The Residential Specialist, January/February 2018 by The Residential Specialist

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

jan + feb

2018

THE

SPECIALIST ALSO IN THIS

ISSUE

PATH TO

GREATNESS 2018 RRC President Gary Williams, CRS, is perfectly aligned to lead the Council to a prosperous future

CRS-034

Add a twist to your marketing Recognizing a real estate bubble How smart is that home?

Make the most of a FSBO Defending your fee to clients How to record a podcast

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

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888-539-9306 | hometeam.com/certifiedresidentialspecialist 888-539-9306 | hometeam.com/certifiedresidentialspecialist Each office is independently owned and operated. Each office is independently owned and operated. ©2017 The HomeTeam Inspection Service, Inc. All rights reserved. ©2017 The HomeTeam Inspection Service, Inc. All rights reserved. Franchise opportunities available: HomeTeamFranchise.com

contents

Jan 20 Feb 18 vol. 17, no. 1

features 22 MARKET WITH STYLE

Add a unique marketing twist to stand out, get noticed and win business. By Donna Shryer

ON THE COVER Gary Williams, CRS, photographed for The Residential Specialist by David Ellis

PATH TO GREATNESS

2018 President Gary Williams wants to grow the Council so it flourishes.

GET SMART

As smart technology enters the real estate scene, REALTORSÂŽ need knowledge to adequately assist buyers and sellers. By Megan Craig

BUBBLE OR NOTHING 26 Economists and real estate professionals ruminate on whether to invoke the dreaded B-word and how to react as a hot market continues. By David Tobenkin

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contents

Jan 20 Feb 18 vol. 17, no. 1

departments

4 VANTAGE POINT

By Gary Williams, CRS

5 ENTRY POINTS

Industry Headlines, Business Technology, Ideas & Trends 6 SMART SOLUTIONS: Sound Like a Winner

Create a podcast to broaden your audience and expand your business.

By Phil Malkinson

9 WINDOW OF OPPORTUNITY: Fight for Your Fee

5 ways to deal with a seller who wants you to cut your commission.

By Gayle Bennett

12 INSIDE TRACK: TTFN, FSBO

How you can find and convert for-sale-by-owner leads.

By Andrew Conner

15 COOL STUFF: Cozy Corner

Adding calming elements to an otherwise hectic life.

16 PEER TO PEER: Marie Presti, CRS

Of The Presti Group, Newton, Massachusetts

inside RRC

37 NEWS FROM THE COUNCIL Widely admired, a longtime volunteer becomes RRC president.

40 LEARN FROM THE BEST

34 WORK + LIFE

A CRS instructor explains how to mine your database to increase leads and sales.

Barking Up the Wrong Tree by Eric Barker

By Jackie Leavenworth

Reviewed by Allan Fallow

Documentaries to Devour Truth can be stranger than fiction. Check out these compelling documentaries.

41 RRC CONNECT

48 ASK A CRS

What is your opinion on having a home staged?

ON L I N E R E S O UR CE S VISIT THE ALL-NEW CRS.COM Check out all the great content at the redesigned CRS.com.

The RRC Podcast: Hear from experts about the latest real estate trends, tips for running your business and solutions to common problems facing agents today at our podcast. CRS.com/podcast

Tell Clients About Your Designation: The Council has an online resource center for consumers, with pages that can be shared with your clients. Our main article “Why Work With a Certified Residential Specialist?” has been shared hundreds of times by CRSs looking for a succinct way to tell clients why CRS is best. CRS.com/best-real-estate-agents

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

The ROI of Home Improvements Find out about current trends in home improvements, and which trends are no longer attractive to homebuyers. Check out recent data on the cost versus value of remodeling projects. The ROI of Homeownership The homeownership rate remains low. Are people still seeing the value in homeownership? Does the math still make sense? How does homeownership compare with renting?

EDITOR Michelle Huffman mhuffman@crs.com 800.462.8841 CONTRIBUTING WRITERS Gayle Bennett Andrew Conner Megan Craig Phil Malkinson Donna Shryer David Tobenkin 2018 BOARD OF DIRECTORS President Gary Williams, CRS President Elect Michael Burkhard, CRS First Vice President Richard Waystack, CRS Immediate Past President Leigh Brown, CRS Members Jen Ward, CRS Shawn Cunningham, CRS Steve Stewart, CRS Yolanda Lowe, CRS Vinnie Tracey, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny PUBLICATION MANAGEMENT www.glcdelivers.com

ADVERTISING MANAGER Chuck Gekas Director of Business Development, CRS 312.321.4443 cgekas@crs.com The Residential Specialist is published for Certified Residential Specialists, general members and Subscribers by the Residential Real Estate Council. 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 buying and selling residential real estate. The Residential Specialist is published bimonthly by the Residential Real Estate Council, 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 RRC 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 Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. COPYRIGHT 2018 by the Residential Real Estate Council. All rights reserved. Printed in U.S.A.

Publishing Manager Phil Malkinson Art Directors Scott Oldham Ivette Cortes

The ROI of Marketing Programs Learn about marketing services to help with direct mailers, social media, SEO keywords and gifts for client follow-up, as well as what kind of marketing specialists you can hire to help out. The ROI of Apps Find out what apps real estate agents find most helpful and easy to use, and how they can help you grow your business.

PLUS:

What are the most common reasons real estate agents fail—and how can you avoid those pitfalls? Learn how some agents muscled through a variety of potential snags. 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 2018 editorial calendar online at crs.com.

WHO ON YOUR

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

STAY INFORMED The Residential Real Estate Council provides

crs.com

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

[vantage point]

from the desk of Gary Williams, CRS 2018 RRC president

change

IN THE AIR 

TELL YOUR COLLEAGUES AND CO-WORKERS ABOUT WHY YOU’RE SO EXCITED TO BE A CRS AND WHY IT’S SO IMPORTANT TO EARN THE DESIGNATION.

This is an exciting time to be the Council’s new president. This is a time of unprecedented change that will bring new life and new members into our organization and shine a brighter light on the CRS Designation—the most prestigious designation in the industry. Just this past year, the Council changed its name to the Residential Real Estate Council (RRC) and updated the look and feel of the Certified Residential Specialist logo. We also launched a new CRS.com website that is more contemporary and easier to navigate. Finally, we introduced new standards that require all CRS Designees to take two credits of RRC Education each year to maintain their designation. With so much activity happening nationally, I will be getting back to basics locally. I started my journey with the Council on the local level, with my State RRC (known as CRS chapters back then). So I will be touching base with all the state presidents and regional vice presidents to talk about what we can do to improve our member experience. You can all start by getting involved with your State RRC or your Network Group. Tell your colleagues and co-workers about why you’re so excited to be a CRS and why it’s so important to earn the designation—for their own career growth and for the good of the industry. Talk to your clients about why the designation matters. Explain to them why they need to work with a Certified Residential Specialist when selling or buying their home. They need to work with a CRS to get the job done! The education, referrals and networking offered by becoming a CRS have always been unparalleled. It’s time to remind the industry why we’re the best REALTORS®.

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[entry points] + industry headlines + business technology + ideas & trends

FUTURE TENSE

ROBBIE THE

REALTOR

Artificial intelligence (AI) will transform life as we know it, including real estate. In fact, the International Data Corporation predicts that 75 percent of developer teams will use AI technology in one or more business applications or services by the end of 2018. The key feature of AI technology is that it leverages computers to sort through massive amounts of big data to identify trends or opportunities. This is a major benefit for real estate agents. Rather than manually figuring out who is ready to buy or sell, finding leads and identifying market movement, AI does it instantly. IDC predicts that AI will also help agents in three specific ways: Shorter closing periods. With AI, agents can not only ÄÄ generate leads, but also validate and enrich them with data that yields insights around prospects’ behaviors and preferences. This data will help agents figure out which opportunities are likely to close in a timely manner. Social media targeting. AI can analyze behavioral ÄÄ trends on agents’ websites and leverage those insights to identify the people who are most likely to respond to ads targeting messages on Facebook. ÄÄStreamlining agents’ workflows. AI will transform real estate in 2018 by eliminating tedious tasks, such as following up with leads and entering data, through automation. AI technology makes it possible to scan closing documents, digitize the information and automatically import the data into an agent’s CRM.

BY THE NUMBER S Rex, the online real estate broker created by REX Real Estate Exchange, does not use the MLS and charges just a

fee instead of the traditional 5–6 percent.

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[entry points]

sound

LIKE A

WINNER

Create a podcast to broaden your audience and expand your business

By Phil Malkinson

Smart

Solutions

BY THE NUMBER S Most podcast consumers listen to most of the podcast episodes they download, and over half of consumers who download a podcast listen to

% 76-100 of the podcast.

Source: The Podcast Consumer 2017, Edison Research

Jan Feb



Are you interested in starting your own podcast? With proper planning, it’s an effective streamlining your business medium for establishthrough technology ing your expertise and gaining renown as a local expert in your field. It’s not difficult to get up and running with a podcast, says Monica Neubauer, RRC Certified Instructor and host for the Center for REALTOR® Development podcasts, who conducted a session on “Getting Started with Podcasting” at the recent 2017 NAR REALTORS Conference & Expo. “But because podcasting is only sound and affects just one sense— hearing—the bar for creating a compelling production is higher compared to creating a video,” Neubauer says. “There are several details

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that go into planning and executing a successful podcast, but once you are set up to do it, it can be easy and fun, depending on the style you choose to do.” First, ask yourself why you want to do a podcast. Perhaps you want to become known as an expert in your local area, to educate your clients or to add credibility to your business—or just because you enjoy it.

Start with a plan

Neubauer emphasizes the importance of having a plan for creating a podcast. Ask yourself the following questions: ÄWhat Ä is your goal? ÄWho Ä is your target audience? ÄWhat Ä is the demographic of your target listener? ÄÄHow often do you want to air new episodes of your podcast? ÄWhat Ä is the duration of each episode? Find out who listens to podcasts by reading The Podcast Consumer 2017 report by Edison Research (see sidebar, page 7).

Vital components

Include the following elements in your plan: ÄÄIdentify a topic of broad interest to your audience. ÄÄPlan your introduction—the first minute or so is critical. ÄÄDetermine where in the podcast you will place your guest’s bio information if you use an interview style. ÄÄLocate a sponsor and then decide when in the podcast you will promote your sponsor. ÄÄDetermine the background music. ÄÄRelease the broadcast on a consistent schedule. ÄThe Ä webpage that hosts your podcast should feature a strong design with clear branding— and it should be mobile-friendly. Carefully consider the title of your podcast and each episode title—use keywords that will show up in search engines.

Episode format

“Once you decide who your audience is and what you want to say, you then need to decide on a format,” Neubauer says. Possible formats include: ÄÄInterview ÄÄStory ÄÄDialogue ÄÄMonologue “The monologue is just you talking, the dialogue is with a regular co-host and the interview format is you talking with other people about your topic,” Neubauer says. “And the story format is the one we all love to listen to—telling a story. This often requires more complicated editing and good planning. The format of your podcast will dictate the equipment you need for recording—will you record at home, out in the community or in a studio?” Create an outline of the content you want to cover before each episode to help structure the podcast and minimize gaps in the broadcast. This will guide you without being too scripted.

Recording

The technical aspects of creating a podcast require some investment to achieve a professional outcome. Microphones, headphones and recording software are some of the necessary components. Using quality recording gear and recording in a quiet space and/or using a vocal recording shield will help create a positive listening experience for your audience.

The best content in the world can be undermined by poor execution when recording the podcast. In addition to a microphone that plugs directly into a portable recorder or the USB port of a computer, Neubauer emphasizes the importance of a solid mic stand set to the proper height, as well as a vocal shield or other pop filter for the microphone to filter out stray noises. You’ll also need to use recording software—some options include Audacity, an open-source recording and editing program, Skype with Ecamm, or GarageBand for Apple users. Make sure voices are recorded as clearly as possible and that each voice is recorded on its own track so an editor can work on each voice separately.

NOW HEAR THIS

Edison Research’s report The Podcast Consumer 2017 revealed the following: ÄÄ It’s estimated that 112 million Americans have listened to a podcast at some point, and monthly podcast listeners grew to 67 million in 2017. ÄÄ Podcast listeners continue to be predominately 18–54 years old, lean slightly male and are affluent, educated consumers. ÄÄ Home is the most often named location for podcast listening (84 percent listen at home), but vehicles are a strong second-place (65 percent).

Editing and post-production

Post-production can be time-consuming— professional-sounding results are important, so consider outsourcing this aspect. Outside services can be reasonably priced: You upload the raw audio file to the service and they send back the edited file. If you opt to edit the file yourself, use software that’s user-friendly. For example, if you record in stereo, make sure that vocal levels are similar in each channel. Find royalty-free music for the background and intro music.

Show notes

Show notes provide a summary of each episode, and they typically appear under your podcast in one of the following formats: ÄÄNarrative style (translates easily into a blog); if you record with video, you can post to YouTube ÄTweetables Ä format (copy/paste to Twitter) ÄTime/topic Ä Include guest info in the show notes. The show notes create searchable content, so think about keywords.

Continued on page 8 }

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sound

LIKE A

WINNER

}Continued from page 7

Publishing/ hosting

You have to host your podcast somewhere. Some post-production services will do this at an affordable cost. You’ll need the following components: ÄA Ä web URL where your podcast resides. ÄA Ä title for your podcast and each episode. ÄÄGraphics for the webpage, including a compelling design that represents your brand for the podcast. Your hosting company will create an RSS feed that your listeners subscribe to so they can automatically download new episodes of your podcast.

Budget items

Create a budget that includes equipment, hosting, production, post-production, website and a marketing plan Need help covering expenses? Get local advertisers to sponsor your podcast.

In conclusion, Neubauer says: “The titles, descriptions and show notes are the key parts when listeners are searching for you or your topic. Make sure you take time to understand the best way to create and title the podcast. Also, use strategic words in the first few lines of your description or show notes as they show up with the title to draw listeners to your topic.” It’s important to start with a plan, but the best advice from most experts is to just do it. Neubauer says: “If you love to write, do a blog. If you love to video, post to YouTube. If you love to talk, do a podcast. Jump in for six months to try it—it will be fun.” Phil Malkinson is the Publishing Manager for The Residential Specialist and a freelance writer. Check out Apple’s podcast specifications, including podcast best practices, at itunespartner.apple.com/en/podcasts/ overview. Also, check out a 14-step guide on starting a podcast at websitesetup.org/ start-podcast. Join the Podcast Movement Group on Facebook to learn more. It is interactive. Visit facebook.com/groups/ podcastmovement.

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GADGET INSPECTOR

SNAP AND PRINT WITH FUJIFILM INSTAX

With the Fujifilm Instax Square SQ10 Hybrid Instant Camera, you get a camera and printer all in one. This handheld hybrid lets you snap photos and instantly print them in a 2.4-inch-square format, or save them to the internal memory or a micro SD card. The 3-inch LCD screen allows you to get creative by changing image effects and filters. For more information, visit Fujifilm.com. Prices start at $235.98.

GOOGLE’S SECONDGENERATION PIXEL The 5-inch Pixel 2 and the 6-inch Pixel 2 XL are Google’s newest smartphones. The enhanced camera features new photo and video optical stabilization, and takes beautiful photos in any lighting and in portrait mode. Plus, with unlimited storage, you’ll never have to delete a shot. Google Lens also allows you to learn about a landmark, book, piece of art, etc., simply by taking a picture of it. Other key features include water-resistance, voice-controlled Google Assistant and wireless headphones. For more information, visit store.google.com. Prices start at $ 649.99.

AMAZON ECHO IS BETTER THAN EVER

The all-new Amazon Echo is here with a new look, a new speaker, a new price and the same great voicecontrolled capabilities. You can still ask Alexa to play music, check your calendar, set alarms, control smart home devices, order pizza and more—instantly. The new speaker with Dolby processing and noise cancellation allows for crisp vocals so the Echo can hear you from any direction. The six new styles, including fabrics and wood veneers, will help the Echo fit into any room. And the cheaper price tag looks pretty nice, too. For more information, visit amazon.com. Prices start at $99.99.

[entry points]

fight FOR YOUR fee

5 ways to deal with a seller who wants you to cut your commission.

By Gayle Bennett

Recently, Karen Hall, CRS, got a call from a couple who wanted to sell their home. She knew from the get-go that they were going to be ofOpportunity tough: They had been interviewing strategies to grow your business agents for a year and they wanted to push the envelope on the list price. In addition, “They kept trying to get me to cut my commission, and I kept saying ‘no,’” says Hall, principal broker at @home real estate in Alexandria, Virginia. “They didn’t want to sell unless they got a certain price. So I said, ‘Then it’s got to be the full marketing push that’s going to get you that price, and I’m not willing to cheat your house on the marketing budget from day one.’” The couple would agree to list with her for the standard commission after in-person meetings, but then called her later to haggle on the fee again. “I actually fired them twice before we listed,” Hall says. “I kept telling them, ‘You called me for my marketing, and if that’s what you want, then this is what it’s going to cost.’” In the end, the couple understood that—and they weren’t disappointed with their decision to hire Hall. She sold their home for the price they wanted. “I had other agents calling me for three months saying, ‘You got a high price and a quick contract, can you look at my listing to see how you can

Window

help me?’” she says. Like Hall, savvy CRSs know their worth and are good at conveying it to potential clients. When you do this well, the subject of commission-cutting isn’t likely to come up. But if it does, here are five tips for how to have that conversation—and resolve it with your fee unaltered.

Get specific in your marketing presentation, and share impressive statistics.

When Kathleen O’Donnell, CRS, a principal broker at O’Donnell Group Realty in Portland, Oregon, goes to a marketing presentation, her materials include a detailed list of the services she provides. She goes over each service in the presentation so that the clients have received the information both verbally and visually. She also shares her sales stats to show that her marketing and real estate expertise literally pays off for her clients. “No matter whether the market’s good or bad, I consistently sell homes for an average of 99 percent of their original list price,” O’Donnell says. “Statistically, I bring in a higher price than people who don’t do the same quality of marketing that I do.”

Explain the entire process.

In a sellers’ market, some people will seek a fee cut. “They think, ‘Homes are selling within a matter of days; we don’t need a REALTOR®. We’ll just put Continued on page 10 }

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}Continued from page 9

a sign in the yard,’” says Leigh FOR YOUR York, CRS, with Century 21 in Fort Worth, Texas. “We have to explain to them that we are worth as much or more in a sellers’ market.” In a hot market, a house might sell quickly, but did it fetch the best price? York also explains that getting one or multiple offers is just the beginning of a complex process. “The hardest part is helping the client decide which buyer is most likely to close, and then getting the sale to the closing stage.”

fee 3

Talk professional to professional.

When O’Donnell gets the commission question during her marketing presentation, which is rare, she reminds these potential clients that all of the work she will do to bring top dollar for their home is with no assurance of payment or knowledge of when that payment will occur. “Then I’ll ask them when the last time was that they worked with no expectation of getting paid. And do they, like me, believe that what they do for a living has value?” That tends to end the conversation. When a client wants to haggle on the commission at the time of an offer, Nadine Krasnow, CRS, with Falmouth Fine Properties in Falmouth, Massachusetts, has a simple response: “Everybody in the world gets paid when they do the work they are contracted to do. So why should it be any different for REALTORS®?” She explains that the contractual agreement on the commission does not change,

regardless of how much a buyer wants to pay or what a seller wants to receive.

Stay calm and show empathy.

Be prepared to walk away.

For any clients who might question York’s fee, she would ask them why they think she’s not worth that amount. “Then I would just be quiet and let them try to explain themselves,” she says. “A lot of the time, they don’t really have an answer. That kind of ends it right there.” But York knows that sellers want to be sure they’re getting their money’s worth from the commission. “If we can’t show our value, then it’s probably because we don’t have it.” Some sellers are simply looking for a bargain. But CRSs providing top-notch service are wise to stay firm on their fee. “If cutting the fee is a big deal, then I look them in the face—I think this happened once—and say, ‘Maybe I’m not the right broker for marketing your property,’” O’Donnell says. If you’ve successfully demonstrated what you will bring to the table—and how this work consistently makes your clients whole and happy—potential clients won’t question the This is a great topic to discuss commission. with other CRSs “People actually ask us sometimes in our We Are CRS Facebook if we charge more,” Hall says. Gayle Bennett is a writer and editor based in Washington, D.C.

QUICK COMEBACKS

Leigh York, CRS, with Century 21 in Fort Worth, Texas, teaches a continuing education course called “Cut Your Hair Not Your Fees!” In the course, she offers the following immediate responses to when a potential client asks about lowering the commission.

What don’t you want me to do? (i.e., You get what you pay for.)

I can’t lower the percentage, but I can replace it with a retainer and an hourly rate.

If I can’t negotiate for me, I can’t negotiate for you. The average unrepresented seller sells his or her house for 20 percent less than if it’s REALTOR®-represented. My full fee saves you money. Maybe I should charge more.

Would you take a 33 percent cut to your salary with no guarantee of getting paid? Agents who cut their fee immediately feel like they have to do less to make it worth it.

Banks have attorneys and staff and internet access, and they still see the value in listing and paying the full fee.

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group. Join today at Facebook. com/groups/ WeAreCRS.

SAFE HOUSES

KNOW THE DRILL

Radon is a colorless, odorless radioactive gas that is naturally produced by the decay of uranium in soil and rock, and then released into air and water. Radon can seep into homes from the ground beneath it, well water or building materials containing radon. Radon can enter any home—the only way to know if your home has elevated radon levels is to test for it.

Radon

Radon vent pipe Blower or fan

PVC piping BY THE NUMBER S According to the Environmental Protection Agency, studies show definitive evidence of an association between residential radon exposure and lung cancer—radon is the

Indicator system

No. 1

cause of lung cancer in nonsmokers.

A widely used method for reducing radon in homes is with an active soil depressurization (ASD) system, which draws radon from beneath the home and vents it safely above the roofline. When installing an ASD system, a radon professional will: ➊ Seal all cracks. ➋ Drill suction points into the soil so the home can be depressurized. ➌ Vent by installing a PVC pipe from the draw point up through the home interior or exterior to somewhere above the roof. ➍ Activate with a radon fan. ➎ Monitor with a u-tube manometer so the homeowner can confirm that the system is operating. ➏ Retest the radon level within 30 days.

Suction point

BY THE NUMBER S The EPA estimates that

Radon vent pipe

1 out of 15

homes has an elevated radon level. Whether or not you have a radon system in your home, remember to test the radon level at least every two years or more often.

Radon

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

Well depressurization system

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[entry points]

TTFN,

FSBO

How you can find and convert for-sale-by-owner leads By Andrew Conner

For-sale-byowner (FSBO) home sales can be an interesting and potentially profitable challenge. While your what’s trending in real estate business might not be able to rely on FSBOs alone—only 8 percent of homes were listed as FSBO in 2016, according to the National Association of REALTORS®—that doesn’t mean FSBO conversions can’t be a good source of income. “Most people think FSBO is for sale by owner, but others have said it stands for a Fast Small-Business Opportunity,” jokes Paul Pastore, CRS, a REALTOR® with RE/MAX Infinity in

Inside Track

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Chandler, Arizona, who has decades of experience with FSBO sales.

Where to start

Like many sections of the real estate business, there are plenty of ways to acquire FSBO leads. You can look to apps or web services being used for this purpose like Espresso Agent or RedX, which aggregate leads from common sources such as Zillow, Craiglist, and even newspaper classified ads and public registries. Pastore’s service of choice is LandVoice. But Pastore and Rich Sands, CRS, and RRC Certified Instructor, recommend paying attention and looking for leads through FSBO signs when you’re in the neighborhoods you service.

“The internet has given us all kinds of avenues for discovery [of FSBO leads],” Sands says, “but I still think the best way to find them is when you’re out and about and you see ‘FSBO.’ If I see one in my market, it will increase the odds that I can help that person, and I don’t have the added task of learning that market.” Sands also recommends identifying local markets that are ripe for FSBO conversions by looking for areas that have been strong sellers’ markets. Often when people see their neighbors’ houses selling quickly for good prices, it gives them more confidence to go FSBO, and in turn gives agents an opportunity to show their value as experts in the market.

Making the conversion

Once you have collected leads, it shouldn’t take long to determine whether an individual lead is a potential conversion. When calling FSBOs, Pastore uses a simple three-question script (see sidebar), and he estimates that it only takes about a minute to determine if a lead is worth pursuing.

BREAKING THE ICE

Paul Pastore, CRS, a REALTOR® with RE/MAX Infinity in Chandler, Arizona, uses a simple script when he contacts FSBO leads to spark a dialogue and establish a rapport with the seller. He usually only writes down three letters (B, P and C for broker, possession and condition) before a call, which are enough to remind him of the three questions he wants to ask:

Are you willing to show your house to a broker’s client? “A lot of them don’t want to pay a full commission, but they’re willing to pay something,” he says. “And if they say, ‘I’m not paying anything, I hate real estate agents,’ then I just say, ‘See you later.’”

What sort of possession are you looking for? This question helps Pastore determine if the property is worth his time. If the owner says they have a tenant with a three-month lease, or another possession situation that complicates matters, it might not be worth it.

What condition is the property in? If the property sounds like it is in reasonably good shape, and the owner has shown interest with their other answers, then Pastore will follow up by suggesting an in-person meeting to view the home.

Continued on page 14 }

GEOGRAPHY CLASS

A ZIP ON THE RADAR 1 Realtor.com® recently released its annual list of the top 10 markets for 2017. What earned these ZIP codes the honor? Homes in these ZIPs sold an average of 21 to 50 days faster than markets in the rest of the U.S., and their listings on Realtor.com® were viewed four times as often. Watauga, Texas, (76148) was named the top ZIP code for the second year in a row because of a competitive housing market and desirable amenities, such as high-rated schools, a strong economy and close proximity to Fort Worth. The other top features of the hottest ZIP codes includes: Relative affordability. The median price for a home in ÄÄ these markets was $360,000. A younger population. The dominant buyer segment ÄÄ was older millennials, ages 25 to 34. Strong job markets near large companies, universities ÄÄ and military bases. The median household income is higher than the national median in 9 out of the top 10 ZIPs. Located close to outdoor spaces, such as parks and ÄÄ beaches, and cultural attractions in nearby cities.

2 48154 – Livonia, Michigan

76148 – Watauga, Texas

49548 – Kentwood, Michigan

➍ 02155 – Medford, Massachusetts  ➎ 80123 – Littleton, Colorado  ➏ 94546 – Castro Valley, California  ➐ 80922 – Colorado Springs, Colorado  ➑ 66210 – Overland Park, Kansas  ➒ 92126 – Mira Mesa, California  ➓ 43026 – Hilliard, Ohio

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TTFN,

}Continued from page 13

FSBO

“If someone were to say: ‘What’s the secret?’ having done this for 40 years, I would say, ‘You want to be the first, the best and the most persistent,’” he says. “NAR statistics show 66 percent of sellers are just going to talk to one agent [before hiring someone]. If you make the commitment that the lead is worth pursuing, then be persistent. In baseball you get three strikes, in FSBO sales I think you need five.” In fact, NAR data shows that the average FSBO seller is contacted by an agent eight times before hiring them. To facilitate these contacts, Sands recommends thinking ahead during each conversation with the seller. “If I see the ‘FSBO’ sign, the No. 1 thing I do is park my car and go knock on their door,” he says. “If they say, ‘We’re not hiring REALTORS®,’ what works is: ‘I’d just love to see your house,’ or ‘I’m anxious to keep up on the market,’ and once I get in the house, my goal changes. I’m looking for reasons for the next contact.” Sands explains that finding that reason could be as simple as asking them how they arrived at their price, and if they waver or seem confused by the question, offer to give them pricing information. Try to become their go-to person for real estate information, even if they haven’t hired you yet. Sands recommends helpful gestures such as sharing an open house checklist if they have one planned, or lending them an informational DVD (e.g., David Knox’s Selling “By Owner”). “I’ll share it with them and say they can keep it for a couple of days and then I’ll come pick it up,” Sands says. “A couple of days later I’ll call and ask if they’ve had a chance to watch it, and if not, I’ll keep putting it off, as long as we continue to talk. I’m trying to build the relationship.” In the end, it’s about establishing a relationship with the seller so they look to you when they finally decide to list with a broker. Andrew Conner is a freelance writer based in the Chicago area. Meet your Designation Maintenance Requirement today! Read this article and “Get Smart” on p. 30, take a 10-question quiz and earn 2 credits. Go to CRS.com/ trs-quiz to get started.

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GENERATION LEADS

ALL ABOUT THE

BOOMERS It’s not all about millennials when it comes to homebuying these days. Nearly 40 percent of baby boomers, those 55 and older, are planning to buy a new home within the next three years, according to a recent survey by national homebuilder PulteGroup. Boomers are on the house hunt for different reasons— retirement, downsizing or a more desirable location—but they still want a variety of options in their new homes. The top home features include:

A multicar garage

A deck or patio

An eat-in kitchen

A private yard

In addition to certain house features, boomers are also searching for other specifics in their next home, including an affordable cost of living, close proximity to the water or green spaces, and warm weather locations. Not surprisingly, Florida is the top destination with year-round sunshine, followed by Arizona, North Carolina and South Carolina, which provide more affordable options than are available on the West Coast. Being close to their kids and grandchildren is a top consideration when choosing a new place to live, as well.

[entry points]

Cool Stuff acquisitions on a theme

54.99

COZY

corner

TINY BUBBLES-MAKER

The latest trend may also be the easiest (and softest, warmest and comfiest): Hygge, the Danish practice of acknowledging and seeking feelings of coziness in everyday life. And while Americans may not be the best at stopping and smelling the aromatherapy candles, adding calming elements to an otherwise hectic life is one way to experience the very understated thrills of the Hygge lifestyle.

WITH A NAME LIKE HOOGLY…

4.25+

Hot baths are cheaper than therapy and are key to relaxation, especially in cooler weather. Why not turn your regular tub into a paradise of swirling, massaging warm water? Thanks to this portable Conair Dual Jet Bath Spa, you can. And, while you’re at it, consider adding the Homestar Spa Bath Planetarium (a floating, waterproof mini-planetarium that projects starlight into the room) for the ultimate soothing bath experience. conair-store.com

If you’re following the true principles of Hygge, you’ll already have your favorite mug crafted by a local artist or one with the perfect inspirational quote. That means it’s time to up your tea game, and Hoogly Tea can make your loose-leaf dreams a reality. Created by a Danish tea enthusiast and close follower of the Hygge way of life, the company offers a variety of interesting blends, perfect for a day of comfort. hooglytea.com

RING IT UP

Nothing is less relaxing than a harsh overhead light. C by GE Sol is a smart light with a built-in Amazon Alexa that offers the ability to manually or automatically change light color and intensity with only your voice. Think of this as a super tech-focused way to choose the perfect hue to calm your mind, enhance your mood or lull yourself into slumber.

STREAMING SPEAKERS

The quality of Bose sound meets the ease of app control with the wireless Bose SoundTouch speakers. With connections to popular music services (Spotify, Apple Music) and your personal music library, you’ll be able to play whatever you like. These speakers also can connect wirelessly with one another; buy multiple speakers to send sound from one room to another or to have calming music floating into multiple rooms at the same time.

149.00

199.99

199.95+

cbyge.com

bose.com

OHHIO, BABY

A DEFINITE CASE OF BED HEAD

If the only way to become truly calm and comforted is to escape completely from everything around you, no matter where you are, try the Ostrich Pillow Original, a fabric cocoon for your head. Marketed as “a little private space within a public one,” this pillow allows you to breathe through a special opening while otherwise completely covering your eyes and ears. Nap any time, anywhere, while only sacrificing a bit of your dignity.

99.00

ostrichpillow.com

Add some low-tech, high-comfort texture to your life with a delightfully thick throw. Perfect for cozying up with a good book, these hand-knit Super Chunky Blankets are available ready-made on Etsy. For some added interest, turn on an audiobook and knit the blanket yourself using one of OHHiO’s knit kits. etsy.com

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[entry points]

The Presti Group, Newton, Massachusetts

Peer to Peer profiles of people to watch

What aspect of interacting with clients do you find most energizing? Helping clients negotiate an offer on either the seller or buyer side is especially energizing because I can help them figure out their strategy. I’ve done it many times over the years, when they are not experienced in knowing how the system works and how to get the best terms. I enjoy looking out for their best interests and giving them the right advice at the right time.

When did you get started in real estate? I had a multi-year journey into real estate. In the 1980s, I was working in banking in New York and living in New Jersey. I was about to make a home purchase, so I got my license in New Jersey so I could learn how to buy a house. I passed the licensing test in the late ’80s, but Why did you continued to work another become involved five years in banking and then with the Residential 10 years or so in tech. When Real Estate 9/11 happened, I was laid Council? off from my VP of marketing I was a younger agent with position at an internet startup. a few years’ experience. I relocated to the Boston area I lived in an affluent city, and got another real estate Newton, Massachusetts, just license as an interim job to outside of Boston. It was very help pay some bills until I competitive and there were figured out what software a lot of real estate agents. company I was going to start. I wanted to elevate my game, I got started buying and distinguish myself from the selling real estate in Boston competition and learn how and I never left the business! to be a great listing agent. I got three offers from tech I knew that the Council could firms that first year in the teach me that, and then I business and turned them could use the CRS Designaall down. They were good job tion as a way to market myself offers, but I wanted to stick in listing presentations. It with real estate—I’ve stuck was definitely one of the more with it for 17 years. difficult designations to get!

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Do you participate in RRC meetings or educational “ I tell many of my fellow sessions? If so, which activities REALTORS® that just do you find most spending time on social useful? media is not giving back. I attend many local RRC meetings and classes. There You have to get out there are always new electives, some at the NAR conferences, some and help those in your through RRC networking events. community who truly need I’ve actually taken the Council’s help and are less fortunate investment class twice! Locally we have an active than you.” RRC group, and I have attended its sessions over the last Do you have a pet And at Cradles to Crayons, we couple of years. It’s great to project that you accept clothing donations get to know CRSs across the would like to talk for children in need. We have state so I can refer clients about? also volunteered at a center to them. They are top-notch, I’ve been a Rotarian for about called Second Step that helps and I know that when I refer 15 years, serving as a past women from shelters get customers to them, they’ll president and a board member. back on their feet again. do a good job. In turn, I have I have organized several Every REALTOR® needs received several referrals from events and activities—I love to identify their passion— across the state and through it so much because of their my sister, who sold real my local RRC group. motto of “Service above Self.” estate through my office, I was elected Greater Their focus is on helping and volunteers at a cat shelter. Boston REALTOR® of the giving back at the local level, Another REALTOR® focuses Year in 2017. This year, I am regional level, and national on opioid addiction. serving as president of the and international levels. So I Many people say they Greater Boston Association of feel good about helping many don’t have time [to volunteer], REALTORS®. There are 9,800 people, even people I haven’t and I’m saddened by that. REALTORS® in the group; it’s met yet. How can you not make the the largest local association Even though Newton is an time to help the community in New England. affluent community, there when that is where your In addition to being active in are pockets of poverty; over customers are? I tell many of all of these groups, I’m always 18 percent of the population my fellow REALTORS® that looking for opportunities to is at or below the poverty just spending time on social share my knowledge with other level for income. My Rotary media is not giving back. You real estate professionals. I am team and I have volunteered have to get out there and help a licensed instructor in Massa- at the local food pantry those in your community who chusetts and a certified agent and have done numerous truly need help and are less trainer on Ziplogix and Realtor collection drives for them. fortunate than you. Property Resource (RPR). Marie Presti, CRS, achieved her CRS Having mentors has helped me Designation in 2006. She can be reached at marie@theprestigroup.com or in my career and I want to do 617-916-2256. the same for others.

Photo: Tracy Powell

MARIE PRESTI, CRS

After working for many years in banking and technology, Marie Presti, CRS, went into real estate and never looked back. She was elected Greater Boston REALTORÂŽ of the Year in 2017.

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PATH TO

GREATNESS 2018 President Gary Williams wants to grow the Council so it flourishes Photos: David Ellis

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council

counsel

[feature]

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council counsel



Like many CRSs, real estate wasn’t Gary Williams’ first career. Williams worked for a company that made computer processors for military fighter planes. Real estate was a big change, but Williams wanted to work for himself. So in late 1986, he started his real estate career in Edina, Minnesota, where it flourished. As his business grew, he continually sought better education to improve his skills as a REALTOR®, and in 1997 he became a CRS. Leadership positions within the Council started calling from there, and he always answered. Starting from his presidency of the Minnesota chapter, Williams became a regional vice president, joined the national board and then became the 2018 national president. Williams was also named CRS of the Year in 2007 and won the Medallion Award in 2013. He takes over as president during a season of change for the Council, which recently renamed itself the Residential Real Estate Council in a rebranding effort that pushes the organization into the future. Williams’ long relationship with the Council and commitment to bringing more members into the fold provides a solid foundation for the Council’s first year as RRC.

Why did you join the Council and earn your designation?

While taking my GRI course, instructor Dave Beson [former Council president from Bloomington, Minnesota] said after you complete your GRI, your next step should be earning your CRS Designation—it is the only designation you will have to earn because the Council has the best education in the real estate industry. RRC members are also in the top 3 to 4 percent of REALTORS®. I took Dave’s advice and earned my CRS Designation.

“ Our courses need to be on the cutting edge of technology, enabling members to not only know what is available, but how to fully use these tools to run their business.” Jan Feb

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When did you start getting involved as a volunteer leader, and why?

I always like to say, “Because someone asked me to.” I was asked to join my local Council board. Then

after serving on several committees and chairing some of them, I was again asked to be their president-elect for the Minnesota chapter. This led me to the May and Annual Meetings where I took part in many different activities. That led me to where I am today, as I was asked many times to step up and get involved in leadership. Fast forward to today and I am now serving as the Council’s 2018 president. Who would have thunk that?

Do you have a real estate philosophy that motivates you?

Yes, I believe in serving buyers and sellers to make their dreams come true! There’s a lot of fulfillment in helping them figure out what is the best fit for them and directing them through the next chapter in life. From the first-time buyers, holding their hand and helping make their dreams become reality, to the seniors moving on to what may be the last chapter in their lives, it gives me so much joy and happiness to see a successful ending to each real estate transaction.

council counsel

How do you see the real estate industry changing, and how do you see the REALTOR®’s role shifting in the future?

Consumer expectations of REALTOR® professionalism are a significant hurdle for the industry. Technology, differentiation and reduced confidence in REALTOR® services are both a challenge and opportunity for the Council. As an organization, we have the ability and infrastructure to address these challenges. Our courses need to be on the cutting edge of technology, enabling members to not only know what is available, but how to fully use these tools to run their business. We have the opportunity to differentiate ourselves and re-establish our brand as the gold standard for REALTOR® professionals. And finally, we need to hold our members accountable so that consumer experiences with a CRS Designee are significantly more impactful than transactions without a CRS. As president, I will be focused on enhancing our brand through both self-improvement

[feature]

GETTING TO KNOW GARY

Family Matters “I have two sons and two daughters. My son Greg and his wife, Jill, live in Plymouth, Minnesota. They have one son, Derek, and two daughters, Grace and Faith. My second son, Eric, and his wife, Michelle, live in Corona, California. My oldest daughter, Natalie, and her husband, Joseph, live in Fridley, Minnesota, along with their black lab, Dusty. Last, but not least, my youngest daughter, Nicole, and her boyfriend, Zach, live in Saint Paul, Minnesota.” Downtime Diary “I am actively serving on the board of directors for my local homeowners association. I have volunteered for local nonprofit organizational groups. I also spend ample time with my grandkids.” Super Fan “I like golf and I like watching many different sporting events. I have been a season ticket holder for the Minnesota Vikings football team for 45 years.” Food Comforts “Homemade meat loaf, and crock pot roast with all the trimmings.” Bedside Reading “I Love You, Ronnie, Nancy Reagan’s book of letters written to her by her husband, ex-President Ronald Reagan.”

“ I hope to be able to work with the RVPs and state leadership teams to build their base, and hold more Council courses in their states.” and by increasing consumer perception of the best designation available to the residential REALTOR®.

that are relevant to the market, our image will improve and bring in new designees, and we will retain our current members.

What advice would you give to members, so they can get the most out of their RRC membership?

If there’s one thing a CRS could do today to make their business more successful, what would it be?

First, I would tell them to get involved with the Council—and I don’t mean just achieving the designation and paying your dues every year. Stay active. CRSs need to take ownership of the best designation, which they had to work hard to earn. Second, take advantage of all RRC has to offer: networking, the referral network, and the best education courses available from the beginners to the top producers in the real estate industry. Third, attend Sell-a-bration® every year, where top producers throughout the country share all their secrets to becoming top producers.

What do you see as the future of the Council?

With our new branding, updated website, new instructors and so many new classroom courses

The No. 1 thing is to take more courses from the Council to stay on the top of their game.

What do you hope to accomplish in your year as president? Where do you hope to see the organization go?

I have a big goal in recruiting and getting thousands of new members. In addition, I hope to be able to work with the RVPs and state leadership teams to build their base, and hold more Council courses in their states. I want to help them create better member benefits, and to draw in more local members through special events that highlight the Council and CRS Designation benefits.

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The Residential Real Estate Council

If you want to get more involved with the Council, find more information about your local RRC at CRS.com/ local-rrc.

crs.com

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super

marketing

[feature]

Add a unique marketing twist to stand out, get noticed and win business By Donna Shryer



When it comes to marketing, there’s no need to reinvent the wheel. Instead, take a tried-andtrue concept, bedazzle the branding strategy with a unique spin and outshine the competition. Here are a few ways to approach proven, dependable marketing ideas from a fresh perspective and make yourself memorable in your market.

Pet project

Many REALTORS® generously give back. There’s everything right about helping others while simultaneously reinforcing your brand image. It’s a win-win. In Columbia, Missouri, Betsy Woodruff, CRS candidate, REALTOR® with Woodruff Group, House of Brokers Realty, decided that two wins wasn’t enough. She wanted a win-winwin, so she created Pet Pledge. Win #1: Woodruff began donating a percentage of every closing’s gross proceeds to the Central Missouri Humane Society shelter. Since 2015, Pet Pledge has donated more than $20,000 to CMHS. Win #2: Credit for every donation goes to the client’s pet, or the client. “Pet Pledge adds another level of happiness to their sale or purchase,” she says. Win #3: Pet Pledge has reinforced the Woodruff Group brand throughout the Columbia, Missouri, market, and referrals just keep coming.

When it comes to choosing a philanthropic passion, everything matters, according to the 2017 Cone Communications CSR Study, TWEAK IT! which examines consumer attitudes toward corporate social responsibility (CSR). The report finds that 87 percent of Americans purchase a product or service because a company advocates for an issue they care about, and 81 percent tell friends and family about this.

The Central Missouri Humane Society is a beneficiary of the Woodruff Group’s Pet Pledge promotion. The Society also hosts an annual rubber duck derby fundraiser with its own distinctive marketing, as shown here.

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super marketing

Roger Morris, CRS, posts videos that he records driving through various neighborhoods while describing highlights and unique features of each location.

Jan Feb

Won’t you be my neighbor?

Imagine a grown-up version of Mr. Rogers’ No matter how large the market, every Neighborhood, and that’s what Roger Morris, REALTOR® will eventually run out of neighborTWEAK IT! CRS, REALTOR® with Coldwell Banker Bain hoods to cover, so boost your video vault with in Seattle, has done. “I wanted to do more than buying and selling tips. Morris does this with post property videos, which is what a lot of Roger’s Reels, which are educational in nature. agents do,” Morris explains. “So I had this idea for On the Road with Roger. I’m in my car with Trending toward success a videographer, driving through different Seattle Staging may not be news, although you can neighborhoods, and I talk about what makes the certainly put a new spin on this tried-and-true neighborhood unique.” The key, Morris emphaservice, explains Wanda Fears, CRS, REALTOR® sizes, is that “the neighborhood has star billing with Treehouse Realty VA, Long & Foster Group, and I’m on camera a limited amount.” serving Richmond, Virginia. Fears markets her 1. Each video follows a four-part template and staging expertise as an executive-style, turnkey a two-minute limit. concierge service, which begins when the listing 2. Morris identifies himself and where he works. is signed and ends after the property is sold. 3. The featured neighborhood is geographically To provide such an all-encompassing solution, identified. Fears developed trusted relationships with local 4. Brief vignettes zoom in on unique neighborexperts ready to improve, repair and stage a hood attributes. client’s home. “I oversee everything,” Fears says. 5. Not everything is filmed from the car. “For “I meet vendors at the client’s home, explain what’s a portion of each video, I try to be out of the needed, collect prices, check as the work is being car, showing unique features of that neighbor- done and double-check after everything’s done.” hood. I usually start and end the video from Many major brands are also on Fears’ path inside the car, and in between I am showing the to concierge service. Think Nordstrom, which lake, park or neighborhood feature, being part debuted Nordstrom Local, 3,000-square-foot on-camera, part off-camera,” Morris says. storefronts with no merchandise. Personal

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super marketing

shoppers have everything waiting for clients, who try on and buy. Then there’s Hello Fresh and Blue Apron, two of many services that deliver ingredients and recipes to your front door. Look closer and these businesses have actually put a fresh spin on an old idea—ordering in! In a similar fashion, Fears doesn’t market staging; she markets the fact that her concierge service takes care of everything. “Many sellers get discouraged just thinking about preparing their home for sale. They’re overwhelmed before even beginning,” Fears explains. “Most of the time we don’t talk about staging, since the very word can increase stress. We talk about a turnkey solution that helps sell a home more quickly and for top dollar,” Fears says.

If a concierge staging service isn’t in your wheelhouse, team up with a professional interior TWEAK IT! designer who has vendor connections and on-thejob knowledge. This may bump up staging costs, Fears says, but it’s money well-spent. “Ninety percent of the time, clients get every penny back—if not more— and the home sells faster.”

Main squeeze

A popup signup form to gain full website access is an established way to increase your email list and gain permission to market to subscribers. You know the drill: Seconds after clicking into a site, the website page background dims, and a signup form invites the visitor to provide contact information. According to Janrain, provider of social media sign-on technology, 86 percent of online users feel “bothered” when prompted to register for website access because the incentive is too vague. A contemporary lead generation tool is the squeeze page. A squeeze page is a website landing page designed to capture opt-in email addresses from subscribers in exchange for a specific, enticing and free report, tool or tip sheet that’s relevant to your brand and your audience. There’s nothing vague about it. Most REALTORS® already have relevant information posted, and website visitors access the information by simply clicking a tab or link. Simply attach your pop-up form to something specific that a website visitor wants. For example, when a visitor clicks your report about walk scores in various neighborhoods, a

[feature]

PARTNERS IN TIME

It’s new, it’s different, and early reviews of the SweepBright mobile app, released in 2017 and created for real estate agents, call the software program a “mobile agent’s marketing partner.” The app’s features allow real estate agents to input listing data into their smartphone and, with a few clicks, disseminate information to contacts, clients, websites, social media channels, real estate portals and multiple advertising channels. “Before marketing a new listing, agents spend a lot of time inputting data into multiple channels. What’s unique about SweepBright is that agents input data once, and in minutes they have a listing that’s ready for all channels. Marketing can begin in minutes,” says Raphael Bochner, SweepBright co-founder and CEO. In addition, SweepBright sorts through leads in the REALTORS® database and swiftly matches buyers with new listings. form pops on-screen and asks for basic contact information. With information collected, the report is either emailed to the subscriber’s inbox or the subscriber can immediately download the report.

While a squeeze is good, a splash is sometimes better. In this case, a user types your URL and TWEAK IT! lands first on a page featuring something similar to your squeeze. Either way, it’s imperative that you have a visible button saying something like, “No thanks, take me to the main site.” Some of the hottest marketing ideas that will put you front and center aren’t so much “new” as “original” takes on marketing strategies you’ve been using. Don’t worry so much about thinking outside the box—just make that box bigger, bolder and brighter.

Want to learn more unique marketing techniques? Check out the Grassroots Marketing webinar at the new CRS.com.

Donna Shryer is a freelance writer based in Chicago.

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BUBBLE

Economists and real estate professionals ruminate on whetherÂ to

WASHINGTON

NEW YORK

By David Tobenkin

ď&#x192;&#x2DC;

Home prices are accelerating, and some markets are now considered overvalued. As home values surge, affordability is rapidly eroding. Are market bubbles starting to percolate in some regions? Many housing markets are entering a fifth or sixth year of strong sales conditions, with low inventory and continuing high annual price escalations. Add to the mix an extraordinarily long bull market in stocks, and some buyers,

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agents and brokers are starting to ask whether the residential real estate business is too good. Is a housing bubble in the making? And if so, what can brokers and agents do to mitigate the risk to their clients and to their own real estate businesses? â&#x20AC;&#x153;We have certainly experienced economic and real estate market bubbles before, which I define as a disconnect between the pricing for products and the underlying

trade

winds

[feature]

NOTHING

invoke the dreaded B-word and how to react as a hot market continues

FLORIDA

TEXAS

CALIFORNIA

fundamentals that should define their values,” says George Ratiu, the National Association of REALTORS® managing director of housing and commercial research. “What happened in the housing market in 2005–2006 could be characterized in similar terms, with a disconnect between prices that people assumed would continue to go up and the underlying fundamentals in the housing market at that time.”

READY TO

POP A July survey of homebuyers by down payment protection provider ValueInsured listed the top five states where residents believe the market is approaching a housing bubble. Results are listed as percentages of homebuyers surveyed.

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trade winds

[feature]

Odds of a repeat bubble are low

But Ratiu and other economists and real estate analysts are quick to add that the housing market decline that occurred in much of the country between roughly 2005 and 2012, depending on the particular market, was among the severest on record. They view the likelihood of the reoccurrence of an event of similar breadth and magnitude as very small in the foreseeable future. “As in 2006, today’s home prices are high relative to income and to rent in many markets, but there the similarity ends,” says Frank E. Nothaft, chief economist at Irvine, California-based real estate data and analysis firm CoreLogic. “There are many more differences. For one, interest rates [and capitalization rates] are much lower, so a given income [or rent stream] is consistent with somewhat higher prices. Second, no- and low-doc lending, subprime and no-down-payment lending facilitated by second liens, all of which were common in 2006, have largely vanished from today’s market. Third, the speculative ‘flipping mania’ of 2006 is absent from most metro areas.”

BY THE NUMBER S

STATE

BUBBLED WATERS

Real estate analysts vary in their estimation of which markets might have the greatest risk for bubbles or price corrections. During the first half of 2017, many of the metro areas that bear closest scrutiny tended to be in Florida, especially because of the relatively large price appreciation and elevated levels of investor activity, according to a CoreLogic study, the CoreLogic Market Conditions Indicator. An ATTOM Data Solutions list of the 20 markets with the lowest affordability indexes in the second quarter of 2017, equating to markets where prices may be overinflated and affordability is out of line with historic norms, has the top spots dominated by Colorado markets, but it also includes Flint, Michigan; Knoxville, Tennessee; and Tarrant County, Texas—which are all among the top 10, says Daren Blomquist, senior vice president of ATTOM Data Solutions (formerly RealtyTrac). Blomquist notes that markets low on ATTOM Data Solutions’ affordability index list suggest that traditional overvaluation suspects such as New York City and San Francisco are possibly being overtaken by previously more conservative middleAmerica markets.

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But local exceptions are possible

Still, while another pervasive Great Recession-like bubble event is viewed as unlikely by many, all real estate is local and that generally applies to bubbles, too. Allan Weiss, founder and CEO of Weiss Analytics LLC, a Natick, Massachusetts-based real estate information and analysis firm, and some other real estate market analysts say that while a major national bubble is unlikely, they do have concerns that bubble-like conditions may be emerging in some markets or property types or price range subsets within those markets. “When we look at our affordability index, we definitely see evidence of bubbles forming in many markets across the country,” says Daren Blomquist, senior vice president of Irvine, California-based real estate information and analysis firm ATTOM Data Solutions (formerly RealtyTrac). “An index of under 100 for a market means that it is less affordable than it has been in the past. Looking at the most recent quarter, the second quarter of 2017, of the more than 400 counties in our most recent quarterly index, 45 percent of them are below 100, which is definitely more markets than normal.”

COUNTY

MSA

POPULATION

Colorado

Denver

Denver-Aurora-Lakewood, CO

649,654

Michigan

Genesee

Flint, MI

415,874

Colorado

Adams

Denver-Aurora-Lakewood, CO

471,206

Colorado

Arapahoe Denver-Aurora-Lakewood, CO

608,310

Colorado

Weld

270,948

Tennessee

Campbell Knoxville, TN

40,176

Tennessee

Loudon

50,229

Colorado

Jefferson Denver-Aurora-Lakewood, CO

552,344

Colorado

Boulder

Boulder, CO

310,032

Texas

Tarrant

Dallas-Fort Worth-Arlington, TX

1,914,526

Michigan

Saginaw

Saginaw, MI

196,479

Tennessee

Wilson

Nashville-Davidson—Murfreesboro—Franklin, TN

122,445

Texas

Travis

Austin-Round Rock, TX

1,121,645

Texas

Collin

Dallas-Fort Worth-Arlington, TX

862,215

Texas

Dallas

Dallas-Fort Worth-Arlington, TX

2,485,003

Oregon

Columbia Portland-Vancouver-Hillsboro, OR-WA

49,389

Washington

Franklin

86,443

Tennessee

Lawrence Lawrenceburg, TN

42,226

New York

Kings

New York-Newark-Jersey City, NY-NJ-PA

2,595,259

Georgia

Dekalb

Atlanta-Sandy Springs-Roswell, GA

716,331

Greeley, CO Knoxville, TN

Kennewick-Richland, WA

trade winds

How to recognize a bubble

It is not easy, but there are ways to recognize bubble conditions in a given market. Among the key factors that economists, analysts, agents and brokers say would highlight the danger of a bubble are: ÄÄMulti-year large annual price increases ÄA Ä sudden increase in inventory and/or reduction in sales volume ÄÄExtensive market participation of investors, rather than owner-occupants, as buyers. ÄÄExtensive market participation of relocation buyers from more expensive locations ÄÄSubpar underwriting and appraisal practices ÄÄSudden shocks to the national economy or local economics of the market

How to react

Communicating with clients about the risk of a bubble is a sensitive issue. Rather than invoke the word “bubble,” a highly charged word likely to frighten buyers, a better

Q2 2017 AFFORDABILITY INDEX

[feature]

approach may be conducting a more nuanced discussion of price risk and sales conditions, says Michelle Gordon, CRS, a Grand Rapids, Michigan-based agent at Distinctive Homes. With respect to sellers, it may mean advising clients of the possibility of a bubble and advising them to sell at a good price before a possible bubble pops, rather than holding out too long for a “best” price that significantly delays a sale and risks bubble exposure, says Judie Seitz, CRS, a Cincinnati, Ohio-based agent at Comey & Shepherd REALTORS® There are also steps that real estate professionals can take to protect their practices. Taking steps to diversify a practice by selling in a wide range of property types and price ranges can reduce the danger of exposure to a downturn in a submarket, says Jeff Dowler, CRS, an agent at Carlsbad, California-based Solutions Real Estate. David Tobenkin is a freelance writer in the greater Washington, D.C., area.

Q2 2017 MEDIAN SALES PRICE

Q2 2017 PCT OF ANNUALIZED WAGES TO BUY

Q2 2017 ANNUALIZED WAGES

Q2 2012 MEDIAN SALES PRICE

Q2 2012 PCT OF ANNUALIZED WAGES TO BUY

Q2 2012 ANNUALIZED WAGES

HISTORIC PCT OF WAGES TO BUY

$395,000

43.0%

$65,286

$245,000

27.9%

$60,385

31.6%

$113,000

20.9%

$43,914

$48,150

9.3%

$40,846

15.7%

$305,000

42.4%

$51,155

$168,997

26.3%

$44,239

32.7%

$325,000

37.5%

$62,309

$192,500

23.3%

$57,616

29.1%

$301,000

45.7%

$46,228

$169,568

27.6%

$41,756

35.5%

$95,000

20.0%

$33,059

$50,000

11.2%

$30,186

15.7%

$152,500

27.1%

$39,585

$110,000

19.4%

$38,649

21.4%

$380,000

50.6%

$53,898

$228,480

32.2%

$49,361

40.2%

$505,000

58.6%

$61,997

$335,000

41.3%

$56,602

46.8%

$228,000

34.5%

$52,429

$140,544

22.5%

$48,126

27.5%

$85,000

16.2%

$42,705

$55,000

11.1%

$39,416

13.0%

$255,000

44.2%

$41,600

$167,470

29.4%

$39,793

35.6%

$371,070

50.7%

$61,243

$257,781

38.9%

$54,093

41.1%

$344,497

44.9%

$62,855

$211,843

29.7%

$56,875

36.9%

$235,730

30.8%

$64,909

$148,960

20.9%

$59,020

25.5%

$259,200

53.2%

$37,362

$136,800

30.5%

$33,423

44.1%

$220,000

43.7%

$38,220

$150,000

32.3%

$34,255

36.2%

$80,000

17.3%

$33,111

$47,000

10.6%

$30,680

14.4%

$791,500

125.9%

$44,460

$544,444

93.9%

$39,715

104.6%

$189,900

26.0%

$54,782

$80,709

11.5%

$51,103

21.7%

20 18

The Residential Real Estate Council

crs.com

Jan Feb

GET SMA As smart technology enters the real estate scene, REALTORS® need knowledge to adequately assist buyers and sellers By Megan Craig



What was once a futuristic dream is now a reality: Smart homes are increasingly part of the buying and selling landscape. In fact, 81 percent of buyers say they’re more likely to buy a home with smart technologies already in place, according to the 2016 Coldwell Banker Real Estate Smart Home Buyer Marketplace Survey. But what exactly is a “smart home”? That question came up so often among agents that in 2016, Coldwell Banker teamed up with online consumer technology news site CNET to create an official definition: “A home that is equipped with network-connected products (aka “smart products,” connected via Wi-Fi, Bluetooth or

Jan Feb

The Residential Specialist trsmag.com

20 18

dwelling

points

[feature]

ART similar protocols) for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home itself.” The definition also requires a property to have either ÄÄ a smart security feature (like smart locks or cameras), or ÄÄ a smart temperature feature (smart thermostat), and ÄÄ a reliable internet connection, and at least two more smart features: ÄÄ lighting ÄÄ fire/carbon monoxide detectors ÄÄ entertainment systems (such as smart TVs or streaming services) ÄÄ appliances ÄÄ heating/cooling system, or ÄÄ outdoor features (like watering systems)

20 18

The Residential Real Estate Council

crs.com

Jan Feb

[feature]

dwelling points

Internet connectivity

Smart thermostat

Smart lighting

Smart fan

Automated window shades Smart television Smart washer/dryer Smart fire/carbon monoxide detector

Networked security camera

Smart HVAC system Remote watering system Smart refrigerator Smart locks

WHERE’S ROSIE THE ROBOT?

Required feature Security or temperature feature (must include one)

The gadgets in today’s smartest homes would make George Jetson envious. But, according to CNET and Coldwell Banker, to truly qualify as a smart home, a house must include some combination of the features indicated. “It’s not a smart home just because it has a Nest thermostat,” says Angel Piontek, associate broker and creative director at Coldwell Banker Elite in Fredericksburg, Virginia. “This definition shows the bare minimum for what a smart home should be.”

Adding value with smart technology

A home with smart features isn’t automatically worth more money.

Jan Feb

The Residential Specialist trsmag.com

20 18

Optional feature (must include at least two)

Instead, smart technology’s value comes from added marketability of the property, says Matthew Rathbun, CRS, a broker with Coldwell Banker Elite who is helping to design the new RRC Smart Home Certification program. Smart technology can act as a differentiator to add a competitive edge to a home that could otherwise blend into the background of a crowded home market. “I would recommend someone upgrade (to smart technology)

because it’s an added benefit,” Piontek says. “When you’re looking at 10 homes that are essentially the same, you’re going to remember the one with the August (Smart) Lock.” And being able to talk intelligently about such features can set an agent apart, as well, says Chad Curry, managing director of the Center for REALTOR® Technology/ CRT Labs at the National Association of REALTORS®.

dwelling points

“It adds value to the relationship to be able to talk to consumers about this because you’re obviously trying to help them augment and improve their quality of life,” Curry says. That’s a big driver behind the Council’s new training and certification program on smart homes, designed to help agents properly identify smart home characteristics, market the homes correctly and minimize liability surrounding the newest home technologies.

[feature]

WAITING FOR THE LAW TO CATCH UP

you’re an expert in the market for this niche product.” But videos aren’t the only way an As in many areas of life, smart home technology is moving faster than the laws agent can make his governing such technology. or her knowledge Because smart homes often come equipped with high-tech security features— of smart technolincluding audio and video recording devices—interesting legal issues come into ogy known. For play when sellers allow potential buyers into their smart homes. example, RathIn many states, prior consent is required before making an audio recording of bun and Piontek someone, says Matthew Rathbun, CRS, a broker with Coldwell Banker Elite. That also have placed means a homeowner who records potential buyers without warning them that placards on each they’re being recorded may be violating federal wiretapping laws. device inside a “More practically, we don’t want sellers listening in because they’re going to smart home to get their feelings hurt by anything negative the buyer has to say about the home,” Marketing smart homes explain what the Rathbun says. for smart consumers device is and what On the flip side, potential buyers don’t want to be caught saying anything too The long-elusive definition of what it does, as well as kind about the house—“I’d pay anything for that kitchen,” for example. makes a home truly “smart” has any added benefits Rathbun recommends creating a playful sign—along the lines of “Smile! led to issues with false advertising, (like energy cost You’re on camera!”—and talking with the seller’s agent to be sure audio recording Rathbun says. Less tech-advanced savings). devices are turned off before any home showings. agents have listed homes as “smart” “Agents have only to find that the seller kept to think outside all of the technology as personal the box and do more than they’ll turnover of “digital keys” should be property when they moved. usually do when marketing a smart included as a contractual obligation “One reason agents want to home,” Piontek says. in these situations. understand it is so they don’t offend It’s easier said than done, espepeople who are serious about smart Making the transition cially for less-informed agents, technology,” he says. And those who For agents, the struggle to define Curry says. In many cases, homes know what they’re looking at can and understand smart home techwith smart features are sold, point out devices, showing buyers nology creates a second problem, and the previous owner still has the added-value item. Rathbun says: They aren’t able to access to the thermostat or the Rathbun and Piontek have colhelp buyers and sellers transition security system. laborated on videos demonstrating control of smart systems within For now, he suggests checking the devices as a way to lead people the home once a sale is final. out smarthomechecklist.com and into the home itself. Such videos “There should be a handoff. doing a walk-through with the would be done, ideally, as a walkThe listing agent should have a seller to find all the devices they’ll through of the home, Piontek list and be able to tell the seller leave behind, then emailing the says: “If you do videos, it works how to set the system to factory buyer with instructions for resetto convey your services and show default,” he says, adding that the ting each device. Because each item resets in its own way, the more devices, the more directions required to make the transition complete: “It can be a Distinguish yourself in this quickly evolving area with Professional Certification from the Residenpretty sticky wicket,” Curry says. tial Real Estate Council. RRC Smart Home Certification helps demonstrate to buyers and sellers that you dedicated yourself to developing expertise about the technology, privacy issues and best Megan Craig is a freelance writer based in transition tactics employed to help them with their smart home sale. Obtaining training and certiChicago. fication not only increases your technical and listing skills, it enhances the value you offer to the Meet your Designation Maintenance clients you represent by equipping you with the skills and tools to help you properly identify what Requirement today! Read this article and qualifies as a smart home and advise them on how to properly value the technology. “TTFN, FSBO” on p. 12, take a 10-question

NEW Smart Home Certification

Learn more about our Smart Home Certification at CRS.com/smart-home-certification.

quiz and earn 2 credits. Go to CRS.com/ trs-quiz to get started.

20 18

The Residential Real Estate Council

crs.com

Jan Feb

resources for learning & leisure

GOOD READS

OLD DOG SEEKS

new tricks

Fixated on success metrics we see in the media, we forget that what truly matters is how we define a successful life. By Allan Fallow



A man named Barker might be excused for writing a paean to doggedness. Instead, the first-time author’s new Barking Up the Wrong Tree is BARKING UP THE a commonsense WRONG TREE: guide that urges The Surprising Science us to abandon the Behind Why Everything success strategies You Know about Success that aren’t working Is (Mostly) Wrong for us. Presenting by Eric Barker scores of fascinating Harper One, 307 pages $ case studies (from 26.99 Genghis Khan and Albert Einstein to Ted Williams and Spider-Man), and drawing lessons from each that we can put into daily practice, Barker has produced a business book that

Jan Feb

The Residential Specialist trsmag.com

20 18

for once merits its dust-jacket hype: things you were taunted for in Barking Up the Wrong Tree will school … ultimately grant you an indeed help you understand “what unbeatable advantage”? That’s how works and what doesn’t so you can Barker frames his exploration of stop guessing at success and start “intensifiers,” or personality traits living the life you want.” that are negative in some contexts Many of the truisms we’ve been (mania in real life, for example), but fed about career success, writes necessary for success in certain Barker, are “logical, earnest—and others (the mania to prevail in downright wrong.” He acts as our cycling’s nonstop Race Across buoyant, myth-busting guide, here America). High achievers who color to help us learn “what separates the within the lines—class valedictoextremely successful from the rest rians, say—typically go on not to of us, what we can do to be more shake up the system, but to settle like them, and why in some cases down inside it. The true standouts it’s good that we aren’t.” And if later in life are often those who that’s not just the tonic to stop you indulged their early passion to from hoeing a fruitless row, I don’t master a single, highly specialized know my drink recipes. skill. How else to explain the study revealing that the average GPA of Movers and shakers 700 American millionaires was 2.9? When are our weaknesses actuIn a bracing section entitled “Do ally strengths? And when do “the Nice Guys Finish Last?” Barker

shakes the branches of Wrong Tree to unleash a cascade of unpleasant truths: ÄÄPushy people get bigger raises. ÄAss-kissers Ä thrive. ÄActing Ä like a jerk “makes others see you as more powerful.” ÄAppearances Ä trump truth—that is, deftly managing your boss’s impression of you outweighs actual hard work. ÄÄMen who score low in “agreeableness” earn up to $10,000 more per annum than those with an excess of the stuff. The less-cynical side of that coin, writes Barker, is that most people long to balance their ambition with their conscience: They want to get ahead and sleep soundly at night. Individuals in this group, Barker recommends, can always borrow a page or two from The Jerkwad Playbook itself: “Jerks aren’t afraid to push a little,” he points out. “They self-promote. They negotiate. They make themselves visible.” Hmm, maybe you should too? After all, even the best boss can reward hard work only when he’s aware it has occurred. Barker offers us a bulletproof formula to ensure that happens: Every Friday send your boss an email summarizing your accomplishments for the week—nothing fancy, but quickly relating the good work you’re doing. You might think they know what you’re up to, but they’re busy. They have their own problems. They’ll appreciate it and begin to associate you with the good things they’re hearing (from you, of course). When it’s time to negotiate for a raise (or to refresh your résumé), you can just review the emails for a reminder of why you’re such a good employee.

The key to success

Given the title of Barker’s book, it’s no surprise that he devotes substantial real estate to the question

of “grit or quit”: When is the best time to redouble your efforts toward a goal? And when should you simply throw in the towel? In this corner, grit: Success is often a straightforward function of good old-fashioned positivity: “Research shows that salespeople can be hired based on optimism alone. Researchers found that agents who scored in the top 10 percent of optimism sold 88 percent more than the most pessimistic tenth.’” And in this corner, quit: Sometimes it’s “the smartest choice,” argues Barker, with equally high potential to make you a “huge success.” Experiment widely, maximize the number of chances you take on unproven product ideas and business ventures, and cultivate all manner of “little bets” that you can parlay into big payoffs. Hey, it worked for Google, which began as a way to organize library-book searches; for eBay, which originally focused on selling PEZ dispensers; and for YouTube, which “started as a dating site, of all things.” Barker, a former Hollywood screenwriter with an MFA from UCLA and an MBA from Boston College, has produced a success primer that doubles as an engaging literary read. (The book’s later chapters do an equally compelling job of deconstructing of-the-moment notions such as “non-sleazy” networking, sales confidence and work-life balance.) Yet the author never loses sight of his ultimate goal, which is nothing less than divining the elements of a successful life: “Career success doesn’t always make us happy,” Barker concludes, “but the research shows that happiness does bring success.” And that’s no shaggy-dog story.

YO U M I G H T A L S O L I K E …

THE POWER OF MOMENTS by Chip Heath and Dan Heath [Simon & Schuster] 320 pages $ 17.72/hardcover New York Times bestselling authors explore how brief experiences can change us and how you can create extraordinary moments in your life. BUILDING A STORYBRAND by Donald Miller [HarperCollins Leadership] 240 pages $ 18.81/hardcover Learn how the power of storytelling will transform how you connect with customers and grow your business. ENTREPRENEURIAL YOU by Dorie Clark [Harvard Business Review Press] 272 pages $ 17.89/hardcover Learn from some of the most successful entrepreneurs to build your portfolio and create the career you want. INSIDE THE LOST MUSEUM by Steven Lubar [Harvard University Press] 416 pages $ 28.10/hardcover How do museum curators work? Lubar looks behind the scenes at how art and artifacts are collected, preserved and displayed.

Allan Fallow is a freelance writer in Alexandria, Virginia. Follow him @thefallow.

20 18

The Residential Real Estate Council

crs.com

Jan Feb

STR ANGE TRUTHS

resources for learning & leisure

DOCUMENTARIES

to devour 

As the saying goes, truth is stranger than fiction, and while it’s nice to lose yourself in a movie, sometimes the best ones are based on reality. The following documentaries deal in diverse subject matter, but all tell tales of actual events and phenomenon in ways that make it hard to look away.

Nature: Into the Inferno

A Netflix original, documentary master Werner Herzog teams up with volcanologist Clive Oppenheimer to take a deep look at volcanoes. There is science, of course, but the team’s travels, which take them from Indonesia to Ethiopia and even North Korea, are focused more on the “magical” relationship humans have with these powerful, destructive natural forces. Herzog, in his distinctive narrative style, says that “it’s hard to take your eyes off the fire that burns deep under our feet”—and it’s hard to take your eyes off this beautiful documentary.

Health: What the Health

The Residential Specialist trsmag.com

Sports: Last Chance U

Another Netflix docu-series, “Last Chance U” focuses on the football team at East Mississippi Community College, a junior college with a leading football program. Players end up at EMCC for a variety of reasons. Some don’t qualify for Division I rosters due to academic or disciplinary issues, while others were initially unsuccessful in their Division I athletic endeavors. Playing at the junior college level—and getting noticed by a scout—is their last chance to advance to a Division I program. Seasons 1 and 2 follow the EMCC Lions as they vie for the national junior college title. The documentary affords viewers an intimate look at the players and their struggles, as well as the coaches and advisors who try to influence them.

History: Five Came Back

Based on the book of the same name, “Five Came Back” is a three-part miniseries chronicling how five Hollywood directors—Frank Capra, George Stevens, John Ford, John Huston and William Wyler—shipped out to shoot films for the War Department during World War II. The series combines commentary and insights on the directors from the likes of Francis Ford Coppola, Guillermo del Toro, Paul Greengrass and Steven Spielberg, with archived interviews given by the directors themselves. With narration by Meryl Streep and interspersed clips of the directors’ original footage, it’s no wonder this documentary received critical acclaim.

Heart disease, cancer and diabetes are among the leading causes of death in America. In “What the Health,” director Kip Andersen searches for answers to preventing and reversing chronic diseases. In so doing, he exposes efforts by the government and big business to block the dissemination of vital health information to consumers. Though controversial at times, the documentary gives viewers food for thought about what they are putting into their bodies.

Jan Feb

20 18

inside

RRC news from the council

HERE COMES the

chief

Widely admired, a longtime volunteer becomes RRC president



In an evening filled with laughs, words of admiration and celebration, Gary Williams, CRS, was sworn in as the 2018 President of the Council. Williams is a longtime volunteer with the Council, starting with his state chapter in the late 1990s when he became a CRS, and then moving to regional vice president and the national board. He is a sales agent with Coldwell Banker Burnet Realty in Edina, Minnesota. Williams was also named CRS of the Year in 2007 and won the Medallion Award in 2013. His sons offered touching and funny anecdotes of Williams, whose entire family was on hand to witness his installation, while colleagues in the Edina area spoke of his kindness and professionalism. Other 2018 national officers were also installed, and Michael Burkhard, CRS, moved to president elect, and Richard Waystack, CRS, was sworn in as the first vice president. President Elect Michael Burkhard has been a REALTOR® since 1982. He is a managing broker at Bray Real Estate in Grand Junction, Colorado,

and is a past president of the Colorado RRC and the past MLS chairman of the Grand Junction Area REALTOR® Association. Burkhard was named CRS of the Year in 2010. Richard Waystack is a broker associate with Jack Conway REALTOR® in Harrwich Port, Massachusetts. Waystack received CRS of the Year in 2013 and recently celebrated more than two decades as a CRS Designee. He most recently received the Massachusetts Association of REALTORS® Good Neighbor Award for his 100-mile walk across Cape Cod to combat homelessness. The 2018 board also includes Shawn Cunningham, CRS, broker associate, RE/MAX Advantage in Las Vegas; Yolanda Lowe, CRS, sales agent, Berkshire Hathaway Home Services New England Properties, Essex, Connecticut; Stephen Stewart, CRS, broker associate with Edina Realty in Edina, Minnesota; Jen Ward, CRS, REALTOR®, Cummings & Co. REALTORS®, Lutherville, Minnesota; Lana Vukovljak, RRC CEO; and Vinnie Tracey, CRS, VP, United Trading LLC, Denver.

20 18

The Residential Real Estate Council

Top, John Smaby, the 2018 National Association of REALTORS® president-elect, swears in Gary Williams, CRS, as the 2018 Residential Real Estate Council president. Above, Leigh Brown, CRS, 2017 RRC president, passes the gavel to Gary Williams, CRS, as he is sworn in as the 2018 RRC president.

crs.com

Jan Feb

inside

RRC news from the council

From top left: Holli Woodward, CRS, Sandy Borman, CRS, and Tricia Nekota, CRS; Jackie Leavenworth, CRS and RRC Certified Instructor, plays guitar with a group of CRSs during the Annual Meetings in Chicago; 2018 Regional Vice Presidents; 2018 State RRC presidents; Gary Williams, CRS, and Steve Stewart, CRS, joke that they are similar to Statler and Waldorf, the notoriously cantankerous Muppet hecklers.

Jan Feb

The Residential Specialist trsmag.com

20 18

From left, Kim Cameron, CRS, and Leigh Brown, CRS; Leigh Brown, CRS, and Mark Shepherd, CRS; and Leigh Brown, CRS, and Frank Serio, CRS

THE PRESIDENT’S AWARD GOES TO… The President’s Award is an honor given to individuals who have gone above and beyond in their service to the Council. The three awardees were honored during the Council’s inaugural and awards ceremony during the National Association of REALTORS® Conference and Expo.

“He is the reason I applied to become the president of RRC,” Brown says. “Frank believed in me before I saw the role as a possibility. He has a gift for finding those who have something to give—and then finding a way for them to shine. We need more folks like Frank who are focused on service above self.” Quarter Page Ad 717.pdf

Kim Cameron, CRS, broker associate with Better Homes and Gardens, runs a successful real estate team in St. Louis, Missouri. She earned her designation in 2008 and has held several RRC leadership positions, including 2017 Regional Vice President and 2014 President of Missouri RRC. She received numerous accolades and awards, including 2014 REALTOR® of the Year by the St. Louis Association of REALTORS®. “This year, Kim has been an amazing leader who has channeled her energy into building up our members (new leaders, those grumbling on Facebook, students), all with a cheerful smile and a helpful answer,” Brown says. “She’s the bright light that we need in the room, and it’s an honor to see her growth and her desire to help others!” C

Mark Shepherd, CRS, managing broker at Windermere Real Estate in Layton, Utah, was a member of the RRC 2017 Board of Directors. He has twice served as a regional vice president. Earning his CRS Designation in 2006, he is a past president of the Northern Wasatch Association of REALTORS® and serves as mayor of Clearfield City. “He exemplifies what it means to be a great leader from the inside out. Integrity is not a catch phrase for him, it’s who he is,” Brown says. “He serves with creativity, honor, honesty and intelligence in his family life, in his political life and in the Council. He’s proof that good men are not that hard to find—especially in the Council, where we are lucky to have him share his talents.” Frank Serio, CRS, broker/owner at the Lucido Agency Keller Williams Delaware Beaches, in Bethany Beach, Delaware, has served on the Council’s board of directors, including serving as RRC president in 2011. He is also a Certified RRC instructor and is the author of two new RRC classes.

CMY

7/19/17

7:47 PM

learn

from the

BEST strategies from the industry’s top educators

ON THE

double

Double your sales by mining your database



Do you want to double your sales next year? You can! All you need is a goal, a plan and the tools to mine your sphere of influence. Owning your sphere is the most fruitful way to generate leads, increase your sales and decrease wasteful marketing dollars you spend on campaigns that don’t pay off. Here’s how to do it.

1 Build your inventory.

RRC INSTRUCTOR

That means creating a goal for the number of listings you want at any time, and then a system for achieving that goal. I called my system “Listings by the Dozen” (though to be honest, it was Listings by the Half-Dozen when I started, but that doesn’t have the same ring to it). At any given time I committed to having 12 saleable listings in my inventory, or my business is not on track. So as the listings sold, I had to replace them. Whenever my inventory fell to under 12, I had to intentionally go out and do what was necessary to meet my quota. Yes, that included the dreaded expired and FSBO listing opportunities! Over time, intentionally grow your quota to a new level—but remember, your systems will have to change as you grow because it takes more work to handle 18 or 24 listings than 12. The simple breakdown: Get the salable listings. Update your systems. Sell and replace them, then increase your quota.

2 Jackie Leavenworth is an RRC Certified Instructor and owner of Jackie Leavenworth Seminars. Licensed in 1984, she quickly became a top producer and has been sharing her secrets for the past 25 years. You can find her at CoachJackie.com.

Jan Feb

Reverse your business plan. Figure out how much you need to sell to make your life and business happen—to pay your bills and monetize your dreams, like paying for college or buying a second home (remember to include your taxes in your income goal). Determine how many sides you need to make that amount of income, then determine the sources of those sides, so your marketing is laser-focused.

The Residential Specialist trsmag.com

20 18

For example, let’s say you need 40 sides. So look at where your sales came from in the past three years. Here’s an example: ÄYour Ä sphere = 70 percent or 28 sales ÄÄOnline presence = 5 percent or 2 sales ÄÄOpen houses = 10 percent or 4 sales ÄAny Ä niche = 10 percent or 4 sales ÄÄOther = 5 percent or 2 sales (walk-ins, sign calls, etc. … this source is accidental income) Now you have a plan, so just work the plan and allocate your marketing resources accordingly.

3 Own your sphere.

Step 1: Have a database. If you don’t have the people who know your face and name in Excel or a CRM, then stop reading and do that now. Step 2: Determine the potential of your sphere. According to the U.S. Census, the mover rate is 11.2 percent of the population. That’s individuals, not families. Assume 4–5 percent of families move, so if you have 150–200 in a database, then 7–10 of those families move each year. Step 3: Determine your “Favorite 50.” These are people who you would enjoy talking to over the phone. Make sure you interact and engage with these people via phone calls, note cards and personal visits. Four phone calls and four notecards a week would be eight touches a year. What do you say to them? Just ask a lot of questions—it’s all about them. Step 4: Craft a touch plan for your whole database, including your favorite 50. Create schedules to send postcards, put these people on your email drip campaigns and with their permission, sign them up for MLS alerts about homes selling in their neighborhoods. Interaction with your favorite 50 is key. Make sure the information you share with your database is relevant and interesting. Systemized, compassionate interaction is the key to a successful real estate business.

RRC

connect

YOUR RRC

network

PACIFIC

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

Nancy D. Metcalf, CRS REALTOR®, Vice President

Luxury Property Specialist RB-16599

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



In summer 2015, I had clients who not only wanted to sell their condo in the Pearl District of Portland, but were planning a move to Richmond, Virginia, for a lifestyle change and so the wife could pursue school. The husband, who is an architect, and his family wanted to find a detached home in a historic area that they could design and fix up themselves. Searching through the RRC database, I came across Andrea Levine. Her website indicated that she also rehabbed historic homes and was familiar with those neighborhoods. I put them in touch with each other, and my clients found the perfect home. A couple of months later, I had the opportunity to go to Richmond and caught up with them early in the construction process. Just six weeks ago, I was back in Richmond for an industry event and got to see even more progress. They love Richmond and their new home. Kathleen O’Donnell, O’Donnell Group Realty, Portland, Oregon

WEST

PACIFIC

MAUI Real Estate

A trusted name on the Monterey Peninsula for nearly 50 years! Terry McGowan CRS, GRI, ABR, SRS, e-Pro, SRES Cal DRE# 01126129

808-385-2918 jofoxxe@gmail.com

CRS, GRI, SRES e-pro Maui CRS director

WEST

CALIFORNIA’S MONTEREY PENINSULA

www.JoanneFoxxe.com

Joanne Foxxe

expand your network

Sotheby’s International Realty 831-236-7251 terry.mcgowan@sothebyshomes.com www.terrymcgowan.com

Specializing in helping You reach Your Real Estate goals since 1991!

WEST

WEST COLORADO

COLORADO SPRINGS Joe Clement CRB, CRS, ABR, QSC, CLHMS (Certified Luxury Home Marketing Specialist)

www.TheClementGroup.com joe.clement@wesellmore.net

Joan M. Pratt

MS, CRS, CLHMS, CDPE, CARI

719-499-5000

DenverMetroReferrals.com

720-506-3001

Joey Clement

RE/MAX Professionals

CRS, ABR, CDPE

“Elevate Your Expectations”

www.HomesInSD.com joey@homesinsd.com

« « « « « Voted Five Star Agent for Overall Satisfaction for 6 Straight Years!

858-922-4546

SAN DIEGO 20 18

The Residential Real Estate Council

crs.com

Jan Feb

RRC

connect

RRC CLASSROOM COURSES expand your network Jan. 16—San Antonio, Texas Succeeding in the Luxury Market [San Antonio Board of REALTORS®] 210-593-1200, ext. 108

Instructor: Gee Dunsten, CRS

RRC classroom courses earn either eight credits (for one-day courses) or 16 credits (for two-day courses) toward the CRS Designation. At press time, the RRC courses listed below were scheduled for 2018. For more up-to-date listings, visit crs.com/ education-catalog.

Jan. 18—Honolulu, Hawaii Mastering Your Time to Achieve Your Goals [Hawaii Association of REALTORS®]

Jan. 22—Miami, Florida Converting Leads Into Closings [Miami Association of REALTORS®]

808-393-0991

Instructor: Mike Selvaggio, CRS

Jan. 17–18—San Antonio, Texas Listing Strategies for the Residential Specialist [San Antonio Board of REALTORS®]

Jan. 19—Fort Pierce, Florida How Technology Can Ruin Your Real Estate Business [Florida RRC]

210-593-1200, ext. 108

Instructor: Gee Dunsten, CRS

305-486-7066

Jan. 23—Sunrise, Florida Converting Leads Into Closings [Miami Association of REALTORS®] 305-468-7066

Instructor: Mike Selvaggio, CRS

305-469-1669

Instructor: Craig Grant

WEST

Selling Lake Tahoe Since 1989 tural Resources Na ”

Over $800 million in Tahoe Sales

“One of Lake T

ah o

e’s

t. c o m

ai g

Z a ger | l a k

et a

Seattle & the ‘Burb’s

BEN & CAROLE HEINRICH

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

Local real estate experts in Carmel, Carmel Valley, Pebble Beach, Big Sur, Monterey & Pacific Grove for over 30 years.

oe ag en

PACIFIC NORTHWEST

Barb Avery

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

RE/MAX Northwest Realtors Carole, CRS, CFP® Ben, CRS & CRB RSPS & SRES CRS NorCal chapter past president

www.TheHeinrichTeam.com 831.626.2434 Team@TheHeinrichTeam.com

SOUTH

941.356.0437

DebraPitell-Hauge@michaelsaunders.com SarasotaHomes4Sale.com 440 Gulf of Mexico Dr | Longboat Key, FL 34228 941.383.7591 | michaelsaunders.com

The Residential Specialist trsmag.com

20 18

SeattleSuburbs@yahoo.com www.SeattleSuburbs.com

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

MID-ATLANTIC

Luxury waterfront specialist serving Longboat Key & Sarasota, FL for 35 years

Jan Feb

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

Reach more than

30,000

Jan. 23—Southfield, Michigan 7 Things Successful Agents Do Differently [Greater Metropolitan Association of REALTORS®]

Jan. 24–25—New York City RRC Learning Labs at Inman [Residential Real Estate Council]

248-478-1700

312-321-4400

Jan. 23—Lac du Flambeau, Wisconsin 7 Things Successful Agents Do Differently [Wisconsin REALTORS® Association/ Wisconsin RRC]

Jan. 29—Upper Marlboro, Maryland Win-Win Negotiation Techniques [Maryland/DC RRC]

Instructor: Pat Zaby, CRS

CRS peers with your ad here. Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127

Instructor: Dale Carlton, CRS

Feb. 1—Little Rock, Arkansas Mastering Your Time to Achieve Your Goals [Arkansas REALTORS® Association]

443-614-3901

Instructor: Gee Dunsten, CRS

800-279-1972

Instructor: Chandra Hall, CRS Jan. 24—Orlando, Florida Building a Team to Grow Your Business [Florida RRC]

501-225-2020

Jan. 30–31—Naples, Florida Buying and Selling Income Properties [Naples Area Board of REALTORS®/Florida RRC] 239-597-1666

Instructor: Pat Zaby, CRS

305-469-1669

Instructor: Mark Given, CRS Feb. 4—Dallas, Texas Transforming Difficult Situations into Profitable Deals [Sell-a-bration®/Residential Real Estate Council] 312-321-4400

Instructor: Mike Selvaggio, CRS

Instructor: Mike Selvaggio, CRS Continued on page 44 }

MID-ATLANTIC

BB oo oo kk N N oo w w

MID-ATLANTIC

NORTHERN VIRGINIA BB oo oo kk N N oo w w

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Choose Choosefrom from more morethan than11 11 CRS CRSand andNinja Ninja classes! classes!

Fairfax • Alexandria • Manassas Woodbridge • Bristow • Stafford

Brad Choose Choose from from Kirkendall

Choose from Choose Choosefrom from more than 11 more morethan than11 11 CRS and Ninja CRS CRSand andNinja Ninja classes! classes! classes! Mike Mike Selvaggio Mike Selvaggio Selvaggio

CRS, CNE more more than than 11 11 25+ years real estate expertise CRS CRS571.262.1900 and and Ninja Ninja @ Brad NovaEliteRealty.com classes! classes! www.NovaEliteRealty.com

Mike Mike MikeSelvaggio Selvaggio Selvaggio Selvaggio Mike Mike Selvaggio

Mike Mike Selvaggio Selvaggio Treating your referrals 00 MikeMyCoach.com MikeMyCoach.com MikeMyCoach.com -5 -5559900 MikeMyCoach.com -5 -5555599990000 MikeMyCoach.com MikeMyCoach.com -55599knowledge MikeMyCoach.com -5 -5 4 4 4 4 44-5 4 4 with integrity, 8 8 8 8 8 8 5 5 5 5 5 5 ) ) ) ) ) ) ) ) 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 (3 (3 (3 (3 5588 Mike@Selvaggio.com Mike@Selvaggio.com Mike@Selvaggio.com (3 Mike@Selvaggio.com Mike@Selvaggio.com Mike@Selvaggio.com (3 Mike@Selvaggio.com Mike@Selvaggio.com Mike@Selvaggio.com (3 (3 Mike@Selvaggio.com Mike@Selvaggio.com and professionalism ellleeeaaa e e lleeaa lleleea leelle eaaaa ille hhhiiilllee hhhihiliile hhiille FFF

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CCIM, CCIM, CCIM, CRS CRS CCIM, CCIM, CCIM,CRS CRS CRS CRS

CANADA

Serving Central Connecticut

Your referral source

Top 3% Nationally

for the greater

Pittsburgh

Top Producing Realtor for Over 30 Years

area

Felix DuVerger ABR, CRS, GRI

I help clients make the Wright move

2790 Main Street Glastonbury CT 06033

Nancy Wright, ABR, CRS, GRI

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

Facebook “f ” Logo

CMYK / .eps

Facebook “f ” Logo

860-652-4521 CMYK / .eps

@felixduvergerrealtor

@felixduverger_realtor

20 18

The Residential Real Estate Council

crs.com

Jan Feb

RRC

connect

RRC CLASSROOM COURSES

expand your network

Feb. 4 — Dallas, Texas How Technology Can Ruin Your Real Estate Business [Sell-a-bration®/Residential Real Estate Council]

Feb. 19—Baxter, Minnesota Mastering Relevant Consumer-Focused Marketing [Greater Lakes Association of REALTORS®]

312-321-4400

218-828-4567

Feb. 8–9—Memphis, Tennessee Listing Strategies for the Residential Specialist [Clarksville Association of REALTORS®/ Tennessee RRC]

Feb. 21—Edina, Minnesota Zero to 60 Home Sales a Year (and Beyond) [Minnesota RRC]

901-818-2421

Instructor: Frank Serio, CRS

Instructor: Craig Grant

Instructor: Frank Serio, CRS

Instructor: Mark Given, CRS Feb. 8–9—Colorado Springs, Colorado Listing Strategies for the Residential Specialist [Pikes Peak Association of REALTORS®] 719-633-7718, ext. 113

Instructor: Rich Sands, CRS

Feb. 13—South River, New Jersey Converting Leads Into Closings [Metro Centre Association of REALTORS®]

612-483-8438

Feb. 19–20—Kissimmee, Florida Business Planning and Marketing for the Residential Specialist [Osceola County Association of REALTORS®] 407-846-0117

Instructor: Mark Given, CRS Feb. 21–22—Denver, Colorado Technologies to Advance Your Business [Denver Metro Association of REALTORS®] 303-756-0553

732-442-3400, ext. 103

Instructor: Rich Sands

Feb. 13–14—Raleigh, North Carolina Technologies to Advance Your Business [North Carolina RRC]

Feb. 22—Edina, Minnesota Zero to 60 Home Sales a Year (and Beyond) [Minnesota RRC]

704-877-9063

612-483-8438

Feb. 13–14—Brentwood, Tennessee Business Planning and Marketing for the Residential Specialist [Williamson County Association of REALTORS®]

Feb. 26–27—Scottsdale, Arizona Building an Exceptional Customer Service Referral Business [Arizona RRC]

615-771-6845

520-382-8776

Feb. 16—Mufreesboro, Tennessee 7 Things Successful Agents Do Differently [Middle Tennessee Association of REALTORS®]

Feb. 28—Manhattan, Kansas Win-Win Negotiation Techniques [Kansas RRC]

615-893-2242

913-266-5635

Instructor: Mike Selvaggio, CRS

Instructor: Monica Neubauer, CRS

Instructor: Chandra Hall, CRS

Instructor: Dale Carlton, CRS

Jan Feb

The Residential Specialist trsmag.com

Instructor: Frank Serio, CRS

Instructor: Dale Carlton, CRS

20 18

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. RRC 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 RRC members.

your *

home J A N / F E B 2 018

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

THE COLORS OF 2018 

A new year, a new color. Each year, paint companies name a new color their color of the year, capturing what they see as the trendiest colors on the horizon. Here are the new year’s fresh, new colors, according to leading industry brands:

Caliente (AF-290) is Benjamin Moore’s color for 2018. This deep red is radiant and lush, and will stand out in any space. The bold hue pairs best with neutrals and other bright hues, such as pink, peachy tones. It will work great as an accent color, or to liven up a plain gallery wall or drab staircase.

GLIDDEN has named Deep Onyx (00NN 07/000)—or classic black—as its color of the year. This favorite neutral may not be right for an entire room, but it’s perfect for an accent wall. Pairing this bold choice with crisp whites, metallics and neutral fixtures and furniture will create a beautiful modern, minimalist look.

Sherwin Williams’ Oceanside (SW 6496) is destined to be a favorite this year. The rich, blue-green shade will make a bold statement outfitting an entire room, or serve as the perfect pop of accent color for a specific item, such as a front door or a piece of old furniture.

Behr’s In the Moment (T18-15) will help calm the senses in the upcoming year. The cool blue hue will evoke a serene, relaxing vibe in virtually any space. Plus, the versatile color pairs well with crisp whites, neutrals and darker fixtures and furniture, making it easy to add decor.

5 THINGS BUYERS SHOULD NEVER COMPROMISE ON

When buying a home, there are some things you should never compromise on—or you’ll likely regret your home purchase, according to Realtor.com.

The floor plan. It’s difficult and expensive to reconfigure a home’s floor plan. If a home doesn’t have the minimum number of rooms or the flow of the main living areas you want, you should cross it off your list.

The school district. You should carefully consider your neighborhood’s school district, and even get a map of its exact boundaries to make sure your home is within the correct district.

The neighbors. You should pay attention to the condition of neighboring homes. Not only do you have to live with your neighbors on a daily basis, but they can affect your home’s future resale value, too.

The budget. Consider all the expenses—monthly mortgage payments, homeowner association dues, utility costs and real estate taxes—beyond the list price to make sure you’ll be financially comfortable.

The commute. Test-drive the route between your home and office to be certain you’re willing to make the commute every day.

BROUGH T T O Y OU B Y Y OUR A GEN T, A MEMBER OF T HE RE SIDEN T I A L RE A L E S TAT E C OUNCIL

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

LITTLE THINGS MEAN a ➊

➋

➌



Increasing the ➊ Low-maintenance lawn care: Overvalue of your grown lawns and bushes will cause your home home before putting to stand out—in a bad way. For a few hundred it on the market is dollars, hire a landscaping service to tidy up. important, and your Adding plants and trees native to your region budget shouldn’t hold will also help boost the home’s curb appeal. you back. Here are a few, simple tips to ➋ Deep house cleaning: Make sure your improve the look and home says “clean” to potential buyers when they feel of your home fast— walk in the door. Even if you clean your home all for under $400: regularly, hire a cleaning service for a thorough top-to-bottom scrubbing. ➌ Make your home feel bigger: You can’t change the square-footage of your home, but you can make each room in your house feel larger. A sunny room feels more open—replace heavy drapes with vertical blinds or shutters.

SAY YES TO CRS

lot

➍

➎

Also, clear the clutter. Add shelving or storage space to help organize. ➍ Replace and update: Dated wallpaper, old lighting fixtures, popcorn ceilings and broken features, such as ceiling fans, could turn many buyers away. Making these changes will add dollar signs to the value of your home instantly. ➎ Add money-saving efficiencies: Updates to make your home more energy-efficient are a big bonus for buyers because it will save them money in the long term. Many utility companies provide free energy audits so they can show you how to maximize the energy efficiency of your home. Installing a water filtration system is an inexpensive addition that will also lower the buyer’s grocery bills—no more bottled water.

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.

NEW COUNCIL BENEFIT FREE MOBILE CRM AND NETWORKING APP FOR ALL CRS DESIGNEES RRC & Agentdesks have teamed up to offer CRS Designees this exclusive new member benefit. Agentdesks has developed a unique mobile-first communications platform designed specifically for top-performing REALTORS®. And now this free RRC member benefit has been exclusively customized for CRS Designees:

• Send & track referrals for free • Complimentary use of DocuSign® inside the app • Exclusive CRS groups set up for every county • Broadcast buyer needs and both MLS and off-market listings • Mobile first CRM and messaging tool • Set up automated follow-ups and engaging on-time MLS property alerts

Download Agentdesks exciting new mobile app FOR FREE ($180.00 Value)

GET IT TODAY!

Download the Agentdesks app at the Apple App Store or on Google Play

ask a

CRS advice from your peers

S TA G E F R I G H T

What is your opinion on having a home staged? Do you pay for it or do you ask your client to pay for it? Is it worth the investment?

I’ve started offering. I have an inventory of items that cost me about $3,000. It makes all the difference in a vacant house. Perks up a home with an older look. It’s my value-added service I provide to clients. Wayfair is the best place to shop for furniture (and you get a business discount) and Home Goods, Marshall’s and TJ Maxx for accessory items. Nancy Heisel, CRS, Real Living at Home, Arlington, Virginia I have two sofas, a love seat, coffee and end tables, accent chairs, kitchen table, dining table, chairs, desk, master furniture, outdoor benches, etc. I also have tons of greenery, decor, wall art, mirrors, etc. … There are staging services in our area that charge $1,500 to $1,800 a month for what I am able to do for my clients as an added service … If the house is occupied, I have them sign something that states the items are not to be used daily and they are responsible for replacement if damaged or ruined. Cindy Rodgers, CRS, Chinowth and Cohen REALTORS®, Tulsa, Oklahoma

I offer a complimentary staging consultation. However, I also have a small inventory of items that I use at no charge to the seller. Lea Scrima, Keller Williams Realty Boise, Meridian, Idaho

I am in a military market and most owners can’t afford high-end staging. Out near the beach and coast you see more of it. Joy Beth Jones, CRS, BlueCoast Realty, Jacksonville, North Carolina

For the most part we sell homes under $250,000 here in Myrtle Beach. Most of those properties, if they are in decent condition, do not last more than 30 days before going under contract, so I don’t offer or even bother doing staging. If it was a unique property that was high-end, then it might work well, but not normally in my market. Jeremy Blanton, CRS, RE/MAX Southern Shores, Myrtle Beach, South Carolina Have a great story to share? Email social@ crs.com or look for discussions happening online at our Facebook, Instagram, LinkedIn and Twitter pages.

Jan Feb

The Residential Specialist trsmag.com

20 18

I have some investors who rehab homes. They stage all the homes when they put them on the market. On regular listings, the owners do not usually stage their homes. Rick Irving, CRS, My Texas Home Real Estate, Fort Worth, Texas

Staging sells homes! My clients pay for it. Shirley Tenger, CRS, Berkshire Hathaway HomeServices, Monarch Beach, California

I provide three hours free. I wind up spending about $350 to $450 usually. This normally helps if I need backup on painting! Kathryn Hoffman, CRS, Ryan Hill Realty, Naperville, Illinois Staging is very important in our market. Sellers pay for it and it’s worth every penny. Patrick Lowell, CRS, Zephyr Real Estate, San Francisco, California

A local consignment store has both new and used furniture. They sell the pieces, then buy back for half price and you can keep them as long as you need. They deliver and pick up. Less expensive than hiring a stager or owning. It’s too expensive to buy, store and move staging furniture on my own. Beth Brockette, CRS, Ruhl & Ruhl REALTORS®, Cedar Rapids, Iowa

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

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

Ask about our

Home Inspection Packages!

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

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

800-294-5591 *Services vary by location.

pillartopost.com/radon