The Residential Specialist, March/April 2015

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B US I N E S S I N TELL IGE N CE FOR THE CR S PROFE S S IONA L

2015

THE

SPECIALIST ALSO IN THIS

ISSUE

what do clients really want? the value of E&O insurance secure your data immediately

does community marketing work? advanced education’s rewards get set up with Inman Select

CRS-009

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 Why a green issue? Homebuyers are more interested than ever before in understanding the impact they will have on the environment if they purchase and live in a particular home.

Mar 20 Apr 15 vol. 14, no. 2

The NAR 2014 Profile of Home Buyers and Sellers found that environmentally friendly features are important to buyers. We present some of the latest trends in sustainable living …

’VE GOT WE

acres OF

GREEN

Check out page 5 for more green articles…

OF GREEN 18 TheFIFTYgreenSHADES 22 home market is growing. How can CRSs take

WELCOME TO THE SMALL HOUSE

advantage and help clients get the houses they want?

How can CRSs serve the growing demand for smaller homes?

By Gayle Bennett

By Daniel Rome Levine

26

THE CLIENT IS RIGHT

30

plus

DEFENSE POLICY

Today’s buyers may be more educated than ever, but they still need guidance and support from REALTORS® to help them navigate the buying process.

Changing REALTOR® technologies make E&O insurance more vital than ever.

By David Tobenkin

By Regina Ludes

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The Council of Residential Specialists

crs.com

1

Mar Apr

contents

Mar 20 Apr 15 vol. 14, no. 2

departments

9

4 VANTAGE POINT

By Dale Carlton, CRS

5 SHORT LIST

Evaluating a green product beyond the hype, and the 10 most livable small to mid-size cities

9 COOL STUFF

Selections from the latest technologies displayed at the annual Consumer Electronics Show

10 SMART SOLUTIONS

16

Implementing a data privacy and security program safeguards you, your clients and your professional reputation

12

By Donna Shryer

12 INSIDE TRACK

Although the online marketing world is vast, sometimes being effective means focusing on your community

By Gwen Moran

38

14 WINDOW OF OPPORTUNITY

36

The desire to succeed in real estate may be an agent’s best incentive to pursue advanced education

By Regina Ludes

16 PEER TO PEER

Karalyn Hoefer, CRS, Woods Bros. Realty, Lincoln, Nebraska

34 WORK + LIFE

Millennials & Management: The Essential Guide to Making It Work at Work, by Lee Caraher Reviewed by Allan Fallow

+

Fine As Wine Add some good American wines to your cellar

inside CRS 37 NEWS FROM THE COUNCIL

The Inman Select news feed is now a CRS Member benefit, and upcoming CRS webinars

40 CRS CONNECT 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.

DATA SECURITY Does your business need a data breach response plan? Read more on this Smart Solutions topic.

SELL-A-BRATION® Check out the photos from the annual educational conference, held in February.

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

■ Boomerang Buyers Gen Y is entering the housing market after being priced out during the recession.

■ Home Design Trends What are the top features today’s buyers look for in a home? What overall trends are driving the market?

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 Daniel Rome Levine Regina Ludes Gwen Moran Donna Shryer David Tobenkin STAFF WRITER Charlee Gibson 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

■ The Local Housing Market A look at how different markets fared in 2014 and what’s in store for them in 2015.

■ Should You Stage?

Can staging boost a home’s chances of being sold more quickly?

PLUS:

Buyers and sellers get more information than ever before from websites. How has this trend changed the marketplace for both consumers and REALTORS®?

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 Specialist, 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 benefi ts.

[vantage point]

from the desk of Dale Carlton, CRS, 2015 president

GIVING YOU

a leg up



Photo: Adam Murphy

One of the most rewarding things about being involved in CRS leadership is sharing news about the member benefits and educational offerings the Council provides. These are the tools that help you maintain an edge over the competition.

CRS now provides a valuable new resource to all members that will keep you informed about new developments in our fast-moving industry.

CRS has partnered with prominent real estate and technology publisher Inman News to deliver the Inman Select news exclusively to CRS Members. This new member benefit — a $199 value — is free to all CRS Members as part of your annual dues.

The service includes special in-depth reports; breaking news alerts and analysis from Inman’s award-winning team; profiles and features of industry leaders; and new insights into a changing industry. (Read more about the service and how to access it on p. 37.)

On the education front, several new CRS webinars are scheduled for the spring and summer months. They’ll cover a host of topics that deliver exactly the information you need to succeed, live-streamed to your home or office computer. CRS webinar recordings are available for download via smartphone, Apple iPad or tablet PC. (See p. 39 for topics and registration.)

And don’t forget the Find a CRS Mobile App, which is available for Android smartphones, iPhones and iPads (see p. 38 for more information). The app provides a convenient way to help agents and consumers find a Certified Residential Specialist using their Internet-enabled mobile devices. It also makes it even easier for CRS Designees to make connections and build more lucrative referral businesses.

Council leadership strives to deliver more value for your membership to give you the tools you need to succeed. We encourage you to take advantage of these member benefits and help us spread the word.

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THESE ARE THE TOOLS THAT HELP YOU MAINTAIN AN EDGE OVER THE COMPETITION.

[short list]

+ industry headlines + statistics + trends



Green housing initiatives follow the philosophy that everything we do should have minimal negative impact on the environment. But the term has become so over-used that its meaning has become diluted. There are many products on the market that claim to be green even though they deliver little benefit. So how can you evaluate a green product or initiative beyond the marketing hype?

Here are some tips to help you and your clients improve the environment around the home:

Replace old appliances with Energy Star appliances, which use 20 to 30 percent less energy on average.

Look for more green tips starting on page 18.

Upgrade or replace heating, cooling and hot water systems.

A high-efficiency furnace can result in a 40 percent savings from conventional furnaces.

If you’re in the market for a new home, look for homes that are constructed for energy efficiency, specifically in the areas of air sealing and insulation; windows; and house exposure to sun and wind.

Look for green building products used throughout the home: engineered lumber, products made from recycled materials, new pressure-treated wood (less toxic) and low-VOC (volatile organic compounds) paints.

For more information, or to learn how you can book a Continuing Education Program course about “Going Green,” email: crssupport@pillartopost.com.

HOT OR COLD? One in 4 homes have old and inefficient heating or cooling systems, according to home inspection experts Pillar to Post. Furthermore, there have been dramatic changes in technology that have boosted efficiencies of heating, ventilating and air conditioning (HVAC) systems far higher

than what was available just 10 years ago.

Aside from providing an efficiency and cost savings, upgraded HVAC systems lower overall energy consumption, which can result in a big benefit to the environment. If you or your clients have a system that’s near the end of its life

cycle, upgrade now to:  Start benefiting from the reduced energy consumption and save money.  Do something good for the environment.  Enjoy a more comfortable and quieter home.  Have time to shop for a new system when your old one is still functioning.

If your HVAC system is still

in good condition, consider the environmental impact of disposal and the manufacturing of a new one. Also keep in mind that energy saving/ payoff times are always over-estimated by sales people and product literature.

Calculations that show how you can cover the cost of a new system in energy savings usually compare the oldest, most inefficient system to a

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The Council of Residential Specialists

new high-efficiency system. If your heating or cooling system is still in good condition, you can be sure it is not the oldest and most inefficient system, so it might be able to last a little while longer.

For more information about HVAC systems and how to contact a local home inspector, visit www.pillartopost. com.

crs.com

5

Mar Apr

[short list]

The top 10 most livable small to mid-size cities in America are:

1. Madison, Wisconsin 2. Rochester, Minnesota 3. Arlington, Virginia 4. Boulder, Colorado 5. Palo Alto, California 6. Berkeley, California 7. Santa Clara, California 8. Missoula, Montana 9. Boise, Idaho 10. Iowa City, Iowa Source: Livability.com

o want t ^

WE KNOW WHERE YOU LIVE



There are plenty of nice small to mid-size towns and cities in the United States, but which ones are the most livable? After all, many people have heard (or said) about a given city, “It’s a nice place to visit, but I wouldn’t want to live there.”

Livability.com recently released its list of the Top 100 Places to Live, and Madison, Wisconsin, took the top spot.

“Both a capital city and a hip college town, Madison provides

UNCLE SAM TO THE RESCUE The White House announced a new initiative in January designed to make mortgages more affordable and accessible to creditworthy families who want to purchase a home and can afford it. To reach this goal, the Federal Housing Administration (FHA) reduced annual mortgage insurance premiums by 0.5 percent from 1.35 percent to 0.85 percent. For the typical first-time homebuyer, this reduction will

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The Residential Specialist trsmag.com

residents with affordable housing, great schools, excellent health care and a wide range of recreational activities and entertainment options,” the report finds.

Like Madison, many of the top-ranking cities tend to be home to a major institution like a university, hospital or state capital. “Institutions like that help these smaller cities compete in terms of sports, culture, jobs and entertainment,” says Matt Carmichael, Livability’s editor.

translate into a $900 reduction in their annual mortgage payment.

Existing homeowners who refinance into an FHA mortgage will see similar reductions to their mortgage payments, the Administration says. The rate change is expected to allow millions of families to save billions of dollars in mortgage payments in the coming years and help support the housing market recovery.

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More than 800,000 current FHA borrowers are projected to take advantage of these lower rates in the first year, saving millions of dollars overall, the White House says. Further, lowered premiums are expected to create opportunities for 250,000 new homeowners to purchase a home over the next three years.

mother nature

EASES UP 

While the news offers little solace for survivors, the occurrence of natural disasters, including flooding, mudslides, wildfires, tornadoes and hurricanes, likely declined overall in 2014 as it did in 2013. The 2014 CoreLogic Natural Hazard Risk Summary and Analysis finds there is a short-term downward trend in the number of individual hazard events in the U.S. that caused more than $1 billion in damage. There were 14 such events in 2011, 11 in 2012 and nine in 2013. The study concludes that this trend likely continued last year, based on the data available when the report was released in late December.

CoreLogic attributes the decline of natural disaster damage in part to the fact that there were no major hurricanes that made landfall in the Gulf of Mexico or on the Atlantic coasts in 2013 or 2014.

Individual hazard events that caused $1 billion+ in damages in the U.S. 2011

14

Still, several natural disasters wreaked havoc in the U.S. last year, which creates strain on the affected local housing markets and communities. There were major floods in California, Arizona and Michigan, including devastating floods that caused more than $1 billion in damage in metropolitan Detroit.

While tornado activity reached its 2012 lowest level in recent years in 2014, a powerful tornado that hit Arkansas last spring destroyed more than 400 homes and claimed 16 lives. The most damaging 2014 wildfire, meanwhile, was the Carlton Complex fire, which destroyed more than 300 homes in the state of Washington.

CoreLogic’s report says it’s impos2013 sible to predict the impact of natural disasters in 2015, but concludes it’s likely the U.S. will experience “a return to Find the entire report at www. higher numbers and corelogic.com. more damaging events.”

11

9

YOU’D BETTER SHOP AROUND

In a stunning report, the Consumer Financial Protection Bureau The survey found that 55 percent of shoppers (CFPB) finds that nearly half of all consumers do not shop around said they were very familiar with mortgage for a mortgage before purchasing a home. “Consumers put great rates, while 30 percent of shoppers said they thought into the choice of a home, but the mortgage process were not at all familiar. continues to be intimidating,” says CFPB Director Richard Cordray.

CFPB has released an interactive online What’s more, the study finds that 3 out of 4 consumers only “Owning a Home” toolkit designed to help apply for a mortgage with one lender or broker. While half of consumers through the process of shopping consumers shop around to see who advertises lower rates, fewer for a mortgage. The toolkit “makes it easy to than 1 out of 4 borrowers actually end up submitting a loan see how shopping for a mortgage can translate application to more than one lender or broker. These consumers into big dollars saved in the long run,” Cordray are not filling out applications with multiple lenders to see says. “We want to enable consumers to be which one can offer them the best deal. more savvy shoppers.”

But consumers who are confident about their knowledge of available interest rates are almost twice as likely to shop around Find more information and the Owning a Home toolkit at www.consumerfinance.gov. as consumers who are unfamiliar with available interest rates.

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The CFPB online toolkit helps consumers through the process of shopping for a mortgage.

crs.com

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Mar Apr

THE GREAT

[short list]

boomer migration 

Market numbers in context

WHAT’S TRENDING

+ industry headlines + statistics + trends

Inexpensive metropolitan areas that enjoy plenty of sunny weather are, not surprisingly, the top destinations for baby boomers, even as more members of that generation delay retirement, according to a study by the National Association of REALTORS®. The analysis of population trends, housing affordability and local economic conditions found that Boise, Idaho, and Raleigh, North Carolina, were the top destinations for baby boomers due to their strong job markets and affordable cost of living.

“A broadly improving economy and

rebounding home prices are giving baby boomers the opportunity to sell and move to support their retirement lifestyles,” says NAR chief economist Lawrence Yun. “Furthermore, our research identified cities movers are gravitating to while still remaining in the workforce as a business owner.”

The top markets positioned to see an influx of baby boomer homebuyers are (listed alphabetically):  Albuquerque, New Mexico  Orlando, Florida  Boise, Idaho  Phoenix  Denver  Raleigh, North Carolina  Fort Myers, Florida  Sarasota, Florida  Greenville, South Carolina  Tucson, Arizona Other markets with strong potential for attracting boomer homebuyers include Chattanooga, Tennessee; Dallas; McAllen, Texas; Riverside, California; and Tampa, Florida.

2014 PRICES RISE

FORECLOSURES FALL

Sales of existing homes decreased by a total of 3.1 percent in 2014 (4.93 million sales) from 2013 (5.09 million sales), NAR reports, but the national median existing-home price increased by 5.8 percent last year, rising from $197,100 in 2013 to $208,500. The median home sale price in 2014 reached its highest level since 2007.

The median existing-home sale price in December was $209,500, an increase of 6.0 percent from the prior year. At the end of December 2014, the total housing inventory dropped 11.1 percent to 1.85 million existing homes available for sale, which represents a 4.4-month supply at the current sales pace — down from 5.1 months in November. Unsold inventory was 0.5 percent lower than the year-earlier period (1.86 million).

“Home sales improved over the summer once inventory increased, prices moderated and economic growth accelerated,” says Lawrence Yun, NAR chief economist. “Sales were measurably better in the second half — up 8 percent compared to the first six months of the year.”

First-time homebuyers represented 29 percent of buyers for the second straight year, which represents the lowest level of entry-level buyers in three decades, NAR reports.

The number of properties with foreclosure filings continued to decline in 2014, falling 18 percent from 2013 and 61 percent from the peak year of 2010, when the housing market was still reeling.

The RealtyTrac Year-End 2014 U.S. Foreclosure Market Report finds that 1.1 million properties had a foreclosure filing last year, the lowest annual total since 2006.

Still, foreclosure starts in December increased 6 percent from the previous month and 14 percent from December 2013, marking the second straight month of year-over-year increases, the report says. Many of these foreclosure starts are in states that have judicial foreclosure backlogs.

“The U.S. foreclosure numbers in 2014 show a foreclosure market that is close to finding a floor and stabilizing at a historically normal level,” says Daren Blomquist, vice president at RealtyTrac. “But a recent surge in foreclosure starts and scheduled foreclosure auctions in the last few months of 2014 indicate lenders are gearing up for a spring cleaning of deferred distress in the first half of 2015 in some local markets.”

IN SUMMARY… In 2014, sales of existing homes declined by

3.

1%

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even as median prices increased by

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5.8%

Between 2013 and 2014, foreclosure filings declined

18 %

BEST IN

[cool stuff]

show

acquisitions on a theme

GADGET GRILL

In the news coming out of CES, you may have heard the phrase “Internet of Things,” which refers to household appliances that communicate with the Internet and with each other. Gadgets like Nest — a smart thermostat — have even been bought out by tech Starting at $6,000 mainstays such as Google. Lynx’s SmartGrill may not be primed for a similar buyout, but it certainly provides unique functionality. The grill includes speech-recognition technology that asks you questions about how you want your food cooked and then executes the cooking function based on your answers. If you’re shy about speaking to a grill, a companion app can be used for commands instead. lynxgrills.com

The annual Consumer Electronics Show (CES) took place in Las Vegas in January and all of the latest gadgets and technologies were on display. Here’s a look at some of the trends that emerged from the show and the hot new products that embody those trends. If you like to be on the cutting edge, these products are for you.

HOLD THE DRONE

Drones were all the rage at CES this year. While drone-maker DJI didn’t announce a new version of its popular $ Inspire 1 drone, it did announce a handheld mount that allows 2,899 owners to use the drone’s 4K camera in their hands while for single remote on the ground, in addition to the camera’s original function: taking unit photos and video from the air with the drone itself. The popularity of the Inspire 1 is due to its ease-of-use, which makes it a snap to take beautiful photos and videos from a bird’s-eye view. dji.com

SMART CAR

Available in spring 2015

Although they are capable of some truly amazing creations, 3-D printers are still fairly expensive for a product that has yet to realize its full potential.

If you’re looking to get a taste of 3-D printing for a fraction of the cost, the just-announced 3Doodler 2.0 is a great place to start. The 3Doodler is a “pen” that works almost like a glue gun, taking in solid tubes of colored plastic and outputting heated plastic that you can mold into different shapes. This 2.0 upgrade offers quicker, more efficient creation.

Many car manufacturers have been including smartphone or tablet connectivity in their recent models, and for good reason. Audi saw this trend and has reversed-engineered it, offering an Androidbased, Audi-branded tablet as an add-on feature for its 2016 Q7 SUV. The Audi tablet works just like any other tablet; however, in addition to features you would expect, such as Web-surfing, video-watching, or game-playing, you can also control vehicle features, such as GPS navigation, music selection and viewing vehicle information.

the3doodler.com

audi.com

DOODLE IN 3-D

100

$

BIG PICTURE

CABLE TO GO

Arguably the biggest splash at CES 2015 was made not by a new TV or gadget, but by a new app. Sling announced its partnership with Dish Network, which will for the first time divorce certain live television stations — including the juggernaut ESPN — from a cable TV subscription. For a $20 subscription fee, users will be able to access ESPN, ESPN2, CNN, Disney Channel, Food Network, TBS, and other channels live on their device of choice. For people who are clinging to cable solely for the live sports, this brings them one step closer to being able to cut the cord entirely. $ 20/ month

sling.com

150/ pair

$

FANCY FEET

Fitness buffs are always looking out for new ways to track their performance in their hobby of choice. To meet this need, several companies at CES trotted out products that can augment or enhance your workout.

Lechal Insoles are one such gadget that you wear in your shoes as you would any other insole. But unlike other insoles, they track fitness and GPS data. Users can count calories with a companion app, or even set a route and receive haptic feedback in the form of vibrations in their shoes for handsfree direction. lechal.com

While Ultra HD TVs (any TV with a resolution of 4K or higher) have been around for a few years, TV manufacturers are starting to focus more on them as customer interest rises. One new TV with a lot of buzz at CES was the Sharp Aquos Beyond 4K Ultra HD TV, which purports to effectively double the resolution of a standard 4K set, not by adding pixels, but through an innovative “pixel-splitting technology” developed by Sharp.

It is expected to be available to consumers in late 2015.

sharpusa.com

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crs.com

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Mar Apr

[smart

defend

solutions]

YOUR DATA

streamlining your business through technology

Implementing a data privacy and security program safeguards you, your clients and your professional reputation.

By Donna Shryer



secure and to notify individuals if security is breached. To review your state’s regulations, visit the National Conference of State Legislatures (NCSL), www.ncsl.org, and search for “security breach legislation.” In addition, the National Association of REALTORS® Board of Directors is drafting a Code of Excellence to raise member awareness on key issues such as data protection and technology proficiency.

As legal issues and NAR’s Code of Excellence develop, you can jump-start a data security program by downloading the National Association of REALTORS® 2011 Data Security and Privacy Toolkit (www.realtor.org, then search “data security toolkit”). The toolkit takes you through the paces to create a system ideally suited for your business, including best practices and multiple checklists. Wyne suggests beginning on page 6, where you’ll find an overview of the Federal Trade Commission’s Five Key Principles to a Sound Data Security Program.

Here’s a quick look at the five points and what they mean.

A recent study performed by security appliance vendor FireEye and its security-consulting wing, Mandiant, analyzed real-world data from more than 1,216 organizations in 63 countries across more than 20 industries. The results sent an alarming message: 97 percent of all businesses surveyed experienced a data breach in 2014.

“We used to hear about data breaches once or twice a year; now it’s monthly,” stresses Melanie Wyne, senior technology policy representative at the National Association of REALTORS®. “No one is immune, and it’s only a matter of time 1. Take stock: Know what personal before those in our industry experience breaches themselves.” information you have on file.

For real estate associations, brokers, agents and multiple The definition of personal information varies from state to listing services, it’s time to get serious about data security, state, although generally it’s contact information, financial including how to collect, share, protect and dispose of information, Social Security numbers and any data that confidential data. can identify an individual. “In our industry, we’re constantly collecting client information

BY THE NUMBER S Tools for Security — some of it sensitive, some not. And then we Currently, no federal laws regarding data store all this data on paper, desktop computers, privacy apply to real estate associations or laptops, mobile devices, flash drives and disks,” brokerages, unless a brokerage has a mortgage Wyne explains. “The point is that we can’t treat business or other financial affiliate, in which all data equally. Once you understand what of companies surveyed case the business would need to comply with you’re collecting, where you’re storing it and experienced more than one data breach in the the Gramm–Leach–Bliley Act (GLBA), Wyne who else you’re sharing it with, you can begin past two years. says. Most states, however, have laws that building a data security program that protects Source: Ponemon Institute report: Is Your Company require a business to keep personal information Ready for a Big Data Breach? sensitive data.”

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%

2. Scale down: Keep only what you need.

REALTORS® often collect information that’s technically not necessary to do their job, which means additional precautions must be taken to protect sensitive data. Joy Carter, CRS, broker associate with Keller Williams Realty in Coral Springs/Parkland, Florida, offers an example. “On the contract it asks for the buyer’s Social Security number.

I never let a buyer fill in personal information at that point.

I leave that to the closing agent. And as an extra precaution, we warn our buyers that they will be receiving a call from the closer. We tell them who that closer is and that it is okay to give this person sensitive information. If someone has an identity issue, I don’t want any action traced back to our team as an inappropriate behavior or action.”

3. Lock it. Protect the information you keep.

Digital data should be encrypted when in transit or in storage. Encryption means that electronic plain text is converted into another form, called ciphertext, which cannot be easily read by anyone except authorized parties. “Too many agents save their client data using insecure platforms like Dropbox and Google Drive, on off-the-rack storage devices or within their email. This gives anyone access with a little effort,” says Nobu Hata, NAR’s director of digital engagement. Instead, Hata advises investing time and money in compliant transaction-based platforms, such as DocuSign Transaction Rooms.

As for non-technical solutions to protect sensitive digital and paper documents, Carter recommends locked doors, locked

files, password-protected digital devices and hours of document shredding.

4. Pitch it. Properly dispose of what you no longer need.

Step 1 (Take stock) is the key to step 4. “If you understand what you do have, then it’s easier to figure out what you don’t need. And if you don’t need it, dispose of it,” Wyne says. Paper records should be shredded, and digital data as well as emails can simply be deleted, provided everything is encrypted. For unencrypted sensitive data, which you should not have to begin with, consider investing in a digital file shredder program that permanently deletes files beyond recovery.

5. Plan ahead. Create a plan to respond to security incidents.

Should you or your business suffer a data breach, you want a plan in place to address the situation. NAR’s 2011 Data Security and Privacy Toolkit provides model policies and disclosure statements. Creating a plan should include revisiting your state’s laws concerning data breaches.

Carter suggests a sixth, comCheck out the mon-sense step: “The baseline here recording of is how I want my personal informathe recent CRS webinar Data tion to be treated. I wouldn’t give Security and anything less to my clients.”

Privacy in Real Estate at bit. ly/1ALIOn4.

Donna Shryer is a freelance writer based in Chicago.

GADGET INSPECTOR

BLACKBERRY CLASSIC IS A REFINEMENT OF THE OLD STANDARD DELL XPS 13 IS A MACBOOK FOR THE PC CROWD

The sleek, Apple-inspired looks of the new Dell XPS 13 disguise its beefy PC interior. In addition to a stylish design, the XPS 13 packs a powerful processor and plenty of memory and storage, which allows it to display all of your work and media needs on its crisp “infinity” display. Dell calls its display “infinity” because the screen extends to the very edge of the laptop’s border, which the company says allows it to fit a 13-inch screen on what should be an 11-inch laptop. Higher-end models also feature touch-enabled displays.

For more information, visit dell.com.. Starts at $799.99.

Research in Motion’s new Blackberry Classic takes the company’s classic smartphone design and updates it for modern users. For fans of Blackberry’s tactile keyboard, the update might make it worthwhile to switch. The Blackberry Classic combines all of the features you remember from Blackberries — square screen, touchpad, full keyboard — with newer features you expect from For more information, visit smartphones such as a touchscreen display and us.blackberry.com. The Classic a front-facing camera. If your primary concern is lists for $449.99. getting through emails, this is the phone for you.

THE SAMSUNG PORTABLE SSD T1 OFFERS SPEEDY STORAGE While Samsung’s Portable SSD T1 sports quick data transfer and tons of storage space, the most impressive aspect of the portable hard drive is its size. Beyond its 1 TB (1,000 GB) storage capacity and a 450 MB/sec transfer speed via USB 3.0, the T1 comes in an incredibly small package.

In fact, it is truly pocket-sized — it’s

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slightly smaller than an iPhone 5. This allows you to carry a large amount of data without having to worry about lengthy transfer times.

For more information, visit samsung.com. samsung.com It’s $599.99 for 1 TB but also available in 500GB and 250GB models.

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focus

[inside track]

what’s trending in real estate

ON YOUR COMMUNITY The online marketing world is vast. Sometimes, being effective means focusing on your community.

By Gwen Moran



It’s no secret that the Internet continues to be a significant force in the real estate sector. According to the 2014 National Association of REALTORS® Profile of Home Buyers and Sellers, 92 percent of homebuyers used the Internet in some way during the home search process, and 50 percent used a mobile website or app. Forty-three percent of buyers began their home search process on the Internet.

With the proliferation of online media, platforms and applications, it can be challenging to find digital marketing strategies that work.

However, some REALTORS® and experts have developed three creative, strategic and manageable approaches that produce measurable results.

Building Community

Marketing expert Allan J. Ross, founder of A.J. Ross, a marketing agency in Chester,

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New York, says that digital marketing will fall flat if it isn’t supported by a personal touch and responsive team. Companies that invest in building relationships and community — providing great service and communicating well with clients both online and offline — are going to be the winners, he says.

Seth Dailey, CRS, team leader of The Dailey Group in Baltimore, Maryland, part of Keller Williams Realty International, supports his community- and relationship-building efforts offline with his digital marketing. When he hosts parties and get-togethers for clients, he takes many photographs and posts them to his Facebook page. He finds that doing so extends the good will from the event. Attendees tag themselves in photos and continue reminiscing about the event.

“That helps us reach out to friends of friends,” Dailey says. “They see their friends tagged on our Facebook page. The engagement there is so much higher than on virtual tours or anything else that we do [digitally]. So, our community keeps growing.”

Dailey’s team has also built 365Baltimore.com, a website devoted to events and entertainment

in the Baltimore area. The page has 20,000 followers. While it was labor-intensive to create, Dailey says that it was worth it because it positions his group as a leader in the community.

It’s also influential, he says.

“You go sit down with a business owner and say that you’d love to feature his business on a site with 20,000 followers, and it’s a big deal. It lets us give back to our clients and also shows that we know what’s going on in the areas we serve,” Dailey says.

Use Local Advertising Strategies Online

While the Internet is a global platform, you can also employ smart solutions for local online marketing. Tierra Wilson, founder of New Media 4 Agents, LLC, a Phoenix-area firm that specializes in marketing for real estate professionals, suggests looking for ways to winnow down broad marketing platforms to focus on your local market. Sites like Zillow and Trulia “are huge monsters that aren’t going away anytime soon,” she says. But you can make them more effective lead-generation sources by crafting an advertising plan around them. Create a profile on each with information about your real estate business.

Depending on your budget, she suggests focusing on the specific zip codes you serve, ensuring that your ad appears next to your listings and making sure that any leads generated come to you and not another agent. Be firm with salespeople for these sites and ask a lot of questions, she says.

“A lot of times when you talk to Zillow’s salespeople, they pitch you everything in your area, so when you talk to them, have a goal and know what areas you’re going to focus on. Ask what zip codes are important for you, what return on investment they’re seeing in those areas and ask whether anyone else has seen success in those zip codes,” she says.

Brian Copeland, CRS, chief of broker services at Nashville, Tennessee-based Village Real Estate Services, invests in Facebook ads by zip code, as well. His team purchases niche listing ads in target zip code areas, offering lasertargeted local exposure on highly trafficked sites. In addition, Facebook lets him reach out to prospective sellers even more precisely.

“We have done a lot of tests — a lot of trial and error — and found that Facebook ads bring our greatest return. So if someone lives in the 37207 zip code and they are going through a life change,

such as a marriage or a new child, information that Facebook’s ad wizard will tell you, then we YOUR AD will target those people in their Facebook ad HERE streams to list their home with us,” he says.

While many opt for Google Analytics to keep track of traffic and where it’s generated from, Copeland likes Woopra, which tells him how deep people are going into his site when they click through. He analyzes the zip codes that are getting the most attention and increases advertising investment “ You go sit down with a in those areas. business owner and say

Spend Time on Search Results

that you d love to feature his business on a site with 20,000 followers, and it s a big deal.”

With so many people looking for homes online, it’s critical to spend some time and effort bolstering your local search results. Producing good content on a regular basis is one of the best ways to do so, Wilson says. Content may include blog posts, new listing information, videos, podcasts, photographs, social media posts or virtually anything you create digitally.

Like Dailey’s 365Baltimore.com, Copeland’s team publishes content on a hyper-local blog at NashvilleandBeyond.com, where it shares information that would be hard to find elsewhere, such as the opening of a new farmers market and profiles of local neighborhoods.

Wilson says more REALTORS® also should be using video, which can be a powerful tool in enhancing search engine results. Wilson says it doesn’t have to be anything fancy — sometimes just sitting in front of your webcam and talking about the market or giving advice about getting a home ready to sell is just as powerful because it’s more authentic. And brief video tours of home listings can help boost a home’s visibility in the marketplace.

Whichever mix of digital marketing tactics REALTORS® choose, the goal is clear. Reach out to homebuyers where they live: online.

Gwen Moran is a writer based in Wall Township, New Jersey.

Find the free recording of the CRS Webinar How to Build Your Marketing Program, with Chris Brogan at crs.com/education/ courses/on-demand/recording-howbuild-your-marketing-program.

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— Seth Dailey, CRS

SEO

BY THE NUMBER S

92

%

of homebuyers used the Internet in some way during the home search process.

50 % 43

%

used a mobile website or app.

of buyers began their home search process on the Internet.

Source: National Association of REALTORS® 2014 Profile of Home Buyers and Sellers

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[window of opportunity]

strategies to grow your business

higher EDUCATION The desire to succeed in real estate may be an agent’s best incentive to pursue advanced education.

By Regina Ludes



BY THE NUMBER S In 2013, REALTORS® with no designation earned

$

35,500

while REALTORS® with at least one designation earned

61,100

$

Source: NAR

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“My goal is to have every agent I hire earn the CRS Designation within two years of joining our firm,” says Freddy Rodriguez, CRS, a broker with RE/MAX Inner Loop in Houston.

Since converting his brokerage to the RE/MAX franchise a year ago, Rodriguez oversees agent recruitment, retention and training for the growing agency. When hiring new agents, he pays close attention to the way they present themselves in interviews and considers their potential as future CRSs. “I tell them that there are 16,000 agents in our local market, and they are your competition. CRS education can help you differentiate yourself because only 3 percent of REALTORS® have earned the designation,” Rodriguez says.

According to a 2013 survey by the National Association of REALTORS®, the median income of a REALTOR® with at least one designation was $61,100 while an agent without a designation earned only $35,500.

Furthermore, 8 out of 10 real estate firms hire agents with professional certifications or designations. With so much to gain financially and professionally, why aren’t more agents pursuing advanced education?

CRSs like Rodriguez are working to change that. Whether offering financial incentives for taking CRS courses or providing career guidance and mentoring, CRSs who have invested time or money in an agent’s professional development say their efforts have paid dividends in increased agent confidence, better client relationships and improved productivity — factors that can boost a company’s bottom line for many years to come.

Incentive to Succeed

“ THERE ARE 16,000 AGENTS IN OUR LOCAL MARKET, AND THEY ARE YOUR COMPETITION. CRS EDUCATION CAN HELP YOU DIFFERENTIATE YOURSELVES BECAUSE ONLY 3 PERCENT OF REALTORS® HAVE EARNED THE DESIGNATION.”

new agents to attend. Once they experienced the CRS knowledge-sharing in action, it was easy for these agents to take the next step. So far, six of Rogers’ 12 agents have earned the CRS Designation, and his goal is to have all of them designated eventually.

Rogers also touts the CRS referral network as a benefit and encourages his agents to use his print CRS Referral directory. After showing one particular agent in his office how to use the directory for a referral, Rogers told him afterward, “You value the agents in this book because they are some of the best, right? Wouldn’t you want some agent somewhere to see your name in it and think the same thing?” By repeatedly showing the benefits of CRS education and referrals, Rogers believes most agents will take the next step toward the designation on their own.

Rodriguez encourages newly hired agents to take CRS courses and pay for the courses upfront. “Agents need to show me they are willing to invest in their education and continue growing in their careers. After showing me their completion certificate, I reimburse them 50 percent of their costs,” he explains.

He also emphasizes the quality information they receive with CRS education, Career Counselor especially the Listings (CRS 201) and Buyers You don’t have to supervise agents in your (CRS 202) courses, which he believes are firm to make a difference in an agent’s the backbone of any agent’s business. So career development. Donna Clayton Lloyd, far, three of his 17 agents have signed up for CRS, with Townsend Real Estate in Fayette—Freddy Rodriguez, CRS ville, North Carolina, currently counsels classes, and one has earned the CRS Designation. Since the program has been in place three people through her company’s menonly one year, it’s too soon to note any impact it’s had on the toring program, and she frequently meets new agents when company’s profitability. But Rodriguez says he has noticed a working trade shows for the North Carolina CRS chapter. difference in the way agents conduct themselves. “They are “I have never met anyone who had a clue about how to build more engaged in the sales process and with their clients. And a real estate business, develop a database or build client they are applying what they learn in their daily activities.” relationships,” Lloyd says.

But Rodriguez says it’s still up to the individual, not the At trade shows, she hands out copies of the CRS Designacompany, to develop their careers. “Agents have to want to tion handbook and recommends developing a career plan for get better. Those who do will succeed,” he says. meeting all the requirements. “Most people don’t understand where to start. I often suggest they attend a class in person Inspire Action because the networking there is so invaluable,” Lloyd says.

Many young agents recognize that education is the key to Seeing their success gives Lloyd great satisfaction, too. developing profitable careers, says Gary Rogers, CRS, with “Giving back is hugely important to me. I want to be there RE/MAX on the Charles in Waltham, Massachusetts. The for other agents in the same way that other people were quality of education is enough to motivate agents to get there for me in my career,” she says. “Besides, it makes me started on the path to the CRS Designation. Sometimes, want to be a better CRS agent, knowing that newer agents are watching me.” however, they just need a little encouragement.

While offering financial incentives and career guidance Rogers, who organizes special events for the Massachucan persuade novice agents to setts CRS chapter, often encourages his agents to attend pursue advanced education, somechapter meetings and programs to become familiar with the For information about organization. After attending the New England regional CRS times just being an example of CRS CRS classprofessionalism can motivate them conference in 2012, several of his agents went on to pursue room courses, eLearning to follow your lead. the CRS Designation. The one-and-a-half-day event featured courses and high-profile CRSs who discussed topics such as referrals, webinars, visit crs.com/ listings and team building. With the assistance of several Regina Ludes is a freelance writer based in education. sponsors, the event was offered for $99, which enticed many Chicago.

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Woods Bros. Realty, Lincoln, Nebraska

When did you get started in real estate?

I started part time in 2001 in a very small market west of Lincoln, Nebraska. I was “ When you as a REALTOR® growing my business pretty have heartfelt compassion steadily when I decided to for what your clients are take a Council of Residential Specialists technology going through, that really course, Using Technologies to Advance Your Business, in 2009, shows. You need to be taught by Pat Zaby, CRS. able to relate to people, I was very impressed with especially when stress the educational content and levels are high.” decided to pursue my CRS Designation.

How do you How did having the Why? approach CRS Designation I am all about education. marketing your affect how you did Knowledge is key to anyone’s business now? business? success. I want to know When I first started, I didn’t It really changed my peras much as I possibly really toot my own horn. My spective. I had a shift in my can — things are constantly business grew slowly and attitude. I am very focused changing and I want to be up steadily and I built up my on making sure clients to date. I also want to be that client and referral base. Now know that when they choose go-to person when someone I shout it from the rooftops to work with me, they are has a question about real that I am working for you. dealing with a professional estate. You’ve got to know I spend as much time as REALTOR®. I want them to know that I am dedicated to what you’re talking about! possible working with each working for them, finding client. For most people, that perfect home and What part of the buying a home is the largest making their dreams come buying process financial investment they’ll true. It also encouraged me interests you ever make, so I want them to be more involved with my the most? to know that I am there for profession on local, state I really love the entire them. To me, they are not and national levels. I’m process, but I have to say just my clients, they are part constantly bragging about that I look forward to that of my life, my circle — they the CRS Designation and how are “my tribe.” And they do “light bulb” moment when great it is for other agents clients get that look on their a great job of telling their who want to excel in their faces — that this is the home friends, family and co-workbusiness. Really, this is my they want, this is where they ers that if they are thinking passion. I breathe it, I love want to spend the next phase about buying or selling, they it, I live it! of their lives. need to call me first.

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How do you turn a referral into a client you can work with, and if all goes well, work with more than once?

I take time to listen to what they want and what their goals are, whether that’s finding their first home, an investment property or the “next phase in my life” property. I am here to make that goal a reality. I’m not afraid to be realistic with them, either.

People appreciate my honesty, and communication is key.

My husband and I are new to the “empty nester” phase and recently built a townhome. It opened my eyes to what a big adjustment that really is. When you as a REALTOR® have heartfelt compassion for what your clients are going through, that really shows.

You need to be able to relate to people, especially when stress levels are high.

What are some of the unique aspects of residential sales in Lincoln?

We are a smaller market and luckily we haven’t experienced some of the massive fluctuations that other markets have suffered. But that being said, Lincoln is a very progressive city. People are very interested in relocating

here. We have something for everyone. We have established neighborhoods with good existing inventory, and our new construction market is very hot right now!

We also are experiencing great interest in our newly revamped Haymarket area, with condominium sales hitting new highs. I do think people are very interested in building personalized, fully custom homes, too. I represent a great development in Lincoln — Fallbrook — and we have had more new builds in the last two years than we had in the last six. Housing costs are very economical in Nebraska.

What advice would you give to someone who is looking into getting their CRS Designation?

Do it! If I had to start over, the CRS courses would be the first ones I would invest in.

They are instantly applicable to your business. It really comes down to customer service, knowing your market and getting as much education as you can about all aspects of this business. The thing I love most about CRS Designees is that we’re not happy with the status quo — we’re always improving. We’re the best of the best!

Karalyn Hoefer, CRS, achieved her CRS Designation in 2010. She can be reached at 402.450.1355 or visit her at www. woodsbros.com/karalynhoefer.

Photo: Michael Kleveter

[peer to peer]

profiles of people to watch

KARALYN HOEFER, CRS

Karalyn Hoefer, CRS, was crowned Mrs. Nebraska in 2011. After taking her first CRS course, she went on to earn her CRS Designation — a crowning success in her pursuit of knowledge.

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P h o t o: W i l l

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dwelling

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[feature]

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By Gayle Bennett



As head of Sheriff Architecture Studio in Los Angeles, Garth Sheriff has specialized in green architecture for more than 20 years. In the last 10 years, he’s seen the green homes market grow, which he attributes to the increasing ease of building green.

“The enthusiasm is the same as 10 years ago, but the commitment to products is greater,” Sheriff says. Ten years ago, his green home clients wanted to use green building products, but they didn’t because it was more difficult and expensive to do so. “They were saying, ‘I can’t take a look at green building solutions at this time because I don’t think it’s as affordable, as obtainable or as easy to use.’ That’s changed.”

The green home market growth isn’t just anecdotal.

The most recent SmartMarket report from McGraw Hill Construction (now Dodge Data & Analytics) found that after faltering during the housing downturn, the single-family

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The green home market is growing. How can CRSs take advantage and help clients get the houses they want?

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dwelling points

[feature]

BY THE NUMBER S The single-family home green market will double between 2013 and 2016.

2013 $

37 billion [27% of the market]

Who Are Green-Home Clients?

2016

$

101 billion [33% of the market]

Source: McGraw Hill Construction SmartMarket report

O

A E T

home green market will double between 2013 and 2016 — going from $37 billion (27 percent of the market) up to $101 billion (33 percent of the market). Further, the report projects that more builders will be building green by 2018: The percentage of builders with at least 15 percent of their projects green will grow from 62 percent in 2013 to 84 percent in 2018.

Not only is this market sector growing, it’s also lucrative, since green homes tend to sell for higher prices than conventionally constructed homes.

CRSs interested in tapping into this client base will want to understand the most popular green features, the designation programs, and how to best attract and serve clients keen on going green.

Brenda Nunes, with Keller Williams Realty in Kirkland, Washington, knows the green home market well. She not only has the Green designation from the National Association of REALTORS®, she teaches NAR’s three-day Green Designation Courses. She works in Seattle’s eastside and estimates that 10 to 20 percent of her clients find her because of the Green

TING GREEN S I L SY

IT’S

N

If a house has multiple green features but those attributes aren’t listed in the MLS, does the house really have them?

The inability to market a home’s green features in the MLS is a problem that Deb Greene, CRS, with Coldwell Banker Burnet in Minneapolis, has run into. “In our MLS, we don’t have anything that would signify that, yes, this is a green house. As the consumer, if I said to my REALTOR®, ‘I’m interested in a sustainable property, and I want geothermal heat and this, this and this,’ there was no way of going into MLS and finding it.”

Also tricky is the appraisal process for such homes. “Because our MLS does not include those green features, how can an appraiser know to give it the value that it truly is worth?” Greene says. “This will be an area we need to improve on, quantifying and improving the accuracy of appraisals for clients and lenders.”

The Green REsource Council, a subsidiary of the National Association of REALTORS®, provides resources to help fix this problem.

A toolkit for greening the MLS and green MLS examples are available at www.greenresourcecouncil. org/green-resource-council-info/ greening-mls.

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Designation, but she ends up helping all her clients get the green features they want.

Her green clients fall into three subsets: clients with health issues who are particularly sensitive to chemicals, mold and dampness; efficiency-focused clients who are willing to pay more upfront to save money on energy costs down the line; and clients who are concerned about their home’s impact on the environment.

“As a green real estate agent, you have to understand that you aren’t selling to the same person,” Nunes says. For example, environmentally focused buyers will care about energy-efficiency just like the efficiency-focused clients, but they will also care about where products come from and their effect on the world.

“They are the people who can maybe afford granite, but aren’t going to want granite because of the mining practices.”

Deb Greene, CRS, with Coldwell Banker Burnet in Minneapolis, also has NAR’s Green designation and has taught the course. She says that about 30 percent of her clients are looking for at least some green features in a home, and they generally pay about a 30 percent premium for their homes — particularly if they are buying a home with a geothermal heat pump.

To help these clients, she stays up-to-date on green building products. “At each home show I go to, I see more and more products, vendors and options. I’m just amazed at how much more research has been done, how many improvements there have been to products and how much more educated the vendors and the builders are. As REALTORS®, we need to be better informed and do the research in our marketplace so we can better educate the consumer.”

What Do They Want?

Sheriff says that his clients are looking for green building solutions that exhibit three characteristics. The first is attainability. For example, a client might want insulation that doesn’t have chemicals in it, but “if you have to wait for it for six weeks and special order it, that’s not as appealing,” he says. The second criteria is effectiveness: Does it do the job at least as well as the non-green building product?

The third criteria is affordability, which he says is less important than attainability and effectiveness. “Now clients are sophisticated enough to look at the lifecycle costs and how much they save over the life of a product,” he says.

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Energy-efficiency features — with their cost savings down the road — continue to be very popular with homebuyers. The EPA estimates that homeowners can typically save up to 10 percent of total energy costs by air-sealing their homes, and adding insulation to attics, floors over crawl spaces and accessible basement rim joists. Investing in efficient HVAC systems and tankless water heaters are other ways to cut energy costs.

Steve Saunders, CEO of US Eco Logic, works with builders and developers to help them build energy-efficient and otherwise green buildings.

He has seen builders and buyers focus a lot on energy efficiency over the last decade, and he doesn’t see that stopping anytime soon.

Saunders predicts that the next big green home trend will be indoor air quality, meaning better ventilation and use of building products that have lower volatile organic compounds and less off-gassing (the emission of noxious gases from building materials).

Do Green Standards Matter?

There are three main green home programs: Energy Star (the Environmental Protection Agency’s designation), ICC 700 National Green Building Standard (the National Association of Home Builders’ designation) and LEED for Homes (the U.S. Green Building Council’s designation).

If the green home market is growing, does that mean interest in these designations is

[feature]

sunny days ahead

Solar cells have been around for decades, but they haven’t gone mainstream. That’s because solar technology has been very expensive, making it hard to recoup costs via energy savings. But as often happens with technology, production costs are coming down.

“As the cost of solar energy continues to go down, that’s going to be a huge opportunity,” says Steve Saunders, CEO of energy consultant US Eco Logic. He also thinks that the growing use of digital meters will incentivize solar. “Digital meters mean that eventually we are going to time-of-use electricity pricing, and solar will have even higher economic value.”

But Saunders thinks solar and other renewables will really take off when what we can do with energy efficiency — wall width, insulation, HVAC systems, window quality and so forth — reaches its max. “Once you’ve done the building envelope and HVAC, what you have left is renewables.”

However, he believes that government subsidies and incentives will be key to a true solar takeoff. Currently, qualified solar system expenditures can earn the 30 percent federal Residential Renewable Energy Tax Credit.

“It’s amazing to me that they do more solar in Germany than they do in Texas,” Saunders says. “But it’s all about incentives. We have a lot more sun in Texas than they do in Germany.”

growing? Nunes isn’t so sure. “In the early days, everyone was trying to sell the certification — the ratings and the star levels,” he says. “Now I see [homebuyers] looking at the attributes of the property: Why does this designation matter?

What are the benefits of the features?”

Saunders sees green designations doing better in apartment complexes and the commercial sector than in the single-family home market.

However, Energy Star homes are a significant portion of new construction in Texas. He says that before the downturn, new construction was probably around 40 percent Energy Star certified; he estimates that it’s at 25 percent today.

While these homes command a premium, exactly how much of a premium depends on all the features — and the location, of course.

A 2012 study by researchers at UCLA and UC Berkeley found that houses in California that had a green designation sold for 9 percent more than homes without such a designation.

Regardless of certification or designation, Nunes sees more overlap between clients looking for well-built homes with quality components and clients interested in buying homes with green features.

“If you are buying quality, chances are you are buying a product or system that scores pretty high on the green scale,” she says. “Who doesn’t want a healthy, high-quality, energyefficient home?”

BY THE NUMBER S The percentage of builders that have more than 90 percent of their projects green is expected to double by 2018 to

38

Source: McGraw Hill Construction SmartMarket report

Learn more from the NAR field guide to Green Homes and Mortgages at www. realtor.org/ field-guides/ field-guide-togreen-homesgreenmortgages.

Gayle Bennett is a writer and editor based in Washington, D.C.

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Photo: Tammy Strobel

Why are tiny homes increasing in popularity?

Tiny homes, like this mobile house in Olympia, Washington*, come in a variety of shapes, sizes and designs, but what they have in common is a focus on smaller spaces and a simpler lifestyle. People are attracted to them for a variety of reasons, such as environmental and financial concerns, including the fact that many people spend a significant portion of their lifetime income on a larger home.

vive la

difference

[feature]

How can CRSs serve the growing demand for smaller homes?

By Daniel Rome Levine

S te p e! insid

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vive la difference

[feature]



Photo: Brevard Tiny House Company

In the Los Angeles suburb of Yorba Linda, Betty Kerr is seeing bigger interest in smaller homes.

The interior of the Brevard Tiny House Company’s “Robin’s Nest” house in North Carolina.

It’s a trend Kerr, CRS, with Keller Williams Realty, first noticed about two years ago. She attributes it to people’s fears about their financial security in a shaky economy and a desire to reduce home-related expenses, especially utilities and maintenance.

“My clients aren’t trying to keep up with the Joneses anymore,” in terms of having the biggest house on the block, says Kerr.

When Kerr recently helped a family of six shop for a home, they

started out thinking they wanted a property as big as 3,600 square feet, with five bedrooms and three bathrooms. After Kerr told them what their mortgage payments and utility bills were likely to be, they scaled back their search to houses closer to 2,000 square feet.

“People are being more cautious and practical and really thinking things through,” says Kerr. “It’s all about saving money in an economy where many people are scared of losing their jobs.”

of Vail Realty Group, is seeing clients in their 30s and 40s asking about smaller homes that range from 1,400 to 1,800 square feet.

“The psychology is that a smaller house tends to lead to a more unified, tighter family,” he says.

“People are also still nervous about the economy.”

An even more significant trend Riley has noticed in his market over the last two years has been a spike in interest in so-called tiny homes, or properties that range in size from 100 to 400 square feet.

Sizes Trending Down Besides appealing to people who While the median size of new want simpler lifestyles and are single-family homes built in 2013 seeking to reduce their environhit an all-time high of 2,384 square mental impact, these miniature feet, continuing an upward trend homes are especially attractive to that started three years earlier, the younger people who may be strugtrend in 2014 was one of declining gling financially. The homes are median new-home sizes. Econoinexpensive, typically ranging from mists and housing experts attribute about $20,000 to $60,000, and they this recent contraction to the return are highly mobile. Many are built of more first-time homebuyers to on wheels and those that aren’t can the market as credit constraints easily be placed on a trailer and have loosened. First-time buyers moved to a parent’s backyard, for typically purchase smaller homes. instance. This also makes them The Residential Specialist reached ideal living spaces for elderly parout to a handful of CRSs around ents who want to be close to their the country to size up the situagrown children, says Riley, but who tion in their local markets. Their don’t want to feel like a burden by answers reveal rising interest in living under the same roof. smaller homes, and the reasons Riley recently helped a couple behind the trend are as varied as purchase a 300-square-foot tiny the homes themselves. home for about $35,000, which they placed in the backyard of Big Interest in their Lake Michigan beach cottage Tiny Homes so their grown children would In Munster, Indiana, Ed Riley, have an extra place to stay when CRS, broker owner and president they visit. Riley himself is even

Photo: Justin Earsing

you think that’s small?

A micro apartment in Providence, RI.

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The tiny-house trend is influencing downtown apartment living. Micro apartments — one-room living spaces typically ranging in size from 250 to 375 square feet — are popping up in urban centers

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across the country. These tiny spaces are attracting young professionals who want to be in close proximity to city hotspots and workplaces without paying the high rents that typically come with

downtown living. Featuring pull-down beds, folding tables as well as micro-size appliances, the units often have communal kitchen/eating areas and bathrooms.

Another twist on this trend is converting unused, surplus shipping containers into tiny

apartments. In Nashville, Tennessee, a developer is transforming 40-foot-long containers into 320-squarefoot living spaces complete with drywall, insulation and flooring that will rent for $700 a month, reports the Tennessean newspaper.

vive la difference

A ‘Social Movement’

“This isn’t just a novelty, it’s a real social movement” says Riley, “The tiny house movement is picking up tremendous steam nationally.”

There is even a reality cable television series called Tiny House Nation that spotlights these homes and the people who live in them.

“REALTORS® need to know about this movement,” Riley says, if they want to set themselves apart and provide real value to clients who are looking for the simplicity and flexibility that tiny homes offer.

as well with a smaller home with higher-quality finishes.”

When his three children left the nest, Leonard moved from a sprawling four-bedroom, threeand-a-half bath, 3,300-square-foot “McMansion,” as he calls it, to a one-story, 2,300-square-foot home.

Leonard says living on one floor is the most common way he sees people simplifying their lifestyles when they move into smaller homes. “While I am perfectly capable of climbing stairs, I choose not to and I don’t need to because there are no kids up there to yell

Images: American Tiny House Company

designing and building his own tiny home, which he plans on using as a mobile guest cottage and placing behind a summer property he owns.

Aerial plan views show the interior of the Nashville, one of American Tiny House Company’s models.

THINKING SMALL

Photo: Brevard Tiny House Company

Bigger Is Not Always Better

When one thinks of the state of Texas, tiny is not a word that typically comes to mind. The slogan “Everything’s Bigger in Texas” may be popular in the Lone Star state, but when it comes to real estate, size isn’t as important as it used to be, says Bob Leonard, CRS, an associate broker with RE/MAX Associates in San Antonio.

For most of his nearly three decades selling real estate there, Leonard has seen home sizes steadily rise. “Square footage was what is was all about,” he says. “People wanted the biggest house they could buy, and quality and construction was almost secondary.”

But now, a growing number of aging baby boomers whose children have left the nest are downsizing to simplify their lives.

Instead of size, they are looking for quality construction and high-end finishing details. Leonard is among them. “There are a lot of us in the market who are moving down,” he says. “People are taking a step back and realizing they can do just

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at anymore to clean their rooms,” he jokes.

Even though Leonard’s new home is smaller than his old one, it actually cost more because it is custom-built, is located in a more upscale neighborhood and has higher-quality touches throughout, such as terrazzo and hardwood floors and high-end crown molding. “I traded size for quality and location,” says Leonard, “and that is what a lot of people my age are doing in this market.”

The interior of the Brevard Tiny House Company’s “Keep on the Sunny Side” house in North Carolina.

Daniel Rome Levine is a writer based in Wilmette, Illinois.

Read more about the trend toward smaller homes at www.nahb.org/news_details. aspx?newsID=17094.

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After more than a decade building homes as big as 4,000 square feet, Andrew Pleban shrank his business in 2009 to focus on tiny homes. “I’ve always had a fascination with smaller dwellings,” he says. “Anybody can build big, but to build small and be able to fit everything into that size and still have it be aesthetically pleasing is an intriguing challenge.”

Now, his American Tiny House Company, in Marshall, Texas, builds houses ranging from 160 to 400 square feet that start at about $40,000. Pleban’s guiding principles are “less is more” and “small house, large life.”

“People are scaling down and looking for a more simple way of life,” he says.

“They are realizing they don’t need all the things they have accumulated over the years. How much stuff do you really need to live comfortably? Think of all the wasted heating and cooling and the unused space in a typical 2,000-square-foot house.”

The cost of utilities in a tiny home is negligible, he says, and they require practically no maintenance. An added bonus is you’re not paying property taxes because they are so small. “You have more money left over to spend on you,” he says.

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Today’s buyers may be more educated than ever, but they still need guidance and support from REALTORS® to help them navigate the buying process.

By Regina Ludes

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Darlene Sheets, CRS, with Future Home Realty in Seminole, Florida, recalls working with a client to find a home that was move-in ready.

“He worked as a building contractor and had renovated his first home. He did not want to update a new house, even though he had the skills. He said he’d rather pay more for everything to be done,” she recalls.

That mindset is increasingly common in Sheets’ market, regardless of buyers’ age and income level. “They don’t want to do more work after they purchase a home,” she says.

According to recent research by the National Association of REALTORS®, 92 percent of homebuyers use the Internet in some way during the home search process, and 43 percent begin their home search by looking at online listings. With so much information available online, many home shoppers know what is available on the market, and have specific ideas about what kind of home they want and where they want to live. They also have strong opinions about what they expect when working with a REALTOR®.

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service minded

But just because buyers are better educated doesn’t mean they are better prepared to deal with the paperwork or negotiate a purchase agreement on their own. REALTORS® who are knowledgeable about the local housing market and are supportive throughout the process can create satisfied customers for the long term.

The Economics Factor

Location, Location, Location

Before starting their home search, Luisa Rivera and her husband, another Sheets client, knew they wanted to work with someone they could trust, who would look out for their best interests and who understood the local market where they wanted to buy. It was also important to the couple that Sheets be able to work quickly within a tight deadline since the couple’s apartment lease was expiring at the end of December 2014. “We felt an urgency to get everything done, and I wanted to be sure we had a place to move into,” Rivera says.

The couple had two main criteria: first, to stay close to their current location where they were familiar with the local shopping, restaurants and attractions, and where many of their friends lived, and second, to find a home in move-in condition. The second factor proved more difficult because of their budget limitations. “Many homes in our price range had outdated bathrooms and kitchens, and the foreclosures were in terrible condition,” Rivera says. After six weeks of aggressive house hunting and fighting off a competing bid, the couple closed on a three-bedroom ranch-style home in Largo, Florida, in December.

Buyers’ housing decisions are driven in large part by personal economics, says Sheets. For example, many first-timers would like to buy a home but can only afford one at a lower price point with the lowest possible monthly payment. “Many of these young buyers still carry a lot of college debt and don’t have a lot of money for housing costs,” Sheets explains.

Multigenerational households have increased in her market as buyers combine households with other family members to share expenses.

Newly-constructed, eco-friendly communities are cropping up in several Florida markets and appeal to older adults who are concerned about energy efficiency and lower energy costs. “Mature clients are more interested in eco-friendly homes because they’re tired of paying $300 for electricity every month,” Sheets says. “These buyers have already done their homework online and ask a lot of questions, such as 2% ‘How much is air conditioning? How much is the electric Help learning bill?’ I didn’t get these types of questions 10 years ago,” more about the Sheets says. neighborhood Sheets’ client Nancy Plunkett recently put a deposit on a three-bedroom townhome at a new eco-friendly development called Eco-Village. Like many buyers, Plunkett explored her options online before contacting Sheets, so she had clear ideas about what she wanted in her next home. “I wanted to be in a small community that was within walking distance to restaurants and shops, and close to a running trail and the waterfront,” she says. The eco-friendly features at Eco-Village also appeal to her desire to live more economically and in an environmentally responsible manner.

53 % Plunkett had interviewed several real Help finding the estate agents and says many of them lack right home to good listening skills. “Often they already purchase have an idea of what is right for you before finding out what you are looking for.” She met Sheets through a local running club and appreciates the agent’s candid, laid-back approach.

“I had not bought a home in 25 years WHAT BUYERS so I did not know what to expect WANT MOST until Sheets explained everything FROM REAL to me. She knew what I needed to ESTATE AGENTS know before I knew what I needed to know.”

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3%

Help finding 4% and arranging Help determining financing how much the buyer can afford

6%

Help with paperwork

8%

Help determining prices of comparable homes

11 %

Help negotiating the home price

12 %

Help negotiating the terms of sale

Source: National Association of REALTORS® 2014 Profile of Home Buyers and Sellers

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Looking for Value

Kathy Magliochetti, CRS, with Calcagni Real Estate in Plantsville, Connecticut, says many buyers are looking for the same thing. “They expect to have updated baths and kitchens with granite countertops. They want to move in and enjoy their home, and they are willing to pay more for that privilege,” Magliochetti says.

Location is an important consideration for many buyers, especially young families who want to move to safe neighborhoods with quality schools for their children. “But they don’t want to waste their time driving through neighborhoods or visiting open houses, so they search listings on Zillow and Trulia. When they get overwhelmed with information, they look to me to sort through all of that. They need to be updated because the market changes constantly, and they expect me to be on top of things,” Magliochetti says.

“Buyers want to find the best value for their dollar, and they appreciate a real estate agent who can help them do that.”

That is especially true for Magliochetti’s client, Joseph Grippe, an attorney in his 30s who wants to move up to a larger home where he and his wife can raise their family.

With that goal in mind, location is a high priority, he says.

4%

4%

Agent is accessible through mobile technology

7%

Agent is timely with responses

8%

Agent has caring personality/good listener

13 %

Agent’s knowledge of the neighborhood

Agent’s association with a particular firm

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“We know we want to live in the next home for a long time, so we want to find a family-friendly neighborhood that offers good schools and has sidewalks and yards so our kids can play there and be safe.”

Since most of his family lives far away, Grippe wants a large home with open space to entertain family members and friends who visit from out of town. “We’ve looked at about 10 homes so far. While many of them met our criteria, none of them were ideal for us, so we are taking our time to find what we want. We think we can find our ideal home by spring 2015 when more homes come on the market,” Grippe says.

Before starting his home search, Grippe says it was important to him to work with a REALTOR® who has a thorough knowledge of the area where he was looking to buy and who could help negotiate the purchase agreement. He appreciates Magliochetti’s flexibility to meet around his and his wife’s busy schedules, and he valued her personal touch and responsiveness when visiting properties. “She lets us look around a home first before asking us what we think of it. Only then does she offer her opinion.”

Long-term Expectations

Today’s buyers expect to live in their homes for a long time, so % % they search for homes they can grow into, says Judy Reynolds, 1 1 CRS, with Evergreen Realty in Sterling, Massachusetts. Some Professional Other buyers appreciate the custom options available with new condesignations struction because they can design a home to suit their needs for the long term. One client couple Reynolds worked with recently is having a two-story home built that will contain spacious walk-in closets on both levels positioned one above the other so if the need ever arises, they can install an elevator in those spaces. “They wanted to be sure to stay where they were, no matter what, because they didn’t plan on moving again,” Reynolds says.

Buyers also find it easier and more cost effec23 % tive to add eco-friendly features, such as solar Reputation energy panels, to a custom-built home than of agent retrofit an existing property. Those special features can make the home more appealing to prospective buyers if the owner decides to sell down the road, says Reynolds. % “The home-buying process is more com23 plicated and time consuming than it used to Agent’s be.

The financing part can be tortuous with honesty and all the paperwork, inspections and negotrustworthiness tiations that take place,” Reynolds says. “It 15 % takes a lot of guidance from a REALTOR® to Agent is friend or prepare buyers for family member MOST IMPORTANT the bumps along Find informaFACTORS WHEN tion about the the road.”

CHOOSING AN AGENT

CRS Listings Course at www.crs.com/ education.

Regina Ludes is a freelance writer based in Chicago.

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Changing REALTOR® technologies make E&O insurance more vital than ever.

The exponential growth of the “Sharing real estate information Internet and portable electronic through new technologies like devices used by REALTORS® to texting and instant messaging runs communicate with clients in counter to what we are taught in real recent years has increased estate — to document all transactions the potential for costly that bring up additional exposure errors. Agents who don’t to demonstrate that the real estate

By David Tobenkin take precautions can face professional used reasonable care in legal liability claims when communications with clients and that something goes wrong with a transaction, communications were clear,” says Myers. “But with many of and this fact has increased their need for these technologies, there is no documentation trail.” errors-and-omissions (E&O) insurance to protect themselves.

What to Know About E&O It is simply too easy for REALTORS® to omit Myers and others say that many REALTORS® don’t underkey details or unintentionally make misleading statestand what E&O policies cover or how to employ them. And, ments in the frequent, abbreviated, and often breezy more commonly, they harbor a misconception that such and informal communications commonly made insurance isn’t needed outside the 12 states where it is through smartphone texts, emails or via posts mandated by law. on social media like Facebook and Twitter.

“E&O insurance is as essential as a [property] survey,” “REALTORS® expanding into those areas says Dale Carlton, Jr., CRS, J.D., 2015 CRS president and an may be treating them too casually and associate professor with REALTOR® University. “I wouldn’t mistakes are being made,” says Eric Myers, buy a sandbox without getting a survey to make sure the vice president and real estate E&O program property is where it is believed to be. This insurance promanager at Chevy Chase, Maryland-based tects you from the worst-case scenario if you did something Victor O. Schinnerer & Co., Inc. The company wrong you were not aware of or if someone says you did, is an underwriting manager for insurer CNA, which means you will still have to defend against the lawsuit which has partnered with the National Association even if you exercised adequate care,” he says. of REALTORS® (NAR) to provide NAR members “People feel that if they haven’t been sued during a long with special pricing on real estate E&O insurance. career in real estate, they don’t need E&O insurance, but the

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your E&O toolkit

12 states require real estate E&O insurance.

Mandatory E&O insurance states include:

North Dakota

South Dakota Idaho

Wyoming Nebraska

Iowa

Rhode Island

Colorado Kentucky Tennessee New Mexico

CLAIM CHECK

Mississippi

CLAIM TYPES Negligence Misrepresentation Breach of Contract Fraud, Intentional Acts, Misconduct Breach of Fiduciary Duty Civil Rights & Fair Housing

PROBLEM AREAS Contract Error Valuation Sewer & Well Escrow Structural Issues Water Infiltration & Mold Title Issues

longer you’ve been in the business, and the more matters in which you have been involved, the greater the chance of a lawsuit,” Carlton says. “And the fact that you didn’t know something may not protect you; you may have had a duty to know something, such as the sewage plant that was going to be built a mile from the home you were selling.”

Yet only 33 percent of REALTORS® were covered by E&O insurance in 2013, according to a 2014 NAR member survey.

E&O insurance covers against negligent, unintentional activities by the REALTOR®, such as unintentionally failing to disclose a material condition in a property, failing to discover a material condition in the property and unknowingly having a financial conflict relating to the property that could harm the client’s interests.

Not covered are intentional acts such as willfully failing to disclose a known material condition and, often, violations

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BY THE NUMBER S Only

33

REALTORS® were % ofcovered

by E&O insurance in 2013.

of some state codes and regulations, notes Krista Kochosky, J.D., senior counsel and head of litigation at the Cranberry Township, Pennsylvania-based Lynch Law Group, LLC. The insurance generally pays for the cost of defending against such claims and, if the plaintiff is successful, for the claim itself, up to the limit of the policy. A rare exception to the need for such insurance, Carlton notes, is where large brokerages can afford to self-insure.

Residential REALTORS® can obtain coverage for less than their commercial real estate colleagues given lower risk, says Myers. The cost is often modest, sometimes as little as $600 per year for an agent in an area with moderately priced residences, Myers notes.

Myers says that carrying appropriate E&O insurance can be a competitive edge for REALTORS® and associated brokers by demonstrating that they are established, responsible

Source: NAR 2014 Member Profile

Source: Victor O. Schinnerer & Co., Inc

Most common types of E&O insurance claims:

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professionals. He mentions that some types of residential sales work require it, such as bank work, franchise work and HUD work.

Real estate professionals must make sure there are no gaps in coverage, which frequently occur when the broker or agent switches employers or insurers, or retires Follow the Game Plan without realizing that claims on past acts are Real estate professionals must make sure their still possible. Other gaps may arise from a failE&O policy also covers the business activure to understand the nature of the coverage ities in which their brokers and agents will period; most policies are written to cover a be engaged. Thus, if one REALTOR® covered period when claims occur, rather than when by the policy of a brokerage that is primarily the negligent act itself occurred, which can engaged in residential real estate sales also affect the window of coverage. manages properties, this activity should be Some points may need to be negotiated. included in the E&O policy. If not, it should be Copyright infringement A broker may wish to insist that the policy made clear that such activities are not part of include the right to select the attorney who will claims are being presented the real estate practice of the brokerage, and defend it in the event of a lawsuit, or the right against agents who the agent should obtain his or her own coverto decline to settle. These could have other use photographs taken legal or business implications for the agent or age. E&O insurance may not cover negligent and licensed by others, brokerage. “You want to be represented by an and these are often not attorney who knows not only real estate, but covered by E&O. “ You want to be represented your particular business,” says Kochosky. by an attorney who knows As with other forms of insurance, Some policies cover REALTORS® who have policies and pronew developments, not only real estate, but cedures designed to promote professional such as compromise your particular business.” best practices can generate discounts from of confidential client — Krista Kochosky, J.D. E&O insurers. Yet Carlton notes that a tome information if a brokergathering dust on the bookshelf will not do. age website is hacked.

Brokerages must actively train professionals advice or statements that are outside the scope and ensure policies are implemented. Otherof an agent or broker’s professional expertise, REALTORS® should also such as offering legal, accounting or engineerwise, failure to follow such policies could be determine if negligent ing advice. used as evidence against the brokerage in any property and bodily Ideally, competent legal counsel who has a negligence lawsuit. injuries to clients are firm understanding of the real estate business Kochosky notes that REALTORS® should covered. generally, and of the broker or REALTOR’S® require signed documents from clients particular business, should review E&O acknowledging that issues with the property Some policies may allow policies to make sure insured and insurer have been explained to them and that clients activities outside of the agree, and that the policy is clear as to what is may need to consult other professionals real estate professionand isn’t covered. There are potential issues concerning issues related to their purchases, al’s expertise, if they affecting coverage that most REALTORS® including appraisers, tax attorneys, accounassociate with an expert would never think of, Carlton says, such as tants and engineers, since “the average in that area and obtain a policy language that may provide for coverage consumer may otherwise think agents and statement from the client of negligent actions only in the course of paid brokers are responsible for those areas.” that they understand they services, but not for REALTORS’® charitable Real estate professionals should periodically are not working in their services to nonprofit activities. assess whether or not their policy remains area of expertise.

Agents also must make sure they know well matched to their business practices. “For what coverage their broker is providing and many brokers, what they are doing is always what contributions, if any, they will be expected to make to evolving, so their coverage must, too,” Myers says. premium payments and deductibles in the event of claims.

David Tobenkin is a freelance reporter based in the Greater Washington, D.C. area.

Sometimes, additional coverage or a separate policy for agents may be advisable, Carlton notes.

The amount of E&O coverage REALTORS® need may vary, For more information about E&O Insurance, visit www.realtor.org/field-guides/ with those handling much more expensive properties needing field-guide-to-errors-omissions-insurance. more coverage due to potentially greater claims, Carlton says.

PRO TIPS

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resources for learning & leisure GOOD READS

kids!

WHAT THINGS MATTER TO KIDS TODAY? By understanding what our younger colleagues hope to get from their work, we can harness the energy, brain power and tech savvy they bring to the table.

Reviewed by Allan Fallow



Sick of reading about baby boomers? If so, you’ll embrace this guide on how to peacefully co-exist in the workplace with millennials — the 77-millionstrong population bulge of Americans born from 1980 to 2000.

Author Lee Caraher punctures certain stereotypes about MILLENNIALS & millennials (that MANAGEMENT they’re entitled, preThe Essential Guide to sumptuous slackers, Making It Work at Work for starters) while

by Lee Caraher confirming others: Bibliomotion They do need con203 pages, $24.95 stant feedback, they do expect organizational transparency and access to the top tiers of management, and they have been known to anticipate recognition merely for showing up.

If you’re 40 to 65 years old today, you may be looking at another 10 to 35 years on the job!

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So wake up and smell the Red Bull, people: “Now is the time to find a way to work more productively with the younger cohort,” writes Caraher. “To ignore this opportunity is to consign yourself to misery.”

Personal experience inspired Caraher to write Millennials & Management. As head of the San Francisco marketing agency she founded in 2002, the author recalls the day she hired her first millennial in 2008 as “a watershed moment”: The young woman’s work was “fantastic,” recalls Caraher, but she brought her dog to work unannounced, then “asked for four weeks off before her wedding — five weeks before the wedding.”

Later in the book, Caraher reveals that she had to double as a sort of managerial Miss Manners at times, teaching millennials why common courtesies such as “please” and “thank you” are non-negotiable elements of official texts and emails.

Strategic Advantage

But Caraher’s not here to hector any particular cross-section of today’s workers, be they boomers (the generation born 1946–1964), Gen Xers (1965–1979), or millennials. With millennials now constituting half of the staffers at her 30-person agency, Caraher spends “a good chunk of time advising companies on how to work with, communicate with and market to millennials.” Even the least forward-thinking executive, she says, should be able to understand why making the most of a generationally diverse workforce is no longer just a nice-to-have: “Those companies that become places where millennials are welcomed and appreciated will have a significant strategic advantage over the competition.”

To research Millennials & Management, Caraher surveyed and interviewed hundreds of employees nationwide in a broad range of industries. Their verbatim quotes pepper the pages of this

no-nonsense business guide, whose chapters conclude with counterbalancing lists of “Management Do’s and Don’ts” and “Millennial Do’s and Don’ts.” Among the former, my favorite has to be, “Don’t ever say, ‘You’re too young to know…’ unless you want people beating a path to the exit door.” Among the latter, it’s “Don’t be upset if the person you want to see can’t see you right away.

People are busy for a reason, and that reason most likely has nothing to do with you.”

Here’s What Works

So, what do under-35s hope to get from their jobs in 2015? First, they want to do meaningful work. Second, they want to understand how their role advances the company’s mission or bottom line over the long haul. Third, they want to see evidence that their ideas are being heeded — and possibly even put into practice. Fourth, millennials put a premium on fitting in with whatever team they are joining.

Fifth, they seek regular feedback on, and appreciation of, their work.

The book’s later chapters explain how transparency can build employee engagement; why flextime and work-life balance can give your company an edge (and keep new hires from streaming out its doors); and what organizational hierarchies mean to millennials (hint: not much).

Charting the shifting sands of intergenerational office dynamics must have been a heavy lift for the author, who describes herself as “Chief Bacon Officer” in the Caraher household because her husband — “Chief Home Officer” Pete — job-shares in order to care for the couple’s developmentally disabled younger son. But she neatly pulls off that feat in Millennials & Management by sketching broad labor trends and interlarding

them with specific coping schemes.

Let me leave you with a handful of my favorites — which, incidentally, I think qualify Caraher for a second title: Wise Woman of the Workplace.

1. If you’ve gone back and forth on an issue in IM more than four or five times, for God’s sake stop typing and pick up the phone to resolve it with the other person.

2. Given that “sitting is the new smoking,” consider instituting a 30-minute “Walk ’n’ Talk” each week to encourage millennials to pitch you new ideas. “By walking side by side instead of sitting across a desk or table, you remove the stress of having to look the boss in the eye while sharing thoughts.”

3. To curb outbreaks of Impulse Control Disorder on your organization’s email platform, dial the “Send Delay” function up to five minutes. This lets you retrieve those ill-advised instances of “oversharing” when you need to.

4. Mentorships should go both ways: “If you continue to be flummoxed by Instagram or Pinterest, or don’t know how to use Facebook or blog comments to your advantage, consider having a millennial colleague or acquaintance mentor you for a month or two.”

5. Assume that every millennial who works for you has Google News Alerts primed to ping them when something pops about your company or its executives. In the New World Order of work, this means you must communicate “good news, neutral news, and bad news early and often — it’s like voting in Chicago.”

YO U M I G H T A L S O L I K E …

ACT LIKE A LEADER, THINK LIKE A LEADER

By Herminia Ibarra [Harvard Business Review Press] 200 pages $ 21.78/hardcover A professional leadership expert details ways to gain better perspective on your work and improve your leadership philosophy.

A RANDOM WALK DOWN WALL STREET

By Burton G. Malkiel [W. W. Norton & Company] 448 pages $ 22.41/hardcover This updated and revised version of the investment advice classic addresses the latest Wall Street trends.

NEW RULES OF THE GAME

By Susan Packard [Prentice Hall Press] 256 pages $ 19.75/hardcover HGTV co-founder Susan Packard shares a new paradigm for modern businesswomen based on lessons learned from her 30-year career.

YES, AND

By Kelly Leonard & Tom Yorton [HarperBusiness] 256 pages $ 20.51/hardcover Communicate more effectively with these tips from improvisation specialists at the famous Second City comedy theater.

Follow magazine writer and editor Allan Fallow on Twitter: @TheFallow.

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THE GOOD LIFE

resources for learning & leisure

FINE AS wine



While we all have our favorite wines, it might be time to try something new. There are plenty of good American wines you can add to your cellar without even having to cross any metaphorical oceans.

Charming Whites

Luscious Reds

Chardonnay has become a staple for many wine lovers and is, in fact, America’s favorite — red or white. The flavors of a good Chardonnay range from fresh and bright with apple or citrus flavors to those that are fuller, spicier or “oak-y.”

Among aficionados — and good old regular wine drinkers — there is a strong debate raging as to preference when it comes to oakiness. Many claim that the flavors imparted from the oak barrels used to age some Chards can be altogether too heavy-handed, especially when offered as accompaniment to subtly flavored foods. In response, vintners have begun producing unoaked or “naked” Chardonnays that are aged, unapologetically, in stainless steel tanks. With lovely offerings from California, Oregon and Washington, and prices beginning around $15 or even less per bottle, there is no reason to hold back. Have a wine tasting in your home or at your next client event.

Try:  Chateau Ste. Michelle Chardonnay Indian Wells  Clos du Bois Chardonnay Reserve Russian River Valley  Columbia Crest Chardonnay Two Vines  Dominican Oaks Chardonnay Unoaked  Kendall Jackson Chardonnay  Toasted Head Chardonnay  Wente Chardonnay Morning Fog  Woodbridge Mondavi Chardonnay Light Oak

Red grapes are the source for many varietals, including Pinot Noir, Zinfandel and Shiraz. Some of the most popular in the United States — and worldwide — are Cabernet Sauvignon and Merlot. Many wineries produce lovely bottles at affordable prices ($15 or less), but it is easy to slip into the $20 to $30 price range once you fall under their spell.

Cabernet Sauvignon is a dry, red wine that is produced in styles ranging from fresh and “fruit-forward” to full-bodied with prominent tannins. The flavors tend to remind the drinker of dark fruits, such as blackberries, black currant or plum, with more complex examples featuring chocolate, coffee, herb or tobacco notes.

Try:  14 Hands Cabernet  Apex Cabernet*  Coppola Diamond Cabernet  Estancia Cabernet  Ghost Pines Cabernet  Mirassou Cabernet  Mondavi Private Selection Meritage  Ravenswood Vintner’s Cabernet

Sauvignon Blancs are derived from white grapes of the Bordeaux region of France. Also labeled as Fumé Blanc, this wine tends to be light, dry and crisp with flavors of citrus and melon. It may also have grassy notes and aroma. It can be served with a full meal but shines most brightly as an aperitif.

Try:  Abbeyville Fumé Blanc  Angeline Sauvignon Blanc Russian River Valley  Apex Sauvignon Blanc  Benziger Sauvignon Blanc Sonoma  Dry Creek Fumé Blanc  Martin Ray Sauvignon Blanc

THE GREAT CORK DEBATE

Pulling a real cork from a bottle of wine is an act steeped in tradition (and often great drama). But winemakers are finding that wine consumers are slowly becoming more accepting of substitutes for cork, including plastic stoppers that

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While some people look down on Merlot for its approachability, this varietal can be refined and elegant and has a fine pedigree as an established vintage from the Right Bank of Bordeaux. American wineries tend to focus on the soft, fruity flavors but have not entirely avoided the more full-bodied qualities associated with oak, cedar smoke, vanilla or earth.

Try:  Bridgman Merlot  Columbia Crest H3 Merlot  J Lohr Merlot Los Osos  Mondavi Private Selection Merlot  Muirwood Merlot  Stag’s Leap Merlot*  Tin Roof Merlot * $20 or more

can be removed with a corkscrew or (gasp!) screw tops. Screw tops are no longer an automatic hallmark of cheap, bad wine. In fact, screw tops provide protection against wine oxidation or spoilage that occurs in a small percentage of bottles with real corks. Plus, they make closing a partially full bottle so much easier.

inside

CRS

THE NEED FOR

speed

news from the council

Exclusive: Inman Select for CRS



It’s tough for busy REALTORS® to keep up with the daily real estate industry news and trends that affect the way they do business. Do you have access to all the breaking information you need to succeed? CRS now provides a valuable new resource to all its members that will help keep you informed about developments in our fast-moving industry. And the best thing is, it’s free.

CRS has partnered with prominent real estate and technology publisher Inman News to deliver the Inman Select news feed exclusively to CRS Members. This new member benefit — a $199 value — is free to all CRS Members as part of your annual dues. Inman Select news includes special in-depth reports; breaking news alerts and analysis from Inman’s award-winning team; profiles and features of industry leaders; and new insights into a changing industry. Inman Select for CRS gives CRS Members unprecedented access and insight into

the real estate industry — everything you need to be smarter about real estate.

“The Inman Select news feed provides an important new benefit to help CRS Members to learn the very latest industry trends and gain the knowledge they need to stay one step ahead of To access the Inman Select news feed, CRS members can simply log in to their the competition,” says account at www.crs.com and then click Tony Priore, CRS vice on “Subscriptions,” which features both president of marketing the Inman Select for CRS news feed and The Residential Specialist magazine. and communications.

CRS ONLINE DIRECTORY

It’s no secret that referrals are an important factor in an agent’s overall sales.

According to the 2014 National Association of REALTORS® Member Profile, referrals accounted for 21 percent of all REALTORS’® business in 2013. When you take into account that this same report states that the typical agent had a sales volume of $1.8 million, it’s clear that a strong referral business is vital for your ongoing success.

Smart agents have a plan in place to cultivate referrals, and their business shows it. They put themselves in front of other successful agents and build relationships that can pay off with a referral immediately or years in the future.

As a CRS, you know that when you need to find a referral you visit the Find a CRS Directory at CRS.com. As a CRS Designee, you already get one complimentary listing in your office city, but you can dramatically increase your odds of being found

in the online directory by ordering additional city listings for just $25 each.

CRS Designees also can gain extra exposure to their top-producing CRS peers by buying a banner ad and becoming a featured agent for a specified area. For just $250 you can create and upload your own banner ad, or choose from a number of pre-designed ads for an additional $50.

If you would like to increase your exposure and win even more referrals, be sure to order your banner ad and/or additional listings for the Find a CRS Directory today. Simply log in to your CRS account at CRS.com and select the link in the right sidebar that reads “Place Your Online Directory Order Today.”

For questions, call Customer Service at 800.462.8841 or email us at crshelp@crs.com.

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CRS news from the council

TAP INTO THE app

“Find a CRS App” member benefit



Are you taking advantage of all your CRS member benefits? One of the many great benefits you have as a CRS is access to the Find a CRS Mobile App. This app is available on Android smartphones (available at bit.ly/1ltImQx), iPhones and iPads (available at the iTunes app store at bit.ly/1bEUE3L).

The Find a CRS Mobile App provides a convenient way to help agents and consumers find a Certified Residential Specialist using their Internet-enabled mobile devices.

The tool makes it even easier for CRS Designees to make connections and build a more lucrative referral business.

Whether you’re a current CRS, a REALTOR®, or a consumer looking to buy or sell a home, a few taps of a finger give you access to a database of the top 3 percent of

all residential REALTORS®. Search by zip code, neighborhood or agent last name to find CRS agents in a specific area. Once you find an agent you want to work with, simply tap on their contact information to call, text or email.

Other features include:  Search by city, neighborhood, zip code, state or last name  Sort and filter results by criteria such as language spoken, specialization, certifications and designations  Streamlined view of member profiles, including headshot, contact information and biography  One-tap connection to a CRS via phone call, email or text message Automatic offline access for searching when data connectivity is not available  Regular database updates to ensure you are always equipped with the latest list of CRS Designees and contact information Please let us know how you like the app and feel free to give us a testimonial about how you used it to make or receive a referral by emailing marketing@crs.com.

2014 CRSs OF THE YEAR Congratulations to all the CRS of the Year winners for 2014.

These individuals showed exceptional dedication to their chapters, contributed generously of their time and resources to their communities and operated successful businesses. Winners also must be members of their local boards and associations for more than five years. Here are the 43 winners who were notified by press time.

Carol Andrews, CRS House & Home Real Estate, Alabama Bobbie Breeden, CRS Rise Real Estate, Alaska Jen MacLay, CRS MacLay Real Estate, LLC, Arizona

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Jonna Shaw, CRS Pam McDowell Properties, Arkansas Mark Minchew, CRS RE/MAX Austin Associates, Austin Area Laura Jarrett, CRS RE/MAX Commonwealth, Central Virginia

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Larry Clark, CRS Equity Colorado Real Estate, Colorado

Denise Miyahira, CRS Island REALTORS®, Hawaii Aloha

Larry Gillette, CRS RE/MAX Advantage REALTORS®, Kentucky

Sally Bowman, CRS Sally Bowman Real Estate, Connecticut

Kathy Martin, CRS John L Scott Real Estate – IDA, Idaho

Rayelynn Fagot, CRS RE/MAX New Orleans Properties, Louisiana

Paula Angelopoulos Urbinati, CRS Sand Castle Realty Group, Inc., Florida

Debra Campbell, CRS Concept Real Estate, Illinois

Gretchen Conley, CRS Keller Williams Realty Centre, Maryland/D.C.

Margaret “Suzy” Smith, CRS Legend Home Corporation, Greater Houston

Joy Sharp, CRS Real Living Homes and Beyond, Indiana Carol Halstead, CRS Century 21 ProLink, Iowa

Kurt Thompson, CRS Keller Williams Realty – North Central, Massachusetts Furhad Waquad, CRS Real Estate One, Michigan

inside

CRS

S AV E T H E D AT E

UPCOMING CRS WEBINARS Have you taken a CRS webinar yet? The one-hour online sessions give you exactly the amount of targeted information you need about a given topic, live-streamed to your home or office computer.

CRS webinars have helped thousands of CRS Designees and real estate professionals learn about some of the hottest topics in the residential real estate industry. Upcoming sessions include:

Getting the Most Out of Evernote Linda Davis, CRS, covers how to organize your Evernote content so that it is easily retrievable 16 and how to use Evernote to best effect — as a powerful tool for storing client resources and incubating business projects and ideas.

How to Manage Client Info, No Paper Necessary Pei Lin Huang, CRS, will cover apps you can use 2 to capture and organize client information, as well as strategies for sharing information with clients.

APRIL

JUNE

Short Sales: A Guide to Recent Changes MAY Author, speaker and real estate broker Melissa Zavala will cover changes in legislation, updates 5 in the programs and policies of major banks regarding short sales and foreclosures, and effective marketing techniques for pre-foreclosures and foreclosures.

Staying Top of Mind without Losing Your Mind 22 REALTOR® Dan Faulkner, Jr. shares his strategies for implementing a realistic mix of top-of-mind initiatives, using systems and tools to advance your efforts, and leveraging your time spent on the personal touches that generate the greatest return on investment.

Increase Your Income and Have More Time for You Real estate coach Bernice Ross identifies bad hab19 its that are potentially affecting your productivity and health, shares strategies, tips and tools to get more done in less time, and covers how to attract more business by getting rid of the clutter and focusing on what’s important in your business and life.

And don’t forget that CRS webinar recordings are available for download via smartphone, Apple iPad or tablet PC. CRS Recorded Webinars are an easy, convenient way to learn about the topics that impact your business and keep you on top of industry trends — all while earning credit toward the CRS Designation. And you can buy a five- or eight-webinar bundle to make it even easier.

Kathy Counts, CRS Prudential Collins-Maury Inc., Mid-South

Zanthia Hastings, CRS RE/MAX Executive Realty, North Carolina

Raul Azpiazu, CRS C21 Jackson Real Estate Wysox, Pennsylvania

Lynda Eisenmann, CRS Preferred Home Brokers, Southern California

Sandra Maxwell, CRS Counselor Realty Inc., Minnesota

Sandy Kaplan, CRS Santa Cruz Properties, Northern California

Sally Hersey, CRS Williams & Stuart Real Estate, Rhode Island

Shawn Cunningham, CRS RE/MAX Advantage, Southern Nevada

Scott Biechele, CRS Vacationland Realty Inc., Ohio

Cyndy Brown, CRS Keller Williams Group One, Inc., Sierra Nevada

Marilyn Blankenship, CRS Fridrich & Clark Realty LLC, Tennessee

Debbie Solano, CRS Coldwell Banker Select, Oklahoma

Bobette Fisher, CRS Carolina One Real Estate, South Carolina

Robert Rogers, CRS Zars & Rogers REALTORS®, Texas

MAY

Candis Dorsch, CRS Bozeman Broker Group, Montana Kathleen “Kathy” Scorzelli, CRS Coldwell Banker Residential Brokerage, New Jersey Marcia Haney, CRS Keller Williams Realty, New Mexico

Kathy Kershner, CRS Coldwell Banker Seal, Oregon

news from the council

JULY

Visit crs.com/recordedwebinar-bundles and crs.com/education for more details about the live and recorded webinar sessions.

Terry Simmons, CRS RE/MAX Unlimited, Utah Clyde Cooper, CRS RE/MAX Alliance, Virginia Marvin Paluszynski, CRS Shorewest REALTORS®, Wisconsin Jo Baldridge, CRS Cindy Gerke & Associates, Wisconsin

Ebby Halliday, CRS Ebby Halliday REALTORS®, Texas Lone Star

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CRS

connect

YOUR CRS

network

expand your network



Kathy Moore Cloud, CRS, with Texas Hill Country CONNECTION Realty Co. in Boerne, Texas, was busy setting her goals PERFECTION for 2015 when she received a referral call from April Carlton, CRS, with The Carlton Company in Arvada, Colorado. What happened next reinforced the value of Cloud’s CRS Designation to her business.

Carlton said that her client was bound for Texas and needed an agent who could handle the contract in a timely matter, as she expected the client’s house to sell fast. Up for the challenge, Cloud had the paperwork sent over the same day. She then called the buyers, and in this discussion discovered that the wife lived across the street from her husband as a teen. Cloud knew she was off to a good start as her husband reminisced with the buyers about the past. Shortly after, Cloud found the buyers what is now their Texas home and considers the buyers to be close friends.

SOUTH

MIDWEST Welcome to the tranquil beauty of the

BLACK HILLS of SOUTH DAKOTA Proud home of

ELLSWORTH AIR FORCE BASE

RAPID CITY, SD

Duane Hosek, CRS

Honest-Skilled-Motivated-Full Time

605-391-8424

duanehosek@gmail.com www.duanehosek.com

SOUTH

SOUTH

SOUTH

WEST

ABR, CRS, SRES, GRI, CDPE

Serving Northern Virginia and the Dulles Tech corridor Re/Max Premier offices in

Ashburn, Fairfax and Leesburg

Direct: 703-999-6535 Office: 571-210-SELL

lisacromwell@remax.net www.LisaCromwell.com

SOUTH

Kent Redding BROKeR, gRi, CRs, ABR

the Kent Redding group Berkshire Hathaway texas Realty

512.306.1001

GARY LANHAM GROUP

FORT LAUDERDALE, FL

Leading the Way in South Florida Real Estate

Austin, texAs Kent@CallKent.com www.CallKent.com

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The Residential Specialist trsmag.com

Selling Lake Tahoe, NV for 25 years.

Gary Lanham Group Leader Associate Broker CRS, CIPS, ABR, ePRO o 954.545.5550 c 954.695.6518 gary@garylanhamgroup.com www.garylanhamgroup.com

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Craig Zager I Love Referrals!

Sell phone: 775.901.4663 craig@CraigZager.com

www.LakeTahoeAgent.com

WEST

WEST

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

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

Reach more than 30,000 CRS peers with your ad here. Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127

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 www.crs.com.

CRS 120 — Mastering Positive Change in Today’s World

CRS 121 — Win-Win Negotiation Techniques

APRIL 7 — MEDFORD, ORE. Oregon CRS Chapter

APRIL 9 — BEND, ORE. Oregon CRS Chapter

APRIL 8 — MAUMEE, OHIO Ohio CRS Chapter

360.901.0307

503.877.2832

614.402.1158

Instructor: Mike Selvaggio, CRS

Instructor: Mike Selvaggio, CRS

Instructor: Rich Sands, CRS

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CRS

connect

CRS

APRIL 22–23 — CHARLOTTE, NC. Charlotte Regional REALTOR® Association

CLASSROOM COURSES

expand your network

CRS 202 — Effective Buyer Sales Strategies

704.372.2984

APRIL 22–23 — STATEN ISLAND, N.Y. New York State Association of REALTORS®

Instructor: Mark Given, CRS MAY 21–22 — NASSAU, BA. Bahamas Real Estate Association

APRIL 10 — PORTLAND, ORE. Oregon CRS Chapter

800.239.4432

Instructor: Gee Dunsten, CRS

242.356.4578

AUG. 13–14 — COLORADO SPRINGS, COLO. Pikes Peak Association of REALTORS®

Instructor: Chandra Hall, CRS

503.877.2832

Instructor: Mike Selvaggio, CRS

CRS 201 — Listing Strategies

CRS 200 — Business Planning and Marketing APRIL 14–15 — FORT LAUDERDALE, FLA. Greater Fort Lauderdale REALTORS® 954.563.7261

719.633.7718

Instructor: Rich Sands, CRS

APRIL 9–10 — ELYRIA, OHIO Ohio CRS Chapter

CRS 206

614.402.1158

APRIL 1–2 — HONOLULU Hawaii Aloha Chapter of CRS

Instructor: Rich Sands, CRS APRIL 27–28 — LANCASTER, PA. Lancaster County Association of REALTORS®

Instructor: Edward Hatch, CRS

808.733.7060 x0

Instructor: Robert Morris, CRS

717.569.4625

Instructor: Jackie Leavenworth, CRS

NORTHEAST Your referral source for the greater

Pittsburgh

MAY 11–12 — NASHVILLE, TENN. Greater Nashville Association of REALTORS®, Tennessee CRS Chapter

APRIL 20–21 — MEMPHIS, TENN. Memphis Area Association of REALTORS®

615.254.7516

901.685.2100

MAY 27–28 — LAS VEGAS Southern Nevada CRS Chapter

AUG. 19–20 — HONOLULU Hawaii Aloha CRS Chapter

702.610.5012

808.733.7060 x0

Instructor: Jackie Leavenworth, CRS

area

I help clients make the Wright move

Instructor: Jackie Leavenworth, CRS

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

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

Bill.Kuhlman@iCloud.com

781-883-5554

BostonAreaHomesOnline.com The Residential Specialist trsmag.com

Instructor: Mark Given, CRS

CANADA

NORTHEAST

Bill Kuhlman

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Instructor: Edward Hatch, 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.

NORTHEAST

Mar Apr

CRS 210 — Building an Exceptional Customer Service Referral Business

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www.dianecap.com RE/MAX Achievers diane@dianecap.com

617-323-3670 office 617-823-9989 cell

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

E-mail: lenard@hallmarklindrealty.com

ATTN: DESIGNEES EXPAND YOUR REFERRAL OPPORTUNITIES

PLACE YOUR ONLINE DIRECTORY ORDER TODAY! Purchase additional city listings and banner ads to increase your exposure in the number one place where CRS Designees find their referrals — the FIND A CRS Directory at CRS.com.

ADDITIONAL CITY LISTINGS – $25

5 NEW banner templates just added

BANNER ADS – $250 Be a featured agent for a specific city search with a banner ad that links to your website.

Create and upload your own banner for $250 or choose from a number of pre-designed ads for an additional $50.

.

.

As a CRS Designee, you get one complimentary listing in your office city, but you can dramatically increase your odds of being found in the online directory by ordering additional city listings for $25 each.

SECURE YOUR SPACE NOW! Log into your CRS account at crs.com and select the link in the right sidebar that reads, “Place Your Online Directory Order Today.”

For questions, call Customer Service at 800.462.8841 or email us at crshelp@crs.com.

.

All online directory listings and banner ads will run for one year from the date they are posted.

If more than one designee purchases a banner ad in the same city, the ads will rotate, so each designee receives equal exposure.

You will receive a reminder email when your additional city listing or banner ad is ready for renewal.

.

.

.

SHARE YOUR EXPERTISE

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.

[resources]

reach out to the experts who made this issue happen

PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS

EDIT

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.

Fifty Shades of Green Deb Greene, CRS Coldwell Banker Burnet

deb@debgreene.com

Brenda Nunes Keller Williams Realty

nunes_brenda@yahoo.com

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

Welcome to the Small House

The Client is Right

bettydkerr@gmail.com

judy@evergreenrealty.com

Betty Kerr, CRS Keller Williams Realty

Judith Reynolds, CRS Evergreen Realty

Ed Riley, CRS Vail REO Realty Group

Darlene Sheets, CRS Future Home Realty

Bob Leonard, CRS, ABR RE/MAX Associates

Kathy Magliochetti, CRS Calcagni Real Estate

eddriley@comcast.net

bobleonardtx@gmail.com

darlene@westFlaHomes.com

kathy_magliochetti@Calcagni.com

Defense Policy

Dale Carlton, Jr., J.D., ABRM, CRS CRS president

dale@CarltonRealtyInc.com

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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 M A R /A P R 2 015

Tips and tre nd s for homeow ners, buyers and sellers

Steel entry door replacement: recoups



Remodeling and replacement projects can add value to your home, but some projects recoup their costs better than others. According to Remodeling Magazine’s 2015 Remodeling Cost vs. Value Report, small and exterior projects return the most value for your money.

The project that offered the best value overall was a steel entry door replacement, which recouped 101.8 percent of its costs when the home was sold. The steel entry door is consistently the least expensive project named in the report, costing about $1,200 on average. The second best value is the addition of a manufactured stone veneer, which can recoup 92.2 percent of its original cost, but be prepared to invest at least $7,000 for the improvement.

Replacing a garage door can return 82.5 percent for an upscale project and 88.5 percent for a midrange project.

Replacing your home’s siding with fiber cement will return 84.3 percent of the costs, while replacing vinyl siding recoups 80.7 percent. Adding a wood deck will return 80.5 percent and replacing wood windows earns 78.8 percent.

PICTURE THIS

According to the National Association of REALTORS®, 92 percent of homebuyers use the Internet in their home search process. When marketing your home online, professional-quality photos can help prospective buyers see your home in the best possible light. Here are a few tips from Quicken Loans and AOL.com to make your photos stand out.

t value es

101.8%

Replacing your home’s siding can return up to Adding a wood deck will see a return of

!

investment

70 %

79.3%

B

RETURN ON

A bathroom remodel returns

A minor kitchen remodel recoups

84.3%

80.5%

Replacing a garage door can return up to

88.5%

The addition of stone veneer can recoup

92.2%

A minor kitchen remodel is a strong bet to add value to your home. An investment of $19,226 can return 79.3 percent of its costs. A major kitchen remodel recoups 67.8 percent and a bathroom remodel returns 70 percent.

To find out which home improvement projects bring the most value, talk to a CRS REALTOR® who knows the local market, housing inventory, and what buyers want in a home.

Before taking any photos, tidy up the rooms to avoid clutter in your pictures. Make the beds, remove all visible clothing and personal items, and shut the closet doors.

While you want to include as much of the room as possible in your photos, avoid using wide-angle lenses, which can make rooms appear distorted and larger than they really are. If it’s too difficult to include the whole room in a single shot, try shooting from one corner of the room facing the entry.

When taking exterior photos, make sure the sun is behind you and shoot exterior photos in the morning or early evening.

Most importantly, show off the house, not what’s in it. Focus on the architectural details, like the bay windows, the ornate wood mantle above a wood-burning fireplace or the spacious backyard.

Taking extra time to create quality photos of your home can make a positive impression and encourage prospective buyers to see it in person.

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

home designs FOR BUSY FAMILIES



With their calendars crammed with things to do and places to go, today’s busy families want to spend as little time as possible handling mundane household chores. To help families stay organized, newer homes are being built with customized floor plans to allow for more flexibility and better use of space. Here are a few examples of these home design trends.

Mudrooms

While mudrooms have been around for at least a decade, they have evolved into a larger, more centralized area for each member of the family, complete with individual cubbies for books and backpacks, drawers for hats and gloves, and a bench for removing wet shoes and boots.

OV

E REFER RA LS!

IL

SAY YES TO CRS EQUAL HOUSING

Most mudrooms are 6 feet by 8 feet, although some can be as large as 8 feet by 12 feet, and some include USB outlets, walk-in closets and windows with natural light. These rooms once shared space with washers and dryers, but laundry machines have moved closer to the bedrooms where most dirty laundry collects, builders say.

Study/Computer Stations

Parents want to keep a close eye on their kids as they do their homework, but where that study space is located differs among households. In many homes, kitchen islands double as a study area as well as an area for cooking and eating.

Other homes are built with study nooks on the upper floor, a separate study in the lower level or a pocket office located off the kitchen.

Self-Serve Kitchens

Newer homes are designed with the kitchen or pantry set up so family members can grab their own meals while on the go. These self-serve areas are located away from the main food prep area and are equipped with a mini refrigerator or refrigerator drawer to hold fruit and snacks, and a microwave at child-sized height for easy access.

Home design features like these can help today’s families stay organized as they go through their busy lives.

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

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ATTENTION CRS DESIGNEES! RAISE YOUR PROFILE IN THE CRS NETWORK WITH A FEATURE IN

CRS CONNECT

More exposure = more relationships = more referrals!

To gain maximum exposure to our successful community of CRSs, take advantage of our newest marketing outlet—the CRS of the Week feature in our weekly e-newsletter, the CRS Connect.

With a circulation of over 45,000 real estate agents and industry leaders, a prominent feature in the CRS Connect e-newsletter can significantly raise awareness of you and your business within the CRS community—which could result in profitable referrals and relationships down the road.

CHOOSE FROM 2 PACKAGES AND SELECT THE BEST FIT FOR YOU.

• A prominent feature in one issue of the CRS Connect that includes your name, picture, business, location, contact Information, and link to your website, along with 200-300 words of additional content/information of your choice • A written interview with you published on crs.com, along with a brief bio, picture and contact information • Inclusion in a rotation of the “Meet a CRS” section of the crs.com website • A banner on the crs.com home page linking to your interview and profile

Cost $500

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FEATURED CRS OF THE WEEK PACKAGE

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Your Name, CRS

Link to Company Website Location

Your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio, your bio.

Description of your business, description of your business, description of your business, description of your business, description of your business, description of your business.

Your business philosophy, or reasons that you got designated and refer to other CRSs. Your business philosophy, or reasons that you got designated and refer to other CRSs.

Cost $150

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Your Name, CRS

Link to Company Website Location

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• Your picture, name, business, location and link to website listed in the “Get to Know a CRS Designee” section (along with 2 or more other Designees) in one issue of the CRS Connect • Inclusion in the rotation of the “Meet a CRS” section of the crs.com website

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GET TO KNOW A CRS DESIGNEE PACKAGE

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Find out more and reserve your spot at crs.com/FeaturedCRS

ask a

CRS advice from your peers

Q:

CUSTOMER SERVICE

What’s a difficult but important topic to discuss with sellers?

“ The one lesson I have learned this year is to put everything into writing. We can have discussions and agreements with the sellers, but when they hand over the keys and the issues they promised they would take care of aren’t done, this will ultimately affect the sale of the home.”

Gay E. Rosen, CRS  Julia B. Fee Sotheby’s International Realty  Larchmont, NY  gay.rosen@juliabfee.com

“ I inform my sellers at my listing appointment that when they hire me as their listing agent, I will be brutally honest with them and go through their home to inform them what needs to be done or corrected before I will put it in the MLS. Yes, I can even tell them that the home smells, if need be … 99 percent of them do appreciate your honesty.”

Donna Hazlewood, CRS  Realty Masters of Florida  Pensacola, FL  donna@donnahazlewood.com

“ When dealing with a seller, it is always best to be honest about a dirty property.

Making sure windows are clean, things are put away and that the home is nice and tidy are important. I showed several properties today and [my clients chose] one that was priced right and very clean and smelled good.”

Barbara Powell, CRS  Coldwell Banker Chicora & Estate Sales  Myrtle Beach, SC  myrtlebeachrocks@msn.com

Participate in active discussions like this at the Council of Residential Specialists’ LinkedIn page at goo.gl/XwaM8d.

Mar Apr

48

The Residential Specialist trsmag.com

20 15

2015

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