The Residential Specialist, May/June 2016

★

CLUSI V E ★ EX

THE

NEIGHBOR

HOOD ISSUE How knowing the local landscape will grow your business

residential

may + june

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

2016

THE

SPECIALIST ALSO IN THIS

ISSUE

Buying near a big-box store How to protect your data New rules for cash purchases

The power of designation Check in with a local chapter Team-building tips

It’s all in the details.

HomeTeam applies a systematic approach to home inspections and provides detailed reports utilizing our advanced cloud-based software.

Homebuyers receive a fully written report, complete with photos of the home. And with our team approach, our comprehensive home inspections take about half the time. This means you get all of the info you need when you need it.

That’s the HomeTeam promise.

888-539-9306 | hometeam.com/certifiedresidentialspecialist Each office is independently owned and operated. ©2016 The HomeTeam Inspection Service, Inc. All rights reserved.

contents

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May 20 June 16 vol. 15, no. 3

NEIGHBORHOOD CHARACTER

Welcome to the neighborhood (issue)! In this special section, we take a closer look at four types of neighborhoods— gentrifying, ethnic, retirement and unfamiliar—and how CRSs can gain a better understanding of these markets.

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by Gayle Bennett, Michael Chazin, Gwen Moran & Donna Shryer

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May 20 June 16 vol. 15, no. 3

departments 4 VANTAGE POINT

By Janelle Pfleiger, CRS

8

5 SHORT LIST

9

Proximity to big-box stores affects home values; remodeling spending; and enhancing curb appeal.

8 COOL STUFF

With buyers looking online, quality photos are more important than ever—here’s the latest gear.

37 34

9 SMART SOLUTIONS

Data backup and strong encryption software is your best defense against data disasters.

By Donna Shryer

12 INSIDE TRACK

The Feds are taking a closer look at money laundering in all-cash purchases of luxury residential real estate.

By Brittany Magee

14 WINDOW OF OPPORTUNITY

The letters “CRS” might appear after your name, but do clients understand what they mean?

By Regina Ludes

16 PEER TO PEER

Candis Dorsch, CRS, Bozeman Broker Group, Bozeman, Montana

34 WORK + LIFE

The Happiness Track: How to Apply the Science of Happiness to Accelerate Your Success

by Emma Seppälä Reviewed by Allan Fallow

+

16

inside CRS 37 NEWS FROM THE COUNCIL

With the new state CRS structure and online platform, it’s easy to get involved with CRS.

40 LEARN FROM THE BEST

A CRS Instructor offers three steps to start building your team.

41 CRS CONNECT 48 ASK A CRS

48

Advice from the country’s top agents.

Closing Credits End on a high note with these closing gifts.

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.

HIRING HELP

SHADY DEALS

Three ways you know it’s time to bring on an assistant.

The Panama Papers leak supports the crackdown on cash purchases.

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 Michelle Huffman mhuffman@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 Gayle Bennett Michael Chazin Regina Ludes Brittany Magee Gwen Moran Donna Shryer 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.

Digital Marketing The pros share their tips and tricks for producing better real estate photography and video for listings. Learn about emerging trends and digital enhancements to create compelling images.

Motivation Strategies Following the busy spring/summer selling season, how do you keep yourself and your team motivated to make new sales and connections, grow business and become better organized?

Working with Veterans What you need to know about working with veterans and understanding their specific needs. What’s involved in securing a VA loan or other types of federal assistance available to veterans?

PLUS:

What makes a great listing? REALTORS® share their tips for how to present their listings in the best light, especially when that first look online is so important.

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

LOG ON,

[vantage point]

from the desk of A. Janelle Pfleiger, CRS, CLHMS, GRI, CDPE 2016 president

get engaged Ø

Since the Council’s introduction of the new member engagement model, the opportunity for CRS Members to get involved is greater than ever. Being an active participant in your local CRS by volunteering, attending events and networking with other agents allows you to stay current with industry trends, boost your reputation, broaden your customer base and increase your income.

It did for me. My career has been enormously impacted by the people I’ve met through my CRS involvement. I have been selling real estate since graduating college, but it wasn’t until I completed my CRS Designation that my career really took off. My income truly doubled!

It was with the Council that I really found my niche. At CRS, I experienced a higher level of professionalism in our industry and found a great group to network with and learn from.

You’ve already made a great choice by becoming a CRS Designee. Now I want to encourage you to take the next step and fully embrace what your membership offers. So log on regularly to CRS.com and go to your State CRS community page. There, you will find local event and course listings as well as blog posts, relevant discussions and advice from other members. You can also store and share helpful files and documents, including marketing materials and event flyers. You will also find contact information for your state leaders, who are happy to hear your questions and ideas.

This online community is your one-stop shop for all things CRS and it was designed to be easily accessible, interactive and engaging. It’s a doorway to becoming a more active member of the CRS community—and a thriving business.

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I HAVE BEEN SELLING REAL ESTATE SINCE GRADUATING COLLEGE, BUT IT WASN’T UNTIL I COMPLETED MY CRS DESIGNATION THAT MY CAREER REALLY TOOK OFF. MY INCOME TRULY DOUBLED!

[short list]

+ industry headlines + statistics + trends

Properties near Target

+27 % 2015 increase in property value

National average

+22% Properties near Walmart

+16 %

BETWEEN THE Ø

Every good agent knows the age-old adage “location, location, location,” but lately there have been some interesting twists on what that means. Data shows that amenities such as a Starbucks going into a neighborhood can have a positive impact on home values. What about some other popular retailers, like the ubiquitous big-box chains, Target and Walmart?

RealtyTrac recently released compelling data on how proximity to either a Target or Walmart impacts property values.

It turns out that while living near a Target may be a drain on your wallet, it could be a boost to your home’s value. Homes located near the store saw greater price appreciation than the national average.

Those living near Walmart also saw an increase in value, but their homes appreciated at a lower rate than the national average.

Among homeowners who sold in 2015, those living in the same ZIP code as a Target saw an average 27 percent

boxes

increase in home prices since they purchased their home, or an average price gain of $65,569. That’s about 5 percent higher and nearly $25,000 more than the national average, which is 22 percent, or about $40,626.

Meanwhile, those homeowners who live in the same ZIP code as a Walmart only saw a 16 percent price gain, or $24,900, falling short of the nation’s average.

Though the data seems to favor Target, there is a drawback: Living near a Target also means higher property taxes.

Homeowners near Target paid an average of $7,001 in property taxes each year while those living near a Walmart paid just $3,146. Compare that to the national average of $4,283.

Homes near a Target are also more expensive, averaging $307,286, while homes near Walmart average $178,249.

When taking clients out to shop for homes, REALTORS® can boast that not only is living near a Target convenient, it may actually mean better price appreciation down the road— as long as you have the budget for it.

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REMODELERS TODAY,

[short list]

+ industry headlines + statistics + trends

Ø

sellers tomorrow

Boosted by rising home prices, homeowners are expected to spend more remodeling their homes this year than in any of the past 10 years.

Expenditures for home improvements are expected to grow from $140.9 billion last quarter to $154.8 billion by the end of September, according to a report recently released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University. That’s the highest level of expenditure since 2006 and marks an increase of 7.6 percent over last year’s figures. $ Chris Herbert, managing director of the Joint Center, 200B says that the continued recovery in the housing market is behind the increase in remodeling dollars, and that resale $ 150B may be the biggest motivator. “In most markets across the country, rising house prices are bringing more homes to the market and increasing sales, which is a large $

driver of home improvement activity,” he says.

In other words: Remodelers today, sellers tomorrow.

“The remodeling market has steadily improved in recent years with homeowners incorporating larger, more discretionary projects into their home improvement priorities,” says Abbe Will, a research analyst at the Joint Center.

The National Association of Home Builders’ Remodeling Market Index backs up the Joint Center’s data: Remodelers are reporting a record-high level of confidence in the remodeling market based on the amount of work they are doing.

If the current projection of $154.8 billion pans out, it will beat the previously recorded high of nearly $150 billion in the second quarter of 2006. As the market tanked, $ 154.8 so did remodeling, dropping below $120 billion from mid-2009 to mid-2013.

100B

$

$

68.0

50B Homeowner improvement activity, in billions

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07

8

0B

199

$

THE MILLENNIAL TAKES FLIGHT Millennials have long been flocking to city centers and urban areas, but as they age and look toward homeownership, the city may not be where they choose to stay. In a trend reversal, young buyers are increasingly looking for homes in the suburbs and small towns.

The number of millennial buyers who bought a home in a city center or urban area dropped this year from 21 to 19 percent. Instead, they are opting for the suburbs and small towns,

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where their purchases are up 2 and 3 percent, respectively. And only 10 percent bought condos, down from 15 percent a year ago.

While it may mark a shift in where millennials are looking to buy, it’s not necessarily that these urban areas have lost favor with the generation. Lawrence Yun, chief economist at the National Association of REALTORS®, explains: “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search farther out. Furthermore, limited inventory in millennials’ price range, minimal

entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households.”

For the third straight year, millennial homebuyers made up the largest chunk of homebuyers—35 percent, edging out Gen X (26 percent), boomers (31 percent) and the silent generation (just 9 percent).

Millennials also rely on the expertise of a REALTOR® when buying a home. Their search may start online, but for 87 percent of millennials, it ends under the wing of an experienced real estate professional.

S

M

T

W

Th

F

S

MAKING AN

appeal

45

Ø

51

Every REALTOR® knows that curb appeal is a huge part of making that vital first impression to potential buyers and can actually upgrade a home’s value.

Here’s what homeowners need to do to add curb appeal.

Current average closing time (days) +

CLOSING TIME

Overall

Since the institution of new disclosure and closing rules last October, closing times have been steadily climbing—until now. Delays in the length of closing are finally subsiding.

This spring, average closing times fell by six days, according to mortgage application software giant Ellie Mae’s Origination Insight Report. The average time to close is now 45 days, down from a 51-day peak in January.

The TILA-RESPA Integrated Disclosure (TRID), otherwise known as “Know Before You Owe,” combined existing disclosures with new requirements from the Dodd-Frank Act, creating new forms and procedures at the closing table. This triggered a slowdown in closing times across the country, causing the closing window to increase from 46 days to 51 days in just a few months. The closing time of 45 days marks a drop from February’s 48 days and is in line with pre-TRID times.

“This (reduction) could be due to lenders becoming more familiar with the new loan estimate and closing disclosure forms and business process around ‘Know Before You Owe,’” says Jonathan Corr, president and CEO of Ellie Mae. It’s possible that the time to close may continue to fall. In early 2015, it only took 40 to 44 days to close a loan.

More good news for homebuyers: Closing rates are climbing, hitting 75.1 percent in February, the highest rates seen since the housing crash. Federal Housing Administration (FHA) loans are now closing at 71.1 percent. Those numbers steadily increased all last year.

ÄWash Ä everything—the windows, front door, porch and garage doors. A homeowner can do this with a bucket of soapy water, a cloth and soft-bristled brush for external sidings, or rent/buy a pressure-washer to get rid of accumulated dirt and grime from the walkways and flagstone.

Entrance

ÄTry Ä repainting the front door and updating the hardware to give it a fresh new look. Replace any damaged or sagging screens. ÄUpdate Ä the house numbers to give the entrance some style. ÄAdd Ä or update light fixtures by the entrance. Bronze finishes complement traditional homes, while brushed-nickel accents are best suited for contemporary/modern homes. ÄMake Ä sure to rinse or sweep the driveway regularly and reseal holes, cracks and potholes. Clean up any fluid leaks or spills as soon as possible.

Landscaping

ÄTrim Ä any overgrown shrubs, remove weeds and tidy up planting areas.

Cover bare spots with seeds and sods and don’t be afraid to plant bright, colorful flowers and shrubs to increase the home’s appeal. ÄAdd Ä landscape lighting for ambiance, appearance and safety.

Roof

ÄEncourage Ä sellers to check their roofs (they should have been doing it regularly) for any missing, badly-curled or damaged shingles that need to be replaced. ÄClear Ä all gutters and downspouts of any debris.

Fence

ÄHave Ä the homeowner inspect the fencing around the home, especially if any components may have moved over the winter.

Check all latches and gates to ensure they are working properly.

Peak closing time as of January

For more information, please visit the experts at Pillar To Post Home Inspectors: www. pillartopost. com.

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TAKE YOUR

[cool stuff]

acquisitions on a theme

best shot

POCKET-SIZED POWERSHOT

Small but mighty, this pocket camera offers 12.1 megapixels, 8x optical zoom and high ISO speeds, so you can take quality photos or video even in low-light settings or from $ 299.99 far away. The Canon PowerShot N also has a tilting 2.8-inch touchscreen that allows you to take photos from different angles, and a Creative Shot mode that automatically produces five unique images from one shot for extra artistic expression.

Built-in Wi-Fi helps you share photos on the go. shop.usa.canon.com

With the rise of homebuyers looking for properties online, photos have become more important than ever for REALTORS® to put their best foot forward. In fact, an NAR survey reports that 83 percent of homebuyers find photos very useful in their search. Fortunately, you can get a great photo with many cameras and camera smartphone apps—no fancy lenses required.

FILTERS OPTIONAL

VSCO is a camera and photo-editing app for both Apple and Android smartphones. The app has a variety of advanced camera controls for adjusting settings such as exposure, focus, shutter speed and white balance. You can then edit photos with VSCO filters and tools that straighten, crop, Free sharpen and brighten your photos instantly. Photos you take are automatically saved within the app, or you can upload photos you’ve already taken to edit them. VSCO also has a feed that enables you to publish your photos so you can share and view photos with other people around the world. vsco.co

FAST FOCUS

Claiming to have the world’s fastest autofocus (AF) and the most phase-detection AF points, the Sony A6300 can snap high-quality photos of both still and fast moving subjects. This camera also has a wide sensitivity range (up to ISO 51,200), a tilting LCD screen, built-in Wi-Fi and 4K video recording. And if you’re feeling adventurous, you can buy a range of interchangeable E-mount lenses that offer even more capabilities.

1,150.00

$

sony.com

2.99

$

ADVANCED iPHONE EDITING

$

699.99

The Camera+ app helps you shoot and edit photos with your iPhone. The app includes tools such as exposure and focus that help you control the brightness of your photos, and various shooting modes such as the Stabilizer, which helps increase sharpness. If you’re short on time, the Clarity feature analyzes your photos and adjusts their quality with just one tap of your screen. You can also upload existing photos to edit them, and share photos via social media or email directly from the app.

The Panasonic Lumix camera boasts a 12.8-megapixel, high-sensitivity sensor and manual creative controls often found in more complex camera systems. You can experiment with depth of field using the aperture ring, and manual assist helps you gauge how crisp your photo is by enlarging a section of the composition by up to 10x. The camera also has built-in Wi-Fi and 4K video recording.

campl.us

shop.panasonic.com

CREATIVE CONTROL

POLAROIDS ARE BACK

If you’re feeling nostalgic, Fujifilm has a collection of Instax cameras that instantly print Polaroid photos. These cameras come with a variety of controls and modes so you can adjust settings such as shutter speed, brightness and exposure, either manually or automatically. Many of the models also have macro features that allow you to shoot subjects close up, and front mirrors that help you frame self-portraits. Fujifilm Instax film cartridges are sold separately. fujifilmusa.com/products/instax

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Price varies

[smart

solutions]

streamlining your business through technology

PLAY IT safe

Data backup and strong encryption software are your best defense against data disasters.

Ø

Data disasters come in all shapes, sizes and disguises.

However, there is one constant, according to Bret Piatt, CEO, Jungle Disk, a data-protection service that provides encrypted backups, secure cloud storage and instant file access. “In terms of losing data, it’s not if … but when.”

Knowing how and why smallto-medium-size businesses most commonly lose data provides insight into proactive steps CRSs can take to help prevent data losses. With that in mind, a 2015 survey commissioned by Carbonite and conducted by Spiceworks, a professional network for IT professionals, delivers the following statistics: ÄÄRoughly 65 percent of all reported data losses link to human error. This includes accidentally deleting a file, damaging hardware (think spilling coffee on a laptop) and losing

data-loaded devices to theft.

Another type of human error overlaps with security incidents and focuses on spear-phishing scams—emails that contain malicious attachments or links.

When downloaded or clicked, malware invades the user’s computer and cybercriminals gain access to company data. Sometimes online culprits usurp data to steal identities, other times they encrypt company files and demand a hefty ransom to unlock the data. Human error comes into play when links or attachments are hastily clicked or downloaded without confirming that the email is from a trusted sender. ÄÄNext up are technology failures, which account for about 29 percent of all lost data episodes. This bucket includes fried hard drives, corrupted applications and outdated software. ÄÄSecurity incidents account for 22 percent of all data losses.

These events include viruses,

malware and ransomware.

Criminals instigate the disaster, but human error often ignites it, so protective steps to avoid security incidents have to come from multiple angles. The effort is worth it, Piatt says. “Data breaches and hacker attacks may not be the most common reasons for data loss, but this set of scenarios is often the most damaging to your business.” ÄÄNatural disasters, such as fire, flood, hurricane or tornado, represent another cause of data loss. The unpredictable nature of such incidents, coupled with inadequate reporting, makes it tough

BY THE NUMBER S to estimate how Operating system vulnermuch data is lost for due to natural disas- abilities accounted of all reported % ter. However, most computer experts put this security issues in 2014.

Software vulnerabilities figure at or below accounted for 5 percent, which is small, but nonetheless devastating if experienced.

13

80%

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Source: BeyondTrust

By Donna Shryer

EASY OPEN

3-2-1

Your best defense against [smart solutions] data loss, regardless of cause, is backup, backup and more backup. Among streamlining your business data backup and recovery through technology experts, a commonly cited backup best practice is the 3-2-1 rule: three copies (the original plus two backups) saved in two different locations (internal hard drive, memory stick, cloud, external hard drive, remote computer, etc.), with one location off-site.

Redundancy is at the root of 3-2-1, so no matter what triggers a data loss, at least one backup should always be available.

Set Your Sights Off-Site

For Edwin C. O’Malley, CRS, broker/ salesperson with Diane Turton, a REALTOR® in the coastal town of Bay Head, New Jersey, saving data to an off-site location is a requirement—a step that saved his and his partner’s data after facing the perils of Hurricane Sandy in 2012. “We lost our computer,” O’Malley recalls.

“But I was backing up to the cloud through Iron Mountain, so once we settled into a temporary office, I downloaded all of our business files onto a new computer.”

The cloud isn’t your only off-site option, as explained by Eric Baucom, CRS, broker associate with REMAX Gold Coast REALTORS® in Ventura, California. Baucom uses the free version of Code42’s CrashPlan. “You can back up data to an internal or external drive and also to any Internet-connected computer. I program backups to my son’s computer located across the country in Philadelphia.”

To Pay or Not to Pay

Some data protection services are free and some have a monthly or annual fee. Paid services, according to Piatt, generally have stronger data encryption capabilities,

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Splashdata, provider of security applications and services, recently announced its 2015 “Worst Passwords List.” The 25 winners—or better put, losers—represent the weakest, most-often-guessed passwords by hackers and identity thieves.

Here’s the list, starting with the No. 1 worst password. also #1 in 2014 also #2 in 2014

123456 password 12345678 qwerty 12345

123456789 football 1234 1234567 baseball

welcome 1234567890 abc123 111111 1qaz2wsx

dragon master monkey letmein login

princess qwertyuiop solo passw0rd starwars

To create a nearly uncrackable password, Splashdata offers three tips. ÄÄ Use passwords with at least 12 characters and a mix of character types, such as letters, numbers and symbols. ÄÄ Avoid using the same password over and over.

ÄÄ If tip #2 makes it impossible to remember which password goes with which site, open your favorite browser and search “password manager.” Results will include multiple programs that organize, protect and even generate passwords.

although the price need not be prohibitive. “You can get started with a service that costs less than $10 a month and has no annual contract.

What’s important is that whatever service you choose acts like a safe deposit box. Only people with ‘the key’ and account credentials can gain permission to view your data.”

After being a victim of cyber hacking and experiencing multiple computer crashes, Lilli Rachel Stevens, CRS, Island and Resort Realty in Fort Lauderdale, Florida, does not take chances when it comes to data security. She uses three services to protect her data. She uses Time Machine (available on Macs), which automatically backs up her computer multiple times a day to an external hard drive, and Carbonite, which periodically backs up her computer to the cloud. She also uses Intermedia’s SecuriSync, which has file sharing and automatic backup, allowing her to access her files from anywhere. “These definitely aren’t

the least expensive choices,” she states. But if the fee ultimately saves a deal, keeps a client or protects my reputation, then I figure the system has paid for itself tenfold.”

John Graff, CRS candidate, a REALTOR® and owner of John Graff Real Estate in Los Angeles, relies on Carbonite to securely back up data to the cloud 24/7. He also talks up his attention to protection. “We highlight our data and cybersecurity to buyers during listing appointments and on our website. It differentiates us in an area that’s increasingly important to our clients.”

Public Enemy

While cybercriminals often invade databases through targeted spear-phishing scams, they can also waltz into your database via public Wi-Fi, which is precisely what happened to Cindy Siok, CRS, principal broker with At Home Hawaii Real Estate Sales & Property in Honolulu.

“We suffered a data breach when a co-worker accessed the Internet through a free Wi-Fi hot spot,” Siok explains. “So now, when my smartphone or tablet asks if I want to connect to free Wi-Fi, I click ‘No’ and rely on my personal data plan.”

Another way hackers wiggle into your database is through a drive-by download attack, which happens when you visit a compromised website that dumps malware into your computer. Security flaws in your Web browser, operating system or software open the door. The solution, Piatt says, is to protect the network inside your office. “Your router may offer some protection, but today you need additional security from network-level attacks.

Because many smaller businesses lack security, hackers are increasingly targeting smaller businesses.”

In fact, according to panelists at the Risk Management and License Law Forum, presented during the

2015 REALTORS® Conference & Expo, small real estate businesses, agents and their clients are fast becoming the targets of sophisticated cyber scammers.

To work around cyber disasters, Tom Polk, CRS, real estate broker with Stanberry and Associates REALTORS® in Austin, Texas, recommends Sandboxie, available in both a free and paid version. The program uses isolation technology to block malicious software, viruses and ransomware threats.

As Polk says, “Sandboxie allows me to click a link or open a website in a sort of virtual computer. I can see immediately if there’s something squirrelly going on, and I can close the browser with no harm done.”

As for emails with links that seem to be from a trusted sender, but you’re not sure, O’Malley suggests this trick: “Hover over the link—without clicking it—and check the URL of the link in the

lower-left corner of the screen. If you see a trusted website, you’re probably OK. If you see something suspicious, delete the email.”

The Best Offense Is a Good Defense

For REALTORS®, it’s time to get serious about data security. The goal is to find a data-protection plan that fits your budget, suits your needs and makes clients feel safe.

As Baucom says, “If you’re smart and proactive about protecting your data, then you’re free to do what you do best—which is helping clients buy and sell homes.”

Donna Shryer is a freelance writer based in Chicago.

To download the free study Backup and Disaster Recovery: The IT Experience, commissioned by Carbonite and conducted

by Spiceworks, visit carbonite.com, click RESOURCES, and click “white papers.” Here you’ll find several additional related reports.

GADGET INSPECTOR

THE GALAXY S7 EDGE IS A STANDOUT

The new Samsung Galaxy S7 Edge is turning heads in the Android community. Its sleek design and curved edges combine a 5.5-inch display with a narrow grip, making it easier to use than other large smartphones. It features an enhanced camera with dual-pixel technology and 32GB of storage, with the option to add an additional 200GB with a microSD card. Bonus: it’s water-resistant.

For more information, visit samsung.com/us.

Starting at $750.

POCKET APP SAVES IT FOR LATER Pocket allows you to save anything from any device—smartphone, tablet or desktop—for later viewing. It’s perfect for collecting articles, blog posts and videos you don’t have time to read or watch at the moment, but want to be able to find later. You can save items to “Your List” via email, from your browser or directly from apps, including Facebook, Twitter and Flipboard. A premium option makes “Your List” permanent and easier to organize.

For more information, visit getpocket.com.

Free.

A SMARTER SMART WATCH: THE GARMIN VÍVOACTIVE HR The Garmin vívoactive® HR is part smart watch, part fitness tracker. It tracks your activity and stats all day with its GPS-enabled built-in sports apps, and smart notifications allow you to stay connected to your iOS and Android devices.

It tracks your calories burned, daily steps and sleep, and can now track floors climbed, too. The highlight feature is that it can measure your heart rate from your wrist with the new Elevate™ For more information, visit wrist heart-rate technology. Its water-resistant technology and batgarmin.com. Starting at $250. tery, which can last up to eight days, will also help keep you moving.

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11

May June

[inside track]

DIRTY

what’s trending in real estate

money

The Feds are taking a closer look at money laundering in all-cash purchases of luxury residential real estate.

By Brittany Magee

Ø

The federal government is taking a big step into the world of luxury real estate, but not as a buyer. The U.S. Department of the Treasury is requiring the disclosure of identities behind all-cash transactions in high-end residential real estate for the first time.

In January, the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department issued a Geographic Targeting Order (GTO) that will obligate certain title insurance companies, which are involved in nearly all real estate sales, to identify the individuals behind “shell companies” that purchase residential properties with all cash. For the time being, the GTO is limited to transactions only in New York City’s Manhattan borough and in Miami-Dade County, Florida—two major destinations for affluent property buyers.

Any buyer who pays all cash for properties over $1 million in Miami and over $3 million in Manhattan, or has at least a 25 percent ownership of a property, also known as a beneficial owner, must be reported to FinCEN. The initiative will only last for 180 days, expiring Aug. 27, 2016. And the Treasury will put all information collected into a database for law enforcement officials.

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“We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money,” FinCEN Director Jennifer Shasky Calvery says. “These GTOs will produce valuable data that will assist law enforcement and inform our broader efforts to combat money laundering in the real estate sector.”

Potential Money Laundering

Money laundering in real estate has become a growing concern for federal agencies, and increasingly more resources are being put into investigating shell companies, such as limited liability companies, or LLCs. While the use of shell companies in real estate is legal, FinCEN is concerned about the possibility of corrupt individuals using all-cash transactions as attempts to hide their assets and identities since no banks are involved in the process.

“Over the years, our rules have evolved to make the standard mortgage market more transparent and less hospitable to fraud and money laundering,” Calvery says.

“But cash purchases present a more complex gap that we seek to address.”

Currently, more than 20 percent of home purchases nationally are all-cash purchases, according to the National Association of REALTORS® (NAR). In December, the month before FinCEN launched its initiative, 24 percent of transactions were all-cash sales, down from 27 percent in November.

While these numbers are down nationwide from recent years, Florida and New York are still in the top five states that continue to see high rates of cash sales at 45.2 percent and 44.1 percent, respectively, based on a 2015 analysis by CoreLogic,

WHAT IS MONEY LAUNDERING? Money laundering is the process criminals use to legitimize, or “launder,” funds through the financial system to hide, or “clean,” the money that was illegally acquired. It is usually a threestep process: ÄÄ A large amount of illegal money is broken up into smaller pieces and introduced into the financial system. ÄÄ The illegal funds are “layered” through multiple transactions to create distance from the criminal. ÄÄ The money is returned to the criminal from what appears to be a legitimate source.

Any of the three stages can involve a real estate transaction, such as when a criminal buys a home and uses illegal funds for the purchase. a financial services company that provides consumer, financial and property information.

All-cash deals represented more than 50 percent of Miami’s total sales alone, according to a 2015 news release from the Miami Association of REALTORS®. In New York City, sales to shell companies have reached 42 percent on the Upper East Side, and 63 percent of luxury properties downtown were sold to undisclosed buyers, as reported in The New York Times.

Ultimately, if FinCEN’s initiative proves that more real estate sales in Manhattan and Miami-Dade County involve suspicious transactions, the Treasury will develop permanent reporting requirements nationwide.

themselves from the idea that the use of LLCs is now inherently criminal. Some believe the new requirement is a positive thing, however.

“This new law will in no way reduce the number of real estate transactions in any significant way, except for those of known criminals,” says James Salas, CRS, a broker associate of E Realty International in Key Biscayne, Florida, an island community in Miami-Dade County. “A simple disclosure explaining the benefits of the law would go a long way to help future buyers feel comfortable purchasing real estate through LLCs.” One thing is certain—the Treasury Department agrees with the NAR’s statement that the majority of REALTORS® are not able or liable to detect money laundering, since the funds involved in real estate sales are handled by financial The Role of REALTORS® institutions. In fact, it was found that most REALTORS® With government agencies keeping a close eye on all-cash involved with LLC transactions don’t know much about the LLC transactions in two major sectors of luxury real estate, buyers because of their detachment from the finances. what does that mean for REALTORS® in those markets and REALTORS® can help identify signs of money laundering, markets like them? however. Working closely with FinCEN, NAR developed a Since this is the first time the government has required set of voluntary guidelines for REALTORS® to spot potential such disclosure from real estate companies, there are precriminal activity in transactions. NAR has promoted this dictions a lull in luxury residential transactions will follow, information to its members through various forms of comas buyers will balk at such exposure or want to distance munication, including on its website, at national meetings and in numerous publications.

Only time will tell how FinCEN’s initiative will affect the luxury residential market in New York City and Miami, and in high-end Here are three guidelines from NAR to help REALTORS® know if a transaction could potentially markets throughout the rest of the country involve money laundering: potentially in the future. “This law should have been adopted long ago,” Salas says. “Most Geographic risk Customer risk Transaction risk residents and purchasers using LLCs welcome If located in an affluent marIf there is a large unexplained If the purchase is made the new law since it ket, where sales of $1 million distance between the buyer with a large amount of serves to clean up the For more or more are common and the property, or if a third cash inconsistent with the community of the information, party is unusually involved in buyer’s income or if there’s rare criminals using visit www. fincen.gov/ the sale an unusual source of funding, LLCs as a shield.” news_room i.e., a third party, etc. and read the Jan. 13, 2016, Brittany Magee is a freelance news release.

If a REALTOR® observes any suspicious activity, they can report it to local law enforcement or the FBI. writer based in Chicago.

know your risk

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The Council of Residential Specialists

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May 13 June

[window of opportunity]

strategies to grow your business

STRENGTH IN

letters

The letters C-R-S might appear after your name, but do clients understand what they mean?

By Regina Ludes

Ø

BY THE NUMBER S

3x CRS Designees have

the success compared with the average REALTOR®.

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When Darlene Sheets earned her CRS Designation in 2009, she put “CRS” in small letters on all her marketing materials, believing that was sufficient to promote her advanced training in real estate. But a past client, who heads up a marketing firm, repeatedly tells Sheets she needs to emphasize her CRS education even more.

“The client told me, ‘You are one of the top agents in the country. It’s OK for you to tell other people about this designation,’” Sheets recalls.

Over 30,000 REALTORS® have earned the CRS Designation. While the designation is recognized as one of the toughest to achieve in the industry, the meaning is often lost on most

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consumers, unless CRS agents take the time to explain it to them. CRS agents have taken different approaches to promoting the designation, including flyers, email messages and Facebook posts. But to help consumers understand the CRS Designation, CRS agents say it’s more important to emphasize the advanced training, acquired skills and documented production that the designation requires and which can benefit their clients for many years to come.

The Competitive Advantage

Armed with feedback from her marketing-exec client, Sheets, with Future Home Realty in Seminole, Florida, is making a more conscious effort to educate consumers about the designation. Video testimonials from past clients tout her expertise on her website, WestFlaHomes. com, and a recently designed postcard prominently displays the CRS logo next to her photo.

In monthly email messages to her contacts, she regularly discusses the

Earning one or more designations can make a difference in a REALTOR®’s earnings. According to 2013 survey data from the National Association of REALTORS®, the latest data available, agents who had at least one designation earned $61,100 while those without a designation earned a median income of $33,500.

About 36 percent of REALTORS® have obtained at least one professional real estate designation.

The most common designations held by REALTORS® include: ÄÄ GRI (Graduate Realtor Institute) ÄÄ ABR (Accredited Buyer Representative) ÄÄ CRS (Certified Residential Specialist)

advantages of working with a CRS and touts the extensive CRS network for referrals.

“I don’t think it occurs to consumers to ask for a referral,” she says. “I tell people, ‘If you don’t love where you live, call me. I can interview other CRS agents on your behalf.’ I want to educate people that I can still help them by finding another CRS agent in any part of the country.”

Sheets says the training and resources she received with the CRS Designation has allowed her to compete as an independent agent against franchise agents in her local market. “I’m still at the top of my game, and that’s because of the CRS Designation,” Sheets says.

Matt Yeager, CRS, had been working in real estate for 24 years, but after moving to his current market in Columbus, Ohio, two years ago, he realized he needed something to help people choose him over other agents in the area.

The Key Realty agent has created a REALTOR® IQ flyer to show his qualifications compared to other area REALTORS®. The flyer, which he sends out by email or delivers at client meetings, emphasizes his CRS education and his role as the 2016 Ohio CRS State Chair. Yeager has adapted the flyer for his presentations to buyers and sellers, and a local mortgage professional company distributes it in its package of mortgage information for its clients.

“Most consumers overlook designations like CRS because agents don’t mention them in their conversations with clients,” Yeager says.

By distributing his flyer to new clients, Yeager hopes to get the conversation started about the CRS brand.

Documented Experience

While many brokers may have earned multiple designations, those acronyms don’t indicate how much experience they have, and most

MEDIAN ANNUAL INCOME Average REALTOR® CRS agents

+118 % over the average REALTOR®

MEDIAN ANNUAL TRANSACTIONS Average REALTOR®

CRS agents

+127 % over the average REALTOR®

clients don’t understand what those acronyms mean unless you explain it to them, says Andrea Lard, CRS, with Portico Property Consultants in Broomfield, Colorado, outside Denver. “Agents today can earn a certificate sitting in front of a computer for a few hours, but with the CRS Designation, agents need to document that they have completed a minimum number of transactions. It is one of the few real estate designations that require agents to prove their experience in the field,” Lard says. She believes CRSs need to emphasize this aspect of the designation with their clients.

To promote the designation, Lard includes data in her listing presentations from the CRS website comparing the production of a CRS with that of the average REALTOR®. She also shares CRS flyers on her Facebook page and displays the CRS logo on her About Me page on her website.

But in Lard’s view, it isn’t the designation logo or letters that matter to clients, it is the expertise and experience CRS agents bring to the table. In a testimonial on her website, a client said he hired Lard because she approached the transaction differently than non-CRS agents he had interviewed. “While other agents told him they would post his listing on different real estate websites and promote it using social media, I focused on my 20 years of experience, negotiation skills and expertise in pricing the property to help him sell his home,” Lard explains.

When CRS agents take the time to demonstrate their advanced knowledge of real estate, their experience in the business and the extensive referral network, clients will recognize that CRS means more than three letters after their name.

MEDIAN GROSS SALES Average REALTOR®

CRS agents

+76 % over the® average REALTOR

22

of REALTORS ® belong to one or more of NAR’s affiliated organizations.

12

The Council of Residential Specialists

%

of REALTORS ® belong to the Council of Residential Specialists®.

Source: 2013 NAR Member Profile

If you know someone who would benefit from joining CRS, refer them to crs.com/ join for more information.

Regina Ludes is a freelance writer based in Chicago.

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%

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Source: www.crs.com

THE DESIGNATION DIFFERENCE

Bozeman Broker Group, Bozeman, Montana

[peer to peer]

profiles of people to watch

How did you become involved in real estate?

I started my career in real estate thanks to an accident.

I was laid up because of an injury—I was working as a recreation director in San Diego at the time—and a friend suggested I study to get my real estate license while I was out of commission.

I did, and passed the exam later that year, and I haven’t really looked back!

What led you to become a CRS? After about 10 years as a REALTOR® in San Diego, my family and I decided to move to Bozeman, Montana.

The reality of starting my career over again was a little intimidating. The only person in town I knew was my own REALTOR®! But frankly, no matter what town you’re in, whether it’s your first day in your own town or anywhere across the country, when you’re in real estate sales, you’re starting from scratch.

I was lucky to begin working and applying my experience and skills in Bozeman. I got involved with local boards, then on a committee

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with other REALTORS®. When I became interested in the educational side of real estate, I realized I needed more than just my GRI, and the CRS was the next level.

So, in 1993, I was able to combine CRS Designation courses, my bachelor’s degrees and 10 years’ experience in selling to get my CRS in one year.

How did having your CRS help you handle the Bozeman market?

Bozeman is a relatively small town, and when I moved here, there were only 20,000 fulltime residents, and everyone knew a REALTOR® and an attorney. I asked myself, “How can I distinguish myself as someone people can trust for advice?” In addition, I had the dual challenges of competing with my peers and the stigma of being from a suburban/urban area outside of Bozeman.

These challenges focused my interest on the kinds of education provided by CRS. I wanted to bring to Montana speakers of the same caliber that I’d had in California.

I knew that CRS was at the top for sales, and it still is.

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Did that prove worthwhile?

As it turns out, I didn’t have to rely only on getting business from Bozeman’s residents. Bozeman has always been an attractive destination both for visitors and prospective buyers, so I focused on serving buyers who were looking to move here. I became the expert on educating them about what the lifestyle changes would be like. Having walked that path myself, I could identify with buyers—both people relocating to the area and those buying second homes.

If they aren’t local, how do you acquire and maintain your clients?

A lot of people visit Bozeman, then they get a second home and eventually move here.

Most of my business expansion is based on client referrals for their family members, for example, members of the next generation who want to buy a parcel of land to build on after they have visited parents or grandparents who live here.

Or grandparents who want to follow grandchildren. One family I worked with eventually had eight family members move here. It’s a relationship-based community.

I also work with agents around the country. Sometimes I think of myself as a poster child for getting a CRS Designation because the inbound referrals from CRSs around the country are so important to me. I rely heavily on marketing to CRSs elsewhere, asking them to remember me if anyone is looking to relocate here.

Are CRSs confident about sending clients your way?

Absolutely. When you receive referrals, you must treat them as if they are your own mom and dad—your integrity and representation reflects not only on you, but on the referring REALTOR®. By going to meet agents and brokers at CRS events, you get to look them in the eye and know if they would be a good match for you.

It sounds like the time you spend on CRS activities is very beneficial.

A lot of REALTORS® question my level of involvement.

I am a Regional VP and represent six Rocky Mountain states at the CRS national leadership level, and I have the opportunity to meet and embrace each individual in these states. By going to CRS meetings, I’ve met CRS Designees from around the country and formed relationships that are as strong as many of my friendships or family relationships.

Once you open the door for participation, you open the door for leadership, the ability to mentor. It’s almost like working with a first-time homebuyer—seeing the new CRS Designees and helping them become the new leaders.

Candis Dorsch achieved her CRS Designation in 1993. She can be reached at 406.581.8111 or at Candis@liveinmontana.com.

Photo: ericschmidtphotography.com

CANDIS DORSCH, CRS

“ Real estate is about the individuals you work with.

Your client pool becomes the basis for your friends and family. I can t retire because it would mean saying goodbye to such wonderful people.�

Candis Dorsch, CRS, lives in Bozeman, Montana. She enjoys spending time outdoors, hiking and traveling.

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As a CRS, you need a strategy to stay ahead of the competition. There are countless ways to do so, but one of the most effective techniques is to become an expert within a particular neighborhood. In this special section, we take a closer look at four types of neighborhoods—gentrifying, ethnic, retirement and unfamiliar—and how CRSs can gain a better understanding of these markets. CRSs share their tips for success—focusing on the unique characteristics of each neighborhood, identifying potential buyers, how to research buyers’ desires in these communities and how to break into the market.

G

$$ $ $ $$$ $ GENTRIFYING

A neighborhood that has experienced recent or ongoing investment from high-end developers and retailers

E ETHNIC

A limited geographic area whose residents largely consist of one particular ethnic group

R RETIREMENT

A community— planned or otherwise— whose residents have chosen the location to suit a post-work lifestyle

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? ?? ?? ? ? ?? ?? ? ? ?? ?? ? ? ?? ?? ? ? ?? ?? ? ? ?? ?? ?

U

UNFAMILIAR

Any neighborhood that may be new or otherwise unfamiliar to an individual REALTOR®

The Council of Residential Specialists

crs.com

May 19 June

special feature

1

What’s in a neighborhood?

DEFINING OUR TERMS

NTRIFYING GE

Williamsburg in Brooklyn, Wicker Park in Chicago and downtown Los Angeles are some big-league examples of gentrifying neighborhoods, but the phenomenon isn’t limited to large cities.

A gentrifying neighborhood is often an older area that has seen better days. It may be rough around the edges, but the bones are good.

For instance, the old millworker housing in the neighborhoods around the Five Points Historic District of Huntsville, Alabama, is on the upswing. One of the big reasons, according to Lea Ellison, CRS, of Crye-Leike REALTORS® in Huntsville, is because buyers are looking to be close to downtown.

“My clients who buy there talk over and over again about walkability and bikeability to downtown,” she says. “There’s also the charm of the neighborhood and something I call ‘rootedness.’

In the older neighborhoods, you don’t feel like

NEIGHBORHOOD WATCH

you are in a transient place.”

However, a gentrifying area doesn’t have to be historic. In Sister Bay, Wisconsin, a federal transportation and infrastructure project that started about 15 years ago is ending this spring, and, as a result, this area is taking off.

The project has brought unencumbered public access to the shore near a revitalized downtown, along with the construction of a shoreline amphitheater and a kayak launch area. Located in Door County, a popular vacation area, Sister Bay is investing in year-round amenities to draw full-time residents—and it’s working.

“Sister Bay has developed everything that a person could want in a small town setting, from doctors to dentists to lawyers,” says MaryKay Shumway, CRS, of Kellstrom-Ray Agency in Sister Bay. “We have the only pharmacy north of Sturgeon Bay.”

Huntsville, Alabama The city of Huntsville has been the fastest growing major city in Alabama over the past 15 years. The city is projected to reach 200,000 residents by 2020 and become the largest city proper in Alabama by 2022.

Number of housing units 2010

84,510 2015

92,664

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Source: City of Huntsville

part

NEIGHBORHOOD CHARACTER

TREND SPOTTING Five tips to identify a gentrifying neighborhood that’s about to turn:

1

Read local business press to find out which commercial corridors are growing. Walkabilty is critical to certain homebuyers.

2

Attend local planning meetings to find out if the city, state or federal government is about to invest in an area’s infrastructure.

3

Educate yourself on the more historic neighborhoods in your area.

Architectural charm can be a gentrification driver.

4

Track new employment hubs.

Some people will take a chance on a neighborhood in exchange for a shorter commute.

5

Educate yourself on the neighborhoods surrounding the current hot neighborhoods. Gentrification can be contagious.

ETHNIC

Photo: Plij

they need to know. When they do their own research, they find that “the demographic breakdown tells another story,” Furth says.

When working in these neighborhoods, agents have to find ways to let the neighborhood speak for itself.

Photo: Marc Averette

Americans love their ethnic neighborhoods. We call out a community’s heritage with gusto, inviting all to its streets lined with shops and eateries true to the neighborhood’s ethnic roots.

And these communities are as vast and varied as the world’s map.

This attraction to diverse, cultural neighborhoods often leads new residents into their boundaries, and savvy agents may see their businesses expand to include previously unexplored territories. But working as a real estate agent in historically ethnic neighborhoods means following specific legal and ethical guidelines (read about the Fair Housing Act on p. 25) that dictate how an agent can position, or even just talk about, these areas. Even when a neighborhood is shouting its ethnic makeup from the streets, like the Puerto Rican flags flying over Division Street in Chicago’s Humboldt Park or the unmistakable “Dragon Gate” entrance to San Francisco’s Chinatown, it doesn’t mean a REALTOR® can do the same.

In ethnic neighborhoods, it is even more important for buyers to see the neighborhoods for themselves and do their own research.

Wendy Furth, CRS, broker and owner of Furth & Associates in Encino, California, who does a lot of business in Koreatown, says a walk through the neighborhood would reveal that it’s a Korean neighborhood from the signage alone, but that doesn’t tell buyers everything

Clockwise from top left: Humboldt Park in Chicago, home to a sizable Puerto Rican population; the Dragon Gate to Chinatown in San Francisco; the Italian stronghold of the North End in Boston; and Little Havana in Miami, named for its community of Cuban immigrants and refugees.

the tale of a first-time investor Lea Ellison, CRS, of Crye-Leike REALTORS® in Huntsville, Alabama, says about half of her clients in the gentrifying neighborhoods near the Five Points Historic District in Huntsville are investors.

In 2015, one of her investor clients decided to buy an 811-square-foot two-bedroom, one-bath house in the area for $52,000. It was on a large corner lot, but on the outer edge of what had been gentrified so far. He planned to renovate and sell.

Her client spent about nine months fixing up the house, doing a lot of the work himself. He restored the natural pecan floors, renovated the kitchen, updated the bathroom and added a 45-squarefoot laundry room to the back of the house.

The original exterior had cedar shingles, many of which were rotted. “He pulled off all the shingles and saved the ones that were still usable,” Ellison says. “He insulated the house and put HardiePlank back up around most of it, using the salvageable cedar shingles on the front to keep the feel of the period of the house.”

In the end, he spent $46,000 on the renovation, a bit more than his budget.

But the good news was that he sold it in 23 days with multiple offers, Ellison says.

The sale price of $112,900 gave him a profit of about $10,000. “That was $132.05 per square foot. The highest sale in that part of the neighborhood before had been $105 per square foot.”

Five Points

Downtown Huntsville, Alabama, circa 1871. The Five Points district is located a few blocks to the northwest.

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special feature

NEIGHBORHOOD CHARACTER TIREMENT RE

part

1

What’s in a

neighbor

hood?

CONTINUED

Retirement living is as much about mental states as geographic states. Retirement might involve a community across town or across the country, be in a defined neighborhood or just a specific building. No matter which choice is made, the end game requires lifestyle changes.

“Around 10,000 people retire every day,” says Ben Staten, CRS, of Red Hot Atlanta Homes in Woodstock, Georgia. “It’s a growing market as boomers retire and look to downsize.” Staten, along with his partner, Kathy Seger, has focused on the retirement market for several years, and it currently accounts for 80 percent of his business.

Seger and Staten concentrate on individuals generally known as “active adults”—seniors aged 55 and older, who are newly retired and plan to live in a neighborhood for at least a decade.

NEIGHBORHOOD WATCH

In the Atlanta market, there are three types of retirement communities, Staten explains. Mega communities have “resort-style amenities,” including clubhouses, indoor/outdoor pools and full-time activity directors. “These tend to be about 1,000 single-story detached homes.”

“Then there are medium-sized neighborhoods with a clubhouse, but it’s usually a lot smaller,” Staten says. These run from 80 to 150 attached or detached homes. “There are also smaller neighborhoods that might have 40 to 50 homes.”

All three types of communities are essentially lock-and-leave because no yard maintenance is involved, he says. The other big draw of these, and many senior living communities, is one-level living. These communities also allow for socialization with neighbors. Everyone is

Hill Country Retreat, San Antonio, Texas

Hill Country Retreat is a planned community being built by Del Webb near San Antonio. Its features are typical among gated retirement communities, including a fitness center, walking trails, tennis courts, indoor and outdoor swimming pools, a library and social clubs.

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sell real estate here without selling to retirees.”

The town is on the Olympic Peninsula and has an area population of 30,000. To the immediate south are the Olympic Mountains and to the north are stunning views of the Straits of Juan de Fuca and Victoria, British Columbia.

In the south bay area of Los Angeles, housing for older seniors tends to be multi-unit buildings with 50 to 100 apartments.

“It is not assisted living; they are retirement centers for independent living,” says Denise O’Neil, CRS, of O’Neil & Associates Realtors in Redondo Beach, California. Buildings are compliant with the Americans with Disabilities Act and typically have walk-in showers, latches instead of door knobs, and grab bars. “A lot of them have recreational rooms on the main floor,” she adds.

Photo: Ebyabe

retired and at the same stage in their lives. “If someone doesn’t see you walking your dog, they will check on you,” Staten says.

In the San Antonio, Texas, market, one retirement destination is a Del Webb community northwest of the city, which will not be completely built out for five to 10 years, says Lisa Weissgarber Harder, CRS, SRES, of RE/MAX Associates in San Antonio. She says that many older people move to the area from the North for milder weather and for the competitive real estate prices and low property taxes.

The community of Sequim, Washington, was not planned with retirees in mind. “It is simply a market-driven retirement community,” explains Michael McAleer, CRS, of RE/MAX Prime in Sequim. “Sequim has shown up for years on national lists of great places to retire. You can’t

BY THE NUMBER S According to the United States Census Bureau, the fastest growing metropolitan area in the U.S. is The Villages, a massive retirement community in central Florida. Using data for the most recent year available, The Villages’ growth rate is

5.4% beating out the next closest city by over 2%.

FAMILIAR UN

THEY SAID IT “The average American moves every six to eight years, so I thought that if I was hitting someone who had been in the house for eight years, I had a greater chance they would be selling in the next two to three years.”

—Nicole Smith, CRS

When you’re a REALTOR®, being well-established in the neighborhoods where you work is an enormous advantage.

However, whether you’re just breaking in as a new REALTOR®, moving to a new area or simply expanding the neighborhoods you service, there will be a time when you need to establish yourself in an unfamiliar neighborhood.

Neighborhoods may be defined by geographic boundaries, subdivisions, homeowners associations or other factors. And while being the “new kid” trying to make a mark can seem like a daunting task, following in the footsteps of people who’ve done it well can make the process much easier.

In 2007, Kristin Walter, the managing broker of Innovative Real Estate Group in Summit County, Colorado, was ready for a move. After being a real estate investor in Sarasota, Florida, she set out for Denver, where she didn’t know a soul, and decided to get her real estate license.

The move was a gutsy one and plunged Walter into a frenetic time of learning the business, familiarizing herself with inventory and making contacts. She visited various neighborhoods in Denver and learned as much as she could about her new home.

She previewed as many homes as possible and pored over both tax records and the last five

years of sales in the Multiple Listing Service (MLS) to learn about trends in the area and figure out what was selling. She wanted to be sure that when people called, she was well-versed in the areas about which her clients inquired. At the same time, she busied herself getting involved in community groups and marketing her business to attract clients.

Instead of geographic boundaries, Nicole Smith, CRS, of Briggs Freeman Sotheby’s International Realty in Southlake, Texas, used “more of a behavioral target market boundary,” she says. After specializing in the Dallas/Fort Worth, Texas, area for more than 20 years, she moved to Flower Mound, Texas, a suburb just outside of her typical urban neighborhoods. She didn’t want to go head-to-head with people who already worked in particular subdivisions, so she set a goal to create a list of 500 target homes within a certain price range—$400,000 to $800,000— that hadn’t sold since 2008.

“The average American moves every six to eight years, so I thought that if I was hitting someone who had been in the house for eight years, I had a greater chance they would be selling in the next two to three years,” Smith says. By zeroing in on sellers who were statistically more likely to be ready to move, she has been happily surprised by the response she has received, landing a few listing appointments and making contact with a local builder in just a few months, she says.

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crs.com

May 23 June

NEIGHBORHOOD CHARACTER

special feature

Who’s buying what?

part

2

BUYER & PROPERTY PROFILES

BY THE NUMBER S

20

%

of neighborhoods with lower incomes and home values—in the lower 40th percentile of the area—have experienced gentrification since 2000, compared to 9 percent during the 1990s.

Photo: Jon Jarosh

Source: Governing analysis of Census data

NTRIFYING

GE In the neighborhoods around the Five Points district in Huntsville, Alabama, homebuyers are a mix of investors and young couples, both with vision. Lea Ellison, CRS, says this area is just beginning its gentrification arc.

The lots are small, and many of the houses were originally just two bedrooms, a kitchen and a living room. Many have additions that may or may not have made sense, and few have garages.

Her do-it-yourself clients want rock-bottom prices. “They are willing to do the work because the upside potential is there,” she says.

Similarly, in the village of Florence in Northampton, Massachusetts, the housing stock is mainly small farmhouse-style houses with three bedrooms and one to two baths. Craig Della Penna, CRS, associate broker with The Murphys REALTORS® in Northampton, sees a lot of families with young children moving to

the area, which was the site of an industrial sewing machine factory. Like the housing around Five Points, renovation is the name of the game in Florence, which attracts a self-selecting group who have vision and can deal with the inevitable chaos renovation brings.

However, a contingent of buyers wants to live in these historic areas but skip the renovations.

Recently updated houses in both Florence and in areas adjacent to Five Points sell very quickly for increasing prices. “If it’s completely turnkey and in the village center, we will see 100 people at open houses and multiple offers within a week,” Della Penna says. Ellison says there’s a waiting list of buyers for renovated houses in the area around downtown Huntsville.

In Sister Bay, Wisconsin, MaryKay Shumway, CRS, is seeing more year-round residents, from young families to retirees, but the weekender contingent is still strong. Many of her clients live in Northern Illinois or Green Bay, Wisconsin, and have discovered Sister Bay as a great getaway.

“Sister Bay is far enough away to feel like a different world, but you can hop in the car after work on Friday and come home Sunday afternoon, and still get a few things done,” she says.

Photo: Royalbroil

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Sister Bay, Wisconsin, though traditionally a resort town, is seeing an increase in year-round residents, leading to congestion during peak vacation seasons.

BY THE NUMBER S

77 %

88 %

For decades, white households have constituted the majority of households in the U.S. Those mostly-white neighborhoods have become slightly more diverse over the past 30 years.

i an As

Hi s

p an

ic

1

4%

10 % %

5%

5% 7%

n- A

me

r ic

an

i te Wh

ic a Afr

putting out the welcome mat The Fair Housing Act is a United States federal act intended to protect a homebuyer and renter from seller or landlord discrimination. The law makes it illegal to discriminate in housing transactions, including rentals, sales, lending and insurance, because of a person’s race, color, religion, sex, handicap, familial status or national origin.

Home sellers, landlords and seekers, as well as real estate professionals, all have rights and responsibilities under the Fair Housing Act.

Look beneath the legalese, and the act comes down to the fact that all people in America have a right to the roof they want over their heads— without outside influences, preferences, prejudices or stereotypes being imposed.

In addition, the Fair Housing Act is meant to foster welcoming and thriving neighborhoods where diversity is a source of pride.

A home seller or landlord may not discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap,

familial status or national origin.

A home seeker has the right to expect that housing will be available without discrimination or other limitations based on race, color, religion, sex, handicap, familial status or national origin. This includes the right to expect: ÄÄ Housing in the requested price range ÄÄ A broad range of housing choices ÄÄ No discriminatory limitations on communities or locations ÄÄ Non-discriminatory terms

and conditions for the sale, rental, financing or insuring of a dwelling ÄÄ Reasonable accommodations in rules, practices and procedures, if handicapped ÄÄ Freedom from harassment or intimidation for exercising fair housing rights.

A real estate professional is prohibited by law from discriminating on the basis of race, color, religion, sex, handicap, familial status or national origin. In addition, real estate professionals cannot honor a home seller or

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landlord’s request to discriminate in the terms or conditions of a purchase or rental; deny that housing is available; or advertise that the property is available only to persons of a certain race, color, religion, sex, handicap, familial status or national origin.

To learn more about the Fair Housing Act’s design and requirements, visit hud.gov and search for “Fair Housing Act.” If you have specific questions, search “Fair Housing Assistance Program,” and you will find a contact list for state organizations that offer live assistance.

crs.com

May 25 June

Source: The Urban Institute

1985 2015

ETHNIC

The main reason agents must treat away from certain areas based on these neighborhoods that have ethnic or cultypes of characteristics, especially the tural reputations with a little extra care racial makeup of residents. That really is the Fair Housing Act, which is very means agents cannot discuss the ethnic specific in how agents can—and more makeup of an area with their clients, often cannot—talk about an area’s populace. even if they are asked.

The act is intended to provide equal access to Furthermore, supplying ethnic-related housing for all people regardless of their race, information about a neighborhood violates the color, religion, sex, national origin, disability and/ National Association of REALTORS® code of or familial status (whether or not someone has ethics, Duties to the Public, Standard of Pracchildren). One of the goals in its establishment tice 10-1, which clearly prohibits volunteering is to create more diverse neighborhoods, so it “information regarding the racial, religious or specifically bars steering or guiding clients to or ethnic composition of any neighborhood.”

NEIGHBORHOOD CHARACTER TIREMENT RE

37 % 32 %

26 21 %

15 20

14 20

13 20

12 20

11 20

10 20

20

03 20

20

09

24 %

FAMILIAR UN

Understanding trends in new markets is essential, says Betsy Pepine, CRS, broker-owner of Pepine Realty in Gainesville, Florida. She finds the BrokerMetrics platform to be useful for analyzing MLS data, and getting involved with homeowners associations—attending meetings if possible—gives insights into various neighborhoods’ strengths and challenges.

Pepine says it’s essential to analyze at least three or four years of data for a new neighborhood to really get a feel for trends. Ideally, the neighborhood will have a 5 to 8 percent annual turnover, which gives a steady flow of inventory, but doesn’t indicate people are leaving the neighborhood en masse, she explains.

After 20 years in Milwaukee, Pat Tasker, CRS, with Shorewest REALTORS® in Menomonee Falls, Wisconsin, was “queen of the market.” But her clients were typically first-time buyers at low price points who needed “a lot of hand-holding,”

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she says. It was labor-intensive work, and she was ready for a change. After the recession, the market was less safe and harder to sell than ever. She decided it was time to focus closer to home and began working at her current office in Menomonee Falls.

While living in the area gave her credibility, she still needed to do her homework. She used the same plan she employed in her urban market and immersed herself in researching market values and selling patterns.

She toured open houses to get a better feel for neighborhoods. She even took notice of the people around her. Would she need to dress differently or modify her service based on the expectations of a more affluent clientele?

“It was a whole different market of higher education, higher income and more competition from other agents,” she says.

Mill Pond Park in Menomonee Falls, Wisconsin, where Pat Tasker, CRS, relocated after 20 years in Milwaukee, about 20 miles southeast.

Source: Gallup

Over 65

%

08

20

%

She had the SRES designation, but says that wasn’t enough to make her feel equipped to serve senior buyers at a higher level. Last fall she earned the more rigorous Certified Senior Housing Professional (CSHP) designation from the Seniors Real Estate Institute. The course work included considerable field time to learn about different types of senior communities. Since earning the CSHP designation last fall, her business with seniors has more than doubled.

There is a separate market for older retirees (typically age 70 and up) who intend to make one last move. “They reach the point where they can’t take care of their home anymore,” says Denise O’Neil, CRS. O’Neil says dealing with these older seniors takes a greater commitment of time and more handholding. She almost never meets them at the property because most clients no longer drive. “I will go to the house, pick up the client and walk them to the car,” she says. “A longer time frame is involved because the whole process is slower.”

65

20

30%

Under 65

43%

07

40%

20

50%

02

When asked at what age they expect to retire, working Americans keep upping their answers.

Here are their not-sogreat expectations:

06

BY THE NUMBER S

20

CONTINUED

05

Who’s buying what?

Those looking at retirement communities are typically senior buyers of the baby boomer generation (age 51–70) or older, who are looking to downsize and/or change location for a variety of reasons. These senior buyers tend to seek out a REALTOR® who is an expert at selling to older clients/retirees because they like to work with someone who understands the type of buyer they are and knows what they’re looking for.

Earning the Seniors Real Estate Specialists (SRES) designation from the National Association of REALTORS® is certainly a good idea, suggests Lisa Weissgarber Harder, CRS. If you can tell prospects you sold another property in the area to a retiree, that also helps cement the deal. “They like that you can give them information about other people who are like them and how they fit into the neighborhood,” she adds.

After 39 years selling real estate, Susanne McInerney, CRS, of RE/MAX Leading Edge in Newton, Massachusetts, noticed she had increasingly sold more homes for older clients.

20

2

04

part

20

special feature

NEIGHBORHOOD WATCH

Koreatown, Los Angeles Oakwood Little Bangladesh

Central Los Angeles

Rampart Village

Wilshire Central Sanford

Koreatown (shown above in green) is the most densely-populated district by population in Los Angeles County, with some 120,000 residents in 2.7 square miles. The neighborhood is large enough to incorporate separate ethnic neighborhoods within it, including Little Bangladesh.

Rather than speaking directly to Koreatown’s diversity, Wendy Furth, CRS, broker and owner of Furth & Associates in Encino, California, markets it as a commuters’ community, thanks to its proximity to downtown. By drawing focus to a neighborhood’s varied amenities, agents can open up clients to new places to live while honoring the spirit of the Fair Housing Act by respecting everything an area has to offer. “If the client likes the look of the houses and the feel of the community, then we’re in the right neighborhood. The client is home,” Furth says.

Photo: Downtowngal

Left: Parade performers during the Korean Festival; below: the historic Chapman Park Market Building in the Mid-Wilshire district

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crs.com

May 27 June

NEIGHBORHOOD CHARACTER

special feature

How do you find your way?

part

3

RESEARCHING A NEIGHBORHOOD

ETHNIC

NTRIFYING GE

Steve Westmark, CRS, with Counselor Realty in Minnetonka, Minnesota, focuses on the west side of the Twin Cities. The suburban areas of Chanhassen, Chaska and Eden Prairie have grown in recent years due to expanded roadways that offer easier access to downtown and new corporate campuses right in these areas.

Westmark saw this upswing coming; he’s active in the local chamber of commerce and stays up-to-date on all the local business and development news. “Whenever you have an opportunity to hear what’s going on in your area, on plans and trends in your community, go to that event,” he says.

Likewise, MaryKay Shumway, CRS, spends a lot of time at planning commission meetings so she can best sell the new facets of the community to potential buyers. In fact, she identified Sister Bay, Wisconsin, as up-and-coming three years ago, when she was selling a farmhouse that was surrounded by roads that were going to be reconfigured by an upcoming Department of Transportation road construction project.

Lea Ellison, CRS, has educated herself about the neighborhoods around Five Points in Huntsville, Alabama, by simply becoming familiar with them.

“You learn by talking with other agents, going to open houses and tracking sales. Track what’s going on by seeing it, not just by reading stats in the MLS.”

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When clients want details, there are ways a REALTOR® can legally, ethically and truthfully help buyers determine a community’s defining characteristics. Anna May, CRS, broker and owner of Realty World Neighbors in Hayward, California, advises “sharing resources so clients can collect information and draw their own conclusions.” ÄÄPoint clients to the Census Bureau: May sends clients to the “fact finder” section of the U.S. Census Bureau website (factfinder.census.gov). The client types in a ZIP code and can review an area’s specific demographics, including racial, ethnic and income breakdowns. ÄÄReview community events: Often a community will host festivals or have relationships with other cities that imply cultural connections. For example, in Hayward, California, May’s geographic area of focus, the community shares sister relationships with different cities around the world. “These cities suggest our ethnic connections,” May says. “Although in truth, I’m only opening the client’s eyes to what already exists.” ÄÄOffer a list of community houses of worship: This may suggest a neighborhood’s ethnic characteristics. ÄÄDirect clients to the local police department: Never disclose a neighborhood’s crime statistics or voice an opinion about an area’s safety.

TIREMENT RE

A good way to understand what senior buyers are looking for when it comes to retirement living is to investigate the different communities.

There are many options, and it’s important to provide your clients with as much information as possible as to what lifestyle a particular community would allow/provide for. “Visit the sites and look at the floor plans,” suggests Lisa Weissgarber Harder, CRS. “Then look at some of the pre-owned homes so you’re prepared when someone says they’re interested in something where everybody is my age.”

Retirees attracted to Sequim, Washington, for instance, are seeking a community that allows for an active lifestyle. “We have thousands of miles of hiking trails in the Olympic National Park, which covers most of the peninsula,” says Michael McAleer, CRS. “What these retirees want is to live in a place with natural beauty, fresh air, a slower pace and a healthy lifestyle.”

“Most people who buy in these active communities are newly retired,” Weissgarber Harder says.

“They’re still able to play tennis, golf, bocce ball, swim and use the exercise room.” Depending on the location, they get involved in a variety of classes and cultural trips. “They move to these communities to be with people who are still young enough to have fun,” she says.

SENIOR SERVICE

1

Know and list their options. Providing clients with all the retirement housing options in the community will help them make a decision that’s best for their needs and wants.

2

Keep key features in mind. Retirees usually prefer homes with one-level living, a yard with no upkeep, opportunities to socialize and remain active, and locations close to their family.

No matter which type of community they live in, however, many Sequim retirees choose to grow old there, so businesses have opened to make that possible.

For example, contractors are readily available to install key home features, such as walk-in tubs, grab bars and other accommodations, as aging bodies make it more difficult for senior residents to get around.

Bell Hill, a retirement community in Sequim, Washington, features views of Happy Valley in the foreground and the Straits of Juan de Fuca to the northwest.

Five steps for success when working with current and future retirees:

3

Help them downsize. This can be a difficult task for many seniors, so giving them tips about how to let go of items and prepare for a smaller living space will be extremely helpful and appreciated.

4

Get the Seniors Real Estate Specialists designation. Seniors like to know what they’re paying for—and it will help you attract clients and garner referrals.

5

Anticipate that they may need more time with the process. Whether they need your assistance during showings or are taking their time choosing their forever home, patience is key.

FAMILIAR UN

As Pat Tasker, CRS, began researching sales in her new territory, she noticed a distinct pattern. A typical buyer in Menomonee Falls, Wisconsin, was either someone new to the area who had left the city and was looking for a starter home in a new school district, or people who were outgrowing their starter homes and condos and wanted bigger houses in the same area.

Some buyers were transfers moving into the area.

However, once she began to see these personas, she could target her marketing accordingly. After just two years, she was the top agent in her new office.

In her previous office, her best year was 95 closed transactions totaling $9.5 million. By making the move to the suburbs and getting to know the market, she doubled her average sale price. In 2015, she bested her former record, breaking $10 million with just 48 units.

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crs.com

May 29 June

NEIGHBORHOOD CHARACTER

special feature

part

4

What’s your angle?

THE MECHANICS OF MARKETING

FA S T FA C T S Public housing developments in New York City surrounded by highincome neighborhoods have lower violent crime rates and have public elementary schools with higher standardized test scores than developments surrounded by lowincome neighborhoods.

Source: The Effects of Neighborhood Change on New York City Housing Authority Residents, NYC Center for Economic Opportunity, May 21, 2015

NTRIFYING GE

Steve Westmark, CRS, is always tracking data and trends, in his area and nationally, and he shares that information with potential clients through weekly video blogs. In a recent video, he discussed national REALTOR® confidence data from the National Association of REALTORS®, bringing in local statistics as well.

Craig Della Penna, CRS, became a REALTOR® after working in the railroad industry and then for a nonprofit that turns old rail lines into walking and biking trails. So it makes sense that he works in the Pioneer Valley in Northampton, Massachusetts, an area that’s turning old railroad corridors into linear parks.

Given his background, Della Penna markets himself as an expert in converted railroad lines and the villages that surround them. He also runs a bed and breakfast in Northampton. “I get several real estate transactions a year from people who love this area so much they want to relocate here.”

Lea Ellison, CRS, focuses on the historic and downtown areas, so she runs ads in a historic district church directory and in museum and event programs. She also lists her properties using the terms she knows are buzzwords to

NEIGHBORHOOD WATCH

her potential clients. “When you use keywords on social media, whatever architectural terms apply to the house, make sure they are in your search engine optimization (SEO) list,” she says.

When Ellison is representing the seller of a renovated home, she asks him or her to make a spreadsheet—she provides an example—of everything done to the house along with the date and the cost. “We can add up all those costs, which tells them the value added to the property, and then we price to market,” Ellison says. She also puts that spreadsheet in the document section of the MLS listing so it’s accessible to agents and appraisers.

Being on the cutting edge of a gentrifying neighborhood is a valuable place to be. It takes some legwork and vision, but it’s not necessarily hard to get intelligence on the next breakout neighborhood. “People love talking about real estate,” says MaryKay Shumway, CRS, “and they love real estate gossip.”

For more information or statistics about gentrifying areas, go to governing.com/ gov-data/census/gentrification-incities-governing-report.html.

Florence, Northampton, Massachusetts

When industrial mills were the economic engine of this area, housing sprung up nearby for the workers. As the mills shut down, some neighborhoods fell into disrepair and are only now being rejuvenated.

For example, an old sewing machine factory in the village of Florence in Northampton, Massachusetts, now houses a medical office and more than 25 small businesses. A late-1800s general store has been converted into a pie bar. And buyers are updating housing in the surrounding area.

“The next generation is coming in, and they want to live close to town,” says Craig Della Penna, CRS, associate broker of The Murphys REALTORS® The historic Miss Florence Diner in Florence, Northhampton, Massachusetts. in Northampton. “People want to live in traditional neighborhoods.”

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ETHNIC

Marketing yourself in traditionally ethnic neighborhoods may be a careful dance with what’s legally and ethically acceptable, but that doesn’t mean it can’t be done.

Eloise Gift, CRS, broker and owner of Gift Realty NM in Albuquerque, New Mexico, always starts the search with price, which is typically her buyers’ No. 1 concern anyway, and uses that to guide her search. This naturally opens up her search to new neighborhoods. It’s therefore important to stay on top of how all these traditionally ethnic neighborhoods are changing.

It’s also important that her GPS is always ready to rock.

“We have to drive through the neighborhood, look at the homes, watch people on the streets and get a feel for the community,” Gift says. “It can make a big difference in a client’s

willingness to consider a neighborhood they once thought was off limits,” she explains.

This exact scenario played out when she was recently working with a senior couple that was surprised when she suggested they look at a home in a particular neighborhood. “They had a negative preconception about this community—but their assumption was based on outdated information. They had avoided the neighborhood for decades and had no idea how the neighborhood had blossomed.

So in many ways, the most important part of my job is to educate clients—introduce them to all the neighborhoods that fit their criteria.”

At the end of the day, buying a house is about many different factors that ultimately dictate what a client will buy, and it’s important for an agent to consider all of them.

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Clockwise from top: The diverse crowd at a political event at Rio Grande High School in Albuquerque, New Mexico; houses near the Sawmill neighborhood in Albuquerque’s Old Town; and a suburban neighborhood just outside the city. Though dominated

by Hispanic/Latino communities, Albuquerque represents a diverse cross-section of ethnicities, with neighborhoods to match.

crs.com

May 31 June

NEIGHBORHOOD CHARACTER

special feature

TIREMENT RE

part

4

What’s

your

angle?

CONTINUED

BY THE NUMBER S Homebuyers over the age of 50 make up

41

%

of the total buyers’ market.

Source: 2015 National Association of Realtors® Home Buyer and Seller Generational Trends

Denise O’Neil, CRS, has been sellthem different ideas about how they ing real estate in the South Bay might repurpose.” area of Los Angeles since 1987.

Clients are also advised to donate, “After many years in the business, my discard, give to family members or sell clients are older,” she says, and the majority off some pieces before moving, and they are of them today are generated by referrals. Michael directed to agencies that can assist them.

McAleer, CRS, says he engages in the same Downsizing requires most seniors to make marketing activities as many REALTORS®; he difficult decisions at what can be a particularly lists offerings on Zillow and maintains an inforvulnerable time. McInerney conducts a seminar mative website. Yet most of his business is series that she licensed through the Seniors from referrals. “Last year, Real Estate Institute—Down72 percent of sales were sizing Made Easy: Five Easy based on other people saying Steps to Simplify Your Move.

I did a good job for them.”

“While sorting through Susanne McInerney, CRS, possessions, choosing a new provides her senior clients a place to live, and deciding five-step program for moving what to take and what to into retirement living, which leave, it suddenly hits them starts with seniors learning that downsizing is a lot of about what options are availwork,” she adds. The seminar able in the area. “If a senior has become one of her best goes online, they can’t find a ways to attract new clients. list,” she says, “so I help them When Lisa Weissgarber learn what their options are.”

Harder, CRS, visited one of One of the biggest chalher downsized clients, she lenges for seniors of any age was offered soda in a crystal moving into retirement living glass. “When I tried to object, is the need to downsize. “They she told me that was all she Susanne McInerney, CRS, conducts a may have lived somewhere had,” she says. “I’ll never forseminar series for seniors to explain for 20 or 30 years and accuget her telling me that every how to make downsizing easy. mulated furniture and objects day is a celebration when you they don’t want to part with,” get old. ‘All these years,’ she says Ben Staten, CRS. There’s no way they can told me, ‘I never used this stuff except for birthmove all of their belongings. “We have to give days and holidays. Now I use it every day.’”

one photo is worth . . .

Alan and Lauren Lodwick with their granddaughter at the site of their new home.

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When he goes through the building process with clients, Ben Staten, CRS, at Red Hot Atlanta Homes in Woodstock, Georgia, takes pictures of the house as it is being built, especially for out-of-state clients. One couple, Alan and Lauren Lodwick, was moving to the Gainesville area to be close to their children and grandchildren. On the day they met Staten at the site to finalize their contract, they brought along their granddaughter. Staten took their photo and included it with other photos showing progress. At the closing, Alan Lodwick told Staten that at the time he hadn’t thought much about it.

But when that photo came up on the virtual tour, he said he knew why he had gone through the whole process, and it was definitely worth it.

THE POWER OF DOING GOOD

After Pat Tasker, CRS, with Shorewest Realtors in Menomonee Falls, Wisconsin, shifted her focus from Milwaukee to the suburb where she lives, she got involved with local organizations in the community. Tasker was particularly moved by the tragic story of a local young woman who died of a heroin overdose and immediately looked for ways to help others who might be at risk.

She became involved with her local Big Brothers Big Sisters chapter. She was paired with a local elementary school student and met her “little sister” at the school weekly. Tasker and her little sister spent more time at the school, learned about its strengths and met new people in the community through her service.

“Even though I lived in the community, getting involved with this organization led to new contacts I never would have made because I didn’t have children in the school. It’s certainly not why I got involved, but it was an unexpected benefit,” she says.

FAMILIAR UN

Finding the right marketing mix that will make local clients feel comfortable is different for each area. Betsy Pepine, CRS, uses newsletters, email blasts and community events. She sponsors a well-known community Easter egg hunt, as well as ice cream socials for clients.

Kristin Walter used a personal touch, going door-to-door in her community and getting involved in local groups. She also used postcard and newsletter mailings to reach targets.

In 2010, Pat Tasker, CRS, created Facebook pages for each of the subdivisions she was targeting and maintained them as information sources. Most content she posted was community and neighborhood information with some real estate news and open houses, positioning herself as the go-to source for both regional real estate and neighborhood information. She also used more traditional methods, such as buying advertising space on supermarket shopping carts for more mass-market reach.

Nicole Smith, CRS, also uses an informational approach with her clients, focusing on useful content rather than self-promotion in her postcards, newsletters and email marketing. Instead

of “pick me because I’m No. 1,” her approach is, “Here is some useful information, call me if I may be of service,” she says.

While it’s tough to directly attribute ROI to one task in a multifaceted marketing effort, Pepine says that consistency is critical.

“Pick communities that turn over frequently and be consistent with your marketing—17 touches per year—for two years before making an evaluation. The goal is to have 50 percent of the listings in the area in two years,” she says. The size you target depends on your comfort level. New agents should start at 300 to 500 homes to be able to effectively and consistently market, while more established agents with larger budgets can manage areas with as many as 10,000 or more homes, she says.

Breaking into a new market is possible. With a steady effort that includes research, marketing and community involvement, REALTORS® can tap new markets near or far.

What’s your best advice for CRS agents getting started in a new area?

Start a discussion at crs.com.

The following writers contributed to this special feature: ● Gayle Bennett ● Donna Shryer ● Michael Chazin ● Gwen Moran

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crs.com

May 33 June

resources for learning & leisure

WHAT’S

joy

GOT TO DO WITH IT?

On the home front or at work, ‘Don’t worry, be happy’ may be the smartest ‘success prescription’ you can follow.

Reviewed by Allan Fallow

Ø

I’m not exactly a nose-tothe-grindstone type—I’d rather climb a mountain in Maine than the ladder of success—so I was thrilled to discover that The Happiness Track contains a chapter on “purposeful mind-wandering” called “Get More Done by Doing More THE HAPPINESS of Nothing.” In it a TRACK: Nobel Prize-winning HOW TO APPLY THE economist shares his SCIENCE OF HAPPINESS opinion that creative TO ACCELERATE YOUR insights come not SUCCESS from obsessive focus

by Emma Seppälä, on a demanding task, Ph.D. but rather “from inteHarper One gration with more 214 pages, $27.99 free-floating ideas and emotions that arise during leisure time, daydreaming, recollection of memories and other connections to your own internal world.”

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And so, faced with a demanding task—reviewing Emma Seppälä’s new business primer, subtitled How to Apply the Science of Happiness to Accelerate Your Success—I decided to connect with my “own internal world” by taking a nap.

If her advice lacked merit, you wouldn’t be reading this now.

My field experiment in powering down proved the wisdom of a key point in Seppälä’s short but uplifting book—namely, that our single-minded preoccupation with achieving concrete results has deprived us of “the one thing that can help us succeed and truly be productive: nonlinear thinking and creativity.” The truth of the matter, Seppälä claims her research has revealed, is that “success depends in large part on unfocusing.”

Creative Idleness

Yes, there’s a certain woo-woo quotient to her writing—Seppälä is, after all, the science director

of a fuzzy-sounding outfit called the Center for Compassion and Altruism Research and Education at Stanford University—but before you object that “the unfocused mind pays no bills,” consider the pains this author has taken to ground her argument in utility. Throughout her chapter on “creative idleness,” for example, she sprinkles the sort of practical advice you’d expect to find in a much more traditional business book: ÄTo Ä diversify your daily activities, take a quick walk rather than checking your social media accounts, or organize your workday so as to alternate tasks requiring intense focus with more mindless ones. ÄTo Ä make time for silence, try attending a daylong retreat devoted to hiking, wellness or meditation, or simply fold the laundry without simultaneously watching TV or talking on the phone.

Seppälä believes the vast majority of us have bought into the bankrupt notion that getting ahead means “doing everything that s thrown at us (and then some) with razor-sharp focus and iron discipline — and at the expense of our happiness.”

ÄTo Ä reintroduce fun into your life, join an informal sports team, try a “laughter yoga” workshop or recruit a play partner.

Did some International Board of Happiness certify Seppälä as an expert in the discipline? I have no idea, but I can say the woman has got some serious “success cred.”

Originally from Paris, she earned a degree in comparative literature from Yale, a master’s in East Asian languages from Columbia and a Ph.D. in psychology from Stanford.

She also speaks five languages.

Paradoxically, however, not until Seppälä witnessed some highly driven classmates pursuing and achieving success in all the wrong ways did she feel motivated to write The Happiness Track: “While I have been inspired by my colleagues as they launch nonprofits, get voted into Congress, write bestselling novels, become successful Broadway actors, found innovative startups, play major roles in humanitarian efforts across the world, and attain billionaire status as Wall Street bankers, I have also been saddened to see so many of these outwardly ‘successful’ people drive themselves into the ground and end up chronically stressed and unhealthy.”

Shift Out of Overdrive

By accepting overextension as a way of life, Seppälä believes, these and other actors—that is to say, the vast majority of us—have bought into the bankrupt notion

that getting ahead means “doing everything that’s thrown at us (and then some) with razor-sharp focus and iron discipline—and at the expense of our happiness.”

Yet only by lightening up and giving ourselves a break—“stepping out of overdrive,” as she puts it—can we hope to make happiness an attainable and sustainable goal.

Seppälä details her happiness prescription in six fast-moving chapters that will make you feel giddy, not guilty, about the prospect of stepping off the fast track.

Vastly simplified, her formula for finding professional and personal contentment goes something like this: Live in the present; replace stress with resilience; discover the surprising power of calm; learn to chill out productively; show compassion to yourself; and show compassion to others.

If you’ve been driving yourself mercilessly forward of late, I predict the author’s commonsense recommendations for removing burnout from your success formula will strike you as both a reprieve and a roadmap, a balm and a boon. Rather than eternally—and mulishly—straining against our harness, Seppälä suggests, what if we lifted our heads every now and then to acknowledge the bright sunshine and cool breeze of this beautiful day?

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

YO U M I G H T A L S O L I K E …

LIVING FORWARD

by Michael Hyatt and Daniel Harkavy [Baker Books] 208 pages $ 14.74/hardcover Design a simple and effective plan that looks at the bigger picture so you can get what you want in every aspect of life.

THE STORYTELLER’S SECRET

by Carmine Gallo [St. Martin’s Press] 288 pages $ 18.48/hardcover Learn why a story can be an asset by looking at great storytellers in history, including Dr. Martin Luther King, Jr. and Steve Jobs.

DEALSTORMING

by Tim Sanders [Portfolio] 256 pages $ 17.94/hardcover The seven-step guide to the art and science of how to close a deal, from a former Yahoo! executive.

THE HAPPINESS EQUATION

by Neil Pasricha [G.P. Putnam’s Sons] 320 pages $ 16.24/hardcover To achieve true happiness, you need to change the way you think about everything.

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GIVE A S GOOD A S YOU GET

resources for learning & leisure

YO U M I G H T A L S O L I K E …

CLOSING

Ø

credits

As all good REALTORS® know, a closing gift is one of the best ways to end on a high note with clients after the home buying/selling process. The best gifts are usually along the lines of something practical, personal, local or stress relieving. Here are three ideas to get you started:

VEUVE CLICQUOT CHAMPAGNE GIFT BASKET $ 179 Champagne is the perfect way to toast to a new home. Wine accessories and Godiva chocolates help sweeten the occasion.

Available at giftbasket.com.

HARRY & DAVID DELUXE HEARTHSIDE GIFT BASKET $ 200

APPLESEED PRODUCTS PAINT KIT

THE MOVING DAY SURVIVAL KIT Moving day is a chaotic, stressful day for homeowners. Cue the Moving Day Survival Kit®. It’s a Thermos 24-can insulated cooler filled with 20 essential items for a new home, including trash bags, hand soap, paper towels, toilet paper, paper plates and cups, a first-aid kit and more. It’s the perfect way to provide clients with items they need but don’t have time to buy. movingdaysurvival.com

A paint kit may not be a flashy item; however, it can be the perfect gift to help homeowners start to make their new place feel like home.

Each signature Appleseed paint kit includes a Handy Paint Pail with comfort handle and magnetic brush holder, two paint rolls, a premium sash brush for all paint and stains, a paint roller, a paint cloth, a handy paint tray with deep well and magnetic brush holder, a paint pail and tray liners for easy cleanup, and a paint voucher worth $50 in Sherwin-Williams paint products. Paint and equipment can add up, so this is the perfect way to provide clients with everything they’ll need to get started.

Stocked full of sweet and savory treats, from salami to chocolate truffles, this will be sure to satisfy all family members’ cravings.

Available at harryanddavid.com.

appleseedproducts.com

CUTCO KNIVES Cutco is the largest manufacturer of kitchen cutlery in the U.S., and their knives are a popular choice among REALTORS®. All of the knives are designed for everyday use and are made with high-carbon stainless steel blades and an ergonomic handle. Gift sets range from $130–$504, and can be customized with an engraving or monogram of your choice. It’s a practical gift that many homeowners do not have or wouldn’t buy for themselves. Even if they don’t cook frequently, it’s a memorable, high-quality product that’s made to last.

cutco.com

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MONOGRAMMED CARVING BOARD 100

$

A monogrammed kitchen accessory is a great accent to personalize a new kitchen. Available at williams-sonoma.com.

inside

CRS

GOING local

news from the council

Getting involved with CRS is easier than ever.

Ø

Being a Certified Residential Specialist signifies that you have earned an important distinction in the residential real estate business. You’ve set yourself apart with a CRS designation. You have access to the industry’s best training and events. And you are a part of a valuable referral network. But being a CRS also means that you belong to a community of successful, like-minded colleagues who can help you throughout your career.

The best way to take advantage of this community is to get involved with CRS on a local level, starting with your state CRS and

the local networking groups (LGNs) associated with it.

Starting this year, CRS transitioned from its old chapter structure to a new, more streamlined engagement model, connecting CRS members together within the state they operate. Through this transition, the Council has also established a robust online platform for CRS members to expand their network, find and offer help on common issues, easily locate members for referrals, share up-to-date and relevant news, locate and store files, and find local and national events.

Recent discussion threads

Go to CRS.com to access your State community page, which is a hub of local information. This new page provides an easy way to connect with your State CRS. Listings for local events

Start here

Links to your local networks

Links to statespecific blog posts

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inside

CRS news from the council

Check out your state group

If you haven’t done it already, take a look at your state’s community page online. It’s easy to access and navigate everything that’s going on near you. This is the main communication page from the state groups to their members.

It all starts with logging in: Go to CRS.com and make sure you are logged in to access all the members-only content. After that, you can find your state CRS in two ways: Click on “My State CRS” on the top rail, near the middle of the page, or go directly to your state’s URL (for example, Illinois.crs.com). As long as you are logged in, you will be able to access this page.

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38

Everything you need to know in one place

The state CRS community page is your hub for local information. There you will find several categories for information:

Virginia

STATE STRATEGY

Once you have your CRS Designation, the doors to the CRS network are wide open.

Getting involved locally is the best way to reach out to other members, grow your network, expand your education and reap the full benefits of your CRS membership. Here are three states that are really doing it right.

You are already automatically enrolled in the state CRS where your office is located. If your territory crosses state lines, or you’re going on a trip to another state and want to see if there are any classes or events you can attend while there, you can also see every other state’s page by clicking on the States button near the top of the community page.

Virginia.CRS.com

The Virginia CRS has a lot of energy and has been pouring it into creating a richer experience for the state’s members.

“I’m a big believer that it takes a village,” says Virginia CRS chair Candice Bower, CRS. “You have to want to see things improve. I believe in it, and our SLT (state leadership team) and LNGs [local networking groups] are committed to working together to bring more opportunities to our members.”

For Virginia, this year is all about outreach, to get members more involved, and to reach Candice Bower, CRS out to seasoned agents and those who have been on the fence about membership. The push has led to 30 new members, Bower says.

The Virginia CRS leadership team also takes advantage of national and statewide events to add extra networking and educational opportunities at a time when members are all assembled in one place. At the state convention, they offered a luxury home tour that doubles as a networking event, as well as a way for agents to see new home trends and talk shop.

“But the No. 1 thing we really concentrated on is making more of an effort to actually go where the members are, at each of our LNG areas,” Bower says. “This year we will hold seven leadership meetings in each LNG territory, along with a networking event to welcome local members.”

“We’ve always worked to encourage members to take advantage of the benefits of being a CRS. As state leaders, we have the responsibility of providing opportunities for our members to learn, network and develop relationships with fellow CRS members throughout the state,” she says.

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Hawaii Hawaii.CRS.com

With Hawaii CRS, it’s all about the personal touch, says Tricia Nekota, CRS, Hawaii CRS chair.

“What the committee and I like to do is call,” she says.

“When talking with our members, it allows us to engage with them and invite them to our events. Reaching out to agents on an individual level has a spiderweb effect because they will naturally invite others, too.”

She also relies on emails and the state’s active Facebook page to get in touch with members in a more personalized way. Nekota’s biggest push is for education, which is how she and other active members got hooked on CRS. “The majority of our members feel that once they took a CRS course, they were hooked on the quality education they

ÄÄDiscussions, a place to post discussion topics, questions, ideas and find help ÄÄLocal Network Group information and contact information for your local leaders ÄÄState CRS Events, a calendar dedicated specifically to local events ÄWays Ä to Get Involved and a point-person to help you get started ÄÄContact information for your Leadership Team ÄYour Ä State CRS Blog, where your state Leadership Team can provide updates, announce events and relay information ÄÄState CRS Files, where you may share and

store documents, flyers and marketing materials other members may find useful ÄÄNational CRS General Discussion Forum, Full Calendar and Latest News, including registration for events like Sell-a-bration®, webinars, and other topics pertinent to your business and CRS on a national level This new page should provide you with an easy and straightforward way to connect with your State CRS and get involved. By participating locally, you can get a lot more out of your membership, grow your referral network, and learn from educators and other agents—ultimately impacting your bottom line.

“We ve always encouraged members: Not only are you developing good relationships with clients, but with your fellow agents.”

—Candice Bower, CRS

Nevada Tricia Nekota, CRS

received. One course is all it takes,” she says.

The Hawaii CRS has then focused on education by sponsoring additional courses, as well as offering several Lunch and Learns for on-the-go agents.

“When agents attend the classes, they are given tools to use in the industry that allow them to do better in their business and separate themselves from others,” she says.

Hawaii CRS has also found success with their signature networking event, Pau Hana, which is Hawaii’s version of happy hour. It’s a casual get-together that allows members to connect with each other and introduce potential new members to the group.

Nevada.CRS.com

The Nevada CRS Leadership Team has taken a unique approach to drawing in new members and encouraging larger local participation. They are teaming up with other networking groups, particularly the Young Professionals Network (YPN), where the Nevada CRS sponsors or co-hosts events, and the Women’s Council of REALTORS®.

“I’m incorporating a lot of younger people,” says Nevada chair Frederick K. McElroy, CRS. “They use us as mentors and we listen to their energy.”

Frederick K. McElroy, CRS The state is also known for several popular fundraisers, including its fashion show fundraiser every year in early December, which draws hundreds of attendees. McElroy says members talk it up all year, making it a can’t-miss event for anyone in the organization.

McElroy, whose wife, Alice Heiman, is a networking guru, says that between the two of them, they try to not only have the networking events in his state, but to actually teach members how to network.

“Everyone thinks they know how to do it, but they don’t,” McElroy says. “You want to go in with a series of questions, knowing who is going to attend that event, and having specific people in mind you want to connect with. And you want to let them talk about themselves.”

It’s this kind of partnership between Nevada CRS, the hotels and casinos where they host events, other networking groups, and the members themselves that make for an active membership that sees big benefits from all that face time.

“We really have the best people,” he says. “It’s all about real relationships these days in business. You want to refer to someone you know and like and trust.”

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learn

from the

BEST strategies from the industry’s top educators

SOME

assembly REQUIRED

Three steps to start building your team.

By Mike Parker, CRS

Ø

CRS INSTRUCTOR

Mike Parker has had a team since 1991, and his colleagues Melondie Sullivan and Jill Kuchle have been with him for 17 and 14 years, respectively. Mike’s team has grown from one assistant over the years to four full-time assistants and seven team agents handling 300 units in 2016.

May June

40

Are you thinking of building a team? Many CRS Designees see their businesses grow to the point where they need to bring on some help. How do you know when the time is right, and how do you get started?

If you are a top-producing agent, meaning you are netting a six-figure income, then building a team might be right for you. The stakes can be high—I have seen plenty of teams start and then crash and burn—so here are some things that might help you along the way.

The first question you need to ask yourself is: Why are you building a team. Is it to increase profit or to free up some of your time? Both can be achieved, but one must come before the other, so decide where you want to focus first.

Establish job descriptions for everybody, including yourself. If you are the “rainmaker,” you get paid to do five things and only five things: List homes, sell homes, prospect, negotiate contracts and lead the team.

As the team grows and your team members become more experienced, some of these things might even be lifted from your plate.

Your first two hires should be a part-time bookkeeper, for bills and profit and loss income statements, and then a full-time administrative assistant who becomes licensed within the first three months. A licensed assistant can do so much more and can free you up to do other things that bring in net profit.

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The third hire is an income-producing agent, either a buyer agent or team agent. I prefer a team agent because they can list and sell whereas a buyer agent only works with buyers.

Have all systems in place before team members are brought on. The main reason teams crash and burn is that they fly by the seat of their pants, and there are no systems in place. If you don’t know where to start, look into getting a coach who has experience in team building.

Unless you hire an income-producing agent, all other team members should be employees and they need to sign agreements with your team and company. And remember, you do not have to share your commission with anyone on the team when working a seller or buyer lead.

Align the vision. Everyone must have the same vision and be working toward the same goal. Your team’s vision statement should come from you, but let your team develop the mission statement. And listen to your team members— they are the ones talking the most with your buyers and sellers.

For more detailed information, you can download a recording of Parker’s webinar, “Building a Team from the Ground Up,” at CRS.com.

CRS

connect

YOUR CRS

network

MIDWEST

Ø

Linda Fuller, CRS, a broker associate with RE/MAX Cutting Edge Realty in Macon, Georgia, received a referral from Georgia CRS chair Margie Medlin, CRS, a Marietta, Georgiabased agent with RE/MAX Pure. Medlin has a lifelong friend who is a REALTOR® operating out of the Atlanta area who needed help showing properties to a young couple looking to buy in the Macon area. Fuller showed properties to them one Saturday and they found the one they wanted to make an offer on, and the offer was quickly accepted. Fuller then recommended attorneys and inspectors in the Macon area, let them into the home later and went to the closing. Fuller’s help so impressed the Atlanta agent that she split the commission with Fuller rather than paying her a much smaller referral fee.

Serving the Greater Cleveland, Ohio Area for Over 15 Years

CONNECTION PERFECTION

Jackie Collesi, CRS

REALTOR ®

Office: 216.751.8550 Cell: 216.780.8607

Quality Service Award Top 3% Company Wide

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

WEST

expand your network

WEST

WEST

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

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

CRS of the Year, 2003 Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com Celebrating 25 years assisting clients!

1991-2016

WEST

WEST

WEST

Seattle & the ‘Burb’s

COLORADO

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

Barb Avery

Joan M. Pratt

MS, CRS, CLHMS, CDPE, CARI

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

RE/MAX Northwest Realtors

888-255-2272 (Call-Barb) 206-226-2879 SeattleSuburbs@yahoo.com www.SeattleSuburbs.com

Relocation, city-wide to world-wide.

Seniors Specialist/Estate Specialist Voted Best in Client Satisfaction multiple years —Seattle Magazine

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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CRS

connect

CRS

CLASSROOM COURSES

expand your network CRS 120—Converting Leads Into Closings June 14—San Antonio, Texas [Texas CRS] 210-363-9282

Instructor: Mike Selvaggio, 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.

CRS 123—Mastering Relevant, Consumer-Focused Marketing June 15—San Antonio, Texas [Texas CRS] 210-363-7015

Instructor: Frank Serio, CRS

June 20—Nashville, Tennessee [Greater Nashville Association of REALTORS®]

July 25—Wichita, Kansas [Kansas CRS]

615-254-7516

CRS 166—Certified Luxury Home Marketing Specialist Training Part I June 9—Jupiter, Florida [Jupiter-Tequesta-Hobe Sound Association of REALTORS®] 214-485-3000

Instructor: Tami Simms, CRS

785-587-7145

Instructor: Robert Morris, CRS

Instructor: Frank Serio, CRS

August 8—Henrico, Virginia [Virginia CRS] 804-249-5722

Instructor: Gee Dunsten, CRS

WEST

WEST

CANADA

Thinking

Hawaii?

www.JamesHawaii.com

29 years of “Experience You can Trust” James E. Lewis (R) CIPS, CRS, GRI, SRES® Cell: 808.225.0569 RB-14807 Email: J.Lewis@Realtor.com

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

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

Fax: 905-727-2230

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

E-mail: lenard@hallmarklindrealty.com

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

SOUTH

SOUTH

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

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24201 Walden Center Dr. Bonita Springs FL 34134

lisacromwell@remax.net www.LisaCromwell.com

CRS 167—Certified Luxury Home Marketing Specialist Training Part II June 10—Jupiter, Florida [Jupiter-Tequesta-Hobe Sound Association of REALTORS®]

CRS 201—Listing Strategies for the Residential Specialist June 8—Santa Rosa, California [California CRS]

214-485-3000

Instructor: Chandra Hall, CRS

Instructor: Tami Simms, CRS CRS 200—Business Planning & Marketing for the Residential Specialist June 20—Atlanta, Georgia [Georgia Institute of Real Estate & Georgia CRS] 404-252-6768

Instructor: Mark Given, CRS June 28—Edwards, Colorado [Vail Board of REALTORS®]

949-766-2901

June 23—Syracuse, New York [New York CRS] 800-239-4432

Reach more than

Instructor: Gee Dunsten, CRS

30,000

CRS 202—Effective Buyer Sales Strategies July 27—St. Charles, Missouri [Missouri CRS] 314-267-2691

Instructor: Jackie Leavenworth, CRS

970-766-1029

CRS peers with your ad here.

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

Instructor: Rich Sands, CRS

SOUTH

SOUTH

SOUTH

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 Berkshire Hathaway texas Realty

512.306.1001

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

NORTHEAST

Sandra Jean LaBarbera

Your referral source for the greater

RELOCATION SPECIALIST “Succeed with Sandra Jean” Certified Real Estate PRO

Pittsburgh

area

Broker,ABR,CLHMS,CRS, SRES,REALTOR, Since 1984

DIRECT: 919-418-2400

I help clients make the Wright move

Serving: Raleigh, Durham, Chapel Hill, Research Triangle Park, Wake Forest & Surrounding Counties, North Carolina

Nancy Wright, ABR, CRS, GRI

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

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

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

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SHARE YOUR EXPERTISE

Would you like to be a source for a future story in The Residential Specialist? Send an email to mhuffman@crs.com to be added to our potential source list. To see a list of topics we’ll be covering, check out the magazine’s 2016 editorial calendar online at crs.com.

[resources]

reach out to the experts who made this issue happen

PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS

EDIT

Leave YOUR HOME as is, or personalize the newsletter by adding your photo, logo, address and phone number to the mailing panel.* You can also substitute any article in the newsletter with one of your own.

Edit the newsletter e­ lectronically by downloading the Microsoft Word version at crs.com/ yourhomenewsletter.

Ethnic Neighborhoods

Retirement Communities

wendy@wendyfurth.com

denise@deniseoneil.com

Wendy Furth, CRS Furth & Associates

Anna May, CRS Realty World Neighbors

AnnaMay@AnnaMayRealEstate. com

Eloise Gift, CRS Gift Realty NM

Denise O’Neil, CRS O’Neil & Associates Realtors

Lisa Weissgarber Harder, CRS RE/MAX Associates

lisaharder@remax.net

Susanne McInerney, CRS RE/MAX Leading Edge

sue@SusanneMcInerney.com

eloise@eloisegift.com

Gentrifying Neighborhoods

Ben Staten, CRS Red Hot Atlanta Homes

Ben@RedHotAtlantaHomes.com

Craig Della Penna, CRS The Murphys REALTORS, Inc.

Michael McAleer, CRS RE/MAX Prime

Lea Ellison, CRS Crye-Leike Realtors

Unfamiliar Neighborhoods

Craig@TheMurphysRealtors.com

lea.ellison@crye-leike.com

michael@teammcaleer.com

MaryKay Shumway, CRS Kellstrom-Ray Agency

Kristin Walter Managing Broker, Summit County Innovative Real Estate Group

Steve Westmark, CRS Counselor Realty

Pat Tasker, CRS Shorewest Realtors

Shumway.mk@gmail.com

steve@westmarkteam.com

Kristin@KWalterGroup.com

ptasker@shorewest.com

Nicole Smith, CRS Briggs Freeman Sotheby’s International Realty nsmith@briggsfreeman.com

Betsy Pepine, CRS Pepine Realty

betsy@betsypepine.com

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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 AY/J U N E 2 016

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

❷

❸

EXTRA yardage Ø

Want to make better use of your outdoor space without spending a lot of money? Try these three simple tricks that can make all the difference between using your backyard and just looking at it. ❶ Romantic lighting can really add drama and whimsy to an otherwise dull outdoor space. Try stringing lights over a patio for a look that recalls street cafés and romantic restaurant patios. If you don’t have natural hanging spots for your lights to hook onto, install a simple, wood pole with a loop or hook screw on top. You can install the poles directly into the ground, or attach them onto your pre-existing railings or a heavy base.

❷ Potted trees and bushes can divide designated areas, provide shade in the summer heat and create privacy.

Consider ‘Skyrocket’ juniper trees, bamboo or arborvitae to start. You may want to ask your local plant center for ones that grow well in your area of the country and how they survive winter, if that is a consideration. ❸ Add a chimenea. If you live in a climate where it’s cooler at night and you want to extend the life of your patio past summer, add a simple, small chimenea. These are fire pits with a round, open belly and a thick pipe on top. The fires start quickly, don’t get too hot or too big, and are more easily controlled than a traditional open fire pit.

TAP INTO YOUR HOME’S VALUE For years, homeowners were afraid of tapping into their home equity—and rightfully so, considering the downward trend of home values in markets across the country.

But since prices began rising in late 2012, many homeowners have recovered significant chunks of equity and are now starting to feel more comfortable tapping into it, particularly to make renovations and repairs that may ultimately increase the value of their homes.

This combination of rising equity, tight

inventory and historically low interest rates monthly payment changes during make home equity lines of credit (HELOCs) look and after this period. pretty attractive, but homeowners looking to ÄÄ Is the interest tax-deductible? take advantage should make sure they underSavvy homeowners may want stand the following information first: to check their credit beforehand at ÄÄ Does the HELOC have a fixed interest rate or AnnualCreditReport.com to help detera variable interest rate and what is the rate? mine what kind of terms they might get, and ÄÄ What is the limit? if there’s anything they can do to improve their ÄÄ What are the terms of the draw period, creditworthiness. Make sure your creditor walks when does it end and what are the terms you through the process so you completely thereafter? Particularly note how the understand the terms of your agreement.

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

SUMMER SECURITY Ø

Summer is a care-free time: School’s out, the weather’s nice and vacations are planned. But that easy-going attitude can leave your house vulnerable, especially if you’re leaving it unattended while you’re kicking back at the beach.

You know the standard tricks—stop the mail, have a trusted neighbor on the lookout—but you don’t have to stop there.

Go for a smart home. A smart home set-up allows you to control lights, appliances, thermostat and security systems from your smartphone. So with the tap of a button you can turn the lights on and off from anywhere. Products differ, but simple starter kits are often available starting at around $100.

Fake your TV. Rather than leave your TV on, fake it, and utilize a product that mimics the light made from a real HDTV, including mimicking scene changes, fades and on-screen motion.

These small devices start at around $20.

OV

E REFER RA LS!

IL

SAY YES TO CRS EQUAL HOUSING

Install fake security cameras. A security camera can be a strong deterrent, but it is expensive. Fake ones, however, are quite cheap—they sell for as little as $10.

Get a sophisticated light timer. Plugging your lights into a timer is the age-old burglar deterrent, which means that determined burglars are wise to this trick. So make sure your timer either turns the lights on and off at random, or allows you to program separate times for each day of the week.

Activate a barking dog.

Although a little more expensive, several products mimic the sound of a barking dog as someone approaches the home.

Attached to a motion sensor, the “dog” will start barking if someone is near the home and get louder and more persistent as the person gets closer.

Buying or selling a home can seem like an overwhelming task. But the right REALTOR® can make the process easier—and more profitable.

A Certified Residential Specialist (CRS), with years of experience and success, will help you make smart decisions in a fast-paced, complex and competitive marketplace.

To earn the CRS Designation, REALTORS® must demonstrate outstanding professional achievements—including high-volume sales—and pursue advanced training in areas such as finance, marketing and technology. They must also maintain membership in the National Association of REALTORS® and abide by its Code of Ethics.

Work with a REALTOR® who belongs in the top 3 percent in the nation. Contact a CRS today.

DO YOU KNOW SOMEONE WHO IS THINKING ABOUT BUYING OR SELLING A HOME? PLEASE MENTION MY NAME. This newsletter is for informational purposes only and should not be substituted for legal or financial advice.

If you are currently working with another real estate agent or broker, it is not a solicitation for business.

OPPORTUNITY

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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

Q:

TOUCHY SUBJECTS

When going on a listing appointment, are you willing to discuss price right away or do you wait until the client signs?

“ I do a two-step process for 90 percent of my listings. Some you can nail down pretty well before you set foot in the door. I send them a survey I created in Google Docs to get an idea of what they think it’s worth.”

Brian Teyssier, CRS RE/MAX Advanced REALTORS® Pittsburgh, Pennsylvania brian@briansellspittsburgh.com

“ I discuss price before the sellers sign a contract. I want to have transparency from the beginning of the relationship. If we cannot agree on the listing price, there is no need to sign a listing contract. The goal is to walk away with a mutual understanding of what the next steps will be for the sale and marketing of their home.”

Stephanie Burg-Brown, CRS Metro Diamond Realty Philadelphia, Pennsylvania stephanie@metrodiamondrealty.com

“ I learned several years ago through CRS to not price, but to position homes. I do not discuss price until I have a commitment to working with me. My counseling on effectively positioning a home on the market so it sells for the best price is one of my value propositions.”

Kimberly Knapp, CRS Coldwell Banker Vanguard Realty Fleming Island, Florida kim@teamknapp.com

Participate in active discussions like this by going to CRS.com and logging in to your state community page by clicking on My State CRS. There you can find this discussion, along with helpful links like Brian’s survey, events and contact information for other CRS agents.

May June

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The Residential Specialist trsmag.com

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FEBRUARY 9-10, 2017

ARIZONA GRAND RESORT & SPA In 2017, the brightest stars in residential real estate will head to Phoenix, AZ on February 9-10 for 2 days of unparalleled networking opportunities, business building strategies, and the chance to hear insights from top-producing agents and industry leaders. Invest in the future of your business and register today!

REGISTER BY JULY 5

FOR ONLY $525!

crs.com/sell-a-bration

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Early bird pricing ends July 5

CRS members . . . . $525 Non-members . . . . $589

Regular price

$649 $699

Don't forget to register for our preconference one-day course on Feb. 8 CRS members . . . . . . . . . . . $130 Non-members . . . . . . . . . . . $160

EARLY BIRD SPECIAL ENDS JULY 5

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