The Residential Specialist March-April 2016 by The Residential Specialist

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

mar + apr

2016

THE

SPECIALIST ALSO IN THIS

ISSUE

THE

FINEOFART

PRICING It takes the keen eye and steady hand of a CRS to craft the home price that sells.

a new boom in construction buying in a flood zone plan for your retirement

new rules for drone photos the truth behind downsizing sellersâ&#x20AC;&#x2122; biggest mistakes

You can depend on HomeTeam for a faster, more efficient home inspection every time. While onsite, each team member focuses on his or her own area of expertise—which helps us cover every area, from the ground up. With our systematic approach and detailed reports you can rest assured that you have the information you need.

That’s the HomeTeam promise.

contents

Mar 20 Apr 16 vol. 15, no. 2

features

18 THE FINE ART

OF PRICING

Positioning a home to sell begins with teaching the seller how to read the market. By Donna Shryer

26 H2O NO!

FROM GLOOM TO BOOM

The new-construction market appears headed for a rebound. Here’s an in-depth look at four markets. By Regina Ludes

SAVING FOR A SUNNY DAY 30 Start planning for retirement as early as possible.

Keeping clients’ heads above water in flood zones.

By Michael Chazin

By Daniel Rome Levine

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The Council of Residential Specialists

crs.com

Mar Apr

contents

departments

Mar 20 Apr 16 vol. 15, no. 2

4 VANTAGE POINT

By Janelle Pfleiger, CRS

5 SHORT LIST

New requirements for LLC shell companies, a rental market update and how to protect against CO poisoning.

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8 COOL STUFF

CRSs on the move often use their car as an office space. Here are some products to make your mobile office more productive.

9 SMART SOLUTIONS

Drone technology offers a competitive edge, but presents legal challenges. By David Tobenkin

12 INSIDE TRACK

When looking to downsize, buyers’ definition of square footage can change, too. By Myrna Traylor

14 WINDOW OF OPPORTUNITY

Five common mistakes that home sellers make — and how to avoid them.

inside CRS 36 NEWS FROM THE COUNCIL

Highlights from Sell-a-bration® 2016, including keynote, breakout and networking sessions.

By Megan Kramer

16 PEER TO PEER

Zoe Green, CRS RE/MAX Bay to Bay, Tampa, Fla.

34 WORK + LIFE

Winners: And How They Succeed by Alastair Campbell Reviewed by Allan Fallow

40 LEARN FROM THE BEST

Leverage your professional education to differentiate yourself among consumers. By Mike Selvaggio, CRS

41 CRS CONNECT 48 ASK A CRS

Advice from the country’s top agents.

ON LY A T TR S MAG. C OM THE RESIDENTIAL SPECIALIST ONLINE Visit the website at trsmag.com to access the digital edition of The Residential Specialist.

WILDFLOWER GROUP

NEW PERSPECTIVE

Joan Rogliano, CRS, tells the TODAY Show how she supports divorced and widowed women.

Bill Kuhlman, CRS, tells Sell-a-bration® 2016 attendees how cancer has changed his life.

Coming Next Issue ... B US I N E S S I N TE L L I GE N C E F OR TH E CR S PR OFE S S I O NA L

EDITOR Tony Priore tpriore@crs.com 800.462.8841 2016 ADVISORY PANEL Moderator: Clark Niblock, CRS Co-Moderator: Marylea Todd, CRS 2016 ADVISORY PANEL MEMBERS Paula Angelopoulos Urbinati, CRS Sarah Delphine Coleman-Lee, CRS Lois Cox, CRS Rosemarie Doshier, CRS Barbara DuDeck, CRS Dionne Housley, CRS Michael Klinger, CRS Bradly MacLay, CRS Joseph Mathews Colleen McKean, CRS Lynn Morris, CRS Vivian Pike, CRS Jacob Sanders, CRS Beverlee Vidoli, CRS CONTRIBUTING WRITERS Michael Chazin Megan Kramer Daniel Rome Levine Regina Ludes Donna Shryer David Tobenkin Myrna Traylor OFFICERS: 2016 President Janelle Pfleiger, CRS Chief Executive Officer Lana Vukovljak 2016 President-Elect Leigh Brown, CRS 2016 First Vice President Gary Williams, CRS 2016 Immediate Past President Dale Carlton, CRS

PUBLICATION MANAGEMENT www.glcdelivers.com Publishing Manager Phil Malkinson Art Director Scott Oldham 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 2016 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.

The Neighborhood Issue

A glimpse into the challenges, opportunities and marketing strategies associated with working in various neighborhood markets: Gentrifying Neighborhoods How can agents identify gentrifying neighborhoods on the verge of a renaissance? Ethnic Neighborhoods What special needs should be addressed when working with an ethnic population? Unfamiliar Neighborhoods When expanding to a new market, what relationships should you build to gain traction and visibility? Retirement Communities What amenities are baby boomers seeking?

PLUS:

How do you protect yourself from data disasters? What are the best tools to use to secure and back up your data? Would you like to be a source for a future story in The Residential Specialist? Send an email to tpriore@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.

crs.com

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 A. Janelle Pfleiger, CRS, CLHMS, GRI, CDPE 2016 president

AND WHAT A

Sell-a-bration Ø

IT WAS!

This year’s conference at the Loews Royal Pacific Resort in Orlando, Florida, on February 8 and 9 truly embodied the show’s theme: “Let’s Talk Business.” Sell-a-bration® 2016 included nearly 30 educational sessions and three amazing keynotes. But that’s not all. It also focused on helping attendees make meaningful connections with each other by including several new networking programs. This year, Sell-a-bration® participants were greeted by a number of CRS volunteer “Hosts” who dedicated their time to helping new and veteran attendees connect and get the most out of the conference. Sell-a-bration® Hosts also took pictures with attendees and posted comments on Facebook and Twitter social media sites. In fact, a whopping 800 posts were recorded in just two days — all viewable in real time on video monitors at the conference. Attendees also enjoyed an entertaining networking game with fantastic prizes and making business “matches” at a new speed networking session. I left Orlando feeling invigorated with great new friends and a host of new ideas to build my business. I hope you’ll take a few moments to check out the pictures and stories from this year’s event in the Inside CRS section of this issue. I am pleased to report that Sell-a-bration® 2016 was a great success. In fact, a record number of attendees already preregistered for next year’s Sell-a-bration® 2017. If you haven’t done so, I encourage you to visit crs.com and take advantage of the special early-bird pricing before it expires. See you in Phoenix next year! Cheers,

Janelle Pfleiger CRS 2016 President

Mar Apr

The Residential Specialist trsmag.com

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[short list]

+ industry headlines + statistics + trends

THE LAUNDROMAT

is closed

The U.S. Financial Crimes Enforcement Network (FinCEN) has issued Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the individuals behind LLC “shell companies” that are used to pay all cash for high-end residential real estate in the borough of Manhattan in New York City, and in Miami-Dade County, Florida.

The increasing scrutiny results from the concern that some such luxury property transactions are attempts at money laundering by corrupt foreign political figures, drug lords and other nefarious characters looking to hide their ill-gotten gains anonymously in U.S. real estate. NAR reports that all-cash sales rose to 27 percent of all real estate transactions in November, and

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individual investors, who account for many of those cash sales, purchased 16 percent of all homes sold in November. “Over the years, our rules have evolved to make the standard mortgage market more transparent and less hospitable to fraud and money laundering,” says FinCEN director Jennifer Shasky Calvery. “But cash purchases present a more complex gap that we seek to address.”

The Council of Residential Specialists

crs.com

Mar Apr

NUMBER OF RENTER HOUSEHOLDS (THOUSANDS) 15,000

14,182

[short list]

6,000 3,000

11,101

9,264

8,732

9,000 + industry headlines + statistics + trends

11,594

11,265

12,000

7,062

7,174

4,873

4,532

2,684

2,462

8,718 6,181 3,834 Source: The Joint Center For Housing Studies of Harvard University

15 20

199

0 Lowest Quintile

Lower-Middle Quintile

Middle Quintile

Upper-Middle Quintile

MAKING rent Ø

The Joint Center For Housing Studies of Harvard University (JCHS) recently released an in-depth, decadelong (2005–2015) study on the United States housing rental market, “America’s Rental Housing: Expanding Options for Diverse and Growing Demand.” The study shows an increase of all types of renters across the board shortly after the housing peak of 2004 and the housing bubble burst in the following years. Lack of income, affordability, financial risk and millennials who are apprehensive to settle down are just a few of the trends that have fueled the number of renters in all age, income and household categories. Although renters under 30 account for the largest single share of renters, households over age 40 now account for the majority of renters. The largest increase in renters among the different age groups from 2005 to 2015 were renters in their 50s and 60s, with a 4.3 million increase. It is no surprise that those earning under $25,000 annually make up the highest share of renters: This group has

increased by 4.0 million from 2005 to 2015. However, the data indicates that those earning at least $50,000 annually (3.3 million increase) and those earning $100,000 annually (1.6 million increase) are not far behind. The most common renter household type, single people living alone, have accounted for 2.9 million new renters since 2005. Despite the popular belief that the second most common renter housing type are young unrelated adults living together, the study finds that families with children are the second most common, rising by 2.2 million in the past 10 years. It is clear that renting is on the rise for all types of American households. The construction of multifamily housing and conversions of single-family homes to rentals has not been able to keep up with the rising demand for rentals. Consequently, the cost of rent has increased as renters are still trying to gain financial ground. Meeting this demand for housing with a wide range of affordable options is the issue our industry is faced with, the study finds.

HAS THE ‘SMART HOME’ ARRIVED?

A new study finds that many American homeowners are interested in so-called “smart home” technology. The Coldwell Banker Real Estate Smart Home Marketplace Survey finds that homeowners are willing to pay extra for smart-home tech, and 45 percent either own smart-home technology already or plan to invest in it in 2016. When it comes to how consumers define what makes a home “smart,” the top selections were security (e.g., locks and alarm systems — 63 percent), temperature control (e.g., thermostats and fans — 63 percent), lighting (e.g., light bulbs and lighting systems — 58 percent) and safety (e.g., fire/carbon monoxide detectors and nightlights — 56 percent). More than half of homeowners (54 percent) say they would purchase or install smart-home products if they were selling their home and knew that doing so would make it sell faster. Of homeowners who said they’d purchase or install smart-home products, 65 percent would pay $1,500 or more and 40 percent would pay $3,000 or more to make their home smart.

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Highest Quintile

SILENT BUT DEADLY With cold temperatures affecting much of North America this winter, it’s worthwhile to address a potential hazard that could arise with increased use of fuel-burning appliances such as furnaces and water heaters: carbon monoxide. Carbon monoxide (CO) is an odorless, colorless gas produced by the combustion of fuels such as natural gas, oil and propane in devices including furnaces, water heaters and stoves. These items are normally designed to vent the CO to the outside, but harmful interior levels of CO can result from incomplete combustion of fuel, improper installation, or blockages, leaks or cracks in the venting systems. Very high levels of CO can lead to incapacitation or death, with victims sometimes never having been aware they were being poisoned. Homeowners can take action against potential carbon monoxide poisoning by taking the following steps: ÄÄ Never use gas stoves or ovens to heat the home, even temporarily. ÄÄ Have all fuel-burning appliances professionally inspected annually, preferably before the start of the cold weather season when heaters and furnaces are first used. ´´ These appliances include gas stoves and ovens, furnaces and heaters, water heaters and gas clothes dryers. ´´ All such devices should be properly installed and vented to the outside. ´´ If repairs are necessary, be sure they are performed by a qualified technician. ´´ Always use the proper fuel specified for the device. ÄÄ Have flues and chimneys for fuel-burning fireplaces or wood stoves inspected regularly for cracks, leaks and blockages that could allow a buildup of CO to occur. ÄÄ Do not start a vehicle in a closed garage, or idle the engine in the garage even when the garage door is open. ÄÄ Gasoline-powered generators and charcoal grills must never be used indoors. ÄÄ Purchase a CO detector (either battery operated or plug-in) and follow the manufacturer’s instructions for proper location and installation. Installation of working CO detectors in residential properties is now required by law in many states. ÄÄ Learn what to do if the CO alarm activates. If anyone in the home experiences symptoms such as fatigue, dizziness, blurred vision, nausea or confusion, everyone should leave immediately and seek medical attention. If no symptoms are felt, open doors and windows immediately and shut off all fuel-burning devices that may be potential sources of CO.

green Ø

IS GOOD

Demand for environmentally friendly green homes will play an increasing role in the overall housing market, according to a recent study by Dodge Data & Analytics, “Green and Healthier Homes: Engaging Consumers of All Ages in Sustainable Living.” The study, which was conducted in partnership with the National Association of Home Builders (NAHB), finds that 54 percent of homebuilders are currently constructing at least 16 percent of their new homes green and 39 percent of remodelers say at least 16 percent of their projects are green. Although green construction can be more costly, a high percentage of homebuilders and remodelers plan to build that way, the study finds. This higher cost is an obstacle to building green, but it does not appear to have dampened the drive toward construction and remodeling of environmentally friendly homes. The study finds that the greatest demand for green homes does not come from millennials. Rather, consumers age 55 and older are driving the market. “Builders and remodelers have long recognized that green is the future of homebuilding,” says NAHB chairman Tom Woods, a homebuilder from Blue Springs, Missouri. “Most builders recognize that they need to be at least conversant in green to stay competitive.” One key factor driving the growth of green is the association of green homes with healthier living. Home builders and remodelers certainly recognize the potential: Most (83 percent) believe that consumers will pay more for homes that are healthier.

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The Council of Residential Specialists

crs.com

Mar Apr

OFFICE

[cool stuff]

acquisitions on a theme

on wheels Free

THE WAZE WAY

Your car is not the traditional office. However, for many, working from their car is their daily routine. Limited, awkward spaces, traffic, bad weather and car trouble are all things that can make this less-than-ideal workspace even more challenging. Here are some products to make your life on the road better.

DESK ON-THE-GO

Are you spending a large portion of your day stuck in traffic or trying to find a quicker route? With Waze, your daily commute just got easier. It’s the world’s largest community-based traffic and navigation app, and its goal is to save drivers time and money. Plus, it’s easy to use. Drivers in your area share real-time road information, such as traffic, construction or accidents, and Waze is instantly updated. Just type in your destination and Waze will identify the quickest route based on current road conditions. If an accident pops up, Waze will automatically alert and reroute you. It also finds the gas station with the lowest prices along your route based on community-shared gas prices.

A desk is an ideal workspace for many professionals — unfortunately, they don’t fit in cars. So if your car is your $ office, you’re without a designated space to work. Luckily, 319.00 the AutoExec® GripMaster 03 Auto Desk is a terrific substitute. It fits perfectly in the passenger seat for easy access, and features a flat surface to organize things like a traditional desk. A pull-out writing station with built-in clipboard allows you to comfortably jot down notes. There’s also plenty of file storage and compartments for other items you want to keep organized. Plus, the Auto Desk has an iPad mount, keeping your tablet secure and easily accessible on the go.

waze.com

autoexec.com

AN EASY JUMP-START

A dead car battery is a major inconvenience, especially when you have a busy day. Fortunately, the Wagan Tech iOnBoost™ V10 will make getting back on the road fast and easy. This jump-starter may be small, weighing only 2.5 pounds, but it packs a lot of power, offering 700 peak amps and 400 cranking amps. The simple design and instructions make the process very straightforward. The work light and built-in over-voltage, over-charge, short circuit and reverse polarity protections make for a safe jump-start every time. What sets $ 169.95 the iOnBoost™ V10 apart from other battery jumpers is that it features two USB ports and a DC Socket for charging electronic devices, such as your smartphone or tablet. wagan.com

SHARED LOCATION

Free

A mobile office means a Wi-Fi hotspot is a necessity. The Karma Go turns an LTE connection into your personal signal, guaranteeing to get you online anywhere so you $ 149.00 never have to worry about finding + data Wi-Fi again. The pocket-sized device is highly portable, but the highlight feature is that you have your choice of data plan. The Refuel option gives you prepaid data, starting at $14 for 1GB, with no expiration, and the Neverstop option offers unlimited data for a $50 monthly fee. Neither plan ties you into a contract, allowing you to switch between the two plans or cancel at anytime.

glympse.com

yourkarma.com

FUTURE RELATIONSHIP While working from your car all day, it would be nice to feel closer to home — and that may be possible sometime in the near future. At the 2016 Consumer Electronics Show, representatives of Ford and Amazon presented their plan of connecting Ford’s Sync Connect and AppLink services with Amazon’s Echo home automation hub and its Alexa voice-concierge service. From the car, you would be able to access any of the Internet-enabled smart devices (lights, home security, thermostats, garage door openers, etc.) that are compatible with the Echo and Alexa, giving Alexa commands, such as “open the garage door.” You could do vice versa from home, such as asking Alexa if your car doors are locked. No release date has been set. Search for “2016 CES” at media.ford.com.

Mar Apr

The Residential Specialist trsmag.com

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GOOD KARMA

Why would you want someone to track your location? The truth is that a location-tracking app, such as Glympse, can be beneficial to professionals who are always on the road. The app allows you to share your exact location through GPS with anyone for a set period of time — both chosen by you. Simply select a contact, set duration of time the link can be viewed and then hit send. No special software is required to view a Glympse, since the link can be viewed on any Web-enabled mobile device, tablet or desktop. As a professional, you can share your location and ETA with clients. And when you’re off the clock, it’s a great way to give your family an ETA when you’ll be home.

[smart

HOLD THE

solutions]

streamlining your business through technology

drone

Drone technology offers a competitive edge, but presents legal challenges. By David Tobenkin

The potential for using drone technology to improve the presentation of properties and add value in additional areas is sky high, but at least at present, so are the regulatory and legal challenges of doing so, say REALTORS® who are using the technology to promote their properties. Ann Buchanan, a REALTOR® at Keller Williams Realty, says her 73-acre hunting property listing in Sumner County, Tennessee, stalled on the market for seven months but sold within two weeks after she added drone footage showing trails, vegetation and other property attributes. “I think it helped,” Buchanan says. “Drone footage is a big step up from normal pictures of the house and rooms, and in this case, it was difficult to display an expansive property like this adequately without drone footage.”

Preflight Checklist

However, use of unmanned aircraft systems (UAS), or drones, for commercial purposes, including the marketing of real estate, requires authorization from the Federal Aviation Administration (FAA) via a Section 333 exemption, notes an FAA spokesperson. That presents important questions for REALTORS® who wish to use drone footage. Those who wish to obtain a waiver must file a petition of exemption with the FAA, and must meet a variety of conditions, including demonstrating that the petitioner has at least

an FAA sport/recreational pilot’s license. The FAA advises that Section 333 petitioners should allow up to 120 days after submission for a decision to be made on a petition of exemption, though it says that decisions since mid-2015 are now tending to be made more swiftly. Use of a third party, such as a drone-operating video production company, to take drone footage is the second way to obtain footage. However, that individual should have a section 333 waiver from the FAA, says a National Association of REALTOR® (NAR) spokeswoman. The potential penalties for unauthorized drone use are $10,000 per flight. The FAA actively investigates reports of unauthorized drone use and, as a first step, will often send educational letters to those it believes have engaged in unauthorized use. One REALTOR® in San Antonio says he used his own drones to generate video footage of his properties from 2013 until he was investigated by FAA agents after competitors reported his drone use to the FAA in July 2015.

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The Council of Residential Specialists

BY THE NUMBER S The potential penalties for use of unauthorized drone use are

10,000

per flight.

crs.com

Mar Apr

[smart

solutions]

streamlining your business through technology

Aerial view of Fort Collins, Colorado, shot from a low flying drone. Images taken from a drone can yield unique perspectives of a property that are not available with traditional landbased photography.

Mar Apr

After the FAA warned him of potential fines for continued commercial drone use, the REALTOR® says that he ceased flying drones and sought a Section 333 exemption, which he obtained in December. But even after receiving the exemption, he says that he has not resumed using drones commercially due to the onerous terms imposed by the exemption letter he received. “Even after being certified, the letter requires us to provide 40 hours prior notice of our intent to collect aerial footage, a description of where we plan to collect it, approval of a flight log by the FAA, and subsequent logging of where we flew,” says the broker. “Our exemption has 32 different demands to be met each time we fly. It’s ridiculous.” The authorizations and conditions vary by exemption letter, those interviewed say. Jeff Galindo, a Las Vegasbased REALTOR® and principal broker at Real Estate Strategies, LLC, who in April 2015 was granted a section 333 exemption, says as an experienced, licensed pilot, his exemption contained far fewer requirements and did not, for example, require the filing of flight plans.

The View from Above

FAA requirements to use drones commercially could change significantly later this year, when the FAA is expected to issue final rules regarding commercial UAS use. In February 2015, the FAA proposed rules that would allow the use of small drones for non-recreational purposes. Under the proposed rule, the person actually flying a small UAS would be an operator. An operator would have to be at least 17 years old, pass an aeronautical knowledge test and obtain an FAA UAS operator certificate. To maintain certification, the operator would have to pass the FAA knowledge tests every 24 months. A small UAS operator would not need any further private pilot certifications (i.e., a private pilot license or medical rating). When operating the drone, the operator would be required to maintain a visual line of sight of the drone.

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SEND IN THE DRONES?

So you want to generate your own drone footage? Currently, the major barrier is the time and cost of obtaining a pilot’s license. After achieving that, one REALTOR® says it took him and his partner five hours to prepare a section 333 application, which was submitted online through regulation.gov at no cost. A wide variety of drones are available for purchase, with capabilities increasing and prices falling as their penetration increases. A model for $1,300 or so will likely contain all the technical capabilities a REALTOR® will need and will include the camera. REALTORS® say that the more challenging aspect of drone use is the last step — generating polished video content. While obtaining the basic video is not difficult, editing and enhancing raw footage to derive professionallooking final footage may be prohibitively time-consuming or expensive, especially for those who do not already have those capabilities, such as video editing software like Apple’s Final Cut or Adobe’s Premiere. There is no guarantee, however, that the final rules, which the FAA says could be issued by late spring 2016, will contain those provisions. FAA rules are not the only legal issues presented by drone use. States and cities can also impose limitations upon the manner in which drones are used. The challenges often vary by location: using drones to take footage in crowded urban settings is likely to be more difficult than doing so in a rural location. Other FAA rules also may limit use of drones in certain areas — there is a 30-mile no-fly zone around Washington, D.C., for example. In addition, there are obvious liability issues presented, such as injuring third parties or their property through off-target drones. Realty professionals will want to ensure that their business liability policy covers drone use if they wish to operate a drone, and should ensure that a third party who takes drone footage for them is covered by insurance and, ideally, names them as an additional insured. Even privacy issues are posed by drone use. The San Antonio REALTOR® says a colleague in his market has been sued for displaying drone footage that included identifiable photography of the neighbor of the listed property.

Flight Plan

While the challenges abound, the potential upside for using drone footage makes overcoming those challenges very attractive. Buchanan notes that she has often used drone footage to display the neighborhood of a listing as well as the property itself. She says she may expand that to include footage of the amenities of the larger community. Galindo uses drone footage for a minority of properties and absorbs the cost of the footage himself, rather than passing it along to customers. He says he foresees a future in which drone technology will allow REALTORS® to offer a host of services beyond showing property amenities to potential buyers. For instance, drones employing infrared imaging to measure property energy efficiency could assist in home inspections for difficult locations, such as roofs, and to evaluate other home systems. “It will enhance the value of products used in home production today,” Galindo says. Even when the FAA final rules are approved, an NAR spokeswoman says she foresees that most REALTORS® will use third-party drone operators for footage because they will be more efficient and skilled at taking the footage and

processing it. Buchanan says she paid an extra $150 to her photographer on top of standard fees of $110 to $175 for drone-shot video footage. The San Antonio REALTOR® says that he still hopes to eventually use his drone because after the fixed costs of obtaining his license and buying the drone, it would cost him a fraction of the $600 per listing he estimates he would pay a third party to do it himself. NAR has vigorously supported greater REALTOR® ability to use drones in their businesses. “Drone technology offers a tremendous opportunity for the business of real estate and the broader economy,” says NAR President Tom Salomone in a statement. “That’s why NAR continues to support the integration of drones into the National Airspace and a regulatory landscape that allows for the responsible commercial use of drones. We will continue working with the FAA and our industry partners to keep safety and privacy at the front of the conversation and ensure a clear path for REALTORS® to take advantage of this technology.”

Find more information about FAA rules and regulations on drone use at faa.gov/uas.

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

GADGET INSPECTOR

THE APPLE iPAD PRO IS LIGHT AND POWERFUL The iPad Pro is Apple’s latest gadget for professionals everywhere — and it won’t disappoint. Retaining the iPad’s thin and light design, the iPad Pro offers advanced screen technology in a larger format. The 12.9-inch screen provides 78 percent more display area than the iPad Air 2, allowing users to view two applications at once. And with the highest-resolution and a new MultiTouch subsystem, the new screen technology makes interactions easier and faster, allowing for more creative capabilities, including the Apple Pencil. The new iPad also introduces the Smart Keyboard, a full-size, portable keyboard that connects easily to the iPad Pro’s Smart Connector. For more information, visit apple.com/ipad-pro. Starting at $799.

THE NEXTBIT ROBIN CAN ACCESS CLOUD STORAGE There’s a new kind of smartphone in town with the recent launch of the Nextbit Robin. Nextbit’s co-founders describe Robin as a “cloud first, design-forward smartphone.” In addition to 32GB of internal storage, the Robin can access 100GB of cloud storage, so instead of deleting items from your phone when the storage is full, you can move them to the cloud. And the Robin isn’t sold through a carrier: it uses a direct-to-customer model to keep costs down. For more information, visit nextbit.com. Starting at $399.

USE WALLAPOP APP TO SELL ANYTHING The Wallapop app is the perfect solution to help you get rid of stuff you no longer want. Simply take a picture, write a description, set a price and upload to sell anything and everything to buyers in your local community. It’s quick, easy and safe — allowing sellers and buyers For more information, visit us.wallapop.com. Free to pick a nearby meeting spot, while (iPhone and iPad compatible). keeping your address confidential.

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The Council of Residential Specialists

crs.com

Mar Apr

[inside track]

what’s trending in real estate

THE INCREDIBLE SHRINKING

generation When looking to downsize, buyers’ definition of square footage can change, too. By Myrna Traylor

As they have done for decades, the baby boomers are exerting an influence on the marketplace. When it comes to their so-called “empty-nester” home sales and purchases, this age group is making interesting choices that affect builders BY THE NUMBER S and REALTORS® alike. The average size of According to the homes purchased by 2015 NAR report buyers over 50 is on Home Buyer and 1,830 sq. ft. Seller Generational Source: NAR Home Buyer and Seller Generational Trends Report 2015 Trends, younger

Mar Apr

The Residential Specialist trsmag.com

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boomers (born 1955–1964) and older boomers (born 1946–1954) comprise 31 percent of homebuyers, nearly matching the 32 percent share of the market held by the youngest and largest segment of buyers, the millennials/Gen Y/Gen Next (born 1980–1995). But purchases made by the boomers differ in terms of the primary reason for buying. As opposed to the youngest and Gen X (born 1965–1979) buyers who are purchasing a first home out of a desire for home ownership, many of the younger boomers cite job relocation (16 percent) and a desire for a smaller

home (13 percent) as their reason for buying, while older boomers are looking for a home in which to spend their retirement (15 percent). When it comes right down to it, though, what are these buyers looking for?

Less Square Footage (but Not Really)

As is often the case when it comes to determining buyers’ true desires, what they say they want is somewhat different from what they will actually choose once they are presented with a specific property. Jean Groesbeck, CRS, SRS, Certified Real Estate Instructor WA, of Coldwell Banker Bain and Jean Groesbeck & Associates, LLC, in Anacortes, Washington, reports that most of her clients want to downsize. “Most often, downsizing also involves the need to purchase smaller scale furniture,” she says. “And most boomer buyers have a hard time

time to fly

maintenance is handled through condo or HOA fees. Amenities such Barbara Carroll, CRS, GRI, of Randall REALTORS® in Rhode Island, hates the term as gas fireplaces that don’t require hauling in wood are also a plus, as “empty-nester.” She advises clients to think of this phase in their lives as “re-nesting.” are energy-efficient homes that can Here are some of the tips REALTORS® can share with their own clients: keep operating costs low. ÄÄ Set aside about a year to de-clutter your home. As you free yourself The personal mobility issues from all your belongings, you’ll start to feel better. may not, however, be top of mind. ÄÄ Tell your kids to come get their stuff. Tell them you will rent a storage “Some people say they don’t care unit for two years for anything they can’t take away, but after that they either have to pay for about having stairs,” says Groesthe storage or get rid of whatever is inside. beck. “But then I ask them how ÄÄ Calculate how much you could save in taxes by moving to a community where there are fewer many of their friends have had or no schools, such as a resort community with few year-round residents. Think about what knee or hip replacements, or if a you can do with this extra money. ÄÄ Don’t be emotionally tied to your biggest investment. You can probably sell the house for far hospital bed could fit into a mainlevel room, and then they see the more than you could get out of a reverse mortgage; you’re not going to get 100 percent of advantage of main-level living.” the appraised value in that arrangement. If you are thinking about it, talk to an accountant Even when it comes to resale about how funds derived from a reverse mortgage will affect your Social Security and values, Groesbeck counsels buyers Medicare payments. about undertaking small renovations that make the home more accessible or not shunning those parting with their stuff, which, in home serves — at least initially — features if they are already in place. turn, makes room size a challenge. as a second, vacation home. And “If you think about features such I’ll find a client the perfect house buyers who are planning on aging as a lower counter in the kitchen based on what they say they want. in place want separate quarters for They say the rooms are too small a caregiver, whether that is a family or grab bars in the shower — as long as they are architecturally and they want the same floor plan member or paid helper. cool — the cost for those features [as their current home] with larger So, in a very general estimation, is much less than the cost of getrooms, only they don’t want more Connors sees that couples who ting in-home care or moving to an square footage! Most clients don’t are leaving homes of 3,000 to understand how a square footage extended care facility any sooner 6,000 sq. ft. will be satisfied with number works. They just pick a than you have to,” says Groesbeck. 2,400 to 3,000 sq. ft. “The single random number that is some per“It’s all part of buyer counseling.” 55+ buyers will usually look for centage less than what they have.” the same 2,200+ sq. ft. minimum if “I find that when clients say they Antonia “Toni” Connors, CRS, GRI, their house [before widowhood or want to downsize, what they most ABR, CSP, of Nothnagle REALTORS® divorce] was 3,000 sq. ft. or more,” often mean is that they want to simin Pittsford, New York, has had a she says. Buyers who are leaving plify and reduce monthly expenses,” similar experience with some of homes of 2,000 sq. ft. or less continues Groesbeck. “I believe the her buyers. “In my opinion, they do are usually happy with 1,200 to mindset of the boomers has been not want to relinquish much square 1,400 sq. ft. in their new home. forever changed by the Great Recesfootage, but they do want first-floor sion. The boomer buyer has lived living,” she says. Her buyers also Features and Amenities through the inability to sell real want to have dedicated spaces for to Suit a New Lifestyle estate during down times, and now home offices, man caves or craft-and- Beyond the question of square they are very concerned about holdhobby rooms, which can support footage, CRSs are helping prospecing costs and potential appreciation. work or leisure activities as the tive buyers appreciate how a new It plays a significant factor in their residents transition into retirement. home will support a lifestyle that purchase decision and often trumps Another factor working against balances the leisure of retirement the other features of a home.” keeping total square footage down with the possibility of a change is the number of bedrooms buyers in personal mobility. With retireMyrna Traylor is a Chicago-area freelance writer. want. Besides a well-appointed ment comes the opportunity for master, these buyers look forward recreation and travel, so buyers are Read more about baby boomers’ buying to having rooms for grandchildren very interested in either condos trends at realtor.org/reports/homebuyer-and-seller-generational-trends. or other visitors, particularly if the or townhouses where outdoor

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[window of opportunity]

strategies to grow your business

MAKE NO

mistake Five common mistakes that home sellers make — and how to avoid them.

Things that are safety issues or been spooked when they discovered big-ticket items are always a focus,” the roof needed repair,” she adds. says Amy Broghamer, CRS, of the When buyers get wind of necThe home-selling process is a Amy B. Sells Team with Keller Wilessary repairs, one of two things complex one, and can be full of liams in Cincinnati, Ohio. These usually happen: they lower their opportunities for sellers to come out include electrical issues, water offer or they back out of the deal. on top — or for buyers to score the damage, rotten or chipped flooring, “I ask [sellers] if they would pay $5,000 for someone to paint the upper hand. While REALTORS® can’t or a leaky roof. Broghamer recomtrim in their home. Of course they predict everything that could botch mends sellers get a pre-inspection a sale, they can study up on common to uncover necessary repairs. say “no.” I then tell them folks will home-selling mistakes that end up “Sometimes there is a big surprise deduct a crazy amount of money for even minor things that you costing sellers both time and money. for the seller. In that case, there is can do over a weekend,” says Kim This will not only help agents and plenty of time to investigate and Laforet, CRS, GRI, Associate Broker their clients avoid financial pitfalls, get competitive bids to correct the with Coldwell Banker Hubbell but will also help agents work with issue,” Broghamer continues. “Say BriarWood in Lansing, Michigan. stubborn or first-time clients and it’s a roof that needs to be replaced. “The buyers also could simply boost seller confidence. Since the seller knows before they walk away from the sale, causing list, they can call a few roofers and the seller to have to put their home Overlooking get some bids.” Once the roof is back on the market,” Broghamer Repairs repaired, Broghamer says, sellers TAKE Whether large or small, can list the home 1 making repairs before “with a new roof. Had BY THE NUMBER S selling is a must, or a seller is guar- we not done that, we could have gone under anteed to lose money. “I work to counsel my clients on what a buyer contract with a buyer of sellers’ agents believe staging homes increases the dollar value buyers are willing to offer. and they could have is going to ask for, before they ask. By Megan Kramer

MIS

67 %

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adds. “Now there is more time being lost in pending status, and the next buyer might not make the same offer, so the seller may have lost money by not fixing the issue.”

MIS TAKE

Overpricing the Home

Buyers are going to compare a sale price to other homes in the area, so a home should be priced competitively. REALTORS® can provide a comparative market analysis to help establish a competitive price. Experienced agents also have their own system for helping sellers price their homes. “When I list a home, I tell them I have used a tactic on pricing homes that has worked every time — to get more, price it for less,” Laforet says. “Sometimes they agree and sometimes they don’t, but every time I have a seller that agrees, the home sells for the top value I estimated it would sell for based on the comps — or more.” A competitively priced home creates a buzz among multiple buyers, Laforet explains, and so multiple offers come in at full or over full price. 2

MIS TAKE

Over-sharing with Buyers

Another costly mistake is allowing sellers to have too much communication with potential buyers, says Nancy Braam, CRS, with RE/MAX Whatcom County Inc. in Bellingham, Washington. In a blog titled “Why Home Sellers Should Never Talk to Buyers,” Braam explains that sellers don’t have the negotiating skills that REALTORS® have, or if they do, they are too emotionally invested in the property and give away too much information. Braam advises that sellers make themselves scarce during showings, or, if they must be around, to think carefully about what they disclose. 3

“Think of it this way: anything you disclose about your motivation is asking the buyer to offer less. In fact, pretty much any time you open your mouth you are letting out clues that you don’t even hear; clues that tell the buyer more than they should know about how to get the upper hand in negotiations,” Braam writes. “Staying out of the way is the best way to preserve what negotiation advantage you have.”

MIS

Poor Staging

INSPECT ME TWO TIMES Making repairs before selling a home is an important part of the process. Some repairs are obvious — new carpets or flooring, fresh paint — but some problems may be hidden to even the owners. A pre-inspection is a good way to detect possible hazards and give sellers confidence when going into a sale. “The National Association of REALTORS® has found that the most stressful part of a sale for a seller is the unknown period of the inspections,” says Amy Broghamer, CRS, of the Amy B. Sells Team with Keller Williams in Cincinnati, Ohio. “Doing a pre-inspection is a great way to alleviate that stress. I tell them that another inspector — if the buyer chooses that route — may find something else; that’s their job. However, it won’t be a huge item or a big surprise.” Broghamer says she requires a pre-inspection in certain situations — if the home is old or has been “flipped,” or if the clients are tight on funds or equity — in order to make the sale and purchase work.

Both a cluttered home TAKE and an empty home 4 will be unappealing to buyers, so having proper staging and curb appeal is important. “I have found that my sellers who do their homework upfront always come out ahead,” says Danni Springfield, CRS, ABR, Lead Agent with The Springfield Group of Keller Williams Legacy in San Antonio, Texas. “Finishing off The Wrong minor handyman items, like replacAttitude TAKE This includes both ing rotten trim and adding a fresh 5 coat of paint, go a long way toward patience and setting a quick sale at the highest price expectations too high. Not every possible. Then we bring in profesprospective buyer will submit a sional staging and photography. bid — some are just window shopMy stagers ‘edit’ and remove items ping or are interested in a nearby that they feel are unnecessary and home. Reminding clients that many times they bring in pieces browsers are part of the homeor accents to complete the look.” selling process will help keep them Staging might sound like a lot of from being disappointed. work or off-putting to sellers who It’s also important to remind are emotionally attached to their sellers that once they do receive an current layout, but REALTORS® offer, they should take it seriously. should remind them that a little “I tell them when we list the house primping can go a long way. “I that they should never think of it show pictures and tell success stoas a first offer, but as potentially ries of prior listings that took my the only offer. That way we treat advice, did a minor transformation each offer with the respect it and had an incredible outcome,” deserves,” says Laforet. Springfield says. “My stagers are Megan Kramer is a freelance writer based in also excellent at talking about how Chicago. important it is to appeal to the widest range of buyers possible.” Learn more about the importance of Proper photography is also a must, sellers making needed renovations before listing at www.realtor.com/advice/sell/ as a majority of buyers are shopping whip-your-home-into-shape. for homes online these days.

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RE/MAX Bay to Bay, Tampa, Fla.

ZOE GREEN, CRS

[peer to peer]

profiles of people to watch

How does being a broker affect how you conduct your business? My No. 1 concern is whether I am giving my sales agents the tools they need. Do they feel 100 percent supported in their business? I explain to each of them how the designations they “ I look at being a CRS as having a earn can help their business.

What are the snowbirds looking for? Are they downsizing? Most of them are looking for condos, maintenance-free properties or senior communities with amenities like beaches, boating or golf courses.

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master s or doctorate in real estate. You could say I ve taken my education to the highest level possible. It gives me an edge against the competition, especially in a tight market.”

Have you stayed actively involved with CRS? Absolutely — I was the Florida state membership chair for 2015, and last year my mentor and I worked with our local CRS and put together a special double class called “It’s a Price War to the Door” and “Negotiations: The Games People Play.” I am pleased to say it was very well attended! Are you still in touch with your mentor? My mentor now works for me! She still mentors me as a broker, and having a mentor is one of the best things you can do to propel yourself in this business. With that, as

well as being a CRS, you have a system that is invaluable. For example, the CRS referral network works beautifully; as a destination market, we are lucky to be on the receiving end of referrals. Today, there are too many agents relying on online leads, and they don’t make the effort to form relationships with clients. This is just wrongheaded. Clients really need someone they can trust and rely on to protect their interests. I am pleased to say that my agents are highly focused on relationship building.

What gets you most excited about your business? I love to help agents grow in their careers. It used to be the closings and watching the families of my clients grow and change. Now, I get excited by mentoring agents who can take care of the listings and closings for their own clients. Some of my agents have been working with me for 20 years — they are sticking with me and I with them. In business as in life, loyalty is a great thing to have.

Zoe Green achieved her CRS Designation in 2005. She can be reached at 813.748.0172 or at zgreen@remaxbaytobay.com.

Photo: Steve Widoff

What is your market like in Tampa Bay? I have four offices located in the Tampa Bay area. It is a very tight market — we have very little inventory. We have to be highly competitive to get listings. One segment of our business is multi-seasonal, but the other segment, in Pinellas County, is a snowbird market.

How did you decide to become a CRS? I was encouraged to become a CRS by my longtime mentor, Becky Eckley. She is a real estate broker who had given me a part-time job as a secretary in her office, then I became a full-time assistant, and eventually got my license and became a REALTOR®. When the time was right, she encouraged me to become a CRS. I look at being a CRS as having a master’s or doctorate in real estate. You could say I’ve taken my education to the highest level possible. It gives me an edge against the competition, especially in a tight market. If a client is going to hire someone to make one of the biggest investments they will ever make, why wouldn’t they choose a CRS — a person who is working at the top their field?

Zoe Green, CRS, has four offices in Tampa Bay, Florida. She and her husband live near a marina, and boating and fishing are favorite hobbies.

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242,000 $ 243,000 $ 244,000 $ 245,000 $ 246,000 $ 247,000 $ 248,000 $ 249,000 $ 250,000 $ 251,000 $ 252,000 $ 253,000 $ 254,000 $ 255,000 $ 256,000 $ 257,000 $ 258,000 $ 259,000 $ 260,000 $ 261,000 $ 262,000 $ 263,000 $ 264,000 $ 265,000 $ 266,000 $ 267,000 $ 268,000 $ 269,000 $ 270,000 $

service

minded

[feature]

Fine Art

The

Prıcıng of

Positioning a home to sell begins with teaching the seller how to read the market. By Donna Shryer

Ask Alexis Bolin, CRS Emeritus, to explain her strategy to price a home and the Pensacola, Florida-based broker associate with ERA Legacy Realty counters with a quick reply: “I don’t set the price. The market sets the price. I’m the messenger.” Acting as messenger, however, is no light task. The role involves collecting, analyzing and delivering timely market facts, figures and statistics that indicate what buyers are currently willing to

pay for a property similar to the seller’s. This in turn demonstrates where appraisers are setting market value and what lenders are willing to lend. With facts on the table — and the REALTOR’S® skilled guidance to interpret the data — the seller’s best price range will rise to the surface. “Now it’s up to the seller,” Bolin adds. “They can either price their home to sell or they can price it to sit.” Lee Bender, CRS, broker associate with Hill & Co. Real Estate in San Francisco, California, finds that working with facts

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[feature]

service minded

demystifies the pricing process. “The key to an evidence-based approach to pricing is having the seller agree to rely on the data. After that, it’s easy — because when sellers rely on black and white evidence, we can price a property based on facts rather than fancy.”

A Matter of Fact

BY THE NUMBER S For recently sold homes in 2014, the final sales price was a median

of the final listing price. Source: National Association of REALTORS® Profile of Home Buyers and Sellers 2015

The real estate reports that sellers need to review — to see for themselves the right price for their home — are culled from the local MLS database. REALTORS® can capture this information on their own or subscribe to a service, such as Real Market Reports (realmarketreports.com), with the latter presenting out-of-the-box reports. Regardless of how data is collected, the required charts, graphs and spreadsheets zoom in on comparable homes and/or all listings within a specific price range and fixed area that are active, pending, expired and sold over a predetermined time period. Additional essential reports include days on the market, average prices, pending ratios, list-to-sale ratios and absorption rates. Knowing the seller’s expectations upfront is critical, explains Jackie Leavenworth, CRS, and sales associate with DeHoff REALTORS®, in North Canton, Ohio. “I start by asking the

seller what price range they suggest I use to guide my research. Then I run two reports — one for the seller’s price range and one for the price range I feel is best. Then the seller and I discuss both price ranges. The evidence shows us where to position the seller’s home so it attracts the most buyers.”

The Facts in Action

Bolin offers an example of how a combination of statistics presents a clear picture. “Let’s say you want to price your home between $200,000 and $225,000 and our data tells us that there are 59 comparable homes for sale in that price range in your neighborhood. After we dive deeper into the data, we see that only four of those homes are under contract, with average days on the market at 156 and a 94 percent average price-to-sale-price ratio. Doing the math, we’re looking at 55 homes sitting there — and if they do sell, it will likely be much less than the average of 6 percent under asking price. So I ask the seller, ‘Do you just want to put your home on the market or do you want to put it on the market to sell?’ There is a difference.” When Bolin asks sellers what they think the statistics mean, the logical answer is that buyers aren’t buying homes in that range in this neighborhood at this time. If the seller is motivated, the next step is to find a price range that is attracting buyers. “When I that the data you’re sharing is often also their do the homework and potential buyers’ point of reference. get the right statistics, “Buyers can pull up in front of your house, in sellers eventually see their own car without a real estate agent, click the right price range. into an online real estate database and all the It may not be as high as they’d hoped, but based on the facts, they’ll know the price range fairly represents current market value.” The absorption rate — the rate at homes for sale in the neighborhood pop up,” says which available homes Alexis Bolin, CRS Emeritus, broker associate with are selling in a speERA Legacy Realty in Pensacola, Florida. “If a cific real estate market seller insists on pricing their home at $225,000, during a given time but the highest sale in this neighborhood was period — is a tool that $200,000 — and it was for a larger home — a helps homeowners put buyer will see this and more than likely drive away.” their property in the

framed by the net

According to comScore, Inc., an analytics company, the 20 top-ranked real estate listing websites cumulatively welcomed 176 million unique website visitors in June 2015. The top three sites, Zillow.com, Realtor.com

and Trulia.com, captured a combined 68.21 percent of those unique visits. Those figures include a lot of buyers scooping up data. Some of that data may be outdated, erroneous or just plain insane, but much of it is true. It’s essential that you share this insight with sellers. Homeowners need to understand

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service minded

“ Let s say you want to list at $150,000, but the absorption rate shows us that $145,000 to $ 149,000 is the area s hot range. I could try talking the seller down to $149,000 or I can point to the graph and say, Here s where you are, here s the hot zone and the difference is $1,000. What do you want to do? ” —Dan Brun, CRS

“hot zone,” explains Dan Brun, CRS, sales agent with RE/MAX American Dream in Marshfield, Wisconsin. “Using MLS figures, I create a graph that mathematically shows which price ranges sell faster in the seller’s area,” Brun says. “Let’s say you want to list at $150,000, but the absorption rate shows us that $145,000 to $149,000 is the area’s hot range,” Brun adds. “I could try talking the seller down to $149,000 or I can point to the graph and say, ‘Here’s where you are, here’s the hot zone and the difference is $1,000. What do you want to do?’ It’s tough arguing with numbers, and in the big picture, $1,000 is pennies — although even that small amount can make a big difference in how fast a home sells. So the answer is usually pretty easy for the seller to make.”

Managing the Uphill Battle

No matter how diligently a REALTOR® does the research, the occasional seller will argue against statistics and insist on listing their home at an unreasonably high price. “That’s usually because the seller is basing their decision on sentimental value rather than market value,” Brun stresses. “This is when it’s important for me to say what needs to be said. Buyers won’t care that grandpa built the home or for 30 years, the entire family celebrated Christmas in this living room. In the long run, most sellers appreciate the honesty.” If, however, the seller refuses to budge, Bender will typically go with the seller’s chosen price for a two-week trial run. The caveat is that the seller must agree to revisit pricing after the trial period ends. “If the seller does not agree to that, then probably the ethical thing for me to do is walk away,” Bender says. “The seller and I made an agreement from the start to operate on the basis of evidence, and I’ve demonstrated the

CRUNCHING THE NUMBERS

When first meeting with a seller, Dan Brun, CRS, sales agent with RE/MAX American Dream in Marshfield, Wisconsin, explains that the “right price is what the buyer is willing to pay.” To hone in on that magic number, he delivers the absorption rate as well as comparable listings pulled from his local MLS database — although these tools, Brun adds, tend to result in a price range rather than a definitive number. Identifying a listing price that will attract buyers and please the seller leads Brun to what he feels is the most important ingredient, which is the seller’s budget sheet. This tells the seller what different prices within the identified range will net. “We’ll list 10 possible offers and the spreadsheet does the math, deducting closing costs, commission, any credits, home warranties, taxes, prorations, payoff balances, etc. So now the seller can actually see their net number for each possible offer. This analysis helps identify the precise price that will net what the seller wants.”

evidence. There’s nothing more I can do to help this seller.” Leavenworth, too, has experienced a few stubborn sellers who chose to price their home higher than the evidence suggested. “That’s when I explain the four possible market responses to their pricing — along with my recommendations. Every 30 days we revisit the market response and adjust as necessary,” Leavenworth says. 1. The home sells in three to four weeks. The seller positioned their property correctly. 2. The home draws steady activity but no sale. Sit tight for another month — three to four weeks if time and money permits. 3. The home has one or two showings a week. Reposition the asking price by around $5,000 to ignite buyer activity. 4. The home attracts slow or no activity. Reposition the home by moving to the next strategic price point, which will attract a new group of buyers. “If the seller refuses to accept the evidence, I need to decide how long I want to dance with them,” Leavenworth concludes. Ending the dance is rare, however, because in the first meeting with a potential client, Leavenworth sets the ground rules. She promises to generate a lot of research so the seller can intelligently position their property to sell, and the seller agrees to base their decisions on evidence. It all leads back to a piece of advice Leavenworth received long ago from a fellow CRS: stop listing properties and start listing sellers who listen to the market.

Learn more about pricing to sell in the CRS webinar How to Price a Listing and Sell it Every Time. Visit crs. com/education for details.

Donna Shryer is a freelance writer based in Chicago.

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regional

report

[feature]

GLOOM

from

The new-construction market appears headed for a rebound. Hereâ&#x20AC;&#x2122;s an in-depth look at four markets.

improving economy, solid job growth, increased consumer confidence and pent-up demand. While the numbers for new housing are encouraging, homebuilders say the lack of available land for development, the cost of materials and labor, and local government regulations can stymie further development. The national numbers only tell part of the story. As any CRS agent can tell you, real estate is local, and individual markets face their share of challenges. The Residential Specialist spoke with several CRSs around the country who shared their insights about the new-home market in their locales, the challenges they face and the prospects for the future.

By Regina Ludes

Ă&#x2DC;

New homes are a hot commodity these days. Housing starts nationwide totaled more than 1.11 million in 2015, up 10.8 percent from nearly 1.01 million in 2014, while permits for new construction rose 12 percent from 1.03 million in 2014 to 1.18 million in 2015, according to the National Association of Home Builders. An estimated 501,000 new homes were sold in 2015, an increase of 14.5 percent over the 2014 total of 437,000. However, inventory in some markets is so low that homebuilders cannot keep pace with demand. These trends are expected to continue in 2016, thanks to an

501,000

BY THE NUMBER S

MOVING UP

New homes sold

The new construction market has grown steadily over the past five years, and industry experts believe the trend will continue in 2016.

268,900

282,800

245,200

227,200

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$ $

368,000 306,000

293,600 $

Median sales price

430,000 437,000

Mar Apr

BOOM PHOENIX

Rising from the Ashes

To say that Phoenix has made a remarkable turnaround since the economic downturn would be an understatement. Distressed properties, which once flooded the area, have fallen to below-normal levels, and smartly-conceived housing communities priced well for the market are selling briskly, says Keith Mishkin, CRS, a broker at Cambridge Properties. Construction permits jumped 25 percent from 12,000 in 2014 to 16,000 in 2015. The local economy is thriving, and an influx of jobs is driving the need for new housing. The city is expected to

In Phoenix, housing communities that are priced well sell briskly.

add 80,000 new jobs in 2016 after 53,000 were created in 2015, Mishkin says, citing statistics from Moodyâ&#x20AC;&#x2122;s. The city anticipates 110,000 people to migrate to the area for these opportunities. Buyers are purchasing new homes because thereâ&#x20AC;&#x2122;s an abundance of them on the market, says Mishkin. â&#x20AC;&#x153;The gap 1,178,400

1,111,200 1,032,900

1,005,800 Housing starts

Permits for new construction

923,400 780,000 606,900

965,700

Housing units completed

974,700 813,400

883,000 762,200

611,900

853,900

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651,400

Mar Apr

[feature]

regional report

PHOENIX (cont’d) in pricing between new homes and similar resale homes has shrunk dramatically, fueling this surge in new homes,” he says. Builders are putting more money into common amenities, like lobby areas, club

rooms and fitness facilities, which can make a strong first impression on potential buyers, Mishkin says. To compete with the abundance of Class A luxury apartments in the area, condo developers are offering similar community amenities with superior finishes, such as stone and marble countertops and floors, and top-of-the line

appliances. “It gives buyers greater confidence about a home knowing that all these extras are built into the price,” Mishkin says. New-home subdivisions range from the mid-$100,000s up to more than $3 million. Every price point is thriving in the current market, Mishkin says, and he sees no sign of a slowdown in 2016.

SEATTLE Faced with Challenges replacing existing homes. In the downtown area, most new In Seattle, new housing is needed, construction is apartment towers and office buildings, which but the pace of new construction has do not have the legal restrictions that condo buildings do. slowed and cannot meet demand, “There hasn’t been real housing growth in Seattle for a while. says Michael Orbino, CRS, with John L. Scott Real Estate The city is looking at how homes are built so more diverse, in Bellevue, Washington. Many neighborhoods have less affordable housing stock can be provided,” Orbino says. than a one-month supply. The lack of inventory has pushed housing prices up by 50 to 60 percent, while apartment rents are in line with San Francisco. “It’s hard to find any new single-family homes for less than $800,000 in Seattle,” Orbino says. Permits for new construction are flat. “Developers are discouraged from building new condominiums because of strict state regulations on condo development,” Orbino says. The city also has implemented requirements to slow down the pace of new development so newer units can be absorbed more gradually. Large-scale, master-planned communities that were popular before the downturn are no longer being built, while developers build clusters of single-family homes, usually five or 10 at a time. Geography is also an issue. Surrounded by mountains and water on three sides, Seattle is land-locked, which means new construction is either being built up The city of Seattle has slowed down the pace of new development so newer units can gradually be absorbed into the market. with high-rises or as infill projects Mar Apr

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regional report

TULSA

[feature]

A cowboy entertainer at the Tulsa Oktoberfest performs a rope trick jumping through a lariat.

New Housing a Hot Commodity

Despite a 4 percent dip in new housing starts in 2015, Tulsa, Oklahoma, continues to be a strong market for new homes, buoyed by strong employment in local oil and gas industries. But unlike Seattle’s vertical growth, Tulsa’s expansion has reached beyond the city limits. “With so much land available and the costs to build so low, new suburbs have developed,” says Gunta Sandmeyer, CRS, with Boulevard Realty Group. “Meanwhile, in the downtown area, trendier neighborhoods have emerged as builders convert previously untouched old spaces into new condo units.” Housing starts are projected to total 2,700 in 2015, down from 2,814 in 2014, according to the Tulsa Home Builders Association. Housing starts have steadily increased each year since 2012. While a typical new home averages 2,500 sq. ft., high-end homes averaging 4,000 to 5,500 sq. ft. are selling for $350,000 to $700,000, Sandmeyer says. These spacious properties include four bedrooms, three-and-a-half baths, formal dining

areas and a home office. Three-car garages are in high demand as are theater rooms and space for entertaining. “Buyers today are buying new because interest rates are still low, the economy in Tulsa is doing well, and new homes offer more modern amenities,” she says. While most of her clients are move-up buyers and young families, Sandmeyer says she has noticed more single, professional women shopping for new homes, too. As a REALTOR® and an interior designer, she counsels buyers about customizing their home with upgrades and offers staging tips before selling their existing home. Some buyers come to Sandmeyer with a portfolio of design ideas they’ve collected on Pinterest and Instagram. “[Those portfolios] make it easier to work with them because I can see what they want,” Sandmeyer says. “But it is also challenging because what they want is often not in their budget.” Sandmeyer is cautiously optimistic about the future. “Hopefully we won’t have any more shakeups in the oil industry and Tulsa’s economy will remain strong,” she says. “The inventory is low, and given low interest rates, 2016 should be a good year.”

KANSAS CITY Slow and Steady Growth

New-home sales activity in Kansas City, Missouri, continues to perform well, says Marcia Cull, CRS, with Reece Nichols, Parkville. “Usually business slows down during the period after Thanksgiving, but in 2015, I noticed more buyers visiting the newly-built subdivisions in our area,” Cull says. Many buyers of new homes are millennials looking for move-in-ready properties and emptynesters looking to downsize, she says. “Just a few years ago, new housing was scarce, but now new homes are being built throughout the city.” Kansas City rebounded well after the economic downturn, and housing activity increased overall in 2015. Permits for single-family construction rose 10 percent, from 4,271 units in 2014 to 4,700 units in 2015, according to the Home Builders Association of Kansas City. New homes are available for entry-level buyers for $300,000 to $350,000, while

executive homes and custom-built homes start at $400,000, Cull says. Most of the homes Cull sells in her subdivision have 2,800 to 3,000 sq. ft. with four bedrooms, three baths and three-car garages, which are in high demand. Most buyers prefer traditional design over modern or contemporary styles, and they prefer modern finishes and amenities, such as granite counter tops, tile, wood floors and moldings, and walk-in closets. Lots abutting green spaces are in high demand. Cull says buyers want the best value for their money when shopping for a new home. “The more amenities and quality features a builder can put into a home and still keep it at a certain price range, the more likely it will be sold quickly.”

The Kansas City market has rebounded from the economic downturn, and housing construction increased in 2015.

Get more facts about new home construction at nahb.org. Click on Research/ Construction Statistics.

Regina Ludes is a freelance writer based in Chicago.

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winds

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H2O NO! 17,768,904,000

Tips for keeping clients’ heads above water in flood zones. By Daniel Rome Levine

Source: FEMA

351,446,000 $

488,815,000 $

2,427,308,000 $

774,689,000 $

780,115,000 $

09 20

20 10 20 11 20 12 20 13 20 14

3,487,554,000 $

614,193,000 $

07 20

06 20

641,193,000

9,061,580,000

Annual flood insurance claims paid by the federal government’s National Flood Insurance Program (NFIP)

A knowledgeable REALTOR® can help save clients from one of the most stressful and soggy experiences of their lives — dealing with a flooded home. Floods are more common than you may think, and knowing the ins and outs related to them will make you an invaluable resource. When house hunting with clients, Debbie Murray, CRS, examines properties with an inspector’s eye. “I’m always looking for warning signs of flooding,” she says. These include stained or discolored foundations and basement walls, and examining the grade of yards and landscaping beds to see if they slope toward a house. Murray also makes sure her buyer clients get a Comprehensive Loss Underwriting Exchange (CLUE) report on a home to see if there have been any insurance claims for flooding on the property. “Surveyors can also confirm if a home is in or out of a flood plain,” she says. And Murray always encourages her buyers to ask questions. “The best way to get information on flooding is not by asking the sellers, but by asking the neighbors,” says Murray, a broker with Allie Beth Allman & Associates, in Dallas. “I’ve heard so many horror stories related to flooding from other agents that I’m extra careful,” she says. Helping clients make sound decisions on

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[feature]

trade winds

A TALL GLASS OF TROUBLE Ten states most at risk of severe flooding in coming years as a result of rising seas brought on by global warming. Source: Climate Central

issues related to flooding can save them from the hassle and headaches of cleaning up from a flood and the expensive repairs that are often necessary. Spotting warning signs of potential flooding is just part of a REALTOR’S® responsibility. Having an understanding of the complex details related to flood insurance, flood zones, and the federal and local rules related to flooding will make you an invaluable partner to your clients, especially if they live in an area prone to flooding.

MA SC

Troubled Waters

Flooding is the most common and costliest type of natural disaster in the U.S., according to the Federal Emergency Management Agency (FEMA). Ninety percent of all natural disasters in the United States involve flooding, reports the agency. And it’s not just low-lying areas on coastlines or along rivers that are prone to flooding. Up to 25 percent of the claims that come to the U.S. government’s National Flood Insurance Program (NFIP) come from outside high-risk flood areas. Communities along the North Carolina coast are prime targets for storms that trigger surging tides and extensive flooding. Linda Rike, CRS, owner and broker of Linda Rike Real Estate in coastal Morehead City, has helped countless clients with flood-related concerns. Topping the list: flood insurance. “When people around here buy a home,” says Rike, “the first two questions out of their mouths are, ‘Is it in a flood zone and how much is flood insurance?’” The cost of flood insurance depends primarily on a property’s location. FEMA keeps track of areas that are at high risk of flooding and designates them as flood zones.

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People will pay more for flood insurance in a low-lying area near the beach, for instance, than they would in an area that is at a low risk for flooding. The elevation of a home’s finished first floor also influences the price of insurance; the higher the home is above an area’s base flood level, the cheaper the insurance. A year ago a man contacted Rike to help him sell his home in a low-lying area near a river. He said he couldn’t afford to stay in the house any longer because his flood insurance premium was up to $7,800 a year. “I just about fell over when I heard that,” says Rike. His insurance premium was so high in large part because his finished first-floor elevation was just 5 feet above sea level. To make matters worse, he had invested in extensive renovations on the home, which was built on a slab, making it impractical to elevate the house and install a new foundation. The man was asking $325,000 for his home and was unwilling to come down on the price, as Rike suggested. Rike told him she was sorry she couldn’t market his property at that price and wished him good luck. A home’s elevation is such a critical factor in flood-prone areas like Morehead City that Rike always advises her buyer clients to get their own official proof of a home’s elevation, known as an elevation certificate, from a surveyor, rather

trade winds

Go Local

When it comes to getting accurate information on flood insurance and flood zones, a REALTOR’S® best friend is an experienced local insurance agent, says Rike. She relies on just such an agent, whom she says has helped her numerous times. Being based in the area, local insurance agents stay on top of changes that are made to flood zone maps by FEMA and they are able to navigate the agency’s Flood Insurance Rate Map, or FIRM, where these zones are published at www. FEMA.gov. Rike also regularly checks these maps online to help stay on top of changes. The importance of a knowledgeable local helping hand was driven home to Rike about three years ago when she was working with an out-of-town doctor who was buying an oceanfront property. Despite her pleas to get a quote from a local agent, the buyer insisted on working with his own agent. “Flood insurance is a different animal and you really need to talk to someone local,” she stressed. Days later, the buyer came back to Rike wanting to back out of the deal because his agent had told him his flood insurance was going to be $20,000 a year. Rike put the buyer in touch

BY THE NUMBER S Costliest U.S. floods since 1980: Midwest flooding, summer 1993.

48 deaths Midwest flooding, summer 2008. $

11.1 B

24 deaths Northern Plains flooding, spring 1997. $

5.5 B

11 deaths West Coast flooding, Dec. 1996 – Jan. 1997. $

4.4 B

36 deaths Western storms and flooding, Dec. 1982 $

3.6 B

50 deaths

Read more about the flood risks and flood insurance at floodsmart. gov/ floodsmart.

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

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34.7 B

crs.com

Mar Apr

Source: National Oceanic and Atmospheric Administration

than relying on one provided by a seller, which could be inaccurate or outdated.

with her local agent and got him a quote for $3,600. The deal was saved. “Out-of-town agents only see flood zone, but there is more to it than just that,” she says. “There are different levels of risk within flood zones.” To effectively serve clients in high-risk flood areas, REALTORS® not only need to stay abreast of changes to federal flood-zone maps and regulations, but to changes to local municipal ordinances, as well. John Feketics, CRS, a REALTOR® associate with Atlantis Realty in Wildwood Crest, New Jersey, a beach resort town sitting on a barrier island, learned this the hard way. In late 2013, Feketics and a buyer were under contract to purchase a home just two blocks from the beach, and the client was looking forward to doing a major renovation. Expecting smooth sailing, Feketics and his client were shocked to learn right before closing that Wildwood Crest’s municipal code had just been changed to get more homes higher off the ground to comply with new flood-zone map updates. The change stated that anyone making renovations to a property that exceed 50 percent of the market value of the home must add 2 feet of space above the so-called base flood elevation (BFE) height, which in this case was 9 feet. In other words, the lowest habitable floor had to be 11 feet off the BFE. This now meant that what was originally planned as a renovation would have to be a complete tear down. Thanks in large measure to Feketics’ skillful and diplomatic handling of the situation, the sellers agreed to lower the price of the home and the buyers agreed to move forward and undertake the larger-scale project. The sale closed in May 2014 and the buyers moved into their newly constructed home about two years later. “It is imperative that REALTORS® in high-risk flood-zone areas be aware of changes to new flood-zone updates,” says Feketics. Staying on top of all flood-related topics, from insurance to regulations on renovations, will help ensure your clients enjoy a water-free home and reduce the hassle and stress of the experience should they be unfortunate enough to end up one day being flooded.

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perfect

practice

[feature]

sunny day SAVING FOR A

Start planning for retirement as early as possible.

By Michael Chazin

Real estate agents all think, Gray continues, that there will be a point in time when the house is paid off, the kids are out of college and my expenses will generally be lower. “Then I will really be able to sock away money for my retirement.” Kevin Reardon, principal with Shakespeare Wealth Management, Pewaukee, Wisconsin, says he meets a lot of real estate agents without financial plans. “They are busy people who

are not necessarily tax-minded, which means they pay Uncle Sam more than they need to,” he says. He bemoans the fact that they frequently don’t take full advantage of every opportunity to provide for their retirement. “These folks make high incomes and have the capacity to save a lot. Making sure they have the right kind of retirement plan is something we do regularly,” he says.

The Basics

A good first step is to set up your real estate operations like an actual business, suggests Scott Wendl, CRS, RE/MAX Real Estate Group, Des Moines, Iowa. “I have my business set up as an S-Corp,” he says. “I have budgets set up for personal and business expenses,

and pay myself a salary.” Wendl, who plans on retiring in about 10 years, puts money into a Simplified Employee Pension (SEP) account and a Roth 401(k), and he buys rental properties. Wendl got started saving early on. He used money he earned as a teenager to buy his first piece of real estate — a five-bedroom house. “I rented BY THE NUMBER S out four of the bedrooms to friends and lived there and made money,” he says. of U.S. workers are confiA few years after that dent they’ll have enough he started selling real saved for retirement; estate full time. Early on, an older agent told him that she regretted not buying of Americans have no rental properties retirement savings whatevery year she was soever, including 40% of in business. baby boomers.

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Source: The Motley Fool

When it comes to planning for their future retirement, real estate agents are notoriously negligent. “Everybody in the real estate business thinks their next year is going to make them more money than their last year,” says Gary Gray, CRS, a retired real estate agent living in Montrose, Colorado.

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perfect practice

“Because nobody is watching out for our retirement with a 401(k), profit sharing or anything like that, and we sometimes have real estate fall into our laps,” says Wendl, “we are crazy not to take advantage of it.” Wendl has automatic withdrawals come off his rental income. First he pays extra principle on his rental properties, and then he contributes to his Roth IRA, his SEP account and college funds for his three children.

Buy Rental Properties

Many real estate agents look to income-producing properties to play a large role in their retirement plans. “My first manager was an amazing force in my life, and he taught me to buy rental properties and make that a huge part of my retirement income,” says Diane Fowler, CRS, GRI, Gulf Coast Realty, Cape Coral, Florida. Fowler originally retired in the early ‘90s when she was in her

mid-thirties and moved to Florida. She already owned a rental property there that she and her husband moved into. After a few years she went back to selling real estate and continued to purchase rental properties. She has rented her properties for more than 30 years and today owns them outright as her tenants have paid them off. “I want my tenants to buy real estate from me,” she says. “I counsel them on how to improve their credit ratings and how they can qualify for mortgages to buy their own property.” “My exit strategy involves accumulating enough retirement funds to support my lifestyle,” says Christopher Zoller, CRS, broker associate at EWM International, Inc., Coral Gables, Florida. He is building his SEP IRA and buying income-producing real estate at the same time. “My accountant recommended I start setting up a SEP IRA for

several reasons,” he adds. One of the best reasons is it helps reduce his tax liability. “I make the maximum contribution that I can to my SEP IRA.” He has done that for 25 years, and at the same time he purchases income-producing properties for cash. Stick with what you know when it comes to investing, Zoller recommends. “For real estate brokers, it makes an incredible amount of sense to buy income-producing real estate.”

First Choices

Most real estate agents are 1099 employees, explains Reardon. “They are independent contractors.” Many retirement options, including company sponsored 401(k) accounts, put a limit on the amount of funds that an individual can contribute for retirement each year. With a SEP IRA or a 401(k), the limit for independent contractors is much higher, he explains. Individuals can contribute up to

seven ways to sunny days 1 2 3 4 5 6 7

Most real estate agents are busy professionals who rarely take time to organize their own financial data or do any financial planning. Here are some key points that every real estate agent should consider when thinking about their finances and retirement:

Due to inconsistencies in monthly income, systematize as much of your finances as possible. Determine a spending and saving budget and stick to it. Set up an emergency fund to cover roughly nine months of expenses before funding a retirement account. Save when the going is good. Too many REALTORS® party like rock stars when the market is going good and save nothing. Work with an accountant/investment advisor to determine your effective tax bracket and deduct taxes as earnings come in. Shelter as much income as possible with a retirement account. If you own real estate, look at a schedule for when to sell and how to defer income taxes that might be incurred. The above points were compiled from information provided by members of the Financial Planning Association. To find a Certified Financial Planner close to you, visit www.PlannerSearch.org.

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perfect practice

[feature]

“ Everybody in the real estate business thinks their next year is going to make them more money than their last year.” —Gary Gray, CRS

25 percent of their gross income annually up to $53,000. This is the sort of retirement investment that Reardon recommends to any REALTOR® who is ready to start planning for their retirement. Zoller is president of the Residential Board of Governors of the Miami Association of REALTORS® and in this position he comes in contact with many agents at different stages in their retirement planning. His advice to younger agents is to start saving as early as possible. “Save a minimum of 10 percent of your gross income every year,” says Zoller. “Put it into a sheltered retirement plan so you don’t pay taxes on the money now.” How much to save is variable. Historically, people were told to save 10 percent in part because social security was expected to be a significant factor in their retirement, says Reardon. “For our current clients, we say something like 15 percent is better as a rule of thumb, because if their income is higher, social security replaces less of it. As these folks tend to have higher incomes, he integrates their retirement plans with a method to control their taxes and gets them to save at the same time. “For our younger clients (under 40), I am encouraging 20 percent,” continues Reardon. It is likely that there will be changes to social security and in today’s world, there are even fewer employer-sponsored plans, he adds.

Take All The Money

Another approach that comes up among real estate agents is selling off their book of business, which depending on how successful they have been, can result in some fairly hefty payments. Not too many REALTORS® realize they can even do this, says Gray. There are companies out there who will walk you through the process, he says, and give you a formula to find out what your book of business is worth. “I think most people just stop selling real estate, turn in their license and go on to something else,” says Gray. “But if they had a successful real estate business, they are leaving money on the table.” Even when REALTORS® work for a real estate company, they still have rights to their own accounts. Listings, pending contracts and leases are considered to be the property of the broker and can’t be sold by the REALTOR®. On the other hand, the contact information and personal knowledge that a REALTOR® has on prospective buyers, sellers, tenants and other contacts are the REALTOR’S® property and probably have value. Gray was a successful REALTOR® in the Denver market for 48 years and toward the end of his career sold as many as 80 properties a year. He had more than 300 contacts in his file with names, addresses and phone numbers, along with numerous notes. Close to 10 percent of that total was providing him with

regular referrals. He BY THE NUMBER S handpicked his successor and sent out letters According to the Center for Retirement Research, to all of his contacts more than letting them know they should use this REALTOR® for any of their real estate needs. “When I decided to of all working households are at risk of being move to Florida, I was unable to keep up their a successful RE/MAX standard of living in agent in Schaumburg, retirement. Illinois, with a large client base,” says Fowler. She handpicked another agent in her office with a similar personality, and they sent out over-sized postcards to her complete client list with her picture on one side and her successor’s picture on the other. The printed message was that they should trust this new agent with their real estate business. “She paid me a referral fee on all the business she got from those clients for the first 12 months that I lived in Florida,” says Fowler. “I got a pretty nice income for doing nothing.” One other retirement recommendation from Fowler. “So many of us worked 12 hours a day, seven days a week,” she says. “You have to think what to do with your free time or you’ll go crazy. You really need to think about a hobby or a volunteer position.”

Michael Chazin is a writer based in Glenview, Illinois. Plan for the future by using the Retirement Planner at ssa.gov/planners/retire.

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resources for learning & leisure

GOOD READS

WHAT DOES IT TAKE

to make it?

An architect of Tony Blair’s rapid rise to power offers “a celebration of winners — and how we can learn from them.”

Alastair Campbell is not one to beat about the bush. Addressing the likely skepticism of American readers early on in his new Winners, he asks rhetorically what we might have to learn from “some Brit who made his name only because he used to hang out with Tony Blair and had someone play him in that movie with Helen Mirren as the Queen?” Well, give the man this: He knows a WINNERS: thing or two about AND HOW winners. After THEY SUCCEED serving as the by Alastair political editor of Campbell two British newsPegasus Books papers — Today 449 pages, $27.99 and The Daily Mirror — Campbell became the chief strategist and official spokesman for Blair from 1994 to 2003, helping Britain’s Labour Party win

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some great business and sports people and probably more cultural icons per capita than any country on earth, but politically and diplomatically we are in decline, and psychologically and educationally I think we are, too. I think there is a real danger we are lapsing into a mindset prepared to settle for mediocrity. And it gets me down.”

three successive elections. Now he’s out of power but hardly out of the spotlight, having published four volumes of his diaries about the Blair years and six other books, among them a novel (All in the Mind) about his nervous At the Top of Their Game breakdown and recovery from alco- To counter this deplorable trend, holism in 1986. So if you’re looking Campbell sets out to visit the winfor an authority on focus, resilience ners he admires in sports, business and overcoming adversity to and politics around the world, achieve success, Alastair Campbell persuading them to explain both is your chap. their thinking and their methods Winners: And How They Succeed so that we lesser-achieving mortals is largely an anglocentric work, might learn from them. The result overflowing with obscure refermay be a celebration of winners, ences to “rucks” and “fly halfs” but it is hardly a catalogue of hap(something to do with rugby, appar- piness: “Indeed,” Campbell warns, ently), but in his “Introduction to “there are a fair few tortured souls the American Edition,” Campbell in here.” reassures us that Winners is no One such is Major League mere exercise in Euro-stargazing: Baseball’s Joe Torre, who opened “I worry that my own country is up to the author about his father’s somewhat losing the winning physical abuse of his mother. “You mindset,” he laments. “We have blame yourself,” Torre confessed.

Whether the difficult goal is giving a speech, firing someone or training to run a marathon, Campbell argues, “there is scarcely a challenge in any sphere of life that cannot be more easily overcome by prior visualization.” “I think that’s partly what gave me some of my drive as a player, getting away from that, and proving myself.” Another tormented soul was Australian athlete Layne Beachley, who lost her “mother” at 7 years old, only to discover later on that she was adopted — and had been conceived during a rape. That knowledge “awakened something inside me,” Beachley revealed, “[and] made me decide, so clearly, that I was going to be a champion at something.” That something was surfing, and Beachley has now worn its world crown seven times. Campbell has equally affecting (if not quite so revelatory) heart-to-hearts with boxer Floyd Mayweather, whose 47-0 record has made him “the richest athlete on the planet”; Edi Rama, a pro basketball player who became the prime minister of Albania; and Anna Wintour, editor-in-chief of Vogue, who tells him, “The most important thing is to be decisive and sure and impart that to the people working for you.”

Visualizing Success

With the book running 400 pages and change, no one is about to push Campbell’s editor into a winner’s circle. To get the best from this uneven book, flip to Part 2 and read Campbell’s chapters on “The Extreme Mind” and “The Power of Visualisation.” In the former, hyper-achieving types will find reassurance in the words of no less a winner than Billy Beane, the Oakland A’s manager whose

YO U M I G H T A L S O L I K E …

THINKING, FAST AND SLOW by Daniel Kahneman [Farrar, Straus and Giroux] 512 pages $ 19.23/hardcover

data-driven analysis of players was canonized in Moneyball. “The reason all really successful people have to be slightly mad,” Beane told Campbell, “is because people like that are not capable of living in the comfort zone. It is a state of mind that makes sure you never rest on your laurels [and] always focus on the next thing.” Campbell, who wrote and produced the 2008 BBC documentary “Cracking Up” about his own mental illness to destigmatize the disease, concludes from Beane’s remarks that no one should ever “regard it as a problem that great achievements may involve a degree of mania.” Campbell is similarly persuasive in his chapter on the “absurdly simple” but “extraordinarily powerful” psychological tool of visualizing what success will look like for you. Whether the difficult goal is giving a speech, firing someone or training to run a marathon, Campbell argues, “there is scarcely a challenge in any sphere of life that cannot be more easily overcome by prior visualization.” Yet no amount of visualizing could have prepared the soccermad Campbell for the afternoon when, at age 49, he received an impromptu invitation to have a “kickabout” with global sensation (and ultimate winner) Diego Maradona: “It was like asking a teenage boy if he fancied a night out with Jessica Alba.”

A renowned psychologist and winner of the Nobel Prize in Economics explains the two systems that drive the way we think. THE POWER OF HABIT by Charles Duhigg [Random House] 400 pages $ 18.97/hardcover Why habits exist and how they can be changed. THE ORGANIZED MIND by Daniel J. Levitin [Dutton] 528 pages $ 17.10/hardcover How to navigate the churning flood of information in the 21st century. BUSINESS ADVENTURES by John Brooks [Open Road Media] 464 pages $ 9.73/paperback John Brooks, longtime contributor to the The New Yorker, infuses drama and adventure into past stories about corporate and financial life in America — dispensing insight about business that is still relevant today.

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

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inside

CRS news from the council

Sell-a-bration® 2016 emcees Leigh Brown, CRS, and Dale Carlton, CRS.

GETTING DOWN TO

business

EXHIBITING SUCCESS



The Council welcomed hundreds of the most successful real estate professionals at Sell-a-bration® 2016, the industry’s premier education and networking event at the Loews Royal Pacific Hotel in Orlando, February 8–9. This year’s theme was “Let’s Talk Business” and the event featured a host of keynote and breakout sessions led by a number of top-producing REALTORS®. Here are the highlights from the event.

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Facing the future with new skills and meaningful connections

Referral Exchange, one of the many exhibitors at Sell-a-bration®.

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Sell-a-bration® 2016 attracted a record number of exhibitors sharing information about the real estate industry’s cuttingedge products and services with attendees. The Council thanks 2016 Sell-a-bration® sponsors: Pillar To Post, Real Pro Systems, The Entrust Group and Cutco Closing Gifts, and the following exhibitors for helping to make this year’s event one of the most successful ever: Oakley Signs, Cloud CMA, The Institute for Luxury Home Marketing, Salvation Army, MoneyCorp, Move for Hunger, easiloans, deductr, HWA, Women’s Council of REALTORS®, Teldon, The CORE Training, ReferralExchange, AREAA, The Personal Marketing Company, Bling Name Badges and Homes.com.

KEYING IN ON THE

keynotes 

Sell-a-bration® 2016 kicked off with a candid Q&A session between Tarek and Christina El Moussa of HGTV’s Flip or Flop and emcees Dale Carlton, CRS, and Leigh Brown, CRS. The El Moussas opened up about the behind-the-scenes work that goes into Flip or Flop. “On the show, it’s Day 1 and we’re flipping a house,” Tarek El Moussa said. “But what they don’t see is all the back-end work: all the prospecting, the marketing campaigns, the marketing ideas.” The couple reminisced on rookie mistakes from their early days of flipping, including accidental electrocutions and baseboards glued to the floor. They also shared about how they got their big break. “We were at a real estate convention just like this one,” said Tarek El Moussa. “We did a lot of networking, and we met a guy who had a local TV show.” In the process of flipping their first house, the El Moussas decided to audition for the show, and the show took off. Sports tycoon Brandon Steiner began the second day by recounting his improbable defeat of Michael Jordan at a Las Vegas basketball camp. Steiner described walking up to the NBA legend and issuing him a challenge: “I’m gonna kick your butt, Michael.” When they met on the court the following morning, he made good on that promise, thanks to a missed layup and a last-minute basket.

Dale Carlton, CRS, and The founder and CEO of Steiner Leigh Brown, CRS, in Sports Marketing credited his win a Q&A with Flip or to his underdog mentality, a product Flop hosts Tarek and of his modest upbringing in BrookChristina El Moussa. lyn. He stressed the importance of maintaining that mindset even after achieving success. “I’m constantly trying to figure out how to create that little chip on my shoulder and be that underdog.” In the closing keynote, “How Does a CRS Do That?,” top producers Brenda Wade, CRS, Sher Powers, CRS, and Zac Pasmanick, CRS, fielded attendee questions on topics ranging from fee splitting to website design to hiring admin help. When asked whether they would take a cut on their commission, the panelists were unanimous: no. On other questions, they differed. “If I know up front that I’m not going to make somebody happy, I match them with someone that I think will,” said Powers, sharing her strategy for refusing a referral from a past client.

THE HOSTS WITH THE MOST

This year’s Sell-a-bration® event was enhanced by a team of official show “Hosts” — 30 enthusiastic CRS Members who volunteered their time and energy to get people together both at the conference and through social media. Sell-a-bration® Hosts answered questions for attendees and helped break the ice by initiating conversation throughout the two-day event. They demonstrated how to use the program’s mobile app and participated in an entertaining networking game. They also served as Sell-a-bration® Hosts meeting and greeting roving reporters, taking pictures and posting them along with sound bites from the event. Over 800 social media posts were generated and displayed on the social media walls throughout the conference space. “Our Sell-a-bration® Hosts played a huge part in helping to make this year’s event a success. We sincerely thank them for all of their work on behalf of the Council. We will definitely continue the program next year in Phoenix in 2017,” said Tony Priore, VP of Marketing and Communications.

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The Council of Residential Specialists

crs.com

Mar Apr

inside

CRS PURPOSEFUL EDUCATION news from the council



This year’s event included nearly 30 educational sessions held in four concurrent tracks: Strategy, Selling, Tools and Clients. The conference was full of excitement as attendees gathered to share their expertise with each other. Here are some of the highlights:

Sasha Farmer, CRS, conducted an information-rich session to a standing-room-only audience on how to deliver a higher level of service to your clients.

Strategy track: Jon Goodman, Esq., and Duane Duggan, CRS, provided advice and examples to help agents avoid risky and costly pitfalls in an environment of shrinking inventory (Writing Winning Offers in Hot Markets); Jim Dorman, CRP, CPA/PFS, provided professional guidance to maximize business deductions and leverage retirement contributions to minimize tax liabilities (Financial Planning); Debbie Yost, CRS, delivered an energetic and jam-packed session on creating effective and efficient systems to optimize business success (Systems 101). Selling track: Linda Craft, CRS, and Andrew Truesdale, shared their strategies for taking more well-priced listings, evaluating market data and communicating it to highly emotional sellers (The Art of Pricing); Sean Moore discussed ways to prepare customized, client-centric presentations to generate more listings and higher profitability (The Ultimate Seller-Focused Listing Presentation); Sasha Farmer, CRS, delivered a

compelling, information-rich session to a standing-room-only crowd on how to deliver a higher level of service to your clients, communicate your points of difference and command higher commissions as a result (Crushing Your Competition at the Listing Table). Tools track: A dynamic panel of real estate experts discussed time-tested ways to cultivate client referrals (Refer to the Experts: How to Get More Referrals); Nobu Hata discussed the latest consumer and technology trends, and provided advice on how to integrate solutions that save time and money (Strategically Integrate Tech & Tools Into Your Business); Jay Thompson explored ways to leverage Zillow Group sites to take your business to the next level in the areas of prospecting, lead generation and contact follow-up (Getting the Most Out of Zillow). Clients track: Clients who have sold (Sellers Uncensored) and bought (Buyers Uncensored) properties in the recent past delivered insights directly to attendees — clients shared their buying/selling concerns, motivations and decision-making criteria for selecting their agents; Seth Dailey, CRS, and Alyce Dailey, CRS, unveiled fun and innovative ways to engage clients to build and sustain profitable relationships (Party Your Way to the Top); Wyn Ray, CRS, explored the opportunities in a market shift that are expected to create the largest transfer of wealth in U.S. history (Position for the Next Market Shift – Selling Inherited Properties).

THE NAME OF THE GAME IS “NETWORKING” This year’s attendees participated in an entertaining networking game that created quite a buzz at Sell-a-bration® 2016. Each attendee was provided a simple game card that directed them to collect the signatures of different types of attendees such as “first timers” or “CRS Host.” When all signatures were collected, the cards were included in a drawing for several great prizes. “I am thrilled that so many people participated in the game,” said Peter Glowacki, vice president of Professional Development for the Council. “It made it easy to network. Everyone enjoyed meeting different folks they wouldn’t have otherwise met. And the potential to win one of the prizes added an element of fun.”

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Congratulations to the following official networking game prize winners: ÄÄ Jen Ward — Grand prize: Free registration with hotel to Sell-a-bration® 2017 in Phoenix ÄÄ Kara Schlepp — Apple iPad ÄÄ Lacey Brown— Apple Watch ÄÄ Clara Alcine — GoPro Video ÄÄ Maria Woodul — Free flowers delivery for six months The “Let’s Talk Business” networking game was such a big hit, it is certain to find its way back to next year’s programs at Sell-a-bration® 2017.

Networking with a twist — using a game

GLOBAL

reach 

CRS President Janelle Pfleiger with attendees from Italy

Networking and learning did not stop at the U.S. borders for Sell-a-bration® 2016 — nearly 100 international agents were also in attendance. International attendees included CRS partners from Spain and Italy. While this was the first year of attendance for the Council’s Italian partners, Spain’s contingent celebrated its 10th anniversary. “Spending two days with so many real estate superstars inspired us immensely, and we look forward to making CRS Italy a unique training adventure for the Italian real estate agents. You made us feel special and appreciated: We’re grateful and hope to see you all soon. We’re a big family indeed!” said Luca Gramaccione, CRS Italy. Fernando Garcia Erviti, director of UCI/CRS Spain, reflects on his experiences at Sell-a-brations® over the years: “Since

CONNECTING IN HIGH GEAR

“Let’s Talk Business” at Sella-bration® 2016 took on special meaning when CRS members and non-members met for a “speed networking” session over lunch. The entertaining exercise focused on expanding referrals and developing new relationships among attendees. People entered a room filled with tables for two to meet their peers. Many noted, “This feels like speed dating,” and indeed, there were similarities. They each spent a few minutes at a table getting to know each other before time was called and one moved to the next table. Questions were provided to get the conversation started. As one attendee noted, “This was an exercise in active listening.” CRS hopes to host similar sessions at next year’s event.

my first Sell-a-bration® in San Antonio, to this most recent one (11 total), I keep telling myself how lucky we are to have CRS, and what a gift Sell-a-bration® is for all of us.” Regardless of nationality, years in the business or production levels, Sell-a-bration® attendees left the event with ideas and tools they can implement in their own businesses, an ever-expanding network of like-minded top professionals, and a renewed excitement about the industry we all serve. “I want to thank the CRS leadership, the management and the staff for all the good work they do to make this happen,” said Garcia Erviti. “And I want to thank all the presenters who give away all the knowledge and tools that made them successful. These ideas are shaping the real estate industry in Spain and Portugal; you should all feel proud of that.”

INVESTING IN the future Ø In conjunction with Sell-a-bration®, CRS State Chairs, as well as additional leadership team members from across the country, joined CRS in Orlando for the annual Leadership Training Program. The goal of the Leadership Training Program was to collaborate on finding creative ways for CRS leaders to reach out in their community to positively affect their State CRS, as well as their professional businesses. The program included great presentations on how to build successful leadership teams, ultimate leader attributes, activity planning, sponsorships and building community via social networks. The breakout sessions brought leaders from across the country to brainstorm ways to improve their State CRS, and to discuss new ways to increase member participation in their local area. Jen Ward, the State Chair from Maryland/D.C., attended the program this year for her second time, and brought along three of her state leaders to attend with her. “I feel like I have made lifelong friends from my Leadership Training group. We collaborated, shared experiences, laughed and learned some things to take back to our state organizations. I love that everyone shared so much information from technology tips to member engagement.” The Leadership Training Program is an annual conference put on by the Council of Residential Specialists. If you are interested in attending next year or you would like to be more involved with your State CRS, please contact us at community@crs.com.

Missed this year’s Sell-a-bration®? Well, there’s always next year. Make plans now to attend Sell-a-bration® 2017, which promises to be even bigger and better. Next year’s conference will be held at the Arizona Grand Resort & Spa in Phoenix on February 9 and 10. Don’t miss it. A record number of attendees from this year’s event already preregistered for next year’s Sell-a-bration®. Visit crs.com and take advantage of special early-bird pricing before it expires.

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The Council of Residential Specialists

crs.com

Mar Apr

learn

from the

BEST strategies from the industry’s top educators

WHAT’S IN A NAME? Leverage your professional education to differentiate yourself among consumers. Mike Selvaggio, CRS

As a CRS instructor, I fly a lot, and my favorite jacket is the one that has “CRS” and the CRS logo on it. Other passengers sometimes say, “I know what CRS stands for.” Then they say, “Can’t remember s#!t,” with a smile. I smile back, and tell them what it really means. Sellers can be equally clueless about CRS. We are so used to saying, “I am a CRS,” that we don’t explain what these three letters mean for them — that it is a special designation that indicates we are in the top 3 to 4 percent of all REALTORS® in the country, and that we have met requirements for advanced education, training and experience. My favorite part of my listing presentation is when I ask the seller, “Do you know how many real estate agents there are in the U.S.?” They have no idea. The correct answer is about 2 million. (Licensed REALTORS® account for approximate 1.1 million, but I’d rather use the licensee number.) They’re amazed there are so many licensed real estate agents in the country.

CRS INSTRUCTOR

Mike Selvaggio, CRS, is a Certified CRS Instructor and broker/owner of Delaware Homes Real Estate in Wilmington, Delaware.

Mike@Selvaggio.com Twitter: @MikeMyCoach MikeMyCoach.com

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My next question to them is, “What percent of the licensed real estate salespeople in the U.S. do you think are certified residential specialists?” Their typical answer most of the time is 30 to 50 percent, or more. I then tell them the correct answer is 3 to 4 percent. They’re amazed that it is such a small number. I then share with them the fact that I am a Certified Residential Specialist, show them the CRS logo, and tell them this is the designation you cannot buy; you have to earn it! I want them to feel comfortable knowing that I have this designation. I also explain to them how important it is to see a specialist rather than a general practitioner if you want the best in professional care — medical or real estate. In addition, I suggest that their family is certainly worth the extra-special care of a specialist and that I am not just an ordinary real estate agent. And if for some reason they decide not to work with me, I tell them to be sure to look for a Certified Residential Specialist so that they will get the best possible negotiating representation, pricing skills and overall marketing presentation of their home in today’s market.

CRS

connect

YOUR CRS

expand your network

network Ø

In December 2015, Charlee Gowin, CRS, of Berkshire Hathaway in Virginia Beach, Virginia, received a call from a favorite client, with whom she had completed three transactions in the past. It was time for the client to move out of the area where she had grown up and raised her son, and Charlee wanted to be sure they were in capable hands. They were moving to Philadelphia, where Charlee’s longtime friend Rich Bradford, CRS, is originally from. Since Rich is a native of the area, he was able to point CONNECTION PERFECTION

WEST

out all the things he has always enjoyed about the area and made the client’s move a positive experience. He met the clients and by the end of the day, they had found a new home. “Rich called me on Facetime with the clients in the background and announced their success from a local pub where they had gone to celebrate! They all looked so happy and comfortable together,” says Gowin. “They had immediately bonded and he made them feel very welcomed in their new environment. Rich has made their transfer a smooth and easy transition. I look forward to many more referrals with Rich.”

WEST

Seattle & the ‘Burb’s

HAWAII

Serving Seattle, Bellevue, Kirkland, Redmond, Bothell, Duvall, Lynnwood & Woodinville

Barb Avery

Managing Broker, CRS, GRI, I-Pro, SRES, WCR

RE/MAX Northwest Realtors

...sharing Aloha through excellence and experience...

888-255-2272 (Call-Barb) 206-226-2879

Nancy D. Metcalf, CRS REALTOR®, Vice President RB-16599

SeattleSuburbs@yahoo.com www.SeattleSuburbs.com

CRS of the Year, 2003

Relocation, city-wide to world-wide. Seniors Specialist/Estate Specialist Voted Best in Client Satisfaction multiple years —Seattle Magazine

Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com Celebrating 25 years assisting clients! 1991-2016

WEST

WEST COLORADO Joan M. Pratt

MS, CRS, CLHMS, CDPE, CARI

DenverMetroReferrals.com

720-506-3001

Craig Zager

RE/MAX Professionals

Selling Lake Tahoe since 1989

“Elevate Your Expectations” « « « « « Voted Five Star Agent for Overall Satisfaction for 5 Straight Years!

Over 700 million in Tahoe sales

Sell Sell phone: phone: 775.901.4663 craig@CraigZager.com

www.LakeTahoeAgent.com

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The Council of Residential Specialists

crs.com

Mar Apr

CRS

connect

CRS CLASSROOM COURSES expand your network CRS120 — Converting Leads Into Closings April 20 — Honolulu, Hawaii [Hawaii CRS] 808.946.9468

Instructor: Mike Selvaggio, CRS May 4 — Tampa, Florida [Florida CRS]

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 2016. For more up-to-date listings, visit crs.com.

CRS121 — Win-Win Negotiation Techniques

CRS166 — Certified Luxury Home Marketing Specialist Training Part I

April 7 — Las Vegas, Nevada [Southern Nevada CRS, GLVAR]

April 7 — Charlotte, North Carolina [Superior School of Real Estate]

702.521.3499

214.485.3000

April 14 — Nashville, Tennessee [Greater Nashville Association of REALTORS®]

May 5 — Coral Gables, Florida [Miami Association of REALTORS®]

615.254.7516

214.485.3000

Instructor: Pat Zaby, CRS

813.748.8440

Instructor: Gee Dunsten, CRS June 20 — Nashville, Tennessee [Greater Nashville Association of REALTORS®]

Instructor: Jackie Leavenworth, CRS

Instructor: Tami Simms-Powell, CRS

Instructor: Bill Hensley, CRS

615.254.7516

Instructor: Robert Morris, CRS

WEST

MIDWEST

Thinking

Serving the Greater Cleveland, Ohio Area for Over 15 Years

Hawaii?

www.JamesHawaii.com

Jackie Collesi, CRS

29 years of “Experience You can Trust”

REALTOR ®

Office: 216.751.8550 Cell: 216.780.8607

James E. Lewis (R) CIPS, CRS, GRI, SRES® Cell: 808.225.0569 RB-14807 Email: J.Lewis@Realtor.com

Quality Service Award Top 3% Company Wide

Email: jackiecollesi@howardhanna.com Website: www.jackiecollesi.howardhanna.com

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 not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.

SOUTH

NAPLES, BONITA SPRINGS, ESTERO, FT MYERS—FLORIDA

Marie Pimm

PA Realtor® CRS, CIPS, e-PRO, GRI

Cell: (239) 770-3383

Email: mpimm@comcast.net www.MariePimm.com

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 MariePimm.com

Mar Apr

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24201 Walden Center Dr. Bonita Springs FL 34134

lisacromwell@remax.net www.LisaCromwell.com

May 5 — Austin, Texas [Gracy Title]

May 6 — Austin, Texas [Gracy Title]

214.485.3000

June 9 — West Palm Beach, Florida [REALTORS® Association of Palm Beaches]

June 10 — West Palm Beach, Florida [REALTORS® Association of Palm Beaches]

214.485.3000

Instructor: Tami Simms-Powell, CRS

Instructor: Kofi Nartey, CRS CRS167 — Certified Luxury Home Marketing Specialist Training Part II

Instructor: Tami Simms-Powell, CRS

Instructor: Kofi Nartey, CRS CRS200 — Business Planning & Marketing for the Residential Specialist

April 8 — Charlotte, North Carolina [Superior School of Real Estate]

April 19 — Chattanooga, Tennessee [Greater Chattanooga Association of REALTORS®]

214.485.3000

423.702.7423

May 6 — Coral Gables, Florida [Miami Association of REALTORS®]

June 28 — Edwards, Colorado [Vail Board of REALTORS®]

214.485.3000

970.766.1029

Instructor: Tami Simms-Powell, CRS

Instructor: Bill Hensley, CRS

SOUTH

Reach more than

30,000

CRS peers with your ad here.

Instructor: Gee Dunsten, CRS

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

Instructor: Rich Sands, CRS

SOUTH

Connection

YOUR HOME

Kent Redding BROKeR, gRi, CRs, ABR

LEADING THE WAY IN SOUTH FLORIDA REAL ESTATE GARY LANHAM

Group Leader Associate Broker CRS, CIPS, ABR, ePRO

954.545.5550 (office) 954.695.6518 (cell) gary@garylanhamgroup.com www.GaryLanhamGroup.com

SOUTH

the Kent Redding group

WE SUPPORT OUR MILITARY

Berkshire Hathaway

WE ARE YOUR MILITARY RELOCATION SPECIALIST.

texas Realty

SERVING FT. BRAGG, POPE ARMY AIRFIELD & SURROUNDING

512.306.1001

www.YourHomeConnection.com

RELOCATION SPECIALIST “Succeed with Sandra Jean” Certiﬁed Real Estate PRO Broker,ABR,CLHMS,CRS, SRES,REALTOR, Since 1984

DIRECT: 919-418-2400 Serving: Raleigh, Durham, Chapel Hill, Research Triangle Park, Wake Forest & Surrounding Counties, North Carolina

www.FindRaleighHomes.com Email:sandra@sandrajean.com

RE/MAX United, 9131 Anson Way, Raleigh, NC 27615

I want to be you CRS Realtor of Choice when you have a client relocating to North Carolina. Proudly serving the Fayettteville and Ft. Bragg area.

Austin, texAs

Barbara Shoenberger

Kent@CallKent.com www.CallKent.com

CRS/GRI/ABRM/CSP

Cell: 910-263-1495 Office: 910-222-8000

NORTHEAST Sandra Jean LaBarbera

AREAS.

CANADA

Your referral source for the greater

Pittsburgh

area

I help clients make the Wright move

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

Nancy Wright, ABR, CRS, GRI

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

RE/MAX Realty Brokers 5608 Wilkins Ave. Pittsburgh, PA 15217 OFS: 412-521-1000 x170 CELL: 412-508-0040 nancywright@remax.net

www.hallmarklindrealty.com

Fax: 905-727-2230

E-mail: lenard@hallmarklindrealty.com

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The Council of Residential Specialists

crs.com

Mar Apr

CRS

connect

CRS CLASSROOM COURSES

expand your network

CRS201 — Listing Strategies for the Residential Specialist April 11 — Panama City, Florida [Bay County Association of REALTORS®]

August 22 — Brentwood, Tennessee [Williamson County Association of REALTORS®] 615.771.6845

Instructor: Jackie Leavenworth, CRS CRS206 — Technologies to Advance Your Business

850.763.8078

Instructor: Jackie Leavenworth, CRS April 27 — State College, Pennsylvania [Pennsylvania CRS]

April 6 — Columbia, Maryland [Maryland/D.C. CRS]

717.569.4625

410.627.5961

Instructor: Jackie Leavenworth, CRS CRS202 — Effective Buyer Sales Strategies April 12 — Auburn, Alabama [Lee County Association of REALTORS®] 334.321.0606

Instructor: Chandra Hall, CRS April 19 — Denver, Colorado [Denver Metro Association of REALTORS®]

Instructor: James Nellis, CRS May 4 — Coeur D’Alene, Idaho [Washington CRS, Idaho CRS] 360.901.0307

Instructor: Pat Zaby, CRS May 19 — Nassau, Bahamas [Bahamas Real Estate Association] 242.356.4578

Instructor: Pat Zaby, CRS CRS210 — Building an Exceptional Customer Service Referral Business

303.756.0553

Instructor: Rich Sands, CRS April 21 — Big Island, Hawaii [Hawaii CRS]

April 7 — Rocklin, California [California CRS]

808.371.8708

Instructor: Chandra Hall, CRS

Instructor: Mike Selvaggio, CRS April 21 — Peoria, Arizona [Arizona CRS]

831.588.8855

April 11 — Oklahoma City, Oklahoma [Oklahoma CRS] 918.625.7441

Instructor: Robert Morris, CRS

520.382.8848

Instructor: Gee Dunsten, CRS May 2 — Lancaster, Pennsylvania [Pennsylvania CRS]

April 26 — Sandy, Utah [Utah CRS, Salt Lake Board of REALTORS®] 801.205.3535

Instructor: Chandra Hall, CRS

717.569.4625

Instructor: Jackie Leavenworth, CRS May 24 — St. Charles, Missouri [Missouri CRS] 314.267.2691

Instructor: Jackie Leavenworth, CRS

Mar Apr

The Residential Specialist trsmag.com

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

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PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS

EDIT

Leave YOUR HOME as is, or personalize the newsletter by adding your photo, logo, address and phone number to the mailing panel.* You can also substitute any article in the newsletter with one of your own. Edit the newsletter e lectronically by downloading the Microsoft Word version at crs.com/ yourhomenewsletter. PLEASE NOTE: The images featured in the YOUR HOME newsletter may only be used within the PDF version of the newsletter. These images may not be reproduced or republished elsewhere outside of this newsletter format. CRS members are free to re-use the text of the articles contained in the newsletter, however.

REPRODUCE

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

DISTRIBUTE

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

your *

home M A R /A P R 2 016

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

SAVE ME, SUPER KITCHEN Ø

Kitchens have come a long way from linoleum floors and olive-colored appliances that our grandparents had. Today’s kitchens are super-sized and designed for multiple purposes. Sixty-nine percent of owners use their kitchen space for dining, while 49 percent use it for entertaining and 43 percent for socializing, according to a recent survey of homeowners by Houzz. The kitchen has become the hub for family activities, such as doing homework, watching TV and reading. Nearly two-thirds of homeowners spend more than three hours a day in their kitchens. Therefore, today’s homeowners are not skimping on renovations. Nearly one-third of homeowners surveyed spent between $25,000 and $50,000 on kitchen renovations and another third spent more than $50,000. Features that are typically part of living and dining rooms, such as dining tables, chandeliers, TVs and workspaces, are being added to kitchens. Wine refrigerators and built-in coffee stations are popular for entertaining, while

RENTAL PATIENCE Homeowners who need to move but are struggling to sell their homes are turning to rent-to-own agreements to find prospective buyers. Under these leasing options, which can last from two to five years, owners allow a prospective buyer to move into the home and pay monthly rent. A portion of the rent is set aside to be used as a down payment on the house

at a later date. Financial experts at Bankrate.com say creditchallenged renters have the chance to try out the house and neighborhood, while saving for a down payment and building up good credit. They can also lock in a sales price and terms upfront. The set-up helps homeowners find an eager buyer and long-term renter who

custom cabinetry and hardwood floors integrate more seamlessly with the home’s overall design. As the modern kitchen has continued to evolve, several design trends have emerged: ÄTwo-tone Ä kitchen cabinets that mix colors and styles. ÄÄBlack and bronze finishes on stainless steel appliances contribute a sleek, modern look. ÄÄDeep kitchen drawers help organize dishes and pans. ÄÄNiche appliances, from steam ovens, warming drawers and induction cooktops, add luxury and practicality. ÄÄKitchen islands with more workspace and storage, prep sinks and seating are the workhorse of the home. ÄÄUnexpected combinations of backsplash and countertop finishes can spice up kitchen décor — for example, a brick backsplash with concrete countertops or yellow ceramic tile with butcher block. The modern “super kitchen” not only improves flow, storage and aesthetics, it also supports family life with style and substance.

can provide a steady income while caring for the house on the owner’s behalf. The downside is the possibility that the renter could change their mind and opt out of the agreement, which means the owner must start the process over again. Rent-to-own arrangements are complex and every state has its own regulations, so it’s advisable for renters to

meet with an attorney and a real estate agent to understand financial implications. Renters should also meet with a mortgage broker so they know how much they need to qualify for a loan. Financial experts say both parties should treat the deal the same way as a home purchase. Obtain an appraisal and a home inspection, and owners should require a

security deposit and reserve the right to evict renters if they fail to make payments. The contract should also spell out how funds will be held by owners, under what conditions the sale will take place, and who is responsible for maintenance and repairs. With proper planning and due diligence, rent-to-own arrangements can be a viable option for buyers and sellers.

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

WALK

on wood

Hardwood flooring is one of the most sought-after features in new and existing homes. This eco-friendly feature can turn your home into a warm and inviting space to relax and entertain. Selecting the right flooring can be a challenge, however, depending on your design style, budget and personal preference. Before choosing a wood floor for your home, here are a few things to keep in mind, courtesy of the National Wood Flooring Association: There are two basic types of wood flooring. Solid wood flooring can be sanded and refinished many times and can be used in all rooms, including kitchens and powder rooms. Engineered wood is manufactured with multiple layers of wood veneers, so it expands and contracts less than solid wood flooring when temperatures and humidity fluctuate. Engineered wood is a better alternative for basements and other below-ground living areas. Hardwood floors come in different finishes. Satin gloss offers the most shine and reflects the most light,

E REFER RA LS!

SAY YES TO CRS EQUAL HOUSING

so scratches and normal wear and tear are less noticeable, while matte finishes offer the least shine. Light woods like ash or maple help make a room appear more open and airy, while darker woods like walnut or mahogany can give a room a more stately and refined appearance. To keep floors looking new, clean them frequently using a dust mop or vacuum. Avoid using a wet mop as water can dull the finish or damage the wood over time. To prevent scratches, place scatter rugs at all entrances and floor protector pads on the bottom of furniture legs. When spills occur, wipe them immediately with a dry or slightly damp cloth. When floors begin to look dull, use a wood flooring cleaner to renew the luster. Use only products that are compatible with your wood floor type. The wrong cleaning product can damage the finish and possibly the wood itself. With these simple tips in mind, hardwood floors can provide comfort and enjoyment for many years.

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

GET MORE HIGH QUALITY REFERRALS

PURCHASE ADS AND LISTINGS IN THE CRS ONLINE REFERRAL NETWORK

BANNER ADS

ADDITIONAL LISTINGS*

Become a featured agent for a specific CITY or ZIP CODE for $250. You can submit your own design or choose from a number of pre-designed ad templates for an additional $50.

Each CRS Designee is provided a complimentary listing in their office CITY and ZIP CODE, but you can dramatically increase your odds of being found in the online directory by ordering additional city and zip code listings for $25 each.

PLACE YOUR ORDER TODAY!

* All Additional Listings are also featured in our Find a CRS iPhone/iPad and Android Apps!

It's easy to expand your presence in the online directory and increase your chances of getting a referral! To purchase, log into your CRS Account and select the link in the right sidebar that reads, "Place Your Online Directory Order Today."

All online directory listings and banner ads will run for one year from the date they are posted. If more than one designee purchases a banner ad in the same city or zip code, the ads will rotate, so each designee receives equal exposure. You will receive a reminder email when your additional listing or banner ad is ready for renewal.

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

ask a

CRS advice from your peers

TWO CENTS

What is some of the best advice you have received that has helped you in your career as an agent?

“ I believe we should not use the words ‘a problem,’ but look at it as an opportunity. I have agents come in my office and say, ‘Boy, do I have an opportunity for you.’” Kay Latham, CRS Coldwell Banker First Equity Amarillo, Texas kay@cbamarillo.com

“ My husband framed his favorite quote for my desk, ‘If all objections must first be overcome, nothing will ever be accomplished.’ My daughter Deb Alderson, CRS, and I work as a team and this has helped us both accomplish a lot together.” Bunny Mostad, CRS Coldwell Banker Westport, Connecticut Bunny@BunnyMostad.com

“ I saw a sign once that said, ‘Poor planning on your part doesn’t constitute an emergency on my part.’ I am reminded of this all of the time.” Charlie Dunn, CRS Berkshire Hathaway HomeServices California Properties Cerritos, California charlie@charliedunn.com

Participate in active discussions like this at the Council of Residential Specialists’ LinkedIn page at goo.gl/ WHgvw7.

Mar Apr

The Residential Specialist trsmag.com

20 16

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This is home. Itâ&#x20AC;&#x2122;s a place called confidence. Itâ&#x20AC;&#x2122;s home because your clients feel positive and sure about the choice theyâ&#x20AC;&#x2122;ve made. In partnering with you, they place their trust in your advice, counsel, and expertise to lead them there. Our commitment is to always be there for you, and them, on this journey home.

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