B US I N E S S I N TELL IGE N CE FOR THE CR S PROFE S S IONA L
AGENT CHANGE
OF
2015 CRS President Dale Carlton, CRS, will point the Council in a new direction
CharaCter and
Commitment
Your reputation is everything to you, and it means everything to us. When you refer your clients to Pillar To Post Home Inspectors, you are trusting us with your good name, and we’ll always deliver on our promise of professionalism, character, and integrity.
pillartopost.com
1-800-294-5591
Choice of exclusive Home Inspection Packages E&O insurance to protect the referring agent Report delivered on site at the time of inspection
contents
Jan 20 Feb 15 vol. 14, no. 1
18
AGENT OF CHANGE
2015 CRS President Dale Carlton’s background in law and educational instruction makes him well-suited to lead CRS into the future.
Photo: Adam Murphy
Interview by Mike Fenner
features
ALWAYS BE SAVING
Stretch your income to cover those inevitable slower periods.
MONEY MATTERS 23 How REALTORS can help demystify
By Gayle Bennett
®
30
the financing process for homebuyers. By Cheryl Winokur Munk
26 REFERRAL MADNESS
Referrals and repeat business from past clients can pave the way to a thriving real estate career. By Regina Ludes
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The Council of Residential Specialists
crs.com
1
Jan Feb
contents
departments
Jan 20 Feb 15 vol. 14, no. 1
10 16
4 VANTAGE POINT
By Dale Carlton, CRS
5 SHORT LIST
Meeting the housing needs of seniors and regional differences in what homebuyers want
9 COOL STUFF
Unleash your inner chef with these cool kitchen products
10 SMART SOLUTIONS Video marketing grows up
By Daniel Rome Levine
12 INSIDE TRACK
The benefits of a mentoring relationship are mutually empowering and they offer rich professional rewards By Donna Shryer
14 WINDOW OF OPPORTUNITY
If you’re investing in marketing but not tracking your returns, stop and read this before you spend another penny By Gwen Moran
16 PEER TO PEER
Alex Milshteyn, CRS Howard Hanna, Ann Arbor, Michigan
34 WORK+LIFE
How We Learn: The Surprising Truth About When, Where, and Why It Happens by Benedict Carey, Random House Reviewed by Allan Fallow
+ Free for All
Some of the best apps are free and very useful
48
inside CRS 37 NEWS FROM THE COUNCIL
Charting a new course at the CRS Annual Meeting; and a CRS instructor explains how to be successful in 2015
41 CRS CONNECT 45 YOUR HOME
Financing a first home and what buyers seek in a smart home
48 ASK A CRS
Advice from the country’s top agents
ON LY A T TR S MAG. C OM THE RESIDENTIAL SPECIALIST ONLINE Visit the new website at trsmag.com to access the digital edition of The Residential Specialist.
SLIDE SHOW
View additional photos from the CRS Annual Meetings held Nov. 5–8, 2014, in conjunction with the NAR Conference and Expo in New Orleans.
38 JOIN CRS
Hear Council President-Elect Janelle Pfleiger, CRS, describe some of the benefits of CRS membership.
Coming Next Issue … B US I N E S S I N TE L L I GE N C E F OR TH E CR S PR OFE S S I O NA L
Legal Talk What business and insurance mistakes can make you vulnerable? It’s Easier Than Ever to Be Green The green home market is growing — how can CRSs help clients get the houses they want?
EDITOR Michael Fenner mfenner@crs.com 800.462.8841 2015 COMMUNICATIONS ADVISORY PANEL Moderator: Lois Cox, CRS Co-Moderator: Marylea Todd, CRS 2015 COMMUNICATIONS ADVISORY PANEL MEMBERS Paula Angelopoulos Urbinati, CRS Bradley Fry, CRS Daniel Kijner, CRS Susanna Madden, CRS Colleen McKean, CRS Sandy McRae, CRS Georgia Meacham, CRS Sandra Nickel, CRS Vivian Pike, CRS Debbie Solano, CRS Paul Wilson, CRS Arleen Yobs, CRS CONTRIBUTING WRITERS Gayle Bennett Michael Fenner Daniel Rome Levine Regina Ludes Gwen Moran Donna Shryer Cheryl Winokur Munk OFFICERS: 2015 President Dale Carlton, CRS Chief Executive Officer Lana Vukovljak 2015 President-Elect Janelle Pfleiger, CRS 2015 First Vice President Leigh Brown, CRS 2015 Immediate Past President Ron Canning, CRS
PUBLICATION MANAGEMENT 847.205.3000 www.glcdelivers.com Publishing Manager Phil Malkinson Art Directors Scott Oldham Ivette Cortes Advertising Manager Michael J. Mrvica M.J. Mrvica Associates, Inc. 856.768.9360 mjmrvica@mrvica.com The Residential Specialist is published for Certified Residential Specialists, General Members and Subscribers by the Council of Residential Specialists. The magazine’s mission is: To be a superior educational resource for CRS Designees and Members, providing the information and tools they need to be exceptionally successful in selling residential real estate. The Residential Specialist is published bimonthly by the Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices. Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to CRS at the above address. The Residential Specialist (USPS-0021699, ISSN 1539-7572) is distributed to members of the Council as part of their membership dues. Non-members may purchase subscriptions for $29.95 per year in the U.S., $44.95 in Canada and $89.95 in other international countries. All articles and paid advertising represent the opinions of the authors and advertisers, not the Council. POSTMASTER: Please send address changes to: The Residential Specialist, c/o Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. COPYRIGHT 2015 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.
crs.com
Big Interest in Small Homes Sizing up home sizes: There’s a growing interest in smaller homes. Wish List Today’s buyers are more educated than ever, but they still need guidance from REALTORS® to navigate the buying process.
PLUS:
Implementing a data privacy and security program safeguards you, your clients and your professional reputation.
Would you like to be a source for a future story in The Residential Specialist? Send an email to mfenner@crs.com
to be added to our potential source list. To see a list of the topics we’ll be covering, check out the magazine’s 2015 editorial calendar online at crs.com.
Who on your team could benefit by receiving a personal copy of The Residential Specialist? STAY INFORMED The Council of Residential Specialists provides superior education, exceptional networking opportunities and critical resources. The Council’s flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business. To subscribe for yourself or a colleague, call 800.462.8841. Note: Members of the Council of Residential Specialists receive the magazine as part of their member benefits.
[vantage point]
from the desk of Dale Carlton, CRS, 2015 president
LOOKING
ahead
Photo: Adam Murphy
As I begin my tenure as CRS president, I can report that the Council is taking bold steps to enable the organization to deliver even more value to the members of today and tomorrow. CRS is moving in exciting new directions that will position it — and its members — for future success. CRS achieved key goals in 2014, including the launch of a membership recruitment campaign, three new courses that will be available for licensing in 2015, CRS Week, a Broker Toolkit and Licensee Toolkit, a redesigned magazine and more. All of these initiatives were guided by the Council’s vision to give members the tools they need to compete and succeed in today’s marketplace. Over the next three years, CRS will pursue strategic initiatives designed to: build and nurture connections among members locally and nationally; grow membership by communicating its value and the flexibility of member benefits; develop new education and learning paths to serve REALTORS® throughout their careers; provide support services, such as recruitment of assistants, coaching/ mentoring and consulting; and expand CRS education and training internationally. The bold new membership engagement model, which was unveiled at the 2014 Annual Meetings in New Orleans, will provide better ways to engage all CRS members by building on and evolving the current CRS chapter organization. This fresh approach provides multiple ways for CRS members to connect locally, regionally and across the country. It is designed to engage all members in a more tangible way and encourage their involvement with CRS. I promise that we will make every decision about CRS’s future with a love and passion for what is best for the Council. While 2015 will be a year of transition in many ways, I will be here to listen and work with you as your 2015 president. And we will approach the future together — minute by minute. Happy New Year!
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“ THE BOLD NEW MEMBERSHIP ENGAGEMENT MODEL WILL PROVIDE BETTER WAYS TO ENGAGE ALL CRS MEMBERS BY BUILDING ON AND EVOLVING THE CURRENT CRS CHAPTER ORGANIZATION.”
[short list]
}
Population of the 85+ age group
+ industry headlines + statistics + trends
HOW
old
ARE YOU NOW?
The United States is not prepared to meet the housing needs of aging Americans, according to a new report by the Harvard Joint Center for Housing Studies and the AARP Foundation. The number of Americans age 50 and over will grow to 133 million by 2030, which is an increase of more than 70 percent since 2000. But the study finds there is a shortage of homes that are affordable, physically accessible, well-located, and coordinated with support and services for this huge demographic group. Expensive housing currently forces one-third of adults over age 50 (37 percent over age 80) to pay more than 30 percent of their income for homes that may not fit their needs.
This often requires them to cut back on food, health care and retirement savings expenditures, the study finds. “Recognizing the implications of this profound demographic shift and taking immediate steps to address these issues is vital to our national standard of living,” says Chris Herbert, acting managing director of the Harvard Joint Center for Housing Studies. “While it is ultimately up to individuals and their families to plan for future housing needs, it is also incumbent upon policy makers at all levels of government to see that affordable, appropriate housing, as well as support for long-term aging in the community, are available for older adults across the income spectrum.”
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WHERE TO [short list]
+ industry headlines + statistics + trends
$
400,000
Median sale price of a new single-family home in New England.
221,000– $ 223,000 $
Median sale price of a new single-family home in East South
Central and West South Central regions, respectively.
Jan Feb
6
hang your hat
Regional differences might have a bigger impact on what homebuyers want than you might have thought. A recent study by the National Association of Home Builders (NAHB) found that residents of different regions have very different desires when it comes to design features, building materials, price and financing. Regional price differences are not necessarily related to a home’s size, the report finds. New England is home to the nation’s most expensive new homes, but those houses also ranked among the smallest, with a median size of 2,240 square feet. When it comes to home building materials, the most common type of siding in the U.S. is vinyl, which is used in close to 31 percent of new single-family homes started in 2013, with brick following at nearly 24 percent. Regional variations in home siding are significant, however, with vinyl dominating in the Northeast and Midwest, brick in the South, and stucco as the top choice for new single-family homes in the West. The NAHB report says 58 percent of the homes built in the U.S. last year had two or more stories. Outside the home, porches ranked as the most popular feature nationwide, but patios dominate the West South Central region and are just as common in the West. Despite a decline in popularity nationwide, decks remain a top choice for single-family homes built in New England, where 63 percent of new homes are built with a deck. The Residential Specialist trsmag.com
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SMALL POINTS BULLETIN
Money magazine has ranked what it calls the 50 best small cities in the United States. Factors that affected the rankings include a strong job market, affordable homes and top schools. The top-ranked small cities in the study were:
1 2 3 4 5 6 7 8 9 10
McKinney, Texas
Median family income
$
96,143
Median home price
$
217,879
Maple Grove, Minnesota
Median family income
$
109,397
Median home price
$
225,300
Median family income
$
124,686
Median home price
$
294,000
Median family income
$
105,811
Median home price
$
305,000
Median family income
$
110,194
Median home price
$
442,925
Carmel, Indiana
Castle Rock, Colorado
Kirkland, Washington
Columbia & Elliott City, Maryland
Median family income
$
133,682
Median home price
$
359,916
Median family income
$
123,460
Median home price
$
372,750
Median family income
$
77,444
Median home price
$
145,750
Clarkstown, New York
Ames, Iowa
Rochester Hills, Michigan
Median family income
$
95,710
Median home price
$
223,754
Median family income
$
142,404
Median home price
$
395,550
Reston, Virginia
0 io 201 ill
Q2 1 m 1
n
011 m 2 2 .9
Q 0 1
i ll
io
n
2 201 m Q2 0.8
i ll
io
n
RISING WATERFRONT
1
RESIDENTIAL PROPERTIES IN NEGATIVE EQUITY i 013 ill 22 m
on
Q .2 7
Source: CoreLogic
4 201
Q2 .3 m
i i ll
on
5
POSITIVE TERRITORY
SCHOOL DAYS
Recent analysis from CoreLogic shows that nearly 950,000 homes returned to positive equity in the second quarter of this year. Nationwide, borrower equity increased by approximately $1 trillion in the second quarter compared to a year earlier. However, 10.7 percent of all residential properties with a mortgage (5.3 million homes) were still in negative equity in Q2 2014, but that total is down from 12.7 percent (6.3 million homes) in the first quarter and 14.9 percent (7.2 million homes) in Q2 2013, the report says. “The increase in borrower equity of $1 trillion from a year earlier is evidence that things are moving solidly in the right direction,” says Sam Khater, deputy chief economist for CoreLogic. “Borrower equity is important because home equity constitutes borrowers’ largest investment segment and, as a result, is driving forward the rise in wealth for the typical homeowner.”
76
Homes that are situated on a waterfront are worth more than double what homes overall are worth, according to a study by Zillow. Not surprisingly, Hawaii, California and Long Island are home to the most expensive waterfront homes. Two decades ago, the median value of waterfront properties was 64 percent more than the median value of all homes. Today, the difference has grown to 116 percent. The highest-valued single-family waterfront homes are located in Laguna Beach; Malibu; Hermosa Beach (all in California); Great Neck, New York; and Kailua, Hawaii. Waterfront properties in these locations are worth between $4.5 million and $10 million, the study finds.
% 12
As children go back to school after the holiday vacation, it’s a good time to examine just how important schools are in our everyday lives — and our economy. More than one-quarter of the of children ages 3 to U.S. populace over age 3 (26.4 percent, 6 were enrolled in all-day kindergarten, or 78 million people) was enrolled in as of October 2012. a school in 2012, from nursery school up to college, according to the U.S. $ Census Bureau.
8.6 billion
million
U.S. school-age children (ages 5 to 17) spoke a language other than English at home in 2012; 8.6 million of these children spoke Spanish at home. was spent at family clothing stores in August 2013.
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Jan Feb
[short list]
+ industry headlines + statistics + trends
ON GUARD FOR
radon
Radon gas is a colorless, odorless and tasteless radioactive gas. It is formed by the breakdown of uranium, a natural radioactive material found in soil, rock and groundwater. It is also dangerous. Radon is the second leading cause of lung cancer after smoking. In the United States, the EPA estimates that about 21,000 lung cancer deaths each year are radon related, and in Canada that number stands at approximately 3,000.
Experts estimate that nearly one out of every 15 homes in the United States and Canada has an elevated radon level. Within homes, the gas typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. The home traps radon inside, where it can build up. Any home may have a radon problem — this means new and old homes, well-sealed and drafty homes, and homes with or without basements. Radon testing is the only way to know if a home is at risk from radon. Home inspection experts Pillar To Post conduct a short-term test using a continuous monitor to provide a snapshot of the home to see if it has elevated levels of radon. Testing takes approximately two to three days, and results are provided as a report for the client. For more information about how to check for radon in a client’s home or your own home — and contact information for your local home inspector — visit www.pillartopost.com/radon.
Jan Feb
Annual gross rental yields, Q3, 2014
8
The Residential Specialist trsmag.com
Investors who own residential property in the United States earned an average annual return of 9.06 percent in the third quarter of 2014, down from 9.56 percent in 2013, according to a recent study by RealtyTrac. Median home prices in the 586 counties tracked by the report rose more than 7 percent on average in the third quarter of 2014 compared to a year ago, while average rents for three-bedroom homes increased less than 1 percent. Daren Blomquist, a vice president at RealtyTrac, says the market for rentals is softening a bit. But “in the high-risk, high-yield markets, where unemployment and vacancy rates are higher than national averages, the average return was a whopping 19 percent, actually up from a year ago thanks to a strong increase in rental rates. Home prices, meanwhile, were more volatile in the high-risk, high-yield markets, with three out of the 16 posting double-digit percentage decreases in median home prices from a year ago,” he says.
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2.40%
Williamson County, Tennessee
Howard County, Indiana
Duplin County, North Carolina
24.40% 24.00%
RENTAL INSTITUTIONS
Kings County, New York
26.
88%
San Francisco County, California
Annual gross rental yields, Q3, 2014
WORST-PERFORMING MARKETS FOR RENTAL RETURNS
New York County, New York
BEST-PERFORMING MARKETS FOR RENTAL RETURNS
Clayton County, Georgia
Edgecombe County, North Carolina
41.57%
3.16%
3.64%
3.73%
[cool stuff]
acquisitions on a theme
MASTER
kitchen
STAY SHARP With this cutting board from Joseph Joseph, there are no more excuses for dull knives. The cutting board — which comes in green or black and in small or large sizes — includes a handy knife sharpener in its handle. Perfect for the cook who has trouble remembering to sharpen knives. 13.00
$
josephjoseph.com
CROCKPOT TO GO
$
$
349.00
There’s no better way to warm up during a cold winter than with a hot, home-cooked meal. Whether you’re looking for something new to spice up your usual cooking routine, or just a way to do what you already do better, The Residential Specialist has cooked up a few cool kitchen products that will help you unleash your inner chef this winter.
FULLY BAKED
70.00
$
Baking is a precision game, and the people behind the Pure Imagination Perfect Bake Kit know it. Their solution includes bowls, a digital scale and an oven thermometer — and an app that shows you step by step how to make the perfect baked goods. You can even input whatever ingredients you have on hand and the app will tell you what you’re able to make. Available at Brookstone stores.
Slow cooking is easier than ever with the Wonderbag. The bag fits around any short-handled pot, such as a Dutch oven, and retains the pot’s heat. This allows you to heat up your dish on a fire and then simply place it in the bag to cook — no more heat needed. If you are an outdoorsy person or you just want to save energy, the Wonderbag offers a great cooking option.
nb-wonderbag.com
OF THE
50.00
SLOW AND STEADY
STORAGE IN STYLE
If you watch any of the popular cable cooking shows such as Top Chef, you’ll invariably notice them using a sous vide to cook food to the perfect temperature. The Sansaire sous vide cooker does just that: After being attached to a pot of water, it raises the temperature to whatever level you choose. From there, you vacuum seal your food and cook it in the water bath until it reaches the perfect doneness. It is slightly labor intensive, but it’s hard to argue with perfectly cooked food every time. $ 199.00
Beyond their sleek, aesthetically pleasing design, Prepara’s EVAK storage containers also provide airtight food protection without exposing food to plastic. EVAK containers are made of glass and sealed with a unique plug-like top that creates a vacuum by simply pushing it down. The top remains easy to remove even with an airtight seal, and the bottom is $ 20.00 made of stainless steel, so plastic never comes into contact with stored food.
sansaire.com
PERFECT PASTA
prepara.com
190.00
$
Making your own pasta can be a laborious but rewarding process. The Philips Avance Collection pasta maker takes a lot of labor out of the process and leaves you with delicious pasta and minimal parts to clean. Four included molds enable you to make spaghetti, penne, fettuccini and lasagna noodles. And, according to Philips, the pasta maker can make up to a pound of perfectly textured pasta in just 15 minutes.
COFFEE TIME Quality drip-brewed coffee is often associated with coffee shops or expensive home contraptions. The simple-to-use and easy-toclean Bonavita BV coffee maker proves that stereotype wrong, as it makes great-tasting, dripbrewed coffee for around half the cost of some of its competitors. bonavitaworld.com
philips-store.com
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[smart
solutions]
streamlining your business through technology
GET READY FOR YOUR
closeup Video marketing grows up. By Daniel Rome Levine
Once a week, Jeff Wu gets to feel like a movie star. Wu, CRS, a broker associate with @Home Real Estate, in the Washington, D.C., suburb of Tysons Corner, relies heavily on video marketing to establish himself as the area’s go-to REALTOR®. Working with a professional videographer, Wu produces videos that are about 90 seconds long and may feature him narrating neighborhood tours, conducting interviews with notable community figures or profiling local businesses. He uploads the videos to YouTube and his blog (agentknowshomes.com/videos). Wu’s photographer teasingly calls him “the talent.” “He sets everything up and then I’ll swoop in for 10 minutes, do a couple of takes and leave,” Wu jokes. Across the country, REALTORS® are realizing the power of video marketing. With over 90 percent of homebuyers today using the Internet to search for a home, according to the National Association of REALTORS®, it makes sense to market yourself online in a way that sets you apart. Video does just that. Because there are far fewer
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video Web pages online than text pages, videos stand a 50 percent better chance of appearing on the first page of Google results than any given text page, according to Forrester Research.
Cutting Through the Clutter
up, it cuts right through the clutter and really gets viewer’s attention.” When Wu first started making videos about three years ago, he produced them himself using a small Flip video camera. Now he uses a professional because it saves time and the quality is better. Wu’s cameraman, Brian Nemiroff of Photographic Utopia, in Washington, D.C., shoots the videos using one of two digital single lens reflex (DSLR) cameras, a Nikon D7000 or a Nikon D4S. His favorite lens is a Nikon 14-24 mm f/2.8 for its ability
Wu agrees that videos help him grab the attention of potential clients who search for homes online. Because many of them are looking for information about the area where they plan to live rather than for a specific REALTOR®, he produces videos about local points of interest, such as stores, In Oswego, Illinois, outside Chicago, Rich Ayers, CRS, restaurants, popular managing broker and owner of the Ayers Realty Group, uses neighborhoods and an Internet video creation service called Animoto to produce schools. Not only does videos of his listings as well as of subdivisions where he is this establish him as active. Animoto allows Ayers to turn still photos, video clips a local expert, but it and music into attention-grabbing video slideshows that increases the chances he posts on his company website and uploads to YouTube his videos will pop (www.youtube.com/watch?v=B5jQuz10hrI). up when homebuyers For those for whom money is no object, Film House, a search using keywords production company in Nashville, Tennessee, creates related to these points Hollywood-quality videos for clients selling high-end of interest. “Search luxury homes. The so-called mini-movies typically cost pages are so cluttered anywhere from $5,000 to $20,000 and feature professional with all these links,” actors playing out storylines in and around listed homes says Wu. “When that (filmhouserealestate.com). little video box pops
TRICKS OF THE TRADE
to fully capture wide rooms. In Burlingame, California, just outside San Francisco, Raziel Ungar, CRS, with Coldwell Banker, Burlingame Properties, produces videos that not only help educate potential clients about the area’s neighborhoods and other points of interest, but also show how he can add value to their homebuying experience. On his website’s blog page are three prominently displayed videos, each about 90 seconds long, which feature him talking about his approach to buying and selling homes and what it is that sets him apart (http://bit.ly/1z3LesX).
Focused on Success
When people view Ungar’s videos, along with any of the nearly 100
others he has posted on YouTube, they begin to feel like they are developing a personal connection with Ungar and that he is knowledgeable and trustworthy, he says. One recent example was the wife of a tech company executive who was moving from the East Coast to San Francisco. She called him after coming across his videos and he is now helping the couple shop for a $3 million to $4 million home. “This is a client I never would have had if I didn’t create my videos,” he says. Ungar’s videographer, Paul Keller of Paul Keller Media in Redwood City, California, uses a Canon EOS C100 digital video camera. Some of Ungar’s most recent productions have been 90-second videos of the nine
communities he serves featuring fast-moving, time-lapse footage. “There’s definitely a wow factor,” says Ungar. He also enlists the help of a captioning company so that the hearing impaired can access subtitles for his videos, as well as real-time translations and closed captioning in Mandarin Chinese. “As REALTORS®, we have to stand out and provide exceptional value to our clients,” says Ungar. “Video is the most effective way to do both of these. When done well, they set you apart from Learn more by the crowd and create taking the CRS Online Course lasting value.”
Video Marketing to Enhance Your Business: bit. ly/1zYmeEQ.
Daniel Rome Levine is a writer based in Wilmette, Illinois.
GADGET INSPECTOR
PINNACLE STUDIO IS A POWERFUL VIDEO EDITING APP
For more information, visit pinnaclesys.com. $12.99 in the iTunes app store (currently unavailable for Android or Windows Phone).
Many video editing apps available for smartphones and tablet devices — including Apple’s own iMovie — offer fewer features than their desktop computer counterparts. Pinnacle Studio, by contrast, is a full-featured video editing app that gives you precise control over your videos via a simple tap interface. Beyond the basics like cutting clips together and syncing audio tracks, you can also add effects like motion titles and 3D animations. With the ability to pan and zoom on still photos, you can even mimic a Ken Burns-style documentary.
THE BLACKMAGIC CINEMA CAMERA OFFERS PRO QUALITY FOR AN AMATEUR PRICE
For more information, visit samsung.com. Prices vary by television size, starting at $1,599.99 for a 50-inch set.
THE SAMSUNG HU8550 4K TV WILL SHOW OFF YOUR VIDEOS IN STYLE
4K televisions are all the rage right now, providing the sharpest resolution possible in consumer TV sets. If you’re looking to join the club, the Samsung HU8550 offers one of the best pictures on the market. In addition to the large number of pixels on the screen, this TV also includes Samsung’s topof-the-line picture features such as LED local dimming, which adds more contrast, making images even clearer. With 3-D capability and Smart TV features such as the ability to surf the Internet while you watch TV, the HU8550 has just about everything you could ask for in a TV.
If you are looking to make high-quality videos on a low budget, the Blackmagic Cinema Camera could be the answer. Its sleek but unassuming look doesn’t do its interior justice. The Cinema Camera records at up to 2.5K resolution and outputs raw video files. This means that the video files created by the camera are uncompressed, so there is no loss in image quality when you transfer the files from camera For more information, visit to computer. This allows you — or your video editor — to create blackmagicdesign.com. Prices vary beautiful 1080p videos with a professional look for significantly depending on model, starting at $1,995. less than a high-end camera will cost you.
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Jan Feb
[inside track]
lead
what’s trending in real estate
THE FOLLOWER
The benefits of a mentoring relationship are mutually empowering and they offer rich professional rewards. By Donna Shryer
Mentoring is said to date back to the 8th century B.C., when Homer penned the Odyssey. As the epic poem goes, Odysseus, king of Ithaca, departed for the Trojan War’s frontline and entrusted the care of his household to Mentor, who served as teacher to Odysseus’ son, Telemachus. As time evolved, mentoring moved from a 24/7 proposition to a more relaxed concept involving guidance and support. It’s a practice that’s served many great minds and talents. Socrates mentored Plato; Aristotle mentored Alexander the Great; Merlin mentored King Arthur; Ray Charles mentored Quincy Jones; and CRSs serve as trusted mentors to new REALTORS®.
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Ground Rules
Mentoring involves a more experienced and often senior staff member (mentor) partnering with a junior employee (mentee) and sharing professional advice while also modeling positive behaviors. These associations tend to be casual in nature, such as a quick sit-down to hash out a sticky issue, or slightly more organized, like a Q&A session at a local coffee shop. Despite its relaxed manner, there are a few ground rules that empower the mentoring experience. 1. The mentor should expect nothing in return, stresses David Anderson, CRS, broker associate with RE/MAX Pueblo West, Inc., in Pueblo West, Colorado. With his 30-some years as a REALTOR®, he feels it’s his responsibility to share his experiences and knowledge. However, at the end of the day, he does “get a great deal of satisfaction in helping someone else.” 2. It helps when the mentor and mentee share common values and principles, explains Leigh Brown, CRS, broker/owner at
RE/MAX Executive Realty in Concord, North Carolina. “I think the strongest mentoring bonds come from symbiotic relationships.” In other words, if one person is solely interested in commission and the other party is more interested in new regulations that may affect the buyer’s ability to qualify for a mortgage, then this mentoring relationship may not go far. 3. The mentee needs to listen and learn. “Too often people ask for my advice but then do what they want anyway. That’s a waste of time,” Brown adds. 4. Mentor and mentee have to prepare for honesty. Anderson explains that his advice often begins by reminding mentees that they’re not going to be everyone’s best friend at the end of the day. “Sometimes that’s a tough lesson for newer agents. But they have to remember who they work for. If you’re the listing agent, you don’t work for the buyer, so the seller’s best interest dictates what you can or cannot do.”
Take It from the Top
While most mentors stress that they help newer agents for the sheer joy of giving back, the truth is that mentors do benefit — just not as one would expect, says Jeff Wu, CRS, broker associate with @Home Real Estate in Tysons Corner, Virginia. “Mentoring gives me an opportunity to discuss new business practices and evolving technologies. So when I’m talking with a mentee, I’m also reinforcing my own knowledge.” In addition, Wu adds, “If I’m going to offer advice, I have to walk the talk and hold myself accountable for what I recommend.” Similarly, Gregg Fujita, CRS, sales agent with Harbor Bay Realty in Alameda, California, discovered an interesting byproduct as he began mentoring future Council of Residential Specialist leaders. “I learned how to be a better communicator — speaking honestly and to the point, but never talking down to the folks I’m mentoring. I learned to give them credit, but at the same time, honestly discuss what they could do better.” With this insight, Fujita ultimately sharpened his motivational skills — an ability that serves him well as a mentor and as a REALTOR®.
It’s Never Too Early to Learn
The obvious mentee benefits are straightforward — guidance, knowledge, insights — although some advantages may surprise you. A good mentor can help you: ÄÄDiscover hidden talents ÄÄIncrease career satisfaction ÄÄExpand your personal network ÄÄGrow your source of referrals “A mentor can also be a reassuring asset,” Wu says. “A newer agent may sit down with a client to sign the settlement documents, and all the paperwork and legalese is overwhelming for the client. That’s when a mentor can step up and help the mentee. Sometimes it’s as simple as saying, ‘Don’t worry. These forms are normal and part of the process.’ So I learned how to watch for anxiety in the client and keep them calm and focused before any craziness gets out of control.” There’s another benefit referred to as psychosocial support. Strengthening the mentee’s confidence, identity and effectiveness in a professional role can trigger a powerful growth experience, which can, according to the American Psychological Association, “provide explicit and implicit lessons related to professional development as
MENTORING: MYTH OR TRUTH? MYTH
TRUTH
The mentor does all the work. The mentor offers advice, guidance and sometimes solutions, but the mentee does the work.
Mentees drive the mentoring process. A good way to start the process is with a simple question. If the potential mentor is receptive, build from there. Or invite a potential mentor for a cup of coffee and briefly express your goals. Initiating short-term, goal-oriented meetings addresses both parties’ limited time.
One mentor can do it all. With the volume of skills needed in today’s real estate environment, it’s okay to seek the best mentor for a specific skill set.
Mentees should seek potential mentors with different backgrounds, experiences and perspectives. Intricacies, changing regulations and an ongoing learning process unique to your business may require help from several experts.
5 mentoring traps Well-meaning mentors may sometimes overstep the boundaries. Here are a few traps to avoid. ÄÄ Refrain from dictating actions. This relationship is based on sharing time-tested advice, but the mentee is accountable for his or her actions. ÄÄ Don’t try to mold the mentee into your twin. Helping associates build their own strengths to achieve business success is one thing, but that associate is still a unique individual. ÄÄ Resist the urge to solve every problem. Let your mentee think through issues and present solutions before offering advice. ÄÄ Build a mentor/mentee relationship based on trust. Unless you see an ethical, legal or company policy conflict, trust the mentee to work through an issue based on previous advice. ÄÄ Remember the importance of positive reinforcement. Encouragement, even while offering corrections, builds confidence and self-esteem.
well as general work-life balance.” Fujita learned firsthand how far a good mentor’s help can go. “A fellow CRS mentored me professionally, and through her support, I gained so much self-confidence and self-esteem — not just in the office, but in life, too. I can truly say if it wasn’t for my mentor, I would not be married to a wonderful woman, have a 2 -year-old son, or have had the honor of being Council President in 2010.” With a history of being mentor and mentee, Anderson knows well the advantages of both roles, and he’s quick to add that you never know when those roles might flip-flop. “Always be ready to help out if someone has a question. No one knows everything, and in this Check out The Mentor Leader: business, everyone is Secrets to Buildalways learning. Who ing People and knows? You may have Teams That Win Consistently, the next question!” by former NFL coach Tony Dungy, for more tips.
Donna Shryer is a freelance writer based in Chicago.
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strategies to grow your business
THE ABCs
ROI
OF
If you’re investing in marketing but not tracking your returns, stop and read this before you spend another penny. By Gwen Moran
Whether you’re investing in marketing a specific listing or promoting the brand name of your real estate business, the only way to determine how effective your efforts are is to measure your return on investment, or ROI. To do so, you need to keep track of your spending on each activity as well as the leads coming in and action being inspired by them. REALTORS® should be tracking as much as possible, says marketing expert Ann Willets, who is based in Toms River, New Jersey. “With today’s analytics, some of the online activities are done for
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you. But you should train your staff to always find out where your leads are coming from. That tells you the marketing that’s working in addition to the referral sources that are working for you,” Willets says.
The Ripple Effect
As you run your business, you must evaluate all expenses throughout a transaction, says James Nellis II, CRS, Team Leader with The Nellis Group, Keller Williams Capital Properties in Fairfax, Virginia. Nellis knows that from placing the sign in the ground to closing, each listing costs him a minimum of $2,000 to sell. From there, he parses his marketing methods, customizing a plan for each property. He typically uses a combination of social media, blogging, print advertising and actually passing out flyers in person by knocking on doors around the property. Nellis uses “door-knocking” for what he calls the “ripple effect.” Based on 20 years in the business,
he has noted that when one neighbor puts a sign in the yard, it is highly likely that two to three more owners will list their own home in the same community. Rather than waiting for other agents to pick up that business, start knocking on doors and capture it yourself. Start with results. Nellis says the key to tracking ROI starts with the results you want. You need to be clear about what you expect each marketing effort to do for you so you know if you’ve hit the mark, he says. If you’re marketing a unique property, for example, you know you’ll want to find qualified leads who are likely to be interested in that property’s specific attributes. That will require more specialized — and, possibly, more expensive — methods than promoting a listing that is typical for the area. Track everything. Sam Miller, CRS, with RE/MAX Stars Realty in Mount Vernon, Ohio, and his team
make it a point to ask clients where they heard about their business or a listing both when they first call and as part of a pre-listing questionnaire. He also keeps logs of how many leads came in from various sources, tracking the ones that are most effective. Review the residual payoff. Beyond the immediate return on investment, it’s also important to look at the residual payoff, Miller says. He and his team host an event at a movie theater each year at a cost of about $1,500. They invite customers, prospects and local referral sources. He says holding it is a “no-brainer” because he consistently receives buyer referrals during and immediately after the event. “The residual effect of marketing from the invitation, the people calling us to thank us or to tell us they couldn’t make it but they appreciated the invitation, and the overall goodwill it generates are worth it. There’s a lot of trickling back later on that’s positive. When you look at that, the rate of return is massive,” he says. Reduce cost-per-lead. Being strategic and precise can also reduce your cost-per-lead, Willets says. For example, Miller finds that in his market, direct mail works well. He
says that mailing just once will do little, with a response rate of just 1 to 2 percent. However, repeated mailing can yield as much as 6 percent or more. He uses the U.S. Postal Service’s Every Door Direct Mail service. That service allows users to mail up to 5,000 pieces per day, targeting every residence in a specific area, for 17.5 cents per piece. To generate interest, Miller doesn’t send his mail to the neighborhood where the house is located. Instead, he looks for neighborhoods where the listing would be a 50 percent increase in home price, which he finds is a typical increase when people want to move up into a new home. So, if he has a $200,000 listing, he’ll mail to neighborhoods where the houses range from $100,000 to $150,000, since the listing will likely be in the price range prospective homebuyers are seeking, he says. Master the “free” mediums. Nellis is an ardent social media user, with more than 3,000 Facebook friends, 1,300 Twitter followers and a Facebook business page. Through these platforms he delivers
a combination of both general and real estate-related content. Even though these vehicles are free, he says he wouldn’t use them if they didn’t generate results. You have to count the cost of your time and the resources that go into using any marketing method, he says. If you’re spending time on something that isn’t working, even if it’s free, you’ve incurred an opportunity cost. In addition, when Nellis and his team have something “hot” or interesting to put on Facebook, like a great new listing or impressive sale, they’ll pay for Facebook’s Promote function so more people see it. Test. Willets says the value of testing can’t be overstated. Test email subject lines and headlines, and different methods of marketing. You can drastically increase the return on investment on a direct mail or email campaign. Measuring ROI helps you understand whether your marketing budget is performing the best it can. By tracking, Learn more testing and tweaking marketing your efforts, you can strategies in the CRS course get more promotional Business power from every dolPlanning and Marketing (CRS lar you spend. Gwen Moran is a writer based in Wall Township, New Jersey.
THE ROOTS OF ROI USE FREE CHANNELS Use “ free” channels such as social media and other online channels to generate leads. RESIDUAL PAYOFF Consider secondary payoffs such as general community engagement that increases your business profile. RESULTS Clearly identify the results you want each marketing effort to achieve.
200). Information available at crs.com/ education.
TEST Thorough testing of various marketing methods can significantly increase ROI by identifying the most effective approaches. REDUCE COST PER LEAD Adopt strategies that target your audience more precisely. TRACK Track all activities so you can identify how clients located your business.
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Howard Hanna, Ann Arbor, Michigan
ALEX MILSHTEYN, CRS
How do you attract new clients to your business? Marketing is key to my business. Your sphere of influence — the people you come into contact with on a daily basis — only takes you so far. To grow my business, I have gone oldschool, I heavily advertise in local print media and send out over 20,000 postcards per month.
How did you get started in real estate? The way I got started was somewhat different from most people I know. I was a high school student and I just woke up one day and decided that I wanted to do real estate. I didn’t have any family or peo- With the rise of ple I knew in the business — I electronic media, just went for it. I was licensed direct mail seems in 2001 when I was 18, and to have fallen out then got my CRS in 2012. It’s of fashion. How do almost 14 years later, and I you make it work? sell over 200 homes per year I do direct mail but with a with four administrative staff twist. Instead of targeting and four buyer’s agents. all of the addresses on five streets, for example, How has the I target the mailings to the CRS Designation right demographic, like influenced your age 55-plus with houses business? larger than 2,000 square For me, CRS is the Ph.D. of feet. These are folks who are real estate. To get the CRS either relocating or downsizdesignation requires more ing. I invest in demographic work than any other designalists that help me reach the tion. It has totally changed most probable sellers versus the way I refer clients to other farming the entire neighborparts of the country, too. Now, hood. Every year I look at I only refer clients to other where my clients are coming CRS agents. I don’t have to from and what’s happening ask those agents a bunch of in their lives and try to find questions — I know that they a demographic list that will know what they’re doing. attract more business.
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“ To get the CRS Designation requires more work than any other designation. It has totally changed the way I refer clients to other parts of the country, too. Now, I only refer clients to other CRS agents. I don t have to ask those agents a bunch of questions — I know that they know what they re doing.”
How do you get that conversation going? Most people I mail to aren’t immediately receptive. I keep mailing to them on a monthly basis, creating that repetition, so that they know my name and face. When it’s time for them to move, they call me. Also, I use more laid-back messages, such as, “Let me protect your investment,” or “It’s never too early or too late to think about a home sale.” Most importantly, I reassure these contacts that their information will be completely confidential.
If most of that gets squeezed into one or two quarters, what do you do during the rest of the year? My staff and I take the slower parts of the year to do business planning and training so we can be ready for the next busy season. I also travel to speak to groups of REALTORS® throughout the country. I’ve spoken at the previous two SELL-ABRATION® events.
What is your best The Ann Arbor advice to other market must have REALTORS®? its own special Just remember that we are all requirements. friendly competitors. I’m rated Absolutely. University towns are a seasonal market. People number 3 or 4 out of 1,000 in my region, but we all win affiliated with the university some and we all lose some. I start work on July 1, so we are unbelievably busy in April, want my colleagues to realize that clients come and go, May, June and July. But just but we, as REALTORS®, are because someone works for always here. There is no need the University of Michigan to “beat up” another broker on doesn’t mean that he or she a particular deal; you should has an unlimited budget. I treat others as you wish to be think of myself as a “general treated. At the end of the day, practitioner” — I sell everyI always do my best to keep thing from a $100,000 condo these relationships going. to an $800,000 investment property to a $2 million house. We’re all in this together. Alex Milshteyn, CRS, has been a REALTOR® since 2002, and achieved his CRS designation in 2012. He can be reached at 734.418.2400 or alex@alexmi.com. Visit him at www.alexmi.com.
Photo: Scott Stewart
[peer to peer]
profiles of people to watch
Working in a university town, Alex Milshteyn, CRS, finds that April – July are very busy months, as staff start working at the university on July 1. During slow months, Milshteyn and his staff do business planning and training.
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Photos: Adam Murphy
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2015 CRS President Dale Carlton’s background in law and educational instruction makes him well-suited to lead CRS into the future. Interview by Mike Fenner
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council counsel
As a kid who grew up moving from city to city all over Arkansas, Dale Carlton, CRS, learned a thing or two about how to make new friends. His father worked for an energy company, and the family, including his mother and two older sisters, moved 14 times as Carlton’s father was transferred for job promotions. “I learned how to establish new friendships and get to know people in every city,” he says. “That helped shape my personality.” Those people skills have served Carlton well as a CRS certified instructor, a CRS committee member and now 2015 CRS president. Prior to pursuing a career in real estate, he worked in the ministry, then attended law school and earned a J.D. After entering real estate, he hit the ground running, becoming a CRS certified instructor soon after earning his CRS Designation in 2005. Carlton takes the helm at CRS during a period of transition, as the Council rolls out its new strategic plan. The plan is intended to build and nurture connections among members locally and nationally; grow membership by communicating its value and the flexibility of member benefits; develop new education and learning paths to serve REALTORS® throughout their careers; provide support services, such as recruitment of assistants, coaching/mentoring and consulting; and expand CRS’s education and training internationally. The Residential Specialist caught up with Carlton shortly after he was installed as the 2015 CRS president to discuss his background, his commitment to the real estate industry and his vision of the future direction of the Council of Residential Specialists.
What was your background before you got into the real estate business?
I was a student minister before attending law school at the University of Arkansas in 1998. To pay the bills during law school, I started out doing general repair work for real estate agents to help them get through the inspection process to the closing.
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While working as a repairman and still in law school, I started coming across properties that would make good rental units. My brother-inlaw was in real estate, and I decided to get my real estate license to provide additional income and save on commissions when buying rental properties. All of those experiences helped me gain knowledge and understanding about how to build homes, renovate homes and work closely with clients as they make one of the largest financial decisions of their lives. The truth is that I never intended to be a REALTOR®. But once I got into the profession, I loved the relationships and the joy of helping people buy and sell real estate.
What attracted you to real estate as a profession?
I liked the positive nature of the business. In a lawsuit, at least one party is mad at the end of the case. With real estate, in most cases, there are multiple parties who are excited about a closing. The buyer is excited to buy a house, the seller is happy to sell their house and there are happy agents and brokers. It also seemed to me that the earning potential was far greater in real estate than in law.
How did your training as a CRS help you build a successful career?
The single most influential factor in my career has been the education and relationships I gained through CRS. I initially did not see the value in getting a designation: After all, I was already an attorney with the letters J.D. after my name. However, a dear friend and CRS instructor, the late Tina Daniel, asked me to take a CRS investment course that was being held in northwest Arkansas. I remember telling her that I already had quite a few investment properties and wasn’t interested in taking an investment course. She was persistent and offered to pay the fee if I would only show up and listen. I figured if she felt so strongly about the course that she was willing to pay my way, I should at least give it a chance. It was that first course on investments, the following course on business planning and marketing, and a listings course that helped me redefine my real estate career. Those courses helped me recognize that as a REALTOR®, I am in control of my future. Shortly after that, I started the process of becoming a CRS
council counsel
instructor. All of this is the result of a single relationship with a CRS who cared enough to encourage me to go to an investment course. I can only hope that I can help those agents who come into my life the same way that Tina Daniel helped me.
How does your background in law inform your work as both a REALTOR® and a CRS instructor?
Law gave me a foundation in analytical thinking. Having a legal understanding of contracts, training in negotiations and an understanding of the pitfalls that real estate agents face helps me make better decisions as an agent. As an instructor, I learned that agents who attend a course want to gain knowledge that will impact their business on a regular basis. My experience and educational background in real estate law and tax law allows me to highlight skills that can help agents build a lifetime profession in real estate.
When did you start getting involved as a volunteer leader for the Council? Why?
I began applying for committees within a couple of years of becoming a CRS Designee. I had
received so much from the education and opportunities that CRS had provided that it was important for me to be involved and give back to CRS. I had served on approximately 40 different committees, subcommittees and forums prior to applying for first vice president in 2012. As a result, I have been fortunate to be a part of some significant changes at the Council as we rethink how to ensure the organization’s success for decades to come.
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VITAL STATISTICS
Dale Carlton, CRS, J.D. Broker/Owner Carlton Realty Inc. ÄÄ CRS since: 2005 ÄÄ REALTOR® since: 1998 ÄÄ CRS Certified Instructor since: 2005 ÄÄ Undergraduate Degree: Ouachita Baptist University, 1994 ÄÄ Law Degree: University of Arkansas School of Law, 2001
What have your years in leadership taught you about CRS?
Leadership is not a glamour position where everyone wants to know your name. While working in leadership you begin to see the bigger picture of how the Council can provide tools and services to its members. The general member is often not aware of the tools, benefits and information that are provided by CRS, nor do they see the efforts of the volunteer members who are working hard to keep CRS a top-notch organization.
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council counsel
It is most important to me that CRS realizes the influence it has in the industry and identifies new ways to help educate agents and create relationships that will impact our profession.
Learn how to get involved in CRS leadership at www.crs. com/about-us/ leadership.
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I have learned how important it is to consider the general member when making decisions for CRS. While in leadership, I have enjoyed many conversations with members who have shared their struggles, their needs and their excitement in the real estate profession. Most importantly, I have seen how our staff works diligently to meet the vision of CRS and move the Council in the direction of our strategic plan. They are often forgotten in an organization with over 30,000 members, but after working with them for the past several years, I have gained an understanding of their personal love for CRS and their dedication to helping our members become more successful.
for buyers in addition to helping builders and lenders understand how rising rates will impact the market. Finally, much of the real estate education that agents receive focuses on protecting the real estate agent and broker from lawsuits resulting from accidents, mistakes and misleading information. While careful practices may protect agents from liability, we must remain vigilant in putting the interest of our clients above our own. If we don’t, technology and the wide availability of information may continue to erode our relevancy as a profession.
Where do you see the real estate industry heading in the coming year and beyond? What are the big issues and challenges REALTORS® will face?
I have no ambition to leave a legacy. It is most important to me that CRS realizes the influence it has in the industry and identifies new ways to help educate agents and create relationships that will impact our profession. My time as CRS president is short: The Council existed before me and will continue to thrive after I have been part of its leadership. I always try to step back and attempt to see things from the perspective of the entire membership. I hope that CRS members and staff know that I will help the Council explore new paths, evaluate new opportunities and look at things from the perspective of every member. I care immensely about what CRS has done for me. I will work hard to pursue what is best for the future of the members of the Council of Residential Specialists.
The impact of technology on our profession is huge. The availability of information, specifically listing information, to the average buyer and seller has changed the agent/client relationship. We need to identify new ways to establish trust and nurture relationships with our clients with the help of technology, not in spite of it. Meanwhile, we have realized a long run of significantly reduced interest rates, which has allowed average buyers to purchase more expensive homes at today’s low rates. These low interest rates won’t be here forever, and affordability of homes in the higher price range will decrease when rates rise. It is important for us to emphasize the current opportunity
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What kind of legacy would you like to leave with the Council?
Michael Fenner is the editor of The Residential Specialist.
service
minded
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How REALTORS速 can help demystify the financing process for homebuyers. By Cheryl Winokur Munk
Money MATTERS
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service minded
Amid fierce competition for customers, some REALTORS® are going the extra mile to help buyers, especially younger or first-time purchasers, muddle through the often-complicated financing process.
REALTORS® are lending a hand in a variety of ways, such as helping customers gain a broad understanding of different types of loans and programs that may suit their needs. They are also helping customers understand how much house they can afford — and counseling them when a particular property might stretch them too thin. Of course, REALTORS® have to be careful not to delve into areas beyond their expertise — or alienate customers with their unsolicited advice — but many REALTORS® believe that having a good understanding of financing and an ability to share that knowledge with customers is a critical part of their job. “Our role is to educate people. When I get done with buyers or sellers, they know more about real estate and how it works than they did coming into the process,” says Don Bowman, CRS, a sales associate with Watson Realty Corp. in Middleburg, Florida. While advising customers about financing is not their primary focus, REALTORS® say it’s one of the many hats they wear throughout the sales process. “I’m here to sell real estate. But part of my expertise is helping buyers in every facet of their real estate transaction, from collecting the binder to financing to inspections to insurance,” Bowman says.
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Know Your Customers
Spencer says she takes special care to make sure the short list of mortgage brokers she recommends to customers is current and carefully vetted. She interviews every lender she recommends, researches their company and checks their references. She won’t use lenders unless she’s had some business dealing with them from either the buyer’s side or the seller’s side and has done additional due diligence on her own.
To give the best possible advice about financing, Tonyeil Spencer, CRS, broker owner of Spencer Realty, LLC in Aurora, Colorado, uses a “ Our role is detailed questionto educate naire to help her better understand people. customers’ broader When I get financial pictures. Before customers get done with into her car to look buyers or sellers, they at potential properties, she goes over know more about real information such as estate and how it works how much they have than they did coming into already saved for a down payment and the process.” closing costs, and — Don Bowman, CRS how much they think they can afford. Once she has a better underLook Out for Red Flags standing of their finances, Spencer In addition to providing basic talks to customers about various information about loans and loan programs that are available helping customers to select compeand also gives them a broad tent mortgage brokers with whom overview of the basic requirements they’ve had good dealings in the of several loan types, including past, REALTORS® say they play an conventional loans and city- and important role in helping buyers state-assisted programs. Based feel comfortable with the financing on their answers to her questionprocess. Bowman says he does a naire, she matches customers with lot of hand-holding, especially with lenders on her preferred list. For first-time buyers, counseling them on the ins and outs of the mortgage example, one lender specializes in first-time homebuyers, one focuses process and how to determine what they can afford. “Most of them will on approving hard-to-close cases feel much more comfortable with and another specializes in stanyou helping them,” he says. dard loans.
service minded
Although customers don’t always like hearing advice on what they can and can’t afford, Bowman believes it’s important to “push the envelope,” especially with young or inexperienced buyers. If a customer has trouble scraping together $500 or $1,000 for a binder, then it’s probably a sign he or she can’t really afford to buy something at this point, Bowman says. Of course, REALTORS® walk a fine line because if they push too hard, a customer could bolt. But Bowman says he wouldn’t be doing his job properly if he didn’t gently point out obvious red flags. “We’re the first line of defense, so to speak, with buyers buying too much house,” he says.
Setting Realistic Limits
When it comes to financing, REALTORS® say there are limits to the advice they feel comfortable giving. “We don’t have to give them lending advice, and I know many REALTORS® who won’t because they’re afraid of the liability,” Spencer says. “I give them a broad view of what their options are, but when it comes to discussing specific terms or programs, that’s where I refer them out because I’m not an expert in those fields.” Harlan Mayer, CRS, principal broker with RE/MAX Equity Group in Portland, Oregon, believes REALTORS® should help customers understand that when they purchase a home they’re buying two things: a lifestyle and a payment for that lifestyle — and explain to them that they should be comfortable with both and not be house poor. But beyond that
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advice, he believes it’s important their peers. REALTORS® are to partner with trustworthy mortbusy enough as it is: It can be gage brokers and work together to extremely challenging for them to create the best possible experience stay on top of the latest offerings, for the customer. “We are required he says. to stay within our area “REALTORS® are of expertise,” he says. experts at what they According to Norman T. do. We want them to Koenigsberg, president and CEO understand the loan products that of First Choice Loan Services Inc. are available. At the same time, we of East Brunswick, New Jersey, hope to lighten their workload REALTORS® should be aware and have them rely heavily on of financing options in order to trusted mortgage professionals provide their clients a high-level to provide the latest on qualificaoverview. When it comes to the tions and details of the mortgage nitty-gritty loan details, it’s best process,” Koenigsberg says. for them to have a trusted loan originator to rely on. Loan rates Cheryl Winokur Munk is a freelance writer and and programs change frequently, editor based in West Orange, New Jersey. and lenders may have unique products or Learn more by taking the CRS Course Financing and Tax Advantages for Agents and programs that disTheir Clients: bit.ly/1vBf6rN. tinguish them from
brushing up on the basics
Some REALTORS® may shy away from the financing aspects of a deal because they feel out of their element. But Douglas Richards, CRS, a retired REALTOR® in Sandy, Utah, says REALTORS® should acquire knowledge about financing so they do the most effective job possible for their customers. He teaches CRS 205 — Financing and Tax Advantages for Agents and Their Clients. As part of the class, Richards teaches REALTORS® about debt and mortgage management strategies. For instance, the class touches on areas such as refinancing and how long one needs to stay in a home to break even on the cost of refinancing. He also discusses when it might be appropriate for borrowers to get an ARM (adjustable rate mortgage) or accelerate their mortgage. “The goal is to give REALTORS® additional financial tools to help their customers make good financial decisions,” Richards says. “There are lots of different kinds of loans and sometimes lenders package them in a certain way to make them appear better, but they may not be. There are many cases where real estate agents — armed with a little knowledge — might be able to save customers thousands of dollars.” In addition to CRS courses, some REALTORS® find it useful to meet periodically with local mortgage brokers to stay up-to-date on lending trends. Tonyeil Spencer, CRS, Broker Owner of Spencer Realty, LLC in Aurora, Colorado, for instance, meets twice a month with the lenders on her recommended list to find out about any changes that may be occurring in federal, city or state loan programs and whether there have been or are expected to be any changes to their loan underwriting requirements. While they have to be careful not to go outside their area of expertise, anything REALTORS® can do to increase their knowledge about different types of financing options helps tighten a REALTOR’s® bond with customers. “If they have a question about anything to do with real estate, I want them to call me. I don’t want them to call someone else,” Richards says.
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WORD OF MOUTH NEVER TASTED SO SWEET
EY H T D L U O C HOW
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SUCCESSFUELED ABANDON
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Referrals and repeat business from past clients can pave the way to a thriving real estate career.
Julie Hall, CRS, began planting the seeds of her referral-based business in 2006 when the housing market was in decline. Fueled by her passion for food and wine, Hall decided to start a monthly wine-tasting group in her home as a way to meet new people. “I went to culinary school and was an assistant winemaker, so I knew a lot about wine. First I invited a few friends from high school, then after several months, I encouraged them to invite their friends,” Hall recalls. As she pours the wine, she chats with each guest and keeps an ear open for news about their lives, such as engagements or new jobs. She rarely discusses real estate at these events, but instead follows up with guests by email to offer assistance. “I built the majority of my sphere of influence through this wine group, one relationship at a time,” says Hall, who estimates that 95 percent of her business comes from repeat and referral clients. “Real estate transactions happen because of life events, not the market,” says Hall, managing broker with Windermere Real Estate/ Yarrow Bay in Kirkland, Washington. “If you engage with people, listen for changes in their lives and provide exceptional service, they will always come to you when they need you because you will be top of mind,” Hall says.
REALTORS® who have built lucrative referral-based businesses say they started by creating meaningful connections with individuals in their sphere, including past clients, friends and allied professionals. To connect with these people, some agents rely on a system of frequent and consistent follow-up to share community news and local market data, while other agents host events to build goodwill and create memorable experiences. Although cultivating these relationships takes time, the effort can pay off in repeat and referral business for years to come.
Food, Wine and Real Estate
As Hall’s wine group became more popular over time, she asked guests who had recently bought a house to host the event in their home. “This showed their pride of ownership and excitement that homeownership is possible. Most people are scared to do their own events, so I help out by selecting the wines and playing host,” says Hall. About 100 people receive email invitations to each monthly tasting, which draws 20 to 30 people. “It’s a simple concept, but you have to be dedicated to making the event memorable and consistent.”
BY THE NUMBER S
THE TYPICAL REALTOR® EARNED
21
%
21
%
OF THEIR BUSINESS FROM REPEAT CLIENTS AND
THROUGH REFERRALS FROM PAST CLIENTS. 20 15
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Source: NATIONAL ASSOCIATION OF REALTORS® 2014 Member Profile
By Regina Ludes
Jan Feb
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trade winds
In addition to monthly wine groups, Hall plans a Thanksgiving potluck dinner, weekend getaways to fun destinations and small dinner parties that she hosts in her own home. Each event enables Hall to expand her social circle, while also showcasing her leadership ability and knowledge of the community, which furthers her credibility with clients, she says. “It’s always enjoyable to work with a referred client because they already know who you are and there’s built-in trust. The relationship is more comfortable when we share a common interest or have a mutual friend,” Hall says.
Create Raving Fans
“It’s much more cost-effective to get business from a referral than to spend money on getting a new customer,” says Frank Serio, CRS, with RE/MAX by the Sea in Bethany Beach, Delaware, and a CRS-certified instructor who teaches the Referral Building course (CRS 210).
Serio says software programs such as Top Producer can help agents manage their client database and create a system to contact them regularly. “The key is to balance your personal contacts with good, relevant information they can use and pass on to people they know,” Serio says. “You don’t always have to sell real estate to them. The information could be about community events, how to prep their home for the winter or preparing their home for sale.” Serio advises agents to focus on their core group of raving fans — clients who love your business and have given you referrals previously. When these primary supporters forward your information to other individuals in their sphere, the pool for potential referrals expands. “Individuals in your sphere may not refer someone directly, but someone else they know in their sphere may refer someone to you,” Serio says. Promoting more heavily to these core clients is one strategy
agents can use to quickly revitalize their career after a market downturn, he adds.
Constant Contact
In Holland, Michigan, with approximately 50,000 residents, Larry Kleinheksel, CRS, of Coldwell Banker Woodland Schmidt, still uses the same client referral system that he learned from a top-producing agent at his firm more than 24 years ago. “He pulled me aside and said, if you follow this system and keep your name in front of people every month, you will be successful,” Kleinheksel recalls. His client contact system entails sending either a postcard or newsletter each month to the 1,200 people in his database, which includes past and current clients, allied professionals and “anyone that I can call by their first name when I walk down the street,” he says. Each newsletter contains valuable news and tips, such as current interest rates, market trends,
BY THE NUMBER S
MAKING THE MOST OF THE MADNESS Business REALTORS® earned through referrals from past consumers and clients, 2013
%
e Non L es
14 %
0 an 1 s th
%
5 to 2 Up
%
16
%
19
%
0 to 5 Up
%
0 an 5 h t f ile e er Pro Memb 2 014 Mor S R A LT O ®
e: S ourc
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S SOC
IA
OF T ION
RE
%
21
%
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gateways to referrals Check out the following resources from CRS to learn more about how to build a successful real estate referral business. CRS Education Courses Building an Exceptional Customer Service Referral Business (CRS 210). This highly interactive course gives you all the essential tools you need to refocus your business plan to a customer-service centered, repeat and referral business. Earns 16 credits toward the CRS Designation.
Get Plugged Into CRS Referrals
bit.ly/1yd9adR
crs.com/education/courses/ recording-become-referral-generating-machine-2013
Webinar recordings Surefire Ways to Build Your Referral Business
Become a Referral Generating Machine
Keeping in Touch with Your Sphere — Legends Video
crs.com/education/courses/ recording-surefire-ways-build-your-referral-business
recipes and local events. “You have to make it personal or people will not read it,” Kleinheksel says. Kleinheksel tracks clients using Top Producer, and keeps a stack of note cards in his desk drawer to dash off a brief message to those celebrating anniversaries and birthdays. For the core group of 25 clients who have consistently referred new business, he sends a gift certificate for their favorite restaurant each year. The traditional approach works for Kleinheksel, who averages one to three referrals from every monthly mailing, and who has received 35 total leads through October 2014 that have all been converted to sales or listings. He has earned $13 million in total sales volume every year for the past three years, and is on track to reach that level in 2014. Kleinheksel says when the housing market declined five years ago, he sent fewer mailings to cut expenses. But when he noticed his business starting to drop off, he returned to the monthly schedule. “It does cost money to send postcards, but you have to spend money
crs.com/education/courses/ recording-get-plugged-crs-referrals
crs.com/education/courses/ keeping-touch-your-sphere-legends-videos
“ Individuals in your sphere may not refer someone directly, but someone else they know in their sphere may refer someone to you.” — Frank Serio, CRS
to make money. And you have to provide good service,” he says.
A System for Success
At the advice of a colleague, Robert King, CRS, adopted a similar follow-up system six years ago that has helped him build his business through referrals. The REALTOR® with Tampa Bay Infinity Group at HomeXpress Realty stays in touch with clients every month using a combination of email, phone calls and handwritten notes. The materials and messages he uses are provided by Buffini & Company, which helps simplify the process. Individuals who regularly give referrals receive more frequent communication, King says, while those who haven’t responded in a while or provided referrals are weeded out every year.
Today, roughly 87 percent of King’s business comes from repeat and referral clients, and he averages 38 transactions per year from referrals. “By constantly staying in touch, I can keep people aware of my services so when they have a real estate need, they can contact me,” King says. While Facebook, Twitter and Google Plus have helped him keep his name in front of people, they have not generated new sources of business or referrals so far, he adds. The key to successfully building a referral-based business, King says, is “having a process in place to consistently follow up with your contacts. That will make your life a lot easier. Also, your overhead will be lower because you aren’t relying on advertising.” Building a successful referral-based business does not happen overnight. But the time and energy agents put into cultivating their client relationships can be a wellspring of business for years to come. Regina Ludes is a freelance writer based in Chicago. Learn more by picking up the book, The Referral Engine: Teaching Your Business to Market Itself, by John Jantsch.
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ALWAYS BE
CLOSING Stretch your income to cover those inevitable slower periods. By Gayle Bennett
BY THE NUMBERS The average number of transactions for REALTORS® in 2013 was
12
Source: National Association of REALTORS® 2013 Member Profile
Jan Feb
30
The Great Recession wasn’t pretty for Ralph De Martino. De Martino, CRS, president of Ocean International Realty, sells coastal condos and houses in Miami Beach, Florida. “From 2008–2010, the market was in a nosedive and everybody was afraid to buy. Everybody just stopped,” De Martino says. There was over 60 months of inventory for resale in his market at that time, he says. Even investors weren’t buying then. During this period, De Martino was working harder than ever, but it’s hard to move real estate when people don’t want to buy. “I remember saying to my brother once that if I went to the beach every day for the last three months, I would have had exactly the same results as working 65 hours a week,” he says, recalling that he had no sales in that period. Things were definitely grim for a few years, but De Martino made some adjustments to make it through — cutting all the fat from his budget, becoming a buyers’ agent and selling REOs for a bank, and making sure he always had three months of expenses saved. And in 2011, he was rewarded for his perseverance and smart budgeting when the market came back with a vengeance. He’s now averaging about 2.5 closings a month. Even agents who got through the recession relatively unscathed might experience seasonal
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slow periods. According to the National Association of REALTORS®, historically, sales decline by an average of 16.4 percent in September compared to August. They stay steady in October and then generally dip again in November by 8 percent. December holds and then there’s an average plunge of 27 percent in January. Experienced CRSs get through seasonal or any other slumps by stretching their commission checks over time. They have three to six months of expenses socked away, have a separate account to easily pay quarterly taxes and know that when things are slow, it’s exactly the right time to be investing in their business.
Savvy Saving
Scott Furman, CRS, with RE/MAX Classic in St. Davids, Pennsylvania, works in the Philadelphia suburbs of Chester, Montgomery and Delaware Counties and has four to five contracts per month. He’s had steady year-over-year growth in business since his start in 1979, even through the economic downturns. But a few years ago he found that even though his business was consistently growing, he was always scrambling to pay his quarterly taxes. So he started putting 10 percent of every check into a separate account that he uses to pay his taxes and save for retirement. “It didn’t matter if it was a $10 check or a $10,000 check,
perfect
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18 %
Less than $10,000
14%
$10,000-$24,999
9%
Annual income of REALTORS®, 2013
$25,000-$34,999
$50,000-$74,999
$75,000-$99,999
9
%
$100,000-$149,999
$150,000-$199,999
$200,000-$249,999
2
BY THE NUMBER S The typical agent had a sales volume of
1.8 million
in 2013.
Source: National Association of REALTORS® 2013 Member Profile
%
2%
$250,000+
$
2%
6
5
%
5
%
%
3%
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Gross Income
WORKING FOR WINTER
It’s no secret that it costs money to make money — especially in residential real estate. Agents who aspire to reach the upper echelon of the profession must commit to investing in their business.
it was the same process. It never went to me first,” he says. Over time, he knew the idea was sound, but the amount wasn’t enough, so he raised the percentage to 25 percent. John MacGilvary, CRS, a regional manager with Berkshire Hathaway HomeServices Verani Realty in Londonderry, New Hampshire, also believes in the percentage plan. He was an active agent until 2008 and now he oversees over 100 agents. He tells each of them to set aside 15 to 20 percent of each commission
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11 %
Source: NATIONAL ASSOCIATION OF REALTORS® 2014 Member Profile
—Mary Lou Erk, CRS
32
10 %
12%
14%
Net Income
“ I end up doing more [marketing] when the market s down. I don t think a lot of REALTORS® look at it that way. They say, I don t have the money to do that. But then they aren t treating it as a business.”
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12%
11 % 12%
$35,000-$49,999
18 %
for taxes, another 10 percent to invest in their business and another 10 percent to pay down any debt — all in different accounts to keep things straight. Furthermore, financially sound agents or brokers know their monthly expenses, and they save three to six months of that sum. “Don’t buy nonessentials, like a new car, vacations and extra clothes, until you have three months of that monthly nut put aside,” De Martino advises. “With three months, you can usually stay ahead of the game without having to borrow money.” Saving a minimum of three months’ expenses can take two to three years, MacGilvary says. Once his agents reach that point, he advises them to go one step further: “Then you can get into the habit of paying yourself a monthly salary, as opposed to paying yourself by commission check," he says. "Then you are always getting paid whether you have a good month or a bad month.”
perfect practice
26 %
MacGilvary says doing this changes an agent’s mindset from needing closings to needing leads. “If you generate enough leads, you’ll have the closings, but you’ll never have the closings if you don’t have the leads. If you get to a point where you are paying yourself a salary, your focus tends to be more on leads than closings because it’s no longer a life-or-death situation from month to month.”
Invest in Your Business
Mary Lou Erk, CRS, associate broker with Coldwell Banker Hearthside, REALTORS® in Doylestown, Pennsylvania, has about 25–30 transactions a year in an area with a strong job market, good schools and beautiful, old farm houses. Her expenses include a marketing specialist and a steady stream of marketing mailers. She knows that these expenses are worth it, however. “I end up doing more when the market’s down,” she says about her marketing. “I don’t think a lot of REALTORS® look at it that way. They say, ‘I don’t have the money to do that.’ But then they aren’t treating it as a business.” Erk also knows that when things slow down, she needs to focus on the “bread and butter” houses. For her, that’s the lower to middle segment of the market that’s not as volatile. “I love to sell the Previews luxury homes, but what’s selling now is everything between $300,000 and $500,000,” she says of her area. “The luxury homes require more time and marketing, so you have to be prepared by having more consistent sales in the lower segment of the market. And that’s what’s kept me going.” And this advice may sound simple, but a lot of agents don’t do it: Make sure expenses are really worth it. In truly tough times, that might mean closing down an office, like De Martino did in 2009. But more generally, MacGilvary recommends not spending too much on a car, for instance. “We all get hung up on image,” he says. “The [client] who sells the $700,000 house — you
[feature]
legwork + lunch = leads
Agents who do well have a lot of closings, but John MacGilvary, CRS, a regional manager with Berkshire Hathaway HomeServices Verani Realty in Londonderry, New Hampshire, points out that it’s really that they have a lot of leads. Here are two inexpensive ways he recommends generating leads that help keep business and income steady:
Research the long-term owners.
Some people want to move every five years or so, but others find a house and stay put to raise their family. He estimates that about 30 percent of any area is made up of people who’ve owned their house for 20-plus years. “They are flush with equity,” he says. And there’s a good chance they are looking to downsize now that the kids are gone or about to be. Go through the property records to find those people, he says. “If I was limited in my resources, I would find all the neighborhoods that were built in the 1980s to 1995,” he says. Of those original owners, “I would find out who hasn’t moved since they bought it, and I’d market to them.”
Take a painter to lunch.
House painters are a category of professionals who might know about a listing before an agent, since many people want to spruce up their house before they even talk to a REALTOR®. MacGilvary recommends establishing a good professional relationship with a busy house painter. Once you’ve done that, you can ask the painter to ask his clients why they are having their house painted. If it’s to put it on the market and they don’t yet have a REALTOR®, then the painter can refer them to you. Other professionals to target include financial planners and tax accountants. “Take a few business owners out to lunch and stay in contact with them on a monthly basis to build that type of business relationship,” he says. “A business referral is worth more than gold because they are attaching their business to yours, and you can’t beat a referral like that.”
know what they need? Someone they can trust, not someone with a flashy image.” CRSs who’ve socked away a good nest egg to cover taxes and expenses with a bit of savings on top, will not only be OK if there’s a downturn, they might even be able to take advantage of it. “I think it’s important to invest back into this business, to buy and own real estate,” Furman says. “When you are in a slow period, that could perhaps be a downturn in a market somewhere. So that’s an opportune time to go out and acquire properties.”
Log into your CRS member account to access the recording of the CRS Webinar, Tax Talk 2015, at crs.com/ resources/ coursematerial/ recording-linktax-talk-2015.
Gayle Bennett is a writer and editor based in Washington, D.C.
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resources for learning & leisure GOOD READS
DOODLE, NAP, QUIT…
learn?
Learning is a ‘restless, piecemeal, subconscious, and somewhat sneaky process,’ says a New York Times science reporter. We may have to relearn how to do it. task in such a way that we give our brains permission to toil on knotty problems “offline” — while we’re preoccupied with other activities, Near the end of this lightfor example, or simply asleep. hearted take on a serious In How We Learn, he presents the topic, Benedict Carey — a science work of visionaries who are bringreporter for The New York Times ing more intuitive, more hands-on since 2004 — identifies five things and more relaxed learning methods we’ve been taught to believe are to the attention of the American enemies of learning: distractions, public. “In the past few decades,” interruptions, ignowrites Carey, “researchers have rance, restlessness HOW WE LEARN: uncovered and road-tested a host of and even giving up. THE SURPRISING TRUTH techniques that deepen learning — All five are straw ABOUT WHEN, WHERE, techniques that remain largely men he propped AND WHY IT HAPPENS unknown outside scientific circles.” up earlier in How by Benedict Carey Why haven’t these small alterWe Learn only to Random House (convincingly) knock ations in how we study or practice 254 pages, $27.00 entered the mainstream? Because them down, and by they are so contrary to what’s been the time we get to this recap, we’ve read drummed into our heads all our enough of his you’ve-been-learning- lives about best practices for learning — “Find a quiet place to study,” it-wrong argument to know that for example, or “Don’t let anything he’s omitted a sixth, which hapinterrupt you” — that we doubt pens to be my favorite: napping. they will work. Who knew, for Carey wants to liberate learning example, that varied practice (or from its status as a brute-force chore “interleaving”) outstrips the focused often done in isolation and blend kind, or that disrupted study sesit into “the more random demands of life.” He wants us to go about the sions lead to better performance? Reviewed by Allan Fallow
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Forget About It
Consider the act of forgetting. Not something you’d boast about as an educational stratagem, right? As Carey puts it, “The world is so full of absentmindedness, tunedout teenagers, misplaced keys and fear of creeping dementia that forgetting feels dysfunctional, or ominous.” But to forget is not necessarily to fail: Not only does it strengthen subsequent learning to revisit forgotten material, but forgetting suppresses “background noise,” or competing information, allowing the correct signals to stand out. This distinguishes forgetting as “nature’s most sophisticated spam filter,” in Carey’s phrase. “It’s what allows the brain to focus, enabling sought-after facts to pop to mind.” The new learning research is likewise demolishing the “consistency doctrine” — the one about following the same study ritual each time, or using earplugs or a headset to block out background noise. Instead, a new theory about optimum recall, known as reinstatement, holds that
having some sort of stimulus in the “came particularly readily during the study environment, typically music, slow ascent of wooded hills on a is better than dead silence. “The sunny day.” background music weaves itself subconsciously into the fabric of Free Association stored memory,” Carey explains. English educator Graham Wallas “So much for the sanctity of the devoted his professional life to the quiet study room.” question of why critical insights Breaking up study time — a hit us precisely when we are not technique known as “distributed working on a problem. Some kind learning” or “the spacing effect” — of internal mental process, he likewise has huge advantages over conjectured, must be operating “that trying to absorb everything about associates new information with a topic in one concentrated crunch. past information. A type of internal This explains why students who reorganization of the information pull all-nighters typically show seems to be going on without the up for the second term of a class individual being directly aware of it.” unable to recall anything from the So the next time your boss catches first. “It’s a little like overstuffing you daydreaming, explain that you a cheap suitcase,” Carey observes. were in fact incubating a business “The contents hold for a while, then problem — a less intense but often everything falls out.” But he also more effective way of subconvents his legitimate outrage that sciously continuing active work. a principle this powerful has not When the author himself hits a enjoyed a “quick, clean ride from snag, he reveals, his incubations take the lab into classrooms.” the form of blasting music through a For much of the last 100 years, pair of headphones, walking around psychologists have — exasperatthe block or roaming the hallways of The New York Times in search of ingly, inexplicably — confined the study of [the spacing effect] to short some unsuspecting soul to whom he can complain. “I lose myself in the lab experiments. It’s as if doctors kvetching, I get a dose of energy, discovered a cure for diabetes and I return 20 minutes or so later, and spent 50 years characterizing its I find that the intellectual knot, molecular structure before giving whatever it was, is a little looser.” it to a patient. Nor does Carey claim the Readers subject to the sort of benefits of percolation exclusively industrial-strength distractability that happens to afflict this reviewer for himself. If a quick hit of social media is all it takes to let the subwill find special solace in Carey’s chapter on the role that “incubation” conscious mind attack a problem on its own, writes Carey, “without or “percolation” play in problemthe conscious brain telling it where solving. Although the author to go or what to do,” then our claims he had to beg his way into creeping hysteria over the dangers the University of Colorado, he did of distracting digital products may well enough there to graduate with a degree in mathematics. So it feels be misplaced. “In this case,” Carey natural to find him quoting German suggests, “distraction is not a hindrance: It’s a valuable weapon.” physicist Hermann von Helmholtz The same goes for How We on the wisdom of abandoning a thorny problem: By literally walking Learn. away from his work table whenever Follow magazine writer and editor Allan Fallow he hit a mental roadblock, Helmon Twitter @TheFallow. holtz discovered that new ideas
YO U M I G H T A L S O L I K E …
THE INNOVATOR’S METHOD By Nathan Furr & Jeff Dyer [Harvard Business Review Press] 288 pages $ 19.55/hardcover Lessons learned from the startup method for nurturing new ideas and reducing failure rates. FAIL BETTER By Anjali Sastry & Kara Penn [Harvard Business Review Press] 336 pages $ 22.23/hardcover How to create the conditions that allow you to learn the most from every mistake.
WELL-DESIGNED By Jon Kolko [Harvard Business Review Press] 224 pages $ 20.97/hardcover How to connect with consumers by designing products that empathize with them. HOOKED By Nir Eyal [Portfolio Hardcover] 256 pages $ 15.57/hardcover How products influence behavior and what you can do to take advantage of the ‘hook cycle’ that many successful products use.
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A P P -Y D AY S A R E H E R E A G A I N
resources for learning & leisure
freeFOR ALL
There’s no such thing as a free lunch, but there are definitely free apps. And unlike many other “free” offerings, they can be extremely useful — whether you’re looking for enhanced functionality or something more light-hearted. The following apps are not only free — they’re also some of the best apps available.
1
2
DROPBOX
QUIZ UP
dropbox.com
Dropbox is a cloud storage app that allows you to store and access files anywhere you have Internet access. A basic account comes with 2GB of free storage; however, you can upgrade and receive more storage for a fee.
quizup.com
Quiz Up offers what its creators call “the biggest trivia game in the world.” With over 220,000 questions on over 400 topics, you can find out whether you really are the master of everything from science to Seinfeld.
YO U M I G H T A L S O L I K E …
ADA’S ALGORITHM By James Essinger [Melville House] 272 pages $ 18.74/hardcover Examines the life and work of Ada Lovelace, who discovered key concepts about computing years before the computer age.
FIZZ By Ted Wright [McGraw-Hill] 240 pages $ 18.63/hardcover A marketing guru lays out his techniques for word-of-mouth marketing in a digital world.
THE INNOVATORS By Walter Isaacson [Simon & Schuster] 560 pages $ 21.00/hardcover
3
4
5
GATEGURU
MINT
WUNDERLIST
gateguru.com
Regardless of which airline you fly, GateGuru is an app every air traveler should have on their phone. Beyond standards like flight-tracking and terminal maps, GateGuru’s user-submitted data includes restaurant recommendations, checkpoint wait times and more.
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mint.com
Mint for iPhone is the smartphone portal for Mint.com’s free financial planning software. The app connects all of your financial accounts and provides both big-picture and drilled-down data in a sleek, easy-to-use package.
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wunderlist.com
Wunderlist is a sleek, free to-do list app for all your devices. The free version lets you create to-do lists with multiple actionable subtasks, reminders and due dates, as well as organize and share to-do lists. Wunderlist is also accessible from the Web.
From the author of Steve Jobs comes this story focused on the creation of the computer and the Internet. WHAT STAYS IN VEGAS By Adam Tanner [PublicAffairs] 336 pages $ 19.48/hardcover The author examines the successful personal data gathering at Caesars Entertainment in Las Vegas.
inside
CRS
ANNUAL MEETING RECAP
THE
toast
news from the council
OF NEW ORLEANS The Council charts a new course at the CRS Annual Meeting
The CRS Annual Meetings were held Nov. 5–8, 2014, in conjunction with the NAR Conference and Expo in New Orleans. During the course of these meetings, the Council Board of Directors and Committee members came together to review the past year’s initiatives and discuss the direction CRS should take over the next three years.
Strategic Plan
The Board of Directors approved a new Strategic Plan for 2015–2017, which sets the course for all the strategic and operational initiatives that will position CRS for growth over that time period. CRS’s new strategic plan seeks to change the trajectory of the Council from consolidation to growth; from a fragmented organization to a strong national and local organization; and from a one-size-fits-all association to a flexible one that supports REALTORS® throughout their professional life cycle. Over the next three years, the Council will pursue strategic initiatives designed to: build and nurture connections among members locally and nationally; grow membership by communicating its value and the flexibility of member benefits; develop new education and learning paths to serve REALTORS® throughout their careers; provide support services, such as recruitment of assistants, coaching/mentoring
and consulting; and expand CRS’s education and training internationally. The Council’s measures of success for this Strategic Plan include: ÄOverall Ä membership growth of 5 percent with attrition of less than 10 percent annually ÄAnnual Ä revenue growth of 5–10 percent ÄPositive Ä profit margin from operations ÄIncreased Ä member satisfaction and engagement ÄIncreased Ä sales of educational programs The Board also voted to implement unified dues payment beginning with dues renewal for 2016, which will streamline the billing process for members and the organization.
Membership Update
CRS achieved several key goals in 2014. The membership recruitment campaign is underway, including segmentation of prospective members, identifying the most promising pools of members and testing message effectiveness with target audiences. We anticipate seeing results from these efforts in early 2015. The three new CRS One-Day Essentials courses that debuted this year will be available for licensing and sponsorship in 2015 while we continue to develop new courses. CRS launched a new Broker Toolkit and Licensee Toolkit to give members more resources they need to succeed. CRS Week helped raise awareness of the Council and offered four free webinars, a Lead Generation Kit and a White CONTINUED Paper to CRS members.
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CONTINUED FROM PREVIOUS PAGE
The Council also conducted a survey to determine the core competencies of Certinews from fied Residential Specialists the council to provide a foundation on which to build new content offerings. A redesigned version of the Council’s flagship magazine, The Residential Specialist, and a new magazine website, TRSmag.com, debuted in the spring. And the “Find a CRS” mobile app has proven to be a valuable resource for members to find and receive referrals. The Board also approved a bold vision for a new approach to member engagement that was presented. The new membership engagement model will provide better ways to engage all CRS members by building on and evolving the current CRS chapter organization. This new approach provides The annual CRS meetings brought multiple ways for CRS together Council leadership and members alike. members to connect locally, regionally and across the country. It is designed to engage members in a more tangible way and encourage their involvement with CRS. The new membership engagement model includes: ÄMembership Ä in state-based networks. ÄA Ä robust online community. ÄSpecialty Ä groups, such as virtual communities of interest and Mastermind groups. ÄSimple, Ä single-payment dues. ÄMultiple Ä access points: members choose when, where and how they want to connect. The new model provides increased opportunities for member engagement, increased funding for programs due in part to administrative cost savings and an improved singular value proposition in the marketplace. Program implementation will begin rolling out in 2015. CRS is taking steps to enable the organization to deliver even more value to the members of today and tomorrow. The Council is moving in exciting new directions that will position it — and its members — for future success.
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ANNUAL MEETING RECAP
A NIGHT TO
At the Council’s annual meetings in New Orleans, the 2015 CRS officers were sworn in during an inauguration ceremony on Nov. 8. Dale Carlton, CRS, Janelle Pfleiger, CRS, and Leigh Brown, CRS, were installed as president, president-elect and first vice president, respectively. CRS President Dale Carlton is a CRS certified instructor and a professor at REALTOR® University. He was formerly the senior vice president and executive broker at Lindsey and Associates, Arkansas’ largest real estate firm at that time. In 2006 he opened his own company, Carlton Realty, in Fayetteville, Arkansas, and he consistently ranks as one of the top agents in Arkansas. In addition to being a CRS instructor, he teaches nationally at multiple state associations and works directly with both large and small real estate firms to help them provide the best education to their agents. “It will take a lot of work for us to continue to recognize the opportunities for CRS to be the best Council it can be,” Carlton said in his inaugural speech. He asked CRS members to “Trust that we can, with hard work, move the Council [forward] because we are willing to accept the risk that comes with any change.” (Read more about Carlton in the cover story on p. 18.) President-elect Janelle Pfleiger began her career in real estate in 1980, and she is an associate broker with RE/MAX Dynamic Properties in Anchorage, Alaska. She obtained her CRS designation in 1987 and also holds the GRI, CLHMS and CDPE designations. She has served on numerous CRS national committees and she has been named Alaska CRS of the Year, and the Anchorage and Alaska REALTOR® of the year, among other honors.
Dale Carlton is sworn in as 2015 CRS President by Chris Polychron, CRS, the 2015 president of the National Association of REALTORS® (far left). On left, Polychron with 2015 CRS President-Elect Janelle Pfleiger (l.) and First Vice President Leigh Brown (r.). Bottom left, 2014 CRS President Ron Canning hands over the presidential gavel.
remember First Vice President Leigh Brown, of RE/MAX Executive Realty in Concord, North Carolina, is a third-generation REALTOR® who earned her CRS Designation in 2003. A native of Cabarrus County, North Carolina, Brown joined her father, Darrell Thomas, in the business in 2000. She has attained several designations in addition to the CRS, including the ABR, CIPS, SFR and ePro, among others. She has been actively involved in her chapter and in CRS national leadership.
CRS installs new exec team, honors award winners
Chapter Recognition
The Mid-South Chapter, the Tennessee Chapter and the Hawaii Aloha chapter were named the CRS Chapters of the Year in recognition of their efforts to advance the Council’s mission and help the organization achieve its goals and objectives at the chapter level. The Mid-South Chapter, which claimed top honors in the small chapter category, implemented a membership drive to get members to pay both local and state dues; launched Celebrating Achievement new educational events around the region; promoted the During the inaugural ceremony, the Council’s 2014 president, CRS Designation by sending an Executive Board member Ron Canning, announced the winners of the CRS Medallion and an instructor to each CRS class; recruited sponsors to Award, which honors CRS Designees who have excelled in assist with hosting a unique set of events; and more. their real estate careers and committed extraordinary time The winning medium-size chapter was Tennessee, which and energy to serve the Council and its members. To be boasted 300 members for the first time ever in 2014. A eligible for this award, nominees must have 15 years of consuccessful raffle helped drive early renewals and reinstatetinuous membership in CRS and tangible volunteer service ments, and this chapter also co-sponsored or sponsored for the Council at the state and local levels. an average of two events per month throughout the year. The two Medallion Award recipients were: Linda Hearn, CRS, The chapter has enlisted top producers across the state to of iRealty Arkansas in Benton, Arkansas; and Israel Ameijeipromote CRS Designation and education. ras, CRS, of LMG Realty Inc. in Pembroke Pines, Florida. The 545-member Hawaii Aloha Chapter won the large Canning also presented the President’s Award to three worthy category by focusing on community involvement and CRS support. Shriner’s Children’s Hospital honored the chapter CRS Designees. The President’s Award recognizes individuals who provide outstanding support to the Council and its members. by placing an engraved brick at the hospital entrance and a The 2014 President’s Award winners were: Mark Shepherd, plaque inside the hospital for donating over $100,000. The chapter promoted CRS membership by celebrating CRS CRS, broker/owner at RE/MAX Unlimited in Layton, Utah; Week and launching a state-wide open house event; starting Jeff Dowler, CRS, with Solutions Real Estate in Carlsbad, a membership task force; hosting its own state Sell-a-bration® California; and Carol Murphy, with Keller Williams Greater event; representing CRS at events across the state; and more. Cleveland West in Westlake, Ohio.
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CRS PLANNING FOR SUCCESS IN 2015 “Figure out the lifestyle you want to live, then figure out how to fund it.” That was the primary message delivered by CRS certified instructor Mike Parker in a free educational session provided by CRS in conjunction with the annual Council meetings and the NAR Conference and Expo. His session focused on top tips to help agents plan for a successful 2015. Among the strategies Parker outlined that might help CRSs achieve their lifestyle goals is a simple one: Maintain a positive attitude. As any veteran agent knows, he said, there are many highs and lows in real estate. The smart CRS agent knows that the slow periods aren’t something to dwell on. Rather, they present
news from the council
an excellent opportunity to make sure their business plans meet the needs of the market as it changes. Business plans should include a schedule for the number of interactions an agent has each week with clients, potential clients and past clients. Parker recommends that REALTORS® reach out to 20 contacts a day, five days a week, 48 weeks each year. Statistics show that agents close deals with 1 percent of the contacts they reach out to, Parker says, which illustrates how important it is for agents to make this “reach out and touch someone” regimen part of their business plan. Further, by having a system to track listings taken, listings closed and buyers closed, agents can focus on the activities that make them the most money, Parker said. Those activities that don’t make you money should be jettisoned. Direct mail still has value in many markets, but it is especially effective when used in concert with other client outreach strategies. Parker recommends that agents provide their contacts with 18 postcards per year, two drip emails per month, one phone call a quarter and two client events each year. Together, these success strategies might just help agents attain — and fund — the lifestyle they want to live. CRS certified instructor Lee Barrett’s free educational session focused on a demographic that will have a massive impact on the future of real estate. Members of the millennial
generation, also known as Generation Y, were born between the early 1980s and the early 2000s. And 76 percent of first-time homebuyers last year were 33 years old or younger. There are an estimated 85 million people who fit into this generation, and, Barrett pointed out, the average age of real estate agents is 56. So how can 56-year-olds make themselves relevant to a generation of young, savvy homebuyers? For starters, Barrett joked, “Don’t talk to them like they’re your kids.” More than 90 percent of Gen Y buyers say they want to use a real estate agent, and video has proven to be an important tool that helps agents connect with younger consumers. “The new buyer is visual in a way we’ve never seen before,” Barrett said. To use that phenomenon to gain an advantage, he recommends that agents set up a YouTube channel and post short, 1.5-to-2 minute videos that will resonate with young buyers. For example: How do I find the right property? How do I handle the paperwork during a transaction? What is the transaction process from getting a mortgage loan all the way to closing? What neighborhood amenities — such as schools, parks, shops and restaurants — are nearby? Why bother? Because, Barrett said, “We’re not relevant anymore unless we are surpassing what other people are doing in our marketplace.” And the wave of millennial homebuyers and sellers will be a driving force in the housing market for decades to come.
DON’T MISS SELL-A-BRATION® 2015
You still have time to sign up to attend Sell-a-bration®, the Council’s annual education event, at the Paris Las Vegas Hotel and Casino, Feb. 16–17, 2015. Now is the time to make plans to join hundreds of your top-producing peers who come together to learn how to generate more business, build more relationships and close more deals. For nearly 30 years, Sell-a-bration® has delivered topical educational sessions presented by top producers, excellent networking opportunities and professional camaraderie. Speakers at the event include noted real estate strategist, visionary and best-selling author Stefan Swanepoel, real estate tax and financial expert Chris Bird, and real estate expert and
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renowned speaker and author Patrick Schwerdtfeger. A host of topproducing REALTORS® will serve as panelists during the event’s breakout sessions, where they’ll share their strategies for success. The conference schedule is available at crs.com/events/sell-a-bration/ speakers. CRS will also hold a one-day pre-event educational program on Feb. 15. Pricing for the eight-hour course is $130 for CRS Members and $160 for Non-Members. For information about Sell-a-bration® 2015 and to register, visit crs.com/events/sell-a-bration, or call customer service at 800.462.8841.
YOUR CRS WEST
WILLIAM & WILL ABR, CIPS, CRS, RSPS, SRS, SRES Top 1% of Brokers Internationally!
(626) 898-5810 CalBRE: 01903501
(310) 880-7356 CalBre: 0147783827
Serving: Southern California, Los Angeles County, San Gabriel Valley, Beverly Hills, Hollywood, Westside (UCLA/USC), and the South Bay
william@goldenlandinc.com www.goldenlandinc.com
WEST
CRS
connect
network
expand your network
Jennie Wolek, CRS, with Keller Williams Realty Advantage in Tulsa, Oklahoma, and Anthony Clark, CRS, with Bassett Mix & Associates in Fayetteville, Arkansas, worked for a time in the same office in Tulsa. When Wolek gave birth to her daughter in 2007, she sought an agent at her brokerage who would take great care of her longtime clients. She chose Clark because she knew his work ethic and trusted him with her business. When Clark moved back to Arkansas in 2008, he was given the same challenge of finding the perfect referral partner for his large Tulsa network. Naturally, that was Wolek. In the past six years, the two CRS Designees have sent many referral checks back and forth, and they are always confident clients will receive the best service throughout the real estate transaction. Having both earned their CRS Designations, they know from experience that they can continue to trust each other with referrals for years to come. CONNECTION PERFECTION
WEST
WEST
Selling Lake Tahoe, NV for 25 years.
Craig Zager I Love Referrals! Sell phone: 775.901.4663 craig@CraigZager.com
www.LakeTahoeAgent.com
WEST
WEST
WEST
Mike Kelly CRS, CIPS 707-322-8503 cell Career Worth Having Business Worth Owning Life Worth Living
Serving Sonoma County for 36 years, Mike Kelly is your “Wine Country Lifestyle” specialist. The Kelly-Norman Team is client-centered focusing on a successful transaction for your residential referrals. www.GreatEstatesofSonomaCounty.com
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connect
MIDWEST
SOUTH
Welcome to the tranquil beauty of the
BLACK HILLS of SOUTH DAKOTA
expand your network
Proud home of
ELLSWORTH AIR FORCE BASE
CRS CLASSROOM COURSES CRS classroom courses earn either eight credits (for 100-level, one-day courses) or 16 credits (for 200-level, two-day courses) toward the CRS Designation. At press time, the CRS courses listed below were scheduled for 2015. For more up-to-date listings, visit crs.com.
RAPID CITY, SD
Duane Hosek, CRS
Honest-Skilled-Motivated-Full Time
605-391-8424
duanehosek@gmail.com www.duanehosek.com
SOUTH
SOUTH
CRS 103 — Mastering Positive Change in Today’s World ABR, CRS, SRES, GRI, CDPE
FEB. 19 — MESA, AZ. [Southeast Valley Association of REALTORS®] 480.505.6410
Serving Northern Virginia and the Dulles Tech corridor
Instructor: Chandra Hall, CRS CRS 121 — Win-Win Negotiation Techniques
Re/Max Premier offices in
Ashburn, Fairfax and Leesburg
Direct: 703-999-6535 Office: 571-210-SELL
lisacromwell@remax.net www.LisaCromwell.com
JAN. 14 — EDINA, MN. [Minnesota CRS Chapter] 952.912.2664
Instructor: Chandra Hall, CRS CRS 122 — Building a Team to Grow Your Business FEB. 15 — LAS VEGAS [CRS]
CRS 201 — Listing Strategies MARCH 10–11 — FORT WALTON, FLA. [Emerald Coast Association of REALTORS®] 850.243.6145
Instructor: Jackie Leavenworth, CRS
312.321.4419
Instructor: Mike Selvaggio, CRS CRS 200 — Business Planning and Marketing FEB. 24–25 — NASHVILLE, TENN. [Tennessee CRS Chapter] 615.254.7516
Instructor: Chandra Hall, CRS FEB. 26–27 — MOREHEAD CITY, N.C. [North Carolina CRS Chapter]
MAY 11–12 — NASHVILLE, TENN. [Tennessee CRS Chapter] 615.254.7516
Instructor: Jackie Leavenworth, CRS MAY 27–28 – LAS VEGAS [Southern Nevada CRS Chapter] 702.610.5012
Instructor: Jackie Leavenworth, CRS
252.247.2323
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JAN. 15–16 — RICHMOND, VA. [Central Virginia CRS Chapter] 804.405.4007
Instructor: Jackie Leavenworth, CRS MARCH 31–APRIL1 — JACKSONVILLE, FLA. [Northeast Florida Association of REALTORS®] 904.394.9494 x1650
Instructor: Jackie Leavenworth, CRS CRS 204 MARCH 4–5 — BRENTWOOD, TENN. [Williamson County Association of REALTORS®] 615.771.6845
Instructor: Mark Given, CRS
Jan Feb
CRS 202 – Effective Buyer Sales Strategies
Instructor: Chris Bird, CRS
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SOUTH
SOUTH
SOUTH
GARY LANHAM GROUP
Kent Redding BROKeR, gRi, CRs, ABR
the Kent Redding group
FORT LAUDERDALE, FL
Berkshire Hathaway
Leading the Way in South Florida Real Estate
texas Realty
512.306.1001
Gary Lanham Group Leader Associate Broker CRS, CIPS, ABR, ePRO
Austin, texAs Kent@CallKent.com www.CallKent.com
o 954.545.5550 c 954.695.6518 gary@garylanhamgroup.com www.garylanhamgroup.com
NORTHEAST
NORTHEAST Your referral source for the greater
Pittsburgh
area
I help clients make the Wright move Nancy Wright, ABR, CRS, GRI
RE/MAX Realty Brokers 5608 Wilkins Ave. Pittsburgh, PA 15217 OFS: 412-521-1000 x170 CELL: 412-508-0040 nancywright@remax.net
NORTHEAST
Bill Kuhlman
Diane Capodilupo
Since 1988 • 2012 Massachusetts CRS Chapter President • 25 – 30% Referral Fees “I know great agents almost everywhere. Want to join my referral network?”
Ranked #1 Selling Agent for Single Family Homes in The City of Boston
I WORK HARDER SO YOU GET PAID FASTER!
• Serving Massachusetts
www.dianecap.com
Bill.Kuhlman@iCloud.com
RE/MAX Achievers diane@dianecap.com
781-883-5554
617-323-3670 office 617-823-9989 cell
BostonAreaHomesOnline.com CANADA
CRS 206 FEB. 12–13 — FRESNO, CALIF. [Fresno Association of REALTORS®]
AUG. 19–20 — HONOLULU [Hawaii Aloha CRS Chapter] 808.733.7060 x0
Instructor: Mark Given, CRS
559.490.6400
Instructor: Robert Morris, CRS APRIL 1–2 — HONOLULU [Hawaii Aloha CRS Chapter] 808.733.7060 x0
Instructor: Robert Morris, CRS
Elective Courses Elective courses vary in length and credits earned toward the CRS Designation. Please visit the CRS website for details at crs.com.
RE/MAX Hallmark Lind Group Realty Ltd., Brokerage Aurora Ontario Canada
Toll Free: 1-888-727-8223, ext. 228 www.hallmarklindrealty.com
Fax: 905-727-2230
CRS 210 — Building an Exceptional Customer Service Referral Business MARCH 26–27 — CHICAGO [Illinois CRS Chapter and the Chicago Association of REALTORS®] 309.579.2947
Instructor: Chuck Bode, CRS
E-mail: lenard@hallmarklindrealty.com
BOOST REFERRALS
Reach more than 30,000 CRS peers with your ad here 20 15
Joe Stella jstella@glcdelivers.com 847-205-3127
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SHARE YOUR EXPERTISE [resources]
reach out to the experts who made this issue happen
Would you like to be a source for a future story in The Residential Specialist? Send an email to mfenner@crs.com to be added to our potential source list. To see a list of topics we’ll be covering, check out the magazine’s 2015 editorial calendar online at crs.com.
Money Matters
PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS
donbowman@watsonrealtycorp.com
EDIT
Don Bowman, CRS Watson Realty Corp.
Tonyeil Spencer, CRS Spencer Realty, LLC
tonyeil@spencerrealtyllc.com
Douglas Richards, CRS (retired REALTOR®)
Dpr2000@msn.com
Harlan Mayer, CRS Re/Max Equity Group
hmayer@equitygroup.com
Referral Madness
Julie Hall, CRS Windermere Real Estate/Yarrow Bay juliehall@windermere.com
Frank Serio, CRS RE/MAX by the Sea
frank@theserios.com
Larry Kleinheksel, CRS Coldwell Banker Woodland Schmidt larry@holland-homes.com
Robert King, CRS Tampa Bay Infinity Group at HomeXpress Realty kinginfinitygrp@gmail.com
Always Be Saving
Mary Lou Erk, CRS Coldwell Banker Hearthside, REALTORS® Marylou@marylouerk.com
Ralph E. De Martino, CRS Ocean International Realty
ralph@oirmiami.com
John MacGilvary, CRS Berkshire Hathaway HomeServices Verani Realty john.macgilvary@verani.com
Scott Furman, CRS RE/MAX Classic
Scott@2pahomes.com
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Leave YOUR HOME as is, or personalize the newsletter by adding your photo, logo, address and phone number to the mailing panel.* You can also substitute any article in the newsletter with one of your own. Edit the newsletter e lectronically by downloading the Microsoft Word version at crs.com/ yourhomenewsletter. PLEASE NOTE: The images featured in the YOUR HOME newsletter may only be used within the PDF version of the newsletter. These images may not be reproduced or republished elsewhere outside of this newsletter format. CRS members are free to re-use the text of the articles contained in the newsletter, however.
REPRODUCE
Do it yourself with your office copier, or take the newsletter or electronic file (in addition to your photograph and any information you want inserted) to a printer who can prepare and reproduce the newsletter for you.
DISTRIBUTE
MAIL. If you photocopy YOUR HOME or use it “as is,” please note that it is designed to be folded in a Z fold with the words YOUR HOME facing out on one side and the mailing panel facing out on the other side. Postal regulations require that Z folds have three closures (tabs or tape) — one on top in the center and two on the bottom. For your convenience, we have placed asterisks (*) where the closures should be. Be sure to check with your local mailer or post office to make sure you have prepared your mailings properly. ELECTRONIC FILE. Attach the customized newsletter file to an email to your clients or create a Web link to the file on your website. Consult your webmaster or technician to make sure the file is prepared correctly for these purposes, since these basic instructions will vary by person and system. * This newsletter is for the exclusive use of CRS members.
your *
home J A N / F E B 2 015
Tips and tre nd s for homeow ners, buyers and sellers
FINANCING A FIRST HOME
Although financing a first home can be challenging, buyers who are prepared and know what they can afford up front can help expedite the process and save themselves unnecessary headaches later. Before starting your home search, follow these financial tips from the National Association of Home Builders and Bankrate.com. ÄFirst, Ä figure out what you can afford to pay each month. In addition to principal and interest, figure expenses for local taxes, insurance, and if buying a condominium, monthly assessments. Once you have this calculation, don’t be tempted by lenders to pay more than that. Free mortgage calculators, which are available on many real estate and finance websites, can help you estimate monthly payments based on current interest rates and down payment. Generally speaking, no more than 28 percent of gross monthly income should be allocated to housing costs. ÄPay Ä down your debts. Any credit card debt you have can limit how much you can borrow from a lender. Check your credit report thoroughly for any errors or unpaid accounts, and resolve those issues before moving ahead. Allow at least six months to iron out any credit problems before shopping for a home, experts suggest.
HOMES BY DESIGN FOR 2015
Looking for a few ways to freshen up your home’s interior design for the New Year? Check out these ideas from home furnishings retailer BoConcept New York and Cheryl Hucks Interior Design. Get the Blues – Blue is the color of the year, and while cooler tones have been popular for several years, shades of blue will be more prominent in home design in warmer and bolder shades. To update your home décor, add a sofa or accent pieces in midnight blue or indigo.
ÄDetermine Ä your monthly cash flow. Track your spending for two or three months to see where money is going. Once you know what you can afford and what your cash flow is, you can determine your down payment. ÄOrganize Ä documents, especially those that validate income and taxes. Most lenders may want to see two recent pay stubs, W-2s and tax returns from the previous two years, and the last two monthly bank statements. Having these documents ready ahead of time can help the lending process run more smoothly. If you are just getting started, check out local home-buying seminars or sites like HUD.gov, which provides information about shopping for and financing a home. Ask friends, family and co-workers for referrals for lending professionals they’ve worked with previously, and talk with lenders and credit counselors to find financing options that will work best for you.
Heavy Metal – Add a little sparkle to your home décor by adding a few metallic elements, such as a brass floor lamp, silver picture frame or throw pillows with copper stripes. Natural Elements – Using natural materials adds more space and depth within your living space. Furniture made of natural wood, especially in lighter shades, creates an open, airy atmosphere. Try mixing wood pieces with other natural materials.
Tone on Tone – Create a contemporary tone-on-tone look by layering one color with varying shades and textures of the same color. Despite using different textures and saturation levels, designers at BoConcept say the overall appearance will be soft, calm and sophisticated. Make a Statement – Some designers say using large prints and floral fabrics for accent furniture pieces can make a bold statement and give a room a creative focal point.
BROUGH T T O Y OU B Y Y OUR A GEN T, A MEMBER OF T HE C OUNCIL OF RE SIDEN T I A L SPECI A L IS T S
Tips and trends for homeowners, buyers and sellers
BUYERS SEEK
smart homes
How smart do you want your next home to be? According to a recent survey by ERA Real Estate and HGTV, nearly half of today’s homebuyers (46 percent) want their next home to have smart technology. Smart homes enable homeowners to control systems and appliances via Internet-connected devices. Many consumers believe a home with smart technology brings more comfort, safety and cost savings. The survey also finds that more than half of homeowners (51 percent) would consider installing smart home technology to make their home more marketable to future buyers. The most popular smart features for homebuyers involve security, heating and cooling, and lighting. For example, homes equipped with remote access to security cameras allow
OV
E REFER RA LS!
IL
SAY YES TO CRS EQUAL HOUSING
homeowners to monitor their home while they are away and can be programmed to close and lock doors remotely with a touch of a button on a smartphone. Smart thermostats can be programmed to automatically adjust room temperatures after the homeowner has left the house to avoid unnecessary heating or cooling during their absence, or adjust the temperature to the owner’s comfort level before they walk in the door. Some programs also track a home’s energy consumption through a website or app. Automated lighting is another sought-after feature that enables homeowners to turn lights on and off remotely from a smartphone. For many tech-savvy homebuyers, investing in a house with smart technology is a practical choice worth the extra investment.
Buying or selling a home can seem like an overwhelming task. But the right REALTOR® can make the process easier — and more profitable. A Certified Residential Specialist (CRS), with years of experience and success, will help you make smart decisions in a fast-paced, complex and competitive marketplace. To earn the CRS Designation, REALTORS® must demonstrate outstanding professional achievements — including high-volume sales — and pursue advanced training in areas such as finance, marketing and technology. They must also maintain membership in the National Association of REALTORS® and abide by its Code of Ethics. Work with a REALTOR® who belongs in the top 3 percent in the nation. Contact a CRS today.
DO YOU KNOW SOMEONE WHO IS THINKING ABOUT BUYING OR SELLING A HOME? PLEASE MENTION MY NAME. This newsletter is for informational purposes only and should not be substituted for legal or financial advice. If you are currently working with another real estate agent or broker, it is not a solicitation for business.
OPPORTUNITY
*
*
CRS eLEARNING
EARN FROM WHAT YOU LEARN Grow your business and boost your income when you learn invaluable new tools with our eLearning courses.
NOW SEVEN COURSES TO CHOOSE FROM
2 credits toward CRS Designation
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Develop a social media strategy to set goals, target interactions, maintain consistent engagement, and assess the impact of your efforts.
The economy has changed and an agent’s marketing strategies need to change as well. Discover the world of online marketing.
MANAGING YOUR ONLINE PRESENCE
CREATING VALUE FOR YOUR CLIENTS
Learn how to manage your online presence across forums such as your business website, social media and real estate aggregator websites.
Learn how to be more valuable to your clients and maximize your income.
VIDEO MARKETING TO ENHANCE YOUR BUSINESS
Expand your knowledge of today’s real estate technology to be better prepared to work effectively with online consumers.
Identify uses, desired project outcomes, self-produced vs. professionally produced, home-tour levels and add on tags and titles.
CLIENT NEGOTIATIONS: UNLOCKING HEARTS VS. LOCKING HORNS Close more transactions by identifying your clients’ underlying interests beginning with first contact through post-transaction follow-up.
eLEARNING COURSE PRICING:* 2 credits 8 credits Members
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PUTTING TECHNOLOGY TO WORK FOR YOUR CLIENTS
Each course takes only 2 to 8 hours to complete. All 8 credit courses are available for continuing education credit in some states.
ask a
CRS advice from your peers
Q:
YO U R B U S I N E S S
What effective approaches have you used working with sellers who feel they can do everything better themselves, including marketing their home?
“ There are some people I can’t help, especially those who [think they] know everything and feel that my 37 years of experience means nothing. There are too many nice people who need and want my services. My job, every working day, is finding them and winnowing out the ones I don’t want so I can focus on the ones I do.” Eric Reusch, CRS Bunbury & Associates Madison, Wisconsin EReusch@BunburyRealtors.com
“ I ask them politely, ‘How many houses have you sold?’ Usually only one or two … I then ask them, ‘Well, let me ask you. If you needed an appendectomy, would you rather have a person who has performed one or two, or a doctor who has performed 1,000 appendectomies?’ It kind of breaks the ice and most of the time they get it.” Lane Mabray, CRS RE/MAX Westside REALTORS® Houston, Texas lane@lane2houston.com
“ Sometimes sellers need a taste of what we experience every day. I have let them write their own ads, paid to place them where the ads should be, and I make sure that a lot of their verbiage regarding what they like best in their home is inside the MLS listing, too. It is a small bit of control for them that often works.” Barbara Avery, CRS RE/MAX Northwest REALTORS® Kirkland, Washington www.seattlesuburbs.com
Participate in active discussions like this at the Council of Residential Specialists’ LinkedIn page at linkedin.com.
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