The Residential Specialist, July/August 2015 by The Residential Specialist

residential

july + aug

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

The market for second homes Navigating home inspections Maintain your work/life balance

Working with rental clients Tips for memorable marketing How to handle a difficult client

CRS

SUPER

PRODUCERS Learn their tips and secrets to make your business a high-flying success

REPUTATION AND

RELIABILITY

You built and keep your reputation by providing the very best service to your clients. For Pillar To Post Home Inspectors it is exactly the same. You can rely on us to exceed your expectations on every inspection, for every client, every time.

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

July 20 Aug 15 vol. 14, no. 4

HOW’S THE AIR UP THERE?

What does it take to be a consistent, high-performing REALTOR® in today’s market? Several CRSs share their secrets for achieving super success. By Regina Ludes

features

INSIDE JOB

How to help buyers and sellers navigate the home inspection process. By Gwen Moran

SECOND PLACE

A national and local look at how the vacation- and secondhome market is faring.

TAMING THE BEAST

Striking a work/life balance that’s right for you improves relationships, health and overall happiness. By Donna Shryer

By Gayle Bennett

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The Council of Residential Specialists

crs.com

July Aug

contents

July 20 Aug 15 vol. 14, no. 4

departments

4 VANTAGE POINT

By Dale Carlton, CRS

5 SHORT LIST

Homeowners who lost homes in foreclosure are re-entering the market, and is buying more affordable than renting?

9 COOL STUFF

This collection of tech products can help ease common travel woes for vacationers.

10 SMART SOLUTIONS

If renting and city living are the new black, how can REALTORS® respond? By James Cappio

12 INSIDE TRACK

Unusual and creative marketing tactics can set you apart from the competition. By Daniel Rome Levine

14 WINDOW OF OPPORTUNITY

New member benefit alert! CRS launches a new Designee-only referral resource.

16 PEER TO PEER

Daniel Silvestre Garcia, CRS, of RE/MAX North, San Antonio, Texas

34 WORK + LIFE

Hammer Head: The Making of a Carpenter by Nina MacLaughlin Reviewed by Allan Fallow

Foliage Forays Plan a fall trip so you reach your destination exactly when the leaves change color.

inside CRS 37 NEWS FROM THE COUNCIL

Register for Sell-a-bration® 2016 by Aug. 31 to get the early-bird rate, and check out the webinar topics for CRS Week, Aug. 24–28, 2015.

40 LEARN FROM THE BEST

A CRS Instructor explains how to educate buyers on the importance of submitting a competitive offer.

41 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.

CRS MIDYEAR MEETINGS

WORK WITH THE BEST, JOIN CRS

Check out photos from this year’s CRS Midyear Meetings held May 12–14 in Washington.

The Hawaii chapter of CRS presents CRS members explaining the value of a CRS Designation.

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

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 Margie Medlin, CRS Thai-Hung Nguyen, CRS Sandra Nickel, CRS Vivian Pike, CRS Debbie Solano, CRS Paul Wilson, CRS Arleen Yobs, CRS STAFF WRITER Charlee Gibson CONTRIBUTING WRITERS Gayle Bennett James Cappio Daniel Rome Levine Regina Ludes Gwen Moran Donna Shryer 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

Working with real estate investors What’s the state of the investment market and where are the best U.S. locations to invest in real estate? Read about which markets for foreign investment in the states are hot, and which countries have the most investors in the U.S. market. The power of online reviews How important are online consumer reviews? Learn how to cultivate positive reviews and respond to negative ones, and what steps you need to take to monitor and manage your online reputation. Disaster recovery Many CRSs have helped clients and served the community following a natural disaster. Read personal accounts about how CRSs worked with homeowners to find both temporary and permanent residences.

PLUS:

Which of the many social media tools are proving effective to grow your business? Learn about the latest and greatest tools to use to connect with prospects and fellow agents.

Would you like to be a source for a future story in The Residential Specialist? Send an email to cgibson@crs.com

to be added to our potential source list. To see a list of the topics we’ll be covering, check out the magazine’s 2015 editorial calendar online at crs.com.

WHO ON YOUR

TEAM could benefit by receiving a personal copy of The Residential Specialist?

STAY INFORMED The Council of Residential Specialists provides superior education, exceptional networking opportunities and critical resources. The Council’s flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business. To subscribe for yourself or a colleague, call 800.462.8841. Note: Members of the Council of Residential Specialists receive the magazine as part of their member benefits.

MEMBER BENEFITS

[vantage point]

from the desk of Dale Carlton, CRS, 2015 president

abound Ø

Photo: Adam Murphy

There’s never been a better time to be a member of CRS! The Council provides high-quality and timely education, networking and referral opportunities that are invaluable to our members. And we continue to look for more ways to provide real value for our members, such as the recently announced new CRS consumer-direct referral program powered by ReferralExchange. This exclusive CRS-branded referral service will complement our existing “Find a CRS” online and mobile agent-to-agent referral application. (Read more details about this valuable new member benefit on page 14.) In addition to the new consumer-direct referral service, the Council is enhancing the Find a CRS Referral Directory to make getting referrals easier than ever. CRS Members can use both of these new member benefits this summer. Your CRS membership package delivers real value for your annual dues — more than $1,000 worth of tangible benefits, including discounts on education, free members-only webinars, a complimentary subscription to Inman Select (a $199 value) and the award-winning magazine, The Residential Specialist. The Council’s benefits will continue to expand in the coming years. The new CRS membership structure, which was introduced to members via email on April 27, will position the Council for even greater success. And members will now have an even larger group of professionals to share referrals with, network with and learn from. Council leadership is working hard to deliver more membership value that directly improves your bottom line and grows your business. We recognize that the Council is only as great as those who are a part of it. We thank and appreciate every one of our members.

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YOUR CRS MEMBERSHIP PACKAGE DELIVERS REAL VALUE FOR YOUR ANNUAL DUES — MORE THAN $1,000 WORTH OF TANGIBLE BENEFITS.

[short list]

+ industry headlines + statistics + trends

EVERYBODY— back in the pool!

Former homeowners who lost their homes to foreclosure are beginning to re-enter the housing market, according to recent research from the National Association of REALTORS® (NAR). But they face challenges to overcome their damaged credit, which will affect their ability to qualify for a mortgage. The study finds that of the 9.3 million homeowners who underwent a foreclosure or short sale between 2006 and 2014, nearly 1 million have likely already purchased a home again, while 1.5 million more are likely to do so within the next five years. California, Florida and Arizona — states that were all hit hard by the foreclosure crisis — are expected to see the largest share of return buyers within the next decade. But because of their compromised credit, millions more potential buyers will be left out. NAR Chief Economist Lawrence Yun attributes the wave of foreclosures during the housing crash to loose lending

Of the

9.3 million homeowners who underwent a foreclosure or short sale between 2006 and 2014…

standards, falling home prices and rising unemployment. “Now fueled by a gradually improving economy and the strong rebound in home prices, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years,” he says. “The deep wounds inflicted on the housing market during the downturn are finally beginning to heal as distressed sales continue to decline and home prices in some parts of the country have bounced back to their near-peak levels,” adds Yun. “Borrowers with restored credit will likely have the ability and desire to own again, encouraged by the long-term benefits homeownership provides in a stronger economy and more stable job market.”

…nearly

1 million have likely already purchased a home again

July Aug

Guard rails must be affixed to decks that are raised 24 to 30 inches above ground. The guard rails themselves should be 36 to 42 inches tall. [short list]

A guard rail should not be climbable.

Wood stains and sealers prevent water damage and rot. This keeps the wood from warping and splitting.

+ industry headlines + statistics + trends

Any good deck should be as strong as the floor of the house (this is typically 40 pounds per square foot, depending on the code in your area).

Synthetic deck materials such as recycled plastic or recovered wood fiber are maintenance-free and good for the environment.

Keep in mind that higher decks need thicker posts.

deck TALES Ø

Many homebuyers look for homes that feature an outdoor deck, but there are a number of things REALTORS® should know

July Aug

Premium treated decking costs about 50 percent more than traditional wood, but it has a much longer life cycle — approximately 20 years.

The Residential Specialist trsmag.com

Ensure the deck has proper footings (where the weight of the deck bears down onto the soil) and that it’s evenly spread to prevent sinking.

so they can give their clients sound advice. Here are some things to look for to ensure that a deck is safe, from Pillar To Post Home Inspectors.

For more information, please visit www.pillartopost.com or contact crssupport@ pillartopost.com.

THE LIFE AQUATIC

Markets with the largest percentage of seriously underwater properties in Q1 2015

Lakeland, Florida

28.7 %

There were 7,341,922 U.S. residential properties seriously underwater — where the combined loan amount secured by the property is at least 25 percent higher than the property’s estimated market value — at the end of the first quarter of 2015, according to the RealtyTrac U.S. Home

Las Vegas

28.4%

Cleveland, Ohio

28.2 %

Akron, Ohio

27.2 %

Orlando, Florida

26.1 %

Tampa, Florida

25.0 %

Chicago

24.7 %

Palm Bay, Florida

24.5 %

Jacksonville, Florida

24.3 %

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Equity and Underwater Report. This represents 13.2 percent of all properties with a mortgage. The share of seriously underwater homeowners edged up 0.4 percentage points from Q4 2014 — the first quarterly increase since the second quarter of 2012 — but is still 4 percent lower than a year ago.

rental CONDITION Ø

The monthly house payment on a median-priced, three-bedroom home is more affordable than the monthly rent payment for a fairmarket-priced home, according to a recent study by RealtyTrac. There were 351 counties out of the 461 analyzed (76 percent) where house payments on a median-priced home in the first quarter of 2015 were lower than fair-market rents on three-bedroom homes. Among those 351 counties, 56 saw home prices rise at least 7 percent compared to a year ago in the first quarter, and wages rose at least 3 percent annually. These additional factors make owning a home more attractive than renting for many U.S. residents. Of the 56 best-performing counties, the most affordable areas for buying were Bay County, Michigan, (11 percent of median income to make house payments on a median priced-home); Fayette County, Pennsylvania, (11 percent); Beaver County, Pennsylvania, (14 percent); Tazewell County, Illinois, (14 percent); and Butler County, Ohio, (14 percent). Daren Blomquist, a vice president at RealtyTrac, says that renters who are able to make at least a 10 percent down payment are better off buying than renting in the majority of markets across the country. But “factors other than affordability are keeping many renters from becoming buyers, a reality that means real estate investors buying residential properties as rentals still have the opportunity to make strong returns in many markets,” he says. “Also, keep in mind that in some markets buying may be more affordable than renting, but that doesn’t mean buying is truly affordable by traditional standards. In those markets, renters are stuck between a rock and a hard place when it comes to deciding whether to buy or continue renting.”

HIGH RISING

Home prices increased in 85 percent of the U.S. markets tracked by the National Association of REALTORS® in the first quarter of 2015, and the metro areas that experienced double-digit appreciation doubled compared to the prior quarter. The median existing single-family home price rose year-over-year in 148 out of 174 metropolitan areas tracked, while 25 areas (14 percent) recorded lower median prices from a year earlier. NAR attributes the price gains to stronger demand amidst lagging inventory levels. The national median existing single-family home price in the first quarter was $205,200, up 7.4 percent from the first quarter of 2014 ($191,100). This is an ongoing trend: the median price during the fourth quarter of 2014 had increased 6.0 percent from a year earlier. Still, total existing-home sales declined 1.8 percent in the first quarter to a seasonally adjusted annual rate of 4.97 million from 5.06 million in the fourth quarter of 2014. But the sales rate was 6.2 percent higher than in the first quarter of 2014. NAR chief economist Lawrence Yun says, “Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market. However, stronger demand without an increased supply led to faster price growth in many markets.”

Best-performing markets for rental returns:

1. Baltimore, Maryland

24.82 % 2. Clayton, Georgia (24.26 %) 3. Wayne, Michigan (21.08 %) 4. Pasco, Florida. (19.20 %)

Worst-performing markets for rental returns 1. New York County, New York (2.34 %) 2. San Francisco County (3.20%) 3. Kings County, New York (3.63 %) 4. Williamson County, Tennessee (3.84 %)

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[short list]

+ industry headlines + statistics + trends

WAGE Ø

On a national basis, median wages rose 1.3 percent between the second quarter of 2012 and the second quarter of 2014.

pressure

Home price appreciation outpaced wage growth in the U.S. by a ratio of 13 to 1 from 2012–2014, according to a RealtyTrac study. Home prices grew faster than wages in 76 percent of U.S. housing markets, the study finds. After home prices hit bottom in 2012, prices have recovered relatively quickly, especially in markets that are attractive to investors, says Daren Blomquist, vice president at RealtyTrac. “Eventually, however … traditional buyers will need to play a bigger role in the housing market for the recovery to maintain its momentum.” “Those markets with the biggest disconnect between price growth and wage growth during the last two years are most likely to see plateauing home prices in 2015 until wages catch up,” Blomquist says. “Meanwhile, markets where wage growth has outpaced homeprice appreciation during the last two years are poised to see at least steady growth in home

PORTAL COMBAT

prices in 2015 in most cases.” Renters aren’t faring much better. New research from NAR finds there is a growing gap between rental property costs and household income in many parts of the country. The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, California, (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent). “In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent,” says NAR Chief Economist Lawrence Yun. “The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay.” What’s more, the share of renter households has been increasing and the homeownership rate is falling. The result, NAR concludes, has been an unequal distribution of wealth as renters continue to feel the pinch of rising housing costs every year. Yun says an increase in construction of entrylevel homes would help take some of the pressure off increasingly cash-strapped renters and encourage them to buy a home rather than rent one.

But home prices increased 17 percent in the two years ending in December 2014.

A recent study by real estate media and research firm Inman finds that 88 percent of brokers and agents surveyed say they syndicate their listings to one or more portals, such as Zillow, Trulia or Realtor.com. The goal for agents, the report concludes, is simple: to help them satisfy sellers and generate leads. Of the major listing portals, Realtor.com is far and away the most popular with REALTORS®: 92 percent of agents post their listings there. Zillow follows, with 72 percent, then Trulia, at 70 percent and Homes.com at 58 percent. July Aug

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TRAVELING tech

[cool stuff]

It’s hard to complain if you’re on vacation this summer, but if you did find something to gripe about, it would probably be the lack of amenities you’re used to having at home. From a phone battery that is out of juice due to lack of access to an outlet to not having a way to play music in your rental or hotel, the small inconveniences can be annoying. But the tech industry has been working hard to alleviate some of these common travel woes.

acquisitions on a theme

BEYOND THE SURFACE

If you want to work while you’re traveling, check out Microsoft’s new Surface 3 tablet. On the heels of last year’s Surface Pro 3, the Surface 3 is a less expensive tablet that still offers much of the same functionality and design as its big brother. It runs the full version of Windows 8, so you can use Microsoft’s tablet-centric interface $ 499.00 as well as a traditional Windows interface (it will run Windows 10 when it’s released this year). The Surface 3’s case (sold separately) also functions as a keyboard. microsoft.com

CHARGE AT LARGE

MAP MASTER

If you travel often, you should install Google Maps on your phone. Not only is the app great for checking traffic on your commute, but it also has powerful functionality for travelers. For example, perhaps you like to plan your days so you can hit a museum, park and restaurant Free without walking or taking public transit. Google Maps now automatically syncs your planned routes and saved favorite locations from your computer to your phone, so you can plan the perfect day on your desktop and access it right away on your phone once you’ve reached your destination. For people who would rather hop on public transit, Google also recently added a real-time public transit update feature, which can tell you if the bus or train you’re waiting for has been delayed. google.com/maps/about

MOBILE MUSIC

FLYING PRIVATE

While you can find mobile charging and battery options almost everywhere you look, the Goal Zero Flip 10 charger is somewhat unique due to its size. Weighing less than 3 oz. and measuring about 3.5 inches in length, the Flip 10 is one of the smallest portable chargers on the market: It is about the size of a stick of gum and will fit easily into your pocket or purse. The Flip 10 holds a 2600mAh charge, which is enough to fully recharge a phone or other small device. And if you want to rough it, the Flip 10 is compatible with Goal Zero’s portable solar panels, so you can recharge it without $ access to electricity. 29.99

Music is almost always a good addition to your vacation, and speaker makers like Ultimate Ears (UE) have recognized that people want to bring their music with them when they’re traveling, or just heading to the park. UE’s Megaboom is $ 299.99 a follow-up to its popular Boom speaker and increases functionality in several ways. The range for its Bluetooth signal is longer, the sound is improved and most impressively, the unit is waterproof. The Megaboom can be fully submerged in water for several minutes and come out still working, making it ideal for beach or pool settings. UE also offers a free app for the Megaboom, giving you remote-control functionality as well as the ability to pair it with other UE speakers.

Working on or reviewing sensitive client material can be a gamble when you’re flying or otherwise taking public transportation. You never know if the person in the seat next to you is peeking at information that should be kept confidential. If you find yourself in this situation, or if you just don’t like the idea of your seatmate peering over your shoulder to watch the latest Game of Thrones episode with you, the Privacy Screen Slim Case from Solo is your answer. This iPad case $ 69.99 (currently available only for iPad Air) includes a screen cover that darkens your screen when viewed from the side, blocking the view for anyone but you.

goalzero.com

ultimateears.com

solo.net

GPS & MORE

GPS systems are so ubiquitous now, it’s hard to imagine someone pulling out a map when they’re on the road. Garmin recognizes this, and with its newest GPS device, the Garmin NuviCam LMTHD, the company has added features to bring GPS to the cutting edge of technology. The main new feature of the NuviCam is its built-in dashboard camera, which allows you to record video of what’s happening in front of you while you’re driving. However, the device also uses its camera to provide augmented reality views of your destination as you approach. The display screen will actually convert from traditional GPS to the camera as you get near your destination, and will put arrow markers over the video to tell you exactly where you’re headed. This can help you figure out where you’re going, especially if you’re vacationing in an unfamiliar location.

399.99

garmin.com

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[smart

solutions]

streamlining your business through technology

RISE OF THE

renters

If renting and city living are the new black, how can REALTORS® respond? By James Cappio

You’ve seen them: story after story throughout the media, from The Atlantic to CNBC, from Forbes to NPR, about how the U.S. is seeing a move away from homeownership and toward rentals — in tandem with a move away from suburbs toward cities. But is this change really happening? Does it represent a permanent shift in attitude? And what do REALTORS® have to do to serve the special needs of this growing market segment?

Sobering Statistics

A wide variety of studies are a testament to this shift: ÄThe Ä Joint Center for Housing Studies at Harvard reports that “The renter share of all U.S. households climbed to 35 percent in 2012, bringing the total number to 43 million by early 2013.” ÄÄFreddie Mac reports that 2014 saw starts on 341,000 units with more than five apartments, the fastest pace in 25 years. ÄÄCensus data for the fourth quarter of 2014 show an apartment vacancy rate of 7.0 percent; the National Association of Home Builders says this is the lowest vacancy rate since the end of 1993. ÄAt Ä the same time, according to Freddie Mac, rents increased an average of 3.6 percent in 2014 and “nearly 11 percent over the last three years.” According to the research firm Reis, Inc., the average monthly rent in the U.S. is $1,124.38.

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ÄÄPerhaps surprisingly, the Harvard study found that the increase in rentals between 2004 and 2013 applies to every five-year age group except people aged 75 and over, although the so-called millennials are especially hard hit; Census data show that the homeownership rate for Americans 35 and under is a record low 36.2 percent. ÄÄCensus data for 2013 show that net migration is actually still from the cities to suburbs (3.78 million to the suburbs, 2.89 million to the cities; for ages 20–29, the numbers are 1.04 million and 797,000). However, Reis, Inc.’s survey of large cities disclosed a record-low 4.1 percent vacancy rate as of the second quarter of 2014, affirming that the market in the biggest, most desirable cities, such as New York (1.64 percent vacancy rate in Manhattan in July 2014), Los Angeles (3.3 percent), Chicago (3.5 percent), and San Francisco (2.9 percent), paints quite a different picture.

REALTORS® and Renters

Top REALTORS® in the hottest rental markets see these trends firsthand, and they understand the reasons for the shift. Laura Shifrin, CRS, of Townsend Center Realty in Townsend, Massachusetts, observes that “there have been so many foreclosures in the last 10 years. I have more rental applications now than I have available units.” Jim Kinney, CRS, CRB of Baird & Warner in Chicago, notes the preponderance of young people making up that demand. “Every time I bid on an apartment, I’ve been up against at least a dozen millennials.” James Chen, CRS, of 13 East Realty, Inc.,

in Los Angeles, points out that his there has been a backlash against numerous millennial clients “rent this idea. A January 2015 survey by because they can’t afford to buy.” the NAHB found that 68 percent Kinney agrees that millennials of millennials would prefer to live want to be in the city: “Many of them in the suburbs, as opposed to only don’t even have cars.” He adds that A Joint Center for Housing Studies at Harvard report notes, 10 percent in the cities. The appearstudent debt and the unfavorable job “The rapid expansion of production has raised alarms about ance to the contrary is a function of market for young people are holding potential overbuilding,” especially if the millennials do move age, finances and marital status. them back from buying. “Proof-ofback out to the suburbs once they can afford it. However, Kinney agrees. He feels that many income qualifications in the major REALTORS® on the ground see little cause for concern. Jim millennials have been scared out of markets are strict. That’s helping the Kinney, CRS, observes that the boom in rental construction has the market because they don’t want rental market explode.” meant a bust in construction on the sales side — in Chicago, to be trapped with all their equity REALTORS® who work with renters any sales building project marketed since 2008 was actually in an asset they view as unstable, use various means to help. Kinney initiated before the 2008 recession — so that if rentals were but will come back when they start refers rental clients to a partner to be overbuilt, the market could simply make up for that families. They want a house in the agency that specializes in rentals. decade of missing product through conversion to condos. suburbs as much as boomers. With Shifrin lists vacancies in the specific the job market improving, housecomplexes she represents on Realtor. hold formation rising, and Fannie com. Chen has investigated innovative solutions for his rental Mae, Freddie Mac and the Federal For more clients, such as micro-lot subdivisions of 500 to 600 square feet. Housing Administration offering information, more affordable mortgages, we may visit www. realtor.org/ Revenge of the Burbs? find out how permanent the shift is field-guides/ Chen thinks there has been a generational shift: “Young people within the next few years. field-guidewant to be able to walk, cycle or take public transit to work, and to-buying-vsrenting. to enjoy the amenities of a vibrant downtown.” Recently, though, James Cappio is a freelance writer based in Toronto.

IF YOU OVERBUILD IT, WILL THEY KEEP COMING?

GADGET INSPECTOR

THE APPLE WATCH TEXTS AND TELLS TIME

Apple recently released its newest iDevice, the Apple Watch, which looks similar to a standard watch but does much more than just tell you the time or date. The Apple Watch runs a brand new carousel-based operating system, which reduces app icons to small representative circles. The Watch must be paired with an iPhone to get the most use out of its features, but once the watch and phone are connected, a user can perform many tasks from the watch without reaching for his or her iPhone. With the Apple Watch, users can make calls, read texts and emails as well as send them — which can be done through dictation — track their heart rates and other fitness data, browse websites and more. The timepiece is available in three styles and many different watchband styles are also available for purchase. For more information, visit apple.com/watch. Starts at $349.

THE ZOLT LAPTOP CHARGER PLUS IS A MORE ELEGANT POWER SOLUTION Zolt’s Laptop Charger Plus looks to replace the brick most laptops use for power with a much smaller portable device. According to Zolt, their charger is four times smaller and three times lighter than the average laptop charger. It plugs directly into a wall socket and features three USB slots for charging (so you can charge your phone or tablet in addition to your laptop). Sporting a sleek metallic finish and For more inforoctagonal shape, the 3-inch long, 1.3-inch diameter charger is mation, visit very stylish. It comes with adapter power cables that Zolt says gozolt.com. $99.99. will work with all major PC brands.

HOOKS APP MAKES SURE YOU STAY ALERT

The Hooks Alerts for Everything app allows you to set alerts on your phone for just about anything. This differs from your phone’s built-in reminders or alerts system because Hooks can create alerts for almost any contingency. Want to be alerted when it’s raining near your office or when a stock reaches a specified price? These alerts are pre-programmed into the Hooks app. In fact, the creator of Hooks claims that if a particular For more information, visit gethooksapp.com. alert that a user would like is not available, they Free in the iTunes store. will build it into the app for free.

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[inside track]

what’s trending in real estate

GET noticed Unusual and creative marketing tactics can set you apart from the competition. Here are some unique steps CRSs are taking to make sure they stand out from the crowd. By Daniel Rome Levine

Take your hat off to CRS Sandra Nickel for coming up with a creative marketing tactic that has her top of mind for people buying and selling homes in Montgomery, Alabama. Nickel is better known around town as the Hat Lady. It’s a moniker she came up with 33 years ago when she was struggling to make her start in real estate. On the verge of giving up after a year full of disappointments, she was knocking on doors introducing herself to strangers on a 9 degree January

day when a man asked her inside and, without warning, placed a brown-tweed fedora on her head to help her keep warm. She wore the hat the rest of that day and winter and was astounded at how many people commented on it. Before long, people were calling her office asking for “the woman in the hat.” Nickel, who worked in marketing and advertising before real estate, knew exactly what to do next. It was all about the hat. “Once I found my gimmick, my shtick, my marketing background kicked in,” she says. She bought a toll-free number, (800) HATLADY, created a hat logo, put her picture (wearing her hat, of course) on her business card, and later, with the advent of the Internet, created a hatteam.com website. She also drives a PT Cruiser wrapped with a vinyl decal displaying three of her hat logos, slogan, company name, Sandra Nickel Hat Team, REALTORS® and phone number. Sandra Nickel, CRS, Montgomery, Alabama, leveraged her background in marketing and advertising to distinguish herself from the competition by becoming known as “the Hat Lady.” Her hat logos and other company branding are prominently displayed on her PT Cruiser.

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Her marketing worked. Just two years after nearly quitting real estate, Nickel was one of Montgomery’s top-five agents. She remains so today, and she closed 125 transactions last year. “You will get absolutely nowhere in sales by blending in,” says Nickel. “Being different is what it’s all about.” Employing unusual marketing tactics can be an effective way to set yourself apart from the competition and establish a unique and enduring brand. “Doing something irreverent or out of the box to get people to notice you and your brand can be very effective,” says Keith Fletcher, founder and president of Fletch Creative, an Atlanta marketing firm specializing in brand identity. “As the famous Apple slogan said, ‘Think Different.’”

Marketing — Santa Style

What better man to get people’s attention than Santa Claus. That’s what Mike Parker, CRS, was thinking when he organized and hosted his first “Family Day with Santa” party 25 years ago featuring Old Saint Nick. Parker, a senior vice president with Huff Realty, in Florence, Kentucky, just outside Cincinnati, still holds the free party at a local golf club every November, just before Thanksgiving. Most years, about 150 families attend.

“ You will get absolutely nowhere in sales by blending in. Being different is what it s all about.” —Sandra Nickel, CRS

Parker’s timing is smart. He knows people love sending out Christmas cards with photos of their children on them, and what better way to help them, and himself, than by having the picture show the kids sitting on Santa’s lap at his holiday party. He even has a professional photographer on hand to snap the shots. In addition to sending people complimentary hard copies of the photos, Parker emails them electronic files of the photos along with a quick question: “Are you thinking of buying or selling a home or getting a CMA (competitive market analysis)?” Parker spends $5,000 on the event and says it results in about $40,000 in business.

Gee Dunsten, a CRS certified instructor and REALTOR® with Long and Foster Real Estate in Ocean City, Maryland, helped produce a seven-minute video for his website last summer promoting the benefits of living in the Ocean City area and introducing potential newcomers to the area. “It cost us $2,500 to make and we are having phenomenal success with it,” he says. “It makes us distinctive and it shows we care about our community. It’s been a real game changer.”

Fishing for Clients

In Morehead City, North Carolina, Linda Rike, CRS, of Linda Rike Real Estate, has also found that linking herself with a popular local event can be an effective marketing tool. Morehead City and the surrounding coastline is a prime destination for fishing enthusiasts, and one of the biggest sport-fishing events in the country, the Big Rock Blue Marlin Tournament, is held there every year. The event draws an international crowd of as many as 5,000 people for a week of fishing and related events. For the last 18 years, Rike has been the tournament’s sole real estate sponsor and it has proven a highly effective way of reeling in new business. “I get calls all the time from people saying, ‘The reason I called you is because you sponsor the Big Rock,’” says Rike. Being a sponsor means her name and logo, a marlin leaping between her first and last name, are featured on the sleeve of the official tournament T-shirt, one of the most popular items sold at the event and on the tournament website. Rike invests between $12,000 and $14,000 a year to be the event’s exclusive real estate sponsor and says it results in at least $60,000 a year in business. “I’m really gung ho about being part of this event,” says Rike, “especially because the organizers give a lot of money to charity and I feel like I’m giving back to the community.”

For more tips, check out the CRS bundle of three eLearning marketing courses. Find them at crs.com/education/courses/ crs-marketing-6-hour-bundle.

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

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NE W mem ben ber ef it

ALE

[window of opportunity]

strategies to grow your business

REFERRAL boost CRS Designees: Get ready for an exclusive new referral source

One of the many benefits of having the CRS Designation is the ability to give and receive referrals. CRS Designees share referrals with each other (and receive them from outside the organization) because they have absolute confidence that their clients will be taken care of as well as they would take care of them themselves. To date, the majority of CRS referrals have come from within the organization as Designees use the “Find a CRS” application, network at key events like Sell-a-bration® and participate in live CRS classes to expand their spheres. Now CRS Designees have another great option to expand their referral opportunities — and it’s offered exclusively through the Council.

Connect the Dots

Start with the largest real estate agent referral network in the United States. Offer a service that uses a combination of technology and whiteglove service. Partner with our top-performing

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network of REALTORS® to match clients with those who best fit their needs. And, voila, you have the new CRS Referral Network. Since our CRS Designees already meet the high standards set by our new partner, ReferralExchange, they can now start receiving consumer-direct referrals in addition to the agent referrals through “Find a CRS” at CRS.com. “ReferralExchange is an excellent partner for CRS — their commitment to providing the highest level of service possible matches ours, and their program will be a terrific complement to ‘Find a CRS’,” says Dale Carlton, president of CRS. “Our agents are always looking for quality lead sources and ReferralExchange has the reputation of providing some of the best referrals in the business.” “We’re thrilled about our affiliation with CRS and looking forward to further growing and enhancing our relationship in the future,” adds Scott Olsen, CEO of ReferralExchange. “Partnering with CRS is great for both our organizations and for the consumers we all serve.”

EXCHANGE FOR THE BETTER While the new program won’t be fully launched until after press time, we couldn’t wait to share details of the program until the next issue of The Residential Specialist. We sat down with Tony Priore, CRS vice president of marketing and communications, to learn more: Describe how the program will be able to call or email anytime for help work for us: and support. CRS agents will sign up to participate directly from the CRS website using their current CRS Why are you excited to partner username and password. They will have the with ReferralExchange? opportunity to select preferred zip codes and ReferralExchange has a great reputation and price points, as well as to upload their own is unique in the marketplace. After getting to marketing materials. know them, we realized that there were a lot When they are “matched” with a client, they of synergies we could gain by working together. will be notified via phone, email and text alerts. This partnership provides more options for CRS agents can then decide whether to consumers — enabling them to find the best accept the referral or not. “agent match” to fit their needs while giving our If selected by the client and a deal closes, superior CRS Designees an enhanced benefit in the agents will be charged a referral fee. driving more qualified prospects directly to them. What support will be provided to CRS Designees? We will be holding training webinars as soon as the program launches, and creating FAQs, collateral and videos. CRS agents will also

+ Client submits request for an agent.

Early Adopters

Is this partner benefit exclusive to CRS Designees? Yes. CRS agents who opt-in to the program will be immediately eligible to receive referrals. No waiting period and no sign-on fees. The referral

✔ Trained reps qualify all leads.

As usual, there are some Designees who beat us to the punch and are already using Referral Exchange. If you happen to be one of them, your account will be rolled up under the new CRS partnership, and any tips or tricks you have to share about maximizing your referral experience will be most welcome. Leigh Brown, first vice president for CRS, has been a longtime agent partner of ReferralExchange. “Like every agent, I try out websites out to see if they’ll do anything positive for my business. ReferralExchange works for me — the company vets them and I don’t pay until

network is invite-only and agents can’t pay to join — so this is truly an opportunity for CRS agents to get a “VIP pass” through the velvet rope. Anything else? ReferralExchange has serviced clients from Alaska to Florida, and everywhere in between. They are thrilled to be supporting the CRS team and we look forward to a long and prosperous partnership with them! The Council is striving to make the referral world bigger for our Designees and create the maximum amount of referral connections possible, while making it smaller as well, so they know exactly who they’re sending referrals to and receiving referrals from. This will assure them that high levels of quality and professionalism are preserved. This new partnership allows the Council to expand the value it provides to all CRS Designees.

¤¤

Qualified leads are distributed to agents.

= You contact the client and close the lead.

it closes. We have had some great buyers and sellers come through them. Of course, direct CRS referrals are our favorites, but some gravy never hurts!” “It is great to have a referral company that screens the buyers and sellers before they even get to you,” says CRS regional vice president Michael Burkhard. “I have no problem paying a referral fee to a referral that closes. These buyers and sellers are ready to make a move, and that adds to your business.”

Don’t forget about peer referrals. Check out the CRS Network section of The Residential Specialist, beginning on page 41 of this issue.

The CRS Referral Network will be available to all Designees by logging in to CRS.com.

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RE/MAX North, San Antonio, Texas

[peer to peer]

profiles of people to watch

Why did you decide to pursue a CRS Designation? I started selling in 2006 and once I was established, I looked up the top producers in my market. I thought to myself, “Everybody’s got 24 hours in a day, how did these people get to be so good? What did they all have in common?” I saw that they all had the CRS Designation after their names, so I knew I wanted that same skill set. I had to hit the ground running to get prepared for the application, but luckily my production numbers were strong enough that I was able to get in the next set of classes. I received the Designation in November 2014.

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How has having “ The best top producers — the CRSs — the designation know that real estate isn t a sales affected the way you do business business, it s about service. It s about now? making that phone call to check in with It has been in the most people so they know you care about them.” positive way, a way I could not have expected. There’s a different culture with CRS Do you network Designees. When I go to with other CRS seminars, we share ideas members or other about what works and what REALTORS®? doesn’t. This ability to share Yes. Somebody may have What CRS tools ideas filters out the marketing a better idea about some have you found noise from the people who are aspect of the business and helpful? What aspect of your trying to sell you this or that. may put it in a way you can I use the CRS database (crs. business is the most If you ask your peers in difunderstand. And sometimes com/find-a-crs). There satisfying? ferent states or even different it’s not necessarily about are so many cities represented Seeing a family purchase a countries about a problem or adding new techniques or that in order to focus my home — when they are at the a technique, they are happy to marketing models to your searches more effectively, I beginning of that process of share their knowledge. business. If you’re doing the check in every few weeks with creating a home — is truly And as you attend more right things, magnify those the local board of REALTORS® heart-warming. Their kids are seminars, you notice a shift things and make them larger. to see which cities, counties so excited because they might in the style of marketing inno- For instance, if you already and states are sending the finally be getting their own vations. Tech is the fastest have good marketing in place most buyers to San Antonio. rooms! Or, some of my clients moving target; it gets things within certain areas, just With that information, I can might say, “We’re having a done the fastest and everyone make an additional touch concentrate on contacting CRS birthday party and inviting always wants to have the point within your sphere of members in those areas to get people to our apartment.” But latest gadget. But the best influence, like sending a referrals. If those clients are once they’ve made a home top producers — the CRSs — postcard to a client to say, “I working with a CRS where they purchase, they are so happy know that real estate isn’t was just in your neighborhood, are, they are more likely to to be able to invite friends and a sales business, it’s about and I thought I’d see how you want a CRS in their target city. family into their home. service. It’s about making that are doing.” You don’t want to Daniel Silvestre Garcia has been a CRS since phone call to check in with seem too intrusive, but it’s 2014. He can be reached at 210.363.8965 or danielgarcia@remax.net. Visit him at people so they know you care just a way to keep your name www.sanantonioliving.info. about them. in front of clients.

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Photo: Darren Carroll

DANIEL SILVESTRE GARCIA, CRS

Daniel Silvestre Garcia, CRS, uses social media marketing to keep people engaged. San Antonio has a low unemployment rate — 3.7 percent. Most sellers move every 5–7 years, and military families move every 2–3 years. San Antonio features major attractions, such as the River Walk (pictured here), a network of walkways lined with shops and restaurants that winds along the San Antonio River.

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AIR

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THERE?

What does it take to be a consistent, high-performing REALTOR® in today’s market? Several CRSs share their secrets for achieving super success.

By Regina Ludes

Claire Bisignano Chesnoff, CRS, was working as a substitute teacher in 1997 when a family friend who was selling her parents’ home suggested she work in real estate. “I had earned my license in 1995 but hadn’t done anything with it,” says Chesnoff, a broker/owner with Claire Properties in Staten Island, New York. It took her three months to compile her book of business and six months to complete her GRI. After earning $27,000 in 1998, her first full year in real estate, Chesnoff earned six figures her second year, earned her CRS in 2000 and has never looked back. While some agents like Chesnoff have realized their goals early in their careers, many others struggle for years before reaching even the most modest levels of success. But top producers say what sets them apart from subpar performers is a proper mindset, a clear vision of their goals and the expectation and confidence to reach them. The Residential Specialist talked with several CRSs to find out how they became top producers in their local market and what average performers can do to reach the highest levels of success.

➜

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service minded

A Ladder to Success

Chesnoff attributes her success to education. “Working as a substitute teacher, I understood how important education would be. I was constantly attending classes and earning designations because I wanted to make sure that I had the knowledge to provide top-notch service to clients,” says Chesnoff, who lists nine different designations after her name. Agents should be prepared to work hard and respond quickly to opportunities, adds Chesnoff. “If your phone rings, answer it. If you get a text message, respond to it. You need to be in the thick of things at all times,” she says. That may mean starting your day one hour earlier than other agents in your office or making your to-do list the night before. It can TOP also mean working 12-hour days for 23 PRODUCER consecutive days to keep the business moving forward, like Chesnoff did in 2007 during the housing market crisis. That kind of dedication paid off later when the local market improved and Claire Bisignano clients called her when they were ready Chesnoff, CRS Claire Properties, Staten Island, to buy or sell their home.

some cases means delaying a purchase or sale of a property. For example, when a client wanted to list his home shortly after his wife died, Groesbeck realized the man was not ready emotionally to deal with the stress of selling his home and she advised him to delay his decision. “The days that I don’t sell a home or get a listing are sometimes the most rewarding because I know I did the right thing and found the right solution for the client. It’s about customer service, and that’s what gets people to refer clients to you,” Groesbeck says.

Focus on Listings

During his first 12 years in the real estate business, Russell Shaw, CRS, with Realty One Group in Phoenix averaged between 17 and 23 deals per year. After shifting his focus in 1988 to work exclusively with listings, Shaw saw his production steadily increase from 60 deals in 1991 to 406 in 2006. He now works with a team who helped him close 345 transactions in 2014. “At first, I took any listing I could find, but that was not very productive. It’s more New York important to get a saleable listing. SomeFocus on Client Service 1. Continue your education and learn everytimes you have to rule out certain people After becoming a REALTOR® in 2001, it thing you can to excel in your market. as clients or walk away from some listings took only two years for Jean Groesbeck, 2. Review your business plan often and that may be more trouble than they’re CRS, with Coldwell Banker Bain in Anamake adjustments that will help you worth,” Shaw says. cortes, Washington, to see her efforts pay achieve your goals. In addition to mastering lead generation off. Groesbeck works with second-home and 3. Work with more experienced agents techniques, Shaw hired an assistant to luxury buyers who expect top-notch service to learn what works for them. handle the administrative tasks that were from agents, so she makes sure to provide 4. Don’t be afraid to work longer hours weighing him down. “The agent who can faster responses to their inquiries, more and hustle for business. generate leads is worth $200 an hour,” he detailed reports and presentations with 5. Be responsive to clients’ needs. When says. “The cost of hiring an assistant is high-quality photos. While other agents in the phone rings, answer it. small, but it opens up an agent’s schedule her market tend to preview listings online to work on sales activities that are more before showing them to buyers, Groesbeck important.” visits the property herself so she can give clients firsthand Successful agents must become experts at crafting and observations, and she puts together information packets that delivering impressive listing presentations, Shaw adds. “The they can review later. biggest barrier to success is thinking they already know how “Since my clients are comparing our community with othto list, which cuts them off from learning new strategies,” ers nearby, I need to give them as much detailed information he says. “The more listing presentations they do, the more as possible to help them make their decision,” Groesbeck proficient they will become.” explains. “There is so much information out there, but much To move past production plateaus, Shaw says agents need of it is either lengthy, based on opinion or simply not accuto think bigger and visualize a larger number of deals. For rate. I help them sort all that out.” example, if REALTORS® find themselves stuck at 20 deals Part of any good customer service focus includes working per year and want to achieve 50, they need to visualize that with clients to find the right housing solution — which in larger number until they get comfortable with it. “If 50 seems

TIPS

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service minded

too high, it will prevent them from reaching that goal. But if they begin to visualize 100 deals per year, 50 will eventually seem more reachable,” Shaw says.

Look for Mentors

REALTORS® who work with influential mentors gain a big advantage. After working as a police officer in Memphis, Rita Driver, CRS, became a REALTOR® on a dare. When she started out in the business, “I immediately sought out different mentors, including agents, lenders, attorneys and home inspectors, because I wanted to learn as much as I could,” says Driver, broker/owner with All Stars Realty in Memphis. Her production soared in 2001, and in one month alone she closed 17 deals. She completed 356 deals in 2011 TOP with a support staff of three, while the PRODUCER buyer agents on her team contributed an additional 150 deals. Driver says her knowledge of the mortgage market gives her an edge over other agents in her area. She completed Russell Shaw, CRS Realty One Group, Phoenix, Arizona training in lending and worked for eight months as a loan originator in the mid1. Farm out administrative tasks or hire 1990s after becoming frustrated with an assistant to free up your time to local lenders who were reluctant to work concentrate on winning more business. with anyone who had a challenging finan2. Become an expert on listing presentacial situation. tions, and learn to generate your own “They’re still potential buyers in my mind, sales leads. so I became a financial advisor to my clients. 3. Surround yourself with other top proI can tell them what types of loans are ducers who are supportive of your goals. available and what they qualify for. Many of 4. To overcome plateaus, think big and my past clients still call me with questions visualize larger numbers of deals. about refinancing,” Driver says. She also 5. Think positively. If you expect to be owns her own moving truck that clients can successful, you will be successful. use for free and provides notary services.

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Driver advises agents to shift their business focus as the housing market changes. When the new-home market boomed in the Memphis area in the early 2000s, Driver worked more with builders and new-home sales, and then when the housing bubble burst a couple of years later, she learned to work short sales to serve the growing short-sale market. “Almost all the agents in my market shied away from doing short sales, so those agents sent their clients to me,” Driver recalls.

A Different Mindset

Top agents tend to be bigger risk-takers than average agents, Driver says. “They run their business like an actual business. Because they’re the decision-makers, they control the money and the work.” And they know how to manage risk versus reward in their business practices. Shaw adds that the best agents have unfailing confidence in their abilities and expect to be successful. He encourages newer agents to connect with top performers in the industry and learn from them. “A top producer will be supportive of your goals and won’t doubt your ability to achieve them,” Shaw says. “If you surround yourself with other top agents, you will begin to think and perform like a top producer, too.” Regina Ludes is a freelance writer based in Chicago. The CRS Legends Video bundle is available at crs.com/ education/courses/on-demand/ listing-buyer-legends-video-bundle.

BY THE NUMBER S

REALTOR® PRODUCTION SNAPSHOT There’s a huge gap between the performance and earnings of a typical REALTOR® and the top producers profiled in this article. According to the National Association of REALTORS® 2014 Member Profile, the typical REALTOR® completed 12 transactions in 2013, the same as in 2012, but higher than the 10 transactions reported in 2011.

1.8 million $ The typical agent’s sales volume in 2012: 1.5 million The median gross income of a typical REALTOR in 2013: $ 47,700 The median gross income of a typical REALTOR in 2012: $ 43,500 The typical agent’s sales volume in 2013:

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SECOND PLACE A national and local look at how the vacation- and secondhome market is faring. By Gayle Bennett

Last year was a banner year for second-home sales, which traced a steep incline in the upward trend line that has been lengthening since the housing recovery began. Nationally, an estimated 1.13 million vacation homes were sold last year, a 57.4 percent increase from 2013, according to National Association of REALTORS® 2015 Investment and Vacation Home Buyers Survey. The overall share of vacation-home sales also grew dramatically, to 21 percent compared with 13 percent

in 2013. These numbers are the highest since NAR began conducting the survey in 2003. NAR attributes this market’s growth to baby boomers, who have benefited from consecutive years of strong stock and housing markets since the recession. The bulk of this demographic sees retirement in the not-too-distant future, and many are buying vacation homes that will soon become their primary residences. According to the NAR second-home survey, 40 percent of vacation buyers purchased homes in a beach area, 19 percent in the country and 17 percent in the mountains. The Residential Specialist asked CRSs who cover each of those areas to share how their markets have changed since the downturn, describe their typical buyers and predict how they think the year will shake out.

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BY THE NUMBER S

1.13 million

vacation homes were sold last year. Source: National Association of REALTORS® 2015 Investment and Vacation Home Buyers Survey

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“ WHEN PEOPLE ARE LOOKING TO BUY, I RECOMMEND THEY STRETCH THEIR PRICE POINT DURING THE SEARCH. WHAT THEY ARE LOOKING FOR IS PROBABLY AVAILABLE; HOWEVER, IT MIGHT JUST BE OVERPRICED.”

The Market Since the Recovery

While 2014 was a strong year for sales, the overall median price of vacation homes slipped 11 percent to $150,000 from $168,700 in 2013. NAR attributes that decline to increases in condo and townhouse sales, an increase in distressed property sales and an uptick in sales in the South, where prices are often lower. Bruce and Sandy Soli, both CRSs with Sierra Sotheby’s International Realty, work in the Lake Tahoe area of Nevada and California. Their market is a mix of single-family homes, planned-unit developments and condos. Prices range from around $400,000 to $35 million, with the most active piece of the market between the $600,000 and $1.2 million price points. Prices in Lake Tahoe fell from 2008 to 2010 due to the distressed properties that filtered their way into the market, but many sellers opted to remove their homes from the market rather than discount them further. “They didn’t feel the need to sell because when they buy homes in Tahoe, they are buying more of a lifestyle than an investment,” says Bruce Soli. Year-over-year sales were down in 2014 — 345 total sales compared to 443 in 2013. The Solis attribute this mainly to tighter inventory. The median price in Tahoe tends to vary wildly from year to year, given the range of real estate. “The median will be skewed heavily when we have a lot of luxury sales,” Sandy Soli says. Last year, demand was strong and supply was low, —Bruce Soli, CRS which has remained the story this year so far. In the Fort Myers area of Florida, distressed properties were a huge portion of the overall

Source: National Association of Realtors® 2015 Investment and Vacation Home Buyers Survey

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SECOND HELPINGS

Among all homebuyers in 2014, the number of buyers purchasing a primary residence declined, but the market share of buyers of vacation homes continued to rise. 2014 Number of Sales 1.13 million Share of all transactions 21

Median price

150,000

Cash sales 30

13% $

168,700

38%

Distressed property sales 45%

42%

94,380

Median distance from primary residence 200 miles

717,000

Median buyer income

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85,600

180 miles

market coming out of the downturn. But like Lake Tahoe, there weren’t that many homebuyers in the second-home market, according to Michael Polly, CRS, vice president of real estate operations with Royal Shell Real Estate. “The second-home market was affected, but nothing like the primary home and investor market,” he says. “There were a lot of other factors that kept buyers sitting on the fence.” He cites the hit people took in their other real estate holdings and the 2010 Gulf oil spill, which even though it didn’t affect the Ft. Myers area, nonetheless depressed sales activity. Last year, sales and median price were up in almost all the vacation-home areas from Marco Island to Captiva Island. “We’ve seen about a 20 percent increase in sales of homes that sell above $500,000,” says Polly, indicating the lower price point of most vacation homes in his area that are close to the beaches. “We’ve seen that for 2014 over 2013 and in the first quarter of 2015 over 2014.” Kay Pearson, CRS, associate broker with the Pearson Group, also works in Florida, but only in the winter. Starting in April and through the summer, she works in the Lincoln and Hubbard Lake areas of Northeastern Michigan. Her primary focus there is the Lost Lake Woods Club, a private, gated club that started in the 1920s as a hunting and golf community. As was the case in most of Michigan, the downturn hit this area hard. “These second homes became unfeasible because of the automotive downturn,” Pearson says. “People had trouble with their primary homes, so the second-home market just wasn’t happening.” But since the downturn, the average sale price has been climbing — from $81,831 in 2009 to $115,721 in 2014 — and the number of sales last year was 21, compared to eight in 2009.

Who Is the Second-Home Buyer?

According to the NAR second-home survey, 33 percent of vacation homebuyers plan to use their property for vacations or retreats, 19 percent plan to convert their vacation home into their primary residence in the future, 13 percent bought for potential price appreciation and 13 percent purchased because they found a good deal. Most of the Solis’ buyers fall into the first two categories, although there can be some overlap. “Our largest feeder market is the Bay Area,”

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BY THE NUMBER S

GETTING AWAY FROM IT ALL… 5%

6 to 10 miles 16 to 20 miles

51 to 100 miles

13%

4% 2%

10%

251 to 500 miles 16 %

5 miles or less 11 to 15 miles 21 to 50 miles

6 to 10 miles

5 miles or less

11 %

14%

11 to 15 miles

24%

501 to 1,000 miles

Investment buyers, on the other hand, tend to want to stay close to their supplemental properties, often acting as landlords.

16 to 20 miles 8%

1,001 miles or more 11 %

101 to 250 miles

…BUT NOT THAT FAR AWAY 22%

Vacation homebuyers tend to want some distance between their second houses and home bases, with 200 miles being the median .

17 % 21 to 50 miles

51 to 100 miles

251 to 500 miles

1,001 miles or more

12 %

101 to 250 miles

501 to 1,000 miles

Source: National Association of Realtors® 2015 Investment and Vacation Home Buyers Survey

Sandy Soli says. “They can get in and out of the How Will 2015 Wrap Up? car and come here multiple times a year. Given Pearson expects 2015 to be another strong year that we are a tax-friendly state, we also attract in her area of Northeastern Michigan. “Finally second-home buyers from other tax-friendly people downstate can sell for more money, and states like Florida and Texas.” they can move upstate and buy so much more Polly says there are two typical buyers in his for their money,” she says. “There’s a trailing second-home market. “We have buyers who effect that’s taking place.” have generational wealth in that baby boomer With the Tahoe area’s low inventory and generation who aren’t looking to spend any high demand, the Solis are likely to see sales more winters in the Midwest or the North. The prices continue to increase. However, Bruce other buyer is the one who is nearing retirement Soli points out that since many owners in and wants to purchase now. They will use the their market don’t have to sell, they often property first as an income property to help put their homes on the market at an inflated offset the cost of ownership, carving out a few price. He calls them recreational sellers. weeks for personal use as a vacation property. “There’s a bit of a disconnect with some of the Florida doesn’t have a state income tax, and pricing,” he says. “When people are looking that’s a nice 6 to 8 percent savings for people.” to buy, I recommend they stretch their price He says that 68 percent of sales $500,000 and point during the search. What they are lookover are cash sales. “This market has predomiing for is probably available; however, it might nantly been a cash market, so this is normal.” just be overpriced.” People come to Northeastern Michigan to Polly also expects 2015 to end on a high note escape the tri-county (Detroit) area, Pearson in terms of both sales and price. After all, he says. Their decision to buy is likely based says, Florida has three key things that people on what they like to do in the country or on like in a vacation home: “Warmth, water and a lake: hunt, fish, boat, kayak or some other way of life: People are drawn to that.” activity. “It’s always about dissecting their lifestyle,” she says. Gayle Bennett is a writer and editor based in Washington, D.C.

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For more information, look for NAR’s Field Guide to Vacation, Resort, and Second Homes, available at realtor.org.

crs.com

July Aug

How to help buyers and sellers navigate the home inspection process. By Gwen Moran

The old Latin phrase caveat emptor — let the buyer beware — is most certainly true when it comes to purchasing a home. Thus, home inspections are a common part of today’s residential real estate transactions, with more than three quarters of U.S. homebuyers ordering an inspection prior to purchasing their new home, according to a joint survey by the National Association of REALTORS® and the American Society of Home Inspectors. Among these homebuyers, 81 percent BY THE NUMBER S had a contingency plan for the inspection and 79 percent attended and participated in the home of homebuyers have said inspection. that home inspections increase their confidence Typically, a home about the condition of inspector is hired by any property. the buyer once the Source: American Society of Home Inspectors buyer and seller enter

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into a contract, which may be dependent on the home inspection. The inspector then conducts a rigorous examination of the property and submits a detailed report of the findings, which may include any areas of concern about the property, such as mold, structural issues and general wear and tear. What happens next can make or break the deal, says Debra Cahill, CRS, broker associate with Success Real Estate in Bridgewater, Massachusetts, who serves the market area from Braintree to the bridges of Cape Cod. “There are home inspectors who scare the daylights out of buyers. They think that’s their job. Then there are home inspectors who educate and say that there’s no perfect home out there and help buyers understand the reports,” Cahill says. REALTORS® can also be an important part of this education

process, helping buyers and sellers understand what to expect before, during and after the home inspection. In doing so, they can make the process smoother and less likely to disrupt the transaction.

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“ There are home inspectors who scare the daylights out of buyers. They think that s their job. Then there are home inspectors who educate and say that there s no perfect home out there and help buyers understand the reports.” — Debra Cahill, CRS

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Working with Inspectors

Over the past several years, the home inspection process has changed, says Dan Steward, president and CEO of Pillar to Post, a home inspection franchise company based in Tampa, Florida. The “HGTV effect,” referring to television shows like House Hunters or Flip or Flop, where buyers and experts comb over home conditions, have left more buyers educated about what to expect, he says. As a result, consumers are asking for more information beyond just an evaluation of the structure and systems. They want to know about air and water quality, safety issues and other factors. New technology has also made a big impact on the home-inspection industry. Steward says that his company’s inspectors use infrared thermography to detect areas of heat, which may indicate hot spots in wiring — often the result of a do-it-yourself wiring job that could be dangerous — or moisture, which may indicate leakage or potential mold issues, he says. Veteran inspector Peter Daniele, founder of Professional Inspection, Inc., a home inspection company in Brick, New Jersey, says that many inspectors are more educated, as well. Good inspectors regularly take continuing education classes to stay up to date on current construction and energyefficiency trends, he says. In addition, more inspectors are including

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dwelling points

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LOOKING INTO THE PROBLEMS Here are some of the most common issues that home inspectors uncover:

ROOFING

HEATING âDirty furnace âBroken controls âBlocked chimney

âMissing or rotted fascia âInadequate ventilation âBrittle or curled shingles

WINDOWS

EXTERIOR

ELECTRICAL

PLUMBING

âBroken sash cords âWindows painted shut

âImproper grading âCrumbling masonry

âOpen junction boxes âDouble tapped circuits â Outlets with reversed polarity

âRusted or corroded pipes âLeaks under sinks or toilets âSlow drains

additional services, such as testing for mold and radon. “You want to look for that commitment to continuing education, along with good references and a steady background of being in the business full time,” he says.

Working with Sellers

It’s a good idea for REALTORS® to prepare sellers prior to the home inspection, says Linda Kangrga, CRS with RE/MAX 100 in Columbia, Maryland. She advises them to review any structural problems or issues they’ve noticed with systems, such as flickering lights or leaky fixtures, prior to the inspector’s arrival. In addition, it’s likely an inspector will flag major wear and tear or cosmetic issues. If there are systems that are nearing the end of their life span — such as a furnace

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or roof that is near the end of its warranty — it’s a good idea to make those disclosures upfront. If sellers are not willing to make any repairs, that needs to be disclosed as well, indicating that the house is being sold “as is,” Cahill says. That manages expectations upfront for everyone involved. Daniele says that sellers should contact their municipalities and see if any certificate of occupancy requirements have changed since they took residence. Some towns will require particular inspection of electrical outlets, smoke detectors, windows and other features. It’s important to make sure any repairs necessary to meet those requirements are made prior to the inspection, he says. Sellers should begin working a few months in advance. For example, clear out

gutters and make sure water drains properly away from the house to ensure that the inspector doesn’t note a possible problem with foundation drainage. Cahill says that even minor things can add up to deal-breakers for anxious buyers. She recommends repairing issues like tubs that don’t drain properly, poor lighting, and loose tiles, toilets and doorknobs. You can take some of the expense out of big jobs such as replacing a furnace or installing energy-efficient windows by taking advantage of tax credits, she says. Steward adds that structural and integrity issues such as foundational cracks and rot are important to address, along with “anything that’s obvious,” like missing handrails, which can present a safety issue.

dwelling points

Once the issue is documented in a home inspection report, the buyer may require that a licensed contractor be hired to complete the repairs, which can add to the expense, she says. In addition, the more problems the report documents, the greater the tension that can arise between buyers and sellers. “The problem with things you know are wrong showing up on the home inspection is that when we find major things wrong that the seller should’ve known about, it causes the buyer to start wondering what else is wrong with the house that the seller didn’t take care of. It shows poor maintenance,” Kangrga says. “And those things can cause sellers to get their feelings hurt, especially people who think they’ve taken very good care of their house. I try to lay the groundwork there and explain to them that things happen to your house that you don’t necessarily see.”

Working with Buyers

At the same time, buyers need to be reassured that not every item in a home inspection report is cause for panic, Cahill says. She says her favorite home inspector tells buyers that even if he was inspecting a brand new home, he could find something wrong with it. For example, most homes have mold, which often panics buyers, she says. The key is to understand what is dangerous or what might lead to a big expense and address those issues with the seller, either by having the seller fix the issue or through price concessions on the sale price of the home, so the buyer can have them fixed after moving in. Steward says that his home inspectors print out the home inspection report on-site for the buyer so they can address any questions. His inspectors encourage the buyers to attend the home inspection or, at least, meet with

“ I OFTEN TELL BUYERS NOT TO GET TOO PICKY WITH THE SMALL STUFF. EVERY HOUSE IS GOING TO HAVE ISSUES — DON’T ASK FOR EVERYTHING. IF IT’S INSURMOUNTABLE, MOVE ON TO THE NEXT HOUSE.” —Peter Daniele, inspector

them during the last 15 to 30 minutes of the inspection so the inspector can show the buyer the issues to which the report refers, and answer any questions. “My job is not to give your house a rating on a scale of one to five, or 10 stars. My job is not to tell you whether you should buy the house or not, my job is not to tell you whether it’s worth the amount of money you’re paying for it — those are all your judgments. My job is to give you objective information, so ask as many questions as you want. I will tell you about all those things,” he says.

Working Together After the Inspection

Once the report comes back, the buyer may want repairs made or concessions to the selling price so he or she can make the repairs after taking over ownership of the home. This is where all parties need to work together if the deal is going to move forward, Cahill says. “For my buyers, I typically recommend that anything that’s a hazard be fixed before they take

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residence. For things that might not be pleasant — like a window that’s foggy — then we may ask for a little off the selling price to free up some of their cash so they can do it themselves,” she says. Daniele warns that buyers should be careful about how they use the home inspection findings as leverage. Of course, if there are major issues, they need to be addressed. However, in markets that are heating up again, being too nitpicky about report findings can backfire. “In markets such as here in New Jersey, where there is not that much inventory, good houses are getting involved in bidding wars where there are back-up offers right behind the buyer whose bid was accepted. I often tell buyers not to get too picky with the small stuff. Every house is going to have issues — don’t ask for everything. If it’s insurmountable, move on to the next house,” he says. Steward says that transparency is key to determining if the deal is still a good fit. Some buyers are very skilled at repairs and not afraid of reports that are full of them. Other buyers are strapped for cash and can’t afford to be facing down a five-figure roof replacement within a few years. But when the seller makes thorough disclosures about the house condition and the buyer is clear about what he or she will or will not accept, then the negotiations to determine whether the deal will close or whether the house and buyer are not a good match will move forward more smoothly, he says. Gwen Moran is a writer based in Wall Township, New Jersey. For more information, look to NAR’s Field Guide to Home Inspections, available at www.realtor.org.

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perfect

practice

[feature]

taming the

Striking a work-life balance that’s right for you improves relationships, health and overall happiness. By Donna Shryer

Physicians and psychologists persistently extol the value of work-life balance — an existence that respects and nurtures both your professional and personal selves. But if you’re like most Americans, the natural response is, “How?” Squeezing heavy workloads, valued relationships, family responsibilities and personal interests into one 24-hour day can feel like an impossible feat. And for those in real estate, striking a work-life balance poses additional challenges because the profession’s very definition revolves around other people’s schedules and demands. Clients call or text with questions at all hours, and contract offers require immediate attention. Online real estate listing portals have increased unscheduled requests for property viewings. And prospects can land in your lap at any time.

Inspiration to Unplug

According to Mental Health America, about 1 in 4 Americans describe themselves as “super stressed” due to an out-of-whack work-life balance. As stress levels spike, productivity plummets, concentration suffers and risk for depression rises. Left unchecked, chronic stress can also weaken the immune system. In addition, the American Heart Association reports that relentless stress can contribute to asthma, ulcers and irritable bowel syndrome, as well as behaviors and factors that increase heart disease risk, including high blood pressure and cholesterol levels, smoking, alcohol consumption, physical inactivity and overeating.

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perfect practice

But few Americans heed the medical experts’ warnings. A 2014 Gallup report states that the average full-time employee works 46.7 hours a week, equaling nearly one extra eight-hour day per week. Four in 10 of those surveyed admit to working 50 hours or more each week. Even with these facts front and center, the question remains: how does one even begin to find that elusive work-life balance?

But the pop-up REALTOR® isn’t doing anyone a service, Leonard says. The urge to serve anytime, anyplace, anywhere, he adds, only diminishes your reputation as a successful professional, and his advice is to turn off the smartphone during non-traditional working hours and set boundaries with clients and co-workers. “Would you call your attorney at 10 p.m. with a question?” Leonard asks. “Of course not! You have Taming Technology a professional relationThere are myriad strateship with this person, so gies to attain that coveted you call during business work-life balance, although hours. I make it clear to for many REALTORS®, my clients and co-workers taking control of technolthat I’m a professional real ogy tops the list. While estate broker, with busimobile technology keeps ness hours just like any you connected, it can also other respected profesbecome an addiction that sional. That means I don’t makes work an exhausting, take calls after 7 p.m., and all-day-all-night struggle, I don’t work Sundays.” reports a study conducted As for the odd client by Helsinki Institute for who wants an agent ready Information Technology to work 24/7, “I’m not their (HIIT) and Intel Labs. The guy,” Leonard stresses. study found that many “The benefits of spending smartphone users suffer Sundays working in my “checking habits” — repetyard, eating dinner with “ I make it clear to my clients and itive checks for missed my family and relaxing calls, email, texts and with friends far outweigh coworkers that I m a professional social media posts. In the very small amount of real estate broker, with business worst-case scenarios, business I may have lost hours just like any other respected these checks can average because I set boundaries.” 34 per day, and they are On the off chance professional. That means I don t not necessary but can that ignoring late-night take calls after 7 p.m., and I don t become compulsive. client phone calls, texts This 24/7 connection to or emails makes you feel work Sundays.” buyers, sellers, co-workers uneasy, here’s a piece of —Bob Leonard, CRS and everyone else in the advice from Vince Price, real estate universe can CRS, broker associate with result in the “pop-up REALTOR®,” says Bob Leonard, CRS, Coldwell Banker in Panama City, Florida. “Often that latebroker associate with RE/MAX Associates, San Antonio, night call or text isn’t a client being inconsiderate. They’re Texas. “The phone rings, you pop up out of your chair — or over-thinking something, or they have questions dancing if it’s late at night, your bed — and you run to take the call, around in their head after a showing — all matters that can text or email.” wait until the morning. So I remind myself that it’s after

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perfect practice

hours, it’s not an emergency and there’s just so much I can do in one day.”

BY THE NUMBER S Americans are far more likely to toil after hours compared with our European allies.

Finding Your Solution

Percent of employees working weekends:

Source: The National Bureau of Economic Research

Deborah Reed, CRS, broker associate at Coldwell Banker Residential Brokerage in San Diego, California, feels that boundaries are easier to stick to when the result is more time for something that ignites your mind and naturally holds your undivided attention. In most cases, Reed stresses, the activity as well as time available for that activity will be different for different people, which means a formulaic approach to work-life balance often backfires. “You can’t wake up and say I’m going to spend three hours every day doing this or that. Forcing the issue can be more nerve-wracking than balancing — especially in real estate,” Reed says. “We don’t track our success by the hour, day or week. It’s more about the year. So for me, I take a broader view of work-life balance. Was it a good year? Did I succeed in my job and also fulfill my own personal needs?”

U.S.A.

29.2%

U.K.

25.5%

Germany

22.4%

France

21.8%

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As she takes a seat in the coffee shop, Reed hears conversations, loud over-head music and the door opening and closing. She puts her phone on silent and places it face down on the table — but admits to peeking every few minutes. “Once I get into my writing, though, I forget about the phone and I don’t hear a sound. Writing has my undivided attention. Suddenly it’s three hours later, it’s time to go back to work and I feel balanced!” Price is another fan of found time, although he can’t wait for it to arrive serendipitously. He hunts it down. As a diehard jazz fan, who has attended some of the world’s greatest festivals, Price kicks off each new year by searching online for must-see festivals. Then he checks the annual CRS class schedule. “I coordinate festival dates with class dates, so I leave town for slightly longer periods of time but less often. That gives me a work-life balance that meets all my needs — personal and business.”

Quality Trumps Quantity

Whether lucky, carefully coordinated or thoughtfully set in cement, those moments % Netherlands Every Minute Counts devoted to life rather than work are crucial to For Reed, last year was a very good year. She combat “time confetti” — a feeling of being % Spain met her professional goals and also published blown about in many places at once. There is no her first novel, The Chamber magic number of hours required And The Cross, co-written with to find balance, and those hours a writing partner. can certainly include others if, for Completing the novel while example, your passion is family, also maintaining a successful real If turning away from your laptop, tablet and smartphone ballroom dancing or playing estate career, did involve blockmakes you weak in the knees, consider this: It’s all the second base on a softball team. ing out some fixed writing time, rage! The rich and famous — as well as the not-so-rich However, “me” time activities including every Sunday afternoon and famous — are periodically turning off technology and need to be focused and undiswith her writing partner and voluntarily relinquishing their ability to instantly connect turbed — for as long as you can every Thursday evening for her with co-workers, data streams and detailed pix of what reasonably swing it. novel writing group, but it also cousin Frieda is eating for lunch. The goal is to connect Price offers one more piece of included countless hours of what with life instead. advice that may increase the joy Reed calls “found time.” To help corporate warriors achieve this remarkable spent away from your desk and Found time, Reed explains, accomplishment, life coaches lead digital detox camps. clients. “At the end of the day, is unexpected and unplanned There are also so-called black-hole resorts, where guests although we love our job, we’re downtime. For example, it could pay as much as $2,000 a night for the privilege of no TV, doing this so we can afford to live be when a client cancels the aftertelephone or Internet signal. Even the life we love. Remember that noon showings you scheduled. DIYers are getting into the game, and you’ll enjoy life a lot more.” “We all get those phone calls! But launching applications like Freeinstead of feeling frustrated and dom that block Internet access Donna Shryer is a freelance writer based in seeing the entire afternoon as a for up to eight hours. To minimize Chicago. waste, I use that time to write. I online withdrawal, the app maker For more, read Leading grab my laptop, head to a coffee suggests gently easing into the the Life You Want: Skills for shop and grant myself full permisprogram, beginning with a short Integrating Work and Life, by sion to enjoy a couple of hours 20-minute, no-Internet session. Stewart D. Friedman, available at amazon.com. devoted only to writing.”

18.7

9.6

TURNING OFF TECHNOLOGY

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resources for learning & leisure

GOOD READS

building

A NEW LIFE Fed up with the abstractions of her desk job as a wordsmith, a young journalist reinvents herself as a woodsmith. Reviewed by Allan Fallow

“Carpenter’s Assistant” read the posting in the “Etc.” category of the Craigslist job section. “Women strongly encouraged to apply.” Nina MacLaughlin was intrigued. The young woman had recently made several seismic changes in her life, HAMMER HEAD: quitting her job (as The Making of a Carpenter managing editor of by Nina the Boston Phoenix website), breaking MacLaughlin up with a boyfriend [Norton] and moving out of 224 pages $ her apartment. Now, 24.95 eager to put some distance between herself and “the echo chamber of the Internet,” MacLaughlin replied to the ad — and was astonished to learn, when the hiring carpenter

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named Mary responded, that more than 300 hopefuls had likewise answered the notice in just the first 18 hours of its posting. “Sign of the times,” Mary laconically observed. After giving MacLaughlin a halfday tryout, Mary signed her on, agreeing to teach her a craft the author hoped would satisfy her urge “to put my brain where my hands were.” Five years later, MacLaughlin is still swinging a hammer, having built walls, decks, bookcases and a chase — a tall, narrow, threesided box that hides pipes from view. Along the way she also constructed this book, a granular, often meditative account of her on-the-job experiences in the land of 2-by-4s, kitchen counters and concrete dust. Reminiscent of both Tracy Kidder’s House and Matthew Crawford’s Shop Class as Soulcraft, MacLaughlin’s Hammer Head is about much more than sistering joists and toenailing studs: It gets at the nature of transformations, both physical (board to shelf) and personal (writer to carpenter), as well as answering the ne plus ultra question, “How do we decide what’s right for our own lives?” (Hey, what

did you think would happen when a former classics major strapped on a tool belt?)

Driving It Home

Much of the book’s charm stems from the naïve abandon with which MacLaughlin throws herself into every assignment that comes her way, whether she knows how to accomplish it or not. Handed a crowbar by Mary and instructed to, “Take up the stair treads down to the basement” inside a stately old home the two are renovating near Harvard Square, MacLaughlin dives right in, “hop[ing] that what I was about to do was what Mary had in mind.” Happily, she’s delighted with the results: I jammed the [crow]bar … underneath the tread of the top stair. I pressed up, heaved and ho’d, and felt the board peel up and pop under my efforts with a wailing sound of nail releasing its hold on wood. I couldn’t believe the force of the bar. I popped off the top of one stair, then another, ratty pieces of dark wood, faded gray and splintery where feet have landed and landed, up and down. I grunted and sweat.

Having demolished nearly the entire staircase, MacLaughlin stands at the bottom and triumphantly calls up to her boss, “The crowbar’s amazing. I feel like a superhero.” “Good for you,” Mary replies. “Next time, start at the bottom and work your way up.” After burning out in her previous job, where she had been reduced to editing such brainless click-bait as “The 100 Unsexiest Men,” MacLaughlin takes righteous pride in turning out items of true substance. Her enthusiasm is innocent and infectious. She and Mary build a back deck on a house in Somerville in one short week, whereupon the author wants to stress-test their handiwork: “Can I jump on it?” she asks Mary. “Knock yourself out,” comes the answer. “So I jumped hard on the platform,” MacLaughlin writes. “Solid. Nothing shook. It took my weight.” She and Mary had hardly completed the pyramids or the Parthenon, she allows, but they had created “a way to get from a door down to the ground, a passage and a place to pause, to pile groceries, to stomp snow off boots on the way inside. What a thing!”

Tough as Nails

When she’s not marveling at the transformation of one object (or occupation) into another, MacLaughlin gives us gritty character sketches of the people — overwhelmingly men — she comes in contact with on various job sites. None of the male tradesmen, however, are drawn as affectionately as Mary, a self-described “43-year-old married lesbian with a 10-year-old daughter.” “Petite would be a word for her if she didn’t carry herself with the force and presence of someone much larger,” MacLaughlin observes, “if she weren’t able to hoist 80-pound bags of cement onto her shoulder as though she were lifting a sack of pine needles.”

Raking her hands through her short, wiry, salt-and-pepper hair, Mary takes shape in these pages as Yoda to the author’s Luke, right down to such “Use the force”-style pronouncements as “Be smarter than the tools,” “Let the materials tell you which way they want to go” and “Finesse, girlfriend.” Hammer Head is dedicated to Mary. Although MacLaughlin was lucky to find such a patient female mentor, the gender realities of her adopted profession sound pretty unforgiving. Whereas the percentage of women dentists rose from 1.9 percent in 1972 to 30.5 percent in 2009, and the ranks of women mail carriers swelled from 6.7 percent to 35 percent in the same time frame, female carpenters increased from a downright deplorable 0.5 percent to a merely negligible 1.6 percent. “The fact is,” MacLaughlin concludes, “carpentry is men’s work. Which is to say, carpentry is work that is statistically done by men.” (Indeed, of all the occupations the U.S. Census Bureau lists in its 2011 survey, construction and extraction are the most out of balance in terms of gender.) In a touching coda, MacLaughlin capitalizes on everything she’s learned from Mary to custom-build a set of bookcases flanking the fireplace in her father’s new home. Despite her misgivings (What if I can’t translate what I know to the wood?), she completes the job — and recognizes that the pieces of her life may be finally fitting together, too: Placing her carpenter’s level on one of the finished shelves, MacLaughlin “watched the bubble shift and settle. It wasn’t right there in the middle. But it was good enough.” As in wood, Hammer Head reminds us, so in life.

YO U M I G H T A L S O L I K E …

A CURIOUS MIND By Brian Grazer & Charles Fishman [Simon & Schuster] 320 pages $ 25.99/hardcover Academy Award-winning producer Brian Grazer shares his secret to staying curious, and why curiosity is so important. WORK RULES! By Laszlo Bock [Twelve] 416 pages $ 30/hardcover Google’s head of People Operations explains his innovative approach to cultivate a more efficient workforce.

DO OVER By Jon Acuff [Portfolio] 288 pages $ 26.95/hardcover Learn how to get over hurdles in your work life that are holding you back from performing your best by changing how you view your job. ARE YOU FULLY CHARGED? By Tom Rath [Silicon Guild] 240 pages $ 22.95/hardcover New York Times bestseller Tom Rath draws on the latest research to determine three key ideas that will help you stay more engaged.

Allan Fallow is a features editor for a nonprofit association in Washington, D.C. You can follow him on Twitter @TheFallow.

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G E T T I N G AWAY F R O M I T A L L

resources for learning & leisure

foliage FORAYS

YO U M I G H T A L S O L I K E …

GoPro Hero [GoPro] $ 129.99

This ultra-portable video camera can be worn or mounted to capture the fall colors as you make your way through the fall explosion of color, whether it’s by foot, bike, boat or car.

Summer is still here, but before you know it, cooler winds will blow through many parts of the country as fall arrives. Now is the time to plan for a fun fall trip to see and photograph some incredible fall foliage. The only trick is to time it right — the weather plays a big role in exactly when leaves change color. But it’s good to have a top destination in mind when the time comes for a scenic and fun weekend getaway.

Adirondacks, New York

Upstate New York’s picturesque highways draw visitors who enjoy the explosion of fall colors in this mountain region, which features more than 2 million acres of protected forest preserve. A host of tree varieties, including birch, maple and oak, paint the region with unforgettable color. When: Mid-to-late October.

Great Smoky Mountains, North Carolina and Tennessee

One of the most popular national parks in the United States, the Smoky Mountains boast more than 100 species of trees. This impressive diversity of flora provides fall visitors with an amazing display of red, orange, gold and purple. When: Early October through early November.

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Upper Peninsula, Michigan The U.P. draws vacationers in the summer for fishing, hiking, biking and paddling, but fall brings colorseekers. The area has more than 20 forested state parks and borders three of the Great Lakes. Sylvania Wilderness, in the Ottawa National Forest near Watersmeet, encompasses 34 lakes and one of the few remaining old-growth forests in the Midwest. When: Mid-September to mid-October.

Aspen, Colorado

Aside from its reputation as a world-class skiing and vacation spot, Aspen displays impressive fall colors thanks to its eponymous Aspen tree. The leaves, which turn yellow-gold, reflect the sunlight as they rustle in the breeze. When: Mid-September through early October.

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Foliage Network [foliagenetwork.com] Free

The Foliage Network collects accurate and current foliage information for locations across the United States. Its reports, which are used by travelers to find the best foliage conditions, are based on information collected by spotters around the country.

3Pod FlatFold Tripod [Adorama] $ 149.95

Designed for people on the go, the 3Pod FlatFold collapses into a 13.5-inch package that can be stacked with other equipment or tucked into a suitcase.

inside

midyear MINUTES

CRS news from the council

Highlights from the CRS Midyear Meeting.

The CRS Midyear Meetings Chapter leaders had a great exchange were held May 12–14, 2015, of ideas during their networking session in conjunction with the NAR about the new Member Engagement model. Conference and Expo in WashLegal counsel was present at the session to ington. During the course of these provide guidance and answer any quesmeetings, the Council’s Board of tions as individual chapters proceed with Directors and Committee memtheir transition to the new model. Some bers came together to review the of the themes discussed were: engaging all progress toward this year’s key members, recruitment and reinstatement, initiatives and to approve new addiidentifying new local networking groups tions to Council leadership. CRS and identifying new leaders. also unveiled its first-ever annual The Membership Committee also disreport (for 2014) during the Board cussed the new CRS Ambassador Program, of Directors Meeting. which is designed to raise awareness of the The Board reviewed and approved CRS Designation and recruit new members several new policies, including in local areas. Separately, the Strategic bylaw changes to reflect the new Planning Committee adopted an “outsidemember affiliation model, changes in” strategic thinking approach that is to the Rules and Regulations docMember-centric and will help CRS better ument, and a change to the term leverage its brand and customer assets, of service on the Membership and while helping the Council get ahead of CRS Designees and candidates flocked to the Strategic Planning Committees to competitive market challenges. CRS booth at the Midyear Meetings. one year. The Global Alliance Committee meetThe Board also approved a ing featured an outstanding presentation, new Investment Policy Statement as recommended by the Counseling Buyers on Overseas Purchases — the ABCs — Finance Committee, and approved the Product Committee Tips, Resources, Opportunities, from three international recommendation for dissolution. The Board approved new experts: Fernando Garcia, CRS, Global Alliance Committee Regional Vice Presidents to serve a one-year term as recvice chair; Shonee Henry, 2015 NAR regional coordinaommended by the Nominating Committee. They are: Jeff tor, Asia Pacific & Middle East; and Angela Eliopolous, Dowler, CRS, Region 1 (Massachusetts, Connecticut, Rhode founder of Global Owner Properties, with offices in the Island, Maine); Charlee Gowin, CRS, Region 3 (Maryland/D.C., U.S. and Greece. In addition to general international sales Virginia); Cathy Armstrong, CRS, Region 9 (Arkansas, Kaninformation, specific markets covered included Spain, sas, Missouri, Oklahoma); Michael Burkhard, CRS, Region Portugal and Greece. Copies of “Cultural Faux Pas” — a 10 (Louisiana, Texas); and Mike Duncan, CRS, Region 13 compilation of examples of cultural taboos — were also (California, Hawaii, Guam). available to attendees. All presentation materials are availThe Board also accepted the following nominations from able upon request. the Nominating Committee: Janelle Pfleiger, CRS, 2016 presiThe Council’s presence at the NAR Expo resulted in a dent; Leigh Brown, CRS, 2016 president-elect; Gary Williams, record number of new members and membership reinstateCRS, 2016 first vice president. ments. CRS thanks all our Members who attended this event. The Council’s committee meetings and educational events Your participation and feedback during the Midyear meetcovered a wide range of topics and were well attended. ings provided great value to the Council. We look forward Courses offered included: Stop Selling and Start Attracting; to seeing each of you again at the National Association of Listings to the Max; The Year of the First-Time Homebuyer; REALTORS® Conference and Expo Nov. 13 – 16, 2015, in and The Power of Standing Out. San Diego.

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The Council of Residential Specialists

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inside

CRS news from the council

floridian FESTIVITIES Don’t Miss: Sell-a-bration® 2016 in Orlando.

There’s no better way to “ The networking, education escape next year’s midand the entire experience winter blues and kick-start the New Year than by heading off has been life-changing. to Sell-a-bration® 2016. The My business is always Council’s annual educational improving because of event will be held at the Loews Royal Pacific Resort in Orlando, Sell-a-bration®.” Florida, Feb. 8 – 9, 2016. —Rick Gaviati, CRS Register before Aug. 31 and save up to $100 off the regular rate! REGISTRATION PRICING Don’t miss your chance to network with other top agents, CRS MEMBERS NON-MEMBERS participate in timely forums and Early Bird Rate Early Bird Rate insightful educational sessions, and (ends Aug. 31, 2015) (ends Aug. 31, 2015) check out exhibitors’ products and $ $ 549 625 services. This event brings together Standard Rate Standard Rate a host of top professionals who $ $ 649 699 share their tips for success — and $ helps you build referral relationVIP Upgrade: 100 ships that last a lifetime. Pre-Conference One Day Course: Attendees will leave the event Win-Win Negotiation Techniques, on Feb. 7, 2016 with new ideas they can immediately implement in their business, CRS MEMBERS NON-MEMBERS new professional contacts and $ $ 130 160 a renewed commitment to their Group Rates are also available. businesses. Agents can also earn

July Aug

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16 education credits toward the CRS Designation by attending Sell-a-bration® 2016. The event’s Welcome Reception is sponsored by Cutco Closing Gifts. “Sell-a-bration® proved to be an uplifting and enlightening game-changer for me,” says Diana Symonds, CRS, who has attended for several years. “The information that was presented was appropriately geared to today’s real estate market.” Rick Gaviati, CRS, agrees. “The networking, education and the entire experience has been life-changing. My business is always improving because of Sell-a-bration®.” For information about Sell-a-bration® 2016 and to register, visit crs.com/ events/sell-a-bration, or call customer service at 800.462.8841. For information about Sella-bration® sponsorship opportunities, contact Stephanie Crain, CRS director of business development, at 312.321.4452 or scrain@crs.com.

TASTING menu

Spread the word: CRS Week 2015.

Many REALTORS® have heard about CRS education and member benefits, but do you know anyone who isn’t involved? CRS Week, coming up August 24–28, 2015, is a great opportunity to introduce your colleagues to all that CRS has to offer and spread the word about the Council across the country. CRS Week is designed to give agents who may not be familiar with CRS a sampling of the programs that the organization offers and to get them involved with CRS both locally, on a chapter level and nationally. We received encouraging feedback on our first two CRS Weeks in 2013 and 2014, and the details for the 2015 event are being finalized. Please take advantage of the complimentary webinar recordings from 2014 and the other CRS marketing resources available at crs.com/ events/crs-week, and check back for details about this year’s event as they become available.

Free webinar topics this year include*: ÄÄSupercharge Your Referral Business, presented by ReferralExchange ÄÄStaging, presented by Carl Medford, CRS ÄÄReal Estate Tech Tools, presented by Sasha Farmer, CRS ÄThe Ä Power of Online Reviews, presented by Ernie Graham ÄHome Ä Inspection Deal Breakers, sponsored by Pillar to Post CRS also has a host of resources to help you market yourself to other agents and your customers. Log in to CRS.com to find them in the CRS Resource Center at crs.com/resources/ marketing.

*Subject to change

S AV E T H E D AT E

PLAN FOR SAN DIEGO

It’s time to get ready for the 2015 REALTORS® Conference & Expo in San Diego, the biggest industry event of the year. Thousands of top real estate professionals from all over the world will flock to Southern California to learn new ideas, share tips for best practices and make important professional connections. CRS Designees who attend the conference will walk away with practical advice and strategies to help them close more deals and become inspired to achieve more in their personal and professional lives. The CRS Annual Business Meetings are held in conjunction with the NAR

{

Conference & Expo, so CRS members who are active on NAR committees or with state lobbying initiatives can participate in both meetings and take advantage of the NAR trade expo and other programs. CRS meetings and events will take place at the Westin San Diego hotel. CRS meetings start on Wednesday, Nov. 11, and end on Friday, Nov. 13, 2015, with the CRS Inaugural and Awards Dinner. For more information and to register, visit crs.com/events/annual.

{

Correction

The 2014 CRS of the Year from Alaska is Gordon Sloane, CRS, from RE/MAX Dynamic Properties in Anchorage, Alaska.

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learn

from the

BEST strategies from the industry’s top educators

CRS INSTRUCTOR

FAIR PRICE

Educating buyers on the importance of submitting a competitive offer. Mike Selvaggio, CRS

Ø Mike Selvaggio, CRS, is a Certified CRS Instructor and broker/owner of Delaware Homes Real Estate in Wilmington, Delaware. Mike@Selvaggio.com Twitter: @MikeMyCoach www.MikeMyCoach. com

July Aug

Have you ever had buyers who decide to submit unrealistically low offers on every property they are interested in, no matter what you tell them? This can be a frustrating problem, not only for REALTORS®, but for their clients as well. One strategy agents can use to convince buyers to make a competitive offer is to print out several listings that have recently sold. Next, find the percentage of the total asking price that each home sold for. Mark this percentage on each listing with a big Sharpie to make it big and bold — you want your client to get the message. You may have several examples ranging from 92 percent to more than 100 percent. Showing these to your clients will demonstrate the high number of properties that are actually selling

The Residential Specialist trsmag.com

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within a reasonable percentage of the asking price. Then try to frame the issue properly when you explain it. For example, you might say: “Mr. and Mrs. Buyer, if you find a property that you really like and for some reason do not want to pay the asking price, I want to give you an advantage when it comes time to negotiating. Would that be okay with you? “As you can see, these are properties that have recently sold in our marketplace. I’ve marked the percentage of the asking price each received. If you want to make an offer less than the asking price, you know that the market currently is entertaining offers from 92 percent to 101 percent. Many uninformed buyers who think that they can make offers 20 percent below the asking price are severely disappointed when a seller does not accept it. I wanted to give you this data in advance before we begin our search for your new home.” Buyers need to know the market and understand that they are competing with other homebuyers. It is important to do this before they look at the first property. With this strategy, you are more likely to convince buyers to submit a competitive offer — and close the deal.

CRS

connect

YOUR CRS

network SOUTH

expand your network

SOUTH

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

Bradenton~Sarasota Florida

Kent Redding BROKeR, gRi, CRs, ABR

Your Real Estate Referral Resource

the Kent Redding group Berkshire Hathaway texas Realty

512.306.1001

Austin, texAs

“Trust, Values, Commitment to Excellence, Friendships & Living Life Abundantly”

I’m available via email, text, telephone and in person.

CRS

CLASSROOM COURSES

941-725-4374 Geri@GeriKenyon.com 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 — Converting Leads Into Closings JULY 23 — MANHATTAN, KAN. [Kansas CRS Chapter]

AUG. 27 — BATON ROUGE, LA. [Greater Baton Rouge Association of REALTORS®]

785.587.7145

225.761.2000

Instructor: Chandra Hall, CRS

Geri Kenyon

CIPS, CRS, GRI, PMN, RSPS, SFR

Kent@CallKent.com www.CallKent.com

Instructor: Chandra Hall, CRS

AUG. 11 — GILLETTE, WYO. [Campbell County Board of REALTORS®, Inc.]

307.682.2789

Instructor: Rich Sands, CRS

AUG. 12 — HUNTSVILLE, ALA. [North Alabama CRS Chapter] 256.603.5146

Instructor: Chandra Hall, CRS

OCT. 16 — CORALVILLE, IOWA [Iowa Association of REALTORS®, Iowa CRS Chapter] 800.532.1515 x1

Instructor: Rich Sands, CRS

OCT. 19 — LAS VEGAS [Barrett & Co., Inc.]

CRS 121 — Win-Win Negotiation Techniques AUG. 10 — GILLETTE, WYO. [Campbell County Board of REALTORS®] 307.682.2789

Instructor: Rich Sands, CRS

702.252.7100

Instructor: Lee Barrett, CRS

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CRS

connect

CRS

OCT. 1 — BATON ROUGE, LA. [Greater Baton Rouge Association of REALTORS®]

CLASSROOM COURSES

expand your network

AUG. 11 — HUNTSVILLE, ALA. [North Alabama CRS Chapter] 256.603.5146

Instructor: Chandra Hall, CRS

SEPT. 8 — SAVANNAH, GA. [Georgia Association of REALTORS®, Georgia CRS Chapter] 678.597.4124

Instructor: Mike Selvaggio, CRS

OCT. 22 — EDWARDS, COLO. [Vail Board of REALTORS®] 970.775.5811

225.761.2000

Instructor: Rich Sands, CRS

SEPT. 15 — BRENTWOOD, TENN. [Williamson County Association of REALTORS®]

OCT. 15 — CORALVILLE, IOWA [Iowa Association of REALTORS®, IOWA CRS Chapter]

CRS 122 — Building a Team to Grow Your Business OCT. 23 — LAS VEGAS [Barrett & Co., Inc.]

800.532.1515 x1

615.771.6845

Instructor: Rich Sands, CRS

702.252.7100

Instructor: Mike Selvaggio, CRS

Instructor: Robert Morris, CRS

SEPT. 18 — CHEYENNE, WYO. [Cheyenne Board of REALTORS®, Wyoming CRS Chapter]

OCT. 22 — LAS VEGAS [Barrett & Co., Inc.] 702.252.7100

Instructor: Lee Barrett, CRS

OCT. 28 — ATLANTA [Georgia Institute of Real Estate, Georgia CRS Chapter] 404.252.6768

Instructor: Chandra Hall, CRS

307.634.0363

Instructor: Rich Sands, CRS

CRS 200 — Business Planning and Marketing JULY 29 — DEL REY OAKS, CALIF. [Northern California CRS Chapter] 949.766.2901

Instructor: Dale Carlton, CRS

SEPT. 28 — BRANSON, MO. [Missouri CRS Chapter] 417.338.4555

Instructor: Edward Hatch, CRS

OCT. 6 — TAVERNIER, FLA. [Florida Keys Board of REALTORS®] 305.852.9294

Instructor: Mark Porter, CRS continued on page 44

SOUTH

MIDWEST

GARY LANHAM GROUP

CANADA

Welcome to the tranquil beauty of the

BLACK HILLS of SOUTH DAKOTA Proud home of

ELLSWORTH AIR FORCE BASE

FORT LAUDERDALE, FL

Leading the Way in South Florida Real Estate Gary Lanham Group Leader Associate Broker CRS, CIPS, ABR, ePRO o 954.545.5550 c 954.695.6518 gary@garylanhamgroup.com www.garylanhamgroup.com

NORTHEAST

605-391-8424

duanehosek@gmail.com www.duanehosek.com

Pittsburgh

area

I help clients make the Wright move RE/MAX Realty Brokers 5608 Wilkins Ave. Pittsburgh, PA 15217 OFS: 412-521-1000 x170 CELL: 412-508-0040 nancywright@remax.net

The Residential Specialist trsmag.com

www.hallmarklindrealty.com

Fax: 905-727-2230

E-mail: lenard@hallmarklindrealty.com

Bill Kuhlman

• Serving Massachusetts

Ranked #1 Selling Agent for Single Family Homes in The City of Boston

• 25 – 30% Referral Fees

Since 1988

• 2012 Massachusetts

CRS Chapter President

“I know great agents almost everywhere. Want to join my referral network?”

RE/MAX Achievers

Bill.Kuhlman@iCloud.com

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

BostonAreaHomesOnline.com

diane@dianecap.com

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Toll Free: 1-888-727-8223, ext. 228

I WORK HARDER SO YOU GET PAID FASTER!

www.dianecap.com

Nancy Wright, ABR, CRS, GRI

RE/MAX Hallmark Lind Group Realty Ltd., Brokerage Aurora Ontario Canada

NORTHEAST

Diane Capodilupo

for the greater

Duane Hosek, CRS

Honest-Skilled-Motivated-Full Time

NORTHEAST

Your referral source

July Aug

RAPID CITY, SD

781-883-5554

Reach more than

30,000

CRS peers with your ad here.

WEST

Contact Joe Stella: jstella@ glcdelivers.com or 847-205-3127

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

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

WEST

Thinking

Hawaii?

WEST

Selling Lake Tahoe, NV for 25 years.

www.JamesHawaii.com

29 years of “Experience You can Trust” James E. Lewis (R) CIPS, CRS, GRI, SRES® Cell: 808.225.0569 Fax: 808.732.0914 Email: J.Lewis@Realtor.com 4211 Waialae Ave. Suite 9000, Honolulu, HI 96816©2015 Coldwell Banker Pacific Properties. All Rights Reserved. Coldwell Banker Pacific Properties fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker® and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents affiliated with Coldwell Banker Pacific Properties are independent contractor sales associates and are not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.

Craig Zager I Love Referrals! Sell phone: 775.901.4663 craig@CraigZager.com

www.LakeTahoeAgent.com

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CRS

connect

CRS CLASSROOM COURSES

expand your network OCT. 20 — WEST ORANGE, N.J. [New Jersey Delaware CRS Chapter]

NOV. 2 — AUSTIN, TEXAS [Austin Board of REALTORS®, Austin CRS Chapter]

973.207.7005

Instructor: Jackie Leavenworth, CRS

CRS 201 — Listing Strategies OCT. 1 — FRESNO, CALIF. [Fresno Association of REALTORS®]

NOV. 9 — PHILADELPHIA [Schlicher Kratz Institute]

Instructor: Chandra Hall, CRS

559.490.6400

Instructor: Robert Morris, CRS

OCT. 8 — WAILUKU, HAWAII [Hawaii Aloha CRS Chapter] 808.733.7060 x0

Instructor: Gee Dunsten, CRS

512.454.7636

215.855.1265

Instructor: Gee Dunsten, CRS

CRS 204 — Buying and Selling Income Properties SEPT. 15 — WICHITA, KAN. [Kansas CRS Chapter] 785.587.7145

Instructor: Douglas Richards, CRS

OCT. 29 — ATLANTA [Georgia Institute of Real Estate, Georgia CRS Chapter]

OCT. 19 — MERRILLVILLE, IND. [Indiana CRS Chapter]

404.252.6768

800.681.8056

CRS 202 — Effective Buyer Sales Strategies AUG. 13 — COLORADO SPRINGS, COLO. [Pikes Peak Association of REALTORS®]

OCT. 22 — NASSAU, BA. [Bahamas Real Estate Association]

Instructor: Chandra Hall, CRS

719.633.7718

Instructor: Rich Sands, CRS

SEPT. 2 — PORTLAND, ORE. [Oregon CRS Chapter, Washington CRS Chapter] 866.556.5277

Instructor: Chris Bird

242.356.4578

Instructor: Pat Zaby, CRS

CRS 205 — Financing Solutions to Close the Deal JULY 27 — SAN GABRIEL, CALIF. [West San Gabriel Association of REALTORS®]

Instructor: Jackie Leavenworth, CRS

626.288.6212

SEPT. 21 — AUBURN, ALA. [Lee County Association of REALTORS®]

NOV. 2 — MEMPHIS, TENN. Memphis Area Association of REALTORS®

334.321.0606

901.685.2100

Instructor: Chandra Hall, CRS

July Aug

Instructor: Dale Carlton, CRS

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CRS 206 — Technologies to Advance Your Business SEPT. 22 — MALVERN, PA. [Association of REALTORS® School, CRS Pennsylvania Chapter] 610.560.4800

Instructor: Mark Porter, CRS

CRS 210 — Building an Exceptional Customer Service Referral Business AUG. 18 — ORLANDO, FLA. [Florida CRS Chapter] 800.669.4327

Instructor: Gee Dunsten, CRS

AUG. 19 — HONOLULU [Hawaii Aloha CRS Chapter] 808.733.7060 x0

Instructor: Mark Given, CRS

OCT. 1 — ST. LOUIS [Missouri CRS Chapter] 314.267.2691

Instructor: Edward Hatch, CRS

OCT. 13 — BIRMINGHAM, ALA. [Birmingham Association of REALTORS®] 205.871.1911

Instructor: Frank Serio, CRS

OCT. 15 — ALBUQUERQUE, N.M. [New Mexico CRS Chapter] 505.610.5025

Instructor: Mark Given, CRS

OCT. 20 — LAS VEGAS [Barrett & Co., Inc.] 702.252.7100

Instructor: Lee Barrett, 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.

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. PLEASE NOTE: The images featured in the YOUR HOME newsletter may only be used within the PDF version of the newsletter. These images may not be reproduced or republished elsewhere outside of this newsletter format. CRS members are free to re-use the text of the articles contained in the newsletter, however.

REPRODUCE

Do it yourself with your office copier, or take the newsletter or electronic file (in addition to your photograph and any information you want inserted) to a printer who can prepare and reproduce the newsletter for you.

DISTRIBUTE

MAIL. If you photocopy YOUR HOME or use it “as is,” please note that it is designed to be folded in a Z fold with the words YOUR HOME facing out on one side and the mailing panel facing out on the other side. Postal regulations require that Z folds have three closures (tabs or tape) — one on top in the center and two on the bottom. For your convenience, we have placed asterisks (*) where the closures should be. Be sure to check with your local mailer or post office to make sure you have prepared your mailings properly. ELECTRONIC FILE. Attach the customized newsletter file to an email to your clients or create a Web link to the file on your website. Consult your webmaster or technician to make sure the file is prepared correctly for these purposes, since these basic instructions will vary by person and system. * This newsletter is for the exclusive use of CRS members.

your *

home J U LY/A U G 2 015

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

RETURN ON improvement Ø

Are you thinking about selling your home, or do you just want to spruce things up and don’t know where to start? If you’re working within a strict budget, the thought of remodeling your home can be daunting. It’s best to assess your needs and also educate yourself on current market trends before you get started. The 2015 Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS®, reports that large-scale jobs

aren’t likely to return sellers their full cost. Instead, smaller replacement jobs tend to generate a higher return than remodeling projects. The report uncovers that replacement projects showed an average return of 73.2 percent, while the cost-value ratio of remodeling projects showed an average rate of return of 60.8 percent. Arming yourself with information like this is key before you invest in making improvements. Here are the five mid-range projects that are most likely to recoup the cost of investment.

Home improvements most likely to recoup cost:

101.8%

Entry door replacement

92.2%

Manufactured stone veneer

88.4%

Garage door replacement

80.7 %

Siding replacement, vinyl

80.5%

Deck addition, wood

WATER SENSE While some regions of the country have been battling severe flooding conditions in recent months, a considerable chunk of the U.S. is struggling with the opposite problem: drought. Communities across the country face tough challenges to help them maintain a healthy and affordable water supply. The U.S. Environmental Protection Agency recommends several simple tactics to help homeowners limit their water use — which averages 260 gallons of water each day per household. ÄÄ Install water-efficient appliances and fixtures: WaterSense and ENERGYSTAR®, programs sponsored by EPA, have

identified high-performance, waterefficient appliances, fixtures, water systems and accessories that reduce water use in the home and help preserve the nation’s water resources. ÄÄ Upgrade to a water-efficient toilet: Toilets are the main source of water use in the home, accounting for nearly 30 percent of residential indoor water consumption. A switch to a high-efficiency toilet can save a family of four $2,000 over the lifetime of the toilet. ÄÄ Focus on faucets and showerheads: Faucets and showerheads account for

approximately 32 percent of all home water use, the EPA says. High-efficiency fixtures, marked with the “WaterSense” label, can provide a huge reduction in a household’s annual water consumption. ÄÄ Landscape wisely: By using native plants in the yard as part of a greenscape, homeowners will be able to spare the expense and hassle of watering a large swath of lawn. Trees, shrubs and other leafy plants can help absorb rainfall and reduce runoff. Learn more at epa.gov/ greenhomes/ConserveWater.htm.

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

LOCK IT UP Ø

With all the advancements in smart-home security technology and systems, some homeowners may overlook one of the most basic keys to home security — door locks and keys. According to This Old House, nearly 3 million U.S. homes are broken into each year. Locks have come a long way in terms of the protection they provide, and it’s a good time to examine some options for improving home security with a simple upgrade of door-lock hardware. Determining what kind of exterior lock you need is the first step. Consider the pros and cons of various keyed-entry doorknobs, handle sets and dead bolts before you buy. All exterior doors need a dead bolt no matter what kind of knob or handle set you decide on. You can mount the dead bolt and doorknob together or separately, or purchase a set that includes both as one installation.

E REFER RA LS!

SAY YES TO CRS EQUAL HOUSING

Exterior locks should be either Grade 1 or 2. Choose locksets with a dead-locking latch bolt or dead bolts that include hardened pins. Install these with a heavy-duty plate and at least 3-inch screws. Prices for the locksets vary from $25 to over $300 depending on quality, style and safety rating. When you’re shopping for a new lockset, keep in mind that you want to look for a dead bolt that will withstand door jimmying with a credit card or saw. According to a study by ConsumerReports.org, forcible entries such as door kick-ins are the most common type of home break in. The report also found that the majority of new smart-home locks that are opened by a fingerprint, passcode or key failed their prying/wrenching test. Since technology isn’t necessarily the solution when it comes to home security, reinforcing doors with upgraded locks that feature good safety-rated parts will keep your home safe.

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

SEVEN new eLearning Bundles coming your way! Bundles specifically designed to help promote your business, get your CRS designation and learn more for less. Whether you're looking for help with your online marketing or need additional credits to complete your designation, these new eLearning Bundles are for you.

THE FOLLOWING eLEARNING BUNDLES ARE NOW AVAILABLE: • CRS MARKETING 6 HOUR BUNDLE: Eligible for 6 hours of course credit. Focuses on improving your marketing efforts to promote your business effectively online. Members $108 Non-members $135 • CRS 8 HOUR BUNDLE: Eligible for 8 hours of course credit. Includes four of our newest 120 minute online courses which cover social media, online presence, video marketing, and negotiations. Members: $144 Non-members $180 • CRS MEGA MARKETING 14 HOUR BUNDLE: Geared to help those working toward the CRS Designation earn 14 hours of course credit. Includes one 8 credit course and four 2 credit courses all focused on helping your marketing strategy. Members: $229.50 Non-members $292.50 • CRS 24 HOUR BUNDLE: Eligible for 24 hours of course credit. Includes a set of three 8 credit courses. Members $364.50 Non-members $472.50 • CRS 16 HOUR BUNDLE in Option 1, Option 2, and Option 3: Eligible for 16 hours of credit. Each option includes a set of two 8 credit courses. Choose one that fits your needs. Members $243 Non-members $315

Get ahead with these new bundles today before they are gone! Register for any selection today at crs.com/onlinelearning.

ask a

CRS advice from your peers

MARKETING

What are some promotional items that can hold all of the documents clients receive at closing?

“ Our Board of REALTORS® store has the vinyl pouches with zippers and logos in various sizes, which I bought recently for about $12 each. They can be branded with your company’s logo or REALTOR® logo, and I believe they can even be ordered online. It’s a nice thought to hand your client one at the closing table to put all their stuff in. Plus, I’ve gone back years later and the papers are still in that pouch.” Janet Board, CRS RE/MAX Connections Louisville, Kentucky Janet@janetboard.com

“ We put all of the documents onto a CD that shows our logo, company name and phone numbers on the CD cover. This is an affordable way to help your clients access their documents with ease!” Barbara Nash, CRS Keller Williams Newport Estates Newport Beach, California weselldreams@cox.net

“ Our office actually has thumb drives that are monogrammed with our logo. We give them to new agents for their onboarding training. The thumb drive has all of their instructions and documents they will need as an agent. They are inexpensive but very professional in their presentation. I am sure you could have them imprinted with individual agent information, too, and use them for the closing docs.” Chantal Konicek, CRS RE/MAX Alliance Basking Ridge, New Jersey Chantal@konicekgroup.com

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

July Aug

The Residential Specialist trsmag.com

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It’s all in the details. HomeTeam applies a systematic approach to home inspections and provides detailed reports utilizing our advanced cloud-based software. Homebuyers receive a fully written report, complete with photos of the home. And with our team approach, our comprehensive home inspections take about half the time. This means you get all of the info you need when you need it.

That’s the HomeTeam promise.

SAVE THE DATE

August 24-28, 2015

Don’t miss CRS Week August 24-28, 2015. Celebrate your Membership and help raise awareness of CRS in your local area. During this week, the Council will be releasing a full suite of complimentary benefits just for members—including free webinars, members-only tools, and special flash sales on education. Education and networking events will be also held in local areas all over the country! Make plans now to participate in CRS Week 2015:

• Register for free CRS Week webinars below: - Aug. 24: Supercharge Your Referral Business, presented by ReferralExchange - Aug. 25: Use Staging to Put Your Listings in the Spotlight, presented by Carl Medford, CRS - Aug. 26: Plunge into Productivity: Systems and Tools to Get You There, presented by Sasha Farmer, CRS - Aug. 27: Harness the Power of Online Reviews, presented by Ernie Graham - Aug. 28: Home Inspection Deal Breakers, sponsored by Pillar to Post • Participate in a local educational or networking events—Check with your local CRS chapter! • Explore the new Members-only resources available during the week. • Keep an eye out for special flash sales on education. • Show your CRS pride on social media. • Tell other agents about CRS and encourage them to join. Celebrate CRS Week by spreading the word about the Council’s high quality education, the many benefits of membership, and the value of the CRS Designation.