The Residential Specialist, November/December 2015

nov + dec

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

2015

THE

ALSO IN THIS

ISSUE

When clients bring the kids Selling historic properties A bit of city in the suburbs

Highlights from Inman Connect Setting up a home office Home sales during the holidays

Z

THE

FACTOR Weighing the value of working with Zillow

RADON Why it matters WHAT IS RADON? • Radon is a colorless, odorless and tasteless radioactive gas formed by the breakdown of uranium, a natural radioactive material found in soil, rock and groundwater.

• Radon released from the ground can build up to hazardous levels inside a home.

WHY TEST FOR RADON? • Radon is the second leading cause of lung cancer after smoking, putting your clients’ health at risk.

• Nearly 1 in 15 homes in the United States and Canada has an elevated radon level, even in areas with fairly low environmental radon.

Ask about our

Home Inspection Packages!

• Any home may have a radon problem – old or new homes, well-sealed or drafty homes, and homes with or without basements.

Pillar To Post Home Inspectors can test your client’s home for radon.* For more detailed information, visit the website below.

800-294-5591 *Services vary by location.

pillartopost.com/radon

contents LIFE ON THE Z AXIS 18 Nearly 10 years after Zillow revolutionized the online home search process, some REALTORS® are still reluctant to embrace the market’s new reality.

By Regina Ludes with Donna Shryer

Nov 20 Dec 15 vol. 14, no. 6

features 23 AY CHILD’S sPhLould

What you working know when with s with familie n. re young child n B y G we n a Mor

30

26

SECOND CITIES

More homebuyers are looking for urban amenities in their suburban communities.

HISTORY LESSONS

Selling historic real estate requires well-developed sales skills combined with a deep understanding of notable local properties.

By Gayle Bennett

By Michael Chazin

20 15

The Council of Residential Specialists

crs.com

1

Nov Dec

contents

departments

Nov 20 Dec 15 vol. 14, no. 6

40

4 VANTAGE POINT

By Dale Carlton, CRS

5 SHORT LIST

Millennials want amenities within walking distance, and the top 10 hottest zip codes.

14

9 COOL STUFF

Nine out of 10 consumers expect companies to address environmental and social issues.

10 SMART SOLUTIONS

As the real estate business evolves, agents are learning that they need to embrace the ‘new normal.’

by Mike Fenner

12 INSIDE TRACK

More and more professional REALTORS® are working from home. Here’s what you need to know about setting up a home office for maximum productivity.

By James Cappio

14 WINDOW OF OPPORTUNITY

The weather might be frightful, but the market is delightful for motivated agents.

By Heather R. Johnson

16 PEER TO PEER

Tim Hur, CRS, of Point Honors & Assocs., Atlanta, Georgia

34 WORK + LIFE

A Curious Mind: The Secret to a Bigger Life

by Brian Grazer and Charles Fishman Reviewed by Allan Fallow

+

Baby, It’s Cold Outside Check out these winter wellness tips to stay safe and healthy this winter.

16

inside CRS 37 NEWS FROM THE COUNCIL

Build and refine your skills through professional education and networking at Sell-a-bration® 2016, Feb. 8 – 9, 2016, in Orlando, Fla.

40 LEARN FROM THE BEST

Communication channels have changed and marketing strategies must evolve to match these changes.

34

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

ZILLOW—AN HISTORICAL TIMELINE

CRS—THE KEY TO SUCCESS

Visit trsmag.com to access the digital edition of The Residential Specialist.

Zillow has changed the marketplace. Check out important milestones marking its rapid growth.

In a video clip, Rob Birkeland, CRS, reminds viewers of the value of becoming a CRS.

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

Meet the New CRS President The Residential Specialist introduces the new CRS president, Janelle Pfleiger, CRS, through an insightful Q&A session.

Curb Appeal What steps can you take to enhance the outside appearance of a home to make it more inviting to potential buyers? Find out who you should work with and how to convince sellers to invest in curb appeal.

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 Michael Chazin Michael Fenner Heather R. Johnson 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

Building a Business Partnership What do you need to know to break off from a large firm and start your own business with another REALTOR®? Hear from CRSs who have done it and what they would do differently.

The Evolution of Prospecting Do old-school methods of knocking on doors and sending flyers still work? What tactics are most effective and how do you measure the results?

PLUS:

Some agents store all of their business documents in the cloud. What services are available and how secure are they?

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

to be added to our potential source list. To see a list of the topics we’ll be covering, check out the magazine’s 2016 editorial calendar online at crs.com.

WHO ON YOUR

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

STAY INFORMED The Council of Residential Specialists provides superior education, exceptional networking opportunities and critical resources. The Council’s flagship magazine, The Residential Specialist, delivers the latest industry trends, success stories and proven strategies to grow your business.

To subscribe for yourself or a colleague, call 800.462.8841.

Note: Members of the Council of Residential Specialists receive the magazine as part of their member benefits.

[vantage point]

from the desk of Dale Carlton, CRS, 2015 president

the year

IN REVIEW

Ø

Photo: Adam Murphy

As I end my term as CRS president, I look back on the great strides the Council has made in 2015 to serve its members and provide them with valuable benefits and educational opportunities. It’s been an important year for CRS with the launch of several exciting new initiatives.

For example, the Council recently unveiled the CRS Referral Network (crs.com/ReferralNetwork), which gives Designees two new ways to find agent referrals and generate consumer leads. This complimentary tool includes a more accurate and efficient “Find a CRS” search tool that allows search by ZIP code, among other new features. The new CRS Qualified Consumer Leads program (powered by Referral Exchange) delivers pre-qualified consumer leads directly to CRS Designees.

CRS also partnered with real estate and technology publisher Inman News to deliver Inman Select news exclusively to CRS members free of charge when they sign into their CRS accounts at crs.com.

Sell-a-bration®, the Council’s flagship educational event, was a huge success, hosting nearly 800 of the most successful real estate professionals in the business. Next year’s event is slated for Feb. 8 – 9, 2016, at the Loews Royal Pacific Resort in Orlando, Florida.

CRS Week delivered five free webinars, which members can still download and listen to, as well as a white paper focused on building referral business and a presentation aimed at demystifying the home financing process for buyers.

The Council recently restructured its chapter organization to more fully engage all CRS members at the state and local level. This new structure provides multiple ways for CRS members to connect locally, regionally and across the country. It is designed to engage all members in a more tangible way and encourage their involvement with CRS. It also eliminates the need for chapter dues, requiring only one single CRS annual membership dues payment.

I would like to thank Council leadership, volunteers and staff for working so hard to maintain and build upon what is undoubtedly the top organization of its kind in our profession. As I complete my term as 2015 CRS president, I’m confident that the Council is on strong footing to thrive in the coming years.

I wish you all the best.

Nov Dec

4

The Residential Specialist trsmag.com

20 15

IT’S BEEN AN IMPORTANT YEAR FOR CRS WITH THE LAUNCH OF SEVERAL EXCITING NEW INITIATIVES.

[short list]

+ industry headlines + statistics + trends

happy feet Ă˜

Given the choice, members of the millennial generation would rather walk than drive. A recent study by NAR and Portland State University finds that Americans ages 18–34 are 12 percent more likely to walk as a mode of transportation compared to driving. The 2015 National Community and Transportation Preference Survey finds that this demographic also prefers to live within walking distance of shops and restaurants and have a short commute, and they are the most likely age group to make use of public transportation.

Millennials may be leading the pack, but 48 percent of Americans overall say they would prefer to live in communities containing houses with small yards but within easy walking

distance of local amenities, instead of living in communities with houses that have large yards, but require lots of driving. And while 60 percent of adults surveyed currently live in detached, single-family homes, 25 percent of those respondents said they would rather live in an attached home and have greater walkability.

The report finds that sidewalks matter: 85 percent of survey participants said that sidewalks are a positive factor when purchasing a home, and 79 percent place importance on being within easy walking distance of amenities and transportation. Women in particular value walkability in their communities, with 61 percent indicating that having sidewalks with stores and restaurants to walk to is very important.

20 15

The Council of Residential Specialists

BY THE NUMBER S

85

%

of survey participants said that sidewalks are a positive factor when purchasing a home.

crs.com

5

Nov Dec

this old MONEY PIT

[short list]

Ø

Older homes often have a great deal of history and charm, but a buyer should not expect every system within that home to be new or even up-to-date. Here are a few things to look for in an older home, from Pillar To Post Home Inspectors.

+ industry headlines + statistics + trends

Different systems wear out at different rates. ÄÄWorn out or obsolete plumbing system

ÄA Ä conventional furnace lasts 20 to 25 years. ÄÄGalvanized steel plumbing lasts about 40 years. ÄAn Ä asphalt shingle-roof surface lasts 15 to 20 years. ÄA Ä house that has been cared for settles into a “normal maintenance pattern” after a number of years, with maintenance costs totaling about 1 percent of the value of the home per year. For a $250,000 home, that’s $2,500 per year.

Key systems may wear out due to various causes.

ÄÄ Obsolete electrical system }} An inadequate number of electrical circuits will not meet modern demands. }} Old knob and tube wiring, as well as 60 amp service levels, will likely no longer be covered by insurance. ÄÄ Heating system near end of life cycle or obsolete }} Examples include: Old cast iron boilers or old “octopus” furnaces.

For more information, please visit www. pillartopost.com or email CRSSUPPORT@ pillartopost.com.

Moderate, steady home price appreciation helps homeowners build equity and contributes to a stable housing market.

Financial technology company firm SmartAsset sought to identify the top U.S. housing markets for growth and stability.

Photo: Bobak Ha’Eri

LIKE A ROCK

}} Galvanized steel pipes corrode from the inside out, causing leaks or damage and eventually will become non-functional. }} Lead supply pipes were used for water mains up until about 1930, and many homes still have them. Lead line is characterized by a large “bulb” of lead where it joins to galvanized steel or copper upstream of the shut-off valve.

Buyers of an older home should expect to see some aging systems and evidence of weathering. They should be prepared to maintain the home, upgrade and replace systems as needed and budget for repairs.

Real estate professionals need to be able to guide their clients through all of these key areas before they buy or sell an older home to ensure they are fully prepared for the next phase in their lives.

Boulder, Colorado

Austin, Texas

Over the past 25 years, home prices have risen an average of 4 percent per year, while home prices have not seen a decline of more than 5 percent, even during the national foreclosure crisis.

Nov Dec

6

The Austin housing market is among the hottest in the country, and during the financial crisis prices declined by just 3.4 percent while cities like San Jose and Seattle saw price declines of more than 10 percent.

The Residential Specialist trsmag.com

20 15

Bismarck, North Dakota

North Dakota’s economy is strong — its current seasonally-adjusted unemployment rate is just 2.6 percent — which helps support a remarkably stable housing market. Home prices have not declined 5 percent or more in 25 years.

Midland, Texas

Midland had among the highest home price gains in the U.S. over the past 25 years, with prices rising by an average of 3.3 percent annually.

Casper, Wyoming

A combination of economic and population growth helped Casper achieve the highest average home appreciation of any U.S. city over the past 25 years, rising an average of 4.7 percent annually.

58103 Fargo, N.D.

ZIP SERVICE

48375 Novi, Mich.

63126 St. Louis (Crestwood)

92010 Carlsbad, Calif.

75023 Plano, Texas

43085 Columbus, Ohio (Worthington)

Melrose, Massachusetts (ZIP code 02176), Worthington, Ohio (43085), and Fargo, North Dakota (58103) are the hottest ZIP codes in the United States today, according to a study released by Realtor.com. The study took into account how quickly properties are selling in a given ZIP code and how frequently home listings are viewed by consumers.

Each of the top-ranked ZIP codes boast a housing supply and demand that’s about five times stronger than the rest of the country. Homes in these areas sell four to nine times faster than the national average, the study says. The median household income among the top 10 ZIP codes is $71,000, which is 32 percent higher than the national average of $54,000.

“Each locale on this list is emblematic of the key trends driving housing this year — healthy local economics, job opportunities and affordability,” says Jonathan Smoke, Realtor.com’s chief economist.

78729 Austin, Texas

THE TOP 10 HOTTEST ZIP CODES IN THE UNITED STATES

Anchorage, Alaska

The city has seen an annual average home-price growth rate of over 3 percent since 1990, and it has not suffered any significant price declines over that same period.

Billings, Montana

During the recession, the unemployment rate in Billings never exceeded 7 percent, foreclosure rates remained relatively low and the housing market saw minimal price declines.

Walla Walla, Washington

Home prices have grown nearly 30 percent since the start of 2005, despite temporary losses during the housing crisis. The city’s overall growth rate of 256 percent since 1990 ranks as fifth-highest of the 358 markets in SmartAsset’s study.

Photo: Billy Hathorn

Photo: Squarestate7

78247 San Antonio, Texas

Odessa, Texas

Home prices have consistently increased in Odessa, where price levels today are more than triple what they were in 1990.

Photo: Infrogmation

80122 Littleton, Colo.

(Centennial)

02176 Melrose, Mass.

HoumaThibodaux, Louisiana

Despite the setbacks of Hurricane Katrina and the recession, home prices declined by just 2.5 percent from their peak at the beginning of the crisis to their low point.

Read more at smartasset.com/mortgage/ best-housing-markets-growth-andstability.

20 15

The Council of Residential Specialists

crs.com

7

Nov Dec

+ industry headlines + statistics + trends

March 9, 2004

CRESCENT CITY

reborn September 3, 2005

December 10, 2014

Satellite imagery shows New Orleans as it appeared in 2004; the devastation that Hurricane Katrina wreaked in the neighborhoods behind the failed 17th Street levee; and the city’s recovery in recent years.

Ø

Hurricane Katrina unleashed its fury on the Gulf Coast on August 29, 2005, forcing more than a million people from their homes and killing 1,800 more. So how has the housing market in the region recovered in the ensuing decade after the costliest natural disaster in the nation’s history? The U.S. Department of Housing and Urban Development (HUD) recently released a report on disaster recovery efforts and the lessons learned over the past decade.

Over the last 10 years, HUD investments have had a major impact on the recovery in the Gulf region. Working closely with state disaster-recovery leaders in Louisiana, Mississippi, Texas, Alabama and Florida, HUD allocated nearly $20 billion through the Community Development Block Grant Disaster Recovery (CDBG-DR) Program.

HUD’s investments focused on both housing and infrastructure. More than $14 billion in HUD recovery funds supported state-run housing programs. Some of the benefits were: Ä158,000 Ä households received direct compensation for their economic loss Ä12,660 Ä rehabilitated/reconstructed housing units became available

Nov Dec

8

The Residential Specialist trsmag.com

20 15

Ä2,894 Ä families received help to purchase homes Ä767 Ä newly constructed housing units became available ÄÄ35,597 affordable rental housing units became available As for infrastructure, affected states invested a combined $1.6 billion to replace/improve streets, utilities, sewer lines, schools, hospitals, dikes and dams. For example, the state of Louisiana used HUD investments to construct or rehabilitate: ÄÄ82 new schools Ä11 Ä higher-education facilities Ä13 Ä health care facilities (including the redevelopment of former Charity, Methodist and VA Hospitals in New Orleans) Ä20 Ä parks and recreational facilities ÄÄ52 water and sewer projects Ä22 Ä fisheries in nine coastal parishes “The road to recovery has been long and not without serious challenges, but it’s also shown that though the storm was strong, the resilient spirit of the Gulf Coast was even stronger,” HUD Secretary Julián Castro says. “And as long as there are people who want to come home and communities that need to be rebuilt, our job is not done.”

Images courtesy of DigitalGlobe ©2015

[short list]

[cool stuff]

acquisitions on a theme

SPIRIT OF THE

season

According to a 2015 Cone Communications study on corporate social responsibility, 9 out of 10 consumers expect companies to address social and environmental issues. About 75 percent of Americans say that during the holiday season they will choose a gift that supports a cause. Here are some ways to give back.

SQUARE DEAL

MELT THE GUNS

The gentlemen at Quixotic are passionate about pocket squares.

They believe this accessory symbolizes an attention to detail Squares start at that distinguishes the modern gent. Well, we can’t argue with $ 35 that. We also can’t argue with the company’s mission: to promote kindness. If you lose your pocket square during what Quixotic refers to as a “chivalrous act” — lending it to someone to wipe their tears, mop their brow, dust a seat, etc. – the company will replace it for free. Just send them a letter describing what you did to lose it. They will also replace a stained, worn or frayed pocket square if you send them the old one. Bonus: Quixotic donates 10 percent of its profits to programs that work to end domestic violence.

Liberty United wants you to help end gun violence in the U.S. — by wearing jewelry. From bracelets to necklaces and rings to earrings, each piece of Liberty United jewelry is formed from remnants of illegal guns and bullet casings that were removed from the streets of collaborating communities in Illinois, Price varies by Pennsylvania and New York. The guns and bullets are first product checked and catalogued by law enforcement officials and then released for recycling. Each piece of jewelry bears the serial number of the recycled weapon it was made from. Liberty United also gives a portion of its sales to fund other programs working to end gun violence.

quixotic.co

libertyunited.com

Price varies by product

AN IDEA WITH MERIT

DISARMING BAGGAGE

Thousands of kids drop out of high school every day. Merit Goodness wants to do something about that. The online company pairs style and comfort in its line of clothing and accessories, donating 20 percent of its revenue to college scholarship funds. Merit Goodness’s nonprofit arm, Give Merit, also operates the FATE mentorship program, which connects University of Michigan students with underserved high school students in Detroit to foster relationships, provide guidance and encourage them to attend college.

The company eventually Price wants to expand the FATE program varies by into other cities, such as Dallas, Los product Angeles, Philadelphia and New York.

Started by two sisters raised in a military family, Sword & Plough is a mission to empower veteran employment, reduce waste and strengthen the civilian-military community. The company sells handbags, totes, backpacks and other bags and accessories that are repurposed from military gear. Sword & Plough works with veteran-owned, -operated and -staffed manufacturers, and gives 10 percent of its profits to other veteran-focused organizations. Active duty military personnel, veterans and Gold Star spouses can also get a 20 percent discount on their orders.

While STATE Bags’ chic and colorful backpacks and totes are for both youngsters and adults, the company’s mission is for kids only.

For every bag purchased, STATE hand-delivers a bag filled with school essentials to a New York child in need. Backpacks are delivered during the company’s Bag Drop events, which also work as motivational Price rallies to get at-risk children excited varies by product about their education. STATE Bags partners with other charitable movements to help “spread the love,” including Beyoncé’s BeyGOOD campaign and the Coalition for the Homeless.

meritgoodness.com

swordandplough.com

statebags.com

GLOBAL VISION

FRIENDS OF THE STATE

Frames start at $ 95

Over 40 percent of the U.S. population needs eyeglasses. If you’re among this rising percentage, consider buying your glasses or prescription sunglasses from Warby Parker. The company was built on creating stylish frames for a fraction of the usual cost of eyewear. Plus, for each pair of glasses sold, Warby Parker distributes a pair to someone in need by giving monthly donations to its nonprofit partners. The nonprofits use the money to train men and women in developing countries to give eye exams and sell glasses to their communities. If you can’t find a local Warby Parker outlet, you can order a Home Try-On kit from the company’s website. Pick out five frames you like and the kit will ship to you free. You’ll have five days to try out each frame, then you can ship it back (also for free) and order your favorites online. Frames come in both men and women’s styles. warbyparker.com

20 15

The Council of Residential Specialists

crs.com

9

Nov Dec

[smart

solutions]

THE AGONY OF

choice

streamlining your business through technology

As the real estate business evolves, agents are learning that they need to embrace the ‘new normal.’ been more full of invention and innovation.” By embracing ground-breaking new technologies and ways of doing business, agents will help drive themselves, and the industry as a The old saying that the more things change, the more they stay the same may be true. But change can be scary. whole, to the next level. The lesson, he said, is that “If you’re in a traditional industry [like real estate] … think before you Innovation in any business may not change the foundation overreact to innovation.” of that business model, but it can have a huge impact on the This refers in part to the backlash that Zillow and other way professionals work every day.

In real estate, how do REALTORS® work in a system where online listing companies have felt from some REALTORS® who feel that such services confuse consumers and provide they no longer control the information (listings) over which inaccurate price estimates. they used to have exclusive control? How can agents ensure But REALTORS® can learn a lot from that mindset of that emerging business management tools, listing services innovation. Inman said they should continue to look for new and communications methods help them rather than hurt ways to deliver better service to their clients, especially if them? Should agents base their decisions as real estate prothey have systems in place to help them do fessionals on what’s the latest and greatest so.

“If you have infrastructure, think about technology and trends, or resist that “ We make a lot of adapting it to the future,” he said. change to operate in more of a businessmistakes when we One of the industry’s goals, Inman said, as-usual manner? And how does consumer should be to create new business models in decision-making factor in to the process? make decisions... an effort to make the home-buying and selling Speakers at this year’s Inman Connect Housing is one of experience more efficient and frictionless, and conference in San Francisco tackled these the most difficult a lot of that is based on emerging technologies questions and more as they tried to give and data-mining tools. “The back-end is the attendees some idea of what the agent of decisions next battlefront,” Inman said, because agents the future might look like. anybody makes.” who have the ability to track and mine conEvent host and Inman patriarch Brad Inman said, “The industry has never —Dan Ariely sumer data will surge to the front of the pack.

by Mike Fenner

Ø

Nov Dec

10

The Residential Specialist trsmag.com

20 15

Killing Inefficiency

Frictionless transactions are a noble goal, and businesses that serve homeowners, homebuyers and home sellers have jumped on the bandwagon to change the way real estate transactions get done.

For example, Inman panelist Tommy Sowers of SoloPro, said that for his company, “Our enemy is inefficiency.”

SoloPro provides a service that offers a 3 percent rebate for do-it-yourself homebuyers by connecting them to real estate agents who offer their unbundled services for a smaller fee.

The company says this enables buyers to select REALTORS® based on the services they want from an agent, and it’s one new option that consumers can use to find an agent who can serve their specific needs. Not all buyers and sellers necessarily want a traditional “full-service REALTOR®.”

Businesses related to home buying, selling and ownership have taken notice. Sowers says that Lowes, the huge home improvement and hardware company, has made a considerable investment in SoloPro, because they are anxious to cash in on new homebuyers “as early in the process as possible,” Sowers said.

Strike While the Iron’s Hot

Lowes wants to reach consumers at the exact moment when they are ready to make a decision about where to buy home-improvement products or appliances. But the problem from a human behavioral perspective is that “We make a lot of mistakes when we make decisions,” said keynote speaker Dan Ariely, a behavioral economist at Duke University.

This has huge implications for real estate agents. Customers don’t always know what they want, and it turns out that

many homebuyers may work against their own interests in spite of themselves. We have the general idea that people make good decisions, but they tend not to, Ariely said.

Whether it is texting while driving or having unplanned romantic hook-ups, people make bad decisions all the time.

So how does this behavior apply to real estate?

Ariely said, “Housing is one of the most difficult decisions anybody makes.” REALTORS® must understand buyers’ mindsets and the elements that will apply to their decisionmaking process. The way to understand all that is by asking probing questions of your clients so you have a frame of reference for their goals. “The moment you start asking people questions, they start considering” the possibilities of where they might live, Ariely said.

For example, if they choose to buy a smaller house, that might enable them to afford more vacations. If they choose a bigger, more expensive house, their lifestyle will be different.

Either way, consumers have to make tough decisions during the home-buying process. The REALTOR’S® goal should be: “How can you take a good experience and make it better, and how can you take a bad experience and make it not so bad?” Ariely said.

Furthermore, agents need to be more proactive to let their customers know all of the efforts they are taking to help them on their quest to buy a new property. “When we get something, we don’t just think about the outcome, we think about the effort that went into it,” he said. In other words, show clients that you’re working hard and they will feel it.

Mike Fenner is the editor of The Residential Specialist.

GADGET INSPECTOR

COMPUTE TWO WAYS WITH THE HP STREAM X360

THE NEW APPLE TV IS REVOLUTIONIZING HOME ENTERTAINMENT The future of television has arrived. Apple announced the new Apple TV in September, and it’s packed with new features. For starters, there’s a fresh new remote that relies on touchscreen navigation, and also uses Bluetooth so it’s not necessary to point it at the screen. It also has SIRI voice navigation to help you find your favorite show, and new functions including an all-new App Store and Apple Music built in. Of course, it still has HBO, Showtime, Hulu, Netflix and a host of other applications for your entertainment ensemble.

For more information, visit apple.com/tv.

Starts at $149.

If you’re looking for the power of a laptop coupled with the convenience and portability of a tablet, check out the HP Stream x360. This device, a laptop with a touch screen that flips backwards, is on the market for less than $300. The 360-degree hinge offers multiple modes, including notebook, tablet, stand and tent. It also comes with For more information, visit Microsoft Office 365 and, when you buy it store.hp.com. Starting at $269.99. online, free cloud storage.

THE LINKSYS WRT1900AC DELIVERS LASER-FAST WI-FI There’s only one quality you want with your Internet service — fast speed. The Linksys router is the fastest on the market, with four high-performance antennas and a 1.2 GHz dual-core processor.

Not only does it deliver lightning-quick Wi-Fi, it also has four ethernet ports if you prefer a wired connection. As an added bonus, it comes with the Linksys Smart Wi-Fi app, allowing you to control your network, monitor activity and create separate For more information, visit networks — all linksys.com. Starting at $249.99. from your phone.

20 15

The Council of Residential Specialists

crs.com

11

Nov Dec

[inside track]

what’s trending in real estate

home

WORK

More and more professional REALTORS® are working from home. Here’s what you need to know about setting up a home office for maximum productivity.

By James Cappio

Ø

According to a 2014 New York Times article, the telecommuting population rose 79 percent between 2005 and 2012.

The Census Bureau’s American

“ I m more productive without the coffee-pot complainers and the broken copy machines.”

—Marylea Todd, CRS, CIPS

Nov Dec

12

The Residential Specialist trsmag.com

20 15

Community Survey, which the Times story relies on, doesn’t break out occupations any more finely than “finance, insurance, real estate, rental, and housing,” so we can’t tell how many REALTORS® are telecommuting, but there is no doubt they are sharing in that increase.

There’s a lot to recommend working from home. Marylea Todd, CRS, CIPS, of Prudential California Realty in Brea, California, has had a home office for over 10 years and uses the brokerage office only for client and company meetings. She says, “I’m more productive without the coffee-pot complainers and the broken copy machines.” Marsha Sell, a CRS and e-PRO in Marietta, Georgia, revels in the convenience

of having access to all of her documents 24/7. “A home office means I don’t have to go out in the middle of the night to retrieve a file.”

But all this comes with a caveat: To be productive in a home office, you need the right setup, the right equipment and the right attitude.

Find a Dedicated Space

Avoiding distractions is crucial to working productively at home. Having a dedicated room for the home office seems to be a key to making it work. Lori Peters, CRS, ABR, at Windemere/RE Valley in Spokane, Washington, says “It’s important to have a door you can close.” Marsha Sell incorporated a home office with built-in shelves and filing space when building her current house. Rod Tuazon, CRS, of Troop Real Estate in Ventura, California, notes that in addition to avoiding

distractions, a dedicated private home office space is essential if you want to hold client meetings.

It’s equally important to avoid distractions at the computer. For those who are too easily diverted

by Facebook and Twitter, there are programs that can block the Internet on your computer, of which the best known is probably Freedom (freedom.to/hello; basic plan: free).

Be Tech Savvy

Much of the office tech you’ll need is obvious. But in addition to a computer, printer (laser for documents, plus color if you send out brochures, as Rod Tuazon does), and a fast and reliable Internet connection, many successful work-at-home REALTORS® have deployed other hardware.

An iPad or other tablet can have important uses, especially on the road. For example, Rod Tuazon uses Visual Tour to give clients a virtual tour of properties. Marylea Todd brings hers to client meetings, which, as she says, “the younger generation prefers to have at a Starbucks.”

The most useful tool, perhaps surprisingly, turns out to be a

scanner. According to Marsha Sell, “the best investment I ever made in office equipment is my compact Fujitsu scanner.” Scanning documents allows for easier storage, better protection against loss (with a backup, of course) and perhaps most important, the ability to integrate with other technology such as electronic signatures and filesharing services such as Dropbox.

In addition, software designed especially for REALTORS® can be very helpful in the home office. For example, Marylea Todd relies on SharperAgent for contact management; Rod Tuazon uses Top Producer for the same purpose.

The Need for Discipline

The flexibility and convenience of a home office make it an ideal work arrangement for those who have the discipline to make it work. Contrary to the opinions of many home-office gurus, it’s not necessary to keep business hours—night owls like Marsha Sell do just fine—but it is necessary to put in a full work day. That means no binge-watching favorite TV shows; as Rod Tuazon mischievously puts it, “block in some

THE KILLER APP “Cloud” services (file-sharing services that allow a user to sync and share files on a variety of devices) may be the most useful innovation going for home-office workers. There are many competing cloud services, but Dropbox is the clear favorite. Successful REALTORS® with home offices use Dropbox in many ways. Rod Tuazon says that with the use of his scanner and Dropbox, he has implemented the long-sought ideal of the paperless office — so much so that he shreds his hard-copy documents after a closing: “I wouldn’t be able to make my home office work” without the combination of a scanner and Dropbox. Marsha Sell uses it to transmit documents between her home office and her outside office.

Marylea Todd says: “I’m able to work in partnership with my daughter, who is based in a different town, because Dropbox permits us to share documents seamlessly.” time for work.” Just as in a regular office, REALTORS® who can keep that focus will flourish.

James Cappio is a freelance writer based in Toronto.

For more information, read The Home Office that Works — 2015 edition, available at Amazon.com.

elementary deductions As Rod Tuazon observes, “Many REALTORS® are either not aware of the home-office deduction or don’t take it,” perhaps because they think it’s a “red flag” to the IRS. In recent years, though, the red flag issue has become less of a problem. In fact, last year the IRS introduced a “simplified option” for returns filed beginning in 2014, a flat deduction of $5 per square foot of office space to a maximum of 300 square feet, or $1,500. If instead you want to take the deduction by the old-fashioned “regular method,” there are two key requirements: ÄÄ You must regularly use part of your home exclusively for conducting business. ÄÄ You must show that you use your home as your principal place of business, i.e., that you conduct business

“substantially and regularly” there.

There are extra requirements if you are not selfemployed. If you meet the requirements, you can deduct a percentage of your rent or mortgage, as well as other business expenses (such as a phone line used exclusively for business) based on the percentage of your home used for business.

The IRS doesn’t require any particular method or recordkeeping, but suggests that you keep checks, receipts and other evidence of business expenses. Your records must show your expenses and depreciation, as well as how you meet the requirements for taking the deduction.

If you want to take the deduction, consult with your tax adviser about your eligibility and the requirements.

20 15

The Council of Residential Specialists

crs.com

13

Nov Dec

[window of opportunity]

strategies to grow your business

HOLIDAY

finery

The weather might be frightful, but the market is delightful for motivated agents.

buyers may browse home listings while they shop for Christmas gifts.

Despite a motivated market, many clients still prefer to wait until February to sell. The resultHas the local real estate market ground ing inventory shortage means less competition to a halt during the year-end holidays? It for holiday sellers. “Clients [sellers] who wait are doesn’t have to be that way. While the competimissing a good opportunity,” says Southwest tion is distracted by the holiday festivities, it’s Florida-based REALTOR® Denny Grimes, CRS. a great opportunity to celebrate with successful “People who keep their hooks in the water beneclosings. Although it may take some creative fit because there aren’t as many hooks.” scheduling to balance personal commitments Ann Buchanan, CRS, a REALTOR® for with showings, listing a home during the holidays can yield nice gifts for both REALTOR® Keller Williams based in middle Tennessee, says agents should price homes to sell during and client alike. the holidays. “Homes don’t typically move as Although the number of prospective buyers quickly in the winter, so if a client doesn’t have tends to diminish between Thanksgiving and New Year’s Day, those shopping for a home have much time, price the home aggressively,” she purpose and often a deadline. “Buyers who look says. “Price is the best marketing tool we have.”

Grimes adds that accurate, if not aggressive, at this time of the year are serious,” says Aurora, pricing alleviates the need for a second photo Ohio-based REALTOR® Kathleen Novak, CRS, shoot. “Photos of the Christmas tree in July are of Howard Hanna Real Estate Services. “Buyers, not a good thing!” he says. like all of us, are pulled in so many directions The spirit of the season may also ease negotiaduring the holiday season. You know when an tions. “If someone is difficult to work with most appointment is made to show your house that of the year, they will be less difficult during the the buyer is ready to move.” holidays,” Grimes says with a laugh. “People will Investors, people relocating for jobs, and international buyers ensure a year-round buying generally give you more grace and cooperation.”

Scheduling around holiday parties, family season. In addition, much of the U.S. population commitments and other seasonal obligations works longer hours and spends more time on requires such cooperation. Buchanan discusses their computers and smartphones. Prospective

By Heather R. Johnson

Ø

BY THE NUMBER S Percent increase in single-family home sales in Q4 2014 compared to Q3:

7%

Percent increase in single-family home sales in Q4 2014 compared to 2013:

4

%

Source: HUD PD&R National Housing Market Summary

Nov Dec

14

The Residential Specialist trsmag.com

20 15

time commitments with her clients up front.

“We know these are busy times for everyone, but clients do need to have their home ready to show, especially on the weekends,” she says.

Novak agrees. “I always tell clients to make themselves as available as possible,” she says.

“If there are times that they absolutely can’t show their home, we block them out.”

The darker winter months, however, naturally lend themselves to a lighter weekday schedule. “People don’t tend to look at houses after dark,” says Buchanan. “Usually I’ll suggest Saturdays and Sundays to my buyers. That way we don’t intrude on somebody’s after-work holiday party.”

Deck the Halls, but Not Too Much

Homeowners like to decorate for the holidays, and agents need not prevent them from doing so. “The decorations, the smell of cookies baking and the Christmas music, all appeal to the emotions,” says Novak.

“I give grace to owners with children and visiting grandchildren that have their home decorated, but a Christmas tree on November 1, or worse yet, in February, is unacceptable,” says Grimes. “The window of acceptance for lesscelebrated holidays, such as Halloween and the Fourth of July, is far narrower.”

If a client goes overboard with the décor, an agent can tactfully ask them to tone it down.

“What one person sees as decoration, an agent or prospective buyer might see as clutter,” says Novak. “Gently let the seller know that the person coming to see the house wants to picture it

as their own, so maybe we need to tone down the collection of 500 Santa Clauses.”

Cookies for Clients

Although a jumbo, inflatable snowman on the front lawn may distract a prospective buyer, other holiday-themed touches can enhance an agent’s marketing plan. During the holidays, let your generosity shine. Cookies and hot chocolate can charm prospective buyers.

Buchanan sometimes serves hot cider and creates themed marketing materials for a “Holiday Open House.”

“Traditional advertising is not as effective this time of year,” says Grimes. “Invest the money you would spend on a newspaper ad into a more personal one-on-one approach. Bake cookies for clients. Invite families to the office and let the kids sit on Santa’s lap. Let your customers know that you’re thinking of them, because you are.”

“The holidays are a time when agents can personally thank clients for their contributions for the year,” adds Novak. “They should also keep looking for new ones. Take your business cards along and talk about real estate at every party or event. The fourth quarter is the time to make sure the pipeline is filled for January and February.”

The year does not have to slow down at the end.

With a motivated market and less competition, agents can celebrate the season with stellar sales.

Because, as Novak says, “A house never looks better than when it’s dressed up for the holidays.”

Avoid overtly religious themes.

People celebrate the season in different ways.

—Denny Grimes, CRS

For more information about listing a home during the holidays (or any time), check out Listing Strategies for the Residential Specialist (CRS 201). Information available at crs.com/ education.

Heather R. Johnson is a freelance writer based in Oakland, California.

just the right seasoning

Decorate with subtlety. A Christmas tree or a wreath are OK, but not a truckload of garland.

“ PEOPLE WHO KEEP THEIR HOOKS IN THE WATER BENEFIT BECAUSE THERE AREN’T AS MANY HOOKS.”

Keep these tips in mind to win over holiday shoppers:

Don’t ignore the exterior. Barren trees expose more of the home. Touch up the paint, tidy up the yard, and clear steps and walkways of ice and snow.

Add warmth. Offer tea, cider or hot chocolate for chilled buyers. Play soft music and keep the heater on.

20 15

The Council of Residential Specialists

Don’t stress. One unwashed plate or cookie crumb will not kill the sale. People tend to empathize with holiday busy-ness.

crs.com

15

Nov Dec

Point Honors & Assocs., Atlanta, Georgia

TIM HUR, CRS “ It wasn t designed this way, but all the agents in our office speak more than one language — we speak five languages in total — so we are able to assist a healthy number of international clients.”

What prompted you to pursue a CRS Designation?

In my role as the NAR liaison for South Korea, I appeared on a CRS panel discussion and a radio show about how to do business with the international Asian market.

I subsequently found out that all my mentors had the CRS Designation. I consider them the “best of the best in real estate.” I was so impressed with their successes as CRS Designees, I decided I had to pursue that, too.

Nov Dec

16

What goals for your firm take the highest priority?

I own a boutique firm with seven full-time agents, including myself. At any given time, we are working with a limited book of clients, most of whom are referrals. I do not see a small client base as a problem, because for us, customer service and satisfaction are our top priorities. Being a smaller firm, we can shift quickly to meet challenges or changes in the market that we know are coming. We are small and nimble, and that actually helps us serve our clients. It wasn’t designed this way, but all the agents in our office speak more than one language — we speak five languages in total — so we are able to assist a healthy number of international clients.

A language barrier should never be a barrier to home ownership or real property ownership — something that is part of the American Dream.

The Residential Specialist trsmag.com

20 15

Your website features some multimilliondollar estates. Are those the kinds of properties your international clients are particularly interested in?

Many of our international clients are first-time buyers or first-time buyers in the U.S., and home ownership is something new for them. And because of the specialized help we can give them, they’re even more grateful at the conclusion of a transaction.

What special help do you offer?

Because our firm happens to be multilingual, we can help international clients with the unique challenges of finding lenders willing to work with them (for instance, they might not have social security numbers or need a foreign loan program) and other professionals who speak their language.

However, setting aside the international part of our business, several of us are millennials, including myself, and thus have insights into that group of buyers. They are looking for someone who is willing to provide explanations about the home-buying process, etc. Luckily, average prices in the Atlanta area are within reach and we can show fellow millennial buyers that since homes are relatively

affordable, it’s a good time to get started. You open the door, explain the benefits of home ownership and point out that they probably do not want to live in their parents’ basement forever. As a group, millennials are more concerned about whether or not they are going to stay in a particular city.

We show them that if they’re staying for a while, it makes sense to buy versus rent.

What kinds of things do you do to let people know about your firm?

Community service is very important to us and each one of us serves on several different boards. I was the Immediate Past President of the Atlanta Metro Chapter of the Asian Real Estate Association of America, and another agent in the office is a member of the National Association of Hispanic Real Estate Professionals. We are involved in our community, getting our hands dirty. I am also the President of the Mosaic Rotary Club this year.

It’s a lot of work, but it’s a lot of fun to give back to the community — we have to pay it forward. When you are more involved in the community, that brings more people to you and everyone begins to understand what motivates you.

How do you see your role in your firm besides being the owner?

From day one in my real estate career, I’ve always been blessed to be surrounded by my mentors, so I always take the time to mentor as well — in real estate and in my personal life.

I believe, like my mentors, if you build the right culture and the right community within the firm, people will stay with you — we’re all like a family. If you are doing it right, it’s definitely an intimate relationship— you’re opening yourself up and sharing yourself.

What about CRS involvement?

Everyone really needs to be involved with CRS on the local and state level, as well as the national level. Hands down, it’s simply the most prestigious designation in our business — I am always encouraging all my agents to pursue their CRS once they accrue enough experience.

That being said, I’ve said it before, but some of our clients don’t care what our designations are — we need to be THE experts in our constantly changing field so we can serve our clients to the best of our ability. I’m also a firm believer in being professional and nice, not only to our clients but to one another as well. Experience is what really matters.

Tim Hur achieved his CRS designation in 2014. He can be reached at 404.512.2322 or at www.pointhonors.com.

Photo: Gregory Miller

[peer to peer]

profiles of people to watch

Tim Hur, CRS, goes the extra mile when working with first-time buyers, whether they hail from overseas or around the corner.

20 15

The Council of Residential Specialists

crs.com

17

Nov Dec

Z life on the

The number of U.S. homes listed on Zillow.com database, including homes for sale, homes for rent and homes not yet on the market

Average monthly unique users during the three months ending December 31, 2014

Number of mobile apps included in the Zillow suite, including real estate, rental, mortgage and home improvement apps

Nov Dec

18

The Residential Specialist trsmag.com

20 15

Number of agent reviews published on Zillow

trade

winds

[feature]

Nearly 10 years after Zillow revolutionized the online home search process, some REALTORS® are still reluctant to embrace the market’s new reality.

By Regina Ludes with Donna Shryer

Ø

Percentage of traffic that comes to Zillow through mobile devices

Number of mortgage loan requests submitted by consumers in Zillow Mortgages

Since its launch in February 2006, Zillow has brought the home-search process online, making it easier for consumers to shop for homes. Some agents welcomed the company’s innovations, while others have had difficulty accepting the transition to an online format that appears to minimize the REALTOR’s® role. Further, claims of inaccurate home-value Zestimates and outdated listing data have left many agents feeling frustrated. But since buyers and sellers continually look to Zillow for home-listing information, agents have been forced to adapt.

Whether using Zillow’s tools to edit their own listings, increase leads or jump-start realistic discussions about home values with clients, savvy REALTORS® have learned to work within — and sometimes around — Zillow to position themselves as local market experts.

Working the Zillow system to benefit your business is well worth the effort. With Zillow Group boasting around 141 million unique monthly visitors to its consumer brands — including Zillow and Trulia — it appears that the Internet real estate information site is here to stay. In fact, Zillow is today the most heavily trafficked real estate website in the world, changing the way people buy, sell and rent homes.

Therefore, suggests Shohreh Woessner, CRS, broker with Coldwell Banker Select in Tulsa,

Oklahoma, rather than discount Zillow — and risk putting off clients who delight in quoting the real estate database — the smarter approach is to review Zillow’s tools and features, play up the site’s attributes and help clients see its sketchier elements. As Woessner puts it, “I am going to use Zillow; I’m not going to let it use me.”

Lead the Way

Zillow’s Premier Agent advertising program provides tools and features to help agents trigger more leads and drive traffic to their business website. These advertising packages may include higher placement in the Find an Agent section on Zillow’s website, and ad placement on Yahoo! Real Estate and on several of Zillow’s mobile apps. Premier agents pay a monthly fee based on how many leads their ads generate in a given month and the ZIP code attached to the ad.

Although it sounds foolproof in theory, the Premier Agent advertising program leads can be hit or miss, Woessner cautions. “Some leads are fence sitters, some are curious browsers and others require a lot of qualifying questions before an agent can move forward. I’ve also had a few leads with wrong phone numbers or invalid email addresses.” The upshot, Woessner adds, is that Premier Agent can devour valuable time and resources if you’re not careful.

20 15

The Council of Residential Specialists

crs.com

19

Nov Dec

[feature]

trade winds

The Zolution not second mortgages. Without the Here are a few pointers to maximize second mortgage data, the algorithm Zillow Premier Agent results and is inaccurate. decrease wasted time on false leads.

The truth is, even Zillow deems their ÄÄ Choose a pleasing, professional photo.

Zestimates to be only rough estimates. In Candid, black-and-white shots may be plain view on its website, Zillow boldly sexy, but remember, these are small proclaims: “The Zestimate® home value photos — even smaller when viewed is Zillow’s estimated market value for on a smartphone — and they need an individual home and is calculated for to snag the viewer’s attention in a about 100 million homes nationwide. It is nanosecond. a starting point in determining a home’s ÄÄ Score a five-star rating by asking five value and is not an official appraisal.” to 10 highly satisfied former clients to That said, Zestimates are frequently write a stellar review about you. Zillow used by shoppers, sellers and buyers to provides a dedicated link to make learn about neighborhoods as a “starting submitting reviews simple. point” to see if a community is within their economic reach. ÄÄ Illustrate your prolific success by adding completed transactions to your Zillow profile when they close, which The Zolution immediately ups your prominently To put Zestimates in their place, displayed “recent sales” figure.

REALTORS® need to establish themAlso, to gain maximum traction from selves as the ultimate pros who know your Premier Agent advertising dollars, how Zestimates can benefit clients but Zillow’s Premier Agent advertising be prepared to act fast when a lead also mislead clients. program provides tools and features reaches out — preferably within 5 minFirst, REALTORS® need to expect the to help agents trigger more leads and utes. In today’s fast-paced world, people expected.

Clients overwhelmingly arrive drive traffic to their business website. won’t wait long for your reply before with Zestimates in tow, and there will reaching out to another agent. A quick often be a frustrating disconnect in the reply also helps you maintain a manageable list of leads. client’s mind between Zestimates and actual home prices. So If the contact information results in a bogus phone numyou need to study how Zestimates are calculated and be able ber, you can delete the lead immediately. If someone offers to explain — in layman’s terms — how and why Zestimates ambiguous or evasive replies, it’s likely a curious browser, are riddled with errors. Simply saying, “Oh, that’s wrong,” and you can move that lead off your “hot” list. won’t cut it.

And it’s a good idea to know what your clients think they Finally, don’t hesitate to lean hard on your Zillow rep to know. For this reason, Jeff Dowler, CRS, a broker with Soluhelp get the most out of Premier Agent. “My rep reminds tions Real Estate in Carlsbad, California, outside San Diego, me of things I need to do, things I need to follow up on,” routinely consults Zillow’s site before meeting with clients — Woessner says. “As a referral-based agent, I’m not a big fan so he knows what Zillow is reporting. “As real estate proof reviews. But he explained to me, ‘How can you get more fessionals, we need to spend time looking at the site and referrals if you don’t build your reviews?’” understanding the consumer’s experience with it. Then we can talk intelligently about the data and what it means for It’s Anyone’s Guess them,” Dowler advises.

It’s no secret that Zillow’s Zestimates reside within a swirl Of course, a nice tight bar graph that illustrates Zestimate of mixed reactions. REALTORS® typically say these home inaccuracies is even better. So Dowler conducted his own values are based on outdated, third-party data — dubbing the numbers gibberish. On the other hand, buyers and sellers telling analysis, reviewing the 20 most recent home sales in two San Diego ZIP codes and comparing their final sales love their Zestimates — often quoting them as gospel. prices with the corresponding Zestimate. He found that Many REALTORS® say the problem stems from the way Zestimates are calculated. “Zillow creates its Zestimates while some properties had minor discrepancies — around using an algorithm based on third-party data, such as 4 to 6 percent — many others were off by as much as 20 perproperty-tax records. If the third-party data is outdated, cent. “Consumers assume that if they see something online, it affects the accuracy of the algorithm,” says Woessner. it must be true. I tell people that it’s okay to refer to Zillow, In Oklahoma, for example, Woessner explains that only but don’t use the Zestimate to make an offer or settle on a primary mortgage data is provided on property-tax records, list price,” he says.

Nov Dec

20

The Residential Specialist trsmag.com

20 15

trade winds

[feature]

The Zestimate home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide.

explanation worth sharing with your Zillowloving clients. “Representatives from Zillow do not personally walk through your house to observe its quality and condition firsthand.

This is a very important point because without having firsthand knowledge on the quality and condition of a home, it is difficult, if next to impossible, to estimate a value.

—Jeff Dowler, CRS “In Zillow’s eyes your home is no better in qualHuman Interest ity than the next house. It doesn’t matter if you have exotic There’s little hope of Americans’ fascination for Zestiwood or marble finishes or if you have custom-built kitchen mates going away anytime soon. According to Brian Rayl, cabinets. An appraiser who walks through your home will in a recent Inman News article, Love it or hate it, Zillow rate your home on a scale from Q1 to Q5 to determine a is here to stay, the author cites a strong argument as to precise level of quality, which can then be more accurately how Zillow continues to captivate homebuyers, sellers and compared with the comparable sales that are used in the renters. “When the president of the United States wanted report. Adjustments are made based on the differences in to conduct a forum on the current housing market, did he quality level.” call NAR (the National Association of REALTORS®) to set Without a REALTOR’s® guidance, a client may very well it up? No. Instead, Barack Obama sat down with Zillow CEO misunderstand, or worse yet, grossly underestimate, the Spencer Rascoff. When it comes to branding, Zillow has appraiser’s vital and superior role in determining a home’s done its homework. Zillow is near the top of the first search realistic market value. engine results page for just about any real estate term or search. When Google trusts Zillow that much, why shouldn’t Money Matters the consumer?”

Further tethering Americans to Zillow is the website’s DIY mortgage pre-approval calculator, which promises that The Zolution hopeful homebuyers can “Get pre-approved for a mortgage in Diluting this sort of endorsement — and bringing the focus minutes by a lender near YOUR CITY HERE.” back to the REALTOR’s® expertise — often comes down to According to Paul Hagey of Inman News: “The tool, that old adage: seeing is believing. For example, when a available on both Web and mobile, prompts homebuyers to client argues that a home’s asking price and its Zestimate complete a short questionnaire about their income, credit span a $50,000 to $100,000 gap, book a walkthrough to score and monthly debt that gives them an estimated prephysically view the reasons for this price split. One illustraapproval loan amount. tion generally proves the point.

“If they’re interested in continuing the process after seeing And if a client asks what Zillow can’t see, Tom Horn, that estimate, users enter their name, email address and Birmingham, Alabama Real Estate real estate appraiser phone number, which makes their loan inquiry immediately and blogger (birminghamappraisalblog.com) offers an available to lenders in the Zillow Mortgage Marketplace.

“ Consumers assume that if they see something online, it must be true. I tell people that it s okay to refer to Zillow, but don t use the Zestimate to make an offer or settle on a list price.”

In 2014, Zillow increased its annual revenue 65% to a record $325.9 million. Its marketplace revenue increased 73% to $267.2 million, and display revenue increased 37% to $58.7 million.

2011 2012 2013

$

Annual Revenue (in millions)

66.1 $

116.9 $

197.5 $

2014

20 15

The Council of Residential Specialists

crs.com

325.9

21

Nov Dec

Source: Zillow Group

BY THE NUMBER S

[feature]

trade winds

Total number

Lenders can then pull of Zillow employees potential borrowers’ credit scores and, if they meet the lenders’ standards, send them a pre-approval letter they can print or email.”

The problem is that many more in-depth evaluation factors beyond those entered into Zillow’s calculator go into a mortgage approval. However, if the buyer gets the coveted “goodto-go,” all sorts of conclusions, emotions and expectations kick in, which can skew the relationship between buyer and REALTOR®.

The Zolution

If a buyer insists on using Zillow’s mortgage pre-approval calculator, it behooves the REALTOR® to stress that this is only a starting point. For a true assessment of where a buyer stands, a legitimate loan officer needs to be on board — preferably a trustworthy and well-recommended loan officer.

And the best place to get that sort of recommendation is from you — as an experienced REALTOR®.

Of course, you want to make it clear that you are not a lawyer, appraiser, financial adviser or tax adviser, but because of your experience, you can provide general background information in each of these areas, and offer referrals for mortgage brokers as well as banks known to be competitive in the area and most likely to get a mortgage closed. The tips and insights you bring to the table help solidify your position as the buyer’s go-to resource for reliable information and, in many cases, overshadow Zillow’s hold on the buyer.

Play It Cool

The bottom line is that REALTORS® need to accept that Zillow is a major factor in the homebuying and selling process, and fighting it is futile. It is possible, however, to play nice with Zillow and along the way lead clients to see how your wealth of knowledge and experience augments Zillow — taking the home-buying and selling process to a far less stressful and more successful level. It’s the way Jim Wilcox, CRS, a broker with Columbia River Properties in The Dalles, Oregon, works around Zillow. “When reviewing a home’s data, sellers tend to believe their house is worth more than it really is, and buyers get a false impression of what’s on the market,” Wilcox says.

“It’s frustrating to be on the phone with a client who is looking at a property on Zillow, and I look it up in the local MLS only to find it was sold six months ago.”

Nov Dec

22

The Residential Specialist trsmag.com

20 15

Wilcox uses the client’s frustration to segue into the ways he, as an experienced broker, can help explain the intricacies of the local market and offer reliable search alternatives.

For example, he often suggests that consumers search franchise websites and some small independent agencies such as Wilcox’s company Columbia River Properties, which link directly to the local MLS. Clients can also search Number of for properties on employees RMLS.com, the public let go due to site of the Pacific Zillow-Trulia merger in 2015 Northwest regional MLS, which is continuously updated.

As for Zillow, the company is trying to address agents’ concerns about the Zestimate. After canceling its agreement with Listhub, which fed listings to Zillow’s site, the company has aggressively pursued agreements with individual MLSs for direct feeds of their listings. As of early August, more than 300 MLSs have signed deals with Zillow. Earlier this year, it launched its data dashboard, a recording and listing management platform that allows agents to edit their own listings as they appear on Zillow.

Woessner, who has used the platform, believes it’s a step in the right direction. “At least I know buyers are seeing the most current data on my listings,” she says, adding that she edits her listings on Zillow every time she updates them on the MLS. Zillow claims to be working on additional upgrades, although what those changes are remain vague. For now, it’s best to accept Zillow’s presence, recognize its influence and find ways to use Zillow to benefit your business.

And remember that agents still play a key role: According to the NAR 2014 Profile of Home Buyers and Sellers, “While the vast majority of buyers use the Internet during the homebuying process, the Internet does not replace the real estate agent in the transaction. Ninety percent of homebuyers who used the Internet to search for homes purchased their home through an agent. In fact, buyers who used the Internet were more likely than those who did not use the Internet to purchase their home through an agent.”

Agents still play a key role in most Learn how Zillow calculates its home sales transactions.

Regina Ludes is a freelance writer based in Chicago. Donna Shryer contributed to this story.

“Zestimate” home values at www.zillow. com/zestimate.

perfect

practice

[feature]

shouldking u o y t Wha when wor know amilies with with f children young n n Mor a

By Gw

e

Ø

When Michelle Blue, CRS, sees cluttered kids’ bedrooms in her sellers’ homes, she pulls out a contract. But it’s not a typical sales contract. As a lead REALTOR® on Windermere Real Estate/ HLC’s The Blue Team in Woodinville, Washington, Blue has a standard agreement she has drawn up that helps get young children involved in the process when their parents decide it’s time to move.

“If the parents are okay with it, I have the kids sign a cute little onepage document that says they will

20 15

The Council of Residential Specialists

crs.com

23

Nov Dec

[feature]

perfect practice

help keep their rooms clean and help pick up when they’re asked to do that,” she says. If they stick to their end of the bargain — and, in the end, even if they don’t — they get a $25 gift card to Toys ‘R Us, Old Navy or some other retailer when the home is sold.

The 2014 National Association of REALTORS® Home Buyer and Seller Generational Trends report identified a trend of Gen Xers and Gen Yers moving into larger, higher-priced homes. Sometimes they move because of work, while other times it’s to be more comfortable as their families grow.

But selling a home when young children live there can be a tremendous challenge. From keeping the home in show-ready shape to navigating nap times, experienced REALTORS® have learned several tricks to make the process easier.

Build rapport. Remember that the home-selling process is disruptive and can even be a bit scary for children, says Ginger Orem, CRS, a REALTOR® with Crown Real Estate AK. Inc. in Fairbanks, Alaska. Make an effort to win over the children and get them to feel comfortable with you while maintaining your professionalism, she says. Be sure to greet them and answer their questions, while not being overly affectionate.

“It’s important to connect with the children while not offending the parents,” says Orem. “Children may come up and hug you, but you always have to keep in mind that everyone is different and has different preferences. You want to be sure to respect that.”

Remove personally identifying items. One of the first steps in any home-selling process is to pack away photographs and other personally identifying items, but this is particularly important for families with young children, Orem says. In addition to creating a “clean slate” where prospective buyers can see their own families, it protects children’s identities, she says. Children’s artwork or sports trophies should also be packed away. Orem says this can be upsetting for children, so it’s important to explain that the items are only being packed away for safekeeping. If that’s the case, allow the children to participate in the process by choosing one piece of artwork that can be framed and remain on display, she says.

Use staging and quick storage. Staging can help families come up with strategies for keeping the house uncluttered, including finding attractive yet functional ways to store toys, Blue says. She and her business partner, Ashley Farrington, stage every home they list, with remarkable results for most sellers, she says.

Having bins available also helps.

Blue sometimes lends her clients brightly colored toy bins and beautiful wicker baskets for easy toy storage when a prospective buyer is coming for a showing.

Kimberly Cameron, CRS, a listing and relocation coordinator with RE/MAX Properties West, Ballwin, Missouri, counsels her clients to talk about donating some toys in addition to putting them in storage. Virtually every family selling a home has too many toys, and giving children the power to choose toys that they’ll give to children who are less fortunate is a good lesson in charitable giving that also helps with the selling process, she says.

“It lets the kids participate. They get to choose what toys they want to give instead of someone choosing for them,” she says.

Keep distractions on hand.

Orem has a bean bag chair that she brings to her office, along with a few toys to help keep kids occupied while she’s meeting with their parents. She even lets them use her iPad, which has kid-friendly apps loaded, and keeps games in her car so she has them on hand

“ It s important to connect with the children while not offending the parents. Children may come up and hug you, but you always have to keep in mind that everyone is different and has different preferences. You want to be sure to respect that.”

—Ginger Orem, CRS

Nov Dec

24

The Residential Specialist trsmag.com

20 15

perfect practice

when kids need a brief distraction.

Always be mindful of choking hazards when you’re choosing toys for young children, Orem cautions.

Cameron uses the power of food as a distraction, such as bringing pizza if she’s coming by the house in the evening. However, she suggests checking with the sellers first and also finding out if anyone in the home has food allergies that need to be accommodated.

Have an escape for sellers.

It’s important for sellers with young children to leave the house during showings, Orem says.

Young children may be frightened by strangers coming into the home,

or prospective buyers may be a distraction. Work with sellers to be sure they have an accessible place to go during showings, such as a friend’s or relative’s house, the library or other location.

Abide by schedules. Family schedules may include nap times for young children, as well as times when they’re getting on or off the school or camp bus, and these times need to be accommodated by the showing schedule. “But our market is a buyer’s market and you want to be sure you do whatever you can to avoid missing a showing,” Orem says. She uses the Multiple Listing Service to

Home showing with young children can present a unique set of challenges. Here’s how to keep the process as easy as possible when the kids are along for the ride.

❶ Limit daily showings

Michelle Blue, CRS, a REALTOR® with Windermere Real Estate/ HLC in Woodinville, Washington, never shows more than four or five homes to families who have small children with them because the showings become overwhelming for the kids, which makes it hard for the parents to focus. If she’s working with a couple who must do more, such as a family only in town for a day or two to scope out homes for a relocation, she hires a trustworthy babysitter.

❷ Go early

Early showings are the best bet whenever possible. “Tours in the morning are generally more successful than the afternoon because it’s not as hot, and the children aren’t missing nap time,” Blue says.

❸ Keep toys on hand

Ginger Orem, CRS, a REALTOR® with Crown Real Estate AK. Inc. in Fairbanks, Alaska, has toys in her car and also gives

[feature]

manage expectations about showing times, asking for a certain amount of notice or stating preferred showing times, such as “9 a.m. to noon and 2 to 5 p.m. or by appointment.”

That gives the families the time they need and also allows the prospective buyers to determine times that work for them.

Keeping a home in show-ready condition while young children live there can be a stressful process.

But most REALTORS® agree that with proper planning, organization and family cooperation, the process can be smoother and the home will sell faster.

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

children little note pads and pencils so they can take notes just like their parents. The note pads can also be used for doodling and coloring. Blue always has individually wrapped snacks, car travel games, paper, markers and a first aid kit with children’s character bandages in the car to keep them occupied and to easily handle any little mishaps.

❹ Use a scout

Kimberly Cameron, CRS, a listing and relocation coordinator with RE/MAX Properties West in St. Louis, Missouri, once worked with a family that was touring homes with six children. She accompanied one of the parents — the pickier one — to check out the property first. “If it was a dud, so there was no sense in everyone getting out of the car,” she says.

❺ Keep children with you

From fragile keepsakes to vicious dogs and pet tarantulas, Orem has seen it all in sellers’ homes. As a result, she’s very careful about watching younger children and making sure they don’t break anything or find something that can hurt them while on a home tour. “The REALTOR® should go in first to be sure that everything is safe, and then everyone should work together to watch the children,” she says.

20 15

The Council of Residential Specialists

You can find a host of children’s activity books, perfect for the backseat of the car or the real estate office, at amazon.com.

crs.com

25

Nov Dec

Nov Dec

26

The Residential Specialist trsmag.com

20 15

dwelling

points

[feature]

Thomas Paine House, Paine & North Avenues, New Rochelle, New York; built 1793.

Ralph S. Izard House, 10 Pell Street, Newport, Newport County, Rhode Island; built c. 1850.

John Morris Cottage, 2500 East Grace Street, Richmond, Virginia; built 1830.

Ø

Historic homes come in every shape and size from the Getting Comps most basic bungalow to the grandest mansion. What Pricing historic homes, as with almost any residential real they share is a certain historic sensibility based on design, estate, frequently relies on recent comparables. But that only location or owner provenance. goes so far since every historic home has its own unique “According to the Park Service, U.S. Department of the characteristics that may influence price.

Interior, a property usually has to be over 50 years old to be Wanda Fears, CRS, Best RVA Realtors, Richmond, Virginia, considered historic,” explains Michelle Drum, CRS, associate frequently sells properties in Richmond’s historic Fan broker with Gustave White Sotheby’s International Realty, District. She says that you often have to look at what sold Newport, Rhode Island. Drum has a degree in historic preson that same block or an adjoining block to set a price. “If ervation from Columbia University and lives in a Nationally the whole block has been redone and every house has curb Registered 18th century converted schoolhouse. She has appeal, that alone adds value,” she says. specialized in sales of historic homes since 2008. While Historic homes in Palm Springs, California, can carry not every buyer is interested in historic homes, there’s no more than one designation, explains Carol Berger, CRS, with shortage of historic properties in Rhode Island, and her Leaskou Partners. “There are the architecturally significant specialization helps set her apart from the competition. homes from the 1950s that feature mid-century modern Often, historic homes are located in historic districts or architecture,” she says. “The Preservation Foundation here neighborhoods that sometimes garner a historic designation designates historical class-one architecture that can’t be through that association. Gay Rosen, CRS, associate broker changed.” Then there are the movie-star homes. “Elvis Presley with Julia B. Fee Sotheby’s International Realty, Larchmont, only owned two homes when he died,” she explains. “One was New York, has been selling historic homes in New Rochelle Graceland; the other was on Chino Canyon in Palm Springs.” for the past decade.

When it comes to pricing there, comparables are key, Homes there were built at the turn of the 20th century and especially if the home was designed by the same architect in tended to be majestic residences of 4,000 to 5,000 the Palm Springs area. “Then you determine if it square feet. The area was designated historic in has been updated or if it is original,” says Berger.

BY THE NUMBER S the 1980s, and homeowners there filled out and Selling the 17,964-square-foot Nixon Mansion The National Register of filed reams of paperwork to obtain the designain Lake Tahoe, Nevada, presented challenges.

Historic Places lists over tion for their structures. Now, like other historic “There were no comparables,” says Sandi areas, New Rochelle homeowners of historic Solomonson, CRS, broker/salesperson at Chase International, Incline Village/Reno, Nevada. The properties must seek permission to make exterior designated districts in its changes that might alter the look of their home. database. sellers invested 10 years on renovations and

13,594

20 15

The Council of Residential Specialists

crs.com

27

Nov Dec

dwelling points

[feature]

Built in 1907 for U.S. Senator George Nixon, this Reno mansion has a rich history.

A porticoed terrace overlooking the Truckee River is suitable for outdoor entertaining.

The new owner can breakfast in the morning room beside the in-ground fountain.

created an estate that showcases its historic character, yet provides cutting-edge, 21st-century amenities.

Historic homes are obviously older and are found in a range of conditions. “If you price historic homes too high, buyers won’t come to look because they may see lower-priced homes that already sold in the area,” says Rosen. “You have to price them competitively against homes that are selling for more in areas where home conditions are more uniform.”

When prospects enter a historic home that has been restored or well maintained, they can be enticed to offer more. To help that process along, Rosen provides a list of appropriate

A mahogany mantelpiece and original chandelier grace the 80-guest dining room.

comparables — “For the Discerning Buyer” — which she has available for interested prospects.

Avoiding Surprises

“The most important part of marketing a historic home, unless the property has been completely updated, is to have a pre-inspection,” says Drum. Most historic homes exhibit some evidence of age, so if there are issues up front, the listing agent can bring in a contractor to correct them.

“Quantifying issues up front accelerates the chances of getting a strong offer and helps keep the deal together.”

Staging historic properties is always critical, agents say. “Even though people think their homes are beautiful, everyone has too much stuff,” says Fears. You need to clear out most of Getting an appraisal from a local appraiser who is familiar with the area and its historical the personal items so visitors can appreciate the house. “Everyone in the market watches HGTV significance is always preferable. “Buyers will get an appraisal through their bank, but you have and they have expectations of how a property no control over who that appraiser will be,” says Gay Rosen, CRS, associate broker with Julia B. should look,” adds Drum.

Fee Sotheby’s International Realty, Larchmont, New York.

Quality photography is a must to generate The appraiser that the bank sends out may not know the area. “I don’t want to leave anything quick sales of historic homes. Professional to chance,” says Rosen. shots will make certain the photos stand out “Often, I tell sellers to get their own appraisal,” says Wanda Fears, CRS, with Best RVA both in printed listings and online. Fears points Realtors, Richmond, Virginia. If they get an appraiser familiar with historic properties, they can to the growing influence of online venues just hand that appraisal to whomever the bank sends out. such as Zillow and Trulia (now under the same

AWE-INSPIRING APPRAISALS

Nov Dec

28

The Residential Specialist trsmag.com

20 15

dwelling points

[feature]

this old house went to market

Michelle Drum, CRS, associate broker with Gustave White Sotheby’s International Realty, Newport, Rhode Island, suggests four steps to get a historic home ready to market.

1

Have the seller pay for a pre-inspec­ tion, and then hire a contractor to take care of any issues that are uncovered.

2

Include floor plans in the package; prospective buyers can take them home to determine how their possessions will fit.

3

De-clutter and stage the property. If painting is needed, this is the time to get it done.

4

Hire a professional photographer who knows how to photograph historic properties that may feature small rooms. Use this quality photography with the listing and online.

Only when the above-mentioned steps are completed is the property ready to be placed on the market, suggests Drum. corporate umbrella) where quality photography makes historic listings more attractive. “I’ve also used historicproperties.com, which is a website that gets a lot of traffic,” she says.

No matter which online media you choose, it’s a good idea to include buzzwords that buyers of historic properties might use, Fears suggests.

Words and phrases such as “historic,” “restoration,” “original glass” and “original woodwork” are just a few of the references buyers search for.

When she came up against a seller who didn’t want a sign in her yard or to host open houses, Rosen became more creative to attract buyers.

At a brokers’ open house, she served finger sandwiches with fruit and Perrier. “I was just trying to keep the excitement going,” she says.

To maintain a heightened sense of enthusiasm, Rosen always makes certain to accompany buyers’ agents when any tours are scheduled.

That way she can be sure to point out historic elements of the property and the area. When possible, she also tries to schedule multiple buyers for appointments. “That can generate some excitement as well,” she says.

Share the Back Story

Knowing the history of the property and taking time to research it adds to its salability. “We have a vibrant historical society in Reno, and looking through old documents enabled us to present the story of the Nixon estate with photos, notable past owners (the original owner, George S. Nixon, was a Nevada Senator in the early 20th century) as well as a scandal or two,” says Solomonson.

“The more you know about the history of the property helps to make it more saleable,” echoes

S AV E T H E D AT E 2016 will mark the

50 th anniversary of the National Historic Preservation Act, which established a structure to preserve historic sites in the United States.

LOOKING TO UPGRADE?

Drum. Buyers of historic homes tend to be a specific breed, she adds, and the history of the property can be important to them. “Pay to have a history detailed if you’re not able to do so The National Register of yourself. This history can include the landscaping, which can be of equal or higher value than Historic Places is part of the the home itself,” Drum adds.

National Park Service (NPS).

In addition to listing a historic property From a federal perspective, online, knowledgeable agents create unique a property owner of a property listed in the National websites to showcase the properties. “I buy the domain name and create the website with Register can do what they blogs about the area, floor plans and informawant with their property if no tion about the historic district,” says Rosen. federal funds are attached When prospects show an interest in the propto the property. (For more erty, she forwards them the link so they can information, visit NPS online learn more. at www.nps.gov/nr/ “A robust online presence is critical,” says national_register_ Solomonson. The website for the Nixon Manfundamentals.htm.) sion (www.nixonmansion.com) has floor plans, If federal funds are numerous photos and an interactive video that attached to the property, showcases high points of the property. For the however, then any changes to the property have to allow larger spaces — the formal dining room seats 80 — virtual staging was employed to give a the Advisory Council on Historic Preservation (www. more intimate feel.

“It is an honor to sell historical estates with achp.gov) to comment on buyers who see value in continuing the history the project. of these unique homes,” says Solomonson.

State historic preserva“The Nixon Mansion is a prime example of tion offices (SHPO) oversee the marriage of old-world craftsmanship with historic preservation efforts today’s lifestyle.” in each state. There may be state or local preservation laws that the owner should be Michael Chazin is a freelance writer based in Glenview, Illinois. aware of before undertaking a modification, remodeling Find more information about the National or renovation project with a Park Service’s National Register of Historic Places at www.nps.gov/nr. historic property.

20 15

The Council of Residential Specialists

crs.com

29

Nov Dec

More homebuyers are looking for urban amenities in their suburban communities.

By Gayle Bennett

second CITIES Ø

Over the last decade, many of the nation’s cities — from Boston to Seattle — saw their populations grow. “The suburbs are dying,” some cried in response.

Not so fast. A Brookings Institution analysis of U.S. Census data shows that in 2014, the population growth of the suburbs equaled that of urban areas. City living has its appeal, but so does the suburban lifestyle.

However, this is no longer an either/or conversation. Hybrid communities that incorporate the walkability of city living within planned suburban subdivisions are cropping up across the country.

Nov Dec

30

The Residential Specialist trsmag.com

20 15

Residents of these urban-minded suburbs can walk to schools, restaurants, shops and entertainment options.

Some of these communities are also located next to industrial parks, potentially also reducing the commute for local residents.

This phenomenon isn’t just anecdotal: The American Communities Project counts 107 suburban counties that are close to major cities but have taken on many city characteristics.

The Residential Specialist talked to CRSs who have seen the urban suburb flourish. These walkable communities are drawing a range of homebuyers who are willing to pay more to have the best of both worlds.

regional

report

[feature]

What’s Going On?

Here are four examples of suburban communities that offer residents car-free restaurant, shopping and entertainment options.

BUILDING A SENSE OF COMMUNITY

Many urban-suburban communities are the result of new mixeduse development.

But ensuring these communities are just that — communities — can take some extra planning.

Michael Orbino, CRS, with John L. Scott Real Estate in Bellevue, Washington, says that Downtown Bellevue has slowly evolved into a true community, but it took a lot of work. “People have to get together and make that happen,” he WASHINGTON says. “Otherwise, it’s Downtown Bellevue, which lies at the dozen other condos have popped up just going to feel like heart of Seattle’s suburban Eastside, has that are twice that height.” Single-family a bedroom community. its own skyline and commercial district. Michael homes ring the downtown perimeter.

Fifteen years ago, we Orbino, CRS, with John L. Scott Real Estate who Surrounding all this housing is a bevy of still had our downtown, both lives and works in Downtown Bellevue, restaurants, shops and art galleries. “In the last but there was nothing says the area’s first high-rise condo, 25 floors, 10 years, Bellevue has kind of separated itself to do after 6 p.m. The was built in 1995. “That was the hot place to be,” to be its own city,” Orbino says. “It’s a suburban streets were empty.

Orbino says. “Then, about 10 years ago, a half city for sure, but it has its own identity now.”

Now it goes to midnight or 1 a.m., but it still The Bellevue skyline feels safe and clean.” as seen from the city’s For example, sumDowntown Park. mertime brings regular outdoor concerts and food-truck nights.

“We didn’t have a lot of that at first,” he says.

“We’re still the suburbs, so we’re learning how to act like a city.”

1

Photo: Patrick Rodriguez

Photo: Jelson25

Downtown

BELLEVUE

20 15

The Council of Residential Specialists

crs.com

31

Nov Dec

regional report

[feature]

IF YOU BUILD IT, WILL THEY COME?

LEGACY Plano TEXAS

In the 1980s, businessman and soon-to-be presidential candidate Ross Perot developed approximately 3,500 acres in Plano, Texas, to be a hub of corporate headquarters. He built it, and they came. A number of corporations — from JCPenney to Frito-Lay — moved their headquarters to Legacy Business Park, and corporate tenants continue to move there today.

About nine years ago, a developer added commercial and residential development to this mix on the theory that people would want to live and play there, too. “The ‘filet of the cut’ in a

The Front Range as seen from Westlands Park in Greenwood Village.

central business district is The Shops at Legacy,” says Mike Brodie, CRS, with Keller Williams Plano, describing the development’s placement in the middle of the office park.

Housing around The Shops at Legacy has been so popular that a new phase is being added, complete with a 40-story condo building and three-story townhome units with rooftop patios. “What you don’t have is a typical single-family house on a 60- to 90-foot-wide lot with a swimming pool in the backyard,” Brodie says.

3 ONE

Cherry Lane

One Cherry Lane is a new development of with Classic Colorado Homes Group–RE/MAX Greenwood single-family homes in Greenwood Village, an Professionals. “‘I don’t want to be in the suburbs Village COLORADO affluent Denver suburb. The development of anymore, but I don’t want to be downtown. I want 90-plus semi-custom homes is within walking to walk to shops and restaurants, but I don’t want to distance of a long-established business park, a cluster of have it in my face.’” A small HOA (Homeowners Associarestaurants and shops, and a light-rail stop. “Everyone who tion) fee includes front-yard landscaping, snow removal and walks in says the same thing,” says Martine Addison, CRS, a 24-hour guard gate.

Nov Dec

32

The Residential Specialist trsmag.com

20 15

Photo: Adam Ginsburg

2 The Shops at

The Shops at Legacy in Plano, Texas, is a mixedused community in the middle of an established office park. It’s been a roaring success, but Mike Brodie, CRS, with Keller Williams Plano, says that’s because the market was ready for it, and the housing piece of it started small.

The reverse happened 10 years ago when developers decided high-rise condos were primed to take off in Dallas. “They built about seven of them,” Brodie says, “and they weren’t letting the market drive it.” Demand never matched the supply.

With the Shops at Legacy, the developers listened to the market, he says. “They did the research, and the more the demand grew, they just kept responding to it and expanding.”

regional report

[feature]

The train station in Southern Pines, North Carolina, connects suburbanites with New York and Florida via Amtrak.

4 Southern

PINES

Most of downtown Southern Pines’ housing and commercial buildings date back to the 1920s. Close NORTH CAROLINA to many popular golf courses, this picturesque downtown draws a healthy tourist business.

But it’s also a year-round community that is now booming, thanks to a subset of buyers — retirees and members of the military posted at nearby Ft. Bragg — who want more walkability than the surrounding communities offer.

About four years ago, sensing this increased demand, Tim Venjohn, CRS, with Rhodes and Co. Real Estate, teamed up with investors to build new houses on empty lots downtown.

They take great pains to ensure these “infill houses” fit the architectural style of those around them. “When we’re done, it looks like a house that was built in 1928, and someone remodeled it and put new siding on it,” Venjohn says.

Venjohn and his partners are now developing a small tract of land on the edge of downtown. “We’re going to have walking trails that go through the neighborhood and then out of the neighborhood so people can walk downtown,” he says.

Who’s Living Here?

Almost half — 48 percent — of respondents to the 2015 Community and Transportation Preferences Survey, conducted by the National Association of REALTORS®, said they would rather live in houses with small yards that are within easy walking distance of the community’s amenities than in houses that have large yards but require driving to amenities.

This preference is particularly strong among millennials. But along with young professionals, a growing number of older suburban homeowners are also drawn to this slightly more urban lifestyle. Now that the kids are gone, or about to be, they want to be in a more walkable community — and in a home that requires less maintenance.

“Many of our buyers are coming from very large homes into a two-bedroom, 2.5 bath,”

Addison says. “But they don’t need [a big house] anymore, and they are close to everything they want to be close to.”

The siren call of the more traditional suburbs still speaks to young families or those about to go down that road. “The families with three kids and three cars in the driveway have not been our buyers,” Venjohn says, a sentiment echoed by the other CRSs. Orbino emphasizes that his buyers fit more of a psychographic profile than a demographic one. “It’s not about age or income,” he says. “They want a downtown vibe but don’t need all the hustle of the city. It scratches that urban itch without having to be fully committed to it.”

BY THE NUMBER S

60

%

of adults surveyed live in detached, single-family homes, but

25

%

of them said they would rather live in an attached home and have greater walkability.

High-End Communities

These urban-minded suburbs offer city amenities in an appealing package, and that doesn’t come cheap. Research from the American Communities Project has found that urban suburbs are the wealthiest community type, with an annual median household income of about $66,500.

Downtown Bellevue’s housing ranges in price from $350,000 to $5 million, and the houses at One Cherry Lane in Greenwood Village start at $1.2 million. Brodie says that per square foot, housing in The Shops at Legacy in Plano is more expensive than in the surrounding suburban area.

But the price appears to be right. Demand for suburban walkable communities is strong and shows no sign of abating. And if bringing a bit of the city lifestyle to the bucolic suburbs draws homebuyers, savvy REALTORS® have a big opportunity to help them complete a home transaction.

Source: 2015 National Community and Transportation Preference Survey

Read more about this trend in The End of the Suburbs: Where the American Dream is Moving, available at Amazon.com.

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

20 15

The Council of Residential Specialists

crs.com

33

Nov Dec

resources for learning & leisure

I AM

curious (FELLOW)

It’s time to put curiosity where it belongs, says a Hollywood producer—right up there with creativity and innovation.

Reviewed by Allan Fallow

Ø

Oh, to have been a fly on the wall of Brian Grazer’s office! Over the last 35 years or so, Ron Howard’s producing partner (Splash, Friday Night Lights, A Beautiful Mind) has held informal “curiosity conversations” with 466 luminaries from all walks of life — “people immersed in everything from particle physics to etiquette,” as Grazer puts it in his new business manual-cum-memoir, A Curious Mind: The Secret to a Bigger Life. His hunger to discover what makes other people tick has A CURIOUS MIND introduced Grazer THE SECRET TO A to everyone from BIGGER LIFE Muhammad Ali to

by Brian Grazer and Steve Wozniak.

It has also landed Charles Fishman him in a few interestSimon & Schuster ing predicaments: 302 pages, $25.99 He shared a bowl of ice cream with Princess Diana at the 1995 London premiere of his Apollo 13.

He got cut off at the knees by Mrs. Isaac Asimov: “You clearly

Nov Dec

34

The Residential Specialist trsmag.com

20 15

don’t know my husband’s work well enough to have this conversation,” Janet Asimov curtly informed Grazer 10 minutes after they met for drinks in 1986. “This is a waste of his time.

We’re leaving. C’mon, Isaac.”

And in 2004 he got put in a headlock by Norman Mailer in the lobby of the Royalton Hotel in midtown Manhattan. (Grazer had asked Mailer to describe how one boxer had thrown another out of the ring, and Mailer decided to demonstrate.)

“With [Mailer’s] arms wrapped around my head,” Grazer recalls, “it was clear how strong he was. It was slightly embarrassing. I didn’t want to struggle. But I also wasn’t quite sure what would happen next. How long would Norman keep me in the headlock? It lasted long enough to leave a strong impression.”

Don’t Quote Me on That

A Curious Mind leaves a strong impression, too — but it may not be the one that Grazer and co-author Charles (The Wal-Mart Effect) Fishman intended. In a book stuffed with more celebrities than a Vanity Fair after-party, the reader has every right to expect

a few verbatim pearls from the lips of Grazer’s interlocutors. Yet one of the few direct quotes I could find — from a pajama-clad Oprah — is hardly illuminating: “I’m always trying to solve life myself,” she told Grazer over a breakfast of huevos rancheros in the courtyard of L.A.’s Bel-Air Hotel in 2007.

Grazer’s reason for this maddening mushiness emerges from one of the book’s many appendices, this one titled “How to Have a Curiosity Conversation.” To start a person talking about himself, the author recommends, don’t write anything down: “The goal is a good conversation,” he advises. “Taking notes might just make someone uncomfortable.” The journalist in me — the compulsive stenographer who once interviewed Jane Lynch with two recorders running — struggled not to throw A Curious Mind across the room when I read this bogus guidance.

But who cares if we’ll never know what Linda Ronstadt may have said to Dr. Jonas Salk when they met (along with George Lucas, Sydney Pollack, and Betty Edwards)

letters teetering precariously for “a daylong conversation” in the above the Hollywood Hills should living room of Grazer’s Malibu spell out N-O-N-O-N-O-N-O! But house in 1984? For all its stargazby using curiosity to fight fear ing, A Curious Mind is a business and instill confidence, the author tome, not a Tinseltown tell-all, and claims, he has learned how to I suspect REALTORS® will derive ask enough questions to pinpoint some powerful lessons from precisely what people are saying Grazer’s ruminations on 1) the “No” to. (In this regard, he enthuses, value of “managing by asking curiosity functions as “a quiet kind around” and 2) the use of curiosity of power … a cumulative power … to overcome an initial “No.” a power for real people.”)

Grazer is not a natural manager, As an object lesson in adaptahe reveals in these pages. (“I don’t tion to sales resistance, he traces like to boss people around.”) He is uncomfortable issuing direct orders, the seven-year journey of his first mega-hit, Splash, from script page yet as co-chairman of Imagine Entertainment, he is responsible for to multiplex screen. Pitched as a movie about a mermaid, the picture seeing that hundreds of employees went nowhere. With a little probdo their jobs on a daily basis. How ing, however, Grazer ascertained does he cope with that burden? By that studio executives were saying asking questions — which Grazer no to the mermaid herself, so he calls “an underappreciated management tool” — of the people who recontextualized (his emphasis) the film as a love story between a man work for him.

But where’s the productivity payoff and a woman (who just happens to be a mermaid) with a little comedy in that? For starters, asking questhrown in. “Same idea,” he sums up tions engenders engagement and this strategy, “different framework.” commitment in your co-workers — Splash became a huge hit. It but, as Grazer allows, the effect is launched the careers of Tom subtle. Let’s listen to him explain Hanks and Daryl Hannah, and it (ignoring our suspicions that his “hypothetical” sounds like an “actual” emboldened Grazer and director Ron Howard to gorge on In-N-Out from the Hollywood trenches): burgers “with a really good bottle Let’s say you have a movie that’s of French Bordeaux.” in trouble. You ask the executive A Curious Mind may not turn responsible for moving that movie you into a curiosity evangelist of along what her plan is. You’re doing Grazer-level fervency. But it’s hard two things just by asking the question: to argue with the call to action he You’re making it clear that she should sounds in his final chapter, titled have a plan, and you’re making it clear that she is in charge of that plan. “The Golden Age of Curiosity”: “The point isn’t to start asking a bunch The question itself implies both the of questions, rat-a-tat, like a prosresponsibility for the problem and the authority to come up with the solution. ecutor. The point is to gradually shift the culture — of your family, of your workplace — so we’re Getting to Yes making it safe to be curious. That’s The portion of A Curious Mind how we unleash a blossoming of dedicated to “beating the ‘No’” — curiosity, and all the benefits that it’s Chapter 4, if you’re pressed for time — should be required reading come with it.” for salespeople. Hollywood is the Allan Fallow is a features editor in Washington, land of “No,” writes Grazer — so D.C. Follow him on Twitter: @TheFallow. much so that those famous white

YO U M I G H T A L S O L I K E …

RISK/REWARD

by Anne Kreamer [Random House] 224 pages $ 14.60/hardcover Learn why making a big career move might be the best decision in the long run.

HUMANS ARE UNDERRATED

by Geoff Colvin [Portfolio] 256 pages $ 15.68/hardcover Even with advancing technology, there is still a need for humans and their emotional intelligence in the workplace.

THE CHALLENGER CUSTOMER

By Brent Adamson, Matthew Dixon, Pat Spenner, and Nick Toman [Portfolio] 288 pages $ 15.92/hardcover The bestselling authors of The Challenger Sale expand on their research about sales technique into the realm of customer management.

THE SILO EFFECT

by Gillian Tett [Simon & Schuster] 304 pages $ 15.40/hardcover The tendency to separate, or silo, work into different functional departments can end up hindering your workflow and creativity.

20 15

The Council of Residential Specialists

crs.com

35

Nov Dec

resources for learning & leisure

Ø

BABY, IT’S cold OUTSIDE

If you don’t live in a warm climate or aren’t planning on heading to a vacation home or rental this winter, you’ll probably want to be prepared for everything a serious winter season can throw your way. This time of year, it can be tough to get the right amount of exercise for many of us. Here are some winter wellness tips that will help you stay safe and healthy this winter.

Shovel safely Shoveling snow is great exercise, but it’s also important to take care to prevent back injury and cardiac strain. Stretch to warm up before you shovel and lift with your legs bent, keeping your back straight. Make sure to take frequent breaks and stay hydrated.

Get off the couch If winter sports such as skiing or ice skating aren’t your favorite, try indoor activities like basketball or aerobic dance classes. You can even try video games that have you stand up and move around to play, such as Wii Sports on Nintendo’s Wii or Wii U consoles, or Xbox Fitness on the Xbox One.

Winter-proof your home

Be ready for the road

Installing weather stripping and insulation, or even storm windows, can help keep rain and snow out of your house and keep the heat in. It’s also a good idea to test your heating systems and smoke and carbon monoxide detectors before winter starts.

Get your car’s radiator serviced and make sure its antifreeze is at the right level. You may also want to put together an emergency kit for your car, in case you get stuck on a wintry road.

This can include booster cables, flares, blankets, food and water, a flashlight, extra batteries, and a first-aid kit, as well as any other items you think you may need.

Nov Dec

36

The Residential Specialist trsmag.com

20 15

YO U M I G H T A L S O L I K E …

FRX3 – AMERICAN RED CROSS RADIO Eton $ 69.99

Be ready for whatever winter weather emergencies may come your way with the FRX3 American Red Cross weather band radio from Eton that also serves as a flashlight and USB smartphone charger.

HOT CHOCOLATE — CLASSIC Jacque Torres Chocolate $ 18.00 If you want to treat yourself this winter, look no further than Jacque Torres Chocolate’s classic Hot Chocolate mix. Made with 60–70 percent dark chocolate, the result is an indulgent but delicious drink.

CERAMIC HEATER Lasko $ 35.99 list price

Whether you want to add a little warmth to your home or office this winter, the Lasko 754200 Ceramic Heater can help. Its small size and 4 lb. weight make it easy to bring the heat wherever you need it.

inside

CRS news from the council

Attend Sell-a-bration® 2016 from Feb. 8 – 9, 2016, at Loews Royal Pacific Resort. The resort offers lush tropical surroundings and a lagoon-style swimming pool.

GET DOWN TO business Sell-a-bration® 2016 Is Set for Orlando.

SPECIAL OFFER

Ø

This year’s theme, “Let’s Talk Business,” will There’s a reason the old adage “Invest in Success” has been around a long time. To focus on delivering practical, real-world solureach the top level of success, all true profestions that agents can implement immediately to sionals must build their skills by consistently boost their success. The event offers an unparinvesting in professional education and netalleled opportunity to learn from and network working. It’s nice with the top producers when both goals can and educators in the PRICING be achieved during real estate industry.

CRS DESIGNEES/MEMBERS NON-MEMBERS a brief winter trip to Sell-a-bration® Standard Rate Standard Rate sunny Florida. Make begins with a splash $ $ 649 699 your plans now to on Feb. 8 with Open$ attend Sell-a-bration® ing Keynote Session VIP Upgrade: 100 2016, CRS’s world-class speakers Tarek and Pre-Conference One-Day Course Christina El Moussa, event, which will be CRS MEMBERS NON-MEMBERS held Feb. 8 – 9, 2016, hosts of HGTV’s “Flip $ $ at the Lowes Royal or Flop.” The El Mous130 160 sas were real estate Pacific Resort in Group rates available. agents prior to being Orlando, Florida.

20 15

The Council of Residential Specialists

Bring your assistant to Sell-abration 2016 for only $425. You may add on your assistant to your registration if they qualify: ÄÄ Must not have acted as a REALTOR® or posted transactions during the past year. ÄÄ Individuals registering for the Assistant rate will not receive CRS education credit for attending Sell-a-bration® 2016. ÄÄ Will be issued an “Assistant” name badge on site. ÄÄ CRS reserves the right to verify Assistant’s position/ title qualifying for this rate.

crs.com

37

Nov Dec

inside

CRS news from the council

named hosts of the show, which follows them as they buy homes to renovate and resell. They also lead a series of seminars that cover the ins and outs of buying, renovating and flipping homes.

Other session presenters and panelists will tackle different aspects of the “Let’s Talk Business” theme in panel sessions, interactive workshops and breakouts. (Sessions are subject to change.)

Let’s Talk — Strategy

GET THE VIP TREATMENT! Purchase a CRS VIP Package* to receive additional benefits when you attend Sell-abration® 2016. Upgrading your registration with the VIP Package gets you the ultimate exclusive attendee experience.

For only $100, the VIP package registration add-on includes: ÄÄ Guaranteed VIP premium seating during all general sessions ÄÄ Access to a special VIPonly area (where you can network, have meetings, relax with a cup of coffee or charge up your devices) ÄÄ Free entrance to a VIP reception before the opening welcome reception ÄÄ Special Express VIP check-in at the conference ÄÄ Free Sell-a-bration® 2016 Lapel Pin *In order to purchase the VIP Package upgrade, you must be registered for Sell-a-bration® 2016. The $100 fee is in addition to the registration price.

Space is limited, so secure your spot now.

Nov Dec

38

ÄÄFrom ‘Zero to 60’ Home Sales a Year ÄWriting Ä Winning Offers (Without Getting In Trouble) ÄÄSuper Agents Have Super Thoughts ÄÄCashing Out: Planning an Exit Strategy for Your Business ÄTax Ä Strategies: Maximizing Your Dollars ÄÄBuilding Systems 101: How to Build a System for Anything ÄÄSingle Agents — Leveraging Yourself for Productivity and Profitability

Let’s Talk — Selling

ÄÄCrushing Your Competition at the Listing Table ÄÄFoundations of Community Leadership ÄThe Ä Art of Pricing ÄThe Ä Ultimate Listing Presentation ÄTech Ä Debate: Zillow vs. Realtor.com Ä“Leave Ä It to Beaver” Meets “Modern Family”: Bridging the Generations

Let’s Talk — Tools

ÄÄConfessions of a Hoarder: Or How Digital Saved My Life and My Career ÄTech Ä Edge ÄApps Ä for Agents ÄÄSocial Media: Maximizing Your Efforts ÄÄEffective Selling with Drone Photography and Videography ÄÄMobile Agent: The Buyers Journey

Let’s Talk — Clients

ÄÄClient Panels — Working with Sellers ÄÄClient Panels — Working with Buyers ÄÄRelationship-based Marketing Through Client Events ÄÄSecrets of Question-Based Selling for Real Estate ÄÄInternational Buyers Perspective ÄÄSelling Inherited Properties ÄTactics Ä to Achieve Loving Profitable Relationships

Hundreds of topDale Carlton. The “ This is by far one of producing REALTORS® course will focus on the best educational come to the annual event key techniques for from across the country facilitating a successful opportunities to learn and around the world to negotiation from start from top industry learn from the best and to finish. build valuable referral professionals and network Attendees will leave networks that can pay Sell-a-bration® with new with other REALTORS®.” dividends for years to ideas, new professional —Mary Gilbert, CRS contacts and a renewed come. Selected exhibitors will also share commitment to their their innovative products and solutions that can businesses. Agents can also earn 16 credits help make agents more efficient and successful. toward the CRS Designation by attending Sell-a“This is by far one of the best educational bration® 2016. The event’s Welcome Reception is opportunities to learn from top industry prosponsored by Cutco Closing Gifts. fessionals and network with other REALTORS®,” For information about Sell-a-bration® 2016 says past attendee Mary Gilbert, CRS. “Sell-aand to register, visit crs.com/events/ bration® is a valuable experience that is like no sell-a-bration, or call customer service at 800.462.8841. To learn about Sellother in the industry.” a-bration® sponsorship opportunities, And don’t forget to register for the pre-confercontact Stephanie Crain, CRS director of business development, at 312.321.4452 ence course, Win-Win Negotiation Techniques, or scrain@crs.com. on Feb. 7, 2016, taught by 2015 CRS President

The Residential Specialist trsmag.com

20 15

REPORT MISUSE Ø

The CRS Designation is one of the most prestigious in the real estate industry, and CRS Designees work hard to achieve it. It indicates to buyers and sellers — and to fellow REALTORS® — that agents adhere to the highest standards of professionalism in the industry and are committed to continuing their education.

To protect the integrity of the Designation, the Council encourages Designees to report any suspected misuse of the Designation to the Council.

Whether a case of misuse is an honest mistake or a deliberate misrepresentation, the Council takes every offense seriously, as does NAR. Its Code of Ethics prohibits REALTORS® from misrepresenting their status as members or Designees of NAR’s Institutes, Societies or Councils. If a REALTOR® is found to be misusing the Designation, CRS state and local networking groups can take that member to the grievance committee of their local board.

“CRS Designees are held to a higher standard Please report than the typical REALTOR®, so the Council Designation makes every effort to protect the Designation misuse online at crs.com/ they worked so hard to obtain,” says Colleen illegal-usageMcMahon, CRS vice president of member and report, contact crshelp@ volunteer services. crs.com or To find out if another agent has the right to use call customer the CRS Designation, use the “Find a CRS” tool on service at 800.462.8841. www.CRS.com to see if they are a current Designee.

ZIPPY ADVERTISING

Did you know that CRS Designees can now buy additional ZIP code and city listings in the CRS Online Directory for a small fee, or separate banner ads for ZIP codes in addition to cities? It’s a great way to get your name in front of people who are looking to buy, sell or refer a client in your area. To place an Online Directory order, simply visit crs. com/online-directory-products for all the information or call CRS Customer Service at 800.462.8841.

And now that the CRS Referral Network (crs.com/ referralnetwork) is up and running, don’t delay: It’s the perfect time to log in to CRS.com to update your Member Profile: company information, contact information, online bio and photo. “Find a CRS” is much more accurate, so you’ll want to make sure that anybody who comes across you looking for a REALTOR® or a referral partner gets accurate contact information. And if you haven’t registered for the CRS Qualified Consumer Leads program (powered by Referral Exchange), check it out today!

Order additional listings and banners at crs.com/online-directory-products or call CRS Customer Service at 800.462.8841.

STOP CHASING LEADS,

START MAKING MONEY POWERED BY BUFFINI & COMPANY

learn

from the

BEST strategies from the industry’s top educators

THE NEW

marketing model Successful marketing requires agents to target potential clients where they will see the message.

Mark Porter, CRS

Ø CRS INSTRUCTOR

Mark Porter, CRS, with Castle Hills Real Estate & Mark Porter Live in Lewisville, Texas, is a CRS Certified Instructor, a real estate broker, investor, consultant and technology and business planning instructor.

www.MarkPorterLive. com www.CastleHillsReal Estate.com

Nov Dec

40

Methods of social interaction and communication have changed drastically in the past 25 years, moving from traditional letter-writing to online social media. Marketing strategies must also evolve to match these changes. The idea behind the New Marketing Model is simple — give the people what they want, the way they want it.

Creating valuable and meaningful marketing content for your past and potential clients is just the first step. Then you need to figure out the best ways to deliver that content.

One solution that can help is Alexa (www.

Alexa.com), a powerful tool that tells us the top sites we need to pay attention to and exactly where to direct our marketing efforts.

1. According to Alexa, YouTube is the No. 4 site in the U.S., making video one of the top preferred methods of information gathering for the nation’s population. Produce a short video on your exciting new content and post it onto your business’s YouTube channel.

2. Embed that same YouTube video in a new blog post on your website with an accompanying article.

3. For members of older generations who like to receive a card in the mail, send a postcard that summarizes your content and points them to your website for details.

4. The next step is email marketing: Send your contacts a personalized mail merge

The Residential Specialist trsmag.com

20 15

email that lets them know about your exciting new video, and again, points them back to your website.

5. Share your new video blog on Facebook.

Facebook is the second most popular site in the world with over a billion users. Establish yourself on Facebook with a Facebook business page for your real estate business and share your exciting new content.

6. Set up a Facebook community page for your neighborhood and share your video content with the large, surrounding community.

7. Sharing your video blog via Twitter gives you access to a new demographic of millennial users who prefer the feeds of short 140 character posts. Think of your Twitter posts as microblogs that entice followers to find out more on your site.

8. LinkedIn is where corporate America goes to network, and it is the online replacement of those weekly Chamber of Commerce meetings. Sharing your video blog on your LinkedIn feed will open your business up to industry experts and their inner circles.

9. Pinterest has also become a popular platform for individuals collecting interesting, new information. Pin your video blog to your company Pinterest board and attract new followers and potential clients.

The point is to market to clients the way they prefer to interact. Don’t miss an opportunity to connect with a potential client base just because you’re not there. Be active on all fronts to better market your business in today’s marketplace.

YOUR CRS WEST

WILLIAM & WILL ABR, CIPS, CRS, RSPS, SRS, SRES Top 1% of Brokers Internationally!

(626) 898-5810 CalBRE: 01903501

(310) 880-7356 CalBre: 0147783827

Serving: Southern California, Los Angeles County, San Gabriel Valley, Beverly Hills, Hollywood, Westside (UCLA/USC), and the South Bay

william@goldenlandinc.com

CRS

connect

network

expand your network

Ø

In July 2014, Marsha Shepard, CRS, of Berkshire Hathaway in San Diego, received a referral from Katherine Prinzivalli, CRS, of Berkshire Hathaway in Brentwood, California. Prinzivalli was selling the family home of her clients in Anitoch, California, and she needed some assistance with finding them a new home in San Diego. The San Diego home was contingent on the closing of the Anitoch home. The agents were able to work together to juggle the two sales. Prinzivalli had the clients pre-approved on her end and notified Shepard of what they would likely want. “The buyers were great people and trusted me from the beginning,” says Shepard. “They ended up closing on a three-bedroom, 2.5-bathroom home with a detached garage for $425,000, and they are planning to move in upon their retirement. I was even able to gain an extremely positive review for my website. Thank you CRS Referral System!”

CONNECTION PERFECTION

www.goldenlandinc.com

WEST

WEST

WEST

Selling Lake Tahoe, NV for 25 years.

Craig Zager I Love Referrals!

Sell phone: 775.901.4663 craig@CraigZager.com

www.LakeTahoeAgent.com

WEST

WEST

WEST

Mike Kelly CRS, CIPS 707-322-8503 cell Career Worth Having Business Worth Owning Life Worth Living

Serving Sonoma County for 36 years, Mike Kelly is your “Wine Country Lifestyle” specialist.

The Kelly-Norman Team is client-centered focusing on a successful transaction for your residential referrals. www.GreatEstatesofSonomaCounty.com

20 15

The Council of Residential Specialists

crs.com

41

Nov Dec

CRS

connect

CRS

CLASSROOM COURSES

expand your network

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.

DEC. 14 — AUGUSTA, MAINE [Maine CRS Chapter]

CRS 120 — Converting Leads Into Closings DEC. 1 — TWIN FALLS, IDAHO [Greater Twin Falls Association of REALTORS®]

207.622.1234

Instructor: Chandra Hall, CRS

208.733.6421

CRS 121 — Win-Win Negotiation Techniques

Instructor: Chandra Hall, CRS DEC. 7 — ROCKVILLE, MD [Greater Capital Area Association of REALTORS®]

DEC. 15 — AUGUSTA, MAINE [Maine CRS Chapter]

301.590.2000

207.622.1234

Instructor: Gee Dunsten, CRS

Instructor: Chandra Hall, CRS

CRS 200 — Business Planning and Marketing NOV. 19 — HERNDON, VA [Virginia CRS Chapter, Keller Williams Capital Properties] 804.249.5722

Instructor: James Nellis, CRS NOV. 23 — MALVERN, PA [Association of REALTORS® School] 610.560.4800

Instructor: Gee Dunsten, CRS

WEST

WEST

WEST

Thinking

Hawaii?

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.

NORTHEAST

NORTHEAST

Diane Capodilupo

Your referral source for the greater

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

42

The Residential Specialist trsmag.com

• 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

20 15

Bill Kuhlman

I WORK HARDER SO YOU GET PAID FASTER!

www.dianecap.com

Nancy Wright, ABR, CRS, GRI

Nov Dec

NORTHEAST

781-883-5554

DEC. 2 — BELLEVUE, WASH. [Washington CRS Chapter]

CRS 206 — Technologies to Advance Your Business

866.556.5277

NOV. 18 — AUSTIN, TEXAS [Texas Association of REALTORS®]

Instructor: Gee Dunsten, CRS DEC. 7 — ATLANTIC CITY, N.J. [Triple Play REALTOR® Convention]

CANADA

800.873.9155

Instructor: Mark Porter, CRS

888.818.4922

Instructor: Mark Porter, CRS DEC. 10 — DENVER, COLO. [Denver Metro Association of REALTORS®]

DEC. 15 — AURORA, COLO. [Aurora Association of REALTORS®] 303.369.5549

Instructor: Rich Sands, CRS

303.300.8482

Instructor: Rich Sands, CRS RE/MAX Hallmark Lind Group Realty Ltd., Brokerage Aurora Ontario Canada

Elective Courses Elective courses vary in length and credits earned toward the CRS Designation. Please visit the CRS website for details at crs.com.

SOUTH

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

Fax: 905-727-2230

E-mail: lenard@hallmarklindrealty.com

SOUTH

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

SOUTH

GARY LANHAM GROUP

SOUTH

Bradenton~Sarasota Florida

Kent Redding BROKeR, gRi, CRs, ABR

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

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.

Geri Kenyon

CIPS, CRS, GRI, PMN, RSPS, SFR

Kent@CallKent.com

941-725-4374 Geri@GeriKenyon.com

www.CallKent.com

20 15

The Council of Residential Specialists

crs.com

43

Nov Dec

CRS

connect

SOUTH

PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS

expand your network

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.

Reach more than

30,000

CRS peers with your ad here.

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

SOUTH

MIDWEST Welcome to the tranquil beauty of the

BLACK HILLS of SOUTH DAKOTA Proud home of

ELLSWORTH AIR FORCE BASE

RAPID CITY, SD

Duane Hosek, CRS

Honest-Skilled-Motivated-Full Time

605-391-8424

duanehosek@gmail.com www.duanehosek.com

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION The Residential Specialist (USPS# 021-699, ISSN# 1539-7572) is published (bi-monthly) six times a year by the Council of Residential Specialists. The annual subscription price is $29.95. The mailing address of both the publication and the publisher is Council of Residential Specialists, 430 N. Michigan Avenue, Suite 300, Chicago, IL 60611-4092. The publisher is the Council of Residential Specialists, and the Editor is Michael Fenner. The owner of the publication is the Council of Residential Specialists.

There were 31,633 copies of The Residential Specialist published in September/October 2015; the average for the preceding 12 months was 31,170. The paid/requested outside-county mail subscriptions for the September/October issue were 30,433; the average for the preceding 12 months was 30,064. 191 free copies were distributed by mail in September/October, and the average number of free copies distributed during the preceding 12 months was 183. 709 copies of the September/October issue were distributed outside the mail (to classes, membership kits, etc.), and the average number of free copies distributed outside the mail for the preceding 12 months was 1,163. 300 copies of the magazine were not distributed in September/October (office use, leftovers), and an average of 300 copies were not distributed from issues in the preceding 12 months. The percent paid/requested circulation in September/October 2015 was 96.2 percent, and for the preceding 12 months it was 95.7 percent.

Nov Dec

44

The Residential Specialist trsmag.com

20 15

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 N O V/ D E C 2 015

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

mall security (ONLINE VERSION) Ø

According to a 2014 Deloitte survey, 55 percent of American consumers say they are concerned about protecting their personal data when shopping online, and 42 percent say they have similar concerns when shopping in stores. With the holiday shopping season fast approaching, consumers need to be more vigilant about protecting their personal data.

PC Magazine offers the following tips to shop safely online. âIf possible, avoid using a debit card for purchases. Most debit cards don’t have the same level of fraud protection that credit cards have.

If a debit card is all you have, protect your PIN by shielding the keypad with your hand or body. âVisit only trusted sites, which are more likely to be

CURBING THE WINTER BLAHS

While the weather outside might be frightful, your home’s curb appeal can still be delightful. The following ideas from HGTV.com can help make your home stand out even when it’s cold and gray outside. ÄÄ Clean the gutters. Clogged gutters can cause water damage to your home, create ice dams that can damage gutters and attract pests. ÄÄ Keep visitors safe. Clear the walkways, driveway and stairs of snow and ice so prospective buyers can make it to your front door without slipping. ÄÄ Provide proper lighting. As the days get shorter, it gets darker earlier. Lights can illuminate the path to the front door, and sconces or lanterns on each side of the door can give buyers a warm welcome.

secure. Make sure an “https” appears in the site’s URL and a lock icon is visibly displayed. Log out of all shopping accounts after completing a transaction. ÄAvoid Ä using a public Wi-Fi for your online shopping and financial transactions. Also use a password manager to create strong, unique passwords for each shopping site. ÄÄProvide as little information to merchants as possible. Online retailers do not need to know your social security number or birthdate to do business. ÄÄPurchase gift cards directly from the retailer, not through a third-party source. Some scammers will auction off gift cards on sites like eBay with little or no funds on them. ÄÄReview online bank statements frequently to confirm charges; don’t wait for your monthly statement to arrive in the mail. If you notice any questionable charges, contact your financial institution immediately.

Keep these suggestions in mind, and you can enjoy a secure holiday shopping experience.

ÄÄ Colorize the exterior. Bare trees won’t hide your home’s faded or chipped paint, so give your home a fresh coat. A front door painted in a bright color can make it stand out amidst the gray landscape. ÄÄ Use winter decorations wisely. Keep holiday decorations to a minimum, and use them to show off your home’s best features. A string of white lights around the windows can make your home look festive. ÄÄ Bring out the green. Evergreen trees and cold-weather plants, such as pansies and witch hazel, can liven up a dreary landscape.

By following these simple tips, your home can make a great first impression in any season.

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

DON’T RUIN

their holiday Ø

It’s easy to overlook our furry companions during the rush of seasonal celebrations. The holidays can be disruptive to pets’ routines, so it’s important to keep their eating and exercise habits to a normal schedule, according to the American Society for the Protection of Cruelty to Animals (ASPCA). The following tips can help keep pets out of harm’s way during the holidays. ÄAnchor Ä the Christmas tree so it doesn’t tip and fall over, injuring your pet. This will also prevent the tree water, which may contain poisonous fertilizers, from spilling.

OV

E REFER RA LS!

IL

SAY YES TO CRS EQUAL HOUSING

Also keep wires, batteries and ornaments out of paws’ reach so pets don’t get hurt. ÄÄConsider decorating the tree with bows or strands of popcorn, ribbon or garland. Avoid shiny strands of tinsel that can be tantalizing to cats, but also dangerous. One small nibble can lead to an obstructed digestive tract, severe vomiting and dehydration. ÄÄFresh holly and mistletoe might appear harmless, but when ingested, pets can suffer nausea, vomiting and diarrhea. Instead, choose colorful, artificial plants made from silk or plastic. ÄÄDon’t leave lighted candles unattended. Pets can accidentally burn themselves or cause a fire if they knock candles over. Place candles in appropriate holders on a stable surface, and extinguish them when exiting the room.

With so much activity going on, give your dog or cat a quiet place to retreat to, complete with fresh water, their favorite toy and snack, and a place to snuggle.

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

*

*

“Sell-a-bration is energizing, exciting. It will inspire you to succeed!”

- Dale Carlton CRS President

LET’S TALK BUSINESS

FEBRUARY 8-9, 2016 | LOEWS ROYAL PACIFIC RESORT | ORLANDO, FL Real estate agents will be talking at the premier networking and training event in the industry, CRS Sell-a-bration® 2016.

This annual event is where the best and the brightest come together to TALK BUSINESS. They will be talking about what works for them. Sharing ideas. Exchanging tips and tools. Discussing their successes and challenges – in real time.

Ideas will flow. Connections will form. Lasting relationships will be built.

Sell-a-bration® 2016 is your chance to expand your network among successful agents serious about business.

Your next great idea may be just one conversation away. Don’t miss this opportunity.

REGISTER NOW crs.com/sell-a-bration

ask a

CRS advice from your peers

Q:

C O M M U N I C AT I O N

Which method of communication do you find more effective when dealing with clients: social media or face to face?

“ Keep in touch with your referral clients through direct contact and keep using social media, especially Instagram and Pinterest for the millennials.” ➤ Tom Hallis, CRS ➤ Berkshire Hathaway Home Services ➤ Saint Petersburg, Florida ➤ tom@tomhallis.com

“ Both have to be a part of your business plan whether you do it personally or have someone that you pay to maintain your social media.

Real estate is a personal business, but social media has a place along with your other marketing plans.” ➤ Martha Gorham, CRS ➤ RealtySouth-MB ➤ Birmingham, Alabama ➤m artha@ marthagorham.com

“ All methods work at different times of the year and with different age and demographic groups.

I use face-to-face, phone calls, thank-you notes, and I interact on social media with my clients.

My best advice is to be consistent no matter how you choose to communicate!” ➤ Maxine Golden, CRS ➤ BrokerInTrust Real Estate ➤ Newport Beach, California ➤ maxine@maxinegolden.com

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

Nov Dec

48

The Residential Specialist trsmag.com

20 15

2015 RECORDING BUNDLE DON’T MISS ANY OF THIS YEAR’S VALUABLE EDUCATION! Purchase the 2015 Recording Bundle and access 22 hours of high-quality content on topics that are relevant to you NOW. Each one hour on-demand presentation offers real-world advice, strategies and tips from successful agents who know your business inside and out.

Timely, Relevant Education Is At Your Fingertips!

Purchase the 2015 Recording Bundle and get: • Convenient, on-demand access to all 22 topics • Downloadable slide presentations • Mobile-friendly video access for your smartphone, tablet or downloadable MP3 files

Special Members-only pricing - $396.00 (Non-member price is $594.00) Finding International Clients in Your Own Back Yard

Short Sales: A Guide to Recent Changes

Presented by: Carla Rayman, Patricia Tan

Presented by: Melissa Zavala

The Best Ways to Use Video to Attract Clients

How to Manage Client Info, No Paper Necessary

Presented by: Brian Icenhower, CRS

Presented by: Pei Lin Huang, CRS

Maintaining Your Negotiation Reputation

Marketing Plan of Attack: Series Parts 1 and 2

Presented by: Vanessa Bergmark

Presented by: Mike Parker, CRS

Client-Focused Listing Presentations that Deliver

Staying Top of Mind without Losing Your Mind

Presented by: Sean Moore

Presented by: Dan Faulkner, Jr.

5 Best Practices for Working with Transaction Partners

The Art of Real Estate Pricing

Presented by: Tonyeil Spencer, CRS

Presented by: Linda Craft, CRS

Successful Systems for Working with Buyers

Why Buyers Need You: 9 Ways to Demonstrate Your Value

Presented by: Chandra Hall, CRS

Presented by: Michael Ackerman, CRS

Turn Your Open House into a Lead-Generation Powerhouse

Get the AdVAntage: Working with Virtual Assistants

Presented by: Karl Krentzel

Presented by: Bobbi Howe, CRS

Successful Systems for Working with Sellers

How to Increase Your Income by Working with Investors

Presented by: Chandra Hall, CRS

Presented by: Dale Carlton, CRS

Getting the Most Out of Evernote

Millennials: What You Need to Know About the New Kids in Town

Presented by: Linda Davis, CRS

Operation: Take Back Your Social Media Presented by: Lindsay Listanski

Take Your Business to the Next Level: Strategies for Success Presented by: Sam Miller, CRS

crs.com/2015-recording-bundle

Presented by: Philip Becker, CRS

Aim for Success by Targeting the Right Type of Client Presented by: Jason O'Neil, CRS

Growing Your Buyer Business (recording will be added after live presentation on 11/12) Presented by: Amy Gamble, CRS

NEW PRODUCT

Featuring TOP CRS Agents

CRS INSIDER INSIGHTS SERIES 1 NOW AVAILABLE Listen in while top CRS real estate professionals speak candidly about defining aspects of their business and secrets to their success.

The inaugural Insights Series 1 features three successful team leaders—Leigh Brown, Brian Copeland, and Brenda Wade—sharing insider perspectives on what it means to grow a top-notch business.

The new series is made up of three 45-minute never before heard conversations, and listening to all of them can earn you two credits toward the CRS Designation.

Pricing: CRS members Non-members

Each 45-minute session

Bundle and Save!

$25 $45

$60 $120

Meet the panel ...

Leigh Brown, CRS

crs.com/insights

Brian Copeland, Brenda Wade, CRS CRS