The Residential Specialist, March/April 2017 by The Residential Specialist

residential

mar + apr

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

2017

THE

SPECIALIST ALSO IN THIS

ISSUE

Faux furniture: a faux pas? Landing international clients Spot the buyer turnoffs

Bulk up your email leads The latest in virtual reality Are you ready to be a landlord?

PRIVATE

SALE CRSs are divided on the subject of pocket listings

Rest Assured. You can trust HomeTeam for a faster, more efficient home inspection. We’ve worked hard to establish our proven reputation with real estate professionals, homebuyers and home sellers alike, and we stand by our promise to provide a professional inspection every time. As experts, we’re in the business of protecting families as they make one of the most significant decisions of their lives. Find out how our team approach has helped families find safe homes for over 20 years.

That’s the HomeTeam promise.

contents HIDING IN PLAIN SIGHT 18 What happens when a home appears on the

Mar 20 Apr 17 vol. 16, no. 2

features

market, but stays invisible to the MLS as a pocket listing? Controversy, for one thing. By David Tobenkin

MASTERS OF ILLUSION 22 Staging homes with faux furnitureâ&#x20AC;&#x201D; is it a smart move or a faux pas? By Daniel Rome Levine

WORLD TRAVELERS

TURNED OFF

Tips for increasing your international client base.

Understanding what homebuyers do not want is as important as knowing what they do want.

By Gayle Bennett

By Donna Shryer

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The Council of Residential Specialists

crs.com

Mar Apr

contents

Mar 20 Apr 17

vol. 16, no. 2

departments

4 VANTAGE POINT

By Leigh Brown, CRS

5 SHORT LIST

Aging in place; new homes are shrinking; the health of local markets; shorter closing times; and pre-sale renovations.

9 COOL STUFF

Products to make spring cleaning a breeze.

10 SMART SOLUTIONS

5 tips to expand your email list with quality leads. By Donna Shryer

12 INSIDE TRACK

Agents use advanced technology to give buyers a view into the future. By Megan Craig

14 WINDOW OF OPPORTUNITY

Real estate smarts provide a good start for what you need to know to become a landlord, but there’s much more to learn to become successful. By Michael Chazin

16 PEER TO PEER

Cliff Baker, CRS, Coldwell Banker Vanguard Realty, Fleming Island, Florida

34 WORK + LIFE

Whiplash: How to Survive Our Faster Future, by Joi Ito and Jeff Howe Reviewed by Allan Fallow

Address Your Stress Simple ways to unwind at the end of the day.

inside CRS 37 NEWS FROM THE COUNCIL

Sell-a-bration® 2017 featured inspiring keynotes, engaging sessions and a multitude of networking opportunities.

40 LEARN FROM THE BEST

Questions about fees should be greeted with conversations, not quips.

By Rich Sands

41 CRS CONNECT 48 ASK A CRS

Staging: Real or faux?

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.

TIME FOR A SELL-A-BRATION®

More highlights from this year’s events.

GO GLOBAL

3 tips for finding international buyers in your home market.

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

How to Win a Bidding War With a tight housing supply, buyers often bid against other buyers. Learn how to help your buyers beat the competition. The Best Marketing Ideas CRSs offer their most effective marketing ideas. Their most important tools include ideas for lead generation, listing pitches, open house signage, networking and more!

EDITOR Michelle Huffman mhuffman@crs.com 800.462.8841 2017 ADVISORY PANEL Moderator: Clark Niblock, CRS Co-Moderator: Marylea Todd, CRS 2017 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 Megan Craig Daniel Rome Levine Donna Shryer David Tobenkin OFFICERS 2017 President Leigh Brown, CRS Chief Executive Officer Lana Vukovljak 2017 President-Elect Gary Williams, CRS 2017 First Vice President Michael Burkhard, CRS 2017 Immediate Past President Janelle Pfleiger, 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 2017 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.

The Downsizing Market As baby boomers increase in age, downsizing will continue to become a popular and necessary trend among older Americans. Learn how to attract this population. Making the Most of Outdoor Living Take a deep look at how outdoor living spaces have massively gained in popularity over the years and what specific trends are offering ROI and attracting buyers.

PLUS:

Spending too much time on mundane daily tasks? Learn what technology or systems tools are most effective at automating your daily tasks. 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.

[vantage point]

GET INTO THE

from the desk of Leigh Brown, CRS, ABR, CIPS, SRES 2017 president

spring OF THINGS

Photo: Mike Anderson

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Every year, spring hits us in real estate like we weren’t really expecting it! The curse of the commission life is the questioning and doubts that winter causes, followed by the 180-degree change when the first warm weekend arrives! This is the time when some REALTORS® stop prospecting and branding, as they struggle to keep up with client demands. But not you; you are a CRS. You know that the cycle never stops! If you’re thinking of adding to your team (or starting a team), perhaps you need to carve out a day for the classroom course on teams (check the schedule for CRS 122–Building a Team to Grow Your Business at crs.com), or if you are too stretched for time, you can download a webinar recording and watch it at night in your PJs (maybe the March 21 webinar—Leverage and Delegate to Double Your Production). And while you’re up late working, you’re probably on social media checking in. It’s a great time to make sure you’re connected to your local, state and national CRS communities so you can be alert to referral opportunities and find the partners who can help you through those real estate moments that only fellow REALTORS® understand. Remember to use our hashtags of #MoreThanHouses when you’re out doing amazing things in your communities and associations, and #OneHour when you’re doing education and networking within the CRS community. I’m watching and hoping that every single one of us is committed to improving this CRS community and real estate as a whole! I appreciate each of you—now, back to it!

BE ALERT TO REFERRAL OPPORTUNITIES AND FIND THE PARTNERS WHO CAN HELP YOU THROUGH THOSE REAL ESTATE MOMENTS THAT ONLY FELLOW REALTORS® UNDERSTAND.

[short list]

+ industry headlines + statistics + trends

BY THE NUMBER S

aging IN PLACE Ø

America’s older population is in the midst of unprecedented growth—the number of adults age 50 and older is expected to grow to 132 million by 2030, an increase of more than 70 percent since 2000—and the U.S. may not be prepared to house them. Housing that is “affordable, physically accessible, well-located, and coordinated with supports and services is in too short supply,” according to a recent study by the Harvard Joint Center for Housing Studies and the AARP Foundation. The report contends that more than one-third of adults 50 and older spend more than 30 percent of their income on housing, deeming it unaffordable, and forcing them to cut back on food, health care and sometimes retirement savings. That housing then may or may not fit their

The U.S. population aged 65 and over is expected to grow from 48 million to 79 million by 2035. Source: Joint Center for Housing Studies of Harvard University

needs as they age: Much of the nation’s housing inventory also lacks basic accessibility features. Despite these challenges, the vast majority of those older than 50—even among those older than 80—expect to continue living in their own homes as long as possible. The problem then is this: We need more affordable housing that includes accessibility features so more people can age in their homes, or at least age in the same communities where they raised their families. Accessible, smaller homes that have universal design features such as a no-step entry, single-floor living, extrawide doorways and halls, accessible electrical controls and switches, and lever-style door and faucet handles may soon become immensely popular (though right now, only 1 percent of homes have all five, according to the report).

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79 million 2035

48 million 2016

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[short list]

22%

21 %

+ industry headlines + statistics + trends

Home buyers who prefer a specific house size <1,600 square feet

28 %

29%

>2,500 square feet

Source: The National Association of Home Builders

2,000-2,499 square feet

1,600-1,900 square feet

GETTING cozy Ø

2016 marked the end of an era that began in 2009, when the size of newly built homes increased year after year. In 2015, the typical new home had 2,689 square feet, but in 2016, that number dropped by about 50 square feet to 2,634, according to the U.S. Census Bureau. The National Association of Home Builders says it’s a sign the construction industry is preparing for first-time homebuyers and millennials, who are after smaller, more affordable homes. There’s still a discrepancy, however, between what these buyers want and new homes coming up on the market, particularly on the smaller end. While nearly 30 percent of buyers want a home under 1,600 square feet, only 13 percent

of new homes hit that mark. On the other end, while only 15 percent of buyers want a home greater than 3,000 square feet, 32 percent of new homes are that size or larger. Other features that buyers want include the following: Ä44 Ä percent want homes with more than two bathrooms (31 percent of existing homes have them, while 68 percent of new homes offer more than two bathrooms). Ä45 Ä percent of buyers want a completely open kitchendining area (51 percent of new homes are built with the kitchen and dining room completely open). ÄÄ32 percent of buyers want a home with a completely open kitchen-family room (54 percent of new homes are built with a completely open kitchen-family room arrangement).

A CLEAN BILL OF HEALTH

Interested in seeing how healthy your local market is? Smart Asset, a financial decision-making site, has released a detailed, interactive map of the health of local markets. In determining whether or not a market was healthy, the firm looked at places where the market was both stable and affordable, where homeowners were easily able to sell their homes and where there was a low risk of homeowners losing money over time. The firm looked in detail at the number of years people remained in their homes (higher was better), the percentage of homeowners with negative equity (lower was better), the percentage of homes that decreased in value, the average time a home sits on the market and the monthly cost of owning a home as a percentage of household income in each county and city. Here’s the ranking of the Top 10 healthiest markets, but you can look yours up online at smartasset.com, or go to TRSMag.com for the direct link.

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TING T U C CL Ø 1

WEEKS

E OS

Some lenders are now shooting for a 21-day turnaround to close home loans. That would be a major reduction from the current time-to-close, which hovers around six weeks. Closing times bloated after the housing crisis, and there doesn’t seem to be any indication of them shrinking. The number of days to close for purchases averaged a little over 47 days in 2016, showing no real reduction in time from the year before, according to mortgage origination system servicer Ellie Mae. But National Mortgage News says that lenders are starting to push for the three-week close. National lender CrossCountry Mortgage Inc. in Brecksville, Ohio, and California lender FirstCal are training staff to meet that target, in part to attract REALTORS® and, by extension, buyers and sellers looking to close faster. Companies are retooling their operations and training staff with the hope of meeting the 21-day goal for closing home loans. Loan volumes have been falling and lenders have largely sorted out the implementation of major new regulations, so they have more time to focus on integrating the technology and strategies needed to reduce the time spent on certain steps of the process. CrossCountry, for example, is also getting buyers on board by asking them to commit to the 21-day timeline as well, National Mortgage News reports. However, hurdles exist, particularly appraisals—an ongoing appraiser shortage and unpredictable appraisals sometimes hobble the process, according to the National Mortgage News.

THE TOP 10 HEALTHIEST MARKETS

1 Edgewood, Kentucky, a suburb of Cincinnati

2 Mesquite, Texas, a suburb of Dallas

Northridge, Ohio, a suburb of Dayton

Concord, Missouri, a suburb of St. Louis

Jenison, Michigan, a suburb of Grand Rapids

Bethel Park, Pennsylvania, a suburb of Pittsburgh

Forest Hills, Michigan, a suburb of Grand Rapids

Richland, Washington, a community in southwest Washington

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9 Pearl City, Hawaii, a community near Honolulu

crs.com

10 Clawson, Michigan, a suburb of Detroit

Mar Apr

[short list]

PRE-SALE RENOVATION

+ industry headlines + statistics + trends

Flooring

checklist

Remove outdated carpets and replace them with either laminate, hardwood flooring or ceramic tiles. These surfaces are easier to clean and are helpful to people who have allergies. Buyers are often specifically looking for updated flooring when they evaluate a potential home.

✓

Fixtures and hardware

Replace outdated doorknobs and handles on all doors, entrances and exits; cabinet hardware; bathroom fixtures; and lighting fixtures. This is an easy and fairly inexpensive fix that can offer a nice return on investment. If fixtures and hardware are not replaced, they can date a property and make it appear as if it has not been maintained.

Bathrooms

If your client does opt to undertake a bathroom upgrade, it’s often worth the money, as it’s considered the second most important room in the house. Upgrades can include new tile and grout, a new faucet and hardware, a new coat of paint, and upgrading or replacing cabinets.

✓ ✓

Kitchen

This is widely considered the most valuable room in the house, but your clients don’t need to spend a fortune to make it look spectacular. Simple add-ons such as a deluxe faucet, cabinet door hardware, upgraded or new appliances, new lighting or adding a backsplash can help jazz up its appearance and functionality. They can also rebuild standard cabinetry at half the price of custom cabinets or using expensive materials.

✓

Add an income suite

Depending on the city or municipality, if the neighborhood allows for income suites, your clients could potentially add 150 to 160 percent of equity into their home by putting in an extra suite, which could also be used for adult children or housing aging parents. This allows the owner to also potentially receive additional income through a tenant, though it depends on the market.

✓

This article was provided by Pillar To Post home inspectors. For more information, go to pillartopost.com.

Mar Apr

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clean

[cool stuff]

acquisitions on a theme

Whether you love it or dread it all year, there’s no denying that spring cleaning is a worthwhile task. Studies show that decluttering, cleaning and organizing your living space helps reduce stress and increase a sense of happiness. Here are a few ways to make your spring cleaning season easier.

AND SIMPLE Free

PUT IT THERE

POWER WASHER

Google Keep is the perfect way to stay organized while you’re organizing. Keep saves notes, lists and photos all in the same place so you can quickly and easily access them. The option to color code and add labels allows for additional organization. You can even instantly document what’s on your mind by recording a voice memo that Keep will transcribe and save for later. Plus, you’re able to share and collaborate with others on Keep so groups can always be on the same page.

If you’re looking for an affordable dishwasher that doesn’t sacrifice cleaning power, the Kenmore 13479 may be a perfect pick. The 24-inch built-in appliance highlights simple, no frills design on the interior and exterior. Its main feature is the PowerWave™ Spray Arm, which cleans dishes from every direction, with jets spraying from two sides. It also includes a Time Remaining Display that shows you the cycle status. It’s a basic setup, but a great bargain for the price.

keep.google.com/u/0

bit.ly/2k0NeDw

THE GIFT OF THRIFT

Cleaning out your closet just got a whole lot easier with thredUp, the world’s largest online thrift store. Simply send unused clothing and accessories to thredUp with its Clean Out Kit. After being evaluated, items that are on-trend and in great condition are placed Free for sale. Items that aren’t accepted for sale can be returned to you or passed on to third-party sellers. The profits from any of your items that sell may be used as store credit, donated to a cause of your choice or transferred to you through PayPal. thredup.com

DANDY FOR DANDER

The Neato XV Signature Pro is one of the top robot vacuums on the market, especially for pet owners. The combo brush is uniquely designed to pick up more pet hair. Plus, with a larger brush, filter and dirt bin, the Neato is able to clean up more debris on all surfaces. You may opt for a multi-room or spot clean, and you can set a daily clean time, too. $

449.00

399.99

RABBIT-OF-ALL-TRADES

Speed through your spring-cleaning to-do list with the help of TaskRabbit. Describe the to-do you need done, such as repairing a leaky faucet, organizing the basement or running an errand. Say when and where, and TaskRabbit will connect Free you with a local, qualified “Tasker” within minutes. Once the task is complete, you’re billed directly through the app. TaskRabbit is currently available in 19 cities and counting, and is iOS and Android compatible.

neatorobotics.com

taskrabbit.com

ALL FOUR ONE The FlexWash + FlexDry Laundry System is one of the most innovative ways to do laundry yet. It’s a standard, side-by-side, front-load washer and dryer, but both the washer and dryer have a corresponding smaller washer and dryer in the top of the machine. The idea is to wash and dry normal loads in the standard-sized washer and dryer, and do smaller, more delicate loads in the smaller capacity units. Both the dryers and washers are able to run simultaneously, without affecting the other. Availability and pricing have not yet been released by Samsung.

Not yet available

samsung.com/us/home-appliances

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The Council of Residential Specialists

crs.com

Mar Apr

[smart

solutions]

streamlining your business through technology

bulk up!

5 tips to expand your email list with quality leads.

your listings. The incentive to subscribe is free content, such as 5 Tips to Sell Your Home Faster, 5 Tips Every Buyer Needs to Know or 5 Trends in Bathroom Remodeling. Social media marketing came in with a bang—bringing Dave Charest, Constant Contact senior manager of content with it beguiling emojis, visually entertaining stickers, and social media marketing, agrees fully. “You have to offer instant dialogs and instant customer engagement. For a fleet- an incentive that someone is willing to exchange their email ing moment, many marketing experts predicted that social address for.” media would replace email marketing. The stats support Charest. In Yahoo’s 2014 report, The Statistics proved otherwise, with marketing gurus left Balancing Act: Getting Personalization Right, 78 percent of scratching their heads in disbelief. consumers appreciate an offer to receive emails with personIt turns out that email marketing remains the strongest alized content. online medium to connect with new and existing clients. That means you need the subscriber’s name, email address Simply put, email provides analytic tools that social media and desired content. To achieve the latter, add clickable can’t deliver, making it easier to track an email’s success, boxes to your pop-up that lists content topics. Then divide identify what’s working or not working and then adapt your subscribers into segments, making sure that each segment email marketing efforts accordingly. receives what they want. Consider dividing your subscribers “People are engaging with emails, particularly millennials, into buyer, seller or homeowner segments. but they’re getting selective about who they invite into their Travis Waller, CRS, with Friedberg Properties & Associates inbox,” says Tom Tate, product marketing manager with in Englewood Cliffs, New Jersey, recommends that content AWeber, an email marketing software company. “To expand steer clear of hardcore self-promotion and instead go for your contact list with loyal customers, you have to put the “soft marketing.” right offer in front of the right person. Marketers call these “You have to prove to readers that you’re a valuable inforincentives, or lead magnets.” mation resource and not just a salesperson,” he says. “Do Those “magnets” don’t need to be 40-page e-books, expenthis and you create a strong incentive to subscribe—and sive giveaways or even original downloads, Tate adds. A brief stay subscribed.” how-to guide or shared article (as long as the original source gets credit) will work fine. Talk of the Town BY THE NUMBER S Here are 5 tips to build your email subscriber Sebastian Frey, CRS, broker/owner, list. Realty World Virtuoso, emphasizes Email is the fact that valuable content can also lean Pop the Question toward geographic location. In Frey’s case, he more effective at acquirTate recommends a sign-up form serves the greater Santa Cruz area and nearby ing new customers than programmed to automatically pop counties of Santa Clara and Monterey, and Facebook or Twitter. up on your most popular website pages, such as Source: McKinsey & Company he lives in Aptos, California, a beach town By Donna Shryer

2› 40 times

1› Mar Apr

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4›

that rests on Monterey Bay. “Folks living in or Partner Up BY THE NUMBER S visiting Aptos rarely care about what’s going on Another way to expand your email in real estate—unless they’re ready to buy or base is by partnering with local sell. But everyone is always interested in what’s businesses. “Say there’s a community business happening around the block.” with an established email newsletter. Offer to of U.S. adults prefer So Frey created the Aptos Community News write content for this newsletter,” Charest says. “I’d communicating with (aptoscommunitynews.org), a website that’s stay away from dedicated real estate and go with companies they do busi90 percent town doings and 10 percent real something like how to create the perfect guest ness with via email. Source: MarketingSherpa estate updates. The site’s pop-up promises room, energy saving advice, seasonal content or subscribers ongoing content about “all the little something that ties into the newsletter’s sponsor.” things that make Aptos an incredible place to live and play.” Close your article with your contact information and It’s a strategy that has scored Frey a lot of subscribers who make sure there’s a direct link to your website where people are keenly interested in the area. And when they’re ready to can join your list and receive the incentives you offer in buy or sell, Frey is at the top of their minds. exchange for their email address.

3›

All Roads Lead to You

When you meet people during networking events, social gatherings, at the coffee shop or an open house, you have two choices. You could whip out the cell phone and collect contact information, but that could lead the conversation off topic and make you appear more interested in collecting contacts than being this person’s preferred REALTOR®. Or you can focus on the conversation at hand, offer to follow up with additional information and in exchange, all the potential client has to do is subscribe to your email list. Here’s how it works. Create a designated contact page on your website specifically for signing up. Make sure your business card, handouts and email signature include the URL to this page—something as simple as YOURCOMPANYNAME. com/signup. Your business Facebook page and professional Twitter profile should also have this link.

5›

Don’t Buy Your Way In

Lastly, here’s an anti-tip. “Resist the urge to go down the purchased list road,” Charest says. “Those lists are often outdated, which can hurt your reputation more than help it.” Charest compares purchased lists to cold calling. “You may hit a home run, but more often, when someone doesn’t recognize the email sender, that email is immediately deleted, or it may be opened, but only to officially unsubscribe from further emails, or to be tagged as junk or spam.” Want more At the end of the day, that’s the ideas on how best and fastest way to deplete your to grow your list? Search 25 email subscriber list. Simple Ways to Grow Your Email List at blog. hubspot.com.

Donna Shryer is a freelance writer based in Chicago.

GADGET INSPECTOR

GOOGLE’S PIXEL CAN TAKE YOUR BEST SHOT

Pixel promises to offer the best of Google. Designed and engineered by the tech giant, it’s a smartphone that any Android user will love. It offers the highest-rated smartphone camera, unlimited storage for photos and videos, and a battery that lasts all day and charges in an instant. Plus, it has all your favorite Google apps built-in, including Google Assistant to help with any daily tasks. For more information, visit madeby.google.com/phone. Starting at: $649.

CIRCLE LETS YOU TAKE CONTROL

Circle lets you take back family time by taking control of all your family’s devices. Paired wirelessly with your Wi-Fi, each family member has a unique profile on the Circle app. You can set daily time limits for platforms or total internet use. You can set a BedTime so devices will disconnect automatically. You can set ageappropriate filter levels. You can even pause the internet. It also allows you to track where kids spend time online and for how long. For more information, visit meetcircle.com. Price: $84

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MAKE A STATEMENT WITH LENOVO YOGA 910

The Yoga 910 hybrid laptop was designed to be functional and flexible. Its compact size and watchband hinge allow you to use the 13.9-inch, 4K, high-definition touchscreen as a laptop, then bend it into a tablet. And its all-day battery life allows you to go all day without stopping to recharge. For more information, visit shop.lenovo.com. Price: $1,179.99

The Council of Residential Specialists

crs.com

Mar Apr

[inside track]

what’s trending in real estate

reality CHECK

Agents use advanced technology to give buyers a view into the future. By Megan Craig

Like most REALTORS®, Erinn Nobel, CRS, a broker with eXp Realty in Bellingham, Washington, attends classes, strategizes, conducts meetings and networks with fellow brokers. Unlike many REALTORS®, she does so as an avatar in a cloud office environment—a virtual campus that allows her to collaborate with others across the nation without leaving her home office. In the virtual campus, Nobel is able to communicate live, in real time, with other professionals and clients. Each person using the virtual space wears a headset or earbuds and has a microphone, and is represented in the virtual space by a virtual person known as an avatar. Nobel’s avatar interacts with the other avatars in the space, which offers casual meeting areas with beach chairs for the avatars, meeting pods for private

Mar Apr

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communication, group meeting areas, an auditorium for largescale meetings and private offices for various uses. It’s a computer representation of a space that could exist in real life, with virtual representations of the people who would use the space in real life. “I want to be on the forefront of technology,” says Nobel, explaining why she left a more traditional bricks-and-mortar brokerage office after 16 years. In addition to conducting client meetings in her virtual office, she meets with support staff for transaction

management, agent support, tech support, broker support and more, all within the virtual campus. Nobel is one of several agents across the country turning to virtual reality to advance her real estate business, both by using a virtual office space and by using 3-D camera technology to showcase her listings. Through these virtual tours, potential buyers can better understand floor plans, lighting, colors and possible furniture layouts without having to tour a home in person, which saves time for both the buyer and the agent.

Erinn Nobel, CRS, conducts business with the use of an avatar in a virtual office space. The space was created in collaboration with VirBela (virbela.com).

How VR Helps Sell More than Homes

The technology is available to those who Jim Paulson, CRS, an owner/broker can afford it—for now, with Progressive Realty Corporamostly REALTORS® tion in Boise, Idaho, discovered who sell high-end, the possibilities of virtual reality high-dollar properwhen he tested VR goggles at ties and have large a trade show during a National sales and marketing Association of REALTORS® meetbudgets. But some ing in 2014. agents, like Paulson, “When I saw how incredible are adding VR to their it was to virtually walk through marketing priority Showcasing 3-D listings, using a service like Matterport (shown), saves time for REALTORS® and buyers. a home while sitting on a bar lists despite the high stool—without your feet even price tag. touching the floor—I knew this For Paulson, the was something I had to incortechnology is “a porate into my marketing plans,” game-changer.” He Although the use of virtual reality for REALTORS® is a relatively new idea, Erinn Paulson says. started by buying a Nobel, CRS, a broker in Bellingham, Washington, sees it becoming a huge part of Now, he uses VR in several Samsung smartphone the profession in the next several years. aspects of his business. He offers and complementary “I think VR will become an essential tool to reach a broad audience of buyers 360-degree virtual tours on YouSamsung Gear VR across the globe,” she says. “VR will also become an essential tool for brokers Tube, his blog and his websites. goggles (the goggles and agents to work and collaborate together without ever leaving the home office.” He takes still shots of the homes’ are available for about Jim Paulson, CRS, a broker in Boise, Idaho, already uses the technology in his interiors via the virtual tours by $99), then found a agency, but thinks it will be a while before high-end VR goggles hit mainstream choosing the exact position he local company that status. In the meantime, he thinks more real estate offices and builders will wants to capture, then taking a used a camera made begin to have the equipment ready for potential customers to use in their offices. screenshot. (The images are so by industry-leading “Wouldn’t you rather do a virtual walk-through with a builder than just have high in quality that he uses them VR equipment-maker them sit in front of you with a set of blueprints explaining what the house ‘should’ on yard signs, flyers and in the Matterport. look like?” Paulson says. MLS.) Paulson is even able to create Matterport was the As VR headsets become cheaper, the business will likewise adapt to evolving a custom walk-through, setting the company that had technology, says Matt Bell, co-founder of VR camera-maker Matterport. path so the potential buyer doesn’t given Paulson his That means all major property portals will have VR apps or other VR inteneed VR goggles, a keyboard or a first taste of VR at grations; buyers will use VR to visualize how they would furnish a space they’re mouse to tour the home. the trade show. The looking to purchase; and even buyers will use VR to make their actual, final But it’s not just the homes company’s equipment purchase decisions. Paulson is selling with his new allows for total space “I think we’ll start to see much more of what we’re already seeing,” Bell says. technology—it’s his services. The reconstruction, says interactive tours “demonstrate how Matt Bell, Matterport’s much further I am going than my co-founder. competitors,” he says. Major property portals, like Thanks to a price incentive at the “During a listing presentation, I realestate.com in Australia, are NAR trade show this year, Paulpull out my VR goggles with one of building in VR property portals son now is the proud owner of a my tours and have them visualize that allow people to browse thouMatterport VR camera (available what I do firsthand,” he says. “Listsands of properties in virtual reality, for $4,500), allowing him to create ing competition over!” and others, like apartments.com, his own setup “so I could push the link to the VR versions of spaces limits without having to pull my Making VR a Reality from their mobile websites. competition along,” he says. for All REALTORS® And for those who don’t use VR Especially in areas with many goggles yet, 3-D spaces that allow Megan Craig is a freelance writer based in out-of-town buyers, virtual listings “a good amount of immersion” can Chicago. can mean the difference between be navigated via laptop, tablet or Look for our new webinar about how you can use VR and 3-D Matterport technology selling a house and sitting on an phone using Matterport’s web in your business, happening May 9. unsold property for months. viewer, Bell says.

LOOKING TO THE FUTURE

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[window of opportunity]

strategies to grow your business

INTENT TO rent

Real estate smarts provide a good start for what you need to know to become a landlord, but there’s much more to learn to become successful. By Michael Chazin

Renting has become very popular, often because renters can’t afford to purchase a home, want the flexibility of easily changing locations or don’t want to deal with maintenance issues. This trend has driven up rents in most housing markets. Is it time for you to leverage your knowledge about real estate and become a landlord to supplement your income? Before deciding, here’s what you need to consider. Everyone believes the major advantage of being a landlord is improved cash flow. “That’s partially right,” says George S. Wonica, CRS, associate broker at Wonica REALTORS® & Appraisers, Inc., Staten Island, New York. “But it is also about your net worth at the end of the term.” Wonica bought his first rental property at age 19. Now, more than 20 years later, he owns buildings free and clear, which

IT’S A MANAGER’S WORLD

Landlords hire a property manager when they don’t have the skills to manage a property or don’t want to be bothered, says Marc Goldin, CRS, The Goldin Group, Atlanta. When something needs to be done on one of his rental properties, he says, tenants don’t call him, they call the property management company. At first, REALTORS® need to get an education. “Even if you want to do it on your own, hire a property manager to begin with,” says Goldin. Watch what they do for a year or two, he says, until you feel comfortable taking over the function.

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supplements his income and takes pressure off his real estate sales performance. Becoming a landlord and gaining the benefit of a supplemental income is probably easier than ever. “When I started as a landlord years ago, I had a 35 mm camera, a legal pad and a pen for taking notes,” says Greg Glosson, managing broker, Fast Track Realty, Memphis. Today, agents can take an iPad into a listing, video the entire property and have all that information at their fingertips.

Landlord Challenges

Keeping track of all the moving pieces is one challenge every landlord faces. To start, REALTORS® should take an inventory of their strengths and weaknesses prior to purchasing a property, Glosson says. He suggests an honest conversation about who will handle maintenance—is it something you can do yourself? Will you screen tenants on your own or have someone do it for you? Next, establish a network of people to call upon for support and advice. Most REALTORS® probably have these relationships already, but they take on renewed importance once you become a landlord. “If you plan to finance purchases, you need a lender as part of your team,” Glosson says. You’ll also benefit from close relationships with a real estate attorney, insurance agent, CPA/tax advisor, as well as inspection professionals. The successful landlord has procedures for every step in the rental process. “It’s important

to have systems,” says Marc Goldin, CRS, The Goldin Group, Atlanta. Selling a residential property has fewer actions to worry about compared to renting out a property—you show it, write a contract, do an inspection and close. “Renting has more steps,” he adds. You have to screen tenants, worry about maintenance, contract for liability insurance, collect rents—and those are just a few of the required activities.

The Devil Is in the Details

With all the moving parts involved in successfully managing rental properties, landlords need to be detail-oriented. Drawing up a lease sounds simple and preprinted templates give the appearance of professionalism. “We put in lots of special stipulations to protect the parties involved,” Goldin says. “You can’t miss those details. “Being a great sales agent might give you a head start in understanding the basics, but it’s not enough,” Goldin says. Find the time to educate yourself when you start, and then keep on learning as you add more rental units. “Find a mentor who is experienced in property management,” he adds. “Take him or her to lunch.”

Can You Manage It?

A big issue is whether you will manage the property yourself or engage a property manager. Landlords can outsource many functions, says Ken Clark, president, VIA Group Realtors, Des Moines, Iowa. “We contract with companies to do credit reviews, eviction histories and even sex offender reports nationwide,” he says. A key decision is whether to outsource these management functions or perform all the activities on your own. Glosson has managed his own properties over the years and questions whether he would make the same choice again. “It’s time-consuming,” he says. “We probably would have had higher occupancy rates if we had engaged a property manager.” Goldin agrees that time investment is one of the biggest drawbacks to self-management. “Calls from tenants for normal maintenance, emergency calls and answering questions can take an inordinate amount of time,” he says. It can be frustrating to receive calls from someone who doesn’t have heat or whose toilet stops working, Wonica says. “Surround yourself with good tradespeople who you know can get out there when something happens.”

your landlordline

Check out these online resources before you take the plunge into property rentals:

1. 2. 3. 4. 5. 6.

Consumerism Commentary ❘ Earning a Living with Rental Properties: Should You Be a Landlord?

consumerismcommentary.com/earning-living-rental-properties-landlord

Bloomberg ❘ Landlord Nation: Boomers’ New Retirement Plan Is Millennials Paying Rent

bloomberg.com/news/articles/2016-08-04/ landlord-nation-boomers-new-retirement-plan-is-millennials-paying-rent

Trusted Choice—Independent Insurance Agents ❘ Landlord Liability Insurance for Tenant Injuries and Claims

trustedchoice.com/landlord-insurance/coverage-types/liability

U.S. Federal Trade Commission ❘ Using Consumer Reports: What Landlords Need to Know

ftc.gov/tips-advice/business-center/guidance/ using-consumer-reports-what-landlords-need-know

MrLandlord.com ❘ All The Keys to Your Landlording Success mrlandlord.com/7

Zillow ❘ Landlording 101: A Rental Management Guide zillow.com/rental-manager/resources/landlord-101

Risk Management

Liability might be the biggest hurdle. Knowing landlord-tenant law and being properly insured are both important, Goldin says. Are you properly insured in case something bad happens? Dave Rancourt, principal with Rancourt and Rancourt, Inc., Sarasota, Florida, and a member of the board of directors of the National Society of Accountants, strongly suggests that landlords treat management of their rental properties as a business. He suggests establishing an LLC to hold the property. “In case of liability, the LLC gets sued,” he says. “You don’t.”

On the Plus Side

Headaches aside, there can be a solid upside to being a landlord in the form of tax savings. Tax advantages accrue when you own rental property, Rancourt says. “Depreciation provides the means to deduct rental property costs over a specified recovery period expressed in years, which provides a major tax deduction,” he explains. Landlords can also write off expenses, including mortgage interest and taxes. The ultimate choice to become a landlord rests with the REALTOR®. “I don’t understand why more agents don’t invest in real estate,” Glosson says. “We are the market experts, we know what is available and we have the teams in place. As REALTORS®, we should invest in our communities.”

Want more information? Check out CRS 204–Buying and Selling Income Properties. There’s more than a dozen courses booked this year around the country.

Michael Chazin is a freelance writer based in Glenview, Illinois, who specializes in business topics.

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Coldwell Banker Vanguard Realty, Fleming Island, Florida

CLIFF BAKER, CRS

How and when did you get started in real estate? My grandmother and my mother were both successful real estate brokers and owned their own companies. They both loved the business and really enjoyed watching people realize their dream of homeownership. I wanted to follow in their footsteps. They used to say that the key to this business is always doing what is right for the people that you are working with in the transaction. Your mom was a CRS as well. Did she encourage you to join? Why did you pursue the CRS Designation? My mother always told me that the CRS Designation was like the master’s of real estate. She thought the education was top-notch, and she loved the professional marketing pieces. When I obtained my Designation, my mother even sent me her pin. I am very proud to have it today! What do you like the most about being a REALTOR®? I love the fact that I can help people reach their goals. Whether that means purchasing or selling their home, I just love the process and forming relationships with my customers.

Mar Apr

How do you tell clients about the CRS Designation? I explain to them that only 3 percent of REALTORS® have earned the CRS Designation, and that to earn it, a REALTOR® must meet certain educational and production requirements. Since I have invested my time and education into becoming a Certified Residential Specialist, I am uniquely qualified to assist you with your real estate needs.

What makes Fleming Island unique? Why do you like serving this area? The great thing about Fleming Island is that it is very family focused and has a smalltown feel. Most of my own family lives in Fleming Island, “ There are so many tips and and I have really enjoyed tricks I have learned in networking and getting to CRS training classes that I know the folks who live here. It’s a great area for raising a have incorporated into my family, and there are so many business. I enjoy learning fun things to do! What’s your home life like? What do you do when you’re not out buying and selling houses? I am married and have a beautiful daughter who is 5 years old. In my spare time, I really enjoy golfing and plugging in my guitar and making a lot of noise. This is the way that I like to destress!

What do you like about being a CRS? I think the education and the classes are invaluable. There are so many tips and tricks I have learned in CRS training classes that I have incorporated into my business. This year CRS is I enjoy learning from other spotlighting real agents about techniques estate agents who they have used to help them go above and be successful. Just last beyond in their month, we had a Mastermind community. How meeting here in Northeast do you give back? Florida to talk about best I have a giving back program practices and the business where the customer can choose in general. It was awesome! one of four local charities, and We had brokers from several after closing, I make a donation companies and high-producto the charity in their name. It ing agents attend. It was a has been a great way to give great forum to bounce ideas back to organizations in our and talk about various issues community that are important, that people are seeing in the such as an animal shelter and local marketplace. our local children’s hospital.

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from other agents about techniques they have used to help them be successful.”

What current trends are you seeing in the industry that you think buyers and sellers should know about? I think that the public believes that they can do all their shopping online, including real estate. But it is very important to know that nothing can replace the knowledge and service that we as REALTORS® bring to the table. Having a real estate consultant for buyers and sellers is invaluable and can help you navigate the sometimes tedious and overwhelming aspects of a real estate transaction.

You have a particularly active Facebook presence. Any advice for agents to beef up their pages? My advice for agents is to create your business page and get an advertising service to post interesting articles for you. Within my company, we have a service for which we pay a nominal fee, and they will post things on our business page to ensure that we continue having an active social media presence. Also, I would recommend continuing to stay in touch with your friends and past customers via Facebook. Strike up conversations with them about things that they post.

Cliff Baker, CRS, achieved his CRS Designation in 2016. He can be reached at 904-278-7000 or cliff@realestateworks. com.

Photo: Jensen Hande

[peer to peer]

profiles of people to watch

Cliff Baker, CRS, comes from a family tradition of real estate sales. The Miracle Real Estate Guide belonged to his grandmother, who was a successful real estate broker. Cliffâ&#x20AC;&#x2122;s mother was also a CRS, and she inspired Cliff to pursue the CRS Designation. In the photo, Cliff holds his motherâ&#x20AC;&#x2122;s CRS pin, which his mother sent to him when he obtained his CRS Designation.

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HIDING IN PLAIN SIGHT What happens when a home appears on the market but stays invisible to the MLS as a pocket listing? Controversy, for one thing.

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perfect

practice

[feature]

By David Tobenkin

Nothing seems to get REALTORS® heated these days quite like pocket listings. These properties, kept off the MLS and in an agent’s pocket, are both loved and loathed by CRSs. “I truly believe that it will take only one good lawsuit from a seller who learns that he or she may have gotten more dollars or better terms on the ‘open’ market to make selling agents who use this practice regret it,” says Janet Judd, CRS, a REALTOR® at the St. Louis-based RE/MAX Results office. Judd says she tries very hard not to engage in pocket sales. On the other hand: “I do have pocket listings, and believe they can be a great way to increase urgency,” counters Kathleen Novak, CRS, an agent at Howard Hanna Real Estate in Aurora, Ohio. “In a market like the one we are in now, with low inventory, it’s a valuable tool. Every house isn’t right for this marketing technique. But when I have a ‘special’ house (i.e., ideal neighborhood, price and condition), it has been a successful strategy.” Pocket sales are sales of properties through agent marketing strategies instead of or prior to listing them on the MLS. This keeps the property off the open market for at least a limited amount of time—for better or worse. The ways these properties can be marketed instead run the gamut: listings on the agent’s website or a broker’s website; other, non-MLS real estate listing sites; signs on the property; and informal communications between agents. Often they are identified as “Coming Soon” properties. While there do not appear to be reliable statistics on the practice, pocket sales generally flourish in hot markets where inventory is in short supply, a common condition in markets across the country. So why the fuss over them? Many agents argue that they should rarely, if ever, be used because they are not in the best interest of sellers. Properties omitted from the MLS could greatly reduce the pool of potential buyers and very likely the ultimate sales price.

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perfect practice

A Lack of Transparency

Some say the practice represents a step backwards for the residential real estate sales profession, from one embracing a level, transparent playing field where all information is shared among buyers and sellers through the MLS, to one in which side-deals are negotiated that work largely to the benefit of deal insiders. These insiders include agents at the same brokerage or agents working both sides of the same deal, while others are excluded. Judd says she has repeatedly encounBY THE NUMBER S tered situations in In 2014, an analysis of which buyers she MLSListings, Inc. data by represents will see a CoreLogic revealed that, pocket sale property in 4% of U.S. parcels, only and tell her, and the listing agent will duck her phone calls and emails. of house listings were “I work for a comavailable through MLS, pany that pushes them indicating high levels of at all costs, and I have for-sale-by-owner and pocket listing activity. very mixed feelings

66 Mar Apr

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“ Agents should always present the pocket listing option to a seller when listing their home, but like any other tool, the pros and the cons should be explained without judgment, steering or self-interest.” —Brian Sergi-Curfman, CRS

about them, as do my clients,” says Brian Sergi-Curfman, CRS, a Pittsburgh-based agent for Howard Hanna Real Estate. “Agents should always present the pocket listing option to a seller when listing their home, but like any other tool, the pros and the cons should be explained without judgment, steering or self-interest. Companies want to expand market share, and the most abused tool to gain market share is the pocket listing.” Agents who use them, including Sergi-Curfman, contend that there are some situations in which pocket sales do make sense. They can be a boon for buyers because they could

obtain a property without getting into a bidding war or a multipleoffer situation where they can lose the property, says Eric Lemke, CRS, a REALTOR® at HOME Real Estate in Lincoln, Nebraska. For sellers, there are situations where a pocket sale may still be in their interest even if it doesn’t fetch the highest price, Lemke says, such as when the agent believes that the seller has an asking price that is far too high, given that the property is unlikely to gain interest on the MLS even if placed there. Another situation is where the seller is buying another property under contingency and selling the

perfect practice

property quickly is of the essence, Lemke says. A seller’s desire for control is another reason for pocket sales. “One reason my seller clients choose the pocket sales option is because they desire to limit the practice of strangers walking through their property to only those actually ready, willing and able to buy,” says Cynthia Nash-Frye, CRS, a Libertyville, Illinois-based agent at @properties. “They also sometimes don’t want the world to know that their property is on the market, for health or personal reasons.”

Know the Law and Rules

Agents who do use pocket sales techniques will need to exercise care to comply with relevant legal and professional requirements. A 2014 article by National Association of REALTORS® General Counsel Katherine “Katie” Johnson (nar.realtor/articles/coming-soonis-it-in-the-seller-s-best-interest) identified some issues to consider before using pocket sales. “A broker’s decision to market a seller’s property as ‘coming soon’ must always be made based on the client’s informed determination of what best serves the client’s interests,” Johnson noted in the article. “Failing to act in the client’s best interest and failing to disclose the pros and cons of a limited marketing plan, such as ‘coming soon’ advertising, can violate state real estate license laws and regulations, MLS policies, and the REALTOR® Code of Ethics.” The first step is to see if state law imposes certain standards for the conduct of agents who are involved in such sales or otherwise limits them, particularly regarding disclosures to sellers and other documentation. Some states have expressly addressed the practice, such as the Colorado Department

MLS

[feature]

$ YOU OWE

OUT OF POCKET

Many state and local REALTOR® associations and MLS organizations are adding their own pocket sales guidelines, limitations and documentation requirements. “This has been such a hot topic that the California Association of REALTORS® lawyers put an MLS advisory into the listing contract so that the sellers know the importance of putting their listings on the MLS so that their property gets the most exposure and therefore the opportunity for the most offers,” says Retta Treanor, CRS, a broker/owner at Hayfork, California-based Big Valley Properties. “Our MLS (Spokane Association of REALTORS®) has rules on listings being submitted to the MLS, and if you are not submitting to the MLS within one business day of signing a listing contract, you need to file a ‘Waiver of MLS Benefits’ form signed by the seller for the association to have on file,” notes Linda Knaggs, CRS, a Spokane, Washington-based agent at RE/MAX Inland Empire. “If this is not done, you are subject to fines.”

of Regulatory Agencies, Real Estate Division. According to Johnson, in 2014 the Department issued an opinion “clarifying that a licensee’s existing duty to ‘promote the interests of the seller or landlord with the utmost good faith, loyalty, and fidelity’ requires Colorado licensees to advise clients during the negotiation of the listing contract of the benefits or risks of limiting a property’s exposure through ‘coming soon’ advertising.” In addition, many state license laws impose certain duties on licensees that include duties of care, loyalty, good faith, and honest and fair dealing, Johnson notes. An unsatisfied seller could sue based upon alleged breach of one of these duties. Agents considering becoming involved in such sales will also want to check the rules of their state and local real estate boards and MLS organizations (see sidebar

above), and their own brokerages. It is essential that both agents—particularly the selling agent—convey the upsides and downsides presented by pocket sales to their clients so that the clients can make an informed decision as to whether they should participate in them. Lemke says he also tries to generate some competition for pocket sales properties through non-MLS marketing efforts, is careful to examine comps, and takes other steps to try to make sure that use of a pocket sale does not result in a large reduction in sales price over its MLS potential. David Tobenkin is a freelance journalist in the greater Washington, D.C. area. Listen to a California Association of REALTORS® podcast on pocket listings at nar.realtor/podcasts/ legal-podcast-pocket-listings.

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trade

winds

[feature]

By Daniel Rome Levine

Research has shown that professionally staged homes tend to sell faster and at higher prices than homes that are not staged. Faux furniture is a great alternative to real furniture because it can substantially reduce the cost of staging a home for sale.

Easier to move and less expensive than a sofa or a bed, fake or faux furniture is popping up in showings around the country. Here’s the real story behind why some swear by it and others shudder at the thought of it. Delivering furniture to a house she was preparing for a showing one morning, Kim Day Shacklock, CRS, a broker with Parks Realty, couldn’t believe her bad luck when she got into an accident and had to pull off to the side of the highway. A photographer would be arriving at the house in Nashville in mere hours and three of the bedrooms were empty. Luckily for Shacklock, she was staging the bedrooms and a few other rooms with faux furniture, pieces that look real, but are not. Standing on the shoulder of the busy interstate, Shacklock merely moved the inflatable beds, collapsible side tables and other items from the trunk of her car to her assistant’s car, and off they went. The staging was set up in time and the photo shoot went off without a hitch.

“Faux furniture is amazing,” Shacklock says, who uses it in certain rooms in every house she stages. “It is light and easy to use and really cuts down on cost. People have no idea that the items are not real.” Across the country, many REALTORS® are realizing the benefits of furnishing homes for sale with lightweight, collapsible furniture made of materials such as cardboard, corrugated plastic and wood veneer. Items can be accented and dressed up with slipcovers and bedspreads so it’s hard to tell the fake from the real thing. Those who use it say you get the same benefits of professional staging—people can better visualize what a room will look like rather than simply staring at an empty space—at a fraction of the cost. Furthermore, since the items are light and collapsible, storage, transport and setup are a breeze.

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[feature]

suite and dandy

Dandy Pack offers reusable, flat-pack furniture made of cardboard that is set up and then covered with slipcovers. The lightweight material is easy to assemble and transport, it looks like realistic furniture, and it makes home staging more convenient. Items available from Dandy Pack include bedroom furniture, living room furniture, shelving, slipcovers and accessories. While the furniture is not intended for everyday use, people are able to sit on it without it collapsing. Dandy Pack founder Karen Nielsen says. “If somebody sits on it, they’re not going anywhere.” She says that the furniture has passed lab crush tests and supports 1,000 pounds.

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trade winds

[feature]

Furniture that Frees the Mind

used to help her out, came up with the concept, telling her one day, “I Starting when he was 9 years old, don’t want to be a furniture mover Douglas Pinter used to drive his the rest of my life. I’m going to parents crazy when he’d move all figure out a way that you can stage the furniture around in his beda house yourself.” room every couple of weeks. “I saw Nielsen points to the key role an unlimited combination of ways photos play in online home the room could be arranged,” he searches and says her faux pieces recalls. “All they saw was that I was “ Faux furniture is amazing. will make any property stand out ruining their wood floors.” for a fraction of the cost of staging It is light and easy to use As an adult, Pinter, who calls with real furniture. “I am getting and really cuts down on himself a “serial entrepreneur,” has calls daily from people, such as found the perfect outlet for his builders and flippers, who love cost. People have no idea furniture-arranging obsession, and it that the items are not real.” our concept,” Nielsen says. “With doesn’t even damage floors. In 2012, traditional staging, you’re paying —Kim Day Shacklock much more for something that he launched inFormed Space, a line of collapsible staging furniture made really doesn’t look that much difof hard, lightweight, recyclable plastic. ferent.” Dandy Pack’s prices range from $133 for an ottoman Besides being more cost-effective and easier to handle than to $1,031 for a queen bed, sofa, ottoman “starter kit.” regular furniture, Pinter says its simple, all-white, minimalist design is more effective. “It frees people psychologically to Can’t Fake It easily imagine how their pieces would look in the space,” he But, similar to the controversy around virtual staging, not says. “In conventional staging, people are being shown a par- everyone feels these faux furniture pieces really compare to ticular lifestyle, and invariably some don’t like the furniture the real deal. and design choices. They also start doubting if their own Shell Brodnax, CEO of the trade association representing furniture would look as good there. Our items don’t evoke professional home stagers, believes homes look better those concerns.” when they are staged with real furniture. “You really want a InFormed Space’s furniture is also versatile. Flat pieces finished look to give clients the best possible return on their of the rigid, white plastic are brought into a property in investment,” she says. Traditional staging of a vacant home rolling laundry bins—it takes two to furnish a typical of approximately 3,000 square feet ranges from $3,300 to three-bedroom Manhattan apartment—and they are then $6,000 per month, says Brodnax. unfolded and clicked together with hidden magnets. Pieces Mike Hughes, CRS, of the Mike Hughes Team, Hughes can easily be added to others to create a range of furniture. Residential, in Boston agrees. Last October, Hughes hired “I can configure virtually any need by combining pieces,” says a staging company to show a high-end, new-construction Pinter. “A loveseat can be turned into a three-seater sofa or a townhome that was listing for more than $1 million. The media center into a dresser.” stager used regular furniture to fill most of the home, but Pinter charges about $2,000 to stage a typical Manhattan decided to go faux with the beds and used inflatable ones. apartment for two months. He says traditional staging for One day, the builder brought an investor through one of the the same space would cost as much as $10,000 a month. properties without telling Hughes, and the beds were all leaking air and collapsing. “What in the hell is this!” fumed Go Light the builder later to Hughes. “This is not professional. We’re Karen Nielsen heads a faux furniture company, Dandy Pack, paying $8,000 for staging and the furniture is garbage.” out of her home in Sioux Falls, South Dakota. Dandy Pack’s “Our intention,” Hughes says, “was to have this high-end furniture is made out of lightweight, foldable sheets of cardtownhouse pop by having nice-looking furniture and we totally board that can be turned into cubes, stacked together and dropped the ball on draped with slipcovers to create realistic looking sofas, beds that. If I did it over To view a video of the faux furniture setup process, go to and other pieces. Even though it is not intended for everyday again, I would insist dandypack.com and click on use, people can sit on it without it breaking or collapsing. the stager only use the Gallery tab. Or visit vimeo. com/110905750#t=0s to As a former stager for five years who suffered several regular furniture.” see a video produced by The injuries hauling heavy furniture around houses, Nielsen Wall Street Journal showing how inFormed Space sets up appreciates the ease with which her faux furniture can be Daniel Rome Levine is a freelance faux furniture. transported and set up. In fact, her husband, Kevin, who writer based in Chicago.

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In 2009, when Bruce Ailion, CRS, with RE/MAX Town and Country in Atlanta, was doing a lot of REO work, he fielded a call from a businessman in Israel who saw one of his ads online. Ailion sold him 10 foreclosed properties that the businessman could turn into rentals and eventually sell for a profit. And that was just the beginning of this business relationship— and the beginning of Ailion’s work with international clients, which he says today accounts for more than half of his business. The investor had friends in Israel who also wanted to buy investment properties, and a business partnership was born.

Mar Apr

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“At the bottom of the housing market, we purchased about 150 homes,” Ailion says. In addition to earning a commission for the initial sale, he manages the rentals and gets a share of the profit when the properties sell. Ailion has also worked with Canadian and Australian investors and is now looking to sell more upscale homes to Chinese buyers who want to send their children to one of Atlanta’s many colleges. Working with foreign buyers isn’t much more complex than working with domestic clients, but CRSs who want to make international clients

super

marketing

[feature]

BY THE NUMBER S Foreign buyers purchased

214,885 residential properties

from April 2015â&#x20AC;&#x201C;March 2016, a 3 percent increase from the previous 12-month period. Source: 2016 Profile of International Activity in U.S. Residential Real Estate, National Association of REALTORSÂŽ

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super marketing

[feature]

5 TIPS FOR ATTRACTING AND WORKING WITH INTERNATIONAL CLIENTS Attend an international trade show to meet potential buyers and in-country agents with whom you could partner. Plan on making multiple trips to a country in which you want to make inroads. This will show potential investors and overseas agent partners that you are serious about working with them. Understand each international client’s objective so you can best serve them. Are they looking for investment returns? What level? Do they want a home for a child’s U.S. education? Do they just want to park their money in a relatively safe investment in the United States? When an international client sells a U.S. property, the Foreign Investment in Real Property Tax Act will come into play, and the IRS may hold or take a portion of the profits. Develop a basic understanding of this law so you can explain it to your clients. If you are focusing on international vacation homebuyers, understand that there is often a long time between initial interest and purchase. These buyers will want to see the U.S. property first, and family obligations (school schedules) may dictate when they can travel and then make the purchase.

Mar Apr

t have that ability of file sharing, I probably wouldn t be selling to international buyers, since most of the time they will complete a transaction without being here.” —Michael Bondi, CRS more than an occasional piece of their client portfolio will need to commit some time and resources. In addition, it helps to offer services that foreign buyers will find particularly helpful.

Marketing to International Clients

If you work in an international destination, foreign buyers might well find you if you are advertising in the right places. Michael Bondi, CRS, with Urban Nest Realty in Las Vegas, advertises and syndicates every listing on almost 100 different websites. He also has over 50 reviews on Zillow, where many international buyers start their search. Kijner & Sons International Realty, which has offices and team members in Florida (Miami and Sarasota), New York City, Bangkok, Thailand and France (Paris and the French Riviera), has tailored websites in each country’s local language. KSI Realty also uses search tools that translate listings in 13 different languages to cater to their real estate investor clients who span the globe. Laura Kijner, who runs the company with her brother Marc and father Daniel, CRS, also uses social media to attract buyers. “We get inquiries from listings I post on Instagram, Facebook and Twitter, to cite a few,” Kijner says. She and her brother also maintain two blogs, which help improve their websites’ search engine optimization, and cover subjects ranging from company events to real estate tips to the current state of the real estate markets where they work. Many international clients will buy property sight unseen, so becoming adept with video is key—though it doesn’t need to be fancy. “They prefer your herky-jerky video over a professional one because it’s real,” Ailion says. Bondi also makes a lot of videos for his international clients. “I’ll start a Dropbox folder for them, and I’ll shoot and edit video so they can see what they’re buying. That’s made a huge

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difference in how I do business. If I didn’t have that ability of file sharing, I probably wouldn’t be selling to international buyers, since most of the time they will complete a transaction without being here. So they rely on me to give them as much information as possible.”

Forming Relationships at Property Shows

Attending international property shows is another good way to build an international client base. There, REALTORS® can not only meet potential clients, but also overseas agents with whom they can partner. Garrett Kenny, a developer of vacation properties in Orlando, Florida, has attended international property shows for the past 20 years. At first his business was focused on buyers from the U.K. and Ireland, but since the 2008 housing crash, he has branched out to the rest of Europe, South America and China. KSI Realty has also attended and participated in property shows the world over, but for the last three years the company has focused on private, invitation-only events. “We try to do one to two events a year with our office staff and licensed partners—residential and commercial agents, attorneys, accountants and wealth managers,” Kijner says. “We make a presentation, talk about our markets and then we do one-onone consultations, as each project is unique.” Since 80 percent of Kenny’s buyers are from outside the United States, he partners with agents in other countries to help find leads. Four years ago he broke into the Chinese market by forming strong relationships with Chinese agents. “I don’t speak Chinese, and the buyer wants the comfort of working with someone in their own country who they can see and talk to,” Kenny says. He estimates that he gets about 65 percent of his buyers by working with in-country agents.

super marketing

prêt-à-portal

International portals are country-specific, consumer-facing real estate listing sites on which anyone can post a property. If a REALTOR® in Beverly Hills wants to market luxury listings to the growing ranks of wealthy Chinese, posting on a Chinese portal makes sense, right? In theory, but maybe not in practice. “We advertised on a site that syndicates our listings to 300 international portals, and that didn’t get anything,” says Bruce Ailion, CRS, with RE/MAX Town and Country in Atlanta. Ailion notes that RE/MAX and Realtor.com have international-facing sites, and he’s garnered more foreign buyer interest from posting on those sites, as well as Zillow.

[feature]

Garrett Kenny, CEO of Feltrim Group, a vacation property developer in Orlando, Florida, has also listed on international portals with limited success. “I don’t believe that in 20 years of doing this that I have generated any sales from placing an ad on a portal and somebody coming to me directly,” he says. “Where I have had some success is when I cooperate with an agent in the country, and we jointly put an ad up advertising our product. “The portals emphasize that they have 2 million people on their site, but you get lost in a big place,” Kenny continues. “You need to be able to cooperate with someone. What good is advertising on the portal in Brazil or China if you don’t speak the language?”

BY THE NUMBER S

22 % Finding Your Niche

15 %

International clients are often investors, so helping them manage their properties can be an additional income stream. That’s what both Ailion and Kenny do. For a small upfront fee, Ailion will help his international investors buy property, and then his company provides the rental management services. “Our pitch is that we are going to stay in this investment with you until its conclusion. When the property sells, we take a share of the profit. We don’t profit unless they do.” Many of Kenny’s clients use their vacation homes for a few months or weeks out of the year and the rest of the time they want to rent them to the year-round stream of Orlando tourists. Kenny’s company handles the rental process and property management. “We offer our clients a one-stop shop: We sell and we manage.” Kijner’s firm helps clients handle the niggling details before buying a property in the United States or abroad. “People don’t always understand that the purchase of the property is really

10%

the last step of the whole process,” she says. “Do you have a bank account? How do you wish to own the property (under your own name or as a company)? Are you looking to relocate to the country, or are you looking for an investment property generating income? Do you need a visa? We take care of all the aspects related to the purchase of a property from start to finish.” Ailion points out that some international buyers are simply looking for a safe place to put their money. Following Brexit and the decline in the pound, the United States real estate market could see an increasing number of foreign buyers looking for this. “Businesses and foreign real estate investors may choose to stay away from the United Kingdom,” concludes the National Association of REALTORS® 2016 Profile of International Activity in U.S. Residential Real Estate, “and the United States could become an attractive alternative.”

Feeling inspired to go international? Download the webinar recording Finding International Clients in Your Own Back Yard at crs.com.

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

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Source: 2016 Profile of International Activity in U.S. Residential Real Estate, National Association of REALTORS®

Although foreigners purchased property nationwide, five states accounted for 55 percent of total residential property purchases:

crs.com

Mar Apr

Turned Off Understanding what homebuyers do not want is as important as knowing what they do want. By Donna Shryer

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dwelling

points

[feature]

Identifying trends that sell homes faster is relatively easy. Magazines, websites and interior design showrooms offer small-to-tall details in full color. Homebuyer turnoffs are more complicated. Some undesirable attributes perennially cross geographic boundaries, some are yesterday’s “maybe” but today’s “no way,” and other sale blockers are market-specific. From a REALTOR®’s perspective, the best way to make sense of it all is to know your market, understand what can and cannot be cost-effectively remedied and recognize when it’s time to reflect turnoffs in a home’s price—with the final option hinging on serious scrutiny of comparables.

Unanimous Disapproval

Foul odors, flat out filth, serious clutter, extreme personal decorating choices and shabbiness, both inside and out, can be a sale’s “kiss of death” regardless of location, says Rose Steepleton, CRS, real estate agent with Noles-Frye Realty, Inc. in Alexandria, Louisiana. When sellers ask Steepleton whether it’s worth the investment to tackle these turnoffs, she has a ready reply. “I explain that they will rarely get dollar-for-dollar back, but certain fixes definitely help sell a home more quickly.” The fixes most likely to hasten a sale are among the least expensive. “These are cosmetic enhancements rather than structural or floor plan overhauls,” says Stacy Zigman, CRS, broker associate with RE/MAX Central Properties in the Long Island region of New York. Here are a few quick, economical, yet highly effective fixes:

ÄA Ä fresh coat of paint inside and out remedies shabbiness and extreme personal design choices, such as plumcolored walls or distinct wallpaper. ÄÄUncluttering creates a more spacious appearance. ÄA Ä professional floor-to-ceiling deep cleaning rids the home of filth and pet or tobacco odors. ÄÄNew hardware on kitchen cabinets and swapping out a laminate countertop with granite freshens up a highfunctioning yet older kitchen. ÄÄNew light fixtures brighten up rooms and often make them feel larger. On the topic of outdated kitchens and bathrooms, Jim Wilcox, CRS, principle broker at Columbia River Properties in The Dalles, Oregon, advises sellers to leave things as is. “You redo a bathroom or kitchen and it may be gorgeous, but it’s your taste—not the buyer’s taste. In that case, you have a slim chance of getting your money back.” What Wilcox does suggest is giving outdated rooms a neutral-colored coat of paint. “In my experience, sellers who invest $1,000 for painting get a return of around $1,500 plus a quicker sale. On the other hand, sellers who put $20,000 into a kitchen often lose money,” he adds. Poor curb appeal is also one of the least expensive fixes before listing, emphasizes Colleen Meyler, CRS, broker associate with ERA Central Realty Group in New Jersey. “I’m talking about a fresh coat of paint, at least on the front door, cutting back overgrown landscaping, mowing the lawn and hauling off dead plants and debris. The goal is a pleasant, tidy first impression,” Meyler adds.

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[feature]

dwelling points

Increasing Concerns

In addition to issues that perennially make every REALTOR®’s list of top homebuyer turnoffs, a few new undesirable home features have recently joined the no-go list.

Wall-to-wall carpeting has gone from “we can live with it for a while” to “let’s keep looking!” Across generations, today’s homebuyers want hardwood floors. To minimize “rug burn,” sellers should at least professionally clean the carpeting to remove stains and pet odors. However, if carpeting covers hardwood floors, Steepleton has advised sellers to remove the carpet and refinish the wood. For seriously motivated sellers, Steepleton has suggested that hardwood flooring at least be installed in the main living area.

Popcorn acoustic ceilings— popular in the ’60s—are today a dreaded deal breaker. “I’ve had buyers see a popcorn ceiling and walk right out,” Steepleton says. “It really ages the home, and everyone knows how labor-intensive, messy and costly it is to remove these ceilings.” To homeowners facing this prickly problem, Steepleton recommends replacing the popcorn ceiling if they want top dollar. “When I can’t convince them to do that, I suggest offering home shoppers an allowance to have the work done. Even with an allowance, though, a lot of buyers just don’t want to deal with it.”

KNOW YOUR NUMBERS

For cosmetic enhancements that can dilute potentially negative first impressions and ultimately speed up a home’s sale, REALTORS® need to know the average costs for things like painting, professional cleaning, refinishing wood floors, etc. Sellers will ask. If, however, you’re not sure about current price ranges, try Homewyse (homewyse.com), a vendor-neutral, comprehensive online reference for

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Wallpaper is an interesting trend in that it’s loved and loathed at once. “It’s definitely returning big time. However, it’s a very personal choice and I never recommend hanging wallpaper to freshen up a home for sale,” Meyler says. “In fact, if a seller has wallpaper, I recommend getting rid of it. I once had an appraiser take $10,000 off a home’s value because the entire first level, up the stairs and part of the second level were covered with wallpaper.” So while wallpaper, from traditional to contemporary geometric patterns, continues to gain attention, it’s apparently not something homebuyers care to inherit. Even if they’re planning to hang wallpaper, home shoppers see existing wall paper as one more expensive fix.

home repair, rehab and update projects. For example, click “Maintenance” in the menu bar, click “Carpet and Floor Care,” and click “Cost to Clean Carpet.” Now enter square feet to be cleaned, grade of desired cleaning products, labor type (from DIY to franchise cleaning company), effort (from light to sanitizing) and finally your ZIP code. The result is a service price range for your specific market.

dwelling points

[feature]

BY THE NUMBER S According to the National Association of REALTORS® 2015 Remodeling Impact Report, the home improvement project that promised the greatest return at sales time was roof replacement, with

105 %

of the value of the project recovered.

Sales Trend Upward

Having many small rooms is not desired. Conversely, an open floor plan, with the kitchen, dining room and family room flowing into one open space, remains a highly desired home feature. To dilute this distraction, Zigman gets creative. “If the rooms are generally smaller, I remove, relocate or rearrange furniture, so rooms appear more spacious. If there’s no true formal dining room but there’s an extra bedroom, I might turn that bedroom into a dining room. It helps buyers see a home’s potential and flexibility,” Zigman says. In addition, Zigman will ask the seller if they’ve ever considered making structural modifications to give their home a more open look. “Often sellers have looked into removing interior walls or expanding rooms at one time or another, but opted not to follow through with the projects. Knowing, for instance, which walls are load-bearing and which ones are non-structural can be useful information for potential homebuyers.”

Whether a home’s turnoff is fixable or not, there is a bright spot. Due to more millennials entering their prime homebuying years, rising household formation and continued job gains boosting overall demand, the National Association of REALTORS® forecasts 2017 sales of existing homes to finish at around 5.46 million—a 2 percent stronger finish than 2016. This trend is expected to continue with a more prominent jump of 4 percent in 2018 to 5.68 million. Further brightening the news, Trulia’s latest figures show the number of starter homes for sale has dropped by 10.7 percent. With more people looking to buy but fewer options to consider, Meyler suspects that this combo may reduce a turnoffs’ power to block a sale. “Sure, everyone would like to turn the key and move in, but let’s be realistic. With low inventory, buyers need more than ever to keep an open mind and see the home’s potential,” Meyler says. “Helping buyers do this is part of my job. From the minute we start walking up to a home’s front door, we’re already talking about what they can do. The discussion continues inside the home. Once I help a buyer see how a home can—in time—hit their every mark, we’re that much closer to a sale.”

Vertical houses, referring to multiple-story homes with one or two rooms per level and built on small lots, caught the attention of homebuyers and architects alike in the ’90s, but today these dwellings are losing their appeal—except for diehard city dwellers where the only option is to go up. In a study conducted by the National Association of Home Builders, which tracks the evolution of homebuyer preferences, high-density communities comprising vertical homes or multifamily/attached buildings make the top 10 most-unwanted list for millennials, Gen Xers and baby boomers. Wilcox reports that the trend did hit his smaller community, but is now a tough sell. “People don’t expect to live on a postage stamp lot and go through three layers to get from their garage to the bathroom. In my market, if this is what you want, then you probably also want to move to Portland—a much larger city.” While Wilcox admits there’s no fix for this trend’s downward spin, he does feel it’s important to help sellers understand that they’re likely looking at a lower asking price than they hoped for.

Donna Shryer is a freelance writer based in Chicago. Find shareable remodeling tips for your clients at CRS.com/ best-real-estate-agents/home-upgrades.

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Mar Apr

resources for learning & leisure

READY OR NOT,

here comes the future

While we’re fixing the engine in our old Dodge, the rest of the world is tweaking the cold-fusion engine on their new landspeeder. By Allan Fallow

Futurists must travel in fast circles. How else could Joi Ito, director of MIT’s Media Lab and co-author with Jeff Howe of Whiplash, assure us that, “We live in times where high-school students regularly use gene-editing WHIPLASH techniques to invent HOW TO SURVIVE OUR new life forms.” FASTER FUTURE That doesn’t by Joi Ito and describe any highJeff Howe schooler I know, but Grand Central Publishing it nicely spotlights 318 pages, $28.00 the main point in this catalogue of coming menaces and marvels: Our current ways of thinking, forged in an age of manufacturing and easy prosperity, may be of little use in a future where robotics, artificial intelligence and something called “synthetic biology”

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have ushered in widespread and from distributed networks, such as permanent unemployment. Think the internet. of it as post-labor America. The concept of the “hive mind” is That’s a startling prospect, so almost impossible to escape here, I wish Ito and Howe had done a but Ito and Howe put it to instructive better job of delivering some moral use: Whereas we once believed that judgments along the lines of, “Yes, an entire ant colony acted on orders but is that the future everyone from the queen, recently we’ve begun wants?” But “change doesn’t care to see that “the queen, metaphoriif you’re ready,” these two forward cally speaking, has no more agency thinkers proclaim. In that spirit, than her lowliest drone.” they have fashioned nine principles This extends to politics as well, designed to “bring our brains into whether it’s the near-miss of the the modern era.” Let’s examine the “Arab spring” or our own recent most promising ones: presidential campaign: “Neither “Emergence” trumps Bernie Sanders nor Donald Trump authority. Once upon a time, ‘led’ their respective movements so knowledge was produced much as surfed them,” the authors and disseminated in a very linear contend, “hoping and praying the way—think schools, churches or electorate’s collective id would evenpolitical parties—but according tually lead safely back to shore.” to Whiplash, that system is on its Pull beats push. Imagine way out. And what might replace being able to apply just-init? So-called “emergent systems,” in time inventory to human which authority, expertise and even resources: This would allow you to new forms of government emerge pull workers into a project—“using

just what’s needed, when it’s needed most”—rather than expecting decision-makers in a distant command center to push workers into spots where they may or may not serve best. In the real world, pull strategies have already yielded Safecast—a volunteer network that collected more accurate radiation readings than the Japanese government after the Fukushima disaster— and Tidbit, a web of computer users willing to exchange unused processing power for the luxury of viewing websites ad-free. Such instances of “crowdsourcing”—a term Howe coined in 2006, then wrote about at book length in 2008 —merit our attention: Pull strategies exploit the reduced cost of innovation that new methods of communication, prototyping, fund-raising and learning have made available. In the upside-down, bizarro universe created by the internet, the very assets on your balance sheet— from printing presses to lines of code—are now liabilities from the perspective of agility. Forget safety; embrace risk. These days, Howe and Ito would have us believe, it takes less time to prototype a product than it does to discuss it. It costs less to keep an idea or a blueprint secure than it does to “Let it go wander the world in the form of the bits that it is.” Taking chances in such an environment is more than essential to developing new lines of business; it can also be the secret to keeping a company—possibly even a national economy—afloat. Regrettably, the case study the authors choose to prove their point is shanzai, the guerrilla manufacturing process that has made Shenzhen, China, a boom city. How? By flouting international copyright and patent law, ignoring the most basic precepts of

intellectual property and churning out luxury knockoffs. (Can I interest anyone in a “Gucci” purse, perhaps? A “North Faith” jacket?) Whiplash tries to paint these pirating palaces as “agile innovation shops for all kinds of new ideas,” yet the authors fail to square that view with a sobering statistic cited in the same chapter: “If the global market for black-market goods were a country, its GDP would rank second in the world at $10 trillion.” Their blithe takeaway: “It pays to take risks.” Be defiant, not compliant. “Excellent disobedience for the benefit of society” sounds like something Bill and Ted snuck into their famous final term paper at San Dimas High, but Ito and Howe advance “disobedience over compliance” as one of their bedrock principles. And that makes unequivocal sense, when you consider that the workers likeliest to survive “the coming age of disruption” are those who maximize their creativity. The Whiplash authors extol “positive deviants” as people whose unorthodox behavior “improves their lives and has the potential to improve their communities if it’s adopted more widely.” Indeed, the Media Lab under Ito has seemed hell-bent on pushing the boundaries of “productive disobedience” as far as they will go: In July 2016, for example, the lab hosted a Forbidden Research symposium that explored everything from the technology required to place a fire truck on the MIT dome under cover of darkness (it’s been done) to “the personal and societal impact of robot sex.” Either one of those hacks, it strikes me, could give a person whiplash.

YO U M I G H T A L S O L I K E …

7L: THE SEVEN LEVELS OF COMMUNICATION by Michael J. Maher [BenBella Books] 192 pages $ 9.90/paperback One man’s journey of building a business that not only finds him success, but significance, too.

THE INDUSTRIES OF THE FUTURE by Alec Ross [Simon & Schuster] 320 pages $ 9.37/paperback What’s next? Ross examines the fields that will shape our economic future over the next decade. PROFIT FIRST by Mike Michalowicz [Portfolio] 224 pages $ 27.00/hardcover Michalowicz’s Profit First system provides four simple principles that make it easier to manage a profitable business.

FOOD FIGHT by McKay Jenkins [Avery] 336 pages $ 26.00/hardcover A comprehensive guide about the state of our food system and how consumers can make more informed choices about what to eat.

Allan Fallow is a magazine editor in Alexandria, Virginia. Follow him on Twitter @thefallow.

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Mar Apr

YO U R M E N TA L C H E C K U P

resources for learning & leisure

ADDRESS YOUR

stress

It can be extremely difficult to disconnect from work and enjoy your evenings, especially during your busy months. Fortunately, there are many ways to unwind, but you’ll see the best results if you commit to your choice of relaxation and make it a habit. Here are some simple approaches to help you get started:

Be Active and Social

Physical activity is one of the best stress reducers. Simply put: When your body feels better, so does your mind. Socializing—maintaining a sense of connectedness to others— is also an important component of stress reduction. Focusing on a fun activity will easily take your mind off work: ÄÄGo for a walk ÄÄExercise ÄÄCook dinner with family ÄÄCatch up with friends ÄÄPlay with your pet ÄÄPursue a hobby or your passion

Zone Out

Work stress and multitasking can create chaos in your mind. Taking time to zone out and do nothing is important for your mental well-being. It can increase your mindfulness, so over time, you can more easily let your mind settle down and recharge. ÄWatch Ä TV ÄÄMeditate ÄTake Ä a bath

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YO U M I G H T A L S O L I K E …

COLOR ME CALM: 100 COLORING TEMPLATES FOR MEDITATION AND RELAXATION (A ZEN COLORING BOOK) amazon.com

ÄÄ Listen to music ÄÄ Read ÄÄ Sit in silence

Change It Up

ÄÄChange your clothes—Get out of your work clothes and slip into something more comfortable. ÄÄChange your surroundings— Leave your workspace and don’t take work with you. ÄÄChange your availability—Turn off your work phone and email. These suggestions may be obvious, but often a simple change is all it takes to tell your mind that it’s time to disconnect and relax. Besides, how can you forget about work if you’re surrounded by reminders of it? You may be surprised that a simple change can have such a strong impact.

100 coloring templates allow you to channel your work stress into a creative outlet.

HERBIVORE BOTANICALS BATH SALTS herbivorebotanicals.com The perfect addition to a deep, relaxing soak in the tub.

Write It Down

Writing about your day may seem counterintuitive when you’re trying to disconnect from it, but scientific studies show that journaling can help relieve stress. Writing down the stressful events of the day helps you come to terms with them, thus reducing the impact of those stressors. Over time, this can greatly benefit your mental and physical health. It can also help to write out your plan of action for the next day so you don’t go over it in your head at night.

FEUILLE DE LAVANDE/ LAVENDER LEAF CANDLE diptyqueparis.com

Studies show lavender produces calming effects when inhaled.

inside

CRS

raising

news from the council

ARIZONA

Inspiring keynotes, insightful sessions highlight Sell-a-bration® 2017. By Lisa Tomcko

CRSs enjoy the WCR-CRS

Night Out, left, while Each year, Sell-a-bration® CRSs Margie Medlin, grows, and this year’s big Tricia Nekota, Jen Ward show in Phoenix welcomed a and Greg Waldhour get near-record number of attendees: in the spirit of Phoenix by dressing up as cacti Nearly 1,000 people packed the (above-right). Right, Jon Arizona Grand Resort & Spa Feb. 9–10 for the industry’s premier Meacham speaks on Sella-bration®’s opening day. education and networking event. This year’s theme, All About REAL Business, brought the focus squarely on tactics, strategies and takeaways that helped attendees foster and grow their businesses. Here are the highlights from Sell-a-bration® 2017.

Keynote Speakers

This year’s Sell-a-bration® was keynoted by Jon Meacham, presidential historian, Pulitzer Prize-winning author and contributing editor at TIME, and Brad Inman, founder and publisher of Inman News. Meacham kicked off the first day of the event with an address touching on the art of leadership.

He focused on a few important qualities: ÄÄLeaders are masters of culture. “You have to be where your people are so you’re part of their ambient reality.” ÄÄLeaders have courage and know the difference between when they’re being courageous in the face of adversity and when they’re being bullheaded and heading toward disaster. ÄÄLeaders must be humble enough to have the ability to admit a mistake, and to ask for help when they do make mistakes. ÄÄLeaders foster a sense of empathy and put the interests of many over the interests of themselves. While Meacham looked backwards at the lessons gleaned from history’s great leaders, Inman looked forward at the world CRSs will soon occupy. Inman discussed the importance of transaction compression and seller certainty. To illustrate the concept, he

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inside

CRS news from the council

Keynote Chats of Jen Burkamper, CRS, Karen At the CRS Talks keynote, Tim Hur, King, CRS, Gary Rogers, CRS, Brian CRS, drew a distinction between Teyssier, CRS, and Juan Ramón, diversity and inclusion. He likened CRS Spain, took turns answering diversity to inviting everyone you attendee questions. can think of to a party, but then The first question posed to the people confine themselves to group was this: What one thing groups with others like them. from your business can everyone “You can silo people into differimplement to generate a significant ent tables, and that’s not really the return on investment? point of diversity,” Hur said. Karen King said she knew she By contrast, he compared incluwouldn’t be doing much business sion to everyone at that party going after an EF3 tornado destroyed out on the dance floor and dancing 272 properties in her town in together. 2011. So, she turned her attention Hur concluded his talk by having to helping organize volunteers audience members unlock their through a local church. phone and pass it to the person on “Everyone’s willing to help, they their right. just don’t know how. They want to “How did that make you feel?” be asked,” King told the audience. he asked the crowd. “Uneasy? “So my motto was: ‘Consider yourExposed?” self asked.’” Her quick action led He compared this exerpeople to view her as a community cise to the transfer of trust leader, which has increased her and responsibility in a real business now that her town has estate relationship. recovered. “There’s a lot of trust Gary Rogers talked about his involved in real estate, most successful client event to and there’s a lot of trust date—renting out a movie theater involved in diversity and for the Rogue One: A Star Wars inclusion as well,” Hur said. Story premiere. Rogers explained “A lot of different cultures how he funds his client events. won’t give you that trust “I’ve always taken $100 from very easily.” every single transaction and put In the closing keynote it in a different checking account, hosted by CRS President because it’s so tough to dig into Leigh Brown, “How Does your pocket when the market is a CRS Do That?,” a panel slow,” he said. “And that’s when you Members of UCI pose for pictures at the step-and-repeat at of CRS experts composed should be spending the money.” Sell-a-bration® 2017. talked about ordering a razor his barber used while in the chair, and having it arrive at his home hours later courtesy of Amazon. Years ago, that hours-long process would have taken weeks. He also told attendees they don’t need to worry so much about the impact of technology on real estate, and instead embrace what their humanity brings to the transaction. Have technology take away the duties that are irrelevant to you so you can focus on offering your most valuable asset, your humanness, to clients, Inman said.

Emcees Mark Shepherd and Holli Woodward, both CRSs, welcome speakers on the main stage, including Brad Inman, and CRSs, Tim Hur, Karen King, Gary Rogers, Brian Teyssier, Jen Burkamper, Juan Ramon and 2017 CRS President Leigh Brown.

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The Star Wars event went viral, particularly a picture of Rogers’s 6-foot-5-inch son dressed as Darth Vader touching light sabers with a pint-sized counterpart who was also costumed as the villain. Rogers said he garnered 11 transactions from that boy’s family alone. When asked for one piece of advice to give attendees, Jen Burkamper responded with a simple but crucial pearl. “My mantra is: ‘Something is better than nothing, so don’t paralyze yourself. Just go ahead and do it.’”

Education Tracks and Sessions

This year’s event included nearly 30 educational sessions held in four concurrent tracks: Systems, Operations & Leadership, Marketing and Performance & Development. Systems track: Gee Dunsten, CRS, introduced a system of content marketing to become a celebrity in your market. Larry Kleinheksel, CRS, offered a 25-step system to success in real estate, and Connie Erickson, CRS, shared her system for winning the listing interview every time. Debbie Yost, CRS, hosted Systems 101. Orly Steinberg, CRS, talked about

establishing work-life balance, and Kimberly Cameron shared her systems for building referrals. Operations & Leadership track: Linda Craft, CRS, shared strategies to build a multimillion-dollar team, while Mike Parker, CRS, and his operations manager talked about running a long-lasting team, and Monica Neubauer, CRS, offered tips to start a team. Duane Duggan, CRS, talked about building a legacy, while Joe Bell offered tips for a smooth succession transition. Derek Seal, CRS, offered specific steps to becoming more charismatic. Marketing track: Alice Heiman taught agents how to generate leads on social media. Christel Silver, CRS, went over the nuts and bolts of international real estate. Kevin Tengan taught agents how to build cinematic videos. Chandra Hall, CRS, led a panel of experts discussing the secrets of their marketing success. Karen Mistrot, CRS, offered a deep look at effective farming strategies, and Mike Selvaggio, CRS, wrapped up the biggest marketing lessons from the entire event. Performance & Development track: Kendra Cooke provided attendees with a template to block schedule their days. Debbie Yost, CRS, led a panel of experts on shifting to becoming the CEO of your business. Nabil Captan and Mike Duncan, CRS,

WENDELL WONG AWARD

Sell-a-bration® 2017 closed with a ceremony bestowing the Wendell Wong Memorial Gift of Education on one lucky attendee, Beth Brockette. The gift covers registration and accommodation for Sell-a-bration® 2018, as well as free CRS webinars for the year. It was created in honor of Wendell Wong, a beloved CRS Designee who passed away in 2016. Hawaii CRS State Chair Tricia Nekota knew Wong well. “Wendell Wong had a heart of gold, and engraved on that heart were three letters: CRS,” Nekota says. “His love, passion and spirit for CRS were palpable.” Wong served on the Council’s national board, and Nekota said he was very involved and supportive of all CRS members he met. His namesake gift will be awarded annually at Sell-a-bration®— fitting, given Wong’s love for the event. “He never missed Sell-a-bration®,” Nekota said.

offered advice CRSs could use to help clients with their credit. Raegjean Christopher discussed the value a showing agent could bring to a team. Tim Burrell explored the art of real estate negotiating, and Rich Sands, CRS, taught attendees the pillars of Peak Performance. Missed this year’s Sell-a-bration®? Well, there’s always next year. Make plans now to attend Sell-a-bration® 2018, which promises to be even bigger and better. Next year’s conference will be held at the Gaylord Texan Resort & Convention Center in Dallas on Feb. 5 and 6. Register now and take advantage of early-bird specials.

CRSs OF THE YEAR Patti Weaver, CRS Alabama Joanna Fraser, CRS California Sandy Borman, CRS Colorado Bud Hannah, CRS The Dakotas

Susanna Madden, CRS Florida Phyllis Graham, CRS Georgia Joy Yonemura Oda, CRS Hawaii Jim Paulson, CRS Idaho

Chad Doyle, CRS Illinois Renae Forsyth-Christy, CRS Iowa Grace Masten, CRS Maryland/DC Jim Eisler, CRS Minnesota

Deb Griffin, CRS New Jersey/Delaware Charlotte Boyer, CRS New Mexico Darlene Sodano, CRS Northeast Region Sally Sparks, CRS Tennessee

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The Council of Residential Specialists

Matt Dulle, CRS Utah Dare Tulloch, CRS Virginia Virginia Carpenter, CRS Washington Eunice Beekman, CRS Wisconsin

crs.com

Mar Apr

learn

from the

BEST strategies from the industry’s top educators

BARKING UP

the wrong fee Questions about fees should be greeted with conversations, not quips. By Rich Sands

CRS INSTRUCTOR

Rich Sands has been a CRS Instructor for more than a decade and is head honcho of Rich Sands Seminars. Prior to that, he was the Director of Education for Coldwell Banker Residential Brokerage and a high school teacher. He has been a licensed real estate broker since 1992 and a CRS since 2005.

Mar Apr

Okay, I was bored. I admit it. I recently found a link to a real estate blog, and out of curiosity followed one of the threads: “My commission rates are not negotiable.” Within minutes, I was appalled. First, let’s get a couple of things out of the way: ÄThere Ä are no “set” or “normal” fees in the real estate business as per the Sherman Antitrust Act. ÄÄI believe in a fair fee for full services. ÄThe Ä key to obtaining a fair fee for your (or my) services is to show value. ÄÄSales is a relationship phenomenon. I was taught at a very young real estate age that while fees were negotiable, that didn’t necessarily mean my fee had to be negotiable. I am free to set my fee wherever I please. If I can show enough value, the sky is the limit. I don’t have a problem with that and it is not my point. The reason for my state of appalled-ness is some of the statements I read in the blog representing what an agent might actually say to a potential purchaser of their services. A potential client asks if your fee is negotiable and we say things like: “My fee is not negotiable,” or “Sure, I’ll take more.” And then, if they have the audacity to mention that another service provider would perform services for less, the reply is, “Well, some people know what they’re worth.” These are cute (and classic) real estate quips. But I wonder if anyone who actually says some of these things would ever get repeat or referral business (let alone get their butt kicked out the door).

The Residential Specialist trsmag.com

20 17

Let’s look at three reasons the quip may not be any salesperson’s best option. 1. These are real people on the other end of the conversation—in many cases, people who are struggling in today’s economy. If you’re a consumer, every penny counts. We’re scrimping. We’re trying to do our best to get by. We’re genuinely questioning whether the fee an agent charges is worth what we are getting. And we get a quip? And often it’s delivered with condescension, sarcasm or both. Empathy, the ability to understand life in someone else’s shoes, is a great sales tool. 2. Given the circumstances outlined above, the quip is disrespectful, rigid and clearly illustrates the agent is concerned only with their own world and not the world occupied by the consumer. A key step in sales is the interview—getting to know the potential client’s motivation and needs. Once known, the salesperson is better equipped to serve. 3. There is a better way. Sales is a relationship business and to practice the art of the quipster is to damage the relationship. Fee dialogues should be welcomed as an opportunity to validate value. The consumer’s question should be clarified and their motivation further explored. In the end, we may not cut our fee (it isn’t written anywhere that we have to). In the end, we may prevail by illustrating value commensurate with what we charge. In the end, we may not make the sale (or want it for that matter). Hopefully, we avoid being the quipster and instead engage in serious conversation with the consumer, maintaining the opportunity to develop a better relationship with them. Sales is about relationships. Save the quips for your next classroom role play (guaranteed you’ll get a laugh).

CRS

connect

YOUR CRS

network

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expand your network

Many years ago, Charlotte F. Hedge, CRS, a broker associate with the Hedge Team at Premier Sotheby’s International Realty in Sarasota, Florida, received a referral from a CRS in Massachusetts for a family relocating to Sarasota for a job. Hedge helped them purchase a home under construction. While they waited for its completion, they lived in a family home, which Hedge also listed and sold after the family moved into their new home. A few years passed and Karen’s parents moved to Sarasota, and Hedge was once again called on to find them a home, which she did. Fast-forward a decade, and Karen’s son asked if Hedge would help them buy a home, which she did. “I don’t think I’ll be active when the grandchildren are ready to buy, but the thought of having worked with four generations of satisfied home buyers and sellers is indeed gratifying to me,” Hedge says. “And it all began with one referral from a CRS Designee.” CONNECTION PERFECTION

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20 17

The Council of Residential Specialists

crs.com

Mar Apr

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expand your network CRS 103—Mastering Your Time to Achieve Your Goals April 4—Albany, Oregon [Oregon CRS/Salem Association of REALTORS®] 360-901-0307

Instructor: Robert Morris, 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 125—Zero to 60 Home Sales a Year (and Beyond) March 23—Nags Head, North Carolina [North Carolina CRS/Outer Banks Association of REALTORS®]

CRS 127—Succession Planning: Building, Valuing and Selling Your Business April 28—Santa Barbara, California [California CRS]

704-877-9063

Instructor: Mark Given, CRS

April 20—Virginia Beach, Virginia [Virginia CRS]

CRS 166—Certified Luxury Home Marketing Specialist Training, Part I March 23—Annapolis, Maryland [Keller Williams Select Realtor]

Instructor: James Nellis, CRS

April 28—Silverdale, Washington [Washington CRS] 360-901-0307

Instructor: Jackie Leavenworth, CRS

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Instructor: Kofi Nartey Continued on page 44 }

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20 17

The Council of Residential Specialists

crs.com

Mar Apr

CRS

connect

CRS CLASSROOM COURSES

expand your network April 5—Austin, Texas [The Hay Legal Group PLLC] 214-485-3000

Instructor: Tami Simms, CRS CRS 167—Certified Luxury Home Marketing Specialist Training, Part II March 24—Annapolis, Maryland [Keller Williams Select Realtor] 214-485-3000

Instructor: Kofi Nartey

April 5—Madison, Wisconsin [Wisconsin REALTORS® Association/ Wisconsin CRS] 608-241-2047

Instructor: Doug Richards, CRS CRS 205—Financing Solutions to Close the Deal April 26—Bryan, Texas [Texas CRS] 512-791-4240

April 6—Austin, Texas [The Hay Legal Group PLLC] 214-485-3000

Instructor: Tami Simms, CRS CRS 200—Business Planning & Marketing for the Residential Specialist April 6—Medford, Oregon [Oregon CRS/Rogue Valley Association of REALTORS®]

Instructor: Dale Carlton, CRS May 1—Atlanta, Georgia [Georgia Institute of Real Estate] 404-252-6768

Instructor: Pat Zaby

CRS 206—Technologies to Advance Your Business March 21—San Marcos, Texas [Texas CRS]

503-422-5812

512-791-4240

CRS 201—Listing Strategies for the Residential Specialist May 1—Olympia, Washington [Washington CRS/Thurston County REALTORS® Association]

March 27—Fayetteville, Georgia [Fayette County Board of REALTORS®/ Georgia CRS]

Instructor: Robert Morris, CRS

360-901-0307

Instructor: Jackie Leavenworth, CRS CRS 202—Effective Buyer Sales Strategies May 4—Anchorage, Alaska [Alaska CRS] Instructor: Jackie Leavenworth, CRS CRS 204—Buying and Selling Income Properties March 27—Charlotte, North Carolina [North Carolina CRS] 704-877-9063

Instructor: Chris Bird, CRS

770-461-2401

Instructor: Rich Sands, CRS CRS 210—Building an Exceptional Customer Service Referral Business March 22—Brentwood, Tennessee [Williamson County Association of REALTORS®] 615-771-6845

Instructor: Chandra Hall, CRS

907-244-6188

Mar Apr

Instructor: Mark Porter, CRS

The Residential Specialist trsmag.com

April 5—Sioux City, Iowa [Iowa CRS] 712-574-4600

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

20 17

PERSONALIZE, REPRODUCE AND MAIL THIS NEWSLETTER TO YOUR CLIENTS

EDIT

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

REPRODUCE

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

DISTRIBUTE

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

your *

home M A R /A P R 2 017

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

➊

➋

➌

➍

➎

sneezing’s

GREETINGS

For many Americans, spring equals allergies. Itchy and watery eyes, runny nose, congestion—it’s enough to make you want to skip the season altogether. But with these five steps from DIY Network, you can help reduce allergens in your home and find a brief respite. Remove clutter: Less stuff means fewer places for allergens to linger. Clean the air: A well-ventilated house is your first line of defense. Use HEPA filters in your air conditioning system, maintain the humidity at about 50 percent and keep your

➊ ➋

windows closed when pollen counts are highest in the early morning and between 10 a.m. and 3 p.m. Clean the bathroom: Mold tends to gather there. Reduce dust-generators: Fabrics and carpeting create dust by breaking down fibers. Swap carpets out for washable throw rugs. Make smart landscaping decisions: Avoid planting trees such as maple, birch and ash, which have allergenic particles that can trigger discomfort.

➌ ➍ ➎

EARLY BIRDS

Demand has pushed the spring selling season earlier, as buyers hope to beat the competition and secure a house early on. According to Realtor.com, the median age of property listings over the winter was four days fewer than last year. Despite the typical seasonal slowdown, inventory is picking up speed for this time of year. Median list price typically reaches its lowest point mid-winter as well, but it remained level at $250,000, indicating that buyers are remaining persistent. Buyers may also be reacting to mortgage rates, which rapidly climbed higher following the election, pushing buyers to secure a loan as soon as possible. This is also a sign of continuing low inventory, which is creating higher home prices and shorter turnarounds for sales. All signs point to this season shaping up to be a seller’s market.

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

EFER R

LS!

ER OV

EQUAL HOUSING

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

Tips and trends for homeowners, buyers and sellers

SPRING

things Ø

Spring is a great time to do a quick tune up of your home. Before things get busy for the summer, take a moment to make sure your home is humming along. Here’s a quick checklist of fixes to make now to save you time and money later.

SAY YES TO CRS

Interior

ÄCheck Ä seals around windows, doors and bathtubs ÄDrain Ä your water heater ÄCheck Ä and fix leaky faucets ÄReplace Ä your HVAC filters ÄClean Ä out your dryer vent ÄReplace Ä batteries in smoke detectors ÄMake Ä sure you have a working fire extinguisher ÄCheck Ä basement walls for moisture or mold ÄVacuum Ä refrigerator condenser coils

Exterior

ÄInspect Ä the roof ÄClean Ä the gutters ÄWash Ä window exteriors and check screens for repairs ÄCheck Ä driveway and walks for repairs ÄInspect Ä deck and patio for warped, molded or splintered boards ÄTrim Ä bushes and trees, or any vegetation near an air conditioning unit in particular ÄRemove Ä leaves and other debris from lawn ÄPatch Ä up your home’s paint job ÄLook Ä for cracks or weak spots along the lower section of the exterior

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.

This is home. It’s a place called comfort. It’s called home for a reason. It’s the place where your clients feel secure, happy, and at peace. We understand this. Through expertise and insight, our job is to help make the wonderful idea of home a beautiful reality. For every client, for every home.

pillartopost.com Each office independently owned and operated.

ask a

CRS advice from your peers

S TA G E S H O W S

I see no problem with it. I do not like having a vacant house photographed ... these photos go all over the world. Sets properties up for Craigslist scams.

Are you in favor of faux or virtual staging in lieu of actual staging?

I LIKE IT. BETTER THAN AN EMPTY ROOM.

With over 90 percent of buyers beginning —Karen Picarello, RE/MAX Fine Properties, their home search Scottsdale, Arizona online, staging is very important. It helps a One of the keys to selling a home today are the photos. They need to be accurate, buyer to visualize the not making the home look better or worse than it really is, but they still need space in the room and —Donna Redd Elder to be good photos. If the photos are too good, the buyers may be disappointed [has the added bonus] RE/MAX Creative Realty when they see the house. If the photos are bad, the buyers will pass on the house of not highlighting Lexington, Kentucky without seeing it. … I would not use virtual staging in my online photos because flaws (scuffs on the buyers are buying the house the way it is now, and not very many buyers have the hardwood floors, walls) funds to make the house what it can be immediately after they purchase it. The I prefer real staging so that that become extremely actual buyers see it, not just virtual staging could cause dissatisfaction with the home in a short period of obvious in an empty internet lookers. However, if time when the buyer realizes the cost necessary to make the home look like the real staging is not an option, space. Beyond the virtually staged home. The buyer needs to be happy with the house as it is now virtual staging can mitigate experience, there is the or how it can be with the funds they have to improve the house in the near future. the vacant home/potential safety of the general break-in issue. Agents should —Susan Kane Carr, Charles Rutenberg Realty, public being aware tell their sellers to check with Clearwater, Florida of a home’s vacant their insurance agents about vacant/unoccupied home status. … Staging is not insurance issues and whether available in all areas virtual staging is a benefit in and it can be cost that regard. prohibitive for some sellers. Virtual staging —Sher Hann, Coldwell Banker Residential Brokerage, —Nancy Stedman, Retriever Property Enterprises, removes that barrier. Westlake Village, California Tallahassee, Florida If you are going to use virtual staging, we I am a firm advocate of actually staging the home. Its web recommend including I am a firm advocate of actual staging as appeal drives traffic to the home, as well as creating buyer an 8-inch x 10-inch well. It can be false advertising to show trust. Many buyers walk into my staged listings and their photo framed in each photos that have been virtually retouched first comment is, “It looks just like the online photos— room of the home for as that’s NOT what it actually looks like. … WOW!” With virtual staging, the reaction would be “bait and the in-person showing. I think if sellers want to show a property switch,” leaving prospects with bad vibes about the agent Virtual is never as with furniture in it and want the positive and the listing. Where virtual staging can be effective is effective as walking results of bringing in stagers, the money when the online display shows the vacant home, but when into a home that feels needs to be spent to make it actually look the prospects arrive at the property, they find pictures in like a display, current like what the buyer can see, instead of trying color scheme, new and frames or on easels in key rooms with what the home could to spend no money and still try to get an look like furnished. It helps them imagine the scale of the fresh. It is better than rooms and the possibilities. “it looks like I spent money staging” look. no staging at all.

Too fake. Makes one wonder what else in the picture has been altered. We need to present true pictures, although the best possible, of the property as it is.

—Marty Merriam, Long & Foster Real Estate, Inc., Arlington, Virginia

—Jaci Woods, Seven Gables Real Estate, Irvine, California

For it—as long as it’s fully disclosed. —Brian Teyssier, RE/MAX Advanced REALTORS®, Pittsburgh, Pennsylvania

Mar Apr

The Residential Specialist trsmag.com

20 17

—Kimberly Cameron, RE/MAX Properties West, St. Louis, Missouri

Join the discussion by following us on Facebook or Twitter and joining our LinkedIn group.

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RADON Why it matters WHAT IS RADON? • Radon is a colorless, odorless and tasteless radioactive gas formed by the breakdown of uranium, a natural radioactive material found in soil, rock and groundwater. • Radon released from the ground can build up to hazardous levels inside a home.

WHY TEST FOR RADON? • Radon is the second leading cause of lung cancer after smoking, putting your clients’ health at risk. • Nearly 1 in 15 homes in the United States and Canada has an elevated radon level, even in areas with fairly low environmental radon.

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