different and everyone acquires their own style for each medium. First, I would say never post the same thing on Twitter as you would on Facebook. They are different mediums and you have to address the two audiences seperately. Second, keep the communication channel open. Be sure you talk about what you are doing in your life as well as real estate. Once you’ve got the hang of it, tweak the ratio to match your style. OutFront: How do I track my return on investment from social media channels? Amber: How many leads did you get from Facebook, Twitter or your blog? Are people commenting on your status or retweeting you? Be sure you keep a running list of where you are bringing in business. Always ask a potential lead where they heard about you. Look at your records after an adequate period of time to determine where your efforts are seeing the highest return. 18

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OutFront: How much time should I be spending on social media? Amber: You will probably spend more time on the front end while you get the hang of things. You shouldn’t be spending too much time on it though. And with the new smartphone applications, posting on Facebook and tweeting on Twitter have become incredibly quick and simple. OutFront: Should social media take the place of my lead generating activities? Amber: No. But you should embrace the lead generating capabilities social media can bring to your business. See what works for you in your market and keep in mind that everyone has a different experience with the success of their social media strategies. Remember, nothing beats the impact of a handwritten note or a call on a birthday – personal touch matters. OutFront: I’m having trouble finding content for Twitter, Facebook and my blog. What strategy should I use to keep good content flowing without taking up time? Amber: Follow real estate experts on Twitter and retweet relevant content whenever possible. Look to your local market for data, or market trends. Create an “editorial calendar” of regular topics, or at the very least, write about what’s happening in your life – you’ll be surprised with the response you’ll receive just by engaging others in your experiences. OutFront: Here’s a hotly debated topic: Should I post my listings on Facebook, Twitter or any other social media Websites? Amber: Great question. Again, everyone has their own style. Some agents choose not to post listings and some do it sparingly. The key thing to remember is that social media is just that – social. By posting listing after listing, you run the risk of turning some followers off. Experiment. Figure out what works for you, and keep the conversations going! kw Got social media on the brain? Send your questions to (marketing@kw.com).

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Keller Williams Realty

TECH CORNER

Tools to sharpen your edge within your niche By Cary Sylvester, Executive Director, Information Technology, Keller Williams Realty As a Keller Williams associate, your access to marketleading technologies that will build your business and set you apart from your competition are second to none. The IDX capabilities, which are free to you through your eAgentC membership, enable you to far more effectively target a niche than ever before. For example, suppose you specialize in high-end Park Avenue condos. Your home page could include a distinct search feature that directs your clients to exactly what they are looking for: “Click here for all Park Avenue condo listings currently on the market.” Your blog posts could also tout this capability and link back to your site – effectively streamlining the search process for your clients, while demonstrating your expertise within a specific market. The type of specialized searches that you set up could

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run the gamut: From all properties available within a particular school district or community, a specific price range, types of construction, lake homes, lifestyle considerations – virtually any criteria that characterizes a specialized niche that you would like to establish. Using MapTracks™, the latest in property searching technology offerred through WOLFNET®, clients also have the opportunity to navigate the listing as narrowly or as broadly as they choose by a map. Once clients sign up on your site, you can take this capability one step further and gain a greater understanding of what your clients want, by tracking the properties they are searching and the listings they are saving. IDX is an awesome and highly accessible tool. Put it to work for your business! kw

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Top 50

Producing Teams*

* Based on transmittals received for all April/May 2009 closed transactions identified with the specific team.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

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Name

City, State

GCI

Units

Jim Reitzel & Associates Seybert Team Rhodes Team Express Realty Services Carol Royse Lifestyle Team Rushforth Team The Ida Terbet Team The Heller Real Estate Group Guldi Real Estate Group Neal and Associates The Kink Team Bouma Group Fabulous Properties Team Lentz Team Associates The Belt Team Philbeck and Associates The Capalbo Group McCarty Team The Marshall Group The Buehlers & Associates, Inc. Bocage Team The Atacan Group The Franke Team The Air Assault Team Buserini Group Charlotte Thomas Team Brenkus Team The Deberry Team Pat Hiban Real Estate Group The DeLois Smith All Star Team The Michael Reese Group Steven Cohen Team The Monaghan Group The Revolution Group Burton Group The Hoffman Murphy Team The Jeff Silva Team Bruce Slaton & Company Van Poole Team Buck Team Jennifer Young Team Patrick Bill & Associates The Scheffe Group Steve Cruz & Associates Chapman Team Rare Properties Keenan Carter Group HomeologyLA The Rugolo Team McKissack Group Realty

Kitchener, Ontario Henderson, Nev. Dallas, Texas Reston, Va. Tempe, Ariz. Ottawa, Ontario Raleigh, N.C. San Diego, Calif. Waldorf, Md. Wichita, Kan. The Woodlands, Texas Ann Arbor, Mich. Pleasanton, Calif. Eagan, Minn. McLean, Va. Orlando, Fla. Manassas, Va. Marco Island, Fla. Salt Lake City, Utah Flower Mound, Texas Fremont, Calif. Philadelphia, Pa. Conroe, Texas Clarksville, Tenn. Henderson, Nev. Riverton, Utah Henderson, Nev. Plano, Texas Glen Burnie, Md. Hattiesburg, Miss. Frisco, Texas Boston, Mass. Glendale, Ariz. Beverly Hills, Calif. Palmdale, Calif. Hermosa Beach, Calif. Blue Bell, Pa. Elk Grove, Ca. Dallas, Texas Mission Viejo, Calif. Chantilly, Va. Modesto, Calif. Austin, Texas San Antonio, Texas Palmdale, Calif. Beverly Hills, Calif. Pismo Beach, Calif. Los Angeles, Calif. Scottsdale, Ariz. Denton, Texas

$658,299 $391,643 $370,062 $360,667 $358,661 $332,344 $320,874 $306,661 $294,561 $275,792 $272,717 $270,775 $264,673 $263,209 $258,271 $255,753 $249,982 $238,356 $234,094 $233,598 $226,581 $226,296 $224,747 $222,647 $222,577 $216,567 $216,168 $210,455 $210,122 $208,275 $202,344 $199,500 $196,866 $196,585 $195,574 $193,272 $193,184 $192,314 $188,244 $187,735 $187,726 $187,419 $186,494 $185,241 $184,498 $183,410 $179,377 $176,350 $172,999 $169,534

26 110.1 57 68 81 46.3 40 27 70 29.5 29 52 15 100 18 84.5 44 12 47 36 35.4 30 38 54 58.6 43.7 67.1 36.8 33 35 44.4 11.1 90 5.4 60.5 10 20 56 34 26 35.5 44.5 19 64 49.6 10.5 25 4 43.1 32

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Top 50

Moneymakers**

**Data from CEO report used for award purposes for the 12 months of June 2008 through May 2009.

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Market Center

City, State

Total Profit

Austin Southwest Antelope Valley Heritage Austin Northwest Roseville Vancouver, WA Dallas Preston Road Dallas DFW Ottawa Asheville Atlanta - Sandy Springs Greater Portland Clarksville Albuquerque Houston Metropolitan Blue Bell Exton Atlanta - Sugarloaf Manassas Richmond West Grand Rapids East Scottsdale - Southwest San Antonio Legacy Group Edmond The Woodlands Charlotte - South Park Conroe/Lake Conroe/ Magnolia/Huntsville Atlanta - West Cobb Sonoran Living - Phoenix Ballantyne Area Baton Rouge Hollywood Hills Lake Ridge Round Rock Las Vegas Summerlin South Tampa Bayside, Queens Denver Tech Center Santa Clarita Plano DFW Metro South NW Tampa Summit Metairie San Antonio IH-10 Pleasanton / Livermore Atlanta - Peachtree Road Easton Beverly Hills Anchorage

Austin, Texas Palmdale, Calif. San Antonio, Texas Austin, Texas Roseville, Calif. Vancouver, Wash. Dallas, Texas Southlake, Texas Ottawa, Ontario Asheville, N.C. Atlanta, Ga. Portland, Maine Clarksville, Tenn. Albuquerque, N.M. Houston, Texas Blue Bell, Pa. Exton, Pa. Duluth, Ga. Manassas, Va. Richmond, Va. Grand Rapids, Mich. Scottsdale, Ariz. San Antonio, Texas Edmond, Okla. The Woodlands, Texas Charlotte, N.C. Conroe, Texas

Mary Tennant Sam Rafeh Mark Willis Mary Tennant Wayne Hall Patti Siebold David Osborn David Osborn Jeff Hooper Michael Tavener C. Shaun Rawls Dottie Bowe Mark Kelly David Osborn Mark Willis Michael Campo Cindy Dickerman Bryan Fair Lee Beaver Tipper Williams Karol Cooley James D. Dunning Jerri Smallwood Mo Anderson Judith Hopkins Ed Arrington Ruth P. Smith

Eric Copper Amy Constantine David Jones Jr. Linda Bartlett Brent Gove Brian Combs Brett Caldwell Lesli Akers Sunny Daljit Michael Zullo Steve Kout Mark Richard Kevin Van Aken Tina Eberly Candace Caspersen Todd Polinchock Edward Fordyce Paige Powers Cheri Corrado Michael Maloney Jon Jackson Philip Rankin Cooney Steven Gragg Susan Miller Diane Flicker Amy Hawke Amanda P. Rutt

$904,902 $833,556 $628,976 $596,894 $579,002 $461,090 $455,162 $453,199 $450,285 $419,472 $411,597 $400,625 $393,914 $371,844 $365,777 $355,765 $355,376 $349,212 $322,585 $321,628 $304,422 $304,308 $303,506 $302,105 $302,051 $301,635 $295,949

Marietta, Ga. Phoenix, Ariz. Charlotte, N.C. Baton Rouge, La. Los Angeles, Calif. Woodbridge, Va. Round Rock, Texas Las Vegas, Nev. Tampa, Fla. Flushing, N.Y. Englewood, Colo. Valencia, Calif. Plano, Texas Arlington, Texas Tampa, Fla. Summit, N.J. Metairie, La. San Antonio, Texas Pleasanton, Calif. Atlanta, Ga. Easton, Mass. Beverly Hills, Calif. Anchorage, Alaska

Chris Ferguson Barry F. Kramer Brenda Benson Larry Champagne Paul Morris Debbi Gorham Steve Schlueter Debbie Zois Kevin Chadwick Louis Cardenas Pamela Kiker Steve White Dick Dillingham John Davis Nicola Ubaldini Cara Moxley Steve Dwyer Mark Willis Rick Geha Shaun Rawls Barry Papagno Paul Morris Matt Dimmick

Kim Jeans Mary Ann Monroe Ann Yountz Mary Garner DeVoe Gary Reavis Sherry Daminski Avis Wukasch Julie Brown Patricia Kuhn Allison Gambone James Slinkard Frank Crandall Scott Scribner Smokey Garrett Michele R. Wright Debra Ann Meckbach Lucy D'Angelo Wendi Harrelson Robert Shapiro Brad Feiman Scott Morris Robert M Aigner Cody Gibson

$292,648 $292,238 $291,521 $291,104 $287,915 $280,532 $278,913 $277,601 $274,446 $273,983 $272,246 $270,422 $269,226 $265,680 $262,399 $262,344 $260,427 $259,854 $246,061 $241,013 $238,028 $237,507 $234,170

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Meet KW's crop of the 30 Under 30 class of 2009 REALTOR® Magazine's 30 Under 30 class of 2009 is focused, energetic and upbeat. Its members are driven by youthful optimism, no doubt. But they’re also embracing innovation and seeking out knowledge when they don’t know the answer. If there’s one thing this year’s honorees share, it’s an ability to adapt quickly to the fast-changing real estate environment without losing an ounce of passion for what they do. In any generation, that’s a true gift.

KARISHMA ASRANI

DESIGN DIVA: In 2004, Karishma Asrani, newly married, moved to Houston from her native India. "No woman in my family had ever had a job," she says. By her own acknowledgment, she also had "weird clothes" and didn’t know how to drive, and she was so shy that her hands often shook when she met strangers. Nevertheless, she discovered a talent advising several of her husband’s builder clients on design issues. Impressed by her ability to explain the advantages of different floor plans and materials, one of them suggested that she try her hand at selling houses. SHE SHOOTS, SHE SCORES! Asrani earned her real estate license in 2005 and began distributing fliers around her neighborhood. Within a few weeks, she had scored her first listing. By her second year, she was closing 40 transactions for a combined volume of $6 million.

ALLISON GAMBONE

MASTER RECRUITER: In the early 2000s, Allison Gambone was a struggling singer-songwriter who had scored a minor hit on Billboard magazine’s dance charts. While apartment hunting, she encountered a Queens rental agent who charged her $800 to look at one apartment, she says. "I couldn’t believe it. It seemed like so much money. I decided then and there that I needed to get involved in real estate." TEAM BUILDING: Today, as team leader of the Bayside/Queens market center, she leads about 200 salespeople, who produce $137 million in volume and 260 sides. She also recruits aggressively. "I bring in about 12 new agents a month," she says. Indeed, in 2008, she received an award from Keller Williams Realty for her recruiting success. "I was No. 1 nationwide," she says. Meanwhile, she’s still singing and recording.

HARMA HARTOUNI

TURNAROUND ARTIST: In early 2008, Harma Hartouni, a top salesperson at Keller Williams Realty's Studio City office, accepted an offer to become team leader and manager of the firm’s nearby Encino-Sherman Oaks branch. MAKING IT WORK: Since then, he has recruited about 80 new salespeople and instituted new educational and accountability programs that have revived the formerly struggling office. "Ensuring that my salespeople are continually inspired, motivated and accountable is a top priority for me," he says. Meanwhile, he doubled his personal sales volume in 2008, closing 42 sides and $19 million in sales. Hartouni moved aggressively into short sales and foreclosures, becoming a certified REO broker through the National REO Brokers Association.

WAYNE SALMANS

ONE SMART COOKIE: The Internet has its place in the modern real estate world, of course. But so do chocolate chip cookies. Every Monday night, Wayne Salmans stays up until one in the morning baking dozens and dozens of chocolate chip cookies. The next day, he drops them off at banks, title companies, hair salons, doctors’ offices, and other businesses that can potentially send referrals his way. "It’s about getting in front of people, making them smile and establishing a relationship," says Salmans, who has previous work experience in the construction industry. GOOD WALKING SHOES: Despite Alaska’s chilly winter temperatures, Salmans makes a habit of walking the neighborhood and knocking on doors. He also has a booth at every local trade fair or community event within driving distance. Last year he closed 38 sides with $7 million in sales. He’s active in the Valley Board of REALTORS®, and has served as chair of the RPAC committee.

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Keller Williams Realty

Events

2 EVENTS, 1 AIRFARE OP mca agt tl alc tc pc

Mega Camp is the exclusive event where top producers and MEGA C AMP Keller Williams leaders converge for an extraordinary week of learning and networking. Here you will discover the newest tools, trends and answers to your business challenges presented by fast-moving panels, top guest speakers and real estate industry leaders, including Gary Keller, cofounder and chairman of the board, Keller Williams Realty. • Mega Agent Camp: Thursday, Aug. 27 - Friday, Aug. 28, 2009 • Mega Leadership Camp: Friday, Aug. 28 - Saturday, Aug. 29, 2009 • Mega Technology Camp: Wednesday, Aug. 26, 2009 Register today at (http://megacamp.kw.com)!

Skill-building seminars are led by Gary Keller, Mark Willis, Mary Tennant, Dianna Kokoszka, Bryon Ellington and Cary Sylvester. Collaborative peer-group sessions allow you to share problemsolving techniques and hard-won wisdom, while learning powerful new ways to succeed in business. • Agent: Aug. 28 • Tech: Aug. 26 • Owner: Aug. 26 • Team Leader: Aug. 26 • Productivity Coach: Aug. 26 • MCA: Aug. 26

MASTERMINDS

Calendar Unless otherwise noted, visit (www.kellerwilliamsuniversity.com) or (www.mapscoaching.com) to register for these training sessions.

FRANCHISE SYSTEMS ORIENTATION

FIERCE CONVERSATIONS

OP mca agt tl alc tc pc

July 13 - 17; Aug. 10 - 14

July 15 - 16

Keller Williams Realty’s foundational courses are taught during Franchise Systems Orientation week. Which includes:

Fierce Conversations® teaches you how to ignite productive dialogue that interrogates reality, provokes learning, resolves tough challenges and enriches relationships.

OPERATIONS BOOT CAMP MARKET CENTER LAUNCH MCA SUCCESS IN THE OFFICE POWER DAYS

Led by: Antoinette Perez in Austin, Texas

MARKET CENTER SKILLS TRAINING

LUXURY HOMES RETREAT

OP mca agt tl alc tc pc

Aug. 23 - 25 in Austin, Texas

Aug. 10 - 14

This year, the beautiful Four Seasons Hotel & Spa, on the banks of the scenic Lady Bird Lake, will play host to Luxury Homes by Keller Williams’ second annual retreat, just before Mega Camp 2009.

Whether you are an operating principal or a team leader, this weeklong event delivers focused programs designed to give you a professional edge. OP CLINIC MCA MASTERY MARKET CENTER FINANCIALS TIME MANAGEMENT WITH THE 411

LEADERSHIP SKILLS TRAINING

MCA

OPERATING PRINCIPAL MARKET CENTER ADMINISTRATOR

OP mca agt tl alc tc pc July 13 - 17 From new market centers to expert team leaders, take advantage of all that Keller Williams Realty has to offer in 2009. Here are the most important educational courses that are being offered in Austin, Texas, in July! TEAM LEADER BOOT CAMP RECRUIT‑SELECT TRAIN THE TRAINER 1 ACTION TRAINING LEADERSHIP AND MOTIVATION TIME MANAGEMENT WITH THE 411

AGT AGENT

TL TEAM LEADER

ALC

ASSOCIATE LEADERSHIP COUNCIL

TECH COORDINATOR

PRODUCTIVITY COACH

July/August 2009 • Vol. 6 No. 4

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M I N D OV E R M A R K E T

The power of never-ending networking By Shelley Seale

For Kathy Wolfgang, associate with the Exton (Pa.) market center, continuing to power through in the current market is not that complicated. “She’s always, always asking for business,” says Cindy Dickerman, operating principal. Dickerman recounts an example that Wolfgang gave at a recent Associate Leadership Council (ALC) meeting in which she asked an electrician, who was working on one of her rental properties, who he knew who was looking to sell their house. He gave her a name, and she went right over to their home and knocked on the door, got the listing, sold the home and got several other referrals as a result. “She’s an amazingly positive person,” Dickerman says. “She never questions herself. She just works hard and gets it done.” After nearly 30 years in the real estate business, Wolfgang emphasizes, “I think attitude is the first ingredient in determining how successful you can become in this business. I never, ever listen to negatives. In my mind, it is always a good market and my conversations with potential clients exude the same positive outlook. I think my level of confidence and ability to provide them the best service comes shining through and convinces them that I am the agent who can sell their home in this market.” With that mindset, Wolfgang and her team doubled their listings in 2008 from 2007, selling 50 homes with an average of 52 days on the market and at 94.8 percent of the listing price. “Clients never forget you when you treat them right and keep in touch,” Wolfgang says. But in the current market,

Kathy Wolfgang

she has also exerted even more effort into following up with previous clients, asking for referrals and working expired listings. “We have been very successful this year with promoting the $8,000 first-time home buyer tax credit,” she adds. Her

team has also trimmed expenses by closely monitoring spending and cutting costs – eliminating almost all print advertising in favor of Internet marketing. Wolfgang credits the Keller Williams training with giving her a good understanding of the marketplace and the ability to recognize changes that are going to take place, to address them before they happen. It helped her to hang tough recently when she “released two listings because the sellers would not listen to the need to adjust their price.” Her production hasn’t suffered as a result. “Our goal for 2009 is 80 transactions. “This is a wonderful business,” Wolfgang says. “And I still love it after 30 years.” kw

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

REFERRAL RESOURCES

Keller Williams Realty

July/August 2009 • Vol. 6 No. 4

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REFERRAL RESOURCES

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July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

REFERRAL RESOURCES

LINE!

ON IS NOW

www.kw.com/ outfront

BECOME A FAN of Keller Williams Realty, Inc., on

MEGA CAMP is the best recruiting opportunity in 2009. MEGA C AMP

HOW MANY GUESTS HAVE YOU INVITED?

Aug. 26-29, 2009 Register TODAY for Mega Camp 2009 at (http://megacamp.kw.com) Keller Williams Realty

July/August 2009 â&#x20AC;˘ Vol. 6 No. 4

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R E D A L L OV E R N O RT H A M E R I C A On May 14, 2009, during one of the biggest events ever undertaken by a real estate company, Keller Williams associates across the United States and Canada set a standard of charity, love and commitment in their communities during the inaugural RED Day, which stands for Renew, Energize and Donate. Recognizing her leadership in guiding the culture of Keller Williams Realty, RED Day was held in honor of Mo Andersonâ&#x20AC;&#x2122;s 72nd birthday. Market centers took to the streets, and the trails, the playgrounds, the food banks, the shelter, the hospitals and so much more! To see more photos from across North America, or to upload your own, visit (http://photobucket.com/kwredday2009)!

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July/August 2009 â&#x20AC;˘ Vol. 6 No. 4

Keller Williams Realty

MO R OF E TH CO AN MM 15 UN 0,00 ITY 0 H SER OU VIC RS E!

Keller Williams Realty

July/August 2009 • Vol. 6 No. 4

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KW CARES

“I was not prepared for

the outpouring

of love”

By Shelley Seale

It was October 2008, and Authurine Johnson, associate at the Atlanta‑East Cobb market center, was sitting across from her team leader, Deborah Blue, in an accountability meeting. Johnson was nervous and full of stress, but she tried to pretend that everything was normal. Blue could clearly sense that something was very wrong. She looked Johnson directly in the eyes and asked her what was really going on. “I had always believed in keeping my private life out of the workplace,” recalls Johnson, “but this time I decided to talk about the hardship I was facing.” Both Johnson and her husband, Elliott, are real estate agents, and during the year, they had watched their business slow down. At the same time, they were taking care of Noah, their 6 year-old, wheelchair-bound son who, in addition to suffering from cerebral palsy, has asthma and rigid spasticity. The little boy is tube fed, and requires nursing care and various therapies daily to alleviate the stiffness in his body. His parents had already had to cut out some of Noah’s costly treatments. “We really worried about how far and how fast he would regress without this necessary intervention,” says Johnson. But that morning, when she finally felt comfortable sharing her story with Blue, Johnson found herself feeling supported and somewhat unburdened. “I'll never forget Deborah looking me in the eyes and telling me I did not have to suffer in silence any more," she says. Then, Blue asked if Johnson knew about KW Cares. “I was not prepared for the outpouring of love that followed,” Johnson says. The East Cobb market center immediately started a fund-raiser called "Noah’s Song," with a goal of raising $10,000. By the end of May 2009, they had reached the midway point with $5,000 in contributions raised through initiatives such as a dinner raffle and the sale of holiday gift baskets from the Sally Foster company, which donated the profits to the fund. “Although times are tough for everyone, this market center continues to rise to the occasion when I call upon them for help.” When the KW Cares grant came through it made a huge impact for Noah and his parents. “As a result of receiving the grant, we were able to restart various therapies for Noah,” reports Johnson. 30

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By Shelley Seale

Noah Johnson (right) and his siblings at the pool.

Blue is as amazed by Johnson as she is by the support from KW Cares. “I have watched both Authurine and her family blossom since receiving this generous gift of love from KW Cares. While juggling her duties as a mother, wife and caregiver to Noah, Authurine manages to make Power Hour in the morning, and she attends just about every team meeting and accountability session each week. She participated on RED Day, works on the ALC Growth Committee, and even helped another associate who couldn’t pay their monthly bill!” “I cannot thank KW Cares enough for granting this lovely family hope when they had nowhere else to turn,” Blue says. “We are encouraged and motivated by this amazing company that really does live by God and Family, and then Business,” Johnson says. “Now when I speak to others about my company, I speak from experience and with a very grateful heart for the outpouring of love we've received from sharing our story.” kw

In 2008, KW Cares provided financial assistance totaling more than $1.2 million to 237 Keller Williams associates and their immediate families in 25 of the 30 regions.

July/August 2009 • Vol. 6 No. 4

Keller Williams Realty

MoMentum Corner

My Dear

Family,

No one could ever imagine how utterly surprised I was to learn during this year’s State of the Company Address at Family Reunion, that on May 14, Keller Williams Realty's first annual RED Day was to be in honor of my 72nd birthday! And as exciting as it was, little did I know that it would become one of the most significant RED-letter days of my life! About a year ago, Cory Older, a member of our International staff’s Employee Leadership Council, introduced the idea of a company‑ wide community service day. It was a meaningful event he had previously experienced, and he felt it would be a perfect fit with our Keller Williams culture. It would be challenging because we’d be asking our associates to sacrifice a day of precious income. However, the idea was embraced and preparations for project RED Day (Renew-Energize-Donate) began rolling! And the rest, as is often said, is history! We were happily encouraged by your early excitement and commitment to this day of community giving, but we had absolutely no idea what amazing and incredibly unbelievable stories were about to surface! With your caring hearts and giving spirits joining forces internationally, on one particular day, communities, your market center teams, our industry and, indeed, North America in general would significantly change! We may never know the vast ripple effect of your loving compassion! Even now, many weeks later, my heart swells with loving pride, and I am moved to tears as I continue to enjoy over and over the many emails, photos and videos of your creative RED Day activities. As you will note on this issue’s “Red All Over” page, your RED Day projects were widely varied. Market center teams honored our military men and women; organized Hunger Runs; helped the elderly with a spring cleanup of their yards; aided crisis

Keller Williams Realty

centers; went “Mowing for Mo,” cleaning up yards of local foreclosed, abandoned and vacant homes; worked with homeless shelters, youth camps and children’s organizations; held blood drives – one with a “Mo’s Diner” serving breakfast. The list goes on and on and cannot possibly be adequately covered in this small space. Your compassionate creativity simply “blew me away”! Are you ready for the fantastic preliminary RED Day statistics? Are you sitting down? Approximately 22,000 Keller Williams family members donned “Giving Where We Live” RED shirts (you sure looked great in them) and using five hours of service as a benchmark, together, we donated service hours equivalent to 50 years of service – in ONE day – astounding! Also, nearly all regions have proudly reported 100 percent market center participation! My dear, dear family and friends, your blessing to others through such giving is immeasurable and words fail me as I try to express how proud I am to be sharing our culture and this amazing journey with each of you! You are simply the very best!

Your compassionate creativity simply 'blew me away'!

Thank you again from the depths of my heart for living our culture and giving me the best birthday gift EVER!

Bless You!

Mo Anderson Vice Chairman, Keller Williams Realty July/August 2009 • Vol. 6 No. 4

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