First
July / Augu s t 2 0 1 2
THE RESIDENTIAL SPECIALIST â–
Rate
J U LY / A U G U S T 2 0 1 2
How online agent ratings have changed the game Lessons From the Downturn Buying and Selling Homes As-Is Remodeling and Design Trends
Sandra Mathewson, CRS
THE POWER OF PROFESSIONALISM
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THE HOME OF HOME INSPECTION速
residential The
S pecia li s t
July/August 2012 VOL. 11, NO. 4
28
32 features
20 Seeing Stars
By Rebecca Scherr Garnering positive online ratings can be the next best thing to a referral. CRSs share their strategies for how to weather a negative review and how to shine.
25 Fix It or Nix It?
By Gwen Moran Selling properties as-is requires a different mindset for agents — and their clients.
28 Changing Rooms
By Regina Ludes Today’s home redesign trends reflect the realities of the economy — and a desire to live well now and in the future.
w w w . c r s . c o m Cover photo by Joy Strotz
32 Down but Not Out
By Daniel Rome Levine How did the boom-and-bust cycle change the way CRSs view the housing market — and their outlook on the profession? www.crs.com | 1
residential The
S pecia li s t
14 6
inside CRS departments 4 PRESIDEN T ’S MESSAGE 6 Q UICK TAKES By Mark Minchew, CRS
Home insurance stats; housing market outlook; agent income figures; and more
10 GREAT FINDS 12 TECHNOLO GY
Stay cool on the road
FROM 38 NEWS THE COUNCIL REALTOR® Conference & Expo Ethics Training CRS “30 Under 30” Your Home newsletter
46 REFERRAL MARKE TPLACE 48 ASK A CRS
Advice from the country’s top agents
By Dan Tynan Web analytics 101
14 TRENDS
By Mary Ellen Collins REALTOR® ethics refresher
16 P IP ELINE
By Michael Fenner Office space
18 UP CLOSE
Thai-Hung Nguyen, CRS Westgate Realty Group Falls Church, Va.
36 GO OD READ
Reviewed by Allan Fallow Imagine: How Creativity Works By Jonah Lehrer
2 | July/August 2012
12
residential The
Coming In The Next Issue ... n
New Review
Are buyers passing over existing homes in favor of new ones? A look at the state of the newhomes market n
Open Access
What CRSs need to know about working with clients with disabilities n
Photo Finish
The do’s and don’ts of real estate photography n
Empty Nests
Listing and selling homes in areas with vacant properties Would you like to be considered as a source for a future story in The Residential Specialist? Send an email to mfenner@crs.com to be added to our potential source list. To see a list of the topics we’ll be covering, check out the magazine’s 2012 Editorial Calendar online at www.crs.com.
Specia li s t
EDITOR Michael Fenner Email: mfenner@crs.com Tel: 800.462.8841, ext. 4428 Fax: 312.329.8882 ASSOCIATE EDITOR Regina Ludes Email: rludes@crs.com Tel: 800.462.8841, ext. 4404 Fax: 312.329.8882 2012 COMMUNICATIONS ADVISORY PANEL Moderator: Colleen McKean, CRS Co-Moderator: John W. Goede, CRS 2012 COMMUNICATIONS ADVISORY PANEL MEMBERS Israel V. Ameijeiras, CRS; Shelly Campbell, CRS; DeDe J. Carney, CRS; Gretchen Conley, CRS; John B. Cotton, CRS; Lois Cox, CRS; Wendy Furth, CRS; Hap Hilbish, CRS; Geri Kenyon, CRS; Rita McNeil, CRS; Nancy Metcalf, CRS; Thomas M. Patterson, CRS; Vince Price, CRS; Rae Roeder, CRS; Cynthia J. Ulsrud, CRS; Beverlee A. Vidoli, CRS CONTRIBUTING WRITERS Mary Ellen Collins, Daniel Rome Levine, Gwen Moran OFFICERS: 2012 President Mark Minchew, CRS
PLUS: Location-based marketing
Chief Executive Officer Nina J. Cottrell 2012 President-Elect Mary McCall, CRS 2012 First Vice President Ron Canning, CRS 2012 Immediate Past President Frank Serio, CRS
PUBLICATION MANAGEMENT
Tel: 202.331.7700 Fax: 202.331.2043 Publishing Manager Andrea Gabrick Email: agabrick@tmgcustommedia.com Advertising Manager Andrea Katz Email: akatz@tmgcustommedia.com Tel: 202.721.1482 Project Manager Katie Mason Art Director Gregory T. Atkins Production Artist Tommy Dingus The Residential Specialist is published for Certified Residential Specialists, General Members and Subscribers by the Council of Residential Specialists. The magazine’s mission is: To be a superior educational resource for CRS Designees and Members, providing the information and tools they need to be exceptionally successful in selling residential real estate. The Residential Specialist is published bimonthly by the Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices. Change of address? E-mail requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to CRS at the above address. The Residential Specialist (USPS-0021-699, ISSN 15397572) is d istributed to members of the Council as part of their membership dues. Non-members may purchase subscriptions for $29.95 per year in the U.S., $44.95 in Canada and $89.95 in other international countries. All articles and paid advertising represent the opinions of the authors and advertisers, not the Council. POSTMASTER: Please send address changes to The Residential Specialist, c/o Council of Residential Specialists, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. COPYRIGHT 2012 by the Council of Residential Specialists. All rights reserved. Printed in U.S.A.
www.crs.com Ja nua r y/
Feb r ua r y
2012
DENT THE RESI
T BUILDING TRUS in Tough Times
IALI IAL SPEC
FIXING THE RKET: HOUSING MA CRSs Weigh In
ST ■
JANUARY /FEBRUAR Y 20
SURGE
New CRS president Mark Minchew looks to create a new wave of member engagement.
www.crs.com | 3
President’s Message | News from Mark Minchew, CRS
Michael Thad Carter
REALTORS® Matter
As we all know, homeownership not only spurs the nation’s economy, it also strengthens the underlying fiber of American families, values and education.
4 | July/August 2012
If you didn’t attend the Midyear Meetings in Washington, D.C., you missed a unique opportunity in our REALTOR® community. More than 13,000 REALTORS® gathered at the Washington Monument to make a statement about homeownership and what it means to America. Our CRS meetings were rearranged to allow Council members to lend their support to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and its national president, Moe Veissi, in this endeavor. As we all know, homeownership not only spurs the nation’s economy, it also strengthens the underlying fiber of American families, values and education. I was proud to see so many of our members in attendance. CRSs have long proven to be extremely active in supporting the political action arm of NAR, and many Council members have reached the Golden R level. CRSs are connected to all aspects of the REALTOR® family, and we have our feet on the ground to make the dream of homeownership a reality for more Americans every day. The Midyear Meetings were productive and well attended. The Maryland/D.C. CRS Chapter put on the second annual dinner/cruise event that had the good fortune to witness an impressive display of U.S. Army helicopter maneuvers overhead. Leaders from 55 CRS chapters were on hand for impressive educational and chapter sessions. As the grassroots of the chapters continue to grow, we are beginning to see the benefits of strong chapter involvement and leadership. One common complaint is that our courses are not offered in enough locations throughout the country, but CRS chapters are helping to change that. They are sponsoring more course offerings, sometimes with the aid of local REALTOR® boards that are willing to help pay to bring CRS courses to their area. Some CRS chapters have developed partnerships with real estate companies that are paying to have Council courses delivered for their agents. Our courses and instructors are second to none, and the knowledge these agents gain will help them become more productive for their company and themselves. Your leadership team is working behind the scenes to make CRS all it can be as we work to build a better organization for you and our new members to come. Thank you for your contributions. I’ll see you in the trenches,
QuickTakes | Industry headlines, statistics and trends
Improve or
Move
A large majority of Americans plan to spruce up their homes in 2012 rather than move to a new one, according to an American Express survey. Seven out of 10 homeowners have made home improvement plans for this year while only 10 percent are planning to move to a new home. The average budget for home improvement is $3,500, and one-third of owners plan to spend their home improvement budget on new accessories, such as throw pillows, updated appliances and new furniture. Some 37 percent of homeowners plan to do cosmetic improvements, such as repainting, while 24 percent plan to do some landscaping. Nearly three-fourths (72 percent) of owners with home improvement plans are doing the work themselves.
Home insurance premiums rose 19 percent in 2011, according to a report by HomeInsurance.com, an online marketplace for auto and home insurance policies. In an analysis of 15,000 policies sold in the United States in 2011, homeowners paid an average of $810 for their monthly home insurance premium in December 2011, up from an average of $682 in January 2011. On average, homeowners nationwide paid $128 more per year for new homeowners’ insurance than they did at the beginning of 2011. However, some individual states fared worse. In Mississippi, Montana and New Mexico, new insurance policies in December 2011 had premiums that were 29 percent to 39 percent higher than those sold in January 2011. Consumers may be able to reduce premiums by shopping around and asking their insurance agent if they are eligible for discounts, such as a home-auto insurance package, which can provide substantial savings, the report concludes.
6 | July/August 2012
Gut Check Men and women make home-buying decisions with their head and their heart, according to a recent survey by Coldwell Banker Real Estate. More than one in four women (28 percent) and 25 percent of men put more emphasis on their feelings about a home than on the details, such as layout, square footage or price. Nearly two-thirds of women and men (62 percent and 61 percent, respectively) say they know within the first visit if the home is right for them. The survey finds that more than half of women (54 percent) take charge of decorating the home. However, younger men are playing a larger role in decor decisions (48 percent) than their older counterparts (36 percent). More than two-thirds (68 percent) of women say they are the primary chef of the household, while 23 percent of men say cooking is their job.
Ocula/Veer (2)
Premium Price
The survey finds that a lack of confidence in the current housing market is impeding buying and selling activity. Slightly more than half (52 percent) of homeowners surveyed say they are not confident they would get their asking price for their home if they put it on the market. That may be why 65 percent are willing to make concessions to help sell their home, such as including appliances (41 percent), making requested repairs (29 percent), paying the buyer’s closing costs (15 percent) or including furniture (12 percent).
Sunny Outlook One recent housing market survey presents an optimistic assessment of the prospects for recovery in the next few years. The Urban Land Institute (ULI) Real Estate Consensus Forecast projects housing starts will nearly double by 2014, with home prices beginning to rise in 2013 and increasing by 3.5 percent in 2014. The study, which surveyed 38 leading real estate economists and analysts from across the United States, also projects that apartment rents will rise as much as 5 percent in 2012. As other economic indicators — such as gross domestic product, unemployment rate, and job creation — improve, however, inflation and interest rates likely will rise, thus increasing the cost of borrowing for consumers and investors, the study concludes. Several risk factors could hamper the expected recovery, however, including the ongoing impact of Europe’s debt crisis; the impact of the 2012 U.S presidential election and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad. Still, “What we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years,” says ULI CEO Patrick L. Phillips. “These results hold much promise for the real estate industry.”
Second to None Sales of investment and vacation homes accounted for 38 percent of all home sales in 2011, the highest level since 2005, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) 2012 Investment and Vacation Home Buyers Survey.
Leeser/Veer; Thinkstock/Getty Images
Investment-Home Sales: Total sales in 2011: 1.23 million Total sales in 2010: 749,000 Median sale price in 2011: $100,000 Median sale price in 2010: $94,000 Percentage of all real estate transactions in 2011: 27 Percentage of all real estate transactions in 2010: 17 Percentage of cash buyers: 49 Percentage of distressed properties: 50 Vacation-Home Sales: Total sales in 2011: 502,000 Total sales in 2010: 469,000 Median sale price in 2011: $121,300 Median sale price in 2010: $150,000 Percentage of all real estate transactions in 2011: 11 Percentage of all real estate transactions in 2010: 10 Percentage of cash buyers: 42 Percentage of distressed properties: 39
Boomer Housing Crunch According to U.S. Census data, the 65-and-older population is expected to grow 120 percent to nearly 90 million by 2050, faster than any other age group. About one in five Americans will be over age 65 by 2050. This shifting demographic is likely to increase housing demand for aging Americans, according to a new report from the Center for Housing Policy, Housing an Aging Population — Are We Prepared? The report examines several key financial and housing issues older adults will face as they age. • Housing affordability is likely to be a bigger problem for older adults because more than half their income is spent on housing. • The recent recession has eaten into the reserves of many older households, reducing home equity and retirement accounts. • Even some older homeowners without mortgages will face serious housing challenges. Incomes of older adults tend to decline with age, but property taxes, maintenance fees and utility costs will continue to rise. • An older population with increasing health issues will drive demand for modified housing and housing with support services. • Older adults with low and moderate incomes often lack access to better housing choices, such as multifamily developments that provide services that would enable an elderly resident to live independently and avoid costly nursing care.
www.crs.com | 7
QuickTakes | Industry headlines, statistics and trends
Looking Up Business is improving for many REALTORS®, according to the 2012 NAR Member Profile. The median income for REALTORS® rose 2.3 percent to $34,900 in 2011, with licensed brokers earning a median of $48,400 and sales agents earning a median of $27,200. Median incomes rose in relation to years of experience and hours worked per week. NAR members who have been in the business for more than 16 years earned $50,200, while those who worked 60 hours or more earned $80,900. Some 17 percent of all NAR members reported earning a six-figure income last year. The median number of transaction sides rose from eight in 2010 to 10 in 2011, the survey finds. The median brokerage sales volume was $1.3 million, up from $1.1 million in 2010. The typical NAR member is 56 years old, has 11 years of industry experience and works an average of 40 hours per week. Women account for 60 percent of NAR membership, and 21 percent of its members say they belong to one or more of NAR’s affiliate organizations.
Rethinking Homeownership
Foreign-Born Population by State California 25.4%
Washington – 2.2% Virginia – 2.3% Georgia – 2.4%
New York – 10.8%
Texas – 10.4% Florida – 9.2 Source: U.S. Census Bureau, American Community Survey, 2010. Note: Percentages do not add up to 100 percent due to rounding.
8 | July/August 2012
All other states – 26%
Massachusetts – 2.5% Illinois – 4.4% New Jersey – 4.6%
Confidence
Builders
Home inspections can boost a homebuyer’s confidence when choosing a home, especially a foreclosure or short sale, according to a Harris Interactive survey on behalf of the American Society of Home Inspectors. While most consumers believe a home inspection is a valuable tool for assessing properties, many Americans are confused about its purpose. Other findings: • 88 percent of U.S. adults say a home inspection increases their confidence about the condition of a property. • 85 percent believe distressed properties, such as foreclosures and short sales, can be good deals. • 84 percent say they would be more likely to purchase a foreclosure or short sale if a home inspector determined it was in good condition. • 84 percent of adults believe home inspections are a necessity, not a luxury. • 28 percent believe the purpose of an inspection is to verify that a home complies with local building codes. • About 12 percent confuse a home inspection with an appraisal.
William87/Veer
The recent recession has caused many Americans to re-evaluate how they think about homeownership, according to a survey by Coldwell Banker Real Estate. Nearly three-fourths (72 percent) of those surveyed say they have greater respect for homeownership in 2012 than they did before the recession, and 84 percent believe many people took homeownership for granted before the recession. Three out of four adults (75 percent) say that before the recession a home’s financial value was overemphasized over its emotional value. Many Americans are also re-evaluating their needs versus their wants when purchasing a home. Ninety percent of adults agree that during the housing peak, some people purchased a more expensive home than they could afford. Meanwhile, 86 percent of Americans agree that buyers today are more likely to reconsider how much home they can afford.
Getting Around
Solarseven/Veer
Protecting the American Dream The National Association of Home Builders has launched a new website, www.Protect Homeownership.com, to inform consumers about the various tax, legislative and regulatory policies under consideration by Congress that could change the structure of homeownership and inspire the public to take action to protect it. The site also documents homeownership’s importance to individual households and to local, state and national governments by providing various economic reports and data, poll questions and frequently asked questions. It offers multiple ways for consumers to help protect this aspect of American life, including signing an online petition urging policy makers to keep housing a national priority, participating in local community rallies, and getting involved in social media communities on Facebook and Twitter that are focused on protecting homeownership.
As gas prices rise and consumers seek shorter commutes and more sustainable transportation options, demand for convenient access to public transit is growing, according to research by Walk Score, a website that helps people find walkable places to live. This lifestyle shift is being led by the Millennial generation — those born between 1980 and 2000, also known as Generation Y — who prefer to live in urban areas and drive less than their older counterparts. Walk Score recently launched two indexes to measure how well cities are served by alternative transportation options, such as public transit and biking. The Transit Score index reveals which U.S. cities provide the best public transit systems, while Bike Score measures the bikeability of locations based on the availability of bike lanes and trails, hilliness, road connectivity, nearby amenities and the percentage of bike commuters. Top City Transit Systems 1. New York City 2. San Francisco 3. Boston 4. Washington, D.C. 5. Philadelphia 6. Chicago 7. Seattle 8. Miami 9. Baltimore 10. Portland, Ore.
Most Bikeable Cities 1. Minneapolis 2. Portland, Ore. 3. San Francisco 4. Boston 5. Madison, Wis. 6. Washington, D.C. 7. Seattle 8. Tucson, Ariz. 9. New York City 10. Chicago
Prime-Time Listings Realtor.com operator Move Inc. has partnered with real estate media group RealBizMedia to launch a Realtor.com television channel that will bring millions of property listings into 55 million U.S. homes by the end of the year. The channel, which is set to debut in the fall of 2012 on the Cox cable network, will allow real estate agents to reach potential buyers in their specific markets. Based on a viewer’s location, properties listed on the channel will be displayed by price range and include high-quality videos and descriptions provided by agents. Only Realtor.com listings will appear on the Realtor.com channel, which will be powered by the Home Tour Network, part of the RealBizMedia group. www.crs.com | 9
Great Finds | Tools of the trade
big chill For agents, staying indoors as the summer heats up isn’t an option — home showings, client meetings and closings must go on. But you can keep yourself and your clients comfortable as you make your way around town this summer. Beat the heat by keeping these cool devices and products on hand.
freeze frame www.zalman.com Agents and clients aren’t the only ones who run the risk of overheating when the temperatures rise — the heat can be a hazard for laptops, too. Avoid the burn with the Zalman Notebook Cooler ZM-NC2000. This sleek USB-powered mat features a high-quality 3mm aluminum panel, more than 900 vent holes and two centrifugal fans for fast, consistent cooling performance. The device’s rubber grip strip prevents laptops from sliding and its ergonomic design and adjustable risers prevent wrist strain.
bottle neck www.sharperimage.com It might not look cool — it’s definitely not your typical neckwear — but the CoolWare Personal Cooling System will keep you cool. The battery-powered, collar-like device features cooling plates, antibacterial fabric and a motorized fan with two speed settings. The lightweight device also includes a built-in 2-ounce water bottle that you can refill every two to four hours.
45
39.99
shady behavior www.branders.com There’s nothing worse than getting into a blistering car on a hot day. Keep your vehicle’s interior cool between appointments with the Promotional Deluxe Windshield Shade. This customizable sunshade, made of a light, reflective material, pops open and folds down easily and includes a round polyurethane case for easy storage. Customize the shade with your company logo so you’re always marketing yourself, and order some for clients so they can do the same. Prices vary (about $6–$8 each)
10 | July/August 2012
mug shot www.bedbathandbeyond.com It’s easier to stay hydrated and refreshed in the summer when drinks stay chilled. For on-the-go agents, the Thermos Sipp Vacuum Insulated Travel Mug might just become a permanent cupholder fixture. The 16-ounce stainless steel mug’s double-wall vacuum insulation keeps beverages icy for up to nine hours and features a leak-proof lid with a one-touch push-button opening.
29.99
Technology | Streamlining your business
analyze this By Dan Tynan
15 percent of brokers and 9 percent of agents rate their websites’ return on investment as excellent. Source: 2011 REALTOR® Technology Report
12 | July/August 2012
T
wo years ago Sam Miller, CRS, averaged a respectable 4,000 visitors a month to his website, KnoxCountyOhio.com. Last month, the RE/MAX Stars agent in Mount Vernon, Ohio, logged more than 40,000 page views. The difference? Web analytics. By analyzing who visited his site, what they looked at and how long they stayed, Miller was able to make it easier for prospective homebuyers to zero in on the kinds of properties they were looking for. Thanks to the VisiStat analytics built into his Real Pro Systems Web platform, Miller can identify where his visitors came from, the search terms they used to get there, whether they clicked a link or typed in the address, and what properties they’re most interested in, he says.
Using that information, Miller reorganized his site and grouped houses by neighborhood, price range, school district, acreage — any category that has the potential to drive traffic. That not only made his site easier to find, but also increased the amount of time people spent there. “Instead of looking at just one home and then leaving, my visitors now look at six or seven on average,” he says. “Instead of attracting buyers to one house, I can attract people to all of them.” Miller, whose team closed more than 200 deals last year, says 75 percent of his business comes via the Web. And yet, he says, he’s barely tapped the potential of what analytics can do. CRSs who use Web analytics demonstrate how a relatively simple technology can transform their websites’ effectiveness.
Asia Images Group/Getty Images; Blend Images/Getty Images
Analytics can guide your Web strategy and bring you better results.
By using the right tools, selecting the most effective keywords and keeping visitors on their site, successful agents are using Web analytics to convert leads into buyers.
Find the Right Tools Using analytics effectively starts with choosing the right tools. Ken Jansen, CRS, a broker with Keller Williams Realty Partners in Kansas City, uses the free Google Analytics tool to track visitors to his website (KansasCityRealEstate411.com). He also pays $200 a month for a subscription to SEOmoz Pro Plus, which helps him boost his search engine rankings by suggesting more effective keywords to use. But while Google Analytics is an excellent way to get a broad overview of site visitors, other tools can help REALTORS® drill down even further, says Dave Crader, a Web marketing strategist at Evolve Creative Group in Akron, Ohio. For example, Crazy Egg’s Heat Map tool traces visitors’ mouse movements, logging data about which parts of the site people click on most. “So if you find people are always hovering over certain words, you can add a link there that they can click on to get more information or navigate to other parts of your site,” Crader says. Woopra is another tool that lets agents trace the movements of individual visitors in real time to help identify those who are more likely to buy, he adds. “If someone comes to your site, watches a video and then calls you, you probably have a pretty good idea of what they’re looking for before the phone rings,” he says. “Unless you’ve got tons of traffic, you can make a pretty good guess about who it is.”
Hone Your Keywords For Jansen, choosing the right keywords makes the difference between hovering near the top of Google search results and languishing near the bottom. The key: Avoid generic search terms and drill down to find specific words that describe the things buyers really want. “Most of my Web traffic does not come from keywords like ‘Kansas City real estate,’ ” Jansen says. “It comes from phrases like ‘Lionsgate Overland Park,’ the name of a neighborhood in a city where I do the majority of my business. I track 1,000 real estate-related keywords every week, and 95 percent of my traffic comes from extremely
“A bounce rate of 50 percent or higher tells you there’s something wrong with your landing page and you need to ma ke ch a n g es.” specific queries, like a particular address or the name of a subdivision.” Once he identifies the right keywords, Jansen makes sure they appear in the text on pages specific to those terms, as well as in the HTML tags that visitors don’t see but search engines use to identify relevant sites. Mike Parker, CRS, an agent with HUFF Realty in Northern Kentucky, uses Real Pro Systems Platinum to create custom landing pages for his site (nkyhomes.com) based on keywords like “waterfront property NKY.” He then promotes specific URLs like nkyhomes.com/waterfront on Twitter, Facebook and Craigslist. Parker, who is also a CRS certified instructor, says he expects to grow his site traffic from its current 300 visitors a day to 2,000 by the fall using pages built around keyword tags. “Using tag-based pages is like creating my own real estate magazine online,” he says. “This has replaced 90 percent of my print advertising.”
Flatten Your Bounce Rate The last thing anyone wants to do is pour hours into creating a website in an effort to attract visitors only to have them “bounce,” or leave immediately. Web analytics tools can help determine who’s bouncing and why, Crader says. “A bounce rate of 50 percent or higher tells you there’s something wrong with your landing page and you need to make changes,” he says. “It’s also bad for your SEO, because it tells Google that people are coming to your site and not finding the information they need.” For example, if people leave after viewing the home page, it might be because the page takes too long to load, Crader says.
REALTORS® can reduce the number or size of photos and see if the bounce rate improves. Tools like Crazy Egg can help here too by identifying the parts of the site that fewer people are viewing, so REALTORS® can figure out what needs the most improvement.
Converting Leads to Buyers Increasing traffic flow and time spent on an agent’s Web pages is always good, but the goal of providing a robust website is to convert visitors into customers. Parker’s site allows visitors to view three properties before it asks for their names and email addresses, which he then adds to one of his email subscription lists. He says he used to ask for phone numbers, but discovered more people signed up after he dropped that requirement. Working with Web consulting firm Haden Interactive, Ken Jansen used analytics to separate serious buyers — people who spent at least seven minutes on the site and looked at 25 pages — from casual visitors, and then drill down to learn what the serious buyers are interested in. “That lets me ignore all the noise and focus on how I can better serve the 22 serious shoppers who are visiting my site every day,” he says. Woopra offers a custom notification feature that lets you know when someone is a likely prospect, says Elie Khoury, founder and CEO of Woopra. “You can receive a notification to your iPhone whenever a visitor views the same property a specified number of times or spends a certain amount of time actively viewing the listing,” he says. “You can then reach out via Woopra’s Live Chat to find out what that visitor needs and what it will take to get them to sign on with you.” But all the analytics in the world are meaningless if you don’t put the information to use. For example, Jansen says he’s on his ninth website design. “The first eight times I did it, I had no idea what ‘conversion’ meant,” he says. “Then the light bulb finally went on and I said, ‘OK, now I get it.’ I don’t knock on doors, do email blasts or sit on open houses any more. I’d rather spend the same time and money on content creation, design work and data analysis.” Dan Tynan is a writer based in Wilmington, N.C.
www.crs.com | 1 3
Trends | Today and tomorrow
cracking the code Many agents unwittingly find themselves in violation of the Code of Ethics. Is your ethics training current? By Mary Ellen Collins
14 | July/August 2012
S
Continuing education is the key to staying on the right side of the code. NAR members have to complete the Code of Ethics training every four years, and those who haven’t done so during the 2008–2012 cycle have until Dec. 31, 2012, to do so. Although all REALTORS® are aware of the code and NAR publicizes new amendments annually, many agents aren’t as familiar with them as they should be. CRSs report that the code violations they see most often stem from forgetting or not knowing the rules rather than purposely ignoring them.
Advertising Slip-Ups The advent of social media has been a boon for agents who want to spread the word
Andy Dean/Veer
“Ethical behavior is doing the right thing when no one else is watching, even when doing the wrong thing is legal.”—Aldo Leopold
ince its adoption in 1913, the NATIONAL ASSOCIATION OF REALTORS® (NAR) Code of Ethics has provided a set of standards that define ethical behavior for the real estate industry. The code continues to evolve, adding amendments to keep pace with changes in laws, technology, housing markets and best practices. “Laws and the ethics code keep the business clean,” says Gay Ashley, CRS, ABR, broker-owner of Ashley Realty Group in Fairfax, Va. “It keeps us all moving in the same direction. I’ve played a lot of sports, and when you know what the rules are, you can play the game. When there are no rules, it’s a free-for-all.”
about their business, but it also required a 2011 code amendment that adds electronic media to the list of advertising platforms in which agents must reference or provide a link to the company they work for. “The big violation is that REALTORS® who use Facebook and other things forget to disclose who their broker is,” says Elaine Byrne, CRS, ABR, broker at Elaine Byrne Realty in Austin, Texas. “I think it was easy to get so excited and caught up in the social media bandwagon and start to put information out there, that they didn’t take a moment to think, ‘This is a new form of advertising.’ ” Byrne adds that overstating one’s expertise is another violation she sees often. “REALTORS® advertise that they are the only expert in a particular neighborhood. You can say you’re an expert, but not the only expert. I actually heard one complaint about a REALTOR® who really went too far and said in writing, ‘You don’t want to be using other REALTORS® because we are the experts.’ ” These kinds of statements violate Article 12 of the Code, which relates to agents being honest and truthful in their communications and presenting a true picture in their advertising and marketing.
Communication Errors Real estate transactions involve an enormous amount of information dissemination, which provides numerous opportunities to slip up — even on something as simple as introducing oneself or including the right wording in a property listing. “Something I see a lot on the buyeragent side is people who don’t say, ‘I represent so-and-so,’ ” Ashley says. In her state, “You can’t just say, ‘I’d like to show your house today.’ You have to say, ‘I represent Client X,’ and you’re supposed to do that at the earliest possible opportunity. Agents are tired, stressed and overworked, and in a bad market you work harder … but it’s really important to maintain the standard of doing what you’re supposed to do.” One potential violation that agents need to be aware of in the current market relates to publishing commission rates. According to Jan Ellingson, CRS, CIPS, managing broker with Keller Williams Western Realty in Burlington, Wash., and vice chair of NAR’s Professional Standards Forum, the short sale market
“I think the average REALTOR® is very ethical. Most people are very aware of the do’s and don’ts, but everyone slips up from time to time.” was a contributing factor in the addition of one 2010 amendment. “It states … that if a commission might change, that information must be communicated to the buyer’s REALTOR® prior to that REALTOR® making an offer,” she explains. “In short sales, a bank might decide it wants to pay a lower commission rate. In a normal situation, the seller could decide they didn’t want to pay as much. The cooperative commission listed in the MLS has to include a phrase like ‘third party approval required’ or ‘commission is determined by lender.’ ” This helps agents avoid unpleasant surprises after the fact.
Jumping the Gun Sometimes eager agents get ahead of themselves and unwittingly commit violations in the process. “I see a lot of instances of people not getting things in writing — delivering offers and counteroffers verbally,” Byrne says. “It’s faster and easier. When the market is really active, there may be multiple offers. You’re not intending to be unethical, but you have to communicate quickly and you may find yourself in that position. Once you start down that verbal path, things can get confusing. It’s easy for the parties to lose track of what’s being communicated.” Ellingson mentions that several years ago, busy agents often ignored the MLS rule about respecting and following the guidelines for showing a property — i.e., calling to make an appointment and
adhering to a seller’s request to have showings only during certain hours. This resulted in a code amendment that says, “When showing property, you must abide by the showing instructions.” “This happened during the extreme shift in the market when buyers were flooding the market and agents were so busy,” she says. “They would be out driving around and showing properties and see a house and just go knock on the door rather than calling. Even on vacant homes, agents were setting off alarms without calling first. And we’re still seeing this.”
Respecting the Code CRSs agree that they see fewer ethics code violations today than they did earlier in their careers, and many attribute that to a renewed focus on ethics education. They also feel that most agents would rather help their colleagues than file a grievance against them, and they recommend gently pointing out infractions when they see them. On one occasion, Ashley was in line at a restaurant and overheard a real estate agent loudly disparaging the agents at a particular company, saying she would never work with them again. “I said quietly, ‘You know, we have a Code of Ethics and you’re making us all look bad — and in a very public setting.’ ” The woman initially looked shocked, then upset and angry, and told Ashley to “butt out.” Although Ashley didn’t engage the woman any further, she still thinks it’s important to alert people when their behavior isn’t up to code standards. “I think the average REALTOR® is very ethical,” she says. “Most people are very aware of the do’s and don’ts, but everyone slips up from time to time. I don’t feel it’s our responsibility to slam another REALTOR®, but I do think it’s our responsibility to say, ‘Maybe you need to rethink this.’ ” Whether ethics education comes in a classroom or from well-intentioned colleagues, the outcome is the same. Every ethical action, no matter how small, enhances the professionalism and reputation of the entire industry — and that benefits every REALTOR®. Mary Ellen Collins is a writer based in St. Petersburg, Fla., and is a frequent contributor to The Residential Specialist.
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Pipeline | Strategies to grow your business
office space What does your workspace say about you? Choosing where to set up shop should be an important consideration for agents. By Michael Fenner
Source: 2010 NATIONAL ASSOCIATION OF REALTORS® Member Profile
16 | July/August 2012
“T
here are two questions facing REALTORS® when picking an office space,” says Bonny Crowley, CRS, principal broker-owner of Portland Principal Realty in Portland, Ore. “What do I need to support my business, and what perception am I giving my clients and other visiting professionals?” These are tough questions for many REALTORS®, some of whom may be reevaluating their office plan in response to the changing needs of their clients. Data from the NATIONAL ASSOCIATION OF REALTORS® (NAR) show that the vast majority of REALTORS® maintain
some sort of home office, and plenty of them work from home full time. But many others still find that professional office space — whether it is located at a traditional real estate brokerage office, part of a shared workspace arrangement, or even situated within a grocery store — allows them to project an image that will help them win clients and referrals.
Image Is Everything In many ways, the Internet has changed the way clients perceive REALTOR® offices, Crowley says. “In the early years, business people who used the Internet to interact with clients needed to have a physical
Alloy Photography /Veer
Seven out of 10 REALTORS® have a home office.
Home Office 101 building to give legitimacy to their business. Today, businesses need to have a Web address to show legitimacy to their clients.” Consumers now expect REALTORS® to exhibit both a physical and an Internet presence, and agents must ascertain the extent to which those twin efforts affect client perceptions. And while creating a good image is important, it’s far more critical for agents to work in a space that allows them to deliver the best service to their clients. Crowley concedes that technology helps REALTORS® work virtually anywhere — and they must. After all, “many times the real office is our car, the home we are showing, the client’s home or a restaurant.” But the real question about where agents work, she says, is how customers perceive agents who work from home rather than an office. “Meeting a client at our home or local coffee shop may serve as a convenient alternative, but it certainly lacks professionalism. We need to ask ourselves if our clients would want to meet their accountant, lawyer or doctor at their home because they did not have an office,” Crowley says. “What image would that create?”
Home and Away Pat Wattam, CRS, with RE/MAX First in Baton Rouge, La., says she can’t imagine working from her home. “There are just too many distractions calling to me when I am at home. In the office, I can focus, I have my team members with me so we can quickly cover items they need assistance with, and all my tools are at my fingertips.” But she concedes that she travels frequently to her beach properties and has found it easy to work there with limited resources — “but I always have my team back at the office to call on.” Cher Miculka, CRS, agrees that maintaining professional office space is an asset, but she also understands the benefits agents gain by working from a home office. “When I was an associate broker with a large franchise, I never leased an office space … [I] worked from home and only came in to use the conference room
REALTORS® who work primarily from a home office can gain some big benefits, but only if their workspace is up to the task. Technology and lifestyle company Tecca.com and the Land Title Guarantee Company suggest some steps agents can take to set up a home office that will help them work smarter, not harder.
maybe five times a year,” she says. “But image is crucial, and an office still makes us real real estate agents.” Evaluate Review your day-to-day work habits and design Thus, the agents at your home office to accommodate them. For some, simMiculka’s brokerage, plicity and quiet are important. Others may like to add House San Antonio Real some comforts of home to make them more productive. Estate, work from home, but she provides a “landSimplify Eliminate clutter by storing all necessary work ing office” for them to items in designated areas. Store important documents use when they need it for online using Google Docs or a similar service to keep client meetings or other them accessible, even if you are not in your home office. tasks. “I lease a space from a mortgage comGear Investing in good equipment (computer, printer, Interpany, I have my own sign net service, etc.) is essential. Nothing kills productivity like out front for storefront dealing with frequent technical problems. Similarly, profesexposure, and it’s a beausional office furniture that properly fits the space will help tiful and trendy facility agents remember that the home office is a workplace. located in a prime area. I provide a computer, Manage the Clock Separating family time and work time Internet and a printer.” can be a challenge, but it is essential for getting work done In addition, there are without losing your sanity. Block off chunks of time that are similar alternatives to trareserved solely for work, and stick to your schedule. ditional brokerage office spaces. Many REALTORS® are increasingly taking advantage of office services companies where they can set up For example, in March, RE/MAX Edge individual and partnership offices. REALin South Windsor, Conn., opened a microTORS® can use such services to reserve office inside the local Stop & Shop Supera personal office or conference room by market. At just 276 square feet, the office the day, week or month, depending on the is not exactly spacious, but it does offer a company. Many include typical office ameprofessional place to meet with customers nities, including Internet access, printers and and clients in a bustling environment. It also sometimes even technology support. While represents an innovative way to raise brand such spaces may not offer agents the services awareness, thanks to the heavy foot traffic. they would enjoy in a traditional brokerage No matter what office setup REALoffice, such as marketing and transaction TORS® choose, it’s important to rememsupport, they do provide REALTORS® ber that it must fit not only the individual’s with a place to meet clients in a professional lifestyle and work habits, but also the needs setting at a reasonable cost. of their target market. No two agents are the same, and they cater to different types Stop and Shop of clients. But by taking the time to evaluIn the past, if a REALTOR® had a busiate their own work habits and requireness presence in a grocery store, it was ments, agents can ensure that they work typically an ad on a shopping cart. Not in a space that helps them make the most anymore. One of the more recent trends in of their time and effort. the industry is the so-called micro-office, often located inside a large retailer, such as Michael Fenner is editor of The Residential a grocery or big-box store. Specialist. www.crs.com | 1 7
Up Close | Profiles of people to watch
thai-hung nguyen,
CRS
Westgate Realty Group, Falls Church, Va.
REALTOR® since: 2003 Designee since: 2007 Contact: thaihung@ gmail.com; 703.362.5012
You’re the treasurer of the CRS Virginia Chapter, a member of the Northern Virginia Association of REALTORS® board of directors, and the vice president of the DC Metro Chapter of the Asian Real Estate Association of America (AREAA). Why get so immersed in something that was once “just a job”? The year I started with CRS, even though it was a low point in the market, was my best year ever. I feel like I owe a lot to real estate and to CRS particularly. I really embraced the mentality of the CRS instructors and have shared that passion with my community — especially the 60 percent of my clients who are Vietnamese. Even among Vietnamese real estate professionals, I think Vietnamese clients are somewhat underserved. Real estate as a career and an industry does not exist in Vietnam the way it does here in the United States, so many of the clients who have emigrated here from Vietnam have not been exposed to the industry and are unfamiliar with the ins and outs of the business. I feel like it’s my job to raise the bar for this community. If I bring good service and professionalism to my clients and my community, it will raise expectations of real estate professionals across the board. What do you want other agents to know about serving the Asian community — in particular, Vietnamese people? We came here with almost nothing in our pockets, and we have a strong mentality about saving money. Understanding the REALTOR® commission is difficult, and one of my most important jobs is to explain the value of what my client is truly paying for — the service — and that REALTORS® deserve it. We all think and talk about the American dream, but really, the home is No. 1 in Asian culture — where everything in your life starts. Most Vietnamese came here and lost their home back in Vietnam for
18 | July/August 2012
one reason or another, and when they come here to America, the one objective is to work toward getting a home. There is a perception and a belief that no matter how well you’re doing or how successful you are, you have to have a home to start out with. REALTORS® who work with Asian clients should know that it’s not unusual to see a contract with four or five names on it because we all try to chip in and buy the home. It doesn’t matter if it’s a one-bedroom condo for a family of five or a duplex. They all want to have someplace that they call home. How has technology influenced your business? I had to build my whole clientele base from scratch, as many REALTORS® do, and technology was a great help to my business — it actually kick-started my real estate career. In 2003, I was in an online community [forum] that had about 3,000 Vietnamese members. I started sharing my real estate knowledge and slowly built a following and gained sales. It was before Facebook and things like that, of course, but I picked up about 50 percent of my business from that group. For me, that was my social media. Technology was what helped me gain followers and business. You recently attended a REALTOR® rally to raise awareness about housing and mortgage lending policies. Why did you get involved on the national level? I’ve never liked politics, but over the past four years, I’ve noticed a trend where politics are entering the housing arena. These politics and policies restrict a lot of people from owning a home. For instance, mortgage-lending policies affect [immigrants]. This group doesn’t necessarily have the best credit scores because they haven’t been here long, and they struggle to work at any kind of job to make money. One of my clients works two jobs and his income is good, but on paper, he can’t prove his income because he doesn’t have paychecks, he just has cash, even though he pays his taxes. I have to explain to him that because of this policy, he will have to go through a different, private lender, which is going to cost him even more. I want to help people who don’t speak English well and don’t know where to turn. I’m in a position where I can get to know them. I know the system, and I can communicate their message to those higher up in the chain. Attending something like the REALTOR® rally might not make you any extra money, but the return on investment for your time is priceless.
Forrest MacCormack
How did you get started in real estate? I was working in IT but was looking for additional income, so I started as a part-time agent. I got into the business when the market was booming, so it was an easy start for me. But until I took CRS classes, I didn’t realize that real estate was more than just a “job.” It was then that I truly began to see it as a career that could build over my lifetime. Every agent I talk to in and outside my office hears me promoting CRS. I always talk about it with new agents who come into my office. CRS classes equip you for a career and life in real estate.
“If I bring good service and professionalism to my clients and my community, it will raise expectations of real estate professionals across the board.�
Thai-Hung Nguyen, CRS
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David M Schrader/Veer; Magann/Veer; Flickr/Getty Images
Seeing
S
20 | July/August 2012
Stars By Rebecca Scherr
Garnering positive online ratings can be the next best thing to a referral. CRSs share their strategies for how to weather a negative review and how to shine.
It’s an agent’s worst nightmare: a one-star rating, right there on your Zillow profile, accompanying your worst review to date. It claims you are lazy. The disgruntled client says your lack of hustle forced him to find the listings on his own. A roofer and landscaper you recommended exceeded budgets and time. But you know these statements are false. You pray that with a click of the mouse you can do some damage control, deleting that lonely star and these untruths, saving sales leads, and preventing the lies from going viral. Sandra Mathewson, CRS, of RE/MAX Premier Properties in Reno, Nev., knows this nightmare all too well. It took Mathewson a year to rid her profile of a bogus review, about a transaction that purportedly happened in 2007, after it popped up on Zillow last year.
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“It was not from a past client; it was malicious and absolutely slanderous,” says Mathewson, who has been in the industry for more than 25 years and was fearful that the review would cost her sales leads and hurt her career. “I knew right away that this never happened. It was a fake name and property address — and I could prove it.” Some CRSs may wish they could steer clear of even opening themselves up to the good, the bad and the ugly of online ratings for this reason. But we live in a culture where consumers flock to these sites to launch their home searches or to find a reason to choose one business or service provider over another. Online reviews and ratings are, in effect, word-of-mouth advertising, and consumers are active participants who share both positive and negative experiences. CRSs who understand this and, more important, manage to make themselves part of the conversation can successfully tap into the power of online ratings and reviews to demonstrate their expertise and ultimately win more clients.
It took Sandra Mathewson, CRS, a year to rid her Zillow profile of a bogus review.
22 | July/August 2012
Seventy percent of consumers say they trust online consumer reviews, an increase of 15 percent in two years, according to Nielsen’s 2012 Global Trust in Advertising Survey of more than 28,000 Internet respondents in 56 countries. In the past seven years, websites that offer reviews and ratings of businesses and services have become an unofficial authority for consumers. More people are sharing their service experiences on these sites, as well as in the comments of blogs or on social media sites, such as Facebook and Twitter. Increasingly, businesses are connecting with consumers in these virtual communities as well. Zillow, now one of the most-used resources for homebuyers and sellers, launched in 2005 and debuted its agent ratings feature in December 2010. Agents can set up their profiles with photos, specialties and contact information. That’s where clients can post reviews and rate agents on a scale of one to five stars and in categories such as “local knowledge,” “responsiveness,” and “negotiation skills.” Agents are notified when reviews are posted on their profiles,
Joy Strotz
The Players
and they can respond. In March, Zillow reported about 130,000 user-submitted reviews of local real estate agents. Another go-to site for consumers and agents alike, Trulia.com, last year introduced Trulia Social Search, giving agents a way to generate referrals through word of mouth. Agents ask clients to recommend them through Trulia or Facebook, and clients’ reviews show up on Trulia, clients’ Facebook profiles and their friends’ news feeds. Five recommendations have the potential to reach more than 1,000 new clients, according to Trulia, which was founded in 2004. Yelp isn’t your typical real estate site with listings, but consumers are doing their homework there to find the best local REALTOR®. Overall, 25 million reviews of businesses and service providers have been written there since 2004. Agents who are reviewed can respond directly below reviews on this site after logging in, and Yelp offers businesses tools to create deals, talk with clients and track trends. Some homebuyers and sellers also rely on Angie’s List, a site started in 1995 that touts thousands of reviews for more than 500 service companies by location — including real estate agents. The membership fee might help ensure that clients are writing reliable reviews, which can include feedback about the work performed and prices. Agents can create a free business listing on the site, log in, read reviews and respond.
Joining the Conversation Lenny Harris, CRS, with Keller Williams Realty near Boston, has been a REALTOR® since 1982 and has a good reputation. He says that most of his business comes from referrals from past clients and other agents. But after a one-star rating and a negative review recently appeared on his Zillow profile, he started to consider developing a strategy for responding to feedback. “If this negative review affects one or two deals a year, that’s a big deal,” he says. Jody Zink, CRS, of RE/MAX Preferred Associates in Toledo, Ohio, attributes the best two years of her eight-year career to her Zillow profile and 17 five-star reviews.
People
Are Talking
Word-of-mouth marketing may be the best method for generating awareness and winning clients. Agents looking to boost their profile in the online ratings world can follow a few basic strategies.
Engage on Facebook. According to a Crowdspring survey, 42 percent of small-business owners received sales leads through Facebook. Focus on building relationships with potential clients and providing good content. Personal profiles and business pages are some of the free tools on the social network that boasts more than 900 million users. Provide frequent and informative posts that position you as a trusted and knowledgeable local market expert.
Tweet on. With more than 140 million users, Twitter gives agents access to many potential clients. Let your expertise shine by customizing your page with contact information and specialties, posting frequent updates, “retweeting” good content, and using hashtags (the hash symbol helps organize content — for example, “#homebuying”). Listen before jumping in, and create a strategy for how you’ll tap this resource.
Send email. You might think that Twitter and Facebook will soon take the place of email, but a successful email marketing campaign can provide quality content and create new relationships. According to Pitney Bowes, 68 percent of small businesses say they use email to highlight their services. Email programs such as MailChimp and Constant Contact can track open rates and click-throughs so you can tweak your strategy as needed.
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Seventy percent of consumers said they trust online consumer reviews, an increase of 15 percent in two years, according to a 2012 Nielsen survey. While she doesn’t have a specific strategy for managing online rating sites, she says her phone is ringing off the hook because of her presence on Zillow and other sites. “I’m getting three calls a week to potentially list that I would otherwise not have received, based on the reviews,” she says. “Nowadays I think consumers are trying to find an agent who is savvy with technology, interacting online. It’s an edge that some agents have, over those still learning the technology.” To have a presence on Zillow, the first step is to create a free profile — where the reviews and ratings are posted. There are some best practices that agents should keep in mind when setting up a profile, says Cynthia Nowak, a company spokeswoman. Fill out each field, she says, so clients can learn more about you and your expertise. Include your designations and specialties, the ZIP codes and neighborhoods you serve, and all of your contact information — phone, email, website and social accounts. And don’t forget to include a headshot.
On the Watch Once CRSs have profiles on these sites, they need to monitor what clients are saying about them — and their competition. That’s how Mathewson learned of her negative review. She was on Zillow checking a positive review after receiving a message from the site — and, there it was. She typically checks her reviews once a month but is the first to say she should be doing it more often. “A prudent person should check it no less than every two weeks,” she says. “It takes just a few minutes to go in and check to make sure everything is OK.” 24 | July/August 2012
Zink also says she checks in on her Zillow reviews about once a month. She has enabled Zillow settings that send her emails and phone calls and lets the site work for her so she doesn’t have to regularly check in. “I’m getting eight to 10 inquiries about properties a day, and I’m flooded with leads that I can barely keep up with,” she says, praising the business Zillow brings her. Zink suggests subscribing to Google alerts, which are email updates of the latest search results based on key terms. She warns, however, that CRSs should limit their keywords because receiving too many alerts can turn into a time-suck. “Even having your competition’s name set as a Google alert can be too much,” so she suggests sticking to your name and a few neighborhoods. Although agents should monitor the online conversations about them, they can also take some comfort in knowing that some sites monitor the online reviews as well. Zillow, for example, monitors reviews for suspicious activity. “We understand the power of reviews for both consumers and agents, and have a dedicated customer service team in place that will personally look at every single review before it is published,” says Nowak. “It’s important that reviews are based on legitimate experiences and are appropriate and helpful.” Zillow reviews must meet the company’s Good Neighbor Policy and review guidelines listed on the site, including that all contributed content is respectful and not discriminatory, abusive, obscene, threatening or libelous. Revealing sensitive information or giving discriminatory preference in an advertisement for housing is not tolerated. Content Zillow determines
to be inappropriate, off-topic or not useful is not published, Nowak says.
Response Time Becoming part of the conversation requires agents to understand the rules of engagement. “Be professional, understanding and transparent,” Nowak says. “Use the response — whether positive or negative — as an opportunity to highlight your work ethic, experience and knowledge about real estate and the neighborhood.” Yelp suggests that you keep it simple and just say “thank you” to both positive and negative reviews, but others might suggest taking your “thank you” a step further. Mathewson and Zink say that you should post your positive reviews to your social networks, such as Twitter and Facebook. Zink says you can’t always tell which client posted a positive review because of the non-identifying username, so that would be a good example of when to thank the client publicly on the site, below the review. Other times, it would be appropriate to thank clients privately, via email.
Thumbs Up? Mathewson had six positive reviews before the negative review emerged. She worked to get even more reviews by sending messages through Zillow to ask satisfied clients about their experiences. When those testimonials were posted to her profile, within a year Zillow ruled that her single negative review didn’t meet its criteria and removed it. “It’s amazing how one negative review can nearly destroy your career,” Mathewson says. “But now, I have 14 positive reviews and [clients] say I see all these nice reviews you have and you come highly recommended.” Mathewson has no reservations about having online profiles with reviews despite the negative experience. She recommends that all agents take the time to set up a profile and add ZIP codes of service areas, designations and other information. “This is where the buyers and sellers are. You’re proud of yourself and want to do more business, so take that chance and put your picture on there,” she says. Rebecca Scherr is a writer based in Washington, D.C.
Fix orIt Nix It? Selling properties as-is requires a different mindset for agents — and their clients.
When Brenda R. Stone, CRS, with Keller Williams Realty in Alexandria, Va., wins a listing for a home that needs work, the first question she asks herself is whether the repairs should be done at all. In cases where the bank owns the property and is not willing to spend money on repairs, the decision is easy: The answer is “no.” In cases where the homeowner is considering repairs, she says it comes down to a matter of economics. “If it’s a situation where you put $25,000 into your house to bring it up to what a buyer would consider pristine and you’re not going to get back more than that, in most cases, it’s not worth your time and outlay of cash. But if it’s a situation where you just need to remove a little wallpaper, then it’s a different story,” Stone says. www.crs.com | 2 5
Sergej Khakimullin /Veer
W
B y G w e n M o ra n
With high inventories of bank-owned properties in many markets and an abundance of sellers in financial distress who want to sell their homes as quickly as possible, more REALTORS® are faced with marketing and selling homes “as-is.” Conventional wisdom still prevails that homes must be as pristine as possible to sell quickly, and in some markets, buyers have more choices than ever. This presents unique challenges for agents who must consider how to address a property’s flaws and calculate a listing price based on its condition. REALTORS® must know how to help clients decide whether to invest in improving the home or sell the property as-is at a listing price that appeals to buyers with the know-how and resources to refurbish the property. Agents who can walk that fine
“Fixing windows but leaving a broken HVAC system is like getting half a haircut. Maybe it was a good start, but you have left work to do — and you almost certainly will not get your money back on the things you decided to address,” he says. Alderfer is up front with buyers about the challenges of buying an as-is property and tries to make sure they understand what they are getting into. He’ll ask prospective buyers if they can handle home repairs and explain the reality of how long repairing and upgrading the home will take, as well as the expense involved. He finds that he often screens out candidates with his style. “It’s great that real estate has exploded in the media, but it tends to paint a picture that a house can be rehabbed in a 30-minute show,” he says. “Once you go to Home Depot, you’re
Agents should be up front with buyers about the challenges involved in buying an as-is property and try to make sure they understand what they are getting into. line will put themselves in a position to make both buyers and sellers happy.
Give Good Counsel Philip Alderfer, CRS, founder of The Alderfer Group in Homer, Ark., where homes are typically priced between $200,000 and $700,000, sees a patchwork of homes that are not built to code, as well as bank-owned properties, all of which are sold as-is. After conducting a thorough inspection of the property, his philosophy about repairs and upgrades is “fix it or forget it.” In other words, he tells his clients up front to do all of the major repairs necessary to get the home out of the “as-is” category or do none of them. 26 | July/August 2012
not going to immediately get 20 years of experience to properly execute the project yourself the first time. You’re going to have to live with this decision for a while.”
Inspect First When George Durkin, CRS, brokermanager of Realty Executives of Nevada in Las Vegas, listed a home that was being sold as part of a bankruptcy proceeding, he was concerned that buyers looking at the $2 million listing would expect a home in perfect condition. This property needed significant masonry work, however, including fixing cracks and damaged areas that to the casual observer could look like significant structural issues. So
he immediately spent $1,000 for a full home inspection by a structural engineer to examine the home and point out all of the issues they found, none of which threatened the structure of the home. He generated the report in November 2011, found a buyer and received final court approval for the sale in May 2012. He was pleased with the turnaround, given the market and the issues the home had. “The report really went a long way to saving time. Instead of the purchaser wondering and conjecturing about how bad these things are and what caused them, he could see that it was just a matter of what it was going to take to fix them,” Durkin says. Stone, who also pays for a home inspection as part of her marketing for as-is properties, takes it one step further. She gathers estimates for repairs from reputable contractors and shares them with prospective buyers. In addition, for homes with outdated décor or those desperately in need of upgrades, Stone gets estimates to replace features such as countertops, carpets and the like. She keeps remodeling materials samples such as granite and flooring in the house so would-be buyers can see them and get a better feel for how the home would look with those changes, as well as gain an understanding of the budget required to make it that way. Stone recently helped her mother sell her house. Initially, her mother refused to remove dated wallpaper, thinking it would be too much of a hassle. When Stone brought in a contractor who showed her how easy and inexpensive it would be, she agreed to spend a few hundred dollars to take it down and have the walls painted, which made the house look more up to date. “I really like to get those estimates up front so that their mind doesn’t run away with them. ‘Oh, my gosh, it’s going to [cost] $100,000 to make it the way we want,’ when in fact it’s $10,000 or $15,000 and certainly within their budget. Then your home really does become an option for them,” she says. Understanding the issues with a home can also uncover potential problems with financing, as banks may require that certain repairs be made — fixing broken windows; ensuring that electrical,
Share of Existing-Home Sales Attributed to Distressed Properties* 2010
Q1: 36%
2011
Q1: 38%
2012
Q1: 32%
Buyers like it because it shows the home’s potential,” he says. Bradford’s team has created a special brochure for Team 203(k), in advance of a predicted increase in the number of bankowned properties in his market later this year. Stone creates brochures for each property she lists. This allows her to detail any issues with the home and provide estimates of the potential cost involved in fixing them. Similarly, Alderfer spends advertising dollars marketing to “rehabbers” rather than the general public, sending direct mail to subcontractors who may be interested in buying an as-is home because they can fix what’s wrong.
Matchmaker Source: NAR data *Distressed sales typically refer to properties sold as either a short sale or a foreclosure.
plumbing, and heating and cooling systems are functional; applying fresh paint; fixing holes in the walls — before approving a mortgage on a property. This can be a problem for homes that have been vacant and have had the utilities turned off, causing damage to systems, or that have sustained other damage or wear and tear that the seller was unable or unwilling to pay to repair.
Go to Rehab Richard Bradford, CRS, a sales associate with RE/MAX Connection in Turnersville, N.J., has created “Team 203(k).” He collaborates with a mortgage broker with expertise in 203(k) mortgages and a home remodeler to, according to their marketing slogan, “Find it. Finance it. Fix it.” Bradford helps homeowners who might have trouble finding their ideal home instead find one that needs some work. Then, a builder conducts a thorough property inspection and produces threedimensional drawings and estimates of repairs and upgrades that can be made to the home. The buyer then works with the team’s mortgage broker to finance the property using this combination mortgage and construction loan and with the builder to have the repairs made. “It works for the sellers because it allows them to show renovations without them having to put any money out.
Finding the right buyer is the final critical piece of the as-is puzzle. Durkin starts with the property’s Multiple Listing Service entry. He avoids the term “as-is,” which he says can alarm prospective buyers, and instead uses “needs love.” He first emphasizes the home’s strong points — a large lot, swimming pool or other features — and then indicates that there is an inspection report available for review. That is a more positive way to tell buyers that the home needs work, he says. Selling as-is homes often requires some out-of-pocket expense. “Normal” marketing times should be ignored, Alderfelder says, as sometimes these homes sell quickly and sometimes it takes more legwork to get a contract, including showing the property to more people than the average listing and seeking out buyers interested in rehabbing a property. As always, sellers still need to practice good pricing techniques in light of the number of repairs the home will need. However, having a plan to identify problems and secure estimates to repair them, then finding the right buyers and securing solid financing can help move these listings instead of letting them languish on the market. But the most important thing may be to make sure both seller and buyer clients know and accept the price and labor implications of a home sold as-is. Gwen Moran is a writer based in Wall Township, N.J., and is a frequent contributor to The Residential Specialist.
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rooms changing
Today’s home redesign trends reflect the realities of the economy — and a desire to live well now and in the future. “Five years ago, people were more likely to move to a home they desired, but today they are more likely to stay where they are and make improvements. It’s more cost efficient,” says Joyce Mitchell, CRS, a broker with Mitchell and Associates in Bigfork, Mont. The recent recession has taught many homeowners a tough lesson about money management. With dwindling savings, many households were forced to make difficult choices about where and how they live. For some homeowners, that meant forgoing or delaying a move to a larger home and making the best of what they already had. For some buyers, it meant figuring out whether they could afford to buy a house at all, and if so, how they could turn it into the home of their dreams. As many REALTORS® and remodeling experts have learned from their clients, many of today’s remodeling and design trends are influenced both by homeowners’ changing housing needs and by their finances. Whether updating a bathroom with aging-in-place features or turning a portion of the garage into an entertainment room, families are finding ways to improve the value of their homes without breaking the bank.
Economics Matters “Economics has forced all of us to take a hard look at how we use space,” says home remodeler George “Geep” Moore Jr., with Moore-Built Construction & Restoration and chairman of the National Association of Home Builders’ Remodelers group. “With
George Marks/Getty Images; Photodisc/Getty Images; Photodisc/Getty Images; MindStorm/Veer; Magnum/Veer; Mbongo/Veer
By Regina Ludes
Top Remodeling Jobs, 2011 Project Bathroom remodel Kitchen remodel Window/door replacement
U.S. Northeast Midwest South West 78% 70% 80% 80% 79% 69% 61% 70% 72% 67% 44% 43% 51% 35% 47%
Source: National Association of Home Builders, May 2012; data from 2011
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They will spend a little more on items that provide better energy efficiency in the long run, such as installing new carpeting, window and door replacement, and better seals and insulation for doors. Moore says when considering a remodeling project, homeowners are more concerned about salability than return on investment. “The question that comes up is not about ROI but rather, ‘Will this help me sell the house?’ ” But he adds that the value a remodeled home brings is personal and can’t be quantified like an investment in the stock market. “People forget about the value the house brings — the roof over your head, comfort and enjoyment. That’s worth something to you,” Moore says.
Aging in Place Most of the 4,000 residents in the artist village of Bigfork Landing, Mont., are over age 55 and would prefer to age in their own home rather than move, Mitchell says. “Aging in place isn’t just a concern; it’s a necessity,” she says. In the current economy, new-home construction is limited, so existing homes must be retrofitted with aging-
in-place features to allow residents to live there longer. So residents have replaced tub/shower combos with seated showers and hand-held shower heads and replaced traditional toilets with comfort toilets to accommodate older adults’ needs. In addition, Mitchell says, some newer homes have his-and-hers medicine cabinets to keep medications separate from toiletry items and make them more easily accessible. When shopping for a home, baby boomers tend to prefer smaller houses that require less maintenance and use less energy, Mitchell says. “Baby boomers don’t need larger mansion homes anymore,” she says. “They’re more active and more involved in the community than previous generations. They don’t want to spend their time dealing with the maintenance of their home.” It’s one of the reasons cottage communities like Bigfork Landing are popping up all over the country, especially in the Pacific Northwest, says Mitchell. These planned communities consist of small cottages that offer one-level living space with aging-inplace features and front porches that encourage interactions with neighbors. “Most baby
2012 Kitchen and Bath Trends • Though still popular, cherry wood is being used less often for kitchen remodels. • People who choose natural wood kitchen cabinetry are leaning toward darker finishes, while white is popular for painted finishes. • Glass backsplashes are increasingly popular, while use of ceramic tile has declined. • LED lighting is used in 70 percent of home redesigns, illustrating the trend toward energy efficiency. • Pull-out faucets are replacing the standard kitchen faucet with a detached side sprayer. • Medicine cabinets are making a comeback. Decorative wall mirrors had replaced medicine cabinets in bathroom remodels, but homeowners prefer the additional storage medicine cabinets provide. • Gray and neutral tones are commonly used for décor. Green is popular for bathroom remodels, while bronze and terracotta are more common for kitchens. • Polished chrome is used more often for bathroom and kitchen remodels, supplanting the brushed metal finishes of the past few years. • Kitchen islands are getting downsized. NKBA recommends minimum surface area of three feet by four feet. Anything wider than five feet makes it difficult to reach across the surface for cleaning purposes. Source: National Kitchen and Bath Association (NKBA)
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Baloncici/Veer
the economics of today, it costs more per square foot to build a new home than it did a few years ago, so larger homes built today aren’t affordable for many families,” he explains. “So they must reassess how to use their existing space more efficiently. For example, instead of a separate dining room and breakfast area, they’ll use one room that accommodates both needs,” says Moore. With an eye on their budget and their living space, homeowners are taking greater care when planning home-improvement projects, according to a February 2012 survey by Better Homes and Gardens. More than one-third of homeowners (38 percent) say they spend more time planning home design changes, up from 33 percent in 2011, while 42 percent say they shop around more carefully for bargains before committing to a home improvement project, up from 40 percent in 2011. Most projects involve expanding storage space, updating kitchens and baths, and making style upgrades for countertops, flooring, faucets and fixtures, the survey finds. While homeowners are doing more remodeling today than they did four years ago, they’re keeping an eye on their budgets by shopping around more carefully for the best products and services, Moore says.
boomers do not like the idea of ‘retirement communities,’ as it sounds too institutional, but they do want one-level homes with these construction design standards, because they must always think about future health conditions,” Mitchell says. Linda Rike, CRS, with Linda Rike Real Estate in Morehead City, N.C., agrees that homebuyers are shopping for smaller homes to save on utility bills. “They’re not looking for 4,000-square-foot homes. Buyers often ask about average costs of electricity bills, whether older appliances are Energy Star rated and the average usage of newer appliances,” she says. Even in smaller homes, buyers still want a bonus room that can be used as a guest suite, home office or gym. Rike says fourbedroom homes are more sought-after in her market than three-bedroom homes. “Without that bonus room, the house will sit on the market,” Rike says.
Kitchen and Bath Kitchen and bath remodels have always been popular, but even those projects experienced a downturn during the recession. Now they are regaining momentum. According to a May 2012 survey by the National Association of Home Builders, 78 percent of remodelers cited bathroom remodels as the most commonly requested project, up from 61 percent in 2010, while 69 percent reported kitchen remodels as a common project, compared with 52 percent two years ago. “The kitchen and bath are the home’s two main selling points. People still want their kitchen and bath to look nice. But if they’re not updated, the home won’t sell, at least not at their price point,” says Moore. Rike says kitchen and bath remodeling has experienced a resurgence in her market. “During the recession, people were making minor improvements to the kitchen and bath, such as replacing the vanity and mirrors. Now they are renovating the entire room and spending the bucks for top-ofthe-line items, such as stainless steel appliances, granite countertops and high-end cabinetry,” she says. With the glut of smaller, affordable, newly constructed homes on the market, Rike says older homes must feature updated kitchens and baths in order to
Top Remodeling Jobs (Historically)* Project Bathroom remodel Kitchen remodel Window/door replacement
2012 2010 2009 2006 2004 78% 61% 74% 67% 72% 69% 52% 76% 73% 77% 44% 40% 38% 40% 44%
Source: National Association of Home Builders, May 2012; data from 2011 *Years for which data are available.
compete. When a client wanted to sell his 18-year-old home with an outdated kitchen and bath at a higher list price, Rike told him the house likely would not sell at that price point and convinced him to reduce the asking price by $25,000. “If it’s pink or blue, it’s gotta go. We have to compete with new construction,” she says.
New Uses for Existing Space Repurposing existing space to accommodate changing housing needs is a growing trend, especially in the midst of the economic downturn. Mitchell says some homeowners have sacrificed extra bedrooms to enlarge a master bedroom and bathroom and add a walk-in closet. Some empty nesters have converted an extra bedroom into a hobby room or home office after the kids move out. “They’re assessing what rooms they are using and figuring out how to reuse them to enhance their lifestyle as they age,” Mitchell says. Today’s buyers look for newer homes with a good flow compared with older homes that are more compartmentalized, she says. A great room that combines the living room, dining room and kitchen continues to be popular. “Homes are designed now for more efficient flow,” says Mitchell, a trend that extends to the laundry room. “The laundry room used to be stuck in the garage or in the basement. Now it’s part of the main house, usually located off the master walk-in closet,” says Mitchell. The laundry room’s location makes it easier to move between rooms to put away clothes. The garage is also gaining more prominence. “They used to be large dusty collections of auto and gardening supplies. Now they’ve become spacious storage centers with cabinetry and floor coverings that help reduce dust. Some are even designed as a ‘man room’ so the husband can sit with
his dog, smoke cigars and watch sports,” Mitchell says. While homes are getting smaller, garages are getting larger, adds Moore. In Elm Grove, La., 15 miles south of Shreveport, he says it’s not unusual to see newconstruction homes, especially those priced at $250,000 and up, with a three-car garage. “If a home doesn’t have a three-car garage, it won’t sell. That third space is for golf carts, motorcycles or the teenager’s vehicle,” Moore says.
Weathering the Storm In different parts of the country, some basic home improvements can make a big impact. For example, Rike says many homes along the North Carolina coast are equipped with Bahama shutters that provide shading from sunlight and guard against wind damage during storms. Moore adds that weatherresistant materials help guard homes in Louisiana against possible damage from tropical storms and tornadoes, some with winds exceeding 100 mph. Fiber cement siding, such as hardie board, is commonly used in new-construction homes and to replace damaged or moldy siding on existing homes. While it costs more than traditional siding materials, fiber cement is more durable and fire- and rot-resistant, and doesn’t need repainting as often, Moore says. If consumers have learned anything from the recession, it’s the need to make smarter, more realistic choices about their living space. Whether by updating a bathroom with agingin-place features or turning an extra bedroom into a hobby room, homeowners are designing their home to help them live more comfortably now and boost its value when it comes time to sell in the future. Regina Ludes is the associate editor of The Residential Specialist.
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Out Down but
Not
By Daniel Rome Levine
32 | July/August 2012
How did the boom-and-bust cycle change the way CRSs view the housing market — and their outlook on the profession? When the U.S. housing bubble burst six years ago, the pop was heard far and wide. Today, many people’s ears are still ringing. In many parts of the country, home prices remain depressed, foreclosures continue at historic levels and new-home construction is stalled. “This crisis has devastated millions of American families [and] has stalled the recovery of the economy as a whole,” writes John K. McIlwain, senior resident fellow for housing at the Urban Land Institute, a global nonprofit research organization. But what have we learned in the wake of the housing crisis? Since many of life’s most lasting lessons come through adversity, The Residential Specialist reached out to CRSs across the country to find out what they have learned from living through the ups and downs of the real estate market of the past several years.
Patrick Schwalb/Getty Images
Shrink Rap Jae Kim, CRS, broker-owner at EXIT Real Estate Solutions in Columbia, S.C., was driving between appointments one recent evening when he got a frantic call on his cell phone. It was seller clients who were in full panic mode because they had just gotten back from vacation and were afraid not enough people had looked at their house while they were away. Kim quickly rearranged his schedule and drove right over to their home to hold their hands and calm them down. “They were firing off 50 million questions at once,” Kim says. “‘Are we doing the right thing?’ ‘Should we take it off the market?’ I had to show up and be their therapist,” he says.
Kim calmly explained that because their home was listed at a price higher than the average for the area, it was not likely to generate a steady stream of what he called “tire kickers,” especially considering the down market they were in. He stressed the importance of being patient in an easy-to-understand way. “With higher-priced homes, it’s more a marathon than a sprint,” he told them. It worked. “They were fine again by the time I left,” he says. Kim has found himself in this unfamiliar role a lot more since the housing market went south. And it wasn’t something he was at all prepared for. In fact, one of the biggest lessons he’s learned from the downturn is the importance REALTORS® now must place on helping clients work through their fears and educating them on the opportunities to be found in a down market, such as lower-priced properties and rock-bottom interest rates. “People are scared out of their minds in this market,” says Kim. “Helping them work through their emotions and educating them are now huge pieces of my job that I never really thought would come into play to this degree. It’s a much harder discussion now with clients. You really do have to be a therapist.” That means being a good listener, showing empathy and focusing carefully on a client’s concerns, Kim says. It’s also critical, whenever possible, to try to be there in person for clients when they need you, he says. As he did with his clients who were concerned about the lack of showings, Kim showed up in person rather than simply responding with an email or a text. “In these stressful situations for clients, turn off the technology and put in the face-to-face time,” he says. “They will really appreciate your effort.” www.crs.com | 3 3
John MacGilvary, CRS, says the downturn revealed to him the extent to which REALTORS® can let their emotions get the best of them, and the impact this can have on their ability to do their jobs effectively. MacGilvary, who manages an office of 100 agents for Prudential Verani Realty in Londonderry, N.H., says that in a down market many REALTORS®, who are homeowners too, go through the same five stages of grief as sellers — denial, frustration, anger, disappointment and acceptance. The first stage, denial, says MacGilvary, is the most critical, because when agents refuse to see the obvious warning signs of a slumping market, they are unable to effectively advise their clients. “It’s hard to counsel a seller when you are equally in denial,” he says.
Advice for new agents
“One of the biggest things I learned is how critical it is for agents to get their heads wrapped around what is happening and be cognizant of it a lot faster so they can help their clients get through it faster,” he says. “It is really important to understand this so we’re better prepared at the next downturn.”
Out of Sight, Top of Mind Scott Wendl, CRS, with RE/MAX Real Estate Group, in Des Moines, Iowa, says that during the boom years it was easy to be lulled into a false sense of security and start taking clients for granted. Not anymore. Whereas in the past he may have gone a week or two without checking in with a client if there was nothing significant to report, now he checks in with them weekly to update them on
Jae Kim, CRS, broker-owner at EXIT Real Estate Solutions in Columbia, S.C., has the following words of wisdom for agents just entering the business. “Be 10 percent better and know 10 percent more than everybody else. If you stay that much further ahead than everybody else and know that much more, who’s the client going to go with? It’s a no-brainer. “Stay on top of the trends and study the numbers. These will help you understand where things are going. They are all around you; just open your eyes and look — CRS, REALTOR.com, Zillow, for example. If you get a report from NAR, don’t just immediately delete it from your email; go into it and look at the numbers. If you don’t understand it, get with somebody who can help you. Take a top broker in your town, or somebody who knows more than you do, to lunch. In that hour, you’re going to spend $15, but you’re going to learn more than you would have eating by yourself all year. Never stop learning.”
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Image Source Photography/Veer
Good Grief
“People are scared out of their minds in this market,” Kim says. “Helping them work through their emotions and educating them are now huge pieces of my job.” Flex Appeal
Daniel Rome Levine is a writer based in Wilmette, Ill., and is a frequent contributor to The Residential Specialist.
Existing-Home Sales 4.34M
4.26M 4.19M
2009
2010
2011
2009
2010
$166,100
Median Home Price $172,900
In Atlanta, Bruce Ailion, CRS, says the downturn drove home the importance of being flexible and adapting to the times. These aren’t natural Ailion family qualities, he admits with a chuckle. “I’ve got a family heritage that is stubborn and resistant to change,” he says, pointing to an uncle who continued selling wicker baskets into the early 2000s even though they had long faded from popularity. Ailion, with RE/MAX Greater Atlanta, has learned better. He has broad and diverse experience working in all segments of the market, from selling foreclosed properties for banks to representing first-time buyers and international investors. “The only way to stay in business is to change with business,” says Ailion. “You’ve got to recognize that the market can change very quickly, and you’ve got to be prepared to change quickly with it. Always be looking to the next market.” In addition to constantly studying market data and research, Ailion says agents can also stay ahead of trends by attending industry conferences and paying close attention to the training being offered. If there are numerous courses on a specific subject, such as short sales or foreclosures, and everyone is flocking to sign up for them, he says, it’s probably too late to get ahead of the trend. “But if just one person is offering what appears to be a hot thing, then it’s probably a good idea to sign up and learn more,” he says. “What will be strong two years from now will be barely visible this year.”
$172,500
his progress. “I’m much more customerfocused now,” he says. “I learned that you have to pay a lot more attention to clients and really be proactive about staying in touch with them. If I had known this, I probably wouldn’t have lost the few listings I did because I wasn’t following up aggressively enough.” Wendl has also made a point of expanding his base of business. He now helps clients buy and sell lower-priced homes, a sector of market he didn’t touch during the good old days. “You really have to be diversified and not put all your eggs in one basket,” he says. “Those smaller checks can add up.” The downturn has also reinforced for Wendl the importance of running a more fiscally disciplined business. It was a lesson he first learned as a child growing up on his family’s farm. When the farm crisis of the early 1980s hit, his father was forced to lay off his hired help and put Wendl, who was 12 at the time, and his two brothers to work. “This helped me learn to be disciplined with money,” he says. Except for his mortgage, Wendl now lives debt-free and watches his expenses like a hawk. “I have managed to ride the storm out by being prepared [for a downturn] and not being overextended financially,” he says. Wendl advises other agents to think long and hard before getting into debt to make discretionary purchases they may not really need. “Things like vacations, TVs, computers, extra cars, motorcycles and boats are all luxuries I don’t feel like I deserve unless I can pay cash,” he says. “The only person who benefits from debt is the lien holder who has interest being paid to them.”
2011
Source: NAR
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Good Read | Resources in print
imagine that! What are the roots of human creativity—and how can we marshal our thought processes to become more effective creative thinkers? Reviewed by Allan Fallow
Imagine: How Creativity Works by Jonah Lehrer Houghton Mifflin Harcourt 304 pages, $26 Buy it here: amzn.to/MnRsN5
36 | July/August 2012
Jonah Lehrer is back, and he’s driving the Malcolm Gladwell locomotive at full throttle once again with Imagine, his latest inspiring exploration of a complex science. This time it’s human creativity, and I’m still not sure how he does it: His author photo makes wunderkind Lehrer look all of 14 years old. Yet much as he did in How We Decide (see The Residential Specialist, July/ August 2009), the author has made “our most important mental talent: the ability to imagine what has never existed” feel both accessible and understandable. As Imagine’s enduring perch on the New York Times Best Seller List makes clear (it was No. 10 after eight weeks on the list as of May 27), its intended audience is not a bunch of rigorously uncompromising cognitive scientists. Instead it’s aimed at people like you and me, who want to be inspired by evidence that we can squeeze more creativity from “the three pounds of flesh inside the skull.” At this Lehrer vibrantly succeeds by demystifying the creative process on almost every page of the book. There’s a simple reason — technology — why our understanding of creativity is gaining momentum today in a way it never could in the second half of the 20th century. (Fewer than 1 percent of psychology papers published from 1950 to 2000 investigated aspects of the creative process, Lehrer informs us.) Thanks to improved scanning by fMRI (functional Magnetic Resonance Imaging) and EEG (electroencephalography) machines, Lehrer writes, we can
now “take snapshots of thoughts…and measure the excitement of neurons as they get closer to a solution. The imagination can seem like a magic trick of matter — new ideas emerging from thin air — but we are beginning to understand how the trick works.” And why should we want to grasp such a trick? Because a creative individual is often a more competitive businessperson. Those who were able to “envision the world as it might be if only there were a better mop,” for example, became the brains behind the Swiffer — that revolutionary floor-cleaning tool that took Procter and Gamble five years to perfect, then generated $500 million in sales during its first year on the market (1999). Creative minds are likewise responsible for the pop song on the radio and the iPod in your pocket, the medicine in your bathroom cabinet and the chair you’re perched upon as you read this review. So even if you see yourself as a lifelong number cruncher, take heart: Creativity shouldn’t be seen as something otherworldly. It shouldn’t be thought of as a process reserved for artists and inventors and other “creative types.” The human mind, after all, has the creative impulse built into its operating system, hard-wired into its most essential programming code. I’m not sure what the opposite of “otherworldly” is — “here and now”? — but Lehrer embraces it wholeheartedly in Imagine, which is stuffed with the sort of “storystudy-lesson” episodes that will be familiar to readers of Malcolm “Blink” Gladwell,
Charles “Power of Habit” Duhigg, and Kathryn “Being Wrong” Schulz. Acknowledging that the sources of innovation are not just personal but environmental and social, Lehrer explains at the outset that “The first half of this book focuses on individual creativity, while the second half shows what happens when people come together.” He then throws open his foot locker of anecdotes. You know you’re in for an intriguing ride when the first chapter — on how insight often finds us only after we stop seeking it — is titled “Bob Dylan’s Brain.” In it, Lehrer describes the mental blockage that Dylan had to experience in order to produce his most thrilling work, the “unlove” ballad “Like a Rolling Stone”: It was May of 1965, and the Bard of Folk was burned out from four months of touring. Dylan had just wrapped up the English leg of his tour, where “fans” at London’s Royal Albert Hall had booed him for going electric. Dispirited, he told his manager he was through with music; “He had nothing else to say.” Leaving his guitar behind, Dylan then roared out of New York City on his Triumph motorcycle, headed for an empty cabin in a small town upstate called Woodstock. It was there — as Dylan prepared to write a novel, of all things — that the songwriter received the flash of insight we normally associate with Newton’s apple or Archimedes’ bath water. The lyrics to Dylan’s most famous song came pouring out in a story 20 pages long, and as he marveled at their source he scribbled furiously to keep pace with their unspooling. Lehrer uses this tale to itemize the essential features of the “insight experience” — the phenomenon whereby an answer appears precisely when it is least expected. “The first stage is the impasse,” he writes. “Before there can be a breakthrough, there has to be a block. Before Bob Dylan could reinvent himself, writing the best music of his career, he needed to believe that he had nothing left to say.” Or take daydreaming, which tends to get a bad rap. When your mind wanders —
as during a routine drive or while reading a tedious book — you are actually activating the brain’s “default network,” which is capable of some impressively high-order “conceptual blending.” Here’s how to put this dynamic to work: The advantage of knowing where insights come from is that it can make it easier to generate insights in the first place. When we’re struggling with seemingly impossible problems, it’s important to find time to unwind, to eavesdrop on all those remote associations coming in from the right hemisphere. Instead of drinking another cup of coffee, indulge in a little daydreaming. Rather than relentlessly focusing, take a warm shower, or play some Ping-Pong, or walk on the beach. Any parent of what was once quaintly known as a “hyperactive” child will eat up Lehrer’s discussion of the remarkable
W h e n y ou r m in d w an d e r s — a s d u r in g a r ou t in e d r iv e o r w h ile r e a d in g a t e d io u s b oo k — y o u a r e a c t u a lly ac t iv a t in g t h e b r ain ’s “d ef a u lt n e t w or k,” w h ic h is c a p ab le o f so m e i m p r essiv ely h ig h or d er “c on c ep t u a l b len d in g . ” overlaps between attention deficit hyperactivity disorder (ADHD) and creativity. In a study by University of Memphis psychologist Holly White, for example, students with ADHD scored significantly
higher on a variety of difficult creative tests than those able to tune out distractions. So before the next incident in which a teacher accuses your high schooler of Wandering Mind Syndrome, gird your progeny with this defense: “According to scientists, the inability to focus helps ensure a richer mixture of thoughts in consciousness.” But what about those situations where daydreaming is utterly futile? Some challenges, be they intellectual or commercial, are simply not going to yield to a flash of insight. The reality of the creative process in cases like these is that it requires persistence, which Lehrer defines as “the ability to stare at a problem until it makes sense.” Lehrer devotes an entire chapter called “The Unconcealing” to the elbow-grease approach to creativity championed by designer Milton Glaser, whose small studio on New York’s East 32nd Street bears the chiseled maxim “ART IS WORK.” As Glaser told Lehrer, “I think people need to be reminded that creativity is a verb, a very time-consuming verb. It’s about taking an idea in your head, and transforming that idea into something real. And that’s always going to be a long and difficult process. If you’re doing it right, it’s going to feel like work.” Glaser’s creative process may feel like work to him, but its end products — including the DC Comics logo and that iconic “I [heart] NY” ad campaign — are playful in the extreme. If you have time to read only one chunk of Imagine, make it chapter 7, on “Urban Friction,” where Lehrer explains the “superlinear scaling” that renders humans something like 1.15 times more creative merely by being squinched together. Indeed, if you accept the author’s claim that doubling the concentration of city dwellers “raises productivity by up to 28 percent,” I promise you’ll never look at high-density residential development the same way again. Allan Fallow is a magazine writer and book editor in Alexandria, Va. You can follow him on Twitter @TheFallow.
www.crs.com | 3 7
Ethics Training
Referral Story
Course Listings
p. 39
p. 39
p. 44
inside CRS N E W S
F R O M
T H E
C O U N C I L
REALTORS® Discover Magic in Orlando
A
sk any 8-year-old what he thinks of Disney World and he might say it’s magical. Similarly, “Discover Your Magic” is the theme for the 2012 REALTORS® Conference and Expo, Nov. 9 – 12 in Orlando, Fla., home of Disney World and the Magic Kingdom. Join thousands of REALTORS® from all parts of the country as they discover their career magic through networking opportunities and education sessions that promise real-world solutions for their business. CRS Designees who attend the conference will walk away with practical tips and strategies to help them close more deals and become inspired to achieve more in their personal and professional lives. With more than 100 contentdriven education sessions, agents can find solutions to their toughest business challenges. The Entrepreneurial Excellence Series features top entrepreneurs and business leaders as they share their life lessons and perspectives. This year’s series features Sally Hogshead, author of FASCINATE, who will discuss on Friday, Nov. 9, what it means to be fascinating and how to captivate others in nine seconds or less. Then the “Imagineers” from the Disney Institute will share strategies for boosting creativity and innovation in your organizations, giving you the keys to success in a rapidly changing 21st century.
38 | July/August 2012
In his industry address, NAR 2012 President Moe Veissi will recognize the accomplishments of the 2012 REALTORS® of the Year and Good Neighbor Award winners on Saturday, Nov. 10. The keynote presentation will feature members of Afterburner, a team of elite military professionals who will share their experiences in high-stakes operations where failure is not an option. They will also discuss the Flawless Execution Model they use to win. The REALTORS® Celebrity Concert features Rock and Roll Hall of Famers Glenn Frey and Joe Walsh, formerly of the rock band The Eagles, who will perform many songs from the group and from their solo careers on Sunday, Nov. 11. Back by popular demand, the pre-concert REALTORS® Got Talent show will showcase the talents of several REALTORS® from around the country. The Inspiration Program on Sunday, Nov. 11, will feature Maj. Dan Rooney, an F-16 fighter pilot who founded Folds of Honor, a nonprofit organization that provides scholarships to the spouses and children of military service members disabled or killed in action. More than 400 exhibitors will showcase their products and services at the REALTORS® Expo. The
technology camps will feature updated presentations about some of today’s top technology tools and software. Explore global opportunities at the International 2nd Home and Resort Pavilion, which will feature worldwide properties, and the International Networking Center. When agents register for the full conference, they gain complete access to more than 100 hours of recorded education sessions after the event. Be sure to register for a full conference pass to take advantage of this opportunity. Register before Aug. 15 and save $30 off the full conference price. For details about the complete conference schedule, go to www. REALTOR.org/Conference. CRS members can register at registration.experient-inc.com/ shownar122?affil=CRS.
Code of Honor
I
s your ethics training up to date? REALTORS® have until Dec. 31 to complete the ethics training that is required to maintain membership with NAR. Training should be no less than two hours and 30 minutes of total instructional time and must meet specific learning objectives established by NAR. Training may be completed through local REALTOR® associations, home study courses, classroom courses or online classes. An online training course at REALTOR. org fulfills the requirement and is free of charge. To register, visit www. realtor.org/code-of-ethics/training. According to NAR, several changes to the Code will take effect this year: 1. Authorized use of property The duty of fidelity to clients’ interests was advanced through a new Standard of Practice interpreting Article 1 as prohibiting members from accessing or using, or permitting others to access or use, listed or managed property on terms or conditions other than those authorized by the owner or seller. 2. False statements against others Article 15’s obligation to refrain from knowingly or recklessly making false or misleading statements was expanded to cover “other real estate professionals, their businesses, and their business practices.” These changes are also reflected in Standards of Practice 15-2 and 15-3. 3. Mediating disputes The dispute resolution scope of Article 17 was enhanced to include the duty to mediate otherwisearbitrable disputes in cases where the association of REALTORS® has established a duty to mediate. 4. Waiving mediation & arbitration Standards of Practice 17-2 (which interprets and explains Article 17) was amended to make it clear that REALTORS® are not obligated to mediate or arbitrate in cases where all parties to the dispute choose not to
have it mediated or arbitrated through the association.
CRSs Make ‘30 Under 30’ List
T
wo CRS Designees and one CRS Candidate are among REALTOR® Magazine’s “30 Under 30” honorees for 2012. The winners were announced during the NATIONAL ASSOCIATION OF REALTORS® Mid-Year Meetings in Washington, D.C., and were featured in the May/June issue of REALTOR® Magazine. Mandy Becker, CRS, with RE/MAX Southern Shores in Myrtle Beach, S.C., says this honor represents “recognition of a long, hard, successful journey through the recession of the last few years and, more important, motivation for the future.” And CRS has been a part of that journey. “CRS taught me to operate as a business, rather than just selling real estate. So many agents forget that even as one person, they are a business and should operate as such in order Mandy Becker, CRS to plan for the future and take away much of the stress and unpredictability of the real estate business,” Becker says. Sasha Cannon Farmer, CRS, with Montague Miller & Co., REALTORS® in Charlottesville, Va., says this honor has been meaningful, flattering and humbling. She credits her success to selfdiscipline, a good Sasha Cannon work ethic and Farmer, CRS
support from her family and friends. CRS education also played a key role in her success. “One of the best parts about being involved in CRS is surrounding yourself with people who have teams and businesses that are bigger, better and more successful than you, so you can see what is possible and emulate those who you respect and admire,” Farmer says. CRS Candidate Warren Sacks with Barker Realty in Santa Fe, N.M., says it is both exciting and humbling to be recognized by others, but he credits his success to the support he has received from fellow brokers and employees at Barker Realty and to his CRS education. “CRS helped me develop a great real estate Warren Sacks foundation and an appreciation for professionalism, knowledge and success. The organization believes so strongly in growth, change and development — concepts that motivate me to be better and grow.”
Referral Story: From Marsh to Marsh
“I
just knew a Marsh could get the job done,” says Suzanne Marsh, CRS, associate broker with Marsh Realty in Frederick, Md. In early 2011, Marsh sought a CRS referral agent in Buffalo, N.Y. to work with her cousin who was trying to sell her aunt’s home after she had passed away. “My cousin knew I was in real estate and she asked if I knew of anyone in the area,” recalls Marsh. After searching through the CRS Referral Directory, Marsh interviewed several agents before passing along the
www.crs.com | 3 9
inside CRS
Listing Legends Videos Now Available
T
he Council’s Listing Legends event, the one-day, intensive program where top agents from across the country share their listing expertise, premiered in January 2012 in Phoenix. Successful residential sales professionals delivered a series of panel presentations to guide agents through the entire listing process, from lead generation through closing. Video recordings of these presentations allow CRSs to benefit from the valuable content shared
40 | July/August 2012
during this live event. You can purchase each session individually or you can purchase all six as a package. The sessions include: • Getting the Lead • Preparation for the Appointment • Killer Listing Presentations • Marketing Strategies to Get the Listing Sold • Getting the Deal Closed • Improving Client Relationships During and After the Sale Listing Legends presenters include: Alexis Bolin, CRS; Leigh Brown, CRS; David Burke; Kristan Cole, CRS; Greg Gorman, CRS; Carol Greco, CRS; Ron Kubek, CRS; Rob Levy, CRS; Michael Maher, CRS; Judy Markowitz, CRS; Leslie McDonnell, CRS; John Morley, CRS; Maura Neill, CRS; James Nellis, CRS; Frank Serio, CRS; Ira Serkes, CRS; Russell Shaw, CRS; and Orly Steinberg, CRS. Watch each hour-long video recording to earn one credit toward the CRS Designation. If you watch all six, you can earn six credits! Consult the CRS Designation Requirements (www.crs.com) for more information. To receive credit, you must submit a completed Affidavit of Viewing for CRS Designation Credit form. There is a discount if you buy all six videos from the January 2012 event as a package: $100 for CRS members and $125 for nonmembers. This special package pricing means that, if you buy all six videos at once rather than purchasing them separately, you end up getting one session for free! Cost for each hour-long session if purchased individually: $20 for CRS members and $25 for nonmembers. The price is automatically calculated after you sign into CRS.com. The Listing Legends videos will be delivered as Adobe Connect recordings. Each session includes an introduction with audio as well as online versions of the videos. For purchasing information, go to www.crs.com.
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 electronically by downloading the Microsoft Word version at www.crs.com.
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names to her cousin, who also interviewed them separately. Both women agreed that Paul Marsh, CRS, of MJ Peterson Real Estate in Williamsville, N.Y., was the best person for the job. “Paul was very friendly, knew the Suzanne Marsh, CRS area well, and seemed to really care. I had a good feeling that this was the person I wanted to go with. And we kind of joked that we had the same last name, so that created an instant connection. But I could tell he was a good agent,” Marsh says. Paul Marsh sold the aunt’s condo within a month. “He did a wonderful job. I’ve always been pleased with the performance of all CRS agents I’ve referred clients to,” Marsh says. Although the two agents have not talked since the transaction, Suzanne Marsh says her counterpart in New York left a lasting impression. “I don’t know if our paths will ever cross, but if I ever visit that area, he would be someone I would introduce myself to,” she says.
Personalize, Reproduce and Mail This Newsletter to Your Clients
PLEASE NOTE: The images featured in the YOUR HOME newsletter may only be used within the PDF version of the newsletter. These images may not be reproduced or republished elsewhere outside of this newsletter format. CRS members are free to re-use the text of the articles contained in the newsletter, however.
Reproduce
Do it yourself with your office copier, or take the newsletter or electronic file (in addition to your photograph and any information you want inserted) to a printer who can prepare and reproduce the newsletter for you.
Distribute
Mail. If you photocopy YOUR HOME or use it “as is,” please note that it is designed to be folded in a Z fold with the words YOUR HOME facing out on one side and the mailing panel facing out on the other side. Postal regulations require that Z folds have three closures (tabs or tape) — one on top in the center and two on the bottom. For your convenience, we have placed asterisks (*) where the closures should be. Be sure to check with your local mailer or post office to make sure you have prepared your mailings properly. Electronic File. Attach the customized newsletter file to an email to your clients or create a Web link to the file on your website. Consult your webmaster or technician to make sure the file is prepared correctly for these purposes, since these basic instructions will vary by person and system. * This newsletter is for the exclusive use of CRS members.
For a complete step-by-step guide to personalizing and reproducing the YOUR HOME newsletter, visit www.crs.com/ magazine/your_home_newsletter.shtml.
HOME *
YOUR A N D
T R E N D S
F O R
H O M E O W N E R S ,
B U Y E R S
A N D
2012
S E L L E R S
Home Sweet Second Home
Noise Control
ometimes a vacation can be so good that it makes you want to move to your vacation destination permanently — or at least visit more often. If your recent getaway has you thinking about buying a second home, consider these pointers from Frontdoor.com and CNN Money before taking the plunge. Ultimately, your lifestyle will determine the kind of second home you buy. How much time will you spend in your second home? A few weeks a year? Are you looking for a weekend getaway? Be realistic: Consider how long it takes to travel there and how often you’ll really be using it. Will you rent it out when you’re not there? Homeowners who rent out their home for fewer than 15 days a year don’t have to pay taxes on rental income — rental expenses, however, aren’t deductible (and vice versa). Whether or not you choose to rent it out, it’s important to add in extra costs, such as maintenance and insurance — which will be higher in risky weather areas, such as beach properties — and then decide whether the upkeep and costs still fit within your budget. Know the rules of renting. Some towns don’t allow short-term rentals, so make sure your chosen locale does, and read up on landlord laws for tenants. If your home will be primarily for rental income, opt for a family-friendly home in a popular location with easy access to airports or other modes of transportation for a more desirable rental option. Last, consider long-term goals when choosing a second home. If you’re thinking of the home as a good place to retire, it’s important to check out local hospitals and other resources, and factor in costs associated with making a home compatible with senior living.
or many homeowners, the days of hearing the neighbor’s radio through paper-thin walls are gone. But noise can still be a problem, even under your own roof. Lower the decibel level in your abode with some ideas from TLC. First, find out how sound travels in your home with one simple step. Turn off the lights in one room while leaving the rest of the lights on in surrounding rooms and look for any light that’s peeking through the walls. If light can travel through, so can sound. Use acoustical caulk, available from most hardware stores, to seal off these hidden cracks between walls, ceilings and floors. Put carpet or rugs on higher-level rooms to reduce the noise traveling to lower floors. To help reduce noise in other rooms, in-wall insulation can help, but it requires cutting holes in the walls. For an easier fix, buy wall coverings that have soundproofing capabilities and repaint them to match your décor, or hang noise-control curtains in the room. The most time- and cost-intensive fix — but also one of the most effective — is to replace standard windows with double-paned ones, which greatly reduce noise. Don’t forget the outdoors. Block off sounds from the street by placing heavy shrubbery and evergreens with large leaves near doors and windows. And consider ornamental fountains for a more welcoming sound.
S
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fast fact »
Digital Vision/Getty Images
T I P S
JU LY
»»»»»»»»»»»
One in five people in the U.S. suffer from allergies or asthma; common allergens include pollen, dust mites and insect bites.
B R O U G H T T O Y O U B Y Y O U R A G E N T, A M E M B E R O F T H E C O U N C I L O F R E S I D E N T I A L S P E C I A L I S T S
S
chool’s out, and it’s no surprise your kids are clamoring to stay outdoors. Keep them safe and close to home by building an outdoor play area. Start by asking your kids what they envision. Do they want a nature area with a garden or bug observation station, or perhaps a building area with toy blocks and a table? Swing sets, slides, play towers and the like are the most popular choices for play areas, and you don’t have to have a huge yard to accommodate them. If you want to include this kind of play equipment, be sure to consider size, materials, components, price and safety features before buying. Once you’ve decided what you want to include in the play area, assess your yard for the ideal location. Choose a large,
level area in your backyard, and remove any rocks or roots so there’s little chance of tripping on uneven ground. Consider placing the play area underneath big trees for extra protection from the sun. Then, prep the play area: Dig up the dirt or grass and refill the play zone with a protective surface such as mulch, sand or shredded rubber at least three inches deep to minimize injury if a child falls. Install bender board (landscaping border material) on the outskirts of the play area to ensure the filling stays put. Depending on how old your kids are, consider adding a fence around the border of the play area for added safety, and keep it free of obstacles (like rocks or lawn chairs) at least six feet around each edge. Keep in mind that not all play areas need to look and feel like a playground. Kids can have just as much fun with
Say Yes to CRS
I LO
S! AL
*
Do you know someone who is thinking about buying or selling a home?
weatherproof chalkboards, a basin of water with toy boats to race, or even cardboard boxes in different sizes.
DID YOU KNOW?
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.
REFERR VE
Wealan Pollard/Getty Images; Creative Corp/Getty Images
Play Zone
22 percent of workers in Davis, Calif., commute by bicycle, making it the most active bike-commuting city in the U.S.
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.
*
inside CRS » » » » » » »
S E A R C H C O U R S E O F F E R I N G S B Y C I T Y A N D S TAT E AT W W W. C R S . C O M
CRS Classroom Courses CRS classroom courses earn either eight credits (for 100-level, one-day courses) or 16 credits (for 200-level, two-day courses) toward the CRS Designation. CRS courses listed below are from July 15, 2012, to Oct. 31, 2012. For more upto-date listings, visit www.crs.com.
SEPT. 17 – 18 TULSA, OKLA. Greater Tulsa Association of REALTORS® 918.663.7500 Instructor: Pat Zaby, CRS, CCIM
SEPT. 20 – 21 IDAHO FALLS, IDAHO South East Idaho Women’s Council of REALTORS® 208.524.2121 Instructor: Chandra Hall, CRS
OCT. 4 – 5 ANCHORAGE, ALASKA Alaska CRS Chapter 907.561.2338 Instructor: Chuck Bode, CRS
CRS 111 — Short Sales and Foreclosures: Protecting Your Clients’ Interests SEPT. 18 SUNRISE BEACH, MO. Missouri Association of REALTORS® 800.403.0101 Instructor: Chandra Hall, CRS
OCT. 19 ATLANTA Georgia Association of REALTORS 770.451.1831 Instructor: Robert Morris, CRS, CRB ®
CRS 112 — Guiding the Buyer in the Distressed Property Market Florida CRS Chapter 800.669.4327 Instructor: Frank Serio, CRS, CRB
Knoxville Area Association of REALTORS® 865.584.8647 Instructor: Robert Morris, CRS, CRB
OCT. 15 – 16 EDINA, MINN. Minnesota CRS Chapter 952.912.2664 Instructor: Chandra Hall, CRS
OCT. 22 – 23 CLIVE, IOWA Iowa Association of REALTORS® 800.532.1515, ext. 1 Instructor: Chandra Hall, CRS
OCT. 24 – 25 MALVERN, PA.
Casper Board of REALTORS 307.237.1670 Instructor: Chandra Hall, CRS
OCT. 30 – 31 SARASOTA, FLA. Sarasota Association of REALTORS® 941.328.1167 Instructor: Gee Dunsten, CRS
CRS 201 — Listing Course
Florida CRS Chapter 407.513.7268 Instructor: Ed Hatch, CRS, CRB
AUG. 21 – 22 BOISE, IDAHO Idaho CRS Chapter 208.239.0355 Instructor: Jackie Leavenworth, CRS
Sierra Nevada CRS Chapter 775.622.3881 Instructor: Chandra Hall, CRS
AUG. 23 – 24 PANAMA CITY, FLA.
SEPT. 13 – 14 HOUSTON Houston Association of REALTORS 713.629.1900 x370 Instructor: Pat Zaby, CRS, CCIM
®
44 | July/August 2012
OCT. 24 – 25 OMAHA, NEB. Nebraska CRS Chapter 800.777.5231 Instructor: Jackie Leavenworth, CRS
JULY 16 – 17 RAPID CITY, S.D.
AUG. 22 – 23 ORLANDO, FLA.
SEPT. 10 – 11 RENO, NEV.
N.J./Delaware CRS Chapter 855.696.5277 Instructor: Jackie Leavenworth, CRS
CRS 204 — Income Properties
®
AUG. 9 – 10 KNOXVILLE, TENN.
OCT. 10 – 11 CHERRY HILL, N.J.
Memphis Area Association of REALTORS® 901.685.2100 Instructor: Robert Morris, CRS, CRB
OCT. 29 – 30 CASPER, WYO.
CRS 200 — Business Planning and Marketing
Massachusetts CRS Chapter 800.725.6272 Instructor: Jackie Leavenworth, CRS
OCT. 11 – 12 MEMPHIS, TENN.
Suburban West REALTORS® 800.495.7972 Instructor: Ed Hatch, CRS, CRB
AUG. 7 ORLANDO, FLA.
OCT. 4 – 5 WALTHAM, MASS.
Florida CRS Chapter 850.769.8033 Instructor: Gee Dunsten, CRS
SEPT. 5 – 6 HERNDON, VA. Virginia CRS Chapter 804.249.5722 Instructor: Jackie Leavenworth, CRS
Dakotas Chapter 701.355.1010 Instructor: Chris Bird
SEPT. 20 – 21 FORT COLLINS, COLO. Fort Collins Board of REALTORS® 970.223.2900 Instructor: Pat Zaby, CRS, CCIM
SEPT. 27 – 28 LAS VEGAS Southern Nevada CRS Chapter 702.889.3876 Instructor: Doug Richards, CRS, CCIM
CRS 206 — Technology Course SEPT. 20 – 21 CANCUN Vacation Classes 866.279.6273 Instructor: Mark Porter, CRS
OCT. 3 – 4 HONOLULU Hawaii Aloha Chapter of CRS 808.737.7060, ext. 105 Instructor: Robert Morris, CRS, CRB
OCT. 22 – 23 NORTH HAVEN, CONN. Connecticut CRS Chapter 203.215.6957 Instructor: Michael Selvaggio, CRS, CCIM
OCT. 29 – 30 LANCASTER, PA. Lancaster County Association of REALTORS® 717.569.4625 Instructor: Michael Selvaggio, CRS, CCIM
CRS 210 — Referral Course OCT. 17 – 18 CHEYENNE, WYO. Wyoming CRS Chapter 307.742.3255 Instructor: Ed Hatch, CRS, CRB
Elective Courses Elective courses vary in length and credits earned toward the CRS Designation. Please visit the CRS website for details.
The Little EXTRAS … In EXTRAordinary Customer Service
OCT. 4 TINTON FALLS, N.J.
Ninja Selling
Monmouth County Association of REALTORS® 732.918.1340 Instructor: Ed Hatch, CRS, CRB
OCT. 2 ROCKPORT, MAINE
OCT. 23 ANNAPOLIS, MD.
Maine Association of REALTORS® 207.622.7501 Instructor: Walt Frey, CRS It’s a Price War to the Door
SEPT. 25 AMES, IOWA Iowa Association of REALTORS® 800.532.1515, ext. 1 Instructor: Jackie Leavenworth, CRS
SEPT. 27 NORTHBROOK, ILL. Northshore-Barrington Association of REALTORS® 847.480.7177 Instructor: Jackie Leavenworth, CRS
OCT. 15 OKLAHOMA CITY Oklahoma City Metro Association of REALTORS® 405.840.1493 Instructor: Pat Zaby, CRS, CCIM Presentation 2.0
OCT. 15 PENSACOLA, FLA. North Florida CRS Chapter 850.288.9725 Instructor: Rich Sands, CRS
Maryland/DC CRS Chapter 410.575.5053 Instructor: Ed Hatch, CRS, CRB
OCT. 26 MALVERN, PA. Suburban West REALTORS® 866.495.7972 Instructor: Ed Hatch, CRS, CRB Turn It On Automatic — Serving Repeat and Referral Customers
AUG. 22 HOUSTON Greater Houston CRS Chapter 713.629.1900, ext. 263 Instructor: Pat Zaby, CRS, CCIM
Note: Instructors listed on all courses are subject to change.
RESOURCES • July/August 2012
residential The
Specia li s t
Seeing Stars
Fix it or Nix It?
Down But Not Out
Lenny Harris, CRS, Keller Williams Realty, Lenny@TheHarrisTeam.com
Philip Alderfer, CRS, The Alderfer Group, Philip@alderfergroup.com
Sandra Mathewson, CRS, RE/MAX Premier Properties, smfernley@ sbcglobal.net
Richard Bradford, CRS, RE/MAX Connection, CRS@RichBradford.net
Bruce Ailion, CRS, RE/MAX Greater Atlanta, bruce@locationlocationlocation.com
Jody Zink, CRS, RE/MAX Preferred, Jody@JodyZink.com
George Durkin, CRS, Realty Executives of Nevada, George@ LasVegasBroker.com
Changing Rooms
Brenda R. Stone, CRS, Keller Williams Realty, brendarstone@aol.com
Joyce Mitchell, CRS, Mitchell and Associates, Joyce@Bigforkbroker.com
Jae Kim, CRS, EXIT Real Estate Solutions, jae@exitres.com John MacGilvary, CRS, Prudential Verani Realty, john.macgilvary@verani. com Scott Wendl, CRS, RE/MAX Real Estate Group, Scott@ScottWendl.com
Linda Rike, CRS, Linda Rike Real Estate, linda@lindarike.com
w w w. c r s . c o m
www.crs.com | 4 5
CRS REFERRAL MARKETPLACE
EAST COAST
New York’s Tech Valley & Capital Region
Your referral source for the greater
Pittsburgh
ABR, CRS, SRES, GRI, CDPE
area
Albany, Saratoga & Schenectady Counties David M. Phaff, ABR, CRS, e-Pro, GRI, CSP O: 518 464-1600 C/T: 518 469-8984 David@DavidPhaff.com www.DavidPhaff.com
I help clients make the Wright move 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
Serving Northern Virginia and the Dulles Tech corridor
Offices in Ashburn, Leesburg and Sterling Re/Max Select Properties, Inc.
703-999-6535 lisacromwell@remax.net www.LisaCromwell.com
SOUTH
BUILD REFERRALS to your region from more than 36,000 CRS Designees and members with an ad in the Referral Marketplace. Limited Space Available First Come, First Served Ask us about multi-issue discounts
Just call Andrea Katz at 202.721.1482
July/August 2012 Guide to Advertisers ePropertySites 5 www.ePropertySites.com/CRS Pillar to Post cover 2 www.pillartopost.com
46 | July/August 2012
WEST COAST
SOUTHERN CALIFORNIA TEMECULA – MURRIETA RIVERSIDE & ORANGE COUNTIES
Debra Pitell –Hauge
“Everyone Likes Sara Lee!” SARA LEE PAULL CRS, SRES,e-PRO
Michael Saunders & Company Licensed Real Estate Broker
SARASOTA FLORIDA
Broker Associate (#00547900) Cell: 951-970-5211 Direct: 951-461-4611 saralee@saraleepaull.com saraleepaull@verizon.net www.saraleepaull.com
29 YEARS OF EXPERIENCE Broker/REALTOR , CRS, SRES , GRI, e-Pro R
R
R
941.356.0437 dpestates@aol.com SarasotaHomes4Sale.com
H AWA I I
Real Estate
CANADA
BUILD REFERRALS
to your region from more than
36,000 CRS Designees and members with an ad in the Referral Marketplace. Limited Space Available First Come, First Served Ask us about multi-issue discounts
Just call Andrea Katz at 202.721.1482
www.crs.com | 4 7
Ask a CRS | Advice from the country’s top Certified Residential Specialists
get out Q U ESTIO N : What advice do you have for new agents who want to get their name and face known in their community?
IN OUR EXPERIEN C E . . . “WHEN I moved to Richmond years ago, I knew no one, and I didn’t have much money to do heavy advertising. So I did everything everyone else didn’t want to do — held open houses, visited new home communities, learned short sales, etc. Our company had kiosks in malls and I volunteered to man them, all in the hopes of meeting new people. I visited empty houses to learn pricing in different areas and I called expireds and FSBOs. Eventually, I got a few sales, then some more until I became busy.” Barbara Reagan, CRS
“WHEN I started in real estate, I did it all — floor time, open houses, etc. I didn’t have any listings, so I connected with one of our top agents who had more listings than she could handle. Farm a neighborhood, and let people know you are energetic. Learn the inventory and go to office meetings. If you’re with a large company, I suspect they have some excellent training and scripts that you can use.”
“OPEN houses work at odd times. Get to know business and chamber of commerce groups, and network. Get a circle around you — e.g., attorneys, lenders, home inspectors, flower shop owners and coffee shops. Take people to lunch and ask them for help. Attend city events and post to Facebook. There are so many ways to get into the business, there aren’t enough hours in a day.” Jan McNulty, CRS
Lore Lingner, CRS
RE/MAX Suburban
Coldwell Banker Del Monte
Mount Prospect, Ill.
Carmel, Calif.
jan@janmcnulty.com
Lore@LoreLingner.com
Long & Foster REALTORS® Richmond, Va.
BReagan2@gmail.com
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Please submit real estate questions for “Ask a CRS” to Mike Fenner at mfenner@crs.com.
48 | July/August 2012